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Viewing cable 07TOKYO437, DAILY SUMMARY OF JAPANESE PRESS 01/31/07

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Reference ID Created Released Classification Origin
07TOKYO437 2007-01-31 08:20 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO3288
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0437/01 0310820
ZNR UUUUU ZZH
P 310820Z JAN 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0225
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 2186
RUEHFK/AMCONSUL FUKUOKA 9717
RUEHOK/AMCONSUL OSAKA KOBE 3185
RUEHNAG/AMCONSUL NAGOYA 9174
RUEHKSO/AMCONSUL SAPPORO 0720
RUEHBJ/AMEMBASSY BEIJING 5653
RUEHUL/AMEMBASSY SEOUL 1738
RUCNDT/USMISSION USUN NEW YORK 3148
UNCLAS SECTION 01 OF 04 TOKYO 000437 
 
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 01/31/07 
 
 
INDEX: 
 
INDEX: 
(1) Gaps between New Komeito and LDP seen in Diet interpellations 
 
(2) Editorial: National interests negatively affected by cabinet 
ministers' controversial statements 
 
(3) Behind-the-scenes tug-of-war over JBIC: Finance Ministry 
resisting proposal for unifying government-affiliated financial 
institutions 
 
ARTICLES: 
(1) Gaps between New Komeito and LDP seen in Diet interpellations 
 
YOMIURI (Page 4) (Full) 
January 31, 2007 
 
A subtle rift has developed between the New Komeito and the Abe 
government. At a question-and-answer session yesterday, New Komeito 
Chief Representative Akihiro Ota sought to constrain and even made 
special requests to Prime Minister Shinzo Abe. According to opinion 
polls conducted by the Yomiuri Shimbun, the Abe cabinet's 
disapproval rating among New Komeito's supporters has gradually 
increased. The coalition of the LDP and New Komeito has begun to 
weaken. 
 
Ota urged Abe twice to tackle welfare and labor issues in a positive 
manner. He apparently tried to call on the prime minister to work 
positively to resolve immediate problems, admonishing Abe for 
attaching priority to constitutional reform. 
 
Ota fell in line with Abe on amending the Constitution by expressing 
a willingness to pass a national referendum bill during the current 
Diet session. But he also tried to constrain Abe, who is eager to 
speed up the process of amending the Constitution by stating: 
"During the three years from the passage of the referendum bill 
until its implementation, full-scale research on the constitution 
and calm debate should be carried out." 
 
Regarding the "politics and money" scandals, Ota stressed the need 
for an early revision of the Political Funds Control Law, saying, 
"Attachment of receipts of 50,000 yen or over for office expenses 
should be obligatory." 
 
Abe has repeatedly stated: "We should draft our own constitution. 
The ruling and opposition camps should have in-depth debate." On the 
handling of the Political Funds Control Law, Abe said: "Debate 
should occur on the issue, including the possibility of amending the 
law." 
 
Ota made his remarks because he is concerned that the political 
drive of Prime Minister Abe does not match what the public wants. 
Even in the religious sect Soka Gakkai, the New Komeito's backer, 
the view has emerged that "we need policy measures for such 
immediate issues as jobs and education; and we don't think 
constitutional reform should be a priority issue." 
 
Opinion polls reflect a similar view. The cabinet disapproval rate 
among the supporters of New Komeito was about 10 percent last 
October immediately after the Abe government was inaugurated. The 
disapproval rate increased to 20 percent in January. Thought the 
cabinet approval rate among New Komeito supporters has stayed high 
 
TOKYO 00000437  002 OF 004 
 
 
at about 70 percent, "moderates among the supporters" are gradually 
distancing themselves from Prime Minister Abe. 
 
If the "politics and money" scandals continue, the New Komeito's 
distrust of the Abe government will deepen even more. 
 
(2) Editorial: National interests negatively affected by cabinet 
ministers' controversial statements 
 
SANKEI (Page 2) (Full) 
January 31, 2007 
 
Controversial remarks by cabinet ministers have been cropping up in 
succession as if the Abe cabinet has gone off the rails. 
 
Prime Minister Shinzo Abe said in a ministers' meeting yesterday: "I 
want you to be cautious in making remarks." 
 
However, the situation is quite serious. Such remarks might damage 
the national interests. The prime minister must demonstrate strong 
leadership, without leaving the current situation unattended. He 
should keep even the option of dismissals in mind. 
 
A remark by Health, Labor and Welfare Minister Hakuo Yanagisawa has 
also set off sparks. In reference to countermeasures to the falling 
birthrate in a speech on Jan. 27, Yanagisawa said, "Since the number 
of baby-making machines (women) is limited, there will be no other 
means but for each to do her best." He later offered an apology, 
explaining, "I tried to give an explanation by using an economic 
simile." His remark is quite inappropriate and beyond common sense. 
 
Meanwhile, a series of statements by Defense Minister Fumio Kyuma 
are also creating a stir, as represented by Policy Research Council 
Chairman Shoichi Nakagawa saying, "The relationship of trust between 
Japan and the US might be undermined." 
 
Kyuma criticized President Bush's decision on the Iraq war as based 
on a wrong judgment. He has also made remarks critical of the 
response by the US government to the issue of the relocation of the 
US Marine Corps' Futenma Air Station, such as, "The US should not be 
so arrogant." 
 
The US has already expressed its displeasure at Kyuma's criticism of 
President Bush. Although Japan is searching for the possibility of 
holding a Japan-US Security Consultative Committee (2+2) meeting 
this month, a US government official commented, "It is difficult to 
hold a meeting under the present situation." 
 
Since assuming his current post, Defense Minister Kyuma has made a 
series of statements inconsistent with Prime Minister Abe's views on 
security issues. On the possibility of Japan intercepting a 
ballistic missile heading over Japan toward the US, too, the prime 
minister indicated that Japan should study the possibility, in view 
of the right to collective self-defense, but the defense minister 
took a cautious view. 
 
We do not want to take the view that the defense minister has made 
light of the Japan-US alliance relationship, but his controversial 
remarks have worked to weaken the Japan-US security arrangement, 
which is the lifeline for peace and safety in Japan. This is really 
something grave. 
 
In an opinion survey conducted by FNN on Jan. 27-28, 61 PERCENT  of 
 
TOKYO 00000437  003 OF 004 
 
 
respondents said they were "not pleased" with the prime minister's 
leadership, while only 16 PERCENT  said they were "pleased." If the 
prime minister remains silent about the lack of unity in the 
cabinet, it might be the end of the road for his administration. 
 
(3) Behind-the-scenes tug-of-war over JBIC: Finance Ministry 
resisting proposal for unifying government-affiliated financial 
institutions 
 
SANKEI (Page 11) (Full) 
January 31, 2007 
 
The government intends to submit a bill for establishing a Japan 
Policy Finance Corporation, a new government-affiliated financial 
institution, to the current Diet session. In this connection, a 
battle is continuing over a plan to keep only the Japan Bank for 
International Cooperation (JBIC) under the jurisdiction of the 
Finance Ministry in place as an exception to the reorganization of 
government-affiliated banks. The Council on Economic and Fiscal 
Policy (CEFP) has decided to unify public lenders, including the 
JBIC, into one. However, the Finance Ministry (MOF) has coordinated 
views with the intention to incorporate a regulation for making the 
JBIC a separate entity. However, the CEFP on Jan. 29 rejected this 
proposal for making the JBIC a separate entity without amending 
related laws. How this will be settled has yet to be determined. 
 
It has already been decided that among services offered by the JBIC, 
official development assistance (ODA) operations are to be 
transferred to the Japan International Cooperation Agency (JICA), 
and its international financing sector is to be consolidated along 
with four other government-affiliated institutions, such as the 
National Life Finance Corporation and the Japan Finance Corporation 
for Small Business. 
 
However, since then Finance Minister Sadakazu Tanigaki fiercely 
opposed a proposal for integrating the JBIC and other public 
lenders, a settlement was in the end reached with Prime Minister 
Junichiro Koizumi lashing out at those who lack a desire to 
implement reform as forces of resistance. For this reason, 
discontent is smoldering in the MOF even now. 
 
MOF is seemingly taking a cautious stance toward the idea of making 
the JBIC a separate entity with, Vice MOF Minister Hideto Fujii 
noting, "It is unthinkable to make the JBIC a separate entity 
without amending relevant laws." However, since the outline of the 
legislation was revealed last December, MOF is determined to bring 
about a role-back. As a result, a plan to incorporate a regulation 
allowing establishment of the JBIC as a separate institution into an 
agreement stipulating that the MOF minister, the competent minister 
in charge of the integrated institution, and others decide on the 
form of the organization to be created anew has surfaced. 
 
However, opposing such a drive pursued by MOF, State Minister in 
charge of Administrative Reform Yoshimi Watanabe during a CEFP 
meeting on Jan. 29 presented the outline of the legislation, which 
categorically mentioned that international financing operations will 
be carried out under the name of the JBIC, but it is impossible to 
establish a subsidiary unless related laws are amended. State 
Minister for Economic and Fiscal Policy Hiroko Ota stressed to a 
news conference, "Participants highly evaluated the legislation." 
 
The outline of the legislation adopted MOF's view that using the 
name of the JBIC for the international financing section will give 
 
TOKYO 00000437  004 OF 004 
 
 
international trustworthiness to it. However, since the JBIC 
governor and deputy governor are former MOF officials, a way to 
essentially keep the JBIC intact has been cut off due to strong 
criticism from the Prime Minister's Office (Kantei) that leaving the 
JBIC intact means preserving an organization that accepts retired 
MOF officials. 
 
The Japan Policy Finance Corporation bill is expected to be 
submitted before the end of February. However, since MOF is expected 
to press ahead with its efforts to secure its interests, a 
behind-the-scenes tug-of-war is expected. 
 
 ASTERISK  The government's Experts Council on Administrative 
Downsizing and Promotion of Streamlining (chaired by Yuzaburo Mogi, 
chairman of Kikkoman) met yesterday at the Kantei. Participants 
approved the outline of the bill privatizing the JBIC and 
Shokochukin Bank in the drive to reform government affiliated 
financial institutions and approved that the bill be submitted to 
the Diet by Feb. 13, the deadline for the submission of 
budget-related bills. The panel will again discuss the specifics of 
the Japan Policy Finance Corporation bill with the aim of submitting 
the bill before the end of February. 
 
SCHIEFFER