Cablegate: Japanese Morning Press Highlights 10/30/07

DE RUEHKO #5039/01 3030117
P 300117Z OCT 07





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1) Prime Minister's daily schedule (Nikkei)
War on terror:
2) MSDF supply ship provides final refueling service in the Indian
Ocean before withdrawing home (Tokyo Shimbun)
3) US, British forces concerned that Japan's withdrawal from Indian
Ocean operation will lower tactical effectiveness of OEF/MIO and
hurt Pakistani effort (Yomiuri)
4) Former Vice Defense Minister Moriya in Diet testimony denies
ministry cover up of fuel data mistake in 2003, says he first
learned of error after retirement (Nikkei)
5) Ruling parties hope for breakthrough in impasse with opposition
on continuing MSDF refueling operation by top-level party head
6) In meeting with DPJ head Ozawa today, Fukuda will seek
cooperation on antiterrorism bill (Mainichi)
7) Speculation spreads about Ozawa's next move (Asahi)

Moriya testimony:
8) Former Vice Defense Minister Moriya admits regularly playing golf
at expense of defense contractor, says former JDA chief was wined
and dined, too (Yomiuri)
9) Moriya in Diet testimony repeatedly says he could not remember
when questioned (Tokyo Shimbun)
10) Democratic Party of Japan (DPJ) to continue attack with more
defense ministry allegations (Mainichi)
11) DPJ to ask for additional summoning of witnesses (Mainichi)
12) Opposition camp critical of Moriya's testimony (Asahi)
13) Prime Minister Fukuda critical of Moriya's testimony (Tokyo

North Korea problem:
14) Informal meeting between US, North Korea this week (Nikkei)
15) Foreign Ministry planning to send an experts group to visit
North Korea (Nikkei)


1) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 29

NIKKEI (Page 2) (Full)
October 30, 2007

Met at Kantei with LDP Diet Affairs Committee Chairman Oshima,
followed by Deputy Chief Cabinet Secretary Saka.

Met with Japan Finance Corp. for Small and Medium Enterprises
President Yasui, followed by Finance Minister Nukaga, Vice Finance
Minister Tsuda and others.

Held an informal meeting with Cabinet Press Club members

Met with LDP Secretary General Ibuki.


TOKYO 00005039 002 OF 010

Met with incoming MSDF Yokosuka District Commandant Kenjiro Handa
and others, followed by Financial Affairs Agency Director General

Attended a meeting of the Central Council to Promote Measures for
the Disable People. Afterward, met with Deputy Chief Cabinet
Secretary Futahashi, followed by MOFA Foreign Policy Bureau Director

General Kawa.

Met with Science and Technology Policy Minister Kishida and others,
followed by Declining Birthrate Minister Kamikawa.

Attended an LDP executive meeting held in the Diet building.

Met with Foreign Minister Koumura at the Kantei.

Attended a Council for Science and Technology Policy meeting.

Met with Chief Cabinet Secretary Machimura.

Returned to his residence in Nozawa.

2) Last fuel supplied in Indian Ocean

TOKYO SHIMBUN (Page 1) (Full)
October 30, 2007

The Maritime Self-Defense Force will shortly wind up its refueling
activities in the Indian Ocean with the Antiterrorism Special
Measures Law's upcoming expiry. An MSDF squadron, commanded by Capt.
Yoshitaka Ojima, refueled a Pakistani naval destroyer there
yesterday afternoon, local time, in the Arabian Sea, north of the
Indian Ocean. It was the MSDF's last underway replenishment, based
on the law.

The MSDF started its underway replenishment there in December 2001.
Since then, the MSDF has so far conducted 794 fuel supplies at sea.
The Antiterrorism Special Measures Law is set to lose its effect at
zero hours on Nov. 2. Defense Minister Shigeru Ishiba will order the
MSDF before that to withdraw the dispatched squadron.

In July this year, two MSDF vessels left Japan for the Indian Ocean.
One is the Tokiwa, a supply ship based at Yokosuka in Kanagawa
Prefecture. The other is the Kirisame, a destroyer based at Sasebo
in Nagasaki Prefecture, escorting the Tokiwa. The two vessels will
return home in about three weeks after they are ordered home.

"I'm relieved," Capt. Ojima said. "We will only carry out our task
in a steady way," he added.

The Tokiwa, with its patrol helicopter guarding around, joined the
Pakistani destroyer yesterday afternoon. The MSDF supply ship,
keeping an interval of about 40 meters, connected a corrugated tube
to the Pakistani destroyer and sent light oil for about one hour and
40 minutes while running along.

TOKYO 00005039 003 OF 010

The Pakistani destroyer was putting up an English message on its
bridge, reading: "FUEL FOR FREEDOM. JDS TOKIWA, THANK YOU." After
receiving the fuel, the destroyer lined up about 70 crewmen on its
deck, nearly twice as many as those usually on the deck. They
shouted banzai and played Japan's national anthem.

According to the Joint Staff Office at the Defense Ministry, the
MSDF has so far sent a total of 59 vessels and about 11,000 members
to refuel naval vessels from a total of 11 countries, including the
United States, Britain, and Pakistan.

3) US, UK concerned about operational efficiency

YOMIURI (Page 2) (Full)
October 30, 2007

Keiichi Honma, reporting from the Maritime Self-Defense Force's
supply ship Tokiwa

The Maritime Self-Defense Force will now discontinue its
replenishment operation in the Indian Ocean. The United States,
Britain, and other countries continuing their maritime interdiction
operations (MIO) in the war on terror are increasingly becoming
concerned about a possible lowering of efficiency in their
operations. Their naval vessels have steadily received fuel from the
MSDF. Now, however, the MSDF's pullout could not only affect their
operations but could also have negative repercussions on the
Pakistani military's operations.

"Thanks to your support, we were able to carry out wonderful tasks
at sea."

On the deck of a Pakistani destroyer was a crewman signaling with
flags during the Tokiwa's fuel and water supply that lasted for
about one hour.

As the MSDF ended its replenishment, about 40 Pakistani sailors came
out all at once on the deck to line up. The Pakistani destroyer
played Japan's national anthem, Kimigayo, loud enough that it could
be heard onboard the Tokiwa. It was an unexpected event that moved
the MSDF members aboard the Tokiwa. Some of them were at a loss for

The Pakistani Navy's thank-you message praised Japan for its support
as the largest supplier of light oil and fresh water. The Pakistani
destroyer is a hand-me-down ship from the Royal Navy of Britain. It
was commissioned in the 1970s. The destroyer is now too old. Among
the MIO countries, Pakistan is the only country that has received
water from the MSDF.

Pakistan is the only Islamic country participating in MIO. Its
future course of action concerns the United States, Britain, and
other MIO members. According to informed sources, the United States,
which wanted Islamic countries to join in, strongly worked on
Pakistan. The United States persuaded Pakistan to participate in
MIO, telling that country that its navy would receive free fuel from

"Japan made its task highly successful," said Yoshitaka Ojima, 47,
commander of the MSDF's Escort Division 6. Ojima has commanded the
MSDF squadron in the Indian Ocean. "We have worked for regional

TOKYO 00005039 004 OF 010

stability in an area that is vital to the security of energy
resources," Ojima recalled.

According to British naval sources, four or five supply ships from
major countries-including Japan, the United States, Britain, and
France-were deployed in the waters ranging from the Arabian Sea to
the east coast of Africa. However, only Japan and the United States
have continuously carried out their fuel supply, the sources said.
The MSDF's pullout from the Indian Ocean will reportedly affect 20
PERCENT of MIO there.

On Oct. 24, US Ambassador to Japan Schieffer delivered a speech in
Tokyo. In it, he revealed that the amount of fuel provided by Japan
was equivalent to 7 PERCENT -20 PERCENT of the fuel used for
Operation Enduring Freedom (OEF). The MSDF's withdrawal will greatly
affect OEF on the whole.

The Japanese government is concerned about aftereffects, thinking
that Japan's international reputation may drop after discontinuing
the replenishment operation. "Japan's withdrawal may cause Japan to
lose the international community's confidence," a senior official of
the Foreign Ministry said.

In particular, Japan's withdrawal will seriously affect its
relations with the United States. Prime Minister Fukuda will visit
the United States in mid-November to tell the US government that he
will try to pass a new antiterror legislative measure. Government
officials are increasingly concerned about what is in store for
Japan-US relations. "There's no doubt that the United States will be
disappointed at Japan as a self-centered country," a senior official
of the Defense Ministry said.

4) Moriya says he came to know about underreported fuel amount after
leaving Defense Ministry; Held negotiations with US side, but denies
involvement in cover-up

NIKKEI (Page 3) (Full)
October 30, 2007

Regarding the Defense Ministry's correction of the amount of fuel
the Maritime Self-Defense Force provided to a US oiler from 200,000
gallons to 800,000 gallons, which has resulted in fuel diversion
allegations, former Vice Defense Minister Takemasa Moriya yesterday
denied his involvement in a cover-up, saying, "I came to know it was
800,000 gallons after leaving (the Defense Ministry)."

Prime Minister Yasuo Fukuda, who was serving as chief cabinet
secretary at the time, denied allegations that Japanese oil had been

diverted for use in the Iraq war based on information that the MSDF
provided 200,000 gallons of fuel in May 2003. But it became clear
later that the amount was four times that volume, thereby resulting
in oil diversion suspicions. It has also come to light that a
Maritime Staff Office section chief and others had covered up the
error in the amount.

Moriya said: "Receiving a report from the Maritime Staff Office that
200,000 gallons had been provided, I responded to it accordingly."
He stressed that he had not been aware of the correct amount being
800,000 gallons back then.

However, Moriya was deeply involved in explaining the fuel amount,
as seen from his request to a US Embassy minister that the US

TOKYO 00005039 005 OF 010

government say things properly so as not to invite any suspicions
about the use of (Japanese) oil under the Antiterrorism Special
Measures Law.

After Moriya's testimony, Democratic Party of Japan (DPJ or
Minshuto) Secretary General Yukio Hatoyama said to reporters: "His
replies sounded as if he forgot things back then. It's outrageous."
Hatoyama also emphasized that his party would continue pursuing
Moriya's accountability.

5) Ruling bloc to make utmost efforts to find common ground in talks
of LDP and DPJ leaders on antiterrorism bill

ASAHI (Page 4) (Excerpts)
October 30, 2007

The Liberal Democratic Party (LDP) and the Democratic Party of Japan
(DPJ) agreed yesterday to hold party head talks today. The ruling
camp has started coordination to have the bill designed to resume
the Maritime Self-Defense Force's (MSDF) refueling mission clear the
House of Representatives by extending the current Diet session,
while the DPJ remains opposed to the bill. Will the two leaders be
able to find common ground? With only 10 days left before the Diet
is adjourned, the showdown between the ruling and opposition camps
has entered a new phase in the Diet, where the opposition camp has a
majority in the Upper House.

The LDP leadership is determined to have the bill passed in the
Lower House. Based on this premise, the government and the ruling
camp have coordinated views to extend the Diet session. But the DPJ
has opposed the coalition's extension proposal with the aim of
discussing the antiterrorism bill. The main opposition party has
also fiercely reacted to the issue of personnel appointments that
need Diet approval reported before that. As it stands, the gulf
between the two is too wide for one side to make a concession in the
party head talks. If the prime minister and Ozawa express their
respective views, the talks will reach a stalemate.

6) Prime Minister Fukuda in meeting today to ask DPJ head Ozawa to
support new antiterrorism legislation

MAINICHI (Top Play) (Slightly abridged)
October 30, 2007

The ruling Liberal Democratic Party (LDP) and main opposition
Democratic Party of Japan (DPJ) agreed yesterday to hold a meeting
today between Prime Minister Yasuo Fukuda, president of the LDP, and
DPJ President Ichiro Ozawa in the Diet building. The two party heads
will likely hold penetrating exchanges on the handling of a new
antiterrorism bill, as well as on the question of whether to extend
the current Diet session since the schedule for deliberations during
the ongoing session is becoming tighter due to the Diet testimony by
former Administrative Vice Defense Minister Takemasa Moriya. As the
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian
Ocean is to expire on Nov. 1 under the present Antiterrorism Special
Measures Law, Fukuda hopes to reach an agreement with Ozawa in some
fashion on Japan's support for antiterrorism operations. A battle
between the ruling and opposition camps in the current session will
face a crucial stage.

The two party heads will hold a meeting for the first time. The
meeting was requested by Fukuda, and Ozawa accepted it. LDP Diet

TOKYO 00005039 006 OF 010

Affairs Committee Chairman Tadamori Oshima yesterday conveyed
Fukuda's request to discuss issues concerning national interests,
including the new antiterrorism bill with Ozawa to his DPJ
counterpart Kenji Yamaoka.

It is now impossible to enact the new antiterrorism bill without
extending the current session, which expires on Nov. 10. The
government and ruling coalition, therefore, has targeted at least
passing it through the House of Representatives by extending the
session. A senior LDP House of Councillors member said yesterday:
"If we don't carry out deliberations on the bill at the Upper House
after passing it through the Lower House, the international
community will see Japan as having no desire to fight terrorism."

However, Fukuda is regarded as cautious about enacting the
legislation with approval of a two-thirds majority by taking a
second vote in the Lower House. With his visit to the United States
in mid-November approaching, Fukuda intends to gain in the meeting a
foothold in resuming antiterrorism support after the present law

7) Speculation rampant about Ozawa's aim behind acceptance of offer
for party head talks

ASAHI (Page 4) (Excerpts)
October 30, 2007

In a general meeting held yesterday noon by the Liberal Democratic
Party's Tokyo Metropolitan Federation of Chapters, Secretary General
Ibuki emphasized: "In our party's views, if there are parts
criticized (by the opposition camp), we will have to respond to the
criticism. If we find good alternative ideas in the Democratic Party
of Japan's (DPJ) plan, we will accept them."

Asked by the prime minister yesterday morning to propose to the DPJ
party head talks, Ibuki expressed his expectations that progress
will be made in negotiations on changes in the government's
antiterrorism bill.

It is inconceivable, however, that DPJ President Ozawa, who has
termed the Maritime Self-Defense Force's (MSDF) refueling mission as
unconstitutional, will change his mind and support the bill. There
is speculation about Ozawa's motives behind his agreement to holding
party head talks, with one person predicting that he might try to
find common ground by presenting a counterproposal, and another
speculating that he might declare that the party will quickly reject
the bill in the Upper House.

Some DPJ members, however, take the view that Ozawa's aim is to take
the initiative in dissolving the House of Representatives for a snap
election. A senior party member said: "In accepting the ruling
camp's proposal for party head talks, there should be no other
advantage than pressing for dissolving the Lower House." In
actuality, Diet Affairs Committee Chairman Hirotaka Akamatsu said:
"Since the next House of Representative election might be held
earlier than expected, we want you to pick potential candidates

8) Moriya testifies that a former Defense Agency director general
was present at party; Was aware that playing golf at trader's
expense was illegal

TOKYO 00005039 007 OF 010

YOMIURI (Top play) (Excerpts)
October 30, 2007

Former Administrative Vice Defense Minister Takemasa Moriya in his
sworn testimony yesterday at the House of Representatives special
committee on antiterrorism, chaired by Takashi Fukaya, revealed that
a former Defense Agency director general had been present at a party
held by Motonobu Miyazaki, a former managing director of aviation
and defense trader Yamada Yoko Corp. Indicating that his having
played golf with the former Yamada executive constituted
entertainment violating the Self-Defense Forces' code of ethics,
Moriya offered an apology and announced his intention to consider
returning his retirement allowance. Taking Moriya's testimony as
insufficient to shed light on the truth, the opposition bloc is set
to continue pursuing him. It might affect Diet deliberations on new
antiterrorism legislation.

Regarding lawmakers who were present at the party with Miyazaki,
Moriya said: "I believe there were several. There was also a former
Defense Agency director general." Although Moriya said that the
meeting was held "last year or the year before last," he refused to
name the lawmakers who attended the meeting, saying: "I would like
to refrain from revealing the names of lawmakers so as not to cause
any trouble for them."

He admitted that as chair of the Defense Ministry's equipment
deliberative council, he had been involved in August 2003, shortly
after becoming vice minister, in the selection of an engine made by
General Electric, for which Yamada Yoko was serving as Japanese
agent, for the CX next-generation transport aircraft. He also
admitted that when he had received a courtesy call by GE executives
at his office last December, Miyazaki was also present. Moriya,
however, denied giving any favors to Miyazaki.

About the allegation that in accordance with Moriya's intention, the
then Defense Agency decided in 2002 just to reduce the contract
amount with Yamada Yoko without punishing it despite its padded bill
for the shipment of a chaff/flare system for Maritime Self-Defense
Force helicopters, he said, "I did not have authority, and I do not
remember it."

About his relationship with Miyazaki, Moriya revealed that (1) he
played golf on over 200 occasions over about 11 years, (2) he and
his wife received sets of golf clubs on two occasions, and (3) he
traveled to Hokkaido and Kyushu to play golf at Miyazaki's expense.

He then said: "I was aware that I was being entertained. I violated
the SDF Ethics Law for a long period of time, and I have no excuse
for it." However, the ethics code under the law has no stipulation
for disciplinary action against retired officers. Moriya indicated
that he was considering returning his retirement allowance, saying:
"If I were an incumbent, I would naturally be punished. I will
determine my response after thinking through the matter."

9) Moriya repeats in Diet, "I don't remember;" Vague testimony
coincident with contents of Defense Ministry's interim report

TOKYO SHIMBUN (Page 2) (Excerpts)
October 30, 2007

Former Administrative Vice Defense Minister Takemasa Moriya appeared
in the Diet as a sworn witness yesterday. On the alleged cover-up of

TOKYO 00005039 008 OF 010

a data error of the amount of fuel provided by the Maritime
Self-Defense Force (MSDF) to US tankers, Moriya repeatedly said: "I
do not remember." Whether Moriya had been involved in the cover-up
scandal was not revealed through his replies.

In May 2003, the US naval commander said the amount of fuel
indirectly supplied by the MSDF to a US aircraft carrier was 800,000
gallons, but the then Joint Staff Council chairman announced at a
news conference held two days later that the volume was 200,000
gallons. It is suspected that Moriya as Defense Policy Bureau chief
had been involved in this case.

Moriya had asked the US Embassy of the purport of the US navy
commander's statement and had received a letter of reply from the
embassy the following day. Keeping in mind the fact that Moriya had
been in a position to learn of the accurate volume of MSDF-supplied
fuel through such exchanges with the US Embassy, House of
Representatives Antiterrorism Special Committee Chairman Takashi
Fukaya said, "You should have promptly taken response measures."

But Moriya replied: "I only traded information (with the US) on
whether the provided fuel was used in the Iraq war." He insisted
that he had not been aware of the data error in 2003, saying: "I
only knew it this year (after leaving the Defense Ministry)."

Even so, since the US naval commander and the Joint Staff Council
chairman gave different figures, Moriya naturally should have
wondered why. Pointing to this, Democratic Party of Japan member
Yorihisa Matsuno said, "It is odd that the defense policy bureau
chief was unaware of it."

Asked by opposition party members about exchanges of words in the
government at that time, Moriya just repeated: "I was not aware of
it," and "I do not remember."

Moriya's vague testimony is curiously coincident with the contents
of an interim report presented by the Defense Ministry to the ruling
and opposition camps prior to Moriya's testimony.

10) Meeting of party heads today: Ruling camp hopes for breakthrough
in the situation; DPJ to attack until allegations are cleared up

MAINICHI (Page 5) (Excerpt)
October 30, 2007

Following the summoning of former Vice Defense Minister Takemasa
Moriya to testify in the Diet on Oct. 29, the Democratic Party of
Japan (DPJ or Minshuto), insisting that "suspicions have deepened,"
is strengthening its attack by such means as asking for more
witnesses to be summoned. The aim is block substantive deliberations
on the antiterrorism special measures bill and prevent its passage.
On the other hand, there is no one in the government and ruling
parties with the view that the allegations have been resolved. The
thinking is that somehow in the meeting of party heads - Prime
Minister Fukuda and DPJ President Ozawa - that a breakthrough in the
situation can be found.

11) Opposition demands further testimony

MAINICHI (Page 1) (Full)
October 30, 2007

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The House of Representatives Special Committee on Prevention of
Terrorism and Support for Iraq discussed last evening at its
directors' meeting future responses. In it, the ruling camp
requested the holding on Oct. 31 and Nov. 1 of deliberations on new
antiterrorism legislation, while the opposition bloc demanded the
summoning of sworn and unsworn witnesses to testify before the Diet.
They, however, failed to reach a conclusion.

The opposition called for summoning as sworn witnesses Motonobu
Miyazaki, a former executive of the defense equipment trader Yamada
Corp. who entertained former Administrative Vice Defense Minister
Takemasa Moriya; and Tsutomu Sato, a former Naha Defense Facilities
Administration Bureau chief who allegedly had collusive ties with a
local company over US bases in Okinawa. The opposition also called
for summoning the then Maritime Self-Defense Force's Maritime Staff
Office Operations and Plans Division chief, who was responsible for
the underreporting of the amount of fuel the MSDF supplied to a US
ship, as an unsworn witness.

12) Opposition parties criticize Moriya; DPJ's Hatoyama says Moriya
essentially declines to testify

ASAHI (Page 4) (Excerpts)
October 30, 2007

Senior members of opposition parties criticized statements made by
former Vice Defense Minister Takemasa Moriya in Diet testimony

Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama
told reporters at party headquarters: "He did not tell the truth.
Regarding the cover-up of a data error (on the amount of fuel
supplied by the Maritime Self-Defense Force to US tankers), he
declined to testify in effect, saying that he did not remember. It
is necessary to clear up the truth by questioning him further,
including summing him to the Diet as a sworn witness again."

Japanese Communist Party Secretary General Tadayoshi Ichida
commented in a press conference: "Suspicions have deepened. He
admitted that a former Defense Agency director general had been in a
dining room with a former executive of Yamada Corp. and Moriya,
revealing cozy ties established between the government, the
bureaucracy and the business world. At important points, he said he
did not remember. Mr. Moriya should be summoned again to the House
of Representatives and also to the House of Councillors."

13) Prime minister sharply criticizes Moriya: "He went too far"

TOKYO SHIMBUN (Page 2) (Full)
October 30, 2007

Prime Minister Yasuo Fukuda sharply criticized former Administrative
Vice Defense Minister Takemasa Moriya after Moriya's Diet testimony
last night, in which he admitted that he had received excessive
entertainment from an interested party. The prime minister said
before reporters at his official residence: "He went too far. This
is more serious than a question of an ethical code. He acted quite
thoughtlessly. He did impermissible things."

Asked about the impact of Moriya's allegations on the ongoing
deliberations on the government's antiterrorism bill, the prime
minister replied: "This is apparently an unfavorable matter. It is

TOKYO 00005039 010 OF 010

necessary to shed light on the truth so that everyone can understand
what happened."

14) Japan-North Korea informal talks to resume as early as this

NIKKEI (Page 2) (Full)
October 30, 2007

Japanese and North Korean working-level officials are now
coordinating a plan to resume informal talks within the week, it was
learned yesterday. The next round of talks will become a second
preparatory meeting between Japan and the North for holding a
working-level meeting of the six-party framework. The Japanese
government plans to present again its new policy of gradually
lifting its sanctions on Pyongyang in tandem with progress on the
abduction issue. Attention is focused on how North Korea will
respond to Japan's proposal.

The expectation is that Foreign Ministry Asian and Oceanian Affairs
Bureau Director-General Kenichiro Sasae and Ambassador of North
Korea to Normalization Talks with Japan Song Il Ho will attend the

Sasae has already conveyed to US Assistant Secretary of State
Christopher Hill Tokyo's policy of carrying out informal talks with
North Korea as the occasion arises.

In the meeting, the Japanese side will again call on Pyongyang to at
once repatriate all Japanese abductees. Sasae will also tell Song
that Japan will remove some sanction measures if there is progress
on the abduction issue, such as repatriation of Japanese abductees.

15) Japan to send experts to North Korea

NIKKEI (Page 2) (Full)
October 30, 2007

Administrative Vice Minister Shotaro Yachi stated yesterday at a
press briefing in response to a question regarding whether Japan
would provide funds to push forward with North Korea's disablement
of its nuclear facilities agreed on in the six-party talks and
whether it would send experts to Pyongyang: "Japan is interested in
taking part in nuclear disablement. We will consider whether it is
appropriate for Japan to participate in it, including on the
financial front."


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