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UNCLAS SECTION 01 OF 13 TOKYO 005082 
 
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 11/02/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
MSDF withdrawal from war on terror: 
4) Text of Prime Minister Fukuda's statement on antiterrorism law no 
longer in effect (Mainichi) 
5) Maritime Self-Defense Force (MSDF) withdraws from refueling 
services in Indian Ocean; Party heads meet for 2nd time today to 
discuss what comes next (Yomiuri) 
6) US, British ships will have to fill the gap left by MSDF 
withdrawal from Indian Ocean (Nikkei) 
7) Chief cabinet secretary: No problem if MSDF refueled warships 
doing MIO, as well as engaged in Iraq operations (Yomiuri) 
8) Views of experts Yukio Okamoto and Keio U. Prof. Soeya on the 
withdrawal of MSDF from the war on terror in Afghanistan (Nikkei) 
9) Impact of stopping six years of MSDF refueling operations in the 
Indian Ocean: Japan fears it will lose international trust (Tokyo 
Shimbun) 
10) LDP hopes to restart MSDF refueling operations by passing new 
law; DPJ worried about criticism of its blocking the bill (Mainichi) 
 
 
Afghan aid: 
11) Government to beef up Afghan assistance in order to compensate 
in part for end of MSDF services in the Indian Ocean (Sankei) 
12) Extra aid for Afghanistan will come from the supplementary 
budget (Tokyo Shimbun) 
 
Defense contractor scandal: 
13) Defense contractor Yamada Yoko Corporation's president to be 
summoned to the Diet to give testimony (Nikkei) 
14) Former executive director of Yamada Corp. lavishly treated 
former lawmaker Tamura to tennis trips, etc. (Sankei) 
15) GE cans Nihon Mirise as its agent in Japan (Nikkei) 
 
Fukuda-Ozawa meeting, round two: 
16) Alarm spreads in parties about second meeting between Prime 
Minister Fukuda, DPJ President Ozawa, though Ozawa denies rumor of 
"grand alliance" (Mainichi) 
17) Going into their second meeting, both Fukuda and Ozawa are 
forward looking about the possibility of a permanent SDF overseas 
dispatch law (Mainichi) 
 
18) Parliamentarian league on the abduction issue to travel to the 
US headed by lawmaker Hiranuma (Yomiuri) 
 
19) Prime Minister Fukuda wants to shift LDP policy to emphasize 
consumers (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Yomiuri & Tokyo Shimbun: 
Antiterrorism Special Measures Law expires; Defense Ministry issues 
order for MSDF pullout from Indian Ocean 
 
Mainichi: 
Fukuda, Ozawa positive about discussing permanent law for SDF 
 
TOKYO 00005082  002 OF 013 
 
 
overseas missions 
 
Nikkei: 
State-run Brazilian oil firm to invest 100 billion yen to establish 
Japan unit 
 
Sankei: 
Former lawmaker Tamura treated by former executive of Yamada Corp. 
to tennis tours 
 
Akahata: 
JCP Chairman Shii calls for three challenges to protect Constitution 
on historic day of MSDF withdrawal 
 
2) EDITORIALS 
 
Asahi: 
(1) Thoroughly shed light on pension record fiasco, including 
questioning all former Social Insurance Agency directors general 
(2) Personnel appointments requiring Diet approval: Measures eroding 
press freedom unacceptable 
 
Mainichi: 
(1) Responsible persons must apologize for pension problems 
(2) Personnel appointments based on Diet: Measure for totally 
unreasonable press restrictions adopted 
 
Yomiuri: 
(1) Resolve to resume refueling mission being tested 
(2) Completely disgraceful press restrictions imposed 
 
Nikkei: 
(1) FRB required to make clear-cut judgment and to take flexible 
action on monetary policy 
(2) Unconvincing restrictions on prior reporting 
 
Sankei: 
(1) Report on pension problem: Regain sense of mission and 
responsibility 
(2) Prime minister must resolve to resume refueling mission 
 
Tokyo Shimbun: 
(1) MSDF withdrawal: It's time to verify lessons learned by SDF 
(2) Dragons grab Japan Series title; Reform also necessary 
 
Akahata: 
(1) MSDF pullout good chance to make efforts for political 
settlement 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Nov. 1 
 
NIKKEI (Page 2) (Full) 
November 2, 2007 
 
09:55 
Met with Health Minister Masuzoe at Kantei. Afterwards, met with 
Cabinet Special Advisor Kurokawa. 
 
11:03 
Met with Deputy Foreign Minister Kono. 
 
TOKYO 00005082  003 OF 013 
 
 
 
12:58 
Attended a memorial service for police officers who died in line of 
duty across the country and people who died when they cooperated 
with the police at Grand Arc Hanzomon Hotel. 
 
14:25 
Met with Deputy Prime Minister of Qatar al-Atiyah at Kantei. 
 
15:00 
Met with Lower House member Shinya Ono. Later, met with Natural 
Resources and Energy Agency Director-General Mochizuki. 
 
16:03 
Met with Minister of State for People's Life Kishida. After him, met 
with Kyodo News Agency's Editorial Bureau Director-General Shuichi 
Ito. Later, met with former LDP Secretary General Nakagawa. 
 
17:03 
Met with Minister of Internal Affairs Masuda and Kunihiro Matsuo, 
chair of the Verification Committee on Pension Records. 
 
17:28 
Attended a get-together of the Female Lawmakers' Policy Research 
Council held at LDP headquarters. 
 
18:01 
Attended a session of the Council on Economic and Fiscal Policy held 
at Kantei. 
 
20:17 
Dined with National Defense Academy President Makoto Iokibe and 
former Prime Ministerial Advisor Yukio Okamoto at the Japanese 
restaurant Yamazato at Hotel Okura. 
 
22:39 
Arrived at his private residence in Nozawa. 
 
4) Prime Minister's statement on Antiterrorism Special Measures Law 
being no longer in effect (Mainichi) 
 
MAINICHI (Page 5) (Full) 
November 2, 2007 
 
The following is the complete text of a statement released by Prime 
Minister Yasuo Fukuda accompanying the expiration of the 
Antiterrorism Special Measures Law: 
 
Today, the government, accompanying the expiration of the 
Antiterrorism Special Measures Law, brought to an end the supplying 
operations and other activities of the Maritime Self-Defense Force 
in the Indian Ocean. These operations were carried out with the 
cooperation and understanding of everyone in this nation, and for 
this, I once more express my appreciation. I also would like to 
express my appreciation for the efforts of the Self-Defense Forces 
personnel who carried out these operations steadily and methodically 
in a difficult work environment. 
 
However, the war on terror by the international community is not 
over. Close to 3,000 persons were victims of the 9-11 terrorist 
attacks, and 24 Japanese were among them. The reality is that this 
threat has still not been eliminated. Terrorism is a challenge to 
 
TOKYO 00005082  004 OF 013 
 
 
free and open societies. The war on terror is connected to the 
national interests of Japan. That is why our country bore a part of 
the effort through supplying activities. These operations must be 
quickly restarted. 
 
The core of the various efforts of the international community in 
the war on terror is to make sure that Afghanistan does not again 
become a hotbed for terrorism. In the area of social and 
reconstruction assistance, our country has provided over 140 billion 
yen in aid, and has become the number 2 aid donor (for that country) 
in the world. In the future, as well, the government will closely 
cooperate with the international community and continue to provide 
reconstruction assistance. 
 
However, the elimination of terrorism cannot be done by 
reconstruction assistance alone. Through mop up operations against 
terrorists and measures to maintain public security, such assistance 
will bear fruit. Over 40 countries are continuing to carry out 
operations in Afghanistan with strong perseverance in order to 
recover public security, although there have been noble sacrifices. 
The maritime interdiction operation (MIO), an element of such 
efforts, deters terrorists from operating in the Indian Ocean. 
Supplying operations, which tap the experience and capability of the 
Self-Defense Forces, have become fixed as an important base for MIO. 
The operations were highly evaluated in United Nations Security 
Council Resolution 1776, and strong expectations for the operations 
to be continued have come from every country. At the same time, they 
contribute to the maritime navigation security of the Indian Ocean, 
which is vital to our country. 
 
In order to Japan to carry out its responsibility in solidarity with 
the international community to root out terrorism, the supply 
operations must be continued. The government will do its utmost to 
swiftly enact the new antiterrorism special measures bill so that 
the refueling supplying operations can be quickly resumed, with the 
understanding and cooperation of everybody in this nation, through 
such means as enhancing the transparency of those operations. 
 
5) MSDF withdraws from Indian Ocean, winding up antiterrorism 
refueling operation; Special measures law expires; Fukuda-Ozawa 
meeting today 
 
YOMIURI (Top play) (Excerpts) 
November 2, 2007 
 
Defense Minister Shigeru Ishiba ordered yesterday the Maritime 
Self-Defense Force supply ship Tokiwa and the destroyer Kirisame to 
wind up their refueling operation in the Indian Ocean and head home 
timed with the expiration of the Antiterrorism Special Measures Law. 
Aimed at an early resumption of the MSDF operation, Prime Minister 
Yasuo Fukuda (concurrently president of the Liberal Democratic 
Party), during his party-head talks today with Democratic Party of 
Japan (DPJ or Minshuto) President Ichiro Ozawa, is expected to ask 
for cooperation for the enactment of new antiterrorism legislation. 
The prime minister also intends to call for establishing a framework 
for talks between the ruling and opposition camps regarding 
important policy. Subjects being considered include the 
establishment of a permanent law governing the overseas dispatch of 
the SDF and tax and pension affairs. 
 
The two MSDF vessels departed form the Indian Ocean at midnight of 
Nov. 1. They will return home in three weeks. At 1:30 p.m. on Nov. 1 
 
TOKYO 00005082  005 OF 013 
 
 
(6:30 p.m., Nov. 1, Japan time), on the Tokiwa, Defense Minister 
Ishiba's video message was run in which he said: "Performing duties 
in a severe environment is never easy. I know that your duties 
entailed difficulties beyond description." The MSDF's refueling 
operation of six years that started in December 2001 has now been 
put to a halt.  The Air Self-Defense Force's airlift mission between 
US Yokota Air Base (in Tokyo) and Kadena Air Base (Okinawa) also 
ended yesterday. 
 
Prime Minister Fukuda yesterday released a statement saying: "In 
order for Japan to fulfill its responsibility for eradicating 
terrorism, continuing activities is essential. I will make utmost 
efforts for the swift enactment of new antiterrorism legislation." 
 
He is also scheduled to have a second meeting with DPJ head Ozawa 
for about two hours from 3:00 p.m. today, following the one on Oct. 
¶30. 
 
6) US, British vessels need to fill gap left by MSDF to maintain 
effectiveness of MIO 
 
NIKKEI (Page 2) (Full) 
November 2, 2007 
 
The Maritime Self-Defense Force's (MSDF) supply ships provided 
refueling service to American and British warships engaged in 
maritime intercept operations (MIO) in the Indian Ocean. Japan's 
participation in MIO, which aims at preventing terrorists and 
weapons from entering or departing Afghanistan, was highly 
appreciated, as shown by this comment: "Owing to Japan's refueling 
service, it was possible to watch moves in the boundless Indian 
Ocean on 24-hour basis." Given this situation, there is concern in 
Japan about the negative impact of the MSDF's withdrawal from the 
Indian Ocean. 
 
In a meeting of the House of Representatives' special committee on 
antiterrorism and Iraq support yesterday, Foreign Minister Koumura 
said: "The efficiency of MIO might be undermined. In particular, 
other countries will have to provide the operation done by Japan in 
order to enable Pakistan to continue its current mission." 
 
Defense Minister Shigeru Ishiba said: "The suspension of Japan's 
operation will not lead to diminishing the deterrence capability of 
MIO." But this view is premised on a case in which the US and other 
countries fill the gap left by the MSDF's withdrawal. Some persons 
suggest that: (1) participating countries should increase the number 
of their warships; (2) The American and British militaries should 
provide other countries with replenishment tankers; and (3) the 
strategic zone should be narrowed. 
 
7) MSDF-refueled vessel allowed to concurrently serve in Iraq 
operation, says Machimura 
 
YOMIURI (Page 4) (Full) 
November 2, 2007 
 
Chief Cabinet Secretary Nobutaka Machimura in a meeting yesterday of 
the House of Representatives Special Committee on Prevention of 
Terrorism indicated that there would be no problem for a foreign 
vessel refueled by the Maritime Self-Defense Force to temporarily 
engage in operations in Iraq when it is on both the maritime 
interdiction operation (MIO) and the Iraq operation. Social 
 
TOKYO 00005082  006 OF 013 
 
 
Democratic Party lawmaker Kiyomi Tsujimoto asked, "Is an 
MSDF-refueled vessel allowed to engage in MIO after going to Iraq?" 
In response, Machimura said, "Such is allowed as long as (Japanese 
oil) is used for the MIO." 
 
8) MSDF pullout: Views from opinion leaders 
 
NIKKEI (Page 3) (Full) 
November 2, 2007 
 
Okamoto: Consider joining ISAF in Afghanistan 
 
Yukio Okamoto, formerly a special advisor to the prime minister, 
commented: "The Maritime Self-Defense Force's withdrawal means Japan 
has dropped out from the international team fighting terrorists. 
Since the Gulf War, Japan has made international contributions. 
However, Japan will now have to start all over again from scratch. 
Japan should continue to explore ways to join the activities in 
Afghanistan. That's important for Japan in its ties with the 
international community. The government should do its utmost efforts 
to continue refueling activities. However, if there's no way in the 
end, then the prime minister-in response to Democratic Party of 
Japan (Minshuto) President Ichiro Ozawa's proposal-should also think 
about participating in the form of sending personnel to ISAF 
(International Security Assistance Force) headquarters or 
cooperating in the area of transportation." 
 
Soeya: Discuss Japan's int'l role 
 
Yoshihide Soeya, a professor at Keio University, commented: "The 
MSDF's refueling mission in the Indian Ocean has allowed Japan to 
play a role, making an international contribution, even though there 
are constitutional and other constraints. In other words, Japan 
cannot do nothing much to begin with. Under such a condition, Japan 
has conducted refueling activities there. Even after Japan has 
called off its refueling activities, no harm will come to its 
foreign policy, including Japan-US relations. On this occasion, the 
ruling and opposition parties should hold discussions in an explicit 
way about how Japan should contribute to international security. 
That's an important challenge. That includes discussing the idea of 
creating a permanent law that allows Japan to send the Self-Defense 
Forces overseas whenever it is necessary to do so." 
 
9) Japan concerned about possible decline in international 
confidence in wake of ending six years of refueling services 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 2, 2007 
 
Yuji Nishikawa, Tetsuya Furuta 
 
With the expiration yesterday of the Antiterrorism Special Measures 
Law, Japan halted its Maritime Self-Defense Force's (MSDF) refueling 
mission in the Indian Ocean. The refueling operations started in 
2001, and over the six years since, Japan refueled other countries' 
vessels a total of 794 times. The Tokyo Shimbun probed into the role 
Japan had played through the mission in terms of preventing the 
proliferation of terrorism and in view of international 
contributions, and also into what impact the suspension of the 
mission would have. 
 
Aiming to continue the refueling operations, the government 
 
TOKYO 00005082  007 OF 013 
 
 
submitted new antiterrorism special measures legislation to the 
current session of the Diet. Debate on the new bill is held every 
day at the Lower House Special Committee on Prevention of 
Terrorism. 
 
In the debate, the opposition bloc is repeatedly pursuing the 
"results" of the past operations. The opposition bloc's thinking is 
that the results of the past refueling services for other countries' 
vessels participating in the maritime interdiction operations (MIO) 
are the conditions for Japan to continue the mission. 
 
Foreign Minister Masahiko Koumura emphasized an aspect of deterrence 
against terrorism in answering in a session of the Lower House 
special committee this way: "The major result is that (the mission) 
has prevented the Indian Ocean from turning into a sea of 
terrorists." 
 
The government has publicized the number of the MSDF's refueling of 
other countries' vessels and the amount of oil provided by the MSDF 
to those vessels, but when it comes to the results in terms of 
preventing terrorism, what the government has disclosed to date have 
been limited to a dozen specific cases shown by the United States 
and other countries participating in MIO and the total amount of 
narcotics and weapons seized. The government has not made clear any 
data indicating a total number of detained people affiliated with 
terrorist organizations. 
 
In addition, the amount of oil provided by the MSDF to other 
countries' vessels sharply dropped to 14,000 gallons this year from 
a peak of some 175,000 gallons in 2002.  As far as this figure is 
concerned, the need for refueling seems to be declining. 
 
Defense Minister Shigeru Ishiba explained in this regard: "It's 
difficult to explain deterrence by using numbers." Koumura insisted, 
"(The halt to the refueling operations) would undermine the 
efficiency of MIO." But it is still unclear what impact of the 
suspension of the refueling mission will have on the war on 
terrorism in specific terms. 
 
Meanwhile, Koumura stressed the result of the refueling mission on 
the diplomatic front, noting, "The mission has been highly 
appreciated by other countries. It is a tangible human 
contribution." 
 
The government has noted that the Japan-US alliance will not cool 
down immediately by the suspension of the refueling mission with a 
senior Foreign Ministry official saying, "The US has understood the 
political situation in Japan." The government wants to obtain other 
countries' understanding by indicating it is making efforts to 
resume the mission as quickly as possible. 
 
However, the suspension of the mission may be protracted as there is 
no prospect at present for the new legislation to be enacted into 
law. 
 
At a session yesterday of the Lower House special committee, Koumura 
emphasized the need to enact the new legislation swiftly by saying: 
"We must not bring international confidence in Japan to nothing. If 
we did so, Japan would be taken by other countries as a country that 
is unwilling to fight against terrorism." 
 
10) LDP hopes for resumption of MSDF mission, while DPJ afraid of 
 
TOKYO 00005082  008 OF 013 
 
 
criticism as Fukuda-Ozawa talks resume 
 
MAINICHI (Page 5) (Full) 
November 2, 2007 
 
The Maritime Self-Defense Force's refueling mission in the Indian 
Ocean, based on the Antiterrorism Measures Law, was called off Nov. 
1 due to the expiration of the law. In connection with the MSDF 
pullout, the ruling parties yesterday expressed their hopes for an 
early resumption of the refueling operation, while the main 
opposition Democratic Party of Japan (DPJ or Minshuto) emphasized 
that the government and ruling coalition were to blame for the law's 
expiration. The reality is however that the two parties are quietly 
watching from afar the result of the second meeting between Prime 
Minister Yasuo Fukuda and DPJ President Ichiro Ozawa scheduled for 
today. 
 
In a meeting yesterday of his faction, Taku Yamasaki, former LDP 
vice president, revealed his view that the ruling coalition would be 
able to put a new antiterrorism special measures bill to a second 
vote at the House of Representatives (in a bid to enact it) after 
the DPJ voted down the new legislation at the House of Councillors. 
He said: "I think (the new antiterrorism bill) would be passed by a 
two-thirds lower chamber overriding vote." His remark is the 
expression of his hope that the DPJ would tacitly approve of taking 
a second vote in the Lower House in the wake of the first 
Fukuda-Ozawa meeting. He did not give any reason for his 
expectations. LDP Secretary General Bunmei Ibuki again sought to 
constrain the DPJ in a meeting yesterday at party headquarters. 
 
The largest opposition party has yet to reach a consensus on how to 
respond to the matter. Deputy President Naoto Kan stressed in a 
press conference yesterday: "I want you to understand that the 
government and ruling camp did nothing (to pass the bill earlier)." 
 
The DPJ was concerned that the public might criticize the party over 
the MSDF pullout after the media report the scenes MSDF ships are 
leaving from the Indian Ocean. However, the standoff mood between 
the two parties has been eased after the Fukuda-Ozawa meeting on 
Oct. 30. A mid-level DPJ member said: "The best strategy is to run 
away." The main opposition party is trying to make its 
responsibility vague for its opposition that led to the MSDF pullout 
by taking advantage of the government and ruling coalition, which 
have not taken a resolute stance toward the enactment of the new 
antiterrorism bill. 
 
11) Government to strengthen assistance for Afghanistan 
 
SANKEI (Page 5) (Full) 
November 2, 2007 
 
The government decided yesterday to extend new economic assistance 
to Afghanistan and Pakistan as part of its international 
contribution in support of the war on terror. It plans to 
incorporate the amount of aid in a supplementary budget for fiscal 
¶2007. With the expiration of the Antiterrorism Special Measures Law, 
Maritime Self-Defense Force (MSDF) ships today began pulling out of 
the Indian Ocean. Japan has now suspended its personnel contribution 
to the campaign to eliminate terrorist forces in and around 
Afghanistan. The government has decided, therefore, to increase 
economic aid to the two countries. 
 
 
TOKYO 00005082  009 OF 013 
 
 
12) Japan to include budget for additional assistance to Afghanistan 
in supplementary budget bill 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 2, 2007 
 
The government's Council of Overseas Economic Cooperation held a 
meeting yesterday at the Prime Minister's Official Residence 
(Kantei). Joining the meeting were relevant cabinet members, 
including Chief Cabinet Secretary Nobutaka Machimura and Foreign 
Minister Masahiko Koumura. In the session, they decided to include a 
set of additional humanitarian and reconstruction measures for 
Afghanistan in a 2007 supplementary budget bill. 
 
This decision came in response to the halt to the Maritime 
Self-Defense Force's (MSDF) refueling operations in the Indian 
Ocean. Areas to be covered by the set of those measures include 
vocational training for Afghan refugees who returned home from Iran 
and Pakistan, improvement in public order, and education. Specifics 
will be further discussed in the days ahead. 
 
So far the Japanese government has implemented a set of assistance 
measures for Afghanistan worth 140 billion yen. The government has 
already decided to offer additional assistance worth 24 billion yen. 
It intends to secure a portion of that amount in a 2007 
supplementary budget bill and to get the bill adopted in the 
ordinary session of the Diet slated for next year. 
 
13) DPJ calls for summoning Yamada Corp. president as sworn witness 
 
NIKKEI (Page 2) (Full) 
November 2, 2007/11/02 
 
In a meeting yesterday of the House of Councillors' foreign and 
defense affairs committees, the Democratic Party of Japan (DPJ) 
renewed its call for summoning Yamada Corp. President Yoshihiko 
Yonezu to the Diet as a sworn witness over the CX engine scandal 
involving former Vice Defense Minister Takemasa Moriya. Since the 
ruling camp withheld a reply, this issue will be discussed again in 
a meeting today. To realize a summons to a witness, the rule of 
unanimity is adopted. The DPJ, however, aims to summon the president 
to the current Diet session, so the main opposition party might 
adopt the principle of majority rule in the meeting today. 
 
14) Former Yamada Yoko executive director treated former Upper House 
member, then ASDF lieutenant general, with more than 10 tennis 
tours 
 
SANKEI (Top Play) 
November 2, 2007 
 
In connection with the issue of Motonobu Miyazaki (69), former 
executive director of Yamada Yoko, a trading house specializing in 
defense procurement, having treated former Administrative Vice 
Defense Minister Takemasa Moriya (63) with free rounds of golf, it 
was also found yesterday through the company's in-house 
investigation that Yamada Yoko treated former Upper House member 
Hideaki Tamura (75), who was then commandant of the Air Staff 
College, with free tennis tours at least more than 10 times between 
1986-1987.  A company employee booked hotels with tennis courts for 
Tamura at the order of Miyazaki and the company paid the full 
amounts of his hotel bills. Regarding this, Tamura refused to make a 
 
TOKYO 00005082  010 OF 013 
 
 
reply, noting through his secretary that he cannot respond to any 
requests for an interview. 
 
According to more than one source connected with Yamada Yoko, Tamura 
went on an overnight tennis tour about once or twice a month for 
about two years starting around 1986. He stayed at Sengokubara 
Prince Hotel (management right transferred in 2004) in Hakone Town, 
Kanagawa Prefecture, which has tennis courts. He mostly stayed there 
overnight on weekends. 
 
An employee in charge booked the hotel and a tennis court when 
Miyazaki gave him Tamura's schedule. 
 
Yamada Yoko paid a bill including hotel, meal and tennis court fees 
for two persons, each time it was sent to it from the hotel. Some 
billing statements allegedly included amounts of the purchases of 
tennis goods. The amount the company paid for one tour way exceeded 
10,000 yen. 
 
Employees of Yamada Yoko, including Miyazaki, never joined Tamura's 
tennis tours. 
 
Tamura retired from the college in January 1989. He ran for the 
Upper House election in July the same year and was elected for the 
first time. Yamada Yoko stopped paying bills for Tamura's tennis 
tours around 1987 in the run-up to Tamura's going into politics. 
 
15) GE suspends agent contract with Nihon Mirise Corp. 
 
NIKKEI (Page 43) (Full) 
November 2, 2007 
 
A former managing director of Yamada Yoko Corporation, a 
defense-related trading company, used to play golf with former 
Administrative Vice Defense Minister Takemasa Moriya, 63, when 
Moriya was in office at the Defense Ministry. In connection with 
this problem, General Electric Co. (GE), a US corporation, revealed 
yesterday that it has suspended all of its business with Yamada 
Corp. and Nihon Mirise Corporation (NMC), which was established by 
the former Yamada Corp. executive. GE has also suspended its 
contract with NMC as an agent on the engine for the Air Self-Defense 
Force's follow-on cargo aircraft (CX). 
 
GE notified Yamada Corp. and NMC on Oct. 31 of its decision to 
suspend business with the two companies. GE says it has yet to 
decide on when to resume business with the two companies. 
 
Moriya was summoned to the Diet on Oct. 29 as a sworn witness. In 
his testimony there, Moriya stated that he used to play golf with 
Motonobu Miyazaki, 69, formerly a managing director at Yamada Corp., 
and used to be dined and wined by the former executive even after 
April 2000 when the Defense Ministry renewed its code of ethics for 
personnel in the Self-Defense Forces to prohibit them from receiving 
any kind of services from contractors. The former executive is now 
certain to have been involved in a violation of the SDF ethical 
code. GE therefore decided to withhold itself from doing business 
with Yamada Corp. and NMC, which is headed by the former executive. 
 
16) Second Fukuda-Ozawa talks today; Ozawa denies LDP-DPJ grand 
coalition; Some members in both parties concerned about 
rapprochement 
 
 
TOKYO 00005082  011 OF 013 
 
 
MAINICHI (Page 2) (Excerpts) 
November 2, 2007 
 
The second meeting between Prime Minister Yasuo Fukuda, president of 
the ruling Liberal Democratic Party (LDP) and Ichiro Ozawa, 
president of the largest opposition Democratic Party of Japan (DPJ 
or Minshuto) will be held this afternoon. However, some members in 
the ruling and opposition camps are wary about rapprochement between 
the two party leaders. Attention is now focused on whether Ozawa 
will lean toward a dialogue-oriented policy or whether the two 
leaders will discuss a Diet session extension as the current session 
is set to expire on Nov. 10. 
 
Since the two held their first meeting, calls for dialogue have been 
raised in the DPJ. In the city of Utsunomiya yesterday, Ozawa denied 
the possibility of forming a grand coalition between the LDP and 
DPJ, saying, "I have no intention." He stressed that his target was 
to assume the reins of government in the next House of 
Representatives election. "Since I received a strong request (from 
the prime minister for the meeting), I will meet him. We will not 
hold regular meetings. If nothing is produced in the meeting, there 
will be no meeting." He tamped down the cooperative mood. 
 
17) Prime minister, Ozawa positive about holding talks on permanent 
law on dispatch of SDF troops abroad: They meet again today 
 
MAINICHI (Top Play) (Excerpts) 
November 2, 2007 
 
Prime Minister Yasuo Fukuda yesterday took a positive stance toward 
the possibility of establishing a permanent law, instead of a law 
with a limited period of validity like the Anti-terrorism Special 
Measures Law, which expired on Nov. 1. He said, "If the Democratic 
Party of Japan (DPJ or Minshuto) agrees, we will consult with the 
New Komeito and decide whether to submit (such a bill) to the Diet." 
DPJ President Ichiro Ozawa also told reporters the same day, "If the 
government and the DPJ agree with our view, based on appropriate 
ideals and principles, we would be able to hold talks anytime." 
There has now appeared the possibility of the enactment of permanent 
legislation allowing Self-Defense Force (SDF) personnel overseas 
paving the way for the LDP and the DPJ to find common ground. The 
second round of Fukuda-Ozawa talks will be noted with attention. 
 
Responding at the Kantei to questions from reporters on the 
envisaged permanent law, Fukuda explained, "The idea has been around 
for some time that it would be better to pass a law that allows SDF 
personnel to engage in operations under any circumstances, instead 
of creating a law that can only be applied when it becomes necessary 
for Japan to extend international cooperation." He added, "If the 
DPJ agrees, we will consult with it on the matter." 
 
In the meantime, Ozawa held a press conference in Utsunomiya in 
which he revealed his readiness to respond to talks if the aim was 
to lay down general principles for the overseas dispatch of SDF 
personnel under a permanent law. He said, "My long-cherished 
position is to create a basic law for international contributions 
and to help secure and maintain peace.  I am against the present 
dispatch of SDF troops, because the government and the ruling 
parties have no principles for doing that." 
 
18) Abduction league delegation to visit US 
 
 
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YOMIURI (Page 4) (Full) 
November 2, 2007 
 
A delegation of the parliamentary league on the abduction issue, 
chaired by former Economy, Trade, and Industry Minister Takeo 
Hiranuma, will visit the United States from Nov. 14. In the planned 
talks with persons connected with the US Congress, the Hiranuma-led 
group of eight lawmakers from the Liberal Democratic Party, 
Democratic Party of Japan, and New Komeito plans to ask for 
cooperation for a settlement of the abduction issue and other 
matters. 
 
19) Policy switch to attach importance to consumers: Prime minister 
orders reviews of all policies 
 
ASAHI (Page 4) (Full) 
November 2, 2007 
 
Prime Minister Fukuda yesterday called in State Minister for 
People's Life Kishida to the Prime Minister's Official Residence 
(Kantei) and ordered him to review all policies, laws and ordinances 
from a perspective of attaching importance to consumers. Following a 
series of food-labeling scams, false earthquake-resistance 
calculations and the drug-induced hepatitis case, he wants to switch 
his administration's basic policy from attaching importance to 
producers to laying emphasis on consumers. However, since such a 
policy shift requires a change in the awareness of government 
agencies, whether the government can come up with effective measures 
will depend on the prime minister's leadership. 
 
The prime minister ordered Kishida to check the policies, laws and 
ordinances of all government agencies from the perspective of 
eating, working, making things, protecting, and living.  Kishida 
will sort out measures adopted by all government agencies and listen 
to views of experts, and then report the results to the prime 
minister. Regarding proposals that will require legal amendments, 
bills amending relevant laws will be submitted to the regular 
session of the Diet next year. 
 
Major items up for revisions include appropriate labeling of the 
quality of commercial goods, disclosure of information on 
pharmaceuticals, monitoring imported foods, prevention of illegal 
business practices targeting elderly people, employment measures 
mainly for so-called freeters (job-hopping part-time workers) and 
public security measures for local communities. 
 
The prime minister in his policy speech declared that the time has 
come when importance must be attached to the safety and peace of 
mind of the public instead of the thinking that emphasis must be 
attached to producers, based on the reflection that the Liberal 
Democratic Party (LDP) was harshly defeated by the Democratic Party 
of Japan (DPJ), which advocated highest priority to people's lives. 
He has repeatedly held study meetings with his aides with the 
determination that he would fundamentally change the stance of 
government offices, which consider policies for the convenience of 
producers, as an aide to the prime minister put it. 
 
However, since it is a grand plan to take a second look at all 
policies from the standpoint of consumers, some are concerned that 
the themes are so wide-ranging it is questionable whether 
bureaucrats affected by the thinking of producers can come up with 
good proposals, as a senior Cabinet Office official put it. Some 
 
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also take the view that the government agencies will not move unless 
concrete themes are set and they are pressed to change their 
concepts, as a senior government official said. 
 
SCHIEFFER