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Cablegate: Japanese Morning Press Highlights 07/30/07-1

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ZNR UUUUU ZZH
P 300123Z JUL 07
FM AMEMBASSY TOKYO
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RUALSFJ/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 4710
RUEHFK/AMCONSUL FUKUOKA 2285
RUEHOK/AMCONSUL OSAKA KOBE 5883
RUEHNAG/AMCONSUL NAGOYA 1337
RUEHKSO/AMCONSUL SAPPORO 3059
RUEHBJ/AMEMBASSY BEIJING 8095
RUEHUL/AMEMBASSY SEOUL 4157
RUCNDT/USMISSION USUN NEW YORK 5185

UNCLAS SECTION 01 OF 06 TOKYO 003458

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 07/30/07-1


Index:

1) Top headlines
2) Editorials

Election results:
3) Election results table: LDP 37 seats; DPJ 60 seats; Komeito 8
seats
4) LDP goes down to historical defeat in Upper House election; DPJ
(Minshuto) emerges as top party in the Upper House for the first
time
5) LDP wins six, loses 23 single-seat districts
6) Nakagawa Hidenao quits as LDP secretary general; Prime Minister
Abe intends to shuffle cabinet
7) DPJ President Ozawa's election strategy pays off; Party will now
aim at forcing snap election
8) New Komeito suffers historical defeat
9) Japanese Communist Party: Zero district seats
10) Social Democratic Party: Wins 2 of 3 seats up for grabs

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Nikkei, Sankei Tokyo Shimbun & Akahata:
LDP suffers historic defeat, Prime Minister Abe to stay in office

Yomiuri:
DJP becomes largest party in Upper House

2) EDITORIALS

Asahi:
LDP's defeat in Upper House election means voters' lack of
confidence in Abe's politics

Mainichi:
LDP suffers defeat; Popular will rejects "Abe politics"
Abe must ask for the people's vote of confidence through Lower House
election

Yomiuri:
Turmoil in national politics unforgivable

Nikkei:
Prime Minister Abe must take seriously the judgment by voters

Sankei:
LDP's major defeat: DPJ has now great responsibility
Prime Minister Abe must do some soul-searching and strengthen his
cabinet

Tokyo Shimbun:
Abe-led LDP loses Upper House race: Existence of "my cabinet"
difficult

Akahata:
Nuclear-free world and Japan: Hope for success of World Conference
against A & H Bombs

3) Results of Upper House election (July 28, 2007)


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NIKKEI (Page 1) (Full)
July 30, 2007

Party:
Total won
Before elect.
Elect. districts
Proportional
Uncontested

DPJ 60 (32) 40 20 49
LDP 37 (64) 23 14 46
New Komeito 8 (12) 2 6 11
JCP 3 (5) 0 3 4
SDP 2 (3) 0 2 3
Kokumin 2 (2) 1 1 2
Nippon 1 (0) 0 1 0
Unaffiliated 7 (1) 7 -- 6
Total 120 (119) ASTERISK 73 47 121
Remaining seat 1
2 seats were unfilled prior to election

4) LDP suffers historical defeat; Komeito, too; Prime Minister Abe
announces he will stay in office; DPJ leaps ahead to become No. 1
party in Upper House

ASAHI (Top play) (Excerpt)
July 30, 2007

The 21st election for the House of Councillors, billed as a poll to
test voter confidence in the Abe administration, was held on July
29. In it, the Liberal Democratic Party (LDP) dropped from its
pre-election 64 seats to 37 seats, a major historical defeat on par
with the worst Upper House election results on record, 36 seats,
after Sosuke Uno resigned as prime minister in 1989. The New
Komeito, too, suffered a defeat, dropping three out of the five
district seats it had held before the election. Even adding seats
that were not up for election this time, the ruling coalition has
lost its majority in the Upper House. However, Prime Minister Shinzo
Abe last night announced that he would stay on in office. In
contrast, the Democratic Party of Japan (DPJ or Minshuto) jumped
from the 32 seats it had held before the election to 60 seats. This
is the first time since the LDP was formed in 1955 that it has lost
the position of being the number 1 party in the Upper House to an
opposition party. DPJ executives last night called for the
resignation of Prime Minister Abe and an early snap election for the
Lower House. In a nationwide exit poll by the Asahi Shimbun, 56% of
the respondents replied that they wanted a change in the prime
minister. Inevitably, the issue of whether he will step down or not
will continue to fester.

5) In 29 single-seat constituencies, LDP wins only 6 seats; Katayama
beaten by DPJ candidate

MAINICHI (Page 2) (Excerpts)
July 30, 2007

In the 29 single-seat constituencies, Liberal Democratic Party
candidates won only in 6 in the House of Councillors election
yesterday. The LDP experienced the second loss in single-seat
constituencies since its foundation in 1955, following the one in
the 1989 election, in which the LDP, negatively affected by the

TOKYO 00003458 003 OF 006


introduction of the consumption tax and the Recruit scandal,
garnered only 3 of 26 seats. Toranosuke Katayama, the LDP's Upper
House secretary general, was beaten by a Democratic Party of Japan
(DPJ or Minshuto) candidate in Okayama Prefecture.

Single-seat constituencies, which are home to many farmers, were
once bastions of the LDP. The election outcome this time, however,
shows that an increasing number of voters in such districts have
abandoned the LDP due to the pension mess and the widening social
disparities. The LDP had been overwhelmingly strong in single-seat
districts in the past elections, except for the 1989 one. The party
won more than 20 seats in five consecutive elections in 1974. Even
in the 2004 election, in which the LDP was outperformed by the DPJ,
the LDP won 14 of the 27 single seats.

The LDP had not lost in Saga since 1956, but it did so yesterday for
the first time in 51 years in Saga. The LDP candidate also lost in
Toyama for the first time in 39 years. Among big-name candidates,
former Construction Minister Katsutsugu Sekiya lost his seat in
Ehime, and former Environment Agency Director General Kenji Manabe
was defeated in Kagawa. The LDP candidates in the four
constituencies in Shikoku were all defeated for the first time in 18
years. In Kyushu, where the support rate of the LDP exceeded 40%, as
well, the LDP won a victory only in Oita and Kagoshima out of the
seven constituencies. In Kagoshima, the LDP candidate won by a
narrow margin of about 2,600 votes.

6) LDP Secretary General Nakagawa submits resignation, prime
minister indicates intention to shuffle cabinet

YOMIURI (Page 1) (Excerpts)
July 30, 2007

Appearing on many TV programs last night, Prime Minister Abe
(Liberal Democratic Party President) said, "The responsibility of
our crushing defeat rests with me." But he indicated that he would
stay on as prime minister, remarking: "My nation-building project
has just gotten off the ground. I must push ahead with reforms and
fulfill my responsibility as prime minister." Meanwhile, LDP
Secretary General Nakagawa, who took the initiative in the House of

SIPDIS
Councillors election campaign, submitted a letter of resignation to
the prime minister yesterday. Upon receiving the resignation, Abe
told Nakagawa to continue to serve as secretary general for the time
being to make efforts to save the current difficult situation.

LDP Upper House Chairman Aoki also indicated a willingness to step
down from his post.

On a TV news program last night, the prime minister said: "Taking
the election results seriously, I will consider a shuffling of the
cabinet. I would like to consider the possibility from the
viewpoints of a whole-party approach and the principle of the right
person in the right place." Regarding the timeframe for a cabinet
reshuffle, views are split in the government and the ruling
coalition, with some suggesting September, when the incumbent LDP
executives' term of office expires, and others calling for a shuffle
as soon as possible.

In shuffling the cabinet and appointing LDP executives, it is
necessary to pick personnel who will serve to give a boost to the
administration, as well as to focus on efforts to tackle new policy
agenda and reform the party. It is certain that calls from LDP

TOKYO 00003458 004 OF 006


members will grow louder for a whole-party approach to be taken, so
difficulties are expected in the selection process.

As for future Diet management, the prime minister said: "We will
cooperate and discuss fully with the Democratic Party of Japan (DPJ
or Minshuto) and take its assertions into account if they are worthy
of consideration." Asked about a possible dissolution of the House
Representatives for a general election, Abe said: "There are still
nearly two years left. I have no intention of dissolving the Lower
House at an early date."

7) As Ozawa's strategy proves effective, DPJ ready to launch
offensive to urge ruling coalition to dissolve Lower House election

MAINICHI (Page 2) (Excerpts)
July 30, 2007

The Democratic Party of Japan (DPJ or Minshuto) succeeded in taking
charge of the House of Councillors in the election yesterday by
garnering significantly more seats than its pre-election tally of
32, now becoming the main political party in the chamber. The
strategy hammered out by DPJ President Ichiro Ozawa, with efforts
focused on the 29 single-seat constituencies, proved effective,
destroying the longstanding foundations of the Liberal Democratic
Party (LDP). It can be said that the DPJ scored a complete victory
for the first tome since a non-LDP government was established in
1993. In a drive to take over the political reins in the next
general election, the main opposition party is set to accelerate
moves to have the ruling coalition dissolve the House of
Representatives at an early date. The DPJ is now certain to put more
pressure on the ruling camp.

On the behalf of Ozawa, who fell ill, Deputy Head Naoto Kan said
last night: "President Ozawa must be pleased with the election
outcome, though I have yet to talk with him. He played an energetic
part since he assumed office (in April of last year) as if the
election campaign were started on the day of his assumption."

8) New Komeito also suffers historic defeat

ASAHI (Page 3) (Full)
July 30, 2007

The junior coalition partner New Komeito was unable to maintain the
13 seats it won in 2001 Upper House election, losing three seats in
Aichi, Saitama, and Kanagawa constituencies. It was the first time
for the party to lose more than three of its seats up for
re-election. It was the first time since 1989 for it to suffer a
defeat in electoral districts. Indeed, the party suffered a historic
defeat.

The growing criticism of the Abe administration forced New Komeito
Representative Ota to have an uphill battle in the first grand
nation election after taking office as representative of the party.
Criticism of his leadership is likely to emerge, but Ota late
yesterday said, "There was support extended to our achievements and
policies," noting: "I'd like to serve out by making efforts to
widening the public's support for our party."

One senior New Komeito member said, "Our party's principles and
assertions are quite different from the prime minister's," but the
New Komeito has given the top priority to being in the coalition

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government and in effect given approval to policy measures strongly
reflecting the prime minister's ideological aspects and his
highhanded management of the Diet. The party has in a way played the
role of minimizing the cabinet members' gaffes and scandals, but
some in the party and its supporting body Soka Gakkai are discontent
with the party leadership now.

Given this, some in the party are likely to urge the party
leadership to come up with measures with its imprint. Representative
Ota late yesterday emphasized: "We will say what we should say."
Acting Chief Representative Toshiko Hamayotsu said: "We should do so
particularly over the politics-and-money issue." Regarding politics
on which the party is not in agreement with the Liberal Democratic
Party, for instance, the question of revising the constitutional
interpretation to allow Japan to exercise the right to collective
self-defense, the New Komeito is likely to intercept the LDP's
moves.

9) JCP now has no seats in election districts for Upper House as
well

YOMIURI (Page 7) (Full)
July 30, 2007

The Japanese Communist Party failed to retain five seats up for
election. It lost a seat in the Tokyo constituency as well. It now
has zero seats in election districts for both for the Lower and
Upper Houses.

JCP Chair Shii told reporters early today: "It was very regrettable
that our party was unable to win any seats in election districts.
However, we took the lead in the election battle under the banner of
'stop poverty' and 'protect Article 9 of the Constitution." He ruled
out the possibility of his quitting his post to take responsibility,
noting, "I want to fulfill my responsibility by finding a
breakthrough in the current situation in a positive manner."

General Secretary Ichita yesterday evening indicated his perception
that his party was unable to absorb votes critical of the ruling
camp. He said, "There was a fairly strong trend among voters of
voting for the Democratic Party of Japan (DPJ or Minshuto), the no.
1 opposition party, to punish the Liberal Democratic Party (LDP) and
the New Komeito."

In past Upper House elections, the JCP gained five seats in 2001 and
four in 2004. An increasing number of members now have begun saying,
"The JCP's challenge is to gain support from more swing-voters."

10) SDP falls short of retaining seats up for election

YOMIURI (Page 7) (Full)
July 30, 2007

The Social Democratic Party (SDP) only gained two seats, falling
short of retaining three up for election. It was unable to stem a
decline in party forces. The outcome apparently indicates that it
was unable to show its presence amid a fierce battle staged between
the ruling bloc and the Democratic Party of Japan (DPJ).

Meeting the press, party head Fukushima said, "The result is very
severe. It is good to gain control of the Upper House for the
opposition, but the SDP was unable to fully get its points fully

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across, overshadowed by the two major parties. Opposition to
amending Article 9 of the Constitution did not become the largest
campaign issue." Regarding the party's approach to the future
political situation, Fukushima said, "Since the Liberal Democratic
Party (LDP) suffered a crushing defeat, the DPJ, the Japanese
Communist Party (JCP) and the SDP will strongly call for the prime
minister's resignation."

SCHIEFFER

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