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UNCLAS SECTION 01 OF 03 TOKYO 003512 
 
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 08/01/07-2 
 
 
Index: 
 
(8) What will become of Abe administration? 
 
(9) Even in the end, a cabinet minister full of surprises; 
Inconsistent Kantei dismisses farm minister Akagi 
 
(10) Jun Yokota picked government envoy to EPA talks with Vietnam 
and Switzerland 
 
ARTICLES: 
 
(8) What will become of Abe administration? 
 
YOMIURI (Page 1) (Abridged slightly) 
July 31, 2007 
 
Prime Minister Shinzo Abe held his first press conference after the 
July 29 House of Councillors election at the Liberal Democratic 
Party's large conference room yesterday afternoon. He expressed his 
strong desire to stay in office, saying: 
 
"While I was on the nationwide campaign trail, I constantly thought 
about the results of this election and what I must do. I will not 
run away. Although the situation is extremely severe, I have decided 
to stay in office because a political vacuum is not allowed." 
 
Abe, who was first elected to the House of Representatives in 1993, 
vividly remembers the country's economic ups and downs under the six 
administrations led by Prime Minister Hosokawa to Mori in seven 
years. 
 
Abe's decision was backed in part by calls for him to remain in 
office regardless of the outcome of the Upper House election. 
 
When former Prime Minister Junichiro Koizumi visited Nagoya on July 
21 to stump, he told local assemblymen: "Chances are low for the LDP 
to win even 40 seats. The number of seats does not matter. The prime 
minister does not have to step down, either." Koizumi's encouraging 
message reached Abe. Former Prime Minister Yasuhiro Nakasone also 
advised Abe: "No matter how the race turns out, you must carry 
things out boldly based on your beliefs." Foreign Minister Taro Aso, 
the frontrunner in the race to replace Abe, also called on Abe at 
the Prime Minister's Official Residence (Kantei) on the afternoon of 
July 29 to encourage him. 
 
But in the wake of the LDP's historic setback, Abe is certain to 
lose his momentum. 
 
Although factional heads in the party basically support Abe's 
decision to stay on, they are not in agreement to face the next 
Lower House election under Abe's leadership. A former cabinet 
minister said: "If Mr. Abe steps down early, the new prime minister 
won't be regarded as too fresh. We will wait and see how things turn 
out. If his cabinet support rate continues to plummet, then he must 
go." 
 
There are about two years left before the Lower House lawmakers will 
serve out their term. Fierce political bargaining is expected to 
occur with a view to becoming Abe's successor. 
 
Meanwhile, given a reversal of places between the ruling and 
 
TOKYO 00003512  002 OF 003 
 
 
opposition blocs through this election, how to run Diet business is 
the greatest challenge for Abe, who is struggling to maintain his 
momentum. In the extra Diet session in the fall, the government must 
extend the Antiterrorism Special Measures Law, scheduled to expire 
in November. To do so, the DPJ's cooperation will be essential. 
 
Staffing the Official Residence (Kantei) with his close friends, 
Abe's efforts for building consensus in the LDP and convincing the 
opposition block have all been insufficient. Apparently aware of 
such shortcomings, Abe expressed in the July 30 press conference his 
willingness to lend an ear to the DPJ's views. 
 
Abe is also being urged to appoint individuals capable of building 
communication channels to the DPJ in reshuffling his cabinet and LDP 
executives in the weeks ahead. 
 
As for his slogans of creating a beautiful country and breaking away 
from the postwar regime, no alternative policies have yet to come 
into sight. 
 
The prime minister also plans to take a step forward toward revising 
the Constitution based on a set of proposals to be produced this 
fall by the blue-ribbon panel now studying the option of allowing 
the country to exercise the right to collective self-defense, a 
theme disagreeable to the New Komeito. But given the results of 
Sunday's election, that plan, too, now seems difficult. 
 
A rough and thorny path lies ahead for Prime Minister Abe. 
 
(9) Even in the end, a cabinet minister full of surprises; 
Inconsistent Kantei dismisses farm minister Akagi 
 
ASAHI (Page 13) (Excerpts) 
Eve., August 1, 2007 
 
Agricultural Minister Akagi resigned his post this morning. One 
apparent reason for the Liberal Democratic Party's (LDP) defeat in 
the Upper House election was that the electorate grew tired of his 
avoiding detailed explanations about his shady office expenses, 
suspiciously bandaged face, and copies of his receipts. The view is 
that he should have quit before the election. By "replacing" him 
when it was already too late, the crisis management capability of 
the Abe Cabinet will once more be questioned. 
 
A staffer in Akagi's office revealed: "He, too, felt from the start 
that he bore a responsibility for the Upper House election result. 
He seems to have made up his mind to resign last night." After Akagi 
resigned, he was surrounded by a crush of reporters at the Prime 
Minister's Official Residence (Kantei). As questions flew at him, he 
stopped and calmly answered them. 
 
Regarding the historical defeat in the Upper House election for the 
LDP, he stated: "It is an obvious fact that this was one of the 
factors that led to defeat. I feel extremely sorry about that, and I 
would like to bring this matter to a close." He calmly admitted that 
the issue of his office expenses, about which he refused to provide 
details, was a major factor leading to the election defeat. 
 
Asked by a reporter if he had been "dismissed," after pausing a 
moment, he stressed that it was his own decision, staring fixedly at 
a point with reddened eyes: "I requested that I wanted to resign, 
and the prime minister said that he understood." He said that he 
 
TOKYO 00003512  003 OF 003 
 
 
would hold a press conference later to give more details about the 
receipts issue. 
 
(10) Jun Yokota picked government envoy to EPA talks with Vietnam 
and Switzerland 
 
ASAHI (Page 4) (Full) 
August 1, 2007 
 
The government decided yesterday in a cabinet meeting to appoint 
Ambassador for International Economic Affairs Jun Yokota as 
government envoy to negotiations on Economic Partnership Agreements 
(EPAs) with Vietnam and Switzerland. The formal announcement was 
made on July 31. 
 
Jun Yokota joined the Ministry of Foreign Affairs in 1971, after 
leaving the University of Tokyo in mid-course. He has served as 
ambassador for international economic affairs since September 2006. 
He is 60 years old. 
 
SCHIEFFER