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UNCLAS SECTION 01 OF 11 TOKYO 004843 
 
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 10/17/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
Battle over the anti-terror bill: 
4) Ambassador Schieffer denies diversion of MSDF fuel to Iraq, 
indicates important data will come soon (Nikkei) 
5) In concession to New Komeito, LDP agrees to limit new antiterror 
bill to a year, will present it to Diet today (Mainichi) 
6) Lawmaker Kenji Eda accuses MSDF of fueling US warship in 2006 
engaged in Iraq war (Asahi) 
7) MSDF destroyed crucial ship logs for Indian Ocean refueling, 
disregarding rule on storage of documents (Mainichi) 
8) Lost MSDF ship logs for Indian Ocean refueling create new sparks 
in Diet debate (Nikkei) 
9) Frustrated Prime Minister Fukuda, badgered by opposition on MSDF 
refueling issue, retorts: Whatever I say you won't agree anyway 
(Mainichi) 
10) Former JDA chief Nakatani scolded by Diet Affairs Committee 
Chairman Oshima for equating the Democratic Party of Japan (DPJ) to 
"terrorists" (Yomiuri) 
11) Ruling camp wishes to summon DPJ head Ozawa as witness during 
hearings on antiterror bill (Yomiuri) 
 
DPJ on the security move: 
12) DPJ starts working on own bill to counter the government's 
proposed new antiterror bill (Yomiuri) 
13) Ozawa says DPJ bill will call on civilians to assist the ISAF in 
Afghanistan, but repeats call for sending SDF, too, to that country 
for ISAF service (Mainichi) 
 
Defense and security issues: 
14) US, Japan conditionally agree to backburner proposed 
military-civilian joint use of Yokota Air Base (Asahi) 
15) Night-landing practice (NLP) at Iwoto (Iwojima) open to 
spectators for the first time in 10 years (Asahi) 
16) Japan wants to slash host-nation support to US forces in Japan, 
bogging down bilateral talks for a new special measures agreement 
(Sankei) 
17) Iwakuni mayor showing signs of flexibility in his opposition to 
transfer of Atsugi jets (Nikkei) 
 
18) Japan-DPRK informal talks lack sufficient material to make 
progress on the issues (Asahi) 
 
19) Russian foreign minister to visit Japan on Oct. 23 (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Government-affiliated laboratory found to have acquired hazardous 
bacteria in violation of internal rules 
 
Mainichi: 
Term of validity to be set at one year for new antiterrorism law in 
deference to New Komeito 
 
Yomiuri: 
 
TOKYO 00004843  002 OF 011 
 
 
MIC panel proposes banning unsolicited e-mail 
 
Nikkei: 
Mitsubishi Heavy Industries, Shell to use carbon dioxide from power 
plants to pump more oil 
 
Sankei: 
Mizuho Bank, ANA to tie-up on card business 
 
Tokyo Shimbun: 
7-year-old girl stabbed to death in Hyogo 
 
Akahata: 
Defense minister admits that MSDF-refueled US vessel bombed 
Afghanistan 
 
2) EDITORIALS 
 
Asahi: 
(1) School textbook companies must exhibit fairness regarding mass 
suicides 
(2) Japan Boxing Commission's punishment of Kameda family 
reasonable 
 
Mainichi: 
(1) Deep-ocean survey vehicle Chikyu expected to find answers to 
questions about major earthquakes 
(2) Good sportsmanship essential in the ring 
 
Yomiuri: 
(1) DPJ must speak its mind on global security issues 
(2) Leakage of arsonist's investigative records and news-gathering 
rules 
 
Nikkei: 
(1) Aim at FTA with EU from broad perspective 
(2) US resolution will harm alliance with Turkey 
 
Sankei: 
(1) Leaked investigative records on arsonist does not concern doctor 
alone 
(2) Japan Boxing Commission's punishment of Kameda family 
 
Tokyo Shimbun: 
(1) Kameda family punished 
(2) ROK presidential race and peace and prosperity 
 
Akahata: 
(1) Refueling mission must end 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 16 
 
NIKKEI (Page 2) (Full) 
October 17, 2007 
 
07:23 
Met at Kantei with Deputy Chief Cabinet Secretary Iwaki. 
 
08:20 
Attended cabinet meeting in the Diet building. 
 
TOKYO 00004843  003 OF 011 
 
 
 
09:00 
Attended Upper House Budget Committee session. 
 
12:00 
Met at Kantei with Deputy Chief Cabinet Secretary Futahashi. 
 
13:00 
Attended Upper House Budget Committee session. 
 
16:59 
Met in his office with former LDP Secretary General Nakagawa. 
 
17:20 
Met at Kantei with Chief Cabinet Secretary Machimura, followed by 
Economic and Fiscal Policy Minister Ota. 
 
18:10 
Met with Namibian President Pohamba. Attended afterwards signing 
ceremony to exchange official notes on grant aid for culture. 
 
19:11 
Hosted dinner party welcoming the Namibian president and his wife. 
 
21:17 
Return to his private residence in Nozawa. 
 
4) US envoy to release statement denying MSDF fuel diversion 
 
NIKKEI (Page 1) (Full) 
October 17, 2007 
 
Chief Cabinet Secretary Nobutaka Machimura and US Ambassador to 
Japan Schieffer met yesterday at the prime minister's office. In the 
meeting, Schieffer noted that the Maritime Self-Defense Force's 
current refueling mission in the Indian Ocean was "very important" 
not only for the United States but also for the international 
community. The ambassador expressed the hope that Japan would 
continue the MSDF's refueling activities. After the meeting, 
Schieffer answered questions from reporters and strongly denied the 
US military's suspected diversion of MSDF-supplied fuel for the Iraq 
war. He also revealed that the US government would shortly release a 
statement regarding this issue. 
 
Reporters asked if the US warships refueled by the MSDF participated 
in the Iraq war. "No, they didn't," Schieffer definitely said. 
"We've checked the records," he added. The ambassador also said, 
"Those refueled warships were used for Operation Enduring Freedom 
(in the Indian Ocean)." In addition, Schieffer also said he would 
shortly brief Japanese lawmakers on this matter. 
 
In his meeting with Machimura, Schieffer told him that President 
Bush was looking forward to Prime Minister Yasuo Fukuda's visit to 
the United States. Machimura said the alliance between Japan and the 
United States would consistently remain the basis of Japan's foreign 
relations for the Fukuda government as well. "We want to make our 
bilateral alliance even more rocksolid," Machimura said. 
 
5) Term of validity to be set at one year for new antiterrorism law 
in deference to New Komeito; Government to present bill to Diet 
today 
 
 
TOKYO 00004843  004 OF 011 
 
 
MAINICHI (Top play) (Abridged slightly) 
October 17, 2007 
 
The government yesterday unveiled the full text of a new 
antiterrorism legislation bill to continue the Maritime Self-Defense 
Force's refueling mission in the Indian Ocean. The new legislation 
limits the MSDF's activities to providing supplies, such as fuel oil 
and water. The government has also decided to set a one-year time 
limit for the new legislation, changing its earlier plan for two 
years, in deference to the New Komeito's call for ensuring civilian 
control. The government plans to convene Security Council of Japan 
and special cabinet meetings this evening to adopt the bill to 
present it to the Diet. 
 
The new antiterrorism legislation is intended to replace the 
Antiterrorism Special Measures Law, slated to expire on Nov. 1. The 
legislation is composed of 10 articles, including additional 
clauses. 
 
Under the article on purposes, the legislation says that the MSDF's 
contribution to the maritime interdiction operations is highly 
praised in UN Security Council Resolution 1776. Supply assistance is 
defined as contributing to the peace and security of the 
international community, including Japan. 
 
The areas of activities are also defined as the Indian Ocean, 
including the Persian Gulf, and the skies above it and the 
territories of Indian Ocean coastal countries. 
 
Under the law now in force, the areas of activities are specified in 
the basic plan. They are all included in the new legislation in 
outline. For this reason, the government has decided to make 
important matters that are not included in the law, such as the 
scale of the unit and equipment, subject to a cabinet decision, 
changing the basic plan into the "implementation plan." At the same 
time, the government has decided to eliminate the provision 
requiring Diet approval, on the grounds that the adoption of the 
legislation is tantamount to Diet approval. 
 
The government's draft plan was designed to set a two-year time 
limit on the new legislation and to require annual Diet reporting at 
the same time. But the New Komeito's strong objection to the 
two-year plan for the sake of civilian control has forced the 
government and the Liberal Democratic Party to revise the draft 
plan. 
 
Now that the term of validity is set at one year, reporting to the 
Diet is required only when the implementation plan is adopted or 
there are changes to it and when supply assistance is over. The new 
legislation can be extended for up to one year. 
 
Given heated Diet debates on the alleged diversion of Japanese oil 
for use in the Iraq war, some in the government had argued that the 
new legislation clearly mention the exclusion of oilers from the 
list of vessels receiving Japanese oil. But the government has opted 
not to do so out of consideration for the operations of foreign 
forces. 
 
6) Lower House member Eda points out record on MSDF refueling naval 
vessel engaged in Iraq war in 2006 
 
ASAHI (Page 4) (Full) 
 
TOKYO 00004843  005 OF 011 
 
 
October 17, 2007 
 
House of Representatives member Kenji Eda (independent) has pursued 
the allegation of diversion of fuel supplied by the Maritime 
Self-Defense Force (MSDF) based on the Antiterrorism Special 
Measures Law to the Iraq war. On this problem, Eda held a press 
conference in the Diet building yesterday and disclosed that the 
United States Navy mentions on its Web site that the MSDF's supply 
vessel Mashu refueled the US Navy's amphibious assault ship Iwojima 
in September 2006. The Web site also records that the US assault 
ship participated in the Iraq war in the Persian Gulf just after 
refueled by the MSDF. Pointing out that there is a suspicion of fuel 
diversion, Eda presented the government with questionnaire. 
 
The US Navy's Web site notes that the Iwojima was refueled by the 
Mashu on Sept. 4. In another page of the US Navy, there is this 
mention: "(The Iwojima) engaged in maritime safety activities and 
the Operation Iraqi Freedom." In the Diet, the Democratic Party of 
Japan is grilling the government over the charges that the MSDF 
supplied fuel directly or indirectly to USS Kitty Hawk and the US 
Aegis destroyer Paul Hamilton in 2003. 
 
Japanese Communist Party's House of Councillors member Akira Koike 
also said in an Upper House Budget Committee meeting yesterday that 
the Mashu refueled the Iwojima on Sept. 4 and 22 in 2006." Defense 
Minister Ishiba admitted this fact but denied the diversion 
allegations. 
 
7) MSDF discards supply ship's log book 
 
MAINICHI (Page 2) (Full) 
October 17, 2007 
 
In a meeting yesterday of the main opposition Democratic Party of 
Japan's (DPJ or Minshuto) Foreign and Defense Affairs Division, the 
Defense Ministry revealed that it had disposed of part of the 
logbook of the Maritime Self-Defense Force (MSDF) supply ship 
Towada, even though the storage limitation of the log book did not 
expire. Since the ministry has been making mistakes, such as the 
amount of oil supplied to a US supply vessel, the DPJ intends to 
strengthen its offensive in questioning such issues as the alleged 
diversion of fuel provided by the MSDF for use in the Iraq war. 
 
According to the ministry's explanations, the log book discarded 
covered the period of July to September 2003. Under the ministry's 
rule, the storage period is four years. The ministry mistakenly 
disposed of the logbook when it was sorting out logbooks this July. 
The ministry has taken a position that the disposal is not a 
violation of the law, and it will wait for the results of 
investigation. 
 
8) Discarding of log of MSDF supply ship providing fuel creates new 
sparks in Diet; DPJ to sharpen its attack 
 
NIKKEI (Page 2) (Excerpt) 
October 17, 2007 
 
In connection with the refueling operations of the Maritime 
Self-Defense Forces (MSDF) in the Indian Ocean, the issue of the 
Defense Ministry having discarded the refueling ship's log has 
created new sparks in the Diet. Although the government would like 
to obtain the understanding of the public by disclosing as much 
 
TOKYO 00004843  006 OF 011 
 
 
information as possible, the undeniable impression being given is 
that whenever it is inconvenient, the results are concealed. While 
there has been a rising trend of public approval for continuing the 
refueling services in opinion polls, there is deepening concern now 
in the ruling camp that the Democratic Party of Japan (DPJ) will 
attack the "enemy's mistake," and this could make public opinion 
suspect there was oil diversion. 
 
9) Prime Minister Fukuda irritated by questions from the opposition; 
"Whatever I say, you won't approve, anyway," he says 
 
MAINICHI (Page 5) (Full) 
October 17, 2007 
 
When answering a question by an opposition lawmaker about the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean 
at a House of Councillors Budget Committee session yesterday, Prime 
Minister Yasuo Fukuda said: "Whatever I say, you won't approve 
anyway." He seemed irritated. The prime minister has kept a low 
posture in responding to questions from the opposition parties in 
the current Diet session. In yesterday's session, he was unable to 
suppress his anger at the relentless pursuit by the opposition. 
 
The questioner was Japanese Communist Party Policy Chief Akira 
Koike. Pointing out that the USS Iwo Jima, which received oil from 
the MSDF in September last year, was engaged in air campaign in 
Afghanistan and the Iraq operation, Koike questioned Fukuda: "As the 
country that has Article 9 in the Constitution, is it possible to 
support (an air strike)?" 
 
Fukuda responded: "Why don't you make an effort to understand? I 
think there is a difference in our views. Whatever is discussed on 
this matter, the (JCP) won't approve (the refueling operation) 
anyway." He continued: "Japan does not provide support for the US 
force's air strikes on Afghanistan." 
 
Fukuda told reporters last evening with a forced smile: "I think 
both the foreign and defense ministers probably each gave three 
answers. If they say that we are not taking a low posture stance, 
that doesn't make any sense, does it?" 
 
10) Diet Affairs Committee Chairman Oshima admonishes Nakatani for 
statement equating DPJ to terrorists 
 
YOMIURI (Page 4) (Full) 
October 17, 2007 
 
Former Defense Agency Director General Gen Nakatani, in discussing 
the Maritime Self-Defense Force's (MSDF) refueling operation in the 
Indian Ocean, made a remark that can be taken as calling the 
Democratic Party of Japan (DPJ) terrorists. In connection with this 
controversial statement, Liberal Democratic Party's Diet Affairs 
Committee Chairman Tadamori Oshima met Nakatani in the Diet building 
yesterday and scolded him. 
 
Oshima told Nakatani: "We must assume a posture showing eagerness to 
obtain understanding from the DPJ (to continue the MSDF mission)." 
In response, Nakatani apologized to him, remarking: "I am sorry for 
causing trouble. I wasn't calling the DPJ a terrorist group." 
 
11) LDP indicates possibility of summoning Ozawa as witness if DPJ 
submits own antiterrorism bill 
 
TOKYO 00004843  007 OF 011 
 
 
 
YOMIURI (Page 4) (Full) 
October 17, 2007 
 
Liberal Democratic Party's Diet Affairs Committee Chairman Tadamori 
Oshima indicated yesterday that if the Democratic Party of Japan 
(DPJ) submits its own antiterrorism bill to the Diet, the LDP might 
summon its head Ozawa as an unsworn witness to the House of 
Representatives Antiterrorism Special Committee. 
 
12) DPJ starts discussion to work out own bill to counter new 
antiterrorism legislation 
 
YOMIURI (Page 4) (Full) 
October 17, 2007 
 
The Democratic Party of Japan (DPJ) started discussion at an 
executive meeting yesterday to work on its own bill to counter the 
new antiterrorism special measures bill which the government will 
adopt in a cabinet meeting today. 
 
In the meeting, President Ozawa said: "Japan should not join the 
main duty of the International Security Assistance Force (ISAF) in 
Afghanistan. I will not dispatch the Self-Defense Force (SDF) as a 
combat force. I would like to have the SDF participate in 
provisional reconstruction teams (PRT) composed of military 
personnel and civilians. The SDF should engage in stabilizing and 
promoting public welfare, such as training police officers and 
administrative officials. I would like to submit a counterproposal 
containing these measures." But some participants raised objections 
to submitting a counter bill to the Diet, with one pointing out: 
"Will the preparations for our replies in the House of Councillors 
be completed if we submit a counter bill now?" Reflecting such 
views, the meeting decided to have Ozawa and other executives make a 
judgment, while watching the situation in the Diet. 
 
As ISAF-related activities, the main opposition party has decided to 
incorporate in its own bill aid measures for public welfare, 
including education and medical services, as well as for 
reconstruction. The party will start a discussion on specifics at a 
meeting of the foreign and defense committees tomorrow. 
 
Speaking before reporters yesterday, Liberal Democratic Party Diet 
Affairs Committee Chairman Tadamori Oshima welcomed such moves by 
the DPJ, saying: "I think the DPJ is also making efforts out of 
recognition that fighting terrorism is necessary. It may be possible 
for both sides to discuss and come up with a definite plan based on 
a common perception." 
 
Speaking to reporters at the Prime Minister's Office last evening, 
Prime Minister Fukuda also indicated his expectation, saying: "I am 
closely watching what the opposition camp will do." 
 
LDP Secretary General Ibuki, however, raised questions in a press 
conference about the DPJ's stance, saying: "Secretary General 
Hatoyama and other members (once) supported the action plan (Diet 
approval for SDF dispatch under the Antiterrorism Special Measures 
Law) based on a law that President Ozawa says violates the 
Constitution. I wonder what logic the party intends to  use to 
compile its own counterproposal." 
 
A senior New Komeito member also quipped: "The DPJ should have had a 
 
TOKYO 00004843  008 OF 011 
 
 
good knowledge of the outline of the government's new antiterrorism 
legislation. The party should have submitted its own bill earlier." 
Some members in the ruling camp suspect that the main opposition 
party might be trying to delay the start of deliberations on the new 
legislation by submitting its bill. 
 
13) DPJ President Ozawa: SDF could participate in ISAF civilian 
assistance 
 
MAINICHI (Page 2) (Full) 
October 17, 2007 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa indicated his 
view in a party executive meeting yesterday that Self-Defense Forces 
(SDF) members, except for combat troops, could take part in the 
International Security Assistance Force (ISAF) in Afghanistan to 
provide civilian assistance. He envisages having SDF medical 
officers and a water supply unit participate in ISAF. Until now, he 
had not clarified his position on SDF participation. 
 
14) Japan, US shelve conditional agreement on Yokota base dual use 
 
ASAHI (Page 1) (Full) 
October 17, 2007 
 
In connection with the realignment of US forces in Japan, the 
Japanese and US governments were expected to agree this month on 
preconditions for the planned joint military-civilian use of the US 
Air Force's Yokota Base in Tokyo. However, the two governments are 
highly likely to forgo their concurrence, sources revealed 
yesterday. That is because the United States is opposed to 
commercial airline access to Yokota Base, according to Japanese 
government officials. The Japanese government has envisioned the 
dual use of the Yokota base as a 'showcase' of US military 
realignment. However, the dual use plan hit snags from its outset. 
The US government remains firm, the officials said. The dual use 
plan may even be shelved. 
 
It is now difficult to expect Japan and the United States to reach 
an agreement within the month, government officials revealed. 
 
In May 2006, Japan and the United States held a meeting of their 
intergovernmental security consultative committee and agreed on a 
roadmap for the realignment of US forces in Japan. The roadmap 
specifies a timetable regarding the proposed access of commercial 
airliners to the Yokota Base, noting that the Japanese and US 
governments will wind up their studies within 12 months. 
 
In October last year, the Japanese and US governments set up a study 
group on the issue of Yokota Base dual use. The two governments have 
held consultations since then, involving working-level officials 
from the Foreign Ministry, the Defense Ministry, and the Land, 
Infrastructure and Transport Ministry on the Japanese side. The 
Japanese government had been aiming to conclude the bilateral study 
within this month, as specified in the roadmap, on what is needed 
for Yokota Base's dual use as well as how to manage the base in its 
dual use. 
 
According to government officials, commercial airline flights are 
now becoming nearly saturated in the metropolitan area. Citing this, 
the Japanese government proposed translating Yokota's dual use into 
action at an early date. However, the United States noted that 
 
TOKYO 00004843  009 OF 011 
 
 
civilian aircraft access to the Yokota Base would cause problems not 
only from the perspective of capacity as a strategic hub but also 
from the perspective of security. The US government also asserted 
that commercial airlines can manage to fly without using Yokota AB 
for the time being. 
 
Japan and the United States finalized their agreement last year on 
US military realignment. After that, however, the United States 
stiffened its attitude. "There's no Koizumi-Bush relationship," a 
government official said. The official added: "Tokyo Governor 
Shintaro Ishihara has indicated that he would call for Yokota's 
reversion in the end, beginning with shared use. The US side is 
strongly concerned about this. That's why." 
 
Ishihara was elected Tokyo governor in 1999 for the first time. In 
his campaign at that time, Ishihara pledged dual use of Yokota Base. 
In the gubernatorial race for a third term as well, Ishihara gave 
top priority to the issue. 
 
15) US military's night landing practice opened to spectators for 
1st time in 10 years 
 
ASAHI (Page 31) (Full) 
October 17, 2007 
 
US Forces Japan yesterday opened its naval carrier-borne fighter 
jets' night landing practice (NLP) to the Japanese media for the 
first time in about 10 years. The NLP is currently conducted on the 
island of Iwoto (formerly called Iwojima) in the southern outlying 
island village of Ogasawara, Tokyo. FA-18 Super Hornet fighter 
attackers repeatedly carried out touch-and-go training at the 
island's airstrip as a flattop deck. 
 
The touch-and-go training began at 11:30 a.m., and it was conducted 
through the night with the participation of 16 Kitty Hawk-based 
fighter jets from the US Navy's Atsugi base in Kanagawa Prefecture. 
NLP has been mostly conducted on Iwoto since 1993 partly for the 
purpose of abating noise in the vicinity of the Atsugi base. 
Meanwhile, Japan and the United States reached an intergovernmental 
agreement in their talks over the realignment of US forces in Japan 
to move Atsugi-based carrier-borne fighters to the US Marine Corps' 
Iwakuni base in Yamaguchi Prefecture. In addition, the Japanese and 
US governments have also agreed to select a permanent facility in 
¶2009. 
 
16) Government to cut "sympathy budget": Talks with US could run 
into difficulty 
 
SANKEI (Page 2) (Full) 
October 2, 2007 
 
Concerning talks with the US to sign a new special agreement for US 
forces host-nation-support outlays (the so-called sympathy budget), 
the Japanese government yesterday decided to request a substantial 
cut in outlays for utility and water expenses. However, the US side 
has already requested a significant increase in outlays for such 
expenses, citing the need to counter threats from China and the 
DPRK. Talks between the two countries in the run-up to budget 
compilation are expected to be hard-going. Prime Minister Yasuo 
Fukuda and US President George Bush will meet in mid-November. This 
issue as well as continuation of the Maritime Self-Defense Force's 
refueling operations in the Indian Ocean will likely top the agenda 
 
TOKYO 00004843  010 OF 011 
 
 
of the summit. 
 
According to a source familiar with Japan-US relations, Japan 
disbursed 217.3 billion yen as host-nation-support outlays in fiscal 
¶2007. In this connection, the government has indicated its intention 
to discuss with the US the need for 140.9 billion yen stipulated in 
the special agreement covering salaries for US base employees (115 
billion yen) and utility and water expenses (25.3 billion yen) from 
scratch for further rationalization. 
 
The present special agreement came into effect last April with its 
term shortened from five years to two years from the perspective of 
allowing a drastic review at an early date. It will expire at the 
end of next March. 
 
The Japanese government wants to obtain Diet approval for the new 
agreement proposal during next year's regular session in order to 
extend the agreement by 1-5 years. Since it is necessary to 
incorporate necessary expenses into the fiscal 2008 budget, it wants 
to reach an agreement with the US by the end of November. 
 
The underlying trend regarding Japan's host nation support outlays 
is that it is necessary to constrain such, based on a report issued 
by the Council on Economic and Fiscal Policy seeking rationalization 
on the grounds of the nation's harsh fiscal situation. In addition, 
in view of the fact that Japan's host nation support outlays -- 
approximately 75 PERCENT  -- are higher than the ratios of other 
countries, a view calling for reduction the outlays is deep-rooted 
in the Finance and Defense Ministries, as one senior Defense 
Ministry official said, "The idea of treating US bases as a sacred 
cow will not obtain understanding from the people and opposition 
parties." 
 
The Council on the Fiscal System, an advisory organ reporting to the 
finance minister, in June this year pointed out, "Amid local 
governments and independent administration corporations making 
efforts to promote rationalization and boost efficiency, including 
cuts in personnel expenses, it would be necessary to properly review 
personnel expenses for US base workers." The panel also noted that 
the detailed use of utility and water expenses has not been 
disclosed. 
 
However, the US side has already requested a substantial increase in 
utility and water expenses, citing an increase in military expenses 
stemming from the situation in Northeast Asia, such as China and the 
DPRK. A Defense Ministry source said, "The issue could shake the 
Japan-US alliance, intertwined with the issue of extending the 
dispatch of Maritime Self-Defense Force personnel." 
 
17) Iwakuni mayor softens opposition to transfer of carrier-borne 
jets 
 
NIKKEI (Page 2) (Full) 
October 17, 2007 
 
Katsusuke Ihara, mayor of Iwakuni City, Yamaguchi Prefecture, who 
has been opposing the transfer of carrier-borne jets to US forces' 
Iwakuni Base, yesterday visited the Defense Ministry. He conveyed 
his intention to respond to talks on the issue to Parliamentary 
Secretary Minoru Terada, saying, "Opposition is not a premise for 
 
SIPDIS 
talks." He appears to have softened his stance, since the government 
suspended subsidies for the construction of a city government 
 
TOKYO 00004843  011 OF 011 
 
 
office. 
 
18) Materials that can bring progress to Japan-DPRK normalization 
talks lacking; Representatives of both countries hold informal 
talks 
 
ASAHI (Page 4) (Full) 
October 17, 2007 
 
The Fukuda administration's DPRK diplomacy aimed at settling the 
abduction issue has gotten underway with informal talks by 
working-level officials responsible for bilateral normalization 
talks held in Shenyang, China. Talks are expected to be held more 
frequently under Prime Minister Fukuda's policy of attaching 
importance to dialogue. With a view to improving relations with the 
US and South Korea, the DPRK is determined to wait and see what move 
Japan will make. 
 
The informal talks brought together Shigeo Yamada, director of the 
Northeast Asian Affairs Division of the Foreign Ministry and Song Il 
Ho, DPRK's ambassador in charge of normalization talks with Japan. A 
senior Foreign Ministry official said, "The meeting was held to make 
adjustment and preparations for the next round of meetings of the 
bilateral working group. However, no schedule was set." This 
official hinted at the possibility of holding more informal talks 
before the next working group meeting is held. 
 
Fukuda has taken a stance of attaching importance to dialogue, 
saying at an Upper House Budget Committee meeting yesterday, "This 
is a problem that cannot be settled unless there are talks." 
However, there are few materials that can bring progress in carrying 
out such talks. Japan does not intend to take part in providing 
heavy oil to the DPRK for the time being due to the abduction 
issue. 
 
"For the DPRK, which is enjoying favorable developments in its 
relations with the US and South Korea, there is no reason for the 
time being why it must come face-to-face with Japan," a senior 
Foreign Ministry official said. As General Secretary Kim Jong Il 
said during the recent South-North Korean summit, "I want to 
determine first what moves the Fukuda administration will make," 
there is the possibility of a situation in which both Japan and the 
DPRK will closely watch how the other party will move. 
 
19) Russian foreign minister to visit Japan on Oct. 23 
 
NIKKEI (Page 2) (Full) 
October 17, 2007 
 
The Foreign Ministry yesterday announced that Russian Foreign 
Minister Lavrov's visit to Japan is set for Oct. 23-24. He will meet 
with Foreign Minister Masahiko Komura and confer on such issues as 
the Northern Territories and economic cooperation in Eastern 
Siberia. 
 
SCHIEFFER