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Cablegate: Daily Summary of Japanese Press 09/08/09

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UNCLAS SECTION 01 OF 09 TOKYO 002066

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WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
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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: DAILY SUMMARY OF JAPANESE PRESS 09/08/09

INDEX:

(1) U.S. Ambassador to Japan Roos calls on Kanagawa governor,
exchanges views on Japan-U.S. relations after change of government
(Mainichi)

(2) Study of DPJ (Part 3): "Mavericks" dominate DPJ supporters
(Asahi)

(3) Study of DPJ (4th and final part): Direct payouts expanded
gradually; Is it possible to narrow the gap with public opinion?
(Asahi)

(4) IT-assisted agricultural efficiency promotion (Nikkei)

(5) Change of government (Part 4 - Conclusion): Futenma relocation
plan remains deadlocked with no hint of a solution in sight (Nikkei)


(6) U.S. serviceman rearrested on suspicion of stealing car
(Yomiuri)

(7) Prime Minister's schedule, September 7 (Nikkei)

ARTICLES:

(1) U.S. Ambassador to Japan Roos calls on Kanagawa governor,
exchanges views on Japan-U.S. relations after change of government

MAINICHI ONLINE Kanagawa Edition (Full)
September 8, 2009

Tsuyoshi Yamaemori

U.S. Ambassador to Japan John Roos, who assumed office in August,
called on Kanagawa Governor Shigefumi Matsuzawa at the Kanagawa
prefectural government office on Sept. 7.

After exchanging greetings, Matsuzawa briefly touched on his
attendance at Barack Obama's inauguration as U.S. President in
January and other events. The two exchanged views on base issues and
Japan-U.S. relations after the change of government (in Japan).

After the meeting, Roos said: "We discussed matters constructively
we are going to address jointly. I am looking forward to building a
constructive relationship with you on a personal level as well."
Meanwhile, Matsuzawa said: "The Ambassador called on me first, the
governor of Kanagawa Prefecture, ahead of other governors in Japan.
He is aware of the importance of base issues and the association of
base-hosting governors."

Roos also called on Yokohama Mayor Fumiko Hayashi. The two
discussed, among other matters, the APEC (Asia-Pacific Economic
Cooperation) meeting to be held in Yokohama next fall. "Yokohama
wants to build closer ties with the United States," Hayashi said.

(2) Study of DPJ (Part 3): "Mavericks" dominate DPJ supporters

ASAHI (Page 4) (Full)
September 5, 2009

Keiichi Kaneko, Hidetoshi Isogai

TOKYO 00002066 002 OF 009

The Liberal Democratic Party (LDP), which has been in power most of
the time for over half a century, has had strong connections with
all the mainstream groups in various sectors. In contrast,
supporters of the Democratic Party of Japan (DPJ) are mostly
"mavericks" who pin their hopes on a change of administration.

Practically the only patron of the DPJ in the economic circles, with
which it has rather few connections, is Kazuo Inamori, chairman
emeritus of Kyocera Corporation. Inamori is the former chairman of
the support group of Vice President Seiji Maehara and has been
acquainted with Deputy President Ichiro Ozawa for more than 10
years. He played a "decisive role" (according to an Ozawa aide) as
intermediary when the DPJ merged with the Liberal Party in 2003.

Now that a change of administration has been achieved, he has
volunteered to be an intermediary between the DPJ and the business
sector. Soon after the general election, he held a national
convention of the "Seiwajyuku," a study group for small- and
mid-sized business owners that he runs, in Yokohama on September 1.
Ozawa attended the reception and gave a speech in which he said, "It
is important that the DPJ implements its pledges without fail."

The policy adviser for the DPJ is Waseda University Professor Eisuke
Sakakibara (former deputy finance minister), who is known as "Mr
Yen." Sakakibara has criticized the structural reforms under the
Koizumi administration for "upholding market fundamentalism and
aiming at the Americanization of Japan." He has argued for drastic
reform of the economic system through a change of administration and
has influenced the DPJ's economic policy. During the 2003 election,
he was named by (then) DPJ President Naoto Kan to be the finance
minister in case of a change of administration. He is close to
Ozawa, and rumor has him being tapped for a position in the Hatoyama
administration.

Chairman Jitsuro Terashima of the Japan Research Institute exercises
influence on the DPJ's foreign policy. He was involved with
President Yukio Hatoyama's proposal regarding a "security treaty
without permanent stationing of troops" aimed at reducing the size
of U.S. forces in Japan when the old DPJ was in its infancy. He has
also provided the theoretical foundation for Hatoyama's concept of
an "East Asian community," which he unveiled at his meeting with
President Lee Myung Bak during his visit to South Korea in June.
This concept of a community, symbolic of the DPJ's foreign policy of
giving equal importance to relations with the U.S. and Asia, was
also included in the manifesto for the recent election.

The old DPJ's "Basic Philosophy," which was its political platform,
was written by journalist Hajime Takano. The basic spirit of this
document was yuai (fraternity), which values "self-reliance of the
individual" and "coexistence with others." When (then) President
Ozawa's secretary was arrested for receiving illegal political
donations from Nishimatsu Construction Company, he took the lead in
criticizing the prosecutors, asserting that the arrest was "a
preemptive strike by the prosecutors, who are part of the
bureaucracy, due to their anxiety and fear about 'revolutionary
reforms'."

Yasuyo Yamazaki, former president of Goldman Sachs Asset Management,
was the originator of the idea of "toll-free expressways." This idea
was included in the manifesto for the 2003 general election by
(then) President Naoto Kan. Since then, toll-free expressways have

TOKYO 00002066 003 OF 009


been one of the major policies of the DPJ.

Rengo (Japanese Trade Union Confederation), comprising some 6.8
million union members who are civil servants or employees of big
companies, is the DPJ's biggest support group. However, relations
between them were often strained over such issues as the system
design for the unification of pensions. Current Rengo Chairman
Tsuyoshi Takagi and Ozawa were instrumental in the reconciliation of
the two organizations. During the 2007 House of Councillors
election, Ozawa and Takagi worked hand-in-hand to campaign all over
country to unite the local groups, which led to the DPJ becoming the
number one party in the Upper House.

More than 10 years after its founding, there have been a number of
DPJ members who became heads of local governments, the most recent
one being Takashi Kawamura, who was elected as the mayor of Nagoya.
Kawamura ran successfully for mayor last April when serving his
fifth term as House of Representatives member. He flew all over the
country to campaign for the DPJ's official candidates in the recent
Lower House election.

The first DPJ lawmaker to become a local politician is Kanagawa
Governor Shigefumi Matsuzawa. He once ran against Kan in the party's
presidential race and was considered a young future leader. He is
now serving his second term as governor. In 2007, he became the
first governor in Japan to enact an ordinance limiting the tenure of
the governor to three terms, or a total of 12 years. Kiyoshi Ueda,
governor of Saitama, who once became famous for questioning
corruption in the Lower House, is now serving his second term. Other
DPJ members who became local leaders include Iwate Governor Takuya
Tasso and Kitakyushu Mayor Kenji Kitahashi.

The DPJ's foreign connections include Harvard University Professor
Emeritus Ezra Vogel and Columbia University Professor Gerald Curtis.
These experts on Japan have been in frequent contact with party
leaders. Candid advice from overseas has been valuable in the
management of the party.

(3) Study of DPJ (4th and final part): Direct payouts expanded
gradually; Is it possible to narrow the gap with public opinion?

ASAHI (Page 4) (Excerpts)
September 8, 2009

Kenichi Goromaru

The centerpiece of the manifesto of the Democratic Party of Japan
(DPJ) in the recent House of Representatives election was the
reshuffling of the national budget in order to realize its slogan of
"the people's livelihoods come first" and the reform of government
bodies to shift from reliance on bureaucrats to political
leadership. The revenue required to fund the DPJ's major policies
will amount to 16.8 trillion yen per year. The party has also
indicated the revenue sources and the implementation process to a
certain extent.

Many of these policies, including child allowances, toll free
expressways, free high school education, and income subsidies for
farming households, originated from the time of Naoto Kan's
presidency, when the first manifesto-based election was held in
2003. They have since been carried over to the manifestos for the
2005 House of Representatives election under President Katsuya Okada

TOKYO 00002066 004 OF 009


and the 2007 House of Councillors election under President Ichiro
Ozawa.

However, the proposals until 2005 to "abolish business regulations"
and to "downsize postal savings and insurance operations in order to
facilitate the flow of capital from the government to the private
sector," which emphasized market mechanisms, have faded out. On the
other hand, the child allowance has been increased from 16,000 yen
to 26,000 yen per child; the livestock industry has been added to
the coverage of income subsidy for farming households; and the
abolition of the temporary tax rates for gasoline has also been
included. The scope of "direct payouts," where the benefits are
easily visible to the people, has been expanded.

The DPJ explains that such methodology is being adopted because
"this is more effective than the method of channeling through
industrial organizations adopted by the Liberal Democratic Party
(LDP)," but a former DPJ policy staff member says the party probably
wants to "present big figures so that it can claim 'see, we
delivered on what we have promised' later." Behind this is Ozawa's
election campaign strategy of chipping off support from the LDP's
traditional support groups, such as the agricultural cooperatives.

During the election campaign, the DPJ's pledges were criticized
strongly by the LDP and New Komeito as "pork barrels meant to win
votes." From the DPJ's landslide victory, it would seem that its
manifesto has won the people's approval, but public opinion polls
show that the people's thinking is not that simple.

In a post-election poll conducted by Asahi Shimbun, respondents gave
low marks - 20 percent approval and 65 percent disapproval - to toll
free expressways, which was one of the showcase policies. Even for
the child allowance, a much larger number of pollees were negative
than positive. With regard to why many voters voted for the DPJ, a
junior Diet member who was elected in the recent election had noted
during the campaign that the reason was "expectations for a change
of administration and not that they liked our policies. Toll free
expressways have always been criticized in the campaign meetings of
individual candidates."

The DPJ's policies have been shown to deviate from popular will.

The policy debate during the campaign concentrated on the question
of revenue sources - whether the DPJ will be able to raise the
required funding without increasing the consumption tax rate. The
debate on the substance of the policies was rather superficial. The
DPJ itself will have to provide the answers to the remaining
unanswered questions - whether the policies it pledged were indeed
of high priority and whether its methodology is appropriate -
through the formulation of the budget toward the end of 2009.

President Yukio Hatoyama emphasized to reporters on September 1
that, "If the policies in the manifesto are not implemented, we will
be questioned for breaking our promises." However, with the low
marks given to these policies in mind, he also said: "The most
important thing is the people's will. I would like to manage the
administration in the way the people want us to," hinting at the
possibility of making flexible policy decisions based on trends in
public opinion.

(4) IT-assisted agricultural efficiency promotion


TOKYO 00002066 005 OF 009


NIKKEI (Page 9) (Full)
September 7, 2009

Various information system developers plan to expand the IT-assisted
agricultural support business. Fujitsu will provide agricultural
management software through cloud computing via the Internet. The
Hitachi Group has developed technology capable of specifying
varieties of crops and harvests by analyzing images sent from
satellites. They will develop new markets based on the assessment
that it is possible to support the promotion of agricultural
efficiency using IT.

Fujitsu has started providing software targeting agricultural
production corporations, which are growing in number, based on a
Saas system, a type of cloud computing. Under the Saas System,
software users do not need to have their own information systems. As
such, even small agricultural corporations that lack capital
strength would find it easy to employ the system.

For the first step in this business, the company has put up for sale
business management software for 200,000 yen a year. The software
caters to such demands as information on depreciation or a dividend
payment system appropriate for agricultural corporations. It plans
to gradually boost its product variety, including a production
traceability system and soil analysis. It will aim to attain annual
sales of 1 billion yen in the term ending in 2011.

Hitachi and its subsidiary Hitachi Software Engineering, have
jointly developed technology capable of identifying more than 10
varieties of crops, such as rice and soy beans, from satellite
images and determine their yields. The system will help farmers to
customize how they grow crops, such as by using more fertilizer on a
certain part of a field, based on information obtained from image
analysis.

This system uses the technology of determining the content of
protein in the crops, based on reflected wavelengths. It is possible
to evaluate crop conditions by analyzing satellite images.
Colorado-based Digital Globe, a leading U.S. satellite image
provider, in which Hitachi Software Engineering has a stake, will
launch a satellite in October. Hitachi and Hitachi Software
Engineering will boost the accuracy of the analysis based on images
sent from that satellite, and commercialize the analyzed images in
two years at the earliest. The farmers targeted for this service
will be agricultural cooperatives and large-scale farms.

NEC has released a system capable of determining temperature and
humidity and luminous intensity in vinyl greenhouses
around-the-clock from a remote place. Data measured with a censor
installed in an IC tag is sent by a RFID (radio frequency
identification) system. When any abnormal data is obtained, farmers
will be immediately notified of via the Internet. The company says
that it is unusual to use IC tags in the production stage of crops.

An increasing amount of farmland is being abandoned in Japan, and
the people willing to take responsibility for operating the farms
are aging rapidly. In view of the nation's low food self-sufficiency
ratio, it is imperative to improve the productivity of domestic
agriculture.

(5) Change of government (Part 4 - Conclusion): Futenma relocation
plan remains deadlocked with no hint of a solution in sight

TOKYO 00002066 006 OF 009

NIKKEI Kanagawa Edition (Page 35) (Abridged slightly)
September 5, 2009

Koichi Sugino

The U.S. Marine Corps' Camp Schwab is located in the Henoko district
in Nago, Okinawa Prefecture. Attached to the barbed wire dividing
Camp Schwab from the beach are countless ribbons and handkerchiefs
saying, "We don't need the base," and "We want a peaceful sea."

An area off Camp Schwab emerged 13 years ago as a candidate site for
a base replacing Futenma Air Station, which is to be returned to
Japan. After many twists and turns, the government aims to begin
construction work next spring with a goal of completion of the
replacement base in 2014. Under such circumstances, the Democratic
Party of Japan (DPJ), which advocates relocating (Futenma Air
Station) out of Okinawa, is about to assume power.

On Sept. 1, Okinawa Gov. Hirokazu Nakaima held talks with DPJ
Okinawa chapter representative Shokichi Kina and others.

Problems at planned relocation site

Kina: It is best to have Futenma Air Station returned without
building the (replacement) base off Henoko.

Nakaima: (Moving) the base out of the prefecture is the best option,
but realistically speaking, (the relocation) is unavoidable.

As seen in the fact that a U.S. State Department spokesman said on
the same day that the United States will not renegotiate the matter
with Japan, Washington has repeatedly indicated that it will not
respond to a call for a review of the Futenma relocation plan.

"I want to ask DPJ headquarters whether or not it will change its
policy," Governor Nakaima said (in the meeting).

Yasuhide Miyagi, representative of a committee of Henoko district
volunteers promoting the construction of a replacement facility also
raised a question, saying, "Even if the relocation plan is returned
to square one, will there be any place that will accept the new
base?"

Sept. 4 marked the 1,965th day since members of the anti-helicopter
base council began a sit-in in tents in the Henoko district. "We
want the DPJ to stop the current base plan first and then doggedly
hold talks with the United States," council chairman Hiroshi
Ashitomi said.

Carrot-and-stick policy

Ashitomi also described the Liberal Democratic Party's policy as a
carrot-and-stick policy. After (Nago) announced its decision to
accept the replacement facility, the central government announced a
ten-year 100-billion-yen package to stimulate the economy of the
Northern area, including Nago. The Okinawa National College of
Technology and a special financial zone have been established as
part of the package. But the budget has been put on hold every time
local governments locked horns with the central government.

In addition to plans in Okinawa, realignment of U.S. bases in Japan,

TOKYO 00002066 007 OF 009


on which Tokyo and Washington agreed in 2006, has fallen behind
schedule. The former mayor of Iwakuni City, Yamaguchi Prefecture,
which hosts the U.S. Marine Corps' Iwakuni Air Station, opposed the
transfer of a carrier-based aircraft unit from the U.S. Atsugi Naval
Base to Iwakuni Air Station. As a result, the central government
temporarily stopped providing subsidies to the Iwakuni municipal
government. Yoshihiko Fukuda, who favors the relocation, was elected
mayor of Iwakuni in February 2008.

Tokyo provides subsidies on a priority basis to local governments
that cooperate with the realignment of U.S. forces. This year
Iwakuni topped the government's list of subsidies with 1.11 billion
yen, followed by Nago with 993 million yen, and Yokosuka with 917
million yen.

Carrier-based aircraft have temporarily been conducting
night-landing practice (NLP) on Iwo Jima rather than at Atsugi. Work
to select a site replacing Iwo Jima has run into difficulties owing
to the serious noise factor. "If this situation persists,
carrier-based jet fighters might not be able to move anywhere and we
might suffer from aircraft noise night after night," an Atsugi
resident said with apprehension.

"The change of administration will be a plus in a sense of reviewing
the base plan and bringing flexibility to the matter," University of
the Ryukyus professor Masaaki Gabe said. Gabe also pins hopes on the
DPJ's pledge to investigate purported secret agreements between
Japan and the United States.

Although some people have begun mentioning the secret pacts on the
return of Okinawa and the introduction of nuclear weapons into
Japan, the government has consistently denied the existence of such.
Professor Gabe added: "It is not enough for the government to admit
the existence of the secret agreements. It must clarify how it is
going to take responsibility for its failure to disclose the pacts
to the public and how it is going to deal with other countries in
the future."

The central government has been absorbed in maneuvering around local
governments without conducting a fundamental discussion on how to
defend Japan. Whether or not the change of administration can break
the impasse on the base issue remains to be seen.

(6) U.S. serviceman rearrested on suspicion of stealing car

YOMIURI, FUKUOKA EDITION (Page 31) (Full)
September 7, 2009

Fukuoka Prefectural Police's Higashi Station on Sept. 6 rearrested
an 18-year-old U.S. serviceman based at the U.S. Sasebo Naval Base
on charges of theft.

According to the local police, the U.S. serviceman is suspected of
stealing a truck from a construction equipment rental firm in
Yayoi-Oda, Saeki City, Oita Prefecture, between the night of Sept. 3
and next morning, in conspiracy with an 18-year-old servicewoman
stationed at the same U.S. base. The two reportedly have admitted
the allegations.

The two U.S. service personnel were arrested on charges of violating
the road traffic law because they drove the truck on the sidewalk
along the national road in Chigusa 4, Higashi Ward, Fukuoka City.

TOKYO 00002066 008 OF 009

Regarding the car that the two drove to Saeki City, since a theft
report was made in Kita-Kyushu City, the local police are
investigating the circumstances.

(7) Prime Minister's schedule, September 7

NIKKEI (Page 2) (Full)
September 8, 2009

08:03 Took a walk on the grounds of official residential quarters
10:10 Met Chief Cabinet Secretary Takeo Kawamura at the Prime
Minister's Official Residence (Kantei)
13:15 Met Chairman Satoshi Aoki of Japan Automobile Manufacturers
Association at the Jidosha Kaikan in Shiba Daimon, followed by
meeting with Vice Chairman Atsushi Kawashima of Japan Automobile
Dealers Association and Chairman Tadayuki Kotani of Japan Mini
Vehicles Association
13:56 Met Vice Chairman Kobayashi of Japan Tobacco Growers
Association; Upper House member Toshio Yamada also present
14:08 Met Chairman Yasuhiro Kawashima of the Federation of Japan
Ports and Airports Construction Association at Shinbashi Goko
Building
14:30 Met Chairman Yoshifumi Ishizawa of Central Federation of
Societies of Commerce and Industry at New Shinbashi Building
14:55 Met Chairman Tadashi Okamura of Japan Chamber of Commerce and
Industry at JCCI Building in Marunouchi
15:23 Met Chairman Atsutoshi Nishida of Japan Electrical
Manufacturers' Association at JEMA Building in Ichiban-cho
15:59 Met Chairman Eiichiro Nakanishi of the Japan Trucking
Association at Shinjuku L Tower in Nishi-Shinjuku
16:24 Met Chairman Minoru Sawada of Japan Used Car Dealers
Association at Aioi Insurance Shinjuku Building in Yoyogi
16:52 Arrived at personal office in Nagata-cho
18:03 Arrived at Kantei
18:43 Arrived at official residential quarters

DPJ President Yukio Hatoyama's Schedule, September 7

09:02 Left residence in Denenchofu
09:36 Arrived at personal office in Nagata-cho
11:06 Arrived at DPJ headquarters
12:15 Met Asahi Shimbun chief editor Yoichi Funabashi, followed by
Secretary General Yvo de Boer of UN Framework Convention on Climate
Change, IPCC Chairman Rajendra Pachauri, Keizai Doyukai Chairman
Masamitsu Sakurai, others; spoke at Asahi World Environment Forum
2009
13:10 Met Mayor Nagasaki, others of Toyako Town, Hokkaido at DPJ
headquarters; followed by meeting with Mayor Akiba of Hiroshima,
chief secretary of Nagasaki City's Tokyo office; followed by meeting
with Osaka Mayor Hiramatsu
13:46 Met Secretary General Katsuya Okada, Policy Research Committee
Chairman Masayuki Naoshima, Chairman Hirofumi Hirano of DPJ
Executive Office; Okada, Hirano stayed behind
15:03 Arrived at personal office
17:02 Met Deputy Presidents Ichiro Ozawa, Naoto Kan, Okada, Chairman
Azuma Koshiishi of DPJ Upper House caucus at DPJ headquarters
17:25 Met Ozawa, Kan; Kan stayed behind
18:44 Dinner with Upper House members Emiko Uematsu, Minoru Kawasaki
at Chinese restaurant Gozenbo in Roppongi
22:32 Arrived home


TOKYO 00002066 009 OF 009


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