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Cablegate: Japanese Morning Press Highlights 10/26/09

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UNCLAS SECTION 01 OF 08 TOKYO 002459

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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 10/26/09

INDEX:

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

Futenma follies:
4) SDP President Fukushima expresses opposition to Henoko plan
(Nikkei)
5) Joint Chiefs of Staff Chairman Mullen says relocation of Futenma
facility to Nago is absolutely necessary (Yomiuri)
6) Hatoyama says Obama visit not deadline for decision on Futenma
relocation (Tokyo Shimbun)
7) Okada says relocation of Futenma facility outside Okinawa
inconceivable (Tokyo Shimbun)
8) Prime Minister expresses his intention to make decision on
Futenma facility relocation site this year; increasing likelihood he
will accept relocation to Henoko (Asahi)

Economy:
9) East Asia Summit chairperson announces agreement to hold
intergovernmental discussion on regional-scale FTA (Nikkei)
10) Japanese, Chinese, and Korean economics ministers agree to
conduct joint industry-government-academia study of FTA (Nikkei)
11) Aomori governor asks government to continue plutonium-thermal
project (Nikkei)

East Asian Community initiative:
12) Prime Minister Hatoyama says East Asian Community to include
U.S. (Nikkei)

Defense & security:
13) Gates asked Kitazawa to allow supply of Japan-U.S. jointly
developed MD to third countries (Tokyo Shimbun)

Politics:
14) DPJ chalks up two victories in Upper House by-elections (Asahi)

15) Special diet session convenes today (Nikkei)
16) Summary of Hatoyama's statements to press (Nikkei)

Articles:

1) TOP HEADLINES

Asahi: Yomiuri: Sankei: Tokyo Shimbun
DPJ wins Upper House by-elections in Kanagawa, Shizuoka, giving
impetus to upcoming extraordinary Diet session

Mainichi:
DPJ Secretary General Ozawa increases influence: Cautions members
against becoming self-conceited with next summer's Upper House
election in mind

Nikkei:
East Asia Summit statement calls for intergovernmental talks on
wide-scale FTAs

Akahata:
Foreign minister's statement on Futenma relocation issue drawing
criticism: Okinawa says "no" to new military base


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2) EDITORIALS

Asahi:
(1) Countries should together polish East Asia Community initiative

(2) Diet debate to kick off: Prime minister's leadership to be
tested

Mainichi:
(1) Upper House by-elections: LDP's decline serious
(2) Motor show: Auto makers should further improve environmental
technologies

Yomiuri:
(1) DPJ wins both by-elections: Diet debate to start
(2) East Asian Community: Promote open regional cooperation

Nikkei:
(1) It is impossible to discuss East Asian Community initiative
without U.S.
(2) Results of by-elections in Kanagawa, Shizuoka reflect DPJ's
momentum

Sankei:
(1) Hatoyama's Asia diplomacy: We want to reaffirm Japan-U.S.
relations are the axis of Japan's diplomacy
(2) DPJ wins two by-elections: We hope it will conduct politics
protecting the national interest without becoming self-conceited

Tokyo Shimbun:
(1) DPJ wins both by-elections: Do not disappoint people's
expectations
(2) East Asian Community: We want to see specific image built, based
on confidence and cooperation

Akahata:
(1) U.S. military's failure to pay highway tolls: It is abnormal to
pay leisure expenses with tax revenues

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, Oct. 25 & 26

NIKKEI (Page 2) (Full)
October 26

Oct. 25
Morning Met Indonesian President Yudhoyono at a hotel in Hua Hin.
Attended the East Asia Summit. Later attended a working lunch of the
East Asia Summit.
Afternoon Departed from Hua Hin Airport by a chartered plane. Gave
an interview to media agencies at Don Muang Airport. Departed from
the airport by government plane.
23:20 Arrived at Haneda Airport.
Oct. 26
00:08 Arrived at his private residence.

4) SDP's Fukushima opposed to Henoko plan

NIKKEI (Page 3) (Full)
Eve., October 24, 2009


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State Minister for Consumer Affairs and Declining Birthrate Mizuho
Fukushima, who heads the Social Democratic Party, one of the ruling
Democratic Party of Japan's two coalition partners, has indicated
that she is opposed to the current plan to relocate the U.S. Marine
Corps' Futenma Air Station in Ginowan, Okinawa Prefecture, to Henoko
in the island prefecture's northern coastal city of Nago. "I think
the opinion of the people of Okinawa Prefecture is against the
construction of the new base off Henoko," Fukushima said in a TBS TV
program aired this morning. "If the base is constructed there, it
will create serious problems throughout history," she added.

5) U.S. military top brass calls Futenma relocation to Nago
"absolutely necessary"

YOMIURI (Page 1) (Full)
October 24, 2009

Visiting U.S. Joint Chiefs of Staff Chairman Michael Mullen held a
press conference yesterday at the U.S. Embassy in Tokyo, during
which he said the planned relocation of the U.S. Marine Corps'
Futenma Air Station in Ginowan, Okinawa Prefecture, to the island
prefecture's northern coastal city of Nago is an "absolutely
necessary condition." He added, "Without it, I don't think we can
provide Japan and the region with security and defense support." The
U.S. military top brass officer even brought up Japan's security as
he urged Japan to carry out the bilateral agreement on the current
relocation plan at an early date, demonstrating the U.S.
government's resolute stance.

Mullen pointed out that U.S. force realignment plans, such as moving
Okinawa-based U.S. Marines to Guam, are also connected to budget
compilation by the Japanese and U.S. governments. "We should make a
decision as soon as possible," Mullen said. He confirmed that
Secretary of Defense Gates asked the Japanese government to have the
issue settled "before President Obama's visit to Japan (in
mid-November.)"

Meanwhile, there are calls from within the ruling Democratic Party
of Japan for moving Futenma airfield out of Okinawa Prefecture. In
this regard, Mullen clarified his opposition to that idea.
"Relocation to any other place (than Okinawa Prefecture) will damage
our security support to Japan and the region."

6) PM Hatoyama says Futenma decision before President Obama's visit
not necessary

TOKYO SHIMBUN (Top play) (Abridged)
October 25, 2009

Katsumi Sekiguchi in Hua Hin, central Thailand

Prime Minister Yukio Hatoyama held an informal meeting with
reporters accompanying him on his trip to Thailand (to attend the
ASEAN Summit) on the evening of Oct. 24. Discussing the relocation
of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa),
he said: "I will be the one to make the final decision. We will
study all the options and make a decision at an appropriate time."
He indicated that he will make a political decision after consulting
with Foreign Minister Katsuya Okada, Defense Minister Toshimi
Kitazawa, and other cabinet ministers in charge.

The U.S. is strongly demanding the relocation of the Futenma base to

TOKYO 00002459 004 OF 008


the coastal area of the U.S. forces' Camp Schwab (in Nago City) in
accordance with the existing agreement between the two countries.
Okada had indicated on Oct. 23 that the options of relocating the
base out of Okinawa or out of Japan should be abandoned.

Hatoyama indicated at the meeting with reporters that he will not
focus solely on the timing of U.S. President Barack Obama's visit to
Japan from Nov. 12, and intends to spend more time studying other
relocation sites for the Futenma base. However, it is unclear if
this will be acceptable to the U.S. side.

7) Okada says moving Futenma outside Okinawa is inconceivable,
studying Kadena consolidation option

TOKYO SHIMBUN (Top play) (Excerpts)
October 24, 2009

In a news conference on Oct. 23, Foreign Minister Katsuya Okada said
regarding the issue of relocating the U.S. Marine Corps' Futenma Air
Station (in Ginowan, Okinawa Prefecture), "In view of the current
dangerous situation of Futenma, we cannot afford to take time, so
moving it outside the prefecture is inconceivable," indicating that
the Hatoyama administration should give up its plan to move Futenma
outside the prefecture/country. Okada also presented a policy
direction to merge Futenma with Kadena Air Base (in Kadena,
Okinawa), raising doubts about the current plan to build an
alternative facility on the coastal area of Camp Schwab (in Nago in
the prefecture) by saying, "(Even if the envisaged alternative
facility is moved further offshore than the planned site), the
landfill area will increase."

Call for Prime Minister's swift decision

Commentary

Foreign Minister Okada urged the government to give up its plan to
move Futenma Air Station outside Okinawa/Japan and presented an
option instead to merge Futenma with Kadena Air Base in a bid to
elicit a swift decision from Prime Minister Hatoyama, who has been
inclined toward postponing a conclusion.

The Prime Minister has openly indicated that he will aim at moving
Futenma out of Okinawa. However, the prevailing view in the
government is that there is no chance for realizing such a plan
swiftly. Given the situation, the Prime Minister has come up with a
"package strategy" to put off the Futenma issue in exchange for
presenting new Afghan aid measures.

The Prime Minister has been set on sticking to this strategy
although he was pressed for the swift implementation of the existing
plan by U.S. Secretary of Defense Robert Gates and even plans to do
so during the visit to Japan by President Barack Obama in November.

Okada has concluded that even if the government somehow muddles
through the Obama visit, the more Hatoyama postpones its conclusion,
the more Washington will cling to the existing plan. Okada brought
up the Kadena integration plan, which he has long been nursing, in
the knowledge that he would be criticized for going behind the back
of the Prime Minister. In 2008, the Democratic Party of Japan
unveiled what is called the "Okinawa Vision" specifying a plan to
move Futenma Air Station out of Okinawa/Japan. In its manifesto for
the latest House of Representatives election, the DPJ simply pledged

TOKYO 00002459 005 OF 008


that it would move "in the direction of reexamining the existing
plan." Okada judged that the Kadena integration plan would still be
within the bounds of the DPJ pledge.

8) Government likely to accept plan to relocate Futenma to Henoko;
Prime Minister to make decision before year's end

ASAHI (Top play) (Excerpts)
October 24, 2009

Prime Minister Yukio Hatoyama indicated on Oct. 23 that he will make
a decision before year's end on the relocation site for the U.S.
Marine Corps' Futenma Air Station (in Ginowan, Okinawa Prefecture).
Foreign Minister Katsuya Okada announced on the same day the
intention to give up a plan to move Futenma outside Okinawa. It is
difficult to look for alternative sites other than Henoko in Nago,
Okinawa Prefecture -- the site agreed upon between Tokyo and
Washington in 2006 -- by the end of the year. Chances have increased
for the government to accept the existing plan or a slightly
modified version of it.

At a news conference, Okada referred to the option of integrating
the Futenma functions with Kadena Air Base (in Kadena in the
prefecture). But given Washington's negative view of this option and
local opposition, chances are slim that such a plan will
materialize.

9) East Asia Summit statement calls for intergovernmental talks on
wide-area FTAs

NIKKEI (Top play) (Lead para.)
October 26, 2009

Masanori Yamaguchi, Hua Hin, Thailand

Sixteen nations, including the Association of the Southeast Asian
Nations (ASEAN), Japan, China and South Korea, on Oct. 25 held an
East Asia summit in Hua Hin, Thailand. Participating countries
agreed to discuss two broad-based FTA initiatives - an East Asian
free trade agreement (EAFTA) with ASEAN, Japan, China and South
Korea as members, and a comprehensive economic partnership in East
Asia (CEPEA) participated in by all 16 nations - in parallel. They
issued a chairman's statement which also noted their affirmation of
the importance of Prime Minister Yukio Hatoyama's initiative for an
East Asian Community.

10) Japanese, Chinese, South Korean economic ministers agree to
launch joint FTA study by industry, government, academia next year

NIKKEI (Page 3) (Full)
October 26, 2009

Toru Shimoharaguchi, Hua Hin, Thailand

The economic ministers of Japan, China and South Korea met on Oct.
25 and formally agreed to launch a joint study on a free trade
agreement involving government, industry and academia early next
year. FTA research has thus far been conducted on the private
sector-level. However, the three countries have decided to involve
their governments as well in order to accelerate efforts to lay the
groundwork for the materialization of a Japan-China-South Korea
FTA.

TOKYO 00002459 006 OF 008

According to a joint statement, they will set up a joint research
council by the time a trilateral summit is held in South Korea
probably during the first half of next year. A senior government
official-level preparatory meeting will be organized at an early
date to discuss how to push forward the envisaged joint research.

11) Government, Aomori governor agree to continue nuclear fuel cycle
policy

NIKKEI (Page 5) (Excerpts)
October 24, 2009

Aomori Governor Shingo Mimura called on Chief Cabinet Secretary
Hirofumi Hirano, Education, Culture, Sorts and S&T Minister Tatsuo
Kawabata, and Economy, Trade and Industry Minister Masayuki Naoshima
yesterday and asked them to continue the nation's nuclear fuel cycle
policy, including the plutonium-thermal energy project to reprocess
used nuclear fuel. Hirano indicated willingness to continue the
previous government's policy, remarking: "The government has
recognized that the policy was agreed on between the central
government and the citizens of Aomori Prefecture."

12) East Asia Community to involve U.S. as well: Premier announces
his initiative at ASEAN-Japan-China-South Korea summit

Nikkei (Page 1) (Excerpts)
October 25, 2009

Osamu Sato, Hua Hin, Thailand

The Association of Southeast Asian Nations (ASEAN), Japan, China and
South Korea on Oct. 24 held a summit in Hua Hin, Thailand. Prime
Minister Yukio Hatoyama sought understanding of his initiative for
an East Asian Community. He also underscored the need for U.S.
involvement in the initiative, stressing his intention to make
Japan-U.S. relations the basis of Japan's diplomacy. Participating
countries agreed to make the currency swap agreement a multinational
framework before year's end. They also vowed to strengthen ties for
economic stabilization and development.

The prime minister called for support for his East Asian Community
initiative, noting, "I would like to promote the initiative, based
on the notion that it is for open regional cooperation." As for
specifics of the initiative, he explained, "ASEAN is at the center.
The building of the framework will move ahead along with the
development of the East Asian summit, involving ASEAN, Japan, China,
South Korea, and the ASEAN community."

At a time of strain in Japan-U.S. relations over U.S. Forces Japan
realignment, there is concern among U.S. government officials that
the prime minister's initiative for an East Asian Community could
lead to the exclusion of the U.S. from the framework.

13) U.S. reportedly asked Japan to allow the provision of SM-3 Block
2A intercept missiles to third countries

TOKYO SHIMBUN (Page 2) (Slightly abridged)
October 24, 2009

It was learned that at his meeting with Defense Minister Toshimi
Kitazawa on Oct. 21, U.S. Secretary of Defense Robert Gates had

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asked Japan to take steps to enable the SM-3 Block 2A sea-based
intercept missiles jointly developed by the Japanese and U.S.
governments for missile defense (MD) to be provided to Europe and
other third countries. This was revealed on Oct. 23 by several
sources familiar with Japan-U.S. diplomacy.

This was a move made in light of the U.S. government's announcement
last month on the discontinuation of the deployment of a MD facility
in East Europe, which was strongly opposed by Russia, and the
reinforcement of a MD network utilizing sea-based weapons for
dealing with mid-range missiles. This measure may lead to the
relaxation of the three principles on arms exports, and opposition
is expected from Democratic Party of Japan (DPJ) members who were
formerly members of the (defunct) Japan Socialist Party and from the
Social Democratic Party (SDP), the DPJ's coalition partner.

Gates asked for the relaxation of Japan's export policy. Kitazawa
did not give an answer, telling him: "This is a domestic issue. We
will discuss this inside the government." However, the U.S. plans to
deploy Block 2A from 2018, and the dominant view in the ministries
of foreign affairs and defense is that it will be difficult for
Japan to refuse to provide Block 2A to third countries. The United
States wants to get an answer from Japan by 2010, intending to
supply SM-2 Block 2A to Germany and other European countries. The
Hatoyama administration will likely face a tough decision.

14) DPJ wins two Upper House by-elections

ASAHI (Top play) (Excerpts)
October 26, 2009

First-time candidates backed by the Democratic Party of Japan (DPJ)
scored victories in two House of Councillors by-elections held
yesterday for a seat each in Kanagawa and Shizuoka prefectures. The
party maintained its strength in the first national election since
its landslide victory in the last House of Representatives election.
Voter turnout stood at 28.67 PERCENT in Kanagawa and 35.64 PERCENT
in Shizuoka.

The numbers of seats held by parliamentary groups after the
by-elections are: 120 seats for the DPJ, Shinrokufukai, People's New
Party, Nihon group; 85 for the Liberal Democratic Party and the
Reform Club; 21 for the New Komeito; seven for the Japanese
Communist Party; five for the Social Democratic Party and the
constitution-protection group.

Yoichi Kaneko, 47, elected in Kanagawa Prefecture: Works at the
Cabinet Office and the OECD Paris Headquarters after serving as a
part-time lecturer at Aoyama Gakuin University; graduated from the
University of Tokyo.

Hirokazu Tsuchida, 59, elected in Shizuoka Prefecture: Is a doctor
and serves as president of a medical corporation and of a social
welfare corporation; graduated from Kansai Medical University

15) Extraordinary Diet session convenes today

NIKKEI (Page 2) (Abridged)
October 26, 2009

The extraordinary Diet session will be convened today, kicking off
the first debate between ruling and opposition parties since the

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inauguration of the Hatoyama administration. This session is
scheduled to last for 36 days until Nov. 30. The government and the
ruling parties are giving top priority to compiling the FY2010
budget before the end of this year and have narrowed down the number
of bills to be submitted to the Diet to 12, including a bill on
measures to deal with the new influenza epidemic. The goal is to
have all the bills passed, but it is possible that the Diet session
may be extended depending on how the opposition parties handle Diet
deliberations.

16) Gist of PM Hatoyama's remarks at informal meeting with reporters
on October 24

NIKKEI (Page 5) (Excerpts)
October 25, 2009

Following is the gist of Prime Minister Yukio Hatoyama's remarks at
an informal meeting with reporters accompanying him on his trip to
Thailand (to attend the ASEAN Summit) on Oct. 24:

Futenma

I will be the one to make the final decision. We will make various
efforts to arrive at a conclusion, and I will make the decision.
(Although the foreign minister has said that relocation out of
Okinawa will be difficult), this does not mean that such an option
no longer exists. There are different options. The feelings of the
people of Okinawa need to be respected. We are looking for new
options in consideration of such feelings. I will make the decision
at an appropriate time.

It will take some time (to arrive at a conclusion), and at this
point, it is not possible to do so immediately. I do not think we
need to rush a decision in time for President Obama's visit.

Japan-U.S. alliance

Japan will continue to value the Japan-U.S. alliance and the
bilateral security treaty. On the other hand, Japan has become too
dependent on the United States and has lost its capacity for
independent thinking.

East Asian community

We have no intention of excluding the U.S. or any other country. We
would like to give emphasis to a body founded on the cooperation of
the East Asian countries. I am not thinking of a rigid organization
with a fixed idea of which countries should be members and which
should not.

ROOS

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