Cablegate: Daily Summary of Japanese Press 02/23/10

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CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 02/23/10

INDEX:

(1) DM Kitazawa says government to sound out local governments, U.S.
on multiple Futenma relocation proposals (Yomiuri)

(2) Henoko residents oppose proposal on Futenma relocation to Camp
Schwab inland area (Sankei)

(3) Plan to "relocate" Futenma base to Camp Schwab's inland area:
Hatoyama administration turns its back on popular will (Akahata)

(4) Government clings to land-based Futenma relocation plan
(Mainichi)

(5) Nago not to include new projects funded by realignment subsidies
in fiscal 2010 budget (Okinawa Times)

(6) Attention focused on DPJ's views of national security in
discussion on revising National Defense Program Guidelines; expert
panel placing "emphasis on Asia" set up (Yomiuri)

(7) Editorial: National Defense Program Guidelines - Deepen debate
on how to strengthen deterrence (Yomiuri)

(8) Editorial: Outcome of Nagasaki gubernatorial election should be
taken as manifestation of public distrust in government (Tokyo
Shimbun)

(9) Editorial: Japan should send the clear message that Takeshima is
part of its territory (Sankei)

(10) Next Keidanren chairman eyes dialogue with government (Yomiuri)

ARTICLES:

(1) DM Kitazawa says government to sound out local governments, U.S.
on multiple Futenma relocation proposals

YOMIURI (Page 1) (Full)
Evening, February 23, 2010

Defense Minister Toshimi Kitazawa commented on the relocation of the
U.S. forces' Futenma Air Station in Okinawa at a news conference
held after the cabinet meeting on the morning of Feb. 23. He said:
"It will be difficult to proceed by deciding on one single plan,
making it public, and entering into negotiations." He thus indicated
that there is a strong possibility that the government will sound
out the affected local governments and the U.S. on multiple
relocation proposals.

Kitazawa said: "It is also possible, for example, for Chief Cabinet
Secretary Hirano to (sound out) what Okinawa or the U.S. thinks
before a proposal is firmed up in order to push the process forward
steadily."

He reiterated his opinion that the government and ruling parties'
examination committee should wrap up its discussions by the end of
this month.

In this connection, Chief Cabinet Secretary Hirofumi Hirano
commented on the relocation proposals to be submitted by the ruling

TOKYO 00000358 002 OF 014

parties to the examination committee at a news conference after the
cabinet meeting on the same day. He said: "For example, the Ministry
of Defense (MOD) will have to look into whether the facility is in a
usable state or if it is adequate for use as a military base,"
indicating that the candidate relocation sites will be narrowed down
after the MOD checks on their feasibility as relocation sites.

Meanwhile, Consumer Affairs Minister Mizuho Fukushima, leader of the
Social Democratic Party, told a news conference: "I have not
received any reports that the government has looked into the
possibility of relocation out of Japan or out of Okinawa thoroughly.
I hope (the discussions) will not be rash."

(2) Henoko residents oppose proposal on Futenma relocation to Camp
Schwab inland area

SANKEI ONLINE (Full)
12:50, February 23, 2010

In connection with the relocation of the U.S. forces' Futenma Air
Station (in Ginowan City, Okinawa), in light of the government's
sounding out the U.S. on the "Camp Schwab inland proposal," which
calls for building a helipad in Camp Schwab (in Henoko, Nago City),
the "special committee on the Futenma replacement facility"
consisting of representatives of the residents of the Henoko
district decided on Feb. 23 to oppose this proposal.

Committee members plan to visit the Okinawa Defense Bureau with
representatives of the neighboring Toyohara and Kushi districts on
Feb. 25 to present a letter demanding that the inland relocation
proposal not be adopted.

Nago Mayor Susumu Inamine has also declared his opposition to the
inland plan. A member of the special committee said: "The starting
point of Futenma relocation is to remove danger. The inland proposal
will only transfer the danger. We are determined to oppose any plans
being promoted by the government without consulting the local
communities."

(3) Plan to "relocate" Futenma base to Camp Schwab's inland area:
Hatoyama administration turns its back on popular will

AKAHATA (Page 3) (Full)
February 20, 2010

Nobuyuki Horaguchi

In connection with the "relocation" of the U.S. Marines' Futenma Air
Station, the government's studying a plan to "relocate" the base to
the inland area of Camp Schwab and sounding out the U.S. government
on this proposal behind the scenes is an act of trampling on popular
will as expressed in the Nago mayoral election on Jan. 24.

"The citizens of Nago City cannot accept any additional burden,"
said Mayor Susumu Inamine. "You must not come up with a conclusion
that will disappoint the citizens." Inamine, who won election with a
pledge to oppose the construction of a new military base for
Futenma's "relocation," conveyed to the leaders of the government
and the political parties in Tokyo on Feb. 17 and 18 the same
popular will as expressed in the referendum conducted 13 years ago.

Although Prime Minister Yukio Hatoyama responded "I take this

TOKYO 00000358 003 OF 014

seriously," he was at the same time studying the Camp Schwab inland
proposal, which runs completely against the popular will.

This also contradicts Hatoyama's pledge to relocate the Futenma base
out of Okinawa or out of Japan in the general election last August,
which forced out the Liberal Democratic Party -New Komeito
administration that promoted the reinforcement of U.S. military
bases. A former senior government official well-versed in security
issues says: "Since the security environment has not changed from
the time he pledged to relocate (the Futenma base) out of Okinawa or
out of Japan, revoking the pledge will be unacceptable to the
people."

Flight routes over civilian housing

The Camp Schwab inland plan was a proposal floated several times
under the LDP-New Komeito administration. However, this proposal was
dropped because of U.S. opposition to the relocation of training
grounds and large-scale leveling of hilly areas it would entail.
Doubts about the plan have already been expressed in the government.
Minister for Okinawa and Northern Territories Affairs Seiji Maehara
said on Feb. 19: "Review of this proposal requires consideration of
how to resolve the issues of relocation of (the U.S. forces') firing
exercises and the flight of helicopters over civilian housing."

The existing plan to build V-shaped runways in the coastal area of
Camp Schwab was adopted in the first place under the pretext of the
need to avoid aircraft flying over civilian houses. Under the inland
relocation plan, it will not be possible to avoid flying over
civilian residences no matter how the flight routes are set.
Furthermore, U.S. forces are mulling deployment of the highly
accident-prone M-22 Osprey, a vertical takeoff and landing aircraft,
in the future.

The need for a 1,600-meter-class runway is based on the assumption
of deploying the Osprey. Hills inside the military base will have to
be leveled on a large scale, and there is great danger that the sea
in Oura Bay off Henoko will be affected by outflow of earth and sand
from the construction site.

The Camp Schwab inland plan will not only impose a burden on
Okinawa; it will reportedly also involve the relocation of
helicopter units from the Futenma base to the candidate "relocation
sites" picked by the Hatoyama administration, such as the
Tokunoshima and Mageshima islands in Kagoshima Prefecture.

Disregard of international law

The Futenma base was originally built with land U.S. forces forcibly
grabbed from the local residents in disregard of international law
after World War II. The fact that the government is desperately
looking for a "relocation site" for the Futenma base, which the U.S.
admits is the "most dangerous military base in the world," is
tantamount to affirmation of the existence of the illegally built
dangerous Futenma base.

If Prime Minister Hatoyama and the other leaders are true to their
words that "election results need to be respected since (Japan) is a
democratic country" (Defense Minister Toshimi Kitazawa on Feb. 17)
and "we will adopt a plan giving consideration to the feelings of
Nago's mayor and Okinawa's people" (People's New Party leader
Shizuka Kamei), they should enter negotiations with the U.S. for the

TOKYO 00000358 004 OF 014

immediate removal of this dangerous military base.

(4) Government clings to land-based Futenma relocation plan

ASAHI (Page 2) (Excerpts)
February 19, 2010

The inland area of Camp Schwab is being mentioned in the Hatoyama
administration as a possible relocation site for the U.S. Marine
Corps' Futenma Air Station in Okinawa Prefecture. Prime Minister
Yukio Hatoyama thinks the idea is worth studying. But the same idea
was brushed aside by the U.S. side five years ago. The idea is also
drawing objections from the affected municipalities and the Social
Democratic Party (SDP). There are high barriers to materializing the
idea.

On Feb. 18, a cabinet minister made the following remark on where to
relocate Futenma: "The United States is opening up. They are
increasingly aware that the Futenma issue must not be allowed to
undermine the overall Japan-U.S. alliance." Meanwhile, U.S. Marine
Corps Forces, Pacific Commander Lt. General Keith Stalder recently
indicated that any new plan must be equal to or better than the
existing plan to relocate Futenma to Henoko in Nago. Stalder's words
represent the U.S. stance. Nevertheless, the cabinet minister's view
is that the United States will come to the negotiating table with
Japan in time.

Some sources connected with the government are confident that Tokyo
will be able to obtain local consent on the land-based plan. Their
confidence comes from the logic that the central government has
exclusive authority over security affairs and all the government has
to do is notify the affected municipalities of its final decision.

Camp Schwab's inland area is adjacent to the coastal area of Henoko
on which Japan and the United States agreed in May 2006. The only
major difference with the Henoko plan is that the runway would be
built on a U.S. base that is protected by tight security - a
condition that would make it difficult for opponents to obstruct
construction work.

The People's New Party (PNP) also came up with its own Schwab inland
plan. Defense Minister Toshimi Kitazawa urged the SDP and PNP
executives to present their parties' plans early while dining with
them on the night of Feb. 16. Kitazawa apparently wanted to put the
land-based Schwab plan on the table to create a trend in favor of
it.

"We have already explained to the Prime Minister, the chief cabinet
secretary, and the DPJ side about our party's plans," PNP leader
Shizuka Kamei said in a press conference on Feb. 17.

Some cabinet members began indicating this year that the Schwab
land-based plan is the only realistic plan. Finding a brand new site
by May would be difficult. Concerned persons share the fear that if
this situation persists, the Futenma base will remain in use
indefinitely.

On Feb. 17, the press corps pointed out that the land-based plan was
examined to no avail in the past. In response, Prime Minister
Hatoyama said that it is still worth looking into plans that were
dropped in the course of negotiations.

TOKYO 00000358 005 OF 014

Little hope for obtaining local consent

It might be harder than the administration thinks to obtain the
consent from the three concerned parties - the affected communities,
the ruling parties, and the United States - that is essential for
determining the relocation site.

Nago Mayor Susumu Inamine told Prime Minister Hatoyama at the Prime
Minister's Official Residence (Kantei) on Feb. 18 that he will
oppose the ground-based plan, not to mention the existing Henoko
plan.

The DPJ prefectural chapter also hastily held a press conference in
Naha on Feb. 18 and released a statement saying that the
organization will remain opposed to any plans to relocate the base
within Okinawa.

The Kantei is not making efforts to take local wishes into
consideration.

Chief Cabinet Secretary Hirofumi Hirano, who is serving as a
coordinator of the Futenma issue, will visit Okinawa on Feb. 19-20.
According to DPJ Okinawa chapter policy chief Tadashi Uesato, Hirano
declined requests for meetings by the prefectural chapter and the
prefectural assembly chairman. "They are not making efforts to
listen to the local views," Uesato said angrily. "His actions can be
taken to mean that they are making decisions behind our backs, which
is not good."

The SDP, one of the DPJ's coalition partners, also remains opposed
to relocation within Okinawa.

Nago Mayor Inamine called on SDP head Mizuho Fukushima at party
headquarters on the evening of Feb. 17. In the session, Fukushima
encouraged the new Nago mayor, telling him that the SDP will work
together with him. Later that day, Inamine dined in Tokyo with
lawmakers form Okinawa, including SDP Lower House member Kantoku
Teruya. At the dinner table, Teruya and others pressed PNP policy
chief Mikio Shimoji to withdraw the land-based plan.

For the SDP, the Futenma relocation issue is a top priority. The
party cannot afford to make compromises on moving Futenma out of
Okinawa or of Japan. If the government adopts the land-based plan,
some SDP members are certain to call for a departure from the ruling
coalition.

In 2005 the U.S. side rejected the idea of moving Futenma functions
to the inland area of Camp Schwab that came from Tokyo during the
Koizumi administration. A person connected to the U.S. government
explained: "It will be possible to implement the Henoko plan if the
Japanese government decides to do so. The land-based plan is out of
the question. A 500-meter runway will be insufficient to accommodate
the helicopters returning from Afghanistan. If we try to extend the
runway, the construction cranes make it impossible for us to use the
runway."

According to a Japanese official responsible for talk in 2005, the
U.S. side is fiercely opposed to Japan's plan to build a runway near
the firing range, citing the danger of misfiring at aircraft and
other factors. Tokyo also looked into a plan to construct a runway
far away from the training area and close to a residential area, but
the government gave up on it, concluding that it would not be able

TOKYO 00000358 006 OF 014

to obtain local understanding.

(5) Nago not to include new projects funded by realignment subsidies
in fiscal 2010 budget

OKINAWA TIMES (Page 1) (Abridged slightly)
February 23, 2010

Daihachiro Gushi, Nago

Nago City (Mayor: Susumu Inamine) has decided not to include in its
fiscal 2010 budget any new projects funded by U.S. military
realignment subsidies. Mayor Inamine, who won the election in
January on a pledge opposing the existing plan to relocate the U.S.
Marine Corps' Futenma Air Station to the coastal area of Henoko in
the city, has concluded that government subsidies authorized under
the U.S. force realignment facilitation law, predicated on the
relocation plan, are incompatible (with opposition to it). At the
same time, the city will include in its budget the funds for
projects that are already underway and ask the central government to
continue to provide subsidies until they are completed.

Included in the new projects that will not be financed by the
government's realignmentsubsidies are, among other projects, the
Kube 3rd district sewerage project expected to cost 7 to 10 billion
yen in total, and subsidies for the operation of the regional
exchange key facility for the area north of Futami. They are all in
the planning stages. Specific methods for carrying out the projects
are under consideration.

The government unofficially announced that it would provide some 1.4
billion yen in realignment subsidies to Nago in fiscal 2007-2008,
and 10 billion yen in fiscal 2009. Subsidies comparable to those of
the previous year were expected for fiscal 2010 as well. The city
does not foresee any impact for the time being on such projects as
the school bus services project for the north of the Futami
district, which has used over 700 million yen from the city's
realignment subsidies, and the unified primary and middle school
education system.

The central government provides subsidies to local governments in
accordance with progress in implementing U.S. military realignment
plans under the law to facilitate U.S. force realignment, which was
enacted in May 2007. It is time-limited legislation valid until
March 2017. Five municipalities in Okinawa, including Nago, are
entitled to receive subsidies.

The government plans to have the Okinawa base issues examination
committee composed of the ruling coalition parties reach a
conclusion by the end of May on possible Futenma relocation sites,
including places other than Henoko. The People's New Party is
studying the inland area of Camp Schwab in the Henoko district in
Nago. The future course of efforts to determine where to relocate
the base is still unclear.

(6) Attention focused on DPJ's views of national security in
discussion on revising National Defense Program Guidelines; expert
panel placing "emphasis on Asia" set up

YOMIURI (Page 3) (Excerpts)
February 19, 2010

TOKYO 00000358 007 OF 014

A study group began a discussion on revising the National Defense
Program Guidelines yesterday. This is the fourth revision in the
postwar period. How will the panel address China's military buildup
and the importance of the Japan-U.S. alliance? How will it approach
long-standing challenges, such as easing the three principles on
arms export? Attention will be focused on the details of the
Hatoyama administration's views on national security.

How to reflect change of government in review

The initial focus of attention was on who would be picked as members
of the expert panel tasked with drafting a report on revising the
National Defense Program Guidelines. Views on security issues are
not unified in the Democratic Party of Japan (DPJ). The lineup of
the panel is a key element in assessing what effect the change of
government will have on the nation's future defense buildup plan.

Keihan Electric Railway CEO Shigetaka Sato was tapped to chair the
expert panel. Few in the Foreign Ministry and the Defense Ministry
had information about his career and background when he was
appointed. Prime Minister Yukio Hatoyama and Chief Cabinet Secretary
Hirofumi Hirano selected the influential figure in the business
community of the Kansai district, where Hirano is from. Sato is
scheduled to become president of the Osaka Chamber of Commerce and
Industry in late March.

Discussion starts from scratch

The previous Aso government also established an expert panel on
revising the guidelines last year and issued a report in August
under Tokyo Electric Power Co. Chairman Tsunehisa Katsumata, who
chaired the panel.

The Hatoyama administration, which was inaugurated in September,
decided to effectively scratch the previous report and go back to
square one. The number of members was also increased from nine in
the previous panel to 11. In addition, the lineup of the panel shows
its stance of placing emphasis on Asia.

Takashi Shiraishi is known as an expert on Asian politics. Takako
Hirose specializes in Indian and Pakistan affairs, and Yasuhiro
Matsuda is an expert on Chinese affairs. It is said that the Defense
Ministry drafted the list of members, but a senior Foreign Ministry
official commented: "I can sense the panel's eagerness to start
discussing the issue from scratch."

Meanwhile, Hiroshi Nakanishi and Ryozo Kato were members of the
previous panel and are controversialists who theoretically supported
the LDP-led governments' stance toward the Japan-U.S. alliance. A
Defense Ministry source said: "Some might have different views from
the Hatoyama administration's view of the U.S., such as Yoshihide
Soeya, a veteran scholar, and Takashi Saito, a former top uniformed
officer" (in addition to Nakanishi and Kato).

Members of the expert panel

Chairman Shigetaka Sato Keihan Electric Railway CEO
Members Yoko Iwama National Graduate institute for Policy Studies
professor (international politics)
Takashi Shiraishi Institute of Developing Economies president
(Asian politics)
Yoshihide Soeya Keio University professor (international politics)

TOKYO 00000358 008 OF 014

Hiroshi Nakanishi Kyoto University professor (international
politics)
Takako Hirose Senshu University professor (South Asia politics)
Yasuhiro Matsuda Tokyo University associate professor (Chinese
politics, diplomacy and security)
Tadashi Yamamoto Japan Center for International Exchange president

Expert members Yasunari Ito Former vice defense minister
Ryozo Kato Former ambassador to the U.S.
Takashi Saito Former Joint Staff chairman

"Taboo-free discussion"

Reviewing the guidelines will affect the foundation of Japan-U.S.
defense cooperation, so it is closely linked to the Quadrennial
Defense Review (QDR) released by the U.S. Obama administration on
Feb. 1. The QDR expressed concern about China's military buildup,
including military action in cyberspace, and emphasized the need for
close ties between the U.S. and its allies. It is also worth looking
at how the Hatoyama administration will respond to the Obama
administration's call.

Delivering a speech at an informal gathering yesterday, Hatoyama
said: "I think it is necessary to have the new guidelines fall into
step with the QDR, but it is important to thoroughly discuss first
what Japan's security strategy should be and then consider
coordination with the QDR."

A senior Defense Ministry official stressed: "Since security
situations do not significantly change in a year, experts' views
should not change remarkably, either. The question is how the
government and the ruling parties will address this fact." DPJ Diet
Affairs Committee Chairman Kenji Yamaoka said: "Relations between
Japan, China and the U.S. should be equally balanced like an
equilateral triangle." On China's military threat and future options
for the U.S.'s deterrence, there is a possibility that the new
guidelines will not reflect the contents of the panel's report.

Relaxation of three principles on arms export

The three principles on arms export were one of the major themes in
the report issued last year. Defense Minister Yoshimi Kitazawa said
in a meeting yesterday: "The prime minister said that 'the
discussions should be taboo-free.' This is a welcome statement."
Kitazawa's remark indicates the ministry's willingness to positively
address the easing of the three principles. The defense minister had
in mind the fact that multinational joint development of large-sized
equipment such as fighters has been promoted in the U.S. and Europe
against the backdrop of such equipment becoming more efficient and
expensive.

The joint development and production of the ballistic missile
defense system with the U.S. is now outside the application of the
three principles. Attention is now focused on how many more
exceptions will be made.

Possibility of reducing budget, personnel

Another focus of attention is on how to streamline the defense
budget and personnel. Prime Minister Hatoyama said: "It is necessary
to fully consider the budgetary limits." The defense minister also
emphasized in the meeting yesterday: "It is necessary to make the

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nation's effective defense capabilities more efficient." He
indicated that discussions will be conducted on what to do about the
number and effective strength of Self-Defense Force members and how
to acquire equipment more effectively.

(7) Editorial: National Defense Program Guidelines - Deepen debate
on how to strengthen deterrence

YOMIURI (Page 3) (Full)
February 19, 2010

Prospects for Japan's security environment are not bright either for
the present or for the medium- to long-term. To address this
situation, it is critical for Japan to deepen the debate on how to
strengthen deterrence.

The government's blue-ribbon panel for reexamining the National
Defense Program Guidelines recently held its first meeting. The
government will amend the existing defense guidelines by the end of
the year based on a report to be compiled by the advisory panel this
summer.

Although the Hatoyama administration had initially planned to amend
the present guidelines at the end of last year, it postponed the
submission by one year in order to come up with new ideas and avoid
a hasty decision.

Japan should be keenly aware of the dangerous security situation in
the region. North Korea conducted two nuclear tests last year. It
has also demonstrated its ballistic missile capability. However, the
Six-Party Talks have been suspended.

China has rapidly modernized its navy and air force by increasing
its national defense spending by more than 10 percent for 22 years
in a row. If the pace of China's military buildup continues at this
rate, China may gain an advantage in the military balance in East
Asia.

The possibility of China stepping up its moves to secure maritime
interests in the East China Sea cannot be ruled out either, since it
is already doing so in the South China Sea. How would Japan respond
to such a situation?

Defense capabilities cannot be improved immediately. It is important
to strengthen deterrence by improving the effectiveness of the
Self-Defense Forces equipment and organization while also enhancing
the effectiveness of the Japan-U.S. alliance.

In order to deepen the Japan-U.S. alliance, such factors as an
improvement in the missile defense system, the formulation of a
defense cooperation program for contingencies, and the strengthening
of bilateral information sharing are indispensable.

The issue of the right of collective self-defense should also be
looked into. The government and ruling Democratic Party of Japan
(DPJ) intend to reexamine the role of the Cabinet Legislation
Bureau, including the possibility of prohibiting the bureau director
general from answering questions in the Diet. A review of the
bureau's constitutional interpretation that Japan holds the right of
collective self-defense but cannot use it should be discussed.

Japan also needs to formulate a system to allow the SDF to actively

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participate in international peace cooperation activities.

The stability of the world and Asia will lead to the security and
prosperity of Japan, a trade-oriented country. The government has
dispatched Ground Self-Defense Force personnel to Haiti to take part
in United Nations peacekeeping operations. However, the government
should review the SDF's equipment and organization so that the SDF
can take part in a variety of missions.

It is time to put an end to the downward trend in defense outlays.
Japan lacks a sense of crisis regarding its dwindling defense
expenditures amid neighboring countries' substantial increases in
national defense spending.

To be sure, the legacy of the Cold War era should be rectified.
Reductions in GSDF strength, number of tanks, and size of arsenals
are possible. The ineffective defense procurement system should be
substantially reformed. Furthermore, a review of the three
principles on arms exports is imperative.

(8) Editorial: Outcome of Nagasaki gubernatorial election should be
taken as manifestation of public distrust in government

TOKYO SHIMBUN (Page 5) (Full)
February 22, 2010

The candidate endorsed by the Democratic Party of Japan (DPJ) was
defeated in the Nagasaki gubernatorial election. The outcome is a
manifestation of the voters' distrust in the government over
politics-and-money scandals involving Prime Minister Yukio Hatoyama
and Secretary General Ichiro Ozawa. The prime minister must take
this election result seriously.

The first gubernatorial election this year was substantially a
one-on-one fight between a former section chief at the Agriculture,
Forestry and Fisheries Ministry -- endorsed by the DPJ, the Social
Democratic Party and the People's New Party - and a former vice
governor -- supported by the Liberal Democratic Party (LDP) and the
New Komeito.

Viewing the Nagasaki election as a bellwether for the House of
Councillors election this summer, senior officials of both camps
faced off in war of words.

In the House of Representatives election last August, in which the
party grabbed the reins of government, the DPJ gained a victory in
all four single-seat constituencies in Nagasaki Prefecture. The
party also won the Upper House elections in 2004 and 2007 in
succession.

Therefore, a defeat of the DPJ-backed candidate was hardly expected,
but it had been reported from early on that the ruling camp-endorsed
candidate was having a tough time. Despite the earnest support by
cabinet ministers and senior DPJ members, who stumped for the
candidate even from before the official announcement of the
election, the candidate was beaten by his opposition-camp-backed
rival.

It is said that local elections are not directly connected to
national politics, but the main cause for the DPJ's defeat was
public distrust in the government over the politics-and-money
scandals.

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In the case of illegal political donations involving Ozawa's
fund-management organization in violation of the Political Funds
Control Law, Ozawa was not criminally charged. In opinion surveys,
however, nearly 90 PERCENT of respondents said that his
explanations were unsatisfactory. More than 70 PERCENT called for
Ozawa's resignation as secretary general.

Hatoyama has also been lambasted because his receipt of a large
amount of funds from his mother has discouraged people from paying
taxes.

The politics-and-money scandals involving Hatoyama and Ozawa have
slowly and steadily cooled the ardor sensed after the change of
government.

Fully aware that his scandal has created among the people distrust
of the government, Ozawa should provide an account before the Diet
in response to growing calls for him to give an explanation.
Depending on circumstances, he might be pressed to make a hard
decision, including the possibility of resigning.

The DPJ must make utmost efforts to dispel public distrust by
showing a way of assuming political responsibility different from
that of LDP governments in the past.

Meanwhile, the LDP is probably aiming at bolstering its strength,
taking this victory as a turning point. Even so, the party did not
endorse the candidate, stemming from the judgment that if the party,
which suffered a crushing defeat in the earlier Lower House
election, was at the forefront of the campaign, there might have
been repercussions, although party headquarters sent well-known
lawmakers, including Lower House member Shinjiro Koizumi, to
Nagasaki to stump for him. It therefore cannot be said that the LDP
won in a head-to-head confrontation. One member after another has
left the LDP. That proves that its efforts at revitalization have so
far fallen short.

President Sadakazu Tanigaki and other LDP executive members should
make efforts to reform the party without being carried away by the
victory this time; otherwise, regaining the reins of government in
the Upper House election will become just a pipe dream.

(9) Editorial: Japan should send the clear message that Takeshima is
part of its territory

SANKEI (Page 3) (Full)
February 22, 2010

As usual, a memorial ceremony will be held in Matsue City on Feb.
22, Takeshima Day. It has been five years since the Shimane
prefectural government established a Takeshima Day ordinance. It is
regrettable that this year again no one connected to the central
government is scheduled to attend the ceremony.

On this day (five years ago), the Shimane prefectural government
made an announcement (designating the day as Takeshima Day) based on
the government's cabinet decision in 1905 to place Takeshima under
the prefecture's jurisdiction. Historically and legally, Takeshima
is clearly an integral part of Japan. Despite that, in 1952 the Lee
Sung-man administration of South Korea, which gained independence
after World War II, unilaterally established the "Lee Line,"

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declaring that Takeshima (South Korean name: Dokdo) was part of its
territory. Since then, South Korea has been illegally occupying
Takeshima.

The territorial dispute cannot be settled by the Shimane prefectural
government alone. It is a matter that must be addressed by the
central government. According to the prefecture, invitations have
been sent to the foreign minister and the agriculture, forestry, and
fisheries minister every year, but neither has attended the annual
event. If the ministers find it difficult to attend the event,
either a senior vice minister or a parliamentary secretary should
attend.

The Japanese government's recent half-hearted response to South
Korea is also a problem.

In July 2008 the Education, Science, and Technology Ministry
announced new curriculum guidelines for middle school teachers that
included the Takeshima territorial issue for the first time. Even
so, apparently out of consideration for the ROK, wording that
Takeshima is an "integral part of Japan" was dropped -- a clear
setback from the initial plan to indicate Japan's sovereignty over
the islets. It was a result of coordination in the cabinet of (then)
Prime Minister Yasuo Fukuda.

But the ROK was still unhappy and took strong measures, temporarily
recalling its ambassador to Japan.

Late last year, the education ministry under the Hatoyama
administration announced new guidelines for high school teachers
that did not mention Takeshima in the section of territorial
disputes, a further setback for a clear expression of territorial
sovereignty.

As a result, Seoul simply called the Japanese ambassador to South
Korea to express its regret and concern, softening its response.
Giving excessive consideration to South Korea undermines national
interests and sovereignty.

In contrast to South Korea's excessive reactions, Japan's responses
have been hardly noticeable.

The cover of the white paper on defense released last February by
South Korea's Defense Ministry carried for the first time a
photograph of Takeshima, which the country has been occupying
illegally. In reaction, the Japanese government simply summoned a
counselor at the South Korean Embassy in Japan to the Foreign
Ministry and lodged a protest. The government did not make the step
public. The reason was not to provoke the South Korean public,
according to a source connected to the Japanese Embassy in South
Korea.

Lodging a protest via a diplomatic channel is meaningless unless
people at home and abroad are aware of it. Japan should disseminate
more clearly to the international community the message that
Takeshima is part of its territory.

(10) Next Keidanren chairman eyes dialogue with government

YOMIURI (Page 3) (Abridged slightly)
February 23, 2010

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Sumitomo Chemical Chairman Hiromasa Yonekura (72), the incoming
chairman of the Nippon Keidanren (Japan Business Federation), held a
press conference on Feb. 22. During the press conference, he
expressed his aspirations, saying, "I would like to press ahead with
discussions and talks with the government." He appears to be
strongly aware of the need to reconstruct relations with the ruling
parties, which had completely cooled off during a time when Fuji
Mitarai (chairman of Canon) was chairman. However, the ruling camp
is distancing itself from Keidanren, which has a strong imprint of
being a spokesman for leading companies. Not many predict that the
relationship between the ruling parties and Keidanren will improve
anytime soon after Yonekura takes office in May.

Sense of crisis

Yonekura repeatedly expressed his stance of cooperating with the
government during the press conference, which lasted for about 25
minutes. He made these remarks against a backdrop of the Hatoyama
administration's cold attitude toward leading companies.

On Feb. 17, Japanese Communist Party Chair Shii broached the idea of
taxing the internal reserves of companies. The prime minister
indicated a positive stance toward the idea, albeit temporarily.

Probably with the prime minister's stance of viewing leading
companies as potential enemies in mind, Yonekura emphasized during
the press conference: "Proposals made by Keidanren tend to be taken
as proposals made by leading companies. However, that is not the
case at all. Communication is important."

Regarding future policy proposals, he said: "I would like to
establish an environment in which the private sector can display its
power to the maximum extent possible, by cooperating with the
government from the perspective of the public." He wants to somehow
incorporate requests from business circles into the growth strategy
that the government is planning to draft.

In the past, top business leaders have been very influential in the
policy-making process both in tangible and intangible ways, by using
their broad-based and deep contacts in political circles.

A prime example from recent years is Chairman Hiroshi Okuda (now
advisor to Toyota Motors), who was active during the Koizumi
administration. He took part in the Council on Economic and Fiscal
Policy, which was characterized as an engine for reform and growth
policy-making, as a private-sector member. It is also said that he
fulfilled various roles during the era when Mitarai was the chairman
of Keidanren. For instance, he was involved in the selection of
executives for the Japan Post Group.

The cooperative relationship between political and business circles
remains cut off. Serious efforts to mend the broken relationship
have yet to occur. Business leaders are eager to use the launch of
Yonekura-led Keidanren as an opportunity to find a breakthrough in
the present situation. However, some are skeptical about Keidanren
executives' personal connections, with one person noting, "I wonder
if the personal connections of Keidanren executives, including 18
vice chairmen, with political leaders are sufficient."

New chairman internationally active: He can outdebate foreigners in
English

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Yonekura during the press conference on that day stressed that he is
internationally active, revealing that he received a letter from a
U.S. top business leader, when he was informally selected as the
next chairman. He said that the letter said: "Japan-U.S. relations
are important. Rest assured that we will actively support you."

He is said to have a good command of English and is capable of
outdebating foreigners. He has many American acquaintances,
including U.S. Ambassador to Japan John Roos and Columbia University
Professor Jeffrey Sachs, special advisor to the UN secretary
general. He has held the post of chairman of the Japan-U.S. Business
Council, which hosts the Japan-U.S. Businessmen's Conference, since
last year.

When he served as the president of Sumitomo Chemical, he was
involved in the petrochemical project in Saudi Arabia. Because of
this experience, he is close to Petroleum and Mineral Resources
Minister Ali Ibrahim al-Naimi and Khalid Al-Falih, CEO of
state-owned national oil company Saudi Aramco.

Yonekura is known to be close to People's New Party leader and State
Minister for Financial Affairs Kamei, a fellow alumnus of Tokyo
University. However, it is not known whether he has any other
politicians whom he is especially close to in Japanese political
circles. He will apparently need to build relations with Deputy
Prime Minister and Finance Minister Kan or State Minister for
National Policy Sengoku, who will spearhead the effort to draft the
growth strategy, from scratch.

Asked about what type of business manager he is, he replied, "I
think am half a dogmatic type and half a coordinative type." Both
inside and outside the company, he is reputedly a dogmatic type
despite his gentle exterior.

One reason for such a view is that he is more knowledgeable about
in-house matters than anyone else. Although he is a graduate of
Tokyo University's Faculty of Law, he is well versed in technical
fields as well. So much so that when a technical glitch occurs at
one of his company's plants, he looks at a blueprint of the plant
and pinpoints the problem area.

However, he seems to give off a stubborn impression at times. He was
involved in merger talks with Mitsui Chemical in 2000. However, the
talks broke down in 2003 because the conditions set by each party
were not met. Some in the Mitsui Group still view him as not
listening to other people's opinions or being high-handed.

Many business leaders in Tokyo take the position that Sumitomo is a
corporate group of the Kansai region, although it is a former
industrial conglomerate like Mitsubishi or Mitsui. Some take a cool
stance toward Yonekura taking office as chairman of Keidanren with
one saying, "I wonder whether people will follow an Osaka-based
company."

ROOS

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