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Cablegate: Japanese Morning Press Highlights 01/13/10

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UNCLAS SECTION 01 OF 09 TOKYO 000074

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 01/13/10

INDEX:

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

U.S.-Japan relations:
4) Foreign Minister Okada to U.S. Pacific Command Deputy Commander
Darnell: Decision on Futenma facility replacement site to be made by
May (Mainichi)
5) Visits to candidate sites for Futenma replacement facility elicit
backlash complicating issue (Tokyo Shimbun)
6) Panel reviewing Okinawa base issue acknowledges gap between
government and prefecture (Mainichi)
7) U.S. Embassy minister-counselor negative on reconsidering Futenma
relocation proposals already examined in the past (Mainichi)

Defense & security:
8) PM rebuts Defense Minister's calls for review of weapon export
ban (Nikkei)
9) U.S. military personnel sent to SDF's core units for weapons
control, instruction (Tokyo Shimbun)
10) Yonaguni mayor asks for troop garrisoning (Mainichi)

Economy:
11) JAL subsidiaries to be sold, resources to be focused on flight
service (Mainichi)
12) Number of foreign visitors dropped 17 PERCENT in 2009 (Nikkei)


Environment
13) PM holds phone conference on climate change with UN Secretary
General (Yomiuri)

Politics:
14) LDP to review new constitution draft (Yomiuri)
15) Nakai to assume disaster prevention portfolio (Asahi)
16) Kan remains in charge of growth strategy (Nikkei)
17) Former Upper House member Jiro Ono resigns from LDP (Nikkei)
18) LDP parliamentary group submits three lawmakers' letters of
secession from party (Asahi)

Articles:

1) TOP HEADLINES

Asahi: Yomiuri: Nikkei: Tokyo Shimbun
Two-thirds of retired JAL employees agree to reduced pension
payments

Sankei:
DPJ Secretary General Ozawa's fund management organization's land
purchase issue: Amount in case involving lawmaker Ishikawa to reach
400 million yen

Mainichi:
Core JAL operations to be split up to create new entity, according
to ETIC draft plan

Akahata:
1995 earthquake in Osaka-Kobe area: Emotional recovery not yet
complete

TOKYO 00000074 002 OF 009

2) EDITORIALS

Asahi:
(1) DPJ: Accountability of influential secretary general
(2) Launch of Japan pension organization: Trust in organization
should be restored by recovering rate of payment

Mainichi:
(1) Secretary General Ozawa's press conference: Did he abdicate his
responsibility to provide an explanation?
(2) Dangerous intention seen in North Korea's announcement

Yomiuri:
(1) Trial by lay judges: This year is crucial for establishment of
lay judge system
(2) Obstruction of research whaling

Nikkei:
(1) Hatoyama administration's IT strategy is absent
(2) Kan urged to come up with solid economic policy

Sankei:
(1) Granting local suffrage to permanent foreign residents is an
issue of sovereignty rather than a diplomatic consideration
(2) JAL turnaround: Carrier should thrust aside the perception that
the government will foot the bill

Tokyo Shimbun:
(1) Compensation for transportation costs abolished in Nagoya city:
Assemblies of other municipalities need review
(2) Peace accord proposal: North Korea's denuclearization should
come first

Akahata:
(1) Spring labor offensive in 2010: Find breakthrough in crisis
through national cooperation

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 12

NIKKEI (Page 2) (Full)
January 13, 2010

10:00 Met journalist Soichiro Tawara at the Prime Minister's
Official Residence. Later met Ritsumeikan University President
Kiyofumi Kawaguchi, with Foreign Ministry Asian and Oceania Bureau
Director General Saiki present.
11:45 Received a call from UN Secretary General Ban Ki-moon, with
Senior Vice Minister Fukuyama present.
12:51 Attended a meeting of the Government Revitalization Unit.
14:02 Attended a cabinet meeting.
16:22 Issued a letter of appointment to State Minister for Disaster
Prevention Nakai, with Chief Cabinet Secretary Hirano present. Later
met Economy, Trade and Industry Minister Naoshima, followed by
Environment Minister Ozawa.
18:10 Met Finance Minister Kan and Hirano.
19:47 Met Hirano.
20:13 Returned to his official residential quarters.

4) Okada meets U.S. military brass over Futenma issue

TOKYO 00000074 003 OF 009

MAINICHI (Page 3) (Full)
January 13, 2009

Takenori Noguchi

HONOLULU-Foreign Minister Katsuya Okada visited the U.S. Pacific
Command, or PACOM for short, which commands U.S. Forces Japan, at
its Hawaii headquarters on the afternoon of Jan. 11 (on the morning
of Jan. 12, Japan time) and met with PACOM Deputy Commander Darnell.
In the meeting, Okada reiterated that the Japanese government would
like to reach a conclusion by May on the pending issue of relocating
the U.S. military's Futenma airfield in Ginowan, Okinawa
Prefecture.

"This year marks the 50th anniversary of the revision of the
Security Treaty," Okada said, "and we would like to deepen our
bilateral security alliance." Darnell said, "Our deployment in the
West Pacific region is critical for peace and stability in the
region." He added, "It's important to continue developing our
bilateral security posture further."

5) Futenma relocation: Government, ruling coalition creating
commotion in local communities

TOKYO SHIMBUN (Page 2) (Slightly abridged)
January 13, 2010

Koki Miura

Efforts by the government and ruling parties to look for relocation
sites for the U.S. Marine Corps' Futenma Air Station (in Ginowan
City, Okinawa Prefecture) are now creating a backlash in various
regions. Chief Cabinet Secretary Hirofumi Hirano, the Social
Democratic Party (SDP), and the People's New Party (PNP) have been
rushing here and there trying to find a replacement site, but their
moves are provoking strong reactions from localities where they made
on-site inspections, further complicating the issue.

Kantoku Teruya, a House of Representative member of the SDP, met
yesterday with Takashi Omura, mayor of Omura City in Nagasaki
Prefecture. He broached the intended subject of his conversation,
saying, "What will you do if the government asks your city to
shoulder part of the burden of U.S. military bases now borne by the
people of Okinawa?"

The PNP and Ukeru Magosaki, a member of Prime Minister Yukio
Hatoyama's private study group and former director general of the
Foreign Ministry's Intelligence and Analysis Service, have proposed
the Maritime Self-Defense Force' base in Omura City as a relocation
site, pointing out that Omura is near the Korean Peninsula and U.S.
Fleet Activities Sasebo. Mayor Matsumoto said, however, "We can't
stand the noise problem," indicating that his city cannot offer a
relocation site.

Meanwhile, on Shimoji Island (in the city of Miyakojima, Okinawa
Prefecture) and Ie Island (in the village of Ie), which Hirano
inspected from the air, the city and village councils intend to
adopt their respective resolutions opposing the relocation. On
Shimoji Island, residents protested against the relocation, putting
up banners reading "We will not allow use by the military!"


TOKYO 00000074 004 OF 009


Japan and the United States have agreed to relocate about 8,000 U.S.
Marines from Okinawa to Guam. U.S. Congresswoman Madeleine Bordallo,
delegate from Guam (Democrat), stressed in her statement on Jan. 11
that it is important for Guam to implement quickly the existing
relocation plan. She insisted that the existing plan should be
executed as is.

The SDP plans to send a fact-finding mission to Guam late this
month, but it will be difficult to secure local understanding for
the idea of relocating all Futenma heliport factions to Guam.

Some SDP members have expressed concern, with one member saying,
"Our idea might lead to exporting the Okinawa problem."

6) Ministry of Defense changes tack, says Okinawa did not "fully"
agree to current Futenma relocation plan

MAINICHI (Page 5) (Full)
January 13, 2010

Shinichiro Nishida

The third meeting of the government and the ruling parties' panel
for examining the base issues in Okinawa, which is studying the
relocation site for the U.S. forces' Futenma Air Station (in Ginowan
City, Okinawa), was held at the Prime Minister's Official Residence
on Jan. 12. The Ministry of Defense (MOD) indicated at the meeting
that "the government and Okinawa did not reach full agreement" on
the current plan to relocate the Futenma base to the coastal area of
Camp Schwab (in Henoko, Nago City).

This, in effect, changes the position adopted under the Liberal
Democratic Party-New Komeito administration that based on the "basic
confirmation on the realignment of U.S. forces in Okinawa" signed
with Okinawa in 2006, Okinawa had "agreed." It also shows
understanding for Okinawa's position that the relocation plan was
formulated "over its head." The MOD admitted that based on a close
examination of the subsequent statements made by then Governor
Keiichi Inamine, who signed the confirmation document, and Governor
Hirokazu Nakaima, Okinawa "did not fully agree."

7) U.S. minister-counselor negative on reconsidering Futenma
relocation proposals already examined in the past

MAINICHI (Page 5) (Full)
January 13, 2010

Hiroyuki Asahi

Minister-counselor Robert Luke of the U.S. Embassy in Japan met with
People's New Party policy chief Mikio Shimoji at the party
headquarters on Jan. 12. With regard to the relocation site for the
U.S. forces' Futenma Air Station, he said: "If proposals that have
been examined before come up, we will not examine them all over
again. We will consider only new proposals that have not been
reported on." There has been media reporting on several possible
relocation sites, including Shimoji Island in Okinawa. It is
believed that Luke also indicated a negative view on these
proposals.

8) MD Kitazawa positive on reviewing three principles on arms
exports, PM Hatoyama negative

TOKYO 00000074 005 OF 009

NIKKEI (Page 2) (Full)
January 13, 2010

Defense Minister Toshimi Kitazawa commented on the three principles
on arms exports at a New Year's party of the defense industry in
Tokyo on Jan. 12. He said: "It is probably time to review the basic
thinking," indicating a positive view on reviewing the three
principles. However, Prime Minister Yukio Hatoyama negated this
straight away, telling reporters: "The three principles must be
upheld. (The defense minister) spoke a little carelessly."

The three principles on arms exports originated in 1967 when (then)
Prime Minister Eisaku Sato announced a ban on arms exports to: (1)
countries of the communist bloc; (2) countries banned by UN
resolutions; and (3) parties involved in an international conflict.
In 1976, Prime Minister Takeo Miki ordered "restraint" also on arms
exports to other regions. A "complete ban" on exports of all arms
and weapon technology became the government's official position.
Under the Koizumi administration, joint development and production
of missile defense (MD) systems was treated as an exception.

9) U.S. military personnel sent to SDF's core units for weapons
control, instruction

TOKYO SHIMBUN (Page 1) (Abridged)
January 13, 2009

An annual total of more than 100 U.S. military personnel have been
sent to the Self-Defense Forces' garrisons or bases throughout the
country for the maintenance and control of U.S.-made weapons, the
Defense Ministry has revealed. In fiscal 2008, there were 41 cases,
with 159 U.S. servicemen entering SDF facilities. The SDF is unable
to use its mainstay weapons like Aegis-equipped destroyers and
aircraft without support from the U.S. military, and this is one of
the reasons why the SDF has been increasingly depending on the
United States.

The U.S. military sends its personnel to SDF bases in connection
with its foreign military sales, or FMS, which is a system based on
the Japan-U.S. Mutual Defense Assistance Agreement and is intended
for the Japanese government to buy highly secret U.S.-developed
weapons direct from the U.S. government.

According to the Defense Ministry, the Maritime Self-Defense Force
received maintenance and control services from a total of 90 U.S.
military personnel for 17 cases, outnumbering the Ground and Air
Self-Defense Forces. For technical assistance to Aegis destroyers, a
total of 45 U.S. military personnel went aboard the Kirishima in
Yokosuka, Kanagawa Prefecture, and the Kongo in Sasebo, Nagasaki
Prefecture.

Meanwhile, a group of 18 U.S. military personnel embarked on a
general-purpose MSDF destroyer for training and conducted combat
training in its combat information center, or CIC, which is the
heart of a destroyer. Another MSDF destroyer and an MSDF training
support vessel embarked a total of 17 U.S. military personnel. Those
U.S. military personnel gave technical instruction in the Standard
Missile 2 (SM-2), a ship-to-air missile system.

The ASDF had 15 cases with 49 U.S. military personnel, who entered
ASDF facilities including the Fuchu base in Tokyo, where the ASDF

TOKYO 00000074 006 OF 009


locates the Air Defense Command as its general headquarters. In
addition, those U.S. military personnel also entered the Defense
Ministry's strictly controlled underground area of the Central
Command Post to provide technical assistance for the Japan Aerospace
Defense Ground Environment (JADGE) system, an advanced version of
the Base Air Defense Ground Environment (BADGE) system for air
defense warning.

The GSDF had two cases with seven U.S. military personnel. There is
an interesting fact. A group of five U.S. military servicemen toured
five GSDF garrisons, including the one at Hachinohe in Aomori
Prefecture, in order to check to see how the GSDF controls Stinger
missiles, which are used against U.S. military aircraft in
Afghanistan. "They're watching out for the outflow of weapons," a
GSDF staff officer said. This means that the U.S. military has
doubts even about Japan, and shows the U.S. military's sense of
crisis in Afghanistan.

10) Yonaguni mayor asks for troop garrisoning

MAINICHI (Page 3) (Full)
January 13, 2009

Yonaguni Town Mayor Shukichi Hokama from Japan's westernmost island
of Yonagunijima called on Defense Minister Toshimi Kitazawa
yesterday at the Defense Ministry. During the meeting, Hokama asked
Kitazawa to deploy Ground Self-Defense Force troops on his outlying
island. Kitazawa, meeting the press after a cabinet meeting
yesterday, went no further than to say: "I have told people in the
ministry that if they see the need (for deployment) they should come
up with a report. I know we should study this matter."

11) Core JAL operations to be split up to create new entity,
according to ETIC draft plan

MAINICHI (Top play) (Excerpts)
January 13, 2010

The draft of Japan's Airlines' turnaround plan prepared by
Enterprise Turnaround Initiative Corporation of Japan (ETIC), which
is helping the carrier reconstruct its management, was revealed on
Jan. 12. According to the draft, JAL will be transitioned into a new
company focusing on the aviation business, by selling off
subsidiaries operating businesses other than its core one, such as
hotel and travel businesses, to ensure early turnaround. The carrier
will also look into relocating its head office from Higashi
Shinagawa, Tokyo, to Haneda with an eye on the internationalization
of Haneda Airport. Group employees will slashed by 15,000. The
corporate pension fund will likely be kept intact.

According to the draft, loan claims on JAL concerning business
dealings, the frequent flyer program, and aircraft on lease will be
protected by a pre-package turnaround method of coordinating the
views of interested parties before the carrier files a petition for
protection under the Corporate Rehabilitation law.

The plan states that the turnaround body will point out that JAL's
negative net worth is about 860 billion yen and then agree to
increase capital injection by 300 billion yen, after securing the
company's cash flow with a sufficient credit line for bridge
financing by the Development Bank of Japan and the turnaround body.
JAL will then look into transitioning into a new firm (by splitting

TOKYO 00000074 007 OF 009


up its operations) to ensure early turnaround.

More than two-thirds of JAL employees, and retirees have agreed to
reduced pension payments. The corporate pension fund will be kept in
place. In the meantime, the plan notes a capital decrease policy,
noting that the responsibility of existing shareholders will be
clarified.

12) Foreign visitors drop 17 percent last year due to new flu, other
reasons

NIKKEI (Page 34) (Full)
January 13, 2010

According to calculations by the Immigration Bureau, the number of
foreigners who entered Japan in 2009 was approximately 7.58 million
(preliminary figure), down about 17.1 percent or roughly 1.56
million from the previous year.

This is the second consecutive decline. The decrease is the second
largest since the bureau started collecting statistics in 1950. The
Immigration Bureau said that people holding off on their travels due
to the global recession, the strong yen, and the outbreak of the new
influenza virus affected the results.

The number of Japanese who departed Japan in 2009 came to 15.45
million, down about 3.4 percent from the previous year, marking the
third consecutive decline.

13) Hatoyama talks with UN Secretary General over phone on climate
change

YOMIURI (Page 2) (Full)
January 13, 2010

Prime Minister Yukio Hatoyama held a telephone conversation with
United Nations Secretary General Ban Ki-moon yesterday. Ban
suggested establishing a high-level panel for persons who once
served as prime minister and others from the concerned countries to
discuss the design of a new protocol that sets new targets for
reducing greenhouse gas emissions, based on the Copenhagen Agreement
reached in the 15th session of the Conference of the Parties to the
UN Framework Convention on Climate Change. In response, Hatoyama
said: "I would like to offer cooperation in a positive manner."

14) LDP to draft second revised constitution, aiming to play up
policy difference from ruling camp with eye on Upper House election

YOMIURI (Page 2) (Full)
January 13, 2010

The Liberal Democratic Party (LDP) has decided to review "the new
revised constitution" it produced in 2005 and draft a second revised
constitution. The party's aim is to revive a stalled debate on
constitutional revision.

The LDP announced the draft text of a revised constitution on the
occasion of the 50th anniversary of its establishment. The party
produced the text of full-fledged constitutional revision for the
first time in the political world.

The LDP set up the headquarters for the promotion of constitutional

TOKYO 00000074 008 OF 009


revision (headed by former Policy Research Council chairman Kosuke
Hori) under the instruction of President Tanigaki in December 2009
and launched drafting a second revised constitution. Bearing in mind
the fact that the National Referendum Law, which provides for
procedures for constitutional revision, will take effect in May
2010, Tanigaki and panel members have judged it necessary to add
more substance to the party's original draft and publicize the new
one in order to spur momentum for debate on the revision of the
Constitution.

With the aim of producing the second draft before the year's end,
the LDP intends to examine all chapters in the original draft by
around the spring and then start tidying up the points at issue. A
party executive said: "The Democratic Party of Japan has not
earnestly discussed constitution revision because of the Social
Democratic Party's presence in the government, so we will be able to
underscore a difference in our stance from the other side's, with an
eye on the upcoming House of Councillors election."

In drafting a second revised constitution, the LDP focuses on local
autonomy, national security, and future options for the two-chamber
system. Regarding local autonomy, some have insisted on the need to
specify more detailed roles of the central government, based on the
state of progress in decentralization. On the security portion,
whether to stipulate the approval of the use of the right to
collective self-defense is expected to be the point of contention.
In discussing a review of the two-chamber system, the focus is
likely to be on reviews of the functions divided between the upper
and lower houses and the rules on deliberations on legislation.

15) Nakai to double as state minister for disaster management;
increase in number of senior vice-ministers and parliamentary
secretaries confirmed

ASAHI (Page 4) (Full)
January 13, 2010

The Hatoyama cabinet confirmed at its cabinet meeting yesterday a
policy direction to increase the number of senior vice-ministers by
three and the number of parliamentary secretaries by 12 with the aim
of strengthening the politician-led decision-making system. The
cabinet plans to implement the new system in the next fiscal year if
related bills clear the Diet in the upcoming regular session.

Specifically, the Cabinet Secretariat will have one more senior
vice-minister (who will double as deputy chief cabinet secretary and
as National Policy Unit chief) and the Cabinet Office will have two
more. The cabinet will also assign seven more parliamentary
secretaries to the Cabinet Office and one each to the Cabinet
Secretariat, Justice Ministry, Health and Welfare Ministry, Land and
Transport Ministry, and Environment Ministry.

The cabinet has also decided to make changes to the duties of some
cabinet ministers. Under the new system, National Public Safety
Commission Chairman Hiroshi Nakai will double as minister of state
for disaster management, a position concurrently held by Land and
Transport Minister Seiji Maehara. Although Deputy Prime Minister
Naoto Kan has left the post of state minister for national policy to
serve as finance minister, he will continue to be responsible for
the nation's growth strategy.

16) Kan continue to be responsible for growth strategy; Sengoku to

TOKYO 00000074 009 OF 009


be in charge of employment and global warming

NIKKEI (Page 2) (Full)
January 13, 2010

The government decided yesterday on new assignments for some cabinet
ministers due to Deputy Prime Minister Naoto Kan's assumption of
office as finance minister. Kan will continue to be in charge of
mapping out specific measures to achieve the government's growth
strategy of increasing the nation's nominal GDP to 650 trillion yen
in fiscal 2020. Yoshito Sengoku, who will serve as state minister
for national policy and administrative reform, will also
concurrently serve as state minister in charge of employment
measures and global warming to replace Kan. National Public Safety
Commission Chairman Hiroshi Nakai will concurrently serve as state
minister for disaster management, the post served by Land and
Transport Minister Seiji Maehara.

Although the national policy office will continue formulating
specific plans for the government's growth strategy, the work will
be kept under the control of Kan because his aides have been deeply
involved in the process. In a press conference yesterday, Kan made
the following comment about the medium-term fiscal framework that
envisages a multiple-year budget in FY 2011-2013: "Mr. Sengoku will
play a central role in determining the framework. I am going to work
closely with him." Kan thus expressed a plan to work jointly with
Sengoku.

17) Former Lower House member Ono to leave LDP

NIKKEI (Page 2) (Full)
January 13, 2010

Former House of Representatives member Jiro Ono of the Liberal
Democratic Party (LDP) submitted his resignation to Secretary
General Tadamori Oshima at the party headquarters on Jan. 12. He
told reporters: "I joined the party intending to build a political
party for reform. The present state of the LDP is very different
from this image."

18) LDP parliamentary group submits three lawmakers' letters of
secession from party

ASAHI (Page 4) (Full)
January 13, 2010

By Jan. 12, the Liberal Democratic Party/Japan Renaissance Party, a
parliamentary group in the House of Councillors, submitted to Upper
House President Satsuki Eda the letters of secession from the LDP
written by Kotaro Tamura, Tamon Hasegawa, and Gotaro Yoshimura. The
three lawmakers have now become independents. As a result, the
landscape of the Upper House now looks as follows:

Democratic Party of Japan/New Ryokufu-kai/People's New Party/New
Party Nippon - 120 seats; LDP/Japan Renaissance Party - 82; New
Komeito - 21; Japanese Communist Party - 7; Social Democratic
Party/Pro-Constitution League - 5; and Independents - 7.

ROOS

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