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Cablegate: Japanese Morning Press Highlights 10/20/09

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P 192330Z OCT 09
FM AMEMBASSY TOKYO
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UNCLAS SECTION 01 OF 08 TOKYO 002407

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10/20/09

INDEX:

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

Futenma saga:
4) PM: The relocation will not be postponed (Yomiuri)
5) Osprey to be deployed at new base (Akahata)
6) SDP party secretary general calls for relocation of Futenma
facility outside Okinawa (Nikkei)
7) U.S. pressuring Japan by agreeing to shift of runway farther
offshore (Yomiuri)

Defense & security:
8) Secretary of Defense Gates to visit Japan today (Tokyo Shimbun)

9) Vice foreign minister mentions possible use of SDF for Afghan
assistance (Tokyo Shimbun)

Politics:
10) PM: Flexibility with regard to manifesto important (Asahi)
11) LDP President Tanigaki visits Yasukuni Shrine (Asahi)

Foreign relations:
12) Amano expresses strong desire for resolution of North Korea
nuclear issue (Yomiuri)

Economy
13) Multiple-year appropriation introduced (Nikkei)
14) New government bond issue will likely exceed 50 trillion yen
(Nikkei)

Opinion:
15) Sankei-FNN poll: 60.9 PERCENT support Hatoyama cabinet
(Sankei)


Articles:

1) TOP HEADLINES

Asahi & Yomiuri:
Japan Post President Nishikawa to step down

Mainichi:
Unity among new entrepreneurs stronger, putting end to role of
Keidanren

Nikkei:
Finance minister hints at issue of 50 trillion yen in government
bonds

Sankei:
Expert panel suggests using Alternative Dispute Resolution (ADR) to
reconstruct JAL business

Tokyo Shimbun:
Foundations employing ex-Transport Ministry win contracts at higher
prices in 53 government-ordered airport projects

Akahata:

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Short-term health insurance cards issued to 28,000 elderly persons
due to failure to pay premiums under elderly health plan

2) EDITORIALS

Asahi:
(1) Let us overcome new-type influenza pandemic with accurate
knowledge and careful preparations
(2) International divorce dispute: Discuss parental authority, right
to see children

Mainichi:
(1) Vaccinations against new flu: Reliable information needed
(2) 70th anniversary of return of Nippon-go twin-engine plane to
Japan from around-the-world flight

Yomiuri:
(1) Japan Pension Agency to be launched: Don't forget about bold
systemic reform
(2) U.S. fiscal deficit troubles Obama administration

Nikkei:
(1) Give priority to growth measures, labor market in compiling
measures to create jobs
(2) Supermarkets should make efforts to offer "bargains"

Sankei:
(1) U.S. defense secretary to visit Japan today: Government urged to
settle bilateral issues to maintain alliance
(2) New Rengo system: Give advice to government that is based on
reality

Tokyo Shimbun:
(1) New strain of influenza: Cooperation among medical institutions
necessary
(2) Burden of education fees: There is a limit to dependence on
household budgets

Akahata:
(1) Immediately abolish elderly health program

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 19

NIKKEI (Page 2) (Full)
October 20, 2009

09:52 Met Japan International Cooperation Agency (JICA) President
Sadako Ogata at Prime Minister's Official Residence (Kantei).
10:21 Met Vice Finance Minister Yasutake Tango.
14:05 Met National Strategy Minister Naoto Kan and Chief Cabinet
Secretary Hirofumi Hirano. Joined by prime minister's assistant
Yoshikatsu Nakayama.
15:55 Met Hirano.
16:28 Met Cabinet Office Senior Vice Minister Kohei Otsuka.
17:04 Met Indian National Security Adviser M. K. Narayanan. Later
met with House of Representatives member Keishu Tanaka.
19:00 Attended welcome reception for U.S. Ambassador and Mrs. John
Roos by Japan Stanford Association at Tokyo Club in Roppongi.
19:53 Met Minister of Health, Labor and Welfare Akira Nagatsuma at
the Kantei. Hirano and others were also present.

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21:32 Arrived at his private residence.

4) Futenma relocation will not be postponed; Hatoyama says
"Japan-U.S. agreement carries weight"

YOMIURI (Page 1) (Excerpts)
October 20, 2009

Prime Minister Yukio Hatoyama emphasized yesterday evening that the
government will not put off the deadline stipulated in an agreement
reached between Japan and the U.S. on the relocation of the U.S.
Marine Corps' Futenma Air Station in Ginowan City to the coastal
area of Camp Schwab in Nago City, both in Okinawa Prefecture, by
2014. The ruling coalition of the Democratic Party of Japan, the
Social Democratic Party, and the People's New Party has agreed to
review the existing accord on the realignment of U.S. forces in
Japan, including the Futenma relocation plan. The remarks yesterday
by Hatoyama, however, suggest that the government would also
consider the current plan as one option.

Speaking before reporters at the Prime Minister's Official Residence
last evening, Hatoyama said: "The agreement reached between the
governments of Japan and the U.S. carries weight. We should not
readily assume that we can put off the schedule beyond 2014."

5) Ospreys to be deployed at new base; premise of environmental
assessment collapses

AKAHATA (Page 1) (Full)
October 20, 2009

The U.S. Marine Corps has recently issued its fiscal year 2010
aviation program which clearly stipulates that MV-22 Osprey
state-of-the-art vertical takeoff and landing aircraft will be
deployed to the envisaged new base in the Henoko district in the
city of Nago, which is to replace the U.S. Marine Corps' Futenma Air
Station (in Ginowan). The MV-22 Ospreys will replace the CH-46E
mid-size helicopters currently deployed to Futenma.

In its aviation program released annually, the U.S. Marine Corps has
made clear Futenma deployment plans for 2012 and beyond. This is the
first time that the U.S. Marine Corps has clearly specified the
additional deployment (of MV-22 Ospreys) to the new base to be
completed in 2014.

The U.S. document confirms that the new base is premised on a plan
to deploy the Osprey, which is noisier than the CH-46E.

According to the fiscal 2010 aviation program, the U.S. Marine Corps
will begin replacing (the CH-46Es) with Ospreys at one of the two
companies belonging to Marine Aircraft Group 36 (MAG36) deployed at
Futenma Air Station in October 2012 and those at another company in
April 2013 on the continental United States. In addition to Futenma,
the Futenma replacement facility (FRF) is specified as a deployment
site for (Ospreys).

The Japanese government is pushing ahead with an environmental
impact assessment for constructing the new base premised on the
types of aircrafts currently deployed at Futenma Air Station. Local
residents are calling for making the Osprey an object of the
assessment. In response, the Okinawa Defense Bureau has repeatedly
indicated that (the Osprey) is not an object of the environmental

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impact assessment because the U.S. side has replied that the
deployment of the aircraft has not been specifically decided.

Now that the U.S. Marine Corps has repeatedly released its programs
based on the deployment of the Osprey to the new base, it can be
said that the premise of the environmental assessment has
collapsed.

6) SDP secretary general: Futenma Air Station must be moved out of
country

NIKKEI (Page 3) (Full)
October 20, 2009

The Social Democratic Party (SDP) reaffirmed at its cabinet minister
liaison meeting held on Oct. 19 its position to seek a review of the
existing Japan-U.S. agreement on the relocation of the U.S. Marine
Corps' Futenma Air Station. Secretary General Yasumasa Shigeno
emphatically indicated in a news conference that Futenma Air Station
must ultimately be moved out of the country. He said, "Our party's
view is that Futenma Air Station should be relocated to a place
outside Japan."

7) Defense Secretary Gates in Japan today; U.S. applying pressure by
accepting moving Futenma replacement facility farther offshore

YOMIURI (Page 2) (Excerpts)
October 20, 2009

U.S. Secretary of Defense Robert Gates will visit Japan for two days
from Oct. 20. He will meet Defense Minister Toshimi Kitazawa,
Foreign Minister Katsuya Okada, and other officials to discuss the
relocation of the U.S. Marines' Futenma Air Station (in Ginowan
City, Okinawa) and other issues. With regard to the current plan to
relocate the Futenma base to the coastal area of the U.S. forces'
Camp Schwab (in Nago City), the U.S. government says it accepts
"minor modifications." Gates is expected to reiterate the U.S.'
demand to implement this plan, and the Japanese government, which
has not decided on a clear policy, will likely have difficulty
responding.

In addition to Futenma relocation, Afghan aid measures to replace
the Maritime Self-Defense Force's refueling mission in the Indian
Ocean, the selection of Japan's next main fighter (FX), and other
issues are expected to be discussed at Gates' meetings with Japanese
officials.

8) U.S. Defense Secretary in Japan today; compromise on Futenma
relocation unlikely

TOKYO SHIMBUN (Page 2) (Abridged)
October 20, 2009

U.S. Secretary of Defense Robert Gates will visit Japan for two days
starting on Oct. 20 to meet with Prime Minister Yukio Hatoyama and
other officials. Since the visit comes right after a senior
Department of Defense official indicated that the U.S. will only
accept minor modifications to the current plan to relocate the U.S.
forces' Futenma Air Station (in Ginowan City) to the coastal area of
Camp Schwab (in Nago City), it will probably be difficult for the
Japanese government, which is looking at the possibility of
relocating the Futenma base out of Okinawa, to find common ground

TOKYO 00002407 005 OF 008


with the U.S. side.

Gates's visit will be the first by a U.S. cabinet member after the
inauguration of the Hatoyama administration. Gates will meet Foreign
Minister Katsuya Okada on the afternoon of Oct. 20 and hold separate
meetings with Hatoyama and Defense Minister Toshimi Kitazawa on the
morning of Oct. 21.

Right before Gates's visit to Japan, a senior U.S. Department of
Defense official has indicated that moving the runways (of the
proposed Futenma replacement facility) further offshore for about 50
meters under the current relocation plan will be acceptable and
warned that failure to implement the Japan-U.S. agreement on this
plan will be "a blow to the bilateral relationship of trust." Gates
is expected to convey the same message and reject any major review
of the current plan, including relocation out of Okinawa.

Talking to reporters about the current relocation plan on Oct. 19,
Hatoyama said: "We need to have the flexibility to think about
whether there are other options with an open mind," conveying his
demand on the U.S. side. He also said: "I am not thinking that we
have to settle all the issues before the visit of Mr. Gates or of
U.S. President Barack Obama (in November)," thus indicating that no
major progress on the relocation issue is expected for the time
being.

9) "Use of SDF troops for assistance to Afghanistan is under
consideration," says senior vice foreign minister

TOKYO SHIMBUN (Page 2) (Full)
October 20, 2009

Senior Vice Foreign Minister Tetsuro Fukuyama revealed in a speech
given in Tokyo on Oct. 19 that he is looking into the use of
Self-Defense Forces as an aid measure to be extended to Afghanistan
in place of the current refueling mission in the Indian Ocean. He
noted, "We must look into such a possibility. We will identify what
options are available and explore their feasibility."

In specific terms, in view of the situation in Afghanistan where
battles are continuing, it would be conceivable to have Air
Self-Defense Force personnel engage in airlift operations of relief
supplies to refugees in neighboring nations, instead of dispatching
them for an on-site mission.

Parliamentary Defense Secretary Akihisa Nagashima also said on the
same day after discussing new aid measures with British
Parliamentary Under-Secretary of Defense Quentin Davies, "I cannot
say that the use of SDF troops is not one of the options (for new
aid measures)."

The government has made the decision to end the refueling mission in
January next year. In the meantime, it is looking into promoting
assistance for basic human needs, including vocational training to
former Taliban soldiers.

However, due to poor security situation in Afghanistan, private
citizens are limited in what they can do in extending assistance for
basic human needs. If Japan only extends financial assistance as a
new assistance measure, it could draw criticism from the
international community. As such, the government has presumably
decided to look into using the SDF.

TOKYO 00002407 006 OF 008

10) Prime Minister Hatoyama: Flexibility in implementing campaign
platform important

ASAHI (Page 4) (Full)
October 20, 2009

When asked by the press corps about whether the manifesto (a set of
campaign pledges) should be implemented without fail, Prime Minister
Yukio Hatoyama yesterday said: "A manifesto includes pledges on
which the public does not necessarily pin hopes. So we should
consider them in a flexible manner," indicating the possibility of
changing his party's manifesto if he judges it difficult to get
support from the public.

Hatoyama also stated: "The most important thing is to manage the
government in a way that satisfies the public. The manifesto is
important because it is a commitment, but just sticking to it is not
good for the public."

11) LDP President Tanigaki visits Yasukuni Shrine

ASAHI (Page 4) (Full)
October 20, 2009

Liberal Democratic Party (LDP) President Sadakazu Tanigaki visited
Yasukuni Shrine in Kudan, Tokyo, at noon on Oct. 19. The shrine is
now holding its autumn festival. "I am chairman of the association
of the bereaved families of the war dead in Kyoto. I prayed for the
souls of those that died not only in World War II but also in all of
the wars of the Japanese modern history," Tanigaki said to
reporters. Regarding the fact that he took a negative stance toward
Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine, he
said, "At that time I was also giving consideration to international
relations, so I thought that the prime minister should refrain from
visiting the shrine."

12) Amano indicates eagerness to resolve North Korean nuclear issue

YOMIURI (Page 2) (Full)
October 20, 2009

A symposium titled "Nuclear Nonproliferation and Peaceful Use of
Nuclear Energy" on cooperation between Japan and the International
Atomic Energy Agency (IAEA) was held yesterday at Imperial Hotel in
Uchisaiwaicho, Tokyo. The symposium was hosted by the Net Journalist
Association and others, and supported by the Yomiuri Shimbun and
other media organizations. Yukiya Amano, currently the Foreign
Ministry's ambassador in charge of the nuclear nonproliferation and
nuclear energy, who will assume the post of IAEA director general in
December, sent to the symposium a video message in which he
indicated his eagerness to resolve the Iranian and North Korean
nuclear issues, saying, "The role of the IAEA is extremely
important. I will tackle the issues head on."

13) Government panel eyes budget-management system spanning several
years starting in fiscal 2011

NIKKEI (Page 3) (Full)
October 20, 2009

The government's national strategy taskforce yesterday finalized a

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report on future options for budget compilation starting in fiscal
2010. The report proposes introducing a budget-management system
spanning several years starting in fiscal 2011. It also presents a
program in which the government will reveal in fiscal 2010
guidelines for medium- to long-term fiscal discipline and then work
out a "mid-term fiscal frame" for expected state revenues and
expenditures in fiscal 2011-2013. In addition, the report includes
measures to make the budget-compilation process more transparent by
using the Internet.

The government will instruct all the cabinet ministers to proceed
with budgetary compilation in accordance with this policy line
within this week.

Under the budget-management system envisioned by the taskforce, the
government would show in the mid-term fiscal frame a general
framework for state revenues and expenditures, as well as means to
reduce spending. Such would be reflected in every fiscal year's
budget. The taskforce judges that the envisioned system does not
infringe on the Constitution, which stipulates the principle of a
single-fiscal-year system.

14) Finance minister hints at fresh issuance of government bonds
worth all-time high of 50 trillion yen

NIKKEI (Top Play) (Lead para.)
October 20, 2009

Referring to the management of state finances in fiscal 2009,
Finance Minister Hirohisa Fujii, during an interview with the Nihon
Keizai Shimbun, indicated his intention to make up for a tax revenue
shortfall of more than 6 trillion yen with the additional issuance
of government bonds. He hinted at an outlook that the issuance of
government bonds would expand to the 50 trillion yen level, although
the government had previously estimated such an amount at 44
trillion yen. As a result, the amount of the issuance of government
bonds will exceed tax revenues for the first time since fiscal 1946,
when the nation was in a state of disorder after the War. Concerning
the abolition of provisional taxes, such as the gasoline tax, which
(the ruling Democratic Party of Japan pledged in its manifesto for
the Lower House election), Fujii hinted at the possibility of
adopting a measure to boost tax revenues, saying that switching
those taxes to a tax to pay for measures against global warming,
which is to be newly established, is "one option."

15) Poll: Hatoyama cabinet's support rate at 60.9 PERCENT

SANKEI (Page 2) (Abridged)
October 20, 2009

The rate of public support for Prime Minister Hatoyama and his
cabinet, at one month since coming into office, remained high,
scoring 60.9 PERCENT in a public opinion survey jointly conducted
by the Sankei Shimbun and Fuji News Network (FNN) on Oct. 17-18.
However, the Hatoyama cabinet's support rate dropped 7.8 percentage
points from a previous survey conducted Sept. 16-17 shortly after
its debut. Meanwhile, the now-ruling Democratic Party of Japan's
popularity also fell 3.8 points to 40.6 PERCENT . The Hatoyama
government still maintains momentum, but its economic policy
measures received much lower marks this time around. Economic trends
could have an impact on the Hatoyama cabinet's future support
ratings.

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