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Cablegate: Japanese Morning Press Highlights 09/02/09

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UNCLAS SECTION 01 OF 12 TOKYO 002018

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 09/02/09

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

4) 74 PERCENT of those surveyed have expectations for the new
administration (Asahi)
5) 71 PERCENT of those surveyed have expectations for a Prime
Minister Hatoyama (Sankei)
6) - Hatoyama to be elected prime minister on the 16th; conference
on coalition starts today (Yomiuri)
7) - Former top govt. official: secret nuclear pact still in effect
(Tokyo Shimbun)
8) Masuzoe says he will not run for LDP presidency (Yomiuri)
9) Foreign Ministry: No headway in preparations for new prime
minister's visit to U.S. (Yomiuri)
10) - 42 PERCENT of those surveyed holding judgment on change of
regime (Tokyo Shimbun)
11) DPJ to freeze over 1 trillion yen in budget funds in revising
the fiscal 2009 extra budget (Yomiuri)
12) - Defense contractor demands Ministry of Defense pay 5 billion
yen for canceled order of attack helicopters (Asahi)
13) - DPJ to submit at extraordinary session of diet bill for
sweeping revision of laws to usher in leadership by politicians
(Nikkei)
14) - 68 PERCENT of those surveyed applaud DPJ victory (Yomiuri)
15) - MSDF ship returns to home port (Nikkei)
16) - U.S. refusal to renegotiate Futenma transfer throws water on
DPJ's approach to America (Nikkei)
17) U.S. State Department: "No renegotiations" on Futenma
(Mainichi)
18) - 66 PERCENT of those surveyed say LDP can take back power, 19
PERCENT say it can't (Yomiuri)
19) - Yosano will not attend G20 summit (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Launch of Consumer Affairs Agency: Tug-of-war between politicians,
bureaucrats begins

Mainichi:
Launch of Consumer Affairs Agency: Battle to break away from
bureaucratic control begins

Yomiuri:
Hatoyama to be elected prime minister on September 16; Coalition
talks begin today

Nikkei:
Legal amendments in package to facilitate political leadership; DPJ
to submit bills to extraordinary Diet session

Sankei:
Hatoyama to be elected prime minister on September 16; Agreement
reached with LDP, New Komeito on holding special Diet session

Tokyo Shimbun:
DPJ begins coalition talks; Hatoyama indicates plan to appoint
cabinet members from SDP, PNP

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Akahata:
Door opens to new politics: Good opportunity to change history

2) EDITORIALS

Asahi:
(1) To the new Hatoyama administration: Build a strong foundation
for administration leadership

Mainichi:
(1) Expectation for the new administration: Send out honest,
straightforward messages
(2) Expectation for the new administration: Show the way to place
priority on livelihoods

Yomiuri:
(1) New start for LDP: Election of new president should be rushed
(2) Yanba Dam: DPJ should consider continuation of construction work
one option

Nikkei:
(1) Hatoyama administration should change tack on U.S. policy

Sankei:
(1) LDP presidential election: Show efforts at self-reform
(2) Launch of Consumer Affairs Agency: Ruling, opposition parties
have responsibility to foster this agency

Tokyo Shimbun:
(1) Administration transition: Policy of breaking away from reliance
on bureaucrats put to the test
(2) Disaster Prevention Day: Do not narrow down the scope of
preventive measures

Akahata:
(1) World financial reform: Trend toward stricter regulation
continues

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 1

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

08:05 Cabinet talks and special cabinet meeting on disaster
preparedness drill at the Cabinet Crisis Management Center.
08:30 Press conference at the Kantei. Then emergency disaster
countermeasures headquarters meeting.
09:04 Cabinet meeting. Then issued an order to assign additional
duties to State Minister for Consumer Affairs Noda.
10:41 Left the Kantei by GSDP helicopter.
10:57 Arrived at Higashi-Ogijima Higashi Park in Kawasaki City.
Observed disaster prevention drill jointly carried out by eight
prefectures.
12:08 Left the park by GSDF helicopter.
12:23 Arrived at the Kantei.
14:33
14:33 First Consumer Affairs Committee meeting held at Sanno Park
Tower Building in Nagata-cho.
14:47 Arrived at the Kantei.

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16:08 Met with Special Assistant to the LDP president Shimamura.
Chief Cabinet Secretary Kawamura joined. Kawamura stayed behind.
18:45 Dined with his family at "Sukiyabashi Jiro," a sushi
restaurant in Ginza.
19:37 Arrived at the official residence.

4) Poll: 74 PERCENT pin hopes on new government

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

Following up the outcome of the recent general election for the
House of Representatives, the Asahi Shimbun conducted a
telephone-based spot nationwide public opinion survey yesterday. In
the spot poll, respondents were asked if they had high expectations
for the new government to be led by the Democratic Party of Japan.
In response to this question, 74 PERCENT answered "yes," with 17
PERCENT saying "no." Respondents were also asked if they thought
the DPJ government could substantially change Japan's politics. To
this question, 32 PERCENT replied "yes," with 46 PERCENT saying
"no."

Respondents were further asked if they were happy with the change of
government resulting from the election. To this question, 69 PERCENT
answered "yes," with 10 PERCENT saying "no." Even among those who
answered that they voted for the Liberal Democratic Party in their
proportional representation blocs, 46 PERCENT answered "yes" to
that question.

The DPJ won an overwhelming victory with more than 300 seats. Asked
if they were pleased with this outcome, a total of 54 PERCENT
answered "yes," with 25 PERCENT saying "no." As seen from these
figures, public opinion was less positive about the DPJ's
overwhelming victory than about the change of government.

Meanwhile, respondents were asked why they thought the DPJ won such
an overwhelming victory. Asked if it was primarily because the
public desired to see a change of government, a total of 81 PERCENT
answered "yes." Only 38 PERCENT answered "yes" when asked if they
thought that was primarily because the DPJ's policies were
supported.

Even among those having high expectations for the new government, 37
PERCENT said the DPJ government would not be able to change Japan's
politics substantially. Even among those who voted for the DPJ in
the election, 31 PERCENT had the same opinion.

On the whole, the public welcomes the change of government. However,
there are also many who have doubts about the DPJ's policies and
capacity.

Respondents were asked if they had high expectations for DPJ
President Hatoyama, who is now certain to become prime minister. To
this question, 63 PERCENT answered "yes," with 29 PERCENT saying
"no."

The LDP will now become an opposition party. When respondents were
asked if they wanted the LDP to recover as a political party
standing up to the DPJ, 76 PERCENT answered "yes," with 17 PERCENT
saying "no."

In the breakdown of public support for political parties, the DPJ

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scored 39 PERCENT , topping its previous all-time high of 34 PERCENT
posted in a survey conducted right after the election for the House
of Councillors in 2007. Public support for the LDP was at 22 PERCENT
.

5) Poll: 71 PERCENT have high "expectations" of Hatoyama as
premier

SANKEI (Page 5) (Abridged)
September 2, 2009

Kyodo News yesterday conducted a telephone-based spot nationwide
public opinion survey, in which 71.1 PERCENT of respondents
answered "yes" when they were asked if they had high expectations
for Democratic Party of Japan (DPJ) President Yukio Hatoyama, who
will now become prime minister. The results of polls conducted in
the past and this time cannot be directly compared, but the figure
posted this time around for Hatoyama is way above the Aso cabinet's
48.6 PERCENT support rating right after its inauguration.
Meanwhile, "no" accounted for 20.2 PERCENT .

In the poll, respondents were also asked if they were happy with the
change of government. In response to this question, 49.2 PERCENT
answered "yes," with 42.3 PERCENT saying they "can't say either
way." Respondents were further asked if they were happy with the
Liberal Democratic Party's crushing defeat. To this question, 47.2
PERCENT answered that they "can't say either way," and 44.8 PERCENT
saying "yes."

In the breakdown of public support for political parties, the DPJ
stood at 41.1 PERCENT , the highest ever for the DPJ. The LDP was at
19.0 PERCENT , followed by the New Komeito party at 5.1 PERCENT ,
the Japanese Communist Party at 3.4 PERCENT , the Social Democratic
Party at 2.1 PERCENT , the Your Party at 2.4 PERCENT , the People's
New Party at 1.5 PERCENT , and the New Party Nippon at 0.1 PERCENT .
"None" accounted for 22.9 PERCENT .

6) "Prime Minister Hatoyama" to be elected on September 16;
Coalition talks begin today

YOMIURI (Top play) (Full)
September 2, 2009

The Democratic Party of Japan (DPJ) reached an agreement with the
Liberal Democratic Party (LDP) on September 1 to hold the special
Diet session to elect the prime minister on September 16. The
election of the prime minister will take place on September 16, and
DPJ President Yukio Hatoyama is expected to be elected as the 93th
prime minister of Japan. Meanwhile, Hatoyama met People's New Party
(PNP) leader Shizuka Kamei in the Diet building on September 1, and
the two agreed to begin talks for forming a coalition government
together with the Social Democratic Party (SDP). The SDP is also
expected to make an official decision to participate in the
coalition talks at a national meeting of representatives on
September 2. The three parties will begin coalition talks by their
policy officers on September 2.

Hatoyama wants to launch the coalition cabinet with the SDP and the
PNP promptly after being elected as the prime minister. He told
reporters on September 1: "I will form the cabinet right after being
elected as prime minister. It may take me one or two days,"
indicating that the new cabinet will be launched on September 16 or

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17.

The special Diet session is expected to last for four days. When the
Diet is convened, the election of the speaker and vice speaker of
the House of Representatives will be held before the election of the
prime minister. A DPJ member will be elected as speaker of the Lower
House for the first time in history.

DPJ Policy Research Committee Chairman Masayuki Naoshima and the
policy officers of the SDP and PNP will start discussions on forming
a coalition government based on the "common policies" they agreed
upon before the official campaign started for the recent Lower House
election. They will exchange views on foreign and security policies,
which were not included in the "common policies."

At an executive meeting on September 1, the SDP decided to demand
from the DPJ the creation of a "ruling parties' liaison council"
(tentative name) as a venue for prior consultations among the ruling
parties on matters to be taken up at cabinet meetings.

However, Hatoyama said at his meeting with Kamei on September 1
that: "We will avoid dual policymaking by the government and the
party as much as possible. I would like the decisions to be made by
the government," indicating a negative view on setting up a prior
consultation body of the ruling parties.

The LDP had wanted to hold the special Diet session on September 15,
but a decision to convene the Diet on September 16 was made after a
meeting between LDP Diet Affairs Committee Chairman Tadamori Oshima
and his DPJ counterpart Kenji Yamaoka.

7) New testimony from former senior government official: Secret
nuclear agreement still in force

TOKYO SHIMBUN (Page 3) (Abridged)
September 2, 2009

In connection with the question of the secret nuclear agreement
between Japan and the U.S. which allows U.S. military vessels
carrying nuclear weapons to pass through Japanese waters and call on
Japanese ports, a former senior government official who was involved
with crafting foreign policy at the Prime Minister's Official
Residence (Kantei) admitted the existence of the secret accord on
September 1. He further stated: "Inasmuch as Japan is protected by
the 'nuclear umbrella,' it is quite natural that there is some
arrangement (on allowing passage and port calls)." He further said
that "(the secret accord) has not been killed (by Japan and the
U.S.)," indicating his view that the "minutes of the secret
discussions" document that the secret agreement is still in force,
diplomatically speaking.

This former official spoke to Kyodo News on condition of anonymity.

8) Masuzoe will not run in LDP presidential race

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

Health, Labor, and Welfare Minister Yoichi Masuzoe met yesterday
evening with former Prime Minister Yoshiro Mori, a member of the
Liberal Democratic Party (LDP), to inform him that he does not
intend to run in the Sept. 28 LDP presidential election to choose a

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successor to Prime Minister Taro Aso (LDP president). The official
campaign for the presidential race will kick off on Sept. 18.
Masuzoe told Mori: "Although I have served as a member of the Abe,
Fukuda, and Aso cabinets, I was unable to raise the public support
rating for these cabinets. I keenly sense my responsibility for
that. So, I cannot run for the presidency." Mori accepted this
explanation. Due to Masuzoe's popularity, he was great in demand to
give speeches supporting LDP candidates in Sunday's House of
Representatives election. As a result, many LDP members had been
calling on him to run in the party leadership race.

9) Foreign Ministry unable to proceed in arranging the new prime
minister's visit to U.S.

YOMIURI (Page 3) (Excerpt)
September 2, 2009

Although it is expected that a Japan-U.S. summit between the new
prime minister and U.S. President Barack Obama will be held during
the prime minister's trip to the United States, the Ministry of
Foreign Affairs has been unable to coordinate plans. Also regarding
arrangements for a Japan-U.S. foreign ministerial between the new
foreign ministry and Secretary of State Hillary Clinton, a senior
MOFA official said: "Due to the U.S. side's reasons, there is not
much time left at this point." In addition, if the new
administration greatly increases the number of secretaries to the
prime minister and Prime Minister's Official Residence (Kantei)
staff, the selection of members accompanying the prime minister to
the U.S. will become an issue.

10) Poll: 71 PERCENT pin hopes on Hatoyama as prime minister, 42
PERCENT reserve reply

TOKYO SHIMBUN (Page 1) (Full)
September 9, 2009

In a Kyodo nationwide poll, 71.1 PERCENT replied that they pin
hopes on Democratic Party of Japan (DPJ) President Yukio Hatoyama as
new prime minister. This figure is far larger than the support rate
of 48.6 PERCENT immediately after Prime Minister Taro Aso launched
his cabinet in September of last year, indicating high expectations
for the new administration. Those who said they did not expect much
of Hatoyama accounted for 20.2 PERCENT .

In the telephone survey conducted from Aug. 31 through Sept. 1, 49.2
PERCENT said they welcomed the change of government, while 42.3
PERCENT replied that they could not say either way. Regarding the
Liberal Democratic Party's (LDP) historic defeat, 47.2 PERCENT of
respondents said they could not say either way, while 44.8 PERCENT
said it was good. This result reveals that many people, while having
high expectations for Hatoyama, intend to examine the new
administration's handling of state affairs in a cool-headed manner.

Concerning political parties' support rates, support for the DPJ
skyrocketed to a record high of 41.1 PERCENT , exceeding 19.0
PERCENT for the LDP. The rate of the New Komeito stood at 5.1
PERCENT , followed by the Japanese Communist Party with 3.4 PERCENT
; the Social Democratic Party with 2.1 PERCENT ; the Your Party with
2.4 PERCENT ; the People's New Party with 1.5 PERCENT ; the New
Party Japan with 0.1 PERCENT . Those who said they did not support
any political party made up 22.9 PERCENT . The support rate for the
Aso cabinet was 14.2 PERCENT , while non-support rate was 75.3

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PERCENT .

When asked about what tasks they want the Hatoyama cabinet to tackle
on a priority basis (more than one answer acceptable), 40.2 PERCENT
chose economic and job-market revitalization, followed by 39.7
PERCENT citing administrative and fiscal reforms such as
eliminating wasteful spending of taxpayers' money; and 35.2 PERCENT
calling for reforms of such social security systems such as the
pension system.

Asked about what qualities they expect the new prime minister to
demonstrate, 26.6 PERCENT picked explanation capability, followed
by 24.9 PERCENT seeking common sense; 17.6 PERCENT choosing
leadership; 13.3 PERCENT preferring sincerity and modesty; and 12.0
PERCENT for political ethics and cleanness.

Asked who would be desirable as the successor to outgoing Prime
Minister Taro Aso (LDP president), Health, Labor and Welfare
Minister Yoichi Masuzoe was picked by 29.1 PERCENT of respondents,
followed by Deputy Secretary General Nobuteru Ishihara by 12.2
PERCENT .

11) DPJ to freeze over 1 trillion yen in budget funds in revising
the fiscal 2009 extra budget

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

The Democratic Party of Japan (DPJ) on September 1 decided to freeze
more than 1 trillion yen out of 4.3 trillion yen earmarked for 46
funds incorporated in the fiscal 2009 extra budget. The aim is to
put on hold projects that are expected to produce weak stimulus
effects and funnel the squeezed funds to fund policies it included
in its policy manifesto for the Lower House election, including
child allowances and an income compensation system for farm
households.

The process will likely result in the submission of a revised second
fiscal 2009 extra budget to the fall Diet session, following cabinet
ministers' ordering their ministries to suspend the projects subject
to the freeze plan after the launch of the new administration.

Items subject to the freeze plan include emergency human resources
development, the employment assistance fund costing roughly 700
billion yen, and the farmland- integration-promotion fund costing
approximately 300 billion yen. The employment assistance fund aims
to provide vocational training to those without employment
insurance. The DPJ made an issue of the fact that the Japan
Vocational Ability Development Association under the jurisdiction of
the Ministry of Health, Labor and Welfare (MHLW), to which the work
has been entrusted, is an organization that accepts retired MHLW
officials.

The farmland-integration-promotion fund is designed to pay 15,000
yen per 10 ares to old farmers and small-scale farm households who
are leasing land. The aim is to help enthusiastic farmers to have
extensive farmland. However, the DPJ has determined that assisting
landlords would have little effect, because there is a shortage of
farmers who want to rent farmland.

12) Fuji Heavy Industries to ask Defense Ministry for 50 billion yen
in compensation for cancellation of helicopter purchase plan

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ASAHI (Page 7) (Excerpts)
September 2, 2009

Fuji Heavy Industries Ltd. decided yesterday to submit to the
Defense Ministry a letter calling for almost 50 million yen in
compensation after the ministry canceled a plan to buy fighter
helicopters from the company.

The ministry decided in 2001 to purchase 62 helicopters - the AH64D
Apache Longbow. Fuji Heavy Industries and a parts manufacture
affiliated with the company paid more than 40 billion yen to Boeing
Co. in licensing and other fees. The companies were planning to
recover the fees from the government by dividing the total amount of
fees they paid by 62 and adding the calculated amount to each unit
price. But the Defense Ministry canceled the plan after ordering 10
helicopters during a period between 2002 and 2007. As a result, the
companies were unable to recover the fees. Reportedly, the ministry
canceled the plan because of growing criticism of the high unit
price of approximately 8 billion yen.

13) DPJ aims to submit package bill to create scheme for
politically-led government

NIKKEI (Top Play) (Excerpts)
September 2, 2009

The Democratic Party of Japan (DPJ) has started coordination to
submit a bill to create a scheme for politically-led government
during an extraordinary Diet session likely to be convened in
October. The party plans to lump all of its proposals to that end
into a single bill. The proposals include those to establish a
national strategy bureau tasked with drawing up basic policies on
budgetary compilation and diplomacy and to install 100 or so
legislators in government agencies. President Yukio Hatoyama will
launch his government right after he is voted in as prime minister
in a special Diet session and lay the groundwork for these measures
to be implemented by existing ordinances or revising relevant laws.

The DPJ promised in its campaign manifesto to terminate the central
government's dependence on bureaucrats. To that end, the party has
judged it necessary to set up legally endorsed powerful
organizations. The party intends to create mechanisms under the
prime minister's instruction or ordinances until relevant laws are
revised and prepare a full-scale scheme in the extraordinary Diet
session.

The party plans to include in the envisioned bill a bill revising
the Diet Law to create a system to have lawmakers serve as advisers
to cabinet ministers and a bill revising the Cabinet Office
Establishment Law to abolish the Council on Economic and Fiscal
Policy. The package bill will also include bills to establish the
national strategy bureau and an administrative reform council to
root out wasteful spending. There is a possibility that legislation
for national administrative organizations and a bill revising the
National Public Service Law will also be included in the package
bill.

14) Poll: 68 PERCENT happy with DPJ's landslide victory

YOMIURI (Page 1) (Abridged slightly)
September 2, 2009

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Sixty-eight percent of people said they are pleased with the results
of Sunday's House of Representatives election, in which the
Democratic Party of Japan (DPJ) achieved a landslide victory and the
Liberal Democratic Party (LDP) suffered a crushing defeat, according
to a Yomiuri Shimbun telephone-based survey conducted on Monday and
Tuesday. The nationwide survey also revealed that 71 PERCENT of
respondents have high expectations of the new government to be led
by the DPJ. At the same time, the poll also found that only 54
PERCENT think the DPJ will be able to implement the policies
outlined in its manifesto (campaign pledges), while 44 PERCENT said
they think it will be impossible to do so, indicating that the
public are viewing the new government with a mixture of hope and
concern.

A sense of expectation was also reflected in support rates for
political parties, with the figure for the DPJ reaching a record
high of 46.6 PERCENT , a major increase from the 36 PERCENT market
in the previous survey conducted on Aug. 25-27. The rate of support
for the LDP marked 23.5 PERCENT , almost the same as the 23.4
PERCENT recorded in the previous survey.

Asked why the DPJ was able to make major gains in the general
election, 46 PERCENT said it was due to "dissatisfaction with Prime
Minister Taro Aso and the LDP," while 37 PERCENT cited expectations
for a change of government. In addition, only 10 PERCENT gave
positive assessments to the DPJ manifesto and 3 PERCENT expressed
hopes for DPJ President Yukio Hatoyama.

Forty-eight percent said they are happy with the planned three-party
coalition of the DPJ, the Social Democratic Party, and the People's
New Party, while 39 PERCENT said they are not.

Further, 73 PERCENT said they are not convinced with Hatoyama's
explanation that his secretary independently decided to record
fictitious individual donations in the funds report prepared by
Hatoyama's fund-management organization, while only 15 PERCENT said
they are convinced with his explanation.

15) MSDF destroyer returns to its base

NIKKEI (Page 38) (Excerpts)
September 2, 2009

The Maritime Self-Defense Force's (MSDF) destroyer Akebono (4,550
tons), which was on the mission of refueling foreign vessels in the
Indian Ocean under the new Antiterrorism Special Measures Law,
returned to the MSDF Kure Base in Hiroshima Prefecture yesterday.

Democratic Party of Japan (DPJ) President Yukio Hatoyama has
announced a policy not to extend the refueling mission in the Indian
Ocean after the law's expiration next January.

16) U.S. makes clear that it will not renegotiate Futenma plan in
bid to warn of DPJ's stance toward U.S.

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

There are already indications that the coordination of views between
the Japanese and U.S. governments on the realignment of U.S. forces
in Japan will encounter complications. The Democratic Party of Japan

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(DPJ) specified in its manifesto (campaign pledges) a review of the
Japan-U.S. agreement on U.S. force realignment. The U.S. State
Department, however, presented a policy of not responding to a call
for a review. After becoming the new prime minister, DPJ President
Yukio Hatoyama is scheduled to visit the United States to coincide
with the UN General Assembly and other events and hold talks with
President Barack Obama. If Hatoyama strongly requests a review, that
might have an impact on Japan-U.S. relations.

The DPJ manifesto says that the party will "move in the direction of
re-examining the realignment of U.S. military forces in Japan and
the role of U.S. military bases in Japan." During the election
campaign, Hatoyama emphasized the policy of giving priority to
building relations of trust between Japan and the United States.
Meanwhile, a DPJ executive described yesterday the U.S. indication
not to review the matter a "pickoff." He also indicated that his
party will continue seeking a review, saying: "Thinking changes when
the administration changes. Talks must be held."

State Department Spokesman Ian Kelly said at a press conference that
the United States has no intention of renegotiating the planned
relocation of the U.S. Marine Corps' Futenma Air Station (in
Ginowan, Okinawa Prefecture) and other matters with the Japanese
government. Washington is expected to strongly set forth its wishes
through the Japan-U.S. summit planned for late-September and other
events.

17) U.S. State Department: "No renegotiations" on Futenma

MAINICHI (Page 3) (Full)
September 2, 2009

(North America bureau)

Following the Democratic Party of Japan's (DPJ) victory in Sunday's
House of Representatives election, U.S. State Department Spokesman
Kelly stated on renegotiations on the realignment of U.S. Forces
Japan, which the DPJ has called for:

"The United States has no intention to renegotiate with the Japanese
government on the U.S. Marine Corps' Futenma Air Station relocation
plan, as well as on the relocation of (Marines in Okinawa) to
Guam."

Regarding the Maritime Self-Defense Force's refueling operations in
the Indian Ocean, Kelly said: "Japan has played a crucial role,"
calling for the continuation of the MSDF's mission.

Kelly's statement appears to have been aimed at seeking to constrain
the new Japanese government by stressing the U.S. government's
position before the inauguration of a DPJ-led administration.

18) Yomiuri poll: 66 percent say, "The LDP can win back the reins of
government," while 19 percent reply, "It cannot"

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

According to a telephone-based nationwide spot opinion poll carried
out by The Yomiuri Shimbun on Lower House election returns, 66
percent of respondents said that they believe the Liberal Democratic
Party (LDP) can win back the reins of government, extensively

TOKYO 00002018 011 OF 012


topping 19 percent, who said that it would be impossible to do so.
The positive reply was given even by 62 percent of Democratic Party
of Japan (DPJ) supporters and 61 percent of non-affiliated pollees.
It appears that many respondents view that a change of government
between the two major parties - the LDP and the DPJ - will occur
with the LDP regaining party strength eventually.

As reasons the DPJ has lost a great number of seats,
"dissatisfaction with policies and track record" was cited by the
largest proportion at 32 percent, followed by "decline in the
capability to run the government" at 27 percent, "rejection of the
LDP" at 19 percent, and "dissatisfaction with Prime Minister Aso" at
17 PERCENT .

To a question on how pollees expect the LDP to respond to a new
DPJ-led administration, the largest proportion of 77 percent said,
"The LDP should cooperate with the administration, depending on the
details of policies," followed by 14 percent, who said, "It should
totally cooperate with the DPJ," and 5 percent who replied, "It
should absolutely confront the LDP."

19) Finance Minister Yosano to abstain from G-20: Japan's financial
diplomacy to suffer defeat by default

YOMIURI (Page 9) (Full)
September 2, 2009

Finance Minister Kaoru Yosano will not attend the meeting of finance
ministers and central bank governors from the Group of Twenty
nations (G-20) to be held on September 4-5 in London. Senior Vice
Finance Minister Wataru Takeshita will attend the meeting in his
place. Japan will face the G-20 without the attendance of its
financial chief, although it is true that the timing of the meeting
is awkward because it will take place amid the process of the change
of government in Japan. The G-20 is a prelude to the financial
summit to be held later in the month, a venue where DPJ President
Hatoyama will make his debut on the international financial stage.
There is a growing view in the market that the DPJ administration's
financial diplomacy will fall behind other countries as a result of
the absence.

At a press conference on September 1, Yosano cited his health
condition as a reason for skipping the G-20. However, it appears
that his decision was affected by the fact that even if he attends
the meeting, he would not be able to exert influence because he is
bound to resign soon due to the inauguration of the Hatoyama
administration.

The G-20 this time is a key preparatory meeting for the financial
summit to be held in Pittsburgh later this month.

Discussions on such key issues as strengthening regulations to
prevent a recurrence of the financial crisis and a revision of the
international accounting standards, which depending on the outcome
could have a major impact on Japan's financial sector, are expected
to be pursued.

The DPJ received a briefing on the G-20 from a senior Finance
Ministry official on Sept. 1. However, some ministry officials said
that the absence of a minister who is trusted by the international
community will have a major impact. Attention is focused on whether
Japan can produce sufficient results at the G-20, which will pave

TOKYO 00002018 012 OF 012


the way for the financial summit.

ROOS

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