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Cablegate: Daily Summary of Japanese Press 10/01/07

VZCZCXRO2968
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #4588/01 2740828
ZNR UUUUU ZZH
P 010828Z OCT 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8118
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//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 5871
RUEHFK/AMCONSUL FUKUOKA 3458
RUEHOK/AMCONSUL OSAKA KOBE 7116
RUEHNAG/AMCONSUL NAGOYA 2394
RUEHKSO/AMCONSUL SAPPORO 4178
RUEHBJ/AMEMBASSY BEIJING 9260
RUEHUL/AMEMBASSY SEOUL 5316
RUCNDT/USMISSION USUN NEW YORK 6182

UNCLAS SECTION 01 OF 13 TOKYO 004588

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: DAILY SUMMARY OF JAPANESE PRESS 10/01/07


Index:

(1) Prime minister's policy speech fails to show imprint of his own
views as a result of prioritizing cooperation from opposition
parties

(2) Agreement in six-party talks: Improvement in relations with
North Korea a challenge for Japan-US relations; Removal of the North
from US list of terror-sponsoring state may worsen Japan-US
relations

(3) Poll on Diet dissolution

(4) Defense Minister Ishiba to return political donation to company

(5) Japanese government may reconsider its ODA to Burma as an
additional sanction

(6) Deadline for MSDF refueling operations one month away:
Antiterrorist surveillance network certain to become less tight;
Pakistan's activities expected to drop 40 PERCENT

(7) Government under pressure in face of criticism from opposition
camp over allegation of diversion of Japanese fuel

(8) Agreement in six-party talks: Improvement in relations with
North Korea a challenge for Japan-US relations; Removal of the North
from US list of terror-sponsoring state may worsen Japan-US
relations

(9) UNRWA for Palestine Refugees hopes for Japan's assistance to
Gaza Strip

(10) 110,000 protestors rally in Okinawa against deletion of
descriptions concerning "forced mass suicide," urge the central
government to "rescind screening results"

(11) Bill amending AML to be submitted next March: FTC chairman says
during press conference on his reelection to post: Shows eagerness
to crack down on international cartels

(12) TOP HEADLINES

(13) EDITORIALS

ARTICLES:

(1) Prime minister's policy speech fails to show imprint of his own
views as a result of prioritizing cooperation from opposition
parties

YOMIURI (Page 2) (Full)
Eve., October 1, 2007

Prime Minister Fukuda delivered his first Diet policy speech,
assuming a humble attitude in order to seek cooperation from the
opposition parties, which now controls the upper chamber of the
Diet. As Fukuda himself admitted, his speech left us with the
impression that he has attached top priority to not irritating the
opposition parties, as evidenced by the fact that he simply listed
policy measures he had earlier declared in the Liberal Democratic
Party's (LDP) presidential election. As a result, he failed to show

TOKYO 00004588 002 OF 013


his own policy imprint, in other words, his fundamental policy
stances.

It was unusual for a prime minister, who had just assumed the reins
of government, to call on the opposition camp in his first policy
speech to cooperate with him, before even sketching out what his
administration would be like or even listing the policy tasks. His
speech is in this sense can be viewed as reflecting his strong sense
of crisis over the current situation in the Diet.

On particular policy tasks, too, what the prime minister first
mentioned were the politics-and-money issue and the question of the
missing of payment records of pension premiums. On the largest
question in the current Diet session, namely, what to do about the
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian
Ocean, the prime minister humbly said, "I will do all I can to make
you understand the need for the mission." But the prime minister
neither mentioned any plan to submit a new bill for continuing the
refueling mission nor any possibility of having to put the bill to a
re-vote in the Lower House (once the Upper House voted it down).

On the policy area, Fukuda indicated he would fundamentally maintain
the structural reform line of his predecessor administrations led by
Koizumi and then Abe. But at the same time, he expressed his
enthusiasm to work out measures to remove income disparities, by
using the term "prescriptions." The disparity issue can be
considered the "shadow" reform.

Fukuda also declared a freeze on hiking medical payments the elderly
would pay at hospitals, which was included in a partnership
agreement on the coalition government with the New Komeito, but no
fresh policy approach came out in his speech.

Fukuda has emphasized he "assumed the top post suddenly," indicating
modesty by saying, "When I am called 'prime minister,' I sometimes
fail to realize I am prime minister," but we hope Fukuda as the
leader of the nation would demonstrate his "ideas and feelings" in
Diet debate in the days ahead.

(2) Agreement in six-party talks: Improvement in relations with
North Korea a challenge for Japan-US relations; Removal of the North
from US list of terror-sponsoring state may worsen Japan-US
relations

NIKKEI (Page 2) (Excerpts)
October 1, 2009

Hirotake Maruya, Beijing

With the inclusion of phrases about improvement in relations between
Japan and North Korea and the United States and North Korea in an
agreement reached by six countries negotiating North Korea's
denuclearization, the US and Japanese governments will likely be
forced now to make tough decisions. Japan has opposed removal of
North Korea from the US' designation of it as a terrorism-sponsoring
state, something that Pyongyang has called for. The US intends to
make a final decision on the matter depending on the level of
improvement in the North's nuclear issue. However, there is a
possibility that a US decision to remove North Korea from the list
will adversely affect relations between Tokyo and Washington.

Change in North Korea's adversarial stance against Japan

TOKYO 00004588 003 OF 013

Foreign Ministry Asian and Oceanian Affairs Bureau Director General
Kenichiro Sasae commented on his just-concluded negotiations with
North Korean Vice Foreign Minister Kim Gye Guan, saying: "There was
an understanding that we would frequently discuss pending issues and
issues of concern through the six-party talks." Japan-North Korea
relations remain cool, but the number of contacts between
negotiators from the two countries has increased, even though there
has been no concrete improvement in bilateral relations, except for
a working group meeting in September on normalization of diplomatic
ties.

Kim announced in a full session of the six-party talks that the
North together with Japan would make efforts to improve bilateral
relations, giving the impression of a change in Pyongyang's
adversarial stance toward Tokyo. One of the reasons for Pyongyang's
change in stance is Yasuo Fukuda having assuming the prime
minister's post, replacing Shinzo Abe, who took a hard-line stance
toward the North. But the main reason is Washington's pressure on
Pyongyang.

US Assistant Secretary of State East and Pacific Affairs Christopher
Hill, US envoy to the six-party talks, has stressed in every meeting
with Kim the need for North Korea to improve ties with Japan. As the
nuclear issue moves from the second stage to nuclear disablement,
the scale of economic aid will become lager.

In a bid to reduce its own financial burden, the US must convince
Japan to provide aid. Japan has asserted that it will not take part
in an economic assistance program unless the abduction issue is
first resolved.

Japan concerned about US rushing for achievements

The Bush administration has adopted a policy course leading toward a
decision on whether to remove North Korea from the list of states
sponsoring terrorism, while saying that it will continue to give
consideration to the issue of North Korea's abductions of Japanese
nationals.

For the US, which hopes for using removal of the North from its list
of state sponsors of terrorism as a lever to revolve the nuclear
issue, it is inconvenient for Tokyo and Pyongyang to lock horns with
each other. Improving Japan-North Korea relations is a prior
condition for Washington to use the card resolving the nuclear
issue.

US President George W. Bush approved energy aid worth 25 million
dollars to the North, while the negotiators from the six countries
were engaged in negotiations, making clear his stance of backing the
agreement. However, Japan is concerned about the US stance of
hurrying to produce achievements.

In the consultations this time around, the US did not bring up the
allegation of nuclear connections between Syria and North Korea. The
reason is because if the charge of such nuclear proliferation is
true, the US strategy would be substantially undermined. In former
Prime Minister Junichiro Koizumi's meetings with leaders from
various countries, Israeli leaders had been most interested in North
Korea's nuclear ambitions and in the abduction issue. This was
because both Japan and Israel both sense the threat from North Korea
as a nuclear proliferating state.

TOKYO 00004588 004 OF 013

A source familiar with the six-party talks predicts that chances are
that the US will remove North Korea from its list of the
terrorist-sponsoring states later this year. This decision could
create strains in Japan-US relations.

(3) Poll on Diet dissolution

MAINICHI (Page 2) (Full)
September 28, 2007

Questions & Answers
(T = total; P = previous; M = male; F = female)

Q: Do you think the House of Representatives should be dissolved for
a general election? Pick only one from the following four options.

T P M F
Dissolve within the year 25 31 21
Dissolve around next spring after the next fiscal year budget's
passage 31 34 29
Dissolve after the G-8 summit in Hokkaido next summer 18 16 19
No need to dissolve 20 15 22

Q: Which political party between the Liberal Democratic Party and
the Democratic Party of Japan (Minshuto) would you like to see win
in the next election for the House of Representatives?

T P M F
LDP 41 (39) 42 40
DPJ 45 (43) 50 42
Other political parties 9 (13) 6 10

(Note) Figures shown in percentage, rounded off. "No answer"
omitted. Figures in parentheses denote the results of the last
survey conducted Sept. 12-13.

Polling methodology: The survey was conducted Sept. 25-26 over the
telephone across the nation on a computer-aided random digit
sampling (RDS) basis. Answers were obtained from 828 persons.

(4) Defense Minister Ishiba to return political donation to company

NIKKEI (Page 2) (Full)
October 1, 2007

It was learned on Sept. 30 that the No. 1 chapter of the ruling
Liberal Democratic Party (LDP)'s Defense Minister Shigeru Ishiba's
electoral district in Tottori Prefecture had received 100,000 yen in
political donation in December 2005 from a construction company in
Hyuga City, Miyazaki Prefecture, which received government
subsidies. Under the Political Funds Control Law, companies
receiving subsidies from the government are prohibited for a year
after they receive the government's notification of issuance of
subsidies from extending any donation related to political
activities.

Defense Minister Ishiba on Sept. 30 told reporters at the Prime
Minister's Official Residence:

"The company did not know that it was unable to offer donations. I,
too, did not know that the company had received government

TOKYO 00004588 005 OF 013


subsidies. I will return the donation to the company."

(5) Japanese government may reconsider its ODA to Burma as an
additional sanction

MAINICHI (Page 3) (Full)
September 29, 2007

Following the shooting death of Japanese journalist Kenji Nagai in
Burma, the Japanese government has shifted from the cautious stance
it had taken until the previous day and is now looking into a
possibility of applying additional sanctions against that country.
Since it has developed a certain level of communications lines with
the military junta, the government at first intended on behalf of
the international community to work on the junta to exercise
self-restraint. The government felt this also would enhance Japan's
presence in the region. However, Japan is now at a crossroads,
having to choose whether to switch from a dialogue stance to a
pressure policy.

Prime Minister Yasuo Fukuda on Sept. 28 told reporters, "I regret
that Mr. Nagai died. I will ask the Myanmar government to find out
the truth and take steps." Regarding additional sanctions, "It is
difficult to determine at this point that applying sanctions is the
best measure."

Foreign Minister Masahiko Komura, now visiting the US, on the
evening of Sept. 27 ordered the Foreign Ministry (MOFA) to consider
the possibility of applying sanctions if necessary. One senior MOFA
official also noted on the 28th, "Some strong steps will be
necessary." The Parliamentary Group to Assist Myanmar's
Democratization (chaired by Tadamori Oshima, chairman of the Liberal
Democratic Party Diet Policy Committee) on the 28th submitted a
written request to Deputy Foreign Minister Hitoshi Kimura, noting
that Japan should reconsider its official development assistance
(ODA) to Myanmar.

The ideas being floated about specific sanctions include limiting
the entry of Burmese public servants into Japan and freezing the
program of training personnel that targeted government officials.
Technical cooperation (1.6 billion yen in fiscal 2005) may also be
frozen.

MOFA advises restraint on news-collecting activities in Myanmar

Following the death of video journalist Kenji Nagai in Yangon,
Burma, MOFA on the 28th advised domestic media that they postpone
the dispatch of reporters and cameramen to that nation. This is a
measure in response to the issuance of travel warning to all
Japanese on the 27th.

(6) Deadline for MSDF refueling operations one month away:
Antiterrorist surveillance network certain to become less tight;
Pakistan's activities expected to drop 40 PERCENT

YOMIURI (Page 3) (Abridged slightly)
October 1, 2007

The legal basis for the Maritime Self-Defense Force's refueling
operations will expire in just one month. MSDF activities in the
Indian Ocean were opened to the media in mid-September ahead of
fierce Diet deliberations between the ruling and opposition blocs.

TOKYO 00004588 006 OF 013


The following report on the MSDF operations from the Indian Ocean in
the war on terrorism is intended to help readers consider the
significance of the ongoing multinational effort and Japan's
national interests.

Japanese flag

A Pakistani destroyer showed up behind the MSDF supply vessel Tokiwa
to receive fuel under the scorching sun in the Arabian Sea in the
northern part of the Indian Ocean. Receiving an instruction from an
MSDF officer, the Pakistani vessel closely approached the Tokiwa and
ran alongside it at a speed of 12 knots. The two vessels were 40
meters apart from each other.

Following a ship-to-ship refueling signal, the Tokiwa fired a rope
at the Pakistani vessel to guide a black hose and soon began pumping
light fuel oil into the ship under the watch of MSDF helicopters and
the destroyer Kirisame.

At present, the Pakistani Navy is the MSDF's largest receiver of
such assistance. Since August 2006, the MSDF has refueled Pakistani
vessels over 40 times, the largest number among the participating
countries. The Pakistani destroyer receiving fuel from the Tokiwa
was flying a Japanese flag.

Currently only four supply vessels from Japan, the United States,
and Britain are taking part in the maritime interdiction operations
(MIO) involving six countries. Japan is the only country that has
been providing fuel free of charge regardless of a treaty designed
to charge such NATO members as the United States, Britain, Germany,
and France for refueling services. Although critics of the Indian
Ocean mission ridicule the MSDF operations as a floating free gas
station, the MSDF personnel have been faithfully performing with the
approach of the deadline for the Antiterrorism Special Measures
Law.

Tokiwa captain Commander Sugawara, 54, said: "We will just follow
the political decision. We also want the public to become more aware
of our activities over here in the Indian Ocean."

The refueling service was completed in about one hour, and the
lifejacket-clad MSDF personnel wiped away the dripping sweat on his
brow in the extremely humid and gritty air.

Negative impact from MSDF withdrawal

The MSDF refueling operations began as part of the Operation
Enduring Freedom (OEF) in Afghanistan in the wake of 9/11. Its
objective is to prevent terrorists from fleeing the area by sea and
blocking routes for transport of weaponry, drugs, and other
materials. Eleven countries have sent their naval troops to the OEF.
Their troops have been engaged in warning and surveillance
activities in the vast area stretching from Pakistan to the Horn of
Africa.

Based on intelligence collected by those countries, naval vessels of
the US-led coalition forces have made 140,000 radio communication
inquiries and searched 11,000 suspicious ships. The number of radio
communication inquiries markedly declined from 41,000 in 2004 to
14,000 in 2005 and then to 9,000 in 2006. A senior Defense Ministry
official noted: "This testifies to the drop in suspicious ships
under the tight surveillance in the area."

TOKYO 00004588 007 OF 013

Surveillance activities have been supported by the MSDF refueling
operations. The MSDF has supplied some 480,000 kiloliters of fuel to
the vessels of 11 countries since it began refueling services in
December 2001. At present, 15 vessels from five counties -- the
United States, Britain, Germany, France, and Pakistan -- are keeping
watchful eyes on the area. Tight surveillance requires the presence
of a large number of coalition force vessels at any given time. The
presence of supply vessels is vital for those vessels to remain in
the sea without returning to the ports for refuel.

British Commodore Winstanley, deputy commander of a combined
coalition maritime force based in Bahrain, said that fuel from the
MSDF would enable a naval vessel to stay in the area for seven days.
Pakistani Navy Commodore Hasham, too, predicted that MSDF withdrawal
would dent the country's activities by 40 PERCENT .

The Nov. 1 expiration of the Antiterrorism Law would force two MSDF
vessels to leave the Indian Ocean.

Sea lanes vital for Japan

The government is eager to extend the MSDF refueling operations as
part of the war on terrorism, for such would serve Japan's national
interests.

Sea lanes from the Middle East through the Indian Ocean and South
East Asia are essential for Japan, whose fate and prosperity heavily
depend on maritime transport. In fact, Japan imports 99 PERCENT of
its crude oil and 97 PERCENT of its natural gas, and it can produce
domestically only 10 PERCENT of the wheat and 5 PERCENT of the soy
beans it consumes. A threat to the sea lanes by an international
terrorist group would dry up resources not only for Japanese
industries but for Japan's dinner tables, as well.

According to a naval-affairs source, a vessel from the Middle East
headed for Japan meets a 200,000-ton-class tanker from Japan every
eight hours. The source also said: "Many tankers in the Indian Ocean
have conveyed messages of appreciation to US-led coalition of naval
vessels."

Supporting the US-led coalition forces is tantamount to defending
the sea lanes for maritime transport. The continuation of the MSDF
operations clearly serves the national interests of Japan, which has
been benefiting from open sea lanes.

"Japan must contribute to the stability of this area as a country
benefiting from the region," said Pakistani Navy Commodore Hasham.
His words reflect the common perception of the international
community.

Records of MSDF refueling operations (as of Aug. 30, 2007)

Fuel for naval vessels 777 times; 48,000 kiloliters
Fuel for helicopters 65 times; 960 kiloliters
Water 119 times; 6,530 tons

Fuel received by country (one year since August 2006)

Pakistan 40 times
US 25 times
France 21 times

TOKYO 00004588 008 OF 013


Germany 10 times
Britain 7 times
Italy 3 times
Canada 2 times

Accomplishment by MIO

Drugs Over 12 tons
Weaponry Over 500 small arms; over 12,000 shells
People held Over 50

(7) Government under pressure in face of criticism from opposition
camp over allegation of diversion of Japanese fuel

YOMIURI (Page 4) (Full)
September 29, 2007

The question of whether United States warships used fuel provided by
a Maritime Self-Defense Force (MSDF) replenishment vessel in the
Indian Ocean in the Iraq war is now taking center stage in the
ongoing extraordinary Diet session. Claiming that the diversion of
Japanese fuel for use in the Iraq war is against the principle of
the Antiterrorism Law, the opposition camp is lashing out at the
government for its move to enact new legislation to replace the
Antiterrorism Special Measures Law. The government and the ruling
bloc are eagerly trying to put out the fire, but they are having a
hard time finding specific grounds for their assertions.

Correction of fuel amount in Diet reply

In a press conference on Sept. 28, Democratic Party of Japan (DPJ)
Secretary General Hatoyama said: "If it is proved true that (the

SIPDIS
government) told a lie (on the amount of fuel supplied by the MSDF
to US warships), the premise it has set forth will break up."
Hatoyama then indicated that in a session of representative
interpellations to start Oct. 3, he would take up the allegation
that the MSDF had indirectly refueled a US aircraft carrier involved
in the war in Iraq. On Oct. 1, Policy Research Council Chairman
Naoshima is scheduled to meet Chief Cabinet Secretary Machimura to
hand a letter calling for information disclosure over to him.

In Diet replies, the Defense Ministry had said that the amount of
fuel provided to US vessels by the MSDF was 200,000 gallons, but the
ministry corrected this figure into 800,000 gallons on Sept. 21.
Hatoyama took up this fact in the Sept. 28 press conference.

Until then, the government had given this explanation: "The 200,000
supplied by the MSDF is equivalent to the amount of the day's
consumption by a refueled aircraft carrier. It therefore is
inconceivable that the refueled aircraft could reach the Persian
Gulf, near Iraq." The correction of the amount, though, has
encouraged the DPJ to intensify its attack on the ruling coalition,
with one official remarking: "The grounds for the government's reply
have collapsed."

The Defense Ministry has cited a data-entry error as the cause, but
the opposition bloc is poised to grill the ruling camp on this
problem.

Acceleration of investigation

Defense Minister Ishiba emphasized in a press conference on Sept.

TOKYO 00004588 009 OF 013


27: "Giving a detailed explanation is the government's
responsibility." He then instructed his ministry officers to
accurately and speedily investigate whether some of the MSDF-provide
fuel was diverted for use in the Iraq war.

Foreign Minister Komura, now visiting the US, also told US Secretary
of State Condoleezza Rice: "Unless the US provides Japan with
information, the government will find it difficult to persuade the
opposition camp."

Within the government, however, many are skeptical of the idea of
having countries concerned provide Japan with data and records
related to their warships refueled by the MSDF. A senior Defense
Ministry official said: "If the US, citing the need of protecting
classified military information, refuses to provide information, it
will be impossible for Japan to investigate the matter."

Another government source also commented: "It is expected that many
countries will refuse to disclose their naval ships' fuel
consumption and navigation routes, regarding such information as
military secrets."

(8) Agreement in six-party talks: Improvement in relations with
North Korea a challenge for Japan-US relations; Removal of the North
from US list of terror-sponsoring state may worsen Japan-US
relations

NIKKEI (Page 2) (Excerpts)
October 1, 2009

Hirotake Maruya, Beijing

With the inclusion of phrases about improvement in relations between
Japan and North Korea and the United States and North Korea in an
agreement reached by six countries negotiating North Korea's
denuclearization, the US and Japanese governments will likely be
forced now to make tough decisions. Japan has opposed removal of
North Korea from the US' designation of it as a terrorism-sponsoring
state, something that Pyongyang has called for. The US intends to
make a final decision on the matter depending on the level of
improvement in the North's nuclear issue. However, there is a
possibility that a US decision to remove North Korea from the list
will adversely affect relations between Tokyo and Washington.

Change in North Korea's adversarial stance against Japan

Foreign Ministry Asian and Oceanian Affairs Bureau Director General
Kenichiro Sasae commented on his just-concluded negotiations with
North Korean Vice Foreign Minister Kim Gye Guan, saying: "There was
an understanding that we would frequently discuss pending issues and
issues of concern through the six-party talks." Japan-North Korea
relations remain cool, but the number of contacts between
negotiators from the two countries has increased, even though there
has been no concrete improvement in bilateral relations, except for
a working group meeting in September on normalization of diplomatic
ties.

Kim announced in a full session of the six-party talks that the
North together with Japan would make efforts to improve bilateral
relations, giving the impression of a change in Pyongyang's
adversarial stance toward Tokyo. One of the reasons for Pyongyang's
change in stance is Yasuo Fukuda having assuming the prime

TOKYO 00004588 010 OF 013


minister's post, replacing Shinzo Abe, who took a hard-line stance
toward the North. But the main reason is Washington's pressure on
Pyongyang.

US Assistant Secretary of State East and Pacific Affairs Christopher
Hill, US envoy to the six-party talks, has stressed in every meeting
with Kim the need for North Korea to improve ties with Japan. As the
nuclear issue moves from the second stage to nuclear disablement,
the scale of economic aid will become lager.

In a bid to reduce its own financial burden, the US must convince
Japan to provide aid. Japan has asserted that it will not take part
in an economic assistance program unless the abduction issue is
first resolved.

Japan concerned about US rushing for achievements

The Bush administration has adopted a policy course leading toward a
decision on whether to remove North Korea from the list of states
sponsoring terrorism, while saying that it will continue to give
consideration to the issue of North Korea's abductions of Japanese
nationals.

For the US, which hopes for using removal of the North from its list
of state sponsors of terrorism as a lever to revolve the nuclear
issue, it is inconvenient for Tokyo and Pyongyang to lock horns with
each other. Improving Japan-North Korea relations is a prior
condition for Washington to use the card resolving the nuclear
issue.

US President George W. Bush approved energy aid worth 25 million
dollars to the North, while the negotiators from the six countries
were engaged in negotiations, making clear his stance of backing the
agreement. However, Japan is concerned about the US stance of
hurrying to produce achievements.

In the consultations this time around, the US did not bring up the
allegation of nuclear connections between Syria and North Korea. The
reason is because if the charge of such nuclear proliferation is
true, the US strategy would be substantially undermined. In former
Prime Minister Junichiro Koizumi's meetings with leaders from
various countries, Israeli leaders had been most interested in North
Korea's nuclear ambitions and in the abduction issue. This was
because both Japan and Israel both sense the threat from North Korea
as a nuclear proliferating state.

A source familiar with the six-party talks predicts that chances are
that the US will remove North Korea from its list of the
terrorist-sponsoring states later this year. This decision could
create strains in Japan-US relations.

(9) UNRWA for Palestine Refugees hopes for Japan's assistance to
Gaza Strip

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

Commissioner-General Karen AbuZayd of the United Nations Relief and
Works Agency (UNRWA) for Palestine Refugees, who is to visit Japan
starting on Oct. 10, gave a press conference to Japanese reporters
in Jerusalem on Sept. 28. During it, she made an appeal regarding
the plight of the Gaza Strip, the Palestinian autonomous area that

TOKYO 00004588 011 OF 013


is effectively controlled by the radical movement Hamas, noting "The
decline of the economic situation there is very serious." She
expressed her expectations Japan to provide assistance.

AbuZayd said that it has become impossible to secure cement and
construction materials for a project to developing the southern part
of the Gaza Strip, based on aid totaling 93 million dollars
(approximately 10.6 billion yen) provided by Japan and certain West
European countries, because Israel had stopped the distribution of
goods with the exception of humanitarian assistance after the area
was brought under the control of the Hamas this June.

(10) 110,000 protestors rally in Okinawa against deletion of
descriptions concerning "forced mass suicide," urge the central
government to "rescind screening results"

ASAHI (Top play) (Full)
September 30, 2007

A nonpartisan Okinawa rally was staged in Kaihin Park in Okinawa's
Ginowan City on Sept. 29 protesting the deletion of phrases from
school textbooks that referred to accounts of the Imperial Japanese
Army forcing Okinawa residents "to commit mass suicide" during the
Battle of Okinawa. The phrases were deleted as a result of
government textbook screening. The rally called on the central
government to rescind the screening results. According to the
organizers of the rally, 110,000 people took part, outnumbering the
rally of 85,000 people in October 1995, held in the wake of the
raping of a school girl by US military personnel and calling for
consolidation and reduction of US military facilities in Okinawa.
Participants yesterday adopted a resolution calling on the central
government to withdraw the screening results and restore the
previous phrases.

The executive committee composed of 22 groups, including each
political group in the prefectural assembly and the Prefectural
Federation of Parent-Teacher Associations, organized the rally this
time and asked 1,600 or so organizations to participate in it. The
space of some 25,000 square meters for the rally was overflowing
with participants. Placards or banners reading "We will not allow
history to be distorted" were seen here and there.

Standing on the platform at the site of the rally were the heads and
assembly chairmen of 36 municipalities, excluding those of the
Sakishima Islands, which had held a rally independently.

Toshinobu Nakazato, chair of the Okinawa Prefectural Assembly and
also chair of the executive committee, who had fought in the battle
of Okinawa, delivered a speech, in which he said: "We simply can't
allow historical facts to be distorted. This rally gives Okinawa,
which was devastated by the tragic ground battle that involved our
residents, an occasion to send a message to the rest of Japan."
Governor Hirokazu Nakaima, as well, noted: "The Education Ministry
has failed to sincerely respond to the prefectural people's repeated
requests and has rejected them. We strongly protest the ministry's
stance and express our regrets."

Yoshikatsu Yoshikawa (68), who had been on the scene of mass suicide
on Tokashiki Islands in the Battle of Okinawa, pointed out that the
mass suicides occurred on islands where Japanese soldiers were
stationed. "The overwhelming evidence proves that such tragedies
would not have occurred if Imperial Japanese soldiers had not been

TOKYO 00004588 012 OF 013


present there."

Two Yomitan Senior High School students, Kodai Tsukayama (18) and
Natsumi Teruya (18) expressed their views as users of textbooks.

The resolution adopted by the rally said, "It is an undeniable fact
that 'mass suicides' could not have occurred if Japanese soldiers
were not deployed to those locations." Noting, "Our important
responsibility is to pass the true facts on to future generations,"
the resolution went on to urge the Education Ministry to rescind the
screening results.

After the convention, Gov. Nakaima told reporters: "I had a feeling
from the rally this time that a certain kind of magma or energy is
about to explode."

On Sept. 29, Miyako Island and Ishigaki Island both held their
rallies separately, bringing together a total of 6,000 participants
(according to the number released by organizers).

The Education Ministry's stance is not to change anything, noting,
"The screening was conducted based on the results of studies and
discussions by experts." However, several textbook writers are
beginning to seek corrections.

(11) Bill amending AML to be submitted next March: FTC chairman says
during press conference on his reelection to post: Shows eagerness
to crack down on international cartels

MAINICHI (Page 2) (Full)
September 29, 2007

Fair Trade Commission (FTC) Chairman Kazuhiko Takeshima during a
press conference on his reelection to the post (as of September 27)
indicated his policy of submitting a bill amending the Antimonopoly
Law (AML) to the Diet next March. Since the existing AML has two
penalties -- administrative surcharges and criminal punishments --
the business world is seeking the unification of the two. However,
Takeshima once again indicated his policy of keeping the two in
place, noting, "Applying both administrative surcharges and criminal
punishments in a proper manner is important in order to promote the
compliance of the law. He indicated eagerness to crack down on
international cartels linked to other countries, based on the
reality that the number of multinational companies is on the
increase as a result of the globalization of the economy.

Regarding an amendment to the AML, the AML Basic Problems Advisory
Council reporting to the chief cabinet secretary released a report
calling for strengthening administrative surcharges imposed on
companies that had broken the anti-monopoly law. The FTC is now
drafting an amendment to the law, based on this report.

Regarding international cartels, Takeshima pointed out that under
the Japanese law, international cartels are subject to punishment,
going back three years, while in the US such a period is five years
and 10 years in the case of the European Union (EU). Japan's short
coverage period is a pending issue in cracking down on cartels in
concert with other countries. He stressed the necessity to expand
the period, saying, "The period should be extended at least on a par
with that of the US."

(12) TOP HEADLINES

TOKYO 00004588 013 OF 013

Asahi, Mainichi, Yomiuri, Nikkei, Tokyo Shimbun:
Six-party negotiators reach tentative deal on N. Korea nukes

Sankei:
Prime Minister to visit China in January, US after extra Diet
session

Akahata:
JCP's Koike calls for retraction of medical co-payments for the
elderly

(13) EDITORIALS

Asahi:
(1) Establish lay judge system to make use of civilians' common
sense

Mainichi:
(1) Enactment of financial commodity exchange law: Users need to
change consciousness
(2) Newly appointed executives for guidance policy financing must
not be affected by bureaucrats

Yomiuri:
(1) Will road-map work effectively to denuclearize North Korea?
(2) Resumption of frozen project to construct Daido River dam must
not be used to revive public works projects

Nikkei:
(1) Realize muscular privatized postal services through sound
competition
(2) "Dialogue and pressure" approach still needed for North Korea

Sankei:
(1) Vague agreement in six-party talks will result in creating a
problem for future
(2) Emergency earthquake spots must be used cleverly and calmly

Tokyo Shimbun:
(1) Day of law: Remark by justice minister about "death sentence
without signature" likely have negative effects
(2) NHK reform: Speak about future of public broadcasting

Akahata:
(1) Rally in Okinawa to protest textbook screening: Withdraw
authorization of "mass suicide" for school textbooks

DONOVAN

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