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UNCLAS SECTION 01 OF 14 TOKYO 003987 
 
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 08/28/07 
 
 
Index: 
 
(1) Reshuffled Abe cabinet launched: Finance Minister Nukaga to 
firmly maintain government's fiscal recapitalization goal; 
"Discussion should include the consumption tax" 
 
(2) Will Abe be able to uphold his policy? 
 
(3) New Abe cabinet to take cooperative stance with the opposition 
in extra Diet session with eye on extension of Antiterrorism Law 
 
(4) Editorial: Reform is last means of survival for new Abe cabinet 
 
(5) Government starts effort to revise bill to extend Antiterrorism 
Special Measures Law: Consideration to be given to DPJ's wishes 
 
(6) Shiten (Viewpoint): Japan should consider long-term impact of 
Antiterrorism Law 
 
(7) Ozawa's betrayal as he turns anti-US 
 
(8) Ozawa's irresponsible anti-US performance 
 
ARTICLES: 
 
(1) Reshuffled Abe cabinet launched: Finance Minister Nukaga to 
firmly maintain government's fiscal recapitalization goal; 
"Discussion should include the consumption tax" 
 
NIHON KEIZAI (Page 5) (Excerpts) 
August 28, 2007 
 
The new Abe cabinet, launched yesterday evening, will be under 
pressure to swiftly deal with a mountain of pending issues, 
including tax and fiscal reforms and the pension fiasco. Concerning 
tax system reform, Finance Minister Fukushiro Nukaga told a press 
conference, "It is important to discuss the tax system reform issue, 
including the consumption tax." Health, Labor and Welfare Minister 
Yoichi Masuzoe indicated a stance of giving top priority to settling 
the pension issue. He noted, "My responsibility for settling the 
pension issue is weighty." However, coordination of views with the 
Democratic Party of Japan (DPJ or Minshuto), which gained a majority 
in the July Upper House election, is expected to be difficult. His 
ability to move pension policy forward will be tested. 
 
Tax and fiscal reforms 
 
Hidenao Nakagawa, who attached importance to a natural increase in 
tax revenues through economic growth, is no longer LDP secretary 
general. A Finance Ministry official took the view that the Abe 
administration has delicately changed the balance between growth and 
fiscal recapitalization with the appointment as chief cabinet 
secretary of Kaoru Yosano, who advocates fiscal recapitalization. 
 
SIPDIS 
 
The government will aim at achieving a primary balance surplus by 
fiscal 2011 so that administrative expenses can be covered with tax 
and non-tax revenues. Nukaga stressed, "I will firmly maintain the 
government goal of moving the primary balance into the black by 
fiscal 2011." Yosano during a press conference also indicated his 
determination to promote expenditure and revenue reform, noting, "It 
is imperative to check whether it is possible to move the primary 
balance into the black, based on various premises." 
 
TOKYO 00003987  002 OF 014 
 
 
 
The greatest focal point is a consumption tax hike. The government 
plans to raise the portion of the basic pension funded from tax 
revenues in fiscal 2009. Nukaga indicated his intention to fully 
discuss the issue as previously planned by the government and the 
ruling camp, noting, "I would like to pursue discussion on how to 
secure stable funding resources in a far-reaching manner." However, 
the opposition parties are calling for keeping the consumption tax 
rate intact. There is no common ground in sight. 
 
Regarding a corporate tax break, Nukaga indicated his perception 
that it important to boost the vitality of small and medium 
businesses." He indicated a positive stance to the idea of applying 
a policy tax cut to limited items. Regarding a cut in the effective 
corporate tax cut, he simply said, "It is necessary to give 
consideration to their international competitiveness." However, when 
it came to a question of when to cut the rate, he simply noted, "We 
must discuss that issue." Touching on the sub-prime loan issue in 
the US, Nukaga said, "We must carefully observe economic indexes so 
that we will not make a mistake." 
 
Immediate challenges in economic and fiscal policy 
 
Tax and fiscal reforms 
? Drastic reform of the tax system, including the consumption tax 
? Secure funding resources to raise the portion of the basic pension 
to be financed from tax revenues 
? Moving the primary balance of the central and local governments 
into the black by fiscal 2011 
Economy and growth 
? Break with deflation (for an additional interest rate hike by the 
Bank of Japan) 
? Vitalize local economies with such measures as the establishment 
of a regional power revitalization organization. 
? Take measures to boost labor productivity and increase 
part-timers 
Social security 
? Blanket settlement of the public pension premium contribution 
record-keeping error 
? Take measures to deal with the shortage of medical doctors in 
regional districts 
? Secure Diet approval for a bill amending the Minimum Wage Law 
Economic strategy 
? Strengthen diplomatic talks to procure resources and energy 
? Secure safety of nuclear power plants 
? Promote economic partnership agreements (EPA) with Asian nations 
Agriculture 
? Secure food safety by dealing with such problems as false labeling 
of food 
? Improve the productivity of agriculture in order to cope with 
globalization 
? Promote liberalization talks at the World Trade Organization 
Disparities between urban and rural areas 
? Steadily promote decentralization reform 
? Adjust fiscal disparities among local governments 
? Making a hometown tax payment system a concrete deal 
 
(2) Will Abe be able to uphold his policy? 
 
ASAHI (Page 3) (Abridged) 
August 28, 2007 
 
 
TOKYO 00003987  003 OF 014 
 
 
Following the July House of Councillors election in which the ruling 
coalition lost control of the chamber, a new Abe cabinet was 
launched yesterday. Now that the major cabinet ministers have been 
replaced, will the Abe administration be forced to revise its policy 
course? This article discusses what might happen to tax and fiscal 
policies, including the consumption tax, social security policy, 
including the pension issue, and the question of extending the 
Antiterrorism Special Measures Law that are all likely to take 
center stage in the next extraordinary Diet session. 
 
Tax, fiscal policy, and economy 
 
"We won't be able to enact any bill unless the Democratic Party of 
Japan supports Things must be discussed thoroughly with the 
opposition parties in order to meet public expectations." 
 
This comment came last evening at the Kantei (Prime Minister's 
Official Residence) from Fukushiro Nukaga, who has been named 
finance minister. Nukaga underscored the importance for the ruling 
and opposition blocs to discuss tax reform. 
 
The Abe administration has repeatedly indicated that it would launch 
an effort to fundamentally reform the taxation system, including the 
consumption tax, this fall after the Upper House election. The 
government and ruling parties were supposed to begin discussing a 
consumption tax hike as early as September in order to present a 
bill in the ordinary Diet session next year. The plan was derailed 
by the July Upper House lection in which the opposition gained 
control over the chamber. Discussion between the ruling and 
opposition camps is essential for advancing tax reform. 
 
But a dominant mood in the Liberal Democratic Party is that hiking 
the consumption tax is not possible for the time being. In the 
previous election campaign, the Democratic Party of Japan, which has 
now become the largest party in the Upper house, pledged not to 
raise the consumption tax rate. Even if the DPJ opted to hold talks 
with the LDP, chances are slim for the largest opposition party to 
agree to raise the rate. 
 
The possible consumption tax hike is being mentioned in connection 
with a law requiring raising the government's contribution to the 
basic pension scheme from the current one-third to half in FY2009. 
 
Difficult challenges also lie ahead for budget compilation for 
FY2008. For instance, the government has yet to come up with 
concrete ways to curb 220 billion yen in automatic increase in 
social security. Discussion on the extent to which the national road 
maintenance and improvement project must be pushed ahead is also 
bound to face rough going. At the same time, many think that Abe's 
decision to retain the minister of economy, trade and industry and 
the state minister in chare of economic and fiscal policy reflects 
his determination to keep the economic growth strategy intact. In 
fact, METI Minister Amari put high priority on economic growth in 
his press conference yesterday. 
 
Still, the government is likely to shift weight to local areas and 
small businesses. Economic and Fiscal Policy Minister Ota already 
unveiled a plan yesterday to establish a local-style Council on 
Economic and Fiscal Policy. 
 
Foreign and security affairs 
 
 
TOKYO 00003987  004 OF 014 
 
 
Prime Minister Abe who advocates "proactive diplomacy" has also 
appointed former foreign minister Nobutaka Machimura as new foreign 
minister and another former foreign minister Masahiko Komura as 
defense minister. Machimura and Komura, who are on friendly terms as 
faction heads, will join efforts in addressing an extension of the 
Antiterrorism Special Measures Law. The ability of the veteran duo 
will also be tested in dealing with the deadlocked North Korean 
nuclear and abduction issues. 
 
In 2004-2005, Machimura busied himself in trying to find ways to 
improve relations with China and South Korea as foreign minister of 
the then Koizumi cabinet. This time, his leadership will be tested 
with preparatory work for next year's Tokyo International Conference 
on African Development (TICAD), the 2008 G-8 Hokkaido Toyako Summit, 
and measures against global warming. 
 
To the Foreign and Defense Ministries, extending the antiterrorism 
law beyond its November 1 expiry is the most pressing issue. The law 
has been the legal basis for the Maritime Self-Defense Force's 
refueling services to the US-led coalition forces in the Indian 
Ocean. 
 
DPJ President Ichiro Ozawa has expressed his opposition to the law's 
extension. Unlike former Defense Minister Koike, who played up her 
antagonistic stance toward the Ozawa-led DPJ, both Machimura and 
Komura have begun showing flexible stances about altering the bill. 
At the same time, there are calls in both the ruling and opposition 
camps for greater information disclosure in order to determine the 
propriety of the MSDF's refueling operation in the Indian Ocean. 
Attention will be focused on whether Machimura and Komura can 
present the MSDF's concrete achievements to persuade the forces 
opposing the mission in the Indian Ocean. 
 
Meanwhile, many observers think the cabinet reshuffle would not 
affect the administration's policy toward North Korea, which is 
controlled by Abe. 
 
In his first press conference yesterday, Machimura reiterated the 
government's traditional policy course, saying: "Once the abduction 
issue is settled, Japan will be able to play a more active role in a 
range of fields, including economic and energy aid." 
 
As talks between Washington and Pyongyang on denuclearizing North 
Korea moved forward, Japan has begun putting forward the thinking 
that progress in denuclearization would push the abduction issue 
toward a settlement. Some Foreign Ministry officials, however, have 
pointed out the possibility of the denuclearization talks running 
into snags due to the light-water reactor project and the 
declaration of North's uranium enrichment plans. Whether or not the 
Abe cabinet can pave the way for settling the abduction issue might 
affect the fate of the administration. 
 
Social security 
 
The pension-record mismanagement would be one of the focuses in the 
fall extraordinary Diet session. The DPJ intends to exercise its 
investigative powers to summon relevant personnel to testify before 
the Diet. Health, Labor and Welfare Minister Yoichi Masuzoe shares 
the opposition bloc's call for greater information disclosure. An 
MHLW official described Masuzoe this way: "He is the kind of person 
who calls a spade a spade. He doesn't hesitate to point out 
problems, and that's fine with us." 
 
TOKYO 00003987  005 OF 014 
 
 
 
The DPJ is also expected to present a bill prohibiting insurance 
premiums for purposes other than paying benefits. At present, of the 
380 billion yen necessary for running the pension recordkeeping 
system and offering consultation services, 200 billion yen is 
covered by pension premiums. The DPJ-proposed legislation would 
force the government to find a new financial resource. Finding a 
settlement point with the DPJ would be difficult. 
 
A warning yellow light is also flashing for the option of raising 
the government's contribution to the basic pension scheme. The 
option would discourage the debate on hiking the consumption tax as 
a promising alternative financial resource. Masuzoe, too, has 
expressed a cautious view about raising the consumption tax. 
 
But a delay in raising the government's contribution would 
deteriorate pension funding, possibly resulting in decreased pension 
benefits and higher pension premiums. 
 
The issue of integrating the employee and the mutual aid pension 
programs into one is also far from being settled. The DPJ favors a 
single program that incorporates the National Pension Plan as well. 
Over sweeping pension reform, there also is a deep gulf between the 
DPJ, which calls for a new minimum pension benefit system totally 
financed by tax money, and the ruling bloc, which wants to maintain 
the current system. 
 
(3) New Abe cabinet to take cooperative stance with the opposition 
in extra Diet session with eye on extension of Antiterrorism Law 
 
MAINICHI (Page 5) (Full) 
August 28, 2007 
 
With the inauguration of a new cabinet of Prime Minister Shinzo Abe 
yesterday, the major political issue will change to debate at the 
extraordinary session of the Diet to be convened as early as Sept. 
¶10. Following the trading of placed between the ruling and 
opposition camps in the July 29 House of Councillors election, the 
ruling coalition intends to place importance on discussion in the 
upcoming extra session, while the Democratic Party of Japan (DPJ) 
has already decided to reject a bill extending the Antiterrorism 
Special Measures Law, to which Abe gives top priority. The DPJ plans 
to continue pursuing the "politics and money" scandals, as well as 
the pension record-keeping debacle. Therefore, a fierce battle will 
develop over those issues, contrary to the ruling camp's strategy of 
"taking a modest approach." 
 
At a press conference yesterday, Liberal Democratic Party (LDP) 
Policy Research Council Chairman Nobuteru Ishihara explained his 
basic stance of managing Diet affairs, saying: 
 
"As responsibility of the ruling camp, which has become a minority 
in the Upper House, my major mission is to make efforts to pass 
policies and bills through the Diet through consultations with the 
opposition camp." 
 
Ishihara experienced cooperation with the opposition during the 1998 
extra Diet session, in which the Early Financial Correction law was 
enacted. 
 
Deliberations on the bills to extend the Antiterrorism Law, which is 
set to expire on Nov. 1, will top the agenda in the upcoming extra 
 
TOKYO 00003987  006 OF 014 
 
 
Diet session, which will convene probably on Sept. 10. The ruling 
bloc wants to get the legislation through the Lower House in 
mid-September through the DPJ's cooperation. Abe apparently 
appointed veteran lawmakers -- Nobutaka Machimura and Masahiko 
Komura, who are well versed in foreign and defense affairs -- as 
foreign and defense ministers with an eye on an extension of the 
Antiterrorism Law. 
 
The question is how to deal with the legislation in the Upper House, 
which the opposition party controls, not in the Lower House, in 
which the ruling coalition has two-thirds of the seats. If the bill 
fails to clear the Diet, the Abe administration would be in danger. 
In case the bill is rejected in the Upper House, the ruling parties 
are considering an option of extending the law through second voting 
at the Lower House. However, this means a failure in negotiations 
with the opposition, boosting tensions in the political situation. 
The Abe administration will unavoidably encounter difficulties. 
 
DPJ Secretary General Yukio Hatoyama indicated in a press meeting 
yesterday that his party would not make any deal with the ruling 
coalition in managing Diet affairs. He stated at party headquarters: 
"The opposition should not maneuver behind the scenes, while 
fighting on the surface. 
 
The DPJ has envisioned a fierce battle with the ruling coalition at 
the Upper House by submitting its own bill to revise the Political 
Funds Control Law and other tactics. The party intends to exercise 
the full range of administrative investigation rights if any 
politics-money scandals involving new cabinet ministers are 
discovered. 
 
Meantime, the ruling camp, which will be forced to walk a precarious 
tightrope in managing Diet affairs, plans to zero in on the bill to 
extend the Antiterrorism Law in the extra Diet session in September. 
A senior LDP member said that the LDP would have no choice but to 
accept a bill to ban the use of pension premiums for other purposes 
than for pension benefits. 
 
The government and ruling coalition want to convene the extra Diet 
session on Sept. 10 and begin a meeting on the 18th of the Budget 
Committee after the prime minister's policy speech and party 
representatives' questions. They assume that the session will last 
for about 60 days up until early November. 
 
(4) Editorial: Reform is last means of survival for new Abe cabinet 
 
NIKKEI (Page 2) (Full) 
August 28, 2007 
 
The ruling camp lost its majority in the July Upper House election. 
In an effort to survive under such a situation, Prime Minister 
Shinzo Abe launched his new cabinet yesterday. The new cabinet 
lineup shows Abe's willingness to solidify the unity of the ruling 
camp. Abe will have to pigeonhole for the time being his own 
policies, such as a change in the government's interpretation of the 
right to collective self-defense stipulated in the Constitution. The 
Abe administration should tenaciously discuss matters with the 
Democratic Party of Japan (DPJ), which has control of the Upper 
House, and make efforts to put the economy on a sustainable recovery 
track by steadily forging ahead with fiscal, administrative, and 
regulatory reforms. This is the Abe administration's top priority 
mission. 
 
TOKYO 00003987  007 OF 014 
 
 
 
A series of scandals involving cabinet ministers were one of the 
major causes for the Liberal Democratic Party's (LDP) crushing 
defeat in the election. Some cabinet ministers were unable to 
perform their duty to explain in connection with office-expense 
scandals, and other members made improper remarks that rubbed the 
voters up the wrong way. Agriculture, Forestry and Fisheries 
Minister Toshikatsu Matsuoka, who had been attacked over his fund 
groups' bogus reports on office expenses, committed suicide, sending 
a shock wave across the nation. 
 
The opposition camp strictly urged Prime Minister Abe to take 
responsibility for appointing Matsuoka as a cabinet minister. The 
problem was that Abe's continued protection of such scandal-tainted 
cabinet members resulted in aggravating the problem. Since Prime 
Minister Abe and the Prime Minister's Office (Kantei) failed to take 
prompt action, people began to be skeptical about whether they were 
capable of crisis management. It is undesirable to frequently change 
cabinet members, like regular personnel changes, but the prime 
minister must not be hesitant about dismissing those unqualified to 
work as a cabinet minister. 
 
Prime Minister Abe this time around took the time and carefully 
picked proper persons for cabinet posts. When he formed his first 
cabinet, the cabinet was criticized as a "cabinet of friends" that 
rewarded supporters with appointments. Keeping this experience in 
mind, the prime minister gave priority to a whole-party approach 
this time. When considering the current severe political 
circumstances surrounding the Abe cabinet and the LDP, it might be 
natural for Abe to give top priority to unity in the party. 
 
Abe also overhauled his party's leadership by appointing Taro Aso as 
secretary general. Aso has political ideals similar to those of Abe, 
 
SIPDIS 
and they are on friendly terms with each other. Aso also promptly 
expressed his support of Abe's remaining in office on the day of 
vote counting in the Upper House election. But his capability for 
party management remains unknown. Nobuteru Ishihara, who was named 
chairman of the LDP Policy Research Council, is certainly a fresh 
face, but there is also concern about his competence. In solidifying 
the party and steering the Diet, Ishihara may greatly depend on the 
coordination capability of Toshihiro Nikai, who was picked as 
General Council chairman. 
 
Abe tapped Kaoru Yosano as chief cabinet secretary. He installed 
veteran LDP lawmakers who are expert on policy making and are 
capable of unifying the party to key posts, with the aim of 
regaining the Kantei's functions, which was criticized as lacking 
stability. The prime minister named Yoichi Masuzoe as health, labor 
and welfare minister responsible for tackling the pension issue and 
disbanding the Social Insurance Agency, and Masahiko Komura as 
defense minister saddled with the issue of extending the 
Antiterrorism Special Measures Law. Both will be pressed to 
reconstruct their ministries for the time being. 
 
With an eye on the Lake Toya Summit next year, Abe tapped Nobutaka 
Machimura as foreign minister and Ichiro Kamoshita as environment 
minister. He appointed Fukushiro Nukaga as finance minister. Abe 
retained Akira Amari and Hiroko Ota as economy, trade and industry 
minister and state minister in charge of economic and fiscal policy, 
respectively. They are all veteran lawmakers. 
 
As a star item in the appointments, the prime minister awarded the 
 
TOKYO 00003987  008 OF 014 
 
 
post of internal affairs and communications minister to former Iwate 
Governor Hiroya Masuda, who was known as a reformist governor and is 
now from the private sector. This appointment probably reflects his 
consideration to voters' strong dissatisfaction shown at the 
disparities between urban and local areas in the Upper House 
election. 
 
To revitalize local communities, it is important to promote 
decentralization and regulatory reform, instead of doling out 
subsidies. We expect Masuda to take the lead in conducting 
discussion on promoting deregulation and introducing a regional 
system in a positive manner. 
 
The new lineup shows Prime Minister's switch of policy emphasis from 
security, constitutional revision, and educational reform to 
economic growth, pension problems, and regional revitalization. This 
about-face naturally reflects the outcome of the Upper House 
election. In order to regain voters' support, the administration was 
pressed to demonstrate its emphasis on domestic affairs and to make 
arrangements to build a united party as part of efforts to 
reconstruct the LDP. 
 
The Abe cabinet has its back against the wall. The support rating 
for the cabinet also remains at a low level. With the opposition 
camp has control of the Upper House, no prospects are in sight for a 
bill designed to extend the Antiterrorism Law to be adopted in the 
Diet. Although the ruling camp holds more than two-thirds of all the 
seats in the House of Representatives, the road ahead of the ruling 
bloc is likely to be bumpy in the extraordinary diet session this 
fall and the ordinary Diet session next year. 
 
The Abe cabinet might be able to get out of the current hard 
situation if it makes steady efforts to put the economy onto a 
recovery track and to attain sustainable economic growth, without 
loosing its grip on reforms. Regional revitalization will also be 
realized through economic growth. The administration must not slow 
down its reform drive by easily distributing subsidies. To regain 
voters' trust, Prime Minister Abe should send a message at home and 
abroad expressing his determination to continue to carry out reforms 
and implement them. 
 
(5) Government starts effort to revise bill to extend Antiterrorism 
Special Measures Law: Consideration to be given to DPJ's wishes 
 
MAINICHI (Page 1) (Full) 
Evening, August 28, 2007 
 
The government today has started looking into the possibility of 
revising a bill amending the Antiterrorism Special Measures Law, the 
focus of highest attention in the extraordinary Diet session to be 
convened in the fall. It is envisaging a switch of Self-Defense 
Force's operations from refueling activities in the Indian Ocean to 
other types of logistical support in the form of reflecting the 
wishes of the Democratic Party of Japan (DPJ or Minshuto), which is 
opposing an extension of the present law. It will rush to ready a 
revised bill in cooperation with the ruling camp in the hope of 
entering revision talks with the DJP in the extraordinary Diet 
session expected to be convened on Sept. 10. 
 
Defense Minister Masahiko Komura during an inauguration press 
conference yesterday indicated a flexible stance toward revising the 
amendment bill. He noted, "We will hear the views of the DPJ and 
 
TOKYO 00003987  009 OF 014 
 
 
consider whether there are proposals that can be adopted, involving 
the entire cabinet. The government should allow some revisions to 
the extension bill. "Foreign Minister Nobutaka Machimura during a 
press conference the same day also noted, "If we can obtain 
constructive replies and agreements from the DPJ, we must take good 
care of them." 
 
Chief Cabinet Secretary Kaoru Yosano in the press conference held 
yesterday morning also indicated understanding: "Our stance is that 
the government should not continue its rigid attitude." 
 
DPJ head Ichiro Ozawa is opposing the idea of extending the law, 
based on the principle that the maritime refueling activities by the 
MSDF dispatched under that law are not based on the United Nations 
Security Council's (UNSC) resolution." However, his stance is 
flexible to the dispatch of MSDF troops to the International 
Security and Assistance Force (ISAF), which is based on the UNSC 
resolution. It is absolutely impossible for SDF troops to take part 
in the main part of the ISAF, which engages in actual battles, 
according to a senior SDF officer. The government will likely 
consider the transportation of goods from neighboring countries as a 
realistic possibility. 
 
(6) Shiten (Viewpoint): Japan should consider long-term impact of 
Antiterrorism Law 
 
ASAHI (Page 11) (Slightly abridged) 
August 27, 2007 
 
By Kurt Campbell, former deputy assistant secretary of defense, and 
Michael Green, former senior director for Asian affairs at the 
National Security Council 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa seems to be 
determined to drive the Abe administration into corner by blocking 
an extension of the Antiterrorism Special Measures Law. Ozawa's 
stance has disappointed those Americans who still remember Ozawa's 
efforts to protect the Japan-United States alliance as deputy chief 
cabinet secretary about 20 years ago. We hear that Ozawa believes 
that even if his opposition undermines the Japan-US alliance, no one 
will remember this if the Democratic Party wins the presidential 
election in the US and if the DPJ seizes political power in Japan. 
We think such a view is incorrect. We hope Ozawa will reconsider his 
opposition and find a creative and effective way to reach a 
compromise with the Abe government. 
 
DPJ members seem to think that a withdrawal of Maritime Self-Defense 
Force's (MSDF) naval ships from the Indian Ocean will only hurt the 
relationship between President Bush and Prime Minister Abe. The two 
leaders have been exposed to domestic criticism. In the US, in 
particular, public views are split over the propriety of the Iraq 
war. The law that Ozawa is willing to kill provides the basis for 
Japan to dispatch naval vessels to support the war on terrorism in 
Afghanistan. It has noting to do with Iraq. In the US, many members 
of Congress from both parties support the campaign in Afghanistan. 
Should Japan drop out of the Coalition of the Willing, which is 
fighting with the Taliban government and Al-Qaeda, the next US 
administration, regardless of which party - Democratic or Republican 
- wins the presidential election, will be skeptical of Japan's 
credibility as an ally. 
 
Pakistan President Musharraf and Afghan President Karzai have highly 
 
TOKYO 00003987  010 OF 014 
 
 
evaluated the contributions by the MSDF. The Indian government is 
also eager to strengthen strategic ties with Japan and has welcomed 
the operations by the MSDF in the Indian Ocean. Persian Gulf 
countries also give high marks to Japan's dispatch of Ground, 
Maritime, and Air Self-Defense Force troops, against the backdrop of 
uncertainty looming over the situation in Iraq and China's attempt 
to strengthen its access to and influence in the region blessed with 
abundant oil resources. Each nation expects Japan to play up its 
military and diplomatic presence in the region, hoping to see the 
region stabilized. 
 
Persian Gulf nations and Japan have strengthened relations mainly in 
the diplomatic and economic areas. But Japan's readiness to offer 
military contributions demonstrates how seriously Japan is to 
fulfill its strategic role in the South Asian and Southwest Asian 
regions. 
 
Japan's withdrawal from the Coalition of the Willing would affect 
other coalition members, as well. In Canada's case, some of its 
soldiers were killed in Afghanistan. Australia, South Korea, and New 
Zealand also have dispatched troops and personnel for various types 
of rescue operations at their peril. The Coalition of the Willing 
also includes members of the North Atlantic Treaty Organization 
(NATO). As it stands, major democratic countries in the world have 
been involved in the war in Afghanistan, because they view it as a 
conflict between world civilization and terrorism. They have 
supported Japan playing a major role in the world. Whether Japan 
joins hands with these countries in Afghanistan will affect to what 
extent Japan's leadership will be approved at the G-8 summit, the 
Asia-Pacific Economic Council, and the United Nations Security 
Council (UNSC). 
 
If the DPJ is able to grab political power in the near future as a 
result of Ozawa's successful opposition to an extension of the 
Antiterrorism Special Measures Law, would it be possible for the DPJ 
president to tell his Canadian and Australian counterparts that 
Japan is cooperating with them in fighting terrorism and is ready to 
play a more significant role in the international community? After 
Japan withdraws Maritime Self-Defense Force forces due to the 
expiration of the Antiterrorism Law, would the Japanese ambassador 
to the UN be able to say that Japan is ready to perform the 
responsibility required of a permanent UNSC member? 
 
North Korea would be pleased to see Japan withdrawing MSDF troops 
from the Indian Ocean and the US-Japan alliance being undermined. 
 
Many countries are expected to respect Japan's decision and continue 
to value relations with Japan. But they may reconsider their views 
about Japan's role in the international community. 
 
Ozawa should be aware of such a possibility. When Iraq invaded 
Kuwait, the international community expected Japan to play a leading 
role, but the Kaifu cabinet was unable to meet such expectations. At 
that time, Ozawa made more efforts than any other members in the LDP 
to prevent Japan's diplomatic position from collapsing. Later, Ozawa 
set up his vision of making Japan into "an ordinary country," in 
which he stressed the need for Japan to play its due role in the 
international community. It took as long as 10 years until the 
international community began to seriously treat Japan as its 
partner. It is significant to remember this, because even if 
coalition countries can perform the part played by the MSDF after 
its withdrawal, and even if the DPJ grabs power, it will take many 
 
TOKYO 00003987  011 OF 014 
 
 
years for Japan to restore its scarred reputation. 
 
(7) Ozawa's betrayal as he turns anti-US 
 
SANKEI (Page 7) (Full) 
August 25, 2007 
 
Yoshihisa Komori, Washington 
 
Is Ichiro Ozawa a wolf in sheep's clothing? Ozawa is president of 
the major opposition Democratic Party of Japan (DPJ or Minshuto). He 
has been opposed to extending the Antiterrorism Special Measures 
Law. Japanologists in the United States are actively exchanging 
views over Ozawa's attitude. For instance, a hot debate is unfolding 
among Japan watchers on a Japan affairs-related website of the 
private-research institute "National Bureau of Asian Research" (NBR) 
with their real names shown. 
 
A veteran journalist who has covered Japan-US relations for three 
decades wrote: "Mr. Ozawa has disguised Japan's long-sustained 
attitude of not doing anything internationally in the area of 
security affairs by emphasizing his slogan of 'prioritizing the 
United Nations.' It's absolutely clear that the UN is powerless on 
the security front." The journalist portrayed Ozawa as a wolf in 
sheep's clothing. 
 
A scholar who has studied Japan over dozens of years noted: 
 
"Mr. Ozawa's opposition to extending the Antiterrorism Special 
Measures Law is apparently intended to prevent a group of former 
socialists in his party opposed to Japan taking any defense action 
from leaving the party. At the time of the Gulf War, no Japanese 
politician other than Ozawa strongly insisted on the need for Japan 
to cooperate with the US in the security area and on the need for 
Japan to dispatch Self-Defense Forces (SDF) personnel abroad," 
 
The two Americans expressed similar skepticism about Ozawa. They 
noted that Ozawa tends to turn anti-American or assume an attitude 
to oppose international cooperation, even if that means shifting his 
long-held views, once he sets his aim at rocking the Liberal 
Democratic Party (LDP)-led government or at achieving his party's 
goal of taking the helm of government. 
 
Dr. James Auer, former Japan desk director at the Pentagon was more 
acid in criticizing Ozawa: 
 
"Does Mr. Ozawa think that the UN will protect Japan from North 
Korea's missile threat or a contingency over the Taiwan Straits or 
China's ambitious military build-up? Japan's SDF's refueling 
operations going on in the Indian Ocean under the Antiterrorism 
Special Measures Law have been viewed not only as a valuable 
contribution to the US-Japan alliance but also critically important 
cooperation for international security efforts by a number of 
countries fighting international terrorists in Afghanistan. Ending 
such refueling services would be viewed as moving away from the 
US-Japan alliance, as well as from international security 
operations. It would cause a significant loss for Japan's own 
security." 
 
Even in the US political world, peacekeeping operations in 
Afghanistan apparently have been endorsed widely. Even Senator 
Barack Obama, a Democratic presidential candidate opposed to the 
 
TOKYO 00003987  012 OF 014 
 
 
deployment of US troops in Iraq, and House of Representative Tom 
Lantos, who criticized Japan for its former comfort women issue, 
have admired Japan's logistical assistance to the multinational 
forces in the Indian Ocean as an important contribution to 
exterminating international terrorists and stabilizing Asia. 
 
Even among Republicans, former Mayor of New York Rudolph Giuliani, 
who plans to run for the presidency, highlighted the importance of 
Japan increasing security cooperation through the bilateral 
alliance, warning that if operations in Afghanistan failed, that 
country would become a paradise for terrorists. Moreover, a 
resolution appreciating the US-Japan alliance was adopted by a 
majority of bipartisan votes in the House Foreign Affairs Committee, 
which did so to minimize the possible adverse impact of the 
so-called comfort women resolution earlier adopted by the House. The 
resolution appreciating  Japan's role in the alliance highly praised 
Japan's refueling operations in the Indian Ocean. 
 
Ozawa's opposition to extending the law is certain to meet with 
bipartisan objections in the US. 
 
In addition, the campaign to eliminate terrorists from Afghanistan 
has wide international participation. Aside from the degree of their 
participation, a total of some 30 countries, most of which are NATO 
members, have taken part in the campaign. I, too, visited Kabul and 
saw firsthand troops from Romania and Italy engaged in peacekeeping 
operations. I then realized that the operations international in 
nature. It is the international consensus that peacekeeping 
operations in Afghanistan have the approval of the United Nations 
Security Council (UNSC) under Resolution 1386. 
 
Auer criticized Ozawa also for his allowing the media to cover every 
part of his meeting with US Ambassador to Japan Thomas Schieffer, 
describing such a behavior as "running counter to diplomatic 
protocol and rude toward the US." Auer rapped Ozawa for his apparent 
tendency to shift even his basic policy if he is motivated by his 
desire to grab political power. 
 
These two elements appear linked to each other. Making light of the 
US ambassador to Japan and demonstrating an "anti-US" stance in 
Japan may be a somewhat childish act but it may appeal to a portion 
of the Japanese public. 
 
In the early 1990s, Ozawa was renowned both in Japan and the US as a 
political leader most receptive to America's desires and concerns, 
since he then attached importance to bilateral ties in dealing with 
market opening issues and economic disputes, as well as the question 
of dispatching the SDF abroad at the time of the Gulf War. Ozawa was 
then even called a "traitor to the country" by Hiromu Nonaka and 
other influential politicians. But now Ozawa has turned anti-US and 
is peddling an anti-US policy stance.  Is this the way Japanese 
politics is? 
 
(8) Ozawa's irresponsible anti-US performance 
 
SANKEI (Page 13) (Full) 
August 24, 2007 
 
Toshiyuki Shikata, professor at Teikyo University 
 
The Democratic Party of Japan (DPJ or Minshuto) now has the Liberal 
Democratic Party and New Komeito on the run, the ruling coalition 
 
TOKYO 00003987  013 OF 014 
 
 
having lost its majority in the House of Councillors as a result of 
the recent election. Cashing in on that momentum, the DPJ has 
launched a battle aimed at a victory in the next House of 
Representatives election that would allow it to take over the reins 
of government. To start the process, the DPJ plans to vote against a 
bill extending the Antiterrorism Special Measures Law beyond its 
Nov. 1 expiry. Under the anti-terror law, the Maritime Self-Defense 
Force has been staging its vessels in the Indian Ocean to engage in 
refueling activities there. The DPJ, however, has plans to force a 
recall of the MSDF unit. 
 
The DPJ has given its endorsement to the SDF's proactive 
participation in United Nations peacekeeping operations (PKO). 
However, the party has preconditioned such PKO participation on a UN 
Security Council resolution. 
 
The UNSC's current functions, however, are still insufficient. The 
interests of the permanent members are entangled, and the 
international situation is complicated. As it stands, UNSC actions 
are very limited. A UNSC resolution uses equivocal wording if the 
permanent members have different stakes. Ambivalent resolutions 
allow them to interpret them as they please. Actually, many 
countries think UNSC Resolution 1746-which requests international 
community members to continue their assistance with Afghanistan's 
reconstruction efforts-is enough for them to participate in an 
antiterror drive and other operations conducted in Afghanistan. 
 
Accordingly, should the DPJ concept of a "brake" be strictly 
applied, Japan will be almost unable to have the SDF fulfill Japan's 
international responsibilities to resolve important issues arising 
in the international community (or issues that are directly 
connected to Japan's vital interests). 
 
The DPJ is free to oppose the legislation revising the antiterror 
law as its political tactic. However, I wonder if the DPJ has an 
alternative plan for how Japan would take part in the international 
community's antiterror campaign in Afghanistan once the MSDF ships 
were recalled. 
 
The MSDF is now on a refueling mission in the Indian Ocean. In my 
view, this is the best possible option for Japan. If Japan is not 
able to do so, two alternative options are available. 
 
These would be apart from Japan joining the North Atlantic Treaty 
Organization's military operations in Afghanistan. One conceivable 
option for Japan would be to bankroll NATO with a huge amount of 
money for the time being. With the DPJ saying that Japan should not 
send SDF members but should make personnel contributions, the second 
option would be to pick several dozen volunteers from among the 
DPJ's crackerjack young people and send them to Afghanistan. 
 
Afghanistan's public security has turned very difficult-as seen from 
the fact that a group of religious volunteers from South Korea were 
kidnapped and some even slain. It is most difficult and dangerous to 
send civilians to Afghanistan now. 
 
The DPJ has criticized the Koizumi and Abe governments for "clinging 
to the United States" not only in a political sense but also in a 
military sense, claiming that Japan should be more independent of 
that country. Then, what would the DPJ do for Japan's national 
security in order for Japan to distance itself from the United 
States and step up its independence? 
 
TOKYO 00003987  014 OF 014 
 
 
 
There are five big factors that explain Japan's "clinging" to 
America in the security area. First, Japan is under the US nuclear 
umbrella. If the DPJ says Japan should strengthen its independence 
in the nuclear area, the DPJ should account to the nation in 
specific terms what it means to do. Second, Japan fully depends on 
the United States for "strategic striking capability." If the DPJ 
says Japan should strengthen its independence in this area, does it 
mean that Japan will also have strategic bombers and 
intermediate-range ballistic missiles? Third, Japan depends on the 
United States for the greater part of its military intelligence. 
Does the DPJ think Japan, as well as the United States and Russia, 
should have a national intelligence organization like the Central 
Intelligence Agency (CIA) in order for Japan to display its 
independence? Fourth, Japan depends on the United States largely for 
military technologies. If Japan is to scale back on its introduction 
of military technologies from the United States and make efforts to 
develop its own, Japan would have to make its defense industry quite 
colossal. Otherwise, would Japan export weapons to make up for the 
defense budget with profits from the overseas sales? Fifth, Japan 
depends on the US Navy's 7th Fleet for the greater part of its 
sea-lane defense. So, how far would the DPJ build up the MSDF in 
order for Japan to strengthen its independence? 
 
The DPJ is aiming to take the helm of state. In the run-up to power, 
however, the DPJ must make public its own ideas for at least these 
five principles of strengthening Japan's independence. 
 
The DPJ says Japan should center its foreign policy on the United 
Nations. Then, I wonder if the DPJ has a realistic process in mind 
to shape Japan's bid for a permanent seat on the UNSC. The DPJ has 
never explained its blueprint to the nation. 
 
Many people want to see a two-party system in place. They are 
waiting for the DPJ to show a convincing answer. The DPJ should make 
public its down-to-earth security policy to meet the public 
expectations. 
 
Playing to the gallery, the DPJ only discusses domestic issues that 
are appealing to the public. DPJ President Ozawa has scoffed at the 
US Embassy in Japan, and he made a display of his party's stance of 
being able to say "no" to the United States. Such a stand, however, 
will not lead to the DPJ being able to take over political power. 
The public is wiser than the DPJ thinks. The DPJ must not forget 
this. 
 
DONOVAN