Cablegate: Tokyo Media Reaction - Global Economy And

VZCZCXRO2785
PP RUEHFK
DE RUEHKO #2825/01 2840226
ZNR UUUUU ZZH
P 100226Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7850
RUEKJCS/SECDEF WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
RHHMHBA/COMPACFLT PEARL HARBOR HI//N541// PRIORITY
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA// PRIORITY
RUHBANB/OKINAWA FLD OFC US FORCES JAPAN CP BUTLER JA PRIORITY
RHMFIUU/USFJ PRIORITY
INFO RUEHFK/AMCONSUL FUKUOKA 0317
RUEHOK/AMCONSUL OSAKA KOBE 4062
RUEHBJ/AMEMBASSY BEIJING 5780
RUEHMO/AMEMBASSY MOSCOW 2560
RUEHUL/AMEMBASSY SEOUL 1775
RUCNDT/USMISSION USUN NEW YORK 2042
RHEHAAA/NSC WASHDC

UNCLAS SECTION 01 OF 02 TOKYO 002825

SIPDIS

STATE FOR I/RF, PA/PR/FPC/W, IIP/G/EA, EAP/PD, R/MR,
EAP/J, EAP/P, PM;
USTR FOR PUBLIC AFFAIRS OFFICE;
TREASURY FOR OASIA/IMI;
SECDEF FOR OASD/PA;
CP BUTLER OKINAWA FOR AREA FIELD OFFICE;
PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO JA
SUBJECT: TOKYO MEDIA REACTION - GLOBAL ECONOMY AND
NORTH KOREA

1. LEAD STORIES: Top stories on Friday morning included
Japan's plan to propose at the G7 meeting on Friday an
emergency IMF loan program for newly emerging economies
and small- and medium-sized nations.

2. "New Thinking Needed for Unprecedented Crisis" The
liberal Mainichi editorialized (10/10): "...The
Emergency Economic Stabilization Act was enacted after
the struggle. However, the move failed to remove the
anxiety, and the turmoil in the international financial
system is continuing. The current crisis appears to be
approaching an unknown stage... It will be impossible
to restore market confidence by measures based only on
traditional thinking. Revolutionary approaches are
called for. We need to move very quickly to cope with
the nose-diving market. Although Secretary of the
Treasury Paulson expressed a positive position toward
possible injection of public funds into financial
institutions, words are not enough and swift action is
called for."

3. "Market Calling for Additional Steps" The moderate
Yomiuri insisted in an editorial (10/10): "The market
is calling for robust measures to prevent financial
crisis. The U.S. government should quickly make a
decision to inject public funds into financial
institutions... Based on the past lessons of Japan,
injecting public funds into financial institutions is
necessary to reinforce their capital base in addition
to the purchase of their troubled assets. The U.S.
should follow through the UK decision to use public
funds."

4. "U.S. Should Inject Public Funds" The conservative
Sankei's editorial said (10/10): "...Secretary of the
Treasury Paulson hinted during his press conference on
Wednesday at the possibility of injecting public funds
into troubled financial institutions. We hope the U.S.
will swiftly create a specific framework to implement
the idea. The financial crisis has spread to Europe.
The UK has decided to use public funds. The market
remains uncertain due to slow action on the part of the
U.S."

5. "G7 to be Tested" The liberal Tokyo Shimbun
editorialized (10/10): "...The UK has decided to inject
public funds into financial institutions ahead of the
G7 meeting on Friday. Japan solved its own problem in
the 1990s by using public funds. The later the U.S.
acts, the more serious the problem will be... G7 is not
sufficient to cope with the worldwide financial
crisis... Such nations as China, India, Brazil, and
Russia should be involved in the discussion."

6. "Delisting of North Korea Unacceptable" The
conservative Sankei editorialized (10/10): "The
possibility has emerged that the U.S. might delist
North Korea as a state sponsor of terrorism by
overlooking a critical point of verification of
Pyongyang's declaration of its nuclear programs. Japan
should not accept it, as the move, which will not
guarantee strict verification, violates the principle
of complete abolishment of nuclear programs by North
Korea... The biggest concern is that easy delisting
could undermine the U.S.-Japan alliance. Ambassador
Schieffer said on Thursday that President Bush has not
made any decision yet. Prime Minister Aso should convey

TOKYO 00002825 002 OF 002

Japan's position to the USG and urge Washington to make
the right decision."

SCHIEFFER

© Scoop Media