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UNCLAS SECTION 01 OF 08 TOKYO 003548 
 
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: JAPANESE MORNING PRESS HIGHLIGHTS 08/03/07-2 
 
 
Index: 
 
Alliance relations: 
 
9) Japanese, US governments concerned over DPJ's opposition to 
antiterrorism law's extension 
10) Ambassador Schieffer trying to get on DPJ head Ozawa's calendar 
for a meeting on anti-terror law 
11) DPJ may be reconsidering its earlier rejection of 
Ozawa-Schieffer meeting 
12) Meeting of defense minister, Okinawa governor does little to 
lift the cloud of uncertainty around the Futenma relocation project 
 
 
DPJ in Upper House saddle: 
13) DPJ to submit own pension bill in short Diet session in August 
 
14) Abe government may compromise with DPJ on contents of civil 
service reform bill in fall Diet session 
15) DPJ has the power now to block key ruling camp appointments at 
the Bank of Japan 
16) With DPJ on top in the Upper House, it may not be that easy now 
for the opposition parties to line up forces to fight the ruling 
coalition 
 
Ruling coalition in flux: 
17) Ruling coalition already asks key cabinet posts, LDP factions 
seek consideration 
18) New Komeito, having tasted bitter defeat in election, may try to 
distance self policy-wise from its coalition partner, the LDP 
19) Prime Ministerial advisor Seko says that he no longer uses Abe's 
"beautiful country" slogan 
 
20) US, Japan restart talks to ease restrictions on US beef imports 
 
 
Articles: 
 
9) Japanese, US governments concerned over DPJ's opposition to 
antiterrorism law's extension 
 
YOMIURI (Page 2) (Abridged slightly) 
August 3, 2007 
 
The Japanese and US governments are increasingly concerned over the 
Democratic Party of Japan's plan to oppose en extension of the 
Antiterrorism Special Measures Law, slated to expire on November 1. 
The law has been the legal basis for the Maritime Self-Defense 
Force's refueling operation for vessels in the Indian Ocean of the 
United States, Britain and other counties. The Foreign Ministry 
fears that if the government failed to extend the law, MSDF 
withdrawal would follow and that would harm international 
cooperation on the war on terrorism and deal a serious blow to the 
Japan-US alliance at the same time. 
 
The antiterrorism law was established for supporting US and British 
military activities in Afghanistan. The law has been extended three 
times since its establishment in November 2001, and the DPJ has 
opposed it every time. President Ichiro Ozawa of the DPJ, which has 
become the largest party in the House of Councillors through the 
July 29 poll, indicated on July 31 that his party would continue to 
oppose the law's extension, saying: "We have always opposed it, and 
 
TOKYO 00003548  002 OF 008 
 
 
there is no reason to support it the next time around." 
 
In reaction, US State Department spokesman Tom Casey expressed 
strong hopes for the law's extension on August 1, saying: "We hope 
for the law's revision so that the United States and Japan will be 
able to continue to support the war on terrorism in every aspect." 
 
Washington is nervous because Japan's trend might affect activities 
in the Indian Ocean by the United States and other countries. 
 
By July 6, the MSDF has supplied to vessels of 11 countries a total 
of 480,000 kiloliters of fuel (on 763 occasions), 6,090 tons of 
water, and 930 kiloliters of helicopter fuel. If Japan withdrew, 
those countries would have to either procure fuel independently or 
ask another country to take over Japan's place. 
 
In particular, Pakistan relies heavily on fuel from the MSDF. "If 
the MSDF withdrew, Pakistan might follow suit," a senior Defense 
Ministry official said. 
 
A US State Department source, too, voiced concern that the MSDF's 
withdrawal might cast a pall on Japan-US relations. MSDF activities 
in the Indian Ocean, along with the SDF mission in Iraq, have been a 
symbol of the solid Japan-US alliance. 
 
Senior Vice Foreign Minister Katsuhito Asano in a press conference 
yesterday indicated that the government would seek the understanding 
of the DPJ, saying: "The matter must be settled in a way not to 
negatively affect the Japan-US alliance. We will explain that (MSDF 
activities) are vital for the war on terrorism in a way easier to 
understand than before." 
 
10) US envoy proposes meeting with Ozawa 
 
SANKEI (Page 5) (Full) 
August 3, 2007 
 
US Ambassador to Japan Schieffer has proposed meeting with Ichiro 
Ozawa, president of the leading opposition Democratic Party of 
Japan, sources said yesterday. In his letter of proposal to Ozawa, 
Schieffer said he would like to discuss "important issues." Ozawa 
has now already clarified his intention to oppose the idea of 
extending the Antiterrorism Special Measures Law, which is to expire 
Nov. 1. Schieffer's proposal to meet with Ozawa is apparently aimed 
at urging Ozawa to think twice about his opposition. Ozawa is 
considering whether to accept the proposal. 
 
11) DPJ positive about Ozawa-Schieffer meeting 
 
YOMIURI (Page 2) (Full) 
August 3, 2007 
 
The Democratic Party of Japan yesterday responded positively to a 
request for talks between its president Ichiro Ozawa and US 
Ambassador to Japan Thomas Schieffer. In the wake of the DPJ's 
landslide victory in the July 29 House of Councillors election, 
Schieffer had requested a meeting with Ozawa regarding the 
Antiterrorism Special Measures Law, but Ozawa had declined it. 
 
12) Futenma relocation growing uncertain 
 
SANKEI (Page 5) (Abridged) 
 
TOKYO 00003548  003 OF 008 
 
 
August 3, 2007 
 
Defense Minister Yuriko Koike met yesterday with Okinawa 
Prefecture's Gov. Hirokazu Nakaima at the Defense Ministry over the 
issue of relocating the US Marine Corps' Futenma Air Station in 
Ginowan, Okinawa Prefecture, to a coastal area of Camp Schwab in the 
island prefecture's northern coastal city of Nago. In the meeting, 
however, Nakaima declined to say whether he will agree to resume a 
consultative meeting with the government at an early date to discuss 
Futenma relocation. There has been no consultative meeting between 
the government and Okinawa over this issue for more than six months. 
In addition, Nakaima also remained noncommittal about whether he 
will consent to the government's proposal to conduct an 
environmental assessment of the relocation site. The ruling Liberal 
Democratic Party sustained a crushing defeat in the recent election 
for the House of Councillors. Consequently, questions are now being 
raised about the LDP-led government's capability of carrying out its 
policies. As it stands, Futenma relocation is now becoming even more 
uncertain. 
 
In the meeting, Nakaima asked Koike to consider Okinawa. "You know 
well about Okinawa," Nakaima said, "and people in Okinawa Prefecture 
trust you on the issue of relocating Futenma airfield." Nakaima 
added, "I'd like to ask you to understand the feelings of Okinawa." 
Meanwhile, the government has held no consultative meeting with 
Okinawa's prefectural and municipal governments over Futenma 
relocation since this January. The government wants to resume it at 
an early date. Nakaima, however, remained unclear about it. "We need 
to coordinate well," he said. 
 
In August last year, when Koike was minister of state for Okinawa, 
she made efforts to continue the government's local development 
projects with an annual outlay of 10 billion yen for Okinawa 
Prefecture's northern districts. The government had once called off 
the projects. The Okinawa prefectural government and base-hosting 
municipalities therefore welcomed Koike as defense minister, viewing 
her as a person of understanding for Okinawa. 
 
In her July 31 press remarks, however, Koike hinted at freezing the 
northern area development projects, for which the government makes 
it a precondition to facilitate consultations on Futenma relocation. 
Koike stated: "At this point, Okinawa has yet to accept the 
government's proposal for an environmental assessment. We'd like to 
facilitate consultations (with Okinawa's prefectural and municipal 
governments)." Officials from Okinawa's prefectural and municipal 
governments are now beginning to voice criticism. One local official 
said, "The government is trying to press Okinawa to accept its 
proposal of an environmental assessment while showing off its 
intention to freeze the projects." 
 
Furthermore, in the recent House of Councillors election, a unified 
candidate running from the opposition camp swamped an LDP candidate 
up for reelection. This is also a matter of concern to the Defense 
Ministry. The opposition parties are expected to demonstrate 
Okinawa's public opinion to Nakaima as shown in the election. As it 
stands, the opposition camp is highly likely to call for the 
governor to assume a strong attitude in his negotiations with the 
government. 
 
The government has a bitter experience. In 2004, after the crash of 
a Futenma-based US military helicopter in Okinawa, Gov. Keiichi 
Inamine at the time was under pressure from the opposition parties. 
 
TOKYO 00003548  004 OF 008 
 
 
Inamine squared off with the government. A Defense Ministry source 
voiced concern, saying: "The upper house is now controlled by the 
opposition parties, so the Kantei (prime minister's office) will be 
driven to deal with the Diet. I wonder if the Kantei can afford to 
turn its eyes to the realignment of US forces in Japan." 
 
13) DPJ to submit pension-related bill to Upper House 
 
YOMIURI (Page 4) (Full) 
August 3, 2007 
 
Naoto Kan, acting president of Minshuto (Democratic Party of Japan), 
revealed yesterday in a press conference that his party would submit 
a bill banning the use of pension premiums for other purposes than 
pension benefits to the House of Councillors in the upcoming 
extraordinary Diet session planned to convene on Aug. 7. He stated: 
"Our party is discussing whether we can submit the bill to the Upper 
House." 
 
Kan also said: 
 
"Presenting an important bill related to the pension record 
mismanagement issue, which was the major campaign issue in the Upper 
House race, will become a significant message to the public as our 
effort to implement our pledges in the election." 
 
The DPJ apparently aims to play up its presence in the Upper House, 
which the opposition now controls. 
 
DPJ President Ichiro Ozawa told those who had contracted hepatitis-C 
through tainted blood that his party would start discussion on the 
drafting of a bill to deal with hepatitis-B and C caused by 
contaminated blood products. The party will begin discussion on the 
issue on Aug. 8 in order to submit the bill to the extraordinary 
Diet session in the fall. Besides assistance for medical fees, the 
party reportedly is considering forcing the government to admit its 
responsibility for the matter so that the lawsuits will be 
resolved. 
 
14) Government mulling major concession to DPJ on amakudari 
regulations 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
August 3, 2007 
 
The government started yesterday considering the possibility of 
calling on the Democratic Party of Japan (DPJ) to hold talks and 
then to make a major concession on the DPJ bill designed to root out 
the practice of government officials finding employment in the 
private sector after retirement (amakudari). The DPJ plans to submit 
the bill to the House of Councillors in the extraordinary Diet 
session in the fall. Now that the opposition camp has control of the 
Upper House, the government and the ruling camp will be inevitably 
placed in a difficult situation in steering Diet affairs, but they 
plan to compromise to the DPJ where they can. This new approach on 
amakudari restrictions is likely to draw attention as a model case 
of the government making a significant concession. 
 
In the last ordinary Diet session, the government passed a bill 
amending the Civil Service Law to totally ban government agencies 
from helping their officials find reemployment. The law also 
proposes an exchange center for public and private personnel: a 
 
TOKYO 00003548  005 OF 008 
 
 
human-resource bank. An experts' panel has discussed how the 
envisioned center should be operated. 
 
Meanwhile, the DPJ intends to submit the bill that was rejected in 
the last ordinary Diet session. The bill includes severe 
restrictions on amakudari. The government and the Liberal Democratic 
Party now judges it possible to make concessions on these measures: 
(1) Prohibit government agencies from encouraging their staff to 
retire early; (2) abolish the concept of a new human-resource bank; 
and (3) apply the amakudari regulations to independent 
administrative agencies' staff. 
 
15) Personnel vacancies, including next BOJ governor, could remain 
if DPJ rejects nominees; Appointments at 35 bodies require approval 
of both Diet chambers 
 
YOMIURI (Top Play) (Excerpts) 
August 3, 2007 
 
The future course of key personnel appointments that require Diet 
approval, such the Bank of Japan (BOJ) governor and auditors of the 
Board of Audit (BOA), has become unclear due to the opposition 
takeover of the Upper House. Appointments of key officials require 
approval of both the Lower and Upper Houses. However, there is no 
second-decision rule for personnel management unlike the case with 
bills. As such, if personnel selections are voted down in the Upper 
House, the proposals will be rendered null and void. Since the DPJ 
has been opposing some personnel selections involving former 
bureaucrats, government agencies, which are now in the process of 
personnel transfers, are in great fear. 
 
Personnel selections at 35 organizations involving about 230 posts 
will require Diet approval. Such posts include the BOJ governor, 
auditors of the Board of Audit, public interest members of the 
Central Social Insurance Medical Council, personnel officers of the 
National Personnel Authority, and members of the Nuclear Safety 
Commission. Relevant laws stipulate that the cabinet appoints 
officials to those posts based on the approval of both chambers of 
the Diet. The BOJ Law stipulates the appointment of a BOJ governor, 
and the BOA Law provides the appointment of BOA auditors. 
 
One of the three BOA auditors will leave next February. The term of 
the BOJ governor will expire next March. The term of some of 
committee members of 11 bodies, including the Transport Council, 
will also expire. The government plans to submit personnel 
selections to replace those whose term expires within the year to 
the extraordinary Diet session in the fall. 
 
16) Opposition parties seeking own policy identities may erode joint 
struggle as DPJ emerges as sole-winner in election 
 
YOMIURI (Page 4) (Excerpts) 
August 3, 2007 
 
The chairmen of the Diet Policy Committees of three opposition 
parties -- the Democratic Party of Japan (DPJ or Minshuto), the 
Social Democratic Party (SDP) and the People's New Party (PNP) -- 
yesterday met for the first time since the Upper House Election. 
With the DPJ having won an overwhelming victory in the election, 
other opposition parties are now trying to display their own policy 
identities. There may be cases in which the DPJ will be pressed to 
make concessions to the others. 
 
TOKYO 00003548  006 OF 008 
 
 
 
SDP Diet Policy Committee Chairman Yasumasa Shigeno during the 
meeting urged: "The DPJ has won the Upper House election and become 
the largest party. However, it does not have a working majority. We 
would like it to serve as the pivot of joint struggles by opposition 
parties." Shigeno sought to constrain the DPJ from going off on its 
own in the Diet. 
 
DPJ Diet Policy Committee Chairman Yoshiaki Takagi stressed a stance 
of giving consideration to a joint struggles, noting, "Doing it 
while lending an ear to other opposition parties' stances will 
produce overall strength." The DPJ is giving consideration to a 
joint struggle because it wants to appeal to the public that it can 
secure Upper House passage of DPJ-sponsored bills, instead of being 
seen as just voting down bills introduced by the government and 
ruling parties, as one senior official put it. 
 
Takagi sought cooperation from Shigeno and others for the 
introduction of a bill prohibiting the diversion of pension funds 
for other purposes, such as the construction of welfare facilities. 
The SDP and the PNP will likely agree basically. 
 
However, there are gaps between the DPJ and other opposition parties 
in their approaches to a number of other issues. 
 
17) Ruling coalition already asks key cabinet posts, LDP factions 
seek consideration 
 
YOMIURI (Page 4) (Excerpts) 
August 3, 2007 
 
The Prime Minister's Official Residence (Kantei) and the ruling 
Liberal Democratic Party (LDP) have already engaged in skirmishes 
over the appointments of cabinet and LDP executive posts in the 
expected shuffle of the cabinet and the party's leadership. In the 
wake of the LDP's stunning defeat in Sunday's House of Councillors 
election, Prime Minister Shinzo Abe intends to rebuild his political 
footing by forming a unified party arrangement by shuffling the 
cabinet and LDP executive posts. In this connection, requests and 
views were raised in meetings yesterday of the LDP factions. 
 
Taku Yamasaki, a former LDP vice president, indicated a stance of 
cooperating with Abe in rebuilding the party, saying: "Since (Abe 
has insisted the need for) all the party to be represented, we 
(Yamasaki faction) want to play an important role." 
 
Yamasaki, at the same time, urged Abe to appoint LDP members from 
various factions, toting: "The reward-oriented appointment era is 
over. He should immediately dissolve the 'cabinet made up of his 
friends' and pick more capable persons from the party." 
 
Masahiko Komura, a former foreign minister, said in a meeting of his 
faction: "The prime minister should reflect on what he should 
reflect and send a message about his policy to the public. To that 
end, I want him to select appropriate persons in the cabinet and LDP 
posts." 
 
Last September when he formed his cabinet and the LDP executive 
lineup soon after he won a landslide in the LDP presidential race, 
he gave many key posts to lawmakers, who have close ties with him, 
including Chief Cabinet Secretary Yasuhisa Shiozaki, giving no 
consideration to factional intentions. As a result, many in the LDP 
 
TOKYO 00003548  007 OF 008 
 
 
expressed dissatisfaction. A senior Niwa-Koga faction member said 
that Abe picked only those having close ties with him. Pressure on 
Abe from within the LDP will likely strengthen due to the party's 
crashing defeat in the Upper House poll as well as the dismissal of 
Agriculture Minister Akagi. 
 
18) New Komeito adjusting distance with the Abe administration, 
having suffered deep scars from the election defeat 
 
MAINICHI (Page 5) (Excerpt) 
August 3, 2007 
 
The New Komeito, having tasted defeat in the recent Upper House 
election when it became caught up in the voter backlash against the 
Liberal Democratic Party (LDP), began its own summation of the 
election, starting with a meeting of central officers yesterday. The 
results of the election in which the party could not hold on to its 
13 seats but ended up with 9 seats, stunned the party and left it in 
a stupor. There are scars from the failure of its cooperation with 
the LDP to produce results. In addition, views are coming out now 
from the party for the Komeito to distance itself from the Abe 
administration by strengthening its own policy lines, such as on the 
issue of amending the Constitution. For party head Ota, steering the 
helm of the New Komeito will be a tough task. 
 
19) Special Advisor Seko in charge of public relations: I no longer 
say "a beautiful country" 
 
YOMIURI (Page 4) (Full) 
August 3, 2007 
 
"I never talked about your policy of creating 'a beautiful country' 
in my stumping speeches," Special Advisor on Public Relations 
Hiroshige Seko told Prime Minister Shinzo Abe. Seko was reelected 
from the Wakayama prefectural district in Sunday's House of 
Councillors election. Seko, who is in charge of national movement to 
promote Abe's policy of creating a beautiful country, appears to 
have urged the prime minister to revise his policy after going 
thorough an uphill battle in the campaign for the Upper House 
election. 
 
Abe often played up his "beautiful country" policy during his 
campaign trial in local areas. However, his Liberal Democratic Party 
(LDP) suffered a crushing defeat in the electoral districts where 
one seat was up for reelection, winning only six seats of 29, and 
losing 23. Although Seko won, he was unable to shout "banzai" and 
smile due to the LDP's devastating setback. 
 
Seko also told Abe: "I think we should come up with measures to 
improve the livelihoods of people to keep a balance with 
constitutional reform." The prime minister, who reportedly listened 
to Seko in a serious manner, has continued to talk about his 
"beautiful country" policy even after the Upper House election. 
 
20) Japan-US talks on US beef to discuss easing import conditions 
resumed 
 
ASAHI (Page 10) (Full) 
August 3, 2007 
 
Japan-US talks on easing US beef import conditions resumed in Tokyo 
yesterday. Responsible officials and experts from both countries 
 
TOKYO 00003548  008 OF 008 
 
 
will discuss BSE measures and the safety of US beef at a two-day 
meeting. 
 
The bilateral meeting started in late June. This is the second 
round. Like the previous round, Japan is asking the US to provide 
the latest information and explanations on its safety measures, 
including a feed regulation to prevent BSE infection. The US has 
reportedly prepared the latest data running to several hundreds 
pages, including data on BSE inspection results. 
 
Japan currently sets an import condition that limits beef eligible 
for exports to cattle aged 20 months or younger, which are believed 
to have a low BSE risk. It also requires the removal of specified 
risk materials. The US has elaborated on the efficacy of the feed 
regulation and the safety of US beef, based on latest data. 
 
At the outset of the meeting, representing Japanese participants, 
Koichi Mizushima, director of the Second North America Division of 
the Foreign Ministry, said, "Our understanding of the present state 
of the US risk control measures has deepened." If Japan judges that 
the US has provided data with sufficient details, the current round 
of the talks joined by experts will be the last. 
 
The arrangement is that the talks will shift to the next step -- 
negotiations to revise concrete conditions, and if a settlement is 
reached there, the Japanese government will consult the Cabinet 
Offices' Food Safety Commission about the easing of the import 
conditions. 
 
SCHIEFFER