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UNCLAS SECTION 01 OF 12 TOKYO 003884 
 
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 08/23/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Abe in India: 
4) Abe, Singh agree to fight global warming, issue joint statement 
 
5) Prime Minister Abe's stress on economic cooperation with India 
aims at checking China's growing regional influence 
 
6) Pakistan's president tells Defense Minister Koike that Japan must 
extend the anti-terror law that allows Indian Ocean refueling, 
including Pakistani ships 
 
DPJ in action: 
7) Former Democratic Party of Japan (DPJ) President Maehara 
expresses approval for Diet extension of the Anti-Terrorist Special 
Measures Law 
8) Maehara favors revision of bill to extend the anti-terror law 
before Diet gives its approval 
9) DPJ sending fact-finding mission to the US in connection with row 
over extending the anti-terror law 
10) Maehara: 99.9 PERCENT  sure that there will be no "grand 
alliance" between the DPJ and LDP 
 
Abe in trouble: 
11) Former defense chief Nakatani says, "The prime minister should 
quit" 
12) LDP does post mortem on Upper House election loss but stops 
short of blaming Abe 
13) Local chapters of the coalition partner New Komeito are 
shouting: "Leave Abe's LDP!" 
14) Growing mood in the New Komeito from the regions to the center 
that the party should "part ways with Abe" 
 
15) METI aims at expanding mutually financed oil stockpiles in East 
Asia, starting with a pact with New Zealand 
 
16) Defense Ministry estimates that a next-generation Stealth-type 
fighter aircraft would cost 14 billion yen, based on domestic 
technology 
 
17) Government plans to launch liberalization of farm land next year 
to allow large-scale agro-business 
 
18) Japan's birth rate took another dive during the first half of 
this year 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
TEPCO asks 23 companies to cut power use 
 
Mainichi: 
Saga Kita wins 1st Koshien title 
 
Yomiuri: 
Government to liberalize farmland lease to companies in FY2008 
 
TOKYO 00003884  002 OF 012 
 
 
 
Nikkei: 
Showa Denko, others cut output on TEPCO's reduced power supplies 
 
Sankei: 
Japanese, Indian leaders agree to strengthen bilateral security 
cooperation 
 
Tokyo Shimbun: 
Japan, India agree to work together on post-Kyoto framework 
 
Akahata: 
Illegal livelihood-protection administration in Kita-Kyushu caused 
man to die of starvation 
 
2) EDITORIALS 
 
Asahi: 
(1) Saga Kita wins 1st Koshien title 
(2) Murder-suicide involving police officer: Introduce stricter 
check system on police officers' use of gun 
 
Mainichi: 
(1) Murder-suicide: Review of police stations' character necessary 
(2) Fiscal investment and loan program: Show vision of second-stage 
reform 
 
Yomiuri: 
(1) Introduction of expert-staff system should be treated as part of 
reform of civil servant system 
(2) Prosecutors' crisis-management ability in question 
 
Nikkei: 
(1) Develop Japan-India relations into multilateral Asia policy 
(2) Allow Yokozuna Asashoryu to return home 
 
Sankei: 
(1) Police officer and gun: NPA's management responsibility is being 
questioned 
(2) Collectively devise measures to hike minimum pay 
 
Tokyo Shimbun: 
(1) Abe diplomacy: Excessive emphasis on values might give wrong 
message 
(2) Efforts needed to decrease animal experiments 
 
Akahata: 
(1) Having plan to construct new military base canceled with 
opposition by people in Okinawa essential 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 22 
 
NIKKEI (Page 2) (Full) 
August 23, 2007 
 
Morning 
Left the Taj Mahal Hotel in Delhi, India. Attended a welcoming 
ceremony held at the presidential residence. Offered flowers at the 
Raj Ghat Mahatma Gandhi memorial. Delivered a speech at the Indian 
parliament. Met President Patil at his official residence. 
 
TOKYO 00003884  003 OF 012 
 
 
 
Noon 
Met Minister of External Affairs Mukherjee at the Taj Mahal Hotel. 
Dined with Indian economic organization leaders at the Le Meridien 
New Delhi. 
 
Afternoon 
Met Lower House leader Advani At the Taj Mahal Hotel. 
 
Evening 
Held summit talks with Prime Minister Singh at the Hyderabad House. 
Signed a joint statement. Received a set of proposals from the 
Japan-India Business Leaders Forum. Held a joint press conference. 
Attended a dinner party hosted by Prime Minister Singh. 
 
4) Japan, India confirm efforts to tackle global warming; heads of 
state issue joint statement 
 
Asahi Shimbun (Page 1) (Excerpts) 
August 23, 2007 
 
By Kimitaka Nishiyama 
 
New Delhi - Prime Minister Shinzo Abe, who is visiting India, met 
with his Indian counterpart Manmohan Singh in New Delhi on the 
evening of 22 August (on the night of the same day, Japan time).  At 
the meeting, Abe explained his own-proposed global warming 
countermeasure aimed at reducing global greenhouse gas emissions. 
In response, Singh said that he "approves" of the measure, but 
stressed that India will promote reduction efforts in a manner that 
will not hinder its own economic development.  Although the meeting 
opened the way for cooperation over future efforts to tackle global 
warming, it appears that creating a concrete roadmap will face tough 
going.  Prime Minister Abe refrained from expressing a clear stance 
on whether Japan will support the "US-India nuclear treaty" as asked 
by India.  Abe said that Japan "will carefully study it." 
Meanwhile, Pakistani President Pervez Musharraf requested Defense 
Minister Yuriko Koike, who is visiting Pakistan, that Japan continue 
Self-Defense Force's refueling mission and extend the anti-terrorism 
special measures law. 
 
At the Japan-India summit, Prime Minister Abe elaborated on the 
"beautiful planet 50" initiative aimed at halving greenhouse gas 
emissions by 2050 with the participation of large producers of the 
emissions.  The prime minister also called on India to participate 
in the formulation of a framework after the "Kyoto Protocol," which 
obliges mainly developed countries to reduce the emissions. 
 
Prime Minister Singh expressed approval of Abe's proposal, saying, 
"The proposal will contribute greatly to discussions in the 
international community."  He also indicated that India will 
"seriously consider" joining the formulation of the post-Kyoto 
Protocol framework. 
 
5) In speech at India's parliament, Prime Minister Abe emphasizes 
significance of cooperation with eye on "economy" and in effort to 
contain "China's moves" 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
August 23, 2007 
 
Satoshi Harada, New Delhi 
 
TOKYO 00003884  004 OF 012 
 
 
 
Prime Minister Shinzo Abe yesterday met with Prime Minister Singh in 
New Delhi and delivered a speech at the parliament of India. When he 
was planning to make a tour of Asian countries, Abe first picked 
India to visit. Abe's sudden approach to India reflects his desire 
to step up economic cooperation, and it is also seen as an attempt 
to forestall China, which is rising in prominence in Asia. 
 
"I'm convinced of the importance of the friendship between India and 
Japan. I'm sure it will strike a chord in both sides' hearts." 
 
In the speech at the parliament, Abe reiterated that he had a sense 
of affinity with India. During summit talks with Singh, Abe 
indicated his plan to help India improve its social capital so that 
Japan could invest more in India. Abe also set a target of doubling 
trade in value terms between the two countries in three years. 
 
The reason why Abe is enthusiastic about stepping up economic 
cooperation with India is because doing so is indispensable for 
Japan's growth strategy given its declining population. India has a 
population of 1.027 billion persons, the second largest in the world 
after China. Its population is on the rapid rise. Abe wants to 
introduce India's vitality into the Japanese economy. 
 
Also, in terms of power balance in the international community, Abe 
attaches importance to India. Abe has hammered out a foreign policy 
of beefing up strategic dialogue among Japan, India, the United 
States, and Australia, as countries that share the values of 
"freedom, democracy, basic human rights, and the rule of law." In 
the speech here in India, too, Abe emphasized the significance of 
cooperation among those four countries. 
 
It is obvious that this policy strategy has come about out a 
conscious awareness of China, whose social system is different from 
those of the other four countries. 
 
6) Pakistan asks Japan to extend MSDF mission 
 
SANKEI (Page 5) (Full) 
August 23, 2007 
 
Kyodo 
 
ISLAMABAD-Defense Minister Yuriko Koike met with Pakistan's 
President Musharraf and Prime Minister Aziz in the suburbs of 
Islamabad on Aug. 22 local time. 
 
Japan's Maritime Self-Defense Force has been staging its vessels in 
the Indian Ocean to refuel naval vessels from the United States, 
Pakistan, and other foreign countries under the Antiterrorism 
Special Measures Law. In this connection, Koike explained that the 
law is to expire Nov. 1. Musharraf asked Koike to extend the law, 
saying: "We need the MSDF's activities for our continued 
participation (in antiterror operations). I really want their 
mission extended." 
 
Koike indicated that the government would endeavor to extend the law 
in this fall's extraordinary Diet session, saying, "The government 
will continue to make efforts to obtain the opposition parties' 
understanding." 
 
Aziz stressed that Japan, should it discontinue its activities, 
 
TOKYO 00003884  005 OF 012 
 
 
would give a negative message to the international community. Koike 
also met with Pakistan's Defense Minister Iqbal. In their meeting, 
Iqbal said it would be difficult for Pakistan to continue its 
activities without Japan's assistance. With this, the Pakistani 
defense minister indicated that Pakistan, based on cooperation in 
the Indian Ocean, wants to step up defense exchanges. 
 
7) Former DPJ President Maehara favors extension of the 
Antiterrorism Special Measures Law 
 
YOMIURI (Page 4) (Full) 
August 23, 2007 
 
Seiji Maehara, former president of the Democratic Party of Japan 
(DPJ) took the view again yesterday that extending the Antiterrorism 
Special Measures Law beyond its Nov. 1 expiration would be 
desirable. He stated in a speech at the Foreign Correspondents' Club 
in Japan: 
 
"Based on the (law), refueling operations of Maritime Self-Defense 
Force vessels in the Indian Ocean should be continued. In an attempt 
to fight against terrorism, Japan's continued participation in 
international efforts is meaningful." 
 
8) DPJ's Maehara turns cautious about extending antiterror law 
 
SANKEI (Page 5) (Abridged) 
August 23, 2007 
 
Seiji Maehara, a former president of the leading opposition 
Democratic Party of Japan (DPJ or Minshuto), met the press yesterday 
at the Foreign Correspondents' Club of Japan (FCCJ). Maehara 
suggested the need for Japan to take part in the war on terror. 
"But," he said, "it's not the war on terror to continue what Japan 
has done so far." He added, "it's about time to verify." With this, 
Maehara indicated that he would not be caught up in the idea of 
simply extending the Antiterrorism Special Measures Law, under which 
Japan has sent Maritime Self-Defense Force vessels to the Indian 
Ocean. Maehara appeared on a commercial TV program that was aired 
Aug. 12. On that TV show, he said the MSDF's refueling in the Indian 
Ocean was the "best" possible option. He has now slightly changed 
his stance over the issue of extending the law. 
 
"About 75 countries are now participating in OEF (Operation Enduring 
Freedom), ISAF (International Security Assistance Force), or PRT 
(Provisional Reconstruction Team)," Maehara said. He also said, "In 
the sense of blocking terrorism, Japan's continued participation is 
important." So saying, Maehara pointed to the significance of 
Japan's role in the international community's Afghanistan-related 
antiterror drive. He also urged the government to disclose its 
information about the MSDF's activities. "It's important that the 
government racks its brains to create a situation in which our party 
can support (the idea of extending the antiterror law)," he said, 
laying the onus on the government. 
 
9) DPJ to send parliamentary delegation to US and Europe in 
connection with anti-terror law issue 
 
SANKEI (Page 5) (Full) 
August 23, 2007 
 
In connection with the issue of extending the Anti-Terrorist Special 
 
TOKYO 00003884  006 OF 012 
 
 
Measures Law, the Democratic Party of Japan (DPJ or Minshuto) 
yesterday began coordination on sending a parliamentary mission in 
Sept. to the United States and Europe in order to look into possible 
assistance measures for Afghanistan that would replace the oil 
refueling assistance now being provided by Maritime Self-Defense 
Force ships in the Indian Ocean. The judgment was reached that as 
long as the party does not indicate an alternate proposal and just 
opposes the extension of the anti-terror law, it will not be able to 
obtain the support of the Japanese public. The delegation would 
exchange views with government officials and others in those 
countries visited on such matters as the assistance measures being 
sought of Japan and the results of the refueling efforts. 
 
10) Former DPJ President Maehara: Grand coalition is almost 
impossible 
 
YOMIURI (Page 4) (Full) 
August 23, 2007 
 
Former Democratic Party of Japan (DPJ) President Seiji Maehara, 
yesterday in a speech at the Foreign Correspondents' Club of Japan, 
took the negative view toward the possibility of the DPJ and the 
ruling Liberal Democratic Party (LDP) forming a grand coalition. He 
said: 
 
"A grand coalition is 99.99 percent impossible." He then added: 
 
"It is important for us to obtain the reins of government by 
creating a two-party system that would enable political change so 
that we will be able to carry out high-level debate on policy and 
national visions. We should refrain from forming an easygoing grand 
coalition." 
 
11) Former defense chief Nakatani: Prime Minister Abe should resign 
 
YOMIURI (Page 4) (Full) 
August 23, 2007 
 
Gen Nakatani, a member of the ruling Liberal Democratic Party (LDP) 
and former defense chief, expressed again his view yesterday that 
Prime Minister Shinzo Abe should step down from office. He stated in 
a speech in Tokyo: 
 
"Residents in the regional areas are now living in a destructive 
situation since their economies and employment situation are bad. 
Makeshift measures, including a cabinet shuffle, are no longer 
working. He should reconsider the basic policy of the (government 
and ruling coalition) by holding an LDP presidential election." 
 
12) LDP committee to sum up Upper House election forgoes directly 
referring to Prime Minister Abe's responsibility for defeat 
 
YOMIURI (Page 4) (Full) 
August 23, 2007 
 
The Liberal Democratic Party (LDP) yesterday convened a meeting of 
its committee to sum up the July House of Councillors election. The 
members discussed in general terms the results of the election. 
Yoshio Yatsu, head of the Election Strategy Headquarters, chaired 
the committee. 
 
The committee in its overview gave such reasons for the LDP's 
 
TOKYO 00003884  007 OF 012 
 
 
crushing defeat in the Upper House poll as: (1) a lack of crisis 
management by the government and ruling coalition over a set of 
three adverse conditions -- the pension record-keeping debacle, 
money-politics scandals, and controversial remarks by cabinet 
ministers, (2) lack of consideration for socioeconomic disparities - 
the negative legacy of administrative reforms, (3) a lack of 
cooperation between the party's sections in charge of policy, 
election, and Diet affairs, and the cabinet, (4) failure in public 
relations strategy, and (5) weakening foundations of the party due 
to a drastic decrease in the number of assembly members because of 
mergers of municipalities, as well as the weakening of industrial 
associations due to administrative reforms. 
 
Yatsu said that he would call on Prime Minister Shinzo Abe to give 
consideration also to the "negative part" of structural reforms, 
including the growing social divide. "We will make a report 
including suggestions so that our discussion will not end with just 
letting off steam," he stressed 
 
One participant raised this view: 
 
"It is important for the Upper House members to strengthen their own 
support organizations, not just to rely on Lower House members. I 
think we should incorporate a proposal increasing rank-and-file 
party members." 
 
The committee will hold a meeting today to discuss the matter again. 
It intends to submit the report to a party board meeting on the 24th 
and to the General Council. With an eye on the reshuffle of the 
cabinet slated for the 27th, the panel is expected to include a 
proposal that those who assuming assume cabinet posts must give 
accountability if they involve in money-politics scandals and if 
they can't do so, they must quit their cabinet posts. 
 
Responding to the opinions heard from Diet members and senior 
prefectural assembly members, as well as unsuccessful candidates in 
the Upper House race, former defense chief Gen Nakatani, a member of 
the Tanigaki faction, and former Administrative Reform Minister 
Seiichiro Murakami, a Komura faction member, called on Abe to resign 
as prime minister. However, since the report fails to refer to the 
prime minister's responsibility for the defeat in the election, 
there is a possibility that views of displeasure will spread across 
the General Council. 
 
13) New Komeito's local assembly members call on the party to 
"distance itself from Abe-led LDP" 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 23, 2007 
 
Hiroshi Shinkai 
 
Prime Minister Abe and the Liberal Democratic Party (LDP) are both 
responsible for (the junior coalition partner New Komeito's) 
crushing defeat in the July Upper House election. The New Komeito 
held a meeting of representatives from its local chapters at party 
headquarters yesterday in order to examine the causes of the 
crushing defeat. In the session, some 200 local assembly members who 
were in attendance voiced this kind of critical view that: the party 
should distance itself from the LDP in preparation for the next 
Lower House election. 
 
 
TOKYO 00003884  008 OF 012 
 
 
In examining the causes of the defeat, Representative Akihiro Ota 
also cited the Abe cabinet's poor crisis management and its wrong 
priority order of policies as the causes of the (New Komeito's) 
defeat. Ota stressed: "From now on we will become prompt to check 
the cabinet." 
 
However, there was a burst of complaints about policy cooperation 
with the LDP by participants. One participant argued: "Why do we 
have to offer excuses for the LDP's misconducts?" Another contended: 
"The New Komeito should reflect its own assertions in (the policy 
cooperation)." 
 
A certain local assembly member complained, "In the recent election, 
even those who were usually in supportive of our party had strong 
reactions against our party," revealing that the New Komeito's power 
base, Soka Gakkai members also were highly discontent with the 
party's joining in the coalition government with the LDP. 
Particularly eight incumbent Lower House members elected in 
single-seat constituencies were strongly concerned about the recent 
election results that the party put up candidates in five 
constituencies, but that only two won seats. One Lower House member 
sounded an alarm, arguing, "The fate of our party hinges on the next 
Lower House election." 
 
Secretary General Kazuo Kitagawa, however, stressed, "The LDP-New 
 
SIPDIS 
Komeito line remains firm and solid." Considering the good results 
produced by reforms pursued by the coalition government, Kitagawa 
sought the understanding of the participants, saying, "It's no good 
to say that everything is over because of the defeat this time." 
 
After the meeting, one senior New Komeito member explained to 
reporters, "There were some who called on the party to act as it 
pleases, but it is unlikely that our party will leave the coalition 
with the LDP." However, if the approval ratings for the Abe cabinet 
stay at low levels, the party would then find it difficult to 
contain the complaints. 
 
14) New Komeito searching for ways to move away from Abe; Ota and 
others erupt with frustration at humiliating results of Upper House 
election 
 
NIKKEI (Page 2) (Abridged) 
August 23, 2007 
 
The New Komeito yesterday held its national convention that brought 
together all party lawmakers and prefectural representatives to 
examine the results of the July House of Councillors election in 
which the ruling coalition suffered a crushing defeat. 
Representative Akihiro Ota voiced discontent with Prime Minister 
Shinzo Abe's response to a series of improprieties involving cabinet 
ministers, including office expense problems. Local representatives 
also criticized the administration. This suggested a growing mood in 
the party to move away from Abe. The New Komeito is likely to 
demonstrate its originality in policy coordination with the Liberal 
Democratic Party in the days ahead. 
 
House of Representatives member Kazuyoshi Akabane pointed out the 
ruling coalition's failure in the election campaign to further the 
New Komeito's priority policies, such as social welfare. He also 
warned that excess cooperation with the LDP might bring about a 
defeat in the next Lower House election as well. 
 
 
TOKYO 00003884  009 OF 012 
 
 
Some local representatives also expressed the following opinions in 
a meeting ahead of the convention: "The campaign ended by just 
offering explanations (for improprieties involving cabinet 
ministers) instead of discussing the administrations' achievements," 
or "The Democratic Party of Japan played up livelihood-oriented 
issues in place of the New Komeito." 
 
Ota apologized, saying: "We must frankly acknowledge the 
leadership's insufficient response to the perception that our party 
and the LDP were essentially one body. Voters expressed strong anger 
and dissatisfaction with the administration's poor crisis-management 
capability. Above all, there was a gap between the Abe 
administration's reform policy course and the voters' priorities." 
 
Ota's newfound criticism of the Abe administration apparently comes 
from growing discontent with Abe in Soka Gakkai, the lay Buddhist 
organization that serves as the New Komeito's main support base. The 
New Komeito has given top priority to maintaining the coalition 
administration despite its reluctance to go along with Abe's policy 
goals, such was constitutional revision. The humiliating results of 
the July election triggered Ota's bitter reaction. If voters regard 
Ota as "pro-Abe," he might end up bearing the brunt of criticism 
from the public. 
 
Nevertheless, chances are slim for the New Komeito to actively make 
moves to topple the Abe administration at this point. The party is 
aware that given no clear successor to Abe, destabilizing the 
political situation would only benefit the DPJ. The party plans to 
closely watch developments in the LDP for the time being, though it 
is not totally happy with the Abe administration. 
 
Attention will be focused on the New Komeito's move when the option 
of a Lower House dissolution for a snap general election becomes a 
real possibility. In the closing days of the former Mori 
administration, which was suffering from low support ratings, the 
New Komeito led by Takenori Kanzaki spearheaded the drive to dump 
Mori. With an Upper House election drawing closer in those days, the 
view was prevalent that achieving a victory under Prime Minister 
Mori was difficult. A Soka Gakkai executive said: "A cabinet 
reshuffle would not be able to change the situation dramatically. We 
cannot fight the next Lower House election under Prime Minister 
Abe." In the event the Abe administration fails to regain momentum 
and its support ratings do not rise, the New Komeito might again 
initiate a drive. 
 
15) METI to start negotiations with New Zealand for oil interchange 
 
NIKKEI (Page 1) (Full) 
August 23, 2007 
 
The Ministry of Economy, Trade and Industry (METI) plans to create a 
system for interchange of oil reserves with countries close to Japan 
in an emergency. Under the system, countries will sell their oil 
reserves to each other if oil prices soar or if a certain country 
suffers an oil shortage because of a natural disaster or a dispute. 
Japan will first sign an oil stockpile agreement with New Zealand. 
Following New Zealand, Japan aims to consolidate the system so that 
oil will be interchanged within East Asia, such as China and South 
Korea. 
 
In East Asia, demand for oil is on the rapid rise. If a certain 
country suffers an oil shortage, its economy will become unstable 
 
TOKYO 00003884  010 OF 012 
 
 
and affect other countries' economies in the region closely linked 
to one another through trade. METI thinks if a system for oil 
interchange in preparation for an emergency is established, that 
will help stabilize the regional economy as well as oil prices. METI 
also expects the system to reinforce oil stockpiling. 
 
Japan will today start talks with New Zealand on the concluding of 
an oil stockpile agreement. METI Minister Akira Amari, who is 
visiting Singapore, will meet with the vice minister of energy of 
New Zealand and issue a joint statement that will specify that the 
two countries will begin negotiations in this regard. 
 
Under the agreement, the countries concerned will pay in advance 
$1-2 per kiloliter as an option to each other, and in an emergency, 
the countries concerned will exchange crude oil, light oil, and 
gasoline with each other. For example, in the case of New Zealand's 
buying oil from Japan's oil reserves, it will pay the option and the 
current price for oil to Japan. Japan will sell a portion of oil 
stockpiled in the private sector (some 42,000,000 kiloliters). 
Either Japan or New Zealand can refuse to interchange if they have 
no oil to exchange because of an oil shortage. 
 
The European Union (EU) has a system to prevent the regional economy 
from becoming instable because of an oil shortage. For instance, 
Germany has concluded a bilateral agreement with France and Italy to 
interchange oil in an emergency. The amount of oil reserves in New 
Zealand is merely 1,700,000 kiloliters. Japan intends to call on 
East Asian countries, which consume a large volume of oil, during 
ministerial talks or on other occasions to conclude an oil stockpile 
agreement in the region. 
 
16) Defense Ministry to earmark 14 billion yen for test stealth 
fighter 
 
NIKKEI (Page 2) (Full) 
August 23, 2007 
 
The Defense Ministry will earmark approximately 14 billion yen in 
its budget request for fiscal 2008 to develop an experimental 
stealth fighter with advanced technologies, officials said 
yesterday. The experimental aircraft is a test version model for the 
fifth-generation fighter jet of high mobility and radar 
invisibility. The ministry plans research and development for a 
period of five fiscal years from 2008. The total cost is estimated 
at 50 billion yen. The new aircraft will combine Japan's own 
cutting-edge technologies as an indigenous base model for future 
production. 
 
Japan is interested in the F-22A Raptor, an advanced stealth fighter 
developed by the United States, as a likely candidate for the Air 
Self-Defense Force's follow-on mainstay fighter. However, Japan 
faced difficulties in negotiating with the United States due to the 
F-22A's confidentiality. The Defense Ministry has therefore implied 
that Japan could develop its own stealth fighter. This is also aimed 
at urging the United States to give in. Actual development will cost 
a huge amount of money. Moreover, Japan's option to develop its own 
stealth fighter will inevitably bring about repulsion from the 
United States. As it stands, Japan will go no further than to 
manufacture a test model. 
 
Japan began in 1995 to research various technologies relating to 
fighter jets. In addition, Japan has now ended its stealth 
 
TOKYO 00003884  011 OF 012 
 
 
performance test in France to find radar reflection using a mockup. 
 
Japan, in principle, buys fighter jets from the United States in 
consideration of performance and cost. The last fighter jet model of 
Japan's own is the F-1, a fighter support plane developed in the 
1970s. Japan aimed to develop the F-2 as its follow-on model. 
However, there was pressure from the United States for joint 
development. Eventually, the F-2 was co-developed with the United 
States. "Whenever we say Japan will develop its own fighter plane, 
the United States will always come out to say something against 
that," a senior official of the Defense Ministry said. "Our aim is 
to acquire technological capability," the official added. 
 
17) Government planning to liberalize farmland lease system FY2008 
 
YOMIURI (Top Play) (Excerpts) 
August 23, 2007 
 
The Ministry of Agriculture, Forestry and Fisheries yesterday 
started discussion on the possibility of abolishing in principle 
current restrictions on farmland lease to corporations as a measure 
to encourage private firms to go into the agricultural business. 
Seeing the nation's food self-sufficiency ratio (calorie basis) in 
FY2006 dropped below 40 PERCENT  for the first time in 13 years, the 
ministry aims to expand the scale of the farm industry and bolster 
its competitiveness by making use of private firms' strength. The 
ministry intends to include the measure as a centerpiece in a report 
on farmland reform due out this fall. It also plans to submit a bill 
amending such related laws as the law to promote the reinforcement 
of the basis for agriculture management to the ordinary Diet session 
next year, with an eye to implementing the measure in FY2008. 
 
Sense of crisis growing on lowering food self-sufficiency ratio 
 
(Commentary) 
 
The Ministry of Agriculture, Forestry and Fisheries' policy of 
encouraging private firms to enter the agriculture sector reflects 
its sense of crisis on the declining food self-sufficiency rate. In 
order to revitalize the agricultural industry, the ministry now 
judges it indispensable to increase the number of core farmers. 
 
The ministry reckons that if an increasing number of companies with 
enormous wealth join the farming business, its plan to expand the 
scale of agriculture management may be expedited. It also expects 
large-scale agricultural machinery to be introduced, as well as 
routes to food service and other industries to be expanded or newly 
established. 
 
The ratio of food self-sufficiency in FY2006 was 39 PERCENT . The 
government has set the goal of raising the ratio to 45 PERCENT  in 
FY2015, but the possibility remains dim. Of all farmers in the 
nation, those aged 65 or older accounted for 57.4 PERCENT  in 2005. 
The area of farmland that has been left idle is about 380,000 
hectares, which is equivalent to the area of Saitama Prefecture. 
Farm groups may raise objections to the government's new policy. To 
prevent farmland from being further devastated, however, the 
government must carry out reform, envisioning the condition of 
agriculture 10 to 20 years from now. 
 
18) Birth rate drops again in first half of this year 
 
 
TOKYO 00003884  012 OF 012 
 
 
YOMIURI (Page 2) (Full) 
August 23, 2007 
 
According to the spot report of dynamic statistics of population 
released yesterday by the Ministry of Health, Labor and Welfare 
(MHLW), the number of babies born in the first half of 2007 (January 
- June) was 546,541, 2,714 fewer than in the first half of 2006. In 
the first half of 2006, the number increased from the same period a 
year ago for the first time in six years, but it marked negative 
growth again. 
 
The number of childbirths was fewer than the same period a year ago 
from February to May. A MHLW official said: "The job market has 
improved owing to economic recovery, so we cannot understand why the 
birthrate dropped." Meanwhile, 359,925 couples got married, marking 
a decrease of 8,040 from the first half of 2006. 
 
The number of divorces in June was 20,901, marking 1,073 fewer than 
the same month a year ago - the first drop in three months. In April 
and May, though, since a split system for pension payments was 
introduced in April, the number of divorces increased over the 
previous year. 
 
MESERVE