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UNCLAS SECTION 01 OF 12 TOKYO 004400 
 
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 09/21/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
Prime Minister's daily schedule: Hospitalized 
 
3) Cabinet Office poll: 80 PERCENT  of public anxious about 
terrorist threat 
 
Antiterrorism Law: 
4) In interview, Deputy Secretary Negroponte expresses hope that 
Japan's refueling service in the Indian Ocean will continue 
5) Japan unable to persuade Russia to go along with the UNSC 
resolution praising the Indian Ocean effort 
6) DPJ President Ozawa sends list of questions to US Embassy on 
Afghan campaign, ignores UNSC resolution 
7) DPJ's Naoto Kan in news conference demands full disclosure from 
government of data on fuel supplied to multinational forces on 
Indian Ocean 
8) Vice defense minister again denies diversion of Japan-supplied 
fuel to the Iraq conflict 
9) Civic group Peace Depot gets hands on US Navy ship log that 
contradicts refueling data supplied by Japanese government 
10) Government continues to hope that Democratic Party of Japan 
(DPJ), as well as public opinion, will be swayed by UNSC resolution 
praising anti-terror effort 
11) Prime Minister Abe in summit meeting with President Bush 
directly asked for help on the MSDF mission as "my final job" 
12) New anti-terror bill will contain reference to the new UNSC 
resolution praising Japan's efforts 
13) Chief Cabinet Secretary Yosano sees re-voting on the new 
anti-terror bill in the Lower House as a routine procedure 
 
14) DPJ readies bill that would force ASDF troops to return from 
Iraq 
 
15) Foreign Minister Machimura to attend UN meetings 
 
Abe in hospital: 
16) Prime Minister Abe spends his 53rd birthday in a hospital bed 
17) As criticism mounts about Abe in hospital with no acting premier 
appointed, government repeatedly assures that there is no problem 
 
LDP presidential race: 
18) Fukuda maintains his commanding lead as the race winds down 
19) Fukuda takes cautious stand on Constitution, pledges to keep 
commitment to bring national finances into black by 2011 
20) Fukuda no longer talking about making only small changes to the 
cabinet 
21) When he was chief cabinet secretary, Fukuda took annual 
donations from a North-Korea-connected pachinko company 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Nikkei: 
Sharp, Pioneer to enter into business tie-up 
 
Mainichi: 
Novartis Pharma to exempt Ritalin from medicines for depression 
 
 
TOKYO 00004400  002 OF 012 
 
 
Yomiuri: 
Ruling coalition to freeze medical and social welfare policy leading 
to increase in public burdens 
 
Sankei: 
Corrupt SIA: Tolerant of bureaucrats with no punishment imposed on 
corrupt officials and retirement money given even to embezzler 
bureaucrats 
 
Tokyo Shimbun: 
Environment Ministry to work together with China and Taiwan to find 
out sources of air pollution 
 
Akahata: 
LDP presidential election symbolizes how the LDP is declining 
politically 
 
2) EDITORIALS 
 
Asahi: 
(1) UN resolution: Substantive debate instead of formalities 
(2) Economic policy: Plans to put the public at ease necessary 
 
Mainichi: 
(1) Refueling mission: Compete on antiterrorism measures 
(2) Can police regain the public's confidence? 
 
Yomiuri: 
(1) UN resolution: Strong expectations of MSDF continuing its 
refueling mission 
(2) Nuclear waste: Government should take the lead to look for site 
for disposal 
 
Nikkei: 
(1) UNSC resolution puts Ozawa's logic at disadvantage 
(2) We worry about New Komeito's lenient attitude toward fiscal 
reconstruction 
 
Sankei: 
(1) UN resolution can help Japan continue refueling mission 
(2) Punishment of superintendent general of MPD 
 
Tokyo Shimbun: 
(1) UN resolution a makeshift measure 
(2) Publication of boy's deposition: Don't seal off information 
 
Akahata: 
(1) UNSC resolution can't justify assistance 
 
3) Poll: Over 80 PERCENT  worried about terrorism 
 
SANKEI (Page 3) (Full) 
September 21, 2007 
 
Over 80 PERCENT  are concerned about foreign armed attacks or major 
terrorist attacks, the Sankei Shimbun found from a special public 
opinion survey released yesterday by the Cabinet Office. North 
Korea's missile launches and nuclear test last year have apparently 
affected national sentiment. 
 
The survey was conducted across the nation in August with 3,000 
persons aged 20 and over. The retrieval rate was 60.2 PERCENT . In 
 
TOKYO 00004400  003 OF 012 
 
 
the survey, respondents were asked if they were concerned about 
armed attacks, such as ballistic missiles and guerrilla commandos. 
In response to this question, "yes" totaled 80.2 PERCENT , broken 
down into "very much" at 34.0 PERCENT  and "somewhat" at 46.2 
PERCENT . 
 
Respondents were also asked about terrorist attacks targeting atomic 
power plants or using biochemical weapons. To this question, "yes" 
totaled 81.4 PERCENT , broken down into "very much" at 38.0 PERCENT 
and "somewhat" at 43.4 PERCENT . 
 
In 2004, the government created the so-called public protection law. 
This law stipulates measures for state, local, and other authorities 
to deal with armed attacks and terrorist attacks. However, a total 
of 70.2 PERCENT  answered that they knew "little" or "nothing" about 
the law. 
 
4) Negroponte expresses hope for Japan's continued refueling 
mission 
 
NIKKEI (Page 1) (Full) 
September 21, 2007 
 
Tetsuya Jitsu 
 
In an interview with the Nikkei on Sept. 19, Deputy Secretary of 
State Negroponte expressed his strong expectations for Japan's 
continued antiterrorism effort. He said: "Japan's refueling 
operation in the Indian Ocean based on the Antiterrorism Special 
Measures Law is a critically important contribution to the 
international community. We hope Japan will decide to continue the 
mission as soon as possible." On North Korea's nuclear development, 
he said: "It is important to move the six-party talks forward. I 
think that holding the talks is a good means to denuclearize the 
Korean Peninsula." He then stressed his willingness to make utmost 
efforts to make progress in the six-party talks. 
 
After serving as the first national intelligence director, 
Negroponte has managed the US government's Asia and Iraq policies 
under Secretary of State Rice. 
 
Negroponte emphasized in the interview that the maritime 
interdiction operation in the Indian Ocean and assistance for 
Afghanistan are activities supported not only by the US but also by 
the international community, remarking: "They are an international 
challenge." 
 
Asked about the possibility of delisting North Korea as a state 
sponsor of terrorism, Negroponte replied: "We pledged in February to 
start preparations for delisting, but we did not set any deadline. 
We are also monitoring progress on other issues." He thus indicated 
that the US would not delist North Korea while ignoring the issue of 
North Korea's past abductions of Japanese nationals. The deputy 
secretary, however, added: "We do not want to think that there is an 
 
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absolutely strict interrelationship between the two issues (progress 
on the abduction issue and delisting the North)." 
 
Some observers anticipate a delay in Japan's economic reform under a 
new administration in Japan. Negroponte expressed his expectation 
that the reform line promoted under the lead of the Koizumi 
administration will continue into the future, saying: "We strongly 
support a free and open market. I believe it will benefit other 
 
TOKYO 00004400  004 OF 012 
 
 
countries if Japan takes a similar policy stance." 
 
Regarding a proposal floated recently for Japan and the US to 
conclude a free trade agreement (FTA), the deputy secretary stated: 
"If the Japanese government proposes discussing the possibility, we 
will respond to it with pleasure." 
 
On the Iranian nuclear issue, Negroponte indicated his view that new 
investment by Japan in Iran is undesirable, saying: "I think that 
now is not a proper time for creating a new economic axis with 
Iran." 
 
5) UNSC adoption of resolution of appreciation for MSDF mission a 
favor for Japan; China, Russia unhappy with failure to produce 
unanimous vote 
 
MAINICHI (Page 2) (Abridged slightly) 
September 21, 2007 
 
Takayasu Ogura, New York 
 
The UN Security Council adopted on Sept. 19 a resolution to extend 
the activities of the International Security Assistance Force (ISAF) 
in Afghanistan. But the failure to adopt it by a unanimous vote has 
made some UNSC members unhappy. The UNSC adopted the resolution when 
the ISAF's deadline was still three weeks away by giving priority to 
the domestic circumstances of Japan and Germany. A UN diplomatic 
source indicated that the UNSC now owes the international community 
a favor. 
 
It was unusual for the consensus-oriented UNSC to fail to approve an 
unobjectionable resolution by a unanimous vote. Russian Ambassador 
to the UN Churkin complained after the adoption that the decision 
took a toll on the unity of the UNSC. 
 
The Chinese representative, who voted for the resolution, also 
warned, saying: "Every resolution should be adopted by a unanimous 
vote in principle. I hope this will not create precedence." 
 
Asked why the UNSC had to adopt the resolution so early, President 
Ripert of France explained that receiving requests from member 
countries that have deployed troops to Afghanistan, such as Japan 
and Germany, the body had had to make concessions. 
 
It was ironical that the resolution, which was supposed to confirm 
the solidarity among member countries against terrorism, has exposed 
discord due to circumstances in Japan and Germany. 
 
A UN diplomatic source took this view: "Diplomacy is about giving 
and taking. It is a fact that Japan now owes the UNSC a big favor." 
 
6) DPJ holds line; Ozawa sends inquiry to US Embassy, ignores UNSC 
resolution on appreciation for Japan's efforts 
 
SANKEI (Page 5) (Abridged) 
September 21, 2007 
 
Ichiro Ozawa, president of the leading opposition Democratic Party 
of Japan (Minshuto), has sent a letter to the US Embassy in Tokyo, 
requesting the US government to provide information about military 
operations conducted by US naval vessels refueled by the Maritime 
Self-Defense Force in the Indian Ocean, sources revealed yesterday. 
 
TOKYO 00004400  005 OF 012 
 
 
The United Nations Security Council has now adopted a resolution 
incorporating "appreciation" for Operation Enduring Freedom (OEF), 
including the MSDF's refueling activities in the Indian Ocean. 
Meanwhile, the DPJ has been standing firm against continuing the 
MSDF's refueling mission. The government and the ruling parties want 
the DPJ to soften its attitude in response to the UNSC resolution. 
However, Ozawa is now calling for the United States to disclose 
information. 
 
Ozawa sent the letter of inquiry last weekend after he met with US 
Ambassador to Japan Schieffer on Aug. 8. In that meeting, Schieffer 
sought Ozawa's understanding on continuing the MSDF's refueling 
mission. Schieffer then told Ozawa that the United States was ready 
to provide classified information. 
 
The letter, based on Ambassador Schieffer's statement, urges the US 
government to answer questions about how US naval vessels in the 
Indian Ocean from the US Navy's 5th Fleet and other fleets have been 
using the MSDF's fuel supplies. The letter requests answers to three 
different questions: 1) Afghanistan; 2) Iraq; and 3) other 
purposes. 
 
Ozawa has also called for the US government to clarify how it has 
disclosed information on its websites about the MSDF's refueling 
activities. 
 
The DPJ has raised questions about the MSDF's refueling activities, 
citing what the US Navy's 5th Fleet said on its website. "They're 
suspected of using the fuel for the Iraq war," a DPJ executive 
says. 
 
The Japanese government has denied that US naval vessels used the 
MSDF's fuel supplies for the Iraq war. The US 5th Fleet has already 
deleted its website's description. However, the DPJ is poised to 
pursue the government in the extraordinary Diet session. 
 
 
The DPJ has now directly requested the US Embassy to provide 
information. "I don't know if they will say that's a military secret 
and they will cover up the information," a DPJ executive said. "That 
is also intended to measure the United States' sincerity to our 
party," he added. 
 
7) DPJ calls for disclosure of the results of the MSDF's refueling 
mission 
 
NIKKEI (Page 2) (Full) 
September 21, 2007 
 
The main opposition Democratic Party of Japan's (DPJ) Deputy 
President Naoto Kan mentioned the Maritime Self-Defense Force's 
(MSDF) refueling mission in the Indian Ocean at a press briefing 
yesterday and called for disclosure of every aspect of the mission, 
telling reporters: "The government needs to reveal what results the 
mission has produced over the past six years and show the results to 
the public." Deputy President Azuma Koshiishi, too, indicated an 
intention to exercise the right to investigate state affairs to deal 
with this matter, noting: "(The government) has so far put an end to 
it by insisting, 'We can't adduce such information.' But we can now 
(exercise that right) in the Upper House." 
 
8) Vice defense minister denies diversion of oil provided by Japan 
 
TOKYO 00004400  006 OF 012 
 
 
for Iraq war 
 
NIHON KEIZAI (Page 2) (Full) 
September 21, 2007 
 
At a press briefing yesterday, Administrative Vice Defense Minister 
Kohei Masuda denied the rumor that oil provided by the Maritime 
Self-Defense Force (MFDF) to US vessels was converted for the Iraq 
war, arguing: "Diplomatically, we have exchanged notes with the 
countries that receive refueling services from the MSDF.  This 
matter has been also understood by personnel on the scene of the 
refuelings. There shouldn't be a problem." 
 
9) Civic group obtains US logbooks that say MSDF provided 800,000 
gallons of fuel -- four times the volume claimed by government -- to 
US naval vessels 
 
MAINICHI (Page 2) (Abridged slightly) 
September 21, 2007 
 
The civic group Peace Depot announced yesterday that it has obtained 
the logbooks of a US refueling ship indicating that it had received 
about 800,000 gallons of fuel from the Maritime Self-Defense Force 
under the Antiterrorism Special Measures Law. The amount is four 
times what was announced by the government. Representative Hiromichi 
Umebayashi said: "There is a huge gap. A large part of the fuel from 
Japan might have been used for the operation in Iraq in violation of 
the Antiterrorism Law." 
 
The government's explanation in the Diet in May 2003 was that the 
MSDF had provided about 200,000 gallons of fuel to a US supply 
vessel on February 25, 2003, shortly before the opening of the Iraq 
war. Peace Depot said that the logbooks belonged to a US refueling 
ship that had provided fuel to an aircraft carrier and that the 
group obtained them under the Information Disclosure Law. The 
logbooks said the US vessels had received 18,704 barrels (about 
786,000 gallons) of DFM (Diesel Fuel Marine) from the MSDF refueling 
ship Tokiwa. 
 
Under the Antiterrorism Law, the MSDF is allowed to provide fuel 
only to naval vessels engaged in the antiterrorism operation in the 
Indian Ocean. 
 
10) Government expects new UNSC antiterrorism resolution to 
influence public opinion, DPJ on MSDF refueling mission 
 
YOMIURI (Page 2) (Excerpts) 
September 21, 2007 
 
The UN Security Council (UNSC) adopted on Sept. 19, local time, a 
resolution expressing appreciation for the maritime intercept 
operations, in which the Maritime Self-Defense Force (MSDF) has 
participated on a refueling mission in the Indian Ocean. The 
government and the ruling camp look upon the resolution as a "trump 
card" to solicit more support from the public for the government's 
plan to extend the MSDF mission. They expect the adoption of the 
resolution will work to apply pressure on the Democratic Party of 
Japan (DPJ), with a government source remarking: "The majority view 
at home and abroad is that the Antiterrorism Special Measures Law, 
which authorizes the dispatch of MSDF vessels, should be extended." 
 
Chief Cabinet Secretary Yosano said in a press conference yesterday: 
 
TOKYO 00004400  007 OF 012 
 
 
"UNSC members have given high marks to the MSDF mission. Now we have 
no doubt that we have taken action in accordance with the wishes of 
the UN." He then renewed his call for the DPJ's understanding, 
saying: "DPJ President Ozawa advocated an UN-centered policy in a 
book he authored about 15 years ago. I wonder whether he is thinking 
of the lack of consistency." 
 
New Komeito Secretary General Kitagawa also made this comment 
yesterday: "We hope DPJ members will discuss the matter in earnest 
and also hold consultations with us (ruling party members)." 
 
DPJ Deputy President Kan, though, categorically said in a press 
briefing yesterday: "Our party's policy will not be directly 
affected (by the adoption of the resolution)," adding: "We should 
accept the UNSC's appreciation with an open mind. But this is a 
separate matter from the question of whether it is proper to extend 
the Antiterrorism Law or to enact a new law." 
 
11) Abe directly asked Bush for cooperation in Sept. 8 Japan-US 
summit as his "last mission" 
 
MAINICHI (Page 2) (Full) 
September 21, 2007 
 
Prime Minister Shinzo Abe directly asked President George W. Bush 
for US cooperation for an extension of the Maritime Self-Defense 
Force's refueling operations in the Indian Ocean. Abe's direct 
appeal was the Japanese government's trump card. 
 
A Japan-US summit took place on Sept. 8 on the sidelines of the 
Asia-Pacific Economic Cooperation forum, and the following 
conversation took place between Abe and Bush, according to a Foreign 
Ministry source: 
 
Abe: "If possible, I would like to see a UN resolution authorizing 
the MSDF operations." 
 
Bush: "I will order diplomatic authorities, including Secretary of 
State Rice and Foreign Minister Machimura, to make contacts at the 
United Nations." 
 
Starting in late August, the Foreign Ministry prepared a plan to 
have the United Nations adopt a resolution in late September 
mentioning the maritime interdiction operations. Foreign Minister 
Machimura and others then presented the Foreign Ministry plan to the 
Kantei (Prime Minister's Official Residence), and this led to Abe's 
direct appeal to Bush. 
 
At a press conference on the following day, Sept. 9, Abe indicated 
that his cabinet would resign en masse if he failed to continue the 
MSDF operations. The prime minister announced his intention to step 
down three days later. The UN Security Council has adopted a 
resolution including words of appreciation for the antiterrorism 
operation. Thus Abe's last mission bore fruit. 
 
12) New antiterrorism law to refer to UNSC resolution appreciating 
MSDF refueling mission 
 
YOMIURI (Page 4) (Full) 
September 21, 2007 
 
Following the UN Security Council's (UNSC) adoption of a resolution 
 
TOKYO 00004400  008 OF 012 
 
 
including a phrase expressing appreciation for the maritime 
intercept operations, which the Maritime Self-Defense Force (MSDF) 
has joined, the government decided yesterday to specify the new 
resolution in an antiterrorism bill it plans to submit in the 
current Diet session. 
 
To enable Japan to extend the MSDF refueling and water-supply 
mission in the Indian Ocean beyond the expiration of the 
Antiterrorism Special Measure Law on Nov. 1, the government plans to 
prepare new legislation. A government source said yesterday: "The 
new UNSC resolution refers to the need for continued international 
efforts, such as the maritime intercept operations, so we will 
specify this resolution in the bill." 
 
13) "Re-voting is not a special procedure" 
 
NIKKEI (Page 2) (Full) 
September 21, 2007 
 
At a press briefing yesterday, Chief Cabinet Secretary Kaoru Yosano 
spoke of re-voting in the Lower House if new legislation allowing 
the Maritime Self-Defense Force (MSDF) to continue the refueling 
mission in the Indian Ocean is rejected in the Upper House and he 
reiterated this way of thinking: "The provision on (re-voting) is 
not intended for an emergency. It is a common procedure. It is 
common to apply it." 
 
14) DPJ approves legislation for withdrawal of ASDF from Iraq 
 
SANKEI (Page 5) (Full) 
September 21, 2007 
 
At a session yesterday of its Foreign and Defense Department, the 
main opposition Democratic Party of Japan (DPJ) approved a bill for 
repealing the Iraq Special Measures Law in order to withdraw Air 
Self-Defense Force (ASDF) troops now deployed in Iraq for 
transportation services. The DPJ plans to introduce the bill to the 
current session of the Diet. The party's Deputy Defense Minister 
Tsuyoshi Yamaguchi noted, "The international view is that the Iraq 
 
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war is wrong." The DPJ intends to pass the bill in the Upper House, 
which the opposition bloc controls, and send it to the Lower House 
and pressure the ruling bloc to approve it. 
 
15) Foreign Minister Machimura to attend UN session 
 
SANKEI (Page 5) (Full) 
September 21, 2007 
 
Foreign Minister Nobutaka Machimura yesterday decided to attend a 
high-level session of the United Nations on Iraq and Afghanistan in 
New York. The session is to occur on Sept. 22-23. His itinerary is 
now under coordination for him to meet with UN Secretary General Ban 
Ki Moon and Afghan President Karzai. After voting by absentee ballot 
for the Liberal Democratic Party presidential election, he is to 
depart for New York on Sept. 22 and return home on Sept. 24. 
 
16) Prime Minister turns 53 today: Cabinet resignation en masse 
likely while Abe in hospital 
 
NIKKEI (Page 2) (Full) 
September 21, 2007 
 
 
TOKYO 00004400  009 OF 012 
 
 
Prime Minister Shinzo Abe turned 53 today. When he was hospitalized 
on Sept. 13, it was announced that he would stay in hospital for 
three to four days. However, his condition has not improved. There 
is no telling when he can be discharged. The view is spreading that 
the cabinet will resign en masse on Sept. 25 while the prime 
minister is still in the hospital. Cabinet decisions were yesterday 
made in the form of an official of the Prime Minister's Office 
obtaining a signature of each minister. This is quite a change from 
his birthday last year, which he spent mulling the lineup of his 
cabinet following his landslide victory in the LDP presidential 
election the preceding day. Chief Cabinet Secretary Kaoru Yosano 
told a news conference yesterday, "I think the right thing the prime 
minister should do, if he wants to continue as a politician, is to 
have an opportunity to explain the situation in his own words. I 
believe the prime minister thinks the same way." 
 
September 20 was Secretary General Aso's, who is now running in the 
LDP presidential race, birthday. He was happy to receive a flower 
bouquet from party staffers, noting, "I am glad you remembered my 
birthday." 
 
17) Government reiterates it does not need to appoint acting prime 
minister 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
September 21, 2007 
 
More than one week has passed since Prime Minister Shinzo Abe was 
admitted to a hospital in Tokyo on Sept. 13 after announcing his 
intention to step down the day before. The government has left many 
of Abe's responsibilities to Chief Cabinet Secretary Kaoru Yosano 
since the hospitalization, without appointing an acting prime 
minister. Although some have pointed to the crisis-management 
problem, such as a response to a major disaster, the government has 
reiterated that under existing rules, the present situation does not 
require the appointment of an acting prime minister. 
 
The Cabinet Law stipulates that in case the prime minister is 
prevented from carrying out his duties, or the prime minister's post 
is vacant, the minister of state designated by him in advance shall 
perform temporarily the prime minister's responsibilities. Masayoshi 
Ito, chief cabinet secretary in the Ohira government, and Mikio 
Aoki, chief cabinet secretary in the Obuchi cabinet, were appointed 
as acting prime ministers when prime ministers Ohira and Obuchi were 
hospitalized. 
 
Yosano, however, has repeatedly said since Abe entered the hospital 
that Abe's hospitalization does not meet the requirement for 
appointing an acting prime minister. 
 
The chief cabinet secretary cited the doctor's diagnosis that Abe 
needs to take rest but since he has no problem with making 
decisions, appointing an acting prime minister is not necessary. In 
fact, Yosano met twice in the hospital with Abe to receive 
directions from him regarding such issues as personnel changes. He 
obtained the prime minister's approvals. 
 
18) Fukuda continues to maintain lead in the LDP presidential race 
 
MAINICHI (Page 1) (Excerpt) 
September 21, 2007 
 
 
TOKYO 00004400  010 OF 012 
 
 
With the Liberal Democratic Party (LDP) presidential election about 
to take place on Sept. 23, the Mainichi Shimbun carried out news 
coverage of the situation at the final phase of the race. Former 
Chief Cabinet Secretary Yasuo Fukuda has firmed up approximately 70 
PERCENT  of the 387 LDP lawmakers' votes, and he and LDP Secretary 
General Taro Aso have split the 144 regional votes. Fukuda's 
position as the frontrunner has not changed. Aso has not been 
successful in capturing more votes from LDP lawmakers. 
 
19) Fukuda cautious about constitutional revision, determined to 
maintain goal of balancing budget by fiscal 2011 
 
MAINICHI (Page 1) (Full) 
September 21, 2007 
 
Former Chief Cabinet Secretary Yasuo Fukuda and Secretary General 
Taro Aso, both of whom are running in the Liberal Democratic Party's 
(LDP) presidential race, yesterday responded to separate interviews 
by the Mainichi Shimbun. Regarding the proposal to revise the 
Constitution in 2010 as incorporated in the party's manifesto for 
the Upper House election, Fukuda indicated a stance of making a 
decision in a cautious manner, based on the trading of places 
between the ruling and opposition camps in the Upper House. He 
noted, "The major premise is whether the situation permits moving on 
such an issue. It's possible that I would not be able to do so even 
if I wanted to." 
 
Concerning the inclusion of gratitude for the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean in the resolution 
adopted by the UN Security Council (UNSC), Fukuda said, 
"Expectations have been expressed. I would like to make it possible 
for the MSDF to continue its mission as planned." 
 
The New Komeito has called for putting off the government goal of 
bringing the primary balance of the central and local governments 
into the black by 2011. Fukuda responded, "It is only natural for 
the government to do its utmost to achieve the goal. I have no 
intention whatsoever of postponing the target year." 
 
To a question about a 1 PERCENT  hike in the consumption tax, which 
he has earlier mentioned, Aso said, "If a consumption tax hike puts 
a dent in the economy once again, the public would not want it." He 
thus indicated his perception that it would be premature to raise 
the consumption tax in the annual tax code revision for fiscal 
¶2008. 
 
20) Fukuda corrects remarks that he would replace only small number 
of cabinet ministers, stressing he will make decision after LDP 
presidential election 
 
SANKEI (Page 6) (Full) 
September 21, 2007 
 
Interviewed by Sankei Shimbun and other news companies last evening, 
former Chief Cabinet Secretary Yasuo Fukuda, who is now running in 
the Liberal Democratic Party (LDP) presidential election, indicated 
that he would consider the scale of a reshuffle of the cabinet 
ministers and whom he will appointment as cabinet ministers after 
seeing the result of the LDP presidential race. He stated: "I will 
think about it after seeing the result of the election. I may give 
political consideration in view of various aspects. 
 
 
TOKYO 00004400  011 OF 012 
 
 
Appearing on a NHK program last night, Fukuda said: "I will make a 
decision after considering the circumstances. Now is not the time to 
talk about the scale of a cabinet reshuffle. I think I will fairly 
busy for a day or two." 
 
Fukuda previously indicated that a large-scale reshuffle of the 
cabinet ministers would be difficult, saying: "Since the Diet is in 
session, the new cabinet ministers would have to take the floor 
immediately to answer questions by party representatives. So I won't 
be able to make big changes." 
 
In the ongoing presidential contest, Fukuda is backed by eight 
factions in the LDP, excluding the Aso faction, as well as the 
so-called "Koizumi children," who were elected for the first time to 
the Diet in the 2005 House of Representatives election. The factions 
of Koga, Yamasaki, and Tanigaki, which were regarded as 
non-mainstream or anti-mainstream factions, are looking forward to 
landing key posts. 
 
Fukuda has now stressed that he will decide after the presidential 
race on the scale of a reshuffle of the cabinet ministers, 
correcting his earlier remarks that only a small number of the 
cabinet ministers would be replaced. He appears to be aiming to have 
his faction members steel themselves by brandishing the threat of 
carrying out reward-oriented appointments. 
 
Regarding the New Komeito's view that the government's plan of 
achieving a primary balance surplus in fiscal revenue and 
expenditure in fiscal 2001 is too late, Fukuda stated: "It is only 
natural to make an utmost effort to achieve that goal. I will exert 
every possible effort so as not to (have it delayed)." 
 
21) LDP branch headed by Former Chief Cabinet Secretary Fukuda 
receives donation from company chaired by person with North Korean 
nationality 
 
YOMIURI (Page 39) (Full) 
September 21, 2007 
 
It was learned from the political fund report of the Liberal 
Democratic Party's (LDP) branch in Gunma Constituency No. 4, headed 
by former Chief Cabinet Secretary Yasuo Fukuda (elected from the 
same constituency) that the branch received donations totaling 
200,000 yen in 1996 and 2003 from a pachinko parlor company in 
Takasaki City, Gunma. The company is wholly owned by the chairman 
with North Korean nationality and his relatives with South Korean 
nationality. The chairman served as advisor to the Gunma chamber of 
commerce and industry connected with the General Association of 
Korean Residents in Japan, or Chongryon until he died in 2005. The 
donation in 2003 was made right after North Korea admitted to 
abducting Japanese nationals during Prime Minister Koizumi's (at the 
time) visit to Pyongyang. Fukuda served as chief cabinet secretary 
during the Koizumi administration. 
 
The Political Funds Control Law bans in principle politicians from 
receiving donations from foreigners and companies whose majority of 
stocks are owned by foreigners. A person in charge at Fukuda's 
office explained, "We did not check the nationality of the donor, as 
we thought it rude to ask his nationality. We will check whether 
there were similar cases. If there are, we would like to return 
them." Offenders against the law are subject to such penalties as 
imprisonment. However, in this case the statute of limitations (3 
 
TOKYO 00004400  012 OF 012 
 
 
years) has run out. 
 
According to the branch fund report, it received a donation worth 
100,000 yen on Nov. 5, 2003 four days before the Lower House 
election day. It again received 100,000 yen in 1996, the year a 
general election took place. The company replied that it was not 
possible to confirm whether it made those donations. 
 
It was found that in 2001, when the Upper House election took place, 
the chairman donated 100,000 yen to the election campaign 
headquarters of Giichi Tsunoda, an Upper House member of the 
Democratic Party of Japan (DPJ or Minshuto) at the time. The 
donation was not entered into Tsunoda's political fund report. 
 
SCHIEFFER