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UNCLAS SECTION 01 OF 09 TOKYO 005003 
 
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 10/26/07 
 
 
Index: 
 
North Korea problem: 
1) In unusual move, US Embassy invites association of families of 
Japanese abducted by North Korea for meeting on abductions, US-DPRK 
issues (Mainichi) 
2) US Ambassador to Japan Schieffer's personal letter to President 
Bush on North Korea issues leaked to Fox News (Sankei) 
3) Japan transmits to North Korea new policy approach of willingness 
to provide assistance in stages based on progress on abductions, 
nuclear issue (Nikkei) 
4) Foreign Minister Komura sees "progress" in North Korea abduction 
issue as return of more abductees (Asahi) 
5) MOFA delegate to six-party talks Sasae stresses need to verify 
DPRK's denuclearization steps before taking name off list of states 
sponsoring terrorism (Asahi) 
 
6) Foreign Minister Komura worried about new frictions with US once 
Japan halts MSDF refueling operations in Indian Ocean (Yomiuri) 
 
7) Chief Cabinet Secretary Machimura will preside over meeting of 
Futenma council (Yomiuri) 
 
Defense Ministry scandal: 
8) Former Defense Minister Kyuma also wined and dined by 
scandal-ridden defense contractor last December (Tokyo Shimbun) 
9) Yamada Yoko Corp. not punished for exorbitant billing of Defense 
Agency 6 years ago when former Vice Defense Minister Moriya was in 
charge (Asahi) 
 
Political developments: 
10) Mainichi poll finds 44 PERCENT  of public wanting the Democratic 
Party of Japan (DPJ) to win in the next Lower House election, five 
points higher than LDP (Mainichi) 
11) Prime Minister Fukuda, DPJ President Ozawa square off in the 
Diet on Oct. 31 for a one-on-one debate (Sankei) 
12) LDP, Komeito seriously alarmed about possibility rising of a 
"second tainted-blood" medical scandal involving the Health Ministry 
(Tokyo Shimbun) 
 
Articles: 
 
1) US embassy holds unusual meeting with abductees' families 
 
MAINICHI (Page 1) (Full) 
October 26, 2007 
 
US Embassy First Secretary Keith Jordan met yesterday with 
representatives of the families of the missing abductees and the 
National Association for the Rescue of Japanese Kidnapped by North 
Korea, a support organization. In the meeting, Jordan told them that 
the abduction issue is a matter between Japan and North Korea. The 
representatives are scheduled to meet this evening with Prime 
Minister Yasuo Fukuda. Jordan invited them to hear before they met 
the prime minister what their requests to the Japanese government 
would be. The representatives mentioned conditions for delisting the 
North as a state sponsor of terrorism. It is unusual for the US 
Embassy to request a meeting with the families of the missing 
abductees. 
 
In yesterday's meeting, Jordan asked them what they considered as 
"progress" on the abduction issue, which is regarded as one of the 
 
TOKYO 00005003  002 OF 009 
 
 
conditions to delist the North as a state sponsor of terrorism, and 
he urged them to provide him with a paper detailing their view so 
that he would be able to relay it to Washington. 
 
The representatives of the families of the missing abductees 
expressed their concern about Jordan's remarks. They took the 
remarks to mean that the US side had revealed for the first time 
that the delisting and the abductions are two separate issues. 
 
Meeting with the embassy officer were five family members, including 
Shigeru Yokota, 74, the representative of the association of the 
families of the missing abductees. Although Yokota and other members 
questioned what was specifically meant by nuclear disablement, one 
of the conditions for delisting North Korea as a state sponsor of 
terrorism, Jordan did not give a clear answer. 
 
When asked by a representative from the families of the missing 
abductees whether the delisting and abduction issue were separate 
issues, Jordan reportedly responded that the abduction cases are a 
bilateral issue, so Japan should discuss it from that viewpoint. 
 
Asked by Jordan about what they considered progress on the abduction 
issue, the abductee family side replied that the six-party talks 
should begin deliberations on the condition that North Korean leader 
Kim Jong Il would acknowledge the abduction issue (although he has 
said that the issue has been resolved), and that all abductees would 
be repatriated. 
 
Foreign Minister Masahiko Komura stated yesterday in a House of 
Councillors Committee on Foreign Affairs and Defense session: "Even 
if several abductees are repatriated, the abduction issue will not 
be resolved. However, such would seem to be progress on the issue." 
 
2) US ambassador to Japan raises a red flag about delisting North 
Korea as state sponsor of terrorism, giving direct advice to the 
president regarding conciliatory policy toward the North; Creates 
stir in US 
 
SANKEI (Page 1) (Full) 
October 26, 2007 
 
Takashi Arimoto, Washington 
 
Views within the US government have now become split over the 
question of delisting North Korea as a state sponsor of terrorism. 
The reason is because US Ambassador to Japan Thomas Schieffer sent 
an official telegram on Oct. 24 to President George W. Bush in which 
he urged the president not to delist North Korea and expressed his 
dissatisfaction with the stance of Assistant Secretary of State (for 
East Asian and Pacific Affairs) Christopher Hill, who is responsible 
for talks with North Korea. There was an observation that the Bush 
administration might delist North Korea possibly by the end of the 
year. But the "direct advice" of the ambassador, who is reportedly 
most close to the president, might result in a change in the US 
conciliatory trend toward North Korea. 
 
According to Fox TV, the ambassador has a strong interest in the 
abduction issue, as seen in his having visited the site from where 
Megumi Yokota, then 13, was abducted by North Korean agents. The 
ambassador seems to have expressed concern over the situation where 
the delisting is regarded as a done deal in the US government, 
despite the Japanese government's request. 
 
TOKYO 00005003  003 OF 009 
 
 
 
There also seems to be frustration that he has not been kept 
informed properly as ambassador to Japan. In the cable, Schieffer 
reportedly expressed a sense of distrust, stating that although he 
asked Assistant Secretary Hill if he had promised delisting, he 
received no response. 
 
About the report, National Security Council (NSC) spokesman Gordon 
Johndroe commented to the Sankei Shimbun, "The president highly 
evaluates the ambassador's job performance." The ambassador, too, 
replied: "I have been in close contact with the president, and I 
have nothing to talk about it." 
 
Meanwhile, Secretary of State Condoleezza Rice basically supports 
Hill, although she has declared, "We have no intention of advancing 
relations with North Korea at the expense of US-Japan relations." 
 
The US Congressional Research Service produced on Oct. 25 a report 
on North Korea concluding that the Bush administration, which 
previously maintained it would not comply with a request for 
normalizing relations with the DPRK unless there was progress on the 
human rights issue and other matters, now has defined the human 
rights issue and other matters as "issues to be settled after the 
nuclear issue." The change came after the six-party agreement in 
February on the North Korean nuclear issue. The report also singles 
out Assistant Secretary Hill as having taken such a posture. 
 
Mansfield Foundation Executive Director Gordon Flake, who is well 
versed in North Korean affairs, sounded an alarm that if North Korea 
were delisted, it would harm US-Japan relations. 
 
Flake indicated that in the event North Korea's suspected nuclear 
cooperation with Syria was taken seriously by Congress, there is a 
possibility that the US government will not delist North Korea. He 
also said that in the wake of the emergence of the nuclear 
proliferation issue, people around Vice President Cheney are 
becoming cautious about expediting talks with North Korea. 
 
Flake thinks matters ultimately will depend on President Bush's 
decision. There seems to be a possibility that the president's 
response will be affected by the view of Ambassador Schieffer, who 
according to a US diplomatic source is so close to the president 
that he can directly place a call to his bedroom, the both having 
grown up in Texas and having jointly run a Major League baseball 
club. 
 
Flake also pointed out the need for Japan to present an alternative 
strategy at the Japan-US summit in mid-November instead of just 
opposing the delisting. 
 
3) Government to take new approach to break impasse in relations 
with North Korea 
 
NIKKEI (Top Play) (Excerpts) 
October 26, 2007 
 
The government has decided to take a new approach to break the 
impasse in its relations with North Korea. While clarifying that 
Japan gives top priority to bringing abductee victims back to Japan, 
it will consider phasing out sanctions and providing aid in 
proportion to the level of progress on the abduction, nuclear, and 
missile issues. Setting the normalization of bilateral diplomatic 
 
TOKYO 00005003  004 OF 009 
 
 
ties, including the settlement of past accounts, as its final goal, 
the government will also look into establishing a framework for both 
sides to discuss steps they should take and implement them. It aims 
to make arrangements for Pyongyang to find it easy to take a step 
forward to resolve the issue of Japanese nationals abducted by North 
Korea and urge it to compromise. 
 
The new policy reflects the stance of Prime Minister Yasuo Fukuda, 
who stresses the importance of promoting dialogue and pushing ahead 
with the six-party talks aimed at denuclearizing North Korea. The 
government has already informed Pyongyang of the basic outline of 
the new policy. The policy is likely to be discussed at a bilateral 
working-level meeting expected to take place in early November. Even 
so, it is uncertain what response Pyongyang will make. North Korean 
leader Kim Jong Il persists: "There are no other survivors than the 
five (who returned to Japan in 2002)." 
 
The government has so far called on North Korea to return the 
abductees, uncover details, and punish or hand over those involved 
in the abductions. While maintaining this principle, Japan will 
designate the swift return of all surviving abductees as the top 
priority, based on the prim minister's strong position that the 
abduction issue cannot be left unresolved. 
 
The government now judges that if Japan overly focuses on 
identifying those responsible and demanding an explanation of past 
conflicting statements, their return could be delayed. If North 
Korea continues to claim that all other abductees died, Japan will 
urge it to present evidence supporting the claim. 
 
Japan has set progress on the abduction issue as the condition for 
ending sanctions and providing aid. This condition will be kept in 
place. But the government will consider the possibility of 
indicating beforehand the steps it will take if Pyongyang shows a 
sincere attitude toward returning surviving abductees or resolving 
the missile problem. The "action-to-action" principle being adopted 
in the six-party talks will also be used in Japan-North Korea talks. 
In short, the government plans to prepare a roadmap for Japan-North 
Korea talks. 
 
In a meeting of the House of Councillors foreign and defense affairs 
committees yesterday, Foreign Minister Masahiko Komura said: "We 
cannot say it is a solution to the issue even if some of the 
abductees return to Japan, but it may be seen as progress." 
 
The government keeps in mind (1) humanitarian aid to North Korea; 
(2) easing or lifting such economic sanctions as the ban on North 
Korean ships from entering Japanese ports and the embargo on all 
imports; and (3) energy aid in exchange for North Korea's disabling 
nuclear facilities. Japan will also maintain the principle of 
offering full-scale economic cooperation after bilateral diplomatic 
relations are normalized. 
 
4) Foreign Minister Komura: If several abductees repatriated, we 
will regard that as progress in abduction issue 
 
ASAHI (Page 4) (Full) 
October 26, 2007 
 
Foreign Minister Masahiko Komura stated yesterday in a House of 
Councillors Foreign Affairs and Defense Committee session: "Even if 
several (abductees) are repatriated, the abduction issue will not be 
 
TOKYO 00005003  005 OF 009 
 
 
resolved. But such would seem to be an improvement in the issue." He 
indicated that the Japanese government would take it as progress in 
the abduction issue if some abductees were repatriated. He was 
answering a question by Shinkun Haku of the main opposition 
Democratic Party of Japan (DPJ or Minshuto). 
 
Asked about Komura's remarks by reporters, Chief Cabinet Secretary 
Nobutaka Machimura responded yesterday: 
 
"Since I don't understand the meaning of several -- whether it means 
some of the several dozen abductees or all the abductees, it is 
difficult to tell right now whether his statement was the 
government's policy." 
 
The government has refrained from mentioning specifics on 
improvement in the abduction issue. Kyoko Nakayama, special advisor 
to the prime minister on the abduction issue, said in an interview 
to the Asahi Shimbun last month that the repatriation of several 
abductees would not mean progress. 
 
5) Foreign Ministry's Sasae stresses need for verifying 
denuclearization before delisting North Korea as state sponsor of 
terrorism 
 
ASAHI (Page 4) (Full) 
October 26, 2007 
 
Takashi Horiuchi, Washington 
 
The Foreign Ministry's Asian and Oceanian Affairs Bureau Director 
General Kenichiro Sasae, now visiting the United States, met on Oct. 
24 in Washington with White House National Security Council Senior 
Director for East Asian Affairs Dennis Wilder. According to those 
involved, Sasae said, "It is important to implement denuclearization 
and ensure progress on Japan-North Korea relations" in order to 
delist the North as a state sponsor of terrorism. He underscored 
that the strict verification of the process of denuclearization 
would be necessary, in addition to the abduction issue. 
 
The purpose of Sasae's assertion is to urge the US to delay removing 
North Korea from its list of state sponsors of terrorism. A senior 
Foreign Ministry official said: "The problem is what will be 
included in North Korea's declaration." He noted that whether the 
North includes uranium enrichment and nuclear programs, which are 
not specified in the six-party agreement, will become a material to 
determine whether that country will implement its agreement. 
 
6) Foreign minister sees "new friction between Japan and the US" due 
to mountain of pending issues 
 
YOMIURI (Page 4) (Full) 
October 26, 2007 
 
Referring to Japan-US relations, Foreign Minister Komura during a 
meeting of the Upper House Diplomatic and Defense Affairs Committee 
yesterday noted, "New frictions seem to be developing. If, for 
instance, refueling operations in the Indian Ocean by the Maritime 
Self-Defense Force came to a halt and the new antiterrorism special 
measures bill fails to secure Diet passage, the US side would 
probably think, 'What is Japan doing as our ally? It is not even 
contributing to the international community.'" 
 
 
TOKYO 00005003  006 OF 009 
 
 
He expressed concern in his remark about the possibility of 
bilateral relations becoming strained due to a number of pending 
issues, such as the refueling operations, the realignment of US 
forces in Japan, and planned cuts in Japan's host nation support for 
US forces stationed in Japan. 
 
Komura made that comment in response to a question asked by Ichita 
Yamamoto of the Liberal Democratic Party (LDP). 
 
7) Chief cabinet secretary to preside over consultative council on 
Futenma issue 
 
YOMIURI (Page 4) (Full) 
October 26, 2007 
 
The government yesterday decided that the chief cabinet secretary 
will chair a consultative council between Okinawa Prefecture and 
related municipalities on the issue of relocating the US Marine 
Corp's Futenma Air Station to the coastal part of Camp Schwab. The 
defense minister and the state minister for Okinawa have thus far 
presided over the council, established in August last year. The 
appointment of the chief cabinet secretary means de facto upgrading 
of the panel. The aim is to enable the Prime Minister's Official 
Residence (Kantei) to take the lead in hard-going coordination of 
views with local governments. 
 
The government is now undertaking coordination with the possibility 
of holding the panel's fourth meeting in early November before Prime 
Minister Fukuda. The panel last held a meeting in January this 
year. 
 
8) Former Yamada Corp. executive director treated former Defense 
Minister Kyuma to inaugural dinner last December 
 
TOKYO SHIMBUN (Top Play) (Full) 
October 26, 2007 
 
It was learned from an informed source that former Defense Minister 
Akio Kyuma was entertained by a former executive director (69) of 
Yamada Yoko Corp. in Minato Ward, Tokyo, a trading house 
specializing in defense procurement, at a traditional Japanese 
restaurant in Akasaka, Tokyo. The source said that the former 
managing director paid the bill. Concerning Yamada Corp., it was 
already found that this former executive director treated former 
Administrative Vice Defense Minister Takemasa Moriya (63) with free 
rounds of golf more than 200 times. The revelation proves that the 
collusive ties between Yamada Corp. and senior officials of then 
Defense Agency involved the two top officials. 
 
According to the same source, the executive invited Kyuma to a 
famous Japanese restaurant known for turtle dishes in early December 
last year. Several others were also present. 
 
This former executive director, established Nihon Mirise, a trading 
company specializing in the defense area, in Minato Ward, Tokyo, in 
September last year, after quitting Yamada Corp. in June the same 
year. He reportedly planned the dinner to celebrate Kyuma's 
assumption of the post of defense minister. 
 
The executive reportedly explained to Kyuma details on how he came 
to establish Nihon Mirise. He paid the bill for the dinner, which 
cost more than 100,000 yen. 
 
TOKYO 00005003  007 OF 009 
 
 
 
Nihon Mirise was at that time engaging in a fierce business battle 
with the Yamada Corp. over the procurement of the engine for the 
next-generation transport aircraft codenamed CX by the Air 
Self-Defense Force. Kyuma took office as Defense Agency director 
general (defense minister since this January due to the upgrading of 
the agency to status of a ministry), but resigned over an 
impropriate remark about the atomic bombing of Japan having been 
"unavoidable," which drew fierce criticism. 
 
Responding to an interview by Tokyo Shimbun, Kyuma yesterday evening 
admitted to having attended the dinner. He said, "Although I do not 
recall the details, I certainly met the former executive director 
right after I took office as defense minister. It's no mistake that 
I did not pay the bill." 
 
The rules for state ministers, senior vice ministers and 
parliamentary secretaries, adopted at a cabinet meeting in 2001, 
stipulate that they must not engage in practices that could invite 
suspicion of the people, such as being entertained by industries 
with connections to the ministry or agency. 
 
The entertainment in this case could infringe on the rules, but 
Kyuma explained, "Nihon Mirise is not a related company. I would not 
have accepted the invitation, if I had been invited by the former 
executive director. Another person invited me to the dinner. When I 
went to the restaurant, the former executive director was there. He 
explained about the trouble between his company and Yamada Corp." 
 
9) Yamada Yoko Corp. was not punished for overcharging Defense 
Agency on helicopter parts after explaining situation to Moriya 
 
ASAHI (Page 39) (Excerpt) 
October 26, 2007 
 
Six years ago, Yamada Yoko Corp., a trading company specializing in 
defense procurement, requested an exorbitant amount of money for 
procuring helicopter parts for the Maritime Self-Defense Force 
(MSDF). The then Defense Agency investigated the matter, according 
to an informed source. At that time, the Yamada Corp. reportedly 
explained the details of the situation to Takemasu Moriya, the 
former vice defense minister who was then director-general of the 
Defense Bureau. After that, Yamada Corp. was never penalized for 
overcharging, and according to an informed source in the ministry, 
"Voices of suspicion were raised about the way this was handled." 
 
10) Mainichi opinion poll: 44 PERCENT  want the DPJ to win in the 
next Lower House election, five points higher than the rate for the 
LDP (Mainichi) 
 
MAINICHI (Page 5) (Excerpt) 
October 26, 2007 
 
In a nationwide poll conducted Oct. 20-21, the Mainichi Shimbun 
asked the question, "Which party to you think you would like to win 
in the next election of the House of Representatives?" In the 
replies, 44 PERCENT  of the public picked the Democratic Party of 
Japan (DPJ or Minshuto), while 39 PERCENT  chose the Liberal 
Democratic Party (LDP). Another 11 PERCENT  picked the "other party" 
category. This is the fourth time that the same question has been 
asked in the Mainichi poll: August 27-28; Sept. 12-13; and Sept. 
25-26. The LDP received responses of 37 PERCENT , 39 PERCENT , 41 
 
TOKYO 00005003  008 OF 009 
 
 
PERCENT , and now 39 PERCENT  in the surveys, while the DPJ scored 
44 PERCENT , 43 PERCENT , 45 PERCENT , and 44 PERCENT . In all 
cases, the DPJ rated higher than the LDP. The gap between the two 
parties' ratings, which was 4 points in the two previous polls, has 
widened slightly to 5 points. 
 
Based on those who support or do not support the Fukuda Cabinet, the 
poll found 72 PERCENT  of the non-supporters favoring a DPJ victory, 
but even among the supporters, 28 PERCENT  wanted the DPJ to win. 
Based on party support, 88 PERCENT  of the LDP supporters and want 
the LDP to win, and only 6 PERCENT  want a DPJ victory. Among DPJ 
supporters, 95 PERCENT  want the DPJ to win, and 3 PERCENT  want the 
LDP to win. 
 
Among those supporting no party, the mutohaso, 30 PERCENT  favored 
the LDP and 41 PERCENT  the DPJ. 
 
The survey method: The poll was carried out over two days, Oct. 
20-21, using a computerized random dialing system. The number of 
persons who responded nationwide totaled 1,064. 
 
11) Fukuda-Ozawa debate set for Oct. 31 
 
SANKEI (Page 5) (Full) 
October 26, 2007 
 
The party heads of the largest parties in the two chambers of the 
divided Diet will have a one-on-one debate for the first time later 
this month. 
 
An agreement was reached yesterday for the Liberal Democratic Party 
(LDP) and Democratic Party of Japan (DPJ) to hold a party-head 
debate on Oct. 31. LDP Diet Affairs Committee Chairman Tadamori 
Oshima talked with his DPJ counterpart Kenji Yamaoka on the phone 
yesterday and decided on the debate. Ozawa last had a one-on-one 
debated with former Prime Minister Shinzo Abe on May 30. It will be 
Ozawa's first debate with Fukuda. 
 
They are expected to debate how Japan should contribute to the 
international community in connection with new antiterrorism 
legislation to continue the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean and former Vice Defense Minister 
Takemasa Moriya's suspected free golf with and wining and dining by 
a defense contractor. 
 
12) LDP, New Komeito alarmed at hepatitis from tainted-blood issue 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
October 26, 2007 
 
It has been revealed that the Ministry of Health, Labor and Welfare 
(MHLW) have left documents listing the names of patients who 
contracted hepatitis C after being administered the tainted blood 
product fibrinogen untouched for many years. On this problem, 
criticism is intensifying against the government. The government has 
announced measures to trace about 280,000 persons who were 
administered the tainted blood product and to urge them to undergo 
examinations or receive treatment. But the Democratic Party of Japan 
(DPJ) is poised to thoroughly pursue the issue in the Diet, calling 
it "the second drug-induced AIDS" problem. 
 
The project team of the Liberal Democratic Party (LDP) and the New 
 
TOKYO 00005003  009 OF 009 
 
 
Komeito tasked with working out measures to contain hepatitis held 
an emergency meeting yesterday. A number of participants lashed out 
at the ministry, one assailing: "It is strange that the ministry has 
not properly grasped how many persons were administered the 
fibrinogen." Another said: "The ministry should report by next week 
on how to track patients." 
 
Such harsh views from ruling party members reflect their desire to 
put a process in motion to resolve the hepatitis problem by taking 
steps swiftly before public distrust grows, as it did in the 
pension-record case. 
 
The project team of the ruling parties has already decided to 
include in next fiscal year's budget subsidies for high interferon 
treatment costs for hepatitis B and C patients. 
 
The team has also decided to draw out a basic bill designed to 
combat the disease, including measures to improve equipment for 
early detection of the disease and medical institutes, and to assist 
research and development. It aims to submit the bill to the current 
Diet session. 
 
Meanwhile, the DPJ is ready to drive the government into corner by 
grilling it over the hepatitis issue, besides a series of scandals 
involving the Defense Ministry. In a House of Representatives 
Health, Labor and Welfare Committee meeting, the DPJ demanded 
summoning responsible senior MHLW officials at that time to the Diet 
as unsworn witnesses and called for intensive deliberations on the 
issue. Additionally, it indicated invoking its administrative 
investigation right. 
 
SCHIEFFER