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UNCLAS SECTION 01 OF 14 TOKYO 004446 
 
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 09/26/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Fukuda Cabinet launched: 
4) Prime Minister Fukuda likely to visit Washington in November 
5) President Bush praises Fukuda for attaching importance to 
US-Japan relations 
6) Fukuda picks cabinet but 13 members stay in place and two shift 
seats 
7) Fukuda policy imprint missing from cabinet choices 
8) Profiles of Defense Minister Ishiba, Foreign Minister Komura, and 
Chief Cabinet Secretary Machimura 
9) Fukuda predecessor Abe was only in office as prime minister 366 
days 
10) Fukuda will give policy speech in the Diet on Oct. 1 
11) Fukuda: Diet may be dissolved after the budget is compiled 
12) Fukuda cabinet called the "Abe hand-me-down cabinet" by the 
opposition camp 
13) Fukuda cabinet already being derided by pundits with nicknames 
like "monochrome cabinet," and "between-the-acts cabinet" 
 
Issues for the new Fukuda administration: 
14) Dilemma over whether to extend the Diet session to pass the new 
anti-terror bill allowing continuing Indian Ocean refueling services 
or to let the measure slip 
15) Prime Minister Fukuda proposes comprehensive talks with the 
opposition camp on removing obstacles to passage of key legislation 
 
16) Fukuda wants talks with the opposition camp over the new bill to 
continue MSDF refueling services in the Indian Ocean 
17) Fukuda reviving cooperation between the Kantei (official 
residence) and the ruling parties 
 
Democratic Party of Japan (DPJ) in action: 
18) Ozawa elected "prime minister" in the DPJ-controlled Upper House 
 
19) Ozawa against any extension of the Diet 
20) DPJ momentum building toward goal of changing places with the 
LDP as the ruling party 
 
21) US House in new bill on North Korea stipulate that the country 
would not be removed from terror-states list unless abduction issue 
resolved 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Nikkei, Sankei & Tokyo Shimbun: 
Fukuda cabinet launched, with 15 members of Abe cabinet retained to 
reduce impact on Diet business 
 
2) EDITORIALS 
 
Asahi: 
(1) Fukuda cabinet should call snap election in January 
 
Mainichi: 
(1) Prime Minister Fukuda urged to show strong resolve to halt 
 
TOKYO 00004446  002 OF 014 
 
 
political drift 
 
Yomiuri: 
(1) Fukuda administration needs to overcome difficult situation to 
implement policies 
 
Nikkei: 
(1) Fukuda cabinet, positive about cooperation with opposition camp, 
launched 
 
Sankei: 
(1) New Fukuda cabinet should remove "inward-looking competition," 
implement reforms and international duties 
 
Tokyo Shimbun: 
(1) Fukuda cabinet makes a thrilling start 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 25 
 
NIKKEI (Page 2) (Full) 
September 26, 2007 
 
Sept. 25 Shinzo Abe 
 
09:00 
Attended a cabinet meeting at Kantei. 
 
09:21 
Met with Special Advisor Nakayama, and later met with Deputy Chief 
Cabinet Secretaries Ono and Iwaki. Afterwards, Met with Deputy Chief 
Cabinet Secretary Matoba and then Chief Cabinet Secretary Yosano. 
 
10:00 
Received a good send-off from the staff at Kantei and a bunch of 
flowers. 
 
10:05 
Arrived at ANA Intercontinental Hotel. 
 
13:02 
Attended a Lower House plenary session. 
 
13:48 
Arrived at Keio University Hospital. 
 
 Yasuo Fukuda 
 
17:32 
Attended a Lower House plenary session. 
 
17:35 
Elected as 91st prime minister. Visited key lawmakers in Diet. 
 
18:31 
Met with new Chief Cabinet Secretary Machimura at Kantei. 
 
19:01 
Met with New Komeito Representative Ota, joined by Secretary General 
Ibuki and New Komeito Secretary General Kitagawa. Afterwards, 
established a cabinet formation office with six party officers, 
 
TOKYO 00004446  003 OF 014 
 
 
including Ibuki and Upper House Caucus Chairman Otsuji, and Ota and 
Kitagawa. 
 
19:25 
Called new cabinet members and prime ministerial special advisors to 
Kantei. Ibuki and Ota remained. 
 
21:46 
Held a press conference. 
 
22:41 
Met with new Deputy Chief Cabinet Secretary Futahashi. 
Sept. 26 
 
0:00 
Arrived at his private residence at Nozawa. 
 
4) Fukuda plans to visit US in Nov. 
 
MAINICHI (Page 5) (Abridged) 
September 26, 2007 
 
Prime Minister Yasuo Fukuda began coordination today for foreign 
trips. Fukuda would like to visit the United States in November to 
convey his view that the government will introduce a legislative 
measure to the Diet during the current session to replace the 
Antiterrorism Special Measures Law, which is to expire Nov. 1, and 
that Japan would resume the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean even though Japan may have to suspend 
the MSDF's refueling activities for a while. Fukuda will also 
coordinate his schedule to visit China within the year at China's 
invitation. Fukuda has indicated that he would take a 
dialogue-oriented policy toward North Korea. All eyes will be on how 
Fukuda will break the deadlock in a six-party working group over 
diplomatic normalization between Japan and North Korea. 
 
Japan-US relations 
 
On the issue of extending the antiterror law, the government is 
planning to present a new legislation in late October. The Diet will 
close its current session on Nov. 10, so it would be difficult to 
pass the legislation during the current Diet session. However, 
Fukuda has indicated that Japan could obtain the international 
community's understanding if Japan resumes its refueling mission. 
 
The Diet is also expected to extend its current session. However, 
Fukuda, with an eye on the Diet schedule, would like to visit the 
United States at an early date to explain his plan to Bush. 
 
Japan-China relations 
 
The question is whether Fukuda can make an appeal on his own Asia 
diplomacy. This is a key for him to boost his government. The 
Association of Southeast Asian Nations (ASEAN) countries will hold a 
meeting with Japan, China, and South Korea and an East Asia summit 
in Singapore on Nov. 20-21. Fukuda is expected to make his debut 
there for multilateral diplomacy. 
 
Fukuda is expected to meet with Chinese Prime Minister Wen Jiabao 
during the East Asia summit. His predecessor, Abe, set forth 
values-oriented diplomacy for trilateral cooperation between Japan, 
the United States, and Australia, and this alerted Beijing. Fukuda 
 
TOKYO 00004446  004 OF 014 
 
 
is expected to schedule his China visit for December. 
 
Japan-North Korea relations 
 
The six-party talks over North Korea's nuclear programs will be held 
in Beijing from tomorrow. Other six-party members welcome Fukuda's 
dialogue-oriented stance. North Korea is also believed to have 
expectations. Japan and North Korea held a working group meeting 
over diplomatic normalization in Mongolia on Sept. 5-6 and then 
agreed to hold frequent meetings. Japan and North Korea are also 
likely to hold informal meetings. 
 
Meanwhile, the United States reportedly may remove North Korea from 
its terrorist list before waiting for an all-out settlement of the 
pending issue of Japanese nationals abducted to North Korea. There 
are growing concerns about the abduction issue for it may be left 
behind. Fukuda will be pressed to steer Japan's diplomacy in the 
difficult situation. 
 
5) Bush appreciates Fukuda for attaching importance to US 
 
ASAHI (Page 3) (Full) 
September 26, 2007 
 
NEW YORK-Former Prime Minister Yoshiro Mori stood chatting with US 
President Bush at the headquarters of the United Nations on the 
evening of Sept. 24, or on the morning of Sept. 25 Japan time. 
According to Mori, Bush showed his view of Yasuo Fukuda, president 
of the ruling Liberal Democratic Party, who will now become Japan's 
new prime minister. "I understand that he's Japan's representative 
politician who is attaching great importance to relations with the 
United States," Mori quoted Bush as saying. "I want you to tell him 
that I appreciate his going through such difficulty in the Diet," 
Bush was quoted as saying, with Japan's refueling mission in the 
Indian Ocean in mind. Bush also said he would call Fukuda as soon as 
he officially becomes prime minister, according to Mori. 
 
Bush was also concerned about the condition of Prime Minister Abe's 
illness and asked Mori to thank Abe for his cooperation on bilateral 
and international matters. 
 
6) Fukuda cabinet launched, retaining 13 members of Abe cabinet, 
awarding different cabinet posts to two 
 
MAINICHI (Top Play) (Excerpts) 
September 26, 2007 
 
Liberal Democratic party President Yasuo Fukuda was elected the 
nation's 91st prime minister at the Diet last evening. After 
finishing picking cabinet members, he launched his cabinet later 
that day. The Fukuda cabinet will be officially inaugurated with an 
attestation ceremony at the Imperial Palace today. Because it is 
less than one month after the former Prime Minister Shinzo Abe 
reshuffled his cabinet and also because the Diet is now in session, 
Fukuda retained 15 of the 17 members of the Abe cabinet, playing up 
that he formed a makeshift cabinet. The new prime minister appointed 
Foreign Minister Nobutaka Machimura as chief cabinet secretary. As 
his successor, Defense Minister Masahiko Komura was picked, and the 
post of defense minister was awarded to former Defense Agency 
Director General Shigeru Ishiba. He thus gave priority to experience 
in forming his cabinet, in preparation for facing Diet debate on 
such thorny issues as an extension of the Antiterrorism Special 
 
TOKYO 00004446  005 OF 014 
 
 
Measures Law. Under a situation in which the opposition camp has 
control in the House of Councillors, the Fukuda administration will 
inevitably be under tense pressure in managing Diet business 
 
Prime Minister Fukuda said in a press conference last night: "If 
many of the members (of the cabinet led by former Prime Minister 
Abe) are replaced in the ongoing Diet session, confusion might 
result. That is why I minimized changes." 
 
Only two - Education, Culture, Sports, Science and Technology 
Minister Kisaburo Tokai as successor to Liberal Democratic Party 
Secretary General Bunmei Ibuki and Defense Minister Ishiba - are new 
 
SIPDIS 
members. Former Chief Cabinet Secretary Kaoru Yosano and Ibuki alone 
left the cabinet. Behind such appointments was the fact that there 
was little time for background checks of new cabinet candidates to 
make sure there were no hidden money scandals. 
 
There was a case in which the cabinet led by Yoshiro Mori, which was 
launched in April 2000 after (then) Prime Minister Keizo Obuchi was 
suddenly taken ill, retained all the members of the Obuchi cabinet. 
 
7) Can the Kantei fulfill its leadership function? Prime Minister 
Fukuda fails to show political identity in appointments 
 
MAINICHI (Page 11) (Full) 
September 26, 2007 
 
New Prime Minister Yasuo Fukuda appointed former deputy chief 
cabinet secretary Masahiro Futahashi, a bureaucrat, again as deputy 
chief cabinet secretary, one of the Prime Minister's Official 
Residence (Kantei) staff members. Fukuda showed his own political 
identity in picking Futahashi alone. Because he retained two other 
deputy chief cabinet secretaries -- Matsushige Ono, a Lower House 
member, and Mitsuhide Iwaki, a Upper House member -- in their posts. 
He also kept Kyoko Nakayama, special advisor to the prime minister 
on the abduction issue, and Eriko Yamatani, special advisor to the 
prime minister on education, in their respective posts. 
 
It was not clear yesterday how the new prime minister would position 
the leadership of Kantei, which is regarded as one of the strong 
points of the Abe administration. 
 
Former Prime Minister Shinzo Abe essentially sacked Futahashi at the 
time when he inaugurated his cabinet last September because 
Futahashi opposed the government's trinity reform that would reform 
the taxation and fiscal relations between the central and local 
governments. Abe then named Junzo Matoba, who worked a long time at 
the private sector, deputy chief cabinet secretary. He also created 
five special advisor posts, which was reduced to two in August when 
Abe reshuffled his cabinet. By doing so, Abe set up the so-called 
Team Abe. However since he launched the Abe Team without making 
clear the role-sharing with the bureaucracy, the Kantei's messages 
did not sit well with the government offices. As a result, the 
Kantei ceased to function at the second half of the Abe 
administration. 
 
Therefore, Fukuda reportedly placed emphasis on repairing relations 
the Kantei and bureaucracy in consideration of the present situation 
of the House of Councillors, which is now controlled by the 
opposition camp. A person close to Fukuda said that Fukuda planned 
to appoint Futahashi from early on. Chief Cabinet Secretary Nobutaka 
Machimura indicated that the only one replacement of the Kantei 
 
TOKYO 00004446  006 OF 014 
 
 
staffers was a result of Fukuda's consideration to Abe. 
 
8) Profiles of Fukuda cabinet ministers 
 
MAINICHI (Page 11) (Full) 
September 26, 2007 
 
Defense Minister Shigeru Ishiba, national defense advocate 
 
Shigeru Ishiba, 50, who served as director general of the Defense 
Agency in the Koizumi government, is well versed in defense policy 
and one of the national defense advocates. He is known for his 
unique speaking style. He has taken clear positions, for example his 
opposition to prime ministerial visits to Yasukuni Shrine. His 
father Jiro served as administrative vice construction minister, as 
well as governor of Tottori Prefecture. Shigeru Ishiba worked at 
Mitsui Bank (currently Mitsui Sumitomo Bank) after graduating Keio 
University. In 1986 he was elected to the House of Representatives 
as the youngest lawmaker at the time. He has been elected seven 
times in a row. He left the Liberal Democratic Party (LDP) to form 
the Reform Group (kaikaku no kai). He joined the New Frontier Party 
in 1994 but he returned to the LDP in 1997. He also served as 
chairman of the group of Japanese lawmakers addressing North Korea's 
abductions of Japanese nationals. He belongs to the Tsushima 
faction. 
 
Foreign Minister Masahiko Komura, veteran politician, serves again 
in the post 
 
Masahiko Komura, 65, assumed the defense minister post in the 
reshuffled Abe cabinet. Following service as foreign minister in the 
Obuchi cabinet, he is serving again as foreign minister. He assumed 
a cabinet post for the first time in the Murayama cabinet as 
director general of the Economic Planning Agency. He also served as 
justice minister in the Mori cabinet. He became one of the new LDP 
leaders. He ran in the 2003 LDP presidential election, in which then 
Prime Minister Junichiro Koizumi was reelected. He showed his 
political presence in the election, winning 54 votes, which exceeded 
the number of lawmakers who belonged to the faction he headed. 
 
Although he was cautious about the Koizumi policy line, including 
postal privatization, he supported the inauguration of the Abe 
government. His father Sakahiko was mayor of Tokuyama City, 
Yamaguchi Prefecture and a Lower House member. He heads the Komura 
faction. 
 
Chief Cabinet Secretary Nobutaka Machimura takes hard-line stance on 
Asia policy 
 
Nobutaka Machimura, 62, once expressed his eagerness for running the 
race to succeed Abe, but he gave it up as Yasuo Fukuda, a member of 
his faction, decided to run for the presidency. It is extremely 
unusual for a faction head to serve as chief cabinet secretary. 
 
He served as foreign minister for about one year in the Koizumi 
government and one month in the reshuffled Abe cabinet. He has 
advocated cutting the government's official development assistance 
(ODA) to China. He also pushed for economic sanctions against North 
Korea. Therefore, he is regarded as a hard-liner regarding Asia 
diplomacy. Cooperation with Fukuda, who takes a flexible policy of 
placing importance on Asia, will be tested. He enjoys listening to 
music and watching ballet and theatrical performances. He heads the 
 
TOKYO 00004446  007 OF 014 
 
 
Machimura faction. 
 
9) Former Prime Minister Abe's tenure will be 366 days 
 
ASAHI (Page 31) (Full) 
September 26, 2007 
 
With the formation of the Fukuda cabinet sliding into the night of 
Sept. 25, it has been set to carry out his swearing-in-ceremony and 
an Imperial attestation ceremony for his cabinet ministers on the 
morning of the 26th at the Imperial Palace. Following the 
arrangement, the Abe cabinet, which resigned en masse yesterday, 
will be in charge of emergencies, such as a natural disaster and a 
major accident, if happens, as a duty performance cabinet until the 
swearing-in-ceremony is over. Prime Minister Abe's tenure will be 
366 days -- one day longer than expected. 
 
10) Prime minister to make policy speech on Oct. 1 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 26, 2007 
 
The government and the ruling parties yesterday set the date for 
Prime Minister Yasuo Fukuda to deliver a policy speech during a 
plenary session of both Diet chambers for Oct. 1. They will shortly 
submit the plan to the opposition parties. 
 
They want to speed up coordination with the opposition with the 
possibility of holding party representative questions in response to 
the prime minister's policy speech during plenary sessions of both 
Diet chambers on Oct. 3-5 and holding a meeting of the Lower House 
Budget Committee from the 9th. 
 
The government and the ruling camp are now looking into new 
legislation for the continuation of Maritime Self-Defense Force's 
refueling operation in the Indian Ocean. Deliberations on the bill 
will likely take place in the third week of October at the 
earliest. 
 
11) Prime minister: Snap election should come after passage of 
FY2008 budget bill 
 
YOMIURI (Page 1) (Full) 
September 26, 2007 
 
In a press conference at the Prime Minister's Official Residence 
last night, newly elected Prime Minister Fukuda indicated that he 
would explore an appropriate timing for dissolving the House of 
Representatives for a snap election, based on the view that the 
dissolution should come after the passage of the FY2008 budget bill 
is certain. He said: "We must pour our energy first into managing 
the current Diet session without a hitch. We should proceed with 
matters so that people's daily lives will not be adversely 
affected." 
 
Fukuda spoke of the lineup of his cabinet: "If many of the cabinet 
(led by former Prime Minister Shinzo Abe) had been replaced, it 
could result in confusion. I judged that the changes should be 
minimized." He thus revealed that his desire to prevent more 
politics-and-money scandals from cropping out as a result of 
increasing new cabinet members was reflected in forming his cabinet. 
 
 
TOKYO 00004446  008 OF 014 
 
 
 
12) Opposition bloc reinforcing its confrontational stand, calling 
new cabinet as "hand-me-down cabinet from Abe" 
 
MAINICHI (Page 5) (Full) 
September 26, 2007 
 
Takashi Sudo 
 
With the establishment of a new Fukuda cabinet, the Diet will resume 
its activities. The main opposition Democratic Party of Japan (DPJ) 
and other opposition parties intend to put pressure on the 
government and the ruling parties by submitting three bills to the 
Upper House: one revising the Political Funds Control Law to 
obligate lawmakers to attach receipts to their every expense 
exceeding one yen, another repealing the Iraq Special Measures Law, 
and a third providing income compensation to every farmer. The 
opposition camp is likely to ratchet up its confrontational stand 
against the ruling bloc and to refuse to respond to "discussions" 
proposed by Prime Minister Yasuo Fukuda, citing as the reason that 
the "ruling Liberal Democratic party (LDP) has gone on the 
defensive" as most of the members of the former Abe cabinet have 
stayed on in the new cabinet, according to a senior DPJ lawmaker. 
 
DPJ Secretary General Yukio Hatoyama criticized the new cabinet: "It 
is questionable whether the new cabinet, which retains most members 
of the former Abe cabinet, can make a difference from Abe's way of 
doing politics?" 
 
Prime Minister Fukuda has made an appeal to the opposition parties 
on the need for talks on reform of the pension system, etc., but he 
kept in place such key cabinet members as the minister of internal 
affairs and communications, finance minister, and health minister. 
Despite this, Fukuda stresses the importance of holding discussions. 
Pointing to that, a junior House of Councilors member said: "That 
well illustrates the LDP is not serious about holding talks." 
 
On the other hand, the opposition bloc is alarmed by the choice of 
Shigeru Ishiba as a successor to Defense Minister Masahiko Komura. A 
senior DPJ lawmaker in charge of foreign affairs and defense braced 
himself, saying: "In Diet debate with Mr. Ishiba, the DPJ, too, will 
be tested." 
 
The Japanese Communist Party's Secretary General Tadayoshi Ichida 
made this comment in the Diet: "I am with the impression that it is 
a hand-me-down cabinet from Mr. Abe." The Social Democratic Party's 
President Mizuho Fukushima made this critical comment in Tokyo: "It 
is an inward-looking cabinet, from which we can't feel any attitude 
to raise an issue." 
 
13) Fukuda cabinet referred to as "between-the-acts" cabinet having 
no character 
 
SANKEI (Page 31) (Excerpts) 
September 26, 2007 
 
The administration led by Prime Minister Yasuo Fukuda has been 
launched fraught with an array of tough issues, such as growing 
socio-economic disparities, the pension mess, and "politics and 
money" political scandals. "Any wrong move now could cause us to 
lose the reins of government; this administration has its back 
against the wall," Prime Minister Fukuda said with strong resolve in 
 
TOKYO 00004446  009 OF 014 
 
 
a press conference last night, after announcing the lineup of his 
cabinet. Fukuda retained 15 of the 17 cabinet ministers in their 
posts, with two switching portfolios. Although the new cabinet has a 
sense of stability reflecting Fukuda's personality, its lack of 
attractiveness and freshness is undeniable. What are the experts' 
reactions to the new cabinet? 
 
Journalist Soichiro Tahara took this view: "All dishes are there but 
they all lack specific flavor. I would call it a lunch box with rice 
and a variety of side dishes. It's something you eat between the 
acts." 
 
Fukuda explained that he minimized changes so as not to cause 
political confusion. But Tahara noted: "The cabinet is oriented 
toward factional coordination and has no character. The innocuous 
lineup carries a clear Fukuda stamp." 
 
Cartoonist Mitsuru Yaku's comment: "If I were to draw a cartoon 
panel, I would pick a scene in which Fukuda is trying to persuade 
Ozawa to have pragmatic talks while holding back his cynical tongue 
for the sake of normalizing Diet business. I would call it a 
'short-straw cabinet.' There is a possibility that the ruling 
coalition will have to fight an uphill battle in the next election 
in dealing with the Democratic Party of Japan, and the prime 
minister and his cabinet ministers might be seriously damaged." 
 
Economic journalist Hiroko Ogiwara referred to the Fukuda cabinet as 
the "clean-up-the-mess cabinet." Ogiwara added: "The new cabinet 
will have to resolve the three problems: socio-economic disparities 
left behind by Koizumi, Abe's unfinished business, and the factions 
half destroyed by Koizumi." 
 
Political analyst Tadahiro Asakawa called it a "cabinet to get 
through the stalled extraordinary Diet session with a firm defensive 
stance." 
 
14) New administration forced to choose between extension of Diet 
session and delaying taking a vote on new legislation for refueling 
mission 
 
ASAHI (Page 4) (Abridged) 
September 26, 2007 
 
How to handle new legislation enabling Japan to continue the 
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian 
Ocean is a first test of whether the Fukuda administration will be 
able to steer the Diet. In order to enact a new law for refueling 
during the current session of the Diet, the government needs to 
significantly extend the Diet session, but doing so could escalate 
the conflict with the major opposition Democratic Party of Japan 
(DPJ) and lead to dissolving the Lower House. If the government 
defers the handling of the new legislation to the ordinary Diet 
session to be convened next year, Japan's refueling mission (former 
Prime Minister Abe) pledged to continue will be bound to be 
suspended for a long period of time. The government will decide on 
its attitude while closely analyzing public opinion. 
 
The ruling Liberal Democratic Party's (LDP) Diet Affairs Committee 
Chairman Tadamori Oshima said of new legislation for continuing the 
refueling mission on a TV program yesterday: "If we fail to reach 
agreement through talks, we will follow the rules to enact new 
legislation into law." But Prime Minister Fukuda went no further 
 
TOKYO 00004446  010 OF 014 
 
 
than to say at a press conference late yesterday: "I think it is 
necessary to obtain the opposition bloc's understanding through 
talks and Diet debate. I'll endeavor to continue (the refueling 
mission)." Fukuda seems willing to take time to see whether he 
should force enactment of a new law or whether the opposition bloc 
can compromise. 
 
Discussion on new legislation to replace the current Antiterrorism 
Special Measures Law which is to expire on Nov. 1 is expected to 
begin in the Lower House possibly in mid-October and clear the Lower 
House possibly in early November. But if the DPJ remains adamant in 
its opposition to the new legislation, it will be impossible for the 
new legislation to be approved in the Upper House. Oshima's remarks 
are taken as demonstrating his determination to put the new 
legislation to a re-vote in the Lower House to adopt it by a 
two-thirds majority. An idea being floated in the ruling bloc is to 
significantly extend the Diet session until Nov. 10. 
 
If the ruling bloc brings the new legislation to a re-vote without 
agreement with the DPJ, the confrontation between the ruling and 
opposition parties would escalate even further and could lead to 
dissolving the Lower House. Even after overcoming such a situation, 
the ruling parties would face further trouble, a delay in 
deliberations on the budget bill in the regular Diet session to be 
convened early next year. As a result, it would be difficult for the 
budget bill to be approved by the end of the fiscal year. The 
government and the ruling parties may be caught in a trap set by the 
DPJ, which aims to rock the government by rejecting budget-related 
bills. Another idea being floated in the ruling bloc is to defer 
taking a vote on new legislation until the ordinary Diet session. 
Taking advantage of the time until the ordinary Diet session, the 
ruling bloc can appeal to the public on the necessity of the 
refueling mission. Once public opinion shifts, the ruling bloc may 
bring the DPJ into discussions. In such a case, deliberations on the 
new legislation will start in next April or later after the budget 
bill is approved. 
 
Will the Fukuda administration force the new legislation into law on 
the pretext of the international commitment or will it wait for the 
public opinion at home to shift even though Japan's refueling 
mission is suspended for a longer period of time? The 
administration, which just came into being, has been put in a 
difficult situation to decide its attitude. 
 
15) With the launching of his cabinet, Prime Minister Fukuda to 
propose comprehensive talks with the DPJ to seek common ground on 
pensions, tax system, aiming at avoiding frontal clashes on the 
issues 
 
NIKKEI (Page 3) (Excerpt) 
September 26, 2007 
 
Prime Minister Yasuo Fukuda, following the launching of his 
administration, intends to propose to the Democratic Party of Japan 
(DPJ) comprehensive consultations on broad, important issues. The 
assumption is that themes for the talks will not be limited to 
extending the refueling services of the Maritime Self-Defense Force 
(MSDF) in the Indian Ocean, but also will included drastic reform of 
the tax system, including the issue of raising the consumption tax 
that will directly affect peoples' lives, reform of the pension 
system, and the "politics and money" scandals. Seeing the difficulty 
of the ruling camp passing bills on its own, now that the Diet is 
 
TOKYO 00004446  011 OF 014 
 
 
distorted following the Upper House win by the Democratic Party of 
Japan, the prime minister aims to find common ground with the DPJ on 
a broad scale. 
 
16) Fukuda eager to submit new refueling legislation to current Diet 
to have talks with opposition parties 
 
ASAHI (Page 2) (Excerpts) 
September 26, 2007 
 
Prime Minister Yasuo Fukuda held his first press conference last 
night, in which he indicated that the government would submit new 
legislation to the current Diet session enabling the Maritime 
Self-Defense Force to continue its refueling operation in the Indian 
Ocean. The Democratic Party of Japan and other opposition parties 
remain opposed to the legislation. Fukuda, however, stressed his 
plan to give importance to talks with the opposition parties, 
saying: "It might be necessary to explain matters in advance in 
order to obtain their support. We are going to explain various 
matters in Diet debates, as necessary. We will make utmost efforts 
to make a decision as soon as possible on continued operations." 
Fukuda stopped short of saying whether the new legislation would be 
enacted in the current session, however. 
 
17) Machimura named chief cabinet secretary to build cooperative 
relationship between Kantei and ruling parties and to deal with 
bureaucrats 
 
ASAHI (Page 2) (Excerpts) 
September 26, 2007 
 
Prime Minister Yasuo Fukuda in his inaugural press conference last 
night expressed his eagerness to let the Kantei (Prime Minister's 
Official Residence) exhibit strong leadership, saying: "I am going 
to fully utilize the system allowing the Kantei to exhibit 
leadership." 
 
Fukuda's style will be subtly distinct from those of Koizumi and 
Abe, however. That is already evident from his selection of Nobutaka 
Machimura as chief cabinet secretary, the pivotal cabinet post. 
 
"Our faction (Machimura faction) will have to have either the post 
of chief cabinet secretary or secretary general. It means to return 
to the original state." 
 
This comment was made by former Prime Minister Yoshiro Mori, who is 
also the honorary chairman of the Machimura faction, toward the 
press corps aboard the plane to the United States the night before 
the Fukuda cabinet was launched, implying Machimura's appointment. 
 
It was customary for the prime minister to give the post of chief 
cabinet secretary, his right-hand man, to the faction he used to 
belong to. But Fukuda's predecessor, Abe, advocating Kantei-led 
politics, gave the post to Yasuhisa Shiozaki of another faction. As 
a result, the Abe cabinet was dubbed a "cabinet of friends." 
 
Fukuda picked Machimura as chief cabinet secretary by following the 
tradition apparently in a bid to reestablish the harmonious policy 
course between the Kantei and ruling parties. In his inaugural press 
conference, Machimura underlined the importance of working together 
with the ruling bloc, saying: "The new cabinet has its back against 
the wall, so the government and the ruling parties must work 
 
TOKYO 00004446  012 OF 014 
 
 
together at this critical juncture." 
 
Reflecting the mood in the Liberal Democratic Party, Machimura has 
been critical of the Council on Economic and Fiscal Policy, which 
played a central role in Kantei-led politics under the Koizumi and 
Abe administrations. 
 
18) Upper House designates Ozawa as prime minister 
 
ASAHI (Page 4) (Excerpts) 
September 26, 2007 
 
In the selection of prime minister in the Diet yesterday, the Lower 
House designated Yasuo Fukuda of the ruling Liberal Democratic Party 
(LDP), while the Upper House designated Ichiro Ozawa of the major 
opposition Democratic Party of Japan (DPJ). As the provisions in 
Article 67 of the Constitution state, the designation by the Lower 
House precedes the one by the Upper House. Fukuda was chosen as 
prime minister. It was the fourth time for the two chambers of the 
Diet to designate different lawmakers as prime minister and the 
first since 1998, when the Lower House designated Keizo Obuchi of 
the LDP, while the Upper House designated Naoto Kan of the DPJ. 
 
On the Upper House's designation of Ozawa as prime minister, senior 
DPJ members were in good spirits with one saying, "This is a 
historic day." Another noted, "Next is for us to take the reins of 
government." The DPJ's senior Upper House lawmakers applauded Ozawa 
in the Diet. Ozawa said, "I feel honored. I want to create a similar 
situation in the Lower House, as well, so that our assertions will 
be reflected in politics." Deputy President Naoto Kan called for an 
early dissolution of the Lower House and a general election, telling 
reporters, "If the opposition parties hold a majority of seats in 
the Lower House, we can hold a majority in both the houses of the 
Diet." 
 
19) Ozawa to oppose extension of extra Diet session 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 26, 2007 
 
An argument calling for extending the current Diet session to enact 
new legislation aimed at continuing the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean, the focus of 
highest attention, has been floated in the ruling camp. Democratic 
Party of Japan (DPJ or Minshuto) Chairman Ichiro Ozawa during a 
press conference yesterday revealed his intention to oppose this 
proposal, noting, "It is a very irresponsible idea." 
 
To a question as to whether the DPJ will submit a counterproposal 
aimed at rendering non-military assistance, such as medical services 
and food aid, instead of refueling operations, Ozawa hinted at such 
a possibility, noting, "It may be good if assistance can be rendered 
in such a form." 
 
Ozawa also criticized that the Liberal Democratic Party (LDP) and 
the New Komeito included their coalition agreement a plan to set up 
a third-party organ tasked with checking receipts submitted by 
politicians for the release of their political funds. He noted, 
"They make it look as if they have adopted an open system, but that 
is not so at all." 
 
20) DPJ gathering steam with eye on taking over government: 
 
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Determined not to compromise with lessons learned from 1998 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 26, 2007 
 
Receiving a boost from the designation of Ichiro Ozawa as prime 
minister in the Upper House plenary session on Sept. 25, the 
Democratic Party of Japan (DPJ or Minshuto) is gathering steam with 
an eye on taking over the reins of government. In the extra Diet 
session in the summer of 1997, Chairman Naoto Kan at the time was 
also designated as prime minister in the Upper House, but the 
opposition failed to take power. The DPJ now has a second chance to 
try again after a nine-year hiatus. 
 
Ozawa said confidently at a press conference after being elected 
prime minister by the Upper House: "I am very honored. The result 
symbolizes the meaning that the opposition has been given a majority 
in the Upper House election." 
 
Ozawa's stance of submitting bills based on his own policies without 
compromising with the Liberal Democratic Party has filtered down 
into the DPJ since he took office as chairman. 
 
In particular, following the trading of places between ruling and 
opposition parties as a result of the Upper House election in the 
summer, Ozawa has strengthened his stance of not responding to a 
call for cooperation with the ruling camp and forced Prime Minister 
Abe to step down. 
 
The DPJ has shifted to this hard-line stance learning lessons from 
what happened in 1998. The opposition camp, including the DPJ, 
gained the control of the Upper House in the election held in the 
summer of that year. It was the best opportunity for them to corner 
the government and the ruling parties, also boosted by the financial 
crisis. 
 
The opposition succeeded in having the LDP swallow the financial 
services revitalizing bill it submitted. However, President Kan at 
the time said, "I will not seek dissolution of the Lower House and a 
snap election." Following this statement, Ozawa moved to establish a 
coalition with the LDP.  A change of administration never came 
about. 
 
However, the DPJ sees the situation this time totally different from 
the situation in 1998, as one senior DPJ member put it. 
 
That is because unlike Kan at the time, Ozawa is a staunch advocate 
of a change in political administration. 
 
In addition, the no. 1 party in the Upper House in 1998 was the LDP, 
but now the DPJ is the top party. It holds the presidency of the 
Upper House and the chairmanship of the Upper House Steering 
Committee, key posts in steering the Upper House. Unlike 1998, the 
ruling parties do not have complementary forces that can help them 
gain a majority. 
 
Azuma Koshiishi, head of the DPJ caucus in the House of Councillors, 
stressed to reporters, "We want the Fukuda administration to 
dissolve the Lower House and seek the judgment of the people at the 
earliest possible date." 
 
21) New N. Korea bill presented to US House panel; Removal from 
 
TOKYO 00004446  014 OF 014 
 
 
terror list premised on abduction settlement 
 
SANKEI (Page 3) (Abridged) 
September 26, 2007 
 
WASHINGTON-US House of Representatives Foreign Affairs Committee 
Senior Director Ros-Lehtinen from the Republican Party presented a 
bill to the committee on Sept. 25, prohibiting the US government 
from delisting North Korea as a terror sponsor. The bill 
incorporates a set of preconditions, such as releasing Japanese 
abductees, to remove North Korea from the US government's terrorist 
list. 
 
North Korea is now suspected of having provided nuclear-related 
materials to Syria. Ros-Lehtinen cited a strong sense of distrust in 
North Korea for her introduction of the bill. 
 
The bill lists preconditions for removing North Korea from the 
antiterror list, saying North Korea must stop proliferating nuclear 
and missile technologies to countries like Iran and Syria and must 
stop forging false dollar bills. In connection with Japan, the bill 
also says North Korea must stop its support of Japanese Red Army 
members who hijacked a Japan Airlines plane. 
 
SCHIEFFER