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UNCLAS SECTION 01 OF 13 TOKYO 004648 
 
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 10/05/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
North Korea problem: 
4) Joint Japan-ROK poll shows 76 PERCENT  of Japanese, 17 PERCENT 
of South Koreans see abductions by North Korea as priority issue 
5) Chief Cabinet Secretary Machimura finds new six-party agreement 
laudable 
6) Tokyo worried that as nuclear progress continues in six-party 
talks, and North Korea is de-listed as terror-supporting state, 
abduction issue will be marginalized 
7) Shizuoka University Prof. Izumi sees latest six-party accord as 
step forward toward resolving the nuclear issue on the Korean 
Peninsula 
 
Burma issue: 
8) Death of Japanese photographer and Burma's inadequate response 
has convinced the Japanese government to impose sanctions, including 
aid freeze 
9) Japan freezing aid to Burma and rebuilding its foreign policy 
approach to the regime there 
 
10) Japanese and Russian foreign ministers in telephone conference 
discuss need to resolve northern -territories issue 
 
Diet interpellations: 
11) Prime Minister Fukuda in Diet interpellations calls for talks 
with DPJ on new anti-terror bill, stresses need for MSDF to continue 
refueling services 
12) Text of key exchanges on foreign and security affairs in the 
Diet session yesterday 
13) As part of party's stall tactic, DPJ lawmaker wastes 80 minutes 
of Fukuda's time in Diet interpellation by asking 80 trivial 
questions 
 
Anti-terror legislation: 
14) New anti-terror bill will likely have a one-year limited 
timeframe 
15) Defense Ministry cautious about proposed provision in new 
anti-terror bill that would halt MSDF refueling of supply ships, 55 
PERCENT  of the servicing until now 
16) Once government introduces its new anti-terror bill, DPJ plans 
to present its bill to scrap the "Iraq law" 
17) Views in DPJ are split over President Ozawa's suggestion that 
Japan consider service in ISAF in Afghanistan under UN mandate 
 
18) Maritime Self-Defense Force overcharged by shipping company by 
80 million yen 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Tokyo Shimbun: Akahata: 
DPRK to start disabling nuclear facilities within two weeks; 
Agreement at six-party talks released; Complete declaration by 
year's end; No date give  for delisting 
 
Nikkei: 
 
TOKYO 00004648  002 OF 013 
 
 
Toyota decides to allow contract employees to join labor union, 
possibly next summer; 3,000 workers in first step 
 
Sankei: 
L&G searched over alleged investment scam: Investigation found plan 
similar to "enten" currency system targeting South Korea in pursuit 
of funds abroad due to funding difficulties 
 
2) EDITORIALS 
 
Asahi: 
(1) Six-party talks reach agreement, taking step forward 
(2) Refueling operations: Disappointed at prime minister's reply 
 
Mainichi: 
(1) Party representatives question-and-answer session at Diet: DPJ 
should quiz Fukuda over details of his low-profile replies 
(2) Forcible investigation into L&G over "enten" scam: 
Responsibility for promoting investment also weighty 
 
Yomiuri: 
(1) Interpellation at Diet: DPJ should shift from its exclusively 
confrontational approach 
(2) Agreement at six-party talks leaves many pending issues for 
Japan 
 
Nikkei: 
(1) Can DPJ show capability to run government? 
(2) Consideration must be given to ordinary stockholders in 
triangular mergers 
 
Sankei: 
(1) Party representatives question-and-answer session at Diet 
(2) Triangular mergers: Use system instead of fearing it 
 
Tokyo Shimbun: 
(1) Diet debates kick off: We hope to see party heads speak their 
own words 
(2) Six-party talks: Can DPRK meet pledges? 
 
Akahata: 
(1) A-bomb sickness recognition system: Drastic improvement needed 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 3 
 
NIKKEI (Page 2) (Full) 
October 4, 2007 
 
11:32 
Met Deputy Foreign Minister Yabunaka at the Kantei. 
 
13:02 
Attended a Lower House plenary session. 
 
17:00 
Met at the Kantei with Deputy Chief Cabinet Secretary Ono. Followed 
by Economy and Fiscal Policy Minister Ota and others. 
 
18:38 
Returned to his private residence in Nozawa. 
 
TOKYO 00004648  003 OF 013 
 
 
 
4) Poll on N. Korea priority policy: Abductions at 76 PERCENT  in 
Japan, 17 PERCENT  in S. Korea 
 
YOMIURI (Page 2) (Full) 
October 4, 2007 
 
The Yomiuri Shimbun recently conducted a joint public opinion survey 
with the Korea Times to probe public attitudes in Japan and South 
Korea on North Korea issues. In the survey, respondents were asked 
what they thought Japan, China, and South Korea should tackle 
together on a priority basis. In response to this question (for 
multiple answers), 77 PERCENT  in Japan picked "stop North Korea's 
nuclear development," topping all other answers. In South Korea as 
well, this answer topped all other answers at 68 PERCENT . 
 
In Japan, those who picked "resolve the abductions of Japanese and 
South Korean nationals" accounted for 76 PERCENT . In South Korea, 
however, the proportion of those who gave this answer was only 17 
PERCENT . The sensitivity of threat to North Korea, which conducted 
a nuclear test in October last year, was high both in Japan and in 
South Korea. However, there was a perception gap between the 
Japanese and South Korean public over the abductions issue. 
 
The third-ranking answer in Japan was "stop North Korea's missile 
development and launch" (62 PERCENT ). In South Korea, the 
second-ranking answer was "missile development" (44 PERCENT ). The 
third-ranking answer in South Korea suggested the need for Japan and 
South Korea to "normalize diplomatic relations with North Korea" (35 
PERCENT ). 
 
Respondents were also asked if they thought North Korea would 
abandon its nuclear programs. To this question, those who answered 
"no" totaled 82 PERCENT  in Japan, and those who said "yes" totaled 
15 PERCENT . As seen from these figures, most people in Japan were 
pessimistic. In South Korea, those who chose "no" totaled 58 PERCENT 
, with "yes" totaling 41 PERCENT . 
 
On the question of the public impression of North Korea, "bad" 
totaled 98 PERCENT  in Japan and 63 PERCENT  in South Korea. 
 
The survey was conducted in Japan and South Korea from late August 
through early September on a face-to-face basis with men and women 
aged 20 and over. 
 
5) Machimura hails six-party accord 
 
ASAHI (Page 7) (Full) 
October 4, 2007 
 
Chief Cabinet Secretary Machimura yesterday hailed the statement of 
agreement released after the latest round six-party talks, 
declaring: "The document is laudable. Under the accord, North Korea 
will declare all its nuclear programs by the end of the year." 
 
According to a source connected to the six-party talks, a clause 
obligating North Korea to declare its nuclear programs was made 
clearer than the final draft that China had originally presented. A 
senior Foreign Ministry official, commenting on this, said: "A 
heavier obligation has been placed on Pyongyang." 
 
Foreign Minister Komura also commented on the accord last night: "A 
 
TOKYO 00004648  004 OF 013 
 
 
better document was worked out, compared with that in the drafting 
process. What is important is to have North Korea deliver on its 
promises." On Japan's economic sanctions against North Korea, Komura 
indicated the government would continue the sanctions for the time 
being, saying: "Japan will not remove the sanctions immediately. We 
must carefully watch what move the North will make." 
 
A senior Foreign Ministry official commented on the issue of whether 
the United States would remove North Korea from its list of 
terrorism-sponsoring nations: "The document only says that the US 
will begin the process. It contains no details." However, North 
Korea's understanding is that if it disables three nuclear 
facilities at Yongbyon, the US will be able to delist it. A senior 
Foreign Ministry official said: "We have the impression that the 
delisting process has moved half a step forward." 
 
In reference to a pledge made in the consensus documents issued in 
the six-party talks in February and this time to provide the North 
with one million tons of heavy oil, Komura renewed the government's 
stance of not joining the aid program as long as there is no 
progress on the abduction issue. 
 
6) Japan worries US may delist North Korea, putting abduction issue 
on backburner 
 
MAINICHI (Page 3) (Full) 
October 4, 2007 
 
The Japanese government has favorably taken the agreement reached in 
the latest six-party talks, focusing on the deadline set at Dec. 31 
for the completion of disablement of North Korea's nuclear 
facilities and declaration of all its nuclear programs. Chief 
Cabinet Secretary Nobutaka Machimura said: "An accord satisfactory 
to Japan was worked out in the final stage." However, regarding the 
United States' commitment to begin the process of delisting North 
Korea as a state sponsor of terrorism, there is concern that the US 
may hurriedly delist North Korea, separating it from the issue of 
North Korea's past abductions of Japanese nationals. The Fukuda 
administration, which places importance on both pressure and 
dialogue, will inevitably be hard pressed to make a difficult 
response. 
 
Speaking before reporters at the Prime Minister's Office last night, 
Machimura commented on the delisting issue: "It depends on to what 
extent Pyongyang moves ahead with fulfilling its obligations. It 
would be strange if the North were removed automatically at some 
point." Foreign Minister Komura also said: "North Korea is required 
to declare all of its programs," indicating that Pyongyang should 
also declare uranium-enrichment and nuclear development programs. 
 
In a plenary session held in late September, Japan insisted that the 
North disable all its nuclear facilities and nuclear development 
programs. On the delisting issue, Japan demanded that a complete 
settlement of the abduction issue should be made a precondition. A 
senior Foreign Ministry official praised to some extent the fact 
that the accord did not specify a clear-cut date for that, saying: 
"Although we can not give it full marks, Japan's stance was 
reflected in it." 
 
Even so, concern persists that if the second phase in the 
denuclearization process moves forward, the US might delist the 
North, putting the abduction issue on the backburner. With respect 
 
TOKYO 00004648  005 OF 013 
 
 
to Japan-North Korea relations, as well, the accord refers to (North 
Korea's) promise to implement specific action in order to settle 
past accounts and pending bilateral issues. Reflecting this, one 
Japanese representative indicated Japan's willingness to speed up 
adjusting the timetable for the bilateral working group on 
normalization of diplomatic ties, but the situation does not warrant 
any optimism. 
 
7) One step forward on North Korea's denuclearization 
 
ASAHI (Page 7) (Full) 
October 4, 2007 
 
By Hajime Izumi, professor at the University of Shizuoka 
 
The contents of the statement of agreement coming out of the 
six-party talks was largely anticipated. The document obligates 
North Korea to disable three of its nuclear facilities by Dec. 31. 
This obligation can be taken as a move one step forward toward a 
settlement of the issue of North Korea's denuclearization and as 
such, a visible achievement. 
 
The accord further notes that North Korea has agreed to provide a 
complete and correct declaration of all its nuclear programs. That, 
however, would be technically difficult to complete by Dec. 31. 
 
The word "all" would include not only plutonium but 
uranium-enrichment nuclear development programs. In addition, it is 
necessary to verify what the North declares. Considering this, we 
must say that the process to realize the agreement will start by the 
end of the year. In this respect, I think we have still a long way 
to go. We should not relax our efforts. 
 
Additionally, the agreement states that the United States would 
begin the process of removing North Korea from its list of 
terrorist-sponsoring nations if Pyongyang moves ahead with its 
obligations. The obligations on North Korea include positive 
responses to such issues as the Yodo Airliner hijack incident and 
abductions of Japanese nationals by North Korean agents. North Korea 
will be under pressure now to respond promptly. 
 
The document stresses "strengthened relations of mutual trust" in 
referring to relations between the US and North Korea. This is the 
first time under the Bush administration for such a positive 
expression to be used, and it indicates that the bilateral 
relationship has improved considerably. 
 
In describing relations between Japan and North Korea, the document 
uses this expression: "make efforts to normalize diplomatic 
relations at an early date." Attention should be focused on the 
words "at an early date." This shows that Japan-DPRK relations, too, 
have begun to move forward. 
 
8) Scope column: Japan decides to take sanction measures against 
Burma in effort to seek a full account of death of Japanese reporter 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 4, 2007 
 
Nakahiro Iwata 
 
 
TOKYO 00004648  006 OF 013 
 
 
The government yesterday decided to take sanction measures against 
Burma (Myanmar), such as placing a freeze on part of its 
humanitarian assistance, in the wake of photojournalist Kenji Nagai 
having been shot by a Burmese soldier. In the past Tokyo had been 
cautious about imposing sanctions, but it has now judged it is 
necessary to indicate its strong will to Burma and to pressure the 
military junta to investigate the incident. The two countries are 
far apart when it comes to accounts of the incident. 
 
 ASTERISK    ASTERISK    ASTERISK    ASTERISK    ASTERISK 
 
Foreign Minister Masahiko Komura said this of sanction measures at a 
press briefing: "Japan's economic cooperation toward Burma has been 
limited to humanitarian aid, but I want to cut it even further." As 
areas in which Japan will suspend aid, Komura cited a construction 
plan for a human resources development center (for which 550 billion 
yen has been earmarked in the current budget) for such purposes as 
Japanese language education. 
 
Since the military junta came to power after a coup in 1988, Japan 
has suspended yen loans under its official development assistance 
(ODA) program, and it also has suspended any new 
economic-cooperation project since pro-democracy leader Aung San Suu 
Kyi was put under house arrest. 
 
Unlike the United States and European nations, which have put 
pressure on the military junta by slapping economic sanctions on it, 
Japan has continued humanitarian aid as an exception. In 2006, Japan 
offered a total of 3 billion yen in grant aid cooperation and 
technical cooperation in order to support, for instance, polio 
vaccination and projects against narcotics and poverty. 
 
These measures taken by Japan had been in part aimed at urging the 
military junta to turn the country into a democracy and improve the 
current situation of human rights through repeatedly holding a 
dialogue. Japan's deep friendship with Burma in historical and 
cultural terms had also affected its policy toward Burma. 
 
Japan took the above measures even though it knows China is the 
largest aid donor to Burma. Chief Cabinet Secretary Nobutaka 
Machimura said: "If we drive Burma, an ASEAN member, into a corner 
and it moves even closer to China, it will become difficult to keep 
Southeast Asia in a stable situation." 
 
Nonetheless, the government has now decided to impose sanctions on 
Burma. Behind this decision is the government's judgment that the 
military junta is unwilling to investigate the incident of the death 
of a Japanese journalist. The government continued to insist that 
the death of the journalist was accidental even when Deputy Foreign 
Minister Mitoji Yabunaka was sent to Burma to lodge a protest and 
demand an investigation of the incident. 
 
However, many in Japan take the view that if humanitarian aid is 
suspended, "That would deal a blow to the people of Burma, while the 
military junta would not affected," according to a senior Foreign 
Ministry official. Taking this into account, the government intends 
to carefully select projects to be frozen with Foreign Minister 
Komura noting, "It's no good to suspend such projects that are 
directly beneficial to the public." 
 
Yet, it is unavoidable that traditionally friendly relations between 
Japan and Burma will now grow cool. 
 
TOKYO 00004648  007 OF 013 
 
 
 
9) Japan to remake policy toward Burma following decision to freeze 
part of aid to Burma 
 
ASAHI (Page 4) (Slightly abridged) 
October 4, 2007 
 
Kazuto Tsukamoto 
 
Will Japan review its previously friendly ties with Burma (Myanmar) 
though official development assistance (ODA) or will it maintain the 
dialogue line while continuing aid? Tokyo has now decided to put a 
freeze on part of humanitarian aid to Burma. This means Japan's 
policy toward Burma has come to a turning point. Japan has begun 
looking for ways to rebuild its policy toward Burma in a way 
different from the United States and European nations, which have 
cut off relations with the Burmese military junta, and China, which 
has been boosting its presence owing to massive aid to Burma. 
 
At the Prime Minister's Official Residence late yesterday, Prime 
Minister Fukuda admitted that the government began reconsidering its 
previous policy toward Burma, telling reporters: "I want the Foreign 
Ministry to fully study what (humanitarian) aid projects can be cut 
or whether it is good to cut them." 
 
In the past Japan had followed a unique policy toward Burma, keeping 
the door for dialogue open to the military junta unlike the US and 
European nations, which have assumed a tough stance by imposing 
economic sanctions on Burma. But in the wake of the recent shooting 
death of photojournalist Kenji Nagai in Burma, Tokyo has been forced 
not only by the international community but also by the Japanese 
public to assume a strong position against the military junta. Japan 
has come to a turning point in its policy toward Burma. 
 
Japan's economic ties with Burma, for instance, in trade, have been 
on the decline in recent years. Its official development assistance 
(ODA), as well, has been limited to emergency humanitarian aid and 
personnel training contributing to democratization. When it comes to 
sanctions against Burma, "What Japan can do is limited," a senior 
Foreign Ministry official said. 
 
After being briefed by Deputy Foreign Minister Mitoji Yabunaka, who 
just returned home from Burma, Foreign Minister Komura reportedly 
decided to change the previous aid policy, noting, "It's 
unacceptable if we do not take any action despite the death of a 
Japanese national. We must cut our aid, albeit slightly." 
 
The Foreign Ministry will more closely examine the projects of high 
urgency out of the grant aid and technical cooperation programs to 
be implemented. At the same time, it intends to continue its steady 
effort to hold dialogue with the military junta while working in 
close cooperation with the international community. 
 
10) Japanese and Russian foreign ministers exchange views on 
resolving the Northern Territories issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 4, 2007 
 
Foreign Minister Masahiko Komura late yesterday held a telephone 
conversation with Russian Foreign Minister Lavrov in which he said: 
"It is essential to resolve the (Northern) Territories issue. I want 
 
TOKYO 00004648  008 OF 013 
 
 
to continue my efforts to find a solution acceptable to both sides." 
In response, Lavrov said, "We have no intention of freezing the 
peace treaty issue. We really hope to resolve (the territory) 
issue." 
 
Komura underscored: "Strengthening Japan-Russia relations would 
contribute to improving the strategic environment in the 
Asia-Pacific region." Lavrov replied: "We must bring to realization 
cooperation in a new area, including cooperation in the Far East and 
East Siberia." Both leaders confirmed that Lavrov would visit Japan 
in late October. 
 
11) Fukuda calls for discussions on new antiterror law 
 
ASAHI (Page 1) (Abridged) 
October 4, 2007 
 
The Diet has now entered into a battle of words in earnest. In the 
House of Representatives, the ruling and opposition benches kicked 
off their parliamentary debate yesterday with questions from those 
representing their respective political parties. In his 
parliamentary reply, Prime Minister Fukuda underscored the need to 
continue the Maritime Self-Defense Force's current refueling 
activities in the Indian Ocean in order for Japan to fulfill its 
international responsibility in the war on terror. The MSDF's 
refueling mission in the Indian Ocean is based on the Antiterrorism 
Special Measures Law, which is due to run out on Nov. 1. In this 
regard, Fukuda said the government would like to work out the newly 
planned legislation as soon as possible to show its outline to the 
public, including the opposition parties. 
 
12) Main points from Oct. 3 Diet interpellations 
 
ASAHI (Page 4) (Excerpts) 
October 4, 2007 
 
Foreign and security affairs 
 
Bunmei Ibuki (Liberal Democratic Party): I would like to see the 
government also begin discussions with the opposition parties on new 
legislation (for continuing the refueling mission in the Indian 
Ocean). 
 
Prime Minister Yasuo Fukuda: We will speedily produce an outline to 
present it to the general public, including the opposition parties. 
 
Yukio Hatoyama (Democratic Party of Japan): The Defense Ministry has 
corrected the amount of fuel supplied to a US supply vessel by the 
Maritime Self-Defense Force in 2003 from about 200,000 gallons to 
800,000 gallons. I want the government to thoroughly disclose facts 
about SDF activities overseas, including the refueling mission. 
 
Fukuda: In collecting refueling data back then, the Maritime Staff 
Office mistook the volume provided to the US supply vessel for that 
to another ship. It was a clerical mistake. I feel it was 
regrettable that such a mistake occurred. I have ordered the defense 
minister to take thorough measures to prevent any more clerical 
mistakes. We must give thought to the possibility that disclosing 
MSDF activities might have adverse effects on the operations of the 
SDF and foreign forces. We will make efforts to disclose as much 
information as possible by obtaining the understanding of other 
countries. 
 
TOKYO 00004648  009 OF 013 
 
 
 
Hatoyama: Our party is opposed to continuing the MSDF mission that 
lacks a UN resolution. 
 
Fukuda: All UN members are required to take appropriate measures to 
prevent international terrorism based on UN Resolution 1368. Japan's 
refueling operations are also based on that UN Security Council 
resolution. 
 
Hatoyama: What is your perception of the current situation in 
Afghanistan and do you have any exit strategy? 
 
Fukuda: In Afghanistan, the process of building a system of 
government is over. Efforts are being made for high economic growth 
and improved educational and medical systems and infrastructure, and 
refugees are returning to the country, as well. The Afghanistan 
government is also endeavoring to improve security under the 
assistance of multinational forces. At the same time, the war on 
terrorism, a tough and long-term effort, is continuing. In close 
cooperation with the international community, Japan will continue 
extending reconstruction assistance to eliminate poverty and other 
factors contributing to terrorism. 
 
Hatoyama: Is the government prepared to make efforts for the 
democratization of Burma (Myanmar)? 
 
Fukuda: It was regrettable that a Japanese national was killed. We 
are concerned about the democratization of Burma. We are working on 
Burma to settle the situation through talks instead of force. We 
will swiftly and persistently work on that country in collaboration 
with the international community. 
 
Hatoyama: To settle the abduction issue, what measures are you going 
to take? 
 
Fukuda: We will make maximum efforts to bring all abductees back to 
Japan, settle the unfortunate past, and normalize diplomatic 
relations. We will urge North Korea to take concrete steps to 
resolve the abduction issue, while holding serious talks with the 
North and working close with concerned countries, including the 
United States, through the six-party talks and other venues. 
 
13) DPJ's Nagatsuma presents 80 questions to Prime Minister Fukuda - 
called "unprecedented" 
 
YOMIURI (Page 2) (Full) 
October 4, 2007 
 
Akira Nagatsuma, deputy policy chief of the main opposition 
Democratic Party of Japan (DPJ), asked about 80 questions of Prime 
Minister Yasuo Fukuda during Diet interpellations yesterday. It is 
unprecedented for a lawmaker to ask as many as 80 questions 
regarding the prime minister's Diet policy speech, said to a source 
in the Lower House. Fukuda spent 40 minutes answering the questions, 
exceeding Nagatsuma's allocated time. 
 
It has been standard practice for party representatives to question 
the prime minister's about basic political stances. Nagatsuma, 
however, raised minutely detailed questions, centering on the 
pension issue. 
 
Fukuda answered all his questions, however. Chief Cabinet Secretary 
 
TOKYO 00004648  010 OF 013 
 
 
Nobutaka Machimura made a sympathetic comment: "Seeing the prime 
minister from the side, I felt sorry for him." 
 
After the Lower House plenary session, Nagatsuma told reporters: 
 
"Since the prime minister's policy speech was full of abstractions, 
I asked him about specific figures and date. His answers were also 
abstract so that the actual meaning of his words could not be 
understood." 
 
He then gave notice he would grill Fukuda further, saying, "I will 
ask him more specific questions during committee meetings." 
 
14) Government, ruling parties to set term of new antiterrorism 
legislation at one year 
 
MAINICHI (Page 2) (Full) 
October 4, 2007 
 
The government and ruling parties decided yesterday to set the term 
of new antiterrorism legislation intended to continue the Maritime 
Self-Defense Force's refueling mission in the Indian Ocean at one 
year and obligate the MSDF to report to the Diet every six months. 
They are also considering halting the refueling service to supply 
vessels of the United States and other countries and stipulating in 
the legislation to limit its service to destroyers and cruisers. The 
ruling bloc project team plans to finalize the outline of the 
legislation today to brief on it at a meeting tomorrow of the Diet 
affairs chiefs of the ruling and opposition parties. 
 
The government had initially presented the ruling parties with a 
plan to set the term of deployment at two years, but the New Komeito 
insisted on one year, citing solid civilian control. The government 
and Liberal Democratic Party eventually concurred with the New 
Komeito plan. The government has come up with the idea of removing 
the supply vessels from the MSDF refueling list in response to the 
allegation that the fuel provided to a US supply vessel was used in 
the Iraq war. 
 
15) Gov't mulls stopping fuel supply to supply vessels; Defense 
Ministry cautious 
 
SANKEI (Page 3) (Full) 
October 4, 2007 
 
The government is now beginning to consider stopping the Maritime 
Self-Defense Force's fuel supply services for multinational forces' 
supply vessels in the Indian Ocean, sources said yesterday. The 
MSDF's fuel supply to those foreign naval supply vessels there 
accounts for nearly 60 PERCENT  of the MSDF's refueling services in 
the Indian Ocean. In this regard, opposition parties say Japanese 
fuel supplied to a US aircraft carrier through a US supply vessel 
was used for operations in Iraq. The government is therefore looking 
to rule out the possibility of indirect refueling in a newly planned 
legislative measure, which is to replace the current time-limited 
antiterror law. This is aimed at dispelling suspicions over such 
indirect refueling. Meanwhile, there are also cautious arguments 
within the Defense Ministry, with one of its officials saying it 
means rejecting the MSDF's activities in the past. Chief Cabinet 
Secretary Nobutaka Machimura, meeting the press yesterday, indicated 
 
SIPDIS 
that the government would positively consider excluding supply 
vessels from those subject to MSDF refueling services. "That's one 
 
TOKYO 00004648  011 OF 013 
 
 
idea if their operation is possible as a whole," the top government 
spokesman said. The government will specify such a course of action 
in the new legislation. At the same time, the Japanese government is 
also coordinating with the governments of foreign countries whose 
naval vessels are refueled by the MSDF to stipulate it in the 
Japanese government's exchanges of notes with them. 
 
A senior official of the Defense Ministry explained yesterday 
afternoon why the MSDF will stop refueling supply vessels. "That's 
because there is now less need," this official said. One staff 
officer of the Self-Defense Forces, however, raised a question about 
halting the MSDF's fuel supply services to foreign naval supply 
vessels. "If we stop it just because the opposition parties said 
that, the MSDF's activities in the past will be viewed as mistaken," 
the SDF officer noted. According to the Defense Ministry, the MSDF, 
which began its Indian Ocean refueling activities in December 2001, 
refueled foreign vessels with 484,000 kiloliters up until Aug. 30, 
and 267,000 kiloliters or about 55 PERCENT  of that fuel supply went 
to US and British supply vessels. The MSDF conducted a total of 105 
refueling services for foreign vessels until that time, including 88 
services for them before the Iraq war started in March 2003. In 2003 
and the following fiscal years, the MSDF conducted no more than 10 
fuel supply services to them. 
 
16) DPJ will submit bill abolishing Iraq Special Measures Law if 
government presents new antiterrorism bill 
 
YOMIURI (Page 4) (Full) 
October 4, 2007 
 
The largest opposition Democratic Party of Japan (DPJ) decided 
yesterday to immediately present to the House of Councillors its own 
bill to abolish the Iraq Special Measures Law to support Iraq 
reconstruction if the government submits to the House of 
Representatives new legislation enabling the Maritime Self-Defense 
Force to continue its refueling mission in the Indian Ocean. 
 
The government-drafted legislation features the MSDF operation to 
provide US and British ships engaging in the terrorism mop-up 
operations in and around Afghanistan. The DPJ's bill to abolish the 
Iraq law is aimed at withdrawing Air Self-Defense Force troops 
deployed in Iraq. Therefore the regions to which the two bills 
subjected differ. The DPJ, however, intends to purse the 
appropriateness of SDF oversea dispatch, alleging the MSDF might 
have provided fuel to a US aircraft carrier engaging in the Iraq. 
 
17) DPJ divided over Ozawa's statement about ISAF participation 
 
YOMIURI (Page 4) (Full) 
October 4, 2007 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa writing for 
the party's organ paper took a positive stance about Japan 
participating in the International Security Assistance Force (ISAF) 
in Afghanistan. Ozawa appears to be aiming at securing public 
understanding for his party's opposition to the continued refueling 
mission by the Maritime Self-Defense Force (MSDF) in the Indian 
Ocean by stressing the DPJ's positive stance toward making an 
international contribution. 
 
Ozawa explained the reason for his opposition to the MSDF refueling 
mission: 
 
TOKYO 00004648  012 OF 013 
 
 
 
"The war on terrorism in Afghanistan began with an armed attack by 
the United States, declaring it a self-defense war. The Constitution 
prohibits Japan from dispatching the Self-Defense Forces (SDF) 
overseas for the sake another country's use of the right of 
self-defense." 
 
He took the view that the MSDF refueling mission violated the 
Constitution. 
 
He also pointed out that if Japan participated in the ISAF operation 
that was dispatched in December 2001, based on a UN Security Council 
resolution, it would not violate the Constitution, since ISAF was 
authorized by a UNSC resolution. He then stressed: "I want to bring 
that about at the time when my party assume the reins of government 
and is making foreign and security policy." 
 
House of Representatives member Akihisa Nagashima welcomed Ozawa's 
view, saying: 
 
"His argument is sound. We should prevent the public from seeing us 
as just opposing everything. In order to show our clear stance 
toward the war on terror, we should call for ISAF participation." 
 
The DPJ is now compiling its own set of aid measures for 
Afghanistan. There is a view in the party that logistic support for 
ISAF should be included in the measures for Afghanistan. 
 
There is also a strong view in the main opposition party that since 
ISAF missions carry considerable risk, measures should be focused on 
improvement in the people's livelihoods such as sending in a medical 
team. The party executives decided yesterday to forgo for the time 
being a plan to dispatch a parliamentarians' delegation to 
Afghanistan to find out about the ISAF mission there. 
 
The government and ruling coalition are negative about the SDF's 
participation in ISAF operations. Gen Nakatani of the ruling Liberal 
Democratic Party (LDP), a former defense chief, revealed his view 
that Japan's participation in ISAF missions would not be realistic, 
saying: "The SDF will not respond to the ISAF mission based on its 
present equipment and exercises. We base our contributions on the 
principle of not using armed force." 
 
18) MSDF allocated contracts 80 million yen higher than average 
price, Board of Audit points out: Nippon Express consigned for goods 
transportation 
 
ASAHI (Page 34) (Full) 
October 4, 2007 
 
Auditing of the Maritime Self-Defense Force (MSDF) by the Board of 
Audit (BOA) found that it consigned the transportation of goods, 
such as ammunition, to Nippon Express (Minato Ward, Tokyo), a 
leading trucking company, at prices higher than the average level. 
A BOA source that the auditing found contracts that could have been 
cheaper if better ways for loading and transportation had been 
worked out. The MSDF reportedly started reviewing the methods of 
contracts and transportation April this year. 
 
The MSDF has consigned the land transportation of goods, including 
ammunition and engines, to Nippon Express. It explained that since 
the transportation of such goods is highly special, it has opted for 
 
TOKYO 00004648  013 OF 013 
 
 
discretionary contracts. 
 
However, according to the BOA, the cost of the transportation of 
goods with standard volume and weight was higher in contracts 
between the MSDF and the BOA, compared with average prices given by 
the Economic Research Association (Chuo Ward, Tokyo), a judicial 
foundation specializing in research on domestic prices, and the 
Construction Research Institute (Chuo Ward, Tokyo). 
 
The BOA pointed out that in contracts in which trucks were chartered 
for the exclusive transportation of MSDF goods, prices could have 
been lowered if they had been shipped together with goods of other 
customers. There were also cases in which even the transportation of 
special goods, such as ammunitions and engines, could have been 
managed with a fewer number of trucks, if a better loading method 
shipment had been worked out. The auditing report also noted that 
there were cases in which expensive trucks were used even when the 
transportation distance was over 200 kilometers - cases in which 
railway container transportation is cheaper. 
 
One BOA official pointed out: "There was an overly strong sense that 
goods consigned by the MSDF were special. There is room for cost 
reduction, if a better transportation method is work out." 
 
DONOVAN