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Cablegate: Japanese Morning Press Highlights 10/21/09

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ZNR UUUUU ZZH
P 202358Z OCT 09
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHKSO/AMCONSUL SAPPORO 7512
RUEHBJ/AMEMBASSY BEIJING 1482
RUEHUL/AMEMBASSY SEOUL 8140
RUCNDT/USMISSION USUN NEW YORK 7670

UNCLAS SECTION 01 OF 09 TOKYO 002421

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 10/21/09

INDEX:

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

U.S.-Japan relations
4) Gist of Okada-Gates talks (Mainichi)
5) Policy Board Chairperson Koike participates in workshop sponsored
by U.S.-Embassy (Akahata)
6) House of Councillors President Eda conveys to Ambassador Roos
people's hopes for presidential visit to atomic-bombed cities
(Akahata)
7) Kanagawa and Okinawa governors to visit U.S. (Nikkei)

Futenma saga:
8) Gates: Failure to come to quick resolution of Futenma issue could
delay realignment of U.S. forces in Japan (Nikkei)
9) Gates asks Okada to keep to original plan for Futenma facility
relocation (Asahi)
10) Shrinking options for Futenma resolution (Nikkei)
11) Ginowan Mayor Iha criticizes Futenma relocation plan (Akahata)


Afghanistan:
12) SDP makes proposal for Afghan assistance (Nikkei)

Politics:
13) Ruling and opposition parties agree to convene special Diet
session on Oct. 26 (Nikkei)
14) Prime Minister to explain "fraternal society" in first policy
speech before Diet on Oct. 26 (Asahi)
15) LDP and Japan Renaissance Party agree to form parliamentary
coalition party (Asahi)
16) Four Upper House lawmakers ask to join DPJ (Asahi)
17) Japan Post President Nishikawa announces resignation (Nikkei)

Economy:
18) Govt. mulling injection of public funds to keep JAL afloat
(Nikkei)

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Nikkei & Sankei
Japan Post President Nishikawa expresses intention to resign

Tokyo Shimbun:
Toyota to voluntarily repair seven models

Akahata:
Japan's poverty rate in 2006 stands at 15.7 PERCENT , worst level
among industrialized countries

2) EDITORIALS

Asahi:
(1) Don't forget about main purpose of postal privatization
(2) Road to nuclear abolition: Implement measures earlier than
proposed in report drafted at meeting of the minds


TOKYO 00002421 002 OF 009


Mainichi:
(1) Starting from scratch on review of postal business is
undesirable
(2) Revival of welfare supplement for single-mother families:
Fine-tuned aid needed

Yomiuri:
(1) Don't reverse postal privatization policy
(2) Misuse of subsidies by social welfare company: Expose actual
state of sloppy subsidy administration

Nikkei:
(1) Is government trying to pull plug on postal reform?
(2) Where is control tower for economic and fiscal management?

Sankei:
(1) Reversal of postal privatization regrettable
(2) Foreign minister urged to be rational by enacting early cargo
inspection bill promptly

Tokyo Shimbun:
(1) Postal services should be reviewed from viewpoint of users'
convenience
(2) Nuclear disarmament international committee: Retreated efforts
for greenhouse reductions regrettable

Akahata:
(1) Government's tax commission: Bring back democratic principle for
tax system

3) Prime Minister's schedule, October 20

NIKKEI (Page 2) (Full)
October 21, 2009

08:55 Japan Security Council meeting at the Prime Minister's
Official Residence (Kantei)
09:18 Cabinet meeting
10:17 Met Minister of Economy, Trade, and Industry (METI) Masayuki
Naoshima and International Trade Policy Bureau Director General
Hideichi Okada.
11:20 Greeted the Empress on her birthday with wife Miyuki at the
Imperial Palace.
12:18 Arrived at the Kantei.
12:57 Visited Kawasaki plant of Nihon Rikagaku Industry, a chalk
manufacturer, in Kawasaki City.
13:44 Campaign speech for Kawasaki mayoral election in front of
Mizonokuchi Station
14:46 Left JR Shin-Yokohama Station on Kodama 663 train.
16:28 Campaign speech for Shizuoka House of Councillors by-election
in front of JR Hamamatsu Station
17:10 Left JR Hamamatsu Station on Hikari 478 train.
18:21 Arrived at JR Shin-Yokohama Station.
18:53 Campaign speech for Kanagawa Upper House by-election in front
of JR Yokohama Station
19:57 Dinner with secretaries and others at Akasaka Shisen Hanten
Chinese restaurant in Hirakawa-cho
22:42 Arrived at his private residence.

4) Gist of meeting between Foreign Minister Okada, U.S. Secretary of
Defense Gates


TOKYO 00002421 003 OF 009


MAINICHI (Page 5) (Full)
October 21, 2009

The following is the gist of the meeting between Foreign Minister
Katsuya Okada and U.S. Secretary of Defense Robert Gates at the
Ministry of Foreign Affairs on Oct. 20.

Japan-U.S. relations

Okada: The Hatoyama administration fully understands the importance
of the Japan-U.S. alliance.

Gates: The Japan-U.S. alliance is the cornerstone of U.S. security
policy in Asia.

U.S. Forces Japan (USFJ) realignment

Gates: The current plan for the relocation of the USFJ's Futenma Air
Station is the result of a long process of deliberations between
Japan and the U.S. and is the only feasible plan. We hope for a
decision in line with the Japan-U.S. agreement as soon as possible.

Okada: We are currently examining the process that led to the
current plan. We are aware of the Japan-U.S. agreement. On the other
hand, the political situation in Japan has changed. We ask for your
understanding of the difficult political situation.

Afghan aid

Gates: It is for Japan to decide what form of aid it will provide to
Afghanistan and Pakistan.

Okada: We are drawing up aid plans that will take full advantage
Japan's fortes but we have not yet reached the stage of submitting
bills on logistics support to the extraordinary Diet session.

Nuclear issue

Okada: The investigation into the secret nuclear agreement is
Japan's internal affair. The government is studying the question of
no-first-use of nuclear weapons.

Gates: The two countries share the common goal of achieving a
nuclear-free world, but the flexibility of deterrence is also
necessary.

(A meeting by Okada, Gates, and two other officials was held after
this, but the exchanges have not been made public.)

5) Policy Committee Chairman Koike attends workshop hosted by
American Embassy

AKAHATA SHIMBUN (Page 2) (Full)
October 21, 2009

Japanese Communist Party Policy Commission Chair Akira Koike
attended a (Diet member) workshop at the invitation of the Tokyo
American Center of the U.S. Embassy in Japan. The theme of the
meeting was "Cancer clinical trials: The importance of International
Cooperation and Government Support." Participants also included
lawmakers of the Democratic Party of Japan.


TOKYO 00002421 004 OF 009


After exchanging greetings with Ambassador John Roos at the
workshop, Koike had a friendly talk with him.

Participants discussed the desired nature of cancer treatments in
Japan and the U.S., following a speech given by Dr. Edward L.
Trimble of the National Cancer Institute of the U.S.

6) Eda calls for Obama's visit to A-bombed cities

ASAHI (Page 4) (Full)
October 21, 2009

House of Councillors President Satsuki Eda held talks with U.S.
Ambassador to Japan John Roos in the Diet building on Oct. 20.
According to the Upper House Secretariat, Eda said, "Japanese people
and the Japanese government have strong hopes for (the President) to
visit Hiroshima and Nagasaki," in connection with President Barack
Obama's visit to Japan in November. Ambassador Roos was quoted as
responding, "That is a matter for the President to decide."

7) Kanagawa, Okinawa governors to visit U.S. for SOFA revision

NIKKEI (Page 2) (Full)
October 21, 2009

A liaison consultative body of governors of 14 prefectures,
including Tokyo and Hokkaido, hosting U.S. bases announced yesterday
that Kanagawa Gov. Shigefumi Matsuzawa and Okinawa Gov. Hirokazu
Nakaima will visit the United States Nov. 4-6. Matsuzawa and Nakaima
will meet high-ranking American government officials to request the
Japanese and U.S. governments consult on such issues as reviewing
the Japan-U.S. Status of Forces Agreement.

8) Washington concerned about delay in realignment of U.S. forces in
Japan

NIKKEI (Page 2) (Full)
October 21, 2009

Itaru Oishi, Washington

In talks on Oct. 20, U.S. Secretary of Defense Robert Gates called
for an early settlement to the relocation of the U.S. Marine Corps'
Futenma Air Station and other issues. This reflects Washington's
growing concern that if this situation persists, implementation of
the realignment of U.S. forces in Japan might be delayed. The United
States launched the global transformation of U.S. forces in 2001
with the aim of building a system capable of rapidly dealing with
terrorism by operating the U.S. military in combination with the
forces of its allies. The realignment of U.S. forces in Japan is in
line with such a plan. The planned relocation of Marine Corps from
Okinawa to Guam is part of the U.S.'s Asia strategy with the rise of
China in mind.

Washington fears that if the Futenma relocation issue, for which the
likelihood of resolution is uncertain, takes a toll on the planned
relocation of U.S. Marines to Guam, it could upset the entire U.S.
global strategy. The U.S. latitude in the Futenma relocation issue
is limited.

Ahead of Gates's Japan visit, a high-ranking U.S. Defense Department
official made a statement accepting "minor modifications" to the

TOKYO 00002421 005 OF 009


Futenma relocation site apparently in a bid to settle the issue as
soon as possible. If the outcome falls short of expectations, it
might result in disappointment with the Hatoyama administration.

9) Gates urges Okada to implement existing Futenma relocation plan

ASAHI (Page 1) (Full)
October 21, 2009

Akira Uchida

U.S. Secretary of Defense Robert Gates arrived in Japan on Oct. 20
and held talks with Foreign Minister Katsuya Okada at the Foreign
Ministry. Gates called for the implementation of the Japan-U.S.
agreement to relocate the U.S. Marine Corps' Futenma Air Station to
the Henoko district in the city of Nago in Okinawa Prefecture,
saying: "It is the only feasible plan. It is necessary to steadily
implement U.S. force realignment." Okada said: "We want to reach a
conclusion at the earliest possible time, but I hope you will
understand the difficult political situation," avoiding a clear-cut
answer.

Gates is the first cabinet minister of the Obama administration to
visit Japan since the Hatoyama administration was launched. Gates is
scheduled to hold talks with Prime Minister Yukio Hatoyama and
Defense Minister Toshimi Kitazawa today.

"The United States spent a long time looking at various options, and
the present plan is the result of those discussions," Gates said
regarding the Futenma relocation issue. "We would like to see (the
Japanese government) reach a conclusion as soon as possible."

Regarding Afghanistan assistance, Gates expressed his appreciation
for the Maritime Self-Defense Force's refueling mission in the
Indian Ocean, which will expire next January, saying, "It was of
great significance." He also indicated that Japan's new aid
measures, which the Hatoyama administration is looking into, are a
matter for Tokyo to decide, while expressing hopes for powerful
support. Okada told Gates that the government would not be able to
submit a bill to extend the refueling mission to the next
extraordinary Diet session.

10) PM Hatoyama's options on Futenma relocation narrowed down by
meeting between FM Okada, Defense Secretary Gates

NIKKEI (Page 2) (Full)
October 21, 2009

The meeting between Foreign Minister Katsuya Okada and U.S.
Secretary of Defense Robert Gates on Oct. 20 illustrated the gap
between Japan and the United States on the pending issue of the
relocation of the U.S. forces' Futenma base (in Ginowan City,
Okinawa). With the U.S. side's position of seeking an early solution
becoming clear, Prime Minister Yukio Hatoyama is now facing a
difficult decision amid the persistent calls for Futenma's
relocation out of Okinawa both in Okinawa and in the coalition
government itself.

Okada and Gates hardly smiled at all during their meeting lasting 35
minutes. Gates said that "there can be no progress in Guam
relocation without progress in Futenma relocation," warning that the
plan to relocate U.S. Marines in Okinawa to Guam under the

TOKYO 00002421 006 OF 009


Japan-U.S. agreement will also be in limbo if Futenma relocation is
stalled. He pressed for the relocation of the Futenma base under the
existing plan. Gates will meet with Hatoyama and Defense Minister
Toshimi Kitazawa on Oct. 21.

Okada explained at the meeting that the government is in the process
of examining the negotiation process that led to the Japan-U.S.
agreement and would only say, "We are fully aware that an agreement
exists between Japan and the U.S." He cited "domestic political
circumstances" as the reason for the delay in reaching a conclusion.
He also explained that candidates advocating a review of the current
relocation plan won in all four single-seat districts in Okinawa in
the recent House of Representatives election.

The situation in Okinawa is indeed complicated. If the incumbent
mayor loses the Nago mayoral race in January, the execution of the
Japan-U.S. agreement may come up against a wall in light of the
expressed popular will in the city in favor of relocation out of
Okinawa. The relocation project may not be completed by the 2014
deadline.

Okada did not give a timeframe for reaching a final decision on the
relocation site. The main issue for now is the proposal to make
minor modifications to the current plan and move the relocation site
in Camp Schwab further offshore. A senior U.S. Defense Department
official indicated acceptance of this proposal just before Gates's
visit to Japan. Gates, in his statements, has also indicated he
"does not necessarily reject minor modifications to the current
plan."

However, it is clear from the meeting on Oct. 20 that the U.S. is
highly unlikely to agree to the relocation of Futenma out of
Okinawa. While the Hatoyama administration is still looking at other
options, the reality is that the Japanese side's options have been
narrowed down.

11) Ginowan Mayor raps Pentagon chief

AKAHATA (Page 2) (Full)
October 21, 2009

Okinawa Prefecture's Ginowan Mayor Yoichi Iha criticized U.S.
Secretary of Defense Gates for indicating his intention to accept
minor changes to the planned relocation of the U.S. Marine Corps'
Futenma Air Station in Ginowan within the bounds of an
intergovernmental agreement reached between Japan and the United
States on the Futenma relocation. "What he said makes light of the
people of Okinawa," Iha told reporters yesterday in Naha, Okinawa
Prefecture. "The Marines do not belong in Japan or in Okinawa," he
added.

The current relocation plan for Futenma airfield is to build an
alternative facility in a coastal area of Camp Schwab, a U.S.
military base located in Nago City's Henoko district. "The plan must
not destroy the ocean in a place like Henoko," Iha said. He also
said, "The coalition government led by the Democratic Party of Japan
would not do anything like that."

12) SDP makes proposals for Afghan assistance

NIKKEI (Page 2) (Full)
October 21, 2009

TOKYO 00002421 007 OF 009

Social Democratic Party (SDP) policy chief Tomoko Abe met yesterday
with Foreign Minister Katsuya Okada at the Foreign Ministry. In the
meeting, Abe made proposals for civilian assistance based on her
recent visit to Afghanistan. The main points of her proposals were
(1) construction of medical institutions, (2) teacher training, and
(3) regional development by cooperating with local communities.
Okada stressed that "although the security situation in the country
is poor, we must expand the civilian assistance that Japan is able
to offer."

13) Parties agree to convene extra Diet session on Oct. 26

NIKKEI (Page 2) (Full)
October 21, 2009

Yesterday the ruling and opposition parties agreed at meetings of
the steering committees of the two Diet chambers to convene an
extraordinary Diet session on Oct. 26. They also agreed that Prime
Minister Yukio Hatoyama will deliver his policy speech on the 26th.
At the meeting of the Lower House Steering Committee, the ruling
camp proposed that the extra session run until Nov. 30, but two
opposition parties - the Liberal Democratic Party and New Komeito -
insisted that the session should last until the end of the year. The
ruling and opposition camps also failed to agree on the allocation
of time for party representatives' interpellation with respect to
the speech. The two camps will meet again today.

14) Hatoyama to explain "fraternal society" in policy speech

ASAHI (Page 4) (Full)
October 21, 2009

In his first policy speech to the Diet, Prime Minister Yukio
Hatoyama will pledge to realize a society modeled on his pet concept
of "fraternity," according to informed sources. He aims to
underscore differences between his and past prime ministers'
speeches, which were based on manuscripts prepared by government
agencies. He intends to use his "own words."

Hatoyama will deliver the speech to both houses of the Diet on Oct.
26 -- the first day of the extraordinary Diet session.

Hatoyama said in a ministerial meeting yesterday: "I will outline
the government's domestic and foreign policies. But I will not
merely present policy after policy." The government plans to submit
about 10 bills, including a bill to freeze the planned sale of Japan
Post shares, to the extraordinary Diet session. But he said: "I am
going to briefly refer to the bills; I will not go into their
details."

In the speech, Hatoyama will emphasize five key policies: (1)
Thoroughly eliminate wasteful spending; (2) protect the people's
livelihoods and lives; (3) realize an economy without a bias toward
economic rationality; (4) grant more power to local governments in a
substantial way; and (5) strive to make Japan a "bridge" to the
world.

Most past policy speeches merely listed policy after policy drafted
by government agencies. But Hatoyama, giving priority to having
people feel there has been a change of government, intends to
explain principles, including the significance of building a

TOKYO 00002421 008 OF 009


"fraternal society."

15) LDP, Japan Renaissance Club agree to form joint parliamentary
group

ASAHI (Page 4) (Full)
October 21, 2009

The Liberal Democratic Party (LDP) and the Japan Renaissance Party
have agreed to form a joint parliamentary group in the Lower House,
following one formed in the Upper House, and notified the Lower
House of the decision on Oct. 20. The distribution of strength in
the Lower House after the formation of their joint parliamentary
group is as follows.

Q The Democratic Party of Japan and the Independents' Club: 311
Q The LDP and the Japan Renaissance Party: 119
Q The New Komeito: 21
Q The Japanese Communist Party: 9
Q The Social Democratic Party and the Citizens' Group: 7
Q The Your Party: 5
Q The People's New Party: 3
Q The Group to Protect National Interests and the Livelihood of the
People (Kokushu-no-Kai): 3
Q Independents: 2

16) Four independent Upper House members to join DPJ

ASAHI (Page 4) (Full)
October 21, 2009

Four independent House of Councillors members, who belong to the
Democratic Party of Japan-led parliamentary group, yesterday
submitted to DPJ Secretary General Ichiro Ozawa requests to join the
DPJ. The four Upper House members are Yoetsu Suzuki (Akita
Prefecture), Toshiro Tomochika (Ehime), Hajime Hirota (Kochi), and
Ikitsu Toyama (Miyazaki). Their requests to join the party are
expected to be approved this week. They will bring the number of the
DPJ Upper House members to a total of 113, nine short of a
single-party majority. Ozawa, after meeting with the four, said to
reporters, "Their joining the party would greatly contribute to (the
stability of the administration)."

17) Japan Post President Nishikawa announces resignation

NIKKEI (Top play) (Excerpts)
October 21, 2009

Japan Post Holdings Co. President Yoshifumi Nishikawa (71) announced
his intention to step down at a press conference held on the evening
of Oct. 20 at the head office of the company. He decided that it
would not be appropriate for him to remain in the post, as there is
a wide gap between the present management policy and the new policy
the government adopted at a cabinet meeting on the morning of the
same day in order to review the postal business. His successor will
most likely be picked from among private citizens.

The government is now pressing ahead with the work of picking a
successor to Nishikawa under the leadership of State Minister for
Postal Reform Shizuka Kamei. It appears that the government is
focusing on CEOs of privatized companies, such as former public
corporations. NTT Chairman Norio Wada and Central Japan Railway

TOKYO 00002421 009 OF 009


Company (JR Tokai) Chairman Yoshiyuki Kasai have been named as
candidates. There is a possibility that the next president will be
picked as early as the 21st.

18) Government eyes public funds for JAL reconstruction

NIKKEI (Page 1) (Lead paragraph)
October 21, 2009

The government is examining a possible infusion of public funds to
help rebuild Japan Airlines Corp. The examination is in response to
a suggestion by a task force established under the construction and
transport minister. The amount of assistance would total 300 billion
yen, including money from the private sector. The government appears
to be planning to inject public funds into JAL under the revised
Industrial Revitalization Special Measures Law and through the Japan
Corporate Revitalization Support Platform. The task force also calls
for 200 billion yen worth of emergency loans in November. As it
stands, the government is likely to strengthen its involvement in
the JAL reconstruction plan.

ROOS

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