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UNCLAS SECTION 01 OF 09 TOKYO 000164 
 
SIPDIS 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 01/12/07 
 
 
INDEX: 
(1) "V-shaped runway would be moved to area near Nagashima Island," 
says mayor on scope of revision; Four local heads from northern 
Okinawa agree on policy course of joint concessions with the 
prefecture 
 
(2) Futenma talks: Focus on V-shaped airstrips 
 
(3) Contrary to Education Minister Ibuki's explanation, his other 
offices reported expenses separately 
 
(4) Thoughts on the new status of defense troops (Part 3) -- 
Changing SDF: How to secure operation costs? 
 
(5) GSDF Colonel Sato to run in Upper House election 
 
(6) Interview with Nomura Holdings President Nobuyuki Koga on 
triangular mergers 
 
(7) Scramble for natural resources - Part 5: Chinese companies 
serving as state vanguards, fomenting "China as a threat" argument 
in international community 
 
(8) Editorial: Unification of implementing agencies is good 
opportunity for developing strategic ODA 
 
-- There will be no Daily Summary on January 15 - an American 
holiday.-- 
 
ARTICLES: 
(1) "V-shaped runway would be moved to area near Nagashima Island," 
says mayor on scope of revision; Four local heads from northern 
Okinawa agree on policy course of joint concessions with the 
prefecture 
 
OKINAWA SHIMPO (Top play) (Excerpts) 
January 12, 2007 
 
(Nago)  Prior to the third meeting of the Futenma Air Station 
Relocation Measures Council, scheduled for Jan. 19, four heads of 
local government in the northern part of Okinawa yesterday afternoon 
met at the Northern Part Hall in Nago City. They agreed on a policy 
course at the council of matching the prefecture, which is seeking a 
minor revision of the proposed V-shaped runway (off of Camp Schwab), 
with their own compromise. It appears that their aim is to make an 
appeal to the central government by presenting a unified view from 
the local level. After the meeting, Nago City Mayor Yoshikazu 
Shimabukuro told this newspaper's reporter: "The city and the local 
governments want to draw the location as close as possible to the 
area near Nagashima Island," indicating the scope of the revision of 
the V-shaped runway desired by Nago City. 
 
Governor Hirokazu Nakaima has indicated that he would go ahead with 
a relocation plan that has the agreement of the local government, 
stating, "Unless the local residents around the Nago area say that 
they would approve if it were such and such, I can't go along with 
it." With Nago City having come out with the specific scope of the 
revision, there is now the possibility of a unified Okinawa position 
on the scope of the revision being presented to the government, 
possibly as early as the next meeting of the council. 
 
(2) Futenma talks: Focus on V-shaped airstrips 
 
 
TOKYO 00000164  002 OF 009 
 
 
YOMIURI (Page 3) (Abridged) 
January 8, 2007 
 
Tokyo and Washington have now concurred on relocating the US Marine 
Corps' Futenma Air Station in Ginowan City, Okinawa Prefecture, to a 
coastal area of Camp Schwab in the island prefecture's northern 
coastal city of Nago. The government will hold a third meeting of 
its consultative body on Jan. 19 with Okinawa's prefectural and 
municipal governments to kick off their talks in an effort to build 
an alternate facility for Futenma airfield. Tokyo and Okinawa, 
seeking to relocate Futenma airfield at an early date, are now 
searching for common ground, such as retouching the alternate 
facility plan. Their talks, however, still cannot be expected to 
reach an early agreement. 
 
Deputy Chief Cabinet Secretary Seiji Suzuki called on Nago Mayor 
Yoshikazu Shimabukuro at the Nago municipal government office 
yesterday afternoon. After that, Suzuki visited the villages of 
Higashi and Ginoza and the town of Kin to meet with their mayors, 
who also participate in the consultative body. In his meetings with 
them, Suzuki told the mayors that the government would like to 
relocate Futenma airfield with local understanding. 
 
Suzuki presides over the consultative body. His visit to Okinawa is 
a message to the local hosts, meaning that the prime minister's 
office (Kantei) commits itself to addressing the issue of Futenma 
relocation on its own responsibility, one of Prime Minister Abe's 
aides said. 
 
However, it is unclear whether the Kantei can resolve the situation 
under its initiative. 
 
In his meeting with Suzuki yesterday, Okinawa Gov. Hirokazu Nakaima 
stressed again that Futenma airfield should be closed down within 
three years and that he could not accept the government's current 
plan to build a V-shaped pair of airstrips in a coastal area of Camp 
Schwab. Okinawa has repeatedly called for the government to retouch 
its V-shaped airstrips plan and come up with a plan to get rid of 
Futenma airfield's danger by closing down Futenma airfield within 
three years. 
 
On Jan. 3, Defense Agency Director General Kyuma indicated that he 
would not insist on the government's V-shaped airstrips plan, saying 
he would not rule out building only one runway instead of laying 
down two airstrips in a V-shape. "If the United States, Okinawa, and 
the government agree, anything will do," Kyuma said. 
 
However, Chief Cabinet Secretary Shiozaki, meeting the press on Jan. 
5, stated that Futenma relocation would be based on the government's 
V-shaped airstrips plan. "He wanted to say it would be very 
difficult to change it to one runway," Shiozaki stressed. Foreign 
Minister Aso also negated Kyuma's remarks. "He didn't coordinate 
with the Foreign Ministry," Aso said. "His remarks will upset what 
we have decided to do," Aso added. 
 
The government is negative about making a substantial review of the 
V-shaped airstrips plan. The government, if it reviews the plan, 
will have to coordinate again with the United States. However, the 
United States is said to have already told Japan that the United 
States cannot comply with a request to talk about retouching the 
plan because there is no time to talk about it over again. 
 
In the government, some want to save the governor's face. The idea 
 
TOKYO 00000164  003 OF 009 
 
 
is to move the government-planned facility's location a few dozen 
meters to the seaside. This will help reduce the levels of aircraft 
noise in neighboring local communities. In addition, it needs more 
landfill and will profit local contractors. 
 
There is concern about what Kyuma really meant to say. "The 
governor's attitude is unclear, so he sent up a trial balloon to see 
local reaction," one of the prime minister's aides said. However, a 
senior official of the Cabinet Office voiced another concern, 
saying, "If the Kyuma statement has wings, Futenma relocation cannot 
go with a minor change in the plan." 
 
On Dec. 25, the government held a second meeting of its consultative 
body with Okinawa. In that meeting, the government indicated that it 
would consult with the United States on how to eliminate the danger 
of Futenma airfield. The government has plans to shorten the period 
of construction for the alternate facility and reroute US military 
aircraft flights. Meanwhile, Gov. Nakaima has called for setting up 
a temporary heliport within Camp Schwab. However, the Defense Agency 
deems it difficult to do so because such an on-base heliport will 
restrict US military operations, according to one of the agency's 
officials. 
 
The Defense Agency would like to set about an environmental 
assessment of the alternate facility in May. At first, Gov. Nakaima 
took the position that it was one thing to set about an 
environmental assessment and that it was another to start 
construction work. With this, the governor was poised to accept the 
government's proposal to set about an environmental assessment along 
with talks about how to remove the danger of Futenma airfield. 
However, the governor stiffened his attitude in a press conference 
on Dec. 27, saying he would not cooperate on Futenma relocation 
unless the government specifies how to close down Futenma airfield 
within three years. This statement can be taken as coming out of his 
consideration for local public opinion, and it showed the governor's 
wavering position. 
 
(3) Contrary to Education Minister Ibuki's explanation, his other 
offices reported expenses separately 
 
AKAHATA (Page 1) (Abridged slightly) 
January 12, 2007 
 
A series of "politics and money" scandals have emerged. Such 
lawmakers as Education, Culture, Sports, Science and Technology 
Minister Bunmei Ibuki and Agriculture, Forestry and Fisheries 
Minister Toshikatsu Matsuoka have reported large amounts of money as 
expenses for their main offices that are located in the rent-free 
Diet members' office buildings. Education Minister Ibuki explained: 
"The expenses included the rents for offices in Tokyo and Kyoto that 
are different from the one in the Diet member's office building." 
The Akahata's investigation yesterday proved otherwise. 
 
Ibuki's 2005 fund report prepared by his fund management 
organization, Meifukai, listed 41.46 million yen as office expenses. 
The Political Funds Control Law defines that office expenses shall 
include rents for offices of political organizations (land and 
house/apartment rents), fire insurance premiums, telephone fees, 
postal stamps, repair expenses, and the like. 
 
Over 40 million yen office expenses in the report have prompted some 
LDP members to comment: "Even if telephone charges and stamps were 
included, the amount would not come to that much." 
 
TOKYO 00000164  004 OF 009 
 
 
 
Ibuki's office explained this way: "Apart from the one in the Diet 
members' office building, he has offices in Tokyo and Kyoto, and 
their rents come to 18 million yen annually." 
 
But such offices as Meiyukai in Tokyo's Kawahiracho, the LDP Kyoto 
No. 1 constituency branch, the LDP Kyoto Meifukai branch, and the 
Shinpukai political group have all separately reported their office 
expenses. 
 
Ibuki also said, "Expenses for meetings, including wining and 
dining, cost 3 to 4 million yen." They should have been reported as 
organizational activities expenses under political activities 
expenses. It was a prime example of fund misappropriation. 
 
In December, Genichiro Sata failed to explain the expenses for his 
fictitious office and resigned as administrative reform minister as 
a result. "Payments do not always come with receipts. In such cases, 
payments must be handled as labor costs or office expenses," Ibuki 
said in an effort to rationalize his reports. Like Sata, Ibuki might 
be charged for having falsified political funds reports. 
 
The media have all taken up the office expenses issue following the 
Akahata's Jan. 3 article that reported that 18 lawmakers, including 
Liberal Democratic Party and Minshuto (Democratic Party of Japan) 
members, had reported over 10 million yen each in rent for their 
offices housed in rent-free Diet members' office buildings. 
 
(4) Thoughts on the new status of defense troops (Part 3) -- 
Changing SDF: How to secure operation costs? 
 
TOKYO SHIMBUN (Page 1) (Abridged slightly) 
January 12, 2007 
 
"What's this?" queried Japanese troops when they arrived in Iraq's 
southern city, Samawah, in January 2004, their heads tilted in 
doubt. 
 
What they saw there were the painted letters "repaired by Dutch 
troops" on the surface of a building obviously just repaired. The 
mission of Dutch troops who arrived in Samawah prior to a detachment 
of Ground Self-Defense Force (GSDF) troops was to control public 
order. Repairing facilities was a job for the GSDF to handle. 
Japanese soldiers wondered why the GSDF's turf was being invaded? 
 
Thirty-nine countries sent their troops to Iraq. But there were no 
troops sent on a mission of reconstruction assistance except Japan's 
ground troops. The mission of other countries' troops was to 
maintain security, but because many countries have a civil-military 
cooperation  (commonly called CIMIC) unit, they were already engaged 
in the work of repairing destroyed facilities and supplying water. 
 
Why does the military work in the area of civil cooperation? The 
reason is because hiring local residents to participate in 
reconstruction projects may help bring stability to the region. In 
other words, doing so is akin to insuring the troops. 
 
"Because of the lack of our overseas experience, we did not know at 
all there was CIMIC," a field officer in the Ground Staff Office 
noted. 
 
Japan set the maximum size of troops to be dispatched at 600, but 
since a number of those were needed as security guards, only 50 or 
 
TOKYO 00000164  005 OF 009 
 
 
less troops were actually assigned to an engineer unit. Obviously 
the engineering unit was short of hands. So, before long Japan gave 
up on the idea of rebuilding destroyed facilities with its own 
troops and adopted a CIMIC system in order to put the reconstruction 
work in Iraqi hands. 
 
There was a problem with this approach, though, because the 
Self-Defense Forces (SDF) have no system to pay for employment 
costs. After consultations with the Ministry of Finance (MOF), the 
SDF were allowed to pay the employment costs in the name of 
remuneration, something usually paid to lecturers. This item 
"remuneration" afterwards changed to the "expenses for maintenance 
of equipment." A total of 2.8 billion yen was eventually paid to 
employ Iraqis. 
 
Masahisa Sato, 46, who was at the time a colonel, headed the 1st 
assistance unit dispatched to Iraq, but he has since then retired 
from his post as of Jan. 11. He thought before going to Iraq that 
reconstruction assistance by only by the SDF would not be enough to 
meet all the local needs. "I thought," Sato said, "one good idea may 
be to somehow make official development assistance (ODA), 
particularly, grass-roots grant aid, available to the SDF. I then 
sought advice from MOF on this." 
 
The maximum amount of grass-roots grant aid offered to each project 
is set at 100 million yen. Though the amount is small, the selling 
point of this aid is that diplomatic missions abroad can decide to 
whether to approve a request for aid coming from non-government 
organizations (NGOs). Regarding this aid system, the SDF and the 
Ministry of Foreign Affairs (MOFA), which has stationed five 
officials in the Samawah camp, have shared the role with the SDF 
exploring local needs and MOFA giving the go-ahead to ODA projects. 
 
Under the Special Measures Law on Iraq Reconstruction Assistance, 
humanitarian assistance activities are defined as repairing damage 
from the Iraq war. But the fact was that the facilities Japan 
repaired were all obsolete buildings having nothing to do with the 
war. SDF activities in Iraq "loosened" laws and systems that should 
be strictly applied. 
 
The Japanese government praised the relations between the SDF and 
ODA as being like "two axles". But the SDF was vexed at ODA because 
they repaired regional hospitals in 32 locations in Iraq, but no 
medical equipment arrived before the repair work was completed. One 
former brigade chief, looking back on those days, commented: "Once 
one facility is repaired, the locals wanted chairs and beds for 
medical treatment use. But ODA, which required us to make a bulk 
order for equipment, did not meet the working pace of the SDF." 
 
"We wanted money we can use without any shackles like other 
countries have. If we grab money and take control of armed force, we 
may be criticized as something like an occupation force. But the 
hurdle of overseas missions has continued to rise at a steady 
pace." 
 
The costs of the two and half years of deployment of ground troops 
in Iraq amounted to 72.2 billion yen. This has become a proof that 
the government is generous to finance "troop dispatch to 
battlefields." 
 
However, debate on how far the SDF will be empowered has never 
developed. Is this because of fear of or indifference to the SDF, 
which has been becoming stronger step by step? 
 
TOKYO 00000164  006 OF 009 
 
 
 
(5) GSDF Colonel Sato to run in Upper House election 
 
MAINICHI (Page 2) (Full) 
January 7, 2007 
 
Ground Self-Defense Force Colonel Masahisa Sato, 46, who was the 
commander of the first Iraqi reconstruction assistance unit, will 
run this summer for the House of Councillors from a proportional 
representation bloc. 
 
According to a source concerned, Sato will likely be relieved of his 
post at his own request as of Jan. 11. The Liberal Democratic Party 
(LDP) is expected to announce soon its official recognition of his 
candidacy. Sato told a Mainichi Shimbun reporter on Jan. 6, "I'm 
considering (running for the Upper House) in a positive manner." 
 
Sato commanded GSDF advance troops deployed to the southern Iraqi 
city of Samawah. He was famous as the commander with a moustache in 
Samawah. He is now teaching at Ground Staff College Meguro as chief 
instructor. 
 
(6) Interview with Nomura Holdings President Nobuyuki Koga on 
triangular mergers 
 
NIHON KEIZAI (Page 7) (Full) 
January 12, 2007 
 
Q: What are the challenges for this year? 
 
A: Our effort to establish a foundation for sustainable profit is 
only halfway through. Above all, our largest challenge is to 
increase earning power in global markets. We will increase commodity 
and credit products so that the company will not be affected by 
market trends. Last year, we handled Sojitz's 300-billion-yen 
fund-raising case. We would like to handle many custom-made, 
composite fund-procurement cases similar to Sojitz's. 
 
Q: Last fall, your company decided to purchase Instinet, a major 
broker in the electronic market, for over 100 billion yen. 
 
A: Nomura has traditionally been strong in the share business 
utilizing research. Meanwhile, electronic commerce has rapidly 
spread in institutional investors in Western countries, and we 
didn't have the time to build such a system on our own. We have a 
complementary relationship with Instinet when it comes to the 
customer foundation and operational know-how. This year's challenge 
is to come up with the best way to combine the two companies' 
strength in anticipation of expanded e-commerce in Asia. 
 
Q: The triangular merger scheme allowing foreign companies to take 
over Japanese firms by swapping shares will be legalized in May. How 
are you going to give advice on M&As? 
 
A: We are not considering standing on the side of a foreign firm in 
handling the first case. We would rather like to become a trusted 
partner of a Japanese firm. Last year, we served as an adviser to 
Oji Paper in its attempt to merge its business with Hokuetsu Paper 
Mills. Although the plan fell through, we were able to present a new 
form of M&A that does not exist in Japan. We want to actively get 
involved in M&As that can increase the value of both companies. 
 
Q: Nomura Group opened Internet-based Joinvest Securities last May, 
 
TOKYO 00000164  007 OF 009 
 
 
but it has been struggling. 
 
A: The number of accounts is way below the original target, but that 
depends on the environment surrounding stock markets, as well. 
Joinvest is scheduled to have lines of products and services 
comparable to those of other Net-based securities firms by the end 
of this fiscal year, so we expect the number of accounts will grow 
smoothly in the future. Looking for new business chances besides the 
securities business in the rapidly growing world of the Internet is 
more important than profit. 
 
Q: This spring, you will have served full four years as president of 
Nomura Holdings. What is your target in the fifth year? 
 
A: It has been 10 years since the "Financial Big Bang" (large-scale 
deregulation program) was introduce. Nomura has been the king in the 
age of regulations. We want to become a challenger in a free market. 
It has also been 10 years since the corporate racketeer scandal 
involving Nomura broke out (in which the company's president was 
arrested). The last 10 years have been a period to transform the 
company to fit for the age of financial liberalization. 
 
Mentally, some employees still live in the age of regulations. A 
king never makes mistakes, but a challenger must not be afraid of 
making mistakes. I will make certain that the company will keep on 
challenging to reach the next level. 
 
(7) Scramble for natural resources - Part 5: Chinese companies 
serving as state vanguards, fomenting "China as a threat" argument 
in international community 
 
YOMIURI (Page 11) (Excerpts) 
January 9, 2007 
 
A plan of China National Offshore Oil Corp (CNOOC) to buy out Unocal 
Corporation, an American oil company, was unveiled in June 2005. 
Four months before the revelation, executives of CNOOC were 
discussing a Unocal buyout scheme in a TV conference with staff of 
the US influential lobbying law firm of Akin, Gump, Strauss, Hauer & 
Feld. A special team was set up with 12 members in Akin. In a bid to 
translate the buyout plan into practice, the Akin member met with or 
sent letters to more than 200 influential lawmakers and staff. But 
the Congress fiercely reacted to the takeover plan. Chuck Grassley, 
Senate Finance Committee chairman at that time, and other lawmakers 
sent to President Bush a letter protesting the takeover plan. They 
also asked the Committee on Foreign Investment in the United States 
to thoroughly investigate the plan. 
 
James Halloran, an analysis on energy policy commented: "It was 
proved that more political power than expected by China was 
necessary." 
 
China's takeover bid later developed into a national security 
problem. In late July, the Congress adopted a comprehensive energy 
bill incorporating a provision to prevent Chinese firms from taking 
over American petroleum companies. As a result, the CNOOC scheme was 
derailed. 
 
In its takeover bid, CNOOC focused its attention on the oil and gas 
fields in Asia whose exploitation rights are held by Unocal. Such 
oil and gas fields were advantageous to China geographically, as 
well as in light of energy security. In addition, Unocal's deepwater 
exploration and drilling technologies were attractive to China. 
 
TOKYO 00000164  008 OF 009 
 
 
 
CNOOC has continued takeover bids overseas even afterward. The 
Chinese company purchased concession rights to offshore oilfields in 
Nigeria for 2.3 billion dollars (approximately 270 billion yen) in 
¶2006. 
 
The CNOOC chairman confidently said, "We will continue to take every 
opportunity to obtain concession rights overseas." 
 
The Chinese government owns CNOOC, China National Petroleum 
Corporation (CNPC), and SINOPEC. The three state-owned oil companies 
have earned huge profits by selling oil exploited from domestic oil 
fields at low cost. CNPC earned 80 billion won (approximately 1.2 
trillion yen) only in the first half of 2006. 
 
"The three companies have a huge voice. There are cases in which 
summit diplomacy was carried out at their request," said a Chinese 
government official who once assumed a cabinet post. The chairmen of 
CNPC and SINOPEC are both senior members of the Communist Party and 
assume a cabinet-level post in the government. 
 
The Communist Party's Politburo headed by President Hu Jintao 
examines views presented to the government or the Communist Party by 
the three companies. Such views are reflected in its policies. 
Premier Wen Jiabao established a leading group on national energy 
policy composed of officials from the energy-related government 
offices in June 2005. Wen chairs the group. 
 
Close cooperation between the government and state-owned oil 
companies is behind Chinese companies' moves to obtain overseas 
concessions and energy diplomacy by President Hu. 
 
Such nation-wide forcible takeover bids tend to intensify the "China 
as a threat" argument in the international community. 
 
An annual report released last November by the US and China Economic 
and Security Policy Review Committee in the US Congress noted that 
China's takeovers "have begun to affect the capability of 
supply-demand adjustment on the oil market." It added, "China has 
not played an international role." 
 
"It is not correct to regard China's takeover bids as a threat. 
China is ready to cooperate with other countries," National 
Development Reform Committee head Ma said in an energy ministerial 
meeting of five countries in Beijing in December. But other 
participants remained cool. 
 
(8) Editorial: Unification of implementing agencies is good 
opportunity for developing strategic ODA 
 
MAINICHI (Page 5) (Full) 
January 11, 2007 
 
In the draft budget for fiscal 2007, the first year of reform to 
unify the revenue and expenditure systems, the official development 
assistance (ODA) budget for fiscal 2007 was cut four percent from 
the current year to 729.3 billion yen, the eighth straight year of 
decline. 
 
The actual budget increased from that of the initial general account 
budget because of the supplemental budget and borrowings (yen loans) 
from the fiscal investment loan program, as well as debt reductions. 
It is regrettable, though, that the administration of Prime Minister 
 
TOKYO 00000164  009 OF 009 
 
 
Shinzo Abe has not positioned ODA as one of its priority items. 
 
At the 2005 G-8 Summit in Gleneagles, Scotland, the government 
pledged to boost the ODA budget by 10 billion yen in five years. It 
also promised to double aid to Africa. The challenge also since the 
issuance of the latest ODA Charter has been for the government to 
come with a strategy for its overseas assistance. The ODA White 
Paper for fiscal 2006, as reported to the cabinet late last year, 
emphasizes the need for such a strategy. 
 
In an attempt to deal with such tasks, the government created last 
spring the Overseas Economic Cooperation Council under the 
leadership of the prime minister. It will present a plan 
reorganizing aid organizations in October next year. The reason is 
that the number of countries totally supported Japan's bid for a 
permanent seat on the United Nations Security Council (UNSC) was 
much less than the government had expected. It was felt therefore 
that Japan needed to come up with a strategy for aid that would help 
Japan secure UNSC bid votes at the UN. 
 
It is not that simple, though, to enhance the strategic aspect of 
foreign aid. Foreign aid per se is not necessarily linked to 
national interests. If Japan's aid helps the economy and society of 
aid-recipient countries, they will appreciate it. The aid also 
should address the poverty problem in those countries. 
 
Grant aid projects -- building schools, digging wells and improving 
public health -- that need small funds and adhere closely to local 
residents -- have produced results. That is because they are more 
helpful to improve livelihood, including peoples' lifelines. 
 
It is desirable to increase the percentage of such grant aid all the 
more because the ODA-related budget in the general account budget 
has decreased. Focusing more on small aid projects will be able to 
cover the drop in the ODA budget. 
 
It is also necessary to implement grant-in-aid, technical 
assistance, and yen loans as a package. As part of efforts for 
unification of ODA implementation organizations, the Japan 
International Cooperation Agency (JICA) will start implementing ODA 
programs in October 2008. This will be a good opportunity for Japan 
to fulfill its strategic goal. 
 
In that context, how about providing loans to Grameen Bank (in 
Bangladesh) that would go to micro-finance farmers? Muhammad Yunus, 
who was awarded the Nobel Peace Prize in 2006, came up with the 
scheme. Yen loans to the bank would enable it to offer small loans 
for agricultural development and reforestation. Japan's yen loans 
usually contributed to economic infrastructure development. It is 
possible to use them for such new issues as poverty reduction, peace 
building, and the prevention of global warming. 
 
It is important for the government not to cut ODA budgets at random, 
without recognizing the significance of ODA projects. At the same 
time, Japan needs to put an end to large-scale ODA projects. This is 
the path to strategic ODA. 
 
DONOVAN