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Cablegate: Japanese Morning Press Highlights 01/28/10

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DE RUEHKO #0178/01 0280120
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P 280120Z JAN 10
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9037
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0880
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RUEHOK/AMCONSUL OSAKA KOBE 2355
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RUEHUL/AMEMBASSY SEOUL 9515
RUCNDT/USMISSION USUN NEW YORK 8902

UNCLAS SECTION 01 OF 09 TOKYO 000178

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 01/28/10

INDEX:

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1) Top headlines
2) Editorials

Futenma relocation:
3) Hirano: Cabinet decision on Futenma by May (Asahi)
4) Ozawa says he understands the will of the people (Nikkei)
5) DPJ's Makino inspects Tokunoshima (Tokyo Shimbun)

Foreign relations:
6) Okada to visit South Korea next month (Yomiuri)
7) Okada: No armed conflict in Haiti (Asahi)

Defense & security:
8) U.S. service member involved in hit-and-run incident indicted on
additional charge (Tokyo Shimbun)
9) Defense Ministry to send PKO fact-finding team to Haiti (Asahi)


Politics:
10) Ozawa: The U.S. went so far as to elect a black to change the
country (Nikkei)
11) Hatoyama administration to first submit 12 bills to Upper House
(Asahi)
12) Hatoyama says postponement of bill enfranchising foreign
residents possible (Asahi)
13) Summary of debate in Upper House Budget Committee (Nikkei)

Ozawa scandal:
14) Prosecutors put off second grilling of Ozawa (Nikkei)

Economy & trade:
15) China eclipses U.S. as Japan's biggest export market (Sankei)
16) JAL to conclude tie-up with Delta (Mainichi)
17) Rare metal funds to be listed (Nikkei)

Opinion:
18) Nikkei-Tokyo TV poll: Cabinet disapproval rating tops approval
rating (Nikkei)
19) Nikkei-Tokyo TV poll: 67 PERCENT worried about Japan-U.S.
relations (Nikkei)

Articles:

1) TOP HEADLINES

Asahi, Yomiuri:
Former deputy police chief to be charged over fatal stampede in
Akashi in line with inquest panel's decision

Mainichi, Tokyo Shimbun:
Saitama Prefectural Police to re-arrest woman on suspicion of
murdering several men who died mysterious deaths

Nikkei:
Japan's major manufacturers see sharp profit recoveries on demand
from abroad

Sankei:
Okinawa in turmoil: Hirano mentions legal steps about Futenma issue
again

TOKYO 00000178 002 OF 009

Akahata:
JCP's Mikishi Daimon grills Prime Minister and others over Worker
Dispatch Law

2) EDITORIALS

Asahi:
(1) Yonekura-led Keidanren: Donations must be abolished to revamp
the business lobby
(2) Global warming law must serve as driving force toward low carbon
era

Mainichi:
(1) Inquest panel decides to indict a former deputy police chief
(2) Strong expectations on Yonekura to reform Keidanren

Yomiuri:
(1) Yurakucho Seibu Department Store to be closed: Department stores
need new strategies for survival
(2) Decision on condo administrative management fees fair and
appropriate

Nikkei:
(1) Low carbon society requires solid domestic greenhouse gas
reduction targets before international talks
(2) Keidanren must reform itself into a body that can take overall
economy into consideration

Sankei:
(1) 25 PERCENT emissions reduction target: Explanation to the
people insufficient
(2) New Keidanren chief must make strong requests to Hatoyama
administration

Tokyo Shimbun:
(1) Hirano's remarks seem to trample on popular will
(2) Bank of Japan's government bonds likely to be lowered; present
fiscal reconstruction roadmap soon

Akahata:
(1) Hirano's outrageous remarks denying popular will opposing bases
intolerable

3) Chief Cabinet Secretary Hirano says cabinet resolution on Futenma
relocation site to be passed before end of May

ASAHI (Page 4) (Full)
January 28, 2010

At a news conference on Jan. 27, Chief Cabinet Secretary Hirofumi
Hirano indicated that a cabinet resolution will be passed on the
relocation site of the U.S. forces' Futenma Air Station (in Ginowan
City, Okinawa) before the end of May. He said: "While it will be
significant if the Prime Minister identifies a relocation site,
officially, a cabinet resolution represents the government's
decision."

Hirano also indicated that the approval of the local government
hosting the relocation site and of the U.S. side will be sought by
the end of May.


TOKYO 00000178 003 OF 009


4) Ozawa tells Nago mayor-elect that he understands the people's
will

NIKKEI (Page 2) (Full)
January 28, 2010

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa met
yesterday Nago Mayor-elect Susumu Inamine at a hotel in Nago City.
Inamine, who has opposed the plan to relocate the U.S. Marine Corps'
Futenma Air Station (in Ginowan City, Okinawa) to the coast area of
U.S. Camp Schwab in the Henoko district, his city, demand that the
existing plan be scrapped. Ozawa responded, saying: "I understand
the will of Nago residents and the will of Okinawa residents. I will
deal with the matter as DPJ secretary general."

5) DPJ Lower House member Seishu Makino investigating Tokunoshima as
possible Futenma relocation site

TOKYO SHIMBUN (Page 2) (Full)
January 28, 2010

Democratic Party of Japan (DPJ) House of Representatives member
Seishu Makino, who is close to Prime Minister Yukio Hatoyama,
disclosed on Jan. 27 that he is investigating Tokunoshima in the
Amami islands in Kagoshima Prefecture as a possible relocation site
for the U.S. forces' Futenma Air Station.

Makino has been visiting Tokunoshima since last November and have
met with the mayors of the towns of Tokunoshima, Amagi, and Isen
several times to sound them out about accepting Futenma's
relocation. He reported to the Prime Minister about these activities
in November.

However, Isen Mayor Akira Okubo contacted him by phone on behalf of
all three mayors on Jan. 27 to inform him that, "The answer is 'no'
this time."

6) FM Okada to visit South Korea in February

YOMIURI (Page 2) (Full)
January 28, 2010

Foreign Minister Katsuya Okada has begun coordination to visit South
Korea on Feb. 10-11 to hold talks with South Korean Foreign Affairs
and Trade Minister Yu Myung-hwan, multiple sources connected with
the government said yesterday. This will be Okada's first trip to
South Korea since assuming office last September. He is expected to
exchange views with his South Korean counterpart on such matters as
North Korea's return to the Six-Party Talks and the resumption of
talks on a Japan-ROK free trade agreement (FTA).

7) Okada: There is no armed conflict in Haiti

ASAHI (Page 4) (Full)
January 28, 2010

The government is planning to send Self-Defense Force (SDF)
personnel to Haiti to join the UN peacekeeping operations (PKO).
Foreign Minister Katsuya Okada said in a meeting of the House of
Councillors Budget Committee yesterday that the SDF dispatch to
Haiti meets the conditions for Japan's participation in PKO set in
the UN Peacekeeping Operations Cooperation Law of no armed conflict

TOKYO 00000178 004 OF 009


and acceptance by both parties to the conflict of Japan's
participation. Although several armed groups have been conducting
activities from before the earthquake, no armed conflicts have
broken out. Given this, Okada indicated that it is not necessary to
obtain a cease-fire agreement and acceptance by both parties to the
conflict - requirements stipulated in the five principles of PKO
participation.

8) U.S. service member in Okinawa indicted again over hit-and-run
incident

TOKYO SHIMUN (Page 26) (Full)
January 28, 2010

The Naha District Public Prosecutors Office yesterday indicted Clyde
Gunn, 27, a staff sergeant based at the U.S. Army Torii
Communications Station in the village of Yomitan, Okinawa
Prefecture, on an additional charge of a violation of the Road
Traffic Law (hit-and-run) in connection with a case in which a man
died after being hit by a car in the village last November.

According to the indictment, Gunn hit Masakazu Hokama, 66, who was
walking, while driving a car at around 5:50 a.m. on November 7,
2009, but Gunn neither tried to help Hokama nor reported the
accident to the police.

The cause of Hokama's death was a cervical spine fracture and other
injuries.

9) Defense Ministry to send PKO fact-finding team to Haiti

ASAHI (Page 4) (Full)
January 28, 2010

The Defense Ministry yesterday dispatched a fact-finding team of
three members, including Ground Self-Defense Force officials, to
earthquake-devastated Haiti in preparation for dispatching
Self-Defense Force personnel to join the UN peacekeeping operations
(PKO) mission. The members are expected to arrive in Haiti early in
the morning on Jan. 29, Japan time. They will investigate such
details as what equipment needs to be sent for the engineering unit
to conduct its activities and the conditions for setting up a camp
for its members.

10) Ozawa: The U.S. went so far as to elect a black to change the
country

NIKKEI (Page 2) (Full)
January 28, 2010

Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa gave
a speech at a party hosted by DPJ House of Councillors members
yesterday in Naha City. Referring in his speech to the change of
government in the United States, he said, "In the United States as
well, they chose to change the world and their country even by
electing a black man, Mr. Obama."

11) Hatoyama administration plans to allow Upper House to deliberate
on 12 bills ahead of Lower House

ASAHI (Page 4) (Full)
February 28, 2010

TOKYO 00000178 005 OF 009

The Hatoyama administration decided yesterday that of the 61 bills
presented to the Diet in the current session, it will allow the
House of Councillors to deliberate first on 12 bills, including
regional autonomy reform promotion legislation and a bill amending
the Worker Dispatch Law to ban dispatching temporary workers to the
manufacturing industry in principle.

With the Upper House election scheduled to take place this summer,
it will not be possible to extend the Diet session substantially.
Allowing the Upper House to begin deliberating first on the bills in
early February while the House of Representatives is discussing the
fiscal 2010 budget in earnest is intended to make effective use of
the current Diet session that will end on June 16.

12) Hatoyama hints at possible delay in submission of foreigner
suffrage bill to Diet, reflecting PNP's opposition

ASAHI (Page 4) (Excerpt)

Prime Minister Yukio Hatoyama indicated yesterday that the
government would give up on its plan to submit to the current Diet
session a bill to give permanent foreign residents in Japan the
right to vote in local elections. He said: "Since the government is
composed of three political parties, an agreement among the ruling
parties is necessary at the very least. Now that the People's New
Party (PNP) is opposed to the bill, however, it will not be easy to
build consensus." Hatoyama made this remark in response to questions
by reporters at the Prime Minister's Official Residence.

13) Gist of deliberations at Upper House Budget Committee on January
27 on Futenma, arms exports, SDF Haiti mission

NIKKEI (Page 4) (Excerpts)
January 28, 2010

Futenma base issue

New Komeito leader Natsuo Yamaguchi: Foreign Minister Katsuya Okada
stated at a meeting with citizens of Nago City, Okinawa Prefecture
on Dec. 5 that, "In the first place, whether to build a military
base and the Japan-U.S. security alliance are issues at the national
level."

Foreign Minister Katsuya Okada: It goes without saying that we need
to make efforts to seek the understanding of the people of Okinawa.
However, ultimately, the national government should take the
responsibility, since this is an issue affecting national security.
In the end, the government will make the decision.

Yamaguchi: The chief cabinet secretary's statement on the popular
will as expressed in the Nago mayoral election is creating a stir.

Chief Cabinet Secretary Hirofumi Hirano: The most important thing in
the Futenma base issue is to reduce the burden on the Okinawan
people, and the question of safety or the removal of danger. The
government and the ruling parties have set up an examination
committee. While local leaders and legislators have been expressing
their views, the committee will examine this issue from scratch. I
have said that the result of the mayoral election is indeed a
manifestation of popular will, and we will have to seek the
understanding of the affected local governments and officials.

TOKYO 00000178 006 OF 009

Yamaguchi: It will not do if the relocation site of the Futenma base
remains uncertain and a decision is put off. How do you propose to
make a decision by May?

Hirano: The instruction from the Prime Minister is for us to decide
on a relocation site, including consultations between Japan and the
U.S., by May. Needless to say, this process will involve the
Ministerial Committee on Basic Policies and a cabinet resolution,
through which a government decision will be made.

Yamaguchi: Do you mean that you will arrive at a solution that Japan
and the U.S. can agree to by the end of May?

Prime Minister Yukio Hatoyama: That's right.

Yamaguchi: If you fail to do so, this will affect the fate of the
cabinet. Are you determined to stake the fate of the administration
on achieving this?

Hatoyama: Please understand that we will definitely arrive at a
conclusion by the end of May.

Three non-nuclear principles

Yamaguchi: The three non-nuclear principles should be upheld.

Hatoyama: We have upheld the three non-nuclear principles because
Japan is the only atomic-bombed country. We will continue to make
these principles, including the non-introduction of nuclear arms,
universally known. We will continue to uphold the three non-nuclear
principles.

Three principles on arms exports

Yamaguchi: Defense Minister Toshimi Kitazawa mentioned a review of
the three principles on arms exports during an exchange of views
with the executives of defense-related companies on Jan. 12.

Defense Minister Toshimi Kitazawa: These are important basic
principles for the prevention of international conflicts. At the
extraordinary Diet session last year, the government expressed its
intent to continue to follow them. I had a meaningful discussion on
how to maintain the production and technology base while adhering to
these principles. I mentioned the review as a topic for discussion.
The statement did not mean that we will no longer follow these
principles or that we will revise them.

Yamaguchi: (Japan) needs to continue to adhere to these principles.

Hatoyama: Japan pledged in its constitution never to wage a war
again. We have adhered to the three principles on arms exports so
far because we believe that we need to be very strict about the
export of weapons. We will continue to follow these principles
because the export of arms needs to be handled with extreme
caution.

Haiti earthquake

Yamaguchi: It is necessary to ensure the safety of the Self-Defense
Forces (SDF) to be dispatched for peacekeeping operations (PKO) in
Haiti.

TOKYO 00000178 007 OF 009

Okada: It is true that there are problems with the security
situation in Haiti, but the government there is functioning
properly. We do not think that any conflict has occurred.

Hatoyama: While there is social disturbance (in Haiti), there is no
armed conflict. We need to take every possible measure to ensure
safety. If the five principles (which are the conditions for
dispatching the SDF) are no longer met, the SDF will return home.
They will operate while closely watching the safety situation.

14) Prosecutors forgo re-questioning of Ozawa

NIKKEI (Page 1) (Excerpts)
January 28, 2010

In connection with the political fund scandal involving Democratic
Party of Japan (DPJ) Secretary General Ichiro Ozawa's fund
management body, Rikuzankai, over a shady land purchase, the special
investigation squad of the Tokyo District Public Prosecutors Office
decided yesterday to forgo questioning Ozawa again, according to
informed sources. Prosecutors have apparently judged that they have
accomplished their objective of questioning him on a voluntary basis
with the formulation of a written statement on the hearing conducted
on Jan. 23, although there were several questionable points in his
deposition. Prosecutors will apparently continue questioning those
involved and then make a final judgment on whether to file charges
against Ozawa.

15) Japan's exports to China top those to U.S. in 2009

SANKEI (Page 11) (Excerpts)
January 28, 2010

Japan's exports to China, excluding Hong Kong, came to 10.2301
trillion yen, topping those to the U.S. (8.7446 trillion yen) for
the first time in the post-war period, the preliminary trade
statistics (customs-cleared basis) for 2009 released on Jan. 27 by
the Finance Ministry showed. China is now Japan's top import
partner. The report underscored the brisk purchasing power of China,
which is already on a V-shaped recovery track in contrast to the
U.S., which is markedly slow to recover from the financial crisis.

Total exports in December 2009 reached 5.4128 trillion yen, up 12.1
percent from the same month a year earlier, moving into the plus
column after a hiatus of 15 months since the Lehman shock in
September 2008. Exports to China, which showed a 42.8 percent
increase, served as the driving force for the upturn. The trend
underscored the tendency of Japan's trade becoming increasingly
dependent on China.

Trade surplus determined by deducting total imports from total
exports stood at 545.3 billion yen in December, marking the eleventh
surplus in a row.

16) JAL to ink deal with Delta

MAINICHI (Page 2) (Excerpts)
January 28, 2010

Japan Airlines on Jan. 27 decided to tie up with Delta Air Lines,
the world's largest carrier, and switch international airline groups

TOKYO 00000178 008 OF 009


from OneWorld to SkyTeam. American Airlines, a key member of
OneWorld, had also proposed strengthening its ties with JAL.
However, JAL has determined that a business alliance with Delta
would produce greater benefits. Kazuo Inamori, who is set to become
JAL's chairman, will announce the decision as early as Feb. 1.

JAL plans to apply for antitrust immunity status (ATI) under the
antimonopoly law with the Japanese and U.S. government by the end of
February. It will also look into establishing flight routes between
Narita and Detroit and between Haneda and Amsterdam with an eye on
strengthening its operation network.

17) Rare metal exchange-traded funds

NIKKEI (Page 1) (Excerpts)
January 28, 2010

The Tokyo Stock Exchange plans to approve trading by exchange-traded
funds that invest in rare metals, materials that are essential to
the production of next-generation vehicles or electronic equipment.
It has determined that there are needs among individual and
institutional investors for investment in rare metals, whose prices
are showing an upward trend, reflecting a global increase in demand.
It will aim at listing the first such fund before year's end, after
revising the listing regulation.

Rare metal exchange-traded funds are designed to produce the same
effect as that investors achieve when actually investing in rare
metals. Securities houses will collect investment money from
investors and invest in rare metals owned by trading houses.

18) Poll: Cabinet support at 45 PERCENT , nonsupport at 47 PERCENT

NIKKEI (Page 1) (Abridged)
January 28, 2010

The Nihon Keizai Shimbun and TV Tokyo jointly conducted a spot
opinion poll on Jan. 26-27, in which the public approval rating for
Prime Minister Yukio Hatoyama's cabinet was 45 PERCENT , down 5
percentage points from the previous poll conducted last December.
Meanwhile, the disapproval rating for the Hatoyama cabinet rose 5
points to 47 PERCENT . The Hatoyama cabinet's nonsupport rate topped
its support rate for the first time since it came into office. In
the spot poll, 65 PERCENT of respondents said ruling Democratic
Party of Japan Secretary General Ichiro Ozawa, whose former
secretaries have been arrested on the charge of violating the
Political Funds Control Law, should resign from his party post, with
only 22 PERCENT saying he should stay in his post.

The Hatoyama cabinet's inaugural rating in the survey conducted last
September right after its debut was 75 PERCENT , marking the second
highest level among cabinets. Four months later, however, the figure
dropped 30 points. This seems to reflect the "politics-and-money
problems" of DPJ leaders, such as Hatoyama's falsified reports on
political funds and Ozawa's land purchase with political funds, and
mirror the Hatoyama cabinet's flip-flopping over the issue of
relocating the U.S. military's Futenma airfield facility in Okinawa
Prefecture.

19) Poll: 67 PERCENT concerned about Japan-U.S. ties, up 12 points

NIKKEI (Page 1) (Full)

TOKYO 00000178 009 OF 009


January 28, 2010

In the latest joint poll conducted by the Nihon Keizai Shimbun and
TV Tokyo, 67 PERCENT of respondents said they were concerned about
the current state of Japan-U.S. relations, markedly up from 55
PERCENT in the last poll conducted last November. Meanwhile, 21
PERCENT said the bilateral relationship remains unchanged, with
only 2 PERCENT saying the two countries are getting along well. The
Hatoyama administration, since coming into office, has been
flip-flopping over the issue of relocating the Futenma base in
Okinawa Prefecture, and this is apparently reflected in the poll.

Among those concerned about Japan-U.S. relations, "somewhat"
accounted for 47 PERCENT and "very" for 20 PERCENT . Among those
who support the Hatoyama cabinet, 56 PERCENT were concerned about
Japan-U.S. relations, with 32 PERCENT saying Japan-U.S. relations
remain unchanged and only 4 PERCENT saying the two countries are
getting along well.

In the breakdown of those concerned about Japan-U.S. relations, the
proportion of those in their 20s to 30s was around 60 PERCENT , but
the proportion of those in their 40s and that of those in their 60s
were around 70 PERCENT and those in their 50s accounted for 78
PERCENT .

ROOS

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