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Cablegate: Daily Summary of Japanese Press 01/03/08

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0019/01 0030758
ZNR UUUUU ZZH
P 030758Z JAN 08
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 7667
RUEHFK/AMCONSUL FUKUOKA 5271
RUEHOK/AMCONSUL OSAKA KOBE 8936
RUEHNAG/AMCONSUL NAGOYA 3966
RUEHKSO/AMCONSUL SAPPORO 5889
RUEHBJ/AMEMBASSY BEIJING 0907
RUEHUL/AMEMBASSY SEOUL 6975
RUCNDT/USMISSION USUN NEW YORK 7639

UNCLAS SECTION 01 OF 08 TOKYO 000019

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 01/03/08


INDEX:

(1) MPD to deploy more counterterrorism investigators ahead of G-8
summit in Lake Toyo (Sankei)

(2) Kantei, ruling parties considering moving V-shaped Futenma
replacement runways 80-90 meters from government plan; "We will
welcome it if consideration is given to peoples' daily lives," says
Vice Governor Nakazato (Okinawa Times)

(3) Japan honing coal-fired power generation, an eco technology; To
support newly emerging economies' efforts to increase power
generation efficiency; Full-fledged coal gasification test to be
conducted (Sankei)

(4) My views on yen drifting lower versus dollar: Former Chief
Cabinet Secretary Kaoru Yosano says drifting yen reflects
deterioration of Japanese economy (Nikkei)

(5) Prime Minister's schedule, January 1 (Nikkei)

(6) TOP HEADLINES

(7) EDITORIALS

(Corrected copy): Japan, US to begin talks later this month on MD
intelligence-sharing roadmap (Sankei)

ARTICLES:

(1) MPD to deploy more counterterrorism investigators ahead of G-8
summit in Lake Toyo

SANKEI (Page 3)
January 3, 2008

In preparation for the Group of Eight (G-8) Summit at Lake Toya,
Hokkaido, in July, the Tokyo Metropolitan Police Department's (MPD)
Public Safety Bureau (PSB) yesterday decided to deploy more
investigators tasked with dealing with international terrorism, for
instance, an attack by Islamic radicals. Alarmed also by radical
activities by organizations opposing globalism, the MPD will
increase the number of investigators in charge of analyzing actual
conditions. Behind this decision is the department's judgment that
in order to deal with the "new threats" of international terrorism
and antiglobalism movements, the current setup of investigators.

The PSB has some 140 investigators tasked with international
terrorism at present and will increase their number by 20 PERCENT
this month to some 170. The bureau also plans to increase on a
similar scale the number of investigators in charge of dealing with
anti-globalism movements. By bringing together investigators from
such sections in the PSB that handle domestic radicals,
rightist-caused incidents, and certain crimes committed by
foreigners or involving foreign countries such as illegal exports
and abductions of Japanese nationals by North Korea, the PSB will
newly deploy those investigators to either the post dealing with
international terrorism or the post tasked with anti-globalism
movements.

Although the venue for the G-8 summit is in Hokkaido, the MPD has
felt a sense crisis about such issues, with Superintendent General

TOKYO 00000019 002 OF 008


Takayoshi Yashiro saying, "Tokyo will become our major battlefield."
In fact, in July, a conference of justice ministers and interior
ministers is set to take place in Tokyo. A senior MPD officer
commented: "International terrorists aim at soft targets like public
traffic systems and large event halls or amusement parks attracting
many people." In the 2005 G-8 Summit in Gleneagles, Britain,
terrorist attacks occurred in London, far away from the venue for
the G-8 summit.

The 2008 G-8 summit will be the first such international event for
Japan to host since the 9/11 terrorist attacks in the United States.
Viewing anti-globalism activists who hold large protest rallies and
demonstrations as a "new threat," the MPD has decided to change the
current investigative setup as the above same official noted, "In
order to prevent terrorism and riots, we need to boost our
capability to collect and analyze information and investigate
suspicious cases."

As part of efforts to deal with international terrorism, the MPD
will track down foreigners having contacts with Islamic radicals.
The MPD has already instructed each police station to boost their
efforts to gather information on suspicious foreigners. Each police
station is collecting information on suspicious foreigners by
regularly visiting apartments where those foreigners reside or
through questioning them

Based on such information, investigators from the PSB are monitoring
and tracking them down. They will be soon joined by investigations
the MPD will newly install in the post.

Regarding antiglobalism movements, the MPD is alarmed by moves by
organizations in Japan and South Korean labor unions and
agricultural organizations. The PSB is analyzing information
provided by South Korean investigators.

(2) Kantei, ruling parties considering moving V-shaped Futenma
replacement runways 80-90 meters from government plan; "We will
welcome it if consideration is given to peoples' daily lives," says
Vice Governor Nakazato

OKINAWA TIMES (Top play) (Full)
January 3, 2008

Tokyo

Japan and the United States have agreed to build a V-shaped pair of
runways on the coastal area of Camp Schwab in Nago as the alternate
facility to the U.S. Marine Corps' Futenma Air Station. It was
learned yesterday that an idea has surfaced in the government and
ruling parties to move the planned V-shaped runways about 80-90
meters into the sea. The notion is now being studied by the Prime
Minister's Office (Kantei) and some Liberal Democratic Party
executives on the condition that the replacement facility would not
reach Nagashima (island) off Camp Schwab and that the Okinawa
prefectural and Nago municipal governments would not seek any
further shifts in location. The Defense Ministry and the Foreign
Ministry, however, are generally dismissive of making any changes to
the original plan as agreed upon by Japan and the United States.
There is no prospect for the U.S. side accepting such a change.

Nagashima is some 80 meters away from the southern tip of the
planned V-shaped runways. In December, the Kantei unofficially

TOKYO 00000019 003 OF 008


learned from a ruling coalition source that Governor Hirokazu
Nakaima wanted the envisaged runways to be moved as far offshore as
possible within the scope of 50 meters or so, a step short of
reaching Nagashima.

According to a government source, upon hearing of Nakaima's desire,
Chief Cabinet Secretary Nobutaka Machimura and others who are eager
to settle the Futenma issue have indicated a willingness to respond
to his wishes on condition that the affected municipalities would
settle on this change once and for all and would not repeatedly ask
for more location shifts.

The government and ruling coalition plan to reach an agreement on
the start of an environmental impact assessment for the replacement
facility during the sixth Futenma relocation consultative council
meeting, to be held possibly in late January. When the seventh
council meeting is held before the end of fiscal 2007, the
government would aim having the V-shaped plan accepted,
incorporating the request for moving the facility further out to
sea.

There is a view among those wanting to move the runways further
toward the sea that a minor change of up to 100 meters would not
hamper U.S. military operations. With the U.S. side from Secretary
of Defense Robert Gates on down remaining reluctant to make any
changes to the original plan, there is no prospect for a new
agreement.

Vice Governor Zenki Nakazato said yesterday: "We have not heard
anything from the government about moving the planned runways about
90 meters further offshore. That would end up moving the facility as
far offshore as possible while stopping a step short of slicing into
Nagashima. We have repeatedly asked the government to respect local
opinions and give consideration to the daily lives of residents in
the vicinity. If that is what the government is going to do, we
would welcome (the change) with open arms."

(3) Japan honing coal-fired power generation, an eco technology; To
support newly emerging economies' efforts to increase power
generation efficiency; Full-fledged coal gasification test to be
conducted

SANKEI (Page 1) (Full)
January 3, 2008

The electric power industry will provide major greenhouse gas
emitters, such as China and India, with know-how on enhancing
coal-fired power generation efficiency with the aim of reducing
emissions of greenhouse gases, such as CO2. The industry will convey
the know-how to those countries during a field council meeting,
scheduled for February in India. At the same time, with the aim of
commercializing the next-generation technology called Integrated
coal Gasification Combined Cycle (IGCC), the industry will start a
2,000-hour running test this spring. Japan intends to take the
initiative in the prevention of global warming by providing the
world-leading coal fired power generation technology and by pressing
ahead with the development of the next-generation technology.

A drawback to coal-fired power generation is that it produces more
CO2 as compared with power generation using such fuels as oil and
natural gases. But in such countries as China, coal is playing a
main role in power generation, because is inexpensive and exists in

TOKYO 00000019 004 OF 008


abundance.

According to the Federation of Electric Power Companies of Japan,
power generation efficiency in such countries as China and India is
30-32 PERCENT on average. In contrast, Japan's efficiency is more
than10 points higher. The electric power industry will push ahead
with technological assistance to increase the efficiency of power
plants in up-and-coming powers on a par with Japan.

Such an effort is recognized as a priority project in the
Asia-Pacific Partnership for Clean Development and Climate composed
of seven countries, such as the United States, China, and India.
During the field council meeting in February in India, the electric
power industry will transfer know-how on preventing heat diffusion
using pipes and temperature control to engineers of other
countries.

Meanwhile, Clean Coal Power R&D Co. (Iwaki City, Fukushima
Prefecture) run by 11 electric power companies, such as Tokyo
Electric Power Co. and Kansai Electric Power Co., will conduct a
2,000-hour running test for IGCC as early as April that can realize
high power generation efficiency by gasifying coal as the first step
toward its practical use.

IGCC gasifies coal with a special furnace and generate electricity
by turning a steam turbine with waste heat resulting from gas
turbine power generation at the same time. Its power generation
efficiency is 48-50 PERCENT , which is higher than the country's
average coal-fired thermal efficiency of 43 PERCENT . It can
generate power with less fuel. It is said that with IGCC, CO2 can be
reduced by about 20 PERCENT .

Such countries as the United States and the Netherlands are also
making efforts for commercializing IGCC. They are all using a system
to send in oxygen in gasifying coal which needs a special device to
generate oxygen. Japan's demonstration equipment has adopted a
system to directly send in air, not oxygen, in gasifying coal. This
allows reducing construction and running costs and increasing power
generation efficiency with no energy being used for generating
oxygen.

The coal-fired thermal power technology called clean coal technology
with a little burden on the environment is drawing attention across
the globe. Director Koji Morita of the Institute of Energy
Economics, Japan, noted: "Western countries are pushing ahead with
clean coal technology programs in order to reduce energy's
dependence on oil, in addition to the environmental aspect. It is
important to take the initiative in reducing the burden on the
environment."

(4) My views on yen drifting lower versus dollar: Former Chief
Cabinet Secretary Kaoru Yosano says drifting yen reflects
deterioration of Japanese economy

NIKKEI (Page 5) (Full)
January 3, 2008

Q: What are your views about the recently underlying tendency for
the yen to weaken?

Yosano: From a short-term perspective, the yen's sudden fluctuation
has thrown the (Japanese) economy into confusion. If you ask which

TOKYO 00000019 005 OF 008


is better, yen depreciation or appreciation, it is natural to say an
increase in the value of the currency we use is better. From a
long-term perspective, however, over a 20 to 30 year period, a weak
yen would mean the Japanese economy has deteriorated. That is not a
desirable trend in my view.

Japan overshadowed by emerging economies

Q: Compared to other major currencies, the yen for the first time in
20 years is at a low level.

Yosano: In the latter half of the 1980s, (former Deputy Prime
Minister) Michio Watanabe noted, "At present Japan is in a golden
age, but that will wane sometime in the future." But I never
imagined that such emerging economies like China and India would
rise as quickly as they are now. I think the yen and the Japanese
economy are both sinking into oblivion.

This decline is presumably related, albeit in a complicated fashion,
to such problems as the relatively weakening of Japan's power, low
economic growth, the shrinking population, as well as a lack of
motivation and creativity in the society. But I am troubled when
people cite the proverb that prosperity must decay when the golden
age nears its end.

What I fear the most is that Japan will become poor. When it comes
to the pension system, Japan will not be able maintain it if the
economy is not stable in macroeconomic terms. If such a worst-case
scenario comes true, the Japanese people could turn against each
other.

Q: The dollar as well as the yen is falling and losing international
confidence as the key currency.

Yosano: Indeed, the dollar is fluctuating and making us uneasy. The
governments of those countries that do not want their economies to
sink with the dollar are trying to diversify their investments that
go into their foreign currency reserves. But in the case of Japan,
we can't do so because we are politically linked to the United
States through the security treaty.

Countries surrounding Japan include two nuclear powers, China and
Russia. In the future, North Korea may become another one of them.
Because Japan has no nuclear arms, we need to be stay under
America's nuclear umbrella. While political bonds between Japan and
the U.S. are becoming more important, the world tendency is to move
away from the dollar.

Q: Do you mean that Japan's political choices and its economic
choices do not necessary move in the same direction?

Yosano: I have such a feeling. Aside from our anxiety about the
dollar, Japan faces a difficult choice. For instance, it is a major
trend for the U.S. and China to be coming closer in economic terms.
The Chinese people are aware of the strength of the U.S. market, so
they will think a great deal of the U.S.

For the U.S., too, it can't ignore the Chinese economy consisting of
a population of 1.3 billion, 10 times Japan's population. The U.S.
and China are likely to gradually deepen their relations beyond the
depth of Japan-U.S. ties as we describe. This tendency will advance
even if we raise an objection to that.

TOKYO 00000019 006 OF 008

Political decision essential

Q: Turning our eyes to the Japanese political world, we see
political debates becoming increasingly inward-looking and lacking
in ideas to cope with structural changes now occurring on a global
scale.

Yosano: I think Japan needs to reconsider its market-access policy,
including the agricultural sector. I would cite the example of
negotiations to sign free trade agreements (FTA). In Europe, the
European Union (EU) has in a way embodied the ultimate conclusion of
an FTA. If the EU is joined by Turkey, it will mean Europe's FTA
will close in on Asia. China is diplomatically bold, so Japan should
act more promptly.

The British Economist in its recent issue predicted a food crisis, a
complex subject involving an energy crisis. I think that's why
politics is required to make a decision promptly; otherwise Japan
will be left behind in the world trend. What should we do to prevent
the Japanese people from becoming poor? The government and political
parties must answer this question, in addition to dealing with
domestic problems.

(5) Prime Minister's schedule, January 1

NIKKEI (Page 2) (Full)
January 3, 2008

10:32
Attended the New Year celebration ceremony at the Imperial Palace.

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

Prime Minister's schedule, January 2

Morning
Stayed at his private residence.

14:06
Had New Year party with Lower House member Takao Ochi and other
family members at his official residence.

18:40
Dined at a Chinese restaurant in Higashi-zebu with wife Kiyoko and
others.

20:25
Returned to his private residence.

(6) TOP HEADLINES

Asahi:
IHI suspected of having provide false settlement account; A highest
surcharge of 1.7 billion yen may be imposed

Mainichi:
Government to revise the law for independent administrative
corporations and have such entities return their internal reserves
to the national coffers

TOKYO 00000019 007 OF 008

Yomiuri:
Japan's intellectual capability: Profound human intellectual power;
Can robots speculate philosophically?

Nikkei:
Aeon, Morinaga & Co. considering using bar codes to identify how
long products are edible or where products were manufactured so that
warning will be given at time of checkout

Sankei:
Surprising incidents involving living creatures -- advancing climate
change: Subtropical zone expands 5 kilometers per year

Tokyo Shimbun:
Japan, U.K. found to have exchanged memorandums stating, "It will be
possible to attain the goal of reducing a maximum of 80 PERCENT of
greenhouse gas emissions" by 2050

Akahata:
A study group of politicians and defense officials found to have
suggested in 2006 report that Japan join space arms race, and called
on the government to revise the principle of peaceful use of space

(7) EDITORIALS

Asahi:
Resolve to prevent climate change -- Let's change the society with
technology

Mainichi:
Divided Diet: We need to have a profound insight into politics; Time
to reconsider parliamentary democracy

Yomiuri:
Spreading concerns in the wake of the stalled American economy owing
to the subprime mortgage loan problem

Nikkei:
Way to low carbon society: Japanese firms should lead the rest of
world with their technology

Sankei:
Japan's national security: Prime minister should talk about his
strategy to protect national interests

Tokyo Shimbun:
Thinking at the start of the year: Kyoto Protocol

Akahata:
World in 2008: We must boost the trend for peace and progress

(Corrected copy): Japan, US to begin talks later this month on MD
intelligence-sharing roadmap

SANKEI (Page 1) (Excerpts)
January 3, 2008

It was learned yesterday that the governments of Japan and the
United States would begin talks possibly later this month on drawing
up a roadmap for smoothly implementing an intelligence-sharing
arrangement for intercepting ballistic missiles using the missile

TOKYO 00000019 008 OF 008


defense (MD) system. The two governments will undertake coordination
to conclude a memorandum of understanding (MOU) on sharing
MD-related intelligence before the Air Self-Defense Force completes
the new basic air defense system called JADGE in fiscal 2009.

An agreement was reached on drawing up the roadmap in the Japan-U.S.
Security Consultative Committee of foreign and defense ministers
(2+2) held in Washington in May 2007. But the plan has not proceeded
due to strong U.S. concern about Japan's intelligence security
system in the wake of a leak of pivotal information on the Aegis
system. A senior Defense Ministry official said: "We were pressed to
produce evidence that the information has not flowed out to other
countries, so we could not bring up the subject of drawing up the
roadmap."

The Maritime Self-Defense Force is scheduled to deploy later this
month the Aegis-equipped Kongo, the first vessel loaded with
sea-based SM-3 missiles, to Sasebo base in Nagasaki Prefecture. In
addition, the Air Self-Defense Force is slated to complete deploying
the ground-to-air PAC-3 system at four locations in the metropolitan
area in March. For this reason, the two governments reached an
agreement to start talks early.

The U.S. military has also deployed MD-related weapons and radar
systems in Japan. In order for the two governments to jointly deal
with incoming ballistic missiles, it is essential to closely share
intelligence on signs of missile launches, confirmation of launches,
tracking missiles' trajectories, and a set of procedures for
intercepting incoming missiles. In the event a ballistic missile is
launched toward Japan by a neighboring country, it would land in
Japan in about eight to 10 minutes, according to a Defense Ministry
source. If intelligence sharing does not work properly, chances are
that the MD system will not function, and the two countries would
fail to intercept the incoming missile.

The two governments will begin talks on the roadmap that would
incorporate specific ways to utilize the intelligence and to
establish an intelligence security system after determining the
kinds of information and data that should be shared even in a matter
of minutes in order to operate the MD system accurately. The roadmap
is expected to be drawn up in line with progress on the
implementation of the MD system.

DONOVAN

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