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Cablegate: Japanese Morning Press Highlights 10/02/09

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UNCLAS SECTION 01 OF 10 TOKYO 002297

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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 10/02/09

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

Deputy Secretary of State's Visit
4) Deputy Secretary of State Steinberg says talks with North Korea
would be forum for conveying U.S. positions (Asahi)
5) Deputy Secretary Steinberg meets Chief Cabinet Secretary Hirano,
Foreign Minister Okada; Officials agree on stepping up talks on USFJ
realignment, other issues (Asahi)
6) U.S. Deputy Secretary and FM Okada agree on strengthening
Japan-U.S. alliance (Akahata)
7) U.S. Deputy Secretary of State and FM Okada agree to closely
coordinate on issues (Tokyo Shimbun)

Foreign Relations
8) U.S. Ambassador to Japan Roos to visit Hiroshima (Akahata)
9) Ozawa says he visited U.K. to observe parliamentarians' daily
activities (Sankei)

Defense & Security
10) Futenma consultative body to be abolished this year (Sankei)
11) MOD says refueling mission will not be continued (Nikkei)
12) Ranking U.S. Navy officer says refueling mission's termination
would affect war on terror (Tokyo Shimbun)

Politics
13) Party Secretary General Ozawa says Diet Act to be revised to
prohibit bureaucrats from answering to committees in place of
cabinet ministers (Tokyo Shimbun)
14) Freezing of supplementary budget to yield 1.7 trillion yen
(Mainichi)
15) SDP and PNP request improvement in government management policy
(Nikkei)
16) National Strategy Bureau to be launched in January 2010 at
earliest (Nikkei)
17) LDP President Tanigaki to turn policy study group task force
into shadow cabinet (Tokyo Shimbun)

Environment & Foreign Relations
18) Nippon Steel Corporation to provide China with advanced
technology conducive to reducing carbon dioxide emissions (Nikkei)


1) TOP HEADLINES

Asahi:
New flu vaccination available for 6,150 yen starting on Oct. 19

Mainichi:
Condominium developer ordered to pay 37 million yen in compensation
for health problems caused by sick house syndrome

Yomiuri:
New flu vaccinations to begin on Oct. 19, doctors among those to
receive first batch

Nikkei:
Nippon Steel to supply Chinese company with cutting-edge technology
for CO2 emissions reductions with aim of buying emission quotas


TOKYO 00002297 002 OF 010


Sankei:
Government to abolish Futenma consultative council possibly before
year's end and to review relocation plan

Tokyo Shimbun:
Cabinet to order for deeper cuts in supplementary budget to meet its
3 trillion yen goal

Akahata:
Hiroshima District Court nixes Tomonoura reclamation project, ruling
that it is national asset

2) EDITORIALS

Asahi:
(1) China marks 60th anniversary: Policy of increasing national
prosperity and military strength dangerous
(2) Iran's suspected nuclear weapons program: Country must stop
intimidating world

Mainichi:
(1) Tomonoura ruling: Use landscape to revitalize the city
(2) New German system: Ability to deal with nuclear issue to be
tested

Yomiuri:
(1) Upper House vote disparity: Electoral system must be overhauled
(2) Bank of Japan's Tankan quarterly business sentiment survey: A
strong yen may hamper economic improvement

Nikkei:
(1) Court said 'no' to public works project that will destroy
landscape
(2) September Tankan report raises question about growth policy

Sankei:
(1) Upper House electoral system must be reformed in tandem with
constitutional amendment
(2) Land and Infrastructure Minister Maehara must think of Yamba Dam
project in levelheaded manner

Tokyo Shimbun:
(1) Hiroshima District Court nixes Tomonoura reclamation project
(2) Sumatra earthquake: Japan should offer disaster-prevention
expertise

Akahata:
(1) Fiscal 2010 budget compilation: Movement for realizing people's
wishes essential

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 1

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

09:02 Met astronaut Koichi Wakata at the Prime Minister's Official
Residence, with State Minister for National Strategy Bureau Kan
present.
10:13 Met LDP President Tanigaki, Secretary General Oshima, and
others in the Diet Building, with DPJ Secretary General Ozawa, Diet

TOKYO 00002297 003 OF 010


Affairs Committee Chairman Yamaoka, and others present.
11:00 Met Cabinet Intelligence Director Mitani. Later met UNESCO
Director General Matsuura.
12:06 Met Diet Affairs Committee Chairman Yamaoka, Deputy Chairman
Mitsui, and others. Joined by Deputy Chief Cabinet Secretary
Matsuno.
14:23 Attended a meeting of the taskforce to work out measures to
deal with the new flu.
15:11 Attended a cabinet meeting.
19:23 Left Haneda Airport for Copenhagen by government plane with
his wife to attend a general meeting of the International Olympic
Committee.

4) Deputy Secretary of State Steinberg says U.S.-DPRK talks to be
venue for conveying U.S. views

ASAHI (Page 4) (Full)
October 2, 2009

Yoichi Kato, editorial staff member

U.S. Deputy Secretary of State James Steinberg, who is currently in
Japan, gave an interview to Asahi Shimbun at the U.S. Embassy in
Tokyo on October 1. Commenting on the bilateral talks with North
Korea under coordination at present, he said: "Even if a meeting is
held, it will be for the purpose of conveying our views directly and
not for engaging in bilateral negotiations." He thus made it clear
that negotiations on the nuclear issue will have to take place at
the Six-Party Talks.

Regarding the bilateral talks demanded by North Korea, Steinberg
said that the U.S. "is prepared to engage in such talks if it is
convinced that this will be constructive" for the resumption of the
Six-Party Talks and the denuclearization process.

Concerning Chinese Premier Wen Jiabao's planned visit to the DPRK
starting October 4, he said that, "This will help reinforce the
message (to North Korea)," expressing appreciation for such efforts.
However, he also said that "we have no expectations whatsoever" on
the outcome of the visit.

Following is a summary of the interview with U.S. Deputy Secretary
of State James Steinberg:

North Korea

What is noteworthy about the North Korea issue is that the five
members of the Six-Party Talks have a very firm agreement on the
complete denuclearization of North Korea and on the importance of
realizing this under the Six-Party Talks framework. I think Chinese
Premier Wen Jiabao's trip to the DPRK (this weekend) will help
reinforce this message.

The U.S. government has been saying that it is willing to engage in
bilateral talks in order to have North Korea return to the Six-Party
Talks and resume the denuclearization process. In that sense, if we
are convinced that talks will be constructive, we are prepared to do
so. Even if talks are actually held, they will be for the purpose of
conveying our views to North Korea directly and not for engaging in
bilateral negotiations.

Refueling mission in the Indian Ocean

TOKYO 00002297 004 OF 010

Prime Minister Hatoyama and Foreign Minister Okada have indicated
that the new administration will make vigorous efforts in
Afghanistan and Pakistan at their meetings with the U.S. side, and
we are very much encouraged by this. I don't think there is any
sense that such efforts will be weakened (even if the refueling
mission is not extended). Right now, our discussions are focused on
Japan's new aid proposals (if the mission is not extended).

Concept of East Asian community

We strongly support the Prime Minister and the Foreign Minister's
desire to strengthen relations with Asian countries. In the past,
there were times when tension heightened between Japan and its
neighbors, and that was not a good thing for the United States
either. The United States is also making efforts to strengthen its
relations with the Asian countries, such as by signing ASEAN's basic
treaty, the Treaty of Amity and Cooperation (TAC). We will keep pace
with Japan and coordinate with Japan as we proceed.

Review of alliance policy

Japan and the U.S. both think that it is important to maintain the
(alliance) relationship and work together to resolve issues. The
alliance is a living thing and is not carved in stone. The important
thing is goodwill and the willingness to talk (when there is a
problem). Both President Obama and Secretary Clinton feel that they
have such a commitment from the Hatoyama administration.

5) Deputy Secretary Steinberg meets Chief Cabinet Secretary Hirano,
Foreign Minister Okada; Officials agree on stepping up talks on USFJ
realignment, other issues

ASAHI (Page 4) (Full)
October 2, 2009

Chief Cabinet Secretary Hirofumi Hirano met U.S. Deputy Secretary of
State James Steinberg at the Prime Minister's Official Residence
(Kantei) on October 1. The two officials agreed on stepping up
discussions on U.S. Forces Japan (USFJ) realignment, Afghan aid, and
other issues ahead of President Barack Obama's visit in November.
Steinberg also met with Foreign Minister Katsuya Okada and affirmed
the promotion of closer Japan-U.S. relations.

Regarding the North Korea issues, Hirano asked for the U.S.
government's cooperation in finding a solution to the abduction
issue. The two officials agreed on making further efforts toward the
resumption of the Six-Party Talks.

6) Okada, Steinberg confirm strengthening bilateral alliance

AKAHATA (Page 2) (Full)
October 2, 2009

Foreign Minister Katsuya Okada met yesterday with visiting U.S.
Deputy Secretary of State Steinberg at the Foreign Ministry. During
the meeting, Okada and Steinberg confirmed that Japan and the United
States would strengthen their alliance further and that the two
countries would cooperate closely for a comprehensive solution to
the North Korean nuclear, missile, and abduction issues. They are
also believed to have exchanged views on such matters as how to
assist Afghanistan.

TOKYO 00002297 005 OF 010

"We were able to hold a constructive discussion to deepen our
alliance," Steinberg told reporters after the meeting. "We would
like to hold more talks for the visit of President Obama to Japan
(planned for November). Sung Kim, U.S. special envoy for the
Six-Party Talks, was also present at the meeting.

Later, Steinberg met with Chief Cabinet Secretary Hirofumi Hirano at
the prime minister's office.

7) Foreign Minister Okada agrees on close cooperation with U.S.
Deputy Secretary of State Steinberg

TOKYO SHIMBUN (Page 2) (Full)
October 2, 2009

Foreign Minister Katsuya Okada met U.S. Deputy Secretary of State
James Steinberg, who is currently visiting Japan, at the Ministry of
Foreign Affairs on October 1. The two officials agreed on close
cooperation on the review of U.S. Forces Japan (USFJ) realignment,
including the relocation of the Futenma Air Station, the North Korea
issues, and Afghan reconstruction aid in order to make President
Barack Obama's first visit to Japan a success.

Okada sought "close consultations" on USFJ realignment and Afghan
aid, which the new administration has designated as issues that need
to be dealt with in the first 100 days of the administration.
Steinberg said: "We look forward to close cooperation on President
Obama's visit to Japan and other issues."

8) U.S. envoy to visit Hiroshima

AKAHATA (Page 2) (Full)
October 2, 2009

U.S. Ambassador to Japan Roos will visit Peace Memorial Park in the
city of Hiroshima on Oct. 4, city officials said yesterday. Roos
will lay a wreath at the Atomic Bomb Monument and will visit the
Peace Memorial Museum. He will be the eighth U.S. ambassador to
Japan to visit the city, following the visit of former Ambassador
Schieffer, who was his predecessor.

Roos will visit Hiroshima on his own wishes. He will also visit the
Children's Peace Monument, which was created in memory of Sadako
Sasaki who died at the age of 12 from atomic bomb disease.

9) DPJ's Ozawa says purpose of UK trip was to observe MPs' daily
activities

SANKEI (Page 5) (Full)
October 2, 2009

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa held
a news conference at a hotel in Kobe City on October 1. Discussing
his trip to the UK in late September, he said: "I learned about what
the members of parliament do in their daily activities." His visit
to UK has been veiled in secrecy so far, with no details revealed
about his itinerary. Ozawa has thus revealed the purpose of his
trip, but many aspects, such as why the trip was extended for two
days, remain a mystery.

At the news conference, Ozawa gave the following comments on the

TOKYO 00002297 006 OF 010


British electoral system: "It is basically free. Intervention by the
authorities is undesirable." He added that: "I believe that going
among the people and conducting grassroots campaigning should be the
norm. I would like to think about the amendment of the Public Office
Election Law in order to realize this," indicating his intention to
seek the relaxation of regulations on campaign activities.

10) Government to abolish Futenma consultative council possibly
before year's end and to review relocation plan

SANKEI (Top play) (Abridged slightly)
October 2, 2009

The government decided yesterday to abolish before the end of the
year the Futenma Air Station consultative council composed of the
central government, Okinawa, and local governments for relocation of
the U.S. Marine Corps' Futenma Air Station (in Ginowan) in Okinawa
Prefecture. The council was set up during the previous Liberal
Democratic Party (LDP) administration with the aim of relocating the
air station to the coastal area of Camp Schwab in accordance with a
Japan-U.S. agreement including an economic package as incentive. The
Democratic Party of Japan (DPJ) is considering reviewing the
existing plan, including the option of moving the air station out of
the prefecture, apparently in a bid to underline the policy shift
from the LDP administration.

The Futenma council was established in August 2006 to discuss a
concrete construction plan for the alternative facility and related
safety and environment measures in tandem with an economic package
predicated on the air station's relocation to Camp Schwab. Chaired
by the chief cabinet secretary, the council members include the
Okinawa governor, mayor of Nago (the relocation site), and the
mayors of Ginoza, Kin and Higashi towns.

The DPJ pledged in its manifesto that it will move "in the direction
of reexamining" the realignment of U.S. forces in Japan. Prime
Minister Yukio Hatoyama has asserted that the air station must be
moved out of the prefecture at the very least. A change of the
relocation site requires the government to reexamine the role of the
Futenma council, including the composition of members from Okinawa.

Under the LDP administration, economic stimulus measures were also
discussed based on the planned relocation. Specifically, the LDP
administration produced a 10-year plan to pump a total of 100
billion yen starting in 2000 into the prefectural government and 12
municipalities in the northern area of the main island in return for
the planned relocation of Futenma Air Station to Nago. Over the last
nine years, some 77 billion yen has already been used. The DPJ
administration intends to make changes to this approach. On Sept. 25
Defense Minister Toshimi Kitazawa held talks with Gov. Hirokazu
Nakaima in which the defense chief announced that he will rethink
the carrot-and-stick approach. He intends to consider a separate
framework for economic measures for base-hosting municipalities.

The Futenma council also has working-level teams for eliminating the
danger of Futenma Air Station before the completion of the
relocation plan. The government plans to maintain this framework. As
well, there are strong calls in Okinawa for the continuation of the
economic stimulus measures. The government intends to retain a forum
for discussion of those measures separate from the Futenma
relocation issue.


TOKYO 00002297 007 OF 010


Whether the newly envisioned consultative body divorced from the
forum for discussing economic-stimulus measures can function is
questionable. Difficulties in coordinating these two bodies could
seriously affect the plan to complete the realignment of U.S. forces
in Japan by 2014.

11) Defense chief says Japan will not continue refueling mission

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

Defense Minister Toshimi Kitazawa, meeting the press yesterday,
reiterated that he would not extend the Maritime Self-Defense
Force's refueling mission in the Indian Ocean, which is to end (as
the Antiterrorism Special Measures Law expires) in January next
year. "The Democratic Party of Japan is in a position not to
continue it," Kitazawa said. "And," he added, "this is also what we
insisted in our party's campaign for the House of Representatives
election." Kitazawa was apparently unhappy with Foreign Minister
Katsuya Okada's recent remarks, in which Okada said he had "never
given an absolute 'no.'"

12) First reference by high-ranking US Navy officer to impact of
refueling mission's suspension: it would affect anti-terrorism
strategy

TOKYO SHIMBUN (Page 2) (Full)
Evening, October 1, 2009

Iwata in Washington

In an interview on Sept. 20, U.S. Navy Admiral Gary Roughead said
that a suspension of the Maritime Self-Defense Force's ongoing
refueling mission in the Indian Ocean "would affect the Maritime
Interception Operation (aimed to prevent the moves of terrorists,
weapons and drugs by ship as anti-terrorism strategy)."

It was the first time a high-ranking U.S. Navy officer referred to
the expected impact of the suspension of Japan's refueling mission.
But Roughead added that it is the Japanese government who decides
whether or not the mission should be continued.

Roughead emphasized: "I have been grateful to Japan for its
contribution, and many other countries have also highly evaluated
it." He added: "(If Japan discontinues the refueling mission,) it
would affect the strategies of the countries that have dispatched
small naval forces."

The admiral explained the termination would affect the anti-terror
mission because warships that have been refueled by Japan's supply
ships will have to return to port for refueling, "and their absence
will inevitably have an impact on strategy."

13) Secretary General Ozawa to place ban on Diet replies by
bureaucrats

TOKYO SHIMBUN (Page 2) (Full)
October 2, 2009

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa at a
press conference held in Kobe city on the afternoon of Oct. 1
indicated his intention to amend the Diet Law during the

TOKYO 00002297 008 OF 010


extraordinary Diet session to be convened later in the month. The
aim is to end the excessive reliance on bureaucrats by ending the
current practice of bureaucrats giving replies on behalf of cabinet
ministers in Diet committee deliberations as reference witnesses for
the government. Ozawa's decision stems from his desire to
demonstrate the Hatoyama administration's political leadership. He
is expected to consider amending the law with the possibility of
placing a ban, in principle, on bureaucrats from giving Diet
replies.

Ozawa emphasized, "Efforts to shift away from bureaucracy-oriented
politics must be started in the Diet. I would like to see the Diet
become a venue where politicians can pursue discussions." He then
added, "I would like to launch the work of amending the Diet Law.
However, I am not sure whether this can be done in time, because the
budget has to be compiled."

The DPJ's INDEX 2009 notes that only lawmakers are to engage in
discussion at meetings of both Diet chambers' committees, and
hearings of opinions from national government employees or private
citizens are to be held at sub-committees to be set up under
committees.

Ozawa indicated his plan to release the lineup of party executives
on Oct. 7, after the selection of DPJ lawmakers for key posts in the
Upper House is decided on Oct. 6.

14) Government secures 1.7 trillion yen in funding resources by
freezing extra budget

MAINICHI (Page 1) (Excerpt)
October 2, 2009

The government has suspended the implementation of the fiscal 2009
supplementary budget with the aim of squeezing funding resources for
the fiscal 2010 budget out of it. The Mainichi Shimbun learned on
Oct. 1 that the government has already amassed funds close to the 2
trillion yen level as a result of nine government agencies whose
scopes of reduction have been revealed as putting on hold the use of
between 1.72 trillion yen and over 1.92 trillion yen in budgetary
funds. Since the funds necessary for the DPJ's original policies
incorporated in its manifesto for the Lower House election will
amount to more than 7 trillion yen in the fiscal 2010 initial
budget, State Minister for Administrative Reform Council Yoshito
Sengoku will try to further amass funds by examining all government
agencies' budgetary reviews.

15) SDP, PNP agree to seek improvement in management of
administration from DPJ

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

The secretaries general and policy officers of the Social Democratic
Party (SDP) and the People's New Party (PNP) met in the Diet in the
late afternoon of October 1. They agreed to demand from the
government and the Democratic Party of Japan (DPJ) a mechanism to
make it easier for the policies of the two parties to be reflected
in the management of the administration.

The Hatoyama cabinet upholds a unified system of policymaking for
the government and the ruling parties. It has set up a "ministerial

TOKYO 00002297 009 OF 010


committee on basic policy" participated in by the leaders of the
three ruling parties as a forum for coordination among the parties
and "ministerial policy conferences" presided over by the senior
vice ministers of each ministry to deal with issues in specific
areas. However, the SDP and the PNP deem that their views cannot be
fully conveyed under this mechanism. They will compile proposals for
improvement by next week and submit them to the DPJ.

16) Senior vice minister of Cabinet Office says National Strategy
Bureau to kick off in January, at earliest

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

Motohisa Furukawa, senior vice minister of the Cabinet Office,
commented on the launching of the National Strategy Bureau during an
Asahi Newstar program on October 1. He said: "Obviously, we will
have to operate (as the National Strategy Office) until the end of
2009," indicating that the National Strategy Bureau will only be
able to start operations in January at the earliest. He said that
the reason is that implementation will take time, even if the
extraordinary Diet session passes the bill to upgrade the National
Strategy Office to a bureau. He also indicated that the deputy chief
cabinet secretary will serve concurrently as the chief of the
upgraded bureau.

17) LDP President plans to reorganize sections of Policy Research
Council into "shadow cabinet"

TOKYO SHIMBUN (Page 2) (Full)
October 2, 2009

In an interview with the press yesterday, Liberal Democratic Party
(LDP) President Sadakazu Tanigaki revealed that he would reorganize
the sections of the Policy Research Council into a "shadow cabinet"
(tentative name) as part of party organization reforms. Under this
plan, the chairman of each section would assume the presidency of
the relevant Diet committee.

Tanigaki said: "It will become (important) for our party, now an
opposition party, to decide whether it should support or oppose
bills or demand their revision." He intends to appoint to the shadow
cabinet officials who are former cabinet members and good debaters,
as well as junior and mid-ranking officials.

Tanigaki also indicated the possibility of reviewing the measure the
LDP proposed before the House of Representatives election to limit
the hereditary succession of legislators. He said: "People interpret
the word 'hereditary' in different ways. We must discuss the issue
again."

Tanigaki also indicated the possibility of replacing potential
candidates for the House of Councillors election next summer,
including incumbent Upper House members, remarking: "It will become
necessary to take steps to replace weak candidates with strong
candidates."

18) CO2 emissions cut: Nippon Steel Corp. to provide
state-of-the-art technologies to China to acquire emissions credits

NIKKEI (Top play) (Lead para.)
October 2, 2009

TOKYO 00002297 010 OF 010

Nippon Steel Corp. will provide advanced technologies that will lead
to reducing greenhouse gas emissions (CO2) to Maanshan Iron Co., a
leading Chinese steelmaker. It plans to provide the technologies to
other Chinese steelmakers as well so as to acquire emissions credits
based on the clean development mechanism (CDM), under which
industrialized countries that use their own technologies for
projects in developing countries can offset the cuts against the
output of their own country. China is the world's greatest CO2
emitter. Since it is lagging behind in environmental measures, there
is a possibility of reducing emissions more efficiently there than
in Japan.

ROOS

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