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UNCLAS SECTION 01 OF 21 TOKYO 004046 
 
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 08/30/07 
 
 
Index: 
 
(1) Ozawa again voices his opposition to antiterrorism law, this 
time to German Chancellor Merkel 
 
(2) DPJ head Ozawa to announce new executives tomorrow, maintain 
tripartite system to fight battle in fall Diet session; focus on 
treatment of Okada, Maehara 
 
(3) Violation of election law by members of Ai Aoki's election 
campaign camp: Chiba Prefectural Police finalizing procedures for 
building case against DPJ head Ozawa's secretary 
 
(4) Prime Minister Abe's ability as commander of CEFP be tested in 
reform promotion 
 
(5) Japan, China resume defense exchange after a lapse of four 
years, agree to lay hotline 
 
(6) Interview with Foreign Minister Nobutaka Machimura: Plans to 
discuss question of extending the antiterrorism law systematically 
 
(7) Spot poll on new Abe cabinet, political parties (Asahi) 
 
(8) Poll on new Abe cabinet, political parties (Sankei) 
 
(9) Poll on new Abe cabinet, political parties (Mainichi) 
 
(10) Poll on new Abe cabinet, political parties (Nikkei) 
 
(11) Poll on new Abe cabinet, political parties (Tokyo Shimbun) 
 
(12) Japan, EU to set in motion negotiations on EPA by beginning 
joint research possibly in September 
 
(13) Okinawa refuses to receive Henoko assessment outline from 
Defense Ministry 
 
(14) Pension, Antiterrorism Law to be major issues at extra Diet 
session; Right of Diet member to investigate state affairs to become 
another tool for DPJ to attack government, ruling camp 
 
(15) Three cabinet ministers among CEFP members replaced: Is panel 
going to correct its growth policy? 
 
ARTICLES: 
 
(1) Ozawa again voices his opposition to antiterrorism law, this 
time to German Chancellor Merkel 
 
NIKKEI NET 
13:18, August 30, 2007 
 
Democratic Party of Japan President Ichiro Ozawa had a meeting with 
visiting German Chancellor Angela Merkel at a Tokyo hotel this 
morning. Ozawa there reiterated his opposition to an extension of 
the Antiterrorism Special Measures Law, which is scheduled to expire 
on November 1, saying, "The problem is that in-depth discussion has 
not yet been conducted on it." 
 
He added: "Japan should actively join only those activities that 
were authorized by the United Nations. The operation in the Indian 
 
TOKYO 00004046  002 OF 021 
 
 
Ocean should be considered from that viewpoint." Ozawa stressed that 
UN authorization should be used as the basis in making decisions for 
sending Self-Defense Force troops overseas. 
 
Merkel said: "In dealing with Afghanistan, as many countries as 
possible should be involved. I am aware of the need for discussion, 
but if Japan is to play a more active role in the international 
community, I think your country should bear greater 
responsibility." 
 
(2) DPJ head Ozawa to announce new executives tomorrow, maintain 
tripartite system to fight battle in fall Diet session; focus on 
treatment of Okada, Maehara 
 
ASAHI (Page 2) (Full) 
August 30, 2007 
 
Following the inauguration of a new cabinet of Prime Minister Shinzo 
Abe, Democratic Party of Japan (DPJ) President Ichiro Ozawa in turn 
will reshuffle tomorrow the lineup of his party's executive board, 
with an eye on clashes with the ruling camp expected in the upcoming 
extraordinary session of the Diet. Who will be picked as chairman of 
the Policy Research Committee and chairman of the Diet Affairs 
Committee - positions that will have to stand at the forefront in 
the extra session? The DPJ now controls the House of Councillors. 
The DPJ, as the main opposition party, has decided to work out 
alternative legislation to the Antiterrorism Special Measures Law 
(which is up for extension). The party is also preparing for 
measures to deal with the pension record-keeping debacle, which 
contributed to the DPJ's big win in the July House of Councillors 
election. Securing such tools as the right of a Diet member to 
investigate state affairs, the DPJ is now busy with preparations for 
locking horns with the government and ruling coalition in the Diet. 
 
 
"I want to change our executive board after seeing the lineup of the 
three new executives of the Liberal Democratic Party (LDP) and the 
new cabinet ministers," Ozawa told Secretary General Yukio Hatoyama 
last weekend while the two were drinking sake. 
 
Ozawa has been staying in a Tokyo hotel for several days to work out 
his schedule of appointments. 
 
Growing Ozawa's influence over the party 
 
The triumvirate of Ozawa, Hatoyama and Deputy President Naoto Kan 
will be maintained. However, Policy Research Committee Chairman 
Takeaki Matsumoto and Diet Affairs Committee Chairman Yoshiaki 
Takaki will likely be replaced. Ozawa will decide on the lineup of 
the "Next Cabinet," which used to be picked by the Policy Research 
Committee chairman. Ozawa's grip on the party has strengthened 
because of the party's landslide victory in the Upper House race. No 
objection will likely be raised against Ozawa's arbitrary 
appointments. 
 
Ozawa has stressed that the party needs complete unanimity. The 
focus is now on how former Presidents Katsuya Okada and Seiji 
Maehara will be treated. 
 
Okada has distanced himself from the leadership since the party 
suffered a loss in the 2005 House of Representatives election. 
Maehara also has not served in any key post since he quit the 
 
TOKYO 00004046  003 OF 021 
 
 
presidential post last March to take responsibility for an e-mail 
fiasco. Many party members hold high expectations that Okada, who 
put up a good fight in Diet debates with then Prime Minister 
Junichiro Koizumi, and Maehara, who is a policy specialist, will 
serve in key posts. 
 
(3) Violation of election law by members of Ai Aoki's election 
campaign camp: Chiba Prefectural Police finalizing procedures for 
building case against DPJ head Ozawa's secretary 
 
ASAHI (Page 1) (Excerpts) 
August 30, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) lawmaker Ai Aoki's 
campaign headquarters has violated the Public Office Election Law in 
the July Upper House election. Aoki was elected from the 
proportional representation bloc. Regarding this case, the president 
of a printing company was arrested by the Chiba Prefectural Police 
for allegedly acting in the interests of Aoki by having thousands of 
billboards with her election campaign posters put up by pledging to 
pay remuneration to a person who agreed to do the job. In a related 
development, it was learned that the president told investigators 
that he did so on the orders of DPJ head Ichiro Ozawa's policy 
secretary (45). The police have established the fact that the two 
 
SIPDIS 
suspects frequently spoke by telephone. The police are now 
investigating with the possibility of building a case against the 
secretary as an accomplice. 
 
SIPDIS 
 
The prefectural police have arrested Masahiko Nagashima (50), 
president of Shusansha, a printing company, and Rentaro Washio (38), 
president of Dainichi, a billboard company. Shima allegedly asked 
Washio to put up thousands of billboards with Aoki's election 
campaign posters around July 11 the day before the official 
announcement of the Upper House election and pledged to pay him 500 
yen per board. 
 
The Public Office Election Law allows the payment of remuneration to 
specific election campaign participants, such as those who do simple 
labor work as drivers or campaign car attendants. However, the 
police have judged that the case this time does not fall under this 
category and that the job in question should have been done without 
remuneration. Their perception is that the party that received the 
remuneration was a corporation and the president of the printing 
company took advantage of their contract relationship, which 
constitutes acting in the interests of a specific candidate in an 
election. 
 
As a result of the investigation so far, Shima and Washio are now 
suspected of having exchanged conversations on where to put up 
billboards and the amount of remuneration from late June through 
early July. When Aoki's office and Shima concluded a contract for 
putting up billboards, the secretary was allegedly present. 
 
(4) Prime Minister Abe's ability as commander of CEFP be tested in 
reform promotion 
 
NIKKEI (Page 5) (Full) 
August 29, 2007 
 
Following the inauguration of a new cabinet, the lineup of the 
government's Council on Economic and Fiscal Policy (CEFP) will 
change. Kaoru Yosano, former state minister in charge of economic 
 
TOKYO 00004046  004 OF 021 
 
 
and fiscal policy, will return to the CEFP as chief cabinet 
secretary. Former Iwate Gov. Hiroya Masuda will join the panel as 
 
SIPDIS 
minister of internal affairs and communications. In order to achieve 
a balance between an economic growth, including revitalizing local 
economies, and fiscal soundness, the panel will be made up of 
capable persons, but the leadership of the Prime Minister's Official 
Residence (Kantei) alone will not be sufficient for coming up with 
policy measures because the opposition camp now controls the House 
of Councillors. 
 
Chief Cabinet Secretary Yosano, Internal Affairs and Communications 
Minister Masuda and Finance Minister Fukushiro Nukaga are new 
members of the council. Yosano, predecessor of Economic and Fiscal 
Policy Minister Hiroko Ota, who was retained in her post, once 
managed the panel. Yosano is the one who advocated the need for a 
program on reform of both the revenue and expenditure systems -- the 
program which includes a plan to cut expenditures for five years 
from fiscal 2007 as part of the 2006 "Big-boned reform policy 
guidelines." 
 
Ota, a former university professor, has taken part in the management 
of the CEFP since 2002 when she joined the Cabinet Office. The 
dominant view in the government is that Yosano and Ota, who know 
well about the utilization of the council, will lead discussion in 
the panel. 
 
With the return of Yosano, who enjoys the deep confidence of 
bureaucrats, to the CEFP, a senior economy-related ministry official 
said: "Realistic policy proposals will increase." But some pointed 
out a delicate gap between them. 
 
Ota has placed priority on boosting tax revenues by enhancing 
nominal growth, while Yosano insisted during his tenure as economic 
and fiscal policy minister that the idea of increasing tax revenues 
would not lead to achieving fiscal soundness since long-term 
interest rates would hike when a growth rate increased, and as a 
result, nonpayment expenses of government bonds would boost. He 
argued with Heizo Takenaka, former minister of internal affairs and 
communications. Regarding the Bank of Japan's hike in interest 
rates, Ota reportedly is cautious about a hike in interest rates by 
the Bank of Japan, while Yosano stands in neutral. 
 
All eyes are now also on Finance Minister Fukushiro Nukaga's words 
and actions. Before serving his first cabinet post, he was state 
secretary of the Ministry of International Trade and Industry 
 
SIPDIS 
(MITI). He, a lawmaker tied to economic and commerce affairs, became 
finance minister, following his predecessor, Koji Omi. In a speech 
yesterday, Nukaga said to his ministry staffers: "There is no fiscal 
policy that needs for fiscal policy," indicating his stance of 
attaching emphasis to economic growth. Masuda, who was known well as 
a reformist governor, has continued to communicate with Ota. 
 
With the abolishment of the post of special advisor on economic and 
fiscal policy in the Kantei, observers predict that the position of 
the CEFP will become clear again. 
 
However, a senior Finance Ministry official made this comment: 
"Decisions on policy measures will be made in consultations between 
the ruling and opposition camps." Policy measures will not be 
compiled by the intentions of the Kantei and the government alone. 
Ota plans to push forward with discussion on tax and social security 
issues. The question will be whether the CEFP can cooperate and 
 
TOKYO 00004046  005 OF 021 
 
 
share jobs with the ruling coalition. 
 
A senior Cabinet Office official said: "Whether the council will 
function depends on the prime minister's leadership." Therefore, how 
Prime Minister Abe will manage economic policy will be called into 
question. 
 
(5) Japan, China resume defense exchange after a lapse of four 
years, agree to lay hotline 
 
YOMIURI (Page 1) (Excerpts) 
Eve., August 30, 2007 
 
Defense Minister Masahiko Komura this morning met with Chinese 
National Defense Minister Cao Gangchuan at his Defense Ministry, and 
the two leaders agreed to establish a hotline between Japanese and 
Chinese defense officials and make reciprocal port calls by vessels 
from the Maritime Self-Defense Force (MSDF) and the Chinese Navy. 
The defense summit between the two countries took place for the 
first time since the one held in Beijing in September 2003. Japan 
and China have now resumed full-scale defense exchange. 
 
In the meeting, the defense leaders agreed to set up a working group 
aimed at establishing a hotline between Japanese and Chinese defense 
officials. On reciprocal port calls by vessels, the two leaders 
confirmed that Chinese vessels would first make a port call at a 
Japanese port in December. 
 
Komura cited two-digit increases in China's national defense 
spending for 19 years in a row and asked that China make its 
national defense policy and military spending transparent. He told 
Cao: "A rough breakdown of the total defense budget has been 
provided, but the details have not been disclosed." Cao told 
Machimura: "We are making efforts to achieve that." 
 
Turning to the issue of the Taiwan Strait, Cao sought to check Japan 
by noting, "We are paying close attention to the connection between 
the Japan-US security arrangements and Taiwan." In response, 
Machimura urged a peaceful resolution of the Taiwan issue, saying, 
"Japan and Taiwan have working-level relations at the 
nongovernmental level. Japan has been consistently opposed to 
(China's use) of armed force (toward Taiwan)." 
 
Cao invited Komura to visit China sometime next year, and Komura 
accepted the invitation. 
 
(6) Interview with Foreign Minister Nobutaka Machimura: Plans to 
discuss question of extending the antiterrorism law systematically 
 
ASAHI (Page 4) (Full) 
August 30, 2007 
 
-- Your predecessor Taro Aso used the slogan "arc of freedom and 
prosperity" to describe his foreign policy. How will you bring out 
your own "Machimura color"? 
 
Machimura: I am not that familiar with the term "arc of freedom and 
prosperity." You mentioned my adding my own "color," but I don't 
intend to use any grandiose expression. We will host the next Group 
of Eight (G-8) summit. Issues Japan faces now include sovereignty 
over the Northern Territories, global warming, which requires global 
efforts, energy resources, and the abductions of Japanese nationals 
 
TOKYO 00004046  006 OF 021 
 
 
by North Korea. I think it is necessary for us to move at least a 
half step or one step forward toward resolving those issues. 
 
-- Prime Minister Abe has advocated a "values-oriented diplomacy." 
Someone explained that it could serve as a noose around China. 
 
Machimura: I'm sorry for my lack of study, but I don't know the 
details of it. However, because we share the same values with the 
United States, Australia, India, and the European Union, it is easy 
to work together with them and expand exchanges with them. I know a 
number of arguments exist about what political system China might 
adopt in the future, but do you really think it is possible to 
contain China as was done in the Cold War period? By expanding our 
engagement with that country we can develop a  strategic 
mutually-beneficial relationship. If we remain narrow-minded by 
saying we can't associate (with China) because of the differences in 
our political systems, we will never get anywhere. 
 
-- In past Diet debates on the Anti-Terrorism Special Measures Law, 
the major opposition Democratic Party of Japan (DPJ or Minshuto) 
insisted that Diet approval should be obtained in advance. Is it 
possible to amend the law in such fashion? 
 
Machimura: Revising the law may be one answer, but I think the first 
thing to do is to think how Japan can actively engage itself in 
fighting terrorism as a responsible member of the international 
community. Next, we should discuss how to position activities taken 
under the Antiterrorist Special Measures Law. Lastly, we should 
discuss what sort of legislation is necessary to realize that. If we 
discuss matters in this order, I believe we can naturally get an 
answer. (The DPJ) sticks to opposition (to revising the law) without 
holding any internal party debate, but this attitude demonstrates 
its failure to fulfill its responsibility as an opposition party. 
 
-- The Japan-North Korea working group in the six-party talks is 
about to open. 
 
Machimura: I'm neither pessimistic nor optimistic about it. I'll 
simply promote talks in a proper manner. The initial plan was that 
Japan, the US, and South Korea would act in concert, but now South 
Korea stands out, and the US is displaying its originality. Japan 
has its own issue of abductions of Japanese nationals by North 
Korea. That's fine. There's an argument that Japan may be left out 
of the loop, but that's wrong. Saying such a thing is what North 
Korea wants to see. The five countries have shared the common goal 
of "denuclearizing the Korean Peninsula." 
 
(7) Spot poll on new Abe cabinet, political parties (Asahi) 
 
ASAHI (Page 2) (Full) 
August 29, 2007 
 
Questions & Answers 
(Figures shown in percentage, rounded off. Bracketed figures denote 
proportions to all respondents. Figures in parentheses denote the 
results of a post-election spot survey conducted July 30-31 after 
the July 29 election for the House of Councillors.) 
 
Q: Do you support the Abe cabinet? 
 
Yes 33 (26) 
No 53 (60 
 
TOKYO 00004046  007 OF 021 
 
 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP) 25 (21) 
Democratic Party of Japan (DPJ or Minshuto) 32 (34) 
New Komeito (NK) 3 (5) 
Japanese Communist Party (JCP) 3 (3) 
Social Democratic Party (SDP or Shaminto) 1 (2) 
People's New Party (PNP or Kokumin Shinto) 0 (1) 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 
Other political parties 1 (0) 
None 29 (30) 
No answer (N/A) + don't know (D/K) 6 (4) 
 
 
Q: Do you think the Abe cabinet's new lineup is talented? 
 
Yes 30 
No 39 
 
Q: Yoichi Masuzoe, an LDP lawmaker seated in the House of 
Councillors, has been appointed to the post of health, labor and 
welfare minister. Do you have expectations for him? 
 
Yes 73 
No 20 
 
Q: Hiroya Masuda, a former governor of Iwate Prefecture, has been 
appointed to the post of internal affairs and communications. Do you 
have expectations for him? 
 
Yes 41 
No 30 
 
Q: How is your rating of Prime Minister Abe after seeing his 
cabinet's new lineup? 
 
Improved 18 
Worsened 9 
Unchanged 66 
 
Q: What would you like the new cabinet to pursue first? (One choice 
only) 
 
Pension system 39 
Social divide 20 
Economic growth policy 17 
Fiscal reconstruction 19 
 
Q: Prime Minister Abe's term of office as LDP president is until the 
fall of next year. Would you like him to stay on until the end of 
his term? 
 
Yes 41 
No 47 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Why? (One choice only) 
 
Something can be expected of his policies 12(5) 
He's close to public sensitivity 11(4) 
There's no other appropriate person 72(29) 
 
TOKYO 00004046  008 OF 021 
 
 
 
Q: (Only for those who answered "no" to the above question) Why? 
(One choice only) 
 
Nothing can be expected of his policies 24(11) 
He's off public sensitivity 56(26) 
I want someone else to replace him 18(9) 
 
Q: As a result of this summer's election for the House of 
Councillors, the opposition parties came to hold a majority of the 
seats in the House of Councillors while the ruling parties dominate 
the House of Representatives. Do you think the ruling and opposition 
parties will proceed with discussions to create better laws? 
 
Yes 44 
No 43 
 
Q: The Antiterrorism Special Measures Law is to run out on Nov. 1. 
The government plans to extend the law for another year. However, 
the DPJ remains committed to oppose this antiterror law's extension. 
Do you support its extension? 
 
Yes 35 
No 53 
 
Polling methodology: The survey was conducted from the evening of 
Aug. 27 through the evening of Aug. 28 over the telephone on a 
computer-aided random digit dialing (RDD) basis. Respondents were 
chosen from among the nation's voting population on a three-stage 
random-sampling basis. Valid answers were obtained from 989 persons 
(57 PERCENT ). 
 
(8) Poll on new Abe cabinet, political parties (Sankei) 
 
SANKEI (Page 5) (Full) 
August 30, 2007 
 
Questions & Answers 
(Figures shown in percentage, rounded off.) 
 
Q: Do you support the new Abe cabinet? 
 
Yes 38.0 (22.0) 
No 42.9 (64.8 
Don't know (D/K) + Can't say which (CSW) 19.1 (13.2) 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 28.2 (23.0) 
Democratic Party of Japan (DPJ or Minshuto) 30.9 (32.8) 
New Komeito (NK) 5.6 (4.5) 
Japanese Communist Party (JCP) 2.3 (4.3) 
Social Democratic Party (SDP or Shaminto) 1.1 (2.0) 
People's New Party (PNP or Kokumin Shinto) 0.2 (0.7) 
New Party Nippon (NPN or Shinto Nippon) 0.6 (1.4) 
Other answers (O/A) 1.6 (1.1) 
None 28.3 (28.6) 
D/K + Can't say (C/S) 1.2 (1.6) 
 
Q: How do you evaluate Prime Minister Abe and his cabinet on the 
items listed below? 
 
 
TOKYO 00004046  009 OF 021 
 
 
His personal character 
Yes 50.2 (50.7) 
No 41.2 (37.7) 
D/K+CSW 8.6 (11.6) 
 
His leadership 
Yes 10.3 (8.1) 
No 79.1 (80.8) 
D/K+CSW 10.6 (11.1) 
 
Policy priority 
Yes 22.8 (17.3) 
No 27.9 (53.8) 
D/K+CSW 19.3 (28.9) 
 
Response to Defense Ministry personnel issue 
Yes 19.5 
No 61.8 
D/K+CSW 18.7 
 
Cabinet, LDP executive shuffles this time 
Yes 41.5 
No 37.7 
D/K+CSW 20.8 
 
Political stance after the LDP's defeat in this July's upper house 
election 
Yes 25.2 
No 60.7 
D/K+CSW 14.1 
 
Q: What's your impression of the Abe cabinet's new lineup? 
 
None the better for the change 26.7 
Balance considered 26.1 
Featureless 19.0 
Competent 13.3 
Unexpected 5.9 
Fresh 3.0 
D/K+CSW 6.0 
 
Q: What would you like the new Abe cabinet to pursue first? 
 
Pension issue 28.7 
Economic disparities 21.1 
Politics and money 12.4 
Tax reforms, including consumption tax 8.3 
Education reform 7.1 
Global warming 7.1 
North Korea 4.8 
Constitutional revision 3.1 
Better government 2.1 
National security 1.6 
D/K+CSW 3.7 
 
Q: When would you like the next election to take place for the House 
of Representatives? 
 
Within the year 28.3 
During next year 46.2 
During the year after next 22.3 
D/K+CSW 3.2 
 
TOKYO 00004046  010 OF 021 
 
 
 
Q: How long do you think Prime Minister Abe will stay on? 
 
Step down within the year 23.3 
Until around the next election for the House of Representatives 
55.0 
Until the fall of the year after next 14.2 
Beyond the fall of the year after next 3.9 
D/K+CSW 3.6 
 
Q: Do you support extending the Antiterrorism Special Measures Law? 
 
Yes 34.2 
No 54.6 
D/K+CSW 11.2 
 
Q: Who do you think is most appropriate for the post-Abe 
premiership? 
 
Taro Aso 21.5 
Junichiro Koizumi 12.1 
Yasuo Fukuda 11.5 
Sadakazu Tanigaki 4.5 
Nobuteru Ishihara 3.1 
Yuriko Koike 1.3 
Fukushiro Nukaga 0.4 
Other ruling party lawmakers 2.5 
Ichiro Ozawa 12.6 
Other opposition party lawmakers 4.1 
No one but Prime Minister Abe 2.0 
None 17.6 
D/K+CSW 6.8 
 
Q: Do you think you are a floating voter with no party in particular 
to support? 
 
Yes 52.0 (55.1) 
No 44.6 (38.9) 
D/K+CSW 3.4 (6.0) 
 
(Note) Figures in parentheses denote the results of an FNN-Sankei 
survey conducted in July. 
 
Polling methodology: The survey was conducted Aug. 27-28 by the 
Sankei Shimbun and Fuji News Network (FNN) over the telephone on a 
computer-aided random digit dialing (RDD) basis. For the survey, a 
total of 1,000 persons were sampled from among males and females, 
aged 20 and over, across the nation. 
 
(9) Poll on new Abe cabinet, political parties (Mainichi) 
 
MAINICHI (Page 2) (Full) 
August 29, 2007 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: Do you support the Abe cabinet? 
 
 T P M F 
Yes 33 (32) 31 34 
No 52 (65) 58 49 
 
TOKYO 00004046  011 OF 021 
 
 
Not interested 14 (12) 11 16 
 
Q: (Only for those who answered "yes" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 28 
(21) 32 26 
Because something can be expected of the prime minister's leadership 
8 (13) 6 8 
Because there's a young, fresh image about the prime minister 35 
(32) 29 38 
Because something can be expected of the prime minister's policy 
measures 24 (30) 25 24 
 
Q: (Only for those who answered "no" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 8 
(7) 9 6 
Because nothing can be expected of the prime minister's leadership 
55 (57) 50 58 
Because the prime minister is inexperienced, weak 18 (16) 17 19 
Because I'm opposed to the prime minister's policies 19 (18) 22 16 
 
Q: Which political party do you support? 
 
 T P M F 
Liberal Democratic Party (LDP) 26 (17) 26 26 
Democratic Party of Japan (DPJ or Minshuto) 26 (33) 33 23 
New Komeito (NK) 5 (6) 4 5 
Japanese Communist Party (JCP) 3 (4) 3 3 
Social Democratic Party (SDP or Shaminto) 1 (2) 1 1 
People's New Party (PNP or Kokumin Shinto) 1 (1) 1 1 
New Party Nippon (NPN or Shinto Nippon) 0 (1) 0 0 
Other political parties 1 (1) 1 2 
None 36 (35) 29 39 
 
 
Q: Prime Minister Abe shuffled his cabinet and LDP executives. Do 
you support the new lineups of his cabinet and LDP executives? 
 
 T P M F 
Yes 43  43 43 
No 47  48 46 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Why? 
 
 T P M F 
They are fresh 18  13 20 
The premier displayed leadership 3  4 2 
They are talented 39  43 37 
The premier is willing to continue reforms 39  39 40 
 
Q: (Only for those who answered "no" to the foregoing question) 
Why? 
 
 T P M F 
They are not fresh 19  16 22 
The premier didn't display leadership 21  21 21 
They are on a one-time balance of intraparty factions 31  37 27 
The premier is unwilling to continue reforms 26  23 28 
 
TOKYO 00004046  012 OF 021 
 
 
 
Q: How long do you think Prime Minister Abe should remain in 
office? 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Why? 
 
 T P M F 
Step down right now 23  30 18 
Step down within the year 25  23 26 
Step down in a year or so 23  19 26 
Stay on as long as possible 25  23 26 
 
 
Q: The DPJ and other opposition parties are calling for Prime 
Minister Abe to dissolve the House of Representatives for a general 
election. Do you think the prime minister should do so? 
 
 T P M F 
Yes 53 (58) 56 51 
No 43 (39) 41 44 
 
(Note) Figures shown in percentage, rounded off. "0" indicates that 
the figure was below 0.5 PERCENT . "No answer" omitted. Figures in 
parentheses denote the results of the last survey conducted Aug. 
4-5. 
 
Polling methodology: The survey was conducted Aug. 27-28 over the 
telephone with the aim of calling a total of 1,000 voters across the 
nation on a computer-aided random digit sampling (RDS) basis. 
Answers were obtained from 924 persons. 
 
(10) Poll on new Abe cabinet, political parties (Nikkei) 
 
NIKKEI (Page 3) (Full) 
August 29, 2007 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote findings from the 
last survey conducted in late July.) 
 
Q: Do you support the Abe cabinet? 
 
Yes 41 (28) 
No 40 (63) 
Can't say (C/S) + don't know (D/K) 19 (9) 
 
 
Q: Which political party do you support or like now? 
 
Liberal Democratic Party (LDP) 35 (29) 
Democratic Party of Japan (DPJ or Minshuto) 36 (44) 
New Komeito (NK) 4 (5) 
Japanese Communist Party (JCP) 3 (4) 
Social Democratic Party (SDP or Shaminto) 2 (2) 
People's New Party (PNP or Kokumin Shinto) 1 (1) 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 
Other political parties 1 (0) 
None 14 (9) 
C/S+D/K 4 (5) 
 
Q: Do you support Prime Minister Abe's decision to stay on? 
 
TOKYO 00004046  013 OF 021 
 
 
 
Yes 40 (36) 
No 49 (50) 
C/S+D/K 12 (14) 
 
Q: What form of government would you like to see in the future? 
 
LDP's single-party government 7 (8) 
Coalition government centering on the LDP and New Komeito 15 (14) 
Non-LDP coalition government centering on the DPJ 22 (28) 
Coalition government involving the LDP and the DPJ 40 (34) 
Other answers 4 (4) 
C/S+D/K 13 (13) 
 
(Note) The total percentage does not become 100 PERCENT  in some 
cases due to rounding. 
 
Polling methodology: The survey was taken Aug. 27-28 by Nikkei 
Research Inc. over the telephone on a random digit dialing (RDD) 
basis. For the survey, samples were chosen from among men and women 
aged 20 and over across the nation. A total of 1,235 households with 
one or more voters were sampled, and answers were obtained from 687 
persons (55.6 PERCENT ). 
 
(11) Poll on new Abe cabinet, political parties (Tokyo Shimbun) 
 
TOKYO SHIMBUN (Page 3) (Full) 
August 29, 2007 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote the results of the 
last survey conducted July 30-31.) 
 
Q: Do you support the new Abe cabinet? 
 
Yes 40.5 (29.0) 
No 45.5 (59.0) 
Don't know (D/K) + no answer (N/A) 14.0 (12.0) 
 
Q: (Only for those who answered "yes" to the previous question) 
What's the primary reason for your approval of the Abe cabinet? Pick 
only one from among those listed below. 
 
The prime minister is trustworthy 25.0 (24.1) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 5.8 (14.2) 
The prime minister has leadership ability 2.2 (1.9) 
Something can be expected of its economic policies 3.0 (4.6) 
Something can be expected of its foreign policies 7.2 (4.6) 
Something can be expected of its political reforms 9.4 (7.1) 
Something can be expected of its tax reforms 1.8 (2.0) 
Something can be expected of its administrative reforms 7.6 (7.1) 
There's no other appropriate person (for prime minister) 34.3 
(31.4) 
Other answers (O/A) 1.7 (0.4) 
D/K+N/A 2.0 (2.6) 
 
Q: (Only for those who answered "no" to the first question) What's 
the primary reason for your disapproval of the Abe cabinet? Pick 
only one from among those listed below. 
 
The prime minister is untrustworthy 10.8 (10.8) 
 
TOKYO 00004046  014 OF 021 
 
 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 8.9 (5.9) 
The prime minister lacks leadership ability 30.5 (31.0) 
Nothing can be expected of its economic policies 18.3 (19.6) 
Nothing can be expected of its foreign policies 2.3 (1.0) 
Nothing can be expected of its political reforms 12.1 (11.8) 
Nothing can be expected of its tax reforms 3.9 (7.1) 
Nothing can be expected of its administrative reforms 3.8 (5.4) 
Don't like the prime minister's personal character 2.9 (3.4) 
O/A 3.5 (2.5) 
D/K+N/A 3.0 (1.5) 
 
Q: What do you think about the Abe cabinet's new lineup? 
 
Up to my expectations 26.3 
Short of my expectations 12.5 
No expectations from the start 52.4 
D/K+N/A 8.8 
 
Q: What do you think the new Abe cabinet should fast-track? Pick 
only one from among those listed below. 
 
Social security, including pensions 38.1 
Constitutional revision 3.0 
Social divide 16.1 
Politics and money 8.9 
Economy, employment 11.8 
Tax system 6.3 
Education 6.6 
Foreign, security policies 5.9 
O/A 1.6 
D/K+N/A 1.7 
 
Q: The Liberal Democratic Party was utterly defeated in this 
summer's election for the House of Councillors. Prime Minister Abe, 
however, stays on. What do you think about this? 
 
Stay on 44.8 (43.7) 
Step down 51.3 (49.5) 
D/K+N/A 3.9 (6.8) 
 
Q: Would you like the current LDP-led coalition to remain in office, 
or would you otherwise like it to be replaced with a coalition 
centering on the Democratic Party of Japan (Minshuto)? 
 
LDP-led government 44.2 
DPJ-led government 41.7 
D/K+N/A 14.1 
 
Q: The current House of Representatives membership is up until 
September 2009. When would you like the next election to take place 
for the House of Representatives? 
 
Within the year 30.0 (29.0) 
During the first half of next year 28.7 (31.6) 
During the latter half of next year 17.8 (14.8) 
The year after next 16.3 (16.9) 
D/K+N/A 7.2 (7.7) 
 
Q: The Maritime Self-Defense Force has been refueling US and other 
foreign naval vessels in the Indian Ocean under the Antiterrorism 
Special Measures Law. This antiterror law, however, is to expire 
 
TOKYO 00004046  015 OF 021 
 
 
Nov. 1. Do you think the law should be extended? 
 
Yes 38.6 
No 48.2 
D/K+N/A 13.2 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 38.8 (31.5) 
Democratic Party of Japan (DPJ or Minshuto) 25.6 (37.6) 
New Komeito (NK) 3.2 (4.5) 
Japanese Communist Party (JCP) 3.5 (3.4) 
Social Democratic Party (SDP or Shaminto) 1.8 (2.7) 
People's New Party (PNP or Kokumin Shinto) 1.3 (0.8) 
New Party Nippon (NPN or Shinto Nippon) 1.0 (1.9) 
Other political parties, groups --- (---) 
None 24.1 (15.9) 
D/K+N/A 0.7 (1.7) 
 
Polling methodology: The survey was conducted from the evening of 
Aug. 28 through Aug. 28 by Kyodo News Service on a computer-aided 
random digit dialing (RDD) basis. Among randomly generated telephone 
numbers, those actually for household use with one or more eligible 
voters totaled 1,451. Answers were obtained from 1,030 persons. 
 
(12) Japan, EU to set in motion negotiations on EPA by beginning 
joint research possibly in September 
 
ASAHI (Page 1) (Abridged slightly) 
August 29, 2007 
 
Japan and the European Union (EU) will launch a joint study possibly 
in September as the first step toward signing an economic 
partnership agreement (EPA). This is Japan's first move toward 
holding EPA negotiations with a region that is a major consumer of 
goods. 
 
The Japan-EU Business Dialogue Round Table, which consists of 
business leaders from the EU and Japan, will set up a workshop, 
which will be backed by the Japan Business Federation (Nippon 
Keidanren) and a European economic organization. Supported also by 
the Ministry of Economy, Trade and Industry (METI) and the Japan 
External Trade Organization (JETRO), the workshop will set the stage 
for government-level talks to make a start. The workshop will put 
together a report by the time of the Group of Eight (G-8) 
industrialized countries summit in Lake Toya, Hokkaido, in July 2008 
and submit it to leaders from Japan and the EU member countries who 
are to attend the G-8 summit in order to give impetus to EPA 
negotiations between Japan and the EU. 
 
The workshop will look into challenges Japan will face to realize 
the conclusion of an EPA with the EU and the economic impact of such 
an agreement. The workshop also envisions the possibility of 
concluding an economic integration agreement (EIA), which will make 
Japan-EU economic ties deeper than a conventional free trade 
agreement (FTA) or an EPA. The workshop will deal with not only 
reducing or lifting tariffs on industrial products and agricultural 
products but also the standardization of government rules as well as 
technology, and the expansion of cooperation in the area of climate 
change. 
 
Japan's exports to the EU in 2006 totaled 10.8 trillion yen and 
 
TOKYO 00004046  016 OF 021 
 
 
centered on autos. The EU is the second largest destination of 
Japan's exports after the US. Japan's imports from the EU reached 
6.9 trillion yen during the same period. The government in its 
economic and fiscal reform plan for 2007 mentioned that for Japan, 
concluding an EPA with the EU was a future challenge, similar to 
concluding an EPA with the US. 
 
Japan alarmed that it is falling behind South Korea in EPA 
negotiations with EU 
 
Analysis 
 
Yusuke Murayama 
 
Japan decided to launch a workshop, which is a premise for beginning 
talks on an EPA with the EU, out of strong concern that it may be 
put at a more disadvantageous position than South Korea in 
negotiations concerning that huge market for leading manufactured 
products, such as cars and home electric appliances. Agricultural 
associations, which fear an increase in imports of agricultural 
products, and those lawmakers associated with agricultural 
interests, are certain to strongly oppose concluding an EPA. Japan 
would need to clear high hurdles before concluding an EPA with the 
EU. 
 
The World Trade Organization (WTO) has seen its Doha round of 
multilateral trade talks, which aims to have 150 WTO member 
countries and regions reduce or lift tariffs in unison, have hard 
going, making it hopeless to reach agreement by the target date, the 
end of the year. On the other hand, countries are fervently putting 
their efforts into concluding bilateral agreements like an FTA or an 
EPA so as to widen their markets. 
 
In April, South Korea agreed to conclude a free trade agreement 
(FTA) with the US. In May, South Korea began negotiations with the 
EU, and both sides agreed to lift tariffs imposed at present on 95 
PERCENT  or more in terms of trade value or items. They are likely 
to cut a deal by the end of the year. 
 
Citing the fact that the EU has now imposed a 10 PERCENT  tariff on 
automobiles and a 14 PERCENT  on flat-screen televisions, "If the EU 
lifts tariffs now imposed on products imported from South Korea, 
there will be a serious impact on Japan," Nippon Keidanren said. On 
Aug. 27, METI Minister Amari, who this August reached a general 
agreement with ASEAN on an EPA, indicated that "it's better to 
conclude" an EPA with the EU as quickly as possible. 
 
Given the ruling Liberal Democratic Party's devastating defeat in 
single-seat constituencies, particularly in farm villages, in the 
July Upper House election, political pressure will be unavoidable in 
order to advance trade liberalization that will give pain to farm 
villages. Before starting EPA talks, the government seems likely to 
be sought to work out a set of measures to boost the competitiveness 
of Japanese agriculture. 
 
(13) Okinawa refuses to receive Henoko assessment outline from 
Defense Ministry 
 
TOKYO SHIMBUN (Page 3) (Abridged slightly) 
August 30, 2007 
 
The Defense Agency has begun taking steps toward building an 
 
TOKYO 00004046  017 OF 021 
 
 
alternative facility for Futenma Air Station in the Henoko district 
of Nago City, sending a notice specifying the outline of an 
environmental-impact assessment to the Okinawa prefectural 
government without having gained its prior consent. But Okinawa 
residents still do not have access to the assessment plan. Tensions 
are growing between the Defense Ministry and the Okinawa 
government. 
 
"The notice on the assessment plan came from the Naha Defense 
Facilities Administration Bureau (NDFAB) by registered mail. But the 
government cannot force us to set up a corner in the city office for 
the public to view it." The official of the Nago City office of US 
base affairs who made this comment was visibly angry with the 
government's roughshod approach to the planned environmental 
assessment. 
 
The government is pushing ahead with a plan to build a V-shaped pair 
of runways near Camp Schwab in the Henoko district. However, the 
Okinawa prefectural and Nago municipal governments are demanding 
that the replacement facility be constructed further offshore than 
the government plan out consideration for local residents. 
 
While the two sides were still wide apart, the Defense Ministry on 
August 7 sent notices on the environment assessment plan to the 
Okinawa prefectural government and other affected municipalities and 
issued procedures for public inspection on the 14th. 
 
In reclaiming a large body of public waters for a project, like the 
one at Camp Schwab, the government is required under the 
environmental impact assessment law to go through the necessary 
administrative formalities, such as sending a notice specifying the 
outline of an environmental impact assessment, before obtaining the 
governor's approval. 
 
A Defense Ministry source said: "The ministry will carry out the 
planned assessment because it has decided to conduct it without 
fail. The Defense Facilities Administration Agency has already made 
a decision." In other words, the ministry has already embarked on 
the project. 
 
The outline explains the government's plan to build two 1,600-meter 
runways in a V shape and reclaim some 160 hectares of public waters, 
including 10 hectares of waters around Camp Schwab. The notice also 
discusses spots to be reclaimed for work and methods of the planned 
environmental survey. 
 
In his regular press conference on August 17, Okinawa Governor 
Hirokazu Nakaima criticized the notice that had come from the 
government, saying: "This is a betrayal. To begin with, the 
government's way of doing things is absurd." 
 
In stark contrast to the infuriated Nakaima, an NDFAB official said 
calmly: 
 
"Tokyo and Washington are in agreement to relocate Futenma Air 
Station by 2014. In order to meet that deadline, we have to complete 
the assessment and file an application for reclamation by 2009. We 
have explained things to Okinawa over twenty times and waited until 
the last moment. The prefectural and concerned municipalities 
expressed their desire to postpone receiving the notice. But the 
assessment law requires us to send the outline, and under this law 
no one is allowed to refuse accepting such a notice. It is our 
 
TOKYO 00004046  018 OF 021 
 
 
understanding that proceeding for public inspection has completed." 
 
Environment Ministry unable to serve as mediator 
 
An official in charge at the Environment Ministry responsible for 
the assessment law noted: 
 
"I have not heard of a government agency sending a notice to another 
local government by registered mail. They must be strongly at odds. 
The environment minister is a member of the Alternate Facility 
Council, so he can state his views before the council. But it is 
governors that have the power to authorize reclamation projects for 
the use of the surface of public waters. Legally speaking, there 
will be no instances when the minister can state his views." 
 
An official of the Okinawa base reversion office complained: 
 
"An NDFAB official came here to hand deliver the outline. We tried 
to resist it, but he forced us to keep it here. The same thing came 
via parcel delivery service. We successfully refused this one. It's 
absurd that there exist two sets of government documents." 
 
Asked by a reporter if he might say "no" to a government request for 
the planned reclamation project, Nakaima said: "The envisioned 
environment survey will take two and a half years. Although I cannot 
say affirmatively about things in the future, I will say 'no' as a 
matter of course." 
 
As a result of the cabinet reshuffle, Masahiko Komura became defense 
minister on August 27. A Nago official said discouragingly: 
 
"The government will continue to pursue 'done deals' without holding 
thorough discussion. No matter who becomes defense minister, that 
won't change. Local residents used to play a central role in the 
anti-base movement. But experiencing such arrogance of the ministry, 
we have no other option but to fight with the central government in 
collaboration with the prefectural government." 
 
(14) Pension, Antiterrorism Law to be major issues at extra Diet 
session; Right of Diet member to investigate state affairs to become 
another tool for DPJ to attack government, ruling camp 
 
ASAHI (Page 2) (Full) 
August 30, 2007 
 
German Chancellor Angela Merkel sent a list of questions to 
Democratic Party of Japan (DPJ) President Ichiro Ozawa, with whom 
she will meet on Aug. 30. Her first question was about Ozawa's plan 
to grab the reins of government, followed by questions about his 
policy toward the US and China. Thought there was no question about 
the Antiterrorism Special Measures Law in the list of questions, 
Ozawa intends to express his opposition to an extension of that 
legislation. 
 
On August 8, US Ambassador to Japan Thomas Schieffer called on Ozawa 
at DPJ headquarters. The planned meeting with the German chancellor, 
following the one with the US ambassador, indicates that the DPJ's 
presence cannot be ignored internationally. 
 
Lower House member Akira Nagatsuma, a key lawmaker in the uncovering 
of pension record mismanagement by the Social Insurance Agency, has 
been interviewing at the Diet building those who have been hurt by 
 
TOKYO 00004046  019 OF 021 
 
 
the pension record-keeping fiasco. 
 
Nagatsuma expects that the DPJ can now exercise the right of a Diet 
member to investigate state affairs, which allows the party to 
request government offices to submit documents to the Upper House, 
where his party holds a majority. 
 
After the July 29 Upper House election, the DPJ called on the 
government under the name of the party's Policy Research Committee 
chairman to disclose examples of pension premium records that had 
been identified with the submission of pay slips. But the party has 
not received any reply from the government. If the DPJ is not 
satisfied with the government's reply, it will invoke its right. One 
of the executive said: "If we urge government offices to submit 
document that show how they waste public funds, we will be able to 
get new fiscal resources." 
 
The DPJ envisions that it will submit bills first to the Upper House 
and once passed, send them to the Lower House, where the opposition 
will have the ruling coalition take litmus tests as to whether to 
accept or vote down the bills. Therefore, the number of bills the 
opposition camp will submit to the Upper House will likely 
increase. 
 
Some in the ruling camp said that the ruling parties won't be able 
to oppose the bill to ban the use of pension premium payments for 
other purposes than pension benefits. A debate will be conducted 
between Nagatsuma and Health, Labor and Welfare Minister Yoichi 
Masuzoe, a key member of the new Abe cabinet. The DPJ along with the 
Social Democratic Party and the New People's Party have submitted a 
bill to freeze the postal-privatization program. The party will then 
re-submit the pension bill to the September extra Diet session, 
aiming at undermining the postal rebels who rejoined the LDP. It is 
also expected to submit other bills such as one to revise the 
Political Funds Control Law and one to revise the disabled persons' 
self-reliance support law. 
 
(15) Three cabinet ministers among CEFP members replaced: Is panel 
going to correct its growth policy? 
 
YOMIURI (Page 9) (Excerpts) 
August 30, 2007 
 
Three cabinet ministers among the members of the Council on Economic 
and Fiscal Policy (CEFP) were replaced as a result of the cabinet 
shuffle on Aug. 27. How will the addition to the panel of Chief 
Cabinet Secretary Yosano, who attaches importance to the 
recapitalization of public finance, Finance Minister Nukaga, a 
member of the commerce and industry policy clique in the Diet, and 
Internal Affairs and Communications Minister Masuda, who is calling 
for the revitalization of regional districting, change the trend of 
discussion in the panel? In particular, the point has been made that 
the panel could be pressed to correct its growth-focused policy that 
envisages the future, premised on a high economic growth rate. In 
the meantime, the main policy-making battlefield is expected to 
shift from the CEFP to talks between the ruling and opposition camps 
due to the opposition bloc's predominance in the Upper House. A new 
challenge for the panel is how to show its presence as the key 
player of structural reforms. 
 
Chief cabinet secretary with cautious outlook; State minister for 
economic and fiscal policy perplexed at his statement 
 
TOKYO 00004046  020 OF 021 
 
 
 
Meeting the press after a bilateral summit with the German 
chancellor, Prime Minister Abe yesterday evening once again stressed 
the importance of the government's growth strategy. He noted, 
"Innovation and an open stance are two important factors in order 
for Japan to achieve growth." Yosano basically shares the same view 
with the prime minister regarding the importance of economic 
growth. 
 
However, his pet policy theme is that public finance must be managed 
in a healthy manner, based on a cautious growth outlook, which makes 
a clear distinction from a growth policy, which aims at fiscal 
reconstruction financed from boosted tax revenues brought about by 
high economic growth, as advocated by State Minister for Economic 
and Fiscal Policy Ota. 
 
Regarding the government's fiscal recapitalization goal, Yosano on 
Aug. 27 told a press conference, "It is necessary to determine the 
goal, based on various premises (various growth rates)." This 
statement perplexed Ota. She noted in response, "I would like to 
check the real meaning of his statement." Gaps in the views of 
Yosano and Ota over the management of public finance could be 
highlighted at CEFP meetings. 
 
Finance Minister Nukaga in an interview yesterday noted, "It is 
important to reconstruct public finance, while sustaining economic 
growth." He is taking a neutral stance for the time being. What 
stance he will take in future discussion on spending cuts and reform 
of the tax system will be of interest. 
 
Local governments are placing high expectations on Internal Affairs 
Minister Masuda, who was an Iwate Prefectural governor until April. 
They hope that he will take the initiative in a drive to revitalize 
regional areas. However, in view of the fact that Masuda has also 
been known as a reformist, as can be seen in that he extensively 
slashed public works sponsored by the prefecture, he could serve as 
a bulwark against pressure for pork-barrel spending. 
 
Ota, whose plays a leading role in the CEFP, will likely find it 
difficult to manage panel discussion not only due to the changeover 
of members but also due to the trading of places between the ruling 
and opposition blocs in the Upper House. One government source said 
that now that the setting for policy coordination has shifted to 
talks between the ruling and opposition parties, the state minister 
for economic and fiscal policy would not be able to lead the 
management's policy management. 
 
As such, Ota intends to maintain her presence by shifting the role 
of the CEFP from being a policy-decision-making entity to an entity 
that presents policy options. She plans to present several options 
for the package reform of the tax system and social reform, 
including a high-contribution-and-high-benefit system and a 
medium-contribution-and-medium-benefit system 
 
She wants to take the initiative in policy debate, taking the stand 
that it would easier for the CEFP to obtain support from the public 
than talks between the ruling and opposition camps, because talks 
between the ruling and opposition camps are not open to the public, 
while the gist of the proceedings of CEFP meetings are released 
three days later. 
 
Chief Cabinet Secretary Yosano 
 
TOKYO 00004046  021 OF 021 
 
 
 
? "Both the prime minister's official residence (Kantei) and 
Kasumigaseki (government office district) are the government itself. 
There is no intrinsic confrontation between them." (at a press 
conference yesterday) 
 
? My policy is to reconstruct public finance with economic growth 
and reform of the tax revenue structure as two wheels of a cart. I 
believe Prime Minister Abe shares my view." (at a press conference 
on Aug. 28) 
 
? "People once said that I intended to become a policy man. However, 
as a matter of fact, the management of the Diet has occupied a large 
part of my political career. I understand that I was appointed chief 
cabinet secretary in order to make most of my experiences and 
knowledge accumulated throughout my career." (during a press 
conference held after the first cabinet meeting on Aug. 27) 
 
Finance Minister Nukaga 
 
? "Achieving a good balance between economic growth and fiscal 
reconstruction is extremely important. Fiscal reconstruction would 
be impossible without economic growth. It is important to 
reconstruct public finance, while sustaining economic growth. 
 
? "The basic stance of the CEFP is to set a macro-direction for the 
Japanese economy. Due to the trading of the places between the 
ruling and opposition parties, it would be in reality most important 
to purse discussion in the Diet. In my view, however, it would be 
possible for the CEFP to make appropriate proposals regarding 
ideals, guidelines and how to secure sustainability." (in an 
interview on Aug. 29) 
 
State Minister for Economic and Fiscal Policy Ota 
 
? "There will be no change in the way the CEFP is managed. It is a 
place for the prime minister to display leadership. The CEFP will 
hold talks neither with the ruling camp nor with opposition bloc. It 
is important for the panel to present policy options, while 
indicating drawbacks and advantages of each policy so as to help the 
public make decisions. The role of the CEFP, whose discussion is 
open to the public through minute books, will become even more 
important." 
 
? "We will discuss the tax system reform issue in cooperation with 
the government's Tax Research Commission. We will consider this 
issue and social security in a package. We want to provide in the 
fall a list of benefits the contributors receive in return for their 
premium payments." (in an interview on Aug. 28). 
 
DONOVAN