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Viewing cable 07TOKYO4766, JAPANESE MORNING PRESS HIGHLIGHTS 10/11/07

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Reference ID Created Released Classification Origin
07TOKYO4766 2007-10-11 01:51 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6301
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #4766/01 2840151
ZNR UUUUU ZZH
P 110151Z OCT 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8453
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 6067
RUEHFK/AMCONSUL FUKUOKA 3657
RUEHOK/AMCONSUL OSAKA KOBE 7321
RUEHNAG/AMCONSUL NAGOYA 2566
RUEHKSO/AMCONSUL SAPPORO 4367
RUEHBJ/AMEMBASSY BEIJING 9449
RUEHUL/AMEMBASSY SEOUL 5503
RUCNDT/USMISSION USUN NEW YORK 6358
UNCLAS SECTION 01 OF 12 TOKYO 004766 
 
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 10/11/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Antiterrorism law furor: 
4) Cabinet to adopt new anti-terror bill on Oct. 17 (Yomiuri) 
5) New anti-terror law to be limited to maritime interdiction 
operations (MIO), with no supplying of ships supporting Afghan air 
strikes (Mainichi) 
6) Pentagon releases details of MSDF refueling operations (Asahi) 
7) US, Japan fall in step in denying diversion of MSDF fuel for 
other than MIO purposes (Asahi) 
8) Opposition camp unconvinced by government's explanation of use of 
MSDF fuel, calls information released insufficient (Yomiuri) 
9) Exchanges in the Lower House Budget Committee on anti-terror 
issue (Yomiuri) 
10) Government rejects sounding out about Japan's ISAF participation 
(Tokyo Shimbun) 
 
DPJ's Ozawa on the move: 
11) DPJ President Ozawa tones down remarks on Japan's participation 
in ISAF's military operations (Mainichi) 
12) President Ozawa says that if any members of the DPJ are unhappy 
with his ISAF proposal, let them leave the party (Yomiuri) 
13) Former DPJ President Maehara: My views are different than Mr. 
Ozawa's (Sankei) 
14) SDP head Fukushima calls Ozawa's proposed ISAF participation 
would be unconstitutional (Tokyo Shimbun) 
15) Ozawa to sell legally-questionable real estate purchased with 
political funds (Tokyo Shimbun) 
 
Diet doings: 
16) DPJ submits two bills that are tax and fiscal related, but only 
to throw a monkey wrench into the budget compilation timetable 
(Asahi) 
17) Old feud between Tanaka and Fukuda families to be rekindled 
tomorrow as Makiko Tanaka grills Yasuo Fukuda in Diet 
interpellations (Yomiuri) 
 
18) Japanese university student abducted by insurgents in southeast 
Iran; Foreign Ministry forms task force (Yomiuri) 
 
19) Prime Minister Fukuda planning visit to US in mid-November 
(Mainichi) 
 
20) Chief Cabinet Secretary Machimura stresses that Fukuda's first 
overseas trip will be to the US (Sankei) 
 
21) Fukuda wants a comprehensive solution to North Korea issue 
covering nuclear and abduction issues (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Man held in killing of suicidal woman 
 
Mainichi: 
New refueling law to limit scope of MSDF mission 
 
TOKYO 00004766  002 OF 012 
 
 
 
Yomiuri: 
Japanese college student held captive in Iran 
 
Nikkei: 
Japanese steelmakers to double auto sheet output abroad in 3 years 
 
Sankei: 
Prime Minister Fukuda exposed to barrage of questions from DPJ at 
Lower House Budget Committee session 
 
Tokyo Shimbun: 
Tokyo District Court rules that utility of videotaping 
interrogations is limited 
 
Akahata: 
JCP lawmaker Sasaki pursues Prime Minister Fukuda at Lower House 
Committee: Higher burden on elderly, tax breaks for major companies 
 
2) EDITORIALS 
 
Asahi: 
(1) Doubts on the fuel diversion remain dismissed 
(2) 50 years of space age: Make best use of Japan's specialties 
 
Mainichi: 
(1) DPJ has not reached consensus on support for antiterrorism 
operations 
(2) Man in Toyama acquitted: Questions about lawyers and courts 
remain 
 
Yomiuri: 
(1) DPJ should submit own bill on ISAF participation 
(2) Time lost cannot be recalled even though man acquitted 
 
Nikkei: 
(1) Ruling, opposition camps should deepen policy debate to find 
common ground 
(2) European financial realignment without sense of exaltation 
 
Sankei: 
(1) Now is not time to come to conclusion on SDF participation in 
ISAF in Afghanistan 
(2) Japan-made airliners: Japan makes its dream reality 
 
Tokyo Shimbun: 
(1) Man acquitted: Prosecutors, lawyers, judges urged to reflect 
seriously 
(2) Make genuine efforts to promote gender-equal society 
 
Akahata: 
(1) Measures against global warming: Japan's response being tested 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 10 
 
NIKKEI (Page 2) (Full) 
October 11, 2007 
 
06:58 
Met with Deputy Chief Cabinet Secretary Ohno at the Kantei. 
 
TOKYO 00004766  003 OF 012 
 
 
 
09:00 
Lower House Budget Committee meeting. 
 
12:03 
Returned to the Kantei. 
 
13:00 
Lower House Budget Committee meeting. 
 
17:04 
Met with Chairman Mun Hui Sang of the South Korea-Japan 
Parliamentarian League. Finance Minister Nukaga, secretary general 
of the Japan-South Korea Parliamentarian League, was present. 
 
17:37 
Met with Takebe, head of the Party Reform Implementation 
Headquarters, at the Kantei. Then met with US Senator Daniel Inoue. 
 
20:08 
Arrived at his residence in Nozawa. 
 
4) New antiterrorism legislation to be approved in cabinet meeting 
Oct. 17 
 
YOMIURI (Page 4) (Full) 
October 11, 2007 
 
The government and ruling coalition decided yesterday that in order 
to start deliberations as early as the 18th at the House of 
Representatives, the cabinet of Prime Minister Yasuo Fukuda will 
approve in a meeting on Oct. 17 the new antiterrorism special 
measures bill aimed at continuing the Maritime Self-Defense Force's 
(MSDF) refueling mission in the Indian Ocean. In a meeting today of 
the Lower House Steering committee, they will propose their plan to 
the opposition camp. 
 
Interpellations at the House of Councillors Budget Committee are 
scheduled to run until the 17th. After the Upper House Budget 
Committee completes the question-and-answer sessions, a National 
Security Council meeting will be held. After this meeting, the 
Fukuda cabinet will hold a meeting to approve the new antiterrorism 
legislation for submission to the Lower House. The government and 
ruling camp intend to deliberate the legislation each and every day 
at the Lower House Special Committee to Prevent Terrorism and aim to 
pass it through the Lower House in early November. 
 
5) Japanese oil to be limited to MIO vessels; Warships supporting 
air strikes will be excluded, says Komura 
 
MAINICHI (Top play) (Excerpts) 
October 11, 2007 
 
Foreign Minister Masahiko Komura told the House of Representatives 
Budget Committee yesterday that the government would present new 
legislation allowing the Maritime Self-Defense Force to provide fuel 
only to the vessels taking part in the maritime interdiction 
operations (MIO) in the Indian Ocean. He thus indicated that the 
MSDF would not refuel warships supporting air strikes on 
Afghanistan. Komura was responding to a question by Katsuya Okada of 
the Democratic Party of Japan (Minshuto or DPJ). 
 
 
TOKYO 00004766  004 OF 012 
 
 
In posing the question, Okada said regarding the US-led Operation 
Enduring Freedom (OEF) that started in 2001 in Afghanistan that 
missile attacks and air strikes have been conducted on Afghanistan. 
In response, Komura admitted that the MSDF had temporarily refueled 
warships attacking Afghanistan as part of its logistical support, 
saying: "(At the initial stage of the OEF), the MSDF conducted its 
operations based on the right to self-defense (of the United States 
and other countries). The MSDF provided (fuel) under the 
Antiterrorism Special Measures Law in the OEF. After the 
establishment of the Karzai administration, the MSDF extended 
logistical support upon obtaining the concurrence of the 
administration." 
 
Komura also said: "There is no problem under international law. We 
recognize that the MSDF is not doing so at present." Okada further 
asked: "Can you say for certain that (warships refueled by the MSDF) 
will not directly strike or launch missiles at Afghanistan (in the 
future)?" In response, Komura said: "Such will not occur because the 
new legislation we are going to submit to the Diet will not allow 
them." 
 
6) Pentagon unveils details on MSDF fueling 
 
ASAHI (Page 2) (Full) 
October 11, 2007 
 
WASHINGTON-In February 2003, shortly before the Iraq war, a Maritime 
Self-Defense Force supply ship, codenamed "Tokiwa" and operating in 
the Indian Ocean under Japan's Antiterrorism Special Measures Law, 
indirectly refueled the USS Kitty Hawk, a US Navy aircraft carrier. 
In this connection, the Kitty Hawk is suspected of having used 
MSDF-supplied fuel for operations in Iraq. On this issue, the US 
Department of Defense announced on the morning of Oct. 10 (or 
yesterday evening Japan time) that the suspicion is "wrong." The 
Kitty Hawk consumed more fuel than the amount of MSDF-supplied fuel 
during a period of three days when she was engaged in Operation 
Enduring Freedom (OEF) against Afghanistan before her entry into a 
mission to watch Iraq in a northern area of the Persian Gulf, 
according to a Pentagon official. 
 
The Pentagon, in its Oct. 10 statement released for the Japanese 
media, unveiled the quantities of MSDF fuel supplies and other 
details. 
 
According to the statement, the Tokiwa refueled the Pecos, a US 
naval oiler, with 800,000 gallons on Feb. 25, 2003. Shortly 
thereafter, the Pecos supplied 675,000 gallons to the Kitty Hawk. 
Given that this fuel supply of 675,000 gallons from the Pecos to the 
Kitty Hawk was entirely provided by the Tokiwa, the Kitty Hawk could 
have consumed the 675,000 gallons in the light of her speed and 
operations within a three-day timeframe, the Pentagon says. 
 
7) Tokyo, Washington deny fuel diversion, attempt to bring issue to 
close 
 
ASAHI (Page 2) (Full) 
October 11, 2007 
 
The Maritime Self-Defense Force, which has been on a refueling 
mission in the Indian Ocean, indirectly refueled the USS Kitty Hawk, 
a US aircraft carrier, in February 2003. On this issue, the Japanese 
and US governments yesterday released data denying the suspected 
 
TOKYO 00004766  005 OF 012 
 
 
diversion of MSDF-supplied fuel for operations in Iraq. The two 
governments explained that the 675,000 gallons of fuel indirectly 
provided by an MSDF supply ship to the Kitty Hawk was "burned within 
a three-day time period" before her participation in Iraq 
operations. In the Diet, full-fledged debate kicked off, with the 
leading opposition Democratic Party of Japan (Minshuto) pursuing the 
suspected diversion of MSDF-supplied fuel in a meeting yesterday of 
the House of Representatives Budget Committee. However, the Japanese 
government wants to draw this issue to a close, saying it has now 
accounted for the matter. 
 
The government is preparing to make a cabinet decision on Oct. 17 to 
adopt a new antiterror legislation in order for Japan to continue 
the MSDF's refueling activities. 
 
However, the Kitty Hawk switched her mission to back up Operation 
Southern Watch (OSW) against Iraq three days after she received the 
fuel. Given this fact, her suspected fuel diversion cannot be 
completely denied. The opposition bench is poised to continue 
pursuing the suspicion. 
 
8) Opposition parties unconvinced by government's explanation on 
alleged diversion of MSDF-provided fuel for use in Iraq war 
 
YOMIURI (Page 2) (Full) 
October 11, 2007 
 
In a meeting of the House of Representatives Budget Committee 
yesterday, Defense Minister Ishiba denied the allegations that fuel 
provided by the Maritime Self-Defense Force (MSDF) to a US supply 
vessel in the Indian Ocean allegedly had been used in the Iraq war 
by disclosing the details of an explanation by the US government on 
the issue. The opposition camp, however, was not convinced with the 
government's explanation, criticizing it as insufficient. The 
showdown between the ruling and opposition parties is expected to 
escalate further. 
 
It has been suspected that the US aircraft carrier Kitty Hawk 
indirectly received fuel from a MSDF refueling vessel on Feb. 25 in 
2003 and then engaged in the war in Iraq. Over this charge of 
diversion, the government and the opposition bloc crashed head-on in 
the Budget Committee meeting yesterday. The point of contention was 
how the mission of the Kitty Hawk in the Persian Gulf was linked to 
the Iraq war. If it is proved true that the aircraft carrier had 
been involved in the Iraq war, the MSDF refueling service will be 
judged as violating the Antiterrorism Special Measures Law. 
 
Upon admitting that the Kitty Hawk had entered the Persian Gulf 
after it indirectly received fuel from the MSDF, Ishiba stressed: 
"The aircraft carrier consumed all the fuel within three days (from 
Feb. 25). The fuel was not used in operations in Iraq (joined by the 
aircraft carrier) in March. He also revealed that Japan had received 
similar explanations from the US government. 
 
Democratic Party of Japan (DPJ) Deputy President Naoto Kan assailed 
that it was unnatural for the Kitty Hawk in the Persian Gulf to fly 
aircraft toward Afghanistan in the reverse direction. He then 
emphasized: "It is natural to see that the aircraft carrier had 
engaged in monitoring activities in Iraq." 
 
Ishiba made this counterargument: "It is extremely irrational to 
reach the conclusion (that the MSDF-supplied fuel was used in the 
 
TOKYO 00004766  006 OF 012 
 
 
Iraq war), citing the reason that the aircraft carrier had sailed 
into the Persian Gulf." The basic plan in the Antiterrorism Law 
specifies "the Indian Ocean, including the Persian Gulf" as the area 
of supportive activities. However, even government officials say 
that the operations remain ambiguous, with a Foreign Ministry source 
commenting: "Although we hear that aircraft had flown from the 
Persian Gulf to Afghanistan, we were not informed of the details of 
the aircraft carrier's operations in the Persian Gulf, because such 
information is a military secret." 
 
Meanwhile, the DPJ is set to press the government to disclose 
information on the diversion allegation and the MSDF refueling 
operation. Vice President Katsuya Okada said: "Various questions 
have come up regarding the Antiterrorism Law. There are many matters 
on which information should be disclosed." 
 
9) Diet debate: Defense minister learns from US that amount of fuel 
provided by MSDF to USS Kitty Hawk was 675,000 gallons 
 
YOMIURI (Page 9) (Excerpts) 
October 11, 2007 
 
Refueling mission in Indian Ocean 
 
Kan (Democratic Party of Japan (DPJ)): On the morning of Feb. 25, 
2003, the Maritime Self-Defense Force (MSDF) supply ship Tokiwa 
refueled the US supply ship Pecos, and on the afternoon of that day, 
Pecos refueled the USS Kitty Hawk. In this regard, then Chief 
Cabinet Secretary Fukuda stated positively at a press briefing on 
May 9 that it would be impossible to use (the fuel provided by 
Tokiwa) for operations in Iraq. 
 
Prime Minister Fukuda: There was an error in collecting data. What I 
said at the time was incorrect. 
 
Kan: Which part of your remark at the time was wrong? 
 
Fukuda: I made two mistakes. First, the amount of fuel provided by 
Japan to the US supply ship (was 800,000 gallons in actuality) but 
it was mistakenly entered into the computer system as 200,000 
gallons. Afterwards, we on the part of the government explained that 
the amount of fuel provided by (Pecos) to Kitty Hawk was 800,000 
gallons, but we learned after inquiring of the US about this matter 
that the amount of fuel in question was 675,000 gallons. 
 
Kan: I have a suspicion that then Chief Cabinet Secretary Fukuda 
might have known that Kitty Hawk had headed for the Persian Gulf. 
 
Defense Minister Ishiba: Tokiwa refueled Pecos during the period 
from 6:30 a.m. through 10:00 a.m. of Feb. 25. The amount of fuel 
provided was 800,000 gallons. In order to join Kitty Hawk by noon, 
Pecos moved in the direction of the Strait of Hormuz. By around 
20:00 p.m. of that day, Pecos completed refueling Kitty Hawk. The 
amount of fuel provided by Pecos to Kitty Hawk was 675,000 gallons. 
After being refueled, Kitty Hawk passed the Strait of Hormuz by 
20:00 p.m. of Feb. 25 and was engaged in operations in the Persian 
Gulf. 
 
According to the US report shown to us in 2003, Kitty Hawk consumed 
some 20 gallons of fuel per day on average. We have been told by the 
US side that Kitty Hawk was engaged in Operation Enduring Freedom 
(OEF), and that after being refueled by Pecos, Kitty Hawk "consumed 
 
TOKYO 00004766  007 OF 012 
 
 
all the fuel" provided by Pecos in three days starting Feb. 25. 
 
Ishiba: The most important point is that Kitty Hawk was cruising for 
a considerably longer period of time at the high speed of 33 knots 
when it was passing through the Strait of Hormuz. It seemed that 
Kitty Hawk also was cruising at the high speed when it was engaged 
in several flight operations. I presume in these cases Kitty Hawk 
would have consumed more fuel than its average consumption. I 
therefore think the US side's explanation that (Kitty Hawk) consumed 
675,000 gallons in three days or by the end of February is highly 
reasonable. It is thought that the fuel provided would have been 
used for OEF. Operation Southern Watch (ODW) in Iraq started in 
early March. 
 
10) Government turns down request for participation in ISAF 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 11, 2007 
 
The Tokyo Shimbun learned yesterday that the government declined an 
unofficial request from countries participating in the International 
Security Assistance Force (ISAF) for the Self-Defense Forces' 
participation in their operations. 
 
More than one source revealed this. The sources said that the reason 
for the rejection is that it is constitutionally impossible to 
comply with such a request. Land operations by the ISAF involve more 
dangers than the Maritime Self-Defense Force's refueling operations 
in the Indian Ocean. In addition, the point has been made that such 
activities could be integrated into the use of armed force by other 
countries. 
 
11) Ozawa becomes cautious about joining ISAF military department 
 
MAINICHI (Page 3) (Full) 
October 11, 2007 
 
Democratic Party of Japan (Minshuto or DPJ) President Ichiro Ozawa 
held a press conference yesterday in which he exhibited cautiousness 
about directly joining the military department of the International 
Security Assistance Force (ISAF) in Afghanistan, saying, "I have 
questions about the ISAF's security operations." He also underlined 
the need to support the public welfare of Afghanistan, saying, 
"Above all, it is most important to bring stability to the general 
public." The DPJ's newsletter dated Oct. 5 carried Ozawa's statement 
that said: "Once our party holds the reigns of government, I would 
like to bring about Japan's participation in the ISAF." 
 
Touching on ISAF participation, Ozawa maintained in the press 
conference that an action based on a UN resolution is not 
unconstitutional, saying, "Our policy platform also says so." With 
cautious views inside and outside the party in mind, Ozawa also 
said: "There is a minority opinion, but party members must act in 
accordance with party policy. If they don't like it, there is no 
other option but to leave the party." 
 
Regarding the question of obtaining income from renting out 
condominiums purchased by his fund-management organization 
Rikuzan-kai with political funds, Ozawa indicated that he is 
considering selling one unoccupied condominium shortly and not 
receiving rental fees for another condominium from a foundation by 
letting Rikuzan-kai donate the rent to that foundation. He also 
 
TOKYO 00004766  008 OF 012 
 
 
revealed a plan to sell other properties after redeeming the loans. 
Regarding the Mainichi Shimbun's report on this problem, Ozawa said: 
"It is politically intended to libel me." 
 
12) Ozawa: Members opposed to his idea on ISAF should leave party 
 
YOMIURI (Page 4) (Full) 
October 11, 2007 
 
In a press conference yesterday, Democratic Party of Japan President 
Ozawa referred to his idea of Japan's participation in the 
International Security Assistance Force (ISAF) in Afghanistan and 
suggested that Japan's operations should be related mainly to 
livelihood-related aid. Ozawa said: "Public welfare activities are 
included in ISAF. I am skeptical of the ongoing security 
activities." He also said: "DPJ members should follow party policy 
that was decided on by a majority. Those who do not agree with this 
idea should leave the party." 
 
However, Vice President Seiji Maehara said in a panel discussion in 
Tokyo last night: "Views in the party have yet to be unified on the 
Antiterrorism Special Measures Law and antiterrorism operations." 
 
Social Democratic Party President Fukushima criticized the Ozawa 
idea in a press conference yesterday: 
 
"President Ozawa's idea is unconstitutional. It is now necessary for 
all opposition parties to take joint steps on the Antiterrorism 
Special Measures Law and new legislation to replace it in pressing 
the ruling camp to disclose related information. At such a time, why 
has he come up with such a proposal? It is hard to understand." 
 
13) Maehara points to difference in views with Ozawa 
 
SANKEI (Page 5) (Full) 
October 11, 2007 
 
Seiji Maehara, former president of the Democratic Party of Japan 
(Minshuto or DPJ), attended an open forum, held at a Tokyo hotel 
last night. Touching on President Ichiro Ozawa's proposal for 
joining the International Security Assistance Force (ISAF) in 
Afghanistan, Maehara said: 
 
"President Ozawa's view is different from mine. Views in the party 
have yet to be unified. I do not subscribe to the view that a 
country can do anything as long as there is a UN resolution. Many 
traditional DPJ members (since before the merger with the Liberal 
Party) find Mr. Ozawa's thinking disagreeable. Then again, we must 
all follow party policy." 
 
14) "Mr. Ozawa's stance is unconstitutional," says SDP President 
Fukushima 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 11, 2007 
 
Social Democratic Party President Mizuho Fukushima during a press 
conference yesterday criticized Democratic Party of Japan (DPJ or 
Minshuto) President Ozawa's proposal for participation in the 
International Security Assistance Force (ISAF), noting, "The 
standpoint of the Constitution does not allow the use of armed force 
in any circumstance. Mr. Ozawa's stance is unconstitutional." 
 
TOKYO 00004766  009 OF 012 
 
 
 
Fukushima also said, "I do not understand why Mr. Ozawa says such a 
thing at a time when opposition parties should press the government 
in unity to disclose information." 
 
15) "We will sell the properties in the near future," says DPJ head 
Ozawa 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 11, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ozawa, 
referring yesterday in news conference to the issue of Rikuzan-kai, 
his fund management body, earning rent income from condominiums 
purchased with political funds, said, "We are still repaying loans 
for other properties as well. However, since the repayment of loans 
will be over soon, we want to sell those properties." He revealed 
that he plans to sell more than ten properties owned by 
Rikuzan-kai. 
 
Regarding the body earning rent income, Ozawa explained, "At first, 
the plan was to rent them without charge. However, since the tenants 
later told us that they wanted to pay rent in some form or other, we 
charged them rent." He once again indicated his view that the case 
is not a violation of the Political Funds Control Law, which bans 
such transactions. 
 
16) DPJ to submit two tax, fiscal bills to Diet to undermine 
government budget compilation 
 
ASAHI (Page 1) (Excerpts) 
October 11, 2007 
 
The Democratic Party of Japan (DPJ) has decided to submit two bills 
- a bill related to fiscal resources and another bill related to tax 
reform - to an ordinary Diet session to be held early next year. The 
main opposition party intends to present ways to secure fiscal 
resources to implement its pledges for the earlier House of 
Councillors election. It also aims to play up its capability to 
assume political power by challenging the government on budget 
compilation. Meanwhile, even with an eye on a consumption tax hike, 
the Liberal Democratic Party (LDP) will shift priority to fiscal 
discipline and pose questions about the DPJ's stance of putting a 
consumption tax hike under seal. A dispute on fiscal resources may 
be taken up as a campaign issue in the next general election. 
 
The DPJ has decided to push ahead with work on legislation to 
coincide with the government's work to reform the tax system and 
compile a budget bill for next fiscal year. The LDP and the DPJ are 
likely to engage in fierce competition over specific measures to 
reform expenditures and revenues. 
 
The DPJ plans to compile early next year its own FY2008 budget bill 
that would include policies presented in its manifesto for the 
latest Upper House election. In an interview with Asahi Shimbun 
yesterday, Tax System Research Council Chairman Hirohisa Fujii said: 
"We will show a difference between the bills of ours and the LDP. We 
will represent the bases of the fiscal mechanism and the tax system 
in our bill." 
 
17) Another "Kaku-Fuku war"; Makiko Tanaka to question at Lower 
House committee session tomorrow 
 
TOKYO 00004766  010 OF 012 
 
 
 
YOMIURI (Page 4) (Full) 
October 11, 2007 
 
The main opposition Democratic Party of Japan (DPJ or Minshuto) 
decided yesterday to have former Foreign Minister Makiko Tanaka, an 
independent belonging to the DPJ's parliamentary group, appear as a 
questioner in a session tomorrow of the House of Representatives 
Audit and Oversight of Administration Committee, in which Prime 
Minister Yasuo Fukuda is expected to attend. Fukuda's father, former 
Prime Minister Takeo Fukuda, and Tanaka's father, former Prime 
Minister Kakuei Tanaka were engaged in a bitter political battle 
called the "Kaku-Fuku war," competing for the prime minister's 
post. 
 
A senior DPJ member said: 
 
 "We want Tanaka to grill the prime minister with her bitter tongue. 
As the second Kaku-Fuku war, the plan would attract public 
attention. The DPJ will not make any special requests so that she 
can pose questions in her own inimitable way." 
 
Fukuda was chief cabinet secretary in the first cabinet of Prime 
Minister Junichiro Koizumi, who sacked Tanaka from the foreign 
minister's post. He was called "shadow foreign minister" since he 
gave foreign ministry officials directions from the Prime Minister's 
Official Residence. 
 
18) Japanese college student kidnapped in Iran 
 
YOMIURI (Top play) (Excerpts) 
October 11, 2007 
 
The Ministry of Foreign Affairs (MOFA) established an emergency 
headquarters headed by Senior Vice Foreign Minister Itsunori Onodera 
in response to the information that a 23-year-old male Japanese 
college student had been kidnapped in Iran when he was traveling in 
Southeast Iran. 
 
According to MOFA, this Japanese man contacted the Japanese Embassy 
in Teheran on Oct. 8 and told it that "I was detained by someone." 
Since then MOFA has been collecting information about this case and 
also has telephoned Iranian Foreign Minister Motaki and asked for 
cooperation so that the detained Japanese man would be released 
safely. 
 
Upon confirming the information, MOFA has now judged that there is 
no doubt that the Japanese man was kidnapped. As for who kidnapped 
the Japanese man and what the kidnapper is demanding, MOFA said that 
"we can't reveal them." 
 
The security situation is aggravating in East Iran bordering with 
Afghanistan and South Iran as armed groups and security troops are 
clashing with each other. Foreigners have become the target of 
kidnapping and in fact, they have been detained in those areas. 
 
MOFA in its overseas travel information has given this advice about 
East Iran bordering with Afghanistan: "It is advisable to postpone 
traveling this area." Regarding Southeast Iran bordering with 
Afghanistan, where the Japanese man was kidnapped this time, MOFA 
has given this advice: "It is advisable to reconsider whether to 
travel there." 
 
TOKYO 00004766  011 OF 012 
 
 
 
19) Prime Minister to visit US in mid-November or later 
 
MAINICHI (Page 2) (Full) 
October 11, 2007 
 
Hirohiko Sakaguchi 
 
Chief Cabinet Secretary Nobutaka Machimura yesterday made mention of 
Prime Minister Yasuo Fukuda's first overseas trip as a prime 
minister in a speech given in Tokyo and noted: "I think the prime 
minister will presumably choose the United States as a county for 
him to visit as his first overseas trip. Although it is impossible 
to set his overseas trip within this month, we need to start 
preparations so that the prime minister can visit the US sometime in 
November." In this regard, a government source commented, "It is 
unlikely that the prime minister will visit the US sometime before 
Nov. 10, (until then the Diet is in session)," indicating that the 
prime minister would visit the US in mid-November or later. 
 
The prime minister's attendance at a summit of ASEAN plus Japan, 
China, and South Korea in Singapore slated for Nov. 20 has been 
already set. The prime minister's plan is to visit the US around 
that time and hold the first summit meeting with President Bush 
after taking office as prime minister. Following this plan, 
coordination is underway between Japan and the US. 
 
A high-level government official said yesterday, "It is desirable 
for the prime minister to travel to China early next year," 
revealing that coordination is underway for the prime minister to 
visit China in January. 
 
Also, Fukuda told reporters at the Prime Minister's Official 
Residence, "Japan-US relations form the basis of Japanese diplomacy. 
I need to visit the US first. I want to travel to Asian nations 
(after visiting the US)." Fukuda thus revealed that his US visit 
would come first. 
 
20) "The US will be the destination of the prime minister's first 
foreign visit," says Machimura 
 
ASAHI (Page 4) (Full) 
October 11, 2007 
 
Delivering a speech in Tokyo, Chief Cabinet Secretary Machimura 
yesterday noted that the government is now undertaking coordination 
in order to realize the prime minister's US visit. He said, "The US 
will be the first country Prime Minister Fukuda will visit." He 
said, "It is not true that the Fukuda cabinet will tilt toward China 
in one sweep, neglecting Japan's relations with the US. The 
selection of the US as the destination of his first foreign trip 
will send a message that he is attaching importance to Japan-US 
relations." Prime Minister Fukuda himself also said the same 
evening, "I had conversation with US President Bush. We talked that 
we should meet as soon as possible." 
 
21) Prime Minister Fukuda intends to modify the previous pressure 
line toward DPRK and "comprehensively resolve" the nuclear and 
abduction issue 
 
MAINICHI (Page 2) (Full) 
October 11, 2007 
 
TOKYO 00004766  012 OF 012 
 
 
 
Kahori Onaka, Ryuko Tadokoro 
 
In response to a Diet question about the North Korean issue 
yesterday, Prime Minister Yasuo Fukuda noted, "The important thing 
is to comprehensively resolve it," indicating his intention to 
comprehensively resolve a number of issues involving North Korea, 
including abductions of Japanese nationals, as well as nuclear and 
missile developments, and then to normalize diplomatic ties with 
that country. Fukuda was replying to a question by Seiji Maehara of 
the major opposition Democratic Party of Japan (DPJ) at a Lower 
House Budget Committee session yesterday. Fukuda gave a similar 
reply at a Lower House representative interpellation on Oct. 4. 
Although his predecessor, former Prime Minister Abe stated, "No 
diplomatic normalization without resolving the abduction issue," 
Fukuda has now again given the impression that he is shifting away 
from the former Abe administration's pressure line. 
 
Maehara asked what was the basis of the Fukuda administration's 
policy toward North Korea, arguing, "If you insist that Japan will 
not offer any assistance without any progress on the abduction 
issue, that will only limit a range of diplomatic approaches for 
Japan to make." In response, Fukuda said: "We need to resolve the 
abduction issue, but we also need to resolve the nuclear and missile 
issues. My basic stance is to make efforts to comprehensively 
resolve all of them, while keeping a balance between them." 
 
DONOVAN