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Cablegate: Japanese Morning Press Highlights 09/03/09

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UNCLAS SECTION 01 OF 11 TOKYO 002030

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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 09/03/09

Index:
1) Editorials
2) Prime Minister's daily schedule (Nikkei)
3) DPJ President Hatoyama's Schedule (Nikkei)

Foreign relations
4) Obama and Hatoyama affirm Japan-U.S. alliance during telephone
conference (Nikkei)
5) -Hatoyama says "Japan-U.S. relationship is cornerstone" during
telephone conference with President Obama: (Asahi)
6) -Hatoyama and Obama agree during first telephone conversation
that Japan-U.S. alliance is cornerstone (Yomiuri)
7) DPJ begins coalition talks with SDP, PNP, proposes "equal
Japan-U.S. relationship" in draft policy agreement (Yomiuri)
8) LDP-New Komeito administration requested U.S. strengthen "nuclear
umbrella" (Akahata)

Politics
9) DPJ, SDP, and PNP put off foreign policy and security at policy
meeting; DPJ puts coordination team on hold (Mainichi)
10) DPJ, SDP, and PNP hold first conference on forming a coalition;
aim to reach agreement this week (Asahi)
11) Gist of the rough draft of the coalition government's accord
(Nikkei)

12) DPJ presents policy draft at three-party coalition conference;
SDP requests coordination team (Tokyo Shimbun)
13) DPJ Transition team: Okada, foreign affairs; Naoshima, finance.
Will they assume these portfolios in the cabinet? (Sankei)

Defense & security
14) - Foreign policy and security flashpoints in coalition; DPJ's
proposals full of vague language (Yomiuri)

Economy
15) Japan Federation of Economic Organizations asks DPJ to oppose
target of a 25 PERCENT reduction in greenhouse gases during
international negotiations (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
DPJ, SDP, PNP begin coalition talks, confirm common policies, aiming
at agreement this week

Mainichi:
DPJ proposal on toll free expressways: Ministry of Land,
Infrastructure, Transport, and Tourism seeking ways to collect tolls
for some expressways

Yomiuri:
Hatoyama, Obama hold first teleconference, agree on "Japan-U.S.
alliance as cornerstone"

Nikkei:
Dainippon Sumitomo Pharma acquires U.S. pharmaceutical manufacturer
in 250 billion yen takeover bid, to make inroads into U.S. market

Sankei:
Bill to pay out "child allowances" from June 2010, eyeing Upper

TOKYO 00002030 002 OF 011


House election, to pass extraordinary Diet session

Tokyo Shimbun:
DPJ presents draft policy proposals at three-party coalition talks;
SDP demands coordination body

Akahata:
U.S. official testifies that LDP-New Komeito administration asked
U.S. to strengthen "nuclear umbrella," "upgrade weapon capability"

2) EDITORIALS

Asahi:
(1) Three-party coalition talks: Do not leave source of future
trouble with ambiguous agreement
(2) Launch of Consumer Affairs Agency: New administration should
create a strong organization

Mainichi:
(1) Launch of Consumer Affairs Agency: Appoint a minister with
authority
(2) New influenza countermeasures: Delay due to administration
transition must be avoided

Yomiuri:
(1) Coalition government talks: Pragmatic security policies are
indispensable
(2) Launch of Consumer Affairs Agency: End the confusion, start
normal functioning at early date

Nikkei:
(1) DPJ and ruling parties should work for smooth transfer of power
(2) Prevent North Korea-Iran nuclear cooperation

Sankei:
(1) International conferences: Can national interest be protected
without participation of cabinet ministers?
(2) Coalition government talks: DPJ bears serious governing
responsibility

Tokyo Shimbun:
(1) Transfer of power: Set rules to avoid political vacuum
(2) New influenza: Implement uninterrupted countermeasures

Akahata:
(1) Disaster prevention will be too late after Tokai earthquake
occurs

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 2

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

08:03 Took a walk around the official residence.
10:31 Met with Bhutan Prime Minister Thinley at the Kantei.
11:16 Award ceremony for distinguished service in disaster
preparedness, followed by a photo session.
12:35 Chief Cabinet Secretary Kawamura.
13:26 Met with State Minister for Science and Technology Policy and
Lawmaker Masuo Aizawa of the Council for Science and Technology

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Council, and Assistant Deputy Chief Cabinet Secretary Fukuda. Then
met with incoming and outgoing Vice Defense Minister Nakae and
Masuda.
15:27 Met with former prime minister Mori.
17:01 Met with Secretary General Hosoda, Policy Research Council
Chairman Hori and General Council Chairman Sasagawa. Kawamura was
present and stayed behind.
18:06 Met with Deputy Chief Cabinet Secretary Uruma.
19:05 Dined with members of his support group at Tawashita, a
restaurant in Higashi-Azabu.
22:23 Arrived at the official residence.

4) DPJ President Hatoyama's Schedule

September 3

09:06: Left his residence in Denenchofu
09:53: Met with Chairman Tanaka of the Tokyo Metropolitan Assembly
11:52: Suichuka, a restaurant in Hirakawa-cho
12:19: Arrived at the party headquarters
14:00: Meeting of the Central Executive of the Japanese Trade Union
Confederation at Raporu Nikkyousai in Yamabuki-cho. Secretary
General Okada also attended.
15:13: Met with Upper House member Yoshihiro Kawakami, followed by
Lower House member Kenko Matsumoto.
16:20: Met with DPJ abduction issue measures headquarters chief
Nakai, followed by Deputy President Kan.
17:12: Met with Social Democratic Party leader Fukushima. SDP
Secretary General Shigeno and DPJ Executive Office chief Hirano were
present.
17:30: Arrived at the party headquarters.
19:40: Arrived at his residence.
22:49: Arrived at the party headquarters.

September 3

00:09: Telephone conversation with U.S. President Obama.
01:05: Arrived at his residence.

5) Hatoyama, Obama agree to firmly maintain bilateral alliance

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

Democratic Party of Japan (DPJ) President Yukio Hatoyama held a
telephone conversation with U.S. President Obama for about 10
minutes early this morning. Hatoyama and Obama agreed that it would
be important to firmly maintain the bilateral alliance between Japan
and the United States. Hatoyama clarified his intention to attach
importance to bilateral relations between the two countries, saying,
"We would like to build a constructive, future-oriented relationship
between our two countries."

Obama called Hatoyama to congratulate him on the DPJ's victory in
the recent election for the House of Representatives. Hatoyama
quoted Obama as saying, "The two democratic parties won on both
sides of the ocean."

Hatoyama expressed his gratitude to Obama, saying: "This is the
first time for Japan to undergo a change of government through the
democratic process. It's thanks to you. Change needs courage, but
you and the American people encouraged me."

TOKYO 00002030 004 OF 011

Hatoyama also told Obama that he would like to meet with Obama when
he addresses the United Nations General Assembly in New York and
attends a Group of Twenty (G-20) summit in Pittsburgh.

6) In telephone conversation, Hatoyama tells Obama that Japan-U.S.
alliance is cornerstone of Japan's diplomacy

ASAHI (Page 1) (Full)
September 3, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama talked by
telephone for about 12 minutes with U.S. President Barack Obama
early in the morning on Sept. 3. According to Hatoyama, he told
Obama: "The Japan-U.S. alliance is the cornerstone of Japan's
diplomacy. I want to build a constructive, future-oriented
Japan-U.S. relationship." He also told Obama:

"You have exercised your initiative in dealing with climate change
and nuclear disarmament issues. Our party feels the same way as you.
I also want to work together in resolving economic issues."

Hatoyama said that they agreed to develop the Japan-U.S.
relationship while keeping pace on these issues.

The telephone call was requested by the U.S. side. According to
Hatoyama, Obama congratulated the DPJ on its victory in the recent
House of Representatives election, and Hatoyama responded:

"Thanks to your victory (in the presidential election), our party
managed to win the general election. Bringing about change requires
courage. The American people and the President gave the Japanese
people courage (to change the government)."

Moreover, referring in the telephone conversation to his planned
visit to the United States to attend such international conferences
as the UN General Assembly, Hatoyama told Obama: "I hope to meet
with you as soon as possible," conveying his hope for an early
summit between the two.

7) Hatoyama, Obama agree on Japan-U.S. alliance as "cornerstone" in
first teleconference

YOMIURI (Top play) (Full)
September 3, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama had his
first telephone conversation with U.S. President Barack Obama for
about 10 minutes at the party headquarters in the early hours of
September 3. The two leaders agreed the Japan-U.S. alliance is the
cornerstone and on cooperation in such issues as climate change,
eradication of nuclear weapons, and economic stimulation measures
after the launch of the new Japanese administration.

This teleconference was proposed by the U.S. side to extend the
President's congratulations to Hatoyama for his victory in the
recent House of Representatives election.

The President noted that "the Democratic Party won on both sides of
the ocean" and conveyed his congratulations on the DPJ's landslide
victory following his own victory in the presidential election.


TOKYO 00002030 005 OF 011


"The DPJ won thanks to President Obama," responded Hatoyama. "Japan
has achieved a change of administration through a democratic process
for the first time. The President gave the Japanese people courage
to change."

Hatoyama added, "We would like to build a constructive
future-oriented Japan-U.S. relationship. The President is exercising
leadership on the issues of climate change and elimination of
nuclear weapons. We are a party with the same thinking. We would
also like to cooperate closely on economic issues in order to
improve (the economic situation)."

In response to the President's proposal to strengthen bilateral
relations, Hatoyama told Obama "we also regard the Japan-U.S.
alliance as the cornerstone." He added, "I would like to attend the
financial summit and the UN General Assembly if possible and would
like to meet with you at an early date.

After the teleconference, Hatoyama told reporters the two leaders
had "confirmed that the bilateral alliance is the cornerstone." No
Ministry of Foreign Affairs official was present during the
conversation.

After being elected as prime minister on September 16, Hatoyama is
expected to visit the U.S. in late September to attend the UN
General Assembly and other international conferences. He intends to
meet the President and build a relationship of trust with him during
this trip.

8) DPJ begins coalition talks with SDP, PNP, proposes "equal
Japan-U.S. relationship" in draft policy agreement

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

On September 2, the Democratic Party of Japan (DPJ), the Social
Democratic Party (SDP), and the People's New Party (PNP) began
negotiations for forming a coalition government. They agreed to
draft soon an agreement on forming the coalition. The agreement will
contain provisions for countermeasures against the new influenza and
timely disaster prevention measures, in addition to the common
policies compiled by the three parties for the House of
Representatives election in August. The three parties aim to sign
the agreement before DPJ President Yukio Hatoyama is elected as
prime minister at the special Diet session on September 16. The key
issue will be how to handle foreign and security policies.

DPJ Policy Research Committee Chairman Masayuki Naoshima presented a
document entitled "(draft) policy agreement for establishing a
coalition government" at his meeting in the Diet building with SDP
and PNP policy officers Tomoko Abe and Shozaburo Jimi. The draft
agreement contains two additional provisions on new influenza
countermeasures and disaster prevention in addition to the six
previous common policies. As for foreign and security policies, the
draft advocates "building a close and equal Japan-U.S. alliance
relationship " and "exerting every effort to make North Korea halt
its development of nuclear weapons and missiles and to seek a
solution to the abduction issue."

The SDP and the PNP agreed to the provisions on new influenza and
disaster prevention. However, the SDP asserted that a solution to
the problem of U.S. military bases in Japan and the codification of

TOKYO 00002030 006 OF 011


the three non-nuclear principles should be included. The three
policy officers will resume discussions on September 3.

9) LDP-New Komeito administration asked U.S. to strengthen nuclear
umbrella, according to congressional testimony by U.S. official in
charge

AKAHATA (Top play) (Abridged slightly)
September 3, 2009

Japanese government representatives under the LDP-New Komeito
administration asked the United States to strengthen its nuclear
umbrella by presenting specific capabilities to a congressional
panel to assess the U.S. nuclear strategy, such as weapons that can
penetrate hard targets with minimum collateral damage. This was
revealed in a testimony by John S. Foster, 86, the panel's chair,
before the Senate Committee on Armed Services on May 7.

Following the U.S. Obama administration's declaration to aim for a
world without nuclear weapons, momentum is gathering in the
international community toward the elimination of nuclear weapons.
Under such circumstances, attention is focused on how the next
administration led by the Democratic Party of Japan (DPJ) expected
to be launched on Sept. 16 will modify such a stance and address the
question of the nuclear umbrella.

Foster indicated that some allies expressed concerns during the
panel's meeting. He also made the following testimony on Japan:

"In particular, the representatives from Japan have described in
some detail the kind of capabilities that they believe the U.S.
nuclear umbrella should possess and so they have talked about
capabilities that are - that can be stealthy and they can be
transparent and they can be prompt, and then they would like
capabilities that can penetrate hard targets with minimum collateral
damage"

He also said, "Those are not the characteristics that we currently
deploy," adding that in order to respond to concerns of the allies,
the question is whether or not organizations manufacturing and
developing nuclear weapons can conduct nuclear tests, which are now
suspended, for developing new types of nuclear weapons.

10) DPJ, coalition partners to forgo talks on foreign, security
policies

MAINICHI (Page 1) (Abridged)
September 3, 2009

The Democratic Party of Japan (DPJ) yesterday started policy talks
with the Social Democratic Party of Japan (SDP) and the People's New
Party (PNP) in order to launch a coalition government. The three
parties concurred on their common policies, with the exception of
foreign and security policies. They have put off reaching a
conclusion on foreign affairs and security issues. The SDP proposed
setting up a consultative body to coordinate the ruling parties'
policies. However, the DPJ withheld its answer. The three parties
will resume their policy talks today, aiming to reach an agreement
tomorrow for their coalition.

The three parties held a meeting of their policy chiefs in the Diet
yesterday afternoon, with the participation of Naoyuki Naoshima from

TOKYO 00002030 007 OF 011


the DPJ, Tomoko Abe from the SDP, and Shozaburo Jimi from the PNP.

On foreign and security policies, Abe sought to revise the
Japan-U.S. Status of Forces Agreement. In addition, she also called
for legislating Japan's self-imposed three nonnuclear principles of
not producing, possessing, or allowing nuclear weapons into the
country. The three parties have forgone their conclusion. Abe
proposed setting up a consultative body for the ruling parties to
discuss policies. However, Naoshima went no further than to say,
"This is a matter to be discussed at the level of DPJ President
Yukio Hatoyama and Secretary General Katsuya Okada."

In the area of foreign relations and security issues, the SDP
clarified its stance against the Maritime Self-Defense Force's
ongoing antipiracy mission in waters off the eastern African coast
of Somalia. The DPJ has accepted the MSDF's antipiracy mission there
without calling for its immediate withdrawal. Given this, the three
parties will probably encounter twists and turns in their policy
talks over these issues.

11) First DPJ-SDP-PNP talks held on establishing coalition
government; Aim to reach agreement this week; Common policies
confirmed

ASAHI (Top play) (Excerpts)
September 3, 2009

The Democratic Party of Japan (DPJ), the Social Democratic Party
(SDP), and the People's New Party (PNP) held their first policy
meeting in the Diet building yesterday evening on launching a
tripartite coalition government. They agreed to address the new
influenza and heavy rains in addition to a set of common policies
that was formulated before the (Aug. 30) general election. A
solution to foreign and security policies on which the three parties
are split has been postponed. Representatives of the three parties
will meet again this evening with the aim of reaching an agreement
before the end of the week.

The common policies include a policy of maintaining the current
consumption tax rate until the next general election, the abolition
of the medical insurance system for people 75 and older, and the
creation of a child-rearing allowance. The three parties intend to
reach a coalition government agreement that covers foreign and
security policies, which are not specified in the common policies.
The establishment of a policy coordination body among the three
ruling parties, a strong proposal by the SDP, is also a point at
issue.

Yesterday's talks were attended by DPJ Policy Research Committee
Chairman Masayuki Naoshima, SDP policy board head Tomoko Abe, and
PNP policy board head Shozaburo Jimi. In the session, the DPJ
presented a draft plan including five security-policy items: (1)
equal Japan-U.S. relations; (2) building an East Asia Community; (3)
elimination of nuclear weapons; (4) a solution to the abduction
issue, and (5) efforts to curb global warming. The SDP called for a
reference to a revision of the Status of Forces Agreement. The DPJ
will present a new plan. The PNP sought a drastic review of the
postal businesses without fail.

The SDP remains unyielding about setting up a policy coordination
organization. The SDP apparently intends to simply confirm policies
in outline without going into the controversial details to make it

TOKYO 00002030 008 OF 011


easier for its views to be reflected in common policies when tough
issues crop up after joining the new administration.

But coordination of policies by the ruling parties outside the
cabinet might run counter to the DPJ's goal of a unified
decision-making system by the government and the ruling parties. As
such, Naoshima stopped short of replying by simply saying that he
will consult with the party president and secretary general.

12) Gist of draft agreement on coalition government

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

Q Implement measures against new strains of flu
Q Promptly deal with damage caused by torrential rains, earthquakes
and climate change
Q Build a close and equal alliance relationship with the U.S. by
establishing a proactive diplomatic strategy
Q Aim to build an East Asian community
Q Stop North Korea from developing nuclear arms and missiles and
exert all-out efforts to settle the abduction issue
Q Spearhead the movement to eliminate nuclear weapons

The following are the same as the common policies the three parties
- the Democratic Party of Japan, the Social Democratic Party and the
People's New Party - compiled on August 14 for the Lower House
election.

Q Do not raise the sales tax while in power
Q Take a second look at the four separate postal services
Q Set up child allowances
Q Scrap the current policy of curbing growth in social security
spending to 22 billion yen
Q Adopt a pension system combining a contribute-as-you-earn system
and a minimum guarantee system.
Q Ban, in principle, a registration-based worker dispatching service
system and dispatching workers to manufacturing firms.
Q Set up a job seekers assistance system for people in vocational
training.
Q Raise the minimum wage level
Q Substantively transfer administrative authorities to local
governments by legislating talks between the central and local
governments
Q Compensate individual farm households' incomes

13) Three-party coalition talks: DPJ presents draft policy
proposals; SDP demands coordination body

TOKHYO SHIMBUN (Top Play) (Full)
September 3, 2009

The Democratic Party of Japan (DPJ), the Social Democratic Party
(SDP), and the People's New Party (PNP) on September 2 formally
entered into talks for the establishment of a coalition government.
The DPJ presented a draft policy agreement that included five points
relating to security and foreign relations, among which were a close
and equal relationship of alliance between Japan and the U.S.,
building an East Asian community, and spearheading the movement to
abolish nuclear weapons to eliminate threats of terrorism. The SDP
and the PNP took the proposals to their headquarters to be ready for
the second-round meeting to be held on the evening of the 3rd.

TOKYO 00002030 009 OF 011

During the meeting the SDP called for establishing a coordination
body involving the three parties. The PNP is expected to support the
proposal. Foreign relations and security policies, over which the
SDP and the DPJ are at odds, and how to coordinate differences in
each party's policy stances will become the focus of the coalition
talks.

DPJ President Hatoyama will launch a coalition government, following
his nomination for prime minister at the special Diet session to be
convened on the 16th. The three parties will aim to reach an
agreement before the end of the week.

The meeting brought together Masayuki Naoshima, DPJ Policy Research
Council Chairman; Tomoko Abe, the head of the SDP policy board; and
Shozaburo Jimi, the chief of the PNP policy board.

The draft proposals presented by the DPJ are based on common
policies the three parties compiled for the Lower House election,
including maintaining the present sales tax rate and a revision of
the four spun-off postal services. Newly added proposals are
measures against the spread of the new strains of flu and measures
to deal with damage caused by natural disasters, such as torrential
rains.

Although the draft does not mention refueling operations by the
Maritime Self-Defense Force in the Indian Ocean and anti-piracy
operations off Somalia, the three parties discussed foreign affairs
and security measures as well.

14) Okada, Naoshima are DPJ officials in charge of negotiations on
change of power; Will Okada be appointed as foreign minister and
Naoshima as finance minister?

SANKEI (Page 1) (Full)
September 3, 2009

The Democratic Party of Japan (DPJ) yesterday informed the
government that DPJ Secretary General Katsuya Okada and DPJ Policy
Research Committee Chairman Masayuki Naoshima are responsible
respectively for "foreign affairs" and "financial affairs" as the
persons to contact concerning negotiations for a smooth change from
the current administration to a DPJ government. DPJ President Yukio
Hatoyama will become the next prime minister on Sept. 16. All eyes
are now focused on whether Okada and Naoshima will be appointed as
foreign minister and finance minister in the Hatoyama cabinet.

Okada and Naoshima met Chief Cabinet Secretary Takeo Kawamura
yesterday at the Prime Minister's Official Residence (Kantei) and
requested that consultations be held on the transfer of power. In
the consultations, Okada will be in charge of "diplomatic schedules
and disclosure of diplomatic information" and "crisis management,"
and Naoshima will be responsible for "cooperation on the compilation
of budgets and information disclosure on the state of budget
implementation." The government side decided to ask the deputy chief
cabinet secretary for crisis management and administrative vice
foreign and finance ministers explain the situation to Okada and
Naoshima.

In the meeting, Okada handed to Kawashima a letter from Hatoyama
letter calling for a smooth change of power to Prime Minister Taro
Aso. He then asked the government to provide information on

TOKYO 00002030 010 OF 011


diplomatic schedules, measures against the H1N1 swine flu, and the
process of implementation of the supplementary budget for fiscal
2009. Kawamura then said: "We will cooperate in principle for a
smooth change of power." They agreed to launch consultations for the
transition of power. Aso on Sept. 2 instructed Kawamura to cooperate
with the DPJ.

After the meeting, Okada stated: "We have to start making
preparations immediately for a smooth change of power. We need to
grasp the present situation of the H1N1 flu, crisis management
issues, and the budgets."

DPJ President Yukio Hatoyama considers chief cabinet secretary,
foreign minister, finance minister, and minister in charge of the
National Strategy Bureau (post to be created), which draft budgets
and foreign policy, key government posts. It remains to be seen
whether Okada will serve as foreign minister and Naoshima as finance
minister.

15) Foreign, security policy potential source of future dispute in
the coalition; DPJ proposals ambiguous throughout

YOMIURI (Page 2) (Slightly abridged)
September 3, 2009

The policy consultations among the Democratic Party of Japan (DPJ),
the Social Democratic Party (SDP), and the People's New Party (PNP)
toward the formation of a coalition government addressed
countermeasures for the new influenza, disaster prevention, and
foreign and security policies, in addition to the common policies
the three parties compiled for the recent House of Representatives
election. Although the three parties are aiming at reaching an
agreement early next week, their differences in foreign and security
policies, which have been shelved so far, have emerged. It is
possible that the consultations will experience rough sailing.

Because the DPJ was criticized by the ruling parties during the
election for failing to include foreign and security policies in the
three parties' common policies, it has now (decided to do so).
"Unless the three parties can show that they agree on security
policy, which is a basic national policy, the people may feel
uneasy," explained a senior DPJ official. Therefore, the DPJ has
included foreign and security policies in the proposed coalition
agreement.

However, the DPJ's proposals contain only abstract expressions -
such as "build a close and equal Japan-U.S. relationship of
alliance," "aim for establishing an East Asian community," and "take
the lead in the eradication of nuclear arms and remove the threat of
terrorism" - that the three parties can agree to. There is no
mention of specific policies about which the DPJ and the SDP
disagree, such as the continuation of the refueling mission by the
Maritime Self-Defense Force in the Indian Ocean.

However, the SDP is poised to demand the inclusion of a solution to
the problem of U.S. military bases in Japan and the three
non-nuclear principles in its bid to demonstrate its distinctive
character. The coordination process is expected to take time.

With regard to U.S. military bases in Japan, U.S. Department of
State spokesman Ian Kelly has stated that the U.S. "has no intention
to renegotiate with the Japanese government," indicating that a

TOKYO 00002030 011 OF 011


change of plans is unacceptable. For this reason, some DPJ members
strongly believe that there should be no compromise with the SDP
that will result in constraints on Prime Minister Hatoyama when he
visits the U.S. for a meeting with U.S. President Barack Obama in
late September."

16) Nippon Keidanren asks DPJ not to make international pledge of 25
percent cut in greenhouse gas emissions

YOMIURI (Page 1) (Full)
September 3, 2009

The Japan Business Federation (Nippon Keidanren) on September 2
decided to ask the Democratic Party of Japan (DPJ) to take a
cautious stance in international talks aiming to cut greenhouse gas
emissions. It will incorporate this in a set of requests to the DPJ
to be finalized at a meeting on September 14 between the chairman
and the vice chairmen. It will also try to put pressure on the party
at the working level.

The reason Nippon Keidanren is seeking a cautious environmental
measure is that there is a growing view that DPE President Hatoyama
might refer to his party's tough emissions cut goal at a
summit-level meeting on climate change at the UN.

The DPJ adopted in its policy manifesto a goal of cutting emissions
by 25 percent by 2020, compared with the 1990 level, which is
stricter than the mid-term goal advocated by the government.

Nippon Keidanren opposed that goal, noting that such a strict goal
would have an adverse impact on economic activities. The business
federation is increasingly concerned that if Hatoyama refers to the
25 percent emissions cut at the meeting, his speech will be taken as
a virtual public pledge and Japan might have to accept
disadvantageous conditions, as a senior Nippon Keidanren member
said.

ROOS

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