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Cablegate: Daily Summary of Japanese Press 12/10/09

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UNCLAS SECTION 01 OF 15 TOKYO 002835

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DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 12/10/09

INDEX:

(1) Deadlock in Futenma issue casting pall over Japan-U.S. alliance
(Asahi)

(2) Hirano suggests broadening agenda of Japan-U.S. cabinet-level
working group on Futenma relocation (Sankei)

(3) Editorial: Government must not put Japan-U.S. relations at risk
over Futenma issue (Asahi)

(4) Editorial: With delay in decision on Futenma, growing
possibility of three crises (Nikkei)

(5) Okinawan companies seek U.S. Ambassador Roos's assistance in
sending young people for IT training (Okinawa Times)

(6) U.S. Ambassador Roos indicates willingness to cooperate with
sending students to the U.S. for IT training (Ryukyu Shimpo)

(7) DPJ gives greater importance to China than to the Japan-U.S.
alliance (Sankei)

(8) Japan-China joint poll (Yomiuri)

(9) Growth for Japan: Promote FTAs and challenge the world (Nikkei)


ARTICLES:

(1) Deadlock in Futenma issue casting pall over Japan-U.S. alliance

ASAHI (Page 3) (Excerpts)
December 9, 2009

The issue of relocating the U.S. Marine Corps' Futenma Air Station
in Ginowan City, Okinawa Prefecture, is casting a pall over the
entire Japan-U.S. relationship. The U.S. has fiercely reacted to
Prime Minister Hatoyama's idea of putting off a conclusion of the
issue until next year. Hatoyama and President Barack Obama agreed
(in their talks in Tokyo) to hold bilateral consultations aimed at
deepening the Japan-U.S. alliance. But such consultations are now
likely to be put on hold. Hatoyama appears to be willing to place
priority on reducing the base burden on Okinawa, but the U.S. has
indicated no sign of holding the consultations before prospects for
a settlement of the issue come into sight.

Hatoyama not revealing his true intention

Yesterday evening, Prime Minister Hatoyama emphasized that
coordination of the government's policy on the Futenma policy to be
conveyed to the U.S. was in the final stage. But he did not disclose
what policy he intends to convey to the U.S.

Concerned cabinet ministers have visited the Prime Minister's
Official Residence almost every day to discuss the Futenma issue.
Yesterday, Hatoyama, Foreign Minister Katsuya Okada, Defense
Minister Toshimi Kitazawa, Land, Infrastructure, Transport and
Tourism Minister Seiji Maehara, and Chief Cabinet Secretary Hirofumi
Hirano discussed the issue. In the meeting, Kitazawa said: "It
depends on what decision the prime minister will make," indicating
he will wait for Hatoyama's judgment.

TOKYO 00002835 002 OF 015

Hatoyama has been caught between "the desire of the Okinawan people"
and "the reality of the Japan-U.S. agreement." In the midst of this
situation, the Social Democratic Party (SDP) hinted at leaving the
coalition in opposition to the government's plan of reaching a swift
conclusion. The Hatoyama cabinet, which has been pressed to give up
on resolving the Futenma issue by the end of the year, has few
options left for breaking the impasse.

Recently, calls are growing for placing priority on reducing the
burden on Okinawa, such as the removal of the danger posed by the
Futenma base, over deciding on a relocation site. The Hatoyama
cabinet is studying the following possibilities: (1) moving
helicopters at the Futenma airfield to other bases; and (2) adding
an environment clause that would obligate the U.S. military to
restore the contaminated land it has used to its original state to
the Japan-U.S. Status of Forces Agreement.

In a press conference yesterday morning, Chief Cabinet Secretary
Hirano underscored his consideration to Okinawa, remarking: "The top
priority is to reduce the burden on the people in Okinawa and to
remove risks. The government must address this task on a priority
basis," echoing Hatoyama, who has repeatedly stated: "I will make
efforts to reflect the wishes of the Okinawan people in the
government's policy."

In the cabinet, some members have begun exploring new potential
relocation sites while leaving open the possibility of moving the
facility to the Henoko district in Nago City based on the existing
plan. Defense Minister Kitazawa left for Guam yesterday to visit
U.S. military bases, even bearing in mind the possibility of
relocating the Futenma facility there.

Japanese government officials appear to be considering the
possibility of changing the process of implementing the roadmap for
the realignment of U.S. forces in Japan, which was agreed on in 2006
between Japan and the U.S. The idea of speeding up the relocation of
training exercises from U.S. Kadena Base to a Self-Defense Force's
base has also been floated.

But the government cannot implement these proposed measures without
a consensus from the U.S. side. If these measures are also left
untouched, it could lead to a worst-case scenario in which the
dangers of the Futenma airfield are not removed and the broad
Japan-U.S. accord on the realignment of U.S. forces in Japan is
returned to square one.

Idea of deepening Japan-U.S. relations already losing momentum

Prime Minister Hatoyama has come up with the idea of deepening the
Japan-U.S. alliance in wide-ranging areas, such as disaster
prevention, medical care, education, and the environment, on the
occasion of the 50th anniversary next year of the revision of the
Japan-U.S. Security Treaty. But this idea has already lost
momentum.

Hatoyama proposed holding key bilateral consultations to deepen the
bilateral alliance when he met with President Obama in November.
This was a major accomplishment in the Japan-U.S. summit for
Hatoyama. But the U.S. side's stance is that it will not begin the
bilateral consultations as long as the Futenma issue remains
unresolved in the discussions by the Japan-U.S. working group.

TOKYO 00002835 003 OF 015

Foreign Minister Okada also lamented yesterday: "I cannot bring
myself to discuss future options for the Japan-U.S. alliance, while
leaving the Futenma issue unsettled."

In a symposium sponsored by the U.S. Center for Strategic and
International Studies (CSIS) and other institutes in Tokyo
yesterday, former Deputy Secretary of State Richard Armitage made a
cynical comment indicating that it would be better not to hold
bilateral consultations if no positive results are expected to be
produced there.

In the Hatoyama administration, Parliamentary Defense Secretary
Akihisa Nagashima also expressed his sense of alarm: "Without
discussing how much risk Japan should share with the U.S. in times
of emergency, many people have insisted that since (the U.S.
military bases) are troublesome facilities, they should be moved
away."

Under this situation, U.S. government officials have begun to
approach influential DPJ lawmakers. Deputy Chief of Mission in the
U.S. Embassy James Zumwalt held talks with Diet Affairs Committee
Chairman Kenji Yamaoka for about one hour and 30 minutes yesterday.
According to Yamaoka, DCM Zumwalt asked for Japan's cooperation in
resolving the issue by the end of the year, but Yamaoka replied:
"Haste makes waste."

Hatoyama has expressed his desire to hold a bilateral meeting with
U.S. President Obama on the sidelines of the 15th session of the
Conference of the Parties to the UN Framework Convention on Climate
Change in Copenhagen starting on Dec. 18. But a senior Foreign
Ministry official grumbled: "If Japan presents a specific proposal
and if the U.S. thinks the meeting will be beneficial to the U.S.,
the President might meet Hatoyama; otherwise, even if the President
has time, he probably will not meet the prime minister."

(2) Hirano suggests broadening agenda of Japan-U.S. cabinet-level
working group on Futenma relocation

SANKEI ONLINE (Full)
12:53, December 10, 2009

At a news conference on the morning of Dec. 10, Chief Cabinet
Secretary Hirofumi Hirano indicated the intention not to limit
discussions at the Japan-U.S. cabinet-level working group on the
relocation of the U.S. forces' Futenma Air Station (in Ginowan City,
Okinawa), which have been suspended, to the examination of the
existing plan to build a replacement facility in the coastal area of
Camp Schwab in Henoko, Nago City, and resume the discussions after
turning the working group into a forum for broader topics, including
the identification of a new relocation site.

Hirano said: "(While the working group's goal) is the examination of
the Japan-U.S. agreement, it is possible to have working-level
discussions on different topics. (There is the question of) whether
the present framework is the best." The working group has been
suspended after Prime Minister Yukio Hatoyama indicated he will
consider Guam as a possible relocation site. The U.S. side demands
the implementation of the current plan and White House Press
Secretary Robert Gibbs has just stated on Dec. 9 that "discussions
at the working group is the best way."


TOKYO 00002835 004 OF 015


(3) Editorial: Government must not put Japan-U.S. relations at risk
over Futenma issue

ASAHI (Page 3) (Full)
December 10, 2009

The issue of relocating the U.S. Marine Corps' Futenma Air Station
has become more complicated since Prime Minister Yukio Hatoyama
indicated last week that the government would put off a conclusion
of the relocation issue until next year. Hatoyama's decision
reflects his consideration toward the Social Democratic Party, which
is adamantly opposed to the existing plan to relocate the Futenma
facility to the Henoko district in Nago City.

As a result, discussions at a cabinet-level bilateral working group
that was set up based on an agreement between Hatoyama and U.S.
President Barack Obama to examine the existing plan have been
suspended. The two leaders also agreed in their talks in Tokyo to
hold bilateral consultations aimed at deepening the Japan-U.S.
alliance, with an eye on 2010 marking the 50th anniversary of the
revision of the Japan-U.S. Security Treaty. But the consultations
are also likely to be put on hold.

The U.S. government has said that there is no feasible option other
than the existing plan. Washington's decision to put off the
consultations indicates its strong displeasure at Japan's
postponement of a conclusion, according to Japanese government
sources. Seeing the adverse development, even Foreign Minister
Katsuya Okada said: "I have a very strong sense of alarm over the
current state of Japan-U.S. relations."

Japan-U.S. relations are based on the Security Treaty, so it is an
essential requirement for Japan to offer land for U.S. military
bases. The relocation issue is an important part of this
requirement. Japan and the U.S. must share this basic perception.

In view of its position, Washington's call on Japan to implement the
current plan makes sense. Meanwhile, the Hatoyama administration has
examined the process leading to the existing plan and has tried to
find measures to lighten the excessive burden on Okinawa. Such
efforts also should not be denied.

The problem is that Japan and the U.S. have not exchanged candid
views as allies on how to retain the deterrence provided by the
presence of U.S. military troops in Japan and the cost Japan should
bear to that end.

It is too simplistic to say that the alliance itself could collapse
(over the Futenma issue), but it is unfortunate that the situation
is getting more chaotic without communications made between the two
countries.

President Obama stated in Tokyo: "The Japan-U.S. alliance has been a
foundation for security and prosperity over the past 50 years." The
will and wisdom to maintain and manage the "foundation" are now
needed.

The Hatoyama administration once tried to work out a solution to the
issue by the end of the year but later decided to put off a
conclusion out of consideration for the coalition government. The
U.S. government's irritation at the Hatoyama administration's
flip-flop is understandable.

TOKYO 00002835 005 OF 015

In a public opinion survey by the Asahi Shimbun, more than half of
respondents said that Japan and the U.S. should review the plan on
which they agreed and begin fresh negotiations. The government
should not make light of such a view, which is not the only the view
of the Okinawan people.

Hatoyama has proposed deepening bilateral ties in wide-ranging
areas, including disaster prevention, medical care and education.
This proposal coincides with the Obama administration's policy of
placing emphasis on fighting global warming and promoting nuclear
nonproliferation. Cooperation in the military sector tended to be
the focus of the Japan-U.S. alliance until now, so the Japanese
people should welcome the idea of deepening cooperation in wider
areas.

To nurture this trend with care, it is the prime minister's
responsibility to settle the discord over the Futenma issue as much
as possible. To that end, he should present a "policy" at an early
date.

(4) Editorial: With delay in decision on Futenma, growing
possibility of three crises

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

Prime Minister Yukio Hatoyama is flip-flopping on the issue of
relocating the U.S. Marine Corps' Futenma Air Station in Okinawa.
His inconsistency goes beyond the price to be paid for a change in
government. Foreign Minister Katsuya Okada, Defense Minister Toshimi
Kitazawa, and others are urging the Prime Minister to decide to
confirm the existing Japan-U.S. agreement before the end of the
year. His failure to do so will increase the Hatoyama
administration's chances of facing serious consequences.

It is natural for a review of policies to follow the change of
administration. An international agreement is literally an agreement
between states, not an agreement between administrations. Any
country that reneges on an international agreement after a change of
administration will lose its international credibility. It is time
for Prime Minister Hatoyama to think of the present crises with an
open mind while keeping that point in mind.

First, the very existence of Futenma Air Station in the residential
area in Ginowan is posing a danger, and this situation will continue
on a semi-permanent basis if the Prime Minister fails to make a
decision swiftly. All three parties -- Okinawa Gov. Hirokazu
Nakaima, Nago Mayor Yoshikazu Shimabukuro, and the United States --
support the Japan-U.S. plan.

The foreign and defense ministers take similar positions possibly
because of this political reality. The Prime Minister's
flip-flopping will provoke the ideological anti-base struggle and
might end up making Futenma a permanent fixture in Okinawa.

Second, the Japan-U.S. alliance is in a critical condition and the
impact would go beyond the two countries. In reality, (the bilateral
relationship) has already entered a danger zone. The Prime Minister
said "trust me" during a Japan-U.S. summit in November. Thus far,
his words have been an empty promise.


TOKYO 00002835 006 OF 015


The Prime Minister has repeatedly pointed out the importance of the
relationship of trust between the top leaders of Japan and the
United States. Such a person must know exactly what decision he has
to make. Democratic Party of Japan (DPJ) Secretary General Ichiro
Ozawa will take a trip to China along with over 100 lawmakers with
the Japan-U.S. relationship in such a state. What message does this
send to the international community?

Third, the current situation is a crisis for Prime Minister Hatoyama
as well. His inconsistent stance is likely to raise questions at
home and abroad about his qualifications as the top leader of the
country.

Hatoyama competed with Okada for the DPJ presidency this past May.
Okada has tried to reason with Prime Minister Hatoyama as the
minister responsible for the matter, but his efforts have not paid
off. If this was the Liberal Democratic Party administration era, a
political showdown would occur, imperiling the administration.

If free speech is not suppressed in the DPJ, criticism will sooner
or later come out into the open. If free speech is suppressed, the
criticism will build up like magma.

The three crises could compound into an administrative crisis -- or
a Hatoyama crisis.

With the launch of the Hatoyama administration, we expected change.
The DPJ's manifesto (a set of campaign pledges) does not stipulate
the abrogation of the Japan-U.S. agreement on Futenma. Confirming
the Japan-U.S. agreement should be a natural option for the Prime
Minister, not a change of mind.

(5) Okinawan companies seek U.S. Ambassador Roos's assistance in
sending young people for IT training

OKINAWA TIMES (Page 7) (Full)
December 10, 2009

Business operators of IT companies in Okinawa met with U.S.
Ambassador to Japan John Roos at the official residence of the
Consul General in Okinawa. Seven business executives participated in
this meeting, where they requested cooperation in training projects
in the U.S. The Ambassador reportedly promised to serve as
intermediary with U.S. companies willing to accept trainees.

Roos used to run a law firm of 600 lawyers in Silicon Valley and
serve as counsel to IT companies. He is said to be knowledgeable
about the IT industry. This meeting came about because of a visit by
Consul General Raymond Greene to the Okinawa IT Shinryo Park in
November. During this visit, President Takashi Hiyane of Lexues told
Greene about the "IT frogs" program for sending young people to the
U.S. for training. Greene briefed the Ambassador about the program,
and the Ambassador sounded out (the Okinawan businessmen) about an
exchange of views.

Hiyane said: "We would like to train young people in Silicon Valley.
We would like to request your cooperation to facilitate the sending
of students." Roos reportedly advised them to "take in foreign
capital and step up the expansion of companies."

President Tomoaki Kurita of Index Okinawa remarked that, "We hope to
collaborate with U.S. companies to gain a foothold in the Chinese

TOKYO 00002835 007 OF 015


market."

(6) U.S. Ambassador Roos indicates willingness to cooperate with
sending students to the U.S. for IT training

RYUKYU SHIMPO (Page 4) (Full)
December 10, 2009

It was learned on Dec. 9 that U.S. Ambassador to Japan John Roos,
who was on a visit to Okinawa until Dec. 2, held an informal
exchange of views with Okinawan business operators on programs to
send students to the Silicon Valley in the United States, where the
IT industry is concentrated. The Ambassador was supportive of the
businessmen's efforts to promote these programs and indicated that
he would like to cooperate if there is anything he can do to help.

Representatives of seven companies that have pooled their funds for
the common goal of training entrepreneurs met with the Ambassador.
They were invited by the Ambassador and the meeting took place at
the official residence of the U.S. Consul General in Urasoe City.

Roos, who was a lawyer before becoming the ambassador to Japan, is
known for running a law firm in Silicon Valley with many IT company
clients. At the meeting, he asked enthusiastic questions about the
training programs. He also gave specific advice on the training of
students. The meeting lasted two hours, exceeding the originally
scheduled 90 minutes.

This meeting came about because of a visit by Consul General Raymond
Greene to the Okinawa IT Shinryo Park in Uruma City in early
November. He heard about the training programs from President
Takashi Hiyane of Lexeus, one of the companies involved with these
programs. The Consul General and Okinawa Prefectural Government
officials were also present at the meeting.

During the meeting, the Ambassador praised the efforts of young
business operators who started to send students for training last
year on a voluntary basis. He said: "This is excellent" and advised
them that concrete strategies on entrepreneurship and on-site
training programs are important.

(7) DPJ gives greater importance to China than to the Japan-U.S.
alliance

SANKEI (Pages 1, 3) (Full)
December 4, 2009

At a room in the Ministry of Foreign Affairs (MOFA) where the
meeting of the Japan-U.S. cabinet-level working group on the issue
of the relocation of the U.S. forces' Futenma Air Station was being
held on Dec. 4, the angry voice of U.S. Ambassador to Japan John
Roos reverberated: "How does President Obama explain this to
Congress?" This was after Foreign Minister Katsuya Okada conveyed
Prime Minister Yukio Hatoyama's "decision" to forego reaching a
solution on the issue within 2009.

However, Okada denied flatly that this had happened at a news
conference on Dec. 8.

"The Ambassador asserted his position firmly, but he did not raise
his voice. There are also various opinions on the U.S. side. The
question is how seriously you take them."

TOKYO 00002835 008 OF 015

He did not directly respond to Roos's anger

"Japan hands" lost face

At a symposium held in Tokyo on Dec. 8, former U.S. Deputy Secretary
of State Richard Armitage, a well-known expert on Japan, expressed
his "concern" repeatedly: "We are concerned that an agreement that
took 10 years to conclude may be scrapped." Influential people in
the U.S. who support the Japan-U.S. security alliance have continued
to send out messages in their persistent effort to make the Japanese
government understand the importance of the alliance.

"Does (the Japanese administration) think that the maintenance of
the coalition is more important than the alliance?" "This will hurt
the basic relationship of trust." "The price Japan pays for the
value of the insurance provided by the Japan-U.S. security alliance
is not high."

Yet, such messages do not seem to reach the Hatoyama administration.
Okada even stated at his news conference:

"There are people who think it is desirable to attack the Democratic
Parties both in Japan and the U.S. to cause deterioration in the
bilateral relationship."

The Japan hands have completely lost face in Washington.

Unprecedented size of delegation visiting China

According to one of the top political appointees of a certain
ministry, "China, which the U.S. is most sensitive about, is a
constant factor" behind the behavior of Hatoyama and Democratic
Party of Japan (DPJ) Secretary General Ichiro Ozawa, who is the most
powerful politician in Japan.

MOFA officials are unanimous in their opinion about the major event
taking place in Beijing on Dec. 10: "We have never seen so many Diet
members visiting a foreign country at one time. This is
unprecedented not only for visits to China but is simply unheard
of." They are referring to a joint program under the regular
exchange program between the DPJ and the Communist Party of China
and Ozawa's long-time project the "Great Wall Program" since his
days at the Liberal Democratic Party (LDP).

This year, 143 DPJ Diet members are participating in this program.
The total membership of this delegation going to Beijing in the
severe winter, which includes participants from these Diet members'
support groups and their secretaries, runs to 626.

Some 80 of the 140 "Ozawa children" who were elected for the first
time in the recent House of Representatives election are members of
the delegation, and they will actually be going to China "simply for
sightseeing," according to a DPJ source. Even party members voice
the criticism that "this is slighting the U.S. and leaning
excessively toward China" (a junior Diet member).

This is an indication that the DPJ administration is ignoring the
calls from the U.S. and listening only to China. However, such
behavior is not based on any explicit ideology or policy and merely
reflects a vague Asia-oriented disposition.


TOKYO 00002835 009 OF 015


During this China visit, Ozawa will hold a "top-level meeting" with
President Hu Jintao. However, the delegation itself will be visiting
in a relaxed mood with a purposeless itinerary.

A DPJ leader in the House of Councillors who is a participant in the
delegation says: "After Mr. Ozawa meets with President Hu, 80
percent of the trip is done with. What is left for us to do is to
visit the Great Wall, since that is our purpose."

The group will take photographs with Chinese VIPs at the Great Hall
of the People and participate in the welcome reception of the
All-China Youth Federation on Dec. 10. From Dec. 11, they will
divide into smaller groups and visit various ministries, villages,
and the Great Wall.

Ozawa will move on to Seoul on Dec. 11. He is meeting President Lee
Myung Bak for an informal dinner on Dec. 12.

The "Great Wall Program" has been carried out 17 times. This is an
exchange program that Ozawa inherited from the Keisei-Kai, the
faction he belonged to during his LDP days. Ozawa boasts that he
will "continue this program until he becomes 100 years old." His
aides emphasize: "This is different from LDP Diet members in the
past who visited China for business interests; it is genuine citizen
diplomacy."

However, the visit to China by over 140 Diet members at a time when
the Japan-U.S. relationship is strained has aroused stronger
interest on the U.S. side than Japan had imagined. A U.S. Democratic
Party source remarks: "The U.S. government is taking note of this
because this will reveal Japan stance toward the U.S. and China."

On the other hand, a veteran politician's secretary who has known
Ozawa since his days at the LDP's Tanaka faction explains that the
truth of the matter is quite simple: "Mr. Ozawa wants to show off
his power."

Vacillating values

Hatoyama traveled to Indonesia on Dec. 9 to attend the "Bali
Democracy Forum." What he stated in an interview with the Indonesian
media prior to this trip demonstrates how inscrutable Hatoyama
diplomacy is.

"We treasure the common values of freedom and democracy. Japan and
Indonesia can contribute to Asia and the world as a whole by
becoming strong strategic partners."

However, Hatoyama had said the very opposite at a news conference on
May 15, at the height of the DPJ presidential election campaign.

He strongly negated the "value diplomacy" advocated by former Prime
Minister Taro Aso when he was foreign minister, which gave
importance to cooperation with countries sharing common values, such
as freedom, democracy, and the rule of law.

He said in May: "I dislike value diplomacy. Diplomacy is a process
through which countries with different value systems build a
relationship of coexistence and co-prosperity."

Hatoyama has always vacillated significantly in his statements, so
it is hard to determine how he really feels. However, he often ends

TOKYO 00002835 010 OF 015


up shaking the alliance relationship with the U.S., with which Japan
shares common values, while giving emphasis to friendly relations
with China, which has a political system and values different from
Japan.

More haste, less speed

DPJ Diet Affairs Committee Chairman Kenji Yamaoka, who is also the
head of the delegation visiting China, met with James Zumwalt,
deputy chief of mission of the U.S. Embassy in Japan, at his office
on the second floor of the Diet on Dec. 8.

When Zumwalt demanded a solution to the Futenma relocation issue
before the end of the year, Yamaoka explained the situation of the
three coalition parties and added that, "There is the saying that
the more haste, the less speed. Haste makes waste."

While Yamaoka appeared to be using this expression inadvertently, in
actuality Chinese Premier Wen Jiabao told Hatoyama the same thing on
Oct. 10. When Hatoyama demanded an early start to negotiations on a
treaty regarding the joint development of the Shirakaba gas field
in the East China Sea, which the two sides had agreed upon, Wen also
said: "There is the saying that the more haste, the less speed,"
hinting at the deferring of the issue.

Ozawa has long been an advocate of the theory of an equilateral
triangle consisting of Japan, the U.S., and China with all three
nations keeping equal distance from each other.

In the LDP, although people like former Secretary General Koichi
Kato, a well-known pro-China politician, also embrace the same
theory, this is not the mainstream in that party because it is
widely believed in the LDP that a theory that gives equal importance
to the U.S., which is Japan's only ally, and China, a communist
dictatorship pointing hundreds of ballistic missiles in Japan's
direction, is outrageous.

Yet, "an equilateral triangle consisting of Japan, the U.S., and
China" (in the words of Azuma Koshiishi, chair of the DPJ caucus in
the Upper House) is regarded as a matter of course in the DPJ. This
has given rise to "favoritism" in dealing with China and cold
shouldering the U.S.

The Social Democratic Party (SDP), one of the coalition parties, is
taking advantage of this situation to pressure the administration by
threatening to leave the coalition.

On Dec. 7, SDP Secretary General Yasumasa Shigeno pressed Ozawa to
scrap the Japan-U.S. agreement on the relocation of the Futenma Air
Station to Nago, telling him: "Secretary General Ozawa should speak
up to the administration." When Shigeno persisted, Ozawa repeated
three times: "I will convey the message to the government."

(8) Japan-China joint poll

YOMIURI (Page 15) (Full)
December 8, 2009

Questions & Answers
(Figures shown in percentage)

Q: Do you think Japan-China relations are now in good or bad shape?

TOKYO 00002835 011 OF 015

Japan China
Very good 4 4
Good to a certain degree 41 46
Bad to a certain degree 39 34
Very bad 8 9
No answer (N/A) 8 6

Q: Do you think China (Japan) is trustworthy?

Japan China
Very trustworthy 3 3
Somewhat trustworthy 25 31
Not very trustworthy 46 41
Not trustworthy at all 23 22
N/A 3 3

Q: Do you think Japan-China relations will improve, deteriorate, or
remain unchanged?

Japan China
Improve very much 5 7
Improve to a certain degree 29 46
Remain unchanged 50 31
Deteriorate to a certain degree 10 8
Deteriorate very much 2 3
N/A 4 5

Q: Do you think the positive impact of the Hatoyama government on
Japan-China relations will be greater, or do you think its negative
impact will be greater?

Japan China
Positive impact 29 31
Negative impact 17 12
About the same 41 35
N/A 13 22

Q: In what area do you think Japan and China should cooperate from
now on? Pick as many as you like from among those listed below, if
any.

Japan China
Politics, diplomacy 48 38
Economy 52 50
Security 35 28
Natural resources, energy development 38 31
Science & technology 11 58
Environmental issues 49 43
Epidemic prevention, including new-type flu viruses 14 33
Education, culture 14 46
Other answers (O/A) 0 5
Nothing in particular (NIP) + N/A 6 3

Q: Do you think the positive impact of China's economic growth on
Japan's economy will be greater, or do you think its negative impact
will be greater?

Japan China
Positive impact 29 58
Negative impact 31 10
About the same 34 25

TOKYO 00002835 012 OF 015


N/A 6 7

Q: Do you expect China to display more leadership in order to
resolve the North Korean nuclear issue?

Japan China
Very much 45 44
Somewhat 26 32
Not very much 19 16
Not at all 6 3
N/A 3 5

Q: When comparing China (Japan) with the U.S., which country do you
think will be more important to Japan (China) in the political
aspect?

Japan China
China (Japan) 18 4
U.S. 52 44
Both countries 28 50
N/A 2 2

Q: Then, which country do you think will be more important to Japan
(China) in the economic aspect?

Japan China
China (Japan) 46 6
U.S. 28 52
Both countries 24 41
N/A 2 2


Q: What issue do you think should be resolved on a priority basis
for a better relationship between Japan and China?

Japan China
Gas field co-development in East China Sea 20 20
Intellectual property rights problems, such as copied products 17 6
Historical perception 35 36
Territorial row, such as the Senkaku islets 14 29
O/A 0 3
NIP+N/A 13 7

Q: What do you think China is like? Pick as many as you like from
among those listed below, if any.

Japan China
It's financially wealthy 16 33
Its technological level is high 14 25
It's a growing military power 56 43
It's promoting tradition, culture 24 58
It's protecting the natural environment 3 30
It's a safe place 2 33
O/A 4 13
NIP+N/A 17 2

Q: What do you think Japan is like? Pick as many as you like from
among those listed below, if any.

Japan China
It's financially wealthy 33 60
Its technological level is high 70 60

TOKYO 00002835 013 OF 015


It's a growing military power 3 29
It's promoting tradition, culture 17 29
It's protecting the natural environment 19 38
It's a safe place 39 25
O/A 1 5
NIP+N/A 5 6

(Note) Figures rounded off. The total percentage does not add up to
100 PERCENT . "0" indicates that the figure was less than 0.5
PERCENT .

Polling methodology

Japan
Date of survey: Nov. 14-15.
Subjects of survey: 3,000 persons chosen from among all eligible
voters throughout the country (at 250 locations on a stratified
two-stage random sampling basis).
Method of implementation: Door-to-door visits for face-to-face
interviews.
Number of valid respondents: 1,796 persons (men-48 PERCENT ,
women-52 PERCENT ).

China
Date of survey: Nov. 14-24.
Subjects of survey: Liaowang Dongfang Zhoukang (Oriental Outlook
Weekly) outsourced the survey to Horizon Research. Men and women,
aged 20 and over, were chosen in Beijing, Shanghai, Guangzhou,
Wuhan, Shenyang, Chengdu, Xian, Harbin, Tsingtao, and Changsha.
Method of implementation: Telephone-based interviews
Number of valid respondents: 1,261 persons (men-51 PERCENT ,
women-49 PERCENT ).

(9) Growth for Japan: Promote FTAs and challenge the world

NIKKEI (Page 1) (Excerpts)
December 10, 2009

Survive in trade with Asia

Japanese companies have the geographical advantage of being close to
the growing Asian market, with China right next door. However,
business circles are dissatisfied. This is because business leaders
are limited by the perceived notion that only low-end products,
which Japan is not good at producing, sell in emerging countries.

However, the situation is changing. Komatsu Ltd. will shortly bring
out hybrid-type hydraulic shovels with high fuel efficiency. The
price is 1.5 times higher than the present model. However, Chairman
Masahiro Sakane said, "We have received a surprisingly large number
of inquiries."

In China, the operating time of construction equipment is long. Fuel
costs 3 million yen a year. Expenses for personnel who operate the
machine are about 400,000 yen a year. Needs for saving fuel costs
are much bigger than in Japan. Komatsu estimates to sell 500 to
China of 700 units expected to be sold in the current fiscal year.

Many Japanese companies depend on emerging markets. The share of
Suzuki, which is strong in compact cars, on the Indian market is
close to 50 percent. The Yukio Hatoyama administration advocates
domestic demand-led economic growth. However, is it possible to draw

TOKYO 00002835 014 OF 015


up a plan for ending the economic stagnation with domestic demand
alone? Given the structural changes occurring in the world, it would
be natural to assume that the engine of growth is external demand
centered on emerging economies, although domestic demand is also
important.

What the administration should address is promoting free trade
agreements (FTA). If the government proactively presses ahead with
FTAs, the image of Hatoyama's Initiative for an East Asian Community
would come into sight. If it clarifies its intention to build an
economic zone, companies could decide to go global, looking toward
the future.

However, Japan has signed FTAs only with countries like Singapore,
which would not demand liberalization of agricultural products. It
must generate momentum in FTA talks with Australia or India. It also
must look into such possibilities with China. The DPJ incorporated
an FTA with the U.S. in its policy pledges. The promotion of the
FTAs will serve to improve flagging relations with the U.S.

If Japan concludes more FTAs, it would inevitably impact the
agricultural sector. The government must devise measures for farmers
to survive. The DPJ's income compensation system for farmers is a
system intended to alleviate farming households' worsening business
conditions.

It is not wise to hold back liberalization for the purpose of
protecting weak industries and keep promising industries from
growing or advancing overseas. It is not until the Japanese economy
becomes strong that funding resources for redistribution to bail out
weak industries or individuals can be generated.

Secure external demand through joint efforts by government and
private sector

The proportion of exports in the real GDP rose to 17 percent in
2008. However, the figure is still lower than that of Germany,
China, or South Korea, where such a proportion is close to 40
percent. The latest figure has dropped to 13 percent due to the
financial crunch. The government could come up with a goal of making
the proportion over 20 percent.

There are many challenges the government can tackle. Japan's
Shinkansen bullet train is receiving high praise. However, Japan
cannot beat rival nations, such as Germany and France, which engage
in joint efforts by the government and the private sector in selling
their products. They can work together in securing natural
resources. The government can spearhead the drive in the
environmental technology area.

As a nation whose decline in birthrate and the aging society are
advancing at the fastest speed in the world, it is difficult to
expect the market to expand. A shortage in demand cannot be covered
with domestic demand alone. It is not possible to envisage a growth
track without external demand. Unless the nation earns foreign
currency, it would lose power to purchase resources or food.

It is very fortunate that Japan is located in the corner of Asia,
which is in a growth phase. However, if it does nothing, it will
lose opportunities. Japan does not have the option of putting off
its advancement into the Asian market.


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ROOS

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