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Cablegate: Japanese Morning Press Highlights 01/27/10

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DE RUEHKO #0167/01 0270252
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P 270252Z JAN 10
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
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RUEAWJA/USDOJ WASHDC PRIORITY
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHUL/AMEMBASSY SEOUL 9491
RUCNDT/USMISSION USUN NEW YORK 8882

UNCLAS SECTION 01 OF 07 TOKYO 000167

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 01/27/10

INDEX:

1) Top headlines
2) Editorials

Futenma relocation:
3) Hirano says legal resolution of Futenma issue also possible
(Yomiuri)
4) Okinawa reps in Diet to protest ministers' leaving Nago as
relocation candidate site (Yomiuri)
5) Campbell: U.S. will keep an eye on Japan's policy (Akahata)
6) Hirano: Gov't might implement Futenma relocation plan without
local resident's consent (Akahata)

Defense & security:
7) Prototype of next ASDF transport plane makes maiden flight
(Mainichi)
8) MSDF interdictions of pirates in Somalia offing top 100 (Nikkei)


Foreign relations:
9) Okada nixes idea of joint Japan-Russian economic activity in
Northern Territories (Nikkei)
10) State Minister for National Strategy Sengoku to attend Davos
Forum (Nikkei)

Economy:
11) Research group exploring Japan-China-Korea FTA to hold first
meeting in May (Nikkei)

Politics:
12) Prime Minister's answers during Upper House Budget Committee
meeting (Yomiuri)
13) Prime Minister's answers during Upper House Budget Committee
meeting (Sankei)
14) DPJ to coordinate with PNP on bill to enfranchise foreign
residents (Sankei)
15) Research group exploring Japan-China-ROK FTA to hold first
meeting in May (Sankei)

Environment:
16) Gov't officially decides to slash greenhouse gas emissions by 25
PERCENT (Asahi)

Articles:

1) TOP HEADLINES

Asahi:
Supreme Court rules that charging absentee owners higher condo
administrative maintenance fees is legal

Mainichi:
Seven & I Holdings to close Seibu Yurakucho department store this
year

Yomiuri:
Mega China; (Part 1): Project to create city with population of
200,000 underway in Angola with eye on crude oil

Nikkei:
Willcom seeking turnaround under Corporate Rehabilitation Law

TOKYO 00000167 002 OF 007

Sankei:
Tax problems emerge regarding Ozawa's land purchases

Tokyo Shimbun:
Seibu Yurakucho department store to be closed this year due to poor
sales

Akahata:
Hirano's remarks ignoring local opposition to new base draw strong
backlash from Okinawa and elsewhere

2) EDITORIALS

Asahi:
(1) PKO in Haiti: Long-term assistance begins
(2) Spring labor offensive kicks off: All workers are concerned

Mainichi:
(1) PKO in Haiti: Use Japan's experience for nation's reconstruction

(2) Spring labor offensive: Present roadmap for job security

Yomiuri:
(1) Easing of three principles banning exports of arms is compatible
with being a peaceful nation
(2) Spring labor offensive starts: Labor and management must jointly
chart roadmap toward growth

Nikkei:
(1) Explore ways to establish wage system that can promote greater
workforce liquidity
(2) Bank of Japan and government must work together closely and
wisely

Sankei:
(1) Make pragmatic changes to Futenma relocation plan
(2) Dispatch of GSDF to Haiti: Consider steps to be taken after
cooperation in PKO

Tokyo Shimbun:
(1) Spring labor offensive gets underway: A freeze on annual wage
hike will stall the economy
(2) PKO in Haiti: Ensure safety and make international
contributions

Akahata:
(1) Political responsibility of DPJ Secretary General Ichiro Ozawa
is clear

3) Hirano: Gov't may seek legal resolution of Futenma issue

YOMIURI (Page 1) (Full)
January 27, 2010

The government may seek a legal resolution of the pending issue of
relocating Futenma airfield, a U.S. military facility located in
Okinawa Prefecture, to the island prefecture's northern coastal city
of Nago, should the government fail to reach an agreement with the
city, Chief Cabinet Secretary Hirano said in a press conference
yesterday evening. Hirano had indicated that the government would
not necessarily have to obtain local consent in the process of

TOKYO 00000167 003 OF 007


deciding on where to relocate Futenma airfield. "I wonder if the
government is not allowed to proceed with this matter if we cannot
obtain their consent," Hirano said in an earlier press conference.
This remark is likely to incur strong reactions from Okinawa.

In yesterday evening's press conference, Hirano took the position
that the government will make a decision while seeking to obtain
local understanding to the extent possible. However, he went on: "I
wonder if things will not move forward in the absence of (local)
consent. We'd like to carefully consider this matter, but there are
also cases in which it could be done legally."

Hirano also explained: "I think there are various scenarios for
obtaining local consent. There are even cases in which the
government is not bound to local consent." He added: "I wonder if
would be acceptable to have 50 PERCENT understanding or if 70
PERCENT would be acceptable. That's a very difficult question.
There are cases for which we're legally required to obtain local
consent and those for which we're not."

The government is expected to face difficulties in its coordination
with local authorities over a new facility site for the Futenma
base's relocation. Hirano is already anticipating such difficult
coordination, so he is apparently giving consideration to land
expropriation or such options as using a special measures law.

The existing relocation plan involves constructing a new facility in
the Henoko area of Nago, as an alternative for Futenma airfield. The
planned facility requires land to be reclaimed from the sea. For
this landfill, however, the government is legally required to ask
for the Okinawa governor's permission. If the current plan is
floated again, the government may prioritize the Okinawa governor's
judgment over the Nago mayor, who is opposed to the Futenma
relocation to Henoko, sources said.

4) Okinawa lawmakers to protest Futenma relocation

YOMIURI (Page 4) (Full)
January 27, 2010

Shokichi Kina, a ruling Democratic Party of Japan lawmaker seated in
the House of Representatives, and his "Uru no kai" group of Diet
members elected from Okinawa Prefecture met yesterday in the Diet
and decided to file a protest with the government over the issue of
relocating the U.S. military's Futenma airfield facility in their
island prefecture. In this regard, Prime Minister Hatoyama and Chief
Cabinet Secretary Hirano have indicated that the government will
retain the current plan to move Futenma airfield from its current
location to the prefecture's northern coastal city of Nago as an
option for consideration. Hirano has said there is no need to take
into consideration the outcome of the city's recent mayoral election
that ended in the victory of a candidate opposing the planned
relocation of Futenma airfield to the city's Henoko area. The group
will file a protest with Hirano shortly.

5) Campbell: U.S. will keep eye on Japan's policy

AKAHATA (Page 2) (Full)
January 27, 2010

Washington, Jiji


TOKYO 00000167 004 OF 007


U.S. Assistant Secretary of State (for East Asian and Pacific
Affairs) Kurt Campbell, speaking to reporters in Washington on Jan.
25, indicated that the victory of Susumu Inamine, who opposes the
existing plan to relocate the U.S. Marine Corps' Futenma Air Station
to the Henoko district in Nago, in the mayoral election in Nago,
Okinawa Prefecture, will have an impact on the relocation. He said:
"It is certain that a new factor has been added (to the Futenma
issue)."

"I want to ask about what impact the results of this mayoral
election may have on the thinking of senior Japanese officials,"
Campbell also said in connection with his visit to Japan scheduled
for next week to attend talks on deepening the bilateral alliance,
indicating his plan to ask about Japan's policy. At the same time,
he expressed a negative view about holding talks with Inamine,
saying, "I am going to exchange views with the central government."

6) Hirano: Government might implement Futenma relocation plan
without local residents' consent

AKAHATA (Page 2) (Full)
January 27, 2010

Chief Cabinet Secretary Hirofumi Hirano, referring during a press
conference yesterday to the Nago mayoral election in which a
candidate opposed to accepting the relocation of the U.S. Marine
Corps' Futenma Air Station (in Ginowan, Okinawa Prefecture) achieved
a victory, reiterated his view that the government might determine a
relocation site without the consent of local residents. He said, "Do
things not move forward if we cannot obtain consent (from the
relocation site)?"

"Do things not move forward if (the local government) refuses to
accept the plan?" Hirano again said in an afternoon press
conference. "We want to fully examine that point. There could be
cases in which we can take legal steps to implement the plan."
Hirano thus pointed to the possibility of a legal settlement of the
matter if the local government rejects the plan.

7) First test flight of ASDF's domestically-produced next generation
transport aircraft XC-2 conducted

MAINICHI (Page 9) (Full)
Evening, January 26, 2010

Tetsuya Hioka

The first test flight of a prototype XC-2, the next generation
transport aircraft (CX) of the Air Self-Defense Force (ASDF) that
the Ministry of Defense (MOD) is developing, took place at the
ASDF's Gifu Air Base in Kagamihara City on Jan. 26. The test had
originally been scheduled for September 2007, but the development
project was delayed considerably due to various problems, such as
inadequate strength of certain components. If the safety of the XC-2
is verified, shipment of the aircraft will begin within this fiscal
year.

The MOD started the development of the CX as the successor to the
C-1 transport aircraft, which has reached the end of its service
life, in FY01. The body of the aircraft is 43.9 meters long, 44.4
meters wide, and 14.2 meters high. Since the new transport aircraft
is also expected to be used on overseas missions, such as for

TOKYO 00000167 005 OF 007


disaster relief, its flight range and load capacity have been
upgraded considerably compared to the C-1.

This transport aircraft was manufactured by Kawasaki Heavy
Industries, Ltd. and a number of related companies. The total
development cost, including spending on the XP-1, the successor to
the Maritime Self-Defense Force's P-3C patrol plane, is
approximately 340 billion yen.

8) MSDF has engaged in more than 100 antipiracy interdictions off
Somalia

NIKKEI (Page 2) (Full)
January 27, 2010

As of Jan. 26 the Maritime Self-Defense Force (MSDF) has carried out
more than 100 interdictions off Somalia since it began the
antipiracy mission there last March. The MSDF has so far provided
escort services to 562 commercial ships of Japan, China, and other
countries. The government ended the MSDF's refueling mission in the
Indian Ocean. However, it intends to continue the MSDF's antipiracy
mission off Somalia as a pillar of its international contribution,
along with aid to quake-hit Haiti, to which the government has
decided to dispatch a Ground Self-Defense Force unit to join the UN
peacekeeping operations (PKO).

9) Foreign Minister Okada negative about Japan-Russia joint economic
activities

NIKKEI (Page 2) (Full0
January 27, 2010

At a press conference yesterday, Foreign Minister Katsuya Okada took
a negative view on joint economic activities between Japan and
Russia, saying, "Unless the fundamental issue is resolved, there
will be difficult legal problems. I don't take a positive view of
this approach." Russian First Deputy Foreign Minister Andrey Denisov
yesterday told the Nihon Keizai Shimbun that he "supports" joint
Japan-Russia economic activities. However, Okada underscored Japan's
position that the settlement of the issue of ownership of four
Russia-held islands is a prior condition for joint economic
activities of the two countries.

10) Sengoku to attend Davos conference

NIKKEI (Page 2) (Full)
January 27, 2010

Yoshito Sengoku, state minister for national strategy and
administrative reform, revealed yesterday after a cabinet meeting
that he intends to attend the annual meeting of the World Economic
Forum (Davos conference). If the Diet approves of his participation
in the Davos conference, he will leave for Geneva aboard a
government plane along with Agriculture, Forestry and Fisheries
Minister Hirotaka Akamatsu and Economy, Trade and Industry Minister
Masayuki Naoshima. Akamatsu and Naoshima are expected to attend
informal ministerial talks of the World Trade Organization.

11) Japan-China-ROK joint industry-government-academic research
group on trilateral FTA to hold first meeting in May

NIKKEI (Page 5) (Full)

TOKYO 00000167 006 OF 007


January 27, 2010

Masanori Yamaguchi in Seoul

Japan, China, and the Republic of Korea (ROK) held a preparatory
meeting of bureau chief level officials of their ministries of
foreign affairs in Seoul on Jan. 26 and agreed to hold the first
meeting of a joint industry-government-academic research project on
a trilateral free trade agreement (FTA) in Seoul as soon as May.
According to an official involved with the meeting, officials of the
three countries agreed at the preparatory meeting that "the joint
research project will be significant for strengthening economic ties
among the three countries." The research group is expected to meet
at least once every six months.

12) Diet debate in Upper House Budget Committee meeting on Jan. 26

YOMIURI (Page 15) (Excerpts)
January 27, 2010

Japan-U.S. alliance

Yoichi Masuzoe of Liberal Democratic Party (LDP): Do you think that
military relations between Japan and the U.S. are on an equal
footing?

Prime Minister Yukio Hatoyama: As seen from the fact that Japan
dispatched Ground Self-Defense Force troops to Iraq and Maritime
Self-Defense Force vessels to the Indian Ocean at the request of the
U.S., Japan's security policy was overly dependent on the U.S. In an
equal relationship, Japan should make proposals and conduct thorough
talks with the U.S. on military affairs.

Yoshimasa Hayashi of the LDP: The prime minister said "trust me"
during the latest Japan-U.S. summit meeting. Does it mean that the
government will thoroughly discuss the relocation of the U.S. Marine
Corps' Futenma Air Station?

Hatoyama: I wanted to convey that it was important for the two
countries to deepen the bilateral relationship of trust and for the
other side to trust me. This is exactly what I meant. I expressed my
desire that the president will trust me overall. I did not mean to
promise this or that, setting time limits.

13) Remark by Hatoyama on Futenma issue in Upper House Budget
Committee meeting

SANKEI (Page 5) (Excerpt)
January 27, 2010

We must prepare a reply that can convince both the U.S. and the
people in Okinawa. The study committee on Okinawa base issues is
making utmost efforts. We will push ahead with discussion from
scratch, and I will come up with a conclusion by the end of May
without fail.

14) Government to coordinate with PNP on foreigner suffrage bill

SANKEI (Page 5) (Full)
January 27, 2010

The government intends to submit to the current Diet session a bill

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to give permanent foreign residents in Japan the right to vote in
local elections. In this connection, Chief Cabinet Secretary
Hirofumi Hirano indicated in a press conference yesterday that the
government should carry out coordination with the People's New Party
(PNP) first. Hirano said: "State Minister for Financial Affairs and
Postal Reform Shizuka Kamei has made replies (opposing the bill) in
the Diet, so it is necessary that an agreement will be reached in
the cabinet before the government proceeds with the issue."

15) Foreign Ministry panel to delay submission of report on secret
nuclear pacts to February or after

An expert panel of the Foreign Ministry tasked with examining
documents related to alleged secret accords between Japan and the
U.S. plans to compile a report on its findings. Tokyo University
Professor Shinichi Kitaoka, who chairs the panel, met Foreign
Minister Katsuya Okada at the Foreign Ministry yesterday and said:
"In order for the panel to present a responsible report, another one
month or so (from January) will be needed because there are a
massive amount of related documents to examine." Okada accepted his
request and decided to put off the compilation of a report to
sometime after February.

16) Japan notifies UN of its formal decision on greenhouse gas
emission reduction target of 25 PERCENT

ASAHI (Page 7) (Abridged)
January 27, 2010

The government made a formal decision on Jan. 26 on Japan's goal to
reduce greenhouse gas emissions by 25 percent compared to 1990
levels by 2020 as its reduction target to be submitted to the United
Nations under the Copenhagen Accord that was agreed upon at the 15th
Conference of Parties to the U.N. Framework Convention on Climate
Change (COP15) in late 2009 and notified the Convention's
secretariat of this decision.

A ministerial committee consisting of Prime Minister Yukio Hatoyama,
Deputy Prime Minister Naoto Kan, and other cabinet members approved
this target. The committee set as the condition for meeting this
target "the building of a fair and effective international framework
by all major countries" - not just numerical targets - and "an
agreement on an ambitious goal."

ROOS

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