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Cablegate: Japanese Morning Press Highlights 11/27/09

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FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
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RUEHBJ/AMEMBASSY BEIJING 2010
RUEHUL/AMEMBASSY SEOUL 8678
RUCNDT/USMISSION USUN NEW YORK 8136

UNCLAS SECTION 01 OF 10 TOKYO 002714

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 11/27/09

INDEX:

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

Futenma issue:
4) Premier to consider Marine relocation's effectiveness, indicates
current Futenma plan also an option (Yomiuri)
5) Ginowan Mayor asks Hatoyama to review the current relocation plan
(Nikkei)
6) SDP head Fukushima reluctant about allocating funds for Futenma
in state budget (Nikkei)
7) Chief cabinet secretary intends to visit Okinawa (Nikkei)
8) Prime Minister says little time remains for making decision on
Futenma (Nikkei)
9) Okinawa governor says additional condition for accepting Henoko
relocation plan is dispersal of Futenma functions (Asahi)

Energy:
10) Saudi National Oil Company to set up crude oil reserve on
Okinawa (Nikkei)

Defense & security:
11) LDP opposes cargo-inspection bill (Yomiuri)
12) Refueling continuation bill submitted to Diet (Nikkei)
13) Secretary Clinton expresses appreciation for Japan's Afghan
support (Asahi)
14) Japan to propose review of SOFA every three years (Nikkei)
15) Secret-accords blue-ribbon panel to hold first meeting today; Do
documents related to Okinawa reversion exist? (Yomiuri)
16) Sympathy budget to be reviewed; screening committee calls for
political decision on PAC3 (Sankei)
17) Sympathy budget not cut; call for review of salaries of base
workers (Yomiuri)
18) Information-gathering satellite to be launched on 28th; will
conduct surveillance of North Korea (Sankei)

Space:
19) Chief Cabinet Secretary Hirano says budget-screening committee
to reconsider decision to nix GX Rocket project (Yomiuri)

Economy:
20) Yen rises to 14-year, with U.S. dollar in 86 yen range in Tokyo
(Nikkei)

Politics:
21) Prime Minister hints at review of budget-screening committee
decision on science and technology (Nikkei)
22) Pro-Taiwan parliamentarian league includes 67 DPJ lawmakers
(Nikkei)

Articles:

1)TOP HEADLINES

Asahi:
China announces target for CO2 emission cuts

Mainichi:
100 million yen presented by Hatoyama's mother reported as donation


TOKYO 00002714 002 OF 010


Yomiuri:
Screening panel leaves "sympathy budget" untouched

Nikkei:
Yen hits 14-year high, with dollar in 86 yen range

Sankei:
Deputy Prime Minister Kan's office reported supporter group's
membership fees as donations

Tokyo Shimbun:
Screening panel calls for review of labor costs in "sympathy
budget"

Akahata:
Japanese Communist Party chairman reveals in 10th Central Committee
meeting proposals for resolution to be adopted at 25th Convention

2) EDITORIALS

Asahi:
(1) Careful approach required for science and technology budget as
bedrock of nation
(2) Hepatitis bill: Efforts needed to eliminate diseases affecting
whole nation

Mainichi:
(1) U.S. target for greenhouse gas emissions cuts to have favorable
effect on COP15
(2) Income limitation unnecessary for child allowance

Yomiuri:
(1) Yen's sharp rise: World's investors' departure from U.S. dollar
accelerating
(2) Use Toyota's voluntary recall of cars in U.S. as opportunity to
reexamine quality and safety

Nikkei:
(1) Global cooperation needed in dealing with weak dollar crisis
(2) Prime minister urged to disclose details of political donation
scandal

Sankei:
(1) Missile defense: Deterrence capability must not be undermined
(2) Education budget: Measures favorable for Japan Teachers' Union
undesirable

Tokyo Shimbun:
(1) Hatoyama donation scandal: Disclose facts
(2) Reveal government's intentions in budget screening process

Akahata:
(1) Income compensation for farmers needed for revitalization of
agriculture

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, November 26

NIKKEI (Page 2) (Full)
November 27, 2009


TOKYO 00002714 003 OF 010


10:51 Met Public Security Intelligence Agency Director Mikinao
Kitada at the Prime Minister's Official Residence (Kantei)
12:09 Met State Minister for Gender Equality Mizuho Fukushima,
Professor Takashi Kashima of Jissen Women's Educational Institute
13:03 House of Representatives plenary session
14:50 Met Mayor Yoichi Iha of Ginowan City, Okinawa
15:40 Met President Sunao Tsuboi, other officials of Japan
Confederation of A- and H-Bomb Sufferers Organization at the Kantei;
Health and Labor Minister Akira Nagatsuma also present
16:02 Met Supreme Court Chief Justice Hironobu Takesaki; followed by
meeting with Reona Esaki, other Nobel Prize laureates; National
Strategy Minister Naoto Kan, Education and Science and Technology
Minister Tatsuo Kawabata, State Minister for Administrative Reform
Yoshito Sengoku, and others also present
17:39 Meeting of Council on Gender Equality
18:20 Called EU President-elect Herman van Rompuy on the phone.
19:18 Met Japan Research Institute Honorary Chairman Jitsuro
Terashima
20:12 Had dinner at Italian restaurant in Minami-aoyama Riva degli
Etruschi with House of Councillors member Minoru Kawasaki, others
23:09 Arrived at official residential quarters

4) Premier to consider Marine relocation's effectiveness, indicates
current Futenma plan also an option

YOMIURI (Page 2) (Abridged)
November 26, 2009

On the pending issue of relocating the U.S. Marine Corps' Futenma
Air Station in Ginowan, Okinawa Prefecture, Prime Minister Hatoyama
has indicated that he will consider the current plan for realigning
U.S. forces in Japan, which packages the relocation of Futenma
airfield and the transfer of U.S. Marines from Okinawa to Guam, as
an option. "We must consider at the same time that Okinawa's
base-hosting burden can be alleviated by moving (U.S. Marines) to
Guam," Hatoyama told reporters at his office yesterday evening. "The
important thing is how to answer the overall wishes of people in
Okinawa Prefecture," he added.

5) Ginowan mayor files petition with premier over Futenma

NIKKEI (Page 2) (Full)
November 27, 2009

Okinawa Prefecture's Ginowan City Mayor Yoichi Iha called on Prime
Minister Yukio Hatoyama yesterday at the Diet and handed a petition
regarding the pending issue of relocating the U.S. Marine Corps'
Futenma Air Station in his city. "I want the burden of Okinawa
Prefecture's people to be alleviated by moving the Marines to Guam,"
Iha said. "I trust you," he added. Hatoyama said he will consider
the petition.

6) SDP head Fukushima reluctant about allocating funds for Futenma
in state budget

NIKKEI (Page 2) (Full)
November 26, 2009

Social Democratic Party (SDP) head Mizuho Fukushima in a press
conference on Nov. 25 expressed a cautious stance regarding the
handling of expenses connected with the relocation of Futenma Air
Station in the fiscal 2010 state budget, saying, "I do not want to

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see funds allocated for the project in the budget."

7) Chief cabinet secretary intends to visit Okinawa

NIKKEI (Page 2) (Full)
November 26, 2009

Chief Cabinet Secretary Hirofumi Hirano in a press briefing on Nov.
25 made the following comment in connection with the issue of
relocating the U.S. Marine Corps' Futenma Air Station in Okinawa:
"In the process of the government making its decision, I, too, want
to take a firsthand look at conditions at the air station." He will
visit Okinawa possibly in early December.

8) Prime Minister: Little time remains for making a decision on
Futenma

NIKKEI (Page 2) (Full)
November 26, 2009

Prime Minister Yukio Hatoyama gave a speech to a meeting of the
National Governors' Association, held at the Prime Minister's
Official Residence (Kantei) on Nov. 25. Touching on the issue of
relocating the U.S. Marine Corps' Futenma Air Station in Okinawa,
the Prime Minister said: "There is no time to waste. A conclusion
must be reached as early as possible after examining the matter
thoroughly."

With regard to review of the Japan-U.S. Status of Forces Agreement,
the Prime Minister also indicated that the conclusion of a special
agreement on the environment is also one option. "Concluding a
special agreement on the environment could be one option," he said.
"We will take action in line with Japan's position."

During the meeting, Okinawa Gov. Hirokazu Nakaima said: "Even the
U.S. military has indicated that the Futenma base is a dangerous
base. I want to see the danger of the base eliminated and the noise
level reduced as soon as possible."

9) Okinawa governor says additional condition for accepting Henoko
relocation plan is dispersal of Futenma functions

ASAHI (Page 1) (Full)
November 27, 2009

Okinawa Governor Hirokazu Nakaima gave an exclusive interview to
Asahi Shimbun on Nov. 26. He indicated that in addition to moving
the runways of the replacement facility farther offshore than
currently planned, "it is necessary to disperse the functions of the
Futenma base to other bases while the construction work is being
completed" for him to accept the plan to relocate the U.S. forces'
Futenma Air Station (in Ginowan City, Okinawa) to Henoko in Nago
City.

It is believed that based on the conditions set by the governor the
ministries of foreign affairs and defense will step up negotiations
with the U.S. side.

According to the Okinawa Prefectural Government, about 50
helicopters and transport planes are stationed regularly at the
Futenma base at present, resulting in some 20,000 instances of noise
annually. In the interview, Nakaima pointed out that Futenma is

TOKYO 00002714 005 OF 010


surrounded by densely-populated residential areas and removing the
danger posed by this facility is an urgent task. He stressed that
even if a decision is made on relocation to Henoko, it is necessary
to reduce the number of takeoffs and landings of helicopters and
other aircraft at the Futenma base while construction work for the
new facility is going on. He said: "The operational level (at
Futenma) should be reduced drastically and (its functions) should be
dispersed. This will reduce the probability of the danger (of
accidents)."

Furthermore, in order to reduce noise and remove the danger at areas
close to the relocation site, "(the runways) need to be moved
farther into the sea," citing the location of the runways farther
offshore as a condition for his accepting the relocation plan.

Nakaima said that unless the above conditions are met, the permit
for reclamation of land in the proposed relocation site "cannot be
issued so easily" and demanded that Prime Minister Yukio Hatoyama
consult with Okinawa before making a decision.

10) Saudi Aramco to store oil in Okinawa

NIKKEI (Page 1) (Excerpt)
November 26, 2009

President and Chief Executive Officer (CEO) Khalid A. Al-Falih of
Saudi Aramco, the world's largest oil company, run by the Saudi
Arabian government, revealed yesterday that the company will soon
start negotiations with the Japanese government on a plan to jointly
store oil in Okinawa. He responded to an interview with the Nikkei
in Tokyo. The plan, if realized, will likely contribute to
strengthening the nation's energy security, since it will become
possible for Japan to procure crude oil on a priority basis in times
of emergency in return for offering storehouses.

11) LDP to oppose cargo inspection special measures legislation

YOMIURI (Page 4) (Full)
November 27, 2009

The Liberal Democratic Party (LDP) at a joint meeting of its Land
and Transportation Division, National Defense Division, and Foreign
Affairs Division on Nov. 26 decided to oppose a cargo inspection
special measures bill, which the government submitted to the
extraordinary Diet session. The LDP along with the Japan Renaissance
Club, the Your Party, and the Group to Protect National Interests
and the People's Livelihood (Hiranuma Group) have jointly submitted
a counter proposal that includes a provision enabling the dispatch
of Self-Defense troops in the event the Japan Coast Guard finds it
difficult to carry out the mission.

12) Refueling continuation bill submitted to Diet

NIKKEI (Page 2) (Full)
November 26, 2009

The Liberal Democratic Party and the Japan Renaissance Party on Nov.
25 submitted to the House of Councillors a bill to continue the
Maritime Self-Defense Force's refueling mission in the Indian Ocean.
The bill is designed to extend the Antiterrorism Special Measures
Law, which is to expire next January, for one year. The New Komeito
did not take part in the joint presentation of the legislation.

TOKYO 00002714 006 OF 010

13) Clinton expresses appreciation to Okada for Japan's Afghanistan
aid

ASAHI (Page 9) (Full)
November 27, 2009

Foreign Minister Katsuya Okada had a telephone conference with U.S.
Secretary of State Hillary Clinton last night at the request of the
U.S. government. Clinton spelled out the U.S. government's strategy
toward Afghanistan, which President Barack Obama will announce on
Dec. 1. Clinton then expressed appreciation for the Japanese
government's aid worth 5 billion yen for that nation.

Okada replied that stabilizing and reconstructing Afghanistan is
extremely important for global stability. He added: "I hope
President Obama's announcement will strengthen the international
community's resolve (to support Afghanistan)."

14) Gov't to propose review of SOFA every 3 years

NIKKEI (Page 2) (Abridged)
November 27, 2009

The government will sound out the United States on a proposal to
review the Japan-U.S. Status of Forces Agreement every three years
as a measure to mitigate Okinawa Prefecture's base-hosting burden in
connection with the pending issue of relocating the U.S. Marine
Corps' Futenma Air Station in the prefecture, officials said
yesterday. The current plan for relocating Futenma airfield is to
build an alternative facility in a coastal area of Camp Schwab in
the island prefecture's northern coastal city of Nago to take over
its heliport functions, based on an intergovernmental agreement
reached between Japan and the United States. Meanwhile, the U.S.
government has indicated that it will accept the idea of moving the
relocation site of Futenma airfield to an area off the coast of Camp
Schwab. The ruling Democratic Party of Japan has insisted on moving
Futenma airfield out of Okinawa, so the DPJ-led government concluded
that it will have to work out additional measures to reduce the
burden on Okinawa in order to accept the modified plan.

Prime Minister Yukio Hatoyama met with Japan Research Institute
Chairman Jitsuro Terashima yesterday at his office. Terashima will
visit the United States early next week and is expected to exchange
views with his U.S. counterparts, including measures to mitigate
Okinawa's base-hosting burden.

15) Blue-ribbon panel on secret pacts to hold first meeting today

YOMIURI (Page 2) (Abridged slightly)
November 27, 2009

The Foreign Ministry has been investigating the secret pacts on (the
introduction of) nuclear weapons and other matters that reportedly
exist between Japan and the United States. A blue-ribbon panel
tasked with verifying the ministry's investigation will meet for the
first time today.

Reportedly there are secret pacts in four areas. Documents have
already come to light that seem to prove the existence of one
allowing the introduction of nuclear weapons into Japan that is
believed to have been concluded when the Japan-U.S. Security Treaty

TOKYO 00002714 007 OF 010


was revised in 1960. An increasing number of people also believe in
the existence of a secret pact designed to Japan to bear the cost of
restoring U.S. bases to their original states, concluded ahead of
the revision of Okinawa to Japan in 1972. The blue-ribbon panel
plans to make a final decision on the existence of the secret
agreements by mid-January next year.

Reportedly there have been secret pacts on: (1) introduction of
nuclear weapons, which was entered into during the conclusion of the
revised Japan-U.S. Security Treaty; (2) combat operations during a
contingency on the Korean Peninsula; (3) introduction of nuclear
weapons, which was believed to have been concluded before the
reversion of Okinawa; and (4) Japan shouldering the cost of
returning lands to their original states during the reversion of
Okinawa.

According to a Foreign Ministry source, the existence of the secret
pact on the introduction of nuclear weapons that was concluded
before the reversion of Okinawa has yet to be verified. The panel
will continue probing this matter as well.

16) Budget screening team rules "sympathy budget" needs to be
"reviewed"; will wait for political decision on PAC-3s

SANKEI (Page 1) (Slightly abridged)
November 27, 2009

The Government Revitalization Unit (chaired by Prime Minister Yukio
Hatoyama) continued on Nov. 26 its screening of FY2010 budget
requests to weed out wasteful spending. This was the eighth day of
budget screening. With regard to budget requests from the Ministry
of Defense (MOD), the screening team demanded a review of the budget
request for the labor cost of employees working on U.S. bases (123.3
billion yen) under Japan's share of the expenses of U.S. Forces
Japan (omoiyari yosan or sympathy budget) because the wage scales
are not on par with local levels.

During the discussions, the following opinions were voiced: "The
wage scales should follow those of the employees of the national
government" and "consideration should be given to balance with the
wages of those in the same job category in the local area." Twelve
of the screening team members demanded a "review." Meanwhile, the
screening team did not make a decision on the MOD's budget requests
for PAC-3 ground-to-air missiles for missile interception and the
Self-Defense Forces' procurement of ships and other equipment (new
allocations in FY10 for expenditures rolled over from previous
fiscal years totaling 865.5 billion yen) and opted to wait for a
political decision. This is the first time that the screening teams
have deferred their conclusion pending a political decision.

Foreign Minister Katsuya Okada and State Minister for Consumer
Affairs and Declining Birthrate Mizuho Fukushima have indicated a
cautious stance with regard to additional deployment of PAC-3s.

Concerning the other MOD budget requests, the screening team
demanded a budget cut for SDF supplies procurement (27.1 billion
yen) and for uniform and other garment purchases (9 billion yen).
The team also demanded a review of the budget request for arms and
ammunition procurement (11.9 billion yen). The request for an
increase of 3,500 SDF personnel (at a cost of 7.2 billion yen) was
rejected, while the requests to fund soundproofing of houses near
U.S. bases in Okinawa and elsewhere (36.3 billion yen) and payments

TOKYO 00002714 008 OF 010


for renewal of leases on land used for defense facilities (118.9
billion yen) were approved.

17) "Sympathy budget" not axed by budget screening team; review of
wage scales of U.S. military base employees demanded

YOMIURI (Top play) (Excerpts)
November 27, 2009

The Government Revitalization Unit (chaired by Prime Minister Yukio
Hatoyama) conducted the third day of the second half (totaling four
days) of its screening of FY2010 budget requests to weed out
wasteful spending at the National Printing Bureau's employees'
gymnasium in Ichigaya, Tokyo, on Nov. 26. Under Japan's share in the
expenses of U.S. Forces Japan (omoiyari yosan or "sympathy budget"),
the screening team demanded a review of the labor cost of employees
working on U.S. bases (123.334 billion yen) in the course of future
negotiations on the Japan-U.S. special agreement and
labor-management bargaining on the grounds that the wage scales are
not on par with local levels. Other than that, the budget requests
were approved, in effect, by the screening team.

Meanwhile, with regard to the expenses for the nationwide deployment
of ground-to-air Patriot missiles (PAC-3), the screening team
decided to wait for a political decision since the drafting of the
government's new National Defense Program Guidelines has been
postponed for one year.

18) Japan to launch third intelligence-gathering optical satellite
on Nov. 28 to monitor North Korea

SANKEI (Page 2) (Excerpt)
November 26, 2009

The government's third intelligence-gathering optical satellite is
scheduled for launch on board the 16th domestically manufactured
large-size H2A rocket on the morning of Nov. 28 at the Tanegashima
Space Center in Kagoshima Prefecture. The third optical satellite is
capable of identifying a 60-centimeter square object on the ground.
It can determine the movements of North Korea, which is continuing
missile and nuclear development, more precisely than can be done at
present.

19) Chief Cabinet Secretary Hirano announces reexamination of
government decision to scrap GX rocket development program

YOMIURI (Page 2) (Full)
November 27, 2009

The Government Revitalization Unit (GRU) has decided to scrap the
medium-size GX rocket development program in the process of
screening project requests to identify unnecessary ones. Referring
to this decision by the government, Chief Cabinet Secretary Hirano
at a press conference on Nov. 26 announced a plan to have the GRU
reexamine its decision.

During the screening of the GX rocket development program, the
Finance Ministry submitted data noting that 70 billion yen in tax
money has been invested. However, Hirano said, "I have heard that
the amount of tax money invested in the project is between 26-27
billion yen, and the remaining amount is private funds." He then
said, "Since (the basis of) the decision was wrong, we should

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address this issue after holding another round of discussions on
it."

20) Yen rises to 14-year high, with U.S. dollar falling to 86 yen
range

NIKKEI (Top Play) (Lead paragraph)
November 27, 2009

The U.S. dollar plunged to 86.29 yen against the dollar at one point
on the Tokyo Foreign Exchange Market yesterday, recording its lowest
level in 14 years and four months. Investors converted their dollars
into yen amid persistent speculation that the U.S. Federal Reserve
will maintain its ultra-easy monetary policy for a long period of
time. The yen's effective exchange rate, a measure of the value of
the yen against major currencies, also surged to about a 9-month
high. The yen's abrupt rise could deal a serious blow to the
Japanese economy, which has fallen into a mild deflationary phase,
as it will unavoidably exacerbate corporate earnings and bring down
import prices.

21) Prime minister during meeting with Nobel Prize winners hints at
revision of government decision to cut science and technology
budgets

NIKKEI (Page 2) (Full)
November 27, 2009

Prime Minister Yukio Hatoyama on Nov. 26 invited six Nobel Prize
winners, including Reona Esaki, to the Prime Minister's Official
Residence (the Kantei) and exchanged views with them on science and
technology policy. In response to a number of government decisions
to cut or trim science and technology-related budgets made during
the screening of project requests by the Government Revitalization
Unit (GRT), the Nobel Prize recipients asked the prime minister to
give special consideration to the science and technology area. The
prime minister hinted at the possibility of the government taking a
second look at its decisions, saying, "It is not my intention to
give the impression that the government is trying to cut science and
technology budgets."

Those visited the Kantei include Susumu Tonegawa, Hideki Shirakawa,
Ryoji Noyori, Masatoshi Koshiba, and Makoto Kobayashi in addition to
Esaki. They expressed a number of views, such as that Japan can only
survive with science and technology and that it is reckless to
identify whether projects are necessary or not during the brief
screening process. The prime minister told reporters: "Science and
technology are very important intellectual properties for a country
without natural resources. I would like to consider ways to utilize
these properties."

22) Pro-Taiwan parliamentarian league includes 67 DPJ lawmakers

NIKKEI (Page 2) (Full)
November 26, 2009

The Japan-Taiwan parliamentarians' council, a supra-partisan league
aiming to strengthen relations between Japan and Taiwan, held its
first general meeting on Nov. 25 since the last House of
Representatives election, and agreed that Takeo Hiramuma, an
independent, will keep serving as the council's president. The
membership after the election has now grown to 188. The largest

TOKYO 00002714 010 OF 010


group of members belongs to the Liberal Democratic Party (103)
followed by the Democratic Party of Japan (67).

ZUMWALT

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