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UNCLAS SECTION 01 OF 12 TOKYO 005140 
 
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 11/08/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Diet affairs: 
4) Ruling coalition eyes 40-day extension of current Diet session to 
allow enough time to pass the new antiterrorism bill (Yomiuri) 
5) Antiterrorism bill expected to pass the Lower House next week, 
now that Democratic Party of Japan (DPJ) refuses to respond to 
revision talks (Nikkei) 
6) Passage of regular law for overseas dispatch of the SDF will not 
be until next year: Prime Minister Fukuda (Yomiuri) 
 
Ozawa caper: 
7) Ichiro Ozawa makes formal announcement of his decision to stay on 
as head of the DPJ (Asahi) 
8) Ozawa: Feelers beneath surface about possibility of a grand 
alliance of LDP, DPJ were sent out two months ago (Mainichi) 
9) Despite Ozawa's repentance, bad feeling still smolders in the DPJ 
toward his recent caper (Sankei) 
 
Defense and security issues: 
10) Former Secretary of Defense Cohen, in Tokyo, says that it would 
be a mistake for Japan to reverse course away from becoming an 
"ordinary country" (Yomiuri) 
11) Futenma council meets after ten months but ends with central 
government and Okinawa local government as far apart as ever 
(Yomiuri) 
12) Former defense official testifies in Diet session that he 
reported the discrepancy in MSDF refueling figures to superiors in 
2003, which they deny (Yomiuri) 
13) Most of huge slush fund of mostly embezzled money used by former 
Yamada Yoko Corp. top executive for lavish treatment of former Vice 
Minister Moriya (Asahi) 
14) Finance Minister Nukaga denies he took 1 million yen as 
"carfare" from Yamada Yoko owner (Asahi) 
 
Foreign affairs: 
15) New vice foreign minister, replacing Yachi, is Ambassador to 
Indonesia Shin Ebihara (Nikkei) 
16) Team of American specialists on Asia, including Richard Armitage 
and Joseph Nye, issue report that labels China "the US' most 
important relationship" (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun & Akahata: 
Ozawa officially announces his intent to remain as DPJ leader, vows 
to make all-out efforts to win next Lower House election 
 
2) EDITORIALS 
 
Asahi: 
(1) Five requests to Ozawa-led Democratic Party of Japan 
(2) Government urged to resolve Hepatitis-C issue following 
recommendation through mediation 
 
Mainichi: 
 
TOKYO 00005140  002 OF 012 
 
 
(1) Details of proposal for grand coalition still hidden 
(2) Hepatitis suit: Health Ministry's conscience being tested 
 
Yomiuri: 
(1) Mess over Ozawa's resignation reveals DPJ's immaturity 
(2) Steadily move negotiations on Futenma transfer issue forward 
 
Nikkei: 
(1) Government should quickly decide to introduce emissions trading 
system 
(2) Deferring repeated offensives shorter route to security 
 
Sankei: 
(1) DPJ should give priority to policies 
(2) Explore settlement on Hepatitis issue 
 
Tokyo Shimbun: 
(1) It is prime minister's turn to talk about coalition proposal 
(2) New system for police to record questioning could be acceptable 
 
Akahata: 
(1) Ozawa's flip-flop hard to understand 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Nov. 7 
 
NIKKEI (Page 2) (Full) 
November 8, 2007 
 
08:54 
Met with Vice Defense Minister Masuda at Kantei. 
 
11:28 
Met with Chief Cabinet Secretary Machimura. 
 
11:58 
Had a luncheon with first-time House of Representatives members of 
the LDP. 
 
13:00 
Attended a session of the Lower House Committee on Prevention of 
Terrorism. 
 
16:20 
Met with Naigai News Co. Chairman Kiyomiya. Afterwards, met with 
Minister of Internal Affairs and Communications Masuda and then met 
with Headquarters for Regional Revitalization Director Yamamoto. 
 
17:00 
Attended a session of the IT Strategy Headquarters. 
 
17:59 
Met with former Deputy Chief Cabinet Secretary Nobuo Ishihara. 
Afterwards, met with Vice Foreign Minister Yachi. 
 
19:28 
Met with National Defense Academy President Makoto Iokibe and others 
at Imperial Hotel. 
 
22:19 
Arrived at his private residence in Nozawa. 
 
TOKYO 00005140  003 OF 012 
 
 
 
4) Extra Diet session likely be extended for about 40 days to secure 
time for deliberations at Upper House on new antiterrorism 
legislation 
 
YOMIURI (Page 2) (Full) 
November 8, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
revealed yesterday at a press conference his party's policy of 
opposing the new antiterrorism special measures bill. The government 
and ruling parties in turn started coordination to extend the 
current Diet session for about 40 days until late December, revising 
the plan for a one-month extension. The government and ruling camp 
reached the judgment that it would now be necessary to take all 
possible measures, including securing sufficient time for 
deliberations at the House of Councillors, to pass the new 
antiterrorism bill during the current Diet session. The government 
and ruling camp intend, however, to continue to try to find a way to 
approach the DPJ. In a bid to avoid a full-blown clash with the 
opposition, they plan to put off until next week the passage of the 
bill through the House of Representatives. 
 
Following the DPJ's release of an outline of its set of 
counterproposals to the government's new antiterrorism legislation, 
Liberal Democratic Party (LDP) Secretary General Bunmei Ibuki 
directed Diet Affairs Committee Chairman Tadamori Oshima to ask the 
DPJ to work out a compromise bill. In a meeting later in the day of 
the Lower House Special Committee on Prevention of Antiterrorism the 
LDP called on the DPJ to start deliberation on revising the 
legislation, but the main opposition party rejected the request. 
 
With Ozawa having made it clear the party still opposes the new 
antiterrorism bill, it has now become difficult to find a way to 
resume consultations with the DPJ. The need therefore has grown 
stronger for the ruling coalition to resort to re-adopting the bill 
in the Lower House with the approval of a two-thirds majority, after 
it is voted down in the Upper House. 
 
There still remains concern that if the DPJ submits a censure motion 
against Prime Minister Yasuo Fukuda to prevent the re-adoption of 
the legislation, it might lead to Lower House dissolution. Most 
members in the ruling coalition, though, are optimistic, with one 
lawmaker saying, "The DPJ is no longer able to submit a censure 
motion due to the turmoil caused by Ozawa." 
 
There is a strong view in the ruling camp that the passage of the 
new antiterrorism bill through the Lower House should now be delayed 
to next week so as not to annoy the DPJ. The ruling coalition is 
considering taking a vote on the bill at the special committee on 
Nov. 12 and having it pass the Lower House on the 13th. Given these 
circumstances, the special committee decided easily in its directors 
meeting yesterday afternoon to hold today a question-and-answer 
session for two hours. 
 
5) New refueling legislation likely to clear Lower House next week 
or later: DPJ determined not to respond to revision talks 
 
NIKKEI (Page 2) (Slightly abridged) 
November 8, 2007 
 
The battle between the ruling and opposition parties over resumption 
 
TOKYO 00005140  004 OF 012 
 
 
of refueling operations in the Indian Ocean by the Maritime 
Self-Defense Force (MSDF) has come to a standstill again, with the 
Democratic Party of Japan (DPJ or Minshuto) toughening its 
confrontational stance toward the ruling camp with the return of 
President Ichiro Ozawa to the fold. The ruling camp wanted to take a 
vote on the bill at the Lower House Terrorism Prevention and Iraq 
Assistance Special Committee, but the DPJ is determined not to 
respond to a call for revision talks. The roll call will most likely 
be delayed until at least next week. 
 
If the ruling parties railroad the bill, deliberations in the Upper 
House, where the               opposition camp has dominance, would 
be rocky. As such, an increasing number of ruling party members are 
becoming cautious about taking a committee vote this week. 
 
Both camps agreed at a meeting of the Lower House Special Committee 
on the evening of the 7th to hold a questioning session for two 
hours on the morning of the 8th. However, whether to take a vote or 
not has been left to Chairman Takashi Fukaya to decide. After the 
meeting, Fukaya told reporters, "It will be difficult to take a vote 
on the 8th as planned." 
 
The government and the ruling camp are aware that the US strongly 
hopes Japan will resume its fueling operations. They plan to hold 
deliberations in the Upper House up to the evening of the 15th, when 
the prime minister is scheduled to travel to the US. The prime 
minister is also slated to take part in an East Asia summit to be 
held in Singapore. Unless the questioning session in the Upper House 
with the presence of the prime minister is completed before his 
overseas travel, the period of time until he returns home on the 
22nd would be wasted. 
 
It is unclear how fiercely the opposition camp would react if the 
ruling camp forced a vote on the bill. The prime minister and Ozawa 
discussed the enactment of a permanent law for the overseas 
dispatches of Self-Defense Forces (SDF) and new refueling 
legislation as a package. The ruling parties hope that if they 
manage to bring about policy talks with the DPJ, they might be able 
to find a lead-in toward a breakthrough. 
 
6) SDF dispatch law next year: Fukuda 
 
YOMIURI (Page 4) (Abridged) 
November 8, 2007 
 
Prime Minister Fukuda yesterday attended a meeting of the House of 
Representatives Special Committee on Antiterror Measures for 
intensive discussions. In the meeting, Fukuda was asked about the 
advisability of establishing a general or permanent law for Japan to 
send the Self-Defense Forces on overseas missions. "It's easy to 
talk about a general law," Fukuda stated before the committee. 
"But," he went on, "it's quite difficult to decide." The premier 
added, "At any rate, it will be next year or later." With this, 
Fukuda indicated that he would do his best instead to get a 
government-introduced new antiterror bill through the Diet for the 
time being (in order for Japan to resume the Maritime Self-Defense 
Force's refueling activities in the Indian Ocean). 
 
7) Ozawa officially announces his decision to stay on; "I will stake 
my political life on the next general election," says Ozawa, 
dismissing a coalition and indicating return to confrontational 
policy course 
 
TOKYO 00005140  005 OF 012 
 
 
 
ASAHI (Top play) (Abridged slightly) 
November 8, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
at a joint meeting yesterday of DPJ members in both chambers 
officially retracted his resignation as party head, saying: "I have 
decided to stake my political life on the (next) general election. 
By serving as party president once more, I would like to face the 
final battle." In a press conference that followed, Ozawa indicated 
a return to the confrontational policy course, dismissing holding 
talks on a coalition before the (next) general election. Following 
this, the government and the ruling parties started final 
coordination for extending the current Diet session by about 35 days 
until mid-December. The view is gaining ground that a new refueling 
bill to resume the Self-Defense Forces' operation should be 
readopted in the House of Representatives to enact it. 
 
At the DPJ plenary meeting, Ozawa said: "I apologize for causing 
tremendous trouble for the public and DPJ supporters over the 
party-head talks." Based on his talks with Prime Minister Fukuda, 
Ozawa explained why he had proposed a grand coalition to the party 
leadership this way: "I thought that we would be able to realize 
major policies by joining the administration and that chances would 
grow for us to win (the next) general election by showing our 
ability to hold the reins of government to the public." 
 
Ozawa then announced that he would stake his political life on the 
next general election, pledging to win it as party president. He 
also revealed a plan to launch a Lower House election campaign 
headquarters on Nov. 7 to make full-fledged efforts to build a solid 
campaign system. 
 
In the press conference that followed, he stressed that he had no 
intention of bringing up the coalition concept before the next 
general election, noting: "I will work hard for the (next) general 
election without thinking of a coalition. Given a party consensus, I 
will give my all and fight to the best of my ability in winning the 
general election." He denied any possibility of holding talks with 
Prime Minister Fukuda, saying, "Basically I don't think there will 
be any such meeting in the future." He also reiterated his 
opposition to the (new) refueling assistance special measures 
legislation, noting, "Because basic views are different, meeting 
(the other side) halfway will not be accepted." 
 
Meanwhile, in the wake of the DPJ's production of its 
counterproposal, the ruling camp in yesterday's meeting of the Lower 
House Special Committee on Prevention of Terrorism called on the DPJ 
for revision talks on the special measures legislation. The DPJ 
refused the request. As a result, the government and ruling parties 
decided to expedite Diet deliberations for enacting the special 
measures legislation during the current session. 
 
Although the government and ruling bloc put off their plan to take a 
vote at the Lower House committee yesterday, they intend to extend 
the Diet session beyond Nov. 10 to get the legislation passed 
through the Lower House early next week. They are conducting 
coordination to extend the session by about 35 days until 
mid-December to secure enough time for deliberations in the Upper 
House by envisaging readopting the legislation in the Lower House by 
a two-thirds majority following rejection in the Upper House. 
 
 
TOKYO 00005140  006 OF 012 
 
 
Many in the government and ruling parties take the view that even if 
the legislation is readopted in the Lower House, (the DPJ) does not 
have the power to submit a censure motion against the prime minister 
in the Upper House due to the Ozawa resignation fiasco. In the event 
a censure motion is submitted, the government and the ruling camp 
would make a final decision on readopting the legislation by 
watching the DPJ's response while dangling the prospect of a Lower 
House dissolution. 
 
8) DPJ chief Ozawa reveals how an idea of forming a grand coalition 
came about: "The idea was suggested by someone two months ago behind 
the scenes" 
 
MAINICHI (Page 2) (Full) 
November 8, 2007 
 
Kazuto Takeshima 
 
At a press briefing yesterday, Democratic Party of Japan's (DPJ) 
President Ichiro Ozawa explained about his recent meeting with Prime 
Minister Yasuo Fukuda (president of the ruling Liberal Democratic 
Party (LDP)). He also revealed in part how the idea of forming a 
grand coalition with the LDP came about, telling reporters that 
there had been a mediator, whose name Ozawa did not say, and that 
this person had suggested to him two months or so ago that he form a 
grand coalition with the LDP. On the question of who first brought 
up the idea of a grand coalition at the party-heads meeting, what 
the government and ruling bloc have so far explained does not agree 
with the DPJ, but Ozawa admitted that the grand coalition idea did 
not come up suddenly at the meeting. 
 
Ozawa did not make clear who had been the "mediator," but a source 
connected with the LDP yesterday pointed out: "The first mediator 
would have been Tsuneo Watanabe, chairman and editor-in-chief of the 
Yomiuri Shimbun." 
 
Ozawa again objected to the claim by a source connected with the 
government and the ruling parties that "It was Mr. Ozawa who took 
the lead in discussing the grand coalition idea." Ozawa said, "So 
far I've never revealed the contents of secret talks between 
politicians. But under the circumstances, I will make it clear," 
giving an explanation about (how the grand coalition idea came 
about). 
 
According to Ozawa, he was invited by "someone," whose name he did 
not reveal, to dine together. At the time, that "someone" suggested 
forming a grand coalition for the sake of the country. Ozawa told 
that "someone" that the mood in the DPJ is to stay closely united in 
order to win the next Lower House election, following this summer's 
Upper House election. He told the other person that "whether to 
(form a grand coalition) is a matter the person in power (namely, 
the prime minister) should bring up." Their meeting occurred around 
the time when former Prime Minister Shinzo Abe announced his 
intention to resign as prime minister. 
 
In mid-October, that "someone" again contacted Ozawa and asked him 
to meet a "proxy" for the prime minister, telling Ozawa that "The 
prime minister, as well, is willing to form a grand coalition." 
Ozawa met with the delegate at a certain place and that person told 
Ozawa: "The prime minister is eager about forming a grand 
coalition." Ozawa asked the person, "Are you serious about this 
idea?" The person responded: "I, too, am serious." This meeting 
 
TOKYO 00005140  007 OF 012 
 
 
seemed to occur around when the Fukuda cabinet came into being. The 
agent for the prime minister would have been a person who acted in 
compliance with the prime minister. Ozawa did not reveal the name of 
this person, either. Politicians who have favored the grand 
coalition idea include former Prime Minister Yoshiro Mori, former 
LDP Upper House Caucus Chairman Mikio Aoki, and former LDP Secretary 
General Hidenao Nakagawa. 
 
When asked about who suggested forming a grand coalition, Prime 
Minister Fukuda said: "If both sides do not favor the idea of 
forming a grand coalition, doing so is impossible. Both shared 
similar feelings." Ozawa again denied the claim at the press 
briefing that he brought up the idea of forming a grand coalition, 
but he remained mum at the press briefing yesterday, as well, on 
such questions as whether during the meeting, he had discussed 
cabinet posts, leaving details about the grand coalition scheme 
unclear. 
 
9) Some DPJ members remain unhappy; Ozawa cannot afford to make 
mistakes in managing political situation, party affairs 
 
SANKEI (Page 3) (Full) 
November 8, 2007 
 
The Democratic Party of Japan (DPJ or Minshuto) during an informal 
meeting of both Lower and Upper House members accepted President 
Ozawa's apology for the furor over the announcement of his decision 
to step down has caused and his decision to stay on as president. 
The reality is, however, that many members backed down out of 
necessity in view of Ozawa's election skills and concern that he 
might leave the party, because the Lower House election is close at 
hand, a mid-ranking member explained. Dissatisfaction among party 
members has just quieted down on the surface. There is fear that if 
Ozawa makes a blunder in the management of party affairs or in his 
judgment of the political situation, criticism against him would 
erupt, causing a serious fissure in the party. 
 
The session held yesterday was expected to end without turmoil even 
before it started. After Ozawa offered an apology, Supreme Advisor 
Kozo Watanabe, who is known for his speaking skills, evoked 
laughter, saying, "If you had listened to advice as seriously during 
the Hosokawa cabinet, a two-party system would have been realized a 
long time ago." When he said, "Let's turn the potential setback to 
our advantage," many lawmakers applauded and smiled. 
 
However, Deputy Secretary General Yoshito Sengoku, who keeps himself 
at arm's distance from Ozawa, said, "There is a considerable gap 
between the internal air of excitement (expectations of Ozawa) and 
the feeling of the public," creating a feeling of tension at the 
meeting. 
 
Sengoku continued, "There have been cases in which policy 
discussions were disrupted, when somebody said in an indirect 
discourse that President Ozawa's view on this issue seems to be such 
and such. Communication between Mr. Ozawa and party members is 
superficial." He thus indicated his view that dissatisfaction with 
Ozawa remains. 
 
Vice President Hajime Ishii also said after the meeting, "It is only 
natural that somebody would advance such a harsh opinion. Otherwise, 
the party looks like some kind of cult." Several others also 
indicated understanding of the criticism of Ozawa expressed by 
 
TOKYO 00005140  008 OF 012 
 
 
Sengoko, with Deputy President Seiji Maehara noting, "There had been 
an atmosphere in the party in which Mr. Ozawa's opinion was the 
final word" and Deputy President Katsuya Okada saying, "I want the 
leadership to take Mr. Sengoku's opinion seriously." 
 
Ozawa during a press conference held after the meeting stressed his 
intention to oppose the new antiterrorism special measures bill 
introduced by the government, by abandoning the idea of a grand 
coalition and policy talks with the Liberal Democratic Party (LDP). 
However, one mid-ranking member said, "If there has appeared a gap 
with his words, we will approve an effort to remedy the situation as 
we did this time." 
 
The Japanese Communist Party, the Social Democratic Party and the 
People's New Party, the DPJ's partners in the opposition coalition, 
also criticized Ozawa, noting that it is illogical for the DPJ to 
unconditionally dissuade Mr. Ozawa from resigning. The furor this 
time will likely have a serious impact on the joint struggle by the 
opposition. 
 
JCP Chair Kazuo Shii criticized Ozawa, "Mr. Ozawa did not 
categorically say that the grand coalition initiative was a 
mistake." SDP head Mizuho Fukushima underscored, "There is no change 
in the dangerous situation in which a permanent law could be 
enacted." 
 
10) Former US Defense Secretary Cohen: Moving away from ordinary 
country is a mistake; Hopes for resumption of Japan's refueling 
operation 
 
YOMIURI (Page 2) (Full) 
November 7, 2007 
 
Visiting former US Secretary of Defense William Cohen gave an 
interview to the Yomiuri Shimbun yesterday. In his interview in 
Tokyo, citing such overseas activities conducted in recent years by 
the Self-Defense Forces (SDF) as participation in the UN 
peace-keeping operations and support for the Iraqi reconstruction, 
Cohen said: "Japan has been becoming an ordinary country. It is 
wrong to move away from that course." He expressed his hopes Japan 
would resume the Maritime Self-Defense Force's refueling operation 
in the Indian Ocean. 
 
Cohen pointed out that the suspension of the MSDF refueling mission 
has given Japanese political leaders a good opportunity to carry out 
real debate on how Japan should contribute to the international 
community. He then said: "Whether Japan can become a country that 
can assume international responsibility is now being tested." 
 
11) Futenma panel: Gov't explores common ground before Fukuda's US 
visit; Tokyo, Okinawa still divergent 
 
YOMIURI (Page 4) (Full) 
November 8, 2007 
 
The government resumed consultations yesterday for the first time in 
10 months with Okinawa's prefectural and municipal governments, 
including the city of Nago, over the pending issue of relocating the 
US Marine Corps' Futenma Air Station in the island prefecture's 
central city of Ginowan. In the meantime, Prime Minister Fukuda is 
scheduled to make his first official visit to the United States in 
mid-November. The government therefore judged that it would be 
 
TOKYO 00005140  009 OF 012 
 
 
necessary to make an appeal on its stance over the issue of Futenma 
relocation before Fukuda's US visit. However, Okinawa's base-hosting 
localities have been calling for the government to revise its 
Futenma relocation plan. As it stands, Tokyo and Okinawa remain far 
apart on the issue. It is still unclear whether the government can 
find common ground with Okinawa. 
 
On the issue of relocating Futenma airfield, the government plans to 
lay down an alternative V-shaped pair of airstrips in a coastal area 
of Camp Schwab, a US military base in Okinawa Prefecture's northern 
coastal city of Nago. However, Okinawa Prefecture and Nago City have 
been calling for the government to move the site of this newly 
planned tarmac to an offshore area. 
 
In yesterday's meeting, Okinawa Gov. Hirokazu Nakaima insisted on 
the necessity of moving the relocation site to an offshore area. 
Specifically, Nakaima cited the need to reduce aircraft noise as 
well as to eliminate the risk of accidents. He also cited the need 
to protect egg-laying sites for sea turtles as well as to protect 
archeological properties. The government is now going through 
procedures to assess the potential impact of Futenma relocation to 
its site and environs. In this regard, Nakaima indicated that he 
would ask the government to revise its Futenma relocation plan in 
two stages. First, Nakaima suggested the need for the government to 
move the relocation site to an offshore area at its own discretion 
within the scope of its environmental assessment. Second, the 
governor is expected to issue his statements over the government's 
environmental assessment. In this process, the governor will ask the 
government to move the relocation site to a farther offshore area. 
 
According to the Okinawa prefectural government, the alternative 
facility's site may be moved to the extent of up to about 56 meters 
within the limits of environmental assessment. "I'm not asking too 
much," Nakaima told a news conference after the meeting. However, 
the government says it cannot revise the relocation plan. Okinawa 
and the government agreed in yesterday's meeting to continue their 
consultations. However, Chief Cabinet Secretary Machimura, who 
presided over the meeting, indicated in a press conference after the 
meeting that it would be difficult to revise the government plan 
agreed on between the Japanese and US governments. "We can't change 
it just because of Japan's circumstances," Machimura said. 
 
12) Fuel supply correction reported to Ishiba, others: ex-MSDF 
official 
 
YOMIURI (Page 4) (Full) 
November 8, 2007 
 
The House of Representatives Special Committee on Antiterror 
Measures held a closed-door meeting yesterday over the issue of 
correcting the quantity of fuel supplied by a Maritime Self-Defense 
Force supply ship in the Indian Ocean. In the meeting, Masayoshi 
Teraoka, a former director of the Maritime Staff Office Plans and 
Programs Division, disclosed that he had consulted with officials 
above him on May 8, 2003 about the quantity of MSDF-supplied fuel. 
 
In a news conference held that day, the then Joint Staff Council 
chairman announced a mistaken amount of fuel supply. A reporter 
there asked about the amount of fuel supply, saying, "It's small." 
Teraoka reported this to then Defense Agency Director General Ishiba 
and then Defense Policy Bureau Director General Takemasa Moriya, 
according to one of those present in the meeting. 
 
TOKYO 00005140  010 OF 012 
 
 
 
13) Former executive of Yamada Corp. spend most of 9 million yen in 
slush funds on entertaining Moriya, all funds now used up 
 
ASAHI (Page 39) (Excerpts) 
November 8, 2007 
 
Motonobu Miyazaki, former executive of Yamada Corp., a company 
specializing in military equipment, used slush funds pooled under 
the pretext of remuneration for directors to treat former Vice 
Defense Minister Takemasa Moriya to free rounds of golf, according 
to sources familiar with the case. It was confirmed about five years 
ago that the balance of slush funds in a bank account was 
approximately 9 million yen. But it has been found that most of the 
money had been used to entertain Moriya until all the funds were 
used up this April. Miyazaki left the company and established Nihon 
Mirise, a trading firm specialized in military equipment,. Even 
afterward, Miyazaki was using the funds placed under the new 
company's control to entertain Moriya, according the sources. 
 
On suspicion of Miyazaki and others having illegally withdrawn about 
100 million yen from a US subsidiary of Yamada Corp., the Tokyo 
District Public Prosecutors Office's special investigation squad is 
questioning them. 
 
Yamada Corp. has long pooled funds disbursed under the pretext of 
remuneration for Miyazaki and other executive directors in a bank 
account. Its successive accountants reportedly have management the 
funds. 
 
The about 9 million yen in the bank account - confirmed five years 
ago - were used mostly to entertain Moriya. When Miyazaki played 
golf with Moriya and his wife and dined with them after golf, he 
paid the bills, including those for himself, with the slush funds. 
The amount paid by Moriya as expense for golf was always 10,000 yen, 
even when his wife played with them. 
 
14) Finance Minister Nukaga denies in Lower House allegation he 
received one million yen in carfare 
 
ASAHI (Page 39) (Slightly abridged) 
November 8, 2007 
 
In a meeting of the House of Representatives special antiterrorism 
committee yesterday, Finance Minister Nukaga denied an allegation 
that he had received one million yen from Motonobu Miyazaki, former 
executive of Yamada Yoko Corp., a trading firm specializing in 
military equipment, as carfare when he attended a wedding reception 
in the fall of 2005. He replied to a question by Democratic Party of 
Japan member Hiroshi Kawauchi: "I returned the 200,000 yen I 
received as carfare to Miyazaki as congratulations money." 
 
Nukaga said: "It is true that Mr. Miyazaki left carfare when he 
brought an invitation card. About 200,000 yen was in the envelope." 
Since he assumed the post of Defense Agency director general after 
that, his wife attended the reception on behalf of him. Nukaga said 
that he had returned the carfare money to Miyazaki as 
congratulations money. 
 
15) Ambassador to Indonesia Ebihara to become vice foreign minister 
 
NIKKEI (Page 2) (Full) 
 
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November 8, 2007 
 
Foreign Minister Koumura approved yesterday of the honorable 
retirement of Administrative Vice Foreign Minister Shotaro Yachi, 
63, in January next year, and decided to appoint Ambassador to 
Indonesia Shin Ebihara to be Yachi's successor as vice minister. 
Ebihara's appointment will be decided in a cabinet meeting by early 
January after obtaining approval in a meeting at the Prime 
Minister's Office. 
 
Shin Ebihara left the University of Tokyo in mid-course in 1971 and 
entered the Ministry of Foreign Affairs. He has been serving as 
ambassador to Indonesia since March 2006, after serving in the post 
of assistant deputy chief cabinet secretary. He hails from Tokyo. He 
is 59 years old. 
 
16) US bipartisan group of foreign affairs and security experts 
suggests: "Relations with China are of vital importance" 
 
SANKEI (Page 6) (Full) 
November 8, 2007 
 
Takashi Arimoto, Washington 
 
A bipartisan group of foreign affairs and security experts, 
including former Deputy Secretary of State Armitage and former 
Assistant Secretary of Defense Nye, on Nov. 6 finalized a set of 
proposals for the United States' future foreign policy strategy. 
Regarding China, the proposals say: "In terms of world security and 
prosperity, US-China relations are of vital importance." They 
insisted that the US and China, instead of coming into collision, 
should work together in such areas as energy, security, the 
environment, and prevention of weapons of mass destruction. 
 
The proposals note that while the US was busy with dealing with the 
Middle East issue, China "skillfully filled the vacuum," citing that 
China has been actively engaged in multilateral political and 
security frameworks, for instance, the ASEAN Regional Forum (ARF) 
and the ASEAN plus three. 
 
As China's intentions, the proposals give this analysis: "China did 
so in pursuit of economic interests, but China may be pursuing a 
long strategy of growing into a global power instead of a regional 
power." 
 
On the Japan-US alliance, the proposals note that "It has been 
strengthened over the past seven years," and appreciated it, noting, 
"Multifaceted relations are continuing." As for US-ROK relations, 
the proposals note that "Most South Korean people are aware of the 
importance of the bilateral alliance," adding that they are 
irritated by their country's dependence on the US in the security 
area and they are seeking to improve the current relations to the 
relations of equality. 
 
Envisioning next year's presidential election, the proposals cite 
the tasks the US needs to address in the future include: (1) the US 
should fight the threat of terrorism but should not overreact; (2) 
the US should close its Guantanamo Bay Naval Base's prison for 
alleged terrorists in Cuba in order not to give the impression that 
the Americans are intolerant and injustice; and (3) the US should 
demonstrate its diplomatic power, for instance, by acting as a 
mediator to bring peace to the Middle East. 
 
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