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RUCNDT/USMISSION USUN NEW YORK 5442

UNCLAS SECTION 01 OF 08 TOKYO 003777 
 
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 08/16/07 
 
 
Index: 
 
Abe diplomacy: 
1) Prime Minister Abe travels to India Aug. 21, to pledge 40 billion 
yen in assistance 
 
2) Japan's search for role in Middle East peace process: FM Aso 
meets Israeli, Palestinian, Jordanian leaders, plays up "arc of 
peace and prosperity" initiative 
 
3) Defense Minister Koike to visit Pakistan and India, Aug. 21-25 
 
4) Koike-Moriya feud over next defense vice minister continues, 
further damaging image of Prime Minister Abe's dwindling leadership 
 
 
Yasukuni Shrine issue: 
5) Abe's ambiguity on Yasukuni Shrine visits scoring diplomatic 
points but angers conservative forces 
6) Minister for Okinawan Affairs Takaichi said she visited Yasukuni 
Shrine on Aug. 15 as a private citizen not as a cabinet minister 
7) Families of war dead would like to find way to bring back visits 
to Yasukuni Shrine even if that means removing the 14 Class A war 
criminals enshrined there 
 
8) Abe to continue the system of prime ministerial advisors, even 
adding specialist on pensions 
 
9) Despite a signing of a GSOMIA between US, Japan, a number of 
hurdles to defense secrets protection yet to be overcome 
 
Articles: 
 
1) Yen loans worth 40 billion yen to be extended to India: Prime 
minister to reach agreement during his visit to the nation starting 
on Aug. 21; Construction projects for water supply, power 
transmission systems 
 
YOMIURI (Top Play) (Excerpts) 
August 16, 2007 
 
The outline of a set of assistance measures intended to strengthen 
bilateral ties with India was revealed yesterday. The governments of 
Japan and India are expected to reach agreement on the package when 
Prime Minister Abe visits India starting on Aug. 21. The package 
contains approximately 40 projects covering six fields, including a 
new exchange project, economic assistance and cooperation in the 
environmental area. The package will be provided in fiscal 2007 
based on a stance that strengthening ties with India important for 
Japan's security policy, with an eye on China's moves in the region, 
and the development of the Japanese economy itself. The Japanese 
government with this package will actively support India's plan to 
build industrial infrastructure, linking Delhi in northern India and 
Mumbai in the western part. The two governments will also release a 
joint statement of cooperation on measures to address climate 
change. 
 
Forty cultural and academic exchange programs 
 
During his stay in India Aug. 21-23, the prime minister will have a 
summit meeting with Prime Minister Singh. He also will take part in 
cultural exchange events. 
 
TOKYO 00003777  002 OF 008 
 
 
 
The governments of Japan and India have characterized 2007 as a year 
of Japan-India exchanges. Six areas of bilateral relations will be 
strengthened by Abe's visit: (1) culture, performance art; (2) 
academic, personnel exchanges; (3) tourism; (4) economy and 
industry; (5) environment and energy; and (6) economic cooperation. 
 
As economic and industrial cooperation, Japan support a main artery 
plan to build industrial infrastructure, including the construction 
of roads and port and harbor facilities, in a corridor approximately 
1,400 kilometers long between Delhi and Mumbai. Japan hopes that the 
consolidation of infrastructure will make it easier for Japanese 
companies to make inroads into India. To this end, the government 
will extend yen loans totaling approximately 39.6 billion yen to 
finance two projects: a power transmission and transformation 
network consolidation program planned for Maharashtra and water 
supply service and sewer system construction program to be 
implemented in Goa in western India. 
 
Major projects aimed at strengthening ties between Japan and India, 
which Prime Minister Abe plans to announce 
 
(Culture, performing art) - Comic storytelling called "rakugo" 
performance in New Delhi 
 
(Academic, personnel exchanges) - Roundtable conference between 
Japanese and Indian university presidents 
 
(Tourism) - Increase the number of tourists coming and going between 
the two countries to 300,000 from the present number by 2010 and to 
500, 000 by 2015. 
 
(Economy and industry) - Promote the Delhi-Mumbai main industrial 
artery development program, including the building of roads and port 
and harbor facilities 
 
(Economic cooperation) - Yen loans worth approximately 39.6 billion 
yen for two domestic infrastructure building programs, including 
water supply service and sewer system construction 
 
2) Japan groping for expanded involvement in Middle East diplomacy 
 
ASAHI (Page 4) (Full) 
August 16, 2007 
 
Foreign Minister Aso, currently visiting the Middle East, held a 
four-party cabinet-level meeting with representatives from Israel, 
the Palestinian autonomous region, and Jordan. The meeting was held 
in Jericho in the Palestinian autonomous region on the West Bank of 
Jordan on the afternoon of Aug. 15, local time. In the meeting, Aso 
obtained their agreement for the Japan-proposed initiative, "Concept 
for Creating the Corridor for Peace and Prosperity." Japan is eager 
to play a certain role to help promote confidence building between 
Israel and the Palestinians, but there is still a long way to go 
before such an initiative can be realized. 
 
Foreign Minister Aso told Israeli Prime Minister Ehud Olmert when 
they met on Aug. 14: "We will take an approach to this issue not 
from the military or political area but on the economic front." The 
concept is designed for Japan, which aims to expand its involvement 
in the Middle East in a different form from the US and Europe, to 
provide economic support to help promote the peace process in the 
 
TOKYO 00003777  003 OF 008 
 
 
region, utilizing its experience of postwar reconstruction. 
 
Whether the concept is put into action or not depends on moves by 
the Israeli government. That government outwardly welcomes the 
concept, as Foreign Minister Tzipi Livni said: "It is necessary to 
give hope to Palestinian moderates in the economic area." But Livni 
said in a joint press conference with Aso on Aug. 14: "Political 
outlooks (such as the establishment of a Palestinian state) should 
be discussed at bilateral talks between Israel and the 
Palestinians." Against Japan's desire to expand its involvement in 
the Middle East peace process, the Israeli foreign minister defines 
Japan's concept not as the "main plot" but as the "sub-plot." 
 
No prospects are in sight for progress in peace negotiations. Prime 
Minister Olmert, who failed to deal properly with the Lebanon issue, 
has seen his support rate at a low level and his political standing 
weakening. On the Palestinian side, as well, its territories are 
divided into two, with the West Bank of Jordan under the control of 
Chairman Abbas and the Gaza Strip effectively controlled by Hamas, 
an Islamic radical group. Japan's concept calls for the construction 
of an agro-industrial park in the West Bank. But even if such a park 
is constructed, people might not be able to go to work there even if 
they wish, because the Israeli military bans the Palestinians in the 
autonomous territories from freely moving to other places for 
security reasons. The Israeli media pay attention to the proposed 
resumption of aid to the Palestinian Authority government as the 
star item of Foreign Minister Aso's visit, hardly focusing on the 
corridor concept. 
 
The Palestinian side also highly evaluated in the four-way talks 
highly expressed expectation that the Japanese concept would lead to 
its economic development. 
 
3) Defense Minister Koike to visit Pakistan, India 
 
YOMIURI (Page 4) (Full) 
August 16, 2007 
 
The Defense Ministry announced yesterday that Minister Koike would 
leave on Aug. 21 for Pakistan and India. She will be the first 
Japanese defense minister to visit Pakistan. She is expected to 
return home on the 25th. 
 
Koike is expected to meet with Pakistani President Pervez Musharraf 
and Prime Minister Rao Sikandar Iqbal and tell them the Japanese 
government will do its best to extend the Antiterrorism Special 
Measures Law in the extraordinary Diets session in the fall. 
 
In India, she plans to meet with Defense Minister A.K Anthony and 
other leaders to discuss the promotion of defense exchanges. 
 
4) Discord between Kantei, defense minister over appointment of vice 
minister: Prime minister takes wait-and-see attitude, showing 
further decline in his leadership 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 16, 2007 
 
Defense Minister Yuriko Koike hoped to obtain approval for the 
replacement of Vice Defense Minister Takemasa Moriya at a cabinet 
meeting yesterday. But it was decided instead that a new vice 
minister would not be selected until after the cabinet reshuffle on 
 
TOKYO 00003777  004 OF 008 
 
 
Aug. 27. Discord between the Prime Minister's Official Residence 
(Kantei) and the defense minister over which side will take the 
political lead has worsened. Prime Minister Abe's wait-and-see 
attitude has increasingly underscored his lack of leadership. 
 
During a press conference after the cabinet meeting yesterday, Koike 
strong rebutted Chief Cabinet Secretary Yasuhisa Shiozaki for his 
criticism of her for her attempted personnel action: "I have done 
nothing wrong in terms of procedure." 
 
The procedure, as mentioned by Shiozaki, means personnel changes 
must be reviewed by a council consisting of four Kantei officials: 
the chief cabinet secretary and three deputy cabinet secretaries. 
Appointments of personnel ranking above bureau directors general of 
all ministries and agencies require prior screening by that council. 
Koike reportedly failed to fully set the groundwork with Shiozaki 
and others, being in a rush to replace the vice minister before the 
cabinet shuffle. 
 
The personnel review council was launched during the Hashimoto 
cabinet. Shiozaki during a press conference on Aug. 15 deliberately 
explained the meaning of the council, "It is a new democratic device 
introduced to give the cabinet, Kantei and politicians the lead in 
personnel appointments." He then made a sarcastic comment, "I 
believe Defense Minister Koike should be aware of that." 
 
Koike takes pride in politically-guided personnel appointments and 
said, "It is the role of the defense minister to clarify the will of 
the Defense Ministry, which has jurisdiction over the Self-Defense 
Forces." Some cabinet ministers supported this stance of Koike, with 
Finance Minister Omi yesterday noting, "I would like the responsible 
person (cabinet minister) to appoint the vice minister, based on 
logic." 
 
However, regarding teamwork with the Kantei, Koike said, "I always 
give an overall report to the prime minister." It appears certain 
that the cause of the hurly-burly this time is that she has 
undergone coordination of the issue, bypassing Shiozaki. 
 
Facing a situation like this, Prime Minister Abe yesterday simply 
noted, "Defense Minister Koike is naturally responsible for her 
ministry." He did not even give an indication he would intervene in 
the issue. 
 
Some LDP lawmakers harshly criticized the prime minister for a 
series of commotions, with former Secretary General Koichi Kato 
saying, "This is too much to tolerate. This is another typical 
example of another blunder by the prime minister in his personnel 
appointments." 
 
5) Prime Minister Abe continues ambiguous strategy; forgoes visit to 
Yasukuni Shrine, angering conservative forces 
 
YOMIURI (Page 2) (Excerpts) 
August 16, 2007 
 
Prime Minister Shinzo Abe offered flowers at the Chidorigafuchi 
National Cemetery and attended a national memorial service for the 
war dead the government hosted yesterday on the 62nd anniversary of 
the end of World War II. But he forwent a visit to Yasukuni Shrine. 
Sanae Takaichi was the only Abe cabinet minister to pay homage at 
the Shinto shrine, the lowest number of cabinet ministers visiting 
 
TOKYO 00003777  005 OF 008 
 
 
the shrine in two decades. Abe's stance of refraining from visiting 
Yasukuni appears to be delicately affecting a number of areas. 
 
The prime minister's "ambiguous strategy" of forgoing shrine visits 
has been successful in repairing relations with China, which had 
deteriorated under Prime Minister Junichiro Koizumi. A government 
source said: "If the prime minister had visited Yasukuni, he 
wouldn't be able to visit China this fall." Political observers view 
that Abe's decision to forgo a visit to Yasukuni will great 
contribution to Japan's diplomacy. 
 
However, conservative supporters of Abe have begun expressing their 
displeasure with his stance of continuing his self-constraint. A 
group of 73 such conservatives with close ties to Abe, including 
Kyoto University Prof. Terumasa Nakanishi, sent a letter on Aug. 13 
calling on the prime minister to visit Yasukuni on the 15th. 
Lawmaker Yoshinobu Shimamura, who heads the group, criticized Abe, 
saying: "He doesn't seem to be himself. He should have visited the 
shrine." 
 
6) State Minister Takaichi visits Yasukuni Shrine, stressing that 
the visit was made in a private capacity 
 
TOKYO SHIMBUN (Page 2) (Full) 
Augusts 16, 2007 
 
Of 16 ministers of the Abe cabinet, only State Minister in Charge of 
Okinawa and Northern Territories visited Yasukuni Shrine on Aug. 15, 
which marked the day commemorating the end of WWII. 
 
After visiting the shrine, Takaichi told reporters, "I thanked those 
who dedicated their invaluable lives to the state and prayed for a 
peaceful rest for the souls." To a question whether she made the 
visit in a private or official capacity, she stressed that she 
visited the shrine in a private capacity, noting, "I visited there 
as an individual Japanese." 
 
Commenting on Takaichi's Yasukuni visit, Prime Minister Abe, who 
refrained from visiting the shrine, noted, "Ms. Takaichi visited the 
shrine, based on her own judgment. Cabinet ministers are free to 
visit the shrine." 
 
7) Families of war dead picking up speed of debate on enabling 
emperor to visit Yasukuni Shrine even by removing enshrined souls of 
Class-A war criminals 
 
MAINICHI (Page 5) (Slightly abridged) 
August 16, 2007 
 
Whether (the prime minister) would visit Yasukuni Shrine on Aug. 15 
becomes a controversial issue every year. As measures to avoid such 
a situation, some are calling for removing the enshrined souls of 
Class-A war criminals from Yasukuni Shrine, a proposal made in May 
of last year by former Liberal Democratic Party Secretary general 
Makoto Koga, chairman of the Japan War-Bereaved Association. 
Yasukuni Shrine has rejected this suggestion, but Koga insists that 
it should be done to make it possible for the emperor to be able to 
pay tribute to the war dead without feeling uncomfortable. There has 
been no imperial visit to the shrine either by the Emperor Showa and 
the current emperor for the past 32 years. An association managing 
director expressed a sense of alarm about the current situation, 
saying: "Our members are getting older. We must do something before 
 
TOKYO 00003777  006 OF 008 
 
 
they lose their voice." 
 
A study group - composed of 14 leading association members to 
discuss the idea of removing Class-A war criminals from Yasukuni - 
held its first meeting this May. Many members believe that since the 
souls of Class-A war criminals are enshrined there, it is impossible 
for the emperor to visit the shrine. But some leading association 
members, including Vice Chairman Hidehisa Otsuji, remained cautious 
before the July Upper House election about holding a full-scale 
discussion on the matter, as one member said: "The association might 
split over the issue." 
 
Otsuji won a fourth term in the proportional representation segment 
of the Upper House election in July. It is now definite that he will 
be appointed to chair the LDP Upper House Caucus. A leading 
association member in favor of separate enshrinement said: "(With 
the election of Otsuji,) discussion on the matter will be put on 
track at last." 
 
Although discussion will start in September, a majority of the 14 
members have already expressed support for the separate-enshrinement 
idea. 
 
The association's predecessor, the Japan War-Bereaved Welfare 
Association, was established in 1947. It was an overwhelmingly huge 
organization, called an association of 8 million bereaved families. 
The group continued to field its candidates on the LDP ticket in the 
proportional representation portion, and the candidates were all 
elected. 
 
These Upper House members requested increasing survivors' pension 
benefits, placing Yasukuni Shrine under state protection in the 
1960s, and allowing the prime minister's annual visit to the shrine 
in the mid-1970s, working together with Yasukuni Shrine. 
 
Regarding the separate-enshrinement idea, the association noted in 
its special committee report issued in commemoration of the 60th 
anniversary of the end of the war: "A judgment should be made by 
Yasukuni Shrine," but the atmosphere in it has changed since 
notebooks and memos showing the Emperor Showa's displeasure at the 
enshrinement of the souls of Class-A war criminals at Yasukuni were 
found in succession last summer. 
 
The wives of fallen soldiers are their late 80s. The number of 
members has also decreased to less than one million. Another 
managing director said: "I had never thought of removing Class-A war 
criminals from the shrine. But now I am uncertain. We must discuss 
the matter for a year or two, if we do. If we do nothing, the 
situation will never change." 
 
8) Posts of special advisors to the prime minister to be kept, but 
post of special advisor on national security to be abolished, while 
special advisor on pension issue to be created 
 
NIKKEI (Page 2) (Full) 
August 16, 2007 
 
Prime Minister Shinzo Abe decided yesterday to keep intact the 
special prime ministerial advisor system, which has been criticized 
for not functioning well, even after the cabinet is reshuffled he 
plans on the 27th. He has also started looking for a possibility of 
establishing the post of special advisor on the pension issue. The 
 
TOKYO 00003777  007 OF 008 
 
 
expectation is that the post of special advisor on national 
security, which has been vacant since Yuriko Koike was appointed as 
defense minister, will be scrapped. Abe thinks that this advisory 
post has concluded its role. 
 
Under the present Cabinet Law, the prime minister is allowed to set 
up five or less special advisor posts. Last September when Abe 
launched his government, he created five such posts: national 
security; economic and fiscal policy; the abduction issue; 
education; and public relations. 
 
The prime minister intends to strengthen efforts to deal with the 
missing pension premiums fiasco, by creating a special advisor post 
on the pension issue, which would play a "bridging" role between 
relevant ministries and agencies. 
 
The special advisor on national security was set up in order to 
study the establishment of a Japanese version of the US' National 
Security Council (NSC). The post, however will be abolished Abe 
shuffles his cabinet, since the government has already submitted to 
the previous regular Diet session a bill to establish a national 
security council. 
 
There are objections in the ruling camp that role-sharing between 
the special advisors and cabinet ministers is not clear and that 
nobody knows what they are doing. Some lawmakers are unhappy with 
the fact that Abe picked lawmakers who have close ties with him as 
special advisors. In consideration also of those who are critical of 
him, Abe plans to select a new set of advisors. 
 
9) GSOMIA with US: Still legislative hurdle to clear; penalties 
inconsistent 
 
SANKEI (Page 5) (Abridged) 
August 16, 2007 
 
The Japanese and United States governments have signed a General 
Security of Military Information Agreement (GSOMIA) in order to 
prevent the leakage of defense secrets, setting up a unified 
standard for the protection of classified information. With the 
signing of the agreement, it would seem that sharing of intelligence 
between the two governments can now move forward. However, there are 
many hurdles yet to overcome, including the passage of legislation 
to protect secrets. 
 
The US has signed GSOMIAs with over 60 countries, centering on NATO 
countries, such as Britain and France. Although the US had wanted to 
sign a similar pact with Japan, the Japanese government was cautious 
due to deep-seated public opposition toward passing stronger 
legislation to protect secrets. 
 
However, the mood for signing such a pact improved with the 
strengthening of relations between the Self-Defense Forces (SDF) and 
the US armed forces through the passage of the regional contingency 
law that allowed cooperation between Japan and the US during an 
emergency in Northeast Asia. 
 
Despite that, the stiffening of penalties for leaking secrets, which 
the US has insisted on, is being delayed, and the GSOMIA has started 
under the current legal framework (SDF Law, National Civil Servants 
Law, etc.). Under existing laws, the penalties are inconsistent, 
ranging from one year to ten years, depending on the law. An 
 
TOKYO 00003777  008 OF 008 
 
 
advisory panel in February, in pointing this out, called for 
legislation to protect secrets. The US' legislation to protect 
secrets is broad in scope and includes civilians. The penalties are 
 
SIPDIS 
much stiffer than Japan's. 
 
MESERVE