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UNCLAS SECTION 01 OF 12 TOKYO 005045 
 
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 10/31/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Vice Foreign Minister Yachi briefs Ambassador Schieffer on his 
Washington visit (Mainichi) 
 
MSDF fueling mission: 
5) MSDF also provided refueling service in the Persian Gulf but 
Defense Ministry denies that vessel was involved in the Iraq war 
(Asahi) 
6) MSDF lost ship logs from two more destroyers (Asahi) 
7) No landing point seen on continuing MSDF refueling mission 
following the Fukuda-Ozawa meeting (Nikkei) 
8) Full-scale debate to start in Diet now on new refueling bill 
(Tokyo Shimbun) 
9) Change in atmosphere of Diet's special antiterrorism committee 
following the Fukuda-Ozawa meeting (Mainichi)    7 
10) Prime Minister Fukuda calls for a permanent SDF dispatch law as 
"the next important challenge" (Asahi)    8 
 
Repercussions from Moriya scandal: 
11) Former Vice Defense Minister Moriya suspected now of having 
perjured himself during his sworn Diet testimony (Sankei)    8 
12) Tokyo District prosecutors have receipts to show cost of 
Moriya's wining and dining tab average 1 million yen a month, may 
prosecute him for bribery (Mainichi)    9 
 
13) Prime Minister Fukuda wants discretionary contract system 
overhauled following Defense Ministry scandal to include 3rd party 
oversight (Tokyo Shimbun)    10 
 
Political agenda: 
14) Fukuda wants Ozawa's agreement that Diet management system needs 
new rules, given the two power centers in the Diet (Yomiuri)    10 
15) Justice Minister Hatoyama blasted for Al Qaeda remark; Fukuda 
calls it "inappropriate" (Yomiuri)    11 
 
Japan-ROK relations: 
16) South Korean government "apologizes" to Japanese government for 
1973 KCIA kidnapping of Kim Dae Jung from Japan (Asahi) 
17) Kim Dae Jung extremely unhappy with GOJ's acceptance of ROKG 
apology for his abduction since the purpose was to kill him and the 
order came from the top (Asahi)    12 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Leading construction material maker Nichias fabricates performance 
of fire-resistant materials for 100,000 houses starting in 2001 
 
Mainichi: 
Defense equipment firm spent one million yen a month to entertain 
Moriya 
 
Yomiuri & Tokyo Shimbun: 
Education panel recommends increasing class hours 
 
 
TOKYO 00005045  002 OF 012 
 
 
Nikkei: 
Fair Trade Commission to strengthen M&A oversight 
 
Sankei: 
Fukuda, Ozawa to meet on Nov. 2 again; "Large coalition" concept 
gradually taking on realistic touch 
 
Akahata: 
JCP member Kasai in Lower House meeting calls for supporting 
political moves for peace in Afghanistan, instead of backing war 
 
2) EDITORIALS 
 
Asahi: 
(1) Prime minister and DPJ head should exchange views on key issues 
before people 
(2) Justice Minister Hatoyama's al-Qaeda link remark quite 
inconsiderate 
 
Mainichi: 
(1) We would like to listen to open debate between LDP, DPJ heads 
(2) Will problems be resolved only with increase in class hours? 
 
Yomiuri: 
(1) Set off by party head talks, LDP, DPJ should try to establish a 
stable political system 
(2) Turkey's choice may lead to further destabilizing Middle East 
 
Nikkei: 
(1) We expect another party head meeting to contribute to breaking 
the current impasse 
(2) Rise of oil price to 90 dollars per barrel causing financial 
turmoil 
 
Sankei: 
(1) Two major parties must think of their responsibility 
(2) Education panel should think more about failure of education 
 
Tokyo Shimbun: 
(1) Fukuda, Ozawa should openly debate in Diet 
(2) Efforts needed to prevent expansion of differences in academic 
abilities 
 
Akahata: 
(1) We must have Japan Peace Convention end successfully 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 30 
 
NIKKEI (Page 2) (Full) 
October 31, 2007 
 
09:01 
Attended a cabinet meeting in Diet. Chief Cabinet Secretary 
Machimura remained. Afterwards, met with LDP Secretary General 
Ibuki. 
 
10:03 
Met with DPJ President Ozawa, joined by Ibuki and DPJ Secretary 
General Hatoyama and others. 
 
 
TOKYO 00005045  003 OF 012 
 
 
11:44 
Met with Machimura at Kantei. Later, met with Deputy Chief Cabinet 
Secretary Ono. 
 
SIPDIS 
 
13:00 
Attended a session of the Council for Gender Equality at Kantei. 
Afterwards, met with MOFA Foreign Policy Bureau Director-General 
Kawai and Defense Ministry Operational Bureau Director General 
Takamizawa. 
 
19:12 
Arrived at his private residence in Nozawa. 
 
4) Vice foreign minister meets with US ambassador to report on 
recent visit to US 
 
MAINICHI (page 5) (Full) 
October 31, 2007 
 
United States Ambassador to Japan Thomas Schieffer and Vice Foreign 
Minister Shotaro Yachi met at the Foreign Ministry for about 40 
minutes yesterday. Yachi explained his recent meeting with Deputy 
Secretary of State Negroponte and other US government officials in 
 
SIPDIS 
the US. The two reportedly also exchanged views on such issues as 
delisting North Korea as a state sponsor of terrorism and prospects 
for the ongoing Diet deliberations on the government's antiterrorism 
special measures bill. 
 
5) MSDF fuel supplied in Persian Gulf as well 
 
ASAHI (Page 4) (Full) 
October 31, 2007 
 
In connection with the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean, the MSDF has supplied fuel twice in 
the Persian Gulf, sources revealed yesterday. It is the first time 
the MSDF has been found to have supplied fuel in the Persian Gulf. 
According to the Defense Ministry, the MSDF's fuel supplied in the 
Persian Gulf was not used for any purposes other than those under 
the Antiterrorism Special Measures Law. "The fuel we supplied was 
used for Operation Enduring Freedom (OEF) against terrorism," an 
official of the Defense Ministry said. 
 
The Defense Ministry briefed the leading opposition Democratic Party 
of Japan (Minshuto) in a meeting of its foreign affairs and defense 
divisions yesterday on where and how often the MSDF provided fuel. 
 
According to the data shown by the Defense Ministry, the MSDF 
conducted a total of 777 fuel supplies up until the end of August, 
including twice in the eastern waters of the Persian Gulf. The 
Defense Ministry explains that the two fuel supplies were conducted 
in or after 2004, well after May 2003 when major conflict ended in 
Iraq, and that the supplied fuel was not used for military 
operations in Iraq. The Defense Ministry has not revealed the 
nationalities of vessels refueled by the MSDF. 
 
The government, in its masterplan created under the antiterror law, 
describes the scope of MSDF activities "in the Indian Ocean 
(including the Persian Gulf)." As seen from this description, the 
government had anticipated MSDF activities in the Persian Gulf from 
the start. 
 
 
TOKYO 00005045  004 OF 012 
 
 
In addition to those fuel supplies in the Persian Gulf, the MSDF 
conducted 613 fuel supplies in the Gulf of Oman, 129 in waters north 
of Somalia and in the North Arabian Sea, 28 in Aden Bay, 3 in the 
middle of the Indian Ocean, and 2 in waters off Mumbai. 
 
6) 2 MSDF destroyers' logbooks also discarded 
 
ASAHI (Page 30) (Full) 
October 31, 2007 
 
The Maritime Self-Defense Force discarded a logbook of the Towada, a 
supply ship engaged in refueling activities in the Indian Ocean. In 
this connection, the MSDF's staff office revealed yesterday that two 
other destroyers' logbooks had been also discarded during their 
retention period provided in the MSDF's internal rules. The MSDF is 
mulling whether to punish those involved. At the same time, the MSDF 
will study how long and where to retain logbooks, including 
permanent filing. 
 
The Maritime Staff Office discovered that the Towada's logbook for 
the period from July 2003 through December 2003 was mistakenly 
discarded in July this year. The MSDF therefore investigated a total 
of 261 MSDF vessels, including destroyers and submarines. The 
discarded logbooks recorded when and where the MSDF supply ships 
provided fuel and the names of vessels fueled by them. 
 
According to the Maritime Staff Office, the logbooks discarded 
during their retention period belonged to two destroyers, including 
a logbook of the Mineyuki for the period of 11 months from October 
¶2003. Those discarded logbooks have nothing to do with the MSDF's 
underway replenishment in the Indian Ocean, MSO sources said. The 
MSDF is looking into why those logbooks were discarded. 
 
"We will check to see if there's no problem with the current way of 
filing documents," MSDF Chief of Staff Eiji Yoshikawa said. 
 
7) Fukuda, Ozawa wide apart over "refueling"; With no settlement 
line in sight, second meeting set for Nov. 2 
 
NIKKEI (Page 3) (Abridged slightly) 
October 31, 2007 
 
The first meeting yesterday between Prime Minister Yasuo Fukuda and 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
ended without finding any common ground on the new legislation for 
continuing the Maritime Self-Defense Force's refueling operation in 
the Indian Ocean. The two leaders will meet again on Nov. 2. Neither 
the ruling nor the ruling camp has a winning hand to play in the 
divided Diet. Psychological warfare is likely to continue to find a 
political settlement line, including Lower House dissolution for a 
snap general election and a grand coalition by the Liberal 
Democratic Party and DPJ. 
 
The face-to-face meeting between Fukuda and Ozawa, which was held in 
the standing committee chairmen's room on the third floor of the 
Diet building, lasted for about one hour. The first and last 10 
minutes were joined by the secretaries general and Diet affairs 
chiefs of the LDP and DPJ. Although both Fukuda and Ozawa said that 
they had not touched on Lower House dissolution for a genera 
election or a Diet extension, they concealed what they actually 
discussed. 
 
 
TOKYO 00005045  005 OF 012 
 
 
The meeting was held at the request of Fukuda. With the current Diet 
session scheduled to end in less two weeks, there is no prospect for 
the enactment of the new refueling legislation. During his planned 
visit to the United States in mid-November, Fukuda is expected to be 
pressed for an explanation. 
 
Speculation for a grand coalition 
 
The refueling legislation is not the only concern. If this situation 
persists, turbulence is certain to continue in the next regular Diet 
session, in which the government is expected to present over 100 
bills. 
 
Speculation is afoot that in order to find a breakthrough in the 
deadlocked situation, Fukuda in the meeting touched on the idea of 
forming a grand coalition with the DPJ. Former LDP Secretary General 
Hidenao Nakagawa yesterday implied to a grand coalition, saying: 
"The political situation is alarming. The question is how to resolve 
the lopsided situation in which people sharing the same idea belong 
to different parties. It is important to combine efforts for the 
sake of Japan's future." 
 
Asked by the press about the idea of forming a grand coalition, 
Fukuda said: "We must come up with ways to move (the Diet). We 
haven't found them yet at this point." 
 
Meanwhile, Ozawa attended a DPJ executive meeting last evening in 
which he simply described his meeting with Fukuda as a session with 
little substance. 
 
Asked by a DPJ executive if something like homework cropped up, 
Ozawa elusively replied, "(The prime minister) seemed to be in a 
fix, not knowing what to do." 
 
DPJ also at stalemate 
 
Some observers attribute Ozawa's compliance with Fukuda's call for 
the closed-door meeting yesterday, despite a party-head debate being 
set for Oct. 31, to his deadlocked approach to the political 
situation. 
 
Although the DPJ remains adamantly opposed to the continuation of 
the MSDF's refueling operation, the party is having difficulty in 
coming up with its own counterproposal. How far the party can keep 
high public support with oppose-everything policy course is 
unclear. 
 
In the wake of a series of suspicions involving the Defense 
Ministry, some DPJ lawmakers are skeptical about Ozawa's decision to 
have the party-head meeting. Secretary General Yukio Hatoyama said 
to reporters, "I don't think it will do the DPJ any good." 
 
A variety of speculations and cautious views are simmering in the 
ruling bloc about Fukuda-Ozawa talks. The dominant view is that what 
the prime minister can offer in exchange for the DPJ's cooperation 
for the new refueling legislation would be talks on a timeframe for 
Lower House dissolution for a general election as well as for 
forming a grand coalition. 
 
Shortly before the Fukuda-Ozawa meeting yesterday, LDP Secretary 
General Bunmei Ibuki told those around him with a stern look: "If I 
let the prime minister slip into a pitfall, I will lose my job." 
 
TOKYO 00005045  006 OF 012 
 
 
Ozawa is known for his cunningness in one-on-one sessions. Many 
ruling party lawmakers think that Ozawa would outmaneuver his 
opponent in a closed-room session. 
 
New Komeito alarmed 
 
The New Komeito, which distanced itself from Ozawa when his party 
Shinshinto (New Frontier Party) fell apart, is especially alarmed at 
the talks between Fukuda and Ozawa. Secretary General Kazuo Kitagawa 
asked Fukuda to talk only about the new legislation for fear that he 
would refer to a timetable for Lower House dissolution and the grand 
coalition vision in return for the DPJ's cooperation on the new 
legislation. The New Komeito thinks the talks would put the ruling 
coalition at a disadvantage. 
 
After his meeting with Ozawa, Fukuda called New Komeito 
Representative Akihiro Ota from his office to tell him not to 
worry. 
 
Speculations and a sense of alarm also rocked the LDP. Upper House 
Secretary General Masaaki Yamasaki in a press conference yesterday 
 
SIPDIS 
criticized the meeting, saying: "It had a closed-door feature. I 
remain dissatisfied with it." Learning of Yamasaki's comment, Fukuda 
told reporters, "Calling it a closed-door meeting went too far." 
Diet Affairs Committee Chairman Tadamori Oshima also said 
disapprovingly: "The meeting was requested by this side. (Yamasaki's 
comment) needs a correction." 
 
8) Full-scale debate on new refueling bill starts, effect of 
Fukuda-Ozawa talks? 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 31, 2007 
 
Changing its stance of just pursuing scandals involving the Defense 
Ministry in sessions of the House of Representatives Social 
Committee on Antiterrorism, the main opposition Democratic Party of 
Japan (DPJ or Minshuto) yesterday carried out a full-scale debate 
with the government on the new antiterrorism special measures bill. 
This appears to be the effect of the first meeting between Prime 
Minister Yasuo Fukuda and DPJ President Ichiro Ozawa. 
 
Only two of the seven DPJ lawmakers who questioned the government at 
yesterday's committee session brought up the scandal involving 
former Administrative Vice Defense Minister Takemasa Moriya. The 
remaining five lawmakers raised questions about the new 
antiterrorism bill, with Akihisa Nagashima asking, "A new law would 
allow only supplying oil. Is this all right?" A senior ruling 
coalition Diet Affairs Committee member praised the largest 
opposition party's approach, saying, "It was a forward-looking 
debate." 
 
The DPJ had taken a position of not responding to deliberations 
after Oct. 31 unless the government promises to summon a responsible 
official for the cover-up of the Maritime Self-Defense Force's 
underreport of fuel amount to testify as an unsworn witness. The 
leading opposition party changed its position in a committee 
directors meeting yesterday, however. The DPJ agreed to hold 
question-and-answer sessions on Oct. 31 and Nov. 2, even though its 
demand for the unsworn Diet testimony has not yet been accepted. 
 
Depending on the result of the second round of Fukuda-Ozawa talks 
 
TOKYO 00005045  007 OF 012 
 
 
slated for Nov. 2, however, the DPJ might take a hard-line stance 
again. 
 
9) DPJ suddenly softens attitude in antiterrorism committee meeting 
after Fukuda-Ozawa talks 
 
MAINICHI (Page 5) (Full) 
October 31, 2007 
 
The House of Representatives' special committee on antiterrorism and 
Iraq support held a question-and-answer session yesterday in the 
presence of Prime Minister Yasuo Fukuda. The meeting came the day 
after former Vice Defense Minister Takemasa Moriya's testimony on 
alleged favors given to an interest party in return for having been 
treated to free golf, so many had anticipated that questions would 
be focused on Moriya's scandal. But the atmosphere was totally 
different because of the effect of the talks that had been held 
early yesterday between the leaders of the Liberal Democratic Party 
(LDP) and the Democratic Party of Japan (DPJ). A number of members 
of the government and the DPJ made statements indicating a desire to 
grope for compromises. 
 
DPJ members Issei Koga: "I have a suggestion. Sugar cane is produced 
in Afghanistan. How about making a plant (for biomass) there?" 
 
Prime Minister Fukuda: "That is a very fine suggestion. Your idea is 
quite reasonable." 
 
When Fukuda made the above remark in a modest way, laughter broke 
out. 
 
In the meeting yesterday, DPJ members who took the floor as 
questioners criticized Moriya but asked questions mainly about the 
results of the Maritime Self-Defense Force's (MSDF) refueling 
mission in the Indian Ocean. Though they did not express their 
support for the mission, many of them tried to find common ground by 
asking about the government's basic views about the DPJ-proposed aid 
for people's livelihood and permanent legislation that provides for 
conditions for dispatching SDF troops overseas. 
 
The DPJ had demanded just after the testimony of Moriya that the 
Diet should first of all carry out intensive deliberations on the 
alleged cover-up of misreporting of MSDF-provided fuel and summon 
the defense section chief of the Maritime Staff Office at that time 
to the Diet as an unsworn witness. But in an executive meeting of 
the said committee held yesterday noon, the DPJ laid aside the 
demand. The main opposition party also agreed to hold the 
committee's sessions on Oct. 31 and Nov. 1. An LDP member of the 
committee commented: "The DPJ's attitude suddenly changed after both 
parties decided to hold the party head talks. I cannot guess what is 
behind its about-face." 
 
10) Fukuda eyes creating permanent law for overseas missions 
 
ASAHI (Page 4) (Abridged) 
October 31, 2007 
 
Prime Minister Fukuda yesterday attended a meeting of the House of 
Representatives Special Committee on Antiterror Measures, during 
which he showed his strong willingness to establish a general or 
permanent law allowing Japan to send the Self-Defense Forces for 
overseas missions without creating a time-limited special measures 
 
TOKYO 00005045  008 OF 012 
 
 
law. "It's an important challenge for the future," Fukuda stated 
before the committee. "We will have to work out such an opportunity 
(for discussion) at an early date," he added. In the leading 
opposition Democratic Party of Japan (Minshuto) as well, there are 
strong voices desiring to establish a general law. Fukuda is 
presumably aiming for the DPJ's cooperation in the security area. He 
was replying to a question asked by Akihisa Nagashima from the DPJ. 
 
11) Moriya suspected of giving false testimony: Employees of Nihon 
Mirise found to have attended MSDF CX engine procurement meeting 
 
SANKEI (Page 1) (Full) 
October 31, 2007 
 
Sankei Shimbun has learned from several informed sources yesterday 
that questions arose in the Defense Ministry when an employee of 
Nihon Mirise, a firm set up by Motonobu Miyazaki (69), former 
executive director of Yamada Yoko Corp., a trading house 
specializing in defense procurement, was present at a meeting on the 
procurement of engines for the next-generation transport aircraft, 
codenamed CX by the Air-Self Defense Force (ASDF), and that details 
of the matter were reported to former Administrative Vice Defense 
Minister Takemasa Moriya. Regarding this issue, Moriya in his sworn 
testimony on the 29th noted, "I am not aware of the matter." Moriya 
is now suspected of having given false testimony because of this 
clear discrepancy. 
 
According to a related source, the meeting in question was held to 
discuss the procurement of the CX engine. It was held in January 
this year, joined by Defense Ministry officials in charge of the 
technical field and officials from Kawasaki Heavy Industries, which 
is developing the CX aircraft, and from General Electric (GE), a US 
CX engine manufacturer. 
 
Nihon Mirise formally became GE's agent in July this year. However, 
GE's agent at the time was still Yamada Yoko. Therefore, Nihon 
Mirise was an outsider, because it did not have a contract 
relationship with GE at the time. The attendance of an engineer of 
Nihon Mirise was, therefore, became an issue in the ministry. 
 
As a result of talks among Defense Ministry officials in charge and 
other officials closely connected with the CX engine procurement 
issue, the attendance of this engineer was approved as an 
interpreter for GE. According to several related sources, these 
details were reported to Moriya. He reportedly did not find the 
employee's presence a problem. 
 
New Komeito lawmaker Shigeyuki Tomita questioned Moriya on this 
issue during his sworn testimony in the Lower House Special 
Committee on Prevention of Terrorism on the 29th. Pointing out the 
attendance of an official of Nihon Mirise, Tomita asked, "It would 
be impossible for an outsider to attend the defense meeting unless 
he obtained approval from a very influential person." Moriya 
replied, "I am not aware of that fact." 
 
Since testimony given by Moriya is clearly different from testimony 
given by the informed sources, suspicion has arisen that he might 
have given false testimony. 
 
The Diet Testimony Law stipulates that if a person summoned as a 
sworn witness makes false testimony, this person could be given a 
prison sentence from three months up to 10 years. 
 
TOKYO 00005045  009 OF 012 
 
 
 
12) Entertainment expenses for Moriya exceeded 1 million yen a 
month: Tokyo District Public Prosecutors Office obtains sales 
account books with eye on possible bribery 
 
MAINICHI (Top Play) (Full) 
October 31, 2007 
 
It was learned through related sources that former Administrative 
Vice Defense Minister Takemasa Moriya (63) was entertained by 
Motonobu Miyazaki (69), former executive director of Yamada Corp., a 
trading house specializing in defense procurement, at various posh 
clubs in Akasaka, Tokyo. It is said that Yamada Corp. sometimes 
spent more than 1 million yen a month on Moriya. The Tokyo District 
Public Prosecutors Office appears to have had those clubs submit 
sale account books on a voluntary basis. Public prosecutors 
presumably intend to shed light on the full picture of suspected 
payoffs given to Moriya, including free rounds of golf. They are now 
pressing ahead with their investigation with an eye on possible 
bribery. 
 
According to related sources, Miyazaki entertained Moriya at posh 
clubs in Akasaka for many years. Two clubs operating in buildings 
located side-by-side were reportedly used frequently. Miyazaki spent 
up to 1 million yen a month at one club alone. The wife of Moriya 
also joined Miyazaki and Moriya frequently and enjoyed karaoke. 
Miyazaki reportedly entertained other senior Defense Ministry 
officials at clubs as well. 
 
Public prosecutors have reportedly confirmed these facts and had 
those clubs submit sales account books going back several years on a 
voluntary basis. They appear to be investigating details of the 
entertainment of Moriya by Miyazaki, examining the data. 
 
Moriya during sworn testimony on Oct. 29 categorically admitted that 
he was invited to golf by Miyazaki more than 200 times. He also 
testified that he was given a set of golf clubs and paid for his 
golf tours to Hokkaido and Kyushu, which he went with Miyazaki. 
 
It has been found that Moriya chaired the Council on Equipment 
Screening to select a supplier of the CX engine in 2003, when he was 
a vice administrative defense minister, and selected GE, for which 
Yamada Corp. served as its Japan agent. 
 
Under such circumstances, public prosecutors are carefully 
investigating the case, suspecting that Moriya might have considered 
Miyazaki's advantage in return for receiving illegal payoffs, 
including a large sum of treatment of free rounds of golf and wining 
and dining. 
 
13) Prime Minister Fukuda putting in serious effort to revise the 
discretionary-contract system, aware of DPJ concerns; Possibility of 
a third-party oversight 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
October 31, 2007 
 
Prime Minister Fukuda has begun to make a serious effort to revise 
the system of discretionary procurement contracts (for which there 
is no open bidding), considered to be a hotbed for collusion between 
the bureaucracy and private sector. Within the week, a liaison 
conference of concerned ministries and agencies will meet in order 
 
TOKYO 00005045  010 OF 012 
 
 
to tighten up a lax system. 
 
The prime minister in an informal meeting yesterday of his cabinet 
announced: "We need to thoroughly look into government waste and get 
rid of it." He ordered that a third-party oversight panel be 
established in each ministry and agency, and that the Internal 
Affairs Ministry create a government-wide oversight system. 
 
14) Prime Minister Fukuda enthusiastic about creating new rules for 
managing Diet affairs, aims to reach agreement with DPJ President 
Ozawa 
 
YOMIURI (Page 1) (Full) 
October 31, 2007 
 
Prime Minister Yasuo Fukuda last night expressed his desire to reach 
an agreement to create new rules for managing Diet affairs and a 
cooperation system with Ichiro Ozawa, president of the main 
opposition Democratic Party of Japan (DPJ or Minshuto), in their 
planned second talks slated for Nov. 2. He told reporters at the 
Prime Minister's Official Residence: "I will make efforts to break 
in some way the present Diet situation (where the two separate 
parties are the largest party in the two Diet chambers)." 
 
Fukuda emphasized: "The (Diet) is now in a new situation. Under such 
a situation, various approaches are necessary to conduct politics." 
Asked about whether to set up consultative organs between the ruling 
and opposition camps and between the government and the opposition 
bloc, he responded: "I will have to discuss (with Ozawa) that 
issue." 
 
In yesterday's party-head talks, Fukuda told Ozawa: 
 
"We should consider a new way of pushing forward with politics under 
the present political distortion, in which the ruling camp has a 
majority in the House of Representatives while the opposition 
controls the House of Councillors." 
 
The prime minister expects that there will be a positive response 
from Ozawa in their second meeting. 
 
The DPJ and the ruling Liberal Democratic Party (LDP) are now 
carrying out coordination to put off today's one-on-one debate 
between Fukuda and Ozawa to Nov. 7. 
 
15) Justice Minister Hatoyama comes under fire for al-Qaida comment; 
Prime minister says, "Inappropriate" 
 
YOMIURI (Page 2) (Full) 
October 31, 2007 
 
In a Diet interpellation session yesterday, Justice Minister Kunio 
Hatoyama drew stinging criticism for his remark at the Foreign 
Correspondents' Club of Japan on Oct. 29 that a "friend of a friend" 
of his was a member of the al-Qaida terrorist network. 
 
Akihisa Nagashima of the largest opposition Democratic Party of 
Japan (DPJ or Minshuto), in a session yesterday of the House of 
Representatives Antiterrorism Special Committee, demanded the 
dismissal of Hatoyama, saying: "He said it at the Foreign 
Correspondents' Club of Japan of all places. It is as if to say he 
wanted to dispatch (misunderstanding) to the world." 
 
TOKYO 00005045  011 OF 012 
 
 
 
Prime Minister Yasuo Fukuda, meantime, said: "The place where he 
spoke, the contents of his remarks are extremely bad and 
inappropriate." Regarding also to Hatoyama's comment that (al-Qaida 
members) had entered Japan many times, Fukuda said in a strong tone: 
"The justice minister is in a position to crack down on such 
persons. Full investigations should be conducted. I urge him to do 
so." Chief Cabinet Secretary Nobutaka Machimura also said: "He made 
an inappropriate comment at the time when news flies all over the 
world." 
 
In a House of Councillors Judicial Affairs Committee meeting, Nobuo 
Matsuno of the DPJ pointed out: "It can't be helped that other 
countries think the Japanese justice minister is a friend of a 
terrorist indirectly. It's inevitable that he is being criticized 
for making a careless comment." Hatoyama, however, stressed: "I 
reflected on my comment, but I just spoke what I saw and heard." 
 
16) ROK apologizes to Japan regarding diplomatic settlement of 
abduction of Kim Dae Jung 
 
ASAHI (Page 1) (Full) 
October 31, 2007 
 
South Korean Ambassador to Japan Yu Myung Hwan yesterday met with 
Foreign Minister Koumura at the Foreign Ministry and expressed 
regret for South Korea's violation of Japan's sovereignty for its 
involvement in the abduction of (former South Korean President) Kim 
Dae Jung and offered a de facto apology to Japan. This move came in 
response to a South Korean government panel's report released on 
Oct. 24, in which South Korea acknowledged that the Korean Central 
Intelligence Agency (KCIA) was involved in the abduction of Kim. 
Late yesterday, Prime Minister Fukuda told reporters, "I think we 
don't have to pursue the case beyond this," indicating that he would 
put an end to the case diplomatically. 
 
The abduction of Kim, which rocked both Japan and South Korea, ends 
up 34 years later without giving a full picture of the case, 
including whether the purpose of the abduction was to kill Kim or 
whether then President Park Chung Hee gave an order for the 
abduction. 
 
In the session with Yu, Foreign Minister Koumura said, "We take it 
as an apology and a promise to prevent a recurrence of a similar 
case." Koumura conveyed to Yu: "As for investigations, investigators 
will make a decision whether to continue them or not." But the 
investigations have in effect stopped, as investigators need 
cooperation from South Korea. 
 
Meanwhile, visiting Kim Dae Jung yesterday met reporters in Kyoto 
and expressed dissatisfaction: "(The report) failed to shed light on 
the truth." Kim sharply criticized the Japanese government, saying, 
"It violated my human rights." Kim thus made his first comments on 
the report since it was released. 
 
In the 1970s, the Japanese and South Korean governments tried to 
politically settle the abduction of Kim twice in a way not to bring 
charges against the South Korean government. This time, however, the 
South Korean government acknowledged that the KCIA had been involved 
in the case. This means that "the previous basis for the political 
settlement has now collapsed," said a senior Foreign Ministry 
official. 
 
TOKYO 00005045  012 OF 012 
 
 
 
Tokyo, however, previously decided to settle the case if South Korea 
offered an apology to Japan for its violation of Japan's sovereignty 
and without making a diplomatic issue. 
 
17) Abduction of Kim Dae Jung: Kim expresses strong dissatisfaction 
with Japanese government, noting "I was very disappointed with 
Japan" 
 
ASAHI (Page 30) (Excerpts) 
October 31, 2007 
 
Yoshikazu Hirai and Akihiko Kaise 
 
"I was very disappointed with Japan," former South Korean President 
Kim Dae Jung, who had been abducted (by KCIA agents) in Japan 34 
years ago, yesterday said in Kyoto he was visiting at present. 
Speaking of a report concerning a reinvestigation into the abduction 
case, which was released recently, Kim expressed his feelings. His 
words reflected his strong dissatisfaction with the Japanese 
government, for reaching a political settlement with South Korea. 
 
Appearing in a conference room with the help of a cane, Kim sat down 
with a smile. But when questions relating to the abduction were 
posed, Kim altered his facial expression and turned stern throughout 
the conference. 
 
Kim insisted that the purpose of the abduction was to kill him and 
that obviously then President Park Chung Hee gave the abduction 
order. Kim reiterated that the Japanese and South Korean governments 
were both "responsible for shedding light on the abduction case," 
adding, "Those who are responsible should take responsibility." 
 
What was felt from his expression was his disappointment at the fact 
that the abduction incident that put his life in peril was hushed up 
owing to a political settlement between the two governments. Kim 
became notably excited when he talked of the response by the 
Japanese government. "The Japanese government abandoned its 
responsibility to protect me," Kim said and noted that Japan did not 
demand that South Korea allow Kim to leave that country. 
 
A death sentence was passed on Kim in 1980. In this regard, Kim 
criticized the Japanese government, by saying, "I expected the 
Japanese government to save my life, but it did not do anything to 
do so." Kim added that he would like to hear about the Japanese 
government's comment on this matter and continued, "It's hard for me 
to express how much I expected (the Japanese government's action) 
and I was disappointed (at the Japanese government) at the time. I 
was really sad." 
 
SCHIEFFER