Cablegate: Daily Summary of Japanese Press 10/16/09

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 10/16/09

INDEX:
(1) Special treatment for senior defense official Nagashima reflects
U.S. concern about Japan-U.S. relations (Asahi)

(2) Defense Ministry cuts budgetary request by 1.9 trillion yen
(Nikkei)

(3) SOFA revision; conclusion of special environment agreement
should be priority (Asahi)

(4) Plan to relocate Futenma Air Station to Henoko drifting: Nago
mayoral election result likely to affect Futenma talks (Okinawa
Times)

(5) Letter to the editor: The prime minister's pronouncements about
Futenma make me happy one day, sad the next (Asahi)

(6) America's eight-year-old commitment to Afghanistan at crossroads
(Asahi)

(7) From Brussels - Agony of 60-year-old NATO (Mainichi)

(8) Editorial: International parental rights issue: Consider joining
the Hague Convention without delay (Yomiuri)

(9) Interview with New Zealand Prime Minister Key: Expresses
expectations for promotion of FTA talks with Japan (Nikkei)

(10) Poll on role of newspapers (Yomiuri)

ARTICLES:

(1) Special treatment for senior defense official Nagashima reflects
U.S. concern about Japan-U.S. relations

ASAHI (Page 4) (Slightly abridged)
October 16, 2009

Hisashi Ishimatsu, Hiroshi Ito in Washington

Parliamentary Defense Secretary Akihisa Nagashima visited the U.S.
to hold talks on the planned relocation of the U.S. Marine Corps'
Futenma Air Station in Ginowan City and other issues. For Nagashima,
the U.S. government arranged meetings with presidential national
security advisor James Jones of the White House and others who are
higher in rank than Nagashima. Nagashima is trying to find a
solution to the Futenma issue under the lead of politicians. The
U.S. side's special treatment toward him might reflect its concern
about Japan-U.S. relations.

After meeting with Jones and other U.S. officials on Oct. 14,
Nagashima told reporters regarding the Futenma relocation issue: "I
don't know if the meetings contributed to paving the way toward a
settlement of the issue. This is a very thorny issue."

Nagashima lived in Washington for a long time, working as a
researcher on security issues. As a security expert, he authored
several books on the presence of U.S. forces in Japan. Japan and the
U.S. just held a meeting of bureau director-level officials for
foreign and defense affairs in Washington on Oct. 5. But Nagashima
visited the U.S. to hold meetings with U.S. officials with the aim
of gauging, as a politician, Washington's real intentions ahead of

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the planned visits to Japan by Secretary of Defense Robert Gates on
Oct. 20-21 and by President Barack Obama in November.

Jones, the presidential advisor he met with, is responsible for
coordinating views to compile the U.S. government's entire security
policy. His Japanese counterpart is the chief cabinet secretary.
When former defense minister Yasukazu Hamada visited the U.S. in
May, he was not able to meet with Jones. Besides Jones, Nagashima
also met with Joint Chiefs of Staff Chairman Mike Mullen, who is the
top officer among the U.S. military's uniformed personnel. Japanese
diplomatic sources were caught by surprise at this red-carpet
treatment of Nagashima by the U.S., with one official stating that
the U.S. treated him as if he were a state minister.

By giving him special treatment, the U.S. hopes that Nagashima will
serve as a mediator between Tokyo and Washington. Hearing such
remarks as "Japan has depended too heavily on the U.S.," the U.S.
government is becoming increasingly concerned and distrustful of the
Hatoyama administration's policy toward the U.S. The U.S. government
hopes Nagashima will play the role of messenger from the U.S. to
report back to Prime Minister Yukio Hatoyama and other key Japanese
government officials on U.S. positions on key security issues.
Nagashima and the U.S. officials also discussed the security
situation in Afghanistan and the issue of the Maritime Self-Defense
Force's refueling mission in the Indian Ocean.

However, little progress was made on the Futenma relocation issue.
Nagashima said: "There are various views on the issue within the
Democratic Party of Japan (DPJ) and its partners in the ruling
coalition. The political situation in Okinawa is also very unclear.
Japan is in a very difficult situation" But Jones and other U.S.
officials apparently displayed a negative stance toward Japan's call
for changing the existing plan, insisting on the need to stick to
the current plan.

A former U.S. government source said: "Most parts of the
DPJ-proposed relocation plan have already been considered and faded
out during the Liberal Democratic Party's government." The U.S.
government thus remains cool toward the DPJ proposal.

While the U.S. has taken a consistent position, the DPJ government
remains indecisive on whether to persist with the party's campaign
pledge to relocate the Futenma air station outside the prefecture or
even outside the nation, or to accept the existing plan. When asked
after meeting with Jones about the timing for a final decision to be
made on the Futenma issue, Nagashima only said: "I think the
ministers concerned will hold another meeting."

(2) Defense Ministry cuts budgetary request by 1.9 trillion yen

NIKKEI (Page 2) (Full)
October 16, 2009

The Defense Ministry on Oct. 15 released its budget request for
fiscal 2010, which was 1.9 billion yen below the level of the
previous fiscal year's budget, meeting the government's policy line.
The ministry's budget requests totaled 4.7 trillion yen, of which
personnel and food expenses accounted for roughly 2 trillion yen.
Payments for equipment for which contracts have already been signed
accounted for 1.6 trillion yen. A senior defense official explained
that since only about 900 billion yen for general items was subject
to cuts, the ministry asked the Ground, Maritime and Air

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Self-Defense Forces to cut the spending of oil (down 13.9 billion
yen) and repair expenses (down 40.1 trillion yen) down to the bone,
even though such items are directly linked to the SDF's daily
activities.

In order to achieve the set goal, the Defense Ministry has also
squeezed out 58.9 billion yen, by rescheduling repayments of loans
to equipment suppliers. This basically amounts to the deferment of
debt payments. Senior Vice Defense Minister Katsuya Shinba seemed
angry when he told reporters at the ministry: "(Extending) the
deferment of debt payments is not sound. In principle, it is not
right. However, it is an unavoidable measure." Eighty billion yen,
almost the same amount as the previous year's appropriation, was
tentatively included in the list of requests as expenses related to
the U.S. Forces Japan realignment program.

(3) SOFA revision; conclusion of special environment agreement
should be priority

ASAHI (Page 19) (Full)
October 15, 2009

By Kanagawa Gov. Shigefumi Matsuzawa

With the Japan-U.S. summit held (between Prime Minister Yukio
Hatoyama and President Barack Obama), the new administration's
diplomacy with the United States has started. As chairman of the
Association of Governors of Prefectures Hosting U.S. Military Bases
I have advocated reviewing the base arrangements including revision
of the Japan-U.S. Status of Forces Agreement (SOFA). From that
standpoint, I would like to make a proposal for the policy of the
new administration.

In view of the international environment surrounding Japan, the
deterrence capability of the Japan-U.S. security arrangements has
played a great role in maintaining our country's security and
stability in Asia. But when considered from the viewpoint of the
local communities hosting U.S. bases, the foundation of the
Japan-U.S. alliance is not rock solid.

Because the SOFA has not been revised since its conclusion in 1960,
it is rife with problems. I believe that a review of the SOFA will
not necessarily undermine the Japan-U.S. relationship; rather it
will lead to strengthening the foundation of the alliance and
increasing public confidence. One representative example is the
environment issue. U.S. military bases' efforts to tackle
environmental preservation would benefit not only U.S. military
personnel living on the bases but also residents of the surrounding
communities.

However, the SOFA includes no provisions covering environmental
issues. When it was concluded 50 years ago, there was probably no
awareness of such problems. As a result, the governors' association
I chair has called for revising the SOFA to include environment
provisions.

So far the Japanese and U.S. governments have insisted that
improving its administration, rather than revising the SOFA itself,
would be sufficient. But the discharge of fuel and other
environmental pollutants from U.S. bases continues. (Under the
present accord) no local government officials are allowed to enter
U.S. bases and no information is provided. Thus the SOFA is fraught

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with problems.

We have called for reviewing many items in the SOFA. We are eager
for the addition of three things we consider especially important --
environment-related stipulations, judiciary proceedings, and
establishing in the Japan-U.S. Joint Committee a panel for listening
to the views of base-hosting communities. I hope that the new
government will keeps these points in mind when it begins with the
United States negotiations for revising the SOFA.

However, because the two countries' national interests are
intertwined with the SOFA, its full-fledged revision would take
considerable time.

Therefore, I propose as a solution first concluding a special
agreement on the environment. Environmental contamination is a
serious and pressing issue affecting the lives and health of
residents in communities near U.S military bases. Since measures
addressing this issue would benefit both Japan and the United
States, it should be acceptable to the U.S. government. Negotiations
for a special agreement would have a much greater chance of success
than those for revision of the SOFA.

The main points of the special environment agreement include
effective on-site inspection, procedures for decontamination,
information disclosure to relieve local residents' anxiety, and the
establishment of a cooperative framework between Japan and the U.S.

I plan to visit Washington in November to exchange views with the
relevant Obama administration officials. I want to promote
discussions in Japan as well, taking advantage of various
communication channels.

A change in government has been realized both in Japan and the U. S.
I think it is a great chance for the two countries to advance
policies in a new direction. I hope a special environment agreement
will be concluded and will lead to a review of the SOFA.

(4) Plan to relocate Futenma Air Station to Henoko drifting: Nago
mayoral election result likely to affect Futenma talks

Okinawa Times (Page 2) (Full)
October 16, 2009

"It appears that each cabinet member makes a different statement. I
wonder if the government has yet to unify its stance."

The governor on Oct. 13 issued his view on the preparatory paper for
environmental impact assessments concerning the relocation of the
U.S. Forces Japan Futenma Air Station to the coastal area of Camp
Schwab in Nago City. Nago Mayor Yoshikazu Shimabukuro expressed
strong dissatisfaction at the coalition government led by the
Democratic Party of Japan (DPJ), joined by the Social Democratic
Party (SDP) and the People's New Party (PNP), for not coming up with
a specific proposal for a relocation site. He said, "We are not in a
position to say the Futenma functions should be moved out of the
prefecture or they should remain in the prefecture."

Shimabukuro (63), who at the present moment firmly supports the
relocation of the Futenma functions to Henoko, and Susumu Inamine
(64), who is calling for the relocation outside the prefecture, have
announced their candidacies for the Nago mayoral election on Jan. 24

TOKYO 00002390 005 OF 014

next year. (The outcome of the election) will likely affect the fate
of the relocation issue.

In Apr. 2006 Shimabukuro basically reached an agreement with the
government on a plan to build an airfield with two runways arranged
in a V-shape. In the Lower House election campaign, he supported a
candidate endorsed by the Liberal Democratic Party (LDP) and the New
Komeito, who was in favor of the V-shape plan. However, this
candidate suffered a crushing defeat to a candidate, running on the
DPJ's ticket, who opposed the relocation to Henoko. Now that the
power transfer took place, Shimabukuro lost the backing of a
national government promoting the relocation to Henoko.

In the DPJ, inconsistencies are visible in statements on the
relocation outside the prefecture made by Prime Minister Yukio
Hatoyama and Defense Minister Toshimi Kitazawa.

Shimabukuro's view is that the relocation to Henoko is more
realistic. He noted: "Even if the government decides to move the
Futenma Air Station out of the prefecture, no prefectures would be
willing to host it. It would be rather difficult to reach an
agreement through negotiations, because there are residents,
prefectural citizens, at any candidate site. An agreement could not
be reached in two or three years."

Shimabukuro stressed, "We have come this far, with the issue
dividing citizens into two over 13 years."

He sticks to his stance of supporting the V-shape-runway plan.
However, he has left room for the possibility of relocating the
facilitiy outside the prefecture, noting, "I hope the Futenma
functions will be moved out of the prefecture, if possible. If the
government comes up with a definite direction, then there would be
room for considering such a possibility."

Inamine will go into the election with a stance of seeking the
relocation outside the prefecture through a revision of the Henoko
agreement plan.

Concerning Shimabukuro and Governor Hirokazu Nakaima calling on the
government to construct a V-shaped pair of runways offshore or to
shift the helipad site, Inamine said, "Such minor adjustments will
not settle the issue."

Inamine insisted, "(The Henoko plan) has not received a mandate from
residents." He added, "The previous mayor opposed the coastal plan.
However, Mayor Shimabukuro reached an agreement with the government,
claiming that (the Henoko plan) is within the scope of a variation
of the offshore plan."

He pointed out, "The relocated facility will be expanded and
strengthened with the addition of the functions of a military port.
The V-shape plan is unreasonable, as is clear from the fact that
numerous proposals for flight routes, noise and the environment have
been made even at the stage of the governor having issued his views.
It is impossible to protect residents' living environment."

The DPJ administration agreed to form a coalition (with the Social
Democratic Party and the PNP) over a review of the U.S. Forces Japan
realignment program from the perspective of reducing the burden on
Okinawa's residents. Inamine expressed his perception that it is a
'commitment,' noting "the fact that it has called for the relocation

TOKYO 00002390 006 OF 014

of the Futenma functions outside the prefecture in its Okinawa
Vision or during election campaigns is significant." He is calling
on the government to realize its campaign pledge.

Inamine said, "Citizens making their intensions clear carries
weight."

Defense Minister Kitazawa at a press conference expressed his
intention to pay attention to the Nago mayoral election (as an
opportunity) for the concerned parties to express their opinions.
The Nago election was brought up by senior officials participating
in bilateral discussions on the U.S Forces Japan realignment. The
governments of Japan and the U.S. are thus also on edge about the
outcome of the election.

(5) Letter to the editor: The prime minister's pronouncements about
Futenma make me happy one day, sad the next

ASAHI (Page 16) (Full)
October 16, 2009

Misao Shintani, 63-year-old housewife living in Izumi Ward, Yokohama
City

I truly hope the Democratic Party of Japan administration will
relocate the U.S. forces' Futenma Air Station out of Okinawa. Yet,
Prime Minister Yukio Hatoyama talks about the possibility of
accepting relocation within Okinawa on one day and corrects himself
the next day. As a native of Okinawa, I feel happy on one day and
sad on the next.

Have the important government officials ever visited Futenma Air
Station, which sits in the middle of a densely populated residential
area? The many U.S. military bases in Okinawa were there when I was
born and the suffering they have inflicted remains almost unabated.
The construction of a new military base will mean that Okinawa will
continue to be the island of bases long into the future. I can no
longer believe in promises to reduce the burden on Okinawa.

Have these government officials ever been to Henoko, the proposed
relocation site of Futenma? Would they not be pained by the
destruction of the beautiful sea at a time when the extinction of
coral is becoming an environmental problem? Hills will probably be
leveled for the earth and sand for reclaiming the sea. Reclamation
will deprive the animals, insects, and plants of their habitat. I
desire government officials to stop toying with Okinawa's fate.

(6) America's eight-year-old commitment to Afghanistan at
crossroads

ASAHI (Page 2) (Excerpts)
October 8, 2009

Oct. 7 marked the eighth anniversary of the U.S. military's invasion
of Afghanistan, which was carried out with the aim of putting the
blame on the principal architects of the 9/11 terrorist attacks on
the United States that claimed some 3,000 lives. Nevertheless, the
international terrorist group Al-Qaeda and armed Taliban insurgents
have not yet been eliminated and the security situation in
Afghanistan has deteriorated significantly. Is the U.S. Obama
administration going to send additional troops to Afghanistan? The
administration is at a crossroads. What should the international

TOKYO 00002390 007 OF 014

community do? What can Japan do?

Search for ways to shift to civilian support

Makoto Igarashi; Toshiya Umehara in Brussels

"There are many people who are joining the Taliban in order to
support their livelihoods," Foreign Minister Katsuya Okada said in
his speech at the Foreign Correspondents' Club of Japan on Oct. 7.
"A program should be created to guarantee a certain level of income
and to provide job training so that they can support their families
without joining the Taliban."

The idea is to try to weaken the (Taliban) forces by encouraging the
low-level soldiers, who joined the Taliban in order to obtain money
and goods, to leave the group. The Taliban is said to be the main
cause of the deterioration of security in Afghanistan. (The
envisaged program) is designed to play up the merits of the
antiterrorism operation and to serve as the main component of
Japan's new support measures.

Since the time the government was led by the Liberal Democratic
Party and the New Komeito, Japan's Maritime Self-Defense Force
(MSDF) has been providing fuel to vessels of multinational forces
engaged in the U.S.-led antiterrorism operation in the Indian
Ocean.

Foreign Minister Okada has indicated that the government will "not
simply extend the refueling mission." He has also raised questions
about the operation, saying: "(The MSDF supply vessel) sailed back
and forth in the Indian Ocean in the hot weather and (provided fuel)
only twice in a week. Does (such assistance) make sense?"

Nevertheless, the refueling operation has a symbolic meaning in that
the dispatched Japanese personnel work hard out in the field as part
of the operation. In the Foreign Ministry, the dominant view has
been that this mission that costs 8 billion yen annually is highly
cost-effective. Whether the planned vocational training can be a
trump card to replace this (refueling mission) remains to be seen.

In order for Japan to make its presence felt, the country must
provide considerable additional assistance. Since 2001, Japan has
put some 1.8 billion dollars (approximately 200 billion yen) into
Afghanistan, including the improvement of infrastructure. Japan is
the third-largest donor to Afghanistan after the United States and
Britain. In fiscal 2008, Japan extended 40 billion yen in assistance
- an unusually large amount to provide a single country.

Meanwhile, in addition to the United States, war-weariness is
widespread in the countries mainly in Europe which have sent troops
(to Afghanistan). Such countries as Canada and the Netherlands have
established polices to withdraw their combat troops by 2011.

An official of the North Atlantic Treaty Organization (NATO) that
leads the International Security Assistance Force (ISAF) has
admitted that actions by some member countries are restricted by
their constitutions. He went on to say, "That does not mean they
cannot do anything."

"We cannot win this war with military means alone" has become a
popular phrase in NATO these days. The prevailing view is that
civilian assistance is the key. The official praised the assistance

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provided by Japan, which has paid for six months' worth of salaries
for (some 80,000) Afghan police officers, as a "splendid
contribution," adding: "In any case, we want (Japan) to continue
what it is doing now. Reduction is the last thing we want to see."

(7) From Brussels - Agony of 60-year-old NATO

MAINICHI (Page 7) (Full)
October 12, 2009

Naoya Sugio

The North Atlantic Treaty Organization (NATO), which marks its 60th
anniversary this year, is a military organization that was
established with the aim of defending Europe from the former Soviet
Union. The organization has made its presence felt in such new
missions as interventions in ethnic conflicts in the former
Yugoslavia and the war against international terrorism. Its
membership has now grown from 12 to 28 nations, including former
Warsaw Treaty Organization states. Nevertheless, NATO is facing a
major crisis. Its Afghanistan operation has become bogged down.

Of the 28 national flags flying in the autumn breeze, the Italian
flag at half-staff was particularly striking at the Supreme
Headquarters Allied Powers Europe (SHAPE), the headquarters of the
NATO military organization in Mons, Belgium. Six Italian soldiers
were killed in a suicide bombing in Afghanistan.

I visited SHAPE and the NATO headquarters in Brussels as a member of
the invited Japanese press corps. We were briefed by officials on
Afghan policy and others matters for two days. In response to my
question about Japan's contributions, many people said, "You should
consider what Japan can do." On the refueling mission in the Indian
Ocean, which the Hatoyama administration has indicated that it will
"not simply extend" the mission, some people said that although it
is an important mission, it is a matter for Japan to decide.

Many people also expressed appreciation for Japan's financial aid
for the salaries of (some 180,000) Afghan military and police
personnel. The average monthly salary is 120 dollars. It is said
that armed insurgents are recruiting people to carry out bombings
and other activities for about 10 dollars a day. The stable income
seems to be attracting young people.

I repeatedly heard people say, "We cannot win with the military
operations alone." It is easier said than done to improve the ruling
power of the Afghan government and to nurture industries that can
replace the production of drugs, a source of funds for armed
insurgents. I suspect that people did not make any concrete
proposals for support measures to Japan because NATO does not know
what to do.

The Afghan war was launched by the United States in retaliation for
the 9/11 terrorist attacks on it. NATO staged an intervention in
August 2003, and the number of (NATO) troops (in Afghanistan) has
increased to 64,500 from the initial 5,600. Even so, no exit is in
sight. War-weariness is prevalent in many countries.

During the U.S. Bush administration, NATO split into "old Europe"
represented by France and Germany, which staunchly opposed the
launch of the Iraq war, and "new Europe," which supported the United
States. NATO's eastward expansion plan to include even Ukraine and

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Georgia, along with a plan to build a missile defense (MD) system in
Eastern Europe, drew fierce backlash from Russia. Last year's
conflict in Georgia was one consequence of that.

President Barack Obama is working hard to mend the split (in NATO).
His announcement to withdraw U.S. troops from Iraq and to send
additional troops to Afghanistan must have sounded truly encouraging
to other NATO members. Russia gladly jumped at his announcement last
month to review the Eastern Europe MD plan.

However, even if the members and nonmembers of NATO coordinate more
closely than before on Afghanistan, there is no guarantee of
success. The presence of NATO, "the most successful military
alliance in history," (according to President Obama) is being tested
once again.

(8) Editorial: International parental rights issue: Consider joining
the Hague Convention without delay

YOMIURI (Page 3) (Full)
October 16, 2009

Problems with foreign countries involving parental rights as a
result of failed international marriages have been rising sharply
recently.

We think the government should swiftly start considering signing the
Hague Convention, which Western countries regard as "international
rules" for settling such disputes.

The Hague Convention on the Civil Aspects of International Child
Abduction, which took effect in 1983, has 81 signatory countries,
mostly the Western nations.

For example, if a Japanese woman who was married to a foreigner and
lived overseas got divorced and returned to Japan with her child
without the consent of the child's father, the case would be treated
as the illegal abduction of the child in all the nations party to
the convention.

The convention requires signatory countries to provide
administrative cooperation in locating children who have been
wrongfully removed, and to return them to their original country of
residence. The basic principle is that they have to be returned to
their country of residence first, where the battle over parental
rights and other issues would be settled under the laws of that
country.

Japan has not signed the convention, and consequently, the number of
disputes involving fathers of foreign nationality trying to take
their children back to their home country has been increasing.

For this reason, Japan has often been urged to join the convention
at recent foreign ministerial talks and other international
meetings.

U.S. Secretary of State Hillary Clinton called on Japan to sign the
convention during a meeting in March with then Foreign Minister
Hirofumi Nakasone. British Foreign Secretary David Milliband made a
similar request to Foreign Minister Katsuya Okada last month.

Okada replied that he thought the issue was important and that he

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would quickly start studying it. We think the government should
speed up its examination of this matter, as Okada said.

Japan will also have to make domestic institutional changes in
preparation for signing the convention.

The government will need to identify which divisions and bureaus
would be tasked with locating and returning children, as well as how
to guarantee law enforcement should a parent refuse to comply with a
request to return his or her child. These will be the main issues.

However, there are also cautious views about signing the convention
because there have been cases in which Japanese women brought their
children back home because of domestic violence by their former
husbands. However, the convention stipulates that a child need not
be returned if he or she would be exposed to physical or
psychological harm. Serious consideration should be given to this
point.

This issue straddles several government agencies, including the
Foreign Ministry, the Justice Ministry, and the courts, and
sectarianism might impede the examination of this matter. The
Hatoyama cabinet should firmly exercise political leadership in
dealing with this issue.

Differences in systems and customs regarding parental rights and
divorce between Japan and the Western nations have complicated this
issue. But a number of problems have occurred, and the issue has
given rise to diplomatic friction. The government should tackle the
issue without delay.

(9) Interview with New Zealand Prime Minister Key: Expresses
expectations for promotion of FTA talks with Japan

NIKKEI (Page 7) (Abridged slightly)
October 15, 2009

Tomohiro Takasa, Wellington

New Zealand Prime Minister John Key met a Nippon Keizai Shimbun
reporter on Oct. 14. During the interview, he expressed concern
about the uptrend of the New Zealand dollar exchange rate from the
perspective of promoting exports. He noted that when he visits
Japan, starting on the 27th, he will propose to Prime Minister Yukio
Hatoyama that the two nations start talks on a free trade agreement
(FTA) with the aim of expanding trade with Japan.

-- The value of the New Zealand dollar against the U.S. dollar has
surged 50 percent from its March low, marking a 15-month high with
the U.S. dollar dropping to 0.74 to the NZ dollar.

"The weak dollar has contributed to that trend. However, as far as
the NZ dollar is concerned, the growth of the New Zealand economy
moved into the plus column in the April-June quarter in 2009 for the
first time in six quarters, which has probably been viewed
favorably. We plan to promote growth through exports of dairy
products, beef, mutton, and lumber. I hope to see an exchange rate
level lower than the current one, from the perspective of enhancing
our country's export competitiveness.

"There are also factors that are pushing down exchange rates, such
as current account deficits reaching about 8 percent of the gross

TOKYO 00002390 011 OF 014

domestic product. This trend became visible in 2008, temporarily
sending the value of the NZ dollar down significantly."

-- Market participants view the New Zealand economy as resembling
the Australian economy.

"High dependence on exports of primary products is common to both
economies. Australia's main export items among primary products are
minerals, such as iron ore, while New Zealand mainly exports dairy
products and lumber. Our export competitiveness is not as strong as
that of Australia. (New Zealand has scarce mineral resources.) Our
economic structure is also different from that of Australia.

"We will promote economic integration with Australia, by continuing
to adjust laws and regulations. However, we have no intention of
carrying out currency integration, by adopting the Australian dollar
system, sacrificing our independence in financial policy."

-- China has overtaken Japan as the destination of exports from New
Zealand.

"Exports to China have jumped 62 percent since the enactment of the
FTA between the two countries in 2008. I plan to expand our FTAs for
the promotion of exports. We will hold a second round of talks with
South Korea in September. We will sign an FTA with Malaysia later in
the month.

"We also held a preparatory meeting for an FTA with Japan in April.
When I visit Japan later in the month, I will once again underscore
the importance of strengthening the bilateral trade relationship to
Prime Minister Hatoyama. We import vehicles from Japan. Japan is a
more important trade partner than China from an overall perspective.
I hope to launch talks (with Japan) at an early date in order to
seek a compromise in the agricultural sector."

(10) Poll on role of newspapers

YOMIURI (Page 15) (Full)
October 15, 2009

Questions & Answers
(Figures in percentage)

Q: Do you think newspapers provide the information you need or
information that is helpful for your daily life?

Yes, completely 39
Yes, generally 49
Not very much 8
Hardly at all 3
No answer (N/A) 2

Q: Do you think newspapers report facts and various opinions
fairly?

Yes, completely 17
Yes, generally 52
Not very much 20
Hardly at all 7
N/A 5

Q: Do you think newspapers pay attention to people's human rights

TOKYO 00002390 012 OF 014

and privacy so as not to violate them?

Yes, completely 21
Yes, generally 53
Not very much 16
Hardly at all 5
N/A 5

Q: Do you think the press reporting is reliable on the whole?

Yes, completely 22
Yes, generally 63
Not very much 10
Hardly at all 3
N/A 2

Q: Which media do you think plays a significant role in promptly
reporting events in the world? Pick up to three from among those
listed below.

Major newspapers 57
Sports newspapers 2
Evening tabloids 4
NHK Television 60
Commercial television 63
Radio 16
Monthly magazines 0
Weekly magazines 1
Internet 32
Other answers (O/A) + nothing in particular (NIP) + N/A 1

Q: Which media do you think plays a significant role in providing
in-depth commentaries on the background of the news and the issues
at hand? Pick up to three from among those listed below.

Major newspapers 61
Sports newspapers 1
Evening tabloids 2
NHK Television 50
Commercial television 55
Radio 6
Monthly magazines 3
Weekly magazines 4
Internet 11
O/A+NIP+N/A 3

Q: Which media do you think plays a significant role in coming up
with solutions to public concerns or problems? Pick up to three from
among those listed below.

Major newspapers 59
Sports newspapers 1
Evening tabloids 2
NHK Television 45
Commercial television 51
Radio 5
Monthly magazines 3
Weekly magazines 3
Internet 8
O/A+NIP+N/A 10

TOKYO 00002390 013 OF 014

Q: These days, the number of Internet users is increasing. Do you
think the newspapers will remain necessary for information or
knowledge?

Yes 74
Yes to a certain degree 17
Not really 4
No 4
N/A 1

Q: How much time do you spend every day on average reading the
newspaper? Pick only one from among those listed below.

About 10 minutes 18
About 20 minutes 22
About 30 minutes 26
About 40 minutes 7
About 50 minutes 2
About 1 hour 14
About 1.5 hours 3
Over 2 hours 2
Don't read at all 5
N/A 2

Q: How much time do you spend every day on average using the
Internet with your personal computer or cell phone? Pick only one
from among those listed below.

Less than 30 minutes 22
Less than 1 hour 15
Less than 1.5 hours 5
Less than 2 hours 8
Less than 3 hours 3
Less than 4 hours 1
Less than 5 hours 1
Over 5 hours 1
Don't use at all 43
N/A 1

Q: (Only for those who answered affirmatively to the foregoing
question) Which do you use more often to access the Internet, a
personal computer or a cell phone?

Personal computer 71
Cell phone 23
Both about the same 5
N/A 1

Q: (Only for those who answered affirmatively to the foregoing
question) What sites on the Internet do you visit frequently to view
the news? If any, pick as many as you like from among those listed
below.

Newspaper websites 21
Sports newspaper or evening tabloid websites 7
TV station websites 5
News agency websites 8
Portal websites (Google, Yahoo!, etc.) 60
O/A 1
Don't view news 16
N/A 3

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Q: Have you ever subscribed to electronic newspaper services or
"e-paper"? Pick only one from among those listed below.

Yes 4
No, but would like to 17
No, wouldn't like to 73
N/A 6

Polling methodology
Date of survey: Sept. 5-6.
Subjects of survey: 3,000 persons chosen from among all eligible
voters throughout the country (at 250 locations on a stratified
two-stage random-sampling basis).
Method of implementation: Door-to-door visits for face-to-face
interviews.
Number of valid respondents: 1,827 persons (61 PERCENT )
Breakdown of respondents: Male-46 PERCENT , female-54 PERCENT ;
persons in their 20s-8 PERCENT , 30s-15 PERCENT , 40s-16 PERCENT ,
50s-20 PERCENT , 60s-23 PERCENT , 70 and over-18 PERCENT ; big
cities (Tokyo's 23 wards and government-designated cities)-22
PERCENT , major cities (with a population of more than 300,000)-18
PERCENT , medium-sized cities (with a population of more than
100,000)-25 PERCENT , small cities (with a population of less than
100,000)-24 PERCENT , towns and villages-11 PERCENT .

(Note) In some cases, the total percentage does not add up to 100
PERCENT due to rounding. "0" denotes percentages less than 0.5
PERCENT .

ROOS

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