Cablegate: Japanese Morning Press Highlights 05/29/07

VZCZCXRO8134
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2370/01 1490231
ZNR UUUUU ZZH
P 290231Z MAY 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3970
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//
RUALSFJ/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 3707
RUEHFK/AMCONSUL FUKUOKA 1276
RUEHOK/AMCONSUL OSAKA KOBE 4838
RUEHNAG/AMCONSUL NAGOYA 0487
RUEHKSO/AMCONSUL SAPPORO 2147
RUEHBJ/AMEMBASSY BEIJING 7187
RUEHUL/AMEMBASSY SEOUL 3246
RUCNDT/USMISSION USUN NEW YORK 4404

UNCLAS SECTION 01 OF 06 TOKYO 002370

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 05/29/07
Part-1

Index:
1) Top headlines

2) Editorials

3) Prime Minister's daily schedule

4) Troubled by political funds scandals, Agricultural Minister
Matsuoka commits suicide

5) Matsuoka left behind eight suicide notes and an apology; Prime
Minister Abe, as the one who appointed him, feels weight of
responsibility

6) Interim farm minister will be Wakabayashi until Abe makes new
appointment later this week

7) Abe: No investigation will made regarding allegations of
Matsuoka's political funds improprieties

8) Death of Matsuoka could stall WTO farm talks

9) Despite Matsuoka's demise, opposition camp will not let up
pressure on Abe administration on "money and politics" issue

10) Opposition to file no-confidence motion against Health and Labor
Minister Yanagisawa over social insurance fiasco (2 reports)

Articles:
1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Nihon Keizai, Sankei, Tokyo Shimbun &
Akahata:
Farm Minister Matsuoka commits suicide, dealing blow to Abe
administration

2) EDITORIALS

Asahi:
(1)Matsuoka kills himself without clearing his suspicions
(2)The "Asashoryu-Hakuho age" in sumo: Two Mongolian yokozuna

Mainichi:
(1)Farm minister's suicide: Abe administration in a serious
situation
(2)Fast-breeder reactor Monju: Safety must be confirmed thoroughly

Yomiuri:
(1)Agricultural Minister Matsuoka's suicide: Politics needs to
restore public confidence to prevent future tragic deaths
(2)Loss of pensions: Negative legacy from lax organization

Nihon Keizai:
(1)The politics-and-money problem should not be left unresolved with
Agriculture Minister Matsuoka's death
(2)The public needs to have a client's viewpoint in considering
relief measures for those unable to receive pensions

Sankei:
(1)Farm Minister Matsuoka's suicide: Do not put a lid on the
politics-and-money issue

TOKYO 00002370 002 OF 006

(2)ANA trouble: Crisis management needed in computer system

Tokyo Shimbun:
(1)Farm Minister Matsuoka's suicide: How does the prime minister who
was protective of him feel?
(2)No need for a hurried vote on reform bill for Social Insurance
Agency

Akahata:
Farm Minister Matsuoka's suicide: Investigation must be continued

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 28

NIHON KEIZAI (Page 2) (Full)
May 29, 2007

08:54:
Met at Kantei with Administrative Reform Minister Watanabe, followed
by METI Minister Amari, Japan Automobile Manufacturers Association
Chairman Fujio Cho, and Petroleum Association of Japan Chairman
Fumiaki Watari.
09:36:
Attended an Education Rebuilding Council meeting.
10:34:
Met Deputy Vice Health, Labor and Welfare Minister Kamimura,
followed by Deputy Vice Environment Minister Tanitsu, Foreign
Ministry International Cooperation Bureau Director General Bessho.
Afterward met Deputy Foreign Minister Kono.
11:06:
Met Deputy Chief Cabinet Secretary Matoba, followed by Resources and
Energy Agency Director General Mochizuki, MOFA Asian and Oceanian
Affairs Bureau chief Sasae.
12:23:
Attended a memorial service for the war dead at Chidorigafuchi
National Cemetery.
12:53:
Met Matoba at the Kantei.
13:38:
Met Chief Cabinet Secretary Shiozaki. Afterward held a labor press
conference with Rengo President Takagi in the presence of Health,
Labor and Welfare Minister Yanagisawa.
14:25:
Met Yanagisawa.
14:57:
Offered his condolences for the death of MAFF Minister Matsuoka at
Keio University Hospital in Shinanomachi.
15:35:
Met at the Kantei with Science and Technology Minister Takaichi and
Assistant Deputy Chief Cabinet Secretary Saka. Takaichi stayed on.
17:03:
Attended an LDP executive meeting in the Diet building.
18:05:
Attended a Council on Economic and Fiscal Policy meeting at the
Kantei.
19:20:
Returned to his official residence.
19:45:
Attended a temporary wake for MAFF Minister Matsuoka in Shinjuku
Ward.

TOKYO 00002370 003 OF 006

20:15:
Returned to his official residence.

4) MAFF Minister Matsuoka commits suicide, possibly over political
funds scandal, shocking Abe administration

NIHON KEIZAI (Top play) (Full)
Eve., May 28, 2007

Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka,
62, was found hanged at a residence complex for lawmakers in
Akasaka, Tokyo, at around 0:18 p.m. yesterday by his secretary. The
minister was taken to a hospital but pronounced dead at 2 p.m. The
Metropolitan Police Department is conducting an investigation,
believing that Matsuoka committed suicide. Matsuoka had faced strong
criticism from opposition parties over the dubious use of office
expenses and donations and calls were growing for his resignation
from the post. He became the first incumbent cabinet minister to
commit suicide in the postwar period.

According to investigators, Matsuoka met with his secretary until
around 10:00 a.m. yesterday in his room on the 11th floor of the
Diet members' apartment complex. Matsuoka later failed to show up.
As a result, his secretary and a security police officer entered his
apartment and found the minister hanging by a rope made of fabric
attached to a living room door in the apartment.

There was no suicide note next to the body, according to the
secretary. Immediately after Matsuoka became farm minister, it came

SIPDIS
to light that his fund management organization housed in the
charge-free Dietmembers' Office Building had declared huge amounts
of money as office expenses. Matsuoka repeatedly explained, "The
office has not declared any fictitious expenses." Prime Minister
Shinzo Abe also defended Matsuoka.

In May, rumors about his possible involvement in a bid-rigging
scandal involving the Japan Green Resources Agency began to spread.
Opposition parties grilled Matsuoka severely, saying his
explanations were insufficient. Calls for his resignation were
growing from even within the ruling coalition.

5) Agriculture Minister Matsuoka dead; 8 farewell notes left behind;
Prime Minister Abe says, "I feel responsible for appointing him as
cabinet minister"

TOKYO SHIMBUN (Top Play) (Lead paragraph)
May 29, 2007

Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka was
pronounced dead at 2:00 p.m. yesterday at Keio University Hospital
in Shinjuku Ward. Matsuoka committed suicide by hanging himself with
a rope at his lodging in the 11th floor of the House of
Representative members' compound. He died from suffocation. Since he
left farewell notes in his lodging, Tokyo Metropolitan Police
Department's Akasaka Police has determined that he had committed
suicide. Police are now investigating the motive for his suicide.
This was the first time for an incumbent cabinet minister to commit
suicide since War Minister Korechika Anami committed ritual suicide
(seppuku) immediately after the end of World War II. Since Prime
Minister Shinzo Abe had backed Matsuoka, who had been under severe
pressure over a "politics and money scandal" his death could deal a

TOKYO 00002370 004 OF 006

significant blow to the Abe administration.

6) Environment Minister Wakabayashi appointed acting farm minister

SANKEI (Page 1) (Full)
May 29, 2007

Chie Cabinet Secretary Yasuhisa Shiozaki announced at a press
conference last evening that Environment Minister Masatoshi
Wakabayashi was appointed acting minister of agriculture, forestry
and fisheries for Toshikatsu Matsuoka, who committed suicide.

Prime Minister Shinzo Abe revealed yesterday that he would appoint a
formal replacement later, saying, "A political vacuum must be
avoided in dealing with agricultural, forestry and fisheries issues.
I want to pick a competent successor, placing an acting minister for
the time being."

He then added: "I would like to pick the successor in consideration
of the schedule for an imperial attestation ceremony." He indicated
that he would formally appoint Matsuoka's replacement after the
Emperor, who is now traveling abroad, returns home.

7) Prime Minister Abe: Farm minister not investigated over Japan
Green Resources Agency bid-rigging scandal

TOKYO SHIMBUN (Page 1) (Full)
May 29, 2007

When asked by reporters about the allegation that Agriculture,
Forestry and Fisheries Minister Toshikatsu Matsuoka had received
donations from corporations linked with the Japan Green Resources
Agency, a semi-governmental body affiliated with the firm ministry,
Prime Minister Shinzo Abe responded last evening:

"I will speak to clear his name: my understanding is that
investigative authorities stated they were not investigating
Agriculture Minister Matsuoka over the Japan Green Resources Agency
scandal nor had they any plan to do so."

Abe appears to have made the above remarks in order to dispel the
observation that the cause of his suicide had something to do with
the police investigation. It is unusual for a prime minister to
introduce the remarks by investigative authorities regarding a case
under investigation.

8) Agriculture Minister Matsuoka's suicide leaves concerns about
stagnation of farm policy

NIHON KEIZAI (Page 5) (Full)
May 29, 2007

The government appointed Environment Minister Masatoshi Wakabayashi
as acting farm minister after Agriculture, Forestry and Fisheries
Minister (MAFF) Matsuoka committed suicide on May 28. But many
observers have voiced concern about a possible stagnation in
agricultural administration. There are a host of tasks left for the
government to address, such as agricultural talks under the World
Trade Organization (WTO) and negotiations on an economic partnership
agreement (EPA) with the European Union (EU). Matsuoka was under
heavy pressure over questionable office expenses and other scandals

TOKYO 00002370 005 OF 006

over the past several months.

There are many challenges Matsuoka left behind. Although economic
circles are calling for EPAs with the United States and the EU,
Japan remains unable to even launch negotiations on specifics with
them, falling behind South Korea. WTO farm talks are set to restart
in full swing, but the Japanese government is still trying to keep
high tariffs and refusing to open its market. As it stands,
prospects are nowhere in sight. The US and European countries
reportedly have begun to take moves to enter negotiations behind
closed doors while ignoring Japan.

The government hopes to see an agreement reached in the WTO
agricultural talks by the end of this year. Minister of Economy,
Trade and Industry Minister Akira Amari said: "Mr. Matsuoka was an
important partner for me in WTO talks. He was a very competent farm
minister." Meanwhile, it is also true that Matsuoka, as a lawmaker
lobbying for the interests of domestic agriculture-related
organizations, had enormous clout over them. A MAFF official said:
"He would probably have been able to persuade party members and
agricultural groups even if WTO farm talks had ended unfavorably to
Japan."

Acting Farm Minister Wakabayashi said in the Environment Ministry
last night: "I will do my best to enact the bills which Mr. Matsuoka
was making efforts to enact in the current Diet session." He thus
indicated his determination to make utmost efforts to get
MAFF-related legislation through the Diet.

9) Opposition parties determined to continue pursuing Abe

TOKYO SHIMBUN (Page 2) (Excerpts)
May 29, 2007

Opposition parties plan to continue pursuing the Abe cabinet over
the question of politics and money. They are especially determined
to focus on Prime Minister Shinzo Abe's responsibility for defending
Agriculture, Forestry, and Fisheries Minister Toshikatsu Matsuoka
(who committed suicide yesterday).

Minshuto (Democratic Party of Japan) Secretary General Yukio
Hatoyama, meeting the press yesterday, indicated his party's plan to
expedite efforts to uncover facts about the office expense scandal,
saying: "Creating a clean environment as soon as possible is our
mission." The party's Diet affairs chief also said: "The prime
minister did not discharge (Matsuoka) from the post despite the
allegations, and that was wrong."

Japanese Communist Party Head of the Secretariat Tadayoshi Ichida
noted, "The prime minister continued to defend farm minister
Matsuoka." Social Democratic Party head Mizuho Fukushima also
referred to the prime minister's responsibility, saying, "The prime
minister is to blame for driving (MAFF Minister Matsuoka) to that
extent."

10)-1 Battle over bills related to reform of SIA: Opposition ready
to introduce no-confidence motion against MHLW minister

SANKEI (Page 5) (Excerpts)
May 28, 2009

TOKYO 00002370 006 OF 006

The Democratic Party of Japan (DPJ) intends to introduce a
no-confidence motion against Health, Labor and Welfare (MHLW)
Minister Hakuo Yanagisawa over the missing pension premium payment
record. The DPJ, the Social Democratic Party (SDP) and the People's
New Party (PNP) will today hold meetings of their secretaries
general and Diet Policy Committee chairmen to look into the issue,
including the possible submission of a resolution seeking the
dismissal of Lower House Health, Labor and Welfare Committee
Chairman Yoshitaka Sakurada. The ruling parties aim at clearing a
set of bills related to reform of the Social Insurance Agency (SIA)
through the Lower House on May 29. The battle between the ruling and
opposition blocs will likely heat up.

Appearing on an NHK-TV talk show, DPJ Policy Research Council
Chairman Takeaki Matsumoto on May 27 criticized the ruling bloc for
adopting the set of bills related to reform of the SIA at the Lower
House Health, Labor and Welfare Committee. He said, "The adoption of
the bills is nothing but an action to cover up the issue of the
missing pension premium payment records." Japanese Communist Party
Policy Committee Chairman Akira Koike and SDP Policy Research
Committee Council Chairperson Tomoko Abe indicated a stance of
submitting a no-confidence motion. Matsumoto responded to their
proposal, noting, "Opposition parties will confer on the issue and
raise issues in a thoroughgoing manner." DPJ Secretary General Yukio
Hatoyama on May 26 also indicated a positive stance toward the idea
of introducing a no-confidence motion.

10)-2 DPJ, SDP, PNP agree to submit no-confidence motion against
MHLW minister

TOKYO SHIMBUN (Page 1) (Full)
Evening, May 28, 2007

The Democratic Party of Japan (DPJ or Minshuto), the Social
Democratic Party (SDP) and the People's New Party (PNP) on the
morning of May 28 held a meeting of their secretaries general in the
Diet building. Participants agreed to introduce a no-confidence
motion against Health, Labor and Welfare (MHLW) Minister Hakuo
Yanagisawa, over the "disappearing pension contributions" issue,
which could reduce public pension payouts due to mistakes made by
the Social Insurance Agency (SIA). They also agreed to submit a
resolution seeking the dismissal of Yoshitaka Sakurada, chairman of
the Lower House Health Labor and Welfare Committee, for his handling
of a set of bills related to reform of the SIA, which were adopted
at the Committee last week.

Emerging from the meeting, DPJ Secretary General Yukio Hatoyama
played up to reporters, "We cannot possibly allow the Lower House
Health, Labor and Welfare Committee to railroad the bills, turning a
blind eye to the people's greatest matter of concern."

The three secretaries general also agreed to continue to pursue the
government's responsibility for the pension fiasco and shared the
view that the contents of relief measures proposed by the government
and the ruling parties would not convince the public.

The three parties will ask Lower House Speaker Yohei Kono on May 29
not to hold a Lower House plenary session for the adoption of those
bills.

SCHIEFFER

© Scoop Media