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Cablegate: Japanese Morning Press Highlights 09/11/07

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UNCLAS SECTION 01 OF 12 TOKYO 004223

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 09/11/07


Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule

Anti-Terrorism Law:
4) Government to present a new bill to replace expiring anti-terror
law that would limit MSDF activity to oil supplying in the Indian
Ocean, remove Diet approval
5) New anti-terror law would be readopted in the Lower House in
order to pass, as hardball DPJ refuses even party head meeting
6) Democratic Party of Japan (DPJ) to present own bill in Upper
House scrapping existing anti-terror law and pursue the government
on the policy and dispatch
7) DPJ hardens attitude toward the LDP over anti-terror law as extra
Diet session begins

Abe in trouble:
8) Yomiuri poll: Abe Cabinet support rate at 29 PERCENT ; On
extension of MSDF anti-terror dispatch, 29 PERCENT approve, 39
PERCENT disapprove; 29 PERCENT can't say which
9) Abe's remark in Diet speech "staking my job" on continuing MSDF
service in the Indian Ocean sets off wave of confusion in ruling
camp
10) Abe's speech in Diet lacks his policy imprint, with "beautiful
country" mentioned only once
11) Abe in speech jumps over mention of Lake Toya Summit next year

12) New Komeito levels some bitter criticism of Abe
13) 15 prefectural chapters of the LPD calling for Prime Minister
Abe to step down
14) Koizumi's children - group of freshmen lawmakers who came into
the Lower House in the 2005 election - are upset by LDP reinstating
postal rebel Hiranuma

15) US, Japan, European and Asian securities firms to strengthen
internal voluntary rules and rank companies in order to prevent
another sub-prime fiasco

Articles:

1) TOP HEADLINES

Asahi:
Government, ruling camp to present to Diet new legislation strictly
for refueling in Indian Ocean

Mainichi:
If new legislation to continue refueling mission is rejected in
Upper House, government, ruling coalition eye override in Lower
House

Yomiuri, Sankei, and Tokyo Shimbun:
5.24 million pension accounts nameless

Nikkei:
MHLW to ease burden of households depending on health, nursing
insurance starting next spring

Akahata:
Extraordinary Diet session convenes; Chairman Shii delivers speech

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in JCP meeting to lock horns with LDP, New Komeito

2) EDITORIALS

Asahi:
(1) Prime minister's resolve hard to understand
(2) APEC takes first step toward stopping global warming

Mainichi:
(1) Prime Minister Abe's fate hinges on just-opened Diet session
(2) Rocky path lies ahead of private universities

Yomiuri:
(1) MSDF refueling mission Japan's international duty
(2) APEC declaration includes energy conservation targets

Nikkei:
(1) Prime Minister Abe cuts off his retreat in extraordinary Diet
session
(2) Economic trends need watchful eye

Sankei:
(1) Prime minister's determination needs more explanation
(2) Six years after 9/11: War on terrorism requires unwavering
solidarity

Tokyo Shimbun:
(1) Abe's policy speech too light
(2) More fulltime jobs necessary to reduce income disparities

Akahata:
(1) Prime Minister Abe's policy speech: He has not learned lesson

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 9 & 10

NIKKEI (Page 2) (Full)
September 11, 2007

Sept. 9
Morning
Met with Australian Prime Minister Howard at the Australian
government office in Sydney. Held a joint press conference. Met with
Mexican President Calderon at Shangri-La Hotel. Had a chat with
Chinese President Hu Jintao without sitting down at Government
House. Attended the APEC summit conference.
Noon Attended a summit luncheon.
Afternoon Released a summit declaration. Held a press conference
with Japanese and foreign reporters at Hilton Hotel.
Night Left Sydney Airport aboard a government plane.

Sept. 10
06:09
Arrived at Haneda Airport.

06:46
Reported on his return home at Imperial Palace.

07:03
Arrived at Kantei residence.


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10:50
Met with Chief Cabinet Secretary Yosano at Kantei.

11:01
Attended a special cabinet meeting.

11:30
Attended a joint plenary meeting of LDP members of both Houses of
the Diet in Diet, and afterwards attended a meeting of lawmakers.

12:02
Attended a Lower House plenary session.

12:13
Arrived at Kantei.

13:00
Attended the opening ceremony of an extraordinary Diet session at
the Upper House Plenary Hall.

13:12
Arrived at Kantei.

14:02
Attended a Lower House plenary session.

14:52
Arrived at Kantei.

16:19
Met with Deputy Chief Cabinet Secretary Matoba.

17:03
Attended an LDP executive meeting in Diet. Afterwards, met with
Secretary General Aso.

SIPDIS

17:53
Arrived at Kantei.

18:27
Met with Prime Ministerial Advisor Nakayama.

18:53
Arrived at Kantei residence.

4) New antiterror legislation eyed for refueling only

YOMIURI (Page 1) (Full)
September 11, 2007

The government and the ruling parties decided yesterday to introduce
a new legislative measure to the Diet stipulating a clause allowing
Japan to continue the Maritime Self-Defense Force's current task of
supplying foreign naval vessels with fuel and water in the Indian
Ocean, instead of extending the Antiterrorism Special Measures Law.
The current antiterror law requires the government to ask the Diet
for its approval after sending out the Self-Defense Forces. The new
legislation will not stipulate this requirement of ex post facto
approval from the Diet. Instead, the legislation will limit SDF
activities to fuel and water supply only. The legislation, after
enacted into law, will be valid for one year. The government and the
ruling coalition of the Liberal Democratic Party and New Komeito

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will finalize a draft of the legislation late this month. In the
Diet, the House of Councillors, in which the opposition bench
currently holds a majority of the seats, may vote down the
legislation. In that case, the ruling coalition will pass it again
in the House of Representatives by a majority of two-thirds or
more.

In the Indian Ocean, naval vessels from foreign countries-including
the United States, Britain, and Pakistan-are on stage to block
terrorists from trafficking weapons, drugs, and money. To assist
their maritime interdiction operations (MIO) there, the MSDF has
been supplying them with fuel and water.

The new legislation allows tasking the MSDF with refueling and water
supply activities in order to continue the MSDF's mission in the
Indian Ocean. The current antiterror law incorporates search and
rescue operations as well as disaster relief operations. The new
legislation will not incorporate these activities.

The new legislation limits the MSDF's activities. The newly planned
law is to be valid for a period of one year. The ruling coalition
will regard the Diet's voting on the bill as its approval and will
not stipulate ex post facto approval. However, some ruling party
lawmakers say the government should report to the Diet on its SDF
dispatch. The government and the ruling parties will coordinate on
the matter.

Furthermore, the DPJ may focus on measures for humanitarian
assistance to Afghanistan. In this case, the government and the
ruling coalition will consider incorporating the DPJ's standpoint in
the new legislation.

The government and the ruling coalition plan to present the new
legislation to the Diet in late September. They want to get it
through the House of Representatives at an early date and send it to
the House of Councillors.

However, the DPJ does not approve of refueling itself and is
expected to vote against the new legislation. The Diet will likely
face rough going in its deliberations.


Antiterrorism Special Measures Law and new legislation compared
Current law New legislation
Activities Cooperation to back up foreign forces through fuel and
water supply services, search and rescue operations, disaster relief
operations. SDF activities limited to fuel and water supply services
for foreign vessels.
Diet role Diet approval required after starting SDF activities. If
disapproved, SDF activities must be terminated without delay. Diet
approval not required.
Duration Enacted as a time-limited law valid for 2 years. Extended
in 2003 for another 2 years. Reextended in 2005 and 2006 for 1 year
each. Likely to be valid for 1 year.

5) If new legislation to continue refueling mission rejected in
Upper House, Government, ruling coalition eye re-approval in Lower
House

MAINICHI (Top play) (Excerpts)
September 11, 2007


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In order to continue the Maritime Self-Defense Force's refueling
mission in the Indian Ocean to support the reconstruction of
Afghanistan, the government and ruling camp decided yesterday to
submit to the extraordinary Diet session a bill creating new
legislation to replace the current Antiterrorism Special Measures
Law in order to get it re-approved by the Lower House, even if it is
rejected by the opposition-controlled Upper House. In the meanwhile,
the major opposition Democratic Party of Japan remains adamantly
opposed to an extension of the MSDF mission. DPJ President Ichiro
Ozawa, who will not respond to Prime Minister Shinzo Abe's call for
talks, intends to ask for a party-head debate at the Diet.

The Antiterrorism Law expires November 1, the government, however,
does not intend to stick to its expiry. Even if the MSDF mission was
terminated temporarily, the government plans to redeploy troops
based on the envisaged new law to obtain the understanding of the
United States.

Cautious views were heard in the ruling camp about obtaining
re-approval in the Lower House, one senior LDP lawmaker saying: "It
is not easy to overturn the rejection of a bill by the Upper House."
On September 9, the prime minister expressed his willingness to step
down in the event he failed to get Diet approval for the legislation
designed to extend the refueling mission. Given the slim chance for
the DPJ to change its mind, he also decided to aim at re-approval in
the Lower House.

Chief Cabinet Secretary Kaoru Yosano in a press conference yesterday
made the following comment about the situation in which the
envisaged bill was voted down in the Upper House: "The Constitution
stipulates that a bill which is passed by the Lower House, and upon
which the Upper House makes a decision different from that of the
Lower House, becomes a law when passed a second time by the Lower
House by a two-thirds majority. There is no need to make a big fuss
about it."

There is a high likelihood that the bill will be presented to the
Diet before the end of this month and passed by the Lower House in
early October with a majority vote of the ruling parties and then
sent to the Upper House. If the opposition camp tries to prolong
Upper House deliberations and the chamber cannot take a vote, the
ruling camp would aim for re-approval in the Lower House by applying
the "60-day rule" in the Constitution. With such developments in
mind, the government and ruling camp are considering extending the
Diet session until November 10.

The DPJ is reacting furiously to such a move of the government and
ruling camp as neglecting the Upper House. At the same time, fearing
that simply rejecting a party-head meeting would result in public
criticism, the DPJ has decided to call for a public debate.

6) DPJ to submit bill to rescind Iraq Special Measures Law

MAINICHI (Page 2) (Full)
September 11, 2007

The Democratic Party of Japan (DPJ) decided yesterday to submit to
the current Diet session a bill designed to rescind the Iraq
Humanitarian Reconstruction Support Special Measures Law. The aim is
to immediately withdraw the Self-Defense Force (SDF) troops now
engaged in operations in Iraq. The Abe administration gives top
priority in its foreign policy to the humanitarian reconstruction

TOKYO 00004223 006 OF 012


operations in Iraq, as well as the Maritime Self-Defense Force's
refueling mission. The main opposition party aims to play up its
stance of confronting the government and ruling parties by rejecting
both missions, which the prime minister gives priority to in light
of international contributions and strengthening the Japan-United
States alliance.

DPJ President Ichiro Ozawa and other senior members yesterday
conferred on the party's basic approach in the current Diet session
and decided to submit the bill to the House of Councillors. The
refueling operations (in the Indian Ocean) based on the
Antiterrorism Special Measures Law are intended to assist
Afghanistan, but some have contended that the US vessels refueled by
the MSDF are actually carrying out operations in Iraq. The DPJ is
also aiming to attack the government by linking the Antiterrorism
Law to Iraq.

A bill amending the Iraq Special Measures law to extend the law by
another two years was enacted in the ordinary Diet session this
year. The Air Self-Defense Force has been transporting goods and
personnel.

7) DPJ hardening stance in reaction to prime minister's statement on
extension of Antiterrorism Special Measures Law: Ruling party
members beginning to refer to possible Diet dissolution

ASAHI (Page 2) (Almost full)\
September 11, 2007

Apart from what he really meant, the prime minister's Diet speech
carries special weight. Prime Minister Miyazawa in the past declared
that he would carry out political reform. However, his failure to do
so led to the adoption of a no-confidence motion against his
cabinet. As can be seen in this instance, strong words have a
greater fatal risk.

Diet Affairs Committee Chairman Tadamori Oshima, who is serving as
the central command of the Liberal Democratic Party's (LDP) Diet
strategy, yesterday told reporters, "The prime minister expressed a
very strong resolve. He made that statement out of the desire to
have the public understand the important meaning of the issue and
the ruling camp pursue intensive discussions." He indicated his
determination to do his utmost to secure Diet passage for the bill
amending the Antiterrorism Special Measures Law. Another senior
member of the LDP Diet Affairs Committee noted, "Upon hearing the
prime minister's statement, I felt how I should take it. Anyhow, I
must undertake the job with resolution."

Following the prime minister's statement, the atmosphere is
permeating among government and ruling party officials that if the
prime minister is determined to take the leap, everyone will all
have to do the same with great resolution, as Health, Labor and
Welfare Minister Masuzoe put it. One of the three party executives
said, "I think that the prime minister's statement was premature and
inappropriate. However, it has moved the situation one step
forward."

However, the prime minister's firm determination is ironically
making the Democratic Party of Japan (DPJ), whose cooperation he
needs, harden its attitude. DPJ Chairman Ozawa during a liaison
council meeting of party executives held in the Diet yesterday gave
a pep talk, indicating a negative view toward the possibility of

TOKYO 00004223 007 OF 012


talks between the ruling and opposition camps. He said, "We cannot
jump at the ruling camp's proposal with thinking and ideals that are
different from ours, even if it is modified." Defense Minister
Keiichiro Asao of the Next Cabinet, who is in charge of this issue,
categorically said, "There will be no change in the way the DPJ will
fight."

The widely-held view in the DPJ is that the prime minister's
statement is intended to shift the blame for a possible failure to
continue Maritime Self-Defense Force's refueling operations in the
Indian Ocean onto the DPJ. Secretary General Yukio Hatoyama told
reporters, "The idea is to generate international criticism if our
party opposes an extension of the Antiterrorism Special Measures
Law, and to continue the operations under a new law. Diet Affairs
Committee Chair Kenji Yamaoka during a lawmakers meeting pointed
out, "The LDP intends to spread the propaganda that the DPJ has no
power left to run the government."

Amid a battle in which neither side is showing any sign of making
concessions, some ruling party members have begun to make statements
with the prime minister's resignation, a dissolution of the Lower
House and a general election in mind.

8) Poll: Cabinet support at 29 PERCENT ; 29 PERCENT for MSDF
mission, 39 PERCENT against

YOMIURI (Page 1) (Abridged)
September 11, 2007

The support rate for Prime Minister Abe's cabinet was 29.0 PERCENT ,
the Yomiuri Shimbun found from its face-to-face nationwide public
opinion survey conducted Sept. 8-9. The nonsupport for the Abe
cabinet was 60.7 PERCENT . The support rate was up 1.8 percentage
points from a previous face-to-face survey taken in early August
after the election for the House of Councillors. The nonsupport rate
was down 3.0 points. However, the support rate was lower than 30
PERCENT for the second month in a row.

In late August, Abe shuffled his cabinet. Abe appointed heavyweights
to cabinet posts, involving leaders from his ruling Liberal
Democratic Party's factions. In a telephone-based survey conducted
right after the cabinet shuffle, his cabinet's support rate rose to
44.2 PERCENT out of expectations for his cabinet's new lineup,
topping the nonsupport rate (36.1 PERCENT ). The results of previous
polls and the one taken this time cannot be simply compared due to
different polling methodologies. In the survey this time, however,
the cabinet support rate fell. This can be taken as reflecting
public disappointment at the new cabinet due in part to Agriculture,
Forestry and Fisheries Minister Takehiko Endo's resignation over his
money scandal.

In the breakdown of public support for political parties, however,
the LDP rose to 29.3 PERCENT , up 3.5 points from the August survey.
The leading opposition Democratic Party of Japan (Minshuto) was at
20.9 PERCENT , down 6.0 points.

In the survey this time, respondents were also asked about the
advisability of extending the Maritime Self-Defense Force's mission
in the Indian Ocean under the Antiterrorism Special Measures Law to
continue the MSDF's refueling activities there. In response to this
question, affirmative answers accounted for 29 PERCENT , with
negative answers at 39 PERCENT . The proportion of those who "can't

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say which" also rose to 29 PERCENT . There also seem to be many
people who want to make their judgment after seeing Diet
deliberations from now on.

9) Prime minister's remark "I will stake my job on extending MSDF
mission" sets off confusion in ruling parties

YOMIURI (Page 4) (Full)
September 11, 2007

Prime Minister Abe's remark hinting that he would stake his job on
extending the Maritime Self-Defense Force's (MSDF) refueling mission
in the Indian Ocean set off confusion in the ruling camp yesterday.
Members wonder what prospects the prime minister has in mind for
progress on legislation in the current extraordinary Diet session.
If a new bill governing the extension of the MSDF refueling mission
is not passed into law, the political situation will inevitably be
thrown into confusion.

Speaking before reporters last night, Liberal Democratic Party
Secretary General Aso stressed that the prime minister's remark was

SIPDIS
intended to encourage the government and the ruling camp to have the
bill pass the Diet. He said: "I interpret (the prime minister's
remark) as saying, 'Aso, don't let up and do your best.' (I)
conveyed (the implication of the prime minister's remark) to (Diet
Affairs Committee Chairman Tadamori) Oshima and (Chief Cabinet
Secretary) Yosano."

SIPDIS

A senior member of the Machimura faction also said: "The prime
minister expressed his determination to deal with the issue with an
unwavering resolve. He probably has confidence in having the bill
pass the Diet."

In the House of Councillors, the opposition camp holds a majority,
and the Democratic Party of Japan (DPJ) has been dead set against
the continuation of the MSDF refueling mission. Under such a
situation, members in the government and the ruling parties
anticipate that the new bill is likely to be rejected in the Upper
House. Keeping such a possibility in mind, an increasing number of
members have begun to take the view that the government should aim
at enacting the bill by means of readopting the bill in the House of
Representatives. Aso also said: "(Passing the bill again in the
Lower House) might be an option."

Some ruling-party members responsible for Diet affairs are of the
opinion that whether the bill could be brought back into the Lower
House for a revote will depend on public support. Many people do not
support the government's plan to extend the MSDF refueling mission.
They fear that if the ruling camp rams through the bill over the
objections of the opposition bloc by means of re-adoption in the
Lower House, the public might negatively react to the ruling camp,
calling its approach forcible.

A senior member of the New Komeito said: "Regarding the MSDF
refueling operations, disapproval outnumbers approval. Unless the
disapproval rate closes in on the approval rate, it might be
difficult to take the re-adoption approach."

In the ruling parties, some take the view that if the government
fails to pass the bill, it will unavoidably develop into the issue
of whether the prime minister should step down, as shown by former
Secretary General Koichi Kato's remark: "With his controversial

SIPDIS

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remark, the prime minister now faces a fight."

In a meeting of the Tanigaki faction yesterday, one member said:
"The prime minister might decide to dissolve the Lower House in
desperation, instead of stepping down." The issue of whether to
extend the MSDF refueling mission is now likely to develop into a
"post-Abe" issue.

10) Abe in keynote address does not much mention "beautiful
country"

TOKYO SHIMBUN (Page 2) (Full)
September 11, 2007

Kei Sato

In his keynote address yesterday, Prime Minister Abe emphasized the
need to remove the gaps between rural and urban areas and deal with
politics-and-money scandals, which were seen as reasons for the
defeat in the July Upper House election, more strongly than ever
instead of highlighting his pet theories like building "a beautiful
country" and allowing the use of the right to collective
self-defense, both of which he had advocated since taking office as
prime minister. He was apparently forced to be humble because of the
reversal of positions between the ruling and opposition parties in
the Upper House, which is now under the opposition bloc's control.

ASTERISK ASTERISK ASTERISK ASTERISK ASTERISK
Compared to his policy speech in January of this year, it is obvious
that Abe shifted his policy stance.

Evidence of this was found in how often he mentioned his favorite
term "a beautiful country."

In the January policy speech, Abe used that term seven times and
declared his resolve to keep his administration in power for a
longer period. But in the policy speech this time he did not use the
term even once except in the conclusion.

On the question of allowing the exercise of the right to collective
self-defense, the blue-ribbon panel of experts established and led
by Abe is to come up with a conclusion by November, but Abe did not
mention this question at all in the speech.

On tax system reform, including the consumption tax, Abe in his
policy speech had indicated his intention to put together a specific
proposal "by fiscal 2007," but in yesterday's keynote address, he
did not indicated any target fiscal year, in effect delaying coming
up with a conclusion in fiscal 2008 or after.

Now that the foundations of his government have been weakened as a
result of the crushing defeat in the Upper House election, Abe was
apparently unable to work out any direction about whether to allow
the use of the right to collective self-defense and whether to hike
the consumption tax, because the opposition parties and some in the
ruling bloc are opposed to or cautious about allowing the use of
that right and hiking the consumption tax.

In the policy speech, Abe did not use the term "gaps in rural and
urban areas," but in the speech yesterday, he emphasized: "I will
sincerely lend my ear to local urgent voices expressing their
concerns about the gaps and their futures."

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On "money-and-politics" scandals, Abe indicated his enthusiasm to
amend the Political Funds Control Law, which had been modified in
the previous regular Diet session, in order to further improve
transparency.

11)Prime Minister Abe skips lines about 2008 G-8 summit in policy
speech at Upper House

YOMIURI (Page 4) (Full)
September 11, 2007

Prime Minister Shinzo Abe skipped several lines about the G-8
summit, which Japan will host next July in the Lake Toya hot-spring
resort area in Hokkaido, in his policy speech yesterday at the
plenary session of the House of Councillors.

In the lines he skipped, Abe stressed his determination to continue
to display at the G-8 summit leadership in addressing global
warming. Some opposition lawmakers jeered the prime minister, with
one saying "You are skipping the summit." But Abe ended his speech
without taking notice of it.

After the plenary session, Chief Cabinet Secretary Kaoru Yosano told
Upper House Steering Committee Chairman Takeo Nishioka that Abe made
a simple mistake. Since the part Abe skipped was not entered in the
minutes, Nishioka reportedly suggested that Abe reread his policy
speech. The government and ruling coalition also are arranging a
schedule for the prime minister to deliver his policy speech again
on Sept. 13.

According to the Upper House Secretariat, former Prime Ministers
Kakuei Tanaka and Zenko Suzuki skipped some part of their policy
speeches at the Upper House plenary session.

12) New Komeito critical of prime minister's keynote address

TOKYO SHIMBUN (Page 2) (Full)
September 11, 2007

Prime Minister Abe's keynote address met with criticism even from
some in the ruling parties. They pointed out a lack of explanations
and a lack of punch in the speech. This fact gave the impression
that Abe does not enjoy the control he had before. The opposition
parties were all critical of his address.

The junior coalition partner New Komeito's Representative Akihiro
Ota, giving heed to Abe's statement that "I will stake my post" on
an extension of the Antiterrorism Special Measures Law, noted: "I
think he needed to take more time to explain that law and convince
the opposition bloc." Speaking of the "politics-and-money scandals"
part in the address, Ota made this critical remark: "He should have
shown his strong determination when he said he had reflected on
them. It's important for him to show an attitude considering the
public's feelings."

The major opposition Democratic Party of Japan's Secretary General
Yukio Hatoyama made this harsh criticism of Abe's address: "There
was nothing that impressed me. There was no self-reflection." The
Japanese Communist Party's Chairman Kazuo Shii noted: "He needs to
reflect on his approaches to the pension issue and the gaps between
rural and urban areas, but there was no self-reflection." The Social

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Democratic Party's Chairperson Mizuho Fukushima criticized the
speech: "I was flabbergasted by his speech because he still
mentioned a beautiful country and a departure from the postwar
regime." The People's New Party's Representative Tamisuke Watanuki
commented: "It was no more than listing empty words. It lacked
soul."

13) Jiji poll: 15 LDP prefectural chapters expect replacement of
Prime Minister Abe

TOKYO SHIMBUN (Page 2) (Full)
September 11, 2007

Jiji Press found yesterday through its poll that 15 prefectural
chapters of the Liberal Democratic Party, which account for
one-third of the entire LDP chapters, expected the replacing of the
prime minister, noting they won't be able to fight the next House of
Representatives election under Prime Minister Shinzo Abe. Of the 15
prefectural chapters, ten named Secretary General Taro Aso as the
most suitable person to be the successor to Abe.

Jiji conducted the poll on Sept. 5-9 toward the secretaries general
of the 47 prefectural chapters. It received replies from all the
chapters, including replies by general council chairmen.

Toward a question whether they would be able to fight the next Lower
House election under Abe's leadership, the 15 chapters, including
the prefectures of Toyama, Shizuoka, Hyogo, and Okayama, answered
that Abe should be replaced. One of the reasons was that Abe did not
take seriously the party's defeat in the Upper House election and
they won't be able to get public understanding if they fight the
next Lower House race under Abe.

When asked who would be the most appropriate person to serve next
prime minister, ten prefectures, including Fukuoka, Wakayama,
Kagawa, and Okinawa, said Aso.

14) "Koizumi children" unite to oppose reinstatement of Hiranuma

NIKKEI (Page 2) (Full)
September 11, 2007

The Liberal Democratic Party's (LDP) will likely allow Takeo
Hiranuma, who left the party in opposition to the government's
postal-privatization program, to rejoin the party. With this
connection, a move is afoot in the LDP reacting negatively toward
the party's policy, with one member saying, "It means a rejection of
former Prime Minister Junichiro Koizumi's structural reform drive."
The lawmakers raising objections are those who are serving in their
first term in the Diet since they were elected the Lower House
election two years ago. They are called "Koizumi children." They
formed yesterday a study group opposing the reinstatement of
Hiranuma, intensifying criticism against Prime Minister Shinzo Abe's
correction of the reform policy line.

The group held its first meeting yesterday in the Diet building. A
total of 12 lawmakers, including Masaaki Taira and Koichi Yamauchi,
attended the meeting. Yamauchi stressed in the session: "I feel now
that the party is gradually going back to the old LDP." They appear
to seek to constrain the move of changing the policy line.

The group will focus on the Hiranuma issue for the time being. In

TOKYO 00004223 012 OF 012


yesterday's meeting, Jiro Ono, Yasuhiro Nakagawa, and Shika Kawajo
raised their objections to Hiranuma's reinstatement. There was
strong backlash against the reinstating of former lawmakers, who
lost their Lower House seats in opposition to postal privatization,
since many of them compete in the same constituencies with "Koizumi
children."

15) Securities authorities of Japan, US and Asian nations to
investigate rating companies: Strengthening voluntary international
rules also eyed

NIKKEI (Page 1) (Excerpts)
September 11, 2007

The problem caused by subprime loans targeting individual borrowers
with low creditworthiness in the US has given rise to criticism of
credit rating companies. In this connection, it was learned on Sept.
10 that securities officials of Japan, the US, European and Asian
countries will launch a joint fact-finding survey of rating
companies. Major rating companies in the world, including Japan,
will be invited to a meeting of the International Organization of
Securities Commissions (IOSCO) to be held in Washington in
September, joined by securities officials of concerned countries.
They will hear how they rate securitized commodities and what system
they adopt in doing so.

Another aim of securities officials of leading companies falling in
step on this issue is to show their determination to settle the
subprime loan issue. During the planned meeting, they will look into
the possibility of strengthening international voluntary rules
adopted by rating companies. Their discussion will also be used as
materials for discussion on the propriety of adopting global rules.

SCHIEFFER

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