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Cablegate: Japanese Morning Press Highlights 12/02/09

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UNCLAS SECTION 01 OF 10 TOKYO 002749

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 12/02/09

INDEX:

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

Defense & security:
4) Former Foreign Ministry official gives court testimony in which
he acknowledges the existence of secret accords concerning Okinawa
(Mainichi)
5) Former Foreign Ministry official's testimony will spur Hatoyama
administration's investigation of secret accords (Yomiuri)
6) Nuclear Security Summit preparatory meeting to be held in Tokyo
tomorrow (Asahi)
7) Miyajima tapped to head Central Readiness Command (Sankei)

Foreign relations:
8) Prime Minister calls for creation of East Asian Community
(Yomiuri)
9) U.S. not cooperating in handover of four service member
dependents implicated in rope incident (Asahi)

Futenma:
10) Okada discloses cabinet-level Japan-U.S. working group to meet
soon (Asahi)
11) Adm. Willard says Futenma replacement facility will not decline
in importance even after quadrennial defense review (Asahi)
12) Admiral Willard says U.S. believes Japan will soon reach
decision on Futenma relocation (Mainichi)
13) Foreign Minister to begin Okinawa visit from Dec. 4 (Nikkei)
14) LDP's Okinawa Prefectural Chapter says it will call for
relocation of Futenma facility outside Okinawa if government doesn't
reach a decision on an alternative site within the year (Nikkei)

Politics:
15) Hirano says Futenma relocation issue not included in tri-party
agreement (Asahi)

Economy:
16) Government preparing package of pump-priming measures worth 7
trillion yen (Mainichi)
17) Bank of Japan to inject 10 trillion yen into the financial
system BOJ to provide 10 trillion yen fund (Nikkei)

Articles:

1) TOP HEADLINES

Asahi: Mainichi:
Government eyes spending over 7 trillion yen for economic stimulus
measures: Significant increase in second extra budget

Yomiuri: Nikkei:
BOJ to provide 10 trillion yen fund as additional monetary easing
policy: To be implemented for three months with interest rate of 0.1
percent; aim is to address deflation

Sankei:
Case against former secretary to prime minister to be built over
entering of false political fund donations in political fund report

Tokyo Shimbun:

TOKYO 00002749 002 OF 010


Mother of Prime Minister Hatoyama found to have donated 180 million
yen per year to brother Kunio as well

Akahata:
Passage of A-bomb disease fund legislation

2) EDITORIALS

Asahi:
(1) Bank of Japan's decision: Central bank should do its utmost to
address deflation
(2) Extraordinary Diet session: "Citadel of discourse" is lamenting

Mainichi:
(1) Make most of testimony given by former Foreign Ministry bureau
director general to restore confidence in diplomacy
(2) Bank of Japan has taken measure to address deflation and strong
yen: We hope to see government and BOJ tackle mid-to long-term
challenges facing the Japanese economy

Yomiuri:
(1) Quantitative monetary easing: The Bank of Japan has taken action
to eliminate deflation
(2) Putting cargo inspection legislation on hold is equivalent to
slighting international responsibility

Nikkei:
(1) The Bank of Japan and the government must work closely together
without delay
(2) Abolishing the public health insurance scheme for elderly people
aged 75 or older is irrelevant

Sankei:
(1) Additional monetary easing policy: The government is responsible
for staving off double-dip recession
(2) Violence at elementary, middle, and high schools: Do not neglect
moral education

Tokyo Shimbun:
(1) Measures to deal with deflation: (The Bank of Japan) cannot
fight deflation with optimistic perception of the situation
(2) Testimony on secret Okinawa pact

Akahata:
(1) U.S. Marine Corps' Futenma Air Station: The government should
not forget its public pledge to move the facilities out of the
nation

3) Prime Minister's schedule, December 1

NIKKEI (Page 2) (Full)
December 2, 2009

07:55 Attended a meeting of the General Ocean Policy Headquarters in
the Diet Building, followed by a cabinet meeting. Foreign Minister
Okada, Transport Minister Maehara, and Chief Cabinet Secretary
Hirano stayed behind.
08:51 Arrived at the Prime Minister's Official Residence (Kantei).
10:08 Attended a meeting to commemorate "digital broadcast day" at
the Keio Plaza Hotel in Nishi-Shinjuku.
11:02 Met Okada and Defense Minister Kitazawa at the Kantei. Joined
by Hirano.

TOKYO 00002749 003 OF 010


11:57 Met ASEAN Secretary General Surin at the Grand Prince Hotel
Akasaka. Later attended an international symposium of the Economic
Research Institute for ASEAN and East Asia.
12:24 Met at the Kantei with Okada, Kitazawa, and Hirano.
13:02 Attended a Lower House plenary session.
13:16 Met at the Kantei with Japan Banking and Finance Research
Institute President Hidehiro Kikuchi and Cabinet Office Senior Vice
Minister Otsuka. Later met Lower House member Hiroko Nakano, Nemuro
Mayor Hasegawa and others. Later met with Internal Affairs Minister
Haraguchi.
14:56 Posed for photos for the next Upper House election at party
headquarters.
15:45 Met at the Kantei with Finance Minister Fujii, Finance
Ministry's Senior Vice Minister Minezaki, Parliamentary Secretary
Furumoto, and Vice Minister Tango.
17:26 Met Czech Senator Sobotoka and others.
18:24 Watched a preview of the movie "Otouto (younger brother) at
Yurakucho Marion.
19:04 Met Maehara at the Kantei.
20:02 Dined with Deputy Chief Cabinet Secretary Matsuno and others
at the Chinese restaurant Tokarin at the Hotel Okura.
22:09 Arrived at his official residential quarters.

4) Former MOFA bureau chief testifies in court on Japan-U.S. secret
agreement on Okinawa's reversion to Japanese administration

MAINICHI (Page 1) (Full)
December 2, 2009

The hearing on the case filed by former Mainichi Shimbun reporter
Takichi Nishiyama, 78, and 24 other plaintiffs asking the government
to disclose secret documents on the negotiations between Japan and
the United States on the reversion of Okinawa to Japanese
administration (in 1972) was held at the Tokyo District Court
(presided over by Justice Norihiko Sugihara) on Dec. 1. Bunroku
Yoshino, 91, former director general of the North American Affairs
Bureau of the Ministry of Foreign Affairs (MOFA) who was involved in
the negotiations with the U.S. and a resident of Yokohama City,
appeared in court as a witness for the plaintiffs. He said that "a
document (pertaining to the secret agreement) was signed with the
U.S. side," testifying that a secret agreement exists. On the other
hand, the national government, which has denied the existence of the
secret agreement, changed its position, submitting to the court a
document saying it is withholding its plea of guilty or not guilty.

Yoshino had confessed to media outlets about the secret agreement,
but this was the first time he has testified in court. Nishiyama and
the plaintiff group seek the disclosure of three official documents
on Japan's payment of the cost for restoring returned military base
land to its original state, which should have been borne by the U.S.
side (4 million dollars); expenses for the relocation of the
premises of Voice of America, U.S. shortwave overseas radio
broadcast (16 million dollars); and other expenditures. These
documents have been made public at the U.S. National Archives.

Yoshino testified that he "signed a document on the reversion
negotiations prepared by (then) U.S. Embassy Minister Richard
Sneider." He said he "signed the initials 'BY' at the director
general's office, made a photocopy, and this document should be in
MOFA's files."

5) Ex-diplomat's testimony on secret accord to add momentum to

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administration's investigation

YOMIURI (Page 4) (Full)
December 2, 2009

Bunroku Yoshino, 91, a former Foreign Ministry's American Bureau
chief, admitted in the Tokyo District Court yesterday that Japan and
the U.S. concluded a secret agreement on Japan's payment of fees for
restoring the land used by the U.S. military to its original state
on the occasion of Okinawa from U.S. control to Japanese
sovereignty. The Hatoyama administration has eagerly worked to
reveal the truth about whether such secret pacts existed. The former
diplomat's testimony is expected to add momentum to the
administration's investigation.

Yoshino has so far admitted in interviews with the media that Japan
and the U.S. concluded secret accords. On the accord concerning the
cost burden, other former senior officials of the Foreign Ministry
have also admitted its existence. In addition, the U.S. has
disclosed related documents.

Even so, while the Foreign Ministry's expert panel is carrying out
an investigation and analysis under the instruction of Foreign
Minister Katsuya Okada, the testimony in a court by a concerned
person carries even heavier weight. Okada appreciated Yoshino's
testimony, saying in a press conference yesterday: "It will be very
significant if the truth can be brought to light through a trial."

Prime Minister Yukio Hatoyama also told reporters yesterday:
"Allegations that Japan and the U.S. concluded secret pacts are now
surfacing. When the government confirms the facts, we would like to
let the people know the truth using the appropriate method."

6) International system to prevent nuclear terrorism; nuclear
security summit preparatory meeting to be held in Tokyo tomorrow

ASAHI (Page 3) (Excerpts)
December 2, 2009

Hirotsugu Mochizuki in Washington, Makoto Igarashi, Hiroyuki
Maekawa

Proxies for world leaders will assemble in Tokyo tomorrow to attend
a preparatory meeting for a nuclear security summit to be hosted in
Washington next spring by U.S. President Barack Obama, who advocates
a nuclear-free world. What is the United States' aim for the summit?
What is the significance of holding the preparatory meeting in
Japan?

Japan looks for "deepened" alliance with the U.S.

Following their talks in Tokyo in November, Prime Minister Yukio
Hatoyama and President Obama released a joint statement on a
nuclear-free world, defining it as a new theme for Japan-U.S.
cooperation. The Japanese side is hopeful that this will help deepen
its alliance with the United States.

Japan is an "honor student" who has not pursued a nuclear weapons
program and has adhered to the principle of using nuclear energy
peacefully under the Nuclear Non-proliferation Treaty (NPT) regime.
The U.S. pins hopes on Japan, as seen in National Nuclear Security
Administration head Thomas D'Agostino's words, "Japan will be a

TOKYO 00002749 005 OF 010


terrific host."

In the upcoming preparatory meeting, members will, among other
things, discuss ways to secure nuclear materials. There is a
possibility that the United States, which calls for stricter rules,
will lock horns with developing countries, which want to introduce
nuclear-power generation plans at low cost. Japan intends to serve
as an intermediary to build a consensus.

Vietnam has decided to build nuclear plants. Expectations for
nuclear energy are growing in Asia. Japan, which has major nuclear
energy producers, is also exploring ways for cooperation with other
Asian countries. But that is absolutely premised on nuclear
technology not being used for military purposes and nuclear
materials not falling into the hands of terrorists. That can also
explain why Japan is eager to build an international
nuclear-security regime.

Pursuing profits is not the only motive. The United States plans to
maintain its nuclear deterrence for the foreseeable future. A senior
Foreign Ministry official explained that the groundwork for a
nuclear-free world can't be laid unless the risk of nuclear
proliferation is eliminated by building a system to control nuclear
materials.

7) Miyajima picked to head Central Readiness Command

SANKEI (Page 2) (Full)
December 2, 2009

Defense Minister Toshimi Kitazawa, in yesterday's cabinet meeting,
reported a new lineup of ranking officers in the Self-Defense
Forces, including the appointment of Toshinobu Miyajima, commandant
of the Joint Staff College (JSC), to the post of Central Readiness
Command (CRC) commander in the Ground Self-Defense Force (GSDF), as
the successor to the retiring CRC commander, Mikio Shibata. These
appointments were approved in the cabinet meeting and will be
officially announced under the date of Dec. 7.

GSDF Lt. Gen. Toshinobu Miyajima, currently in the post of Joint
Staff College commandant, has been appointed to the post of CRC
commander; GSDF Lt. Gen. Takashi Watanabe, currently in the post of
GSDF 1st Division commanding general, to the post of JSC commandant;
and GSDF Maj. Gen. Yoshiaki Nakagawa, currently in the post of chief
of staff at GSDF Middle District Army Headquarters and concurrently
in the post of GSDF Itami Garrison commander, to the post of GSDF
1st Division.

GSDF Lt. Gen. Mikio Shibata, currently in the post of CRC commander,
will retire from GSDF service.

CRC commander

Toshinobu Miyajima: graduated from the National Defense Academy;
joined the GSDF in 1976, served in the post of GSDF 4th Division
commanding general and then became JSC commandant in March 2009; 55
years old; born in Saga Prefecture.

8) Prime Minister Hatoyama calls for building East Asian community

YOMIURI (Page 2) (Excerpts)
December 2, 2009

TOKYO 00002749 006 OF 010

An international symposium to think of the future of the Asian
economy was held yesterday in Tokyo. Researchers from Japan, the
United States, China, South Korea, and the Association of Southeast
Asian Nations (ASEAN) participated in the symposium titled "Global
Economic Crisis and Reconstruction of East Asian Economy," sponsored
by the Institute of Developing Economies Japan External Trade
Organization and the Economic Research Institute for ASEAN and East
Asia, and supported by the Yomiuri Shimbun and other organizations.

In his greeting at the beginning of the symposium, Prime Minister
Yukio Hatoyama said, "There are a variety of countries in East Asia.
It is important for us to deepen ties at various levels such as
trade, science and technology, and education. We should turn the
dream or ideal of an East Asian Community into a reality." ASEAN
Secretary General Surin Pitsuwan, pointing out the importance of
ASEAN's role in building the community, asked for Japan's
cooperation.

9) USFJ uncooperative in handing over four suspect children of U.S.
military personnel in rope incident in Musashi-murayama City, Tokyo

ASAHI (Page 39) (Abridged)
December 2, 2009

It was learned from investigation sources that the Tokyo
Metropolitan Police Department (MPD), which has decided to prosecute
four children of U.S. military personnel in the incident last August
where a woman motorcyclist, 23, fell and was seriously injured from
running into a rope intentionally strung (across a street) in
Musashi-murayama City, Tokyo, has been unable to obtain the
cooperation of the U.S. Forces Japan (USFJ) for the handover of the
four suspects. The MPD obtained warrants of arrest for the four on
charges of attempted murder on Nov. 24, and the warrants that
expired on Dec. 1 have been renewed.

According to the MPD's second organized crime department and other
investigation sources, the four suspects, aged 15-18, are children
of U.S. service members stationed at the Yokota base. Since two of
them live on the military base, the MPD requested their handover
from the USFJ in accordance with the Japan-U.S. Status of Forces
Agreement. The MPD will continue to request the USFJ's cooperation
in the handover procedures.

10) Japan, U.S. to hold meeting of ministerial-level working group
soon

ASAHI (Page 4) (Full)
December 2, 2009

In a press conference yesterday, Foreign Minister Katsuya Okada
revealed that Japan and the U.S. will soon hold a meeting of their
ministerial-level working group to find a solution to the issue of
relocating the U.S. Marine Corps' Futenma Air Station. The meeting
is likely to take place on Dec. 4. Both sides are expected to
discuss new measures to lighten the base burden on Okinawa, such as
the transfer of training activities by U.S. troops in Okinawa. The
two countries will first hold working-level talks that Deputy
Assistant Secretary of State Joseph Donovan and Deputy Assistant
Secretary of Defense Michael Schiffer will participate in from the
U.S. government. According to Okada, a ministerial meeting will also
be held.

TOKYO 00002749 007 OF 010

11) PACOM commander: Necessity of Futenma replacement facility will
remain unchanged

ASAHI (Page 4) (Full)
December 2, 2009

Yoichi Kato, senior writer

Navy Adm. Robert Willard, commander of the U.S. Pacific Command
(PACOM) which takes command of U.S. Forces Japan, held a press
conference at the U.S. Embassy in Akasaka, Tokyo, on Dec. 1. The
commander indicated that even after work on the new Quadrennial
Defense Review (QDR) is completed by the Department of Defense (DoD)
next February as planned, the strategic necessity of the envisaged
Futenma replacement facility will not diminish at all.

"The United States has no intention of withdrawing from this region
(Northeast Asia including Japan)," the commander said emphatically.
"Such a withdrawal has never been discussed and will never be
discussed in the future." The commander thus plainly dismissed the
view that the U.S. military might withdraw its forward deployed
troops to the Alaska-Hawaii-Guam line.

Last month, the DoD Joint Guam Program Office released an
environmental impact assessment report on facilities to be built due
to the relocation of U.S. Marines from Okinawa, which includes the
construction of a facility that can accommodate the helicopter unit
now deployed at Futenma Air Station. The commander explained it this
way: "There is nothing new about the idea that the unit to be
transferred from Okinawa will possess aviation and maritime
transport capabilities." The commander emphasized that the United
States does not have future withdrawal from Okinawa in mind.

Through its screening of budgetary requests, the Hatoyama
administration has decided to "review" Japan's share of the cost of
stationing U.S. forces in Japan, which is commonly called the
omoiyari yosan (literally "sympathy budget"; i.e., host nation
support). About this decision, Commander Willard said: "We think it
is natural for the Japanese government to reexamine the requests,
but we cannot accept (a reduction). Host nation support carries
great significance for an alliance, and it is of great value to
Japan."

12) PACOM chief says he believes Futenma issue will reach early
conclusion

MAINICHI (Page 2) (Full)
December 2, 2009

Visiting U.S. Navy Admiral Robert Willard, who heads the U.S.
Pacific Command (PACOM), headquartered in Hawaii, gave a press
briefing for Japanese reporters yesterday in Tokyo. In the press
briefing, PACOM Commander Willard, referring to the pending issue of
relocating the U.S. Marine Corps' Futenma Air Station in Okinawa
Prefecture, said: "Both Japan and the United States recognize the
urgency of this issue. I believe we will be able to reach a
conclusion at an early date." Willard lauded Prime Minister Yukio
Hatoyama for his willingness to reach an early conclusion on the
Futenma issue.

Meanwhile, the Hatoyama government has set forth its intention to go

TOKYO 00002749 008 OF 010


over Japan's "sympathy budget" (omoiyari yosan, or host nation
support) for U.S. Forces Japan. "It's only natural that the new
government will review (its predecessor's policy)," Willard said.
However, he indicated that it would not be desirable to cut down on
the budget. "It (sympathy budget) constitutes an important portion
of our bilateral alliance," he said.

13) Foreign Minister Okada to revisit Okinawa on Dec. 4

NIKKEI (Page 2) (Full)
December 2, 2009

Foreign Minister Katsuya Okada announced yesterday at a press
conference that he will visit Okinawa Prefecture on a two-day
schedule from Dec. 4 in connection with the issue of relocating the
U.S. Marine Corps' Futenma Air Station (in Ginowan City). This will
be his second visit to Okinawa following the one he made last month.
Okada is expected to exchange views with local residents on the
Futenma relocation issue, based on the results later this week of a
review of the issue by the Japan-U.S. high-level task force working
to resolve the issue. The foreign minister said at the press
conference, "I want to hear the frank opinions of Okinawa's
people."

14) LDP Okinawa chapter to call for moving Futenma outside
prefecture if decision not made before year's end

NIKKEI (Page 2) (Full)
December 2, 2009

The Liberal Democratic Party's (LDP) Okinawa chapter Secretary
General Masatoshi Onaga met yesterday with LDP Secretary General
Tadamori Oshima at party headquarters. In the meeting, Onaga told
Oshima that if the government fails to reach a conclusion on the
relocation site for the U.S. Marine Corps Futenma Air Station before
the end of this year, the Okinawa chapter will call for moving the
Futenma facility out of Okinawa, changing its policy of allowing the
Futenma base to be relocated within the prefecture.

15) Hirano: Futenma issue not included in coalition agreement

ASAHI (Page 4) (Full)
December 2, 2009

In response to questions on the issue of relocating the U.S. Marine
Corps' Futenma Air Station during a press conference yesterday,
Chief Cabinet Secretary Hirofumi Hirano said: "The Futenma issue is
not specifically stipulated in the agreement reached by the three
political parties to form a coalition, although the base issue is
included in it."

The coalition agreement reached between the Democratic Party of
Japan, the Social Democratic Party (SDP), and the People's New Party
includes the following item regarding the base issue: "In view of
lightening the burden on the people of Okinawa, we will propose
revising the Japan-U.S. Status of Forces Agreement and will also
reconsider the existing plan to realign U.S. forces in Japan and
future options for U.S. military bases in Japan." It is true that
there is no description about the Futenma airfield, but the three
ruling parties did in fact revise an expression in the agreement to
reflect the SDP's opposition to the planned relocation of the
facility within the prefecture. Hirano's remark yesterday was

TOKYO 00002749 009 OF 010


apparently intended to indicate that even if Prime Minister Yukio
Hatoyama approves the relocation of the airfield within the
prefecture, the stance does not infringe on the agreement between
the three ruling parties.

16) Government eyes spending over 7 trillion yen for economic
stimulus measures: Significant increase in second extra budget

MAINICHI (Top play) (Excerpts)
December 2, 2009

The government on Dec. 1 began making final adjustments with the
possibility of incorporating stimulus measures worth over 7 trillion
yen into the fiscal 2009 second extra budget. It had originally
planned to formulate a second extra budget using 2.7 trillion yen
squeezed from projects that were put on hold in a review of the
first extra budget. However, coordination among the three ruling
parties has bogged down. The government will now aim to reach a
consensus as early as the 2nd by significantly increasing the size
of the second extra budget.

In addition to the 2.7 trillion yen, more than 1 trillion yen
secured from unnecessary payments of interest on government bonds
realized as a result of market interest rates lower than anticipated
will be included in the budget. Actual fiscal spending worth about 4
trillion yen will now likely be earmarked in the second extra
budget.

The government is expected to map out an economic pump-priming
package by the end of the week. It will also aim to have the three
ruling parties reach a consensus. However, the People's New Party
appears to be seeking to increase the size of the budget even more.

17) BOJ to provide 10 trillion yen fund

NIKKEI (Top play) (Excerpts)
December 2, 2009

The Bank of Japan (BOJ) on Dec. 1 held an extraordinary policy
meeting and decided to further ease monetary conditions. The central
bank has decided to lend funds worth 10 trillion yen to financial
institutions at a fixed interest rate of 0.1 percent per year. The
aim is to apply pressure for a further decline in longer-term
interest rates. The BOJ will not limit the term for the supply of
funds, based on this method. The future of the Japanese economy is
becoming increasingly unclear due to the deflationary trend and the
sharp rise in the value of the yen. The central bank will clarify
its stance of addressing the deflationary trend in concert with the
government in order to produce the effects of a monetary
quantitative easing policy in a broad sense, as BOJ Governor Masaaki
Shirakawa put it -- meaning stabilizing the financial market with
the ample supply of funds.

The fund supply method (a new type of open market operation), which
the BOJ will introduce, will continue for three months. Under the
new approach, 10 trillion yen will be supplied. Highly fluid
government bonds have been secured as collateral. The BOJ introduced
a special market operation for assistance for corporate financing as
a measure to address the financial crunch in December last year. At
that time, corporate bonds and commercial papers (CP) were secured
as collateral, but government bonds were not included.


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The fund size of 10 trillion yen is equivalent to about 20 percent
of the total amount of funds the BOJ currently supplies (40-50
trillion yen). The central bank said that if demand from financial
institutions for more fund supplies grows, it will further increase
fund supplies, based on the same operation.

ROOS

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