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Cablegate: Japanese Morning Press Highlights 12/18/09

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ZNR UUUUU ZZH
P 180130Z DEC 09
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHBJ/AMEMBASSY BEIJING 2365
RUEHUL/AMEMBASSY SEOUL 9030
RUCNDT/USMISSION USUN NEW YORK 8461

UNCLAS SECTION 01 OF 07 TOKYO 002893

SIPDIS

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

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

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/18/09

INDEX:

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

Futenma issue:
4) DCM Zumwalt and DPJ Diet Affairs Committee Chairman Yamaoka agree
to shelve Futenma issue (Mainichi)
5) Government decides not to earmark funds for Futenma relocation
(Nikkei)
6) Governors rebuff Hashimoto's call for discussion on Futenma
relocation (Nikkei)
7) Hatoyama directs FM and MOD to quickly find alternative to Henoko
(Asahi)

Politics:
8) Hiranuma eager to create new party (Yomiuri)
9) Komeito Vice General Director Harada calls for party to return to
its roots (Nikkei)

Defense & security:
10) Former MOFA senior official testifies that secret document
accord exists (Yomiuri)
11) Government moving toward nationwide deployment of PAC3 (Asahi)


12) Decision to curb defense expenditures in fiscal 2010 raises
concerns in MOD about possible decline in Japan's deterrence
capabilities (Yomiuri)
13) Hatoyama administration avoids formulating concrete defense
policy out of deference to the SDP (Mainichi)

Economy & trade:
14) ANA to apply for exclusion of application of anti-monopoly law
(Nikkei)
15) Toyota Tsusho secures 15 PERCENT interest in coalbed methane in
Queensland (Nikkei)

Environmental issues:
16) Hatoyama vows to succeed at COP15 (Mainichi)
17) Sea Shepherd obstructs research whaling vessel (Yomiuri)

Articles:

1) Top headlines

Asahi:
Lower house lawmakers have 103 state-paid secretaries who are
concurrently holding private-sector jobs despite prohibition in
principle

Mainichi:
Hatoyama budget: DPJ Secretary General Ozawa aiming to drive a wedge
into LDP's stronghold

Yomiuri:
U.S. presents 9-trillion-yen aid plan at COP15, calling for
participation by other developed nations

Nikkei:
Japan makers accelerating manufacturing, sales of products specially

TOKYO 00002893 002 OF 007


designed for emerging markets with eye on demand in Asia

Sankei:
Coordination underway to put income cap at 20 million yen for child
allowance program; PM not adhering to campaign pledge

Tokyo Shimbun:
Supreme Court rejects Shinjuku Ward's appeal, determining that
Ward's building certification for new condo is illegal

Akahata:
Welfare ministry decides to provide people under 18 with six-month
insurance cards to assist uninsured high school students

2) EDITORIALS

Asahi:
(1) DPJ's budgetary requests: Where does power lie?
(2) Guilty verdict upheld over investigation record leak:
Investigative authorities must not be allowed to intervene in
freedom of reporting and expression

Mainichi:
(1) DPJ budgetary requests: Party must not make decision to renege
on its public pledge behind closed doors
(2) System that can help disabled people become truly independent is
essential

Yomiuri:
(1) Fiscal 2010 budget: Correcting pork-barrel public pledge is only
natural
(2) Xi's visit exposed difficulty of Japan-China diplomacy

Nikkei:
(1) Dubai shock a reminder of aftershock of global financial crisis
(2) Fukawa case retrial shows need for transparency of criminal
investigation process

Sankei:
(1) DPJ's budgetary requests reflect decision lacking transparency
(2) Security without regular stationing of troops: Awareness to
defend nation called into question

Tokyo Shimbun:
(1) DPJ's budgetary requests: Party must fulfill its accountability
(2) Government must do more before using health insurance unions in
assisting people 75 and older

Akahata:
(1) Take every possible crisis measure for employment and small
businesses at year end

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 17

NIKKEI (Page 2) (Full)
December 18, 2009

08:20 Attended ministerial committee meeting on defense buildup at
the Prime Minister's Official Residence (Kantei). Attended
afterwards security council meeting.

TOKYO 00002893 003 OF 007


09:06 Attended cabinet meeting. Met Foreign Minister Okada; Land,
Infrastructure, and Transport Minister Maehara, Defense Minister
Kitazawa, and Chief Cabinet Minister Hirano.
10:25 Met Finance Minister Fujii and Government Revitalization Unit
chief Sengoku. Met SDP Secretary General Shigeno, PNP Secretary
General Jimi, State Minister for National Strategy Kan, Fujii, and
Hirano. Afterward met Kan, Fujii, Sengoku, Senior Vice Minister of
the Cabinet Office Furukawa, and Deputy Chief Cabinet Secretary
Matsui.
12:54 Departed for Copenhagen to attend the COP15 summit-level
meeting aboard a government plane from Haneda Airport.
Afternoon
(Denmark) Arrived at Kastrup Airport in Copenhagen.

4) Agreement reached on shelving Futenma

MAINICHI (Page 5) (Full)
December 18, 2009

U.S. Deputy Chief of Mission James Zumwalt from the U.S. Embassy in
Japan yesterday called on Democratic Party of Japan Diet Affairs
Committee Chair Kenji Yamaoka in the Diet building and held talks
with him. On the issue of the relocation of the U.S. Marine Corps'
Futenma Air Station, Zumwalt stressed: "The Futenma issue is not the
only (issue) that concerns relations between Japan and the United
States. We would like to build good relations in other areas as
well." In response, Yamaoka also said: "We should shelve the Futenma
issue temporarily and consider it in tandem with other matters."

5) Government decides not to include Futenma spending in 2010
budget

NIKKEI (Page 2) (Excerpt)
December 18, 2009

The government decided yesterday not to include in the fiscal 2010
budget bill the cost connected with the relocation of the U.S.
Marine Corps' Futenma Air Station in Okinawa Prefecture. If
necessary, the reserve fund appropriated for unspecified spending
will be used. At the same time, the budget will include some 50
billion yen for improving, among other installations, a U.S. base on
Guam for the 8,000 Marine Corps to be relocated from Okinawa in
accordance with a Japan-U.S. agreement.

6) Osaka governor says National Governors' Association should
discuss Futenma issue

NIKKEI (Page 2) (Full)
December 18, 2009

The National Governors' Associations held a meeting yesterday in
Tokyo. Referring in the meeting to the relocation of the U.S. Marine
Corps' Futenma Air Station in Okinawa Prefecture, Osaka Gov. Toru
Hashimoto proposed that the association discuss the issue if it
receives such a request from the central government. Fukuoka Gov.
Wataru Aso, chairman of the association, replied: "This is basically
an issue for the central government to deal with. We will continue
discussions on how the association should deal with it in the
future."

7) PM orders ministers to find new Futenma relocation site quickly


TOKYO 00002893 004 OF 007


ASAHI (Page 4) (Excerpt)
December 18, 2009

Prime Minister Yukio Hatoyama yesterday met with Foreign Minister
Katsuya Okada, Defense Minister Toshimi Kitazawa, and other relevant
cabinet ministers to discuss the relocation of the U.S. Marine
Corps' Futenma Air Station (in Ginowan, Okinawa Prefecture).
Hatoyama ordered them to quickly look for a new alternative site
that can replace Henoko so that Futenma can be relocated there by
2014.

8) Hiranuma eager to form a new party

YOMIURI (Page 4) (Full)
December 18, 2009

Takeo Hiranuma, an independent House of Representatives member and
former economy, trade and industry minister, said yesterday on a CS
broadcasting program: "One of my missions is to form a new political
party before the next House of Councillors election," expressing his
eagerness to form a new party. He appears to be calling on lawmakers
who have bolted the Liberal Democratic Party to join a new party.

9) New Komeito should return to its origin: Soka Gakkai

NIKKEI (Page 2) (Full)
December 18, 2009

The New Komeito and the religious sect Soka Gakkai, the main support
body of the New Komeito, held a liaison meeting yesterday at the
party's headquarters. It was the first meeting to be held since
Natsuo Yamaguchi became the leader of the New Komeito. Koji Harada,
a Soga Gakkai deputy director, said, "The New Komeito has lost its
own political identity because the party placed priority on the
coalition with the Liberal Democratic Party. I want the party to
return to its starting line." Yamaguchi then asked for support from
Soka Gakkai, saying, "Winning the House of Councillors election next
year is the only way to prove that our party has been rebuilt."

10) DEFENSE & SECURITY

Ex-MOFA official testifies on existence of secret deals

YOMIURI (Page 4) (Full)
December 18, 2009

An expert panel of the Ministry of Foreign Affairs (MOFA) has been
examining "secret agreements" allegedly concluded between Japan and
the United States. Shinichi Kitaoka, professor of the University of
Tokyo, heads the panel. It was learned on Dec. 17 that the panel
questioned a former senior ministry official for the first time
(about the secret accord issue), and the former official testified
that there were documents to support an agreement allowing the
introduction of nuclear weapons into Japan, which is believed to
have been concluded in 1960 when the U.S.-Japan Security Treaty was
revised.

11) Japan to go ahead with nationwide deployment of PAC-3

ASAHI (Page 4) (Abridged)
December 18, 2009


TOKYO 00002893 005 OF 007


The Hatoyama cabinet held a meeting of the Security Council of Japan
(SCJ) yesterday, with Prime Minister Hatoyama presiding. In the
meeting, the SCJ decided on a basic course of action for compiling
the next fiscal year's defense budget. The SCJ discussed the
networking of ballistic missile defense (BMD) systems and decided to
ensure Japan's readiness, including the Self-Defense Forces'
capability to counter ballistic missile attacks. Specifically, the
SDF will upgrade the systems of its existing conventional missiles
that are not outfitted with the Patriot Advanced Capability 3
(PAC-3), a ground-to-air guided missile system. With this upgrade,
the SDF will ready its PAC-3 deployment across the nation.

The Defense Ministry, in its budget request, earmarked 94.3 billion
yen for deployment of PAC-3 batteries in Hokkaido, Aomori, and
Okinawa, in addition to those already deployed to SDF bases covering
the Kanto, Kinki-Tokai, and Kyushu regions. But the Finance Ministry
insisted on the necessity of strictly restricting the government's
burden of payments to be made in future fiscal years, since the
government has decided not to revise its current national defense
program guidelines and midterm defense buildup plan until next
fiscal year.

In its basic course of action, the SCJ points to the serious threats
from North Korea's nuclear and ballistic missile development. The
PAC-3 has yet to cover the three regions, where the SDF will improve
or upgrade its existing PAC-2 radar and its command and control
system. According to the Defense Ministry, the PAC-2 can be upgraded
to the PAC-3 by combining PAC-3 missiles and launchers with the
PAC-2 system.

The government has so far introduced a double-decker system for BMD.
Against potential missile attacks, the Standard Missile 3 (SM-3), a
sea-based missile defense system onboard Aegis-equipped destroyers,
covers Japan entirely in its missile defense shield. In case the
SM-3 fails to intercept launched ballistic missiles, the PAC-3, a
land-based missile defense backup system, will shoot down such
missiles. The SDF has been deploying PAC-3 batteries to defend
Japan's "political and economic centers and other areas that are
highly likely to come under attack," according to Yoshinori Ono, a
former director general of the Defense Agency, now upgraded to full
ministry status. The SCJ-adopted course of action means to authorize
the Defense Ministry to extend the PAC-3 deployment all over the
country in addition to the Tokyo metropolitan area and other densely
populated localities.

However, the question is how far to extend the PAC-3 shield. This
will be left to discussions to be held next year on a new set of
national defense program guidelines, based on the North Korean
situation and Japan's fiscal circumstances.

12) Concerns that retrenchment of FY10 defense budget may undermine
deterrence

YOMIURI (Page 2) (Excerpts)
December 18, 2009

The government decided on Dec. 17 in its basic policy for the
formulation of the FY2010 defense budget not to increase
Self-Defense Forces (SDF) personnel and to implement only upgrades
in stages instead of nationwide deployment of the ground-to-air
Patriot missile 3 (PAC-3) under an overall policy of budget
retrenchment. While this is due to the government's tight fiscal

TOKYO 00002893 006 OF 007


situation, there is discontent in the Ministry of Defense (MOD).

Certain MOD officials are voicing concern, saying, "With North
Korea's nuclear and missile threat and China's sustained military
buildup, cutting back the budget under a situation where a debate on
defense buildup is being deferred may lead to the deterioration of
deterrence."

13) SDP also given consideration in defense budget policy;
additional PAC-3 deployment deferred

MAINICHI (Page 5) (Slightly abridged)
December 18, 2009

Yasushi Sengoku

The government settled on its policy for the formulation of the FY10
defense budget at a cabinet meeting on Dec. 17. It has decided to
implement defense buildup based on the current National Defense
Program Guidelines (NDPG), while deferring the additional deployment
of land-based interceptor missile (PAC-3) for the missile defense
systems. However, the government also made an ambiguous decision to
implement upgrades that effectively amounts to the same thing as
additional deployment.

This defense budget policy will take effect for only one year in
light of the one year delay in revising the NDPG and the Mid-Term
Defense Buildup Program. With regard to additional PAC-3 deployment,
the policy merely mentions "improvements necessary for maintaining
existing functions." However, in reality, improvements will be
undertaken even in the radars, firing control devices, radio relay
systems, and other critical components of PAC-2 interceptors, which
will bring them to PAC-3 level once the launchers are upgraded. A
senior Ministry of Defense official points out that "this is more
than 80 percent PAC-3." With this in mind, Defense Minister Toshimi
Kitazawa told reporters that the question of PAC-3 is "a bit
tricky."

The background behind this decision is that the policymaking process
was affected by the demand of Minister for Consumer Affairs and
Declining Birthrate Mizuho Fukushima, leader of the Social
Democratic Party (SDP), which is a member of the coalition, to
"deliberate in the direction of eliminating wasteful spending." The
delay in revising the NDPG was also due to the administration's
failure to decide on a policy out of consideration for the SDP. As a
result, even policies on critical equipment like PAC-3 have to be
elusive.

14) ANA, two U.S. partners to apply for antitrust immunity "by
year's end"

NIKKEI (Page 11) (Excerpt)
December 18, 2009

All Nippon Airways (ANA) President Shinichiro Ito officially
announced in a press conference yesterday that ANA and two leading
U.S. air carriers -- United Airlines and Continental Airlines - will
start taking necessary procedures to integrate their flight
operations between the two countries. The remark came after the
Japanese and U.S. governments agreed to conclude an open skies
accord to liberalize their aviation markets. Ito said: "If possible,
the three companies will apply for antitrust immunity (with the U.S.

TOKYO 00002893 007 OF 007


Transportation Department and the Land, Infrastructure, Transport
and Tourism Ministry) by the end of the year."

15) Toyota Tsusho acquires 15 PERCENT stake in coal-bed methane
project in Australia, with total investment at 20 billion yen

NIKKEI (Page 11) (Excerpts)
December 18, 2009

Toyota Tsusho Corp. purchased a stake in a coal-bed methane (CBM)
project in Australia. The company will participate in the
development project of the BG Group, a leading British energy
company, with its total investment at approximately 20 billion yen.
The group plans to start producing liquefied natural gas (LNG) from
CB M in early 2014. Demand for CBM is expected to increase in the
future. The company will invest in projects to develop CBM and
expand its resources and energy businesses.

Toyota Tsusho has spent almost 10 billion yen to acquire a 15
PERCENT interest in the project in the state of Queensland. The
project is slated to start in 2010. The company will also share
expenses for exploitation, as well as for building pipelines and LNG
production facilities.

16) Hatoyama: "I will make COP15 successful without fail"

MAINICHI (Page 3) (Excerpt)
December 18, 2009

Prime Minister Yukio Hatoyama left Haneda Airport by government
plane yesterday afternoon and arrived at the Kastrup International
Airport in Denmark on the evening of the same day, local time, to
attend the summit meeting of the 15th session of the Conference of
the Parties to the UN Framework Convention on Climate Change (COP15)
in Copenhagen.

Before leaving Japan, Hatoyama told reporters at the Prime
Minister's Official Residence: "The session will provide a chance
for Japan to demonstrate strong leadership. I will make it
successful without fail. We must not allow the U.S. and China to be
reluctant (to accept am ambitious target to reduce greenhouse gas
emission) while only Japan (is eager)."

17) Fisheries Agency reports Sea Shepherd disrupted operations of
Japanese research whaling fleet in Southern Ocean

YOMIURI (Page 36) (Full)
December 18, 2009

The Fisheries Agency reported on Dec. 17 that the anti-whaling group
Sea Shepherd threw ropes into the sea to entangle screws and engaged
in other activities to disrupt the operations of the Japanese
research whaling fleet in the Southern Ocean.

The Shonan Maru No. 2, which is in charge of monitoring the Sea
Shepherd's activities in the whaling fleet, was targeted in the
disruptive activities. The Sea Shepherd's ship Steve Irwin closed in
within 200 meters of the Shonan Maru No. 2 on the afternoon of Dec.
17 (Japan time) and threw ropes into the sea and irradiated it with
green laser beams.

ROOS

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