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Cablegate: Japanese Morning Press Highlights 01//08

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0007/01 0030447
ZNR UUUUU ZZH
P 030447Z JAN 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0708
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
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 7659
RUEHFK/AMCONSUL FUKUOKA 5263
RUEHOK/AMCONSUL OSAKA KOBE 8928
RUEHNAG/AMCONSUL NAGOYA 3958
RUEHKSO/AMCONSUL SAPPORO 5881
RUEHBJ/AMEMBASSY BEIJING 0899
RUEHUL/AMEMBASSY SEOUL 6967
RUCNDT/USMISSION USUN NEW YORK 7631

UNCLAS SECTION 01 OF 07 TOKYO 000007

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 01//08


Index:

Global warming:
1) Japan to buy China's emission rights in order to help attain own
greenhouse gas reduction target under Kyoto Protocol (Yomiuri)
2) Cabinet Office's analysis shows that Japan's pace in CO2
reduction is too slow (Nikkei)
3) Japan, UK signed memo of understanding lining up position on
achieving 80 PERCENT cut in greenhouse gases by 2050 target (Tokyo
Shimbun)

4) Survey of top companies finds 80 PERCENT optimistic about
economic recovery, 2 PERCENT growth (Yomiuri)

Defense and security affairs:
5) Japan to strengthen cooperation with NATO, with possibility in
mind of participation in ISAF operations (Sankei)
6) Japan, U.S. to draft MD-related comprehensive road map for
intelligence sharing (Sankei)
7) More details come out about former defense chief Kyuma's
acceptance of 100 million yen from acquaintance that was never
reported on his assets statement (Mainichi)

8) Only 34 out of 53 countries invited plan to attend Japan's
development conference on Africa (Yomiuri)

Election fever:
9) Democratic Party of Japan President Ozawa in New Year's address
says he is ready to go down in flames achieving goal of party
winning the Lower House race (Yomiuri)
10) Poll on next election: 65 PERCENT see social welfare (pensions)
as main campaign issue (Tokyo Shimbun)

Articles:

1) Tokyo, Beijing reach general agreement allowing Japan to buy
China's greenhouse-gas emissions rights under reductions achieved
through ODA projects

YOMIURI (Page 1) (Excerpt)
January 3, 2008

It was learned on Jan. 2 that in order to reach the target for
greenhouse gas reduction set by the Kyoto Protocol, Japan has
reached a general agreement with China under which the Japanese
government and companies will buy from China those emission quotas
achieved through reductions of greenhouse gases brought about by
yen-loan projects. The Japanese and Chinese governments aim to sign
a formal agreement during the visit to Japan of President Hu Jintao
in late March. If the transaction with China is successful, Japan
will be able to make great progress in achieving its reduction
target under the Kyoto Protocol.

2) Japan slowing down in reducing CO2 emission in comparison with
Germany, other countries, according to Cabinet Office's analysis

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

Japan's effort to reduce carbon dioxide (CO2) emissions is slowing
down in comparison with other countries, the Cabinet Office
analyzes. In terms of the movements of CO2 emissions per gross

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

domestic product (GDP) since 1975, Japan, compared with the United
States and Germany, has been slow in reducing CO2 emissions and its
reduction pace has been leveling off since the latter half of the
1980s. Japan is described as a country that uses energies
efficiently and restrains greenhouse gas emissions, but Japan is no
longer on a higher level in energy efficiency than it was before.

The Cabinet Office computed GDP based on purchasing power parity and
calculated CO2 emissions per one-million-dollar GDP from 1975
through 2004.

Japan's CO2 emissions in 1975, right after Japan suffered the first
Oil Shock, was 539 tons with 1,061 tons emitted by the U.S. and 843
tons by Germany. By the year 2004, Japan reduced its CO2 emissions
by 31 PERCENT , while the U.S. reduced 48 PERCENT and Germany 54
PERCENT .

As a result, in terms of CO2 emissions per one-million-dollar GDP in
2004, Japan emitted 371 tons, and Germany 387 tons. This means that
the two countries were almost on the same level in emission
reduction. Each country has special factors like the reunification
of two Germanys. But in view of macro economic aspects, Japan has
failed to raise the speed of reducing CO2 emissions since 1985, when
Japan's GDP-based emission reduction marked below 400 tons.

3) Japan, U.K. exchanged memorandum stating, "It will be possible to
attain the goal of reducing a maximum of 80 PERCENT of greenhouse
gas emissions" by 2050

TOKYO SHIMBUN (Top play) (Excerpts)
January 3, 2008

As part of their efforts to deal with climate change, the Japanese
and British governments have exchanged a memorandum of understanding
that it would be attainable for the industrialized countries to
reduce a maximum of 80 PERCENT of the greenhouse gas emissions by
2050, sources revealed. This figure will be proposed ahead of the
Group of Eight (G-8) summit conference in Lake Toya, Hokkaido, in
July to be set as a numerical target for the major countries in the
post-Kyoto Protocol period. By adopting a numerical target, the
industrialized countries apparently aim to urge future "large
emitters" of greenhouse gases like China and India to address
climate change.

Japan and Britain have discussed measures against global warming
between their officials from the Japanese Environment Ministry and
the British Department for Environment, Food & Rural Affairs in line
with the action program agreed on at the G-8 summit in Gleneagles,
Britain.

The memorandum makes policy recommendations like establishing an
international carbon dioxide (CO2) market intended to promote the
collection and storage of CO2 and putting labels showing the amount
of CO2 emissions on products. The memorandum emphasizes that by so
doing, it is important to encourage the public to act to prevent
climate change so that the world will shift to a "low carbon
society."

Moreover, the memorandum mentions the need to manage forests
globally, design and construct energy efficient housing and note
that if such technologies are developed and such economical measures
are taken, the industrialized countries can reduce 60 PERCENT -80

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

PERCENT of the greenhouse gas emissions by 2050, citing the survey
results.

The Japanese and British governments are to hold a working-level
session in Tokyo on Feb. 13-15 and will declare a set of policy
proposals for the post-Kyoto Protocol age during the upcoming G-8
summit in Lake Toya, Hokkaido.

4) Outlook of 30 top companies: 80 PERCENT see economic recovery
continuing, majority expect economy to grow at less than 2 PERCENT ,
lower than government's outlook

YOMIURI (Page 2) (Excerpts)
January 3, 2008

The Yomiuri Shimbun has carried out a questionnaire survey of the
top managers of 30 major companies on their outlook for the economy
this year. On the question of the state of the economy in 2008, 7
managers replied that growth will exceed the pace in 2007, and
another 10 said that growth would be maintained at the same pace. If
the seven managers who replied that growth would continue although
at a slower pace, a total of 24 gave an outlook of economic recovery
continuing into 2008, as well.

The government, in its economic outlook approved by the cabinet last
December, predicted that the economy in 2008 would experience 2
PERCENT real growth. In contrast, 15 of the 30 top managers
expected the economy to grow in the 1.5 PERCENT to less than 2
PERCENT range. Another four managers predicted growth between 1
PERCENT and less than 1.5 PERCENT , so a majority of the executives
gave an outlook that was more severe than the government's.

However, the remaining 11 top executives expected the economy to
grow in the 2 PERCENT to less than 2.5 PERCENT range.

As for causes for concern (multiple choices of up to three
responses), the most frequent response with 28 executives was a
slowing of the pace of the U.S. economy. Next, with 15 executives
each, came confusion in the financial markets caused by the U.S.
sub-prime loan problem - housing loans to low-income persons - and
the rise in the price of crude oil. The fourth most chosen response
was a reduction in personal consumption.

5) Government, ruling parties to step up cooperation with NATO with
ISAF participation in mind

SANKEI (Page 2) (Excerpts)
January 3, 2008

It became clear yesterday that the government and ruling parties
would take steps to strengthen cooperation with NATO regarding the
war on terror in Afghanistan. Coordination is underway to send
former LDP Secretary General Hidenao Nakagawa of the Machimura
faction, to which Prime Minister Yasuo Fukuda used to belong, to
NATO member countries, such as Britain, in April to visit Brussels
where NATO headquarters is located.

During his stay in Britain and other countries, Nakagawa is
scheduled to exchange views on the International Security Assistance
Force (ISAF) in Afghanistan led by NATO. Debate on Japan's possible
participation in ISAF is likely to intensity.


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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

Nakagawa will visit Britain at the invitation last November by the
Royal United Services Institute (RUSI) for Defense and Security
Studies. Nakagawa is expected to be accompanied by several Machimura
faction members. The group is slated to discuss with key British
government officials and others Japan's participation in ISAF,
cooperation with a new U.S. government to be launched after the
presidential election in November, and other matters.

Major opposition Democratic Party of Japan (DPJ or Minshuto)
President Ichiro Ozawa said in his contribution to the Sekai October
2007 issue that if his party holds the reins of government, he would
bring about Japan's participation in the ISAF. The government,
however, remains cautious about ISAF participation, as seen in Prime
Minister Fukuda's comment, "We are concerned that if SDF personnel
were (to join ISAF), that would bring about problems in connection
with the Constitution."

Despite that there is a persistent view in the government, mainly in
the Foreign Ministry, that the path to ISAF participation should be
kept open in order to make international contributions. Defense
Minister Shigeru Ishiba in December pointed out the possibility of
ISAF participation being constitutional, saying: "(ISAF activities)
are security operations, so (ISAF participation) is not totally out
of the question theoretically." A government source also noted: "If
the Taliban (antigovernment militant group) can be identified that
it is not a state or a party pursuant to a state, Japan would be
allowed to join the ISAF."

6) 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
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 BADGE 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

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

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.

7) Kyuma received 100 million yen as a certified check; Provider
used check because he did not know Kyuma's bank account

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

In connection with allegation that former Defense Minister Fumio
Kyuma received 100 million yen from a 64-year-old acquaintance, it
has been found that the former defense chief had received the entire
amount in certified check form. The provider of the money is usually
not known in a cash transaction using such a check. After receiving
the funds, Kyuma repeatedly remitted money via a bank account that
left records, exposing the unnatural aspect of a money transaction
that used a certified check.

According to the acquaintance who provided the 100 million yen and
who is also a former auditor of Tokyo's Koto Ward-based welfare
equipment sales company OTI, he borrowed 100 million yen from OTI in
late November 2005 and directly handed the 100-million-yen certified
check to Kyuma in January 2006 after depositing the money.

According to Kyuma, he cashed the check and put it in his bank
account. Of that amount, 85 million yen was used for purchasing real
estate on Tokunoshima, Kagoshima Prefecture, owned by a female
acquaintance via a bank account held by IMEC (TN: phonetic) a
Shinjuku-based company providing information on military, political
and economic affairs, for which Kyuma served as a director.

According to a financial source, one can use a certified check for a
large sum of money, but in the event the check is lost and cashed by
a third party, retrieving it would be difficult. For this reason, a
bank account, which has high reliability, is usually used in a
transaction to transmit a large sum of money. But with the use of a
certified check, the source can remain anonymous. This can explain
why such checks are often used in crimes.

The acquaintance explained that he had used a check because he "did
not know Mr. Kyuma's bank account."

8) Only 34 of 53 African countries notified Japan as of end of last
year of their participation in 4th TICAD slated for May

YOMIURI (Page 4) (Full)

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

January 3, 2008

The government will host the 4th Tokyo International Conference on
Africa's Development (TICAD) in May, but as of the end of last year,
only 34 of the 53 African countries responded that they would
participate in the conference. Foreign Minister Koumura will head
for Tanzania today and ask that country to send head-of-state-level
officials to the conference. The government intends to install
former Prime Minister Mori in the post of chair of the TICAD, and it
will ask Mori to visit Ethiopia and other countries possibly in late
January to encourage by demonstrating Japan's emphasis on Africa
those countries that have not declared their participation in TICAD
to decide to come.

Japan initiated TICAD in 1993, when the international community had
lost interest in Africa after the end of the Cold War. In recent
years, however, various countries have been eager to provide
assistance to Africa in part because of the natural resources there.
As a result, TICAD has a weak presence on the continent.

In the 3rd TICAD, 23 African countries sent head-of-state-level
officials to it, but when China hosted the China-Africa Cooperation
Forum held in November 2006, 48 African countries took part in it.
Of them, 35 countries sent their head-of-state-level officials to
the forum.

The Ministry of Foreign Affairs (MOFA) plans to secure the
participation of more head-of-state-level officials than in China's
forum with one MOFA official noting, "Japan, whether it likes or
not, will be compared to China in terms of ranks and the number of
participants."

9) DPJ President Ozawa expresses his "fireball" resolve in his New
Year speech to grab a majority in Lower House election

YOMIURI (Page 4) (Full)
January 3, 2008

The major opposition Democratic Party of Japan's (DPJ) President
Ozawa in a New Year's party held in his private residence in Tokyo
on Jan. 1 expressed his views on the next Lower House election and
his resolve to realize a change of government: "The Lower House
election will definitely occur sometime this year. It will be the
last opportunity for the public to make a choice. Without a change
of government, Japan will only face a gloomy future. I am firmly
resolved to become a fireball and do everything I can to grab a
majority of seats in the Lower House."

Ozawa spoke of the currently divided Diet where the ruling bloc
holds a majority in the Lower House but the opposition parties put
the Upper House under their control: "Because we have a majority in
the Upper House, how much can we contributed to rectifying politics
led by the ruling coalition of the Liberal Democratic Party and the
New Komeito. As a result of our backing the pleas of drug-caused
hepatitis C patients for compensation, the prime minister was forced
to accept their demand."

10) Opinion poll on Lower House election: 65 PERCENT see social
welfare as campaign issue, underscoring public's unhappiness with
pension problem (Tokyo Shimbun)

TOKYO SHIMBUN (Page 3) (Excerpts)

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08

January 3, 2008

The Japan Research Institute, of which this newspaper is a member,
carried out a national opinion survey on a direct interview basis on
Dec. 1-2 last year on the unclear political situation with the two
chambers of the Diet under different party control, and on the next
Lower House election. Asked to pick up to two campaign issues
expected in the Lower House election that could take place this
year, the top selection with 65 PERCENT of respondents was "social
welfare," followed by "the economy, jobs, and income disparity,"
with 40 PERCENT , and "tax and fiscal policy reforms," with 37
PERCENT . The result underscores there is deep public resentment
about such domestic issues as the missing pension records.

On the timing of the election, the most frequent answer with 31
PERCENT was before mid-year after the budget is passed, followed by
"as soon as possible," with 30 PERCENT of the public. On the result
of the Lower House election, 50 PERCENT replied that "it would
better for the Liberal Democratic Party and the New Komeito to
maintain their majority," surpassing the 41 PERCENT who said they
did not mind if the coalition lost its majority.

DONOVAN

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