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UNCLAS SECTION 01 OF 09 TOKYO 005018 
 
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 10/26/07 
 
 
INDEX: 
 
(1) "Continuing refueling operations is difficult," Yachi tells 
Negroponte (Yomiuri) 
 
(2) Japan plans North Korea policy course change toward dialogue: 
Assistance possible if progress on abductions issue (Asahi) 
 
(3) Okinawa Defense Bureau chief reveals US plan to build CALA at 
Futenma alternative facility; Enhancement of functions becomes clear 
(Ryukyu Shimpo) 
 
(4) Japan's Burma policy nowhere in sight: Harsh views from within 
and outside country on continuation of aid (Sankei) 
 
(5) First month of Fukuda cabinet (Part 1): Concern about growing 
present of Kasumigaseki in Prime Minister's Official Residence 
(Nikkei) 
 
(6) Prime Minister Fukuda after one month in office still a "safe 
driver" with no reference to his vision of the state (Sankei) 
 
(7) Personal network of Prime Minister Yasuo Fukuda (Sapio) 
 
(8) TOP HEADLINES 
 
(9) EDITORIALS 
 
(10) Prime Minister's schedule, October 25 (Nikkei) 
 
ARTICLES: 
 
(1) "Continuing refueling operations is difficult," Yachi tells 
Negroponte 
 
YOMIURI NET (Full) 
13:32, October 26, 2007 
 
Yuichi Suzuki, Washington 
 
Vice Foreign Minister Shotaro Yachi, now visiting the United States, 
met with Deputy Secretary of State John Negroponte at the State 
Department on the morning of Oct. 25 (before dawn on Oct. 26, Japan 
time) in which he indicated that it would be inevitable to 
temporarily halt the Maritime Self-Defense Force's refueling 
operations in the Indian Ocean. 
 
Regarding the new antiterrorism legislation to continue the 
refueling operations, Yachi said: "Other opposition parties, 
including the Democratic Party of Japan, and are opposed it, so the 
environment surrounding Diet deliberations is extremely severe." 
Negroponte noted, "The international community as a whole is 
strongly hoping that Japan will continue providing fuel." 
 
(2) Japan plans North Korea policy course change toward dialogue: 
Assistance possible if progress on abductions issue 
 
ASAHI.COM (Full) 
October 26, 2007 
 
In order to break the impasse in Japan-North Korea relations, the 
government has firmed up its intention to consider a removal of 
 
TOKYO 00005018  002 OF 009 
 
 
sanctions in stages and the providing of assistance depending on 
North Korea's responses on the nuclear and missile issues and if 
what can be taken as "progress" on the abduction issue occurs, such 
as the repatriation to Japan of some of the abductees. The policy 
course takes into consideration the intentions of Prime Minister 
Fukuda, who has placed emphasis on dialogue with the DPRK, and 
reflects a switch in policy away from the hard-lined stance of the 
Abe administration to a dialogue line. 
 
Foreign Minister Komura, meeting the press today after the cabinet 
meeting, said, "It is clear that if even some (of the abducted 
victims) return to Japan, that will be progress." He continued: "If 
there is progress, we, too, will take actions in response to the 
level of that progress. That is only natural if relations are to 
improve between Japan and the DPRK." He suggested that depending on 
North Korea's responses, there was the possibility of considering 
easing sanctions measures and providing economic assistance. 
 
Until now, the government has been vague about defining "progress," 
but the aim now is to urge compromise on the part of North Korea, 
which has taken a hard-nosed stand on the abduction issue. One can 
say that the Japanese government has shifted policy in order to 
bring about in the end a repatriation of all (abductees) who remain 
alive, which the Japanese has presented as a condition for the 
normalization of relations between Japan and North Korea. This will 
apparently become subject to discussion in the upcoming 
working-group meeting between Japan and the DPRK. 
 
(3) Okinawa Defense Bureau chief reveals US plan to build CALA at 
Futenma alternative facility; Enhancement of functions becomes 
clear 
 
RYUKYU TIMES (Page 2) (Full) 
October 26, 2007 
 
Okinawa Defense Bureau Director-General Akira Kamata in a regular 
press meeting on Oct. 25 admitted that the US military is planning 
to build a combat aircraft loading area (CALA) at the facility 
replacing Futenma Air Station. Although the plan has already been 
revealed through a US government document, this is first time that a 
Japanese government source has admitted it. Futenma Air Station is 
not equipped with such a facility. It has become clear that base 
functions would be enhanced in addition to the relocation. Kamata 
also said about the large (214-meter-long) quay specified in the US 
government document: "As far as what was confirmed with the Defense 
Ministry, there is no plan to build a quay capable of functioning as 
a military port." 
 
The construction of a CALA at the alternative facility is not 
included in the final agreement reached at the Japan-US talks in May 
¶2006. Futenma Air Station has the (1) heliport function to transport 
troops, (2) air-tanker operational function, and (3) emergency use 
function. The agreement says that of them, only the heliport 
function will be moved to the new facility. 
 
Kamata said: "Of the three functions of Futenma Air Station, the 
idea of relocating just the heliport function is correct. As for 
Futenma Air Station, ammunition is now loaded at Kadena Air Base. 
Because the operations are expected to be hampered due to the 
relocation (of the heliport function) to the Henoko district, (a 
CALA) will be built at the new site." 
 
 
TOKYO 00005018  003 OF 009 
 
 
The function and equipment that were not revealed initially will now 
be increased following the deployment of Ospreys, the US 
next-generation mainstay transport aircraft. Once a CALA is built, 
helicopters and Ospreys that are loaded at the alternative facility 
might fly over Nago City and Higashi Village. A local backlash is 
inevitable. 
 
To a question asking whether fighters will be loaded with ammunition 
as well, an Okinawa Defense Bureau official said, "We hear 
helicopters will be loaded with ammunition." 
 
Kamata also indicated that the ministry has sent to Gov. Hirokazu 
Nakaima an outline of local views regarding a notice specifying the 
details of an environment assessment for building the alternative 
facility. He said: "We will collect objective data in the assessment 
process and politely explain the results to the prefectural and 
local governments." 
 
In addition, about the construction of a US Army firing range at 
Range 3 on Camp Hansen in Kin Town, Kamata noted, "The US military 
informed us on October 2 that it has completed a contract with a 
contractor." 
 
A CALA is a place to load aircraft with missiles and other 
ammunition. US military regulations stipulate that in building a 
CALA, a certain distance must be kept from residential areas and the 
like. Futenma Air Station does not have a CALA due to the difficulty 
keeping a safe distance. 
 
(4) Japan's Burma policy nowhere in sight: Harsh views from within 
and outside country on continuation of aid 
 
SANKEI (Page 6) (Full) 
October 26, 2007 
 
Video journalist Kenji Nagai was gunned down while filming 
demonstrations in Burma. Following the incident, the Japanese 
government took a stance of protesting to Burma by canceling one aid 
item. The government does not intend to curtail any more aid 
programs for humanitarian reasons. However, views from within and 
outside the country are harsh toward continuation of aid to a nation 
controlled by a military junta. 
 
Japan provided official development aid (ODA) worth approximately 3 
billion yen to Burma since fiscal 2003, combining grant aid and 
technical cooperation. It once extended a massive amount of grant 
aid in order to relieve the debt-ridden nation. However, in recent 
years, it has been focusing on a human resources program and 
anti-drug measures due to the political situation in Burma. 
 
In extending aid to the nation, the government is attaching 
importance to measures to prevent infectious diseases, such as 
malaria. According to statistics issued by the World Health 
Organization (WHO), the number of patients affected by malaria 
reaches approximately 600,000 a year, of whom 3,000 people die of 
this disease. The Japanese government provided roughly 144 million 
yen in fiscal 2005 and fiscal 2006 in terms of track record and has 
earmarked 157 million yen for fiscal 2007-2009. 
 
Commenting on Japan's aid, Masahiro Kumomi, leader of the Major 
Infectious Diseases Measures Project Team of the Japan International 
Corporation Agency (JICA) explained, "Japan's aid attaches 
 
TOKYO 00005018  004 OF 009 
 
 
importance to spreading technology, instead of providing equipment. 
Japan investigates affected people and supply medicines to make up 
for portions used. It is now in the process of establishing an early 
discovery and early treatment system, by training nurses." 
 
However, Kei Nemoto, a professor at Sophia University, is skeptical 
whether people receive pharmaceuticals Japan sent. He said, "Japan 
should work on the junta to do that job." 
 
Kumomi rebuts this view with assurance, "Since there are persons 
that take charge of money, it is improbable that money is spent for 
other purposes." He thus stressed that there is no problem about 
securing transparency of aid. 
 
One Foreign Ministry official called for continuation of aid from a 
geopolitical perspective: "The military junta is amazingly 
inward-looking. However, we cannot abandon a country sandwiched 
between two powers -- China and India." There is also a deep-rooted 
view among government officials that since there are persons who 
will lead the country in the future among technocrats, Japan should 
continue a program to invite them to Japan. 
 
However, many experts take the position that though Japan's 
influence had been strong until around 1995, it now has little 
influence. This view indicates the fact that since Burma is making 
profits by exporting natural gas, even if Japan stops ODA, its 
impact would be small, as an official of the Japan External Trade 
Organization said. 
 
Despite the junta's suppression of demonstrators and Nagai's death, 
there is no mood for discussing a policy toward Burma in the Diet. 
One government source made this comment with a sigh, "Above all 
things, the major problem is that Japan has no Burma policy." 
 
(5) First month of Fukuda cabinet (Part 1): Concern about growing 
present of Kasumigaseki in Prime Minister's Official Residence 
 
NIKKEI (Page 2) (Full) 
October 25, 2007 
 
The Fukuda cabinet will mark the first month tomorrow since its 
inauguration. Prime Minister Yasuo Fukuda has been trying to get 
through the current extraordinary Diet session, while taking a low 
profile. But enacting quickly the new legislation to continue the 
Maritime Defense Force's (MSDF) refueling operation in the Indian 
Ocean has become a hopeless situation. With the shadowy presence of 
the bureaucracy in the background, Fukuda has found it difficult to 
lead the opposition camp, having in mind the next House of 
Representatives election. 
 
"What should I say about the consumption tax issue?" Fukuda 
telephoned Nobumitsu Hayashi, former director of the Finance 
Ministry's Overall Coordination Division, on Sept. 13, the day 
before Fukuda announced his candidacy for the presidential election 
of the ruling Liberal Democratic Party (LDP). Hayashi, who was a 
secretary to then Chief Cabinet Secretary Fukuda, immediately 
 
SIPDIS 
brought him a paper detailing how to respond to the questions. 
Assisted by Hayashi and Kimihiro Ishigane of the Ministry of Foreign 
Affairs (MOFA), Fukuda came up with an administrative concept and 
the goals of the cabinet. Fukuda has neither a right-hand man nor a 
close aide in political circles. Although Chief Cabinet Secretary 
Nobutaka Machimura is an advisor to Fukuda in the foreign policy 
 
TOKYO 00005018  005 OF 009 
 
 
area, he has been at Fukuda's side for only one month. They 
reportedly have a businesslike relationship. Given that fact, it is 
only natural for Fukuda to use the bureaucracy in consideration of 
his strategy of playing up stability and a sense of balance. 
 
Fukuda eats dinner at his private residence almost always with his 
secretaries. He invited on Oct. 19 senior ruling coalition members 
 
SIPDIS 
for the first time to the Prime Minister's Official Residence. He 
spent almost one month just dealing with day-to-day duties. 
 
The influence of the Finance Ministry has grown over the past one 
month, exceeding Fukuda's expectation. The typical example is the 
government-ruling coalition consultative council on social security 
and tax system reform, which held its first meeting on Oct. 22. 
 
Although the purpose of the establishment of the council is to 
strengthen ties between the government and the ruling camp, it is 
clear that the aim is to exclude the Council on Economic and Fiscal 
Policy. It can be said that the real purpose of the council is that 
the Finance Ministry together with senior ruling camp members 
control discussions by excluding private-sector persons. The 
advisory council is modeled after the council on fiscal and 
structural reform in the Hashimoto government. The Hashimoto 
government raised the consumption tax to 5 PERCENT  following the 
council's recommendation; as a result, the ruling Liberal Democratic 
Party (LDP) suffered a crushing defeat in the 1998 Upper House 
election. In the Oct. 22 meeting, when LDP Upper House Chairman 
Hidehisa Otsuji said, "I wonder why there is only 30 minutes for the 
tax-rate issue, which is supposed take a lot of time, even for just 
discussing the national burden," Machimura and Finance Minister 
Fukushiro Nukaga changed their countenances. 
 
It is ironic that the bureaucratic organization, on which Fukuda 
relies, is putting the skids to his government. In addition to a 
series of scandals involving the Defense Ministry, it was discovered 
that the Health, Labor and Welfare Ministry had left documents 
listing the names of patients who had contracted hepatitis-C caused 
by contaminated blood products. In a meeting on the night of Oct. 22 
with his secretaries, Fukuda raised his voice: "What happened with 
you, bureaucrats? I don't understand!" 
 
In a meeting on the evening of the 24th with senior LDP prefectural 
chapter members, the prime minister brought on laughter by saying: 
"I have bowed my head every day. How long should I have to do this? 
I want to do something that will make you happy." How will Fukuda 
display his own political imprint in a way that would attract the 
public? There is not much time to lose. 
 
(6) Prime Minister Fukuda after one month in office still a "safe 
driver" with no reference to his vision of the state 
 
SANKEI (Page 5) (Excerpts) 
October 25, 2007 
 
Since he came into office on Sept. 26, a month ago, Prime Minister 
Yasuo Fukuda has continued to take a low-posture approach to the 
opposition camp, reflecting the state of the reversal of strengths 
between the ruling and opposition parties in the House of 
Councilors. Uncertainty is looming over the fate of the government's 
antiterrorism special measures bill due to the Democratic Party of 
Japan's (DPJ) unclear stance, but the prime minister has shown no 
intent to display his leadership in managing policies and Diet 
 
TOKYO 00005018  006 OF 009 
 
 
business, apparently trying to play the role of a "safe driver." 
Calling his cabinet as having "its back to the wall," Fukuda is 
moving ahead by avoiding anything that would have a "Fukuda policy 
imprint." 
 
On the policy front, the prime minister has set forth such vague 
principles as recovery of public trust in politics and has come up 
with a slogan, "independence and coexistence," but his specific 
policies remain unknown. An aide to the prime minister said: "He has 
entirely entrusted Diet business, including legislation, to the 
ruling coalition." 
 
The prime minister, though, has indicated his eagerness to extend 
the Maritime Self-Defense Force's (MSDF) refueling mission in the 
Indian Ocean and to resolve the issue of Japanese nationals abducted 
by North Korea. In contrast, he has made no remarkable statements on 
issues related to his vision of the state, such as educational 
reform and constitutional revision, which former Prime Minister 
Shinzo Abe tackled, and the issue of whether to allow the 
Self-Defense Force to use the right to collective self-defense 
rights. A mid-ranking LDP official commented: "He is trying to 
remove the Abe policy imprint while keeping silent about his own." 
 
The Council on Economic and Fiscal Policy in a meeting on Oct. 17 
presented a provisional calculation calling for a hike in the 
consumption tax, implying a policy switch to tax increases. 
 
The actual situation is that the government has tolerated rollback 
operations by the bureaucracy, which is opposed to administrative 
reform that the former Abe administration espoused. Fukuda has 
repeatedly said that the government will study in a cautious manner 
such ideas as establishing a human-resource agency to take care of 
reemployment of retired bureaucrats and abolishing the career system 
for national public servants. An official of the Prime Minister's 
Official Residence (Kantei) explained: "The prime minister is a good 
listener and a commonsense person. He is still in a stage of 
intently listening to others talk." 
 
In the LDP, a former cabinet minister said: "Colorlessness is the 
Fukuda cabinet's policy identity." But Chief Cabinet Secretary 
Nobutaka Machimura remarked in a press conference yesterday: 
"Preparations are underway for the cabinet to be able to gradually 
demonstrate its own policy identity. The cabinet will pour its 
energies not into work under deadlines, but into tasks whose results 
can be positively dispatched." 
 
Fukuda strengthening defense to dodge opposition's attacks 
 
By Atsuo Ito, political analyst 
 
Prime Minister Yasuo Fukuda devoted himself to buttressing his 
defenses over the past month in an effort to minimize major 
setbacks, without aiming at attaining a score. Fukuda is doing well 
in a sense, given the state of the reversal of strengths between the 
ruling and opposition parties. The DPJ must see Fukuda as a person 
difficult to attack. 
 
Despite the disclosure of a series of scandals, including cozy ties 
between former Vice Defense Minister Takemasa Moriya and a defense 
contractor, a data error of records of MSDF refueling, and the issue 
of tainted blood that caused hepatitis, public criticism of the 
Fukuda administration has not escalated. His low profile and posture 
 
TOKYO 00005018  007 OF 009 
 
 
of good deception have worked somewhat effectively. 
 
Under the Koizumi and Abe administrations, theater-type politics 
were carried out for about six and a half years. The people are now 
tired of going to the theater. Fukuda, taking advantage of this 
trend, seems to be trying to keep the people less interested in 
politics. The Prime Minister Fukuda is resorted to the possibility 
of the LDP losing a considerable number of its seats in the next 
House of Representatives election. For him, the most important 
challenge is to reduce the number of lost seats. 
 
The prime minister's strategy of resorting to an exclusive 
defense-oriented policy is a major gamble for the government. There 
is no guarantee for the administration to be able to ride under the 
current momentum into the election given the current situation. It 
is also unlikely that the prime minister, who has no clear-cut 
political ideology, will put forth a patchwork ideology or play up 
his political leadership. The Fukuda administration's fate might 
depend on the outcome of a match of endurance between the prime 
minister and the people. 
 
(7) Personal network of Prime Minister Yasuo Fukuda (Sapio 
10/24/2007 p39) 
 
(8) TOP HEADLINES 
 
Asahi: 
Record low of 70 PERCENT  of beds being used at public hospitals: 
Internal Affairs Ministry to issue guidelines to improve management 
 
Mainichi: 
Information remaining credit: 3 trillion yen not registered, 
providing breeding ground for excessive credit contracts 
 
Yomiuri: 
English language school NOVA to file for protection under the 
bankruptcy law with debts exceeding 50 billion yen: President 
Samadhi to be dismissed possibly today 
 
Nikkei: 
Government comes up with new policy to find breakthrough in 
stalemated Japan-DPRK relations; Extending assistance in stages, if 
progress is made on abduction and nuclear issues 
 
Sankei: 
US ambassador to Japan tells president not to remove DPRK from US 
list of state sponsors of terrorism, creating ripples in 
reconciliation policy 
 
Tokyo Shimbun: 
Former Yamada Corp. managing director also treated former Defense 
Minister Kyuma to inaugural dinner in December last year 
 
Akahata: 
Medical insurance fees to tope 80,000 a year on average under new 
medical service system for elderly people aged 75 or older 
 
(9) EDITORIALS 
 
Asahi: 
(1) False food labeling is no longer acceptable 
(2)  Global financial uncertainty: Root cause is US deficit 
 
TOKYO 00005018  008 OF 009 
 
 
 
Mainichi: 
(1) Former Meat Hope president under arrest: Root out false labeling 
of food products 
(2) New antiterror legislation: Law is not necessary if discussion 
based on conventional wisdom is accepted 
 
Yomiuri: 
(1) Candidates for lay judges: Can they decline nomination, citing 
their thought and belief? 
(2) Kim Dae Jung abduction incident: Abduction by any country is 
violation of sovereignty 
 
Nikkei: 
(1) Council on Economic and Fiscal Policy also proposes adopting tax 
formula for paying pension benefits from government coffer 
(2) Government should admit its fault and take hepatitis measures 
 
Sankei: 
(1)  One month since Fukuda taking office as prime minister: Trial 
period over 
(2) Probing the moon by China: It is questionable if its aim is to 
explore resources and boost national prestige 
 
Tokyo Shimbun: 
(1) One month since Fukuda taking office as prime minister: 
Controlling the bureaucracy pending issue 
(2) Motor show: Development of eco-cars visible 
 
Akahata: 
(1) Results of nationwide academic performance test: Face danger of 
eroding education 
 
(10) Prime Minister's schedule, October 25 
 
NIKKEI (Page 2) (Full) 
October 26, 2007 
 
09:18 
Attended a national secretaries general and policy research council 
chairmen meeting held at the Grand Prince Hotel Akasaka. 
 
10:17 
Met former Prime Minister Mori at the Kantei. 
 
11:04 
Met LDP Comprehensive Agricultural Administration Research 
Commission Chairman Hori, followed by Natural Resources and Energy 
Agency Director-General Mochizuki. 
 
12:16 
Met Chief Cabinet Secretary Machimura. 
 
13:48 
Attended the Autumn Imperial Garden Party. 
 
15:39 
Met JA Zenchu President Miyata at the Kantei in the presence of 
Machimura. 
 
16:10 
Met National Police Agency Director-General Yoshimura. Afterward 
 
TOKYO 00005018  009 OF 009 
 
 
talked with Prime Minister Prodi of Italy on the phone. Later met 
Cabinet Intelligence Director Mitani. 
 
18:17 
Attended a Council on Economic and Fiscal Policy meeting. 
 
20:01 
Arrived at his residence in Nozawa. 
 
SCHIEFFER