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Cablegate: Daily Summary of Japanese Press 11//07

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #5337/01 3302251
ZNR UUUUU ZZH
P 262251Z NOV 07
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHKSO/AMCONSUL SAPPORO 5226
RUEHBJ/AMEMBASSY BEIJING 0275
RUEHUL/AMEMBASSY SEOUL 6327
RUCNDT/USMISSION USUN NEW YORK 7094

UNCLAS SECTION 01 OF 07 TOKYO 005337

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 11//07


(1) METI eyes new legislation to create secret patent system for
preventing technology outflow (Nikkei)

(2) Upper and Lower House steering committee chairmen launch setting
rules for panels to examine the Constitution; DPJ may strongly react
(Yomiuri)

(3) Government to buy emissions credit from Hungary in first trading
(Asahi)

(4) TOP HEADLINES

(5) EDITORIALS

(6) Prime Minister's schedule, November 21 (Nikkei)

ARTICLES:

(1) METI eyes new legislation to create secret patent system for
preventing technology outflow

NIKKEI (Top play) (Abridged slightly)
November 26, 2007

The Ministry of Economy, Trade, and Industry (METI) has begun
discussions on establishing a new law incorporating comprehensive
measures to prevent the outflow of important technology. A key
element would be the introduction of a secret patent system that
would keep technologies with military applications from going
public. METI specifically plans to make exceptions to the patent
disclosure rule to prevent foreign governments, enterprises, and
terrorists from viewing specific information. It will also consider
increasing criminal punishment for leaking information. The purpose
is to forestall situations that would undermine Japan's national
security and industrial competitiveness.

The ministry has set up a study group consisting of academics and
major corporations to discuss ways to better protect information
held by the government, companies, and universities. It hopes to
submit a bill to a regular Diet session in 2009.

Currently the contents of a patent in Japan must be made public 18
months after filing an application. This is to prevent other
corporations or individuals from conducting overlapping work.
Technologies using advanced materials with possible military
applications can easily be accessed through the Industrial Property
Digital Library (IPDL) on the Internet and other means.

Such countries as the United States, Britain, France, and Germany
have secret patent frameworks that keep national security-connected
technologies from the public eye. In the United States, the head of
the Patent and Trademark Office determines whether a technology
should be made secret after a patent application is filed. Once
patents are designated as secrets, the government provides monetary
compensation to patent holders in lieu of licensing fees that would
otherwise receive by letting others use the patents.

Japan used to have a similar system before World War II, but was
abolished in 1948. METI believes that such a system is now necessary
enabling the Japan Patent Office to consult with the Ministry of
Defense (MOD) to decide which technologies should be kept secret.


TOKYO 00005337 002 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07

METI also hopes to strengthen criminal penalties for leaking
information. Currently such acts are only punishable for theft of
paper and personal computers. Leaking trade secrets that are defined
as information helpful to business activities is treated as a crime
under the Unfair Competition Prevention Law. However, no charges
have actually been filed under the law. The ministry plans to
closely examine information that should be protected in order to
incorporate comprehensive criminal penalties for obtaining and
leaking protected information in the envisaged new law.

In addition, the ministry is considering making secret the results
of research that the government out-sources to the private sector if
it contains sensitive information. Another proposal is to allow some
criminal trials to be held behind closed doors because some
companies that have suffered leaks of trade secrets are reluctant to
go to court due to concerns that more information would become
public.

Judging that there are limitations to dealing with the matter by
just revising existing laws, METI has begun discussions on
establishing a new law incorporating regulations to stop information
leakages, while considering revising the Unfair Competition
Prevention Law. Bases on public opinion, how to determine the kinds
of information that must be protected and acts constituting illicit
leakages would be subjects for future talks.

(2) Upper and Lower House steering committee chairmen launch setting
rules for panels to examine the Constitution; DPJ may strongly
react

YOMIURI (Page 4) (Full)
November 24, 2007

Although a panel to examine the Constitution was set up in each Diet
house based on the Referendum Law to set procedures for
constitutional amendments, the constitutional examination councils
have not functioned because the number of panel members and other
specifics were not set. Now, however, the steering committee
chairmen of the two Diet houses have initiated setting rules for
examining the Constitution for deciding the number of panel members
and procedures. Specific work for the panels has just started three
months after their establishment. Since there still remains a view
opposing constitutional amendments in the main opposition party
Democratic Party of Japan (DPJ or Minshuto), there are still
hindrances to the panels getting started.

House of Representatives Steering Committee Chairman Takashi
Sasagawa, a member of the ruling Liberal Democratic Party (LDP),
requested House of Councillors Steering Committee Chairman Takeo
Nishioka, a DPJ member, on Nov. 20 that the two Diet chambers
establish rules for examining the Constitution around the same time.
The LDP's aim was to secure understanding from the DPJ since the
largest opposition party had insisted that the two Diet houses
should fall in step in starting constitutional debate.

Following this, Nishioka stated in an Upper House Steering Committee
meeting on Nov. 22: "Mr. Sasagawa requested the Upper and Lower
House start deliberating the matter around the same time." He told
the press the same day: "For example, we set up a joint panel (for
the purpose of dealing with) appointments requiring approval of the
two houses of the Diet. This is one such example." He took a
positive stance of responding to Sasagawa's proposal.

TOKYO 00005337 003 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07


The constitutional panels were set up in August at the extraordinary
Diet session based on the Referendum Law stipulating procedures for
amending the Constitution. The law was enacted in May. But since the
DPJ and other opposition parties did not respond to consultations on
formulating rules for the composition of the panels and operations,
the abnormal situation has continued with the panels being legally
set up, but still not functioning. Although the ruling coalition had
called on the opposition camp to set rules during the current Diet
session, the opposition camp remained opposed to the ruling bloc's
proposal, citing that the situation has not been consolidated for a
debate since the Referendum Law came into effect following the
ruling coalition's ramming the vote through the Diet.

With the Diet Steering Committee chairmen having taken a positive
action, many LDP lawmakers are greatly looking forward to the
constitutional panels getting started. The DPJ has not set up its
own constitutional research panel since the new party leadership was
formed in August. Therefore, should rules for the constitution
panels and the number of panel members be decided during the ongoing
Diet session, the possibility is strong that real discussion will
not occur before the regular Diet session next year.

The LDP had envisioned that it would begin debate on constitutional
amendments at the current session and that it would propose
constitutional reform in a Diet session in 2010, when the Referendum
Law goes into operation. A senior LDP member commented: "Our
schedules will inevitably be delayed." This view is dominant in the
party.

(3) Government to buy emissions credit from Hungary in first
trading

ASAHI (Top Play) (Slightly abridged)
November 26, 2007

In an effort to achieve the nation's target to reduce greenhouse gas
emissions under the Kyoto Protocol, Japan has decided to purchase
emissions credit from the Hungarian government. This will be the
first government-to-government emissions trading for Japan. The
government will engage in negotiations with the aim of buying in
2008 up to a quantity equivalent to 10 million metric tons of carbon
dioxide (CO2). To play up a positive stance about reducing CO2, the
government intends to limit the use of the money paid to Hungary to
projects designed to protect the environment.

Trading of emissions quotas is one of the mechanisms set up under
the Kyoto Protocol. According to a government source,
representatives from Japan and Hungary will sign a memorandum in
Budapest this week. Later, both sides will determine for what
Hungary should use the money to be paid by Japan. Installing solar
panels on roofs is reportedly one of the cited projects.

The Kyoto Protocol requires Japan to reduce greenhouse gas emissions
between 2008 and 2012 by 6 PERCENT from 1990 levels. Only with
energy-conservation and other domestic measures will it be
impossible for Japan to attain the target, with the nation's actual
emissions estimated to be 1.6 PERCENT or about 100 million tons
higher than what is needed to meet its obligation. The government
intends to make use of the Kyoto mechanism to cover this estimated
shortfall. Japanese firms have so far acquired emissions rights by
investing in projects aimed to reduce emissions in developing

TOKYO 00005337 004 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07

countries under the so-called Clean Development Mechanism (CDM).

Hungary is also obligated to lower its greenhouse gas emissions to a
level 6 PERCENT below 1990 levels. But because the heavy chemical
industry sector remained stagnant during the transition period from
socialism to a market economy, its emissions are expected to be
about 100 million tons less than the targeted amount discharged.

The Japanese government anticipates Hungary will sell about 10
million of the 100 million tons in 2008. With reference to the
prices of emissions rights traded between companies in the European
Union (EU), the government calculates the price of 10 million tons
at 20 billion yen.

Besides Hungary and other East European countries, Russia also
expects to see its emission quota surplus reaching several billion
tons. Reportedly, Australia and Holland are making approach to
Hungary, while Holland and Denmark are making contact with
Czechoslovakia. Japan is also pushing ahead with negotiations with
Czechoslovakia and Poland.

Government approach may blunt emissions-cut efforts

(Commentary)

The aim of the Japanese government's decision to purchase greenhouse
gas emission quotas is to lower the cost needed to attain its target
by increasing options to acquire emissions quotas. There are
abundant surplus emissions quotas in Russia and East European
countries, so the government expects to purchase such quotas cheaper
than on the market for trading between companies in the EU. Such an
approach by the Japanese government, however, may lead to bringing
down prices for emissions rights and eventually to blunting
reduction efforts by countries and companies.

The Kyoto Protocol, concluded in 1997, assumes that such large gas
emitters as the United States, Japan and Canada will be "buyers"
under the Kyoto mechanism. But the US and Australia have withdrawn
from the protocol, and Canada has also given up meeting its target.
As of now, emissions rights for about 2.5 billion tons have been
offered for trading under the CDM, but the emissions quota surplus
of Russia alone is estimated to be 4 to 6 billion tons. A government
source said that if all these emissions rights are offered for
trading, countries will be able to attain their respective targets
only by purchasing surplus emissions rights."

The CDM is a positive arrangement that contributes to reducing
greenhouse gas emissions, but purchasing surplus emissions rights is
likely to come under fire as a negative approach to reduce
emissions.

If a number of countries meet their targets by purchasing surplus
quotas from Russia or East Europe, many observers might think the
reduction targets were set too low in the Kyoto Protocol. There
might also be some impact in discussion on a post-Kyoto framework at
the 13th session of the Conference of the Parties to the UN
Framework Convention on Climate Change in Indonesia next month.

(4) TOP HEADLINES

Asahi:
Japan to purchase greenhouse gas emission quotas from Hungary

TOKYO 00005337 005 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07


Mainichi:
Restrictions on mail delivery business to be lifted

Yomiuri:
LDP eyes solatium for AUM victims

Nikkei:
METI eyes secret patents to protect sensitive technologies

Sankei:
Moriya may have involved in prohibited reporting to Air Staff Office
on CX engine selection process


Tokyo Shimbun:
Moriya spoke favorably of Mirise for two months for concluding
discretionary contract

Akahata:
Annual medical fees on people over 75 at 84,288 yen, 10,000 yen over
MHLW's estimate

(5) EDITORIALS

Asahi:
(1) Let us foster sixth industry: Proposals for hopeful society
(Part 5)

Mainichi:
(1) Major banks not the only victims of subprime crisis
(2) High school equivalency test: Enthusiasm for educational reform
essential

Yomiuri:
(1) Japan lags in ability to fight infectious diseases
(2) Tokyo must make efforts for maintaining strategic relationship
with Australia that elected new prime minister

Nikkei:
(1) Focus on regime change in Australia after 11 years of
conservative rule
(2) WTO talks must go on

Sankei:
(1) College education system needs fundamental reform
(2) Success of tightened immigration checks takes understanding and
cooperation

Tokyo Shimbun:
(1) ROK presidential race and North Korean nuclear issue
(2) Tele-work can create jobs

Akahata:
(1) Sympathy budget must be abolished

(6) Prime Minister's schedule, November 21

NIKKEI (Page 2) (Full)
November 22, 2007

Morning

TOKYO 00005337 006 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07

Attended ASEAN summit held at Shangri-La Hotel in Singapore. Met
with Singaporean Prime Minister Lee Hsien Loong. Met afterwards with
Singh. Held informal meeting with reporters accompanying him.

Noon
Had luncheon with East Asia summit leaders.

Afternoon
Attended East Asia summit.

Evening
Attended joint signing ceremony. Met with Burma's Prime Minister
Thein Sein. Met Japanese and foreign correspondents at Four Seasons
Hotel.

Night
Attended dinner party hosted by Singaporean President Nathan and his
wife at Istana Palace. Departed Singapore International Airport on
government plane.

Prime Minister's schedule, November 22

NIKKEI (Page 2) (Full)
November 23, 2007

06:26
Arrived at Haneda Airport from Singapore on government plane.

07:13
Arrived at his private residence in Nozawa.

12:42
Singed in to report his return at Imperial Place.

13:00
Met at Kantei with Chief Cabinet Secretary Machimura, joined by LDP
Secretary General Ibuki.

SIPDIS

14:01
Held one-on-one meeting with New Komeito leader Ota, DPJ President
Ichiro Ozawa, JCP Chairman Shii, DPJ Chairperson Fukushima, PNP head
Watanuki, attended by Ibuki and Machimura.

17:16
Attended Cabinet meeting. Met with Health Minister Masuzoe.

18:48
Returned to his private residence.

Prime Minister's schedule, November 23

NIKKEI (Page 2) (Full)
November 24, 2007

Morning
Spent at his private residence in Nozawa.

15:19
Paid respects for the late Takami Eto, former management and
coordination agency chief, at his residence.

15:58

TOKYO 00005337 007 OF 007

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07

Met at his official residence with Administrative Reform Minister
Watanabe.

17:40
Attended Harvest Festival at Imperial Palace.

20:55
Return to his private residence.

Prime Minister's schedule, November 24

NIKKEI (Page 2) (Full)
November 25, 2007

He spent time at his private residence in Nozawa.

Prime Minister's schedule, November 25

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

He spent time at his private residence in Nozawa.

DONOVAN

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