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UNCLAS SECTION 01 OF 12 TOKYO 004080 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Scandals hit Abe cabinet again: 
4) Agriculture Minister Endo resigns over money scandal 
5) Parliamentary Secretary Sakamoto resigns over money scandal 
6) Former farm minister Tamazawa resigns from LDP over money scandal 
 
7) LDP's Miyagi chapter calls for Prime Minister Abe to resign to 
take responsibility for cabinet scandals 
8) Decision to force Endo to quit was orchestrated by Yosano, Aso, 
with Prime Minister Abe out of the loop 
 
New farm minister: 
9) Appointment of former Environment Minister Wakabayashi as 
agriculture minister will be his second time at bat 
10) New farm minister will be tested at WTO negotiations and on US 
beef issue 
 
11) Maehara appointed deputy president in DPJ leadership reshuffle 
 
 
Anti-terror law extension: 
12) French, Australian foreign ministers in separate telephone calls 
to Foreign Minister Machimura press for extension of Anti-Terrorism 
Special Measures Law 
13) Defense Minister Komura: I will do anything to get the 
anti-terror law extended 
14) Komura says government is considering passing a new bill to 
replace current anti-terror law 
15) DPJ head Ozawa blasts concept of a new legislation to replace 
current anti-terror law 
 
North Korea problem: 
16) Japan-North Korea talks restart tomorrow in Ulan Bator, with 
focus on whether DPRK will be flexible on the issues 
17) US denies Pyongyang's announcement of US-DPRK agreement on 
taking North Korea off the terror-sponsor list 
18) Pyongyang's announcement that its name being taken off US 
terror-sponsor list may be tactic to shake up Tokyo prior to 
bilateral talks 
19) Japanese government to seek details about Pyongyang's claim that 
US has agreed to remove North Korea from list of 
terrorist-sponsoring states 
20) Government official incredulous about Pyongyang's announcement 
about name being removed from terror-sponsor list 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Akahata: 
New Agriculture Minister Endo quits over illegal receipt of 
subsidies 
 
Mainichi & Tokyo Shimbun: 
SIA survey: 342 million yen embezzled by SIA officials, local 
government officials 
 
 
TOKYO 00004080  002 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
Yomiuri: 
No suggestion to abolish any independent administrative agency comes 
from 11 ministries and agencies; Minister in Charge of 
Administrative Reform Watanabe to ask them to reconsider 
 
Nikkei: 
Mitsubishi Heavy Industries, Nippon Steel to integrate their 
bridge-building sectors 
 
Sankei: 
DPRK declares agreement reached on terror delisting; US denies 
claim 
 
2) EDITORIALS 
 
Asahi: 
(1) Resignations of cabinet ministers: Ruling, opposition camps need 
change in thinking 
(2) US-DPRK nuclear agreement: US should boil down contents of 
accord 
 
Mainichi: 
(1) Resignation of agriculture minister: Big blow to new Abe 
cabinet 
(2) UN disarmament talks: Give boost to nuclear disarmament 
 
Yomiuri: 
(1) Resignation of farm minister: Diet situation forced Endo's early 
resignation 
(2) US-DPRK working-level talks: Doubts about North Korea's 
implementation of agreement within the year 
 
Nikkei: 
(1) Abe administration has already stumbled 
(2) Can Yamagata University stand on its own under amakudari 
president? 
 
Sankei: 
(1) Dismissal of agriculture minister: Did Prime Minister Abe forget 
reason for crushing defeat in Upper House? 
(2) Lack of leadership: Shed light on bad teachers 
 
Tokyo Shimbun: 
(1) Resignation of agriculture minister: Prime Minister Abe needs to 
analyze the results of Upper House electoral defeat before 
implementing policy measures 
(2) Review of cram-free education: Don't worry about confusion at 
schools 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 3 
 
NIKKEI (Page 2) (Full) 
September 4, 2007 
 
09:01 
Met with Agriculture Minister Endo at Kantei, and afterwards, met 
with Parliamentary Secretary for Foreign Affairs Sakamoto. Later, 
met with Chief Cabinet Secretary Yosano. 
 
10:55 
 
TOKYO 00004080  003 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
Met with Yosano. 
 
11:10 
Met with former Environment Minister Wakabayashi. 
 
13:21 
Met with Minister of Internal Affairs and Communications Masuda. 
 
14:26 
Met with Foreign Minister Machimura and after him, met with 
Education Minister Ibuki. 
 
18:02 
Met with Chilean President Bachelet. Later, held a joint signing 
ceremony for a joint statement and a joint press briefing. 
 
19:17 
Hosted a dinner party. 
 
20:39 
Returned to Kantei residence. 
 
4) Farm minister Endo resigns, becoming fifth minister to be 
replaced in Abe cabinet; Wakabayashi to replace him 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
Evening, September 3, 2007 
 
Agriculture, Forestry and Fisheries Minister Takehiko Endo, 68, 
elected from the Lower House Yamagata No. 2 constituency, submitted 
this morning his letter of resignation to Prime Minister Shinzo Abe 
at the Kantei (Prime Minister's Official Residence) to take 
responsibility for subsidies illegally received by a farmers' mutual 
aid association headed by the minister. Abe accepted Endo's 
resignation, making him the fifth minister to be replaced in the Abe 
cabinet. Former Environment Minister Masatoshi Wakabayashi was named 
Endo's successor. In addition, Parliamentary Foreign Secretary 
Yukiko Sakamoto, 58, elected from the Upper House Shizuoka electoral 
district, also resigned form her post this morning to take 
responsibility for inappropriate political fund management of the 
local chapter of the Liberal Democratic Party in Shizuoka Prefecture 
she represents. A cabinet minister and a parliamentary secretary 
resigned over money scandals just a week after Prime Minister Abe 
reshuffled his cabinet following the ruling bloc's crushing defeat 
in the July Upper House lection. With the opposition bloc planning 
to pursue the prime minister's responsibility severely for 
appointing Endo and Sakamoto in the extraordinary Diet session 
scheduled to open on September 10, the Abe administration is likely 
to find itself under intense pressure. 
 
5) Endo apologizes to Abe 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
Evening, September 3, 2007 
 
Agriculture, Forestry and Fisheries Minister Takehiko Endo after 
submitting his resignation held a press conference at the ministry, 
in which he explained his decision to step down this way: "The 
agriculture minister, who is in charge of executing subsidies, must 
keep neutrality strictly. I have violated neutrality because a 
farmers' mutual aid association headed by me has received subsidies 
illegally. I have decided to submit my resignation before harming 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
public trust in agricultural administration." 
 
Endo also explained that in submitting his resignation to Prime 
Minister Abe, he said that he was truly sorry for failing to meet 
the prime minister's expectations and causing trouble for the next 
Diet session. In response, Abe encouraged Endo to keep up his 
efforts, while expressing his regret, according to Endo. 
 
6) Ruling camp nervous about politics and money scandals: Former 
Agriculture Minister Tamazawa decides to leave LDP over multiple 
declaration of expenditures totaling 2.55 million yen 
 
YOMIURI (Page 1) (Excerpts) 
September 4, 2007 
 
The government and the ruling parties now find it imperative to take 
strict measures on politics and money issues following the 
resignation of Agriculture Minister Takehiko Endo over illegal 
receipt of subsidies. Former Agriculture Minister Tokuichiro 
Tamazawa of the Liberal Democratic Party (LDP) yesterday announced 
his decision to leave the party to take responsibility for the 
branch of the Iwate Prefecture No. 4 Constituency, where he serves 
as head, having forged receipts. The party leadership appears to 
have urged him to leave the party voluntarily. 
 
Tamazawa's election branch office in its 2003 political funds 
payment report declared expenditures based on the same reports, by 
changing the date up to five times. The LDP leadership will shortly 
consult on the matter with the Party Discipline Committee and accept 
his departure from the party. 
 
Tamazawa on Sept. 3 held a press conference in the Diet and revealed 
that the multiple declarations of expenditures totaled 2,552,800 yen 
and offered an apology, saying, "My local secretary in charge of 
accounting forged receipts. I sincerely apologize for causing 
distrust among the public." He also noted that he would return the 
amount received based on the forged receipts to the state coffers. 
 
Regarding how he decided to leave the party, Tamazawa said, "I made 
the decision on my own without consulting with anybody." However, an 
LDP source revealed, "Falsifying receipts is an incorrigible act. 
The leadership has secretly urged Tamazawa to make a quick response 
and he decided to leave the party." 
 
7) LDP Miyagi branch submits to prefectural chapter letter calling 
on Prime Minister Abe to resign 
 
ASAHI (Page 31) (Full) 
September 4, 2007 
 
In the wake of a series of scandals involving former Agriculture, 
Forestry and Fisheries Minister Takehiko Endo and other cabinet 
ministers, the Liberal Democratic Party (LDP) Miyagi prefectural 
chapter's Furukawa branch office submitted yesterday to the 
prefectural chapter (chaired by Upper House member Ichiro Ichikawa) 
a letter calling for the resignation of Prime Minister Shinzo Abe. 
The letter wrote: "(Abe) exposed his lack of leadership in dealing 
with the scandals involving cabinet ministers. He should consider 
that the party was defeated in the Upper House election due to his 
strategy." Miyagi prefectural chapter deputy chairman Watanabe said: 
"It is difficult to relay the message (to the prime minister), but 
many party members feel the need for measures narrowing 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
socioeconomic disparities and promoting agriculture." 
 
8) Yosano, Aso pave way for farm minister Endo's resignation while 
leaving Abe outside loop 
 
ASAHI (Top play) (Excerpts) 
September 4, 2007 
 
It was Chief Cabinet Secretary Kaoru Yosano and Foreign Minister 
Taro Aso that made moves behind the scenes for the resignation of 
Agriculture, Forestry and Fisheries Minister Takehiko Endo just 
three days after the revelation that a farmers' mutual aid 
association headed by Endo had received subsidies illegally. It was 
also Yosano and Aso that successfully persuaded Endo to step down 
and conducted a screening of his successor for unethical activities. 
The two settled the new farm minister's scandal that threatened the 
crisis management capability of the just-shuffled Abe cabinet 
without bothering to soil the hands of Prime Minister Shinzo Abe. 
The changeover of the farm minister that kept Abe outside the loop 
has exposed a shift in quality of the administration, which is now 
effectively controlled by Yosano and Aso. 
 
After a comprehensive disaster drill on September 1, the day Endo's 
scandal first broke out, Abe discussed a cabinet response with 
Yosano on the phone. Abe was allegedly at a loss. 
 
After reshuffling this cabinet five days ago, Abe held a press 
conference, in which he explicitly said regarding cabinet ministers 
being involved in politics and money scandals: "They have taken up 
their posts in readiness to leave the cabinet in the event that they 
are unable to provide satisfactory explanations." 
 
But when a scandal actually broke out, Abe was slow to respond. In 
response to a question from a reporter, Abe simply said: "I have not 
been informed of any specifics about the matter. If questions are 
raised, (Mr. Endo) must offer an appropriate explanation." 
 
Around that time, Aso vented his frustration with Endo to his aide, 
saying, "This is his own problem." Appearing in an NHK talk show on 
the morning of September 2, Aso also said: "The question is whether 
his explanation can convince the public." Yosano, too, said in a 
TV-Asahi program: "(Whether we will defend (Mr. Endo) and whether we 
can defend him are two separate matters." Comments by both Aso and 
Yosano were apparently intended to pave the way for Endo's 
resignation. 
 
After the TV shows, Aso and Yosano had a lunch at a Tokyo hotel 
along with Liberal Democratic Party Diet Affairs Committee Chairman 
Tadamori Oshima. Over the lunch, they reached the conclusion that if 
Endo remained in his post, the ruling coalition would not be able to 
weather Upper House deliberations in the upcoming Diet session. The 
largest opposition Democratic Party of Japan on September 1 began 
considering presenting a censure motion against Endo to the Upper 
House, which is now controlled by the opposition. 
 
After the lunch, Yosano secretly visited another Tokyo hotel to see 
Endo. Yosano said to Endo: "Regardless of circumstances, you are 
under fire because of a matter involving subsidies from MAFF. You 
should give serious thought to that point." This was successful to 
change the mind of Endo, who had refused to step down on September 
¶1. Endo said to Yosano, "Please tell the prime minister that I will 
step down." 
 
TOKYO 00004080  006 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
 
Yosano's determination to put a speedy end to Endo's scandal came 
from strong alarm against the Kantei's (Prime Minister's Official 
Residence) poor crisis management ability exposed in dealing with a 
spate of gaffes and improprieties by former cabinet ministers that 
eventually led to the ruling bloc's crushing defeat in the July 
Upper House election. 
 
9) Masatoshi Wakabayashi appointed agriculture minister 
 
MAINICHI (Page 5) (Full) 
September 4, 2007 
 
Masatoshi Wakabayashi, 73, assumed the environment minister's post 
in the previous cabinet of Prime Minister Shinzo Abe inaugurated 
last September, was also named in August minister of agriculture, 
forestry and fisheries, as the replacement of Norihiko Akagi, when 
he quit his farm minister's post to take responsibility for a money 
scandal involving his political fund management offices. Wakabayashi 
was then again appointed agriculture minister this time because of 
his ability. 
 
Wakabayashi joined the agriculture, forestry and fisheries ministry 
in 1957. He was first elected to the House o Representatives in 
¶1983. Although he lost his Lower House seat in the 1996 election, he 
was elected to the House of Councillors in 1998. In his meeting in 
August in Beijing with Chinese Premier Wen Jiabao, he as environment 
minister confirmed with Wen that Japan and China would cooperate 
over the environment problem, which is a pending issue between the 
two countries. His ability will soon be tested in negotiations in 
the global trade talks under the World Trade Organization (WTO). 
Prime Minister Abe is his junior at Seikei Junior and Senior High 
Schools. 
 
10) New agriculture minister's bargaining power being watched with 
attention: Talks at WTO, US beef issue to come to head 
 
YOMIURI (Page 9) (Full) 
September 4, 2007 
 
The series of replacements of the agriculture minister in a short 
period of time has generated concern about a decline in Japan's 
bargaining power on such occasions as WTO talks, which will move on 
to a new chapter this month or later. Prime Minister Abe has 
appointed former environment minister and former agricultural 
bureaucrat Wakabayashi as a successor to Agriculture Minister Endo 
presumably because he thought it would be necessary to face 
difficult talks with a person versed in agricultural policy. 
 
The newly appointed agriculture minister will find himself in a 
difficult situation right after taking office. 
 
In particular, regarding market liberalization for agricultural 
goods, a fierce battle is expected to take place over key items that 
are exempt from general tariff cuts in general. 
 
Former Agriculture Minister Matsuoka, who worked energetically in 
order to bring a successful end to the WTO talks, killed himself in 
May. His successor Akagi was slated to exchange views with United 
States Trade Representative Susan Schwab on WTO talks in August. 
However, he stepped down over his political organization's 
accounting problem, causing a vacuum in negotiations with foreign 
 
TOKYO 00004080  007 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
countries. Regarding the issue of easing conditions for US beef 
imports, Japan-US talks will shortly move into full swing to reach a 
consensus. Japan intends to ease the cattle age criterion from the 
current 20 months or younger to below 30 months. However, the US is 
urging Japan to scrap the age criterion itself. The new agriculture 
minister is bound to face harsh talks. 
 
11) Maehara picked as DPJ vice president: Koshiishi appointed as 
deputy party head with importance given to Upper House 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
September 1, 2007 
 
The Democratic Party of Japan (DPJ or Minshuto) yesterday adopted a 
new party executive line-up at its plenary session of members of 
both chamber of houses. Former President Seiji Maehara, who is 
keeping himself at arms' length with President Ichiro Ozawa, was 
appointed vice president. Incumbent Vice President Katsuya Okada 
will stay in his post. The party will thus attach importance to a 
party unity. It has also set up a lineup that attaches importance to 
the Upper House, by having Azuma Koshiishi, Chairman of the JDP 
caucus in the House of Councillors, double as deputy president and 
appointing former secretary general of DPJ members in the House of 
Councillors as Policy Research Committee chair, the first 
appointment of an Upper House member for the post. 
 
 
Lower House member Kenji Yamaoka was picked as Diet Affairs 
Committee chair and former Vice President Hirotaka Akamatsu as 
Election Campaign Committee chair. Former Diet Affairs Committee 
Chair Yoshihiko Noda took office as Public Relations Committee 
chair. Deputy Policy Research Committee Chair Akira Nagatsuma, who 
has pursued the pension premium payment record-keeping error issue, 
remained in his post. 
 
Deputy party head Naoto Kan and Secretary General Yukio Hatoyama 
will stay in their posts. The collective leadership consisting of 
Ozawa, Koshiishi, Kan and Hatoyama will continue in effect. 
 
12) French, Australian foreign ministers express in telephone calls 
to Foreign Minister Machimura their expectations for Japan's 
extending the Anti- Terrorism Law 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 1, 2007 
 
Foreign Minister Nobutaka Machimura held a telephone conference with 
his Australian counterpart Alexander Downer on the afternoon of Aug. 
¶31. Machimura told Downer that the Japanese government would do its 
best to extend the Anti-Terrorism Special Measures Law, which 
expires on Nov. 1. Downer then expressed his hopes for an extension 
of the Antiterrorism Law, saying: "We have acknowledged the 
importance of Japan's activities and look forward to seeing the 
extension of the Law." 
 
Machimura later talked by phone with French Foreign and European 
Affairs Minister Bernard Kouchner and then with Indian External 
Affairs Minister Pranab Mukherjee. The French minister expressed his 
expectations for an extension of the law. He told Machimura: 
"Japan's Maritime Self-Defense Force's refueling operations in the 
Indian Ocean is absolutely necessary." 
 
 
TOKYO 00004080  008 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
13) Defense Minister Komura says, "I will do anything" to extend 
Antiterrorism Law 
 
MAINICHI (Page 5) (Full) 
September 4, 2007 
 
Defense Minister Masahiko Komura stated in a speech delivered 
yesterday in Tokyo on the issue of extending the Antiterrorism 
Special Measures Law: 
 
"Since Democratic Party of Japan (DPJ) President Ichiro Ozawa has 
opposed an extension of the law, we won't be able to extend it 
unless we obtain his understanding in some fashion. I am determined 
to do anything that can extend the law." 
 
Komura indicated in his remark that in order to get the DPJ's 
understanding, the ruling camp would hold consultations with the 
opposition, also with an eye on a revision of its ruling coalition's 
legislation. 
 
At a press conference yesterday, Administrative Vice Defense 
Minister Kohei Masuda revealed that his ministry would look for a 
submission in a positive manner a new bill that would enable the 
Maritime Self-Defense Force to continue its refueling activities in 
the Indian Ocean. In a Fukuoka City yesterday, DPJ Secretary General 
Yukio Hatoyama, however, expressed to reporters his doubts about the 
idea of formulating a new bill. 
 
14) Gov't mulls creating new law before antiterror law runs out: 
Komura 
 
MAINICHI (Page 3) (Full) 
September 3, 2007 
 
Defense Minister Masahiko Komura indicated yesterday that the 
government would consider introducing a legislative measure to 
establish a new law in order for Japan to continue its seaborne 
logistical support for the antiterror drive in Afghanistan. The 
Maritime Self-Defense Force has been staging its vessels in the 
Indian Ocean to refuel US and other foreign naval vessels under the 
Antiterrorism Special Measures Law. This law, which is due to expire 
Nov. 1, could lose its effect since the leading opposition 
Democratic Party of Japan (Minshuto) is opposed to extending the 
law. Komura suggested the need for the government to continue the 
MSDF's refueling activities beyond the antiterror law's expiry. "We 
will look for every possible way that is effective," Komura said. He 
was replying to a question from reporters in Tokyo. 
 
The newly planned law is expected to incorporate humanitarian 
assistance to a United Nations international security assistance 
force (ISAF) currently working in Afghanistan. This is intended to 
obtain the DPJ's cooperation. 
 
However, there are also negative arguments within the ruling parties 
as well about whether Japan will be able step into humanitarian 
assistance in Afghanistan. 
 
Komura, shortly after assuming his post, met the press and implied 
that the government could retouch the bill in compliance with the 
DPJ's demand so that the antiterror law will not lose its effect. 
 
The opposition parties are calling for the government to disclose 
 
TOKYO 00004080  009 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
information about the Self-Defense Forces' overseas activities. In 
this regard, Komura has also shown a flexible stance. "I will ask 
the countries concerned to provide intelligence including 
confidential information," Komura said, "and then I'd like to 
 
SIPDIS 
disclose that information." 
 
15) Ozawa hits LDP's new law advocacy over antiterror law 
 
TOKYO (Page 2) (Full) 
September 4, 2007 
 
Ichiro Ozawa, president of the leading opposition Democratic Party 
of Japan (Minshuto), criticized the government and ruling parties 
yesterday over the issue of extending the Antiterrorism Special 
Measures Law. There are now positive views from within the 
government and the Liberal Democratic Party about creating a new law 
incorporating the DPJ's standpoint. "I wonder if they really 
understand our standpoint," Ozawa said. He added, "They don't 
understand our standpoint at all, so I don't know what to say about 
their ignorance." 
 
"Japan is not allowed to participate in any activities other than 
peacekeeping activities that are clearly authorized by the United 
Nations," Ozawa said, "and that's our position." 
 
Ozawa was replying to questions from reporters in the town of 
Karuizawa, Nagano Prefecture, where the DPJ has been holding a 
workshop for its House of Representatives members. 
 
16) Japan, N. Korea to restart talks tomorrow 
 
TOKYO (Page 3) (Abridged) 
September 4, 2007 
 
Japan and North Korea will hold a second session of their six-party 
working group on diplomatic normalization on Sept. 5-6 in the 
Mongolian capital of Ulaanbaatar. Meanwhile, the United States and 
North Korea held a meeting of their normalization working group in 
Geneva on Sept. 1-2. Their bilateral talks have made progress to a 
certain extent, with North Korea having agreed to declare its 
nuclear programs and disabling its nuclear facilities within the 
year. Japan and North Korea have also held talks, in which North 
Korea has taken the position that the issue of Japanese nationals 
abducted to North Korea has already been settled. The focus of the 
talks between Japan and North Korea is whether Pyongyang will change 
its current standpoint over the abductions issue and will begin to 
show a flexible stance. 
 
"I hope that we will be able to remove our mutual distrust of each 
other through substantive talks and that we will be able to make 
progress in our bilateral relations," Yoshiki Mine, ambassador for 
negotiations with North Korea over diplomatic normalization, said in 
a press interview yesterday. Mine stressed the importance of 
specific action. 
 
On the abductions issue, Mine indicated that Japan would again call 
for North Korea to let Japanese abductees return home, unveil facts 
about the abductions issue, and hand over those who abducted the 
Japanese nationals. 
 
North Korea has also referred to Prime Minister Abe's remarks over 
"liquidation of the past" concerning Japan's colonial rule. With 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
this, Pyongyang is now showing a stance that can be taken as 
softening its attitude. 
 
Japan is therefore poised to talk about normalization issues, 
including "liquidating the past," so that the talks will not break 
down over the abductions issue like before. Tokyo would like to 
create an environment that can continue substantive talks. 
 
17) North Korea announces "the US and the DPRK agree to delist the 
North as a state sponsor of terrorism," but the US denies 
 
ASAHI (Page 1) (Excerpts) 
September 4, 2007 
 
Masahiko Takekoshi, Seoul 
 
The Korean Central News Agency (KCNA) reported that a North Korean 
press officer yesterday revealed that as the United States and North 
Korea in their working group session in Geneva on Sept. 1-2 agreed 
that the North's nuclear facilities would be disabled within the 
year, the US accepted "delisting North Korea as a state sponsor of 
terrorism" as well as "fully lifting the sanctions now imposed on 
the North in accordance with the Trading with the Enemy Act." The 
press officer did not mention when these two actions would occur. 
North Korea has until now called for delisting it as a state sponsor 
of terrorism and lifting the application of the Trading with the 
Enemy Act as a premise for it to disable its nuclear facilities and 
make a report on all of its nuclear programs. The announcement 
yesterday by the press officer is taken to mean that the North is 
trying to use what the US has promised as "reward" for nuclear 
abandonment as a fait accompli. The US has denied that such an 
agreement was reached. 
 
18) DPRK announces US will "delist" DPRK as state sponsor of 
terrorism, in an apparent attempt to shake Japan ahead of start of 
Japan-DPRK working group 
 
MAINICHI (Page 2) (Excerpts) 
September 4, 2007 
 
Shinichiro Hori, Beijing 
 
North Korea yesterday stated that the United States agreed to fully 
lift sanction measures now imposed on the North, such as listing it 
as a state sponsor of terrorism and applying the Trading with the 
Enemy Act to the North. Behind this announcement is apparently the 
North's intention to shake up Japan and the US ahead of the talks at 
the Japan-North Korea working group on diplomatic normalization 
under the six-party talks slated for Sept. 5-6 in Ulan Bator. 
 
In order to mend relations with the US, the North has insisted that 
the US should end its hostile policy toward the North. It also has 
called for a lifting of the hostile policy as a precondition for 
progress on the nuclear issue. 
 
However, if the US ends its hostile policy and delists the North as 
a state sponsor of terrorism, that would affect the abductions of 
Japanese nationals by North Korea and the issue of sending back to 
Japan hijackers of the JAL "Yodo-go" plane who now reside in the 
North (this hijack occurred in 1970). 
 
Tokyo has asked Washington not to delist the North as a state 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
sponsor of terrorism. The issue of whether to delist the North is 
likely to have a significant impact on the Japan-US alliance. In 
fact, during the Japan-US summit in April, Secretary of State Rice 
also joined the session and stated, "Resolving the abduction issue 
will not be made a condition for the US to delist the North Korea as 
a state sponsor of terrorism." Her remark created a stir. 
 
19) Japan to ask for a detailed explanation from the US 
 
ASAHI (Page 1) (Full) 
September 4, 2007 
 
The North Korean Foreign Ministry stated that the United States 
agreed to delist North Korea as a state sponsor of terrorism, but 
the Japanese government has taken a negative view with one senior 
Foreign Ministry official noting, "The US has stated that it would 
take into consideration progress on the abduction issue and that it 
will not delist it." However, it is true that calls for delisting 
the North as a state sponsor of terrorism are gaining momentum in 
the US. While asking for a detailed explanation from the US, Tokyo 
intends to ascertain in the upcoming session of the Japan-North 
Korea working group on diplomatic normalization slated for tomorrow 
how the North will respond to Japan. 
 
A senior Foreign Ministry official late yesterday strongly denied 
North Korea's announcement, saying, "It's a lie." Another senior 
official stressed: "I presume a premise for such things is that the 
US and North Korea and Japan and North Korea come to the stage of 
normalizing their diplomatic ties." 
 
20) Japanese government: "It's incredible" 
 
MAINICHI (Page 2) (Full) 
September 4, 2007 
 
Kahori Onaka, Yudai Nakazawa 
 
A North Korean diplomat yesterday declared that the United States 
and North Korea agreed in their talks at their working group under 
the six-party talks to delist the North as a state sponsor of 
terrorism. The Japanese government, however, views it with 
skepticism with one Foreign Ministry official saying, "It's hard to 
believe." But some take it as part of the North's attempt to 
forestall Japan ahead of the Japan-DPRK working group talks, which 
are to begin tomorrow in Ulan Bator, Mongolia. Tokyo intends to 
carefully scrutinize the information. 
 
US Assistant Secretary of State Christopher Hill already reported on 
the results of the (US-DPRK) talks to the Japanese Foreign 
Ministry's Asian and Oceanian Affairs Bureau Director-General 
Kenichiro Sasae. Foreign Minister Nobutaka Machimura yesterday told 
reporters, "We've been told by the US that the US will not sacrifice 
Japan for progress on US-DPRK relations," strongly denying the 
possibility that Japan-North Korea relations would be left behind as 
a result of the issue of delisting the North as a state sponsor of 
terrorism making progress. 
 
It seems certain, however, that the US-DPRK working group session 
saw a certain degree of progress on the issue of the North's nuclear 
abandonment. Meeting the press yesterday, Administrative Vice 
Foreign Minister Shotaro Yachi expressed hope that progress on 
US-DPRK relations would boost Japan-DPRK relations. 
 
TOKYO 00004080  012 OF 012 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//07 
 
 
The US and North Korea appear to have discussed the question of 
whether to send back hijackers of the JAL "Yodo-go" plane to Japan. 
Depending on developments of this issue, delisting the North as a 
state sponsor of terrorism is more likely to come. A senior Foreign 
Ministry official yesterday noted, "This is a psychological war." 
 
DONOVAN