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UNCLAS SECTION 01 OF 18 TOKYO 005173 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11/08/07 
 
 
Index: 
 
(1) DPJ's Hatoyama stresses party's opposition to new antiterrorism 
bill (Yomiuri) 
 
(2) DPJ Secretary General Hatoyama expresses positive view about 
specific policy consultations with ruling camp (Yomiuri) 
 
(3) Ozawa makes fresh start as DPJ president, bowing deeply in 
apology (Asahi) 
 
(4) Illusory grand coalition concept; Mixed motives 
behind-the-scenes talks (Nikkei) 
 
(5) Reporters' roundtable on political situation -- Grand coalition 
plan continues to rock political community (Part 1) (Nikkei) 
 
(6) Reporters' roundtable on political situation -- Grand coalition 
plan continues to rock political community (Part 2) (Nikkei) 
 
(7) My viewpoint by Hiroshi Nakanishi: Explore common ground through 
policy talks (Asahi) 
 
(8) Editorial: Five requests to DPJ with Ozawa to stay on as 
president (Asahi) 
 
(9) Prosecutors to raid former Yamada Corp. executive Miyazaki 
possibly this afternoon on charge of embezzling 100 million yen from 
the company (Yomiuri) 
 
(10) Yamada Corp., listed as GE's agent in handouts distributed in 
meeting to select contractor for CX deal, contradicting Moriya's 
Diet testimony (Yomiuri) 
 
(11) Defense Ministry's mid-ranking official joined travel arranged 
by defense contractor, suspected of violating SDF ethical code 
(Yomiuri) 
 
(12) Editorial: Futenma issue must make headway (Yomiuri) 
 
(13) Voluntary global warming gas emissions cut action program: 
Differences in goals set by industrial circles; Only seven 
industries set goals at level higher than track records; 18 million 
tons of additional emissions cuts per year reported (Asahi) 
 
(14) Articles of faith in Japan's technology collapses due to 
collapse of bridge under construction in ODA project in Vietnam: 
Voices skeptical of tied aid growing; No government and corporate 
officials pay visit victims at hospitals (Asahi) 
 
ARTICLES: 
 
(1) DPJ's Hatoyama stresses party's opposition to new antiterrorism 
bill 
 
YOMIURI ONLINE (Full) 
November 8, 2007 
 
Referring to the new antiterrorism special measures bill, Democratic 
Party of Japan (DPJ or Minshuto) Secretary General Yukio Hatoyama 
told the press corps in Tokyo this morning: "Basically, there is a 
major difference between the policy direction of the ruling parties 
 
TOKYO 00005173  002 OF 018 
 
 
and the thinking of the DPJ. We do not want to give our cooperation 
to war. We would like to cooperate in the civilian sector. That 
great difference cannot be simply covered over; we should proceed 
with our confrontational line."  He reiterated the party stance of 
opposing the bill. 
 
Meanwhile, the House of Representatives Special Committee on 
Stopping Terrorism held a directors' meeting this morning to discuss 
the timetable for adopting the new antiterrorism bill. The ruling 
camp side proposed that appellations and adoption of the bill be 
wrapped up on the 9th at the latest. However, the opposition camp 
side rejected adoption this week. The two sides will meet again for 
talks this afternoon, but the ruling parties' thinking is to avoid 
creating turmoil in Diet deliberations by ramming the bill through, 
so it will be difficult to have the Lower House adopt the bill this 
week. The ruling camp will decide today the length of the extension 
of the Diet session, which will close on Nov. 10, and it is expected 
to make a formal decision on that on Nov. 9, aiming to have the 
Lower House pass the bill next week. 
 
In the directors meeting of the special committee, the ruling camp, 
taking into consideration that DPJ President Ozawa in his news 
conference on the 7th reiterated his stance of opposing the bill, 
proposed that the committee adopt the bill on the 8th, stating, 
"Since Mr. Ozawa has stated he is opposed, there is no room for 
debate." However, the opposition camp retorted, "There has not been 
sufficient deliberations on this bill." 
 
(2) DPJ Secretary General Hatoyama expresses positive view about 
specific policy consultations with ruling camp 
 
YOMIURI ONLINE (Full) 
Nov. 8, 2007, 1:49 pm 
 
Democratic Party of Japan (DPJ) Secretary General Hatoyama indicated 
in a TBS program this morning that the party would hold 
consultations with the ruling camp mainly on specific policies 
related to the people's daily lives. He said: "The DPJ should hold 
necessary policy consultations (with the ruling bloc). We would like 
to show that our views will be translated into law, like the bill 
amending the law to financially support people affected by natural 
disasters." 
 
Asked about the possibility of forming a coalition with the Liberal 
Democratic Party, Hatoyama said: "There is no possibility of a grand 
coalition. We will make utmost efforts to win the next general 
election. Until then, such an idea will never be turned into 
reality." He dismissed the possibility of the DPJ joining the ruling 
coalition before the next House of Representatives election. 
 
(3) Ozawa makes fresh start as DPJ president, bowing deeply in 
apology 
 
ASAHI (Page 2) (Full) 
November 8, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
officially retracted his resignation two days after he had abruptly 
announced it in a press conference. The main opposition party can 
now start moving again toward its goal to secure victory in the next 
House of Representatives election, putting an end to the turmoil 
that was caused by Ozawa's grand-coalition vision. Will the broken 
 
TOKYO 00005173  003 OF 018 
 
 
heart of Ozawa, known for taking a strong-armed approach, be healed? 
The DPJ, though, will have no time to spend on revitalizing itself 
as there are calls already for an early dissolution of the Lower 
House. 
 
Concern about spearhead 
 
"I won't be able to attend the meeting as I just held a press 
conference. I'm really sorry about that, for I wanted to join you," 
Ozawa last evening told Tamisuke Watanuki, former Lower House 
speaker. It was the first time for Ozawa to absent himself from 
attending a regular meeting of those Lower House members who have 
been elected 13 times to the Diet, including Watanuki, former Prime 
Minister Yoshiro Mori and former Lower House vice speaker Kozo 
Watanabe. 
 
Ozawa had a drawn and haggard face while he was explaining his talks 
with Prime Minister Yasuo Fukuda in a meeting yesterday evening of 
the party's lawmakers from both Diet chambers. He throatily said: "I 
apologize to the public, DPJ supporters, party rank-and-file 
members, and party lawmakers." He said: "I should have revealed my 
intent from the start and should have made explanations in polite 
way. I made really awkward explanations." 
 
He also explained why he had decided to resign: "I lost vigor for a 
moment." While saying that he did not have the keen eyesight he used 
to have, he seem to be close to tears as he received an appreciative 
applause from party lawmakers. 
 
Most of the DPJ lawmakers were relieved to see Ozawa's modest 
attitude, which is unlike the man who was dubbed the "destroyer." 
Vice President Katsuya Okada told the press after the meeting, "He 
gave a clear account, offered an apology to the public, and 
expressed his determination to aim at political change in the 
election. I was convinced."  Watanabe, who met with Ozawa at noon to 
give him encouragement, told Seiji Maehara and Okada on Nov. 6 at a 
Tokyo hotel: "Mr. Ozawa has changed. In the past , he would have 
quit before changing." 
 
Has Ozawa changed or been weakened? On the night of Nov. 6, Ozawa 
asked Secretary General Yukio Hatoyama, "Do you think they 
understand me?" Ozawa's aide said: "It was hard to encourage 
(Ozawa). He could hardly speak this morning." 
 
Ozawa stated in a press briefing yesterday: "I haven't completely 
recovered but I now think I should make efforts." There is concern 
about whether he can spearhead the DPJ in unifying the DPJ. 
 
DPJ members determined to win general election 
 
Ozawa, who withdrew his resignation, after disgracing himself in 
public, has no choice but to give up on the grand coalition idea in 
order for the party to win in the next general election. 
 
In yesterday's meeting, Ozawa repeatedly used strong expressions as 
if to inspire himself. He said: "I'm resolved to stake my political 
life on the next general election. It will be extremely regrettable 
if we fail to bring about a DPJ-led government." 
 
However, there is no change in his perception that the DPJ is in a 
severe situation, having said, "It is not that easy to win the Lower 
House election with the momentum from the victory of the July Upper 
 
TOKYO 00005173  004 OF 018 
 
 
House election." He also told senor party members that it was 
important to build a setup to win the election. He announced 
yesterday the setting of comprehensive election headquarters for the 
general election he heads as the first step for his fresh start as 
DPJ president. The party leadership gave a nod to establishing the 
panel based on Ozawa's request in order to let him devote his energy 
to campaigning for the general election, as well as to prevent him 
from working on a grand coalition with the government and ruling 
camp and political realignment. 
 
In the DPJ, however, there is strong concern that the turmoil caused 
by Ozawa in connection with his meeting with Fukuda on the grand 
coalition idea would damage the party's image and have an adverse 
impact on the next Lower House election. In the meeting yesterday, 
former policy chief Yoshito Sengoku made a critical comment, 
however: "There is a great gap between the excitement in the DPJ and 
the public's feelings. The DPJ is in a critical situation." 
 
In consideration of such critical views, Ozawa appears to be 
determined to aim at a change of government in the next general 
election, which he considers the last battle for him. As if to 
dispel the cooperative mood created by his meetings with Fukuda, he 
stated in yesterday's press conference his opposition to the new 
legislation to continue the Indian Ocean refueling mission: "Since 
we have differences in our basic philosophies, it won't be easy to 
solve (the refueling bill issue) with a split-the-difference 
approach." 
 
(4) Illusory grand coalition concept; Mixed motives 
behind-the-scenes talks 
 
NIKKEI (Page 2) (Slightly abridged) 
November 7, 2007 
 
After sending shock waves to political circles, the idea of forming 
a grand coalition government discussed between the top leaders of 
the ruling and opposition parties returned to square one. There is a 
rumor that Tsuneo Watanabe, chairman of the Yomiuri Shimbun 
Holdings, and former Prime Minister Yoshiro Mori were involved in 
the latest political theater that might have led to a political 
realignment. Why did the two party heads fail to reach an agreement 
on the grand coalition notion even though they met twice for 
discussion? The Nikkei verified the motives of the two sides that 
differed in the final stage. 
 
Appearing on an NHK program on Nov. 6, Liberal Democratic Party 
(LDP) Secretary General Bunmei Ibuki described the Fukuda-Ozawa 
talks: "When seeing each other with a view to marriage, two persons 
meet for the first time through a matchmaker's good offices." The 
matchmaker in his remark means Watanabe, who has advocated the 
formation of a grand coalition, as well as the reintroduction of a 
multiple-seat constituency system. 
 
Differences in explanations by Prime Minister Yasuo Fukuda, 
president of the LDP, and Ichiro Ozawa, president of the main 
opposition party Democratic Party of Japan (DPJ or Minshuto) about 
what they had talked about in their meetings have highlighted the 
existence of mediators. 
 
Although the failure in coordination has toned down their enthusiasm 
about forming a grand coalition between the LDP and DPJ, it is safe 
to say that both Fukuda and Ozawa looked into the possibility of a 
 
TOKYO 00005173  005 OF 018 
 
 
grand coalition government. Moves eyeing on Fukuda-Ozawa talks 
started in early October when Fukuda assumed the prime minister's 
post. 
 
Mori: Heads of LDP factions will agree with a grand coalition with 
DPJ 
 
Prior to the second meeting on Nov. 2 between Fukuda and Ozawa, the 
atmosphere in the capital hill of Nagatacho was extraordinary. The 
information was dispatched from the religious sect Soka Gakkai, the 
main backer of the New Komeito that the two leaders would agree on 
three issues -- a grand coalition, a medium-size electoral system, 
and a permanent law. The New Komeito and Soka Gakkai were concerned 
that they were unable to see the whole picture of the Fukuda-Ozawa 
talks. 
 
Predicting that Ozawa's grand coalition concept must be aimed at 
eliminating them, the New Komeito and the religious sect appeared to 
have tapped Fukuda's real intention through information warfare. New 
Komeito leader Akihiro Ota, who was informed by Fukuda about a grand 
coalition concept immediately before the Fukuda-Ozawa talks, only 
told Fukuda: "I rely on you." 
 
There remained a sense of alarm toward the closed-door meetings in 
the LDP. 
 
Chief Cabinet Secretary Nobutaka Machimura bustled about since 
morning that day, assuming that Yuji Tsushima and LDP policy chief 
Sadakazu Tanigaki -- heads of LDP factions -- would not easily 
accept a grand coalition concept, which was a complete surprise to 
them. Machimura met in succession with Mori and former Secretary 
General Nakagawa, who are advocates of a grand coalition. Mori told 
Machimura: "All faction heads have told me that they will accept the 
grand coalition idea." 
 
Ozawa misread views in DPJ, Hatoyama suggest obtaining prime 
minister's post as condition for forming a grand coalition 
 
DPJ Secretary General Yukio Hatoyama suggested to Ozawa, who 
returned to party headquarters during a two-hour recess from his 
meeting with Fukuda on Nov. 2, "If you are proposing a grand 
coalition idea, you will have to get the premiership." Should Fukuda 
give the premiership to Ozawa, the Fukuda cabinet would have to 
resign en masse and an election to nominate the prime minister would 
then take place. Knowing fully well that there was no possibility 
that the LDP would accept Ozawa as prime minister, Hatoyama offered 
the suggestion to Ozawa. 
 
Ozawa appeared to have thought that he had received a positive 
response (to the grand coalition concept) from Hatoyama although he 
had suggested a specific condition for forming a grand coalition. 
After the restart of the second meeting, Fukuda asked Ozawa to form 
a coalition government. Ozawa responded, however: "Since this is an 
important issue, I will take it to my party." 
 
Ozawa's political principle is that in order to accomplish an 
important job it is unavoidable to act arbitrarily in a way on one's 
own authority. Party members should abide by the decision made by 
the party heads. 
 
For Ozawa, the heir of the former Takeshita faction, the successor 
to former Tanaka faction, which was known for its iron unity, taking 
 
TOKYO 00005173  006 OF 018 
 
 
the matter to his party meant just receiving a ceremonial approval. 
 
The party executives, whom he had appointed, however, were all 
opposed to the idea of forming a grand coalition government with the 
LDP. He probably could not have believed his own ears, so he 
criticized the DPJ in a press conference on the 2nd, in which he 
announced his intention to resign as president of the DPJ. He then 
said: "The DPJ lacks strength in various areas. It will be difficult 
to win in the next Lower House election." 
 
In a liaison meeting yesterday of the LDP executives, Fukuda, who 
attended it after changing his planned schedule, explained his talks 
with Ozawa: "I had been feeling out the possibility of holding a 
meeting with him since our party was defeated in the July Upper 
House election. It was perfect timing." 
 
The unusual Fukuda-Ozawa talks were realized through the 
intermediation of Watanabe and Mori. There was a sense of 
apprehension about a possible misunderstanding even before the talks 
started. Asked by the press about his view on a grand coalition, 
Fukuda responded in a straightforward manner: "Those who know about 
politics consider it. Those who don't consider it are not 
professional politicians." 
 
(5) Reporters' roundtable on political situation -- Grand coalition 
plan continues to rock political community (Part 1) 
 
NIKKEI (Page 4) (Abridged slightly) 
November 8, 2007 
 
The idea of forming a grand coalition that emerged in talks between 
Prime Minister Yasuo Fukuda (LDP president) and Democratic Party of 
Japan President Ichiro Ozawa turned out to be pie in the sky. 
Visibly disappointed, Ozawa announced his decision to step down as 
party president only to retract it days later, also exposing the 
weakness of the DPJ which is in danger of breaking up. All these 
developments unfolded in less than 10 days. The government and 
ruling camp also seem devoid of a master plan to break the impasse 
in the power-divided Diet. Political reporters discuss below what 
took place behind the grand coalition drama that failed, and how the 
political situation might now develop. 
 
Truth about party-head talks 
 
-- Who set up the party-head talks? 
 
A: It seems that behind-the-scenes coordination started in early 
October immediately after Fukuda became prime minister. In his press 
conference yesterday to announce his decision to stay on, Ozawa 
revealed that "certain persons" had approached him with the idea of 
forming a coalition about two months earlier and that he met persons 
who called themselves Fukuda's "representatives" sometime after 
mid-October. 
 
B: Ozawa did not reveal the names of the "certain persons," but 
those persons might be Yomiuri Shimbun Holdings Chairman Tsuneo 
Watanabe and former Prime Minister Yasuhiro Nakasone. The 
"representatives" were probably former Prime Minister Yoshiro Mori 
and former Secretary General Hidenao Nakagawa. 
 
C: In early August, immediately after the DPJ won big in the (July) 
House of Councillors election, Ozawa was asked by DPJ midlevel 
 
TOKYO 00005173  007 OF 018 
 
 
members about the possibility of forming a grand coalition. In 
response, he said, "Although it would be a different story if the 
LDP proposed such an option, we will not bring that up from our 
side." He seems to have had that option in mind from the beginning. 
 
D: A ruling party executive noted, "Ozawa asked, 'Please make it 
seem as if the idea came from your side.'" Ozawa unusually 
criticized the media, saying that what they had reported was 
groundless. According to Fukuda, it was a matter of the right 
timing. 
 
-- What did they agree on at the party-head talks? 
 
B: It is certain that Fukuda broached "talks on a coalition." He 
seems to have had an image of forming a coalition in the form of 
off-cabinet partnership and the DPJ producing some cabinet ministers 
after conducting policy-by-policy talks. 
 
F: Speculation circulated that Fukuda offered specific cabinet 
posts, such as deputy prime minister to Ozawa; health, labor, and 
welfare minister to Naoto Kan; and land, infrastructure, and 
transport minister to Kenji Yamaoka. Fukuda denied such speculation, 
however. 
 
C: About a permanent law governing the overseas dispatch of the SDF, 
they agreed on limiting dispatch to activities established on or 
authorized by UN resolutions. If (Fukuda) had accepted the Ozawa 
argument as is, it would have been a major shift in security policy, 
but the government simply took it as being allowed to establish 
special measures laws for those activities not based on UN 
resolutions. 
 
-- What were the parties' reactions? 
 
A: The LDP was positive to some extent about forming a coalition. In 
an executive meeting immediately after the Fukuda-Ozawa meeting on 
Nov. 2, Secretary General Bunmei Ibuki said, "It's vital to 
determine who should be cabinet ministers." 
 
-- What were they going to do with coordination of electoral 
districts? 
 
B: There was a rumor at one point that they would agree on reviving 
the multiple-seat constituency system. In reality, talks did not 
seem to get that far. 
 
D: That would be good for constraining the New Komeito alone, but 
the single-seat system is widely accepted. Many would say, "Why 
now?" 
 
C: Ozawa was the one who spearheaded the drive to introduce the 
single-seat system during the political realignment of the 1990s. If 
they had accepted the revival of the multiple-seat, what has the 
current system been all about? 
 
-- What is the truth about Ozawa's resignation fiasco? 
 
F: I hear that Fukuda looked really surprised when the DPJ rejected 
the coalition plan. I also hear that Fukuda complained, "I thought 
it was 90 PERCENT  certain because Mr. Ozawa took it back to the 
party, saying, 'I will nail it down.'" 
 
 
TOKYO 00005173  008 OF 018 
 
 
E: Ahead of Ozawa's Nov. 4 resignation press conference, Yamaoka and 
others, greatly upset, made Ozawa add the phrase, "I will leave my 
future course to the party." 
 
D: The observation on the morning of Nov. 5 was that dissuasion was 
only for form's sake. Deputy President Kan and Secretary General 
Hatoyama, who might have been held jointly responsible, desperately 
worked to dissuade Ozawa from stepping down. 
 
C: At the press conference yesterday, Ozawa explained the past 
developments in detail, while insisting that he had not set up the 
party-head talks. As far as I can recall, Ozawa has never revealed 
what had happened behind the scenes to that extent. Now that his 
base in the party has weakened because of the series of 
developments, I think there is no other option but to take a modest 
attitude toward Ozawa. 
 
A: It was profound that Ozawa called Tsutomu Hata, Kozo Watanabe, 
and Hajime Ishii, who bolted the LDP with him, to the hotel he was 
staying at on Nov. 6, the day he made up his mind to retract the 
resignation. He probably felt a sense of security that he could 
really "communicate" with them in the end. 
 
(6) Reporters' roundtable on political situation -- Grand coalition 
plan continues to rock political community (Part 2) 
 
NIKKEI (Page 4) (Abridged slightly) 
November 8, 2007 
 
Gains and losses 
 
-- What did the DPJ gain or lose from this? 
 
A: Ozawa said at the Nov. 4 press conference: "The DPJ lacks 
competence. Wining the next House of Representatives election will 
be very difficult. Executives' rejection of the coalition plan is 
tantamount to a no-confidence vote against me." Those worlds are 
likely to have a lasting effect. 
 
B: The biggest reason for persuading Ozawa to stay on as party 
president was fear in the party that he might leave the party with 
other Upper House members and form a coalition with the LDP. If 17 
Upper House DPJ members moved to the LDP, the positions between the 
ruling and opposition camps would be reversed. 
 
E: A mysterious list of 22 Upper House members who reportedly would 
follow Ozawa was circulated. A former LDP member, who was regarded 
as most likely to follow Ozawa, declared at a Diet term-based 
meeting on Nov. 5 that he would absolutely not leave the party and 
won applause. 
 
F: A group of DPJ members, such as Yoshito Sengoku and Yukio Edano, 
who were keeping their distance from Ozawa, produced a list of those 
who were likely to follow Ozawa in the event he broke up with the 
party. Their conclusion was that no more than 13-14 would follow 
Ozawa. 
 
C: I think Ozawa retracted his resignation because hardly anyone 
said to act together with him. 
 
-- The party's image has been damaged. 
 
 
TOKYO 00005173  009 OF 018 
 
 
F: Deputy President Katsuya Okada, a possible successor to Ozawa, 
did not make any high-profile moves. A member close to Okada 
explained that he did not want to set a foot in the minefield twice 
in a row. 
 
A: The case has hurt Hatoyama's reputation, as well. In the Nov. 6 
term-based meeting, he was criticized for not being able to 
communicate with President Ozawa. 
 
-- What about effects on the LDP? 
 
D: An LDP member who returned to his home constituency last weekend 
said that a grand coalition was criticized as an illicit union. 
 
B: At the same time, some are hopeful that a decline in support for 
the DPJ would provide a golden opportunity to railroad a new 
refueling bill and other legislation through the Diet. 
 
C: Fukuda's gain or loss is not known yet. The Fukuda cabinet is 
largely regarded as a caretaker cabinet unable to display strong 
leadership, and that helped party members to rally around him to 
some extent. If he succeeds in performing stunts like a grand 
coalition, Fukuda's grip on the party would increase. 
 
D: Taro Aso, who is aiming to become the next leader by keeping 
himself at arm's length with Fukuda, must be anxious at heart. 
Election Committee Chairman Makoto Koga and Policy Research Council 
Chairman Sadakazu Tanigaki also failed to exhibit leadership. 
 
-- What about the New Komeito? 
 
B: Some complained that Representative Akihiro Ota should send out 
more messages. In the Soka Gakkai, there is substantial distrust of 
Akihiro Ota, Kazuo Kitagawa, and others. One said: "I wanted them to 
show their mettle strong enough to call for a revival of the 
multiple-seat constituency system by taking advantage of the grand 
coalition plan." 
 
D: There is an observation that the DPJ will not be able to submit a 
censure motion against the prime minister. A positive view has also 
emerged about readopting the new refueling bill in the Lower House 
if it was voted down in the Upper House. 
 
-- (The grand coalition plan) has caused cracks in the united front 
of opposition parties. 
 
F: The People's New Party, which forms a joint parliamentary group 
in the Upper House, is angry, Deputy President Shizuka Kamei saying, 
"We did not receive any notice from the DPJ in advance." 
 
(7) My viewpoint by Hiroshi Nakanishi: Explore common ground through 
policy talks 
 
ASAHI (Page 17) (Full) 
November 8, 2007 
 
Hiroshi Nakanishi, professor of international politics at Kyoto 
University. 
 
Ozawa's recent behavior came about unexpectedly. He turned around 
his party's confrontational line on his own judgment and, without 
signaling any message to the members of his own party and to the 
 
TOKYO 00005173  010 OF 018 
 
 
public, aimed at creating a grand coalition with the ruling bloc. 
When he found that his about-face was not accepted by the party, he 
offered his resignation as president. But persuaded by party 
executives to stay at the helm, he then retracted his intention to 
resign. I have no idea how far Ozawa had calculated when he aimed at 
a grand coalition, but it is safe to say that he perplexed voters 
and those around him. 
 
His arbitrary decision made at a dizzying pace may be attributable 
primarily to his personality. But given the current situation in the 
Diet, where the ruling bloc holds a majority in the Lower House 
while the opposition bloc controls the Upper House, it would have 
been an unavoidable choice for the ruling Liberal Democratic Party 
(LDP) and the major opposition Democratic Party of Japan (DPJ), 
whoever leads the party, to have policy talks. 
 
There are differences in methods, whether to promote a grand 
coalition scheme or to hold policy talks, and at what timing the 
party heads meet, but lawmakers appear to be sharing the feeling 
that nothing will be decided if the LDP and the DPJ fail to reach 
some kind of agreement. That's why Prime Minister Fukuda and Ozawa 
decided to hold a meeting, anticipating they shared similar 
feelings. The reason why the two held such a meeting at this point 
in time was probably because Fukuda's first trip to the United 
States as a prime minister in mid-November was approaching and also 
because the Antiterrorism Special Measures Law, the legal basis for 
the Maritime Self-Defense Force's (MSDF) refueling mission in the 
Indian Ocean, expired on Nov. 1. 
 
Fukuda may have a strong desire to improve relations with the US, 
which receded in the latter days of the Abe administration. The US 
has repeatedly signaled a message calling for Japan to continue the 
refueling service. During his planned visit to the US, Fukuda is 
supposed to announce as a "souvenir" either the MSDF's continuation 
of the refueling mission or new operations to back the US. 
 
However, Ozawa remained adamant in his view that "the Self-Defense 
Forces (SDF) should be in principle dispatched abroad in accordance 
with a United Nations resolution, so I can't agree to continue the 
refueling mission." Given this stance, bold action would seem 
necessary to break the deadlock. Meanwhile, Ozawa would have taken 
this situation as good timing to sell the grand coalition idea. 
 
In the party heads meeting, both Fukuda and Ozawa reportedly 
exchanged views on a permanent law stipulating a framework for the 
SDF to be dispatched abroad. How Japan will be engaged in 
international security in the future is a matter of stronger 
interest for other countries than the Japanese public think.  For 
instance, in January of this year, former Prime Minister Abe 
announced he would consider making a human contribution to the 
Provincial Reconstruction Team (PRT) in Afghanistan. The North 
Atlantic Treaty Organization (NATO) and countries involved, 
including Canada, remember Abe's statement and have been paying 
close attention to Japan's moves. 
 
Some DPJ members favor allowing Japan to take part in a PRT. 
Participation in a PRT could become a choice for Japan to make in 
replace of the refueling mission, depending on how the international 
community will take Japan's participation in the PRT. Japan should 
have to avoid a case of losing its international reputation by 
failing to participate in the reconstruction of Afghanistan as a 
result of the continuing head-on confrontation between the LDP and 
 
TOKYO 00005173  011 OF 018 
 
 
the DPJ. Japan should continue activities both (the LDP and the DPJ) 
can agree on and also continue efforts to broaden the sphere of 
those activities. 
 
The important matter is for both sides to find common ground in 
dealing with domestic problems. If social welfare and economic 
policies, for instance, were stalled as a result of both sides, 
namely, the government/ruling bloc and the DPJ, being adamant in 
their respective positions, public outrage would be provoked sooner 
or later. Given the current state of the Diet, where the ruling 
parties control the Lower House and opposition bloc rules the Upper 
House, if the imbalance is not resolved for a while, it is unwise 
for the LDP and the DPJ to confront each other in vain. 
 
One realistic path for both the LDP and the DPJ to follow is that by 
taking advantage of the recent party heads meeting, they could have 
policy talks covering diverse areas for the time being in order to 
keep enhance the living conditions of the country, and look for a 
timing for the Lower House to be dissolved after the 2008 budget 
bill and budget-related bills are all adopted. The results of an 
immediate election will have persuasiveness to a certain extent, so, 
whatever results may come out, I think it will become much easier 
than now to manage the Diet (after the Lower House election). 
 
(8) Editorial: Five requests to DPJ with Ozawa to stay on as 
president 
 
ASAHI (Page 3) (Full) 
November 8, 2007 
 
The major opposition Democratic Party of Japan's (DPJ) President 
Ozawa declared his decision to stay on as president. He rejected an 
idea of forming a grand coalition with the ruling Liberal Democratic 
Party (LDP) and noted he would make all-out efforts to win the next 
Lower House election. 
 
The DPJ had been sitting on a shaky foundation since its President 
Ozawa recently met with Prime Minister Fukuda. Given that a grand 
coalition scheme presented by Ozawa to the party members was totally 
rejected by the party, prompting Ozawa to announce his intention to 
resign as party chief, the logical course for the DPJ to follow 
would have been to elect a new president and make a fresh start. 
 
However, the DPJ by consensus dissuaded Ozawa to remain in the post. 
This move greatly disappointed those voters who until then had been 
supportive of the party. We now make five requests to the DPJ, which 
chose to make a fresh start under the current leadership lineup, as 
well as to its President Ozawa. 
 
Arbitrary decision not allowed 
 
There was a scent of factional politics from Ozawa's recent rash 
behavior, similar to that seen in the old LDP. Ozawa might have 
thought that once the head of the party made a decision, the party 
would follow it whether it was right or wrong. 
 
This technique, however, is not acceptable even in the LDP at 
present, nor is it supposed to be acceptable in the DPJ, either, 
which attaches importance to reaching consensus through open debate. 
It is one political technique for the party to follow its 
president's decision, so, we do not necessarily reject it, but it is 
never acceptable for the top leader of the party to act arbitrarily 
 
TOKYO 00005173  012 OF 018 
 
 
on his own authority. 
 
More open debate necessary in DPJ 
 
Whether to form a grand coalition with the LDP is a very important 
question, so it is never allowable for the party head to answer the 
question on his own judgment. In this regard, DPJ Deputy President 
Naoto Kan and its Secretary General Yukio Hatoyama are both to be 
blamed, as well. 
 
The DPJ's landslide victory in this summer's Upper House election 
enhanced Ozawa's authority over the party. This was not a bad thing, 
but one ill effect of that was that the party came to rely on Ozawa 
for everything and was lacking in internal debate and 
communications. 
 
One episode in this connection was when Ozawa contributed his 
personal views on Japan's refueling mission in the Indian Ocean to a 
magazine, thereby puzzling the party. The party needs to have more 
occasions for open debate. To this end, one idea may be to hold a 
presidential election after the current Diet session closes. 
 
Need to improve policy-planning ability instead of forming a grand 
coalition 
 
As the reason why he sided with the grand coalition idea, Ozawa 
cited the lack of the DPJ's ability to hold the reins of government. 
That may be true. In fact, since Ozawa took office as party 
president, the DPJ has conspicuously come out with unrealistic 
policies, like the one to finance the basic pension by taxes but 
without hiking the consumption tax. 
 
What is necessary for the DPJ would be for it to improve its 
policy-planning capability as well as its ability to hold the reins 
of government. 
 
Quick action desired 
 
We have been dissatisfied with the DPJ's words and actions after the 
Upper House election. The party has become slow to act when it comes 
to the issues of strong interest to the public, for instance, the 
"politics-and-money" problem and the creation of a counterproposal 
to the government's new refueling bill. 
 
The DPJ needs to better use its current position in the Upper House, 
which is now under the opposition bloc's control, and move politics 
forward.  By using its leadership in the Upper House, the DPJ must 
take the lead in giving a new image of the Diet to the public. 
 
Be positive about participating in individual policy talks with 
ruling bloc 
 
The DPJ should be positive about holding talks with the ruling 
parties on individual policies. Regarding policies on which the DPJ 
and the ruling parties are wide apart, the DPJ should be flexible 
and compromise in order to put policies into action. Meanwhile, when 
it comes to subjects to which the DPJ cannot yield, the party should 
come up with a counterproposal. 
 
The DPJ can revitalize itself if it is able to do politics flexibly 
at one point and snappily at another. 
 
 
TOKYO 00005173  013 OF 018 
 
 
(9) Prosecutors to raid former Yamada Corp. executive Miyazaki 
possibly this afternoon on charge of embezzling 100 million yen from 
the company 
 
YOMIURI (Top play) (Lead paragraph) 
November 8, 2007 
 
Increasing the suspicion that the aviation and defense trading house 
Yamada Corporation's (in Tokyo) former Senior Managing Director 
Motonobu Miyazaki (69) and the former president (70) of Yamada 
Corporation's local company in the United States had embezzled at 
least 100 million yen from the local company's funds, the Tokyo 
District Public Prosecutors Office's task force decided to raid 
Miyazaki possibly this afternoon on charge of job-related 
embezzlement. Investigators have called on the former president now 
staying in the US to return home. The task force will also 
investigate former Vice Defense Minister Takemasa Moriya (63), whom 
Miyazaki frequently entertained to golf courses, as to whether 
Miyazaki received special treatment over the receipt of order for 
defense equipment and whether there was a collusive relationship 
between Miyazaki and Moriya. 
 
(10) Yamada Corp., listed as GE's agent in handouts distributed in 
meeting to select contractor for CX deal, contradicting Moriya's 
Diet testimony 
 
YOMIURI (Page 39) (Full) 
November 8, 2007 
 
The Defense Ministry decided in a meeting of the Defense Ministry's 
equipment screening committee in August 2003 to select General 
Electric Co. (GE) of the United States as engine supplier for the CX 
next-generation transport aircraft. It has been revealed through an 
internal investigation by the ministry that Yamada Corp., a trading 
firm specializing aircraft and defense equipment in Tokyo, was 
listed as GE's agent in handouts distributed at the selection 
meeting. Testifying on Oct. 29 as a sworn witness before the House 
of Representatives' special antiterrorism committee that was looking 
his cozy ties with the company, former Vice Defense Minister 
Takemasa Moriya said: "I did not know Yamada Corp. would act as GE's 
sales agency." It is now suspected that Moriya perjured himself in 
his testimony. 
 
In the selection meeting, committee members picked the engine made 
by GE after a comparative study of the products of three companies. 
The meeting was chaired by Vice Defense Minister Moriya and joined 
by the ministry's Technical Research and Development Institute head, 
the Ground, Air, and Maritime Self-Defense Force chiefs of staff, 
and others. 
 
According to ministry officials concerned, more than a dozen pages 
of handouts describing the performance of the three engines and 
containing engine photos were distributed in the meeting. The 
handouts were collected after the meeting. The names of trading 
firms that would act as the three firms' agents were also listed. 
GE's agent was printed as Yamada Corp. All the three engines were 
qualified in terms of performance, but the product of GE was 
selected in view of its price and other factors. 
 
Asked in the Lower House meeting whether he had known in the 
selection meeting that Yamada Corp. was GE's agent, Moriya 
replied: "I did not know." Several participants voiced doubts about 
 
TOKYO 00005173  014 OF 018 
 
 
the credibility of Moriya's testimony, one saying: "I knew that 
Yamada Corp. was designated GE's agent. It is unconceivable that 
Moriya didn't know." 
 
(11) Defense Ministry's mid-ranking official joined travel arranged 
by defense contractor, suspected of violating SDF ethical code 
 
YOMIURI (Page 39) (Full) 
November 8, 2007 
 
It has been found that a mid-ranking official at the level of an 
assistant section chief in the Defense Ministry's Equipment 
Procurement and Construction Office had joined a trip to China in 
September of last year arranged by Yamato Plastic Optical Co., a 
medical-equipment maker based in Tokyo that has supplied its 
products to the National Defense Medical College. The official and 
the company admitted what was revealed was true, but they said: "The 
official paid his own travel expenses." The Self-Defense Force code 
of ethics, however, prohibits defense officials from traveling with 
interested parties, including contractors, no matter whether their 
travel expenses are paid by those parties or not. 
 
According to explanations by the defense official in question and 
Yamato Plastic Optical, the official belonged to the general affairs 
section of the college for about five years until 1995. Since his 
mother and the company president hail from the same district, the 
official developed a friendship with the president. The company 
arranged a four-day and three-night trip to Beijing from Sept. 15 of 
last year to commemorate the 40th anniversary of the establishment 
of the company. About 1,000 employees and others took part in the 
tour, and more than 10 members of the Finance and Equipment Bureau 
of the then Defense Agency, including the official, accompanied 
them. This official also was named in Diet testimony in October as 
involved in a scandal of padded bills by Yamada Corp., a trading 
firm specializing in aircraft and defense equipment. 
 
This official said: "When I was working for the National Defense 
Medical College, I was not in charge of making contracts with 
Yamato. I have no perception that my deed infringed on the ethical 
code." An executive of Yamato also said: "They (the officer and the 
president) are friends, so there is no problem with his having 
joined the trip." 
 
(12) Editorial: Futenma issue must make headway 
 
YOMIURI (Page 3) (Full) 
November 8, 2007 
 
The government has now resumed consultations with Okinawa Prefecture 
and its municipalities over the pending issue of relocating the US 
Marine Corps' Futenma Air Station. This time around, they need to 
make steady progress. 
 
The government held a meeting of its consultative body with Okinawa 
Prefecture and its base-hosting localities for the first time in 
about 10 months. Tokyo and Okinawa have so far squared off over 
Futenma relocation and related issues, such as the government's 
entry into procedures to assess the potential impact of an 
alternative facility for Futenma airfield on the nearby environment. 
However, they are finally in a mood for talks. 
 
In 1996, Japan and the United States reached an intergovernmental 
 
TOKYO 00005173  015 OF 018 
 
 
agreement to relocate Futenma airfield. After that, the issue of 
Futenma relocation strayed off course. As a consequence, the 
government called off its initial plan to relocate the heliport 
functions of Futenma airfield to a sea-based site in waters off 
Henoko Point in the island prefecture's northern coastal city of 
Nago. The folly of repeating the "lost decade" is not acceptable. 
The government should ensure local consent at an early date to its 
plan to lay down a V-shaped pair of airstrips in a coastal area of 
Camp Schwab. 
 
The Futenma issue is a key to the realignment of US Forces in Japan, 
a challenge to mitigate Okinawa's base-hosting burden while 
maintaining the US military's deterrent capabilities. Futenma 
relocation is timetabled to be completed in 2014. The government 
must carry it out without fail, or Japan will not be seen as a 
reliable ally. 
 
In yesterday's consultative meeting, Okinawa asked the government to 
move the site of a newly planned facility to an offshore area, 
citing noise and other impacts on the local quality of life as 
reasons. The government stressed that it would be difficult to 
revise the plan, taking the position that its plan is the best one. 
 
The alternative facility, if moved to an offshore area, could 
amplify its impact on the marine environment. It could also face 
stronger opposition from environmentalist groups. Local residents 
living in the vicinity of the alternative facility's construction 
site will be most affected by noise. Among them, there are also some 
people saying there is no need to revise the plan. 
 
The US government will not accept any revisions to the plan. 
Accepting revisions, even in part, could result in opening a 
Pandora's Box. The US military would then come up with a number of 
requests for revisions to the plan, such as extending the runways. 
In that case, the government says things will get out of hand. 
 
The realignment of US forces in Okinawa is based on an integrated 
plan along with the relocation of Futenma airfield. Considering 
this, it is certain that a delay in Futenma relocation will have 
consequences for the relocation of 8,000 US Marines from Okinawa to 
Guam and also for the reversion of six US military facilities in the 
central and southern parts of Okinawa Prefecture. 
 
The government plan is for Okinawa Prefecture to mitigate its 
base-hosting burden. This landmark plan must not become pie in the 
sky, so we hope Okinawa Prefecture will no longer persist in its 
call for revising the government plan. We think Okinawa Prefecture 
should make a decision from the broader perspective. 
 
The government's consultative body with Okinawa Prefecture used to 
be co-chaired by the defense minister and the minister of state for 
Okinawa. This Futenma panel has now been raised in status, with the 
chief cabinet secretary presiding. In the past, former Defense 
Minister Fumio Kyuma was swayed by Okinawa's call for revisions to 
the government plan. As seen from this fact, the government was out 
of step. The government should now hold talks with Okinawa 
Prefecture and its base-hosting localities under the prime 
minister's initiative. 
 
Futenma relocation is now in the doldrums. Meanwhile, the government 
has earmarked 10 billion yen in its incentive budget for fiscal 2007 
to develop Okinawa Prefecture's northern districts. However, its 
 
TOKYO 00005173  016 OF 018 
 
 
execution has been frozen. In May, the Diet enacted a law for 
special measures to promote the realignment of US Forces in Japan. 
The government designated base-hosting municipalities to be 
subsidized under the law. However, the government decided not to 
subsidize Nago and some other municipalities. 
 
There was a backlash from the heads of base-hosting municipalities 
in Okinawa Prefecture. However, it is unreasonable to continue such 
incentives for them pending their cooperation on base issues. Also, 
the government would not be able to get public understanding amid 
its dire fiscal straits. 
 
(13) Voluntary global warming gas emissions cut action program: 
Differences in goals set by industrial circles; Only seven 
industries set goals at level higher than track records; 18 million 
tons of additional emissions cuts per year reported 
 
ASAHI SHIMBUN (Page 10) (Slightly abridged) 
November 6, 2007 
 
A joint council of the Ministry of Economy, Trade and Industry 
(METI) and the Environment Ministry on Nov. 5 probed into how 
industrial circles are addressing their voluntary action programs 
aimed at cutting global warming gas emissions, such as whether they 
have raised their reduction goals. METI released an estimate that 
raising reduction goals, combined with changes made to the programs, 
would cut approximately 18 million tons of global warming gases a 
year. This is equivalent to 50 PERCENT -90 PERCENT  of the 
additional reduction goal of 20-34 million tons the government has 
to attain in order to achieve the goal set under the Kyoto Protocol. 
Differences in efforts by various industries are visible. 
 
The results of examining the programs set by 39 industries under 
METI's jurisdiction were released on Nov. 5. With the Japan Mining 
Industry Association raising its goal, 18 industries have achieved 
approximately 15.7 million tons of additional cuts. The amount, 
combined with approximately 2.8 million tons to be achieved as a 
result of eight industries having raised their goals last year, is 
equivalent to about 1.5 PERCENT  of the 6 PERCENT  cut Japan 
pledged, based on the Kyoto Protocol. 
 
However, though 25 industries attained their original goals, seven 
of them, including the Japan Construction Equipment Manufacturers 
Association, left their goals unchanged. Even among the 18 
industries that raised their goals, only seven industries, such as 
the Japan Paper Association, adopted goals that were stricter than 
their track records. Eleven industries, such as the Petroleum 
Association of Japan, set new goals below their fiscal 2006 levels. 
 
Though goals were achieved based on energy consumption and CO2 
emissions per set amounts of economic activity, actual emissions by 
eight industries increased from the 1990 level. 
 
One member of the council during the meeting pointed out, "A certain 
amount of praise can be given to industrial circles, but the 11 
industries that set new goals at a level below their track records 
should raise their goals." 
 
(14) Articles of faith in Japan's technology collapses due to 
collapse of bridge under construction in ODA project in Vietnam: 
Voices skeptical of tied aid growing; No government and corporate 
officials pay visit victims at hospitals 
 
TOKYO 00005173  017 OF 018 
 
 
 
ASAHI (Page 8) (Excerpts) 
November 8, 2007 
 
The collapse of a bridge under construction by a leading Japanese 
general construction contractor occurred in southern Vietnam turned 
out to be the worst disaster in the history of the Japanese 
government's official development assistance (ODA), with casualties 
exceeding 130. The work was being undertaken as tied aid with a 
Japanese side taking the initiative from the planning phase and 
contractors limited to Japanese companies on the pretext that 
Japan's high technical power should be used. The accident has 
damaged the Japan brand of ODA. Voices questioning the way ODA 
projects are being implemented are growing louder. 
 
The accident took place in My Hoa, a village located in Mekong 
Delta, 150 kilometers southwest of Ho Chi Minh City.  Following the 
major accident, which left 54 people dead and 80 people injured, Bao 
Thanh Nien, a Vietnamese daily, criticized that it was a mistake to 
have left both construction and supervision to companies of the 
donor nation (Japan). 
 
This project was tied aid, in which contracts are awarded only to 
Japanese companies. The interest rate of the loan extended for tied 
aid is 0.95 PERCENT  a year, which is lower than rates applied to 
ODA projects in general. 
 
Facing criticism from European countries and the US, the government 
reduced the number of projects categorized under tied aid. As a 
result, the number of contracts awarded to Japanese companies 
sharply dropped. Business circles opposed the move. The government 
then restored tied aid in some areas on the pretext that Japan's 
highly advanced technology should be made use of. 
 
An interim report on this project was issued by an outside party, 
consigned by the Japan Bank for International Cooperation (JBIC). It 
noted that since the high quality and appropriate control of the 
construction process by Japanese companies deserve high praise, good 
results can be obtained, though the price of the project is costly. 
Nevertheless, the accident occurred. Resident staff members of 
Japanese companies operating in Vietnam are dismayed at the 
accident, noting that the project was financed with tax money, and 
yet, the companies in charge of it damaged the image of Japanese 
brands that other industries have cultivated. 
 
On Oct. 26, a month after the accident Taisei Corporation, a company 
that was in charge of the construction, decided to demote two 
executives responsible for the project and have all executives 
return part of their salaries. However, some are skeptical about 
whether the company would have taken such light disciplinary actions 
if the accident had occurred in Japan. 
 
The cause of the accident is reportedly attributable to the collapse 
of columns supporting the bridge girders. It was revealed through an 
investigation by the Vietnamese national investigative committee 
(NIC) that a consulting company pointed out the need to reinforce 
the supporting columns and the presence of that memo was confirmed. 
However, the general construction contractor refused to give an 
explanation, noting that the NIC has requested it not say anything. 
Local papers remain dissatisfied. 
 
The Vietnamese government is outwardly showing a stance of giving 
 
TOKYO 00005173  018 OF 018 
 
 
consideration to the Japanese side with Vietnamese President Nguyen 
Minh Triet saying, "The Japanese government and companies are 
positively cooperating for efforts to determine the cause of the 
accident." Behind this stance is the fact that the nation receives 
52 PERCENT  of bilateral aid from Japan (in 2004). However, with 
some pointing out the possibility of Prime Minister Dung losing 
face, the accident will likely affect Japan-Vietnam relations in a 
delicate manner. 
 
Vietnam is the third largest recipient of Japan's aid, following 
India and Indonesia. Voices calling for proving into the way ODA 
projects have been carried out, such as the propriety of extending 
tied aid and measures to deal with accidents, learning lessons from 
the accident, are being heard in political circles as well. Lower 
House member Koichi Yamauchi of the LDP said, "The Foreign Ministry 
(MOFA) should dispatch its own inspection team and compile a manual 
to handle accidents that occur in ODA projects. There are matters to 
attend to, such as offering an apology to individual members of the 
families of the victims. MOFA lacks a sense of crisis." 
 
SCHIEFFER