Cablegate: Daily Summary of Japanese Press 01/04/08

DE RUEHKO #0026/01 0060538
P 060538Z JAN 08





E.O. 12958: N/A



(1) Japan-U.S. defense interests (Part A) (Sentaku)

(2) Tasks after enactment of new antiterrorism legislation: Need to
discuss future operations with other countries; What is Japan
expected to do? (Yomiuri)

(3) Year of decisive battle -- interviews with leaders of ruling and
opposition parties: DPJ Secretary General Hatoyama mentions the
possibility of teaming up with some LDP members (Nikkei)

(4) Editorial: Future of ODA - Secure the budget to ensure
international contribution (Mainichi)

(5) Noboribetsu Grand Hotel picked as lodging site for U.S.
delegation to G8 Summit, beating out favored choice Niseko (Hokkaido




(1) Japan-U.S. defense interests (Part A)

SENTAKU (Pp. 110-113) (Almost full)
January 2008 issue

A giant leap made by Yamada Corp, which used to be a small real
estate company, is attributable to Hideaki Tamura, an
Air-Self-Defense-Force-officer-turned-Upper House lawmaker. Minoru
Genda, who can said to be Tamura's predecessor so to speak, played a
role in the 1976 Lockheed scandal and the 1978 Douglas-Grumman
scandal. Genda became an Upper House lawmaker after serving as ASDF
Chief of Staff. The role played by Genda in the Lockheed scandal was
the same as that by Tamura in the Yamada scandal. Similar roles were
played by Osamu Kaihara and former Vice Defense Minister Takemasa
Moriya, who had both served as Defense Policy Bureau chief and was
called the "Emperor." Kakuei Tanaka played the central political
role in the Lockheed scandal, and Nobusuke Kishi in the
Douglas-Grumman scandal. Regarding the Lockheed scandal, The New
York Times exposed that CIA funds had been funneled into Japan,
shifting eventually the investigative direction to the arrest of
Kakuei Tanaka.

There are stark similarities between the Douglas-Grumman and
Lockheed scandals and the Yamada scandal. In other words, the Yamada
scandal is a rerun of a dark drama that has repeatedly been played
in the postwar period over defense interests, especially over
aircraft interests. The Yamada scandal, however, led to the arrest
of a former administrative vice-defense minister, a rare
development. This unusual development has opened a crack to offer a
glimpse into the inner workings of Japan-U.S. defense interests.

Moriya is the key-man to shedding light on the interests associated
with U.S. force realignment in Japan. The special investigation
squad of the Tokyo District Public Prosecutors Office has begun
dashing ahead to uncover the facts about the scandal based on
Moriya's statements. Beneath lie bottomless interests in the name of
the Japan-U.S. alliance. They are the "Guam interests."

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Bechtel has strong ties to U.S. administration's inner circle

Last summer, a military delegation visited Saipan and its
neighboring islands 200 kilometers away from Guam. The group was
from the missile department of the U.S. giant corporate group

A Japanese government official said:

"Although only Guam is focused in Japan, the U.S. Defense Department
intends to create a huge military base that can become a frontline
base replacing Okinawa toward Asia by combining the areas up to the
Mariana Islands, including Saipan. A military expansion plan has
surfaced to establish training and research facilities and reserve
stockpile stations at various places to conduct training against
submarines and patrol aircraft and exercises for defending the
homeland or improve the logistical department. The plan keeps
growing in anticipation of the Japan money the government promised
at the 2+2 (Japan-U.S. Security Consultative Committee) meeting."

The realignment of U.S. forces in Japan is estimated to cost 3
trillion yen in total. Of it, the Guam relocation plan accounts for
1.1 trillion yen. Japan is to bear 60 PERCENT of it. Japan's
financial contribution is legally groundless, as it is not mentioned
in the Japan-U.S. Status of Forces Agreement on the handling of U.S.
bases in Japan. It was supposed to be covered by the expenses
connected with SACO (Special Action Committee on Okinawa) and the
"sympathy budget." But because they were insufficient to fund the 3
trillion yen, the two governments have come up the strange scheme of
making Japan foot the bill partially.

Meanwhile, the cost of relocating/integrating U.S. forces in Japan
was estimated at 2.3 trillion yen. Then U.S. Deputy Defense
Undersecretary Richard Lawless categorically said: "As long as there
is the U.S.-Japan alliance, it is natural for Japan to bear the cost
in full."

A government official took this view:

"Japan paid 300 million dollars in accordance with a secret pact at
the time of Okinawa's reversion to Japan. Japan also saved the
Republican Nixon administration suffering from the huge financial
burden of the Vietnam War. This time around, Japan, which has not
directly funded the Iraq war, has provided relief for the Bush
administration under the cloak of bearing the cost of the Guam
relocation instead of a secret pact."

The Japanese government has unilaterally been forced to make
contributions to the planned relocation. Japan, which has not been
informed of the basis of the estimate, is frightened by endless
requests from the United States.

A Japanese military corporate executive noted:

"The beautiful resort island of Guam and the islands in its vicinity
have now turned into a hunting ground for the military industry.
Although the Japanese government says it is still at a planning
stage, the realignment project is fully underway on the ground, and
Bechtel has now finally come on the stage."

Bechtel, though unlisted, is the world's strongest general

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contractor that undertakes nuclear plants and airports in Asia and
Europe. Former Secretary of State George Shultz and former Secretary
of Defense Casper Weinberger under the Reagan administration, which
pursued a military expansion policy course, once served as president
and vice president, respectively, of Bechtel. The company is a
quintessential political merchant.

Bechtel's current chairman Riley Bechtel is a member of an advisory
panel to President Bush George W. Bush. With his political power in
the backdrop, the company has won a 4 billion-yen infrastructure
improvement project, a post-Iraq war pivotal reconstruction
undertaking. This can explain why the company is ridiculed as a
postwar hyena.

Envisaging that Guam will become a military town, Bechtel reportedly
has an eye on a nuclear power generation project to cover growing
electric power consumption.

Bechtel's viral is reportedly the Shaw Group Inc.

A government source explained:

"In anticipation of the relocation, Andersen Air Force Base on Guam
completed its second runway for 2.5 billion yen just in June last
year. Shaw has also started waste disposal and environmental plant

Armitage, the fixer

Shaw is also a shrewd political merchant. The company is racking up
profits, hiring President Bush's national campaign manager as its
lobbyist, coming forward for a post-Iraq war oil plant project, and
winning orders for many post-disaster recovery projects in the
United States.

The U.S. government has recently determined fiscal 2008 budgetary
steps for the Guam relocation plan. Shaw is targeting the relocation
plan entirely dependent on Japan money.

A Japanese government official commented:

"Shaw executives visited Japan in the fall of the year before last
when the realignment plan did not take shape, and lobbied political
and business circles to swiftly disburse 700 billion yen in Japan's
contribution. The firm also concluded a consultant agreement with
Nihon Mirise Corp. run by Motonobu Miyazaki to work upon Japanese
corporations to invest in Guam."

Pestering Japan for money are senior Pentagon officials and huge
American corporate groups like Bechtel and Shaw. Actively hiring
retired military officers, Bechtel and Shaw are targeting defense
interests by using their connections. They have two ways: one is to
work upon the Pentagon through retired officers and the other is to
use former senior U.S. government officials as lobbyists.

Such individuals as Richard Armitage, who served as assistant
secretary of defense and deputy secretary of state under a

Republican administration, and William Cohen, who served as
secretary of defense under the Clinton administration despite his

being a Republican, have played since the 1990s important roles as
fixers in hunting for defense interests straddling Japan and the
Untied States. Armitage pressed Japan to revise Article 9 of the

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Constitution to allow Japan and the United States to take joint
military operations. He also urged Japan to improve its emergency
legislation and offer cooperation to the United States in the wake
of 9/11.

A source connected with the Defense Ministry took this view:

"He played a central role in addressing the question of determining
a Futenma replacement facility that drew fire from Okinawa
residents, serving as a U.S. contact person in talks on the
realignment issue. Winning a reputation from Tokyo that he lends an
ear to Japan's views, he has established himself as pro-Japanese."

It has come to light through investigations by the special
investigation squad that Armitage and his aides have received a
total of over 100 million yen over the last seven years from Yamada
International Corp., Yamada's U.S. subsidiary. Armitage established
in 1993 a consultant firm called Armitage Associates. Armitage
received funds even during his tenure as deputy secretary of state
through this firm.

A Defense Ministry source also said:

"Motonobu Miyazaki, now under arrest, indicated that he has been on
friendly terms with (Armitage) over the last 20 years. (Miyazaki)
also took the trouble of introducing (Armitage) to Moriya, who did
not have any personal connections in the United States."

Taking seriously the fact that money was paid to the senior U.S.
official, the special investigation squad is questioning Miyazaki
and others to find out detailed circumstances.

A journalist residing in the United States commented:

"He had received large sums of money from various quarters in the
name of consulting fees even from before becoming deputy secretary
of state under the Bush administration."

There is a list of clients exhibiting his enormous money-collecting
power. They all pay 5,000 dollars a year. On the list are nearly 50
companies ranging from the defense industry, such as Boeing and
Halliburton (subsidiary), to financial groups, such as Goldman

Also on the list are the Japanese Embassy, Japan National Oil Corp.
(currently Japan Oil, Gas and Materials National Corp.), Japan
Petroleum Exploration Co., Institute of Research and Innovation,
which is involved in R&D in the nuclear fuel recycling field. Such
public-interest corporations and special corporations are listed
along with Mitsubishi, Toshiba, and Yamada International.

The U.S.-based journalist also said: "Although he is regarded as
pro-Japanese, his ties exist only through money. They are convenient
clients supplying money to his business." According to a concerned
source, Armitage is also involved in the real estate business and
has invested in such companies as Pfizer and AIG. This shows his
dirty side of doing business on the strength of his money-collecting
power and political influence.

Former Secretary of Defense William Cohen has also founded a
consultant firm called Cohen Group. The firm hires former Pentagon
officials as lobbyists. Its aggressive money-collecting activities

TOKYO 00000026 005 OF 010

have often been reported by the U.S. media.

(2) Tasks after enactment of new antiterrorism legislation: Need to
discuss future operations with other countries; What is Japan
expected to do?

YOMIURI (Page 16) (Full)
January 4, 2008

Hidemichi Katsumata

The new antiterrorism special measures law intended for Japan to
resume its refueling mission in the Indian Ocean is expected to be
approved again in the Lower House possibly sometime in next week.
But this does not mean the putting to an end of debate on "war on
terrorism." Instead, it restarts the debate.

There is no end to Al-Qaeda and other terrorist organizations
traveling by sea from Afghanistan via Pakistan and Iran. They travel
by sea to transport narcotics, weapons, and people. In order to
prevent them from doing so, naval forces from the United States,
Britain, France, and Pakistan -- members of the Coalition of the
Willing -- are on the alert against terrorism and monitor the
activities of terrorists. Supplying fuel to vessels from the
coalition of willing is the role Japan's Maritime Self-Defense Force
(MSDF) will fulfill again.

But ahead of resuming this refueling mission, questions were voiced
by some SDF officers including those from the MSDF. One officer
asked, "I wonder whether the current operations are the best?"
Another said: "The war on terrorism has lasted for a long time. It
may be a wise policy for Japan to consider another form of
cooperation, while being engaged in the refueling mission."

When the terrorist attacks on the U.S. occurred on Sept. 11, 2001,
what was important then was for Japan to quickly decide to join the
international operation "the war on terrorism." It was also
important for Japan to secure the safety of SDF members to be
dispatched to take part in that operation.

At the time, Japan discussed a plan to send, in addition to
providing refueling services, the Air Self Defense Force, using such
aircraft as P-3C patrol planes, to monitor the activities of
terrorists on the sea. In December of that year, Japan began
providing fuel, and after that, the International Security
Assistance Force (ISAF) tasked with securing security in Afghanistan
informally asked Japan to send the Ground Self-Defense Force and
helicopters to Afghanistan. And the North Atlantic Treaty
Organization (NATO) approached to Japan about a plan for the SDF to
take over the role played by New Zealand's forces' Provincial
Reconstruction Team (PRT), which is operating together with
civilians at Bamyan in mid-Afghanistan.

A dispatch of the P-3C to Afghanistan was never realized, however,
partly because of difficulties in securing aircraft to be dispatched
and also the expected difficulty of guarding them. As for Japan's
participation in the PRT, even discussion on that was not held
because SDF troops have no authority to guard civilians in
international cooperation activities.

At present, more than 40 countries have taken part in the U.S. -led
Operation Enduring Freedom (OEF), and ISAF and the PRT. But it

TOKYO 00000026 006 OF 010

appears to be a reality that each country has agonized over
continuing the war on terrorism in view of the fact that more than
720 participants (as of last November) have been killed in the
operations that have continued for six years since the 9/11
terrorist attacks.

Canada saw more than 70 its soldiers killed in Afghanistan, and
Germany has had over 20 deaths. France has had over 10 deaths.
Nonetheless, these countries remain engaged in warning operations in
ISAF or in the Indian Ocean. Whether to participate in such
operations raises a very serious question involving the lives of
participating countries' soldiers and civilians. Last January, Prime
Minister Abe vowed at the NATO headquarters (in Brussels) to step up
support for the PRT. But the arguments that have continued since
last fall in the Diet, for instance, are that Japan does not have to
cooperate in the U.S.' self-defense war and that OEF is not backed
by any United Nations resolutions. No arguments like these have been
heard in any countries other than Japan, however.

Once the new antiterrorism legislation is enacted, Japan will again
dispatch MSDF vessels (to the Indian Ocean) late this month at the
earliest and resume the refueling mission in late February. Japan
will then return to the stage of international cooperation, which
has been suspended since last November. Taking the opportunity to
resume the mission, Japan needs to verify the war on terrorism in
cooperation with the U.S., Britain, France, Germany, Canada,
Australia, and other countries that are cooperating strongly
together and to discuss with those countries how to continue

Through such discussions, Japan can see and make it clear to the
public what other countries expect from Japan. For instance, the Air
Self-Defense Force (ASDF) now transports goods by means of its C130
transport planes from Kuwait to Baghdad and other Iraqi cities, but
if Kabul is included in this transport route, this transport service
will lead to supporting ISAF and the PRT. However, Japan would find
it difficult to realize a number of tasks because of legal
restrictions. Yet one thing would become clear through the
discussions: Japan would finally get rid of at least those
self-righteous Diet debates.

(3) Year of decisive battle -- interviews with leaders of ruling and
opposition parties: DPJ Secretary General Hatoyama mentions the
possibility of teaming up with some LDP members

NIKKEI (Page 2) (Slightly abridged)
January 4, 2008

Q: Prime Minister Yasuo Fukuda is unwilling to dissolve the Lower
House at an early date. Will you be able to drive him into deciding
to do so?

Major opposition Democratic Party of Japan (DPJ) Secretary General
Yukio Hatoyama: Once the public concludes the prime minister's
approach is outrageous and that the contents of his policies are
poor, the public will side with us, so we will then grill and grill
and grill him. The prime minister may not be bothered, even if the
opposition bloc adopts a censure motion against him in the Upper
House and causes the Diet to be paralyzed, but if the opposition
parties just do nothing when the public gets angry (at the
government), the public may suspect that there is a
behind-the-scenes agreement between the ruling and opposition

TOKYO 00000026 007 OF 010


If the government and the ruling parties steamroll their way by
front-loading a bill intended to continue the provisional tax rate
applicable to the gasoline tax, then the prime minister will become
responsible also for that bill in addition to the bill aimed at
resuming the refueling mission in the Indian Ocean. It is only
natural for the DPJ to envision the possibility of presenting a
censure motion against the prime minister.

Q: Do you think the end of March, when the provisional tax rate is
to expire, will be the time for a showdown?

Hatoyama: If the government front-loads the submission of such a
bill, we will then need to come up with a counter bill. It is
possible for the DPJ to submit a bill aimed at freezing the
provisional tax rate sometime between January and March before the
expiration of that tax rate.

Q: There is those who suggests submitting a censure motion against
Health Minister Yoichi Masuzoe in connection with the question of
identifying unidentified pension premium payment records.

Hatoyama: It (the submission of a censure motion) may give the prime
minister an excuse for shuffling his cabinet. The prime minister may
dodge the question of the bungled pension premium payment record by
arguing the situation has now changed.

Q: How many seats does your party aim to grab in the next Lower
House election?

Hatoyama: The DPJ's goal is to secure 151 seats from single-seat
constituencies. If the DPJ can grab that number, we can expect to
win 70 seats from the proportional representation constituency. The
DPJ will then be certain to become the first party. Once the DPJ
becomes the first party, it is only natural that Prime Minister
Fukuda will hand over the reins of government to us. It would be in
accord with the Constitution to then choose the prime minister from
the DPJ.

Q: Last year the DPJ announced it would field 250 candidates, but
the process of recruiting candidates is running late.

Hatoyama: We need to recruit 20 more candidates to field. Many slots
are still open in Tokyo district. In Kanagawa and Chiba districts, a
final decision is being formed about whom to field. I think it is
possible to line up 250 candidates to field by the end of January.

Q: Rumor has it that big-name party leaders may trade their
electoral districts for those districts where an uphill battle is

Hatoyama: I can't tell you anything about that. Trading electoral
districts could incur local criticism. It is not at all that easy to
do so. The point is what DPJ President Ichiro Ozawa thinks about

Q: Rumors are flying around that a grand coalition will be formed
after the Lower House election or that another political realignment
will occur.

Hatoyama: If the DPJ becomes the first party in both chambers of the

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Diet, it is likely that we will rally those who sympathize with our
party's views. Someone who has a centripetal force in (both the
ruling Liberal Democratic Party (LDP) and the DPJ) can drive a wedge
in the other party.

Q: In such a case, is it possible for the DPJ to team up with a
liberal group in the LDP?

Hatoyama: It is fully possible to do so.

(4) Editorial: Future of ODA - Secure the budget to ensure
international contribution

MAINICHI (Page 5) (Full)
December 28, 2007

Outlays related to official development assistance (ODA) in the
General Account portion of the government's draft budget for fiscal
2008 totaled 700.2 billion yen, a reduction of 4 PERCENT from the
previous year's amount. Compared to the 1.16 trillion yen budget in
fiscal 1997, there has been a 40 PERCENT drop in ODA. In the reform
effort to bring expenditures and revenues together, it was decided
that the ODA budget until fiscal 2011 would be cut 2 to 4 PERCENT

The OECD's Development Assistance Committee (DAC) in a calculation
of assistance performance over the last ten years, ranked Japan in
sixth place (as a global donor). In 2006, Japan was third after the
United States and Britain, but now it has been overtaken by Germany,
France, and Italy. The ranking reflects the cuts in the ODA budget.

Fiscal policy must be made sound in order to return the economy to
its normal state. At the same time, when Japan is making
international contributions, the trend of developing countries in
decline must be given serious consideration. The Overseas Economic
Cooperation Conference established last year in May in order for the
prime minister, foreign minister, finance minister and other top
officials to discuss the ODA problem from a wider point of view is
now supposed to hammer out a policy direction.

Since the revision of the ODA Charter in 2003, the government has
focused aid policy on choices and concentration and strategy.
However, with the General Account (of cash portion) of the ODA
budget being cut, technical cooperation and grant aid also will
unavoidably dwindle. Yen loans, which draw funds from the Fiscal
Investment and Loan Program, and contributions to international
organizations have a limited capability of supplementing that.

In October 2008, the yen-loan (reimbursable aid) portion of the
Japan Bank of International Cooperation (JBIC) will merge into the
Japan International Cooperation Agency (JICA), which is the agency
that implements technical assistance. The non-reimbursable aid
division of the Foreign Ministry also in principle will be under
JICA's jurisdiction. Unified operation of the ODA program will
finally be possible. In May, the fourth Africa Development
Conference will be held, and in July, the G8 Summit Conference will
be held at Lake Toya in Hokkaido. From the aid perspective, these
are good chances for Japan to speak out internationally.

Japan has made an international pledge to add $10 billion to ODA
from 2005 to 2009, and to double aid to Africa in three years,
starting in 2005. The extra $10 billion was used for large-scale

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debt relief, including for Iraq, and the aid for Africa is likely to
be attained, since the original amount of aid to that continent was

The cooperation being sought internationally now are contributions
to the United Nations' Millenium Development target, which sets
annual targets for 15 years, measures to counter global warming, and
measure to deal with atmospheric pollution. With such situations in
mind, the ODA White Paper for 2007 noted the necessity of
international cooperation to expand such types of official
assistance. Such international cooperation clearly positions as
important not only reimbursable and non-reimbursable financial
cooperation but also financing from the international financial
division (formerly Japan Export-Import Bank) of JBIC and assistance
that link the government and private sectors. Even so, with the
budget continued to be slashed, Japan's presence in such efforts
will wane.

As was introduced in the ODA White Paper, everywhere in the world
are Japanese whose mission is international cooperation. In the
development of Southeast Asia, Japan contributed with building
infrastructure and other projects. Here, too, the value of
assistance must not dwindle.

(5) Noboribetsu Grand Hotel picked as lodging site for U.S.
delegation to G8 Summit, beating out favored choice Niseko

December 28, 2007

(Photo of Noboribetsu Grand Hotel at Noboribetsu Spa that the U.S.
government delegation has decided to use as its lodging)

It was learned yesterday from several informed sources that
Noboribetsu Grand Hotel (261 rooms, located at Noboribetsu Spa in
Noboribetsu City) has been picked as the lodging site for the U.S.
government delegation to the G8 Summit at Lake Toya that will
consist of some 800 officials, the largest scale of the
participating countries. The Foreign Ministry has also confirmed
that fact. As early as the beginning of the new year, the hotel
management and the U.S. Embassy are expected to start negotiations
to work out such details as the room charges and the like.

According to sources, the Embassy notified the hotel late last week
that the Grand Hotel would be used as the main lodging site. The
U.S. side has already investigated the hotel's equipment and
security aspects, and it has essentially made the selection.
However, the entire delegation cannot be accommodated there, so the
possibility is high that another hotel will be used for a portion of
the delegation.

At first, the Higashiyama Prince Hotel in Niseko-cho was seen as the
favorite, but suddenly, the choice was boiled down to Noboribetsu
Grand Hotel. The reasons seemed to be: 1) its track record for
security, with the Showa Emperor having stayed there twice; 2) its
historical connection to the Occupation's GHQ after the end of the
war; 3) its name value as a representative hot-springs spa in Japan;
and 4) its geographical superiority, being close to both New Chitose
Airport and the main expressway.

Noboribetsu Grand Hotel in 2008 will celebrate its 70th anniversary

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since its establishment. By the time of the lengthy holiday season
in May prior to the Summit, such adjustments as remodeling guest
rooms and changing the beds will be carried out. According to the
Noboribetsu Tourist Association, with Japanese-style rooms being the
main feature of Noboribetsu Spa, the Grand Hotel has the most
Western-style rooms, approximately 90, and it can provide
Western-style service to its guests.


Asahi, Mainichi, Yomiuri, and Nikkei:
N.Y. crude oil prices briefly hit record 100 dollars

GSDF secret document found at Chinese man's apartment during police
search in connection with drug case

Tokyo Shimbun:
Reformist governors to launch decentralization promotion federation,
while seeking consent of nonpartisan lawmakers

Hard spring for 100,000 high school students not entitled to
interest-free scholarships


(1) U.S. presidential campaign: We hope to see debate occur that may
change the world
(2) Let's prepare for flu by learning what it is like

(1) Thinking of 2008: Let's establish a model country of mature

(1) How to eliminate threat of North Korea

(1) Way to a low carbon society: Grass-roots efforts will lead the

(1) Stupidity of using tax and financial reforms as a campaign tool

Tokyo Shimbun:
(1) Thinking at the start of New Year: Embryonic movements leading
to historic change

(1) Economic outlook for 2008: Dollar's supremacy now at turning


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