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UNCLAS SECTION 01 OF 18 TOKYO 004715 
 
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 10/09/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's holiday weekend schedule (Nikkei) 
 
Politics in turmoil: 
4) Fierce clash to begin today in the Lower House between ruling and 
opposition camps, with LDP to stress importance of continuing 
anti-terror operations (Yomiuri) 
5) Democratic Party of Japan (DPJ) to pursue ruling camp today in 
Diet on alleged diversion of refueled oil, new anti-terror bill 
(Sankei) 
6) DPJ to attack ruling camp in Diet with set of three issues: MSDF 
refueling operations; political scandals; and pension program 
(Mainichi) 
7) Simulation of snap Lower House election next spring: DPJ has the 
advantage and LDP/Komeito coalition could lose majority (Tokyo 
Shimbun) 
8) Ozawa's political support group bought apartment buildings with 
political donations and profited from rent money  a violation of the 
law (Mainichi) 
 
Anti-terror legislation row: 
9) Maritime Self-Defense Force (MSDF) to be ordered to return home 
from the Indian Ocean next month as prospects for extension of law 
dim (Nikkei) 
10) LDP in defense of continuing refueling services in the Indian 
Ocean to focus on Pakistan as recipient (Yomiuri) 
 
11) US denies allegation of diversion of MSDF-supplied oil to Iraq 
war (Yomiuri) 
12) US' reply to Japanese government backs denial of charge of 
diversion of MSDF oil for use in Iraq war (Tokyo Shimbun) 
 
ISAF participation issue: 
13) Foreign and defense ministers see DPJ President Ozawa's proposal 
for Japan to participate in ISAF in Afghanistan "unconstitutional" 
(Yomiuri) 
14) LDP's Hidenao Nakagawa wants ruling and opposition party heads 
to debate the ISAF participation issue in the Diet (Yomiuri) 
15) DPJ's Naoto Kan on TV talk show defends Ozawa's proposal for 
ISAF participation, sees Japan's contribution as "humanitarian 
assistance" (Sankei) 
 
Other defense issues: 
16) US, Japan coordinating two to five-year extension of special 
measures agreement (SMA) for host nation support (Nikkei) 
17) US seeks large increase in SMA to cover rising utility costs at 
US bases (Sankei) 
18) Japan negative about allowing increased budget for US base 
utility costs under new SMA (Tokyo Shimbun) 
19) Defense Ministry and SDF shifting F-15s to Okinawa as part of 
new strategic response to China's military buildup (Nikkei) 
20) Declassified documents show secret US-Japan agreement not to 
measure possible nuclear emissions for US warships entering Japanese 
ports (Akahata) 
 
21) Japan considering bearing part of financial burden for North 
Korea's denuclearization (Nikkei) 
 
22) DPJ Secretary General Hatoyama says Japan needs US involvement 
 
TOKYO 00004715  002 OF 018 
 
 
if northern territories issue with Russia is ever to be resolved 
(Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Policy affairs research expenses: 20 prefectures plan to require 
receipts for expenditures over single yen: 15 assemblies to adopt 
requirement this fall 
 
Mainichi: 
Ozawa's fund management body earns rent income from condominiums 
purchased with political funds: 10 million yen between 2002 and 
2006; Suspected of violation of Political Fund Control Law 
 
Yomiuri: 
Second-generation Japanese born in Philippines given Japanese 
nationality without  their fathers' identified family registrations; 
Tokyo Family Court makes decision based on indirect evidence 
 
Nikkei: 
Toray begins production of auto parts using carbon fiber, investing 
30 billion yen in 2010 for new plant: First mass production in 
world 
 
Sankei: 
Sankei poll on triangular mergers: Respondents viewing them as a 
threat drop from 46 PERCENT  to 21 PERCENT ; Companies are steadily 
adopting defense measures. 
 
Tokyo Shimbun: 
Next Lower House election: LDP, New Komeito will suffer crushing 
defeat due to Japanese Communist Party (JCP) reducing candidates? 
LDP could lose majority if DPJ gets JCP votes, according to Tokyo 
Shimbun simulation 
 
Akahata: 
Danger of nuclear-powered aircraft carrier: 1,200 people take part 
in metropolitan zone symposium to oppose deployment in Yokosuka; 
Fight to move government urged 
 
2) EDITORIALS 
 
Asahi: 
(1) Burma: Continue journalist Nagai's legacy 
(2) Guardians for elderly should be increased with mutual aid among 
citizens 
 
Mainichi: 
(1) Medical fees to be shouldered by the elderly: Freezing increase 
as stop-gap measure not acceptable 
(2) Measures on hepatitis: Speed up bipartisan efforts to relieve 
patients 
 
Yomiuri: 
(1) Two corporate taxes: Make efforts to narrow gaps between 
regional areas 
(2) Measures to ensure product safety: System that can root out 
accidents caused by old products 
 
 
TOKYO 00004715  003 OF 018 
 
 
Nikkei: 
(1) Widen the use of funding sources for roads with focus on 
environmental measures 
(2) Time to remove mistrust in political funds 
 
Sankei: 
(1) Hometown tax: Might be useful in revitalizing rural areas 
(2) Bidding system reform: Do not solely rely on overall judgment 
system 
 
Tokyo Shimbun: 
(1) Revitalization of rural areas: What is important is not public 
finance but resourcefulness 
(2)Business tie-ups between Japan Post Holdings and Nippon Express: 
Do not forget downsizing efforts 
 
Akahata: 
(1) Funding sources: Dig into two sacred areas 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 5 
 
NIKKEI (Page 2) (Full) 
October 6, 2007 
 
07:02 
Met former Gunma prefectural assembly member Motoji Yanagisawa at 
his private residence in Nozawa. 
 
08:00 
Met at Deputy Chief Cabinet Secretary Iwaki at the Kantei. 
 
09:04 
Attended a cabinet meeting in the Diet building. 
 
09:26 
Arrived at the Kantei. 
 
10:01 
Attended an Upper House plenary session. 
 
11:52 
Arrived at the Kantei. 
 
13:01 
Attended the Upper House plenary session. 
 
15:30 
Met METI Vice Minister Kitabata at the Kantei. 
 
16:19 
Met Waseda University President Katsuhiko Shirai. Followed by 
Cabinet Intelligence Director Mitani. 
 
17:31 
Met New Komeito Secretary General Kitagawa. Later, received a phone 
call from South Korean President Roh Moo-hyun. 
 
18:10 
Talked on the phone with President of Sri Lanka Rajapaksa. Later, 
met Resources and Energy Agency Director General Mochizuki, with 
 
TOKYO 00004715  004 OF 018 
 
 
Foreign Ministry Asian and Oceanian Affairs Director General Sasae 
present. 
 
19:37 
Dined at an Italian restaurant in the Hotel New Otani with his 
secretaries. 
 
SIPDIS 
 
22:13 
Returned to his private residence in Nozawa. 
 
Prime Minister's schedule, October 6 
 
NIKKEI (Page 2) (Full) 
October 7, 2007 
 
Spent the day at his private residence in Nozawa. 
 
Prime Minister's schedule, October 7 
 
NIKKEI (Page 2) (Full) 
October 8, 2007 
 
07:13 
Left JR Tokyo Station by Nozomi bullet train. 
 
09:33 
Arrived at JR Kyoto Station. 
 
10:17 
Met Science and Technology Minister Kishida, former Finance Minister 
Koji Omi, Kyoto Governor Yamada, and others at the National Kyoto 
International Hall. Attended an opening ceremony of the 
International Forum on Science Technology and Human Future. 
 
11:46 
Left JR Kyoto Station by Nozomi bullet train. 
 
13:47 
Arrived at JR Shin-Yokohama Station. 
 
14:18 
Arrived at his private residence in Nozawa. 
 
17:17 
Met National Defense Academy President Iokibe. 
 
20:52 
Held a meeting with his secretaries. 
 
23:21 
Returned to his private residence. 
 
Prime Minister's schedule, October 8 
 
NIKKEI (Page 2) (Full) 
October 9, 2007 
 
Spent the day at his private residence in Nozawa. 
 
4) Debate at Lower House Budget Committee to kick off today 
 
YOMIURI (Page 4) (Excerpts) 
 
TOKYO 00004715  005 OF 018 
 
 
October 9, 2007 
 
Deliberations will start at the House of Representatives Budget 
Committee today. On the controversial issue of whether to extend the 
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian 
Ocean, the Democratic Party of Japan (DPJ), which has now control of 
the House of Councillors, is poised to have an all-out showdown with 
the government and the ruling bloc by having three members who once 
assumed party presidency take the floor as its questioners. 
Meanwhile, the ruling camp is willing to underscore to the people 
the necessity of the continued MSDF operation through Diet 
deliberations. 
 
The Budget Committee will hold deliberations for three days starting 
today. The sessions on the first and second days will bring together 
Prime Minister Fukuda and all the cabinet members. Criticizing that 
the prime minister responded to Diet questions by simply reading 
from prepared text, the opposition bloc intends to thoroughly attack 
the ruling coalition, with Upper House Chairman Azuma Koshiishi 
assuring: "We are determined not to allow one-way traffic this time. 
We will bring about a heated discussion." In the meantime, chances 
are expected to increase for powerful debaters from the government 
side, such as Defense Minister Ishiba and Health, Labor and Welfare 
Minister Masuzoe, to make replies. Verbal blows are likely to be 
traded between the ruling and opposition camps. 
 
From the DPJ, Policy Research Council Deputy Chairman Akira 
Nagatsuma will be sent as its questioner today. Tomorrow, former 
party presidents Naoto Kan, Seiji Maehara, and Katsuya Okada will 
take the floor as questioners. 
 
In the earlier representative interpellations at both houses, the 
main opposition party clarified its opposition to the government's 
new antiterrorism legislation to replace the current Antiterrorism 
Special Measures Law. In a meeting held earlier in the Upper House, 
Koshiishi already said in an attempt to contain the ruling 
coalition: "We will be able to submit a censure resolution against 
the prime minister to the Upper House and adopt it." 
 
In Budget Committee meetings, too, the DPJ will give priority to 
efforts to clear up the details of the MSDF operation over the 
contents of the new legislation. In particular, the party intends to 
urge the prime minister to bring out the truth of the allegation 
that fuel supplied to United States' warships by the MSDF was used 
in the Iraq war. 
 
5) Skirmish expected on new antiterrorism legislation today in Lower 
House Budget Committee; DPJ gearing up to pursue government over 
possible diversion of fuel for Iraq war 
 
SANKEI (Page 5) (Full) 
October 9, 2007 
 
The ruling and opposition parties will engage in a full battle of 
words in a session today of the Lower House Budget Committee. Prime 
Minister Yasuo Fukuda in his first attendance at the session after 
taking office as prime minister intends to explain the importance of 
the planned new "antiterrorism special measures law" (tentative 
name) in order for Japan to continue the Maritime Self-Defense 
Force's (MSDF) refueling mission in the Indian Ocean. 
 
Meanwhile, the major opposition Democratic Party of Japan (DPJ) 
 
TOKYO 00004715  006 OF 018 
 
 
intends to send three former party presidents, including current 
Deputy President Naoto Kan, to the session as interpellators and 
pursue the government about allegations that the fuel provided by 
Japan might have been diverted for the Iraq war. A fierce skirmish 
is expected in the session ahead of the government officially 
presenting an antiterrorism special measures bill to the Diet. 
 
The Liberal Democratic Party (LDP) plans to send Policy Research 
Council Chairman Sadakazu Tanigaki and former Defense Agency 
Director-General Gen Nakatani, who compiled an outline of the new 
bill, to the first-day session to answer questions from the 
opposition parties. During the session, Fukuda will explain the 
significance of the new bill. While calling on the DPJ to respond to 
talks with the ruling bloc on the bill, the government intends to 
forestall the DPJ's stance of opposing an extension of the refueling 
mission. 
 
Besides Kan, the DPJ plans to send former Presidents Seiji Maehara 
and Katsuya Okada as interpellators. They intend to bring up the 
suspicions that the MSDF might have refueled a US carrier which 
later took part in the Iraq war. 
 
On Oct. 5, the ruling bloc indicated an outline of the new bill at a 
meeting of the Diet affairs chiefs from the ruling and opposition 
parties and asked for discussion on the outline before the 
submission of the bill to the Diet. But the opposition bloc refused 
to hold talks on the outline with DPJ Secretary General Yukio 
Hatoyama arguing, "We can't respond to a closed-door session." Then 
the ruling bloc has regarded the "Budget Committee session as a 
forum to listen to the opposition bloc's requests," LDP Diet Affairs 
Committee Chairman Tadamori Oshima said. After deliberations in the 
Upper House Budget Committee, the government intends to obtain 
cabinet approval of the bill on Oct. 17 or later. 
 
The ruling parties want to somehow reflect the opposition bloc's 
views in the bill, but the opposition parties' stance is not to 
agree to extend the refueling mission. 
 
The DPJ's Policy Research Council Chairman Akira Nagatsuma, who is 
well-versed on the pension issue, will take the floor to question 
the government on the first-day session and query the prime minister 
and Health Minister Yoichi Masuzoe about how to deal with the 
missing records of payments of pension premiums. 
 
6) DPJ to go on the attack in the Lower House Budget Committee over 
MSDF refueling mission, politics-money scandal, pension issue 
 
MAINICHI (Page 2) (Abridged) 
October 9, 2007 
 
The House of Representatives Budget Committee will start basic 
question-and-answer sessions today in the presence of Prime Minister 
Yasuo Fukuda and the cabinet ministers. Emboldened by its big win in 
the July House of Councillors election, the main opposition 
Democratic Party of Japan (DPJ or Minshuto) will turn up the heat on 
the Fukuda government on three issues: whether to allow the Maritime 
Self-Defense Force (MSDF) refueling mission in the Indian Ocean to 
continue; the "politics and money" scandals, and the pension 
record-keeping fiasco. The government and ruling coalition, 
meanwhile, intend to increase the public's understanding of the MSDF 
refueling operations and pave the way for deliberations on a new 
antiterrorism bill through debate in the Budget Committee. 
 
TOKYO 00004715  007 OF 018 
 
 
 
The DPJ will have Deputy President Naoto Kan and former party heads 
Seiji Maehara and Katsuya Okada appear in the Budget Committee 
tomorrow to grill Fukuda, who will reply to Diet questions for the 
first time as prime minister. 
 
Kan and the other DPJ representatives will pursue mainly the 
allegation of the diversion of fuel provided by the MSDF to the Iraq 
war. Although the government and ruling camp aim to deliberate the 
new antiterrorism bill at committee meetings, the DPJ plans to press 
the government to disclose information on the MSDF activities, but 
it will not take part in a debate on the new legislation per se. 
 
Regarding the political money scandals, junior DPJ lawmaker Sumio 
Mabuchi will grill the prime minister over his political 
fund-management organization having rewritten receipts. The DPJ 
plans to submit to the current Diet session a bill requiring 
politicians to attach to their fund reports receipts for all 
expenditures of one yen or more. The party intends to attack the 
discord that exists between the ruling Liberal Democratic Party 
(LDP), which has decided to entrust a conclusion on standards to 
disclose receipts to future deliberations between the ruling and 
opposition camps, and its coalition partner, New Komeito, which has 
called for the need to attach receipts for expenditures of one yen 
or more. Akira Nagatsuma, deputy policy chief, will pursue the 
government over its mishandling of the pension-record keeping, as 
well as systematic problems with the pension system. 
 
7) Simulation on next Lower House election: If votes for JCP go to 
DPJ under JCP's new policy, ruling coalition would suffer crushing 
defeat 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
October 9, 2007 
 
The Japanese Communist Party (JCP) has set forth a new policy of 
strictly selecting candidates for single-seat constituencies in the 
next House of Representatives election. Following this, Tokyo 
Shimbun simulated the outcome of the election, based on data from 
the July House of Councillors election. As a result, it has been 
found that the Democratic Party of Japan (DPJ) would score 
significant gains, decreasing the number of seats of the ruling 
coalition of the Liberal Democratic Party and the New Komeito. 
 
In its Central Committee general assembly held last month, the JCP 
revealed the policy of significantly narrowing down its candidates 
for single-seat constituencies "in order to pour its current party 
capacities into the proportional representation segment effectively 
and positively," according to Chairman Kazuo Shii. Under the new 
policy, the JCP would (1) field candidates in districts in which the 
party garnered more than 8 PERCENT  of the total in the proportional 
representation segment in the Upper House election; and (2) put up 
its candidates in all prefectures. 
 
According to a simulation worked out based on this JCP new policy, 
the party would field candidates in 135 districts out of the 300 
single-seat constituencies. Assuming that those who voted for the 
JCP in the July Upper House election cast their ballots for the DPJ, 
the main opposition party would secure 168 seats in single-seat 
constituencies. With this figure added to the expected number of 
seats in the proportional representation segment, the DPJ would 
independently win a majority. In contrast, the ruling coalition 
 
TOKYO 00004715  008 OF 018 
 
 
would see the total number of their votes decrease to 212. 
 
Under a scenario in which half of the votes for the JCP flow to the 
DPJ, the main opposition would win 239 seats, close to the majority 
of 241. 
 
8) Ozawa's fund management body earns rent income from condominiums 
purchased with political funds: 10 million yen between 2002 and 
2006; Suspected of violation of Political Fund Control Law 
 
MAINICHI (Top Play) (Almost Full) 
October 9, 2007 
 
The Mainichi Shimbun has learned that Rikuzan-kai, Democratic Party 
of Japan (DPJ or Minshuto) head Ozawa's fund management body, 
purchased condominiums and has been earning income from them by 
renting them out to a consulting company and a legal foundation. It 
already has become an issue that the body had purchased more than 10 
properties with political funds. This is the first time its 
management of political funds using properties has come to light. 
The Political Funds Control Law bans political funds management 
bodies from depositing political funds into a savings account or 
managing such in a form of other than purchasing government bonds. 
Prefacing his remark with "This is my view in general terms," an 
official of the Internal Affairs Ministry said, "Earning rent income 
could be a case of violation of law." 
 
According to Rikuzan-kai's political funds report, the body has a 
condominium at Prime Akasaka, a bloc of condos in Minato Ward, 
Tokyo. S.A. Consulting rents, a consulting company, rents it. The 
body also has a condominium in Grand Akusu Kojimachi, a block of 
condos in Kojimachi, Chiyoda Ward. The International Grass-Roots 
Exchange Center, which is under the jurisdiction of the Foreign 
Ministry and the Ministry of Economy, Trade and Industry, rents it. 
The nominal owner of these condominiums in the registry book is 
Ozawa. 
 
S.A. Consulting has been a tenant since Jan. 2002, and the Exchange 
Center since Oct. 2004. They respectively paid 70,000 yen and 
200,000 yen per months to Rikuzan-kai. The rents they paid totaled 
approximately 10 million yen as of the end of 2006. S.A. moved out 
around the end of September. 
 
The Political Funds Control Law does not allow fund management by 
political organizations for purposes other than depositing them into 
a savings account, purchasing government bonds and 
government-guaranteed bonds and leaving then in trust with financial 
institutions that guarantee principals. The Internal Affairs 
Ministry pointed out that renting real estate purchased with 
political funds in order to earn rent income is suspected of falling 
under the category of the management of assets, an act banned under 
the law. 
 
Ozawa's office rebuts, noting that renting properties without charge 
is problem 
 
Ozawa's office rebutted by saying that renting real estate free of 
charge is not a problem. A person in charge maintained, "Our office 
has no perception that renting our property falls under the 
management of political funds. The consulting company undertakes 
contracts for Ozawa's policy planning. Mr. Ozawa was involved in the 
foundation of the judicial corporation. He serves as director at 
 
TOKYO 00004715  009 OF 018 
 
 
it." 
 
Rikuzan-kai purchased condominiums and land in Tokyo, Morioka City 
and Sendai City for a total of approximately 1 billion yen. Ozawa is 
the nominal owner of all those properties in the registry book. It 
was made an issue in January this year that these properties were 
purchased with office expenses. Showing the receipts, Ozawa 
explained that they are not his personal assets. He noted that when 
he pulls out of politics or when he dies, he would use the assets of 
Rikuzan-kai for assistance to the young and for the Japan-US and 
Japan-China Grass-Roots Exchange Fund. 
 
Following the revelation of Ozawa's acquisition of real estate, the 
Political Funds Control Law was amended in June this year. Political 
funds control bodies are now prohibited from possessing land and 
buildings other than those they had possessed before the amendment 
of the law. 
 
9) Japan early next week to inform US, Britain, other countries of 
MSDF's withdrawal from Indian Ocean 
 
NIKKEI (Page 1) (Slightly abridged) 
Eve., October 6, 2007 
 
The government will inform the multinational force led by the United 
States and Britain possibly early next week about withdrawing the 
Maritime Self-Defense Force (MSDF) now engaged in the refueling 
mission in the Indian Ocean on Nov. 1, when the Antiterrorism 
Special Measures Law is to expire. At one point the government had 
studied the possibility of keeping the MSDF in the ocean in the name 
of conducting a survey even after the expiry of the law, but out of 
concern of the public opinion, the government has decided to let the 
MSDF return home immediately. The supply vessels are expected to 
return home by late November. 
 
Although it had already become certain that the antiterrorism law 
would expire, the government has delayed informing other countries 
of the MSDF's withdrawal from the Indian Ocean in part because it 
has been making efforts to enact as quickly as possible a new law 
intended to continue the refueling mission. 
 
The multinational coalition naval command in Bahrain, the control 
tower of the ongoing cleanup operations in the Indian Ocean, usually 
determines the next operation about one month in advance. If Japan 
overly delays informing the concerned countries of its MSDF's 
withdrawal, it would cause trouble for them. The government 
presented an outline of new legislation to the opposition parties on 
Oct. 5, but they remained unwilling to holding prior talks with the 
ruling parties. As a result, the government judged it was an 
avoidable choice to inform the concerned countries of the MSDF's 
withdrawal, 
 
Coordination is underway for Foreign Minister Masahiko Komura to 
convey this decision to withdraw the MSDF to US Ambassador J. Thomas 
Schieffer and others. Chief of Staff Takashi Saito of the Joint 
Staff Office will inform the commander of the US Naval Forces 
Central Command/US 5th Fleet and others about this decision. 
 
Countries participating in the maritime interdiction operations to 
prevent movements of terrorists and weapons/narcotics are the US, 
Britain, Japan, France, Germany, and Pakistan. If Japan's MSDF 
withdraws from the Indian Ocean, the number of supply vessels 
 
TOKYO 00004715  010 OF 018 
 
 
working there will be reduced to two US vessels and one British 
vessel. Reportedly, every participating country has difficulties in 
newly deploying its supply ships. Given this, scaling down of the 
sea area to be covered by the interdiction operations and shortening 
the duration of the operations are likely to occur. 
 
The MSDF has provided some 480,000 kiloliters of fuel to the 
multinational force since December 2001. Of them, 79.5 PERCENT  has 
been provided to the US military. 
 
Pakistan is the country that would suffer most if Japan stopped 
refueling service because that country has relied on Japan's 
refueling. Pakistan is the only Islamic nation participating in the 
war on antiterrorism. Pakistan has given the impression that the 
mop-up operations against terrorism are not part of a religious war. 
 
 
10) Oil to Pakistan is likely to be a focal point at Diet 
 
YOMIURI (Page 4) (Abridged slightly) 
October 9, 2007 
 
In order to prove the need for continuing the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean, the government has 
repeatedly underlined the importance of providing Pakistani vessels 
with fuel. The government's explanation has drawn objections, 
however. In Lower House Budget Committee sessions scheduled to open 
today, opposition parties are likely to pursue the government's 
logic. 
 
The MSDF has been providing fuel and water to vessels of a total of 
11 countries in the Indian Ocean since December 2001 under the 
Antiterrorism Special Measures Law. Receiving some 19,000 kiloliters 
of fuel, Pakistan is the third largest oil recipient following the 
United States and France. 
 
At a press conference on Sept. 10, Vice Foreign Minister Shotaro 
Yachi said: "Explained in terms of automobiles, Pakistani vessels 
need high-octane gasoline, which can only be supplied by MSDF supply 
ships at present." US Ambassador to Japan Thomas Schieffer as well 
expressed his hope for a continued MSDF mission, saying that the US 
military cannot provide the quality of fuel the Pakistani naval 
vessels need. 
 
The commitments by Japan and the US to Pakistan, the only Islamic 
country participating in maritime interdiction operations (MIO), 
reflect their intention to send a clear message that the war on 
terrorism is not a narrow sectarian conflict. 
 
The government's explanation has raised some questions. 
 
In response to questions from Lower House lawmaker Kenji Eda, the 
government adopted at a cabinet meeting on Oct. 5 a written reply 
saying that the MSDF supply vessel equipped with a fuel purifier has 
been providing refined fuel to the Pakistani vessels, which require 
quality oil. 
 
To a question asking why it has to be an MSDF supply vessel, the 
written reply simply said without presenting any operational 
grounds: "President Musharraf has indicated that (refueling by the 
MSDF) was indispensable. It is a vital factor for the Pakistani 
vessels to remain in the MIO." 
 
TOKYO 00004715  011 OF 018 
 
 
 
But the view that fuel from such countries as the United States and 
Britain are unusable for the Pakistani vessels has drawn objections 
from within the MSDF, including Chief of Staff Eiji Yoshikawa, who 
said: "(A standard) supply vessel of any country is equipped with an 
oil purifier." The matter is likely to become a point at issue at 
the Diet. 
 
11) US denies diversion of use of MSDF fuel 
 
Yomiuri (Page 2) (Full) 
October 7, 2007 
 
By Aya Igarashi in Washington, D.C. 
 
It was learned on Oct. 6 that in response to the charge that fuel 
supplied by the Maritime Self-Defense Force (MSDF) in the Indian 
Ocean, based on the Anti-Terrorism Special Measures Law, the US 
Department of Defense was asked by the Japanese government to 
prepare a reply formally denying the fuel was diverted for other 
use. The Japanese government is considering using the US's formal 
reply to parry accusations by the opposition camp in the Diet. 
 
According to a source in the US government, the reply will deny any 
diversion, stating, "There was no use (of the fuel) other than as 
intended." To counter examples that have been cited of such 
diversion of use as the refueling of the Kitty Hawk, the contents of 
the reply will provide data about the actual situations. 
 
12) US hands Japan a reply that denies MSDF fuel used for Iraq war 
 
TOKYO SHIMBUN (Page 3) (Full) 
October 9, 2007 
 
WASHINGTON-The United States has officially denied in its answer to 
the Japanese government's inquiry that US naval vessels used 
Japanese fuel for the Iraq war, US Department of Defense officials 
confirmed yesterday. The Maritime Self-Defense Force has been 
refueling US naval vessels in the Indian Ocean under the 
Antiterrorism Special Measures Law. In this regard, those US vessels 
are suspected of having used MSDF-supplied fuel for the Iraq war. 
 
On this issue, Foreign Minister Masahiko Komura, appearing on a TV 
program aired Oct. 7, said: "I don't think they (US vessels refueled 
by the MSDF) went on Iraq operations. We have an answer like that 
from the United States." 
 
The Japanese government has not revealed anything in detail about 
the answer. However, the Defense Department apparently concluded 
that Japanese-provided fuel has not been used for any other 
purposes. At the same time, the Pentagon is also believed to have 
provided the Japanese government with information about the 
activities of those US naval vessels. 
 
However, the USS Kitty Hawk, a US aircraft carrier that participated 
in Iraq operations, was indirectly refueled by the Tokiwa, an MSDF 
supply ship, according to a civic group's findings. There is no 
knowing how far the US account will unveil the facts. 
 
13) Foreign and defense ministers call Japan's ISAF participation 
"unconstitutional"; deny diversion of MSDF fuel 
 
 
TOKYO 00004715  012 OF 018 
 
 
YOMIURI (Page 1) (Full) 
October 8, 2007 
 
In connection with the war on terror in Afghanistan, Foreign 
Minister Komura and Defense Minister Ishiba on Oct. 7 expressed 
their respective views (on television talk shows) that Japan's 
participation in the International Security Assistance Force (ISAF) 
that is bearing the burden of maintaining public security in 
Afghanistan -- as advocated by Democratic Party of Japan (DPJ or 
Minshuto) President Ozawa -- would not be allowed under the 
Constitution. Both cabinet ministers denied the allegation that oil 
being provided by the Maritime Self-Defense Force (MSDF) to US naval 
vessels in the Indian Ocean was being diverted for the Iraq war. 
They both laid down a clear difference in points of view between the 
ruling and opposition camps in the Diet. 
 
On the question of participation in ISAF, Ishiba, appearing on a 
TV-Asahi talk show, stressed: "If Japan were to participate (in 
ISAF), (Ozawa) must tell us properly what kind of use of weapons 
authority will the troops be given. (I would like to say to him) not 
to trifle with the lives of our servicemen. From the point of view 
of the government today, Japan's participation in ISAF which 
involves the use of armed force is not permissible under the 
Constitution." 
 
Komura, appearing on a Fuji TV program, took up Ozawa's assertion 
that "participation in ISAF, which is based on a UN resolution, does 
not violate the Constitution." He rebutted: "His thinking that as 
long as there is a UN resolution, the use of armed force is all 
right, but if there is no UN resolution, then even logistical 
support is no good is incompatible with government interpretation of 
the Constitution that has been consistent from long ago." In 
response, DPJ Deputy President Naoto Kan expressed his view that 
partial participation was possible." 
 
On the other hand, responding to the allegation of diversion of fuel 
supplied by the MSDF (in the Indian Ocean), Komura, appearing on an 
NHK talk show, stated clearly that in his view there has been no 
such misuse. He said: "I don't think that (US warships that received 
MSDF refueling) were engaged then in the Iraq war. We have had such 
a reply from the United States, as well." The US Department of 
Defense at the request of the Japanese government has prepared a 
reply denying any diversion of fuel. Komura indicated that the 
Japanese government had accepted that reply. 
 
Ishiba also stated on the TV Asahi program, "The Defense Ministry is 
analyzing material ordered up from the US, but our sentiment is that 
there has been no use of the fuel for another purpose." In addition, 
regarding the supplying of fuel to the supply ships of other 
countries, he said: "Once it is confirmed in some form that there 
was no diversion of that fuel, we will be able to continue to supply 
those supply ships. 
 
14) Nakagawa calls for party-head debate on ISAF participation 
 
YOMIURI (Page 4) (Full) 
October 9, 2007 
 
Former Liberal Democratic Party Secretary General Hidenao Nakagawa 
delivered a speech yesterday at Fuchu Town, Hiroshima Prefecture. In 
it, touching on Democratic Party of Japan (Minshuto or DPJ) 
President Ichiro Ozawa's call for taking part in the International 
 
TOKYO 00004715  013 OF 018 
 
 
Security Assistance Force (ISAF), Nakagawa said: "The government and 
ruling parties have said that such is a violation of the 
Constitution. Because the matter was raised by the president of the 
largest opposition party, a thorough debate must be held between 
Prime Minister Fukuda and Mr. Ozawa." Thus Nakagawa indicated that 
Ozawa must explain his interpretation of the Constitution at a 
party-head debate. 
 
Nakagawa also indicated that discussions among opposition parties, 
including the DPJ, were insufficient, saying: "What do the Japanese 
Communist Party and the Social Democratic Party think of Mr. Ozawa's 
interpretation of the Constitution? I wonder if such a view can band 
the DPJ members together. I would like to see thorough discussion." 
 
15) DPJ Vice President Naoto Kan on Fuji-TV program: "Humanitarian 
aid is within the scope of what Japan can do (in Afghanistan) 
 
SANKEI (Page 4) (Full) 
October 8, 2007 
 
In the following exchanges, Democratic Party of Japan (DPJ or 
Minshuto) Vice President Naoto Kan spoke about such issues as the 
Maritime Self-Defense Force (MSDF) refueling activities in the 
Indian Ocean. 
 
-- Will you reject requests by the government and ruling parties for 
talks between the ruling and opposition camps on the MSDF refueling 
issue? 
 
"The government has hardly provided any information about the 
contents of such activities for six years. We must listen fully to 
the report in the Diet. In addition, (the refueling operations) are 
not activities that are based on a UN resolution, but are activities 
connected to collective defense, so our basic argument is that they 
are a violation of the Constitution. I would like debate in the Diet 
to address these two issues. Consultations before the legislation is 
presented in the Diet is something that would only be done (if the 
DPJ and LDP) were coalition partners." 
 
-- What about President Ozawa's proposal for Japan joining the 
International Security Assistance Force (ISAF) in Afghanistan? 
 
"In principle, I agree with Japan's participation in activities 
centered on the United Nations. What kind of activity this would be 
will be something decided by each country, including Japan." 
 
-- Will our going along with this basic principle be in Japan's 
national interest? 
 
"Mr. Ozawa's belief lies in that, I think. The party will now debate 
that. Countermeasures to stop narcotics, constructing wells and 
waterworks, for example, as well as building schools, hospitals, and 
sewerage are all areas we can do. These are within the scope of what 
we can do." 
 
16) Japan, US under coordination to extend special accord on 
host-nation support for two to five years 
 
NIKKEI (Page 2) (Full) 
October 8, 2007 
 
The governments of Japan and the United States plan to extend a 
 
TOKYO 00004715  014 OF 018 
 
 
special agreement on Japan's host-nation support, which is due to 
expire on March 31, 2008. Coordination is underway to extend the 
accord for another two to five years. Now that it is viewed certain 
that the Maritime Self-Defense Force's refueling mission in the 
Indian Ocean will be temporarily halted, some observers are worried 
about its negative impact on the Japan-US alliance. The Japanese 
government apparently aims to prevent a split in the relationship by 
extending the accord. 
 
Even so, while some officials of the US government are calling for 
an increase in Japan's sympathy budget allocations, the Japanese 
government hopes to constrain its share given its austere fiscal 
conditions. There is still a gap in both sides' views on specifics 
to be determined by the end of this November. 
 
Then Foreign Minister Taro Aso and then Deputy Secretary of State 
Zoellick signed the special accord in Tokyo in January 2006. Since 
it was difficult to calculate how much it would cost to relocate US 
military bases in connection with US force realignment, the validity 
term of the accord was provisionally set at two years, though both 
sides had so far set the term at five years. Both sides are studying 
the possibility of extending it by three years, bringing the total 
period to five years. 
 
17) US calls on Japan to massively increase its financial burdens 
for the costs of US military utility charges 
 
SANKEI (Page 5) (Full) 
October 9, 2007 
 
It was learned that in Japan-US government-to-government 
negotiations on a new special agreement concerning Japan's sharing 
of the costs of stationing US Forces Japan (USFJ), the US side had 
called on Japan to increase its share of the USFJ's utility charges, 
such as electricity, gas, and water. 
 
The costs of maintaining USFJ in Japan for fiscal 2007 has come to 
217.3 billion yen. Of that amount, 25.3 billion yen has been 
earmarked as utility charges. Given that some MOD and MOF officials 
are calling for a cut in Japan's financial burden, the government 
finds it difficult to easily accept the US side's request for an 
increase in Japan's burden. 
 
The current special agreement is to expire in next March. The 
government wants to speed up government-to-government talks on 
concluding a new agreement so that under a new agreement, the 
government can appropriate the stationing costs in the next fiscal 
year's budget, but uncertainties lie ahead in the wake of America's 
request for an increase in Japan's financial burden. 
 
Japan's financial burden for stationing USFJ consists of two part: 
one for the Status of Forces Agreement (SOFA) intended to improve 
facilities, such as the USFJ's barracks and family housing, and one 
for the special agreement. 
 
The budget for the special agreement for this fiscal year amounts to 
140.9 billion yen. Of that amount, 115 billion yen is used to pay 
the basic salaries of base employees and pay the utility charges for 
USFJ. The US side has called on Japan to increase Japan's financial 
burdens on the grounds that the US military has reinforced its 
combat power in the Asia-Pacific region in order to counter the 
military threats of North Korea and China. 
 
TOKYO 00004715  015 OF 018 
 
 
 
18) USFJ asks for increase in utility costs in talks on new special 
agreement; Japan reluctant to meet the request 
 
TOKYO SHIMBUN (Page 1) (Abridged slightly) 
October 8, 2007 
 
In the ongoing Japan-US talks on a new special agreement on Japan's 
host-nation support, the US side has asked for a significant 
increase in Japan's share of utility costs at US military bases in 
Japan, citing the growing military burden on the US side. Japan is 
reluctant to comply with the request. 
 
The utility costs for fiscal 2007 are set at 25.3 billion yen. The 
specific amount asked by the US side is unclear. Given the situation 
that the special agreement now in force will expire next March, the 
government plans to settle the talks with the US before the end of 
the year and include the new utility costs in the FY2008 budget 
based on a new agreement, according to a Japan-US relations source. 
 
With the Antiterrorism Special Measures Law set to expire on Nov. 1, 
it now seems inevitable for Japan to temporarily halt the Maritime 
Self-Defense Force's refueling operation in the Indian Ocean. There 
is concern within the government that the conflict over Japan's 
host-nation support on top of the expected suspension of the Indian 
Ocean mission would strain relations between Japan and the United 
States. Even if an accord was reached between Tokyo and Washington 
on a new special agreement, the divided Diet is expected to face 
rough going about giving its approval. 
 
The host-nation support is based on two agreements: the status of 
forces agreement for the US military installations and US military 
family housing, and another special agreement. The host-nation 
support for FY2007 totals 217.3 billion yen, including 140.9 billion 
yen under the special agreement. Included in it are 115 billion yen 
in the base pay for people working at the US bases and the utility 
costs for US forces in Japan. 
 
Since this spring, the governments of Japan and the US have been in 
talks on the new special agreement. The US side has asked Japan to 
increase its host-nation support to bear its fare share of the 
costs, saying that the US forces have beefed up their military 
strength in the Asia-Pacific in order to contribute to the security 
of the region and counter military threats from such countries as 
North Korea and China. The US has asked for an especially large 
increase in utility costs. 
 
Meanwhile in Japan, some in the Finance and Defense Ministries and 
the Liberal Democratic Party are calling for a reduction in the 
host-nation support. 
 
19) F-15 deployment to Okinawa: Defense priority shifted to 
southwest against China's military buildup 
 
NIKKEI (Page 2) (Full) 
October 9, 2007 
 
The Defense Ministry and the Self-Defense Forces are shifting 
Japan's deployment of its defense capabilities to the southwest. The 
Air Self-Defense Force will deploy a wing of about 20 F-15 mainstay 
fighter jets to its Naha base in Japan's southernmost island 
prefecture of Okinawa, with the first batch of F-15s arriving there 
 
TOKYO 00004715  016 OF 018 
 
 
in fiscal 2008. The Ground Self-Defense Force will also deploy 
AH-64D Apache attack helicopters on a standing basis to its Metabaru 
garrison in Saga Prefecture. These deployments are aimed to watch 
out for China against its growing military spending. The SDF will 
buttress its defense of the Senkaku and other Japanese islands 
outlying in the East China Sea. 
 
Japan used to regard the former Soviet Union as its hypothetical 
enemy during the Cold War period, so the priority of Japan's defense 
capabilities was long shifted to its northernmost main island of 
Hokkaido. Meanwhile, the Defense Ministry, in its white papers, has 
noted a China threat. In addition, the SDF has already carried out 
counter-landing and other training exercises to provide for a 
potential occupation of Japan's outliers. However, the Defense 
Ministry will now review the SDF's current deployment of troops on 
the front for southwest-oriented defense. 
 
The ASDF currently deploys F-4 fighter planes to Naha. Meanwhile, 
China has been modernizing its air force at a high pitch. As it 
stands, the ASDF F-4s are now too old to vie with the Chinese air 
force, sources say. Japan has been falling behind schedule in its 
selection of the follow-on mainstay fighter jet model. For the time 
being, the ASDF will deploy a squadron of about 20 F-15 fighter jets 
from its Hyakuri base to Okinawa replace a Naha-based squadron of 
F-4 fighters. 
 
The deployment of F-15 fighter jets to Okinawa could rub China's 
nerves, so the Defense Ministry outwardly explains that the F-15 
deployment to Okinawa is only a sort of rotational redeployment. The 
ASDF's Hyakuri base has two squadrons, so the Defense Ministry says 
the ASDF does not have to use its superannuated F-4 fighters so 
frequently. The Defense Ministry also recounts that the base will 
not need additional infrastructure construction because RF-4E 
reconnaissance planes, which are of the same model as the F-4, have 
already been based there. 
 
However, one ASDF brass officer underscored the China threat. The 
ASDF scrambles its fighter jets against aircraft violating Japan's 
territorial airspace. In fiscal 2002, there were no scrambles 
against Chinese aircraft. In fiscal 2005, however, the ASDF made as 
many as 107 scrambles against Chinese aircraft. In fiscal 2006, the 
ASDF's scrambles against Chinese express decreased to 22. However, 
there is no doubt that ASDF fighter jets will now scramble more 
often, according to the ASDF officer. 
 
The Chinese air force has 331 fourth-generation fighter planes, such 
as the SU-27 and SU-30 developed by Russia and the J-10 developed by 
China itself. China has now as many fighter planes as Taiwan. 
 
The F-15 outranges the F-4, and it can be also refueled in flight. 
The F-15 is therefore superior in configurational performance and 
dogfight capability. In the meantime, US Forces Japan-already 
employing F-15 fighters at its Kadena airbase on Okinawa 
Prefecture-believes that increasing the interoperability of the US 
Air Force and the ASDF will serve to raise its deterrent effect on 
China. 
 
Japan and the United States have now agreed to realign the US 
military presence in Japan. In the process of realigning US forces 
in Japan, the US Navy will move 59 carrier-borne fighters from its 
Atsugi base in Kanagawa Prefecture to the US Marine Corps' Iwakuni 
base in Yamaguchi. This redeployment will also have a "psychological 
 
TOKYO 00004715  017 OF 018 
 
 
effect" on China, according to Japanese and US defense officials. 
 
The GSDF's Apache is a heavily armored and heavily equipped chopper 
with highly efficient radar that can simultaneously pick up more 
than 150 targets-and also with Japan's own air-to-air missiles on 
board. "It has high combat capability equivalent to one tank 
battalion (made up of about 40 tanks)," a GSDF brass officer said. 
"This chopper is fit to provide for an invasion of islands from 
Asia," the officer added. 
 
"At this point, the Japanese government is unlikely to say China is 
a threat," Foreign Minister Masahiko Komura said. "But," Komura 
added, "we have expressed our concern." The SDF will now likely 
proceed with its southwest-oriented defense posture further. 
 
20) Secret agreement between Japanese and US governments: 
Radioactivity of US warships would not be measured within fifty 
meters after port arrival 
 
AKAHATA (Page 1) (Excerpts) 
October 9, 2007 
 
It was learned from a declassified US document that international 
affairs researcher Akiharu Niibara obtained that the US and Japanese 
governments signed a secret agreement under which at the time of US 
Navy nuclear-powered vessels arrive in Japanese ports, monitoring 
for possible radiation leakage into the atmosphere would not occur 
within 50 meters, for reasons of military secrecy. The US government 
in a fact sheet related to the safety of US nuclear-powered vessels, 
issued last year in April, stated that in over 1,200 port calls by 
US nuclear-powered ships, "there has never occurred an increase in 
radioactivity higher than general background radiation." It has 
decided to deploy next year in August the Navy carrier USS George 
Washington to the US naval base at Yokosuka in Kanagawa Prefecture. 
However, with the discovery that there was an agreement exchanged 
not to record unusual figures right from the start, there are doubts 
about the "safety" that that US government has been repeatedly 
asserting. According to the memo dated Nov. 5, 1971, written by the 
Japan Desk of the State Department (Doakings (tn: phonetic) memo), 
when specialists of the Japanese government approached within five 
meters of the US Navy nuclear-powered submarine docked at Yokosuka 
in Nov. 1969, they recorded an increase in radioactivity. This 
incident led to the agreement of not monitoring within 50 meters in 
order to protect the secrecy of the data of the nuclear propulsion 
device. 
 
21) Japan mulls bearing expenses for North Korea's nuclear 
disablement 
 
NIKKEI (Page 2) (Full) 
October 9, 2007 
 
The government has begun looking into a possibility of shouldering 
costs for disabling North Korea's nuclear-related facilities. It 
will remain in its position of offering no economic assistance to 
the North unless there is any progress in the abduction issue. 
However, a senior Foreign Ministry official said: "Financial 
cooperation that would lead to the North's abandoning of nuclear 
weapons in the future is a different issue." 
 
The six-party agreement stipulates that the United States will pay 
initial costs for the nuclear disablement. The US will send a team 
 
TOKYO 00004715  018 OF 018 
 
 
of experts today to Pyongyang to discuss concrete procedures for the 
disablement and draw up a plan for it. 
 
22) DPJ Secretary General Hatoyama in Japanese-Russia forum says, 
"US involvement is necessary to resolve the territorial dispute" 
 
MAINICHI (Page 2) (Full) 
October 9, 2007 
 
Naoya Sugio, Moscow 
 
The "Japan-Russia Forum" was held on Oct. 8 in Moscow. Japanese and 
Russian lawmakers attended the forum. In his speech there, 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama, 
who headed the delegation of Japanese lawmakers, stated: "The United 
States is the country that historically complicated the territorial 
issue. We should get the US involved to resolve it." Moscow Mayor 
Yuri Luzhkov, head of the Russian side, however, stated: "It would 
difficult to resolve the territorial issue if the way to resolve the 
issue goes against Russia's national interests." 
 
It is said when Japan and the then Soviet Union negotiated a joint 
declaration in 1956, the two countries failed to conclude a peace 
treaty due to Japan's refusal of resolving the territorial dispute 
with the return of two islands -- the Shikotan Island and the 
Habomai islet group -- having come under pressure from the United 
States. 
 
DONOVAN