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Cablegate: Daily Summary of Japanese Press 04/23/08

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1122/01 1140829
ZNR UUUUU ZZH
P 230829Z APR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3695
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 9808
RUEHFK/AMCONSUL FUKUOKA 7429
RUEHOK/AMCONSUL OSAKA KOBE 1103
RUEHNAG/AMCONSUL NAGOYA 5816
RUEHKSO/AMCONSUL SAPPORO 8025
RUEHBJ/AMEMBASSY BEIJING 2968
RUEHUL/AMEMBASSY SEOUL 8987
RUCNDT/USMISSION USUN NEW YORK 9494

UNCLAS SECTION 01 OF 07 TOKYO 001122

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 04/23/08


INDEX:
AMERICAN EMBASSY, TOKYO
PUBLIC AFFAIRS SECTION
OFFICE OF TRANSLATION AND MEDIA ANALYSIS
INQUIRIES: 03-3224-5360
INTERNET E-MAIL ADDRESS: otmatokyo@state.gov
DAILY SUMMARY OF JAPANESE PRESS
April 23, 2008

INDEX:

(1) TOP HEADLINES

(2) EDITORIALS

(3) Prime Minister's schedule, April 22 (Nikkei)

(4) Rush of bills clear Lower House before revote on bill amending
Special Taxation Measures Law; Ruling, opposition blocs make
concessions on uncontroversial bills (Nikkei)

(5) Koike suddenly emerges as likely post-Fukuda prime ministerial
candidate: Making strategic-move without hesitation, checking Aso
(Sankei)

(6) Japan-South Korea summit: Fukuda, Lee agree to cooperate for
settlement of North Korea's abduction, nuclear program issue
(Nikkei)

(7) U.S. military may deploy VTOL aircraft to Okinawa: Koumura
(Ryukyu Shimpo)

ARTICLES:

(1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:
Three Chinese including one Nomura Securities employee arrested for
insider trading

Nikkei:
Fuji Film, Daiichi Sankyo to domestic-manufacture anti-influenza
drugs

Akahata:
House of Councilors member Koike of JCP claims that insurance
premiums for the medical system for the elderly will indefinitely
increase, be doubled in fiscal 2025, when baby boomers join the
system

(2) EDITORIALS

Asahi:
(1) Death sentence for man who killed mother and child: If you are a
citizen judge....
(2) Nomura employee's insider trading outrageous

Mainichi:
(1) Death sentence for killing mother, child likely to enhance
tendency for strict punishment
(2) Arrest of Nomura employee: Not seen as a mere crime committed by
individual employee

TOKYO 00001122 002 OF 007

Yomiuri:
(1) Death sentence for killing mother, child as appropriate ruling
(2) Insider trading by Nomura employee outrageous

Nikkei:
(1) Death sentence for killing mother, child: Heavier responsibility
for crime handed down
(2) Nomura employee's illegal act: Company needs to review its
information management system from every angle

Sankei:
(1) Insider trading by employee in charge of M&As at Nomura a
serious issue
(2) Public's feelings reflected in death sentence

Tokyo Shimbun:
(1) Death sentence for killing mother, child leaves heavy task
(2) Is it necessary to continue the nationwide achievement test for
five years?

Akahata:
(1) Railroading the bill on "Host Nation Support (sympathy)
agreement" through Diet is unacceptable

(3) Prime Minister's schedule, April 22

NIKKEI (Page 2) (Full)
April 23, 2008

09:01
Attended a cabinet meeting. Internal Affairs and Communications
Minister Masuda stayed on.

09:56
Make an informal representation at the Imperial Palace about
decoration.

10:55
Met at the Kantei Deputy Foreign Minister Sasae, Economic Affairs
Bureau Director-General Otabe, Environmental Ministry Global
Environment Bureau Director-General Minamikawa, Assistant Deputy
Chief Cabinet Secretary Ando and others.

12:15
Met Chief Cabinet Secretary Machimura.

13:58
Met Lower House member Yasufumi Tanahashi, joined in by LDP
Administrative Reform Headquarters chief Chuma. Tanahashi stayed
on.

15:00
Met LDP Secretary General Ibuki and Machimura. Machimura stayed on.
Afterward attended a global warming council meeting.

17:04
Met cabinet special adviser Okuda, followed by Deputy Foreign
Minister Kohno, followed by Economic and Fiscal Policy Minister
Ota.

18:14

TOKYO 00001122 003 OF 007


Visited the IT Strategic Headquarters.

19:03
Returned to his official residence.

(4) Rush of bills clear Lower House before revote on bill amending
Special Taxation Measures Law; Ruling, opposition blocs make
concessions on uncontroversial bills

NIKKEI (Page 2) (Abridged)
April 23, 2008

Under the divided Diet where deliberations on legislations have been
stalled, the ruling parties have begun hurriedly sending bills from
the House of Representatives to the House of Councillors. For the
sake of smooth enactment, ruling and opposition parties have agreed
to make changes to some uncontroversial bills, such as the one for
measures against the possible outbreak of a new strain of influenza.
Such a scene is rare at a time when the closure of the Diet is less
than two months away. The aim is to obtain prospects for the bills'
passage before the Diet is thrown into turmoil by an override revote
in the Lower House, possibly on April 30, on a bill amending the
Special Taxation Measures Law.

Since April 15, the Lower House has approved 13 bills in its plenary
sessions and sent them to the upper chamber. An additional six bills
are expected to clear the Lower House on April 24-25. As of April
14, 51 bills were still in the Lower House. The lower chamber has
approved a little less than 40 PERCENT of the bills, including the
ones projected to clear the chamber, in just ten days.

The lower chamber's swift passages of bills reflect the ruling
bloc's desire to ensure sufficient time for deliberations in the
opposition controlled-Upper House. In anticipation of boycotts of
deliberations by the Democratic Party of Japan following its
submission of a censure motion against Prime Minister Yasuo Fukuda
on April 30 or later, the ruling camp apparently also wants to
expose the Upper House's inability by sending as many bills as
possible to the chamber.

April 16 was the deadline for the ruling parties to resort to a
two-thirds majority override vote by using the constitutional 60-day
rule in the ongoing Diet session, which closes on June 15. With the
G-8 Summit coming up on July 7, a plan has also cropped up in the
ruling bloc to extend the session for about 10 days until late June
to make every effort, including the option of a revote, for the
enactment of key bills

At the same time, both the ruling and opposition blocs have made
concessions on many pressing subjects.

For instance, the LDP and DPJ have reached a broad agreement to
enact a bill amending the Infection Prevention Law and the
Quarantine Law including measures against a new strain of influenza
after making some changes to the legislation. This was followed by
the Upper House Health, Labor, and Welfare Committee's decision on
April 22 to get the bill amending the two laws approved by the Lower
House and the Upper House on April 24 and 25, respectively.

The two parties have also basically agreed to make changes to a
basic space bill for promoting the development and use of space and
a special measures bill to ensure caregivers. Both parties have

TOKYO 00001122 004 OF 007


begun intra-party procedures on April 22.

Such steps reflect the shared desire by the ruling and opposition
blocs to enact pressing and uncontroversial bills before the Diet
stalls later this month due to a pitched battle. They also
apparently want to dodge the public criticism that by putting high
priority on a political battle, political parties have been
neglecting key policy issues.

(5) Koike suddenly emerges as likely post-Fukuda prime ministerial
candidate: Making strategic-move without hesitation, checking Aso

SANKEI (Page 5) (Full)
April 23, 2008

With public support rates for the Yasuo Fukuda cabinet plummeting,
former Defense Minister Yuriko Koike has surfaced as a potential
post-Fukuda prime ministerial candidate. Koike nonchalantly said: "I
am honored to hear that, but it is nothing but a joke." Fielding
Koike as a candidate for the post of prime minister is becoming a
far more realistic prospect than ever before, intertwined with the
motives of those in the party wanting to check former Secretary
General Taro Aso, a prime candidate for the premiership. If a
pattern of contest similar to the Hillary Clinton vs. Obama race in
the U.S. presidential election appears in the next Liberal
Democratic Party (LDP) presidential election, there is a strong
possibility of the LDP regaining impetus. If a"Koike fever" flares
up, a Lower House dissolution mood would also emerge.

Koike on the 22nd delivered a one-hour speech at a party of
mid-ranking LDP lawmakers. She stated:

"My initials (in Japanese order) are KY - which some are reading as
"Kankyo o Yokusuru (meaning "improve the environment"). Since I once
belonged to the New Party Japan, I have many peers in the Democratic
Party of Japan (DPJ or Minshuto). Though we belong to different
parties, we share the same perception that we must change Japan. I
hope I can serve as a coordinator for an adult-like approach."

After she started speaking, she suddenly changed the venue and shut
out the media. An aide to her explained, "Since it is a delicate
time, ..." However, telltale signs were reportedly spotted in her
behavior indicating that she was aware of her position as a possible
candidate to replace Fukuda.

She has come under the spotlight as a candidate for the premiership
since she visited China along with former Secretary General Hidenao
Nakagawa on March 23-24. Nakagawa introduced her to the Chinese side
by saying, "She is a new leader who will forge the future of
Japan."

In mid-May, she visited Russia along with former DPJ President Seiji
Maehara and took part in an international conference. She also
launched the Parliamentarian League to Achieve the Kyoto Protocol
Goal (Mokutatsu Parliamentarian League) on April 9. On April 9, she
dined with former Prime Minister Junichiro Koizumi, who had assumed
the title of honorary advisor to the parliamentarian league, and
Seiji Maehara. Koizumi during the meal said, "We have here two prime
ministerial candidates. An interesting thing might happen."

Koike explained, "I was invited to dinner. That's why I went. It's
as simple as that." However, it appears that she has begun planning

TOKYO 00001122 005 OF 007


her next move with an eye on the political situation becoming
unstable in the future.

The April edition of "Domani," a fashion magazine for women,
featured a gravure article titled "Dreaming Japan of Tomorrow -- the
Other Side of Manliness -- Friendly Career-Track Politician." She is
expected to publish a new work in June titled "Wasteful Japan,"
which focuses on environmental issues.

She started a career as a politician after working as a newscaster.
Since then, she has flexibly sided with the leaders of the hour,
such as former Prime Minister Morihiro Hosokawa, DPJ President
Ichiro Ozawa and Koizumi. Many observers are of the opinion that she
is quick to catch the political situation, like Koizumi, as one
lawmaker who once served as a cabinet minister put it.

Koike said, "I am just behaving with a natural stance." However, no
doubt she is sensitive to skirmishes in political circles. When will
she make the next move with an eye on Aso, who remains committed to
a strategy of waiting until the time is ripe.

(6) Japan-South Korea summit: Fukuda, Lee agree to cooperate for
settlement of North Korea's abduction, nuclear program issue

NIKKEI (Page 2) (Excerpts)
April 22, 2008

Prime Minister Yasuo Fukuda during the summit with South Korean
President Lee Myung Bak on April 21 reconfirmed his determination to
strengthen cooperation among Japan, the U.S. and South Korea on
North Korea's nuclear program issue. Lee expressed his support for a
settlement of the abduction of Japanese nationals by North Korea. He
also supported Fukuda's proposal for holding a Japan-China and South
Korea summit in Japan within this year. His pledge will likely be of
help for Fukuda, whose policy slogan is to focus on Asia diplomacy.
However, the challenge is to what extent both countries can build a
full-fledged partnership.

Fukuda during a joint press conference after the meeting stressed
the close cooperation between the two countries over North Korea
policy. He noted, "The president declared his understanding of and
support for Japan's position."

Six-Party Talks recently has settled into a pattern of other members
confirming the outcome of direct talks between the U.S. and North
Korea. Japan's position is that it is essential for the abduction
issue to move forward in the talks and not just the nuclear and
missile issues. However, it cannot be said that this position has
obtained across-the-board sympathy from other countries. After a
long absence, South Korea has a conservative administration with the
election of President Lee. To Fukuda, this appears to be a good
opportunity to rebuild Japan's North Korea diplomacy. According to
an account given by South Korea, Prime Minister Fukuda, having the
resumption of a dialogue between Seoul and Pyongyang in mind, twice
during the summit told Lee, "When you work to persuade Pyongyang,
please tell them that once ties between Japan and North Korea are
normalized, Japan would proved North Korea with a bonus."

However, to what extent Japan and South Korea can cooperate on
specific measures remains unclear. Though President Lee has said he
will attach importance to the human rights issue, it appears that he
does not think it is wise for the abduction issue to hold back

TOKYO 00001122 006 OF 007


progress on the nuclear front.

Although the president indicated his understanding of Japan's North
Korea policy, he underscored, "I will extend close cooperation so
that the nuclear issue can be peacefully settled during the
six-party talks." He took a stance of pushing forward Japan-South
Korea cooperation, while placing the highest priority on progress on
the nuclear front.

Both leaders also confirmed that they would strengthen cooperation
among Japan, the U.S. and South Korea. However, there is a
possibility of the U.S. accelerating direct talks with North Korea
and of South Korea shifting focus to a dialogue with North Korea, if
Pyongyang agrees.

Cooperation between Japan and South Korea over China policy is
another touchstone. Fukuda and Lee during the summit agreed to hold
a summit among Japan, China and South Korea later this year.
However, relations between Japan and China remain somewhat strained
due to the Tibet issue and the incident of tainted Chinese-made
gyoza dumplings. In order to produce results, the prime minister
will have to display strong leadership.

(7) U.S. military may deploy VTOL aircraft to Okinawa: Koumura

RYUKYU SHIMPO (Page 2) (Full)
April 23, 2008

TOKYO-Foreign Minister Masahiko Koumura, attending a meeting of the
House of Councillors Foreign Affairs and Defense Committee yesterday
afternoon, implied that the U.S. Marine Corps may deploy the MV-22
Osprey, a vertical takeoff and landing aircraft, to a facility to be
built as an alternative (in a coastal area of Camp Schwab in Okinawa
Prefecture's Nago City) for Futenma airfield. "Generally speaking,"
Koumura stated before the committee, "it is true that they are
planning to replace the (Futenma-based) CH-46 and CH-53 helicopters
with the Osprey." He added, "In the future, they may deploy the
Osprey in Okinawa."

Koumura also stated, "This month, we asked the U.S. military about
this matter. They explained that they have yet to decide on the
Osprey's deployment to Okinawa." He was replying a question asked by
Tokushin Yamauchi from the Social Democratic Party.

Former Foreign Minister Aso also referred to the Osprey's possible
deployment to Okinawa in a meeting of the House of Representatives
Foreign Affairs Committee on Apr. 12, 2007, saying the
currently-deployed helicopters may be replaced with the Osprey if
the United States does not develop a new helicopter. The government
is apparently ready to accept the Osprey's deployment to Okinawa.

In addition, Defense Minister Shigeru Ishiba did not rule out the
possibility of constructing a military port within the newly planned
alternative facility for Futenma airfield. Ishiba stated: "It is
normally conceivable that they would need to use ships for
transportation if and when their helicopters get out of order. We
must consider what is needed to maintain the alternative facility's
functionality. I'm not implying a possibility. I can say it's
inconceivable for the present. However, I cannot definitely say that
is totally inconceivable." Ishiba was replying a question asked by
Yamauchi.


TOKYO 00001122 007 OF 007


Meanwhile, the Japanese government has now made a total payment of
about 12.2 billion yen as court-determined damages to the plaintiffs
who instituted class action lawsuits against U.S. military aircraft
noise in localities hosting U.S. military bases. In this regard,
Kimito Nakae, chief of the Defense Minister's Secretariat, revealed
that the U.S. government has yet to pay its share of the damages.
This was in reply to a question asked by Satoshi Inoue from the
Japanese Communist Party.

SCHIEFFER

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