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Cablegate: Japanese Morning Press Highlights 09/01/09

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FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
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RUEAWJA/USDOJ WASHDC PRIORITY
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RUEHBJ/AMEMBASSY BEIJING 0746
RUEHUL/AMEMBASSY SEOUL 7409
RUCNDT/USMISSION USUN NEW YORK 7024

UNCLAS SECTION 01 OF 09 TOKYO 002005

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09/01/09

Index:
1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

Defense & Security
4) - Japan to build new type helicopter carrier (Mainichi)
5) Japan to spend 94.4 billion yen on PAC3 (Yomiuri)
6) GSDF personnel sell personal data on 140,000 people (Sankei)
7) DPJ and Social Democrats differ on security and economic measures
(Nikkei)
8) - Hatoyama calls for coordination between Japan, U.S., and South
Korea on North Korean issues (Tokyo Shimbun)

Foreign Relations
9) Hatoyama to travel to U.S. on Sept. 21 (Mainichi)

Politics
10) - Three parties to holding meeting on forming coalition govt.
this week (Yomiuri)
11) The DPJ may not come up with budget within the year (Yomiuri)
12) - Vice minister of foreign affairs indicates he will cooperate
in investigation of secret nuclear agreement with the U.S.
(Mainichi)

13) Hatoyama indicates the DPJ will alter the budget (Nikkei)
14) - DPJ, Social Democrats, and People's New Party exploring
coalition govt. (Asahi)
15) Change in Diet to occur following changing of places between DPJ
and LDP (Nikkei)

U.S.-Japan relations
16) U.S. Ambassador Roos congratulates Hatoyama (Asahi)
17) DPJ Hatoyama refutes criticism of his article (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Yanba Dam bidding to be frozen; Ministry of Land, Infrastructure,
Transport, and Tourism to follow orders of next minister

Mainichi:
Budget requests to start from scratch: Kasumigaseki perplexed by
change of administration

Yomiuri:
DPJ, SDP, PNP coalition talks to start this week; Hatoyama says he
will decide on appointments alone

Nikkei:
Budget requests for next fiscal year to start from scratch; Hatoyama
to project DPJ color

Sankei:
Ozawa to preside over Upper House election campaign; DPJ starts
talks for coalition

Tokyo Shimbun:
Pork barrels or achievement of ideals? Realization of peace of mind
holds the key

TOKYO 00002005 002 OF 009

Akahata:
JCP keeps 9 seats in general election, wins 4.94 million
proportional representation votes, exceeding last election

2) EDITORIALS

Asahi:
(1) Administration transition: No time to lose
(2) Historic defeat: Lessons for LDP's new start

Mainichi:
(1) Expectation for the new administration: Consolidate groundwork
for breaking away from bureaucratic control; LDP should also
cooperate with transition

Yomiuri:
(1) Administration transition begins: Continuity important for basic
policies

Nikkei:
(1) Achieve growth and social stability with politician-led reform

Sankei:
(1) Administration transition: Stagnation in national administration
unacceptable
(2) Disaster Prevention Day: Lessons from 50th anniversary of Ise
Bay typhoon

Tokyo Shimbun:
(1) DPJ's landslide victory: Manage party in a manner meeting
expectations
(2) LDP's crushing defeat: Be prepared to endure four years

Akahata:
(1) Election results: First step toward advancing Japanese politics

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, August 31

NIKKEI (Page 2) (Full)
September 1, 2009

10:50 Met with Deputy Chief Cabinet Minister Uruma at the Kantei.
11:54 Met with Secretary General Hosoda, General Council Chairman
Sasagawa, Special assistant to the party president Shimamura, LDP
caucus in the Upper House Chairman Tanigawa, Upper House Diet
Steering Committee Chairman Suzuki and Chief Cabinet Secretary
Kawamura. Deputy Election Committee Chairman Koga and Deputy
Secretary General Ishihara joined.
12:50 Met with Koga and Ishihara.
14:00 Press conference followed by party executive meeting.
15:13 Met with Kawamura at the Kantei.
18:11 Arrived at his official residential quarters.

4) Defense Ministry plans to build helicopter carrier

MAINICHI (Page 30) (Abridged)
September 1, 2009

The Defense Ministry yesterday announced a budget request for fiscal

TOKYO 00002005 003 OF 009


2010. The announced budget request earmarks 116.6 billion yen to
build a new full-fledged destroyer for the Maritime Self-Defense
Force that can carry nine helicopters. It also earmarks 94.4 billion
yen for the nationwide deployment of the Patriot Advanced Capability
3 (PAC-3), a ground-based intercept missile, to step up Japan's
missile defense system in the wake of North Korea's missile
launches. The budget request totals 4.846 trillion yen, an increase
of 3.0 PERCENT over the initial budget for the current fiscal
year.

The newly planned destroyer is a vessel of the aircraft carrier type
with a long and narrow deck like the Hyuga, a newly developed
helicopter destroyer. The new helicopter destroyer is larger than
the Hyuga. It has an overall length of about 248 meters, an increase
of 25 PERCENT compared with the Hyuga, and has a displacement of
19,500 tons at full load, an increase of about 44 PERCENT . The new
vessel can simultaneously operate up to nine helicopters, five more
than in the case of the Hyuga, for antisubmarine and other
activities. The new vessel can house up to 14 helicopters, three
more than the Hyuga can. In addition, the new vessel is designed to
function as a supply ship, with a capacity of about half that of an
existing supply ship. It will serve to assist disaster relief
operations and United Nations peacekeeping operations. In addition,
it is also intended to cope with China's increased naval forces,
including submarines.

5) 94.4 billion yen earmarked for PAC-3

YOMIURI (Page 4) (Full)
September 1, 2009

The Defense Ministry yesterday announced a budget request for fiscal
2010. The budget request totals 4.846 trillion yen, an increase of 3
PERCENT over the initial budget for the current fiscal year. It
earmarks 94.4 billion yen to extend the deployment in Japan of the
Patriot Advanced Capability 3 (PAC-3), a missile defense system, in
order to beef up Japan's readiness against North Korean ballistic
missiles. The Democratic Party of Japan intends to make a drastic
review of the budget request.

6) Data on 140,000 GSDF officers leaked; Captain arrested

SANKEI (Page 1) (Full)
September 1, 2009

The Ground Self-Defense Force (MSDF) Military Police arrested
Captain Yasunari Tokunaga, 46, of the SDF Kagoshima Regional
Cooperation Headquarters on August 31 on charges of violating the
law on protection of personal information by administrative organs
for providing the personal information of some 140,000 GSDF officers
to a real estate agent.

According to the Ground Staff Office, Tokunaga is suspected of
providing a CD-R containing the personal information of GSDF
officers to a real estate agent. The information provided included
the name, rank, affiliation, birthday, address, family members, and
other data for almost all 140,000 members of the GSDF. It is
believed that this is the largest scale leakage of personal
information of SDF members. Defense secrets are reportedly not
included in the leaked information. The GSDF was told on July 13
that "a CD-R containing personal information of GSDF officers was
found." The Military Police went to retrieve the CD-R, and their

TOKYO 00002005 004 OF 009


investigations eventually pointed to Tokunaga as the suspect.

7) Coalition government: Gaps with SDP, PNP over security, economic
stimulus measures

NIKKEI (Page 3) (Excerpts)
September 1, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama on August
31 asked Social Democratic Party (SDP) leader Mizuho Fukushima and
People's New Party (PNP) President Shizuka Kamei to join his
government as a coalition partner. Sticking points at coalition
talks among the three parties, which are expected to start before
the end of the week, will likely be how to fill gaps on the policy
front, such as differences in views on foreign affairs and security
issues, and how to allocate ministerial posts to the two parties.

In the SDP, Fukushima on the 31st discussed the matter with party
executives, such as Secretary General Yasumasa Shigeno, and decided
to take part in the coalition talks, accepting the DPJ's call. The
party intends to ask for setting up an advisory body to discuss
anti-piracy operations off Somalia, Africa. Shigeno told reporters,
"It is very important how we can reflect our policies."

Differences in the views of the DPJ and the SDP over foreign affairs
and security issues are posing a barrier to the DPJ's effort to form
a coalition government with it, because the SDP is cautious about
the overseas dispatch of Self-Defense Forces (SDF) personnel.

The SDP mentioned in its manifesto for the Lower House election that
it would change the main force of Japan's anti-piracy operations off
Somalia from the SDF to the Japan Coast Guard (JCG). In the
meantime, the DPJ has shifted to a down-to-earth policy line in
anticipation of power transfer. Hatoyama has approved the dispatch
of SDF troops, while noting that it is desirable to have the JCG
undertake anti-piracy operations.

The two parties also differ in their stances toward refueling
operations in the Indian Ocean. Hatoyama has indicated a stance of
disapproving a simplistic extension of the operations after the
January deadline next year. However, Fukushima is calling for an
immediate pullout. The coalition talks may encounter complications
over a timeframe for the Maritime Self-Defense Force's withdrawal
from the operation.

The PNP is paying close attention to the DPJ's approach to a bill to
freeze the sell-off of Japan Post stocks and fresh stimulus measures
- issues the PNP is attaching importance. Kamei during a press
conference checked the DPJ, noting: "We may join the coalition
government, if we find common ground in the talks. If not, we will
not join the coalition."

The DPJ is seeking to form a coalition government, because it falls
short of a majority in the Upper House, which would hamper the
stable management of the administration. The strategy of the SDP and
the PNP is to gain influence on the DPJ administration on the
strength of their seats in the Upper House. They also intend to
regard the ministerial posts and the number of such given to them as
a yardstick for whether they will cooperate for the forming of a
coalition government in a harmonious manner.

The DPJ has secured the power of numbers, winning an overwhelming

TOKYO 00002005 005 OF 009


number of seats - 308 -- in the Lower House election. Hatoyama is
indicating a stance of listening to the view of minorities. However,
the SDP and the PNP would find it difficult to have their own ways
only with a bullish approach. The coalition talks will be a
touchstone to gauge a power relationship among the three parties.

8) Hatoyama, ROK President Lee agree on need for Japan-U.S.-ROK
cooperation on North Korea's nuclear and abduction issues

TOKYO SHINBUN (Page 2) (Full)
September 1, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama yesterday
held a telephone conversation, in which the two agreed that Japan,
the Republic of Korea, and the United States should closely
cooperate in resolving North Korea's nuclear and abduction issues.
They also agreed to meet as early as possible.

U.S. Ambassador to Japan John Roos also called Hatoyama and
congratulated him on the DPJ's victory in the House of
Representatives election. Hatoyama told Roos: "I would like you to
tell President Barack Obama that I will make efforts to develop
Japan-U.S. relations."

Hatoyama held a telephone conversation also with Australian Prime
Minister Kevin Michael Rudd.

9) Hatoyama to visit U.S. September 21 for UN speech and summit
meetings

MAINICHI (Page 5) (Full)
September 1, 2009

Takashi Sudo

With Democratic Party of Japan President Yukio Hatoyama set to
become the new prime minister, the Ministry of Foreign Affairs
(MOFA) has begun arranging the prime minister's diplomatic schedule
for his visit to the U.S. in late September. There are a number of
summit meetings on important issues, including finance, global
warming, and nuclear arms. The new prime minister will leave Japan
for his trip on September 21, at the earliest.

The new prime minister will have to leave Japan on September 21 in
order to attend the opening ceremony of the UN high-level event on
climate change in New York on the morning of September 22 (New York
time). Since U.S. President Barack Obama will also participate in
this meeting, MOFA regards the event as important for promoting
U.S.-Japan cooperation on global warming issues.

A speech by the prime minister of Japan at the UN General Assembly
is scheduled for noon on September 23, and President Obama will be
hosting a reception in the evening. Plans are afoot for the first
U.S.-Japan summit meeting to be held on the same day. The UN
Security Council summit level meeting on nuclear non-proliferation
and disarmament initiated by President Obama takes place on the
morning of September 24. A senior MOFA official said: "The absence
of Japan, which takes a positive stance on nuclear disarmament and
is a UNSC member, in this meeting is unthinkable." After this summit
meeting, the new prime minister will move on to Pittsburgh for the
G-20 financial summit on September 24-25.


TOKYO 00002005 006 OF 009


All the summit meetings pertain to issues prioritized by President
Obama that need to be tackled by the international community as a
whole. Hatoyama's diplomatic skills will be put to the test.
10) DPJ President Hatoyama expects to start talks this week on
coalition government with SDP, PNP

YOMIURI (Top play) (Excerpts)
September 1, 2009

On the day after the Democratic Party of Japan (DPJ) achieved an
overwhelming victory in the House of Representatives election on
Aug. 30, the party initiated work to establish a new government. DPJ
President Yukio Hatoyama called Social Democratic Party (SDP)
President Mizuho Fukushima and People's New Party (PNP) President
Shizuka Kamei yesterday and asked them to start negotiations with
the DPJ on launching a three-party ruling coalition. The two parties
held their respective executive meetings and decided to sit at the
negotiating table with the DPJ. The secretaries general and the
policy research council chairmen of the three parties will meet by
the end of the week to launch policy talks.

Hatoyama held a meeting with two DPJ deputy presidents, Ichiro Ozawa
and Naoto Kan, and DPJ Secretary General Katsuya Okada at party
headquarters yesterday. They decided to push ahead with negotiations
with the SDP and the PNP to form a coalition government, bearing in
mind the fact that the DPJ has not held a majority in the House of
Councillors. After reaching an agreement on a coalition government,
the three parties aim to inaugurate a Hatoyama government in a
special Diet session to be convened in mid-September.

Regarding whom he is planning to appoint for ministerial posts,
Hatoyama stressed before reporters yesterday: "Personnel
appointments are exclusively up to the president's decision. The
three party officers will not discuss this matter. I will make a
decision on my own. I would like to have all posts filled after the
Diet vote on the prime minister (in the special session). Until
then, we want to hold negotiations behind the scenes."

Hatoyama intends to ask some members of the SDP and the PNP to
assume portfolios.

11) Compiling fiscal 2010 budget bill within the year might be
difficult

YOMIURI (Page 2) (Full)
September 1, 2009

Speaking before reporters yesterday, Democratic Party of Japan (DPJ)
President Yukio Hatoyama said with a sour look: "It is unwelcoming
that all government agencies had submitted their requests (to the
Finance Ministry) without informing the DPJ right when a new
government is about to be launched." He then emphasized: "It is
necessary to fundamentally redraft the budget plan."

It is likely that the national strategy bureau to be set up under
the prime minister will lay down a basic policy on budget
compilation for the campaign pledges in its manifesto, such as
offering monthly child-raising allowances, and that based on the
policy, cabinet ministers will review their respective requests.
Given this, the drafting process will inevitably be delayed much
more than usual. The annual budget is normally drafted by the end of
December. This year, though, it is uncertain whether the

TOKYO 00002005 007 OF 009


government's draft will be adopted by the end of the year.

Based on the requests, the state general-account budget for fiscal
2010 is estimated to hit an all-time high of approximately 92.13
trillion yen, up 3.58 trillion yen from the initial budget for
fiscal 2009. This figure exceeds that for fiscal 2004 (approximately
86.45 trillion yen).

12) Vice-Foreign Minister Yabunaka expresses willingness to
cooperate on secret nuclear pact under new administration

MAINICHI (Page 1) (Full)
September 1, 2009

Takashi Sudo

The Democratic Party of Japan (DPJ) is planning to investigate a
purported Japan-U.S. secret pact on the introduction of nuclear
weapons into Japan. Touching on this matter, Administrative
Vice-Foreign Minister Mitoji Yabunaka indicated in a press
conference yesterday that he will cooperate if there is an order
from the new administration for an investigation into the matter. He
said, "When we receive instructions from the new administration, we
will take the necessary measures."

13) Hatoyama plans to return fiscal 2010 budgetary requests to
square one to show DPJ imprint

NIKKEI (Top play) (Abridged slightly)
September 1, 2009

President Yukio Hatoyama of the Democratic Party of Japan (DPJ),
which achieved a landslide victory in Sunday's House of
Representatives election, yesterday formally asked the heads of the
Social Democratic Party (SDP) and the People's New Party (PNP) to
hold talks on forming a coalition government. In connection with the
budget-compilation for fiscal 2010 by the new cabinet that will be
launched possibly in mid-September, Hatoyama indicated to the press
corps that his party will fundamentally review the budgetary request
guidelines. He also said that his party will stick to its plan to
reduce greenhouse gas emissions by 25 percent from 1990 levels, as
specified in its manifesto (campaign pledges).

Although the DPJ has won 308 Lower House seats, the party does not
have a majority in the House of Councillors. Hatoyama held talks
yesterday with Deputy President Ichiro Ozawa, Secretary General
Katsuya Okada, and other party executives at party headquarters. As
a result, they agreed that it is essential to establish a coalition
government with the SDP and PNP in order to run the administration
stably. Hatoyama later asked SDP head Mizuho Fukushima and PNP
leader Shizuka Kamei over the phone to hold administrative talks.

The two parties will shortly begin talks with the DPJ on foreign,
security, and economic policies after making internal party
coordination.

Referring to rough budgetary requests by ministries and agencies by
Aug. 31, Hatoyama said: "I think the offices have produced their
budgetary requests in accordance with the general rule, but we
cannot welcome those request that have not been examined by the
DPJ." He expressed a plan to return the budgetary request guidelines
to square one to compile budgets in a way that clearly reflects a

TOKYO 00002005 008 OF 009


DPJ policy imprint.

The DPJ has come up with a policy to establish a government
ordinance to set up a national strategy bureau under the direct
control of the prime minister. New budget-compilation guidelines are
expected to be announced in early October. There is an observation
that it will take at least one month for the Finance Ministry to
review the overall guidelines and for each government office to
present new projects. Compiling budgets before the end of the year
might be difficult.

Hatoyama also indicated that the DPJ will not make a major change to
the party's plan to reduce greenhouse gas emissions by 25 percent.
With the UN High-Level Event on Climate Change in New York coming up
in late September, Hatoyama also indicated that his party is going
to discuss specifics.

The Consumer Agency is to be set up today. Hatoyama indicated that
his party is not necessarily against establishing the agency, while
indicating that there is some room for a review of the government's
plan to appoint former Cabinet Office Vice-Minister Shunichi Uchida
as the agency's first chief.

14) DPJ sounds out SDP, PNP on holding discussions on alliance; LDP
to hold presidential election on Sept. 28

ASAHI (Page 1) (Excerpts)
September 1, 2009

The Democratic Party of Japan (DPJ) yesterday sounded out the Social
Democratic Party (SDP) and the People's New Party (PNP) on holding
discussions on forming a coalition government. The DPJ is now
considering asking the ruling parties to move up a special Diet
session to late next week, which is scheduled to convene on the week
of Sept. 14 to take a Diet vote for the prime minister. The ruling
Liberal Democratic Party (LDP) held an executive meeting, in which
the LDP decided to hold its presidential election to choose a
successor to Prime Minister Taro Aso on Sept. 28 after the special
Diet session. The LDP presidential race will kick off on Sept. 18.

15) Change in Diet to occur following changing of places between DPJ
and LDP

NIKKEI (Page 2) (Full)
September 1, 2009

A phenomenon of "changing of places" between the Liberal Democratic
Party (LDP) and the Democratic Party of Japan (DPJ) will likely be
seen in the Diet with the DPJ becoming the top party after the Lower
House election. To begin with, the allocation of time for questions
and Diet posts will change. The allocation of waiting rooms for
lawmakers and public dormitories for Diet members will dominate
talks between the ruling and opposition parties. Since there are
many unprecedented cases, difficulties will probably be encountered
in coordinating views, as the Lower House secretariat put it.

One of the most prominent changes in Diet deliberations will be in
how question time is allocated. Since question time is, in
principle, allocated to parties in proportion to the number of
lawmakers each party has, the time given to the DPJ will increase
sharply. Accordingly, that party's opportunity to present its own
policies will increase dramatically. The distribution of such posts

TOKYO 00002005 009 OF 009


as speaker, chairmanships of the standing and special committees
will also reflect the changing of places between the DPJ and the
LDP. The chairmanships of the Lower House Steering Committee and the
budget committee will also be held by the DPJ.

The seating plan in the Lower House plenary session hall will also
change. Customarily, seats in the session hall are allocated in
order from the top party, the second party, and so on, from the
right to the left when viewed from the speaker's position. The DPJ
also intends to seek an exchange of lawmakers' waiting rooms.

16) U.S. Ambassador Roos congratulates Hatoyama

ASAHI (Page 4) (Full)
September 1, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama yesterday
told reporters that he had received a congratulatory call from U.S.
Ambassador to Japan John Roos on his party's victory in Sunday's
House of Representatives election. Hatoyama asked Roos to convey his
message to President Barack Obama that he hopes to work together
with the President as a friend to develop Japan-U.S. relations. Roos
told Hatoyama: "I will certainly convey (your message to the
President)." Hatoyama was quoted as telling Roos: "I hope to see you
at the earliest possible time." Both Hatoyama and Roos studied at
Stanford University.

17) DPJ Hatoyama refutes criticism of his article

YOMIURI (Page 2) (Full)
September 1, 2009

Some persons in the U.S. have voiced criticism of an article
contributed by Democratic Party of Japan (DPJ) President Yukio
Hatoyama to the New York Times. Responding to such criticism,
Hatoyama told reporters at party headquarters yesterday: "If you
read the whole article, you will find that it is not intended to
express an anti-U.S. view."

Criticizing U.S.-led globalism and market fundamentalism, the
article calls for building an Asia-centric economic system. Hatoyama
commented: "Abstracts from an article I contributed to a (Japanese)
magazine were carried in it, and I did not write it for (the U.S.
newspaper)." The article was carried in the September edition of the
Japanese monthly magazine Voice. The article was reportedly
translated into English by his office members. In response to
questions posed by the Yomiuri Shimbun, a person who handled the
article in question said: "We shortened the original article due to
limited space and changed some unclear words, but the essence of its
contents was not changed at all.

ROOS

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