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Cablegate: Japanese Morning Press Highlights 12/10/09

DE RUEHKO #2821/01 3440340
P 100340Z DEC 09




E.O. 12958: N/A



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

Futenma relocation:
4) Kitazawa says relocation of Futenma facility to Guam would be
difficult (Asahi)
5) Kitazawa accepts U.S. explanation; tries to quickly draw curtain
on idea to relocate Futenma facility to Guam (Asahi)
6) MOD remarks there is pessimism about the relationship of trust
between Japan and the U.S. (Yomiuri)
7) Former Vice Defense Minister Moriya says some Okinawans are tough
negotiators (Asahi)
8) Japan-U.S. summit at COP15 put off (Yomiuri)
9) DCM Zumwalt meets with DPJ 's Koshiishi (Mainichi)

Foreign relations:
10) Ozawa-led delegation leaves for China today (Tokyo Shimbun)
11) Foreign Minister : quid pro quo for North's reopening
investigation into abductions (Nikkei)
12) Government to continue grant program for northern Okinawa

13) Delta to boost aid for JAL (Asahi)

14) Study group proposes establishing lunar base by 2020 (Yomiuri)

15) Coalition party chiefs to powwow tomorrow (Nikkei)
16) DPJ to introduce bill to increase number of parliamentary
secretaries (Asahi)
17) SDP to investigate former vice defense minister's allegation
that business interests are roiling Futenma issue (Yomiuri)



Japan to demand emerging countries be required to reduce emissions

Nikai's secretary indicted in summary procedure

Volkswagen to buy 19.9 percent of Suzuki's shares

Seven and I aims to increase sales in China five-fold

Prime Minister Hatoyama intends to admit to "gift" fund
contributions from mother

Tokyo Shimbun:
84 independent administrative institutions sent funds improperly

TOKYO 00002821 002 OF 010

Hatoyama administration's tax policy unacceptable


(1) Futenma issue: Prime Minister Hatoyama must avoid crisis in
Japan-U.S. relationship
(2) Nikai's secretary: Need for drastic measures to prevent
falsified political donations

(1) Indictment of Nikai's secretary: Ruling, opposition parties must
move toward amending law
(2) Taxpayer identification number system: Wide-ranging debate
should be conducted

(1) Futenma talks suspended: Prime Minister Hatoyama must make
decision to avert crisis in Japan-U.S. alliance
(2) Summary indictment: Nikai cannot avoid taking responsibility

(1) With delay in decision on Futenma, growing possibility of three
(2) Suzuki, VW eye markets in emerging countries

(1) Postponement of Japan-U.S. talks: Reason is Prime Minister
Hatoyama's "breach of trust"
(2) Ozawa-led delegation to China: We hope the delegation holds
discussions that will advance the national interest

Tokyo Shimbun:
(1) Japan-U.S. relations: Tokyo, Washington must make a further
effort for building relationship of trust
(2) Cut in resident tax: Nagoya City has moved one step forward at
any rate

(1) Intelligence-gathering satellite project should be abolished

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 9

NIKKEI (Page 2) (Full)
December 10, 2009
Japan time
09:56 Met with Chief Cabinet Secretary Hirano at the Prime
Minister's Official Residence (Kantei).
10:14 Met with Health, Labor and Welfare Minister Nagatsuma.
12:01 Award ceremony for persons of merit in the promotion of
barrier-free universal design.
13:25 Met with State Minister for National Policy Kan and Deputy
Cabinet Office Minister Furukawa, joined by Hirano.
14:07 Council for Science and Technology Policy. Then met with
Deputy Chief Cabinet Secretary Matsuno.
15:52 Left Haneda Airport by government plane to attend the Bali
Democracy Forum.
Local time
Evening Arrived at Ngurah Rai Airport in Bali, Indonesia. Stayed

TOKYO 00002821 003 OF 010

overnight at Grand Hyatt Bali.

4) Guam relocation "difficult": Kitazawa

ASAHI (Page 1) (Full)
December 10, 2009

Hisashi Ishimatsu

GUAM-Defense Minister Toshimi Kitazawa, who is now visiting Guam,
indicated yesterday that it would be difficult to move the entire
functionality of the U.S. Marine Corps' Futenma Air Station in
Ginowan, Okinawa Prefecture, to Guam, while some ruling party
lawmakers have been calling for relocation of the entire facility to
Guam. "It strays too far from our agreement with the United States
(on the current Futenma relocation plan)," Kitazawa told
accompanying reporters.

The current Japan-U.S. agreement is to move 8,000 Okinawa-based U.S.
Marines to Guam along with the planned construction of an
alternative facility for Futenma airfield. The Social Democratic
Party, one of the ruling Democratic Party of Japan's two coalition
partners, and some of Okinawa's local mayors have been insisting
that the government should consider relocating Futenma airfield to
Guam instead of building a new facility. Prime Minister Yukio
Hatoyama also said on Dec. 4: "They're talking about relocating the
Futenma base in its entirety. When we think about U.S. deterrence,
we should consider whether it's appropriate to do so."

Concerning that move, Kitazawa indicated that the Futenma relocation
itself would not make headway. "When we're trying to do something
while expecting that, we may hit a snag," Kitazawa said. He also
expressed concern, indicating that a deferred solution to the
Futenma issue would have a serious impact on the global
transformation of U.S. forces.

Furthermore, Kitazawa said it would be "quite difficult" to proceed
with the idea of moving the Marines to Guam before resolving the
Futenma issue. "They want to resolve the issue as early as possible
and go ahead with the project," he said. "We need to respond to
their feelings properly," he added.

5) Defense minister tries to put end to Guam idea, shows
understanding for U.S. side's explanation

ASAHI (Page 3) (Abridged slightly)
December 10, 2009

Hisashi Ishimatsu in Guam, Hiroshi Ito in Washington

An idea announced by Prime Minister Yukio Hatoyama on relocating the
U.S. Marine Corps' Futenma Air Station from Ginowan, Okinawa
Prefecture, to Guam has already hit a snag. Upon taking a firsthand
look at the situation in Guam, Defense Minister Toshimi Kitazawa
yesterday tried to quickly put an end to the Guam idea, saying that
it would be difficult to realize it.

"From what I've heard from many people, I feel there is no room in
Guam for an additional air station," Kitazawa said to the press
corps traveling with him after touring U.S. air and marine bases on
Guam on Dec. 9. His conclusion is that given the ongoing global
transformation of U.S. forces, making changes to the existing plan

TOKYO 00002821 004 OF 010

would be difficult.

Earlier this month, the Social Democratic Party (SDP) threatened to
bolt from the coalition government, and as a result the Hatoyama
administration decided to postpone a solution to the relocation
issue until early next year or later. In late November, the SDP made
an abrupt proposal to consider such places as Guam and Iwo Jima as
possible candidate sites. Guam has emerged as a possible relocation
site because Prime Minster Hatoyama also expressed his willingness
to consider a move to the U.S. island.

Mayor Yoichi Iha of Ginowan, home to Futenma Air Station, also
pointed to the need to examine the possibilities for Guam, saying
hasty discussions must not be conducted premised on relocation
within Okinawa. This has resulted in rising expectations in

To begin with, Guam is specified in the existing plan, agreed upon
by Tokyo and Washington in 2006, as the site where some 8,000
Marines will be transferred from Okinawa. The Hatoyama
administration is exploring ways to move the Futenma base itself in
addition to the 8,000 Marines. In November, the U.S. Navy released
an environmental impact assessment report on the relocation of
Marines to Guam which says that 8,552 Marines - a number greater
than that agreed upon between the two countries - will be relocated.
This has resulted in the observation that the United States might
have a more extensive relocation plan in mind than the one agreed

Nevertheless, the United States needs to keep Marines in Okinawa to
conduct landing and special operations on the front line in time of
a contingency at the Taiwan Strait or in North Korea. It takes three
hours for an aircraft to travel between Guam and Taiwan and three
days for a vessel.

Furthermore, there has been no change in the U.S. position that (1)
it will move Marines from Okinawa to Guam centering on command
functions and will keep front-line troops in Okinawa; and (2)
Okinawa needs at least one alternative air base besides Kadena to
deal with contingencies. "Moving Futenma to Guam is a too great a
change for the United States to accept," a Japan-U.S. relations
expert said.

In Guam, an environmental impact assessment is underway, which is
required for building a command center and helicopter tarmacs.
Construction work is scheduled to start as early as next February.
The Japanese government has disbursed 34.6 billion yen for Guam
relocation costs this fiscal year. The Hatoyama cabinet has decided
to disburse about 50 billion yen in the next fiscal year. The plan
is designed for Japan to shoulder up to 2.8 billion dollars (250
billion yen) by 2014.

Kitazawa visited Guam at this time in a bid to demonstrate Tokyo's
eagerness to steadily advance the Marine Guam relocation plan to
Washington as well as to show maximum consideration to the SDP,
which insists on examining the option of moving Futenma to Guam.

But there are no signs that the Defense Ministry has earnestly
considered the Guam option. Being briefed by the U.S. side on Dec.
9, Kitazawa has subscribed to the view that U.S. Marines are
stationed in Okinawa out of strategic necessity. The fear that the
discussion on Futenma might spin further out of control if

TOKYO 00002821 005 OF 010

expectations for Guam relocation mount without any prospect for
realization has prompted Kitazawa to try to quickly close the
curtain on the idea.

6) Defense minister: Pessimism is growing about Japan-U.S.
relationship of trust

YOMIURI (Page 2) (Full)
December 10, 2009

Yoshikazu Shirakawa, Tumon (U.S. territory of Guam)

On Dec. 9 Defense Minister Toshimi Kitazawa visited among other
places a district in northern Guam where the U.S. military plans to
transfer about 8,000 U.S. Marines in Okinawa. In a press conference
after the tour, Kitazawa said regarding the possible transfer of
Marines from Okinawa to Guam with no prospect in sight for a
settlement of the issue of relocating the U.S. Marine Corps' Futenma
Air Station in Okinawa: "It would be difficult. Pessimism is growing
about the future of the relationship of trust between Japan and the

7) Former vice defense minister Moriya in magazine article:
"Okinawan people are tough negotiators"

ASAHI (Page 4) (Full)
December 10, 2009

Writing for the edition of the monthly magazine Chuo Koron to go on
sale on Dec. 10, former administrative vice defense minister
Takemasa Moriya gives the following advice to the Hatoyama cabinet,
which has been straying off course over the relocation of U.S.
Marine Corps' Futenma Air Station in Ginowan City, Okinawa
Prefecture: "The Hatoyama cabinet does not understand that some of
the Okinawan people engaged in negotiations with the central
government are tough." Under the government led by the Liberal
Democratic Party, Moriya was involved in negotiations with Okinawa.
He participated in the process of formulating the existing plan to
relocate the Futenma facility to the Henoko district in Nago.

In an interview with the Chuo Koron, Moriya pointed out that
interests over land reclamation are behind the current deadlock in
the negotiations. He criticizes a call from Okinawa Governor
Hirokazu Nakaima and others for moving the planned construction site
further offshore, a plan that would widen the area to be reclaimed:
"They are apparently trying to put off the settlement of the

Prime Minister Yukio Hatoyama has indicated that he would give
priority to local people's intentions, eyeing the upcoming Nago
mayoral election in January and other events in Okinawa. Speaking of
Hatoyama's stance, Moriya notes: "That is the strategy the Okinawan
people have used in negotiations with the central government, aiming
to put off the solution of issues. Many people in Okinawa are hoping
to see the central government take responsibility for dealing with
the issue."

Moriya got a prison sentence on charges of bribery and violating the
Diet Testimony Law over the procurement of defense equipment and has
entered an appeal.

8) COP15: Japan-U.S. summit put off

TOKYO 00002821 006 OF 010

YOMIURI (Page 1) (Full)
December 10, 2009

Prime Minister Hatoyama on Dec. 9 revealed that he had not yet
proposed to the U.S. a bilateral summit to discuss the issue of
relocating the U.S. Marine Corps' Futenma Air Station. The prime
minister appears eager to hold a meeting (with the U.S. President)
on the sidelines of the summit-level meeting of the 15th session of
the Conference of the Parties to the Climate Change (COP15).
However, it is now clear that coordination for a meeting has made
little progress. A growing view is that it would be difficult to
realize full-fledged talks, since the U.S. is negative toward the

On the afternoon of the 9th the Prime Minister told the press corps
at his office: "The first thing we should do is to finalize the
government's stance (toward the Futenma relocation issue). I would
like to hold a meeting if it is necessary or if there is an
opportunity. I have not yet formally proposed a meeting."

The prime minister had earlier indicated his intention to finalize
the government's stance toward the Futenma issue by the COP15. He
intends to put off a decision until next year in order to search for
a revision of the existing plan for relocating the Futenma facility
to the coastal part of Champ Schwab in Nago City, Okinawa

The prime minister remains unable to propose a meeting to the U.S.,
because of growing opposition to and a backlash against his policy
stance both in Japan and the U.S.

Worrying that Japan-U.S. relations will deteriorate, Foreign
Minister Okada is calling for a settlement of the issue before the
year end. The prime minister has reportedly expressed displeasure at
Okada's call for a settlement this year, reportedly asking his
aides, "Why is he saying such a thing?" The Japanese government has
not made progress toward unifying the views of ministers.

The U.S. side strongly distrusts the prime minister. Since the
President's schedule in Copenhagen is tight, some close to the prime
minister are beginning to take the view that the U.S. will not allow
the two leaders to meet, and even if they did meet, they would only
engage in casual conversation.

9) DPJ's Koshiishi meets with U.S. Embassy minister over Futenma

MAINICHI (Page 2) (Full)
December 10, 2009

Yesterday U.S. Deputy Chief of Mission Zumwalt from the U.S. Embassy
in Japan called at the Diet and met there with Azuma Koshiishi,
chair of the ruling Democratic Party of Japan's lawmakers seated in
the House of Councillors, to exchange views on the pending issue of
relocating the U.S. military's Futenma airfield in Ginowan, Okinawa
Prefecture. During the meeting, Zumwalt sought to settle the Futenma
relocation issue as early as possible. "We want this issue resolved
at the earliest possible date," he said. Koshiishi replied, "We will
have to take time (to reach a conclusion); otherwise we will become
even more troubled." Thus the DPJ floor leader sought understanding
for the Japanese government's response.

TOKYO 00002821 007 OF 010

10) Ozawa along with 143 lawmakers to visit China today: Is the aim
a show of power?

TOKYO SHIMBUN (Page 2) (Full)
December 10, 2009

The Democratic Party of Japan's delegation led Secretary General
Ichiro Ozawa as honorary head will visit Beijing on Dec. 10. The
delegation consists of 143 lawmakers, and totals approximately 630
people including private citizens.

The visit is an activity of the Great Wall Program, a grass-roots
exchange project launched by the Japan-China exchange talks
organization formed by the DPJ and the Chinese Communist Party, and
Ozawa, when he was a member of the Liberal Democratic Party.
Lawmakers close to Ozawa, including honorary deputy delegation chief
Azuma Koshiishi, head of the DPJ caucus in the Upper House, Diet
Affairs Committee Chairman Kenji Yamaoka, chief of the delegation,
and lawmakers who were for the first time elected in the August
Lower House election will participate in the delegation.

Ozawa is expected to meet with President Hu Jintao on the 10th. He
said, "Our visit is basically a grass-roots exchange. We have no
plans to discuss types of issues that should be taken up by the
government." However, his visiting China along with more than
one-third of DPJ lawmakers is presumably intended to demonstrate to
China his power in the Hatoyama administration.

Ozawa will visit South Korea on the 11th on his own and have a
dinner meeting with President Lee Myung Bak. They are expected to
exchange views on the question of whether foreign nationals with
permanent resident status in Japan should be vested with the right
to vote in local elections.

11) FM Okada says rewards needed if North Korea reinvestigates
abduction cases

NIKKEI (Page 2) (Excerpts)
December 10, 2009

Foreign Minister Katsuya Okada met the Association of Families of
Victims Abducted by North Korea at the Ministry of Foreign Affairs
(MOFA) on Dec. 9. He said: "If North Korea responds in good faith,
Japan will have to consider rewards." He indicated that if the DPRK
begins to reinvestigate the abduction cases, Japan is willing to
lift certain sanctions, as per the agreement reached at the
bilateral working-level meeting in Shenyang, China, in August 2008.

Shigeo Iizuka, chairman of the association, asked Okada to "request
that the U.S. and China send out a message (to North Korea) to
resolve the abduction issue at an early date." Okada said: "Our
policy to work for a comprehensive solution to the nuclear, missile,
and abduction issues remains unchanged."

Meanwhile, a senior MOFA official revealed on Dec. 9 that Stephen
Bosworth, U.S. special envoy for North Korea policy who is currently
visiting the DPRK, will be in Japan on Dec. 12-13. Vice Foreign
Minister Mitoji Yabunaka and other officials will receive a briefing
on the U.S.-DPRK talks from him and discuss future policy toward
North Korea.

TOKYO 00002821 008 OF 010

12) Government to continue economic development measures for
northern Okinawa in connection with accepting Futenma replacement
facility, contradicting its policy of reviewing relocation site

SANKEI (Page 3) (Excerpts)
December 10, 2009

It was learned that the Hatoyama administration will continue beyond
FY2010 the economic development measures for the northern area of
the main island of Okinawa, including Nago City, which has been
identified as the relocation of the U.S. forces' Futenma Air Station
(in Ginowan City, Okinawa) under the Japan-U.S. agreement. When
Prime Minister Yukio Hatoyama was in the opposition camp, he used to
criticize the policy of linking the acceptance of the Futenma
replacement facility with economic development measures as a
carrot-and-stick tactic, but now he is adopting a contradictory
policy of continuing the economic development measures and subsidies
paid out to local governments in relation to U.S. Forces Japan
(USFJ) realignment even though he is reviewing the existing Futenma
relocation plan.

The economic development measures for northern Okinawa consist of
the injection of 100 billion yen into the development of Okinawa and
the 12 municipalities in its northern region over 10 years from
FY09. They were announced after Nago agreed to accept the Futenma
replacement facility. Some 77 billion yen has already been spent for
public work projects under this scheme. The Hatoyama administration
will change the name of these economic development measures to
"special development measures for the revitalization of northern
Okinawa" and has decided to extend the allocations by two years to
FY2011 after the government's overall economic development program
for Okinawa expires. Seven billion yen will be allocated in FY2010.

Furthermore, USFJ realignment subsidies being paid to municipalities
accepting new military facilities from FY2007 based on the degree of
their cooperation with realignment projects under the special
measures law for USFJ realignment will continue to be paid out to 39
municipalities nationwide, including Nago and Ginoza Village, which
is on the flight route for helicopters using the proposed Futenma
replacement facility. A total of 9.1 billion yen is being allotted
in the budget for this purpose.

If the existing Futenma relocation plan is scrapped as a result of
the Hatoyama administration's review, the economic development
measures and realignment subsidies will have lost their purpose.
Therefore, the government intends to "make budget allocations for
Okinawa's genuine economic development," (according to Okinawa
Affairs Minister Seiji Maehara). It plans to continue the
development measures by changing the purpose of the appropriations.

13) Delta Airlines to boost capital assistance to JAL

ASAHI (Page 10) (Excerpts)
December 10, 2009

Richard Anderson, CEO of Delta Airlines of the U.S., which has
announced its readiness to extend capital assistance to Japan
Airlines (JAL), on Dec. 9 met with JAL President Haruka Nishimatsu
and conveyed the carrier's plan to boost capital assistance to JAL.
The size of assistance the company had previously indicated was
almost on the same level as that proposed by its rival carrier

TOKYO 00002821 009 OF 010

American Airlines. Delta Airlines aims to have JAL switch to
SkyTeam, an aviation alliance it leads, by increasing capital

Until today, Delta has offered capital assistance totaling 1.02
billion dollars (approximately 89.8 billion yen), including
investment worth 500 million dollars and compensation for the loss
JAL will incur when it shifts to Delta-led alliance. The carrier has
apparently proposed an increase in the cost involved in shifting to
its alliance.

Anderson also met with Transport Minister Seiji Maehara at the
Transport Ministry on the previous day. He explained to Maehara
details of Delta's proposal to JAL. He also stressed the advantage
of JAL shifting from Onewolrd, to which JAL currently belongs, to

In response, Maehara said, "It is up to JAL to decide on its
business partner." However, he added, "Since the Enterprise
Turnaround Initiative Corporation of Japan (ETIC) will help JAL
using taxpayers' money, we would like to responsibly keep an eye on
JAL's decision." He thus indicated that the government will be
involved in JAL's decision to choose its business partner.

14) Government panel plans to build base on moon by around 2020

YOMIURI (Page 2) (Full)
December 10, 2009

In a meeting of the government's panel on lunar exploration
yesterday, Chairman Katsuhiko Shirai, Waseda University president,
presented a plan to construct an unmanned, robot-controlled base at
the south pole of the moon by around 2020 and bring rocks from the
far side of the moon back to the earth by around 2025.

The Cabinet Office has announced that this plan is estimated to cost
approximately 400 billion yen. The panel will discuss the plan and
submit a report to the government's Space Development Strategy
Headquarters, chaired by Prime Minister Yukio Hatoyama, around next

Under the chairman's plan, Japan would have its lunar probe land on
the surface of the moon by around 2015. Electric power would be
supplied for a robot at the unmanned base that the panel plans to
build by around 2020. The robot would bring rocks collected from the
far side of the moon back to the earth for such purposes as
scientific research and utilization of natural resources.

15) Ruling party heads to meet tomorrow

NIKKEI (Page 2) (Full)
December 10, 2009

Prime Minister Yukio Hatoyama clarified yesterday that he will meet
with Social Democratic Party head Mizuho Fukushima and People's New
Party leader Shizuka Kamei on the evening of Dec. 11. Hatoyama told
the press corps: "We will exchange views on various pressing
issues." He is expected to discuss government policy with regard to
the relocation of the U.S. Marine Corps' Futenma Air Station, which
he plans to explain to the United States, as well as the compilation
of a state budget for fiscal 2010. The Prime Minister reportedly
proposed holding the party-head meeting.

TOKYO 00002821 010 OF 010

Hatoyama said, "The basic purpose of holding the meeting is to
express my gratitude for their contribution until now to maintaining
the coalition government." Meanwhile, Fukushima commented on the
Futenma issue, saying, "The agreement between the three parties is a
super manifesto (campaign pledge), which is stronger than each
party's manifesto. The Prime Minister said during the campaign for
the House of Representatives election (in August) that the Futenma
base should be moved out of Okinawa or Japan," stressing that her
party cannot accept the plan to relocate the base within Okinawa

16) DPJ political reform panel eyes lawmaker-initiated legislation
to increase number of parliamentary secretaries

ASAHI (Page 4) (Excerpt)
December 10, 2009

The Democratic Party of Japan's Political Reform Promotion
Committee, headed by Secretary General Ichiro Ozawa, held an
executive meeting at party headquarters yesterday. The panel decided
to include among bills related to Diet reform a bill amending the
National Government Organization Law to increase the number of
parliamentary secretaries. The panel intends to submit the bill as
legislation initiated by the three ruling parties -- the DPJ, the
Social Democratic Party and the People's New Party - to the next
ordinary Diet session, aiming to have the bill enacted at an early

17) SDP to investigate former vice defense minister's comment

YOMIURI (Page 4) (Full)
December 10, 2009

In reference to former Administrative Vice Defense Minister Takemasa
Moriya's comment that business interests relating to land
reclamation work are a factor behind the confusion over the
relocation of the U.S. Marine Corps' Futenma Air Station in Okinawa,
Social Democratic Party (SDP) head Mizuho Fukushima, currently state
minister for consumer affairs, said at a press conference yesterday,
"The issue is related to the propriety of the work. The SDP will
investigate and reveal the facts."


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