Cablegate: Japanese Morning Press Highlights 02/02/10
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CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.
E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 02/02/10
INDEX:
1) Top headlines
2) Editorials
Futenma relocation:
3) Okada says continued use of Futenma possible (Yomiuri)
4) Alternative Futenma options to be decided by March (Mainichi)
5) Gregson: Implementation of existing plan best option (Tokyo
Shimbun)
Defense & security:
6) Cabinet to make on Feb. 5 decision on dispatch of SDF to Haiti
(Nikkei)
Politics:
7) Ozawa mentions issue of resignation over Rikuzan-kai scandal "if
held criminally liable" (Yomiuri)
8) Excerpts of Diet debate (Yomiuri)
Foreign relations:
9) Gregson says Japan-U.S. relations not in crisis (Mainichi)
10) Hatoyama says Japan, Mexico must break away from dependence on
U.S. economy (Asahi)
11) Campbell to meet with Ozawa today (Nikkei)
Economy:
12) GDP marks annualized growth of 4 PERCENT (Mainichi)
13) Japan, other Asian nations to unify export procedures (Nikkei)
14) G-7 to discuss the yuan (Nikkei)
15) JAL inaugurates new management setup (Yomiuri)
16) JAL needs quick decision on tie-up partner (Asahi)
17) Gov't to advocate liberalization by sector to APEC nations
(Nikkei)
Articles:
1) TOP HEADLINES
Asahi:
Ozawa questioned again; says "if held criminally liable," he has
"serious responsibility"
Mainichi:
Ozawa at news conference mentions possibility of resigning if
indicted
Yomiuri:
Ozawa mentions issue of resignation over Rikuzan-kai scandal "if
held criminally liable"
Nikkei:
Government draws up road map for greenhouse gas emissions reduction
to achieve goal of 25 PERCENT reduction
Sankei:
Ozawa questioned again; says "if held criminally liable," he has
"serious responsibility," hinting at resigning as DPJ secretary
general
Tokyo Shimbun:
Ozawa mentions issue of resignation for the first time, says he will
TOKYO 00000202 002 OF 010
resign if held criminally liable
Akahata:
Ozawa questioned again by Tokyo District Prosecutors Office's
Special Investigation Division
2) EDITORIALS
Asahi:
(1) Election of Takanohana as sumo association director: Powerful
morning call on the sumo circles
(2) Japan-China study of history: Distance from politics is
important
Mainichi:
(1) Diet representative interpellations: Prime Minister's responses
lack impact
(2) Takanohana as new director of sumo association: Implement
reforms desired by fans
Yomiuri:
(1) Japan-China joint study: Differences in interpretation of
history brought to the forefront
(2) Takanohana's election as sumo association director: Reform the
sumo world under new leadership
Nikkei:
(1) Ozawa should also provide explanation in the Diet
(2) China's military expansion stirring up new controversy
Sankei:
(1) Second questioning of Ozawa: Resignation from Diet is the way to
take responsibility
(2) Shooting at Japanese fishing boat: Firing at ship's hull cannot
be overlooked
Tokyo Shimbun:
(1) Diet representative interpellations: It's a problem that "Ozawa
dictatorship" has become a topic
(2) Japan-China study of history: Start by examining the
differences
Akahata:
(1) Afghanistan: Now is the time to shift to political peace
3) Okada: U.S. military might continue to use Futenma
YOMIURI (Page 2) (Full)
February 2, 2010
Foreign Minister Okada has implied the possibility of the U.S.
military continuing its current use of Futenma airfield in Ginowan,
Okinawa Prefecture, if the government finds it impossible to find an
alternative site for its relocation. "This is not desirable, but if
there is no other location, Futenma airfield could be left as is,"
Okada said in a press conference yesterday at the Japan National
Press Club at Uchisaiwaicho in Tokyo.
Prime Minister Hatoyama, however, had ruled out the option of
continuing to use Futenma airfield. "We've never talked about
anything like continued use," he said on Jan. 28. Hatoyama and Okada
appear to be differing on the Futenma relocation issue. The Social
TOKYO 00000202 003 OF 010
Democratic Party and the People's New Party, currently allied with
the ruling Democratic Party of Japan, are expected to react
negatively.
4) Examination committee on Futenma relocation to select candidate
relocation sites by end of March
MAINICHI (Page 1) (Full)
February 2, 2010
With regard to the relocation of the U.S. forces' Futenma Air
Station (in Ginowan City, Okinawa), the "Okinawa base issues
examination committee" of the government and the ruling parties
(chaired by Chief Cabinet Secretary Hirofumi Hirano) began on Feb. 1
coordination to decide on candidate relocation sites and report to
Prime Minister Yukio Hatoyama by the end of March. The committee may
possibly submit several proposals to the Prime Minister for him to
make the final decision. The coordination process is expected to
reach a critical stage before the government's deadline to decide on
the relocation site toward the end of May. The committee is working
to reach a conclusion at an early date in order to allow time for
negotiations with the U.S. and the local government hosting the
relocation site.
Members of the committee from the ruling parties will submit their
proposed relocation sites by the second week of February. Social
Democratic Party (SDP) policy chief Tomoko Abe is asking the
government to request that the U.S. forces accept the committee's
inspection of Guam, which the SDP regards as the "most promising"
relocation site. This issue is expected to be discussed at the
committee's meeting on the afternoon of Feb. 2. People's New Party
policy chief Mikio Shimoji is likely to propose the integration of
the Futenma base with the U.S. forces' Kadena Air Base (straddling
the towns of Kadena and Chatan and Okinawa City).
5) Pentagon official urges Japan to implement current plan for
Futenma relocation
TOKYO SHIMBUN (Page 2) (Full)
February 2, 2010
Visiting U.S. Assistant Secretary of Defense for Asian and Pacific
Security Affairs Gregson has reiterated that it would be desirable
to implement the current plan to relocate the U.S. military's
Futenma airfield facility in Okinawa Prefecture to a coastal area of
Camp Schwab, a U.S. military base located in the Henoko area of Nago
City in the island prefecture. "This is the plan the Japanese and
U.S. governments proposed after holding consultations for many
years," he said in a speech delivered yesterday afternoon in Tokyo.
6) SDF unit to be dispatched to Haiti on Feb. 5
NIKKEI (Page 2) (Full)
February 2, 2010
The government decided yesterday to make a final decision on Feb. 5
at a cabinet meeting on its plan to dispatch a Self-Defense Forces
(SDF) engineering unit to earthquake-hit Haiti to join the UN
peacekeeping operations (PKO). Defense Minister Toshimi Kitazawa
will then issue an order on the 5th to dispatch the SDF unit. The
SDF unit is expected to comprise about 530 members, mainly Ground
Self-Defense Force personnel.
TOKYO 00000202 004 OF 010
7) Ozawa mentions resignation over land deal scandal "if held
criminally liable"
YOMIURI (Top play) (Abridged)
February 2, 2010
It was learned that Democratic Party of Japan Secretary General
Ichiro Ozawa was questioned again by the Tokyo District Prosecutors
Office's Special Investigation Division on Jan. 31 for violation of
the Political Funds Control Law in relation to his fund management
organization Rikuzan-kai's land purchase. This was revealed by Ozawa
at his regular news conference held at the party headquarters on
Feb. 1. Ozawa mentioned for the first time the question of his
resignation if he is held criminally liable.
Ozawa said at the news conference: "I think I will have very serious
responsibility if I am held criminally liable." It is believed that
he was hinting at his resignation as secretary general if he is
indicted or otherwise held criminally liable over this scandal.
He also said: "I have never received any illicit political donations
or slush funds. In that sense, I do not expect to be held criminally
liable."
8) Excerpts of PM Hatoyama's responses to Diet interpellation
YOMIURI (Page 5) (Excerpts)
February 2, 2010
Manifesto
The implementation of some policies in the manifesto (campaign
pledges) is being put off due to the 9 trillion yen shortfall in tax
revenues. I have apologized sincerely to the people. The Democratic
Party of Japan and the coalition government will implement the
manifesto and the three-party policy agreement faithfully. We will
seek the people's verdict on our accomplishments in this process in
the next House of Representatives election. I do not think that the
realization of the manifesto is "pork barrel spending." We will
focus allocations on the high priority areas in overall expenditures
and work for both economic growth and fiscal health.
Local suffrage for permanent resident foreigners
I have said in my previous responses that I am positive about this
issue. I can understand that there are various opinions in the
ruling and opposition parties about this critical issue that affects
the very foundation of Japan's (political) system. The government
will listen to the people's views and is in the process of sorting
out the issues in preparation for submitting a bill.
Abduction issue
I do not regard the normalization of relations (with North Korea) as
a foregone conclusion. As a government that seeks to "protect
lives," we have pledged to resolve this issue as soon as possible.
Along with strengthening the mechanisms for the collection and
analysis of information, we will elicit concrete action from North
Korea.
Futenma relocation issue
TOKYO 00000202 005 OF 010
I will value the feelings of the people of Okinawa and also consider
the issue from the security standpoint. I have no intention to
procrastinate irresponsibly. I will make a decision by May based on
three factors: selection (of a relocation site) based on an
agreement among the three ruling parties, agreement (of the local
government at the relocation site), and agreement of the U.S. side.
Japan-U.S. alliance
U.S. Forces Japan serve as a deterrent force that contributes to
peace and stability in Asia and the Pacific, so they need to be
maintained. Right now, I have shelved debate on a "security alliance
without permanent stationing of troops," and this will not be
discussed between Japan and the U.S. U.S. President Barack Obama and
I have issued statements on our commitment to deepening the
Japan-U.S. alliance in a form befitting the 21st century.
Refueling mission in the Indian Ocean
I do not deny that the mission contributed to the fight against
international terrorism to a certain extent, but it is a fact that
the frequency of refueling operations had been dwindling and the
significance of the mission had diminished. We will continue to
contribute actively to the international community's efforts to
fight terrorism mainly through civilian aid (to Afghanistan).
Japan's thinking is fully understood by the U.S. and the
international community.
JAL bailout
The main reason for Japan Airlines' poor business performance is its
high-cost structure resulting from the maintenance of unprofitable
routes, possession of a large fleet of big aircraft, surplus
personnel, and other factors. There had also been problems with
aviation administration, such as with regard to the construction of
unprofitable local airports.
Income subsidy for farming households
This is a mechanism to enhance productivity. A pilot project of
income subsidy will be introduced for rice farmers. Full-scale
implementation and farm products eligible for subsidy will be
further discussed. We will extensively increase the number of farm
products other than rice.
9) Japan-U.S. ties not in crisis: Pentagon official
MAINICHI (Page 7) (Full)
February 2, 2010
Visiting U.S. Assistant Secretary of Defense Gregson delivered a
speech yesterday in Tokyo at the Japan Institute of International
Affairs, in which he referred to the pending issue of relocating the
U.S. military's Futenma airfield in Ginowan, Okinawa Prefecture.
"This is only a part of the wide-ranging relations between our two
countries," Gregson said in the speech. "Our bilateral relationship
is not in a 'crisis' situation like what is being reported on," he
added. Meanwhile, Prime Minister Yukio Hatoyama promised in his Jan.
29 policy speech before the Diet to decide by the end of May on
where to relocate Futenma airfield. In this regard, Gregson said the
United States would wait for Hatoyama to make a decision.
TOKYO 00000202 006 OF 010
Concerning the relocation of Futenma airfield, Gregson said Japan
and the United States should "work together" on the issue and the
United States would not unilaterally force this issue on Japan. He
also referred to an intergovernmental agreement reached between
Japan and the United States in 2006 to relocate the Futenma airfield
to a coastal area of Camp Schwab, a U.S. military base located in
the Henoko area of the island prefecture's northern coastal city of
Nago. "The Japanese and U.S. governments at the time thought it was
the best option," Gregson said.
In addition, as a way of deepening the Japan-U.S. alliance, Gregson
proposed establishing a legal framework in order for U.S. forces and
the Self-Defense Forces to act in concert in dealing with natural
disasters like typhoons and earthquakes. Also, in connection with
the Obama administration's advocacy of "a world without nuclear
weapons," Gregson implied that a nuclear deterrent would be
unnecessary against the nonnuclear weapons of mass destruction. "We
think we will be able to prevail on the Korean Peninsula without
nuclear weapons (against North Korea's biochemical attacks)," he
said.
10) Prime Minister Hatoyama: Departure from dependence on U.S. on
economic front
ASAHI (Page 4) (Full)
February 2, 2010
Prime Minister Yukio Hatoyama stated yesterday at a joint press
conference with Mexican President Filipe Calderon after their
meeting: "Both Mexico and Japan have relied on the United States on
the economic front. Believing that we should break away from this
situation and need to strengthen bilateral trade and economic ties
with Asia, we now share the perception that it is very important to
further develop the economic partnership agreement."
Hatoyama perhaps thought that his comment could be taken as making
light of the U.S., because he immediately said: "I mean that we will
deepen exchanges with Asia based on the perception that the United
Sates is the most important partner of the two countries." In their
meeting, the two leaders agreed to strengthen cooperation for the
success of the 16th session of the Conference of the Parties to the
UN Framework Convention on Climate Change (CPO16), which will take
place in Mexico this year. They released a joint statement, which
includes the above point.
11) DPJ's Ozawa to meet today with U.S. Assistant Secretary of State
Campbell
NIKKEI (Page 2) (Full)
February 2, 2010
The Democratic Party of Japan (DPJ) announced yesterday that its
Secretary General Ichiro Ozawa will hold talks on Feb. 2 with U.S.
Assistant Secretary of State (for East Asian and Pacific affairs)
Kurt Campbell in the Diet building. The two are expected to exchange
views on the issue of where to relocate the U.S. Marine Corps'
Futenma Air Station in Okinawa Prefecture.
12) Nation's GDP estimated to mark an annualized 4 PERCENT growth
in Oct.-Dec.quarter owing to brisk personal consumption
TOKYO 00000202 007 OF 010
MAINICHI (Page 4) (Excerpts)
February 2, 2010
Eleven major private research institutes have formulated their
estimates for the growth rate of the nation's gross domestic product
(GDP) for the October-December 2009 quarter that will be announced
by the Cabinet Office on Feb. 15. On average, an annualized rate of
actual growth excluding the impact of price fluctuations is expected
to mark a 4 PERCENT increase, showing the third consecutive
quarterly rise. Helped by growth in exports mainly to Asia in
addition to brisk personal consumption, the October-December quarter
is expected to see growth greater than that in the July-September
quarter (over 1.3 PERCENT ).
All the research institutes estimate positive private consumption,
but private consumption was still sluggish excluding such products
as automobiles and televisions, according to BNP Paribas Securities.
Once policies lose their effectiveness, consumption might slow down.
Eight institutes estimate that capital investment increased for the
first time in four quarters. At the same time, the Nomura Securities
Financial and Economic Research Center and other institutions think
it is too early to conclude that (companies) have begun making
(investments) actively.
13) 16 Asian nations to unify export rules, with eye on free trade
zone
NIKKEI (Page 3) (Excerpts)
February 2, 2010
Sixteen countries, including Japan, China, South Korea and the
Association of Southeast Asian Nations (ASEAN) members, will begin
discussing unifying the rules and procedures for certifying the
origin of exported products. The aim of this move is to reduce
administrative burdens for exporters that are doing business in
multiple countries in Asia and to promote trade in the region. The
Japanese government sees the establishment of unified rules as a
first step toward creating a free trade zone encompassing the 16
countries.
The 16 countries will aim at introducing a unified rule of origin.
Under bilateral free trade agreements (FTA), special low tariffs on
traded goods are set, so it is crucial to take procedures to certify
that traded goods were produced domestically in an effort to prevent
goods produced in duty-evading third countries from being
exchanged.
In Asia, Japan, China and South Korea each have concluded separate
FTAs with ASEAN, but their rules and procedures for affirming a
product's origin vary according to agreements. For instance, trade
pacts signed between Japan and partner nations set the rate of
domestically produced parts at about 40 PERCENT of the finished
goods. But this percentage varies according to the agreement. In
Japan, the Chamber of Commerce and Industry issues certificates of
product origin, but in some countries, exporting firms themselves
provide the certificate.
14) G-7 meeting to discuss China's yuan policy
NIKKEI (Page 5) (Excerpts)
February 2, 2010
TOKYO 00000202 008 OF 010
Group of Seven (G-7) finance ministers and central bank governors
will meet in Iqaluit, northern Canada, on Feb. 5-6. China's yuan
policy will be placed high on the agenda, with the correction of
global trade imbalances as the main theme. In addition, the
participants will discuss U.S. President Barack Obama's proposal for
new limits on the size and activities of big banks. The aim is to
iron out differences among industrialized countries prior to a Group
of 20 (G-20) summit meeting, in which China and other developing
countries will participate. Although a joint statement is usually
issued in winding up a G-7 meeting, the upcoming meeting will likely
forgo a statement.
Japan cautious about Obama proposal for new bank rules
President Obama's move to tighten financial regulations is likely to
take center stage in the G-7 meeting. Finance Minister Naoto Kan
commented on the proposal: "I understand the President's intention
to restrict banks from handling risky commodities. ... But we need
to keep close tabs on future developments so that the rules will not
have a severe impact on Japanese banks" due to a drop in stock
prices.
In the U.S. and European countries, there are strong reactions to
exorbitant executive pay at banks. French President Nicolas Sarkozy
expressed his support for the U.S. proposal. But Kan remains
cautious, remarking: "I do not think that Japan should follow the
U.S. move to curb big banks' activities."
15) JAL's new management launched
YOMIURI (Page 1) (Excerpts)
February 2, 2010
Japan Airlines, which is now in the process of corporate
reconstruction under the Corporate Rehabilitation Law, on Feb. 1
launched a new management team with Kazuo Inamori (78) as chairman
and Masaru Onish as president. The carrier will tackle the difficult
challenge of achieving a balance between corporate downsizing and a
quick recovery of profits in a three-year period, during which the
carrier can receive financial assistance from the Enterprise
Turnaround Initiative Corporation of Japan (ETIC). The
government-backed corporate turnaround body will take the lead in
the reconstruction of JAL.
Meeting the press in Tokyo, Chairman Inamori stressed that "if the
business turnaround plan mapped out by ETIC and JAL is steadily
implemented, it would be fully possible for the carrier to
reconstruct itself." Concerning the carrier's management, he stated
his goal: "I think JAL has had a very bureaucratic organization,
based on the government-will-foot-the-bill mindset. I would like to
change things such that the company takes an interest in calculation
of profits and losses."
He also indicated his stance of searching for ways for a corporate
reconstruction that preserves JAL's international flight operations,
saying: "I would like to manage the carrier in the form of
developing both domestic and international flight operations."
16) JAL rushing to reach decision on business partner
ASAHI (Page 7) (Excerpts)
February 2, 2010
TOKYO 00000202 009 OF 010
Shinichi Maruishi, Dallas; Toshihiko Ogata, Washington; Ikki
Yamakawa
Japan Airlines' new management structure, designed to rebuild the
company, has gotten underway. One challenge the new management will
face is the selection of a U.S. carrier to form a partnership with.
In order for the carrier to recover its profitability, it will need
to decide on a business partner and obtain anti-trust immunity
(ATI). Delta Air Lines, the world's largest carrier, is highly
likely to be picked as JAL's business partner. However, the carrier
may find it difficult to obtain approval from the U.S. transport
authority.
Asked when JAL will select its business partner, President Masaru
Onishi, who took office on Feb. 1, replied at a press conference,
"As soon as possible." Concerning which candidate he is inclining to
pick - Delta Air Lines or American Airlines, the current partner,
Onishi simply said, "(My view on the two candidate carriers) is
neutral. They have both merits and demerits."
Tug-of-war between Delta and American
Delta Air Lines and American Airlines have been competing to become
JAL's business partner, proposing the provision of massive amounts
of financial assistance to it since last fall. However, the
Enterprise Turnaround Initiative Corporation of Japan (ETIC) and JAL
do not plan to accept capital investment from either of the carriers
in order to maintain leadership in the reconstruction process. They
say they will select JAL's business partner based on which carrier
will help JAL reconstruct itself and achieve growth.
According to the reviews ETIC and JAL have conducted so far, Delta
is the stronger candidate. If JAL joins the SkyTeam alliance, to
which Air France and KLM, major European carriers belong, its flight
network will be substantially expanded compared to if it remains in
the OneWorld alliance led by American Airlines, according to a Delta
executive. Many JAL officials are pinning high hopes on Americans
and Europeans using JAL flights via SkyTeam member carriers'
flights. Delta will reportedly shoulder the entire cost of JAL
switching airline groups.
In the meantime, American Airlines in January released its policy of
guaranteeing annual income of 100 million dollars (approximately 9
billion yen) for JAL's Japan-U.S. flights for three years. American
Airlines is emphasizing that cooperation in terms of the operational
system will lead to JAL's reconstruction, while stressing the risk
of switching airline groups.
U.S. transport authority files complaint
However, ATI approval will not necessarily be granted smoothly.
According to a diplomatic source, an official of the U.S. Department
of Transport orally conveyed a complaint to the Japanese government,
noting, "There is a possibility that the application for ATI status
by Japanese and American carriers will not be granted." This
announcement put a damper on the optimism spreading in Japan
regarding ATI status. That is because Washington's stance is that
the screening will be carried out based on the U.S. law without
prior speculation.
17) Government to advocate liberalization of specific areas in
TOKYO 00000202 010 OF 010
upcoming APEC forum in run up to building Free Trade Area of
Asia-Pacific
NIKKEI (Page 2) (Abridged slightly)
February 2, 2010
The government decided yesterday to advocate the economic
liberalization of specific areas, such as investment and services,
with the aim of building a Free Trade Area of the Asia-Pacific
(FTAAP) during the summit of the Asia-Pacific Economic Cooperation
(APEC) forum to be held in Yokohama in November. As the chair, Japan
will first make a proposal at the APEC high-level administrative
meeting to be held in Hiroshima in late February. This will be
followed by full-fledged talks.
The government wants to take the initiative in the FTAAP debate by
taking advantage of the opportunity to serve as the chair of the
APEC forum for the first time in 15 years. Given huge economic
disparities among APEC member countries and regions, the government
will encourage talks in specific areas to make it easier for member
countries to take part with the aim of establishing the FTAAP.
Besides the liberalization of investment and services, the
government envisages the facilitation of physical distribution and
the simplification of customs procedures by using IT (information
technology). The government is aiming at a loose economic
integration - rather than a legal framework - that is different from
a free trade agreement (FTA) or an economic partnership agreement
(EPA). Action programs for one to three years will be formulated by
area.
Discussions will also begin on expanding such existing trade
liberalization frameworks as the North American Free Trade Agreement
(NAFTA), the Association of Southeast Asian Nations (ASEAN), and the
Trans-Pacific Strategic Economic Partnership Agreement (TPP).
ROOS