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UNCLAS SECTION 01 OF 13 TOKYO 004732 
 
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 10/10/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
War on terror in Afghanistan: 
4) 49 PERCENT  approve of continuing MSDF refueling operations in 
Indian Ocean, according to Yomiuri poll; Fukuda Cabinet support rate 
at 59 PERCENT  (Yomiuri) 
5) New anti-terror bill to allow continued MSDF services in Indian 
Ocean to be submitted to the Diet next week (Nikkei) 
6) US assures that there was no diversion of MSDF oil supplied for 
OEF/MIO in the Indian Ocean (Asahi) 
7) Defense Ministry: 90 PERCENT  of MSDF refueling in Indian Ocean 
went to US ships (Yomiuri) 
8) MOD: Since fiscal '04, no MSDF oil went to US supply ships in the 
Indian Ocean (Mainichi) 
9) Use of oil supplied to OEF-related warships in Indian Ocean was 
never clarified in the exchange of notes between US, Japan (Asahi) 
10) MOD: Those in charge who mistakenly recorded wrong MSDF 
refueling amount will be punished (Yomiuri) 
 
Defense issues: 
11) Prime Minister Fukuda: "Right of collective self-defense is not 
allowed" - taking opposite stance than his predecessor Abe (Tokyo 
Shimbun) 
12) Defense Minister Ishiba, Okinawa governor meet, but the gap over 
Futenma remains as wide as ever (Mainichi) 
13) Fukuda denies any secret agreement with US on nuclear weapons 
(Mainichi) 
14) US, Japan, Australia to engage in P3C joint drill (Nikkei) 
 
North Korea problem: 
15) Fukuda unhappy with reported statement by DPRK leader Kim Jong 
Il that there are no more abductees in North Korea (Tokyo Shimbun) 
 
16) US tells North Korea that if it expects removal from list of 
states sponsoring terrorism progress on abduction issue is 
indispensable (Mainichi) 
17) Concern mounting in government, LDP that Japan's renewed 
extension of sanctions of North Korea could hinder progress in 
bilateral talks (Mainichi) 
18) Fukuda does not rule out trip to Pyongyang if need arises 
(Mainichi) 
 
Political spotlight: 
19) Former LDP presidential contender Aso writes article stressing 
his policy differences from Fukuda and stating readiness to run 
again in election (Nikkei) 
20) LDP turns tables and attacks DPJ head Ozawa in the Budget 
Committee (Asahi) 
21) DPJ trying to control damage from reports of Ozawa's possibly 
illegal real-estate deals under political funds control law (Tokyo 
Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
MLIT to install 200-300 interchanges for ETC-equipped cars 
 
TOKYO 00004732  002 OF 013 
 
 
 
Mainichi: 
Labor Standards Supervision Office orders 1,679 firms to pay 
overtime 
 
Yomiuri: 
Police to build criminal case against former Paloma Industries 
president and senior officials over defective water heater deaths 
 
Nikkei: 
13 industries plan deep additional cuts in CO2 
 
Sankei: 
Mitsubishi Heavy Industries to begin accepting orders for Japan-made 
jet airliners 
 
Tokyo Shimbun: 
Prime Minister Fukuda at Lower House Budget Committee: The 
Constitution does not allow Japan to use the right of collective 
self-defense 
 
Akahata: 
Women's movement spreading in Asahikawa, Hokkaido 
 
2) EDITORIALS 
 
Asahi: 
(1) Prime Minister Fukuda should quickly come up with North Korea 
strategy 
(2) Life insurance firms must pay benefits 
 
Mainichi: 
(1) Continued sanctions on North Korea: Abduction issue must be 
resolved through bilateral negotiations 
(2) Politics and money: Ozawa should explain again 
 
Yomiuri: 
(1) DPJ is leading player behind the scenes at Lower House Budget 
Committee sessions 
(2) North Korea's nuclear program still threatens Japan 
 
Nikkei: 
(1) Life insurers must attach importance to policyholders and be 
true to words 
(2) France shifts to pro-US foreign policy 
 
Sankei: 
(1) Government should negotiate with Pyongyang on the premise that 
abductees are all alive 
(2) Research seismically active area in the Sea of Kumano 
 
Tokyo Shimbun: 
(1) Diet debate on pension issues: Government must show all data on 
pension records 
(2) Extension of sanctions on North Korea: Nuclear and abduction 
issues cannot be separated 
 
Akahata: 
(1) Diet debate on MSDF refueling mission: It has now clear that 
Japan's oil supporting war 
 
3) Prime Minister's Official Residence (Kantei) 
 
TOKYO 00004732  003 OF 013 
 
 
 
Prime Minister's schedule, October 9 
 
NIKKEI (Page 2) (Full) 
October 10, 2007 
 
08:05 
Met with Deputy Chief Cabinet Secretary Ohno at the Kantei. 
 
08:31 
Cabinet meeting in the Diet building. Then met with Chief Cabinet 
Secretary Machimura. 
 
SIPDIS 
 
13:00 
Lower House Budget Committee meeting. 
 
17:04 
Met with Secretary General Ibuki, followed by Lower House member 
Seiken Sugiura. 
 
17:29 
Met with Sadako Ogata, director of the Japan International 
Cooperation Agency. Then attended a Regional Revitalization 
Headquarters meeting. 
 
18:34 
Met with Asian and Oceanian Affairs Bureau Director General Sasae. 
 
19:41 
Returned to his residence in Nozawa. 
 
4) Poll: 49 PERCENT  want MSDF refueling continued; Cabinet support 
rate at 59 PERCENT 
 
YOMIURI (Page 1) (Abridged) 
October 10, 2007 
 
The approval rating for Prime Minister Fukuda's cabinet was 59.1 
PERCENT , the Yomiuri Shimbun found from its face-to-face nationwide 
public opinion survey conducted Oct. 6-7. The disapproval rating for 
the Fukuda cabinet was 26.7 PERCENT . In monthly face-to-face 
surveys taken shortly after the inauguration of new cabinets since 
the Ohira cabinet that came into office in 1978, the Fukuda cabinet 
ranked fourth in popularity, following the Koizumi cabinet (85.5 
PERCENT ), Hosokawa cabinet (71.9 PERCENT ), and Abe cabinet (70.0 
PERCENT ). By gender, women (63 PERCENT ) topped men (54 PERCENT ). 
The most common reason given for supporting the Fukuda cabinet was 
its stability with 44 PERCENT . 
 
In the survey, respondents were also asked how long they would like 
the Fukuda cabinet to continue. In response to this question, 32 
PERCENT  answered that they would like it to continue "as long as 
possible," topping all other answers. 
 
In connection with the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean, respondents were also asked if they 
wanted the MSDF's refueling mission to be continued. To this 
question, 47 PERCENT  answered "yes," with 37 PERCENT  saying "no." 
As seen from these figures, affirmative answers outnumbered negative 
ones. Among those who support the ruling Liberal Democratic Party, 
"yes" accounted for 69 PERCENT , with "no" at 22 PERCENT . Among 
those who support the leading opposition Democratic Party of Japan 
 
TOKYO 00004732  004 OF 013 
 
 
(Minshuto), "yes" was at 32 PERCENT , with "no" at 59 PERCENT . 
Those with no particular party affiliation were split in opinion, 
with "yes" at 39 PERCENT  and "no" at 42 PERCENT . 
 
5) Government expects to submit new antiterrorism bill to Diet next 
week 
 
NIKKEI (Page 3) (Full) 
October 10, 2007 
 
The government and the ruling coalition are aiming to start 
deliberations in a plenary session of the House of Representatives 
to be held next week or later on new legislation to extend the 
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian 
Ocean. They called on the opposition camp, including the Democratic 
Party of Japan (DPJ), to hold consultations on the legislation, but 
the DPJ declined this proposal. Given that the current Antiterrorism 
Special Measures Law is to expire on Nov. 1, they are keeping in 
mind the possibility of submitting the legislation to the Diet next 
year without obtaining the consent of the opposition camp. 
 
Liberal Democratic Party Diet Affairs Committee Chairman Tadamori 
Oshima told reporters yesterday: "We conducted debate (on the 
dispatch of SDF troops) for seven years. Even if we discuss the 
issue further, it is inconceivable that the debate will deepen," 
indicating the government would hasten the submission of the bill. 
The government and the ruling bloc plan to complete in a House of 
Councillors' Budget Committee meeting planed for Oct. 15-17 the 
intraparty procedures necessary to present the bill to an 
extraordinary Executive Council meeting. 
 
The government and the ruling parties aim to have the new bill 
passed the Lower House in early November. If they adopt the 60-day 
regulation stipulating that if a bill is not passed by the House of 
Councillors with 60 days after it was adopted by the Lower House, 
the bill shall be regarded as voted down, the compilation of a 
budget bill for next fiscal year will likely be delayed to early 
next year. 
 
Under a constitutional rule, if a bill that was rejected in the 
Upper House is readopted with more than two-thirds of all the votes 
in the Lower House, the bill will be enacted into law. But since the 
New Komeito is strongly opposed to this approach, coordination in 
the ruling camp is unlikely to go smoothly. 
 
6) US denies using MSDF fuel for Iraq war; Japan demands further 
evidence 
 
ASAHI (Page 1) (Full) 
October 10, 2007 
 
In February 2003, shortly before the Iraq war, a Maritime 
Self-Defense Force supply ship operating in the Indian Ocean under 
the Antiterrorism Special Measures Law indirectly refueled the USS 
Kitty Hawk, a US aircraft carrier. On this indirect refueling, the 
US government has told the Japanese government that the MSDF fuel 
was not used for Iraq operations, sources have revealed. The MSDF 
refueled the Kitty Hawk with 800,000 gallons. In this regard, the US 
government says the MSDF fuel provided to the flattop at that time 
was used for antiterror operations only. However, there are no 
grounds for that. The Japanese government has therefore asked the US 
government to come up with more materials, taking the position that 
 
TOKYO 00004732  005 OF 013 
 
 
the US government's account is insufficient. 
 
The US government's answer was given to the Japanese government on 
Oct. 5. "They say the USS Kitty Hawk was refueled with 800,000 
gallons," a government official said. "They also say the fuel was 
used for Operation Enduring Freedom (OEF) in Afghanistan," the 
official added. Meanwhile, the US government does not specify how 
the Kitty Hawk operated after receiving the MSDF fuel amounting to 
800,000 gallons (or 3,030 kiloliters), according to the official. 
 
The Japanese government therefore asked the US government to come up 
with additional documents. A senior Defense Ministry official said: 
"They say the Kitty Hawk used the entire fuel supply of 800,000 
gallons for antiterror operations, but this explanation alone is not 
good enough. We have to ask them to show military operations the 
Kitty Hawk was engaged in after she was refueled." 
 
Defense Minister Ishiba also stated before the House of 
Representatives Budget Committee in its meeting yesterday: "We asked 
the United States, and we confirmed that they did not do so (use the 
MSDF fuel for Iraq operations). We will have to look closely into 
what can endorse that." The Defense Ministry has also asked the US 
government to provide data about the activities of US supply ships 
in addition to the Kitty Hawk. 
 
The MSDF's indirect refueling of the Kitty Hawk was brought to light 
in May 2003 by Carrier Battle Group 5 Rear Adm. Moffit in his 
testimony. The Defense Agency at that time said the MSDF refueled 
the Kitty Hawk with 200,000 gallons (760 kiloliters). In September 
this year, however, Peace Depot, a Yokohama-based civic group, 
learned from the Kitty Hawk's log and other sources obtained under 
the US information disclosure system that the Kitty Hawk was 
refueled with 800,000 gallons. The government later revised the MSDF 
fuel supply to 800,000 gallons. After that, the Japanese government 
asked the US government to confirm whether the MSDF fuel provided to 
the Kitty Hawk was used for any other purposes. 
 
Meanwhile, the Defense Ministry yesterday made public the MSDF's 
fuel supplies to foreign naval supply vessels in the Indian Ocean. 
In 2001 and the following fiscal years, the MSDF's indirect 
refueling of foreign supply vessels totaled 267,000 kiloliters in 
105 fuel supplies. The MSDF made 87 fuel supplies for US vessels, 
adding up to 237,000 kiloliters. The MSDF's fuel supplies for US 
vessels accounted for about 89 PERCENT  of its entire refueling of 
foreign vessels. 
 
The MSDF refueled naval vessels from five countries-the United 
States, Britain, France, the Netherlands, and Italy. In FY2002, when 
US and British forces launched into attack operations in Iraq and 
the MSDF's fuel supplies sharply increased to 168,500 kiloliters, 
the MSDF's fuel supplies for US naval vessels amounted to 138,000 
kiloliters, accounting for a little over 80 PERCENT . 
 
7) 90 PERCENT  of MSDF fuel went to US supply ships 
 
YOMIURI (Page 2) (Full) 
October 10, 2007 
 
The Defense Ministry made public for the first time yesterday the 
amounts of fuel provided to supply vessels of other countries by the 
Maritime Self-Defense Force in the Indian Ocean under the 
Antiterrorism Special Measures Law. The MSDF provided a total of 
 
TOKYO 00004732  006 OF 013 
 
 
267,000 kiloliters of fuel on 105 occasions to foreign supply 
vessels from December 2001 through August 2007. Of that amount, the 
MSDF provided US vessels with 237,000 kiloliters of fuel, or 89 
PERCENT  of the total, on 87 occasions. 
 
In terms of fuel to the US by year, 96,000 kiloliters (41 times) was 
provided in FY2001, 138,000 kiloliters (45 times) in FY2002, and 
just 2,000 kiloliters (one time) in FY2003, the year the Iraq war 
began. 
 
As for countries other than the United States, France received 
13,000 kiloliters (7 times), Italy 7,000 kiloliters (4 times), the 
Netherlands 6,000 kiloliters (3 times), and Britain 5,000 kiloliters 
(4 times). They were all serviced in FY2003 or later. 
 
The MSDF has provided 484,000 kiloliters of fuel to foreign aircraft 
carriers and other vessels on 777 occasions. Of it, supply ships 
accounted for 55 PERCENT . 
 
8) No fuel supply to US oilers since FY2004: Defense Ministry 
 
MAINICHI (Page 2) (Full) 
October 10, 2007 
 
The Defense Ministry yesterday made public the quantities of fuel 
provided by Japan to foreign supply ships under the Antiterrorism 
Special Measures Law. This public announcement came after suspicions 
that US naval supply ships refueled by the Maritime Self-Defense 
Force in the Indian Ocean might have used MSDF-supplied fuel for the 
Iraq war. MSDF fuel supplied to US naval vessels accounted for 89 
PERCENT  of all MSDF refueling. However, MSDF fuel supplied to US 
supply ships decreased sharply in fiscal 2003, when the government 
was grilled in the Diet with questions asking whether MSDF fuel was 
being used for the Iraq war. In 2004 and the following fiscal years, 
there was no fuel supplied to such US vessels. 
 
According to the Defense Ministry, the MSDF refueled supply ships 
from five countries-the United States, France, Italy, the 
Netherlands, and Britain-with a total of 267,000 kiloliters 
servicing 105 times altogether during the period from December 2001, 
when the MSDF's refueling mission started, through the end of August 
this year. The MSDF's fuel supplies to US supply vessels added up to 
237,000 kiloliters. However, those fuel supplies were mostly made in 
FY2001-2002. In FY2001, the MSDF refueled US supply ships with a 
total of 96,000 kiloliters servicing them a total of 41 times. In 
FY2002, the MSDF refueled them with 138,000 kiloliters servicing 
them 45 times in total. In FY2003, the MSDF made only one fuel 
supply to a US supply ship, amounting to 2,000 kiloliters. 
 
The MSDF, in its refueling of other foreign naval vessels, made 
seven fuel supplies to France with 13,000 kiloliters, four supplies 
to Italy with 7,000 kiloliters, three supplies to the Netherlands 
with 6,000 kiloliters, and four supplies to Britain with 5,000 
kiloliters. In 2004 and the following fiscal years, the MSDF 
refueled these four countries' naval vessels. 
 
Meanwhile, the amount of MSDF fuel supplied to US supply vessels in 
FY2003 was four times larger than the figure in the government's 
parliamentary statement. In this regard, Defense Minister Shigeru 
Ishiba, sitting in on the House of Representatives Budget Committee 
yesterday, indicated that he would consider punishing officials in 
charge who made the mistake. 
 
TOKYO 00004732  007 OF 013 
 
 
 
9) Use of Japanese fuel not specified in exchanged notes 
 
ASAHI (Page 4) (Abridged slightly) 
October 10, 2007 
 
The government has often referred to the existence of official notes 
exchanged with other countries in denying the allegation that fuel 
provided by the Maritime Self-Defense Force in the Indian Ocean has 
been diverted for use in the Iraq war. Although the exchanged notes 
say that (fuel) is provided under the Antiterrorism Special Measures 
Law, they do not specify that fuel provided by the MSDF will not be 
used for purposes other than the antiterrorism operation -- grounds 
insufficient to deny diversion. This makes it difficult for the 
government to offer a convincing explanation. 
 
In a House of Councillors plenary session on Oct. 5, Prime Minister 
Fukuda made the following statement, citing the existence of 
exchanged notes: "The notes exchanged with oil-receiving countries 
say fuel is provided under the Antiterrorism Law. Fuel has been 
provided after confirming each time that the vessel was engaged in 
the antiterrorism operation after explaining the law's spirit. I 
understand that provided fuel has been used appropriately in line 
with the spirit of the Antiterrorism Law." 
 
The notes exchanged between Japan and the United States in November 
2001 say (fuel) is provided to the United States in accordance with 
the (Antiterrorism Special Measures) Law on the conditions that: (1) 
(fuel and other supplies) are used in ways consistent with the UN 
Charter as well, (2) fuel is not moved to parties other than the US 
military without the concurrence of the Japanese government, and (3) 
personnel concerned with the US military entitled to receive (fuel 
and other supplies) are informed of the conditions (1) and (2) from 
Japanese government officials. The notes are devoid of any 
references limiting the use of fuel to the antiterrorism operation. 
 
In fact, Deputy Director for Operations Brig. Gen. Holmes of the US 
Central Command responsible for the Middle East and Afghanistan 
indicated that he was not aware of Japan's explanation to limit the 
use of fuel to the antiterrorism operation. He did not clarify 
whether the US military had used the fuel from Japan strictly in the 
way explained by Japan. 
 
With the ambiguity of the exchanged notes in mind, Defense Minister 
Shigeru Ishiba told the House of Representatives Budget Committee 
yesterday: "Japan has exchanged notes with other countries saying 
that (fuel from Japan) is not used for purposes other than those of 
the Antiterrorism Law. That might not be enough, so matters are also 
worked out (with each country) in Bahrain before fueling." Based on 
data from the United States, Ishiba also pointed to the need for 
Japan to examine if there was no diversion, tacitly suggesting that 
the existence of exchanged notes alone was insufficient. 
 
The exchanged notes will automatically lose their validity when the 
Antiterrorism Law expires on Nov. 1. If the government establishes 
new legislation, new notes may have to be exchanged. The alleged 
diversion is likely to spark a debate on ways to create a 
diversion-free system in the envisioned new law. 
 
10) Defense Ministry to punish official who entered wrong data about 
fuel provided by Japan 
 
 
TOKYO 00004732  008 OF 013 
 
 
YOMIURI (Page 4) (Full) 
October 10, 2007 
 
In order to deal with the corrected data about the amount of fuel 
provided by a Maritime Self-Defense Force's (MSDF) supply ship to a 
US carrier under the Antiterrorism Special Measures Law, the 
Ministry of Defense (MOD) yesterday decided to punish a Maritime 
Staff Office official in charge of entering data into the computer 
system and his supervisors. Details of the punishment are under 
study. Reportedly, the official in charge and others received the 
information from a local unit that the MSDF ship Tokiwa provided 
about 800,000 gallons of fuel to the US supply ship Pecos on Feb. 
25, 2003, but they entered the amount of fuel provided by Japan to 
the US as about 200,000 gallons, which was the amount of fuel 
provided to another ship that day. 
 
11) "Exercise of right to collective self-defense is not allowed," 
says prime minister during Lower House Budget Committee meeting: 
Puts forward clear difference with previous administration 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
October 10, 2007 
 
A basic question-and-answer session continued at the Lower House 
Budget Committee yesterday afternoon, attended by Prime Minister 
Yasuo Fukuda and all cabinet ministers.  Referring to the 
government's interpretation of the Constitution that the exercise of 
a right to collective self-defense is forbidden, the prime minister 
expressed a negative view toward approving such use, saying, "Full 
caution is required in dealing with the issue of to what extent the 
exercise of the right to collective self-defense can be allowed as 
international activities from the perspective of the interpretation 
of the Constitution. The government interpretation has been that the 
Constitution does not allow the exercise of a right to collective 
self-defense, and there is no change in that." 
 
Former Prime Minister Shinzo Abe was positive toward approving the 
exercise of a right to collective self-defense and proceeded with 
discussion to pave the way for reviewing the government's 
interpretation of the Constitution. Fukuda seems to have put forward 
a clear difference from Abe's stance. 
 
12) No agreement reached in talks between defense minister and 
Okinawa governor on Futenma relocation 
 
MAINICHI (Page 2) (Full) 
October 10, 2007 
 
Ryuko Tadokoro 
 
Okinawa Gov. Hirokazu Nakaima yesterday met with Defense Minister 
Shigeru Ishiba in the Diet. This was the first meeting between the 
two after Ishiba took office as defense minister. They asserted 
their respective views about the relocation of the US military's 
Futenma Air Station (from Ginowan City) to the coastal area of Camp 
Schwab (in Nago City) and failed to reach agreement. 
 
Nakaima called for adding changes to the central government-proposed 
relocation plan, noting, "The base issue needs to obtain the 
Okinawan people's understanding and cooperation. I hope the central 
government will give consideration to the desires of the local 
residents in order to resolve the relocation issue as swiftly as 
 
TOKYO 00004732  009 OF 013 
 
 
possible." In response, Ishiba indicated a cautious stance, telling 
Nakaima: "I can't change the government's plan unless there is a 
rational reason." 
 
13) Prime Minister Fukuda denies existence of "Japan-US secret deal 
on nuclear weapons" 
 
YOMIURI (Page 4) (Full) 
October 10, 2007 
 
Prime Minister Fukuda late yesterday was asked by reporters at the 
Prime Minister's Official Residence about a memorandum proving a 
"secret deal" allowing the United States to bring nuclear arms into 
Japanese territory and allegedly concluded in exchange for the 
return of the US-occupied Okinawa islands. The memorandum was 
discovered at the US National Archives and Records Administration. 
Fukuda denied the existence of such a deal, telling reporters: "Such 
a thing has been brought up many times in the past. But Japan has 
not recognized it." Chief Cabinet Secretary Machimura also told 
reporters yesterday evening: "The US has its own rules about 
information disclosure and its own way of disclosing information. 
But we on the part of Japan have no intention to inquire of the US 
about that." Machimura thus stressed Japan had no intention to make 
inquiries about the issue to the US. 
 
14) Japan, US, Australia to conduct patrol plane drill 
 
NIKKEI (Page 2) (Full) 
October 10, 2007 
 
The Defense Ministry announced yesterday that Japan, the United 
States, and Australia would hold a joint exercise using P-3C patrol 
planes on Oct. 17. On the occasion of Australian Air Force's visit 
to Japan, Japan's Maritime Self-Defense Force (MSDF) and US Navy 
will take part in the drill off the west of Kyushu. P-3C patrol 
planes from the three countries will conduct a simulated drill aimed 
at improving communications and search-and-rescue activities, as 
well as simulating an attack on a Japanese escort ship. 
 
15) Prime Minister Fukuda indicates displeasure with Kim Jong Il's 
statement that there are no more abductees; "If it's true, he should 
say that to Japan" 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 10, 2007 
 
A South Korean government official who joined President Roh Moo Hyun 
on his recent visit to North Korea to attend the inter-Korean summit 
revealed that General Secretary Kim Jong Il of North Korea said, 
"There are no more Japanese abductees." The Japanese government 
indicated displeasure to this. However, since Kim has shown a 
positive stance toward improving Japan-North Korea relations, the 
government intends to confirm the fact in such settings as the 
bilateral working group and urge the nation to take concrete action 
to settle the issue. 
 
Concerning Kim's remark, Prime Minister Fukuda yesterday evening 
told reporters: "The remark was made to a third party. If that is 
true, he should say that to Japan." Foreign Minister Komura also 
underscored: "That remark is unacceptable. We will not be satisfied 
unless General Secretary Kim fulfills his accountability." 
 
 
TOKYO 00004732  010 OF 013 
 
 
Kim's remark is the same as his nation's usual stance that the 
abduction issue has been settled. Despite Japan's demand, there has 
been made no concrete progress, as Chief Cabinet Secretary Nobutaka 
Machimura said. The government yesterday, which marked the first 
anniversary of the nuclear test by North Korea, decided to extend 
its economic sanctions. 
 
However, it would be fairly difficult to see progress in the 
abduction issue, if Japan alone sticks to the policy of applying 
pressure, while other countries, including the US, are inclining to 
holding talks with that nation. 
 
As such, Machimura hinted at a flexible stance, saying, "We would 
like to consider our future response, based on North Korea's action 
regarding various pending issues, including the abduction issue." 
 
The Japanese government wants to obtain a sincere response from 
North Korea, by indicating a stance of responding to North Korea's 
call for settlement the past account through dialogue, while 
applying pressure by continuing economic sanctions. 
 
16) Giving consideration to Japan, US told North Korea that progress 
on the abduction issue is indispensable to delisting it as state 
sponsor of terrorism 
 
MAINICHI (Page 1) (Excerpts) 
October 10, 2007 
 
The Mainichi Shimbun has learned that the US government in 
unequivocal terms has informed North Korea -- which is calling for 
its name to be removed from the US list of state sponsors of 
terrorism -- that in order to be removed from the list, there must 
be progress on the issue of abductions of Japanese by North Korean 
agents. A US source, who is in a position of knowing the present 
state of US-DPRK talks, revealed this to a Mainichi Shimbun 
reporter.  This source also revealed that anticipating progress in 
the abduction issue, the US plans to remove the DPRK before year's 
end, following the implementation of the second-phase measure for 
denuclearization, as agreed at the six-party talks. 
 
The Bush administration has apparently given consideration to Japan, 
where the recent improvement of US-DPRK relations has generated the 
argument that Japan is being left behind. It has done so by keeping 
the abduction issue and removal of the DPRK from the list of state 
sponsors of terrorism as a set. 
 
This source revealed, "The US has conveyed to the DPRK that it would 
be very, very difficult to remove it from the list unless there is 
progress on resolving the issue the abductions of Japanese." 
Assistant Secretary of State Hill, top US envoy to the six-party 
talks, pointed out that he expects progress on the abduction issue 
this year, based on the outcome of US-DPRK talks. However, this 
source said, "It will be President Bush who makes a final decision 
on what can be regarded as progress." 
 
17) Concern growing in government, LDP about negative impact of 
extension of sanctions on Japan-North Korea talks 
 
MAINICHI (Page 2) (Excerpts) 
October 10, 2007 
 
The government decided in a cabinet meeting yesterday to extend its 
 
TOKYO 00004732  011 OF 013 
 
 
sanctions against North Korea for another six months. In response, 
concern is growing in the government and the Liberal Democratic 
Party about a negative impact of the decision on Japan-North Korea 
talks. They keep in mind the remark by North Korean leader Kim Jong 
Il in the earlier inter-Korean summit, "I want to carefully watch 
moves by the Fukuda administration." The government is expected to 
grope for a policy of dialogue with the aim of seeking the best 
timing for removing the sanction while maintaining its current 
policy of pressure for the time being. 
 
In a joint meeting of Liberal Democratic Party foreign affairs 
departments on Oct. 4, some lawmakers expressed concern that 
economic sanctions alone may have Japan-North Korea talks come to a 
dead end. The atmosphere in the meeting showed a change in views 
among lawmakers about policy toward North Korea as the Abe 
administration, which took the policy of pressure, was replaced by 
the Fukuda administration. 
 
In a session of the normalization working group between Japan and 
North Korea held in Mongolia, both sides agreed to continue 
dialogue, though there was no progress on the abduction issue. In a 
plenary session of the six-party talks in late September, too, Japan 
and North Korea confirmed they would make efforts to improve 
bilateral relations. 
 
18) Prime Minister Fukuda does not rule out possibility of visiting 
North Korea 
 
MAINICHI (Page 2) (Full) 
October 10, 2007 
 
When asked yesterday about the possibility of visiting North Korea 
and holding talks with General Secretary Kim Jong Il in order to 
break the impasse in the abduction issue, Prime Minister Yasuo 
Fukuda indicated that he might visit that country, depending on 
progress in Japan-North Korea talks, saying: "For the present, I 
have no intention to visit that country. But that would depend on 
progress in the talks."  He continued, "But such talks have yet to 
start. I can say it is too early to ask such a thing." Fukuda was 
replying to reporters at the Prime Minister's Official Residence. 
 
19) LDP's Aso: I will keep fighting 
 
NIKKEI (Page 2) (Full) 
October 10, 2007 
 
Taro Aso, former secretary general of the ruling Liberal Democratic 
Party (LDP), expressed his enthusiasm for running again in the next 
LDP presidential election, citing "conservative revitalization" as 
key words. He revealed his eagerness to run again for the LDP 
presidency in the monthly magazine Bungeishunju, put on sale today. 
He commented in the magazine on Prime Minister Yasuo Fukuda: "His 
thoughts and beliefs are different from the conservative 
revitalization trend in the LDP." Referring also to former Prime 
Minister Junichiro Koizumi, he said: "I was disappointed when he 
gave words of encouragements to the Fukuda government, which is a 
symbol of the old LDP." 
 
20) LDP assails DPJ with barrage of questions at Lower House Budget 
Committee session 
 
ASAHI (Page 1) (Excerpts) 
 
TOKYO 00004732  012 OF 013 
 
 
October 10, 2007 
 
The House of Representatives Budget Committee held a meeting 
yesterday for the first time under the government of Prime Minister 
Yasuo Fukuda. The meeting started with the ruling Liberal Democratic 
Party (LDP) strongly reacting to the assertion by Ichiro Ozawa, 
president of the main opposition Democratic Party of Japan (DPJ), 
that the Maritime Self-Defense Force (MSDF) refueling mission is 
unconstitutional. The ruling camp hammered the DPJ with questions. 
Prime Minister Fukuda made his view clear that the MSDF refueling 
operations do not violate the Constitution. Under the new "2007 
political structure," in which the DPJ is the largest party in the 
House of Councillors, DPJ's policies are now being targeted for 
debate in the Diet. 
 
Ozawa asserted in a monthly magazine published yesterday that the 
MSDF refueling mission is "unconstitutional." He also wrote that if 
his party held the reins of government, he would bring about Japan's 
participation in the International Security Assistance Force (ISAF) 
in Afghanistan which is backed by a clear UN resolution. 
 
LDP Policy Research Council Chairman Sadakazu Tanigaki, a questioner 
from the LDP, criticized Ozawa's view, saying: "The Self-Defense 
Forces (SDF) is not allowed to exercise armed force (overseas). I 
can't understand his view, which is utterly peculiar." A DPJ 
lawmaker, one of the Budget Committee directors, claimed that it was 
unfair to criticize Ozawa, since he was not present. There was a 
scene in which Budget Committee Chairman Ichiro Aisawa, an LDP 
member, warned LDP questioners. 
 
Tanigaki also threw doubts on the DPJ's policy measure to cut 15.3 
trillion yen in expenditures, which the leading opposition party 
included in its campaign pledges for the July Upper House election. 
He said: "It is not that easy. I want to discuss it with Mr. Ozawa." 
Finance Minister Fukushiro Nukaga stated: "The DPJ's policy does not 
mention how much and which areas would be cut." There followed a 
barrage of questions about Ozawa's policies and the LDP's. 
 
21) DPJ trying to reduce blow from reignited real estate problem 
involving Ozawa 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 10, 2007 
 
The Rikuzan-kai group, a fund-raising group for Democratic Party of 
Japan (DPJ) President Ichiro Ozawa, earned income by renting out 
condominiums it had purchased with political funds, it has been 
learned. On this problem, party executive members tried to contain 
the political damage from the issue yesterday. In January, it was 
also pointed out that the group had reported a huge amount of 
property acquisition costs as office expenses. The real estate 
scandal involving Ozawa is surfacing again. 
 
An official of the Rikuzan-kai group said in response to an 
interview with Tokyo Shimbun yesterday: "Although we could rent them 
out free of charge, since we were told it was necessary to invest in 
view of funds management, we decided to receive rental fees. It was 
not intended to make a profit and does not come under the management 
of political funds, which is prohibited under the Political Funds 
Control Law." 
 
DPJ Secretary General Yukio Hatoyama told reporters immediately 
 
TOKYO 00004732  013 OF 013 
 
 
after he returned from Russia: "I heard that the group decided to 
rent them out after consulting with the Internal Affairs and 
Communications Ministry. There should be no legal problem." 
 
Hatoyama further made a remark that sounded as if the report of 
Ozawa's real estate problem were a trap set by the Fukuda 
administration, claiming: "The new administration has launched an 
attack against the DPJ, motivated by the desire to prevent amendment 
of the Political Funds Control Law." 
 
The real estate problem involving Ozawa has come to light just after 
former House of Representatives Vice Speaker Kozo Watanabe resigned 
from the post of supreme advisor, taking responsibility for a 
political funds scandal. Given this, the problem will unavoidably be 
a serious blow for the DPJ. 
 
Recognizing anew that the real estate scandal is a time bomb for the 
DPJ, party members are worried, with one member remarking: "Even if 
this case is not a violation of the law, questions will be 
inevitably posed on why the office owns such expensive properties." 
 
 
Former Chief Cabinet Secretary Hiroyuki Hosoda of the Liberal 
Democratic Party lashed out at Ozawa in a meeting yesterday of the 
Lower House Budget Committee over this problem, stressing: "All 
politicians should purify themselves." As it stands, the 
DPJ-envisioned strategy of shaking the ruling camp over the 
politics-and-money problem has already begun to fall through. 
 
DONOVAN