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Cablegate: Daily Summary of Japanese Press 12/02/09

DE RUEHKO #2757/01 3362257
P 022257Z DEC 09




E.O. 12958: N/A


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(1) MD Kitazawa anticipates U.S. request for more Afghan aid after
President Obama announced new strategy (Nikkei)

(2) U.S. impatient with Hatoyama administration's delay in making
decision on Futenma relocation (Okinawa Times)

(3) MD Kitazawa indicates need to coordinate with SDP, PNP on
Futenma relocation issue (Jiji com)

(4) Futenma Air Field relocation: Statement by Governor Hashimoto
overturns premise that relocation of Futenma functions out of the
prefecture would be difficult (Okinawa Times)

(5) Coalition partners SDP, PNP "headache" for PM Hatoyama in
Futenma relocation issue; efforts being made to prevent
disintegration of coalition (Tokyo Shimbun)

(6) Testimony acknowledging existence of secret Okinawa accord to
give pressure for uncovering secret nuclear accord as well: Likely
to affect discussion on review of diplomatic documents disclosure
system (Nikkei)

(7) Editorial: Truth revealed on history of secret accord (Tokyo

(8) Editorial: Former Foreign Ministry bureau chiefs' testimony must
be utilized to restore trust in diplomacy (Mainichi)

(9) "Protocol" fading, ahead of international conference on global
warming (Part 1) (Mainichi)


(1) MD Kitazawa anticipates U.S. request for more Afghan aid after
President Obama announced new strategy

NIKKEI (Page 2) (Slightly abridged)
Evening, December 2, 2009

In light of U.S. President Barack Obama's announcement of a new
strategy for Afghanistan, the government is stepping up the
formulation of concrete proposals for additional Afghan aid, which
it had pledged at the Japan-U.S. summit meeting in November. Japan's
additional aid measures, consisting mainly of civilian aid, such as
paying for the salaries of police officers and vocational training,
are expected to total a maximum of 5 billion dollars over five years
from 2009. Defense Minister Toshimi Kitazawa indicated on the
morning of Dec. 2 that the U.S. side is expected to request
additional aid.

Kitazawa gave a speech at the National Defense Academy in Yokosuka
City, Kanagawa Prefecture, on the morning of Dec. 2. Commenting on
the new U.S. strategy, he pointed out that "the Obama administration
is concerned that Afghanistan may turn into another Vietnam or
Iraq." He added, "There is a strong possibility that the U.S. may
ask Japan for more aid."

In this connection, Chief Cabinet Secretary Hirofumi Hirano stressed
at a news conference in the morning that "in addition to the 5
billion dollars in aid, we would like to collaborate closely with

TOKYO 00002757 002 OF 011

the U.S. and other concerned countries and actively cooperate for
the stability and development of Afghanistan."

(2) U.S. impatient with Hatoyama administration's delay in making
decision on Futenma relocation

OKINAWA TIMES (Page 2) (Full)
December 2, 2009

Shin Yoshida, member of "Futenma Adrift" series reporting team

Shortly before U.S. President Barack Obama's visit to Japan, a
source knowledgeable about Japan-U.S. diplomacy smiled wryly and
revealed that the U.S. government itself was skeptical about the
working group for the relocation of the U.S. forces' Futenma Air
Station that the two governments had just agreed to set up. He said:
"It is alleged that the working group 'is a kabuki show and has no

A "kabuki show" is the term used by the Wall Street Journal in an
editorial in late October criticizing Prime Minister Yukio Hatoyama,
asserting that "it doesn't sound like he's thought much about the
alternatives." However, this source also explained: "The end of a
kabuki show is known. (What Hatoyama is doing) is just a charade for
implementing the current relocation plan."

The U.S. government has been applying pressure for a decision on the
Futenma issue before the end of 2009.

The working group was created to paper over the gap between the two
countries at the meeting between Hatoyama, who was yet to chart a
course, and Obama. A Japanese government source said with
self-derision: "The Ambassador is just a proxy of the secretaries of
defense and state. The working group is for the sake of making a
decision on relocation to Henoko."

In anticipation of a change of administration in Japan, the U.S. has
been contacting senior Democratic Party of Japan (DPJ) officials
since late 2008. Members of the transition team and think tank
researchers who came to Japan before the inauguration of the Obama
administration argued that the implementation of the U.S. Forces
Japan (USFJ) realignment plans is the most desirable option.

At the same time, the departments of state and defense briefed the
Obama administration on the USFJ realignment plans and prepared for
the conclusion of the Guam Agreement. The above Japanese source says
that State and Pentagon persuaded Secretary of State Hillary
Clinton, who thought "there is no need for such a big rush," and
succeeded in having the agreement signed in February. Several
sources explain that "many years have passed since the SACO (Special
Action Committee on Okinawa), and the U.S. no longer has the energy
to renegotiate." It was thought that persuading the new governments
in Japan and the U.S. would be a much easier endeavor. These sources
believe that the U.S. stepped up its efforts to persuade the
Hatoyama administration based on such a line of reasoning.

After Foreign Minister Katsuya Okada indicated for the first time on
Oct. 23 that he favored a proposal to integrate Futenma's functions
with Kadena Air Base, U.S. Ambassador to Japan John Roos, USFJ
Commander Edward Rice, and other U.S. officials visited the Ministry
of Foreign Affairs on Oct. 29 and 30. They explained that: "The
security environment has changed in the 13 years after SACO. With

TOKYO 00002757 003 OF 011

the rapid buildup of Chinese air power, it will be difficult to
adopt the Kadena integration plan."

It is said that after a month of discussions, the U.S. side is
becoming convinced that "the Kadena option will be abandoned sooner
or later because it is not feasible. The DPJ is no different from
the Liberal Democratic Party after all."

However, it appears that the U.S. side is still worried because "the
DPJ's policymaking process is unclear. What is Hatoyama really
thinking?" Another source knowledgeable about Japan-U.S. diplomacy
is visibly impatient. He says: "There are growing expectations in
Okinawa for (Futenma's) relocation out of the prefecture or out of
Japan. We hope for an early solution."

(3) MD Kitazawa indicates need to coordinate with SDP, PNP on
Futenma relocation issue

13:26, December 2, 2009

Defense Minister Toshimi Kitazawa gave a speech at the National
Defense Academy in Yokosuka City, Kanagawa Prefecture, on the
morning of Dec. 2. Discussing the relocation of the U.S. forces'
Futenma Air Station (in Ginowan City, Okinawa), he said: "While I
hope that there will be a solution before the end of the year, the
Hatoyama administration is a coalition government of three parties.
I wonder if breaking up the coalition and triggering political
confusion would be in Japan's interest," indicating that
coordination with the Social Democratic Party and the People's New
Party, which demand the relocation of Futenma out of Okinawa, is

Kitazawa also said: "I don't think the Japan-U.S. relationship will
become extremely unstable even if a solution isn't reached by the
end of the year."

Regarding the schedule of the bilateral working group on the Futenma
issue, Kitazawa said: "Working level discussions will take place on
Dec. 4, and this can be upgraded to the ministerial level if

(4) Futenma Air Field relocation: Statement by Governor Hashimoto
overturns premise that relocation of Futenma functions out of the
prefecture would be difficult

OKINAWA TIMES (Page 2) (Excerpts)
December 2, 2009


Concerning the issue of relocating the U.S. Marine Corps' Futenma
Air Station, Osaka Governor Toru Hashimoto said, "If we receive a
proposal from the government, we in the Kansai region will do our
utmost to come up with a plan." This statement by the governor has
overturned the premise adopted by the past administrations, which
cited the lack of other possible relocation sites outside the
prefecture as one reason for regarding the relocation of the Futenma
facilities outside the prefecture as difficult.

In the process of the U.S. Forces Japan realignment talks, former
Prime Minister Junichiro Koizumi once said, "It is all right to

TOKYO 00002757 004 OF 011

consider relocating facilities outside the prefecture or the nation"
(October, 2004) However, he withdrew this view less than a year
later under the banner that local governments were reluctant to
accept the Futenma functions. He said, "Many municipalities are in
favor of my view as a general argument but against it when it comes
to specifics. They all view the facilities as an unwelcome

Among ministers of the present administration, those who are in
favor of relocation within the prefecture cite the time needed to
find an alternative site as a reason for that. Foreign Minister
Katsuya Okada, for instance, said, "There is (no option for)
relocating outside the prefecture, since the amount of time
available is limited."

The people of Okinawa are dissatisfied that there is no indication
that the government has sounded out or held talks with
municipalities outside Okinawa Prefecture about whether they would
accept the Futenma facilities in order to reduce the burden of
Okinawa. Hashimoto made the above statement in response to a
question asked by reporters. He said, "The government has never
consulted me on the matter."

It is not clear whether he made the statement with the acceptance of
a helicopter unit in mind or he was referring to the transfer of
F-15 fighter drills from Kadena Air Base following the integration
(of the Futenma facilities) into it. It remains to be seen whether
the Hashimoto statement will directly lead to the relocation of the
Futenma functions outside the prefecture.

However, concerning the excessive concentration of U.S. military
bases in Okinawa, Hashimoto said, "The people must be aware of the
situation and some municipality must accept (the Futenma

(5) Coalition partners SDP, PNP "headache" for PM Hatoyama in
Futenma relocation issue; efforts being made to prevent
disintegration of coalition

TOKYO SHIMBUN (Page 2) (Full)
December 2, 2009

Koki Miura

How to handle the Social Democratic Party (SDP) and the People's New
Party (PNP) is now a headache for Prime Minister Yukio Hatoyama in
dealing with the issue of the relocation of the U.S. forces' Futenma
Air Station (in Ginowan City, Okinawa). The foreign and defense
ministries are working for a solution based on the current plan to
relocate the Futenma base to the coastal area of Camp Schwab in Nago
City before the end of 2009, but the SDP is poised to oppose
relocation within Okinawa, hinting at the possibility of breaking
away from the coalition. The Prime Minister, who is focused on the
U.S. and Okinawa in responding to this issue, finds himself in
distress in his own "home ground."

Hatoyama met with Foreign Minister Katsuya Okada and Defense
Minister Toshimi Kitazawa at the Prime Minister's Official Residence
on Dec. 1 to discuss the Futenma issue. They agreed that the
coalition's disintegration should be avoided at all costs. In late
afternoon Hatoyama spoke to reporters. "We are also considering how
the other parties are thinking," emphasizing that consideration is

TOKYO 00002757 005 OF 011

being given to the SDP and the PNP.

Chief Cabinet Secretary Hirofumi Hirano also stated at a news
conference that "the three parties coming to an agreement is an
absolutely necessary process," indicating that a decision will be
made based on an agreement among three parties.

In connection with the Futenma issue, SDP leader Mizuho Fukushima
demanded at the Ministerial Committee on Basic Policies on Nov. 30
the creation of a working group for three-party consultations. "All
options should be looked into," she angrily said during a press
conference on Dec. 1. "Simply accepting the previous
administration's agreement is unacceptable."

The SDP's goal is to prolong the debate in an attempt to block
Futenma's relocation within Okinawa. For Fukushima, this issue is
also significant because official declaration of candidacy for the
election of the SDP's leader is scheduled for Dec. 4. She is seeking
a fourth term. Fukushima had just been criticized at a meeting of
SDP members of both houses of the Diet on Nov. 27 for being "soft"
on the Futenma issue. A senior party official warns that "if the
party compromises here, this will directly lead to bolting from the
coalition and even affect the very survival of the party."

The PNP, which includes senior party officials elected from Okinawa,
is falling in step with the SDP. PNP leader Shizuka Kamei made
remarks in support of the SDP at the Ministerial Committee meeting
on Nov. 30. He said: "If a decision is not made by the three parties
together, the SDP will break away. The government should impress
upon the U.S. that the matter can't be settled by it and the
Ministry of Foreign Affairs alone."

Meanwhile, Okada and Kitazawa are taking steps to prepare for making
a decision based on the current relocation plan before the end of
the year. The Japan-U.S. cabinet level working group is expected to
hold its second meeting this week at the earliest. Okada will make
another visit to Okinawa on Dec. 4 and 5 to hear the Okinawan
people's opinions. There is speculation in the ruling parties that
the government may make a decision as soon as Dec. 7 after Okada's
visit to Okinawa.

"In that case," Ministry of Defense officials say, "coordination
among the parties will be important. Someone who can play this role
should step forward." They are beginning to voice hopes that
Democratic Party of Japan Secretary General Ichiro Ozawa will do

(6) Testimony acknowledging existence of secret Okinawa accord to
give pressure for uncovering secret nuclear accord as well: Likely
to affect discussion on review of diplomatic documents disclosure

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

Bunroku Yoshino, a former director general of the North American
Affairs Bureau of the Ministry of Foreign Affairs (MOFA), has

formally acknowledged the existence of a secret accord concerning
the reversion of Okinawa to Japan. This will likely affect the
investigation into Japan-U.S. secret accords on nuclear introduction
into Japan and the way diplomatic documents are disclosed.

TOKYO 00002757 006 OF 011

The secret Okinawa accord, the target of the lawsuit this time, is
one of the four secret accords the subject of a probe by the
blue-ribbon panel (chaired by Tokyo University Professor Shinichi
Kitaoka), established by Foreign Minister Katsuya Okada. The
existence of another secret accord, which stipulates that the U.S.
military can bring nuclear weapons into Japan in the event of
emergency after the reversion of Okinawa without nuclear weapons,
has also been pointed out.

Yoshino's testimony is a powerful document for the investigation
into the secret accord. It will help pressure the government to
investigate further. Prime Minister Yukio Hatoyama on Dec. 1 told
reporters: "It is a precious testimony. The government is now
confirming the facts. As soon as the matter is confirmed, I would
like to let the people know about it."

Some have pointed out that Yoshino's testimony could affect the
ongoing discussion on the U.S. Forces Japan realignment plan. The
Liberal Democratic Party-New Komeito administration decided to
shoulder the cost of the transfer of about 8,000 U.S. Marines
stationed in Okinawa. However, voices skeptical about the need for
Japan to shoulder such a cost are deep rooted. Of the transfer cost
totaling 10.27 billion dollars, Japan will disburse 6.09 billion
dollars, including loans. However, the size of the actual transfer
and details of the building of facilities in Guam are unclear.

The testimony will also likely accelerate discussions for reviewing
Japan's diplomatic documents disclosure system. The expert committee
intends to propose improving the application of the system.

Like the U.S, the Japanese government, in principle, discloses
diplomatic documents that have been in custody more than 30 years.
However, the propriety of doing so is relegated to MOFA to determine
on its own. Relevant bureaus, such as the North American Affairs
Bureau, determine whether to disclose such documents or not. There
is strong criticism that MOFA has desired to conceal those
documents. There is also a pattern of MOFA bureaucrats' keeping
secret accords in an unbroken line, as there had been no change in
the government for a long period of time, and controlling diplomacy
toward the U.S.

In the U.S., there is a bureau exclusively responsible for
disclosing administrative documents. It adopts a mechanism of
screening concerned documents from a third-party's standpoint.
Procedures are speedier than in Japan. Documents control books are
also consolidated.

(7) Editorial: Truth revealed on history of secret accord

TOKYO SHIMBUN (Page 5) (Full)
December 2, 2009

A former Foreign Ministry bureau chief testified in court yesterday
that he signed documents on a secret agreement on the reversion of
Okinawa to Japanese administration. The meaning behind his testimony
is deeply significance. The national government, which has denied
the existence of the secret accord, will likely be forced to change
its official stance. The Japanese public is not convinced that the
historical truth should remain hidden.

Bunroku Yoshino, the former Foreign Ministry bureau chief in

TOKYO 00002757 007 OF 011

question, admitted in the Tokyo District Court to the existence of
the Okinawa secret accord, saying, "The words in the official
Okinawa reversion accord and the facts are different." With regard
to the documents declassified by the U.S. side, which disclosed the
existence of the Okinawa secret deal, he said, "I signed the
documents at my director general's office."

The documents stipulated Japan's payment of 4 million dollars in
costs for restoring returned military base land to its original
state, which the United States was actually supposed to bear.

Yoshino took the witness stand in a lawsuit filed by former Mainichi
Shimbun reporter Takichi Nishiyama and other plaintiffs asking the
government to disclose secret documents. All the more because the
national government has consistently said that there is no secret
accord, the testimony at a public occasion by the person who signed
the documents is significant. It is inevitable that the government's
accountability for the secret documents will be harshly questioned.

Yoshino's testimony might also be a clue to exposing a secret. This
is because there are apparently still some hidden secrets regarding
the reversion of Okinawa to Japanese administration. For example, it
has been said that although the Japanese side concluded an agreement
that it would shoulder 320 million dollars for the reversion of
Okinawan to Japan, the total amount Japan paid to the United States
was far higher than that amount.

Of the expenditures in the secret accord, 65 million dollars is said
to be the origin of the Japan's current host nation support (or the
so-called sympathy budget) for the U.S. forces in Japan. Therefore,
the secret document issue is a problem linking to the present day.
However, these facts have been disclosed by the U.S. side's
diplomatic documents. Because the Japanese government has continued
to conceal such facts, the Japanese people have not known anything
about them.

In the Foreign Ministry, a committee of experts has started
examining a nuclear secret agreement. However, the Finance Ministry
has not yet revealed its documents on the Okinawa secret. If the
documents are disclosed, our national interests will no longer be
damaged. We want the central government to shed light on the whole
picture of the secret pact by quickly examining and disclosing the

At the time when Okinawa was returned to Japanese administration,
Nishiyama was arrested for and convicted of obtaining a secret
official telegram by tempting a Foreign Ministry employee. In the
Tokyo District Court 37 years ago, Yoshino offered a false testimony
that there was no secret agreement. In the court yesterday, Yoshino
approached Nishiyama and they shook hands. This scene reveals how
relieved Yoshino felt at disclosing the truth for the sake of future

How did the government of Prime Minister Eisaku Sato carry out
negotiations with Washington on the reversion of Okinawa to Japan?
As the people involved in the negotiations gradually begin to leave
us behind, future generations will be unable to make judgments
unless important records in Japan's postwar history are disclosed.
The new administration is faced with the challenge of disclosing the
truth behind the Okinawa secret accord, which was concluded under
the Liberal Democratic Party governments.

TOKYO 00002757 008 OF 011

(8) Editorial: Former Foreign Ministry bureau chiefs' testimony must
be utilized to restore trust in diplomacy

MAINICHI (Page 5) (Full)
December 2, 2009

Bunroku Yoshino, a former Foreign Ministry American Bureau chief who
had held talks with the United States on the 1972 reversion of
Okinawa, admitted for the first time in court yesterday the
existence of a secret deal with the United States. The testimony by
the former high-ranking government official, who served as a top
negotiator, carries great significance. The Hatoyama cabinet must
utilize this valuable testimony to restore trust in Japanese

Yoshino made the statement in a lawsuit filed by a group of
individuals, including former Mainichi Shimbun reporter Takichi
Nishiyama, who are demanding the government disclose documents
pertaining to the alleged secret pact. The plaintiffs are calling
for the disclosure of documents specifying that Japan was to
shoulder the costs of restoring land in Okinawa, which was supposed
to be paid by the United States, and of moving the relay station of
Voice of America (VOA), U.S. shortwave overseas radio broadcast, out
of Japan.

Taking the witness stand on behalf of the plaintiffs, Yoshino
admitted that he had signed in the Foreign Ministry
director-general's office a document (written in English) promising
that Japan would shoulder 4 million dollars (1.2 billion yen at the
exchange rate during that time) to restore land in Okinawa to its
original state, adding that then Foreign Minister Kiichi Aichi was
also aware of it. "I think the memorandum in English was
appropriately preserved and discarded later because it was
unnecessary (for the Japanese side)," Yoshino said. He further
admitted that he had also signed a document pertaining to Japan's
payment (16 million dollars) for the relocation of the VOA relay

The state has repeatedly insisted that those documents were not
final agreements, but the current government has yet to clarify
where it stands on the matter -- possibly in view of the
verification of the secret agreements by the Foreign Ministry's
experts' panel.

In any case, the government should have changed its stance much
earlier. Many documents proving the existence of the Japan-U.S.
secret agreement on the revision of Okinawa have been found in the
United States since 1998. In interviews given in February 2006 to
the Mainichi Shimbun and other media outlets, Yoshino admitted the
existence of the secret deal for the first time as a former top
Japanese negotiator.

Despite that, the former administration led by the Liberal
Democratic Party (LDP) consistently denied the existence of the
secret pact. Above all, this pact is connected with talks on
payments associated with the reversion of Okinawa. The weak
reasoning behind the calculation is also being called into question.
The deal can be described as a dual betrayal of the people.

Under the Civil Proceedings Law, even an ex-civil servant cannot
take the witness stand without the approval of the agency where
he/she used to work. If the LDP was still in power, Yoshino would

TOKYO 00002757 009 OF 011

not have been able to testify in court. (Yoshino's testimony) is one
positive effect of the change of administration.

Prime Minister Yukio Hatoyama said on Yoshino's testimony: "It is
one valuable testimony. After the facts are verified, the government
wants to let the people know about them." We want to see the
government totally uncover the facts about the secret deal based on
this testimony.

"Attempts to distort history are disadvantageous to the people,"
Yoshino said in a press conference. "The United States has disclosed
official documents. I think this practice will be beneficial." The
current system in which the Foreign Ministry can arbitrarily decide
on whether or not to disclose diplomatic documents is also in need
of drastic review.

(9) "Protocol" fading, ahead of international conference on global
warming (Part 1)

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

U.S., China struggling for leadership in setting target for
greenhouse gas emissions cuts; Japan may be left behind

The UN Framework Convention on Climate Change (COP15) will open in
Copenhagen, Denmark, on Dec. 7. Attention is being focused on
whether a significant political agreement will be reached in
preparation for introducing a new international framework to reduce
greenhouse gas emissions beyond the timeframe set in the Kyoto
Protocol. Under such a situation, a battle for leadership is
intensifying as the U.S. and China announced in succession their
targets to curb greenhouse gas emissions.

Early in the morning of Nov. 27 - the day after the U.S. and China
announced their commitments, Foreign Minister Katsuya Okada urgently
called cabinet ministers in the Diet Building. Environment Minister
Sakihito Ozawa proudly said: "Prime Minister Yukio Hatoyama's speech
at the UN general assembly prompted the U.S. and China to come up
with commitments and enabled Japan to take the leadership."
Participants also decided to consider later what approach Japan
should take in the international conference. As it stands, there was
no sense of urgency detected in the meeting.

The U.S. announced its target of reducing emissions by 17 PERCENT
from 2005 levels by 2020, but if this figure is calculated on the
basis of 1990 levels, it is less than 4 PERCENT . China's target
could lead to remarkably increasing its gas emissions. Even so, the
international community has welcomed the policy switch of these two
largest gas emitters, which had refused to present any numerical
targets. For this policy change, the U.S. and China reportedly made
arrangements in a package agreement on a tie-up in the energy area
reached in their summit meeting in Beijing in November. An
international negotiation source said: "The U.S. and China also
prearranged their reduction targets in the meeting."

In the UN assembly in September, Hatoyama announced Japan's
ambitious goal of reducing greenhouse gas emissions by 25 PERCENT
compared with 1990 levels as an international pledge. The prime
minister appeared to have led the international community at that
time. But Japan has been toyed with by prearrangements by the U.S.
and China.

TOKYO 00002757 010 OF 011

"The world's emissions should be halved by 2050." This passage was
dropped from the joint declaration issued in winding up the summit
meeting of the Asia-Pacific Economic Cooperation (APEC) forum
despite the Japanese government's call. This passage had been
inserted in the draft declaration. One negotiator explained: "China
voiced opposition to the last." That nation also succeeded in having
its requests, including the transfer of technology to emerging
countries, included in the declaration. The U.S. has also decided to
dispatch seven minister-level officials to the COP15. A Japanese
negotiator grumbled: "The U.S. will hijack the COP."

"There is no negotiating card left for Japan," said Akihiro Sawa,
senior executive fellow of the 21st Century Public Policy Institute.
Other countries have secured a free hand to be able to change their
numerical targets depending on circumstances, but he says, "Japan,
which has announced a fixed ambitious figure, cannot take a flexible
stance (only with 25 PERCENT ) in negotiations."

An aide to Hatoyama said in a low voice on Nov. 26: "The prime
minister has just begun to study the issue." Japan once led the
world, but a government source is concerned that "if Japan cannot
obtain information, it might be left out." There is even this
indication that because information has not been provided to Japan,
a sense of urgency was not detected in the emergency meeting on Nov.

Projects to promote emissions trading also subject to review; road
map for 25 PERCENT target yet to be prepared

In the budget-screening session on Nov. 25, the Government
Revitalization Unit, chaired by Prime Minister Yukio Hatoyama,
decided to put off or scrap budgetary allocations for seven projects
to promote measures to contain global warming, including one to
disseminate the emissions trading system across the nation. In the
screening session on the 26th, a senior Environment Ministry
official vented to a senior Finance Ministry official who was
sitting next to him: "If these projects are scrapped, it will be
impossible for Japan to achieve the 25 PERCENT target."

The panel also decided to put off the budgetary allocation for
developing smart grid technology - the next-generation power
transmission network -- proposed by the Environment Ministry. This
is a core technology in fighting global warming and was included in
the action program on clean energy technology cooperation, which was
agreed on in the latest Japan-U.S. summit held about two weeks ago.

The Hatoyama administration has pledged to take every possible
measure to achieve the 25 PERCENT -reduction goal, but a senior
Environment Ministry official grumbled: "His words and deeds are

Japan Iron and Steel Federation Chairman Shoji Muneoka told Economy,
Trade and Industry Minister Masayuki Naoshima in their meeting on
Nov. 25: "I ask you not to agree on a mechanism that excludes the
U.S. and China." Cooperation from the steel industry, which has
generated the largest volume of greenhouse gases, is absolutely
necessary, but the chairman has complained that the Hatoyama
administration's public pledge "will undermine the nation's
competitiveness in the international market," and "The federation is
against the target."

TOKYO 00002757 011 OF 011

As its guidelines for gas emission cuts from 1990 levels, the
International Energy Agency (IEA) suggested 10 PERCENT for Japan, 3
PERCENT for the U.S., and 23 PERCENT for Europe. A senior IEA
member commented: "Japan's 25 PERCENT is too high."

A UN executive praised Japan's 25 PERCENT reduction target, saying:
"We will push negotiations forward," but a road map for this target
is still nowhere in sight.


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