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UNCLAS SECTION 01 OF 09 TOKYO 004967 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 10/24/07 
 
 
Index: 
 
(1) US Assistant Secretary of State Hill expresses hope for 
delisting North Korea as state sponsor of terrorism (Nikkei) 
 
(2) Civilian control rocked (Asahi) 
 
(3) Editorial: Impediments to Diet deliberations on new refueling 
legislation must be eliminated swiftly (Nikkei) 
 
(4) Why rare-metal diplomacy now, Mr. Amari?: Sense of urgency 
toward resource resource-rich countries enclosing their resources 
(Asahi) 
 
(5) Attaining target set in Kyoto Protocol still difficult despite 
industries' additional measures (Nikkei) 
 
(6) Former Defense Minister Koike in her book criticizes Moriya 
(Asahi) 
 
ARTICLES: 
 
(1) US Assistant Secretary of State Hill expresses hope for 
delisting North Korea as state sponsor of terrorism 
 
NIKKEI NET (Full) 
13:06, October 24, 2007 
 
Hiroshi Maruya, Washington 
 
The Japanese and US chief delegates to the six-party talks on North 
Korea's denuclearization held talks at the State Department on Oct. 
23 and agreed to begin disabling the nuclear facilities in Yongbyon 
on Nov. 1. They also confirmed close cooperation between Japan and 
the United States in delisting North Korea as a state sponsor of 
terrorism by the United States. After the meeting, Assistant 
Secretary Hill told reporters: "The United States has always aimed 
 
SIPDIS 
at removing countries from the list of nations sponsoring 
terrorism." 
 
Although Hill's statement is a general argument for eradicating 
terrorism, it is taken as expressing US anticipation of conditions 
allowing Washington to delist North Korea as a state sponsor of 
terrorism. 
 
Foreign Ministry Asian and Oceanian Affairs Bureau Director-General 
Kenichiro Sasae indicated to the press that there must be progress 
on the abduction issue, saying: "We have agreed on the need for 
progress in outstanding issues between Japan and North Korea, along 
with those between the United States and North Korea." Hill said, 
"We would like to push ahead with matters in a way to strengthen all 
relations, including those between the United States and North Korea 
and between Japan and North Korea." 
 
(2) Civilian control rocked 
 
ASAHI (Page 2) (Slightly abridged) 
October 23, 2007 
 
The director of a division in charge was aware of an error in the 
amount of fuel supplied. This director, however, did not report the 
error to the top brass. Consequently, Prime Minister Fukuda made a 
 
TOKYO 00004967  002 OF 009 
 
 
mistake in his official announcement of it when he was chief cabinet 
secretary (in 2003). The government mistook the quantity of fuel 
 
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provided by the Maritime Self-Defense Force to a US Navy oiler in 
the Indian Ocean. This issue has now developed into a serious 
problem concerning civilian control, in addition to the suspected 
diversion of MSDF-supplied fuel for US military operations in Iraq. 
Meanwhile, a special legislative measure for refueling assistance is 
now before the Diet. As a premise to deliberate on the legislation, 
the Democratic Party of Japan (Minshuto) and other opposition 
parties are taking a serious view of this problem as well as former 
Administrative Vice Defense Minister Takemasa Moriya's collusive 
relationship with a defense contractor. Dark clouds are now looming 
over the possibility of the legislation's enactment during the 
current Diet session. 
 
Report unnatural 
 
"It's really regrettable. If such things happen daily, I feel quite 
wretched about it." With this, Prime Minister Fukuda was apparently 
upset yesterday evening at the cover-up of such an error in the 
amount of fuel supplied to a US warship in the Indian Ocean. 
 
On May 9, 2003, Fukuda met the press as chief cabinet secretary. In 
his press briefing, Fukuda, based on the wrong data, announced that 
the MSDF provided 200,000 gallons to a US Navy oiler. However, the 
Maritime Staff Office had grasped the error before the press 
briefing. The prime minister therefore was criticizing those in 
charge at the time. However, he did not forget to deny his 
responsibility, too. 
 
The Defense Ministry, in its report, denied any organized cover up, 
laying the onus on "the director of a division in charge and 
others." The Defense Ministry report explained that the error was 
not made known to the MSDF chief of staff and the director general 
of the Defense Agency at that time, now the Defense Ministry. The 
report also stressed that even the agency's internal bureau 
officials did not know about it. 
 
However, one of those aware of the circumstances in those days notes 
that the Defense Agency's internal bureaus might have also grasped 
the error in their checks on accounting related to defense 
equipment. 
 
The Defense Ministry says in its report that only one of the MSO's 
divisions in charge grasped the error. In fact, however, there are 
also many unnatural points about such an explanation. 
 
What triggered the issue of fuel diversion was a statement that came 
on May 6, 2003, from US Navy Carrier Battle Group 5's Rear Adm. 
Matthew Moffit, who commands the USS Kitty Hawk, a US Navy aircraft 
carrier homeported at Yokosuka. On the same day, the Kitty Hawk 
returned to Yokosuka from its Iraq war mission. The rear admiral 
then revealed that the Kitty Hawk was indirectly refueled with 
800,000 gallons from the MSDF through a US Navy tanker. 
 
Two days after that, however, Tohru Ishikawa, the then chairman of 
the Self-Defense Forces' Joint Staff Council, announced in his May 9 
press briefing that the amount of fuel supplied to the US oiler was 
"approximately 200,000 tons." At that point of time, "200,000" and 
"800,000" were announced one after another. 
 
The Japanese and US sides differed on the figure in their 
 
TOKYO 00004967  003 OF 009 
 
 
announcements. The MSO division in charge and the top brass should 
have checked why there were two different figures. Moreover, 
according to the Defense Ministry report, accurate data was cabled 
and emailed from an MSDF squadron in the Indian Ocean to the MSDF 
chief of staff on the day after an MSDF supply ship refueled the US 
oiler. 
 
Nevertheless, the government, based on what the JSC chairman said in 
his press briefing, created a guideline of answers to be given if 
asked in the Diet. Based on this guidance, Chief Cabinet Secretary 
Fukuda and Defense Agency Director General Ishiba, both at that time 
explained that the MSDF provided "approximately 200,000 gallons." 
 
"Apparently, the Defense Ministry is passing the buck to the rank 
and file," said Kenji Yamaoka, chairman of the DPJ's Diet affairs 
committee. "The government is clearly trying to bring this issue to 
a close by making someone else carry the can," Yamaoka added. As 
noted by Yamaoka, the government will inevitably be called into 
question for its poor way of doing things. 
 
The Defense Ministry came up with its report. At that time, the 
government's critical awareness was also thin. 
 
The Defense Ministry briefed the ruling coalition of the Liberal 
Democratic Party and New Komeito yesterday morning on its report. At 
that time, the Defense Ministry report incorporated no plans to set 
up a review committee to ensure civilian control. It only said the 
Defense Ministry would conduct a "further fact-finding survey." 
 
Therefore, the New Komeito did not approve the report, claiming that 
the Defense Ministry should be seriously concerned about the problem 
from the perspective of civilian control, study measures including 
punishment, and set up a review committee to ensure civilian 
control. The Defense Ministry, urged by the LDP's coalition partner 
to incorporate these three points, amended the report in a flurry. 
 
Even more difficulties in store for legislation 
 
The government and the ruling coalition held a consultative meeting 
yesterday afternoon in the Diet. Executives from the ruling parties 
criticized the MSO for its cover-up of the error in the amount of 
fuel supply. 
 
In the meeting, Tadamori Oshima, chairman of the LDP's Diet affairs 
committee, said: "I told the Defense Ministry to create a steadfast 
system to ensure civilian control. At the same time, I also told the 
Defense Ministry to spell out the punishments for those involved in 
this case." 
 
Also, Yoshio Urushibara, chairman of New Komeito's Diet affairs 
committee, said: "They made the minister of state and the chief 
cabinet secretary give the wrong answer. That's outrageous." 
 
Both Oshima and Urushibara voiced a sense of crisis, deeming it even 
more difficult to get the new refueling assistance legislation 
through the Diet. 
 
Meanwhile, it was brought to light that former Administrative Vice 
Defense Minister Moriya used to play golf with a defense contractor. 
This fact alone is a serious blow to the government. However, the 
ruling parties insisted that Moriya's golfing scandal should not be 
linked to the legislation. The ruling and opposition parties agreed 
 
TOKYO 00004967  004 OF 009 
 
 
last weekend to enter into Diet deliberations in a plenary sitting 
today of the House of Representatives. The ruling coalition was 
optimistic about starting full-fledged deliberations tomorrow in 
Diet committee meetings. 
 
However, the Defense Ministry would have to make up for its clumsy 
report on the MSO's cover-up of the error over the MSDF's fuel 
supply. This issue is even likely to spark over the Defense Ministry 
itself. It dates back to a time when Moriya was in the post of 
administrative vice defense minister, so it has now become extremely 
difficult to separate this issue from Moriya's golfing scandal. 
 
DPJ President Ozawa yesterday met his party's policy board members 
and others at party headquarters. "We will take our time to make our 
counterproposal," Ozawa said. "First of all," he added, "we will ask 
Prime Minister Fukuda about his false reply that he made in the Diet 
when he was chief cabinet secretary." In line with this course of 
action, the DPJ will not be in a hurry to present its own 
legislative measure. Instead, the DPJ will drive the ruling 
coalition to give up the government's new refueling assistance 
legislation. 
 
The government and ruling parties now have got into a scrape. Even 
so, the ruling coalition cannot easily give up. On Oct. 19, US 
Ambassador to Japan Schieffer asked the prime minister again to 
continue the MSDF's refueling activities. In early November, shortly 
before the Diet winds up its current session, US Secretary of 
Defense Gates will come to Japan. The prime minister plans to visit 
the United States in mid-November for his first foreign trip. "It's 
important to show our continued efforts to pass the bill," a 
high-ranking government official said. 
 
(3) Editorial: Impediments to Diet deliberations on new refueling 
legislation must be eliminated swiftly 
 
NIKKEI (Page 2) (Full) 
October 24, 2007 
 
Deliberations on a bill to continue the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean began at a House of 
Representatives plenary session yesterday. 
 
The Defense Ministry and the Self-Defense Forces have been hit by a 
series of improprieties, such as a scandal involving former 
Vice-Defense Minister Takemasa Moriya, a cover-up of an error made 
in accounting for fuel provided to a US oiler by the MSDF, and the 
disposal of a ship's logbook. Some think the refueling legislation 
is unlikely to clear the Diet in the current session, since these 
issues will likely bog down discussions. The obstacles must be 
eliminated swiftly. 
 
Although the three irregularities are not directly connected to the 
new legislation, they contain serious problems that concern the 
credibility of defense administration. One cannot say that the 
opposition camp's intention to link them to Diet discussions on the 
new legislation is unreasonable. 
 
Of the three cases, investigative reports have been released on the 
two involving the MSDF. The Defense Ministry must speedily determine 
and punish those responsible. 
 
The cover-up of the incorrect amount of fuel provided by the MSDF is 
 
TOKYO 00004967  005 OF 009 
 
 
especially serious. 
 
Under civilian control, the concealment of inconvenient facts by 
military organizations could lead lawmakers to determine policies 
based on incorrect information. There is no shortage of 
international accounts of national security being jeopardized by 
similar incidents. In order to prevent a recurrence, those 
responsible must be severely punished. 
 
The case contains many problems. If the officer responsible for the 
matter had not been aware of the graveness of the concealment, it 
was too sloppy, and if he had knowingly covered it up, that was 
vicious. Although the then Maritime Staff Office section chief has 
already retired, he must testify before the Diet to clarify all the 
facts as a responsible former SDF officer. 
 
Moriya's case is more complex. The truth is being uncovered. It 
might escalate into a criminal case. 
 
If Moriya had a grain of pride as a former vice defense minister, he 
would have voluntarily offered an explanation at the Diet. There is 
every reason for the Diet to summon him as a sworn witness. 
 
Nevertheless, basing Diet discussions on the new refueling 
legislation on his Diet testimony is going too far. The Moriya case 
is a government impropriety that must be elucidated by combined 
efforts by all lawmakers across party lines. 
 
It is the Diet's responsibility to eliminate all the hindrances to 
Diet discussions on the new refueling legislation to reach an 
agreement. The international community is watching it closely. Diet 
deliberations on the new legislation must go on regardless of the 
Moriya and the Maritime Staff Office scandals. 
 
(4) Why rare-metal diplomacy now, Mr. Amari?: Sense of urgency 
toward resource resource-rich countries enclosing their resources 
 
 
ASAHI (Page 9) (Full) 
October 24, 2007 
 
Following a sharp rise in the prices of rare metals, materials that 
are necessary to manufacture high-tech products, the government 
intends to help the private sector secure interests through active 
use of diplomatic means. Asahi Shimbun asked Economy, Trade and 
Industry Minister Amari why his ministry will focus on rare-metal 
diplomacy? 
 
? Why did rare metals, which are being used only by some industry 
sectors, crop up as a key diplomatic agenda? 
 
"Japan is a goods-manufacturing country. It must manufacture goods 
using state-of-the-art technology. Manufacturing such products 
requires rare metals. The number of rare metal-producing countries 
is more limited than of oil-producing countries. It would be very 
effective, if the prime minister or a cabinet minister visit rare 
metal-producing countries in order to create 
government-to-government relations." 
 
? Isn't it possible to leave the job to the private sector? 
 
"The rare metal industry is one set with the government in such 
 
TOKYO 00004967  006 OF 009 
 
 
resource-rich countries. Even if persons from the private sector go 
to such a country, they would find it difficult to gain local trust. 
Furthermore, the rise of Asian countries has made the 
supply-and-demand situation of resources tight. Resource-rich 
countries are trying to control or enclose their resources. The age 
of leaving the matter to the private sector and procuring products 
on the market is over. Japanese companies do not have the strength 
or political bargaining power like international oil majors. If 
government-affiliated organs get involved by such means as making 
investment or extending loans, then the government can have a say." 
 
? It appears that the government is in a panic due to the sharp rise 
in prices. 
 
"We have a natural resources reserve system. However, demand is 
exceeding stockpiles. Resource-rich countries now do not sell their 
products at low prices so easily. The conventional approach is 
limited in what it can do." 
 
? On which region are you focusing? 
 
"Japan must deepen its relations with China a rare-metal resources 
power. At the same time, it must nurture many resource-rich 
countries that compete with China. We must keep a close watch on 
Africa, a resource-rich continent. We will make it self-supportive, 
by combining the search for undiscovered resources and the 
government's official development assistance (ODA). Japan needs 
resources, and African nations want to further develop their own 
countries, financed by their natural resources. We can establish a 
win-win relationship this way." 
 
? China is also advancing into Africa in pursuit of resources using 
its economic clout. 
 
"We will show that our approach is government-backed, by having the 
prime minister or cabinet ministers making the appeal that we have 
government-affiliated organs, such as the Japan Oil, Gas and Metals 
National Corporation (JOGMEC). Japan has know-how to help them give 
value-added to the resources and to develop the industry. I will say 
to them, 'The Japanese method is correct from a long-term 
perspective for the independence of their countries.'" 
 
? What is your strategy against export restrictions set by China, 
which is also a rare-metal supplier?" 
 
"I told China that resource suppliers can stand on their own only 
when the world economy is on the right track. It is important to 
create an economically dependent relationship with China in which 
China supplies rate metals and Japan manufactures high-performance 
parts, with China then assembling finished products. 
 
(Interviewer Yusuke Murayama) 
 
(5) Attaining target set in Kyoto Protocol still difficult despite 
industries' additional measures 
 
NIKKEI (Page 3) (Excerpts) 
October 24, 2007 
 
In a meeting yesterday of the joint committee of officials from the 
Environment Ministry and the Economy, Trade and Industry Ministry 
(METI), four industries presented their respective action plans to 
 
TOKYO 00004967  007 OF 009 
 
 
voluntarily reduce greenhouse gas emissions. With these, all 
industries' plans have been present. Under the plans, their carbon 
dioxide (CO2) emissions would be reduced by another 20 million tons, 
getting one step closer to the nation's target set in the Kyoto 
Protocol. But it is uncertain whether they will be able to implement 
their plans. Even if the plans are actually carried out, attaining 
the target will be difficult, because more greenhouse gases have 
been emitted from both the business and household sections. It is 
essential for Japan to hammer out additional effective measures. 
 
18 industries' additional CO2 emission-cut plans now all present 
 
In the meeting, the Japan Trucking Association, as well as the 
housing, sugar-refining, and instant-noodle industries presented 
their respective plans to make deeper cuts in gas emissions. 
Chemical, paper, and other 15 industries have now pledged to 
additionally cut gas emissions by about 15.5 million tons. With this 
figure added to the targeted cut of 4.39 million tons announced by 
the trucking industry, it is estimated that gas emissions from all 
industries will be reduced by nearly 20 million tons. 
 
The Kyoto Protocol requires Japan to cut its greenhouse gas 
emissions from 1990 levels by an average of 6 PERCENT  between 2008 
and 2012. According to the government's estimate, unless Japan takes 
additional measures, the amount of emitted gases is calculated to be 
20 to 34 million tons more than the targeted figure as of FY2010. 
 
In industrial circles, an executive of a cement company said: 
"Economic conditions will affect whether we can translate our plans 
into action." A senior official of the Environment Ministry said: 
"Industries should be able to cut more emissions." But a member of 
the industrial world grumbled: "Pressure for further cuts has been 
applied not on households and offices but only on industries." 
 
The most serious problem is the fact that the amount of gases 
emitted from the business and household sections is increasing. The 
government has taken such measures as waging a campaign for each 
person to reduce CO2 emissions by 1 kg per day and spreading 
eco-cars. But it is not realistic to impose restrictions on 
households. Such measures are not effective but are mainly aimed at 
raising awareness of the need for emission cuts. The joint committee 
will work out additional measures in the business, households, and 
trucking sections and then compile a final report by December. 
 
Electric power and steel industries depend on emission trading 
 
Industrial circles are stepping up efforts to introduce 
energy-saving equipment and to use fuel that emits less carbon 
dioxide (CO2) instead of oil. Behind such efforts are expectations 
for cost cuts by introducing energy-efficient equipment and the 
recent high oil prices. But their investment burdens are 
increasingly swelling. Electric power and steel industries, from 
which huge greenhouse gases are discharged, find it difficult to 
achieve their targets only with their measures, so they have to 
depend on emission trading. 
 
Paper companies are expanding the use of recycled fuel instead of 
heavy oil. The paper industry invested approximately 187 billion yen 
in energy-saving equipment between FY2007 and FY2010. Of this money, 
nearly 70 PERCENT  reportedly were spent on changes in fuel. The 
Nippon Paper Group plans to reduce CO2 emissions by about one 
million tons annually, equivalent to 10 PERCENT  of its total gas 
 
TOKYO 00004967  008 OF 009 
 
 
discharged from its plants in the nation, at its 10 plants by FY2008 
by switching fuel from heavy oil to recycled waste wood or paper. It 
will cost 66 billion yen for new equipment, but the group intends to 
trim fuel costs by 17 billion yen annually by reducing the use of 
expensive heavy oil. 
 
Investing 4 to 5 billion yen in its six key plants, from which 80 
PERCENT  of gases emitted from its all domestic plants is 
discharged, Fuji Film Holdings intends to switch fuel from heavy oil 
to natural gas. 
 
The chemical industry invested more than 43 billion yen in saving 
energy in FY2006. Since the industry doubled its reduction target 
this time, it will need to prepare 134 million yen in additional 
costs in FY2007 and beyond. The industry already investigated in 
effective energy-saving parts. A member of the Japan Chemical 
Industry Association said: "Our burden might increase with 
investment in less effective parts." 
 
Meanwhile, 11 industries, including electricity and steel, have 
worked out their voluntary action plans, but the plans were not 
implemented in FY2006, so they did not come up further cuts. 
 
Among them, the electric power and steel industries, from which huge 
greenhouse gases are emitted, think it indispensable to depend on 
emission trading in order to achieve their targets. The Federation 
of Electric Power Companies plans to purchase CO2 emission quotas 
worth approximately 120 million tons by FY1012. The Japan Iron and 
Steel Federation intends to buy quotas for 44 million tons of CO2. 
 
Under the trading system, companies buy 1 ton of CO2 for about 2,000 
yen. In the case of reducing gas emissions through energy-saving 
measures, about 50,000 yen reportedly is needed to reduce the amount 
by one ton. But the chemical and paper industries aim to meet their 
goals by their own measures, based on the judgment that such efforts 
will lead to slashing costs. 
 
(6) Former Defense Minister Koike in her book criticizes Moriya 
 
ASAHI (Page 4) (Full) 
October 20, 2007 
 
Former Defense Minister Yuriko Koike, a member of the ruling Liberal 
Democratic Party (LDP), has written a book titled Woman's True Worth 
- 55 Days in Ichigaya, in which she gives the lowdown on her feud 
with former Administrative Vice Defense Minister Takemasa Moriya. 
The book is published by Bungeishunju. Koike assumed the post in 
July as the first female Japanese defense chief, succeeding her 
predecessor Fumio Kyuma, who had stepped down as defense minister 
due to an inappropriate comment. She held the post only until late 
August. Koike writes in the book that Moriya freely walked over to 
the Prime Minister's Official Residence to make an appeal to block 
her planned personnel change. She severely criticized his behavior, 
describing it as a "February 26 Incident" involving only one person. 
(TN: The historical incident took place on that day in 1936 when 
young military officers stormed and occupied the prime minister's 
official residence and assassinated several senior officials. The 
incident marked the beginning of a military dictatorship in prewar 
Japan.) 
 
Koike also reveals in the book that Moriya refused her suggestion 
that he should become an advisor to the ministry after stepping down 
 
TOKYO 00004967  009 OF 009 
 
 
as vice minister, citing that it would be difficult to make a living 
with an advisor's pay. She comments that he might have been under 
the impression he could easily control a female minister. 
 
Koike also describes exchanges with former Prime Minister Shinzo Abe 
and former Chief Cabinet Secretary Yasuhisa Shiozaki. She writes 
that when she urged Abe to accept her personnel change plan, while 
presenting her resignation, Abe with a sad face sought to persuade 
her to not to resign, saying sadly , "Please don't tell me you are 
quitting. I implore you." Regarding Abe's resignation, Koike writes: 
"I feel sorry for Prime Minister Abe because I caused him even more 
trouble while he was suffering from the series of scandals and 
criticisms after the Upper House defeat." 
 
SCHIEFFER