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Cablegate: Daily Summary of Japanese Press 12/14/09-2

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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 12/14/09-2

INDEX:

(22) DM Kitazawa: PM Hatoyama thinking of new Futenma relocation
plan (Nikkei)

(23) PNP policy chief Shimoji gets impression U.S. poised to make
proposals to reduce Okinawa's burden significantly, urges early
solution on Futenma relocation (Sankei)

(24) Conclusion to Futenma relocation issue by Upper House election;
three ruling parties making final adjustments to map out government
policy by Dec. 15 (Okinawa Times)

(25) U.S. government proposes to move part of Futenma training
program to Higashi Fuji on condition of Japan agreeing to existing
plan (Ryukyu Shimpo)

(26) Prime Minister: We have not received a formal request (Ryukyu
Shimpo)

(27) Proposal to postpone Futenma solution by five months emerges in
the cabinet (Yomiuri)

(28) U.S. proposals for reducing Okinawa's burden meant to put
pressure on Japan on Futenma relocation negotiations (Ryukyu Shimpo)


(29) Ozawa power: Largest-ever delegation consisting of 640
participants, including about 140 DPJ lawmakers (Asahi)

(30) PM Hatoyama requests making an exception for PRC Vice President
Xi Jinping's audience with Emperor (Asahi)

(31) Editorial: The Emperor and China's vice president: Arbitrary
setting of meeting could lead to future trouble (Sankei)

(32) Ozawa apologizes for Japan's colonial rule of South Korea,
calling it unfortunate period (Tokyo Shimbun)

(33) Poll: 63 PERCENT feel kinship with S. Korea (Yomiuri)

(34) Prime Minister Hatoyama's words lack weight and put him into a
difficult situation (Nikkei)

(35) Japan, U.S. agree to liberalize aviation markets (Nikkei)

(36) Japanese company acquires right to develop oil field in Iraq
(Tokyo Shimbun)

(37) Editorial: President Obama's Nobel Peace Prize acceptance
speech (Sankei)

(38) Editorial: President Obama should produce actual results to
live up to honor of Nobel Peace Prize (Mainichi)

(39) Political Cartoons (Asahi, Tokyo Shimbun)

ARTICLES:

(22) DM Kitazawa: PM Hatoyama thinking of new Futenma relocation
plan


TOKYO 00002860 002 OF 016


NIKKEI (Page 2) (Full)
December 13, 2009

Defense Minister Toshimi Kitazawa stated at a party held on Dec. 12
to celebrate his appointment as cabinet minister in Nagano City that
with regard to the relocation of the U.S. forces' Futenma Air
Station, "the Prime Minister is probably aiming at drawing up a new
plan that will respect the Okinawan people's wish not to build (a
military base) in Henoko as agreed upon between Japan and the U.S."
This statement indicates that Prime Minister Yukio Hatoyama is
considering a new relocation site other than the coastal area of
Camp Schwab. The above was revealed by a participant in the party.

Kitazawa reportedly also indicated that the relocation of the
Futenma base to the coastal area of Camp Schwab under the current
plan will be difficult in light of the political situation in
Okinawa.

(23) PNP policy chief Shimoji gets impression U.S. poised to make
proposals to reduce Okinawa's burden significantly, urges early
solution on Futenma relocation

SANKEI ONLINE (Full)
14:01, December 14, 2009

People's New Party (PNP) policy chief Mikio Shimoji met with Defense
Minister Toshimi Kitazawa at the Ministry of Defense at noon on Dec.
14 to report to him the discussions with the U.S. side on the
relocation of the U.S. forces' Futenma Air Station (in Ginowan City,
Okinawa) and other issues during his recent trip to the U.S. Shimoji
conveyed his impression that "postponement (of the decision) will
bring about a rift in the Japan-U.S. relationship of trust, so a
decision should be made at an early date." Kitazawa reportedly
responded with: "We will make various proposals and let Prime
Minister Yukio Hatoyama decide."

After the meeting, Shimoji told reporters: "I had the impression
that the U.S. is poised to make proposals to reduce the burden (on
Okinawa) significantly."

Shimoji met with U.S. Assistant Secretary of State (for East Asian
and Pacific Affairs) Kurt Campbell and other officials in
Washington. The U.S. side indicated that if Japan agrees to the
relocation of the Futenma base to the coastal area of Camp Schwab
(in Nago City) under the existing Japan-U.S. agreement, it will take
measures to reduce the burden on Okinawa. It is asking the Japanese
government to make a decision by Dec. 18.

(24) Conclusion to Futenma relocation issue by Upper House election;
three ruling parties making final adjustments to map out government
policy by Dec. 15

OKINAWA TIMES (Page 1) (Full)
December 13, 2009

Naka Yoshida

Tokyo

The government/ruling coalition has began making final arrangements
to hold on Dec. 15 a basic policy cabinet meeting at the level of
the heads of the three ruling parties to map out the government's

TOKYO 00002860 003 OF 016


policy on the issue of relocating the U.S. Marine Corps' Futenma Air
Station, according to a government source on Dec. 12. The government
will set up a study group (working team) composed of working-level
members of the three parties to look into new possible relocation
sites without determining a relocation site at present. The
government will aim at an early conclusion - before the House of
Councillors election next summer. With the team likely to reach an
agreement to include funds connected with the Henoko relocation plan
in the fiscal 2010 state budget, the government will not give up on
the existing (Henoko relocation) plan. The three parties will study
concrete amounts.

In deference to the United States, the working team will not call
off the ongoing environmental impact assessment that is premised on
the existing relocation plan.

Although the U.S. side is calling for the early implementation of
the existing plan, the government will give up on making a decision
before year's end in view of growing expectations in Okinawa for
relocation out of the prefecture and of the likelihood that, if the
government decides to implement the existing plan, the Social
Democratic Party will leave the coalition government, making it
difficult to run the administration.

The government source also indicated that there is a possibility
that Tokyo will return to the existing plan in the event the
three-party working team tasked with studying new sites fails to
reach a conclusion.

Since Dec. 7, Prime Minister Yukio Hatoyama has discussed the
government's response with Chief Cabinet Secretary Hirofumi Hirano,
Foreign Minister Katsuya Okada, Defense Minister Toshimi Kitazawa,
and Minister for Okinawa Seiji Maehara.

Some in the government/ruling coalition are also looking into ways
to disperse the functions of the Futenma base, such as building on
the land portion of Camp Schwab helipads for relocating Futenma's
helicopter unit there, and relocating fixed-wing aircraft- training
to Kadena Air Base and Kansai Airport.

(25) U.S. government proposes to move part of Futenma training
program to Higashi Fuji on condition of Japan agreeing to existing
plan

RYUKYU SHIMPO (Page 1) (Full)
December 13, 2009

Tokyo

The U.S. government has mapped out "measures to reduce the burden on
Okinawa" including a plan to shift part of Futenma Air Station
helicopter and ground units' exercises to the Higashi Fuji Training
Area in the event the Hatoyama administration accepts the Japan-U.S.
agreement to relocate Futenma to the Henoko district in Nago, it was
learned on Dec. 12. Washington also presented a plan to include an
environmental clause in the Japan-U.S. Status of Forces Agreement
(SOFA) in compliance with Okinawa's request. Washington also urged
Tokyo to decide its policy by Dec. 18, the deadline for submission
of requests for the U.S. fiscal 2011 budget. Washington also
suggested it might forgo earmarking spending for a Guam relocation
plan in the fiscal 2011 budget if Tokyo does not agree to the
existing plan.

TOKYO 00002860 004 OF 016

Japan urged to make decision by Dec. 18

U.S. Assistant Secretary of State Kurt Campbell and others conveyed
this policy to Mikio Shimoji, the policy research committee head of
the People's New Party (PNP), who is visiting the United States.

Shimoji will inform Prime Minister Yukio Hatoyama of the U.S. side's
views early next week, saying that he visited the United States
after making arrangements with the prime minister's office (Kantei).
According to Shimoji, the U.S. side expressed at the Dec. 4
Japan-U.S. ministerial-level working group meeting its readiness to
move some training programs from Futenma to another U.S. base as a
means to reduce the burden on Okinawa.

The Japanese government plans to discuss the government's response
at meetings of the Ministerial Council on Basic Policies of the
three ruling parties starting nearly next week. "The time has come
to decide whether to abandon the Henoko plan before making new
proposals," Shimoji said after the talks.

Specifically, the U.S. side presented a plan to move part of Futenma
helicopter and Marines ground unit exercises from Okinawa to the
Higashi Fuji Training Area, which is being jointly used by Japan and
the United States. The U.S. side stopped short of presenting any
timeline or the size of the relocation.

Shimoji is exploring ways to move the fighter training program from
Kadena Air Base to Kansai Airport in Osaka. Shimoji said that the
U.S. side showed an interest in such an idea, saying, "If there is a
concrete plan to use Kansai Airport, we will consider it
positively."

To the U.S. side, which calls for the early implementation of the
existing plan, Shimoji explained the complex Japanese political
situation, including the fact that the current coalition government
is composed of the Democratic Party of Japan, the Social Democratic
Party, and the PNP, and that the Okinawa gubernatorial election will
be held next fall.

The talks were held at the State Department attended by Principal
Deputy Assistant of State Joseph Donovan and State Department Office
of Japanese Affairs Director Kevin Maher, in addition to Campbell.

(26) Prime Minister: We have not received a formal request

RYUKYU SHIMPO (Page 1) (Full)
December 13, 2009

The U.S. government has reportedly urged Japan to make a decision by
Dec. 18 on the issue of relocating the U.S. Marine Corps' Futenma
Air Station. Asked by the press about his view on such a report in
Tokyo on Dec. 12, Prime Minister Yukio Hatoyama indicated that the
government will confirm the facts, saying, "We have not received
such a request directly from the United States." On the Japanese
government's policy, he also said: "We are finalizing our policy. We
haven't received such a proposal formally from the U.S. government,
so I cannot comment any further."

The Prime Minister added: "The government has yet to be briefed on
what Mr. (Mikio) Shimoji discussed. We will study the U.S.
government's ideas conveyed via Mr. Shimoji, including the facts."

TOKYO 00002860 005 OF 016

(27) Proposal to postpone Futenma solution by five months emerges in
the cabinet

YOMIURI (Top play) (Full)
Evening, December 14, 2009

A proposal to postpone a solution to the issue of the relocation of
the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa) to
after the FY2010 budget and other bills are enacted has emerged in
the cabinet.

People's New Party (PNP) leader Shizuka Kamei met with PNP policy
chief Mikio Shimoji, who just returned from a trip to the U.S., on
the Futenma issue at a hotel in Tokyo on the evening of Dec. 13.
According to Shimoji, Kamei told him at the meeting that the prime
minister's office (Kantei) is considering delaying the government's
decision by around five months. The Prime Minister himself has
mentioned making a decision sometime between the mayoral election in
Nago, the location of the Futenma relocation site, Camp Schwab,
under the current relocation plan, in January and the Okinawa
gubernatorial election to be held before the incumbent governor's
term expires in December 2010. There is also an opinion in the
government and the ruling parties that making a decision after the
FY10 budget and the related bills are enacted will minimize the
impact on the steering of the administration.

Meanwhile, Parliamentary Secretary of Defense Akihisa Nagashima also
stressed during a Fuji TV program on Dec. 13: "The two new
administrations should first discuss the role of the Japan-U.S.
security alliance in the East Asian strategic situation. They can
move on to discuss specific bases in the end. This is not something
that can be resolved in a week or two."

However, other government and ruling party officials favor an early
response because the U.S. government has asked at the meeting with
Shimoji, for example, for a decision by Dec. 18. In this connection,
Kamei invited Social Democratic Party (SDP) leader Consumer Affairs
Minister Mizuho Fukushima to meet on Dec. 14, but Fukushima is
reluctant to meet since the SDP's policy of seeking Futenma's
relocation out of Okinawa or out of Japan remains unchanged.

Prime Minister Yukio Hatoyama is expected to meet with Chief Cabinet
Secretary Hirofumi Hirano, Foreign Minister Katsuya Okada, Defense
Minister Toshimi Kitazawa, and Okinawa Affairs Minister Seiji
Maehara on Dec. 14. He told reporters in front of his official
residential quarters in the morning that "the government will make a
decision shortly. This will change depending on the U.S.'s response
(at discussions with the U.S. side from now). Various solutions are
conceivable." Hatoyama also met with Japanese Communist Party
Chairman Kazuo Shii at the Diet in the morning. Shii demanded the
immediate closure and unconditional withdrawal of the Futenma base.
Hatoyama said: "The Japan-U.S. agreement is also important. I am
agonizing over how to resolve this issue."

(28) U.S. proposals for reducing Okinawa's burden meant to put
pressure on Japan on Futenma relocation negotiations

RYUKYU SHIMPO (Page 2) (Full)
December 13, 2009

Takumi Takimoto

TOKYO 00002860 006 OF 016

The U.S. government, having been forced into a corner in the
negotiations on the relocation of the U.S. forces' Futenma Air
Station, has made new proposals for reducing Okinawa's burden.
Meanwhile, the Japanese side has agreed to hold renewed
consultations among the three ruling parties, and the Ministerial
Committee on Basic Policies will begin deliberations early next
week. With the U.S. now making concessions, the focus of attention
is on Prime Minister Yukio Hatoyama's decision.

At a room in the U.S. State Department in Washington on Dec. 11,
People's New Party (PNP) policy chief Mikio Shimoji told Assistant
Secretary of State Kurt Campbell and other U.S. officials: "If the
U.S. government is unable to take the responsibility (for the
consequences), why is it saying 'relocate to Henoko'? The one who
says 'do it' also bears responsibility." In a strong tone he pointed
out how difficult it is to relocate the Futenma base to Henoko in
Nago City, which the U.S. side is pushing for.

The meeting between Shimoji and Campbell and other U.S. officials
around lunch time lasted over two hours and 30 minutes. According to
an informed source, Campbell had planned to cancel the meeting with
Shimoji, but Kevin Maher, State Department Japan desk director, told
him, "You should definitely meet him," so the meeting was set up. It
is also evident that the U.S. side wanted to put pressure on the
Japanese side through a channel other than the official Japan-U.S.
working group.

Normally, this would have been a meeting over lunch, but because
there was "heated argument" throughout, not even coffee was served.
Toward the end of the meeting, Shimoji even said sarcastically: "Has
America run out of coffee?"

The U.S. side asked that Japan come up with a conclusion by Dec. 18,
when the U.S. budget request process for FY2010 is scheduled to be
completed, saying: "It will be difficult to make budget allocations
after Dec. 18." They also reiterated that "if Henoko relocation is
not implemented, bases south of Kadena will not be returned and
there will be no relocation (of Marines in Okinawa) to Guam."

Even at this stage, the U.S. government was taking an "intimidating"
stance. However, the construction of the military base in Guam is
partly being undertaken to meet the U.S. forces' needs. It appears
that the U.S. government, which needs to explain the budget requests
for Guam to Congress, will be caught in a serious dilemma between
Congress and uncompliant Hatoyama in Japan.

About four hours before the meeting in Washington took place, the
three leaders of the ruling coalition parties of the Hatoyama
administration met at a Japanese restaurant in Roppongi, Tokyo.
During the dinner that lasted about two hours and 30 minutes, Social
Democratic Party (SDP) leader Mizuho Fukushima handed the documents
she prepared to Hatoyama and PNP leader Shizuka Kamei. These
documents, including reports on the dugong lawsuit in the U.S., were
meant to show how unfeasible relocation to Henoko is.

Fukushima appeared to be relieved after the meeting. She told
reporters: "I am glad that the three of us agreed on pooling our
wisdom and continuing discussions among the three parties." When
asked if relocation sites other than Henoko will be considered, she
was momentarily at a loss for a response before stating: "Well, we
are looking at all the options," thus implying that Henoko has not

TOKYO 00002860 007 OF 016


been ruled out.

The three party leaders' meeting confirmed that the solution to the
Futenma relocation issue will not be decided by the cabinet alone
and that the SDP and the PNP will be involved. The Hatoyama cabinet
is back to the starting line at the time when the administration was
launched. Discussions at the Ministerial Committee on Basic Policies
early next week will hold the key to this issue.

(29) Ozawa power: Largest-ever delegation consisting of 640
participants, including about 140 DPJ lawmakers

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

Shuichi Honda, Tetsuya Watanabe and Koichi Furuya (Beijing)

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa
arrived in China along with some 140 DPJ lawmakers on Dec. 10. The
number of delegation members, was the highest ever at 600, including
private citizens. Domestic views of the influence-yielding Ozawa are
split. However, China welcomed Ozawa with open arms.

Ozawa told President Hu, "I am the commander": Critics say he's
flaunting his influence

The delegation includes 143 DPJ lawmakers, which is about one-third
of all DPJ Diet members. Adding the supporters of each lawmaker that
participated in the trip, there are 640 people in the delegation.
The number of participants is about 200 more than that of the
previous delegation. Participants flew to Beijing on five planes
departing from Haneda, Narita, and Kansai. Seventeen buses were
waiting for them. Participants, who paid about 200,000 yen in
traveling expenses out of their own pockets, will, with the
exception of a meeting with President Hu, will spend their time
visiting places of historic interest and scenic beauty.

The large delegation reflects Ozawa's great influence in the party.
Of the 143 first-term lawmakers, 79, or about 40 percent, took part
in the delegation.

Before entering into talks with Hu, Ozawa introduced the lawmakers
accompanying him: "More than half of them are first-term lawmakers.
They have become legislators by securing around 100,000 votes each."
Hu shook hands with every participant.

Even with a grand delegation in tow, Ozawa still did not seem
satisfied. During the talks he expressed his eagerness to fight in
the Upper House election next summer, even saying: "I will recruit
candidates and train them. I will aim for victory." He then said, "I
will leave the administration to Prime Minister Hatoyama." Calling
himself the commander in chief of the field army, Ozawa spoke of his
aspiration: "I want to devote myself to that role (until the Upper
House election is over)."

As such, many lawmakers participated in the delegation not to
participate in Japan-China exchange but to get to know Ozawa. One
first-term lawmaker said: "I have never spoken with Mr. Ozawa. This
is a good opportunity to get to know him as a person." A junior
lawmaker who decided not to participate, giving priority to
activities in his constituency, was teased by a lawmaker of other
party, who said, "Are you all right? You've got guts."

TOKYO 00002860 008 OF 016

There are also more aloof attitudes circulating both inside and
outside the party. The same junior lawmaker who did not participate
lamented, "Mr. Ozawa never forced us to join the delegation, but
there is still an atmosphere that makes us think that it would be
unwise not to."

China welcomes Ozawa with eye on his influence

The Chinese side welcomed Ozawa. After President Hu met with him,
First Secretary Lu Hao of the Chinese Communist Youth League, an
organization that trains young elites, where Hu also served in the
top post, met him. China also invited all the delegation
participants to a welcome dinner party held at the Great Hall of the
People.

During the talks, Hu brought up the change in government in Japan.
According to those at the meeting, Hu said: "China and Japan were
able to deepen their relations even though the DPJ assumed power.
The DPJ has survived the transition period after the change in the
government." He thus declared that China will continue its present
relations with Japan, despite the shift in power.

China has promptly responded to the "political leadership" advocated
by the Hatoyama administration. It thinks that under the new
administration, it would be quicker to approach influential
politicians directly instead of using the Foreign Ministry's
diplomatic channel. It thinks that Ozawa is the most influential
person.

Chinese Foreign Minister Yang Jiechi, who met with Ozawa in the Diet
building while in Japan on Nov. 20, brought up a free trade
agreement (FTA) between the two countries.

Yang: "I would like Secretary General Ozawa to exercise his
influence to have the Japanese government promote research on an
FTA."

Ozawa: "We must persuade people in various domestic industry
circles."

Shanghai Institute for International Studies Academic Committee
Deputy Director Wu Jinan pointed out, "Mr. Ozawa's philosophies are
the mainstay of the DPJ administration's foreign affairs and
security policies."

Ozawa might find such a stance of the Chinese side advantageous. His
pet argument since 1993, the year when he published "Blueprint for
Japan," is to serve as a bridge between the West and Asia." He
stresses that relations between Japan and the U.S, and relations
between Japan and China should be equal. This stance has also been
expressed in a statement he made regarding the U.S., Japan's ally.
He said that the Seventh Fleet will suffice as the U.S. presence in
the Far East."

The Hatoyama cabinet has complicated Japan's relations with the U.S.
over the relocation of the U.S. Marine Corp's Futenma Air Station.
On the 10th, when Ozawa arrived in Beijing, Prime Minister Yukio
Hatoyama was in Bali, Indonesia. He remained indecisive over the
Futenma issue, saying, "Before the end of the year I would like to
decide on the policy I will take." The schism in Japan-U.S.
relations is widening under the Hatoyama administration. Ozawa, who

TOKYO 00002860 009 OF 016


has launched party diplomacy by leading the delegation, sent a tacit
message to audiences both at home and abroad, stressing that Japan
and China are becoming closer.

Emerging from the talks with Hu, Ozawa told reporters, "I am not
here to discuss political issues." However, he did not forget to
boast about the length and depth of Japan-China exchanges he has
pursued. He said: "Chinese leaders and government officials have
always responded to me in a serious and appropriate manner. That was
true ever since I was an opposition party member even before joining
the DPJ."

(30) PM Hatoyama requests making an exception for PRC Vice President
Xi Jinping's audience with Emperor

ASAHI (Top play) (Excerpts)
December 12, 2009

Foreign Minister Katsuya Okada announced at a news conference on
Dec. 11 that Chinese Vice President Xi Jinping will meet with the
Emperor on the morning of Dec. 15. The Imperial Household Agency
(IHA) had asked the Ministry of Foreign Affairs (MOFA) to submit
requests for audiences with foreign dignitaries at least one month
in advance out of consideration for the burden on the Emperor's
health and fairness among foreign countries, but MOFA first made its
request on Nov. 26, less than one month before the proposed meeting.
The prime minister's office (Kantei) reportedly made a strong
request to the IHA again on Dec. 7 and 10, saying that this was "by
the Prime Minister's order, in consideration of the importance of
the Japan-China relationship." IHA Grand Steward Shingo Haketa
assembled members of the media hastily on the afternoon of Dec. 11
to explain what happened. He expressed concern, since this is an
issue bearing on the Emperor's role as the symbol of the nation
under the Constitution.

(Commentary by reporter Hiroki Arima)

The Hatoyama cabinet has broken the convention followed by the IHA
on the Emperor's audience with foreign guests. This may not be a
problem from the standpoint of "breaking away from reliance on
bureaucrats," but changing a convention followed over the years to
prevent "using the Emperor for political purposes" may lead to a
serious degeneration of the Imperial System. Therefore, this issue
needs to be handled more cautiously and rigorously.

Since its inauguration, the Hatoyama cabinet has reviewed the
postwar political rules in its attempt to promote political
leadership. The "one-month rule" mentioned by Grand Steward Haketa,
which is an agreement between MOFA and the IHA, will probably also
become a subject of review.

However, past administrations have exercised strict self-restraint
with regard to Emperor's words and actions based on lessons learned
from the prewar period. The one-month rule is part of such efforts.
The deputy chief cabinet secretary, a former bureaucrat,
traditionally mediates the coordination process between the Kantei
and the IHA on scheduling, serving as a "filter." If Hatoyama
intends to step into an area that has been entrusted to the IHA in
the past, he has to explain the basis of this decision and formulate
new transparent and fair rules.

It is questionable why Hatoyama was late in making his request. If

TOKYO 00002860 010 OF 016


this was in consideration of Democratic Party of Japan Secretary
General Ichiro Ozawa and other officials who were about to embark on
a visit to China, it is an action that could embroil the Emperor in
politics. Inasmuch as the cabinet takes responsibility for the
Emperor's official acts, it has an obligation to give a clear
explanation.

(31) Editorial: The Emperor and China's vice president: Arbitrary
setting of meeting could lead to future trouble

SANKEI (Page 2) (Full)
December 12, 2009

The government has announced that Chinese Vice President Xi Jinping
is arriving in Japan on Dec. 14 and will have an audience with the
Emperor on Dec. 15.

It was revealed that normal procedures were not followed in handling
the Chinese side's request for an audience and the meeting was set
up through an order from Prime Minister Yukio Hatoyama to the
Imperial Household Agency to arrange for this meeting. This could be
considered a case of using (the Emperor) for political purposes and
may lead to trouble in the future.

The existing rule is that written requests for the Emperor to meet
with foreign dignitaries need to be submitted at least one month in
advance. However, the Chinese side made its request in late
November, which was less than one month before the proposed meeting.
Therefore, the Ministry of Foreign Affairs first informed the
Chinese side that its request for an audience with the Emperor had
been rejected. This was the reasonable thing to do for a sovereign
country.

However, the Chinese side was not satisfied with the answer, so it
repeated its request for an audience with the Emperor, on the ground
that the meeting is "critical for the success of Vice President Xi's
visit to Japan." Democratic Party of Japan Secretary General Ichiro
Ozawa urged Prime Minister Hatoyama to try to set up the meeting, so
the Prime Minister ordered Chief Cabinet Secretary Hirofumi Hirano
to look into the possibility of arranging the meeting.

Needless to say, the Chinese request was unreasonable. The mediation
efforts by Mr. Ozawa and Prime Minister Hatoyama were also very
questionable.

The one-month rule is for the sake of smooth coordination of the
Emperor's hectic schedule. So far, the rule has been followed
strictly and exceptions have only been made for meetings with
foreign ambassadors in Tokyo leaving Japan in haste. While Mr. Xi is
considered a likely successor to President Hu Jintao, that should
not be a reason for making an exception.

The Emperor is the symbol of the state and the unity of the Japanese
people under the Constitution. The government should strictly
refrain from using him for political purposes. Yet, it is possible
that the forthcoming meeting arranged for the Emperor and the
Chinese vice president will be used for political purposes and
one-sided propaganda.

The Emperor visited China in October 1992, three years after the
Tiananmen Incident. This was at a time when China was under harsh
criticism from the Western countries. The Miyazawa cabinet at that

TOKYO 00002860 011 OF 016


time almost forcibly pushed for this visit despite the opposition of
a majority of the people.

Consequently, the Emperor's visit to China led to the relaxation of
the Western countries' sanctions on China. It is clear from the
memoirs of the Chinese foreign minister at that time that the visit
was used for political purposes.

The Hatoyama cabinet's disregard of existing rules in granting
China's request sends out the message that "if you push hard, Japan
will agree" to the Chinese side. This weakness may be taken
advantage of in future negotiations with China. Blatant "dual
diplomacy" is also questionable. We urge the Hatoyama cabinet to
reconsider.

(32) Ozawa apologizes for Japan's colonial rule of South Korea,
calling it unfortunate period

TOKYO SHIMBUN (Page 2) (Full)
Evening, December 12, 2009

Eiji Tsukiyama, Seoul

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa, now
visiting South Korea, on the morning of Dec. 12 delivered a speech
at Kookmin University in Seoul. During the speech to about 200
students he apologized for Japan's colonial rule (of the Korean
Peninsula) for 36 years. He told the audience that he wants young
people to create a new age.

Ozawa said: "There was an unfortunate period for our country and
your country in modern history. It is a historical fact, for which
Japan and the Japanese people must apologize."

He continued: "However, if we just continue to say this, it will do
the future of our two countries no good. I believe that you, young
people, are aware that it is necessary to surmount past problems and
work together for friendly and amicable bilateral relations." He
also said, "Japan must proactively formulate a plan for peace and
stabilization of Northeast Asia."

Ozawa then referred to his visit to China, his previous stop. Noting
that the Northeast Asian region, including the Korean Peninsula, is
unstable, he said, "We must make the region stable and peaceful
through a relationship of trust among Japan, China, and South
Korea."

(33) Poll: 63 PERCENT feel kinship with S. Korea

YOMIURI (Page 4) (Full)
December 13, 2009

The Cabinet Office yesterday released the results of its public
opinion survey on foreign relations. In the survey, the proportion
of those who answered that they feel friendly toward South Korea
reached an all-time high of 63.1 PERCENT , up 6 percentage points
from the last survey conducted in 2008. In addition, the proportion
of those who think bilateral relations between Japan and South Korea
are in good shape was also at an all-time high of 66.5 PERCENT .

(34) Prime Minister Hatoyama's words lack weight and put him into a
difficult situation

TOKYO 00002860 012 OF 016

NIKKEI (Page 2) (Full)
November 11, 2009

Jun Iiyama, Bali

Prime Minister Yukio Hatoyama has been suffering as a result of his
own past remarks. He mentioned a plan to hold a Japan-U.S. summit
meeting in connection with the issue of relocating the U.S. Marine
Corps' Futenma Station in Okinawa, the most pressing issue between
Japan and the Unites States, but the U.S. side has not paid any
attention to Hatoyama's idea. Therefore, his plan has been put on
hold. With regard to his alleged falsified donation scandal, as
well, Hatoyama's explanations have become untenable. He has
basically withdrawn the goal of capping the new issuance of
government bonds in the fiscal 2010 budget at 44 trillion yen. The
Prime Minister has been causing problems for himself with his own
"reckless statements."

Growing sense of distrust

Yesterday in Bali, Indonesia, Hatoyama said, "Since considerable
time will be spent on extensive discussions on climate change, it
will be difficult to hold a meeting." He admitted that it would be
difficult to realize his previous plan to meet with U.S. President
Barack Obama on the sidelines of the summit meeting of the 15th
Conference of Parties to the UN Framework Convention on Climate
Change (COP15). Just three days ago he told the press corps about
his intention to convey the government policy regarding the Futenma
relocation base to the President. However, he later corrected his
remarks, saying, "I will decide on a policy before the end of the
year." The U.S. side has grown increasingly distrustful of Hatoyama.
In the meeting in November, Hatoyama said to Obama, "I want you to
trust me." But he keeps going back and forth. Even in the
government, some people are voicing criticism, with one official
remarking: "Anyone would wonder what that statement was supposed to
mean." Also a ruling party lawmaker went so far as to say, "This
means that (Hatoyama) compared the U.S. and the Social Democratic
Party (SDP), and he chose the SDP."

Hatoyama mentioned the summit meeting plan without carrying out
coordination through diplomatic channels. The U.S. side, however,
announced that discussion at the ministerial-level working group
would be preferable, rejecting Hatoyama's plan. U.S. Ambassador John
Roos, a member of the working group, called on Foreign Minister
Katsuya Okada at the ministry on Dec. 7 and again on the 10th. Chief
Cabinet Secretary Hirofumi Hirano has been desperately trying to put
an end to speculation that Futenma relocation has gone back to the
drawing board, presenting the outlook that the government will make
a decision after COP15.

Frequent discrepancies in the views voiced by cabinet ministers have
also been noticeable. Defense Minister Toshimi Kitazawa visited
Guam, which the SDP has proposed as a relocation site for Futenma.
While he was there, he said, "(Guam) is not on the
government-to-government negotiating table, and such a direction has
not been decided in Japan either." Since his comment incited a
backlash from the SDP, Hirano cautioned Kitazawa over the phone.

(35) Japan, U.S. agree to liberalize aviation markets

NIKKEI (Top Play) (Excerpts)

TOKYO 00002860 013 OF 016


Evening, December 12, 2009

Masakuni Oshirabe, Washington

The governments of Japan and the U.S. agreed in aviation talks in
Washington on Dec. 11 to conclude an open skies accord to give their
airlines freedom in setting routes and the number of flights in
principle. Once this agreement takes effect, the civil aviation
markets of the two countries will be revitalized, and more
convenient services and lower airfares can be expected. The pact
could also enable Japanese and U.S. airline companies to strengthen
their partnerships. The pact is expected to come into effect by next
fall.

The meetings between Japan and the U.S. this time were working-level
talks, and the agreement still needs to be finalized by the
transport ministers of the two countries. At present, three airline
companies, including Japan Airlines and United Airlines, from each
of the two countries are allowed to set routes and other details
without any restrictions in principle, but the new pact will give
all airlines freedom.

Key points in Japan-U.S. agreement on liberalizing civil aviation
markets

Q Japan and the U.S. agreed in effect to conclude an open skies
accord to give their airlines freedom in setting routes and the
number of flights in principle.
Q Make it possible to initiate procedures to place (airline
alliances) outside the reach of the U.S. Antimonopoly Act.
Q Give Japanese and U.S. air carriers landing and departure slots
for four round trips daily late at night and early in the morning
between U.S. cities and Haneda airport, to which slots for more
international flights will be added following the opening of the new
runway.
Q Reduce the 28 PERCENT share U.S. carriers hold over the slots at
Narita International Airport.

(36) Japanese company acquires right to develop oil field in Iraq

TOKYO SHIMBUN (Top play) (Excerpts)
December 13, 2009

Yasushi Uchida, Cairo

The second round of open competitive bidding for the development of
Iraq's huge oil fields and gas fields took place in Bagdad on Dec.
12, following the first round held on the previous day. The
consortium formed by Japan Petroleum Exploration (JAPEX) and
Petronas, Malaysia's state-run oil company, successfully won the
right to develop the Gharraf oil field in Southern Iraq. This is the
first time for a Japanese company to win the right to develop an oil
field in Iraq.

Amid competition to secure natural resources becoming fierce due to
the rise of emerging countries, such as China and India, Japan has
won a bid to develop a valuable "rising sun oil field," in Iraq,
which has 115 billion barrels of confirmed crude oil reserves - the
third largest amount in the world.

The Gharraf oil field, located about 300 kilometers southeast of
Baghdad, has roughly 860 million barrels of confirmed oil reserves.

TOKYO 00002860 014 OF 016

According to the Japanese Embassy in Baghdad, the Japanese side's
share of the development right is 40 percent, and that of Malaysia
is 60 percent. The current production capacity of the Gharraf oil
field is 140,000 barrels a day. The consortium plans to increase the
capacity to 230,000 barrels a day in 13 years. According to the Iraq
Oil Ministry, the contract period is 20 years and it can be
extended.

(37) Editorial: President Obama's Nobel Peace Prize acceptance
speech

SANKEI (Page 2) (Full)
December 12, 2009

We wondered whether U.S. President Obama, who received the Nobel
Peace Prize, would be caught on the horns of dilemma between the
reality that the U.S. is fighting two wars and his ideal of
realizing a world free from nuclear weapons. No, that was not the
case. The President, in delivering his Nobel Peace Prize acceptance
speech, used the award ceremony as a venue for declaring his resolve
to fight the war on terror.

In the U.S., there has been widespread criticism over the fact that
President Obama was awarded with a Nobel Peace Prize even though he
has no track record since he has only been in office for a year.
There has also been concern that his idealistic argument calling for
a world free of nuclear weapons is detached from the reality that
the U.S. is a nuclear super power.

While being aware of that, the Nobel Committee has in a way tied the
President down with the Peace Prize so that he will not deviate from
his ideals. The President, in his Nobel Prize acceptance speech,
brought the audience back to reality by saying, "I am the
Commander-in-Chief of a nation in the midst of two wars."

He then pointed out, "The belief that peace is desirable is rarely
enough to achieve it" and "Peace requires responsibility. Peace
entails sacrifice." He thus stressed the legitimacy of reinforcing
30,000 troops in Afghanistan.

In Japan, because of his speech delivered in Prague, President Obama
has been considered as a priest of peace who aims at eliminating
nuclear weapons.

However, his diplomatic strategy that does not require the use of
force includes three (strategic) elements: (1) battle of law; (2)
battle of public opinion; and (3) battle of psychology - meaning
enlightening the public after securing legal supremacy and turning
it to benefit his own country. We should realize that behind his
idealism about eliminating nuclear weapons is the aim of preventing
the proliferation of nuclear weapons or their falling into the hands
of international terrorists.

In addition, there was a careful calculation made with the national
interest in mind as can be seen in his warning against China's
nuclear buildup and declaring on maintaining the Nuclear
Non-Proliferation Treaty (NPT). In that sense, there is no
inconsistency between the Prague speech in April and the Oslo speech
this time. The only differences were the terms used.

In the speech delivered in Prague, the President tactfully gave the

TOKYO 00002860 015 OF 016


impression of his ethical supremacy by advocating the U.S.'s moral
responsibility and pledging to seek a world free of nuclear weapons.
However, his true intention can be found in the statements "As long
as nuclear weapons exist, I will try to deter any enemies," and "I
will create a system under which one who has broken the rules must
face the consequences."

People like Prime Minister Yukio Hatoyama, who think that President
Obama is the priest of pacifism because of his speech, are far too
optimistic. What the prime minister should do is calculate the
benefits that can be shared by Japan and the U.S. and the costs to
be paid by both countries.

(38) Editorial: President Obama should produce actual results to
live up to honor of Nobel Peace Prize

MAINICHI (Page 5) (Full)
December 12, 2009

In October 1962, when the Soviet Union placed nuclear missiles in
Cuba, (then) U.S. President John F. Kennedy referred to the
possibility of a global nuclear war between the U.S. and the Soviet
Union and spoke in public that even if such an event was
unavoidable, the American people had no need to be seized with fear.
Fortunately, the Soviet Union later took away the missiles, so a
nuclear war did not take place. This resolute speech, linked to his
tragic death (assassination), contributed to having Kennedy labeled
as a great president.

In a speech he delivered as he received the Nobel peace prize, U.S.
President Barack Obama stressed the significance of the use of armed
force, probably aiming to avoid giving the image that he is weak. He
must also have calculated that it would be troublesome if his
Afghanistan military strategy was undermined because of the Nobel
peace prize. He lauded Mohandas Gandhi and Martin Luther King,
preachers of nonviolent action, but he added: "A nonviolent movement
could not have halted Hitler's armies." The President then laid out
circumstances in which war is justified.

Obama said in the speech: "Evil does exist in the world." This
remark even reminded us of previous President George W Bush's
description (of Iraq, Iran and North Korea) as an "axis of evil." Of
course, we know that President Obama is not a leader who easily uses
the superpower's military power and basically agree with his
insistence on the need to depend on military power in some cases in
order to preserve peace.

The U.S. has so far carried out a number of military operations.
Recent ones include the attack on Afghanistan and the Iraq war under
the previous President Bush (Republican); several air strikes on
Iraq and on Yugoslavia under former President Bill Clinton
(Democrat); the invasion of Panama and the Gulf War under former
President George H.W. Bush (Republican); and the invasion of Grenada
under President Ronald Reagan (Republican).

By chance or not, in many cases large-scale military action was
taken just before presidential elections in which the incumbents
were seeking reelection. A diplomatic approach depending on power is
a distinguishing feature of the United States. President Obama might
also be pressed to decide to use armed force against countries other
than Afghanistan. It is also conceivable that the U.S. will be more
deeply involved in the war against Afghanistan, which should be a

TOKYO 00002860 016 OF 016


"just war."

On the other hand, in dealing with North Korea, the U.S. remains
unable to take an approach depending on power. In the U.S., however,
it is often said that although military power can be compared to
hammer, all problems can't necessarily be compared to nails. There
are various means to resolve problems. Japan renewed its call on the
Obama administration to take a powerful diplomatic approach in
dealing with North Korea's nuclear and missile threats, which pose a
danger to its ally Japan.

President Obama has so far delivered keynote speeches several times.
In the speeches, he has fully expressed his vision. From now on, the
president should demonstrate the ability to implement his vision. It
is more constructive to place expectations on Obama's future
activities, rather than criticizing that it is too early for him to
receive the prize.

ROOS

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