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UNCLAS SECTION 01 OF 16 TOKYO 005106 
 
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 11/05/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Grand coalition fiasco: 
4) Ozawa to resign as head of Democratic Party of Japan (DPJ) over 
grand-coalition failure, sees DPJ rejection of proposal as no 
confidence motion (Mainichi) 
5) Ozawa, not Prime Minister Fukuda, was the one who first proposed 
a grand coalition between the LDP and DPJ: Chief Cabinet Secretary 
Machimura (Sankei) 
6) Ozawa denies press reports that he first proposed a grand 
coalition (Yomiuri) 
7) Possibility that previous DPJ head Okada may return to succeed 
Ozawa as party president (Asahi) 
8) Talks about grand coalition went as far as portioning out party 
strength in new cabinet: LDP 10, DPJ 6, and New Komeito one 
(Yomiuri) 
9) Ozawa caper creates major stir in the ruling coalition (Sankei) 
 
10) Asahi poll shows 48 PERCENT  of public against grand coalition 
of the major parties; 43 PERCENT  also say the MSDF Indian-Ocean 
mission is "not necessary" (Asahi) 
11) Ozawa, Fukuda had reached agreement in their grand-coalition 
talks about SDF dispatch issue, suggesting possible change in 
government principles (Nikkei) 
12) With collapse of coalition talks, LDP fears return of DPJ's old 
intransigent pose in the Diet debate on MSDF refueling mission 
(Nikkei) 
 
Defense and security affairs: 
13) Ruling coalition to give top priority now to passing the new 
antiterrorism bill (Yomiuri) 
14) Ending of grand coalition scheme also punctures brewing 
cooperation between LDP, DPJ on permanent overseas dispatch law 
(Mainichi) 
15) Diet to be extended 3 to 4 weeks to allow time for debate on new 
antiterrorism bill (Tokyo Shimbun) 
16) Okinawa governor presents proposal to Okinawa State Minister 
Kishida to revise the government's plan to relocate Futenma Air 
Station (Yomiuri) 
17) Local governments react sharply to government's linking USJF 
realignment-related subsidies to results of planned changes 
(Yomiuri) 
18) Yokota Air Base: Gov. Ishihara asks for extension of talks on 
joint use if cannot obtain agreement within time frame (Tokyo 
Shimbun) 
19) Government in host-nation support negotiations with US wants to 
cut pay and allowances of Japanese employed on USFJ bases and 
facilities (Mainichi) 
 
Visit of Assistant Secretary Hill: 
20) Assistant Secretary Hill: Progress on abduction will go into US 
consideration of removing North Korea from list of states sponsoring 
terrorism (Yomiuri) 
21) Hill confident that Yodogo hijackers will be returned by North 
Korea to Japan (Yomiuri) 
22) US wants North Korea to issue a declaration that it is not 
involved with terrorism in order for name to be removed from 
terror-sponsor list (Asahi) 
 
TOKYO 00005106  002 OF 016 
 
 
23) Japan considering joining effort to disable nuclear facilities 
in North Korea (Asahi) 
 
Political merry-go-round: 
24) Former defense chiefs Nukaga, Kyuma took exorbitant "carfare" 
payments from crooked defense contractor when attending 
corporation's event (Asahi) 
25) Justice Minister Hatoyama again makes odd statement, this time 
to local constituents, saying that "terrorists are wandering around 
Japan; I know" (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun & Akahata: 
DPJ President Ozawa expresses his intention to resign as president, 
noting his party's rejection to form a grand coalition government is 
taken to mean no-confidence motion against him 
 
2) EDITORIALS 
 
Asahi: 
(1) DPJ President Ozawa's announcement of intention to resign: 
Wasn't he serious about a change of government? 
 
Mainichi: 
(1) DPJ President Ozawa's announcement of intention to resign: 
Closed-door negotiations and his runaway-like approach gave rise to 
mistrust 
(2) Measures for crime victims: Fair relief measures essential 
 
Yomiuri: 
(1) DPJ President Ozawa's announcement of intention to resign: 
Forming a grand coalition government still necessary 
 
Nikkei: 
(1) DPJ thrown into confusion with its President Ozawa's 
announcement of intention to resign 
(2) We worried about growing tensions in Pakistan 
 
Sankei: 
(1) DPJ President Ozawa's announcement of intention to resign: Do 
not close door for policy talks 
(2) Simulation of inland earthquake in Osaka: Need to make houses 
more earthquake-resistant 
 
Tokyo Shimbun: 
(1) DPJ President Ozawa to resign: Blunder of "closed-door talks" 
(2) US presidential election: True value of superpower will be 
tested 
 
Akahata: 
(1) Mislabeled food products: Administrative officials must prevent 
spread of public distrust 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Nov. 3 
 
NIKKEI (Page 2) (Full) 
November 4, 2007 
 
TOKYO 00005106  003 OF 016 
 
 
 
10:14 
Attended a ceremony for recipients to be decorated by the Emperor 
with a cultural medal at Imperial Palace. 
 
11:19 
Arrived at residential quarters in Kantei. 
 
12:10 
Met with Chief Cabinet Secretary Machimura. 
 
14:56 
Arrived at his private residence in Nozawa. 
 
Prime Minister's schedule, Nov. 4 
 
NIKKEI (Page 2) (Full) 
November 5, 2007 
 
Stayed all the day at his private residence in Nozawa. 
 
4) DPJ head Ozawa reveals his decision to step down for causing 
commotion with grand coalition proposal: "Tantamount to a 
no-confidence vote by party executives," he says at press briefing 
 
MAINICHI (Top Play) (Slightly abridged) 
November 5, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
during a hastily held press conference yesterday afternoon expressed 
his decision to step down to take responsibility for the commotion 
caused by his party head talks with Prime Minister Yasuo Fukuda. 
Citing the refusal of coalition talks with the Liberal Democratic 
Party (LDP) by party executives, he said, "This was tantamount to a 
no-confidence vote by party executives." Secretary General Yukio 
Hatoyama and other executives are now trying to dissuade Ozawa from 
resigning. They will discuss how to deal with the situation at an 
executive meeting today. However, it appears difficult to persuade 
him to change his mind. Vice President Katsuya Okada has been 
suggested as a possible successor to Ozawa. There is also a 
possibility of Deputy President Naoto Kan temporarily taking the 
president's duty. Ozawa's announcement has dealt a major blow to the 
DPJ, which aims at taking the reins of government because of the 
prospect that the matter could develop into a split of the party, 
depending on Ozawa's movements. 
 
Ozawa during the press conference noted, "I have decided to resign 
as party head, taking responsibility for causing a political 
commotion over the establishment of a coalition government. 
Referring to the party head talks with Fukuda, he stressed the 
meaning of holding such talks, noting that they agreed on the 
following two points: (1) the overseas dispatch of Self-Defense 
Force (SDF) troops should be limited to participation in the United 
Nation's (UN) activities approved at the UN Security Council (UNSC) 
or based on a resolution adopted at the General Assembly; and (2) he 
would not insist on his opposition to passage of the new antiterror 
special measures legislation, if a grand coalition government could 
be realized. 
 
He then categorically said that under the present situation, it 
would be difficult for the DPJ to snatch power from the LDP in the 
next Lower House election, noting, "The DPJ lacks capability in 
 
TOKYO 00005106  004 OF 016 
 
 
various aspects. The public has kept questioning whether the DPJ 
really has the capability to run the government. The situation 
remains very harsh for the DPJ to shoot to power in the next Lower 
House election." He clarified his position that it would be 
desirable for the DPJ to form a grand coalition with the LDP, 
saying, "I have judged that taking part in the administration and 
chalking up a track record of government administration would be a 
shortcut for the DPJ to realize its own administration." 
 
Regarding details on why he has decided to resign, he said, "I 
decided to tender my resignation on the 3rd after the talks with the 
prime minister." Asked about a possibility of leaving the DPJ, he 
simply said, "I have never said I would leave the party." He thus 
indicated his intention to continue activities in the run-up to the 
next Lower House election after resignation. 
 
Ozawa said that he would leave his future course up to the party 
leadership and peer lawmakers to decide. However, a cautious view is 
still prevalent in the party regarding participation in coalition 
talks. A group close to Kan yesterday evening reconfirmed a position 
that a grand coalition with the LDP cannot be approved. Okada, 
former party head, who has been keeping himself at arm's length with 
Ozawa, will likely be named as Ozawa's successor. However, some take 
a cautious view toward the idea of holding a party presidential 
election while the Diet is in secession. 
 
5) Chief Cabinet Secretary Machimura suggests that Ozawa was the one 
who proposed grand coalition 
 
SANKEI (Page 5) (Full) 
November 5, 2007 
 
Chief Cabinet Secretary Nobutaka Machimura yesterday took a positive 
view about recent media reports saying that Democratic Party of 
Japan (DPJ) President Ozawa was the one who had proposed during a 
meeting with Prime Minister Yasuo Fukuda on Nov. 2 the idea of a 
grand coalition between the Liberal Democratic Party and the DPJ. 
Appearing on an NHK TV program, Machimura said: "LDP Secretary 
General Bunmei Ibuki said in a press conference that  for 
formality's sake our side it was decided to have our side present 
the coalition proposal. What he said is probably true." 
 
In reference to discussion between the two leaders on whether to 
establish a permanent law governing the Self-Defense Force's (SDF) 
overseas missions, Machimura said: "I heard from the prime minister 
that they had discussed a plan in which they would first agree on 
the need of the Maritime Self-Defense Force's continued refueling 
mission in the Indian Ocean on the premise that it would take time 
to push ahead with discussion on permanent legislation and then 
decide to resume the operation (until a new law is established)." 
 
Asked about prospects for dissolution of the House of 
Representatives for a snap election, Machimura emphasized: "He (the 
prime minister) does not have such an idea even in the back of his 
mind." 
 
6) Ozawa criticizes media reports for being "totally groundless" 
 
YOMIURI (Page 1) (Full) 
November 5, 2007 
 
Democratic Party of Japan President Ichiro Ozawa stated in a press 
 
TOKYO 00005106  005 OF 016 
 
 
conference yesterday on a series of media reports on a coalition 
between his party and the ruling Liberal Democratic Party (LDP): "It 
is totally groundless that I proposed the meetings (with Prime 
Minister Yasuo Fukuda, LDP president) and an LDP-DPJ coalition." 
 
He then stressed: 
 
"I think most media organizations are thoughtlessly reporting 
information provided by the government and LDP. I find it impossible 
to deny that they are playing a part in manipulating public opinion. 
These reports are defamatory and slanderous, and intended to 
eliminate me politically and deal a fatal blow to the DPJ's image. 
I'm furious and object very strongly to these reports." 
 
7) DPJ members see it difficult to dissuade Ozawa from stepping 
down; some recommend Okada as successor 
 
ASAHI (Page 1) (Full) 
November 5, 2007 
 
In response to Democratic Party of Japan (DPJ) President Ozawa's 
decision to tender his resignation as party head, executive members, 
including Secretary General Hatoyama, agreed in a meeting held 
urgently in Tokyo yesterday to dissuade Ozawa from stepping down. 
The main opposition party will hold an executive meeting today and 
ask him to stay on. 
 
It is inconceivable that a majority in the executive meeting will 
accept a proposal to form a grand coalition with the Liberal 
Democratic Party. Based on this view, Hatoyama and other executive 
members are expected to try to ask Ozawa to retain his post by 
emphasizing that although there was a disagreement between Mr. Ozawa 
and other executive members, it did not mean confidence was placed 
in him. Vice President Katsuya Okada, who has kept himself aloof 
from Ozawa, also said in an interview with Asahi Shimbun last night: 
"We should try to persuade him to stay on, premised that a grand 
coalition will never be realized." But it is unlikely that Ozawa 
will respond to a request they will make while refusing the 
coalition idea, so many DPJ members take the view that the DPJ 
executives will have to accept Ozawa's resignation in the end. 
 
The dominant view in the DPJ is that the party should continue to 
aim at grabbing political power in the next general election while 
maintaining its confrontational stance with the Fukuda 
administration. Reflecting such voices, many junior and mid-ranking 
members, as well as those from the former Japan Socialist Party 
recommend Okada as Ozawa's successor. Some members, though, out of 
fear that lawmakers close to Ozawa might leave the party if Okada 
becomes party head, expect Naoto Kan, who has kept close relations 
with Ozawa as party deputy president, to head the party. 
 
The resignation of Ozawa, who moved toward the idea of forming a 
grand coalition, could lead to breaking up the main opposition party 
and eventually to reorganizing the political world. That is because 
there are moves behind the scenes for dissolving the current state 
of the reversal of strengths between the ruling and opposition 
parties. In the meeting between Prime Minister Fukuda and Ozawa on 
Nov. 2, Fukuda proposed resolving the state and Ozawa agreed to him. 
Should 17 opposition members in the Upper House move into the ruling 
camp, the state of reversal of strengths in the Upper House will be 
dissolved. 
 
 
TOKYO 00005106  006 OF 016 
 
 
In a press conference yesterday, Ozawa said: "I have not said I 
would leave the party," but some lawmakers in the government and the 
Liberal Democratic Party have begun to move to prompt a breakup of 
the DPJ and form a coalition with the main opposition party. Even 
so, some ruling party members have still a strong sense of alarm 
toward Ozawa's political approach, remembering that Ozawa walked 
away from the coalition with the LDP and the New Komeito when he was 
heading the former Jiyuto (Liberal Party). It therefore is unlikely 
that the political world will be reorganized immediately. 
 
8) DPJ President Ozawa agrees once to become deputy prime minister, 
with cabinet apportionment: LDP 10; DPJ  6; and New Komeito 1 
 
YOMIURI (Page 1) (Full) 
November 5, 2007 
 
Ichiro Ozawa, president of the main opposition Democratic Party (DPJ 
or Minshuto), agreed with Prime Minister Yasuo Fukuda, president of 
the ruling Liberal Democratic Party (LDP) to become deputy prime 
minister without portfolio should the DPJ joined the ruling 
coalition, it was learned yesterday. The two party leaders discussed 
in their meeting the idea of forming a grand coalition between the 
DPJ and the ruling LDP-New Komeito coalition. They also agreed to 
allocate 10 of the 17 cabinet minister posts to the LDP, six to the 
DPJ and one to the New Komeito. 
 
According to connected sources, Fukuda suggested to Ozawa assuming 
the deputy prime minister's post and providing the DPJ with two 
other minister posts -- minister of land, infrastructure and 
transport, and minister of health, labor and welfare. The Cabinet 
Law does not specify the definition of the deputy prime minister's 
portfolio. It has been the practice that ministers appointed in 
advance as acting prime ministers served as deputy prime minister. 
The Fukuda government has appointed five ministers as acting prime 
minister. It seems that Fukuda planned to give Ozawa the highest 
post of the five acting prime minister posts. 
 
Fukuda and Ozawa also discussed having private-sector persons take 
part in a consultative organ, which the LDP and DPJ would set up to 
deliberate policies. 
 
9) DPJ President Ozawa's resignation announcement creating stir also 
in government, ruling coalition 
 
SANKEI (Page 3) (Slightly abridged) 
November 5, 2007 
 
Democratic Party of Japan President Ichiro Ozawa's announcement to 
step down his post created a major stir in the government and ruling 
parties. 
 
The ruling Liberal Democratic Party' (LDP) Secretary General Bunmei 
Ibuki made this comment: "(Mr. Ozawa) may be disappointed at the 
fact that his patriotic sentiment was not understood." LDP Election 
Committee Chairman Makoto Koga said: "I was surprised. I hoped he 
would hang on there a little longer." Chief Cabinet Secretary 
Nobutaka Machimura stated: "The government has no choice but to 
watch developments. Such an unexpected situation has occurred." 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima, who was 
instructed by Prime Minister Yasuo Fukuda to arrange a meeting with 
Ozawa, said: "I had no idea that Mr. though hard that much." Yoshimi 
 
TOKYO 00005106  007 OF 016 
 
 
Watanabe, state minister for administrative reform, made a cynical 
comment: "I was surprised. He seems to be playing a game. We have 
said that we will change a pinch to a chance. The DPJ changed a 
chance to a pinch." 
 
Defense Minister Shigeru Ishiba stated: 
 
"Mr. Ozawa might have believed many party members would follow his 
determination (on a grand coalition). He made the decision that it 
was meaningless to remain in the presidential post since he won't be 
able to realize what he should do as a politician. That's the Ozawa 
style." 
 
New Komeito Diet Affairs Committee Chairman Yoshio Urushibara said: 
"I was very surprised. Those who voted for the DPJ with expectation 
in the Upper House election probably are probably shocked greatly." 
 
10) Poll: 48 PERCENT  don't support coalition proposal, 53 PERCENT 
support DPJ's rejection 
 
ASAHI (Page 1) (Abridged) 
November 5, 2007 
 
The Asahi Shimbun conducted a telephone-based nationwide public 
opinion survey on Nov. 3-4, in which respondents were asked if they 
supported Prime Minister Fukuda's proposal in his one-one-one 
meeting with Democratic Party of Japan (Minshuto) President Ozawa to 
hold talks for a coalition government. In response to this question, 
36 PERCENT  answered "yes," with 48 PERCENT  saying "no." 
Respondents were also asked if they supported the DPJ's rejection of 
the proposal. To this question, 53 PERCENT  answered "yes," with 29 
PERCENT  saying "no." As seen from these figures, the public remains 
negative about a coalition of the LDP and the DPJ. 
 
Due to the Antiterrorism Special Measures Law's expiry, Japan has 
now called off the Maritime Self-Defense Forces' activities that 
backed up US and other foreign squadrons in the Indian Ocean. In the 
survey, respondents were asked if they thought Japan should resume 
MSDF activities there. To this question, public opinion was split, 
with 43 PERCENT  saying "yes" and 41 PERCENT  saying "no." In the 
last survey conducted Oct. 13-13 before the MSDF halted its 
activities in the Indian Ocean, respondents were asked if they 
supported the government's plan to continue the MSDF's activities 
there. To this question, 39 PERCENT  answered "yes," with 44 PERCENT 
 saying "no." In the previous survey, negative answers somewhat 
outnumbered affirmative ones. 
 
Meanwhile, the government has now introduced a new special 
legislative measure to the Diet in order for Japan to resume its 
refueling activities in the Indian Ocean. Respondents were asked if 
they supported this new legislation. In response, 35 PERCENT 
answered "yes," with 43 PERCENT  saying "no." In the survey right 
before the bill was presented to the Diet, 28 PERCENT  answered 
"yes," with 48 PERCENT  saying "no." In the survey this time, the 
proportion of affirmative answers increased somewhat. However, 
negative answers still outnumbered affirmative ones. 
 
The Fukuda cabinet's approval rating for was 45 PERCENT  (47 PERCENT 
 in the last survey), and its disapproval rating was 34 PERCENT  (30 
PERCENT  in the last survey). In the breakdown of public support for 
political parties, the ruling Liberal Democratic Party stood at 31 
PERCENT  (32 PERCENT  in the last survey), with the leading 
 
TOKYO 00005106  008 OF 016 
 
 
opposition Democratic Party of Japan (Minshuto) at 24 PERCENT  (24 
PERCENT  in the last survey). 
 
11) Agreement reached with prime minister on SDF dispatch, says 
Ozawa; Government may change its constitutional interpretation; 
Handling of use of force in focus 
 
NIKKEI (Page 3) (Full) 
November 5, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
indicated in his press conference yesterday that an agreement had 
been reached in his talks with Prime Minister Yasuo Fukuda that the 
overseas dispatch of the Self-Defense Forces (SDF) should be limited 
to activities based on UN resolutions. If the "agreement" was true 
and if it includes the use of armed force, as was indicated by 
Ozawa, that would mean a fundamental change in the government's 
constitutional interpretation that activities involving the use of 
force are unconstitutional and are not allowed. The matter, which 
might escalate into a basic shift in security policy, as Ozawa put 
it, is likely to provoke controversy in the government and ruling 
parties. 
 
For instance, regarding Ozawa's call for taking part in the 
International Security Assistance Force (ISAF) in Afghanistan, the 
government has insisted that under the Constitution, Japan is not 
allowed to join it, let alone the part involving the use of force. 
The "agreement" might be taken as having paved the way for 
participation. 
 
Nevertheless, it is insufficient to determine from Ozawa's press 
conference alone the scope of "international peacekeeping 
operations" envisaged by the "agreement." 
 
Ozawa's stock argument is that Japan is allowed to dispatch the SDF 
for activities even involving the use of force as long as there is 
UN endorsement. However, it is unclear whether the "agreement" 
includes even activities involving the use of force or is limited to 
civilian assistance, such as disarmament and food aid. Was the 
agreement actually reached? What are the contents of the agreement? 
Attention is focused on how the prime minister is going to explain 
this today. 
 
12) LDP to call for continued talks on new refueling legislation; 
Concerned about returning to confrontational policy course 
 
NIKKEI (Page 3) (Excerpts) 
November 5, 2007 
 
In the wake of the announcement by Democratic Party of Japan (DPJ or 
Minshuto) President Ichiro Ozawa that he would resign as party head 
for promoting the formation of a grand coalition with the Liberal 
Democratic Party (LDP), the government and ruling coalition are 
becoming increasingly concerned that the growing mood for dialogue 
over Diet business would wane, and that the DPJ's confrontational 
stance would return. The reason is because there has been no change 
in the situation of it being difficult for the government and ruling 
coalition to pass important bills without the support of the DPJ, 
which controls the House of Councillors. They intend to continue 
urging the DPJ to hold talks, while watching developments in the 
selection of Ozawa's successor. 
 
 
TOKYO 00005106  009 OF 016 
 
 
LDP Secretary General Bunmei Ibuki in Kyoto yesterday expressed 
consideration for Ozawa's feeling, saying, "Mr. Ozawa must have been 
disappointed because his patriotism was misunderstood." Ibuki also 
said about a response to the new refueling legislation, "I would 
like to see (the DPJ) continue sitting at the negotiating table in 
cooperation." 
 
Prime Minister Yasuo Fukuda and Chief Cabinet Secretary Nobutaka 
Machimura are studying the option of extending the current Diet 
session, scheduled to end on Nov. 10, by about a month until early 
December. They also plan to have the new refueling bill pass through 
the House of Representatives by the Nov. 16 Japan-US summit to begin 
Upper House deliberations after Fukuda's return home. However, 
prospects are unclear whether the DPJ will swiftly vote it down or 
prolong the deliberations until the current Diet session expires. 
 
If the DPJ continued to oppose the bill until the last, the DLP 
would have to take a second vote in the Lower House. General Council 
Chairman Toshiaki Nikai said to reporters last night, "When we must 
make a decision, we must make a decision." Will the LDP resort to a 
second vote? The prime minister's decision is tied to how to set the 
timing for Lower House dissolution for a snap general election. 
 
13) Ozawa's announcement of resignation to return leadership in Diet 
to ruling coalition 
 
YOMIURI (Page 2) (Full) 
November 5, 2007 
 
With Democratic Party of Japan (DPJ) President Ozawa's announcement 
of his intention to resign as party head, it is expected that the 
leadership in managing Diet affairs will be returned to the ruling 
coalition. The ruling camp is willing to address on a priority basis 
the task of enacting a new antiterrorism bill authorizing the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean. 
The government and the ruling bloc intend to have the new bill 
passed in the House of Representatives and extend the current Diet 
session by about one month for deliberations on the bill in the 
House of Councillors. Future responses are likely to be discussed in 
a Liberal Democratic Party executive meeting today and on other 
occasions. 
 
A growing number of ruling party members are now positive about the 
idea of bringing back the bill into the Lower House to ram it 
through by a two-thirds vote if the bill is voted down in the Upper 
House. Before Ozawa's resignation announcement, the ruling camp had 
anticipated that the DPJ would try to prevent the ruling camp from 
using a revote in the Lower House by adopting a censure motion 
against Prime Minister Fukuda in the Upper House. They now take the 
view that the DPJ can no longer afford to resort to this approach. 
Some expect the main opposition party will soften its tough stance, 
but a senior LDP Upper House member said that the resignation of 
Ozawa who tried to grope for a grand coalition with the LDP would 
prompt the DPJ to strengthen its confrontational stance. 
 
As for the timing for dissolution of the Lower House, bullish views 
have begun to be heard among ruling party members. An LDP source 
said: "Under the current situation, the DPJ should not desire for 
Lower House dissolution by the end of the year. The government and 
the ruling bloc are gradually gaining a free hand." The prime 
minister seems to be willing to face a Lower House election after 
the government accumulates achievements. A senior LDP member 
 
TOKYO 00005106  010 OF 016 
 
 
commented: "The next Lower House election is moving away. The New 
Komeito is also hoping to delay the election." 
 
14) Fukuda, Ozawa explore common ground for SDF dispatch with 
permanent law 
 
MAINICHI (Page 2) (Full) 
November 3, 2007 
 
Prime Minister and ruling Liberal Democratic Party President Yasuo 
Fukuda's recent one-on-one talks with Ichiro Ozawa, president of the 
leading opposition Democratic Party of Japan (Minshuto), brought 
about an uproar over their idea of forming a big coalition between 
their parties. This uproar was touched off by their discussion on 
the advisability of creating a permanent law that allows Japan to 
send the Self-Defense Forces overseas. The Antiterrorism Special 
Measures Law expired on Nov. 1, and the government called off the 
Maritime Self-Defense Force's refueling activities in the Indian 
Ocean. Fukuda and Ozawa sought to resolve the situation through 
their talks over a coalition in order for Japan to take even more 
proactive measures in its international contributions. The two 
thought out that idea as a last resort. 
 
Ozawa, when he met with Fukuda Nov. 2, suggested the need for Japan 
to have a permanent law for its overseas dispatches of SDF members, 
according to an informed source. The source quoted Ozawa as telling 
Fukuda, "If we are going to discuss a permanent law in our talks for 
a coalition, we will not oppose the new antiterror legislation and 
will cooperate for its passage." 
 
Fukuda is also in a position to agree on the idea of enacting a 
permanent law. Fukuda and Ozawa once suspended their talks. Fukuda 
told LDP Secretary General Bunmei Ibuki and other LDP executives 
that he needed time to work out something legal. Fukuda then 
returned to his office. 
 
The coalition talks collapsed. At the same time, the LDP and the DPJ 
have also lost a chance to discuss the idea of creating a permanent 
law. They are again in chaos over the new antiterror legislation. 
 
15) Extraordinary Diet session to be extended by 3-4 weeks: 
Government, ruling parties decide to secure time to deliberate on 
refueling operations issue 
 
TOKYO SHIMBUN (Page 1) (Full) 
November 5, 2007 
 
The government and the ruling parties on Nov. 3 decided to extend 
the current extraordinary Diet session, which is to end on Nov. 10. 
 
Prime Minister Yasuo Fukuda and Chief Cabinet Secretary Nobutaka 
Machimura at yesterday noon met at the Prime Minister's Official 
Residence (Kantei) and agreed on the thinking that it would be 
necessary to secure sufficient time for the Upper House to 
deliberate on the new anti-terrorism special measures legislation 
aimed for a resumption of refueling operations in the Indian Ocean. 
They judged that it would be unavoidable to extend the Diet 
session. 
 
Regarding the scope of the extension, coordination will be 
undertaken with focus on 3-4 weeks. However, following Democratic 
Party of Japan (DPJ or Minshuto) President Ozawa's refusal to hold 
 
TOKYO 00005106  011 OF 016 
 
 
coalition talks proposed by the prime minister, the political 
situation is in turmoil. The situation is so chaotic that it is hard 
to see how the Diet situation will develop. 
 
As such, the prime minister plans to meet with Liberal Democratic 
Party (LDP) leadership members, including Secretary General Bunmei 
Ibuki, to discuss how to handle the new legislation and make a final 
decision on the scope of the extension of the Diet session. 
 
Regarding the new legislation, the ruling camp has already proposed 
to the opposition camp at a meeting of the Lower House 
Anti-terrorism Special Committee that the legislation be adopted at 
a committee meeting on the 7th. 
 
The ruling camp had intended to adopt the legislation at a Lower 
House plenary session on the 8th and send it to the Upper House, but 
the opposition camp is also opposing the adoption of the bill at the 
Committee on the 7th. Whether the bill clears the Lower House by the 
10th before the extraordinary Diet session ends is, therefore, 
unclear. 
 
The prime minister and Machimura met for about two hours and 
conferred on future measures, following the result of the two-day 
party head talks. 
 
16) Nakaima to ask for changes to government plan regarding Futenma 
relocation 
 
YOMIURI (Page 4) (Full) 
November 5, 2007 
 
State Minister for Okinawa Fumio Kishida held a meeting with Okinawa 
Governor Hirokazu Nakaima in Naha yesterday and exchanged views on 
the planned relocation of the US Martine Corps' Futenma Air Station 
(from Ginowan) to the coastline of Camp Schwab (in Nago) and other 
matters. 
 
In the meeting, Governor Nakaima indicated that in the Futenma 
relocation consultative council meeting to be held on Nov. 7 between 
the central and Okinawa governments that he would ask for making 
changes to the government's plan to move the planned V-shaped pair 
of runways further out to sea. 
 
17) Subsidy system raises question about effectiveness of promoting 
of US force realignment; Some municipalities reacting strongly to 
system 
 
YOMIURI (Page 4) (Full) 
November 5, 2007 
 
The Defense Ministry's designation late last month of municipalities 
to receive subsidies for bearing greater burdens due to the 
realignment of US forces in Japan (USFJ) has elicited voices of 
doubts about effectiveness for pushing ahead with the realignment. 
The ministry did not designate six municipalities, including Nago 
which is opposed to the plan to relocate Futenma Air Station. The US 
force realignment is drawing especially strong fire from those 
municipalities. 
 
The realignment subsidy program is based on the USFJ realignment 
promotion special measures law, enacted in May. Under this program, 
municipalities that will host new bases or other facilities as a 
 
TOKYO 00005106  012 OF 016 
 
 
result of the realignment are subject to government subsidies. The 
system is designed to provide subsidies in proportion to cooperation 
and the level of progress on realignment projects. It is also 
designed to prevent municipalities from receiving subsidies for free 
and to implement plans steadily. 
 
The ministry has designated 33 municipalities, including Hokkaido's 
Chitose, which has accepted the relocation of the US military's F-15 
fighter training unit. 
 
At the same time, the ministry has excluded six municipalities, 
including Nago in Okinawa, Iwakuni in Yamaguchi which is opposed to 
accepting the US carrier-borne aircraft unit, and Zama in Kanagawa 
Prefecture which is refusing to accept the relocation of US Army 1st 
Corps headquarters to Camp Zama. Those municipalities are reacting 
strongly to the ministry's step, with a senior Iwakuni official 
saying, "It is not appropriate to push ahead with programs by using 
carrots and sticks." 
 
18) Talks on military-civilian joint use of Yokota base fail to come 
up with conclusion before deadline; Tokyo Gov. Ishihara: "We'll 
extend the time for discussion" 
 
TOKYO SHIMBUN (Page 3) (Full) 
November 3, 2007 
 
The discussion between the Japanese and US governments on the 
conditions for the joint use of the Yokota base (located in Tokyo's 
Fussa City and other areas) had failed to reach a conclusion by the 
end of October deadline. This was revealed by Tokyo Governor 
Shintaro Ishihara on Nov. 2. 
 
Gov. Ishihara explained: "Many questions are left to be sorted out, 
so we have no other choice but to extend the time for discussion. We 
have been highly disappointed by ideas presented by the United 
States. We need to refute their ideas, but the deadline came before 
we could do so." 
 
The leaders of Japan and the US in their summit meeting in May 2003 
agreed to "discuss the feasibility" of the military-civilian joint 
use of the Yokota base. Following this agreement, the road map for 
Japan and the US to implement the realignment of the US Forces Japan 
specified the establishment of a Japan-US consultative organ to 
discuss the question of the joint use of the base. The discussion 
began in October 2006. The road map says "the discussion should wind 
up in 12 months." 
 
19) Gov't negotiates to cut pay for USFJ workers 
 
MAINICHI (Page 2) (Full) 
November 3, 2007 
 
The government negotiated with representatives from the All Japan 
Garrison Forces Labor Union (Zenchuro) yesterday at the Defense 
Ministry to cut pay and allowances for Japanese employees working at 
US military bases in Japan along with revising a special agreement 
on Japan's host nation support ("omoiyari yosan" or literally 
"sympathy budget") for the stationing of US forces in Japan. The 
special agreement is to expire in March next year. The government 
plans to cut down on wages for Japanese workers at US military bases 
for the first time. The government proposed four points, such as 
abolishing the current system of paying differentials with wages for 
 
TOKYO 00005106  013 OF 016 
 
 
national public service personnel. However, Zenchuro refused to 
accept all the proposals. The union is expected to go on a strike 
for the first time in 16 years since 1991. 
 
There are now about 25,000 Japanese employees working at US military 
bases across the country. In June this year, an advisory panel for 
the finance minister recommended the government to reduce their 
wages on the grounds that there has been an increase in the number 
of Japanese employees working at US military bases while there has 
been a decrease in the number of US servicemen in Japan. In response 
to this recommendation, the government is planning to cut their 
wages. The government will presumably face rough going in its 
negotiations with Zenchuro and is expected to take time throughout 
this month for a settlement. USFJ is opposed to the Japanese 
government's planned pay cuts for its Japanese employees. This issue 
remains a matter of concern prior to Prime Minister Yasuo Fukuda's 
visit to the United States in mid-November. 
 
The four points proposed by the government are to: 1) abolish 10 
PERCENT  differentials added to base pay for Japanese employees 
working at US military bases as compared with that for national 
public service personnel; 2) abolish language allowances; 3) lower 
retirement allowances to the level of those for national public 
service personnel; and 4) abolish extra wage increases. All these 
measures, if implemented entirely, will lead to a cutback of 
approximately 10 billion yen. The sympathy budget totals 
approximately 217 billion yen for the current fiscal year. 
 
20) US Assistant Secretary of State Hill expresses "confidence in 
resolving the issue of sending Japanese hijackers back home" 
 
YOMIURI (Page 2) (Full) 
November 4, 2007 
 
At a press briefing on Nov. 3 at the Japan National Press Club, US 
Assistant Secretary of State Christopher Hill, the chief delegate to 
the six-party talks to discuss North Korea's nuclear issue, revealed 
that the United States and North Korea had been discussing the 
question of whether to send the Japan Airlines' Yodo-go hijackers 
back to Japan in a related move to consider removing North Korea 
from the list of state sponsors of terrorism. Hill indicated 
confidence in resolving the question of sending the hijackers back 
to Japan, saying, "We'll be able to produce a satisfactory result." 
Although Hill did not mention any specifics of the discussion, there 
seems to have been a certain degree of positive response from North 
Korea to the question of sending the hijackers to Japan. 
 
North Korea has harbored the Yodo-go hijackers in the country. This 
issue, as well as the abduction issue, has been one of the reasons 
the US Department of State in its annual report designates North 
Korea as a state sponsor of terrorism. But Hill noted that "It was 
unclear" whether resolving the Yodo-go issue would be a legal 
requirement to remove the North from the list of state sponsors of 
terrorism. Hill did not make it clear, either, that resolving the 
abduction issue was a legal requirement. 
 
Reportedly, North Korea has insisted that it be delisted by the end 
of the year. In this regard, Hill indicated that a legal advisor to 
the Department of State would soon give, through diplomatic channels 
of the US Mission to the United Nations in New York, an account of 
the legal requirements on the delisting of North Korea. Speaking of 
the procedures for delisting North Korea, Hill said that North Korea 
 
TOKYO 00005106  014 OF 016 
 
 
needed to meet the legal requirements and issue a statement saying 
that it would not give support to terrorists. 
 
21) US Assistant Secretary of State Hill: US takes into account 
progress on abduction issue when delisting DPRK as state sponsor of 
terrorism 
 
YOMIURI (Page 2) (Full) 
November 3, 2007 
 
US Assistant Secretary of State Christopher Hill, the US chief 
negotiator in the six-party talks on North Korea's nuclear issue, 
arrived in Japan on Nov. 2 and met with his Japanese counterpart in 
the six-party talks, Kenichiro Sasae, director-general of the Asian 
and Oceanian Affairs Bureau of the Ministry of Foreign Affairs, in 
the ministry. In the session, Hill indicated that the United States 
would take into consideration progress on the abduction issue when 
delisting North Korea as a state sponsor of terrorism and revealed 
that during the Oct. 31 US-DPRK talks in Beijing, the US urged North 
Korea to take action to move the abduction issue forward. 
 
A group of US experts is expected to set in motion possibly this 
weekend the work of disabling nuclear facilities in Yongbyon, North 
Korea. In this regard, Sasae told Hill that Japan, too, was 
considering sending a group of its nuclear experts to the North. 
 
22) US conditioning removal of North Korea's name from list of 
states sponsoring terrorism on DPRK issuing statement that it is not 
involved with terrorists (Asahi) 
 
ASAHI (Page 2) (Excerpts) 
November 5, 2007 
 
Assistant Secretary of State Hill, who is the chief US delegate to 
the six-party talks on North Korea's nuclear issue, revealed that 
efforts had begun to denuclearize that country with the sending 
today of a team of US experts to render the DPRK's nuclear reactors 
and the like unusable. In addition, he stated that in removing North 
Korea from the list of states sponsoring terrorism, Pyongyang would 
have to issue a statement that the country is not involved with 
terrorists. On the other hand, North Korea's Vice Foreign Minister 
Kim Kye Gwan on Nov. 3 strongly criticized Japan for opposing the 
removal of his country's name from the terror list, saying, "It is a 
foolish act." 
 
Hill, speaking at the Japan National Press Club, referred to having 
approached North Korea through what he called "the New York channel" 
on the issue of removing the DPRK from the terror list. He said, 
"North Korea has to issue some kind of statement," indicating that 
one condition would be a declaration that it was not involved in 
terrorism. 
 
23) Japan mulling participating in work of disabling DPRK's nuclear 
facilities 
 
ASAHI (Page 4) (Full) 
November 3, 2007 
 
US Assistant Secretary of State Christopher Hill, the chief delegate 
to the six-party talks on North Korea's nuclear issue, arrived in 
Japan on Nov. 2 and met with Japan's chief delegate, Kenichiro 
Sasae, director-general of the Asian and Oceanian Affairs Bureau of 
 
TOKYO 00005106  015 OF 016 
 
 
the Ministry of Foreign Affairs (MOFA). Both officials discussed how 
to bring the six-party talks forward. After the session, Sasae met 
the press and said of the disablement process for North Korea's 
nuclear facilities: "The process is now led by the United States, 
but Japan is considering taking part in it." 
 
According to high-level MOFA officials, coordination is underway in 
the government to send a small number of experts to the disablement 
process. On the costs of disabling nuclear facilities, for instance, 
the cost of taking out the fuel rod from the nuclear reactor, Japan 
is considering bearing a part of such, with a senior MOFA official 
saying: "Such costs will not be handed to North Korea, so we are 
considering paying a portion of them." 
 
Hill and Sasae also discussed the question of whether the US would 
delist North Korea as a state sponsor of terrorism. Hill told Sasae 
that during the US-DPRK talks held in Beijing, the US had stressed 
the need for North Korea to move its relations with Japan forward. 
 
Later in the day, Hill told reporters that "We will shortly take out 
the fuel rod from the nuclear reactor" as part of the disablement. 
 
24) Former Yamada Yoko executive director Miyazaki admits to paying 
"carfare" to Nukaga and Kyuma for attending wedding reception 
 
ASAHI (Page 39) (Excerpts) 
November 3, 2007 
 
It was learned from a related source that Motonobu Miyazaki (69), 
former executive director of Yamada Yoko, a trading house 
specializing in military procurement, and president of Nihon Mirise 
since 2005, admitted during a voluntary questioning by the Tokyo 
District Public Prosecutors Office that he had paid 1 million yen 
each to former Defense Agency Director General and now Finance 
Minister Fukushiro Nukaga and former Defense Minister Akio Kyuma as 
"carfare" for attending a wedding reception he invited. 
 
Nukaga said that his wife attended the reception on his behalf, but 
she never received 1 million yen. Kyuma is now hospitalized. A 
staffer of his office said that it was not possible to confirm the 
matter. 
 
According to more than one related source, including a source 
connected with Yamada Yoko, a wedding ceremony of a family member of 
the owner of Yamada Yoko took place at a Tokyo hotel around November 
¶2005. The wife of Nukaga and Kyuma himself allegedly attended the 
reception. 
 
According to explanations given by a related source to Asahi 
Shimbun, Miyazaki, then executive director of Yamada Yoko, 
reportedly told investigators during the voluntary questioning that 
he paid 1 million each to Nukaga and Kyuma for carfare to attend the 
wedding reception. 
 
25) Justice Minister says in his home constituency: "Terrorists are 
wandering about Japan" 
 
MAINICHI (Page 29) (Full) 
November 4, 2007 
 
Justice Minister Kunio Hatoyama in a speech in his home 
constituency, Kurume City, Fukuoka Prefecture, on Nov. 3 said: 
 
TOKYO 00005106  016 OF 016 
 
 
"Terrorists are wandering about Japan." Earlier on Oct. 29, Hatoyama 
made this controversial remark in a speech at the Foreign 
Correspondents' Club of Japan: "A friend of a friend is a member of 
al Qaeda." At the time, Hatoyama was cautioned by Chief Cabinet 
Secretary Nobutaka Machimura. 
 
SIPDIS 
 
During Kurume City's festival, Hatoyama said in his speech: "When I 
reveal the facts, the media make a fuss. Our country must be 
protected from terrorists. Horrible terrorists are wandering about 
freely here in Japan. I know that for a fact, so I am revealing it 
to you." 
 
SCHIEFFER