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Cablegate: Daily Summary of Japanese Press 10/06/08

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2779/01 2800807
ZNR UUUUU ZZH
P 060807Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7732
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
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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 2579
RUEHFK/AMCONSUL FUKUOKA 0223
RUEHOK/AMCONSUL OSAKA KOBE 3968
RUEHNAG/AMCONSUL NAGOYA 8305
RUEHKSO/AMCONSUL SAPPORO 0799
RUEHBJ/AMEMBASSY BEIJING 5690
RUEHUL/AMEMBASSY SEOUL 1685
RUCNDT/USMISSION USUN NEW YORK 1957

UNCLAS SECTION 01 OF 10 TOKYO 002779

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 10/06/08

INDEX:

(1) Zumwalt says next U.S. administration also to uphold U.S.
military realignment, frowns on Futenma revision (Okinawa Times)

(2) Commentary: DCM Zumwalt gives 'zero answer' to proposal for
Futenma replacement facility's offshore move, a big barrier to
Futenma relocation (Okinawa Times)

(3) Yokohama hit-and-run incident: U.S. service member apprehended
at Yokosuka base (Mainichi)

(4) Two U.S. Marines arrested for stealing taxi and for having minor
accidents (Mainichi)

(5) Fund-raising body headed by Foreign Minister Nakasone found to
have received donations from companies caught bid-rigging (Akahata)


(6) Japanese firms' overseas M&As in Jan-Sept period reach record
high in value (Sankei)

(7) Interview with JICA President Sadako Ogata (Asahi)

(8)TOP HEADLINES

(9) EDITORIALS

(10) Prime Minister's schedule, October 3 (Nikkei)

ARTICLES:

(1) Zumwalt says next U.S. administration also to uphold U.S.
military realignment, frowns on Futenma revision

OKINAWA TIMES (Page 1) (Full)
October 5, 2008

James Zumwalt, deputy chief of mission at the U.S. Embassy in Japan,
outlined his views yesterday in an Okinawa Times interview. He
indicated that the next U.S. president coming into office after this
November's presidential election would take over the Bush
administration's current policy toward Japan. "Both the Democratic
and Republican parties attach importance to Asia, and in particular,
give high consideration to U.S.-Japan relations," Zumwalt said.
"There will be no major changes," he added.

Concerning the planned relocation of the U.S. military's Futenma
airfield, Okinawa Prefecture has been calling for the construction
site of an alternative facility to be moved into the sea. Zumwalt
frowned on the proposal, saying: "The Japanese and U.S. governments
made the decision after very difficult negotiations from the
perspective of the environment, noise, safety, and other factors. It
would not be wise for the U.S. government to renegotiate." With
this, Zumwalt indicated that the U.S. government does not want to
impede the implementation of the agreement on the realignment of
U.S. forces in Japan for the next administration.

In addition, Zumwalt also pointed out elections to be held along
with the U.S. presidential election for one third of the seats in
the Senate and all seats in the House of Representatives. "I think
there will be various changes (in the U.S.), but there will be no

TOKYO 00002779 002 OF 010


change in U.S.-Japan relations. The United States' interests will
remain unchanged, because Japan and the United States share common
values."

Another pending issue is to remove the danger of Futenma airfield.
In this regard, Okinawa Prefecture has been calling for the U.S.
military to take appropriate measures from the perspective of flight
operations. "The most important thing is to quickly relocate Futenma
airfield," Zumwalt said. "But," he added, "we want to make efforts
for Futenma's safe use." So saying, he declined to clarify whether
the U.S. military will respond to the local call.

There has been an increase in the number of U.S. nuclear-powered
submarine port calls at White Beach. Asked why, Zumwalt went no
further than to say: "Submarines must operate under various
circumstances in the world. Their presence in the Far East and Asia
serves as a deterrent."

Zumwalt arrived in Okinawa on Oct. 1. He exchanged views with
Okinawa Gov. Hirokazu Nakaima, Nago Mayor Yoshikazu Shimabukuro,
Ginowan Mayor Yoichi Iha, and the heads of other base-hosting
municipalities. In addition, he visited Camp Schwab.

(2) Commentary: DCM Zumwalt gives 'zero answer' to proposal for
Futenma replacement facility's offshore move, a big barrier to
Futenma relocation

OKINAWA TIMES (Page 2) (Full)
October 5, 2008

Concerning the issue of relocating the U.S. military's Futenma
airfield, Deputy Chief of Mission Zumwalt from the U.S. Embassy in
Japan gave a 'zero answer' to Okinawa Gov. Hirokazu Nakaima's
proposal to move the construction site of an alternative facility
out into the sea and remove its danger.

The deputy chief of mission is a key post ranking next to Ambassador
Schieffer. Zumwalt was director for Japanese affairs (Japan Desk) at
the Department of State before assuming his current post. The
high-ranking U.S. government official, who will be at the center of
U.S. policy toward Japan following the change of administration, has
indicated that the U.S. government would not agree to move the site
of the Futenma alternative facility offshore. This will be a major
barrier to Okinawa Prefecture and Nago City, which are pushing for
Futenma's relocation. That is because Nobutaka Machimura, who has
shown understanding for Okinawa Prefecture's standpoint, is no
longer in the cabinet post of chief cabinet secretary and thus no
longer in charge of the issue. Okinawa has high hopes for the
government's negotiations with the United States. However, the
government itself has fallen into a difficult situation.

Meanwhile, Zumwalt indicated that one of the goals of realigning the
U.S. military presence in Japan is to mitigate the burden of
base-hosting localities while strengthening the Japan-U.S.
alliance's deterrence. "The alliance cannot be continued for a long
time without the Japanese people's support," he said.

The Okinawa prefectural assembly has unanimously adopted a
resolution against building a new base in a coastal area of Henoko
in Nago City (as a replacement for Futenma airfield). Outside
Okinawa, however, discussions of the U.S. military's realignment
involving Futenma have grown cold. Zumwalt has his eye on public

TOKYO 00002779 003 OF 010


opinion in Japan in making his remarks, so the Okinawa prefectural
government and assembly, which take different positions, must find a
way to arouse public opinion in Japan given the fluidity of the
domestic political situation.

(3) Yokohama hit-and-run incident: U.S. service member apprehended
at Yokosuka base

MAINICHI NET (Full)
1:11 p.m., October 6, 2008

By Masaru Yoshida

A 32-year-old male salaried worker from Yokosuka City, Kanagawa
Prefecture, was run over by a vehicle with a Y-number plate on the
night of Oct. 3 at the Metropolitan Expressway Daikoku Parking Area
in Tsurumi Ward, Yokohama City. U.S. Yokosuka Naval Base on Oct. 5
detained on suspicion of attempted murder a male seaman attached to
the base who is believed to have fled from the crime scene.

Y-number plates are issued to vehicles owned by U.S. military
personnel, civilian employees of the U.S. armed forces, and their
families. The man in question was identified as belonging to the
U.S. military, based on the Y-number plate in a joint investigation
by the Tsurumi Police Station and the U.S. Naval Criminal
Investigation Service (NCIS). The NCIS has detained the sailor after
questioning him on the base. The U.S. military reportedly
interviewed a fellow U.S. service member who was at the crime scene,
as well.

According to the investigation, the male salaried worker seems to
have known the sailor. Reportedly, the two got into a quarrel
shortly before 10:55 p.m., at which point, jus when the U.S. sailor
got into his car, the company employee stood in its way.

(4) Two U.S. Marines arrested for stealing taxi and for having minor
accidents

MAINICHI ONLINE (Full)
October 6, 2008

Okinawa Police arrested last night Mathew Eckerson (TN: Phonetic), a
21-year-old lance corporal based at the U.S. Marine Corps' Camp
Zukeran, and Shane Stodghill (Phonetic), a 20-year-old lance
corporal based at Camp Courtney, on charges of theft.

According to the police, the two Marines were arrested on suspicion
of stealing a taxi at around 6:45 p.m., while the driver was going
to the toilet. The incident occurred on a street in Mihama,
Chatan-cho, Okinawa Prefecture. The two have admitted to the
charges.

About 20 minutes later, Eckerson, who drove the taxi, scraped five
cars one after the other when he tried to pass vehicles waiting for
the traffic lights to change at the Isa intersection on Route 58 in
Ginowan City. The two Marines were subdued by persons on the scene
and handed over to the police.

The two reportedly were drunk.

(5) Fund-raising body headed by Foreign Minister Nakasone found to
have received donations from companies caught bid-rigging

TOKYO 00002779 004 OF 010

AKAHATA (Page 15) (Full)
October 6, 2008

It has been learned that the Liberal Democratic Party (LDP) Gunma
Prefectural Upper House First Chapter, which is headed by Foreign
Minister Hirofumi Nakasone, received 1.6 million yen in donations
from companies that were warned by the Japan Fair Trade Commission
to cease and desist all activities in violation of the Antimonopoly
Law. The companies in question are Nissaku Corp., a construction
company in Saitama City, and Tonets Corp. in Chuo Ward, Tokyo.

The Japan Fair Trade Commission issued to Nissaku a warning in May
2002 to end a bid-rigging practice in a project ordered by Kanagawa
Prefecture, and another warning in November 2004 to cease
bid-rigging in a project ordered by Ehima Prefecture.

In March 2006, Tonets was excluded from the list of companies
designated for competitive bidding on suspicion of being involved in
an illegal bid-rigging scheme involving the Defense Facilities
Administration Agency.

According to the Upper House Gunma Prefectural First Chapter's
political funds report, Nissaku contributed a total of 1.25 million
yen over five years since 2003 through 2007; and Tonets donated
totaling 410,000 yen for three years from 2004 to 2007.

Regarding the donations from Nissaku, Nakasone said yesterday: "I
didn't know that we received political donations from any company
that was ordered to cease such activities. I want to consider a
response after checking the specifics."

It has been discovered that LDP regional chapters headed by Prime
Minister Taro Aso, Chief Cabinet Secretary Takeo Kawamura and
Finance Minister and State Minister in Charge of Financial Services
Shoichi Nakagawa, received donations from controversial firms.

(6) Japanese firms' overseas M&As in Jan-Sept period reach record
high in value

SANKEI (Page 10) (Full)
October 4, 2008

Japanese firms have been on a mergers and acquisitions (M&A) spree
overseas. According to M&A consultancy Recof Corp., the value of
M&As of foreign firms by Japanese companies in the January-September
period reached a record high of 6.0234 trillion yen, 3.54 times
larger than the same period a year ago. Meanwhile, M&As of Japanese
companies by foreign firms sharply decreased. With a sidelong glance
at a number of foreign-buyout funds becoming unable to procure
capital in the aftermath of the U.S. financial crisis, Japanese
companies, armed with ample cash, are enhancing their presence in
the M&A market.

The number of M&A cases in the January-September period was 1,825,
down 9.1 PERCENT below the same period a year ago. Of these,
Japanese firms' M&A overseas totaled 270, up 1.5 PERCENT . In the
meantime, the total value of all M&A cases increased 4.5 PERCENT to
9.3635 trillion yen, of which those involving Japanese firms
accounted for 64 PERCENT , showing that the scale of each case is
becoming larger. In September, too, large-sized M&As and
capital-participation cases were reported, involving a consortium of

TOKYO 00002779 005 OF 010


Marubeni Corp and Kansai Electric Power Co., and by Shionogi & Co.
and the Mitsubishi-UFJ Financial Group.

A number of industries that cater to domestic demand, including
financial institutions such as non-life insurers and banks, and drug
makers, have taken the lead in the boom of Japanese firms' M&A
overseas this year. Recent sharp drops in global stock markets have
also encouraged Japanese companies to move for M&As overseas.

During the bubble years at home, Japanese corporations proactively
purchased properties overseas, such as hotels and commercial
buildings. But this year, most are cases in which companies purchase
foreign firms of the same line of business or related business. An
industry participant commented: "Many corporations are trying to
explore overseas markets in earnest."

M&A cases involving Japanese firms by foreign companies dropped 32.5
PERCENT to 158 cases and 79.9 PERCENT to 506.7 billion yen in
value terms, though the value in 2007 exceeded 3 trillion yen.

The drop is attributable to the financial woes originating in the
U.S. Foreign companies are having difficulties procuring capital
from money markets that are being dogged by credit uncertainty, as
shown by the U.S. General Electric's (GE) request to investor Warren
Edward Buffett for financial aid.

Stock prices on the Japanese market also remain weak, but foreign
firms, such as buyout funds, find it far more difficult than
Japanese companies to procure funds. They cannot afford to invest in
Japanese companies.

(7) Interview with JICA President Sadako Ogata

ASAHI (Page 3) (Full)
September 30, 2008

The International Cooperation Agency (JICA) will merge with the yen
loan operations of the Japan Bank for International Cooperation
(JBIC) on Oct. 1. Prior to the launch of a revamped organization,
JICA President Sadako Ogata, 81, responded to an interview with the
Asahi Shimbun on Sept. 29, in which she expressed concern about the
nation's shrinking official development aid (ODA) budget and pointed
out the need for changing the emphasis of assistance toward
contributions to help build political stability. Ogata also
indicated that Japan should be proactively involved in peace
building by stationing Japanese staff in Iraq and taking other
measures.

-- The overhauled JICA will become the world's largest aid
organization in terms of project scale. What feeling do you have
about the integration?

Since I assumed the presidency, five years have passed, but I have
remained in office, based on the view that I should not give up on
the integration scheme halfway though and must ascertain its
outcome. The reorganized JICA will be an agency that brings together
the programs of yen loans, grant aid, and technical assistance. It
is easier for developing countries to receive different types of aid
from a single organization.

We can expect chances to expand in the future. For instance, if
waterworks engineers are trained, an organization (such as the

TOKYO 00002779 006 OF 010


waterworks bureau) will become necessary. So it will become possible
to establish a system under the reorganized JICA.

-- The words, "development that will benefit everybody," are
inserted in the vision of the revamped JICA, aren't they?

Discrepancies are expanding in developing countries as a result of
their economies rapidly growing and globalization advancing.
Discrepancies bring about negative effects, so it is necessary to
help develop economics without creating discrepancies. We would also
like to give priority to efficiency and effect, such as a way of
offering a lot of funds to areas in need.

-- We hear your own research institute will also be revamped and
will give priority to not only economic development but political
development, as well.

Even if we promote economic development in earnest, such problems as
instability in politics are left. In offering aid to help build
peace in countries in dispute, as well, we must carefully watch what
is obstructing the peace there. In a considerably early stage in
some cases, JICA has dispatched personnel to places to which
conventional aid agencies have not.

-- About 40 staff members have been stationed in Afghanistan despite
the deteriorating security situation. What plan do you have in mind
about them?

I have no intention to withdraw them. When I visited Afghanistan
last December, I saw many of them tackling such challenges as human
resource development, assisting the medical sector, and helping farm
villages. We are employing ingenuity, for instance, purchasing
bulletproof vehicles and hiring local officials in charge of
security management.

We have started a grand project to construct a Kabul Metropolitan
area. We have also prepared a detailed master plan. Since this is an
important project, we would like to keep the current number of
employees. There used to be 60 members in Afghanistan, so we would
like to increase the number if security is ensured there.

A police organization is needed, besides the military, to bring
about stability into Afghanistan. Such a duty is not included among
the duties of the Self-Defense Force (SDF), so there will be no
other way but (for Japan) to depend on civilians for this duty.

-- Japan has provided Iraq with non-reimbursable aid to Iraq under a
remote-control system and also plans to offer yen loans on a full
scale.

We would like to provide the nation with 3.5 billion dollars in yen
loans. A responsible team has been stationed in Jordan, but it is
necessary to station the team in Iraq in order to render
satisfactory aid. Since the security situation in the Kurdish region
has considerably stabilized, we want to prepare to set our office in
Arbil (in northern Iraq) and send staff by the end of the year.

-- Japan ranked at the top among donors of ODA in the world in 2000,
but the nation tumbled to fifth place in 2007.

The ratio of ODA disbursements to the nation's economic scale is now
the lowest among the industrialized countries and is lower than its

TOKYO 00002779 007 OF 010


appropriate level. Although Japan has benefited from global peace
and stability, it has little awareness that it must do something.
Around the time when I was assigned to the United Nations in 1991,
the words "international contributions" were being mentioned more
often.

Defense expenditures are far larger than ODA disbursements. I wonder
spending cuts were properly carried out in the process of fiscal
reconstruction. How does the second largest economic power recognize
this (imbalanced budgetary allocations) and rectify them? This is a
political issue, and political leaders must take the lead in dealing
with it.

-- ODA is said to be a diplomatic tool.

ODA is more than just a tool. ODA plays an important role for Japan
to fulfill an international role and to aim at co-existence and
co-prosperity with the rest of the world. I think JICA is an
organization existing for that purpose.

(8)TOP HEADLINES

Asahi:
Firm in Ishikawa Prefecture abused mail rate discount for disabled
people

Mainichi:
British, German, French, Italian leaders agree to set up EU bank
surveillance body

Yomiuri:
150 hospitals in Japan have emergency rooms

Nikkei:
94 PERCENT of surveyed corporate heads say nation's economy is
deteriorating

Sankei:
Nishimatsu Construction vice president interviewed by Tokyo
prosecutors over shady money worth 100 million yen

Tokyo Shimbun:
Four European leaders fail to come up with substantial financial
measures

Akahata:
4,600 young people assemble in Meiji Park

(9) EDITORIALS

Asahi:
(1) Global warming and general election: "Environment" should be
taken campaign issue

Mainichi:
(1) Authorities concerned must not prey on newly established Japan
Finance Co.
(2) Revisions to Worker Dispatch Law insufficient to protect
workers

Yomiuri:
(1) Excessive postgraduate law faculties must be decreased

TOKYO 00002779 008 OF 010


(2) Japan should deepen debate on policy of accepting 300,000
foreign students

Nikkei:
(1) Europe must show real achievements of cooperation to prevent
financial crisis
(2) Punishment of self-defense official damages right to know

Sankei:
(1) EU observer mission in Georgia: Russia not allowed to let
present situation continue
(2) Survival rates of cancer patients: Number of hospitals that
disclose data should be increased

Tokyo Shimbun:
(1) Financial stabilization: U.S. facing critical juncture
(2) Osaka Gov. Hashimoto loses case: TV commentators should be
careful about making comments

Akahata:
(1) Military use of space: Japan must stop preparing for an overseas
war

(10) Prime Minister's schedule, October 3

NIKKEI (Page 2) (Full)
October 4, 2008

08:18
Met Deputy Chief Cabinet Secretary Konoike at the Kantei.

09:00
Attended a cabinet meeting.

09:10
Met Konoike.

10:00
Met Chief Cabinet Secretary Kawamura at the Kantei.

13:01
Attended an Upper House plenary session.

15:26
Met Cabinet Intelligence Director Mitani at the Kantei.

16:01
Met representatives of six local organizations, including Fukuoka
Gov. and National Governors Association Chairman Aso.

16:17
Met Vice Education Minister Zeniya, followed by Cabinet Office Vice
Minister Yamamoto and Decoration Bureau Director General Fukushita.
Afterward met Deputy Chief Cabinet Secretary Uruma.

17:11
Met Vice METI Minister Mochizuki and Economic and Industry Policy
Bureau Director General Matsunaga, followed by LDP Policy Research
Council Chairman Hori and his deputy Sonoda.

17:59
Met Economic and Fiscal Policy Minister Yosano, followed by

TOKYO 00002779 009 OF 010


Mochizuki and Matsunaga.

18:41
Attended a Kaho Middle and High School reunion held at the Toranomon
Pastral.

19:18
Met a secretary at an Imperial Hotel bar.

22:54
Returned to his private residence in Kamiyama.

Prime Minister's schedule, October 4

NIKKEI (Page 2) (Full)

October 5, 2008

10:58
Took a walk around his private residence in Kamiyama.

13:44
Visited a golf driving range in Hodogaya Ward, Yokohama.

15:59
Returned to his private residence.

16:23
Received acupuncture and moxibustion treatment at a clinic in
Kita-aoyama.

18:39
Returned to his private residence.

19:29
Dined at a French restaurant in Ginza with his family, including
wife Chikako.

22:08
Returned to his private residence.

Prime Minister's schedule, October 5, 2008

NIKKEI (Page 2) (Full)

October 6, 2008

10:46
Took a walk around his private residence in Kamiyama.

13:35
Met Deputy Chief Cabinet Secretary Matsumoto at his private
residence.

17:08
Met family, including wife Chikako, at the Hotel Okura.

19:02
Met a secretary at the Imperial Hotel.

22:22
Returned to his private residence.

TOKYO 00002779 010 OF 010

SCHIEFFER

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