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Cablegate: Daily Summary of Japanese Press 12/10/07-2

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UNCLAS SECTION 01 OF 07 TOKYO 005502

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 12/10/07-2


Index:

(12) Yomiuri-Gallup poll: 76 PERCENT of Americans think N. Korea
should remain on terror list until abductions issue is resolved
(Yomiuri)

(13) LDP, New Komeito to agree on re-adoption of new antiterrorism
legislation; Fukuda-Ota talks at beginning of week; Momentum
gathering for extending Diet session until mid-January (Mainichi)

(14) DPJ's Kitazawa indicates new antiterrorism legislation to be
brought to a vote, possibly to apply pressure on ruling camp
(Sankei)

(15) Total of 21 bills expected to clear divided Diet (Mainichi)

(16) China rewrites official communiqu worked out at Japan-China
economic dialogue (Asahi)

(17) Establishment of Japan-US Security Strategy Council aimed at
pursuing profits for defense industries (Akahata)

(18) Japan's stealth aircraft to make 1st test flight in 2011
(Yomiuri)

ARTICLES:

(12) Yomiuri-Gallup poll: 76 PERCENT of Americans think N. Korea
should remain on terror list until abductions issue is resolved

YOMIURI (Page 1) (Full)
December 8, 2007

The Yomiuri Shimbun conducted a telephone-based joint public opinion
survey with the Gallup Organization, a U.S. pollster, on Nov. 15-18
in Japan and Nov. 9-18 in the United States. In the survey, Japanese
and American respondents were asked if they thought it would be
better to keep North Korea on the U.S. government's list of terror
sponsors until the incident of Japanese nationals abducted to North
Korea is resolved. In response to this question, a total of 75
PERCENT in Japan and 76 PERCENT in the United States answered
"yes" or "yes to a certain degree," with "no" at 15 PERCENT both in
Japan and in the United States. As seen from these figures,
three-quarters of respondents in both countries think resolving the
abduction issue is one of the conditions for delisting North Korea
as a terror sponsor.

Respondents were also asked if they thought North Korea would
actually abandon its nuclear weapons and nuclear development
programs as a result of the six-party talks. To this question, those
who answered "yes" totaled only 27 PERCENT in Japan and 22 PERCENT
in the United States. Those who answered "no" totaled 59 PERCENT in
Japan and 72 PERCENT in the United States. Particularly, the
proportion of pessimistic views overwhelmed that of optimistic ones
in the United States.

In the survey, respondents were further asked to pick one or more
tasks which they thought the Japanese and U.S. governments should
tackle on a priority basis in cooperation with each other over North
Korea. In response, those who think the two countries should work
together to stop North Korea from developing nuclear weapons
accounted for 93 PERCENT in Japan and 84 PERCENT in the United

TOKYO 00005502 002 OF 007


States, and the proportion of those who think the two countries
should stop North Korea from developing and launching missiles was
89 PERCENT in Japan and 82 PERCENT in the United States. In Japan,
the proportion of those who picked the abduction issue were 87
PERCENT . In the United States, those who chose diplomatic
normalization with North Korea accounted for 73 PERCENT .

In the United States, the abduction issue ranked fourth at 61
PERCENT . In Japan, diplomatic normalization ranked fifth at 45
PERCENT .

(13) LDP, New Komeito to agree on re-adoption of new antiterrorism
legislation; Fukuda-Ota talks at beginning of week; Momentum
gathering for extending Diet session until mid-January

MAINICHI (Page 1) (Full)
December 9, 2007

Prime Minister Yasuo Fukuda (who is also LDP president) will hold
talks early next week with New Komeito Representative Akihiro Ota to
discuss a response to the current extraordinary Diet session due to
end on Dec. 15. With the aim of enacting the new antiterrorism
legislation in the current Diet session, they are expected to
confirm a policy course of re-extending the session so that even if
the bill is voted down in the House of Councillors, they can
override it with a two-thirds majority in the House of
Representatives. They plan to determine the length of extension by
watching the actions by the major opposition Democratic Party of
Japan (DPJ or Minshuto). Calls are growing in the government and
ruling parties to extend the session by one month until
mid-January.

LDP Diet Affairs Committee Chairman Tadamori Oshima appearing on a
TBS-TV talk show yesterday indicated his party's intention to
readopt the legislation in the Lower House, saying: "There is a good
chance of making a decision under the rules of the Constitution and
the Diet Law." Alarmed at the developments of the bribery case
involving former Administrative Vice-Defense Minister Takemasa
Moriya, some in the ruling camp were initially negative about
re-extending the Diet session. But the prime minister has defined
the antiterrorism legislation as a top priority. The New Komeito has
also softened its stance, with Representative Ota saying: "Members
have come to understand the need for it to a certain extent."

Envisaging use of the constitutional provision allowing the Lower
House to conclude the Upper House's failure to take final action
within 60 days after receipt of a bill to be a rejection of the
bill, calls are growing for extending the session until around Jan.
15.

Concerned about possible political tensions resulting from the
postponement of handling of the bill to next year, some are looking
for ways to extend the session only until around Dec. 25. They are
in accord, however, to have the DPJ's assurance to bring the bill to
a vote in the Upper House before the end of the year. Earlier,
Chairman Toshimi Kitazawa (of the DPJ) of the Upper House Foreign
Affairs and Defense Committee, now discussing the antiterrorism
bill, alluded to the possibility of taking a vote in late December,
but they all think a clear assurance is necessary.

In the wake of President Ichiro Ozawa's return home from China, the
DPJ, which is opposed to the legislation, is scheduled to discuss

TOKYO 00005502 003 OF 007


its response shortly. The view is gaining ground in the party that
the Upper House should not postpone voting down the legislation
until next year. In the event the bill is readopted in the Lower
House, the focus of attention would be shifted to whether or not the
opposition camp would submit a censure motion in the Upper House
against the prime minister.

(14) DPJ's Kitazawa indicates new antiterrorism legislation to be
brought to a vote, possibly to apply pressure on ruling camp

SANKEI (Page 5) (Full)
December 8, 2007

Chairman Toshimi Kitazawa (Democratic Party of Japan) of the House
of Councillors Foreign Affairs and Defense Committee, which is
discussing the new antiterrorism bill, told reporters in the Diet
building yesterday: "The bill is before us, and this committee
intends to take a vote on it. Deliberation time would be
approximately 41 hours on a par with the House of Representatives."
The committee has already discussed the bill for 11 hours and 20
minutes. Kitazawa's comment alluded to the possibility of taking a
vote before the end of the year.

The committee meets twice a week (on Tuesdays and Thursdays). In
order for the committee to discuss the legislation for 41 hours, as
was done by the Lower House Committee on Prevention of Terrorism,
the Diet session must be extended for a dozen or so days.

The Upper House Foreign Affairs and Defense Committee has yet to
settle the 11 DPJ demands, including sworn and unsworn Diet
testimony over improprieties involving the Defense Ministry.

DPJ Diet Affairs Committee Chairman Kenji Yamaoka told the press
corps in Beijing yesterday: "I have confirmed with him (Kitazawa).
His comment is based on the assumption that our demands are
realized. At this point in time, things are not going in that
direction (taking a vote before year's end )."

Secretary General Yukio Hatoyama, too, commented at a press

SIPDIS
conference: "I think (Kitazawa) eyes preventing the Lower House from
taking an override vote (based on the constitutional 60-day rule),
for such would be suicidal for the Upper House." President Ichiro
Ozawa also said in a press conference in Beijing: "Our party has yet
to make a final decision. We will do so at the beginning of next
week or later."

"Kitazawa made that statement to throw the ruling camp into
confusion," a DPJ member noted.

(15) Total of 21 bills expected to clear divided Diet

MAINICHI (Page 2) (Abridged)
December 9, 2007

The ruling and opposition camps have steadily enacted bills, mostly
livelihood-oriented ones, despite their fierce battle over the new
antiterrorism bill. As of Dec. 8, of the 10-government sponsored
bills presented to the current Diet session, nine, excluding the
antiterrorism bill, were unanimously enacted. When prospective bills
are counted, a total of 21 bills -- only a few short of 25 bills
enacted in the extraordinary Diet session last fall -- are likely to
clear the current session of the Diet. Given the split Diet, the

TOKYO 00005502 004 OF 007


government and ruling camp abstained from presenting controversial
bills. The number also reflects the opposition camp's unexpectedly
flexible and cooperative stance so as not to draw public criticism.

Thus far, a total of 12 government-sponsored bills, including those
carried over from the previous session, have passed the Diet.
Included in them is a bill to revise the Minimum Wage Law to raise
the minimum wage out of consideration for public criticism of income
disparities. Additionally, a bill to amend the Broadcast Law in
compliance with the opposition camp's demand is certain to win Diet
approval.

Four lawmaker-initiated bills have also cleared the Diet, including
one to revise the Law to Support the Rebuilding of Lives of Disaster
Victims. They are specifically designed to provide assistance to
victims of disasters, such as earthquakes. Agreements have also been
reached between the ruling parties and the DPJ to enact four bills,
including a prospective bill to revise the Political Funds Control
Law.

In the wake of the ruling coalition's devastating setback in the
July Upper House election, the government and the ruling camp feared
that the opposition camp's fierce resistance would block the
majority of bills from clearing the Diet. Such anxiety has now
essentially vanished. The reason is mostly because the government
and ruling parties avoided presenting contentious bills in the first
place, with the new antiterrorism legislation being the only
exception.

Of the government-presented bills that cleared the Diet, four are
designed to raise the salaries of civil servants in compliance with
recommendations of the National Personnel Authority. The DPJ had no
other option but to cooperate in enacting them so as not to cause
trouble for civil servants and draw fire from them.

The ruling parties and the DPJ submitted similar bills to the lower
and upper chambers, respectively, like the one to revise the Law to
Support the Rebuilding of Lives of Disaster Victims. The system of
the two sides meeting halfway for the sake of enacting bills has
begun taking root.

(16) China rewrites official communiqu worked out at Japan-China
economic dialogue

ASAHI (Page 1) (Full)
December 9, 2007

Nobuyoshi Sakajiri, Beijing

It has been learned that the Chinese government unilaterally rewrote
the press communiqu worked out at the Japan-China high-level
economic dialogue in Beijing on Dec. 1 and announced the corrected
version. In protest against this move, the Japanese government has
urged China through diplomatic channels to correct the rewritten
document. China deleted such parts as referring to Japan's
expectations for China's efforts to raise the exchange rate of the
Chinese currency yuan. Japan is looking into drawing up and
releasing its own press communiqu in Chinese. With the planned
visit to China by Prime Minister Fukuda near at hand, this issue
could trigger a new dispute between Japan and China depending on
what action China takes next.


TOKYO 00005502 005 OF 007


It is quite unprecedented for a nation to unilaterally alter the
contents of an agreed press communiqu and announce it.

The economic dialogue brought together six Japanese cabinet
ministers and the Chinese vice premier and seven cabinet ministers
at the Great People's Hall in Beijing to comprehensively discuss
economic issues. When Chinese Premier Wen Jiabao met on Dec. 2 with
five Japanese cabinet ministers, the premier hailed the positive
results produced in the dialogue, saying: "It was a great success."
In response, Foreign Minister Koumura said: "It was successful that
both sides were able to issue a joint communiqu."


According to several sources familiar with relations between Japan
and China, working-level officers from the two countries formed the
communiqu while promoting dialogue, and relevant cabinet ministers
approved expressions in each sector. The Japanese government
released the full text of its Japanese-language version to reporters
in Beijing on the night of Dec. 1.

On the Chinese side, the Xinhua News Agency reported the
Chinese-language communiqu on the 3rd, and it was also carried in
the People's Daily dated Dec. 4 and on the website of the Chinese
Commerce Ministry. However, the communiqu announced in China does
not include parts expressing Japan's expectations for China's
efforts to hike the exchange rate of the yuan and pointing out the
significance of China's participation in the Energy Charter Treaty,
both of which were in the original.

The United States and Europe, saddled with huge trade deficits with
China, have criticized the current exchange rate of the yuan,
claiming that the rate has been kept low through the People's Bank
of China's market intervention. The Energy Charter Treaty sets
international rules for liberalized trade and investment protection
in the energy sector, but China has yet to sign the treaty and
remains an observer.

The parts that China deliberately deleted are clauses in which Japan
urges China's efforts. A Japanese government official said: "The
Chinese government was negative about forming the communiqu itself.
China was supposedly unwilling to specify what it does not want to
hear." Japanese officials have fiercely reacted to China's
unilateral move, with one official complaining: "The alternation
without notice will erode the trust between the two countries;" and
another claiming: "That is a reckless act that should not be done
diplomatically."

As a countermeasure, the Japanese Embassy in Beijing reportedly is
looking into translating the Japanese-language version into Chinese
and posting that on its website.

A source familiar with Japan-China relations said: "The Chinese
Communist Party's leadership must have made the request," but it is
uncertain why the Chinese side changed the wording. As of the night
of Dec. 8, the Chinese Foreign Ministry's press office has made no
reply to an inquiry by the Asahi Shimbun.

(17) Establishment of Japan-US Security Strategy Council aimed at
pursuing profits for defense industries

AKAHATA (Page 1) (Full)
December 9, 2007

TOKYO 00005502 006 OF 007

Meetings of the Japan-United States Security Strategy Council are
held by the Congressional National Security Research Group --
chaired by former Defense Agency Director General Tsutomu Kawara and
composed of lawmakers representing defense interests from the
Liberal Democratic Party (LDP), the Democratic Party of Japan (DPJ),
and the New Komeito. The establishment of the Japan-US committee was
aimed from the beginning at strengthening the basis of the Japanese
and US military industries and promoting trade in weapons, according
to a document of its preparatory committee released yesterday.

The document, with the seal of "strict secrecy," was compiled in
2002 by Naoki Akiyama, chief of secretariat at the said
congressional group, who reportedly is holding the key to the
investigation of a scandal involving military interests.

The document says that the purpose of the establishment of the
Japan-US security panel was to promote multilaterally studying
security problems between Japan and the US (related to policy and
military technologies).

The panel's mandate is specified as "strengthening the basis of
Japanese and US national defense industries and future options for
defense technology cooperation (including the transfer of technology
and the purchase of weapons)." This reveals that the establishment
of the panel was designed to promote both Japanese and US military
industries' profits.

The document notes: "In order to maintain the management of the
panel, we will obtain cooperation from (about 25) private firms
supportive of our efforts to map out our nation's sound security
policy," showing that the new panel, since its establishment, has
been greatly dependent on financial aid from the military industry.
The document also indicated that a Mitsubishi Corp. executive served
as coordinator in the defense industry, saying: "Mitsubishi Corp.
executive Sato has served as liaison among Japanese private firms."

Mitsubishi has received orders worth 53.9 billion yen in total
(FY2001 - FY2006) from the Defense Ministry (the Defense Agency),
one of the largest defense contractors in the nation.

In the preparatory committee set up in November 2001, three former
Defense Agency director generals served as representative members.
The three were Kawara, Fumio Kyuma, and Fukushiro Nukaga. The idea
was that the panel would include such key persons among its members
as former Defense Secretary Cohen, Boeing Vice President Stanley
Roth, and others from the U.S. The name of James Auer, former
director of the Japan Desk at the Department of Defense, is also
found on the list.

(18) Japan's stealth aircraft to make 1st test flight in 2011

YOMIURI (Page 2) (Full)
December 9, 2007

The Defense Ministry yesterday revealed a plan to develop a
prototype aircraft with advanced technologies for the purpose of
verifying stealth and other state-of-the-art technologies for a new
fighter plane model. The plan will start next fiscal year, with the
prototype scheduled to make its first test flight in FY2011. If the
plan gets well underway, the Defense Ministry would like to lead it
to Japan's development its own fighter jet model.

TOKYO 00005502 007 OF 007

The prototype has an overall length of 14 meters and an overall
width of 9 meters. The newly planned fighter plane is named
"Shinshin." It is a stealth aircraft that can hardly be picked up by
enemy radar. Another feature of the Shinshin is its high mobility
using an engine developed by Japan. The Shinshin will also adopt
other advanced technologies, such as radar called "smart skin." The
new aircraft is a prototype, so it will not be loaded with weapons.

The Defense Ministry plans to develop the Shinshin over a period of
six years, starting next fiscal year. The Defense Ministry will
earmark 15.7 billion yen in its budget request for next fiscal year
and estimates the total cost of development at 46.6 billion yen. The
ministry will make a prototype engine and electronic equipment by
fiscal 2009. It will set about producing the prototype in fiscal
2010 and will make its first flight in fiscal 2011 at the earliest.
The fuselage and engine are already under development. In 2005, the
ministry tested a mockup model for stealth in France. "We have
already confirmed high efficiency," a senior official of the Defense
Ministry said.

Japan and the United States once co-developed the F-2 fighter
support plane. F-2 production will be will be ended in several
years' time, so the planned development of an experimental aircraft
model is for Japan to retain its technical know-how. Meanwhile, the
Air Self-Defense Force is interested in the F-22 Raptor, a
U.S.-developed fighter jet model, as a likely candidate for its
follow-on mainstay fighter (FX). However, the United States will not
consent to export the F-22. The Defense Ministry is hoping to
negotiate with the United States to its advantage over the F-22.

The United States is cautious about exporting the F-22 for security
reasons, according to a government source. "For another," the source
said, "they think Japan cannot develop stealth technologies on its
own, so they want to sell it at a high price in the future."

"It's possible for Japan to deploy its own fighter planes in around
2017 or 2018," a senior official of the Defense Ministry said. The
Shinshin could replace the F-15. In the United States, however,
there are concerns about Japan choosing to develop its own fighter
jet model. That is because the United States will lose one of its
export markets.

SCHIEFFER

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