VZCZCXRO7494
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #4954/01 2970136
ZNR UUUUU ZZH
P 240136Z OCT 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8866
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 6343
RUEHFK/AMCONSUL FUKUOKA 3933
RUEHOK/AMCONSUL OSAKA KOBE 7598
RUEHNAG/AMCONSUL NAGOYA 2802
RUEHKSO/AMCONSUL SAPPORO 4630
RUEHBJ/AMEMBASSY BEIJING 9689
RUEHUL/AMEMBASSY SEOUL 5743
RUCNDT/USMISSION USUN NEW YORK 6561

UNCLAS SECTION 01 OF 11 TOKYO 004954 
 
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 10/24/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Clash in the Diet: 
4) New antiterrorism law will not exclude any country from receiving 
MSDF refueling in the Indian Ocean (Asahi) 
5) Prime Minister Fukuda vows to put in every effort to pass the new 
antiterrorism bill (Yomiuri) 
6) Fukuda: Supplying oil in the Indian Ocean operation is "out 
international obligation" (Nikkei) 
7) Too many "adverse winds" for the ruling camp making it difficult 
for new antiterrorism bill to pass the current Diet session (Tokyo 
Shimbun) 
8) MSDF top brass apologies for missing refueling data and apparent 
cover up of the mistake (Mainichi) 
9) Dispute in the Diet over former Vice Defense Minister Moriya 
giving testimony in the Diet while deliberations of new 
antiterrorism bill going on (Sankei) 
10) DPJ unable to come up with a counterproposal to the government's 
antiterrorism bill (Nikkei) 
11) Tokyo University Professor Tanaka warns against lumping together 
Moriya scandal and deliberation over the new antiterrorism bill 
(Nikkei) 
 
Yamada Yoko defense-procurement scandal: 
12) Defense contractor took money from special account to wine and 
dine Moriya (Asahi) 
13) Former Yamada Yoko Corp. executive embezzled company money 
(Tokyo Shimbun) 
 
14) Okinawa governor presents views on Futenma relocation issue 
(Yomiuri) 
 
15) Foreign ministers of Japan, Russia agree to do their best to 
resolve the northern territories issue (Asahi) 
 
16) Growth line policy of the government giving way to fiscal 
reconstruction line under Fukuka cabinet (Mainichi) 
 
17) DPJ and PNP form united group in the Upper House of 119 
lawmakers (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Yamada Yoko builds slush fund under guise of executive remunerations 
 
 
Mainichi: 
Greenhouse gases need to be reduced by 14 million tons more to 
achieve target for industries 
 
Yomiuri: 
Ruling camp eyes legislation to subsidize hepatitis treatment 
 
Nikkei: 
Advisory panel estimates 5 PERCENT -7 PERCENT  hike in consumption 
 
TOKYO 00004954  002 OF 011 
 
 
tax to finance pension payouts 
 
Sankei: 
Communications Ministry announces measures to open up cellular phone 
market 
 
Tokyo Shimbun: 
Industries' targeted additional cut in greenhouse gas emissions at 
20 million tons, with four industries' 5.15 million tons under 
voluntary action plans 
 
Akahata: 
Lawmaker Akamine stresses need to pursue peace, calling for 
discontinuing support for retaliatory war in Lower House 
 
2) EDITORIALS 
 
Asahi: 
(1) New leaders of Chinese Communist Party expected to make China 
more open and transparent 
(2) Measures needed to prevent small villages from disappearing 
 
Mainichi: 
(1) Clearing up truth of hidden error in records of amount of 
supplied oil should be precondition for start of deliberations on 
antiterrorism bill 
(2) Accelerating fiscal coordination necessary to revitalize local 
economies 
 
Yomiuri: 
(1) DPJ must work out bill to counter government's new antiterrorism 
bill 
(2) "Imperial" democracy under Putin worrying 
 
Nikkei: 
(1) Quickly remove obstacles to deliberations on antiterrorism bill 
(2) Bill amending postal services worrying 
 
Sankei: 
(1) Deliberations on antiterrorism bill must be started 
(2) Government urged to take measures to help hepatitis patients 
 
Tokyo Shimbun: 
(1) China's new leadership shows limit to personnel decisions behind 
closed doors 
(2) Maintenance support system to be created to prevent accidents 
caused by deteriorated goods 
 
Akahata: 
(1) Big tax hikes will destroy nation 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 23 
 
NIKKEI (Page 2) (Full) 
October 24, 2007 
 
8:40 
Met Chief Cabinet Secretary Machimura, Defense Minister Ishiba, and 
Vice Defense Minister Masuda at his office in Diet building. 
 
 
TOKYO 00004954  003 OF 011 
 
 
09:01 
Attended a cabinet meeting. 
 
09:30 
Met Deputy Chief Cabinet Secretary Ono at Kantei. 
 
10:02 
Taped a video message at LDP headquarters for a Gunma chapter 
seminar in the presence of Gunma Gov. Osawa and others. 
 
10:26 
Returned to Kantei. 
 
13:03 
Attended a Lower House plenary session. 
 
16:15 
Met Regulatory Reform Council Chairman Kusakari and others at 
Kantei, followed by tourism promotion strategic council chairman 
Ushio and Economic and Fiscal Policy Minister Ota. 
 
17:33 
Attended an Education Rebuilding Council meeting. 
 
18:42 
Met former LDP Secretary General Nakagawa. 
 
19:41 
Returned to his residence in Nozawa. 
 
4) Government not to exclude any countries' tankers from receiving 
refueling service under new legislation 
 
ASAHI (Page 4) (Full) 
October 24, 2007 
 
The Diet began deliberations at a House of Representatives plenary 
session yesterday on a bill to continue the Maritime Self-Defense 
Force's (MSDF) refueling operation in the Indian Ocean. The 
government was studying the possibility of banning the MSDF from 
refueling other countries' tankers as a measure to prevent supplied 
fuel from being used in the Iraq war, but in the meeting, it 
indicated the possibility of continuing the service. 
 
New Komeito member Shigeyuki Tomita questioned: "Why didn't the 
government decide to restrict (in the bill) refueling tankers though 
such operations tend to cause diversion suspicions?" Chief Cabinet 
Secretary Machimura replied: "(Under the bill,) specific types of 
 
SIPDIS 
naval ships will not be excluded from the MSDF's refueling 
service." 
 
Prime Minister Fukuda expressed his strong eagerness to pass the 
bill in the current session, remarking: "When other countries are 
offering cooperation in the fight in Afghanistan while suffering 
casualties, is it acceptable that only Japan will drop out? As a 
person in the position of being responsible for securing the 
national interest, I cannot take such a view." 
 
Taking up a scandal in which the Maritime Staff Office left an error 
in records of refueling uncorrected and did not report it to 
superiors, Democratic Party of Japan member Yoshio Hachiro called it 
"a serious problem in terms of civilian control." In response, the 
 
TOKYO 00004954  004 OF 011 
 
 
prime minister apologized, saying: "Public confidence in the systems 
of the Defense Ministry and the Self-Defense Force to deal with 
office work was undermined." Regarding the issue of former Vice 
Defense Minister Takemasa Moriya's cozy ties with a trading firm 
specializing in military and aircraft equipment, the prime minister 
criticized Moriya, saying: "Public servants should have a high-level 
ethical viewpoint so as to be above suspicion." 
 
5) Prime minister promises to "put in full efforts to pass" 
antiterrorism bill, criticizes former Vice Defense Minister Moriya 
 
YOMIURI (Page 1) (Abridged) 
October 24, 2007 
 
The Lower House of the Diet entered into deliberations yesterday on 
the new antiterrorism special measures bill that will allow 
continued refueling operations by the Maritime Self-Defense Force 
(MSDF) in the Indian Ocean. Prime Minister Fukuda, commenting on the 
issue of the inappropriate relationship between former Vice Defense 
Minister Moriya and a defense contractor, criticized Moriya, saying, 
"A public official should be highly conscious of his actions so that 
suspicions of them will not be held by the public." He continued: 
"The government will carefully explain what happened as best as 
possible." Defense Minister Ishiba stressed: "It was truly 
regrettable that the vice minister was involved in unacceptable 
activities." 
 
Regarding the issue of corrected reports about the volume of oil 
supplied by an MSDF supply ship in 2003 to an American supply ship, 
the prime minister stated: "It is a problem of both damage to the 
trust held by the public and from the standpoint of civilian 
control. It is regrettable." In addition, he indicated that he would 
do his best to disclose information from now on. 
 
Regarding the new bill, the prime minister said: "Is it acceptable 
for only our country to walk away from the refueling operation? I 
would like the Diet to understand the situation by all means." He 
stressed that he would do his utmost to continue the operations. 
 
6) Refueling an international obligation: Fukuda 
 
NIKKEI (Page 1) (Abridged) 
October 24, 2007 
 
A government-introduced bill to continue the Maritime Self-Defense 
Force's refueling activities in the Indian Ocean entered into 
parliamentary deliberations in a plenary sitting of the House of 
Representatives yesterday afternoon. Prime Minister Yasuo Fukuda 
suggested the need for Japan to continue its efforts for the war on 
terror in cooperation with the international community. "This will 
lead to Japan's fulfillment of its international obligation and will 
be also in Japan's national interests," Fukuda stated. However, the 
opposition bench is strongly opposed to the legislation. It is 
therefore difficult for the legislation to get through the Diet 
during its current session. Meanwhile, former Administrative Vice 
Defense Minister Takemasa Moriya is expected to be summoned to the 
Diet on Oct. 29 as a sworn witness. 
 
In the House of Representatives, the Special Committee on Antiterror 
and Iraq Assistance Measures yesterday held a meeting of its 
directors from the ruling and opposition parties and discussed how 
to enter into substantive deliberations. The opposition bloc is 
 
TOKYO 00004954  005 OF 011 
 
 
concerned about Moriya's questionable ties with a defense equipment 
trading firm and the MSDF's cover-up of an error in the amount of 
its fuel supply to a US Navy tanker. 
 
The ruling and opposition parties have agreed to schedule the 
committee to hear the government explain why it presented the bill. 
They are still coordinating on other matters, such as when to summon 
Moriya as a sworn witness. 
 
7) Passing new refueling legislation during current Diet session 
difficult due to Moriya scandal and Defense Ministry's misreporting 
of fueling of US warship 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 24, 2007 
 
The dominant view in the ruling camp is that it will be difficult to 
pass the new antiterrorism measures bill during the current session 
of the Diet. The reasons are: the strong opposition of the main 
opposition Democratic Party of Japan (DPJ) to the bill itself; the 
allegation that former Administrative Vice Defense Minister Takemasa 
Moriya golfed with a former defense equipment trader executive; and 
the revelation the government misreported the amount of fuel 
Maritime Self-Defense Force (MSDF) provided to US warships in the 
Indian Ocean. Instead of passing the new legislation through the 
Diet, some members of the ruling coalition are now calling for an 
early ending to the current session in an attempt to avoid the 
Fukuda government suffering a fatal blow. A senior ruling Liberal 
Democratic Party (LDP) House of Councillors member complained about 
a feeling of battle-fatigue in the ruling camp yesterday when an 
explanation on the new bill was made at the House of Representatives 
plenary session, saying, "Everyone I met said let's close the Diet 
as early as possible." 
 
The current extraordinary session is scheduled to run until Nov. 10. 
In order to secure the time for deliberations on the refueling 
legislation, the government and ruling coalition have carried out 
coordination on a plan to extend the session for about one month 
until around mid-December in consideration of the compilation of a 
budget for fiscal 2008. 
 
Moriya's golfing scandal was brought to light on Oct. 19. The ruling 
bloc has now decided to accept the opposition's demand that Moriya 
be summoned to testify as a sworn witness, shifting its earlier 
stance. The sworn testimony will be carried out on Oct. 29. However, 
it is certain that the Moriya scandal will become a source of 
trouble for the new bill since there is no guarantee that the 
opposition will respond to full-scale deliberations on it 
afterward. 
 
It was revealed on Oct. 21 that the Defense Ministry had 
underreported the amount of fuel supplied by the MSDF to a US supply 
vessel (in 2003). Since the opposition camp has strongly reacted to 
this, a senior member of the New Komeito, the LDP's coalition 
partner, said, "Due to the ministry's cover up, it has now become 
even more difficult to pass the new legislation this Diet session." 
 
Following this, a mid-level LDP lawmaker asserted: "In order to 
limit damage caused by the Moriya scandal, it would be better to 
close (the Diet) as early as possible." The mid-level lawmaker also 
said: "To play up that the legislation was not enacted due to the 
DPJ's opposition, it would be good that the bill would be voted down 
 
TOKYO 00004954  006 OF 011 
 
 
in the Upper House after it clears the Lower House." 
 
8) MSDF chief of staff offers apology 
 
MAINICHI (Page 2) (Full) 
October 24, 2007 
 
Maritime Self-Defense Force Chief of Staff Eiji Yoshikawa in a press 
conference yesterday apologized for the cover-up of the amount of 
fuel provided to a US oiler by the MSDF, saying: "I take it 
seriously, and I am terribly sorry." Yoshikawa also announced his 
intention to report to Defense Minister Shigeru Ishiba this week on 
investigative results and punishments against those members 
involved. 
 
According to Yoshikawa, an MSDF supply officer responsible for fuel 
recognized the error after reading a newspaper on May 9, 2003, the 
day after then Joint Staff Council Chairman Toru Ishikawa announced 
that the amount was one-fourth of the actual volume on May 8. But 
the information did not reach higher-ups or internal bureaus beyond 
the supply division and the defense division responsible for the 
Diet. 
 
Although a dozen or so officers were interviewed, there still remain 
gaps in perceptions on the need to correct the amount of fuel. The 
force is closely examining communications with internal bureaus, 
such as the vessel arms division, that have the correct data as the 
MSDF, according to Yoshikawa. He also said: "It is extremely grave 
and serious that there were no reports to the higher-ups despite the 
fact that the division chief responsible for the matter was aware of 
the grossly erroneous data." 
 
9) Diet in chaos over summoning Moriya 
 
SANKEI (Page 1) (Abridged) 
October 24, 2007 
 
New antiterror legislation for special measures to continue the 
Maritime Self-Defense Force's refueling activities in the Indian 
Ocean is now before the Diet. The House of Representatives, in its 
plenary sitting yesterday, entered into deliberations on the new 
antiterror legislation, with the government explaining the 
legislation's purport. The Diet is expected to focus primarily on 
the legislation during its current extraordinary session. However, 
the lower chamber's debate yesterday was entirely on former 
Administrative Vice Defense Minister Takemasa Moriya's golfing and 
the MSDF's alleged correction of an error in the amount of its fuel 
supply. Meanwhile, the ruling coalition of the Liberal Democratic 
Party and New Komeito agreed to summon Moriya to the Diet on Oct. 29 
as a sworn witness. Instead, the ruling parties proposed expediting 
deliberations at the House of Representatives Special Committee on 
Antiterror Measures. However, the opposition bench rejected the 
proposal. As it stands, the ruling and opposition parties are now 
being bogged down in their battle of words. 
 
In the lower chamber's plenary session yesterday, the ruling and 
opposition parties were both concerned about Moriya's golfing with a 
defense contractor and other scandals involving the Defense 
Ministry. Yoshio Hachiro, representing the leading opposition 
Democratic Party of Japan (Minshuto), took the floor and urged the 
government to withdraw the new legislation, asserting that the 
government should first make public the Defense Ministry's 
 
TOKYO 00004954  007 OF 011 
 
 
cover-ups. 
 
Meanwhile, the ruling coalition did not defend the Defense Ministry 
and Moriya. The ruling parties feared that they could come under 
fire if they did. Also, the debate could be trivialized, so the 
ruling parties judged that they would lose an opportunity to make a 
public appeal on the significance of maritime interdiction 
operations and Japan's national interests. 
 
10) Diet deliberations on new refueling legislation begin, with 
government, ruling bloc clearly on defensive; DPJ having difficulty 
in producing counterproposal 
 
NIKKEI (Page 2) (Excerpts) 
October 24, 2007 
 
The Diet began full-fledged deliberations on a new refueling 
operation bill at a House of Representatives plenary session 
yesterday in which the government and ruling parties were clearly on 
the defensive. Although the Democratic Party of Japan (Minshuto or 
DPJ) is likely to gain momentum from the new legislation, the 
largest opposition party is also faced with the tough challenge of 
drawing up its own contribution measures replacing the refueling 
mission. 
 
The ruling bloc had initially planned to consider summoning former 
Administrative Vice-Defense Minister Takemasa Moriya as a sworn 
witness in the event the opposition camp continued scrutinizing the 
matter even after his unsworn Diet testimony. But the plenary 
session yesterday proceeded at the opposition bloc's pace, with DPJ 
shadow foreign minister Yoshio Hachiro demanding Moriya's sworn 
testimony as the condition for deliberations on the bill. 
 
The current Diet session ends on Nov. 10. In view of the 
government's and ruling camp's plan to compile the national budget 
for the next fiscal year as usual, the session cannot be extended 
beyond mid-December. Aware of the New Komeito's critical view of 
using an arm-twisting approach to running the Diet, the government 
and the Liberal Democratic Party remain cautious about taking a 
second vote in the Lower House following a rejection of the bill by 
the House of Councillors. Given the situation, enacting the new 
legislation in the current Diet session seems difficult even if the 
session is extended. 
 
11) Discussing scandal and new legislation as a set is a mistake, 
says University of Tokyo Prof. Akihiko Tanaka 
 
NIKKEI (Page 2) (Full) 
October 24, 2007 
 
The government must deal extremely strictly with an irregularity 
involving a big-budget government organization like the Defense 
Ministry. In the wake of a scandal involving former Vice-Defense 
Minister Takemasa Moriya, it is natural to discuss ways to increase 
discipline of civil servants. However, deliberations on the new 
legislation designed to continue the refueling operation in the 
Indian Ocean must not be delayed because of it. The scandal 
involving Moriya and others must be discussed separately from the 
new legislation. 
 
The logic that a country cannot make international contributions in 
any way unless the office responsible for implementing new 
 
TOKYO 00004954  008 OF 011 
 
 
legislation has a solid system, is unacceptable internationally. 
Even if there are systemic flaws that cause improprieties, a country 
must still play a responsible role in the international community 
while making efforts to correct them. Given the opposition camp's 
control of the House of Councillors, the government must avoid 
placing priority on domestic policy debates, for such would simply 
undermine national interests. 
 
12) Yamada Corp. found to have bank account for slush funds in name 
of remuneration for company executive; Money used for wining and 
dining 
 
ASAHI (Top Play) (Excerpts) 
October 24, 2007 
 
Asahi Shimbun has learned from an informed source that Yamada Corp. 
in Minato Ward, Tokyo, has a bank account to deposit slush funds in 
the name of remunerations for executives, including a former 
managing director (69). The credit balance reached approximately 9 
million yen as of five years ago. The money was presumably used to 
cover portions of the company's wining and dining expenses. Yamada 
Corp. supposedly spends more than 100 million yen a year to 
entertain clients. There is an allegation that the bank account was 
used to conceal the fact that the company wined and dined officers 
of the Self-Defense Forces. The Tokyo District Public Prosecutors 
Office Special Investigation Squad is investigating the case, 
listening to explanations from related sources, including former 
employees of Yamada Corp. 
 
According to a source familiar with Yamada Corp., the company has 
built up slush funds in a special bank account in order to use 
portions of remuneration paid to several executives, including the 
former managing director, who has been found to have treated former 
Administrative Vice Defense Minister Takemasa Moriya (63) to free 
rounds of golf, and wining and dining, as off-the-book money. 
Successive accountants have taken care of a bank book for that 
account. The credit balance stood at approximately 9 million yen at 
a time when there was a replacement of an accountant five years 
ago. 
 
Slush funds were presumably used to cover portions of the company's 
wining and dining expenses. When a company entertains clients on an 
official expense account, it needs to enter the names of 
participants and the place of wining and dining into its account 
book, attaching receipts. Yamada Corp. has built up slush funds to 
cover wining and dining expenses. Employees of the company are 
suspected of having tried to conceal their entertaining SDF officers 
as part of sales activities. 
 
One source revealed that since the company was unable to cover all 
of its entertainment expenses with its own entertainment allowance, 
it made about five of its affiliates shoulder its entertainment 
expenses as their own expenses. Such an amount allegedly reached 
several million yen a month. 
 
The special investigation squad is now checking accounting documents 
submitted by Yamada Corp. on a voluntary basis in order to determine 
the situation in which the company's side entertained SDF officers, 
including Moriya, over the procurement of equipment by the Defense 
Ministry. It appears that prosecutors have found the existence of 
the bank account for slush funds and the fact that money deposited 
in that account was used as secret entertaining expenses. 
 
TOKYO 00004954  009 OF 011 
 
 
 
The former managing director quit the company due to a confrontation 
with the company owner over management authority. He established 
Nihon Mirise in September 2006 and assumed the presidency. More than 
30 of his staffers joined him. The special investigation squad is 
also listening detailed explanations from them, such as the way they 
entertained clients. 
 
Moriya to be summoned to Diet possibly on Oct. 29, ruling camp 
proposes 
 
It seems likely that Moriya will be summoned as a sworn witness to 
the Lower House Antiterrorism Special Committee as early as Oct. 29 
over the issue of his being treated to free rounds of golf, and 
wining and dining by a former managing director of Yamada Corp. The 
ruling camp during a meeting of the committee on the 23rd proposed 
summoning Moriya. Though no agreement was reached on the proposal, 
the ruling and opposition camps will confer on the matter on the 
24th. The inquiry will focus on relations between Moriya and the 
former managing director and whether Moriya exercised his 
administrative authority over contracts awarded to Nihon Mirise 
established by the former managing director. Opposition parties 
intend to pursue Moriya over the refueling operation by the Maritime 
Self-Defense Force in the Indian Ocean. 
 
The ruling parties during an executive meeting held on the evening 
of the 23rd proposed that Moriya be summoned as a sworn witness on 
the 29th, after they explained their reasons for submitting a 
refueling assistance special measures legislation on the 24th and a 
questioning session was held on the 25th and the 26th. However, the 
opposition camp demanded that priority be given to summoning Moriya 
as a sworn witness, noting that summoning him as a sworn witness is 
a precondition for starting deliberations on the bill. In the end, 
both sides agreed that the ruling parties would explain their 
reasons for the submission of the bill on the 24th and then both 
sides would confer on a summoning schedule. 
 
13) Yamada Corp.: Former managing director suspected of diverting 30 
million yen from 100 million yen that company's US affiliate had 
taken charge of; Tokyo District Public Prosecutors Office dispatches 
investigators to US 
 
TOKYO SHIMBUN (Page 1) (Excerpt) 
October 24, 2007 
 
It has been learned from an informed source that a former managing 
director (69) of Yamada Corp. in Minato Ward, Tokyo, is suspected of 
having withdrawn approximately 100 million yen, which the company's 
US affiliate had taken charge of, and diverted at least 30 million 
yen. The Tokyo District Public Prosecutors Office asked US judicial 
authorities for investigative cooperation and dispatched public 
prosecutors to the US early this month. They appear to be pressing 
ahead with efforts to clarify the whole picture of the flow of 
unclear funds. 
 
14) Okinawa gov. to present statement on Futenma relocation 
 
YOMIURI (Page 2) (Full) 
October 24, 2007 
 
In connection with the pending issue of relocating the US Marine 
Corps' Futenma Air Station in the city of Ginowan, Okinawa 
 
TOKYO 00004954  010 OF 011 
 
 
Prefecture, to a coastal area of Camp Schwab, a US military base in 
the island prefecture's northern coastal city of Nago, Okinawa Gov. 
Hirokazu Nakaima formally announced in a news conference yesterday 
that he would present the Defense Ministry with his 'statement' on 
the government's procedural proposal to assess the possible impact 
of a newly planned US military facility on its environs. The 
government plans to build a V-shaped pair of airstrips across the 
camp's coastal area. Nakaima has withheld his acceptance of the 
government's environmental assessment plan, seeking to move the 
newly planned facility's location to an offshore area. 
 
Nakaima will consent to the government's proposal for an 
environmental assessment itself. In his statement, however, Nakaima 
will reiterate his request to lay down a sea-based facility in 
waters off Nago. 
 
15) Japanese, Russian foreign ministers agree on continued efforts 
to resolve Northern Territories issue 
 
ASAHI (Page 4) (Full) 
October 24, 2007 
 
Visiting Russian Foreign Minister Lavrov met his Japanese 
counterpart Komura at the Foreign Ministry's Iikura Guest House for 
about one hour yesterday. The two agreed that the two countries 
should continue efforts to find common ground to resolve the 
Northern Territories issue and conclude a peace treaty. Komura will 
also discuss these issues with Russian Deputy Prime Minister Sergei 
Naryshkin, who is scheduled to visit Japan on Nov. 5. 
 
After the meeting, Komura lauded the Russian government's positive 
stance about resolving the territory issue, saying: "Continued 
talks, as well as both sides' desire to reach an agreement, are 
essential." 
 
Meanwhile, Lavrov stressed the need to promote a comprehensive 
bilateral relationship, including economic cooperation and personnel 
exchanges. He said: "The key point is that settlement measures 
should be acceptable ones. It is also crucial that they will be 
accepted by the public and the parliament (in Russia) in the 
future." 
 
16) Growth-policy line may be rolled back; Junior LDP members invite 
Heizo Takenaka to their study group 
 
MAINICHI (Page 5) (Excerpt) 
October 24, 2007 
 
Nine junior to mid-level Liberal Democratic Party (LDP) lawmakers 
who were close to both former prime ministers Koizumi and Abe have 
formed a study group in the Diet titled, "Project Japan Revival." 
They have invited former Internal Affairs Minister Heizo Takenaka to 
be their adviser, and are stressing the need for a growth policy 
aimed at raising taxes as the economy grows, as well as fiscal 
reconstruction, which were advocated by under the Koizumi and Abe 
administrations. Under the Fukuda administration, the argument for 
raising the consumption tax has appeared, and with the resignation 
of Abe as prime minister, the old-guard forces who formerly had 
little clout are bringing about a noticeable rollback of the former 
policy line. 
 
17) DPJ, PNP forms parliamentary group in Upper House 
 
TOKYO 00004954  011 OF 011 
 
 
 
YOMIURI (Page 4) (Excerpts) 
October 24, 2007 
 
The largest opposition Democratic Party of Japan (DPJ or Minshuto) 
and the small opposition People's New Party (PNP) finally formed a 
parliamentary group yesterday in the House of Councillors. The DPJ, 
which holds a near majority of the Upper House seats, and the PNP, 
which has submitted a bill reviewing the government's 
postal-privatization program, have agreed to unite anticipating a 
possible early dissolution of the House of Representatives and a 
snap election. The parliamentary group will have a membership of 119 
-- 115 from the DPJ and four from the PNO -- just three seats short 
of the 122 needed for a majority in the Upper House. 
 
In a party-head meeting at noon yesterday, DPJ President Ichiro 
Ozawa said: "I would like to make efforts in cooperation with the 
PNP." PNP leader Tamisuke Watanuki then responded: "Reviewing the 
postal-privatization initiative is our party's principle. I want to 
create a new trend by cooperating in elections, of course on the 
postal-privatization revision bill." 
 
The two parties started a discussion on the tie-up plan in August, 
after Ozawa had proposed it. But they discontinued the discussion in 
September because there were cautious views in the DPJ that if the 
party cooperated with the PNP on its postal-privatization review, 
the public would see the DPJ as an old guard conservative Liberal 
Democratic Party, while the PNP was concerned that it would lose its 
political identity. 
 
The DPJ, however, has determined that stable cooperation with the 
PNP is indispensable to pursue its basic Diet strategy. That 
strategy involves first submitting its own bills, following the list 
of party pledges in the July Upper House election campaign, and then 
sending them to the Lower House, which the ruling camp controls. 
 
On the other hand, a review of postal-privatization is a matter of 
life and death for the PNP. A senior PNP predicts: 
 
"If sending the postal bill to the Lower House after passing it 
through the Upper House, former international trade minister Takeo 
Hiranuma and other postal rebels will vote for it and the result of 
the vote would shake the ruling coalition." 
 
SCHIEFFER