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Cablegate: Japanese Morning Press Highlights 01/08/10

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ZNR UUUUU ZZH
P 080115Z JAN 10
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//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHKSO/AMCONSUL SAPPORO 8717
RUEHBJ/AMEMBASSY BEIJING 2552
RUEHUL/AMEMBASSY SEOUL 9217
RUCNDT/USMISSION USUN NEW YORK 8641

UNCLAS SECTION 01 OF 07 TOKYO 000043

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 01/08/10

INDEX:

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

Defense & security:
4) Prime Minister Hatoyama: Futenma conclusion might be reached
before May (Nikkei)
5) U.S. Army staff sergeant, suspect in hit-and-run incident in
Okinawa, handed over to Japanese police (Tokyo Shimbun)
6) Okinawa governor seeks SOFA revision in connection with
indictment of U.S. Army soldier in hit-and-run incident (Tokyo
Shimbun)

Foreign relations:
7) Hirano says PM will not visit Nanjing (Sankei)
8) Japanese, U.S. foreign ministers to meet in Hawaii on Jan. 12
(Sankei)
9) Japan protests to New Zealand Govt. over collision involving
whaling patrol ship (Sankei)
10) Ozawa focus of attention in U.S. (Sankei)

Politics:
11) 14 prefectural assemblies opposed to enfranchising permanent
foreign residents (Asahi)
12) Nakasone advises Tanigaki that ties between politics and money
are a powerful weapon (Yomiuri)

Economy:
13) Finance Minister Kan urges lower yen (Tokyo Shimbun)
14) Govt. to decide legal liquidation of JAL (Yomiuri)
15) Delta prepared to provide aid for legal liquidation of JAL
(Nikkei)

Environment:
16) Government presents draft report on common global target to
increase biodiversity by 2050 (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
14 prefectural assemblies opposed to local suffrage for permanent
foreign residents

Mainichi:
DPJ gave 2.2 billion yen to two lawmakers in charge of accounting
under Ozawa's leadership

Yomiuri:
Government to adopt legal liquidation plan for JAL

Nikkei:
Chipmakers earn profits owing to recovering demand

Sankei & Tokyo Shimbun
Finance Minister Kan calls for weaker yen, unusual intervention
boosts sales

Akahata:

TOKYO 00000043 002 OF 007


Government reflects on Services and Supports for Persons with
Disabilities Law

2) EDITORIALS

Asahi:
(1) Finance Minister Kan should exert leadership for fiscal
reconstruction
(2) Human rights in China: People must not be victimized by economic
growth

Mainichi:
(1) Ozawa should give explanation about land transactions
(2) JAL reconstruction must be premised on public understanding

Yomiuri:
(1) Ozawa should clarify truth on land deal scandal
(2) Help needed for foreign nurses to overcome kanji hurdle

Nikkei:
(1) Banks urged to increase capital and make structural reforms
(2) Ozawa should give explanation to public on land deal scandal

Sankei:
(1) Strict measures needed to prevent illegal acts of obstruction to
research whaling
(2) Security situation in Yemen: Face up to reality of terrorism

Tokyo Shimbun:
(1) Society should offer child-rearing support

Akahata:
(1) U.S. response to al-Qaeda: Review military retaliation strategy

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 7

NIKKEI (Page 2) (Full)
January 8, 2010

10:45 Met House of Representatives member Koichiro Ichimura at the
Prime Minister's Official Residence (Kantei)
11:06 Met incoming and outgoing Supreme Court justices Masahiko
Sudo, Tatsuo Kainaka, and others
13:01 Presented letters of appointment to Finance Minister Naoto
Kan, National Strategy Minister Yoshito Sengoku, and State Minister
for Science & Technology Tatsuo Kawabata; Chief Cabinet Secretary
Hirofumi Hirano also present
14:00 Met Cabinet Intelligence Director Hideshi Mitani; followed by
Deputy Chief Cabinet Secretary Kinya Takino
15:00 Met Nippon Keidanren Honorary Chairman Jiro Nemoto
16:13 Met State Minister for Declining Birthrate Mizuho Fukushima;
followed by former Deputy Foreign Minister Hitoshi Tanaka
18:10 Met Editorial Engineering Laboratory President Seigo Matsuoka
and Deputy Chief Cabinet Secretary Koji Matsui at official
residential quarters
20:11 Dined with secretaries and others at Chinese restaurant in
Nagata-cho Tameikesanno Heichinrou
21:31 Talked to astronaut Soichi Noguchi, currently staying at
International Space Station, from the Kantei
22:03 Arrived at his official residential quarters

TOKYO 00000043 003 OF 007

4) Prime Minister Hatoyama: Futenma conclusion might be reached
before May

NIKKEI (Page 2) (Full)
January 8, 2010

Prime Minister Yukio Hatoyama yesterday commented on the issue of
relocating the U.S. Marine Corps' Futenma Air Station, "It would be
desirable for the issue to be resolved as quickly as possible. We
are making efforts to that end, and a study committee with members
from the government and ruling parties has been launched. It is now
moving forward at a fast pace," indicating the possibility that his
government will reach a conclusion before May, which has been set as
the deadline.

5) U.S. Army staff sergeant, suspect in hit-and-run incident in
Okinawa, handed over to Japanese police

TOKYO SHIMBUN (Page 27) (Abridged)
January 8, 2010

In connection with the fatal hit-and-run incident in Yomitan
Village, Okinawa, U.S. Army staff sergeant Clyde Gunn, 27, from the
Torii Communication Station (in Yomitan), who on Jan. 7 was indicted
by the Naha District Prosecutors Office for negligent driving
resulting in death, was handed over to the Japanese authorities in
accordance with the Japan-U.S. Status of Forces Agreement on the
same day.

The indictment was processed at unusual speed, taking only three
days after papers on Gunn were sent to the prosecutors office. With
Gunn handed over to the Japanese side, the Okinawa Prefectural
Police will also proceed with investigations to arrest him on the
charge of violating the Road Traffic Law (hit-and-run).

According to his lawyer, Gunn said: "The windshield of my car
suddenly broke when I was driving. I got out of the car to check but
there was nothing. I did not think that I hit somebody. If I really
hit the man, I would like to apologize to the bereaved family."

6) Okinawa governor seeks SOFA review in connection with indictment
of U.S. Army soldier in hit-and-run incident

TOKYO SHIMBUN (Page 27) (Full)
January 8, 2010

In connection with the indictment of a U.S. Army soldier for
negligent driving resulting in death, Okinawa Governor Hirokazu
Nakaima made the following remarks: "There are issues in the
operation of the Japan-U.S. Status of Forces Agreement (SOFA) with
regard to unexpected situations relating to interrogation and other
matters during the investigation phase. I strongly demand a review
of SOFA from the Japanese and U.S. governments."

7) Hirano denies possibility of visit to Beijing by Hatoyama

SANKEI (Page 5) (Full)
January 8, 2010

Several news agencies have reported that the Chinese government has
unofficially proposed a visit to Beijing by Prime Minister Yukio

TOKYO 00000043 004 OF 007


Hatoyama and a tour of Hiroshima by Chinese President Hu Jintao.
Concerning these reports, Chief Cabinet Secretary Hirofumi Hirano
said at a press conference yesterday: "I am aware of the reports,
but I don't believe there is any truth to them." In reference to the
possibility of Hatoyama visiting Beijing, he remarked: "At present,
we are not considering that possibility at all."

8) Japan-U.S. foreign ministerial to take place in Hawaii on Jan.
12

SANKEI (Page 5) (Full)
January 8, 2010

It was learned yesterday that the governments of Japan and the
United States are now in the final stages of coordinating a foreign
ministerial meeting on Jan. 12 in Hawaii to discuss such issues as
the relocation of U.S. Marine Corps Air Station Futenma (in Ginowan
City, Okinawa Prefecture). Foreign Minister Katsuya Okada and
Secretary of State Hillary Clinton are expected to confirm that
Tokyo and Washington will start talks aimed at deepening the
bilateral alliance on the occasion of the 50th anniversary of the
revision of the U.S.-Japan Security Treaty without waiting for the
Futenma relocation issue to be resolved.

9) Chief Cabinet Secretary Hirano: Japanese government complains to
New Zealand government over whaling vessel collision

SANKEI (Page 2) (Full)
January 8, 2010

In connection with the collision between a Japanese whaling fleet
vessel and a protest boat operated by the U.S.'s Sea Shepherd
anti-whaling group, which advocates environmental protection, Chief
Cabinet Secretary Hirofumi Hirano stated yesterday at a press
conference, "The Japanese government feels it is extremely
regrettable."

Hirano then said, "We strongly demanded that incidents of this
nature are not to occur again," revealing that the Japanese
government lodged a stern complaint to the New Zealand government
because the protest boat, which was disrupting the whaling vessel's
operations, is registered in New Zealand.

Hirano also expressed strong concern, saying, "Although the
collision occurred (this time), we have complained repeatedly."

10) U.S. interest focused on DPJ's Ozawa during visit of LDP policy
chief Ishiba

SANKEI (Page 3) (Abridged)
January 8, 2010

Rui Sasaki in Washington

Liberal Democratic Party (LDP) Policy Research Council Chairman
Shigeru Ishiba, who is on a visit to the United States, met National
Security Council Senior Director for Asia Jeffrey Bader, Assistant
Secretary of State Kurt Campbell, and Assistant Secretary of Defense
Wallace Gregson on Jan. 6. There was a consensus on the importance
of the Japan-U.S. alliance at these meetings. However, the focus of
U.S. interest in the meetings was what sort of person is Democratic
Party of Japan (DPJ) Secretary General Ichiro Ozawa and what is he

TOKYO 00000043 005 OF 007


thinking. This reflected the fact that the U.S. government is
genuinely "very nervous" (according to a LDP Diet member
accompanying Ishiba) about the issue of the relocation of the U.S.
forces' Futenma Air Station (in Ginowan City, Okinawa).

At the meetings with Ishiba on Jan. 6, the U.S. side repeatedly
stressed that there is no other option than the current relocation
plan, which involves the construction of a replacement facility in
the coastal area of Camp Schwab in Nago City, Okinawa, since this
was "a conclusion drawn after examining many options."

Commenting on Prime Minister Yukio Hatoyama's decision to defer a
conclusion on the relocation site to May, Gregson pointed out that
"any further delay will make it even more difficult to reach a
solution." He also said, "It is regrettable that the talks on
deepening the Japan-U.S. alliance (agreed upon at the Japan-U.S.
summit last November) have not started," indicating his concern that
the bilateral alliance relationship is not growing deeper, but has
even stagnated.

According to an informed source accompanying Ishiba, many people on
the U.S. side, not just senior government officials, but also think
tank officials, asked questions about the extent of Ozawa's
influence in the administration and the ruling parties and what sort
of political ideals and policies he embraces because "Mr. Ozawa
holds the power of life and death over the Hatoyama
administration."

In response, Ishiba reportedly related to the U.S. officials Ozawa's
statement that "the U.S. Navy's Seventh Fleet is sufficient" for the
defense of Japan and his statement emphasizing the importance of the
United Nations.

The U.S. government is now taking active steps in reaction to moves
on the Japanese side, both in the government and the ruling and
opposition parties.

11) 14 prefectural assemblies opposed to local suffrage for foreign
residents

ASAHI (Top Play) (Lead paragraph)
January 8, 2010

Of the 47 prefectures, 14 prefectural assemblies have adopted
opinion papers opposing the planned legislation of voting rights for
permanent foreign residents since the change of government last
year, according to an investigation by the Asahi Shimbun. Of the 14
assemblies, seven had adopted opinion papers supporting the plan in
the past. The papers were produced mainly by their Liberal
Democratic Party prefectural federations. They apparently are aiming
to underscore the differences between their policies and those of
the Democratic Party of Japan, bearing in mind the upcoming House of
Councillors election this summer and the nationwide local elections
in the spring of next year.

12) Nakasone advises Tanigaki: "Politics-and-money scandals can be
effective ammunition to attack government"

YOMIURI (Page 4) (Full)
January 8, 2010

Liberal Democratic Party President Sadakazu Tanigaki yesterday

TOKYO 00000043 006 OF 007


called on three party heavyweights who once served as prime
minister, including Yasuhiro Nakasone, to extend his sincere wishes
for a Happy New Year. In the meetings, he expressed his
determination to launch a counterattack against the government to
turn around the situation, saying: "I am determined to go into the
ordinary Diet session with all my energy and grit."

In response, Nakasone advised him that a series of
politics-and-money scandals, including Prime Minister Yukio
Hatoyama's false donation statements, could be powerful ammunition
to attack the government.

Former Prime Minister Yasuo Fukuda cited some contradictions in the
Democratic Party of Japan's campaign pledges and the fiscal 2010
budget bill, as well as the issue of relocating the U.S. Marine
Corps' Futenma Air Station, and then said: "Everything will depend
on deliberations at the Budget Committee. I hope you will prepare a
detailed strategy and thoroughly grill the government." Former Prime
Minister Toshiki Kaifu also encouraged Tanigaki to exert his
political influence in Diet debates.

13) Finance Minister Kan calls for weaker yen

TOKYO SHIMBUN (Top play) (Excerpts)
January 8, 2010

Referring to the current yen exchange rate against the dollar,
Finance Minister Naoto Kan said on Jan. 7 during his first press
conference since taking office, "I hope to see the yen become a
little weaker. Many business leaders say that the appropriate level
would be in the mid-90s (against the dollar)." He continued, "I will
make efforts along with the Bank of Japan (BOJ) to ensure
appropriate yen exchange rates, while taking into account the impact
of the exchange rate on the Japanese economy."

Finance ministers, who are charge of currency policy, are usually
cautious about making statements on exchange rates because of the
impact such statements have on the market. It appears that he made
that statement taking into account export-oriented industries, which
are suffering due to the strong yen. However, it is unusual for a
finance minister to make a "verbal intervention" by referring to a
specific level for the desired exchange rate.

Kan also indicated his eagerness to carry out budgetary reforms, an
issue which he has been addressing since he was state minister for
national policy. He said, "I would like to boost the transparency of
budget implementation so that we can determine whether the budget is
benefiting the people."

14) Government eyes legal liquidation for JAL'S reconstruction

YOMIURI (Top play) (Excerpts)
January 8, 2010

Regarding the reconstruction of Japan Airlines (JAL), the government
on Jan. 7 entered final coordination of views with the possibility
of adopting a legal liquidation-based reconstruction plan proposed
by Enterprise Turnaround Initiative Corporation (ETIC). The process
involves JAL filing a petition for protection with the court under
the Corporate Rehabilitation Law this month and ETIC formally
placing the carrier under its control, after deciding to extend
finance assistance to it. Concerned cabinet ministers, such as

TOKYO 00000043 007 OF 007


Finance Minister Kan and Transport Minister Maehara, will likely
confer on the issue as early as this weekend and decide on the
government's stance. The JAL reconstruction, which has suffered a
number of setbacks since the launch of the Hatoyama administration
in September last year, has now entered its most crucial stage.

Concerning the method of reconstructing JAL, there has been ongoing
confrontation between ETIC, which has been calling for legal
liquidation on one side, and JAL and its three mega banks on the
other. Since there is a strong possibility that a massive amount of
public money will be injected into JAL through ETIC in the
reconstruction process, the government is leaning toward deciding
that it would be appropriate to ensure transparency through the
involvement of the courts.

15) "We will extend financial assistance to JAL, even if it becomes
subject to legal liquidation," says Delta Air Lines president

NIKKEI (Page 9) (Full)
January 8, 2010

President Edward Bastian of Delta Air Lines, an airline carrier that
is seeking a business tie-up with Japan Airlines (JAL), on Jan. 7
held in Tokyo a press conference at which he said that in spite of
the method of its reconstruction, his company is ready to extend
financial assistance to JAL totaling over 1 billion dollars. He
said, "Even if JAL becomes subject to legal liquidation, we will
assist it."

The Japanese and U.S governments in December last year reached an
agreement to sign an "open skies" agreement. Whether the two
carriers can obtain antitrust immunity (ATI) status is of intense
interest because of the high share of Japan-U.S. routes they would
command after forming a business alliance. Bastian repeated an
earlier view, saying, "The U.S. government has granted ATI to
companies with even higher shares."

In November last year JAL President Haruka Nishimatsu said during a
press conference on JAL's financial results, "I would like to choose
our business partner swiftly." However, he has not yet made a
decision, because the method of JAL's reconstruction is still up in
the air.

16) Government presents draft report on common global target to
increase biodiversity by 2050

YOMIURI (Page 2) (Excerpt)
January 8, 2010

With an eye on the 10th Conference of the Parties to the Convention
on Biological Diversity (COP10) scheduled for October in Nagoya, the
government submitted a draft report on common global targets from
2010 to the Secretariat of the conference on Jan. 6, the Environment
Ministry disclosed yesterday. Focusing on the continuing loss of
biodiversity for such reasons as development and the introduction of
foreign species, the draft notes: "There should be richer diversity
of species by 2050 than there is now."

ROOS

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