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Cablegate: Japanese Morning Press Highlights 08/08/07

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UNCLAS SECTION 01 OF 12 TOKYO 003624

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 08/08/07

Index:
1) Top headlines

2) Editorials

3) Prime Minister's daily schedule

4) DPJ President Ozawa will not respond to revision of the
anti-terror law extension bill

5) Ozawa wants DPJ to present bill scrapping the Iraq dispatch
legislation

6) Text of Ozawa's press conference on Aug. 7

7) LDP trying to woo DPJ with flexible stance toward anti-terror
special measures law

8) DPJ planning to make "reform competition" a theme at next Diet
session but LDP finding proposed revisions to political-funds
control law hard to swallow

9) More and more LDP lawmakers vocally calling for Abe to step down,
but the prime minister remains adamant to stay on

10) New Komeito objects to starting the next extraordinary Diet
session on Aug. 31 as overly hasty

11) LDP Secretary General Hidenao Nakagawa blames Bank of Japan's
monetary policy for the LDP Upper House election defeat

12) Foreign Minister Aso's appointment as next LDP secretary general
seems to be a done deal

13) Prime Minister Abe denies saying anything about whether he will
visit Yasukuni Shrine on Aug. 15, but signs still point to his
avoiding that day

14) Six-party energy talks: North Korea seeks investment-like aid,
while Japan continues to pound DPRK on abduction issue

15) Abe shortens trip to Australia due to expected Diet ruckus

16) Defense Minister Koike's trip to Washington is now set

17) Vice Defense Moriya says he know nothing about reports that he
is being retired

18) Defense Ministry ready to present environmental assessment
report on Camp Schwab runway plan

19) Senior US official in Tokyo explains US-led framework to stop
global warming

Articles:
1) TOP HEADLINES
Asahi:
Diet session called after election creating opposition-dominated
Upper House

Mainichi:
Rice farmers in Beijing suburb forced to grow different crops for

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sake of Olympics

Yomiuri:
Supreme Court nixes Steel Partners' appeal of Bull-Dog ruling

Nikkei:
Japan may fail to meet Kyoto Protocol target

Sankei:
Cabinet adopts basic plan to halve number of independent
administrative corporations

Tokyo Shimbun:
Ozawa to resubmit bill withdrawing troops from Iraq

Akahata:
JCP's role becoming more vital

2) EDITORIALS
Asahi:
(1) Opposition-dominated Upper House: Sense of intensity essential
for politics
(2) Minneapolis bridge collapse: Maintenance important

Mainichi:
(1) Extraordinary Diet session: Look for new image of legislature
(2) Trouble in basketball association deplorable

Yomiuri:
(1) DPJ must now show it deserves voters' faith
(2) Mysterious Chongyon scam case

Nikkei:
(1) DPJ bears heavy responsibility as largest Upper House party
(2) TSE must be role model

Sankei:
(1) Distrust of broadcasting industry lingers on
(2) Extra Diet session: National interests must come first

Tokyo Shimbun:
(1) New Upper House expected to display greater presence
(2) An open China expected ahead of 2008 Beijing Olympics

Akahata:
(1) 40th anniversary of ASEAN

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, August 7

NIKKEI (Page 2) (Full)
August 8, 2007

09:04:
Attended a cabinet meeting at the Kantei. Attended a meeting of
cabinet ministers related to the Tokyo International Conference on
African Development.
10:42:
Met with the recipients of the award on "making a dream in 2025 come
true through innovation" sponsored by the Cabinet Office, with
Innovation Minister Takaichi present.

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11:00:
Met Finance Minister Omi and Vice Finance Minister Tsuda. Followed
by Secretary General Nakagawa. Later attended a meeting of cabinet
ministers involved in drawing up monthly economic reports.
12:15:
Met Financial Services Minister Yamamoto.
12:32:
Attended a joint plenary meeting of party members of both houses of
the Diet. Later, attended a meeting of lawmakers.
13:03:
Attended a Lower House plenary session.
13:09:
Arrived at the Kantei.
15:00:
Attended an opening ceremony of the extraordinary Diet session at
the Upper House Hall. Later, met Upper House President Satsuki Eda
and Vice President Akiko Santo.
16:00:
Met Cabinet intelligence Director Mitani at the Kantei. Followed by
incoming and outgoing Tokyo Metropolitan Police commissioners
Yashiro and Ito.
16:34:
Attended a meeting of the Council on Economic and Fiscal Policy
18:33:
Met Secretary General Nakagawa, New Komeito President Ota, and New
Komeito Secretary General Kitagawa at his official residence.

4) Ozawa rejects antiterror law extension

YOMIURI (Page 2) (Full)
August 8, 2007

Democratic Party of Japan (Minshuto) President Ozawa, meeting the
press yesterday after the Diet convened an extraordinary session,
voiced his standpoint against the government's plan to extend the
Antiterrorism Special Measures Law, which is set to expire Nov. 1.
"President Bush started the Afghan war-regardless of the United
Nations and the international community-on the grounds that the war
was for the United States to defend itself," Ozawa said. With this,
Ozawa dismissed the law that is intended to back up US and British
military operations in Afghanistan. This indicates that Ozawa will
not respond to consultations with the ruling coalition over
amendments to the law for its extension.

In addition, Ozawa also indicated that he would consider presenting
a bill to the Diet in its next extra session, aiming to repeal the
Iraq Reconstruction Assistance Special Measures Law. "We've yet to
decide on what kind of theme to choose in the (next) extra Diet
session, but that's also one of the themes," Ozawa said. With this,
Ozawa indicated that he would consider bringing the bill before the
Diet in its next extra session that is expected to be called Aug.
31.

5) Ozawa may submit another Iraq pullout bill

TOKYO (Top play) (Slightly abridged)
August 8, 2007

Ichiro Ozawa, president of the leading opposition Democratic Party
of Japan (Minshuto), indicated in his press remarks yesterday that
he would consider bringing a bill before the Diet again in its
extraordinary session this fall to repeal the Iraq Reconstruction

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Assistance Special Measures Law. The bill is intended to withdraw an
Air Self-Defense Force detachment currently sent to Iraq. "We've yet
to choose any legislative measures," Ozawa said. "But," he added,
"that would be one of the themes." In the past, the DPJ has
presented the bill to the Diet three times. However, it has always
been scrapped.

Ozawa also referred to the issue of extending the Antiterrorism
Special Measures Law, under which Japan has sent a Maritime
Self-Defense Force squadron to the Indian Ocean to refuel US and
other foreign naval vessels there. In this respect, Ozawa raised a
question about the legitimacy of engaging the MSDF in such
assistance activities. "US President Bush said the Afghan war is a
war to defend the United States," Ozawa said. "And," Ozawa went on,
"he started the war-regardless of the United Nations and the
international community." With this, Ozawa implied that he would not
only oppose extending the law but also stand off consultations over
revising the law. In addition, Ozawa indicated that he looked
forward to joining hands with the People's New Party (Kokumin
Shinto) and other opposition parties to form a joint parliamentary
group in the House of Councillors. "We've yet to reach a final
conclusion, but I think that's good if it's possible for one group
to secure some seats," Ozawa said.

6) Main points from DPJ head Ozawa's press conference

NIKKEI (Page 2) (Full)
August 8, 2007

Diet management

Talks and cooperation are good, but current politics by the Liberal
Democratic Party and New Komeito give only little consideration to
the people's livelihood. Public criticism reflects the results of
the latest election. Finding a solution through talks and
cooperation between two parties with different ideas means meeting
the other half-way. We will send out a clear message as parties
holding a majority in the Upper House.

Next Lower House election

Although the party has lined up only about 100 individuals to run in
the constituencies, it is meaningless to play a leftover game. Our
target is to win over 150 single seats to become a majority party,
and we will build a system to that end. Playing leftover games in
the 300 constituencies is not our objective.

Income subsidy system

In addition to an income-subsidy system for farmers, we want to
translate basic ideas into legislation as much as possible to
establish something like a basic law. Besides farm policy, we will
present what we promised to the people to the Diet. (A bill to
abolish the Iraq Special Measures Law) would be a theme in the next
extraordinary Diet session.

Meeting with US Ambassador Schieffer

A meeting did not take place not because I did not want to see him.
Instead, it was because there had been no request from (the
ambassador). Now that I have received a request, I will meet him.


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7) Panicky government and ruling parties trying to lure DPJ on
extension of the anti-terror bill by flexible stance

TOKYO (Page 2) (Excerpts)
August 8, 2007

With the Democratic Party of Japan (DPJ or Minshuto) opposed to an
extension of the anti-terror special measures law, the biggest issue
in this fall's extraordinary session of the Diet, the government and
ruling parties are starting to use every trick in the book to try to
soften up the stance of the DPJ. The government would like to
somehow continue refueling services by Maritime Self-Defense Force
ships in the Indian Ocean for the warships of the US and other
countries that are seen as a symbol of the Japan-US alliance. It has
been throwing curve balls at the opposition party saying that of
course it favors fair play by calling for talks to revise the bill,
and that it is even willing to present a new bill.

At a news conference yesterday, Liberal Democratic Party (LDP)
Secretary General Hidenao Nakagawa urged cooperation from the DPJ,

SIPDIS
which has become the leading party in the Upper House. He said: "The
international role we are playing is being tested on whether we can
continue our oil refueling support. It is critical for the Japan-US
relationship, as well. The opposition parties must share this
understanding. I hope to see flexibility (by cooperation from the
DPJ)."

Regarding this issue, there has recently been a subtle change in the
statements of relevant government officials and party executives.
Immediately after the Upper House election, there was strong
criticism of the DPJ for clearly opposing the extension of the law,
but for the past few days, there has been a noticeable low-posture
approach of seeking to meet the DPJ in some fashion half way.

Specifically, the enticement being dangled before the DPJ is the
possibility of revision talks. The idea also has been thrown out of
accepting the concept of prior approval of the Diet in the bill,
which the DPJ has been seeking.

8) DPJ launches "reform competition" with LDP with decision to
submit own bill amending Political Funds Control Law to next Diet
session

MAINICHI (Page 5) (Excerpts)
August 8, 2007

The Democratic Party of Japan (DPJ) decided yesterday to submit to
the next extraordinary Diet session a bill amending the Political
Funds Control Law to obligate all political groups to attach
receipts for expenditures of more than one yen (excluding personnel
costs) as a measure to prevent "politics-and-money" scandals. This
move is aimed to launch "reform competition" with the Liberal
Democratic Party, with which the coordination of views has bogged
down. The New Komeito also made a similar decision yesterday. The
LDP is now being pressured by the main opposition party and its
ruling partner over reforms.

DPJ Political Reform Promotion Headquarters Chief Katsuya Okada in
its meeting yesterday criticized the revised law enacted by the
ruling camp in the earlier Diet session.

The DPJ presented to the regular session its bill mandating all

TOKYO 00003624 006 OF 012


political groups to attach receipts for expenditures of more than
10,000 yen. President Ichiro Ozawa calling in the House of
Councillors election campaign called for making the requirement
stricter by lowering the 10,000 yen level to one yen.

9) In LDP meetings, many participants point to prime minister's
responsibility for election defeat

YOMIURI (Page 2) (Full)
August 8, 2007

In meetings held by Liberal Democratic Party (LDP) members
yesterday, many participants presented views pointing to Prime
Minister Abe's responsibility for the party's crushing defeat in the
July House of Councillors election. Some faction leaders have urged
the prime minister to step down. The stinging electoral rebuke is
expected to spread further across the party.

In a meeting of the LDP Chugoku / Shikoku bloc last night, former
Defense Agency Director General Gen Nakatani, secretary general of
the Tanigaki faction, called for the prime minister's resignation,
saying:

"Under the current situation, it is necessary for the party to take
not stopgap but drastic treatment measures. For drastic treatment,
public confidence and momentum are indispensable. Under the current
prime minister, however, the party will not be able to make a fresh
start."

Former State Minister in Charge of Administrative Reform Seiichiro
Murakami, the secretary general of the Komura faction, also said:
"Unless the chief executive reflects more deeply on why the party
lost the election, the party will never be renewed even if junior
members are replaced."

In a meeting of the Kyushu bloc, many participants urged the prime
minister to attend a joint plenary meeting of party members of both
houses of the Diet and listen to views about his course of action.
After the meeting, though, former Secretary General Makoto Koga, the
chairman of the Niwa / Koga faction, indicated that he approves of
the prime minister's decision to stay on, remarking: "Damned if he
does and damned if he doesn't. Since he has said he will stay in
power, this is one option."

In a meeting of lawmakers held at noon yesterday, Nakatani, who sat
next to the prime minister, said: "The prime minister should step
down." Policy Research Council Vice Chairman Kenji Kosaka (Tsushima
faction) and former Defense Agency Director General Shigeru Ishiba
(Tsushima faction) also lashed out at the prime minister. Prime
Minister Abe was listening to such critical views with a stern
expression. He told reporters at the Kantei last night: "I must
receive severe views sincerely. I am determined to fulfill my
responsibility by pushing ahead with reforms."

The Tanigaki faction held a meeting in Tokyo last night to confer on
how to respond to the situation. Former Secretary General Koichi
Kato, who has harshly criticized the prime minister, also attended
the meeting. One senior Tanigaki faction member said: "Even if I am
unofficially told to join the cabinet in the next reshuffle, I will
decline the offer." The faction has underscored an anti-Abe posture
more clearly.


TOKYO 00003624 007 OF 012


10) New Komeito opposed to decision to convene extraordinary Diet
session on Aug. 31, citing lack of preparedness by new cabinet
ministers

MAINICHI (Page 2) (Full)
August 8, 2007

The government and the Liberal Democratic Party (LDP) have decided
to convene the next extraordinary Diet session on August 31. But New
Komeito members have voiced dissatisfaction with this decision.
Prime Minister Shinzo Abe apparently desires to summon a session
immediately after he reorganizes his cabinet on Aug. 27. However, as
a senior member said: "It was undesirable that the party skipped
prior consultations with the New Komeito," some LDP members have
begun to call for giving more consideration to the New Komeito.

New Komeito President Akihiro Ota met with LDP House of Councillors
Chairman Mikio Aoki yesterday, and they shared the view that if the
session is convened on Aug. 31, the ruling coalition would result in
allowing the Democratic Party of Japan (DPJ) to take advantage of
new cabinet minister's lack of preparedness. A senior New Komeito
member told an LDP member: "It is premature to convene the next
session (on Aug. 31)."

Ota met with the prime minister at the Prime Minister's Official
Residence last night, with LDP Secretary General Hidenao Nakagawa
and New Komeito Secretary General Kazuo Kitagawa also present. Ota
asked: "Is it true you will convene the session on the 31st?" In
response, Nakagawa only said: "A decision has not yet been made for
now."

"The BOJ is to blame for the LDP loss in election," says Secretary
General Nakagawa; "Our monetary policy is producing results,"
Governor Fukui rebuts

11) YOMIURI (Page 9) (Full)
August 8, 2009

The Bank of Japan (BOJ) is to blame for the LDP loss in the Upper
House election

With this statement, LDP Secretary General Nakagawa sought to put
pressure on Bank of Japan (BOJ) Governor Toshihiko Fukui during the
government's monthly economic report meeting, which took place
yesterday, attended by related cabinet ministers.

Nakagawa noted, "I heard people in regional districts during the
Upper House election campaign that they did not feel the economic
recovery first-hand. As the reason for that, the government has
stopped short of achieving its growth goal with the nominal growth
rate remaining sluggish." He then aimed his attack at BOJ Governor
Fukui, saying that the BOJ is to blame because of its monetary
policy changes, including the lifting of the zero interest rate
policy in July last year.

Fukui directly rebutted him: "The BOJ is administering its monetary
policy with the aim of sustaining the economic upturn while
maintaining stable prices. The economic performance has improved
under this policy."

Nakagawa has continued opposing the BOJ's belt-tightening monetary
policy at every opportunity. He apparently wanted to complain about

TOKYO 00003624 008 OF 012


the BOJ policy before quitting his post following the LDP's crushing
defeat in the Upper House election.

12) Final coordination underway to install Aso in LDP
secretary-general post

SIPDIS

YOMIURI (Page 1) (Full)
August 8, 2007

Prime Minister Shinzo Abe yesterday undertook final coordination to
appoint Foreign Minister Taro Aso (66) as secretary general of his
ruling Liberal Democratic Party (LDP) in the planned reshuffling of
his cabinet and the lineup of the LDP executives. Aso has declared
his support for Abe to stay on. Supposedly, Abe wants to treat Aso
favorably as a hopeful candidate to succeed him, and also wants Aso,
who enjoys high popularity, to act as the "face of the LDP" with an
eye on the next Lower House election.

Aso has been in agreement with Abe on a number of policy issues,
including foreign policy. He has been deeply trusted by the prime
minister.

On the evening of July 29, the election day for the Upper House, Abe
called Aso to the Prime Minister's Official Residence (Kantei) and
conveyed his intention to appoint him to a key post when he
reshuffles the cabinet and the LDP executive lineup, telling him:
"I'd like you to continue to serve in an important post in the
future as well." Yesterday, Abe covertly met with Aso in the Diet
and discussed with him how to manage the government from now on.

In order to deal with the crushing defeat in the recent Upper House
election, Abe has declared, "I'll change public sentiment by
reshuffling the cabinet." Abe wants to win the understanding of the
LDP about appointing Aso, who is an important cabinet member, to the
post of secretary general. The membership of the Aso faction is only
15. So, someone in the party may point out that it would be
difficult for Aso to lead the party.

Abe intends to reshuffle the cabinet and the lineup of the party
executives on Aug. 27, soon after returning home from his overseas
trips to India and some other countries. As for the selection of the
three top party posts, such as secretary general, however, Abe is
considering selecting them on Aug. 26.

13) Prime minister to stay away from Yasukuni on Aug. 15

MAINICHI (Page 2) (Full)
August 8, 2007

Ryuko Tadokoro, Daisuke Kondo

Prime Minister Shinzo Abe yesterday was asked by reporters at the
Prime Minister's Official Residence (Kantei) whether he would visit
Yasukuni Shrine on Aug. 15, the anniversary of the end of World War
II. Abe said, "I have made it a policy not to say whether I will or
will not visit the shrine." He thus again indicated his stance he
has taken since taking office as prime minister to avoid making a
clear response about shrine visits.

Given that in the wake of the stinging defeat in the recent Upper
House election, Abe needs to give even further consideration to
critical views in his Liberal Democratic Party (LDP) and the junior

TOKYO 00003624 009 OF 012


coalition partner New Komeito of his visit to the shrine, he is
likely to put off visiting the shrine on Aug. 15. An aide to the
prime minister indicated that in order to avoid irritating the New
Komeito, the prime minister would stay away on the 15th, saying:
"The prime minister will not visit the shrine on Aug. 15. He needs
to consider the partnership with the New Komeito."

Defense Minister Yuriko Koike, when asked by reporters at a press
briefing yesterday whether she would visit Yasukuni Shrine on Aug.
15, indicated her intention not to do so, saying, "There is no
possibility of visiting the shrine also in view of my schedule."
When she served as environment minister in the Koizumi cabinet from
2004 to 2005, she paid homage at the shrine on Aug. 15 of those
years.

14) Six-party working group meeting: North Korea demands
investment-type aid; Japan stresses its stance of giving priority to
abduction issue

YOMIURI (Page 2) (Full)
August 8, 2007

Among working-groups under the six-party talks to discuss North
Korea's nuclear issue, one on economic and energy cooperation
started at Panmunjom yesterday. The first round of the two-day
meeting ended in the evening.

Lim Sung Nam, ambassador of host nation South Korea, told reporters
that North Korea during a plenary meeting in the morning asked for
consumption-type aid, such as heavy fuel oil, which is used to
produce electricity, as well as investment-type aid, including
facilities for producing electricity and repair of electric power
plants. He stated that the talks on the 8th would likely focus on
this issue.

According to a Japanese source, participants from several countries
made proposals regarding fuel oil aid, including their readiness to
provide such, though China refrained from revealing when it would do
so.

The Japanese delegate once again stressed that Japan would not take
part in the energy aid unless there was progress on the abduction
issue.

Bilateral meetings, such as a US-North Korea meeting, were held in
the afternoon. A meeting between Japan and North Korea did not take
place.

15) Prime minister to shorten trip to Australia in wake of Upper
House defeat

NIKKEI (Page 2) (Full)
August 8, 2007

Prime Minister Shinzo Abe yesterday decided to shorten his trip to
Australia planned for early September. The initial plan was that he
would stay in Australia for a few days after attending an
Asia-Pacific Economic Cooperation (APEC) summit in Sydney on Sept.
8-9, but he is rescheduling so as to return home as early as Sept.
10.

In order to deal with the crushing defeat in the recent Upper House

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election, Abe is considering reshuffling the cabinet and the lineup
of Liberal Democratic Party (LDP) executives on Aug. 27 and
convening an extraordinary session of the Diet on Aug. 31. Eyeing
deliberations in the Diet, Abe appears to have decided to shorten
his overseas trip.

Abe initially planned to visit Canberra after attending the APEC
summit and as the first Japanese minister to deliver a speech in
parliament. But this plan has been cancelled. Abe also intends to
reconsider his tour of New Zealand.

16) Koike off to US

MAINICHI (Page 4) (Full)
August 8, 2007

Defense Minister Yuriko Koike departed Narita Airport yesterday
evening for her first official visit to the United States as defense
minister. Koike is scheduled to meet with Secretary of Defense Gates
in Washington on the morning of Aug. 8, late at night today, Japan
time. In addition, Koike is also planning to call on Vice President
Cheney and Secretary of State Rice. The defense minister made up her
mind to visit the United States, making much of an opportunity to
talk with her US counterparts before the Nov. 1 expiry of the
Antiterrorism Special Measures Law.

17) Defense Minister Koike decides to let Vice Defense Minister
Moriya go; Moriya: I haven't heard anything about it

YOMIURI (Page 4) (Abridged slightly)
August 8, 2007

Defense Minister Yuriko Koike has decided to let Vice Defense
Minister Takemasa Moriya, 62, retire as part of a plan to reshuffle
ministry officials.

Moriya became vice defense minister in August 2003. He has been in
his current post over four years, an unprecedented long period of
time. Under the previous Koizumi administration, he played an
important role in reaching a Japan-US agreement on relocating
Futenma Air Station to Camp Schwab. He has been responsible for
sealing the bilateral agreement.

The relocation plan has since stalled due to calls for changes from
Okinawa and Nago. Moriya, who is reluctant to making changes to the
relocation plan, was at loggerheads with former Defense Minister
Fumio Kyuma. Now that Kyuma is gone, rumor had it that Moriya would
stay on. Defense Minister Koike, however, has finally decided to let
Moriya go.

Having served in the current post for over four years, Moriya has
strong influence in the ministry. He has been criticized in the
ministry for his tendency to give important posts to people close to
him. Defense Minister Koike, apparently aiming to get rid of such an
atmosphere, said in a press conference yesterday: "Coordination is
underway (for selecting the new vice minister). We must consider
ways to revitalize the organization while placing the right persons
in the right places."

Koike reported on Moriya's retirement to Prime Minister Abe in
person at his official residence on August 6. Koike's decision came
so sudden that Moriya said to those around him yesterday, "I haven't

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heard anything about the personnel change."

An observation has surfaced in the government and ruling bloc that
once Moriya, who has been rejecting making changes to the
government's plan, is gone, the revision move would gain momentum.

Moriya will retire on September 1 timed with the Defense Facilities
Administration Agency's integration into the Defense Ministry. His
post will be filled by Tetsuya Nishikawa, 60, who hails from the
National Police Agency.

18) Gov't proposes eco-assessment for Futenma relocation

MAINICHI (Page 4) (Full)
August 8, 2007

The Defense Ministry presented an environmental assessment plan to
Okinawa Prefecture yesterday for the planned relocation of the US
Marine Corps' Futenma Air Station in Okinawa Prefecture. The
presented plan is for the government to detail how to assess the
possible impact of building an alternative facility for Futenma
airfield in a coastal area of Camp Schwab, a US military base in the
island prefecture's northern coastal city of Nago. This is the first
of procedures for an environmental impact assessment.

The plan-created by a Defense Ministry contractor-purports to ask
Okinawa Prefecture's local residents and governor for their opinions
before going ahead with an environmental assessment. The Defense
Ministry will present local opinions to the Okinawa prefectural
government. After that, the prefectural government is to state its
views to the Defense Ministry within 60 days. Meanwhile, Okinawa has
asked Tokyo to create a sea-based facility in waters off the coast
of Nago instead of building a land-based airfield. The prefectural
government is strongly repulsed by the Defense Ministry's
presentation of the plan, saying the government has yet to fully
consult with Okinawa Prefecture and its base-hosting municipalities
about where to locate the newly planned airfield.

19) Prevention of global warming: "The US wants to take initiative
in establishing post-Kyoto framework," says senior US official

TOKYO SHIMBUN (Page 3) (Full)
August 8, 2007

Prior to a Japan-US high-level meeting to be held in the run-up to
international efforts to deal with climate change, James
Connaughton, chairman of the White House Council on Environmental
Quality, yesterday held a press conference at the US Embassy in
Minato Ward, Tokyo. He noted during the briefing: "The US will not
ratify the Kyoto Protocol. It is important that the US takes a
leadership role in setting up an international framework that will
mandate developing countries to cut carbon dioxide emissions."

Connaughton explained that the purpose of his visit to Japan was to
discuss from the aspect of energy security measures reducing carbon
dioxide emissions starting after the first commitment period from
2008 through 2012 as stipulated under the Kyoto Protocol.

Reporters pointed out that the US, the largest CO2 emitter in the
world, has not yet ratified the Kyoto Protocol. Connaughton replied:
"The Kyoto Protocol does not obligate developing countries, which
emit more carbon dioxide than industrialized countries, to cut their

TOKYO 00003624 012 OF 012


greenhouse gas emissions. It is clearly an extremely imperfect
international rule." He then categorically said, "The Kyoto Protocol
will not play a role in bringing progress to all countries."

He stressed: "Japan is developing safe nuclear energy as one of the
two largest leaders in the world. We want to learn the lessons of
the earthquake in Japan this time. The US wants to achieve a
consensus within a UN framework. We want to take the initiative in
establishing a post-Kyoto framework."

SCHIEFFER

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