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Cablegate: Daily Summary of Japanese Press 11/18/09

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2667/01 3220819
ZNR UUUUU ZZH
P 180819Z NOV 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7645
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 9832
RUEHFK/AMCONSUL FUKUOKA 7485
RUEHOK/AMCONSUL OSAKA KOBE 1296
RUEHNAG/AMCONSUL NAGOYA 4665
RUEHKSO/AMCONSUL SAPPORO 7993
RUEHBJ/AMEMBASSY BEIJING 1903
RUEHUL/AMEMBASSY SEOUL 8579
RUCNDT/USMISSION USUN NEW YORK 8048

UNCLAS SECTION 01 OF 07 TOKYO 002667

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: DAILY SUMMARY OF JAPANESE PRESS 11/18/09

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INDEX:

INDEX:

(1) Interview with U.S. Under Secretary of State Hormats: Japan,
U.S. can work together in the environment area; hopes to see pending
issues, including insurance market, aviation liberalization talks,
move forward (Nikkei)

(2) Editorial: Prime Minister's statement; Does he intend to impair
trust between Japan and U.S.? (Sankei)

(3) 60 days of the Hatoyama administration (Part 1): The Prime
Minister's "illusion" on the Japan-U.S. alliance (Yomiuri)

(4) 60 days of the Hatoyama administration (Part 2): "Okinawa's
feelings" complicate the issue (Yomiuri)

ARTICLES:

(1) Interview with U.S. Under Secretary of State Hormats: Japan,
U.S. can work together in the environment area; hopes to see pending
issues, including insurance market, aviation liberalization talks,
move forward

NIKKEI (Page 7) (Full)
November 18, 2009

Visiting U.S. Under Secretary of State for Economic, Energy and
Agricultural Affairs Robert Hormats on Nov. 17 gave an interview to
the Nihon Keizai Shimbun. During the interview he underscored that
Japan and the U.S. can display leadership, if they strengthen ties
on the environment and assistance to developing countries. Regarding
the economic relationship, he expressed hopes to see conditions for
competition improve in Japan's insurance market and liberalization
talks make progress. He also said that he is not envisaging the
"U.S.'s exclusion" from the East Asian Community framework. The
interview follows:

-- How do you view the present state of and prospects for the global
economy?

"The global economy is gradually picking up, compared with a year
ago and six months ago, due in part to policy coordination among
Japan, the U.S., and Europe. However, the employment situation is
very severe. It is also necessary to keep an eye on the financial
market. It is too early for all countries and regions to adopt an
exit strategy. Now the first thing we need to do is to provide
momentum to the economic recovery."

-- How do you view Japan-U.S. relations from the economic
perspective?

"When President Obama was arranging the details of his Asia trip, we
first decided to have him deliver the most important speech in
Tokyo. No bilateral relationship is closer than that between Japan
and the U.S., as can be seen in trade, investment and financial
services. If we turn our eyes to global challenges, such as the
environment, energy, and assistance to developing countries, Japan
and the U.S. are deepening ties as major countries that lead the
world. While the President was visiting Japan, both countries agreed
to work together on research on clean-energy technology. This

TOKYO 00002667 002 OF 007


reflects our deepening ties."

-- Japan's basic stance in economic policies, such as postal
privatization, is beginning to change due to the recent change in
government.

"It is Japan that chooses its policies and implements them. The U.S.
respects Japan's decision. Concerning postal liberalization, too,
the implementation of policy is Japan's responsibility. However, we
hope that Japan will consolidate fair competitive conditions for
postal services for all insurance companies, including American
companies, and postal insurance companies. There are also other
individual issues, such as expansion of imports of U.S. beef by
Japan and an open skies policy to mutually open our aviation
markets.

"However, as the U.S. has many pending issues with Europe and
Canada, pending issues with Japan are in a way the flip side of the
closeness of the bilateral relationship. Constructive and candid
talks will lead to settlements."

-- How do you view Prime Minister Yukio Hatoyama's Initiative for an
East Asian Community?

"We have had many meetings with the Japanese government. I do not
believe that Japan is mulling this initiative with the aim of
excluding the U.S. The U.S. is ready to deepen engagement with the
Asia-Pacific region. There is ample room for us to work together
with Japan, which is of the same mind as us."

-- Will the meaning of the Group of Eight industrialized nations
(G-8) change if the Group of Twenty nations (G-20) becomes a regular
gathering?

"The G-20 will never replace the G-8. The G-20 is a forum for
leaders of the member nations to freely discuss broad-based issues,
such as financial services. The G-8 is a venue for formulating
strategies demonstrating specific approaches to issues challenging
the G-8. The presence of Japan, which excels in advanced
technologies and environmental measures, will continue to carry
special weight."

(2) Editorial: Prime Minister's statement; Does he intend to impair
trust between Japan and U.S.?

SANKEI (Page 2) (Full)
November 17, 2009

Prime Minister Yukio Hatoyama's statement has brought about a
situation that could impair the trust between Japan and the U.S.,
which is very regrettable.

Regarding the Japan-U.S. ministerial-level working group to discuss
the relocation of the U.S. Marine Corps' Futenma Air Station in
Ginowan City, Okinawa Prefecture, the prime minister since right
after the bilateral summit on Nov. 13 has stressed a view that is
different from that of President Obama.

Characterizing the working group as a vehicle intended to implement
the agreement, including the relocation of the Futenma Air Station,
the President expressed his hope to see the group finish its task
swiftly. Prime Minister Hatoyama also stated, "I would like to

TOKYO 00002667 003 OF 007


settle the issue as soon as possible."

However, the prime minister on the 14th revealed to reporters in
Singapore his intention not to regard the implementation of the
Japan-U.S. accord as a premise for establishing a working group. He
said, "If that is the premise, there is no need to set up a working
group." He also said, "I did not promise to settle the issue by the
year's end." In a speech delivered in Tokyo on the 14th, too, the
President categorically said, "In order to implement the Japan-U.S.
agreement."

If an agreement reached between top leaders is broken overnight, the
meaning of a summit itself, a venue for reaffirming the alliance,
would be negated. It is reasonable for Liberal Democratic Party
Policy Research Council Chairman Shigeru Ishiba criticized the prime
minister's statement, saying, "The statement is a betrayal (to the
U.S.)."

The prime minister should rectify his statement and re-acknowledge
the significance of achieving a settlement before the year is out,
based on the Japan-U.S. accord and arrangements between the
governments of both countries.

Any delay in settling the Futenma relocation issue would hamper the
compilation of the fiscal 2010 budget late this year from the
perspective of including related expenses in it. In the U.S.
Congress, the Senate has substantively trimmed expenses for
transferring 8,000 Marines stationed in Okinawa to Guam earmarked in
the national defense budget legislation. The Japanese government's
remaining unclear about the implementation of the agreement has
reportedly affected this decision.

A delay in the government's response will delay lessening the
base-hosting burden of local residents in the vicinity of the
Futenma Air Station, who have been complaining about the noise
pollution and danger of the airfield. It will also prevent a smooth
transfer of U.S. Marines to Guam. If the government is unable to
come up with a feasible option other than the relocation of the
Futenma functions to the coastal area of Camp Schwab, settling the
Futenma issue over the existing plan by the end of the year would be
a realistic and indispensable option.

The Nago mayoral election in January next year will possibly
complicate the city's acceptance of the Futenma relocation. The
prime minister himself said at the summit, "Settling the Futenma
relocation issue will become more difficult over time." However, he
indicated a stance of waiting to see the outcome of the election.

The state is responsible for making a decision on issues concerning
the U.S. military's deterrence and the burden of Okinawa in a
comprehensive manner. The prime minister's stance of waiting to see
the outcome of a local election will raise a question about his
capability to make a proper decision as the nation's leader.

(3) 60 days of the Hatoyama administration (Part 1): The Prime
Minister's "illusion" on the Japan-U.S. alliance

YOMIURI (Page 4) (Full)
November 15, 2009

On Nov. 14, the day after the Japan-U.S. summit, foreign affairs and
defense bureaucrats were voicing their expectation that the

TOKYO 00002667 004 OF 007


deadlocked Futenma relocation issue in Okinawa will now begin to
move forward.

They were saying: "Now that the President has spoken to him
face-to-face, the Prime Minister probably understood America's
determination." "The issue will probably move forward quickly."

At the summit meeting on Nov. 13, President Barack Obama made a
strong demand to Prime Minister Yukio Hatoyama about the
implementation of the relocation agreement. While the Japanese side
had expected that there would be no in-depth discussion of the
Futenma issue due to the desire to play up the "success" of the
summit, a senior Ministry of Foreign Affairs (MOFA) official
revealed that "the President addressed the issue head-on." It was
clear that what he meant by "time" is a solution before the end of
the year.

The President, in the belief that Hatoyama had expressed his
"understanding," announced to the world in a speech in Tokyo on Nov.
14: "We have agreed to move expeditiously through a joint working
group to implement the agreement that our two governments reached."

However, on the very same day, Hatoyama expressed his displeasure to
reporters in Singapore: "I have not promised to resolve the issue by
year's end." He further indicated that (the working group) will
examine the issue from scratch and a conclusion will be put off
until next year. This development served to undermine President
Obama's speech, in which he referred to his agreement with the Prime
Minister as an achievement of the summit meeting.

The U.S. side has been perplexed since the inauguration of the
Hatoyama administration, which advocates an "equal Japan-U.S.
relationship," in September. The U.S. has experienced changes of
administration through elections numerous times. Therefore, it had
taken it for granted that "no matter what has been said during the
election campaign, a pragmatic approach will be adopted once in
power." It had also thought that the Hatoyama administration would
conform to this "American common sense."

The U.S. side had been optimistic that once the new Japanese
government completed its policy review, it would come to understand
the importance of the Japan-U.S. alliance. Therefore, Assistant
Secretary of State Kurt Campbell and other officials have taken a
soft approach of "watching and waiting patiently" since "it is the
obligation of a close ally to listen." At the first bilateral summit
in New York in September, the President did not mention the Futenma
issue and did not even touch on U.S. Forces Japan (USFJ) realignment
at all.

In retrospect, senior MOFA officials realized that after the summit,
Hatoyama and Foreign Minister Katsuya Okada came to have the
"illusion" that "U.S. concerns about the Futenma issue are not that
serious."

Even with regard to the "deepening of the Japan-U.S. alliance,"
which is supposed to be the centerpiece of the summit meeting,
subtle differences between the two leaders surfaced at their joint
news conference on Nov. 13.

"The Japan-U.S. alliance is not limited to security. The bilateral
alliance can be deepened by cooperation between the two countries on
disaster prevention, medical services, education, the environment,

TOKYO 00002667 005 OF 007


and other issues."

The Prime Minister declared proudly that consultations on the
"deepening of the Japan-U.S. alliance" will take place for one year
and the President had agreed to this. According to close aides of
the Prime Minister, he intends to put priority on cooperation in the
non-military fields.

However, the Japan-U.S. security treaty is premised on the U.S.'s
defense of Japan and Japan's provision of military bases to the
USFJ. There is no denying that the USFJ forms the basis of Japan's
stability and prosperity. The U.S. will not accept a "deepening" of
the alliance that does not take this fact into account. What
Hatoyama is undertaking is a "transformation of the alliance."

There is growing pessimism in Washington about the future because
"most of the Democratic Party of Japan (DPJ) Diet members are
politically left-of-center. Even if they come to control a majority
in the House of Councillors after the election next summer,
uncertain policies (toward the U.S.) will continue." (Bruce
Klingner, senior research fellow at Heritage Foundation)

"We share the same goal, and that is to provide for the defense of
Japan. I am extraordinarily proud of the men and women in uniform
from the United States who help us to honor our obligations to the
alliance and our treaties."
Contrary to Hatoyama's perception, the President implicitly demanded
that Japan also take up a commensurate share of the responsibility
by stressing military contribution.

(Part 1 of ongoing series)

(4) 60 days of the Hatoyama administration (Part 2): "Okinawa's
feelings" complicate the issue

YOMIURI (Page 4) (Full)
November 18, 2009

Prime Minister Yukio Hatoyama likes to use the terms "omoi
(sentiments)" and "kokoro (feelings)" in public. He used these
expressions again on Nov. 17 when talking to reporters about the
relocation of the U.S. forces' Futenma Air Station in Okinawa.

"While I accept the importance of the Japan-U.S. agreement, we need
to attach importance to the sentiments of the Okinawa people." "I
would like to make every effort, while studying the feelings of the
people of Okinawa, to find out what sort of message will be
acceptable to them."

He also used "Okinawa's feelings" in his response to Diet
interpellation. After hearing his remarks in the Diet in early
November, a former senior Okinawan official remarked coldly: "Does
Mr. Hatoyama have any idea what the local people think of the phrase
'Okinawa's feelings'?"

The term "Okinawa's feelings" has been a slogan used to unite the
people of Okinawa by the movement against U.S. military bases
founded on the local people's anger over the excessive burden
imposed by the U.S. military bases occupying Okinawa's territory.
With the Prime Minister using this expression thoughtlessly to defer
a decision on the Futenma issue, "there is enormous expectation for
the relocation of Futenma out of Okinawa" among the Okinawan people,

TOKYO 00002667 006 OF 007


according to Governor Hirokazu Nakaima.

When Foreign Minister Katsuya Okada visited Okinawa on Nov. 16, the
Okinawan people vented their anger on him.

The town of Kadena is home to (parts of) the Kadena Air Base (KAB),
which Okada is considering for a possible merger with the Futenma
base. At the town government office, where the roaring sound of
fighters taking off and landing reverberated, Mayor Tokujitsu Miyagi
cited several serious KAB-related accidents, including the crash of
a fighter from the air base onto an elementary school 50 years ago,
and told the foreign minister in a very strong tone: "The merger
plan is out of the question."

Even when Okada explained that the merger will take place on
condition of "reducing noise first," Miyagi brushed this off,
asserting: "The national government has promised to reduce the
burden many times in the past. The burden has not been reduced at
all, but has rather been increased."

Okada said at a news conference after the meeting: "After talking to
the local leaders, I now have a better understanding of the
reality."

It is believed that Hatoyama places importance on the "feelings of
the Okinawan people" because of his political philosophy that
politics should reflect the citizens' opinions rather than state
power, which is largely based on "liberalism." Behind his repeated
statements that "we might look at the outcome of the Nago mayoral
election (in January)" is the thinking that it is undesirable for
the government to decide on the relocation site arbitrarily. It is a
significant fact that the Democratic Party of Japan, Social
Democratic Party, and People's New Party candidates won in all the
single-seat districts in Okinawa in the recent House of
Representatives election.

For sure, even the Liberal Democratic Party (LDP) administrations
"placed importance on popular will." However, in previous Nago
mayoral races and Okinawa gubernatorial elections where the Futenma
relocation was an issue, the LDP sent campaigners from the mainland
to support the candidates accepting relocation to Camp Schwab behind
the scenes. These were, in effect, "government-controlled
elections."

Nago Mayor Yoshikazu Shimabukuro says that with the government
putting the question of accepting Futenma relocation to a vote in
the local community, Nago was sharply divided between proponents and
opponents of the relocation plan, making Nago a city of political
strife. Shimabukuro also told Okada on Nov. 15: "I don't want to
divide the citizens once again."

In the mayoral election in January, the relocation opponents are
planning to field a rival candidate to Shimabukuro, whose position
is that "the acceptance of the relocation plan is inevitable." Since
the LDP is now in opposition, he cannot expect the same level of
support he enjoyed in past elections. Shimabukuro stated at a news
conference on Nov. 12 that "I would welcome an alternative plan if
one is proposed that would result in an early solution." He has
begun to indicate the possibility of shifting his position of
accepting the current relocation plan.

The Prime Minister's political style of placing importance on the

TOKYO 00002667 007 OF 007


will of the local citizens may not be compatible with an issue
affecting national security decisively. Okada told Shimabukuro on
Nov. 15: "We cannot ask the citizens of Nago to make a decision on
an issue that should basically be decided by the national
government."

ROOS

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