Cablegate: Daily Summary of Japanese Press 10/24/07

DE RUEHKO #4967/01 2970801
P 240801Z OCT 07





E.O. 12958: N/A



(1) US Assistant Secretary of State Hill expresses hope for
delisting North Korea as state sponsor of terrorism (Nikkei)

(2) Civilian control rocked (Asahi)

(3) Editorial: Impediments to Diet deliberations on new refueling
legislation must be eliminated swiftly (Nikkei)

(4) Why rare-metal diplomacy now, Mr. Amari?: Sense of urgency
toward resource resource-rich countries enclosing their resources

(5) Attaining target set in Kyoto Protocol still difficult despite
industries' additional measures (Nikkei)

(6) Former Defense Minister Koike in her book criticizes Moriya


(1) US Assistant Secretary of State Hill expresses hope for
delisting North Korea as state sponsor of terrorism

13:06, October 24, 2007

Hiroshi Maruya, Washington

The Japanese and US chief delegates to the six-party talks on North
Korea's denuclearization held talks at the State Department on Oct.
23 and agreed to begin disabling the nuclear facilities in Yongbyon
on Nov. 1. They also confirmed close cooperation between Japan and
the United States in delisting North Korea as a state sponsor of
terrorism by the United States. After the meeting, Assistant
Secretary Hill told reporters: "The United States has always aimed

at removing countries from the list of nations sponsoring

Although Hill's statement is a general argument for eradicating
terrorism, it is taken as expressing US anticipation of conditions
allowing Washington to delist North Korea as a state sponsor of

Foreign Ministry Asian and Oceanian Affairs Bureau Director-General
Kenichiro Sasae indicated to the press that there must be progress
on the abduction issue, saying: "We have agreed on the need for
progress in outstanding issues between Japan and North Korea, along
with those between the United States and North Korea." Hill said,
"We would like to push ahead with matters in a way to strengthen all
relations, including those between the United States and North Korea
and between Japan and North Korea."

(2) Civilian control rocked

ASAHI (Page 2) (Slightly abridged)
October 23, 2007

The director of a division in charge was aware of an error in the
amount of fuel supplied. This director, however, did not report the
error to the top brass. Consequently, Prime Minister Fukuda made a

TOKYO 00004967 002 OF 009

mistake in his official announcement of it when he was chief cabinet
secretary (in 2003). The government mistook the quantity of fuel

provided by the Maritime Self-Defense Force to a US Navy oiler in
the Indian Ocean. This issue has now developed into a serious
problem concerning civilian control, in addition to the suspected
diversion of MSDF-supplied fuel for US military operations in Iraq.
Meanwhile, a special legislative measure for refueling assistance is
now before the Diet. As a premise to deliberate on the legislation,
the Democratic Party of Japan (Minshuto) and other opposition
parties are taking a serious view of this problem as well as former
Administrative Vice Defense Minister Takemasa Moriya's collusive
relationship with a defense contractor. Dark clouds are now looming
over the possibility of the legislation's enactment during the
current Diet session.

Report unnatural

"It's really regrettable. If such things happen daily, I feel quite
wretched about it." With this, Prime Minister Fukuda was apparently
upset yesterday evening at the cover-up of such an error in the
amount of fuel supplied to a US warship in the Indian Ocean.

On May 9, 2003, Fukuda met the press as chief cabinet secretary. In
his press briefing, Fukuda, based on the wrong data, announced that
the MSDF provided 200,000 gallons to a US Navy oiler. However, the
Maritime Staff Office had grasped the error before the press
briefing. The prime minister therefore was criticizing those in
charge at the time. However, he did not forget to deny his
responsibility, too.

The Defense Ministry, in its report, denied any organized cover up,
laying the onus on "the director of a division in charge and
others." The Defense Ministry report explained that the error was
not made known to the MSDF chief of staff and the director general
of the Defense Agency at that time, now the Defense Ministry. The
report also stressed that even the agency's internal bureau
officials did not know about it.

However, one of those aware of the circumstances in those days notes
that the Defense Agency's internal bureaus might have also grasped
the error in their checks on accounting related to defense

The Defense Ministry says in its report that only one of the MSO's
divisions in charge grasped the error. In fact, however, there are
also many unnatural points about such an explanation.

What triggered the issue of fuel diversion was a statement that came
on May 6, 2003, from US Navy Carrier Battle Group 5's Rear Adm.
Matthew Moffit, who commands the USS Kitty Hawk, a US Navy aircraft
carrier homeported at Yokosuka. On the same day, the Kitty Hawk
returned to Yokosuka from its Iraq war mission. The rear admiral
then revealed that the Kitty Hawk was indirectly refueled with
800,000 gallons from the MSDF through a US Navy tanker.

Two days after that, however, Tohru Ishikawa, the then chairman of
the Self-Defense Forces' Joint Staff Council, announced in his May 9
press briefing that the amount of fuel supplied to the US oiler was
"approximately 200,000 tons." At that point of time, "200,000" and
"800,000" were announced one after another.

The Japanese and US sides differed on the figure in their

TOKYO 00004967 003 OF 009

announcements. The MSO division in charge and the top brass should
have checked why there were two different figures. Moreover,
according to the Defense Ministry report, accurate data was cabled
and emailed from an MSDF squadron in the Indian Ocean to the MSDF
chief of staff on the day after an MSDF supply ship refueled the US

Nevertheless, the government, based on what the JSC chairman said in
his press briefing, created a guideline of answers to be given if
asked in the Diet. Based on this guidance, Chief Cabinet Secretary
Fukuda and Defense Agency Director General Ishiba, both at that time
explained that the MSDF provided "approximately 200,000 gallons."

"Apparently, the Defense Ministry is passing the buck to the rank
and file," said Kenji Yamaoka, chairman of the DPJ's Diet affairs
committee. "The government is clearly trying to bring this issue to
a close by making someone else carry the can," Yamaoka added. As
noted by Yamaoka, the government will inevitably be called into
question for its poor way of doing things.

The Defense Ministry came up with its report. At that time, the
government's critical awareness was also thin.

The Defense Ministry briefed the ruling coalition of the Liberal
Democratic Party and New Komeito yesterday morning on its report. At
that time, the Defense Ministry report incorporated no plans to set
up a review committee to ensure civilian control. It only said the
Defense Ministry would conduct a "further fact-finding survey."

Therefore, the New Komeito did not approve the report, claiming that
the Defense Ministry should be seriously concerned about the problem
from the perspective of civilian control, study measures including
punishment, and set up a review committee to ensure civilian
control. The Defense Ministry, urged by the LDP's coalition partner
to incorporate these three points, amended the report in a flurry.

Even more difficulties in store for legislation

The government and the ruling coalition held a consultative meeting
yesterday afternoon in the Diet. Executives from the ruling parties
criticized the MSO for its cover-up of the error in the amount of
fuel supply.

In the meeting, Tadamori Oshima, chairman of the LDP's Diet affairs
committee, said: "I told the Defense Ministry to create a steadfast
system to ensure civilian control. At the same time, I also told the
Defense Ministry to spell out the punishments for those involved in
this case."

Also, Yoshio Urushibara, chairman of New Komeito's Diet affairs
committee, said: "They made the minister of state and the chief
cabinet secretary give the wrong answer. That's outrageous."

Both Oshima and Urushibara voiced a sense of crisis, deeming it even
more difficult to get the new refueling assistance legislation
through the Diet.

Meanwhile, it was brought to light that former Administrative Vice
Defense Minister Moriya used to play golf with a defense contractor.
This fact alone is a serious blow to the government. However, the
ruling parties insisted that Moriya's golfing scandal should not be
linked to the legislation. The ruling and opposition parties agreed

TOKYO 00004967 004 OF 009

last weekend to enter into Diet deliberations in a plenary sitting
today of the House of Representatives. The ruling coalition was
optimistic about starting full-fledged deliberations tomorrow in
Diet committee meetings.

However, the Defense Ministry would have to make up for its clumsy
report on the MSO's cover-up of the error over the MSDF's fuel
supply. This issue is even likely to spark over the Defense Ministry
itself. It dates back to a time when Moriya was in the post of
administrative vice defense minister, so it has now become extremely
difficult to separate this issue from Moriya's golfing scandal.

DPJ President Ozawa yesterday met his party's policy board members
and others at party headquarters. "We will take our time to make our
counterproposal," Ozawa said. "First of all," he added, "we will ask
Prime Minister Fukuda about his false reply that he made in the Diet
when he was chief cabinet secretary." In line with this course of
action, the DPJ will not be in a hurry to present its own
legislative measure. Instead, the DPJ will drive the ruling
coalition to give up the government's new refueling assistance

The government and ruling parties now have got into a scrape. Even
so, the ruling coalition cannot easily give up. On Oct. 19, US
Ambassador to Japan Schieffer asked the prime minister again to
continue the MSDF's refueling activities. In early November, shortly
before the Diet winds up its current session, US Secretary of
Defense Gates will come to Japan. The prime minister plans to visit
the United States in mid-November for his first foreign trip. "It's
important to show our continued efforts to pass the bill," a
high-ranking government official said.

(3) Editorial: Impediments to Diet deliberations on new refueling
legislation must be eliminated swiftly

NIKKEI (Page 2) (Full)
October 24, 2007

Deliberations on a bill to continue the Maritime Self-Defense
Force's refueling operation in the Indian Ocean began at a House of
Representatives plenary session yesterday.

The Defense Ministry and the Self-Defense Forces have been hit by a
series of improprieties, such as a scandal involving former
Vice-Defense Minister Takemasa Moriya, a cover-up of an error made
in accounting for fuel provided to a US oiler by the MSDF, and the
disposal of a ship's logbook. Some think the refueling legislation
is unlikely to clear the Diet in the current session, since these
issues will likely bog down discussions. The obstacles must be
eliminated swiftly.

Although the three irregularities are not directly connected to the
new legislation, they contain serious problems that concern the
credibility of defense administration. One cannot say that the
opposition camp's intention to link them to Diet discussions on the
new legislation is unreasonable.

Of the three cases, investigative reports have been released on the
two involving the MSDF. The Defense Ministry must speedily determine
and punish those responsible.

The cover-up of the incorrect amount of fuel provided by the MSDF is

TOKYO 00004967 005 OF 009

especially serious.

Under civilian control, the concealment of inconvenient facts by
military organizations could lead lawmakers to determine policies
based on incorrect information. There is no shortage of
international accounts of national security being jeopardized by
similar incidents. In order to prevent a recurrence, those
responsible must be severely punished.

The case contains many problems. If the officer responsible for the
matter had not been aware of the graveness of the concealment, it
was too sloppy, and if he had knowingly covered it up, that was
vicious. Although the then Maritime Staff Office section chief has
already retired, he must testify before the Diet to clarify all the
facts as a responsible former SDF officer.

Moriya's case is more complex. The truth is being uncovered. It
might escalate into a criminal case.

If Moriya had a grain of pride as a former vice defense minister, he
would have voluntarily offered an explanation at the Diet. There is
every reason for the Diet to summon him as a sworn witness.

Nevertheless, basing Diet discussions on the new refueling
legislation on his Diet testimony is going too far. The Moriya case
is a government impropriety that must be elucidated by combined
efforts by all lawmakers across party lines.

It is the Diet's responsibility to eliminate all the hindrances to
Diet discussions on the new refueling legislation to reach an
agreement. The international community is watching it closely. Diet
deliberations on the new legislation must go on regardless of the
Moriya and the Maritime Staff Office scandals.

(4) Why rare-metal diplomacy now, Mr. Amari?: Sense of urgency
toward resource resource-rich countries enclosing their resources

ASAHI (Page 9) (Full)
October 24, 2007

Following a sharp rise in the prices of rare metals, materials that
are necessary to manufacture high-tech products, the government
intends to help the private sector secure interests through active
use of diplomatic means. Asahi Shimbun asked Economy, Trade and
Industry Minister Amari why his ministry will focus on rare-metal

? Why did rare metals, which are being used only by some industry
sectors, crop up as a key diplomatic agenda?

"Japan is a goods-manufacturing country. It must manufacture goods
using state-of-the-art technology. Manufacturing such products
requires rare metals. The number of rare metal-producing countries
is more limited than of oil-producing countries. It would be very
effective, if the prime minister or a cabinet minister visit rare
metal-producing countries in order to create
government-to-government relations."

? Isn't it possible to leave the job to the private sector?

"The rare metal industry is one set with the government in such

TOKYO 00004967 006 OF 009

resource-rich countries. Even if persons from the private sector go
to such a country, they would find it difficult to gain local trust.
Furthermore, the rise of Asian countries has made the
supply-and-demand situation of resources tight. Resource-rich
countries are trying to control or enclose their resources. The age
of leaving the matter to the private sector and procuring products
on the market is over. Japanese companies do not have the strength
or political bargaining power like international oil majors. If
government-affiliated organs get involved by such means as making
investment or extending loans, then the government can have a say."

? It appears that the government is in a panic due to the sharp rise
in prices.

"We have a natural resources reserve system. However, demand is
exceeding stockpiles. Resource-rich countries now do not sell their
products at low prices so easily. The conventional approach is
limited in what it can do."

? On which region are you focusing?

"Japan must deepen its relations with China a rare-metal resources
power. At the same time, it must nurture many resource-rich
countries that compete with China. We must keep a close watch on
Africa, a resource-rich continent. We will make it self-supportive,
by combining the search for undiscovered resources and the
government's official development assistance (ODA). Japan needs
resources, and African nations want to further develop their own
countries, financed by their natural resources. We can establish a
win-win relationship this way."

? China is also advancing into Africa in pursuit of resources using
its economic clout.

"We will show that our approach is government-backed, by having the
prime minister or cabinet ministers making the appeal that we have
government-affiliated organs, such as the Japan Oil, Gas and Metals
National Corporation (JOGMEC). Japan has know-how to help them give
value-added to the resources and to develop the industry. I will say
to them, 'The Japanese method is correct from a long-term
perspective for the independence of their countries.'"

? What is your strategy against export restrictions set by China,
which is also a rare-metal supplier?"

"I told China that resource suppliers can stand on their own only
when the world economy is on the right track. It is important to
create an economically dependent relationship with China in which
China supplies rate metals and Japan manufactures high-performance
parts, with China then assembling finished products.

(Interviewer Yusuke Murayama)

(5) Attaining target set in Kyoto Protocol still difficult despite
industries' additional measures

NIKKEI (Page 3) (Excerpts)
October 24, 2007

In a meeting yesterday of the joint committee of officials from the
Environment Ministry and the Economy, Trade and Industry Ministry
(METI), four industries presented their respective action plans to

TOKYO 00004967 007 OF 009

voluntarily reduce greenhouse gas emissions. With these, all
industries' plans have been present. Under the plans, their carbon
dioxide (CO2) emissions would be reduced by another 20 million tons,
getting one step closer to the nation's target set in the Kyoto
Protocol. But it is uncertain whether they will be able to implement
their plans. Even if the plans are actually carried out, attaining
the target will be difficult, because more greenhouse gases have
been emitted from both the business and household sections. It is
essential for Japan to hammer out additional effective measures.

18 industries' additional CO2 emission-cut plans now all present

In the meeting, the Japan Trucking Association, as well as the
housing, sugar-refining, and instant-noodle industries presented
their respective plans to make deeper cuts in gas emissions.
Chemical, paper, and other 15 industries have now pledged to
additionally cut gas emissions by about 15.5 million tons. With this
figure added to the targeted cut of 4.39 million tons announced by
the trucking industry, it is estimated that gas emissions from all
industries will be reduced by nearly 20 million tons.

The Kyoto Protocol requires Japan to cut its greenhouse gas
emissions from 1990 levels by an average of 6 PERCENT between 2008
and 2012. According to the government's estimate, unless Japan takes
additional measures, the amount of emitted gases is calculated to be
20 to 34 million tons more than the targeted figure as of FY2010.

In industrial circles, an executive of a cement company said:
"Economic conditions will affect whether we can translate our plans
into action." A senior official of the Environment Ministry said:
"Industries should be able to cut more emissions." But a member of
the industrial world grumbled: "Pressure for further cuts has been
applied not on households and offices but only on industries."

The most serious problem is the fact that the amount of gases
emitted from the business and household sections is increasing. The
government has taken such measures as waging a campaign for each
person to reduce CO2 emissions by 1 kg per day and spreading
eco-cars. But it is not realistic to impose restrictions on
households. Such measures are not effective but are mainly aimed at
raising awareness of the need for emission cuts. The joint committee
will work out additional measures in the business, households, and
trucking sections and then compile a final report by December.

Electric power and steel industries depend on emission trading

Industrial circles are stepping up efforts to introduce
energy-saving equipment and to use fuel that emits less carbon
dioxide (CO2) instead of oil. Behind such efforts are expectations
for cost cuts by introducing energy-efficient equipment and the
recent high oil prices. But their investment burdens are
increasingly swelling. Electric power and steel industries, from
which huge greenhouse gases are discharged, find it difficult to
achieve their targets only with their measures, so they have to
depend on emission trading.

Paper companies are expanding the use of recycled fuel instead of
heavy oil. The paper industry invested approximately 187 billion yen
in energy-saving equipment between FY2007 and FY2010. Of this money,
nearly 70 PERCENT reportedly were spent on changes in fuel. The
Nippon Paper Group plans to reduce CO2 emissions by about one
million tons annually, equivalent to 10 PERCENT of its total gas

TOKYO 00004967 008 OF 009

discharged from its plants in the nation, at its 10 plants by FY2008
by switching fuel from heavy oil to recycled waste wood or paper. It
will cost 66 billion yen for new equipment, but the group intends to
trim fuel costs by 17 billion yen annually by reducing the use of
expensive heavy oil.

Investing 4 to 5 billion yen in its six key plants, from which 80
PERCENT of gases emitted from its all domestic plants is
discharged, Fuji Film Holdings intends to switch fuel from heavy oil
to natural gas.

The chemical industry invested more than 43 billion yen in saving
energy in FY2006. Since the industry doubled its reduction target
this time, it will need to prepare 134 million yen in additional
costs in FY2007 and beyond. The industry already investigated in
effective energy-saving parts. A member of the Japan Chemical
Industry Association said: "Our burden might increase with
investment in less effective parts."

Meanwhile, 11 industries, including electricity and steel, have
worked out their voluntary action plans, but the plans were not
implemented in FY2006, so they did not come up further cuts.

Among them, the electric power and steel industries, from which huge
greenhouse gases are emitted, think it indispensable to depend on
emission trading in order to achieve their targets. The Federation
of Electric Power Companies plans to purchase CO2 emission quotas
worth approximately 120 million tons by FY1012. The Japan Iron and
Steel Federation intends to buy quotas for 44 million tons of CO2.

Under the trading system, companies buy 1 ton of CO2 for about 2,000
yen. In the case of reducing gas emissions through energy-saving
measures, about 50,000 yen reportedly is needed to reduce the amount
by one ton. But the chemical and paper industries aim to meet their
goals by their own measures, based on the judgment that such efforts
will lead to slashing costs.

(6) Former Defense Minister Koike in her book criticizes Moriya

ASAHI (Page 4) (Full)
October 20, 2007

Former Defense Minister Yuriko Koike, a member of the ruling Liberal
Democratic Party (LDP), has written a book titled Woman's True Worth
- 55 Days in Ichigaya, in which she gives the lowdown on her feud
with former Administrative Vice Defense Minister Takemasa Moriya.
The book is published by Bungeishunju. Koike assumed the post in
July as the first female Japanese defense chief, succeeding her
predecessor Fumio Kyuma, who had stepped down as defense minister
due to an inappropriate comment. She held the post only until late
August. Koike writes in the book that Moriya freely walked over to
the Prime Minister's Official Residence to make an appeal to block
her planned personnel change. She severely criticized his behavior,
describing it as a "February 26 Incident" involving only one person.
(TN: The historical incident took place on that day in 1936 when
young military officers stormed and occupied the prime minister's
official residence and assassinated several senior officials. The
incident marked the beginning of a military dictatorship in prewar

Koike also reveals in the book that Moriya refused her suggestion
that he should become an advisor to the ministry after stepping down

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as vice minister, citing that it would be difficult to make a living
with an advisor's pay. She comments that he might have been under
the impression he could easily control a female minister.

Koike also describes exchanges with former Prime Minister Shinzo Abe
and former Chief Cabinet Secretary Yasuhisa Shiozaki. She writes
that when she urged Abe to accept her personnel change plan, while
presenting her resignation, Abe with a sad face sought to persuade
her to not to resign, saying sadly , "Please don't tell me you are
quitting. I implore you." Regarding Abe's resignation, Koike writes:
"I feel sorry for Prime Minister Abe because I caused him even more
trouble while he was suffering from the series of scandals and
criticisms after the Upper House defeat."


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