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UNCLAS SECTION 01 OF 09 TOKYO 005240 
 
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 11/15/07 
 
 
Index: 
 
Prime Minister Fukuda off to US today: 
1) Prime Minister Fukuda, leaving for Washington today, has a cold, 
worries aides (Asahi) 
2) Prime Minister Fukuda to stay in US for 26 hours (Yomiuri) 
 
Agenda for Bush-Fukuda talks: 
3) Prime Minister Fukuda to tell President Bush tomorrow that Japan 
is opposed to delisting North Korea as terror sponsor (Sankei) 
4) Prime Minister Fukuda to reaffirm rocksolid alliance with 
President Bush (Mainichi) 
5) Japan to ask US for cooperation on post-Kyoto scheme to deal with 
global warming (Sankei) 
 
North Korea, China issues: 
6) State Dept. denies links between North Korea delisting, 
abductions (Sankei) 
7) Upper chamber OKs extending North Korea sanctions (Asahi) 
8) Japan, China may hold foreign ministerial late this month over 
East China Sea gas exploitation (Sankei) 
 
Diet affairs: 
9) Opposition-controlled upper chamber to fast-track Iraq pullout 
bill, backburner MSDF refueling bill (Asahi) 
10) Ruling, opposition parties get nowhere on new antiterror 
legislation (Yomiuri) 
11) DPJ limits SDF Afghan role to civilian assistance only (Tokyo 
Shimbun) 
 
Fallout from MOD scandals: 
12) Ex-Yamada Corp. exec balked investigation into bill-padding 
(Tokyo Shimbun) 
13) Ex-MOD Vice Minister Moriya to be summoned to Diet today again 
as sworn witness (Tokyo Shimbun) 
14) Yamada Corp. raised slush funds for PKO procurement, sent money 
from Israel to US (Asahi) 
 
Defense & security issues: 
15) MSDF squadron to return home from Indian Ocean on Nov. 23 (Tokyo 
Shimbun) 
16) USFJ workers poised to go on strike against GOJ-planned wage 
cuts (Sankei) 
 
Articles: 
 
1) Prime Minister Fukuda's cold getting aides into fuss prior to 
visit to US 
 
ASAHI (Page 4) (Full) 
November 15, 2007 
 
Prime Minister Yasuo Fukuda has been ill with a cold this week. He 
delivered speeches in meetings with an inaudible voice. He said: 
"Since I haven't a fever, I will be getting better soon." Prior to 
his first official trip to the United State as prime minister, 
Fukuda's aides are concerned. 
 
"I can't speak," Fukuda said yesterday in a meeting of the governors 
across the nation. He then cracked a joke, "I usually speak with a 
nice voice." Participants were unable to hear some of his speech. 
 
 
TOKYO 00005240  002 OF 009 
 
 
On Nov. 12 in a Diet session, Fukuda responded to questions while 
sniffling. He put off a planned interview on the 13th with foreign 
correspondents. He returned to his residence after wrapping up a 
meeting after only 15 minutes. Fukuda reportedly told his aides, "I 
won't be able to carry out the summit (with the US president) as is. 
I will clear up my cold before leaving for the US." 
 
2) Prime Minister Fukuda to stay only 26 hours in Washington -- 
first official overseas trip after taking office 
 
YOMIURI (Page 4) (Full) 
November 15, 2007 
 
A schedule for Prime Minister Yasuo Fukuda's first official overseas 
travel to the United State and Singapore has now been set. In 
Singapore, Fukuda will hold talks with his Chinese counterpart and 
the South Korean president. 
 
Fukuda is going to leave Japan this afternoon and hold his first 
summit with US President George W. Bush on the morning of Nov. 16. 
The two top leaders will then hold a joint press conference. After 
offering flowers at Arlington National Cemetery, he will hold an 
informal discussion with American experts. He is expected to leave 
Washington on the afternoon of the 16th and return home on the 
afternoon of the 17th. 
 
Fukuda plans to leave for Singapore on the afternoon of the 19th and 
attend the summit of the Association of Southeast Asian Nations, 
Japan, China and South Korea (ASEAN and Plus 3). He is expected to 
hold his summit with the South Korean president. He will attend an 
East Asia summit on the 21st. He will return home on the morning of 
the 22nd after meeting Japanese and foreign correspondents in 
Singapore. 
 
The prime minister initially planned to fly to Singapore from the 
United States, but he has decided to return home due to the Diet 
schedule. Therefore, he will stay in Washington only 26 hours. 
 
3) Prime minister to express opposition to US delisting plan in 
meeting with President Bush 
 
SANKEI (Page 3) (Full) 
November 15, 2007 
 
The United States is now considering the possibility of delisting 
North Korea as a state sponsor of terrorism. Prime Minister Yasuo 
Fukuda decided yesterday to express his opposition to this possible 
plan during a meeting with President Bush scheduled for Nov. 16 in 
Washington. 
 
In the summit, Fukuda intends to refer to the fact there has been no 
progress on the issue of Japanese nationals abducted by North Korea 
and ask the US government to put off its delisting plan, saying: "If 
the US removes the North from the list despite no progress made on 
the abduction issue, there may be a serious impact on the Japanese 
people's feelings and Japan-US relations." 
 
Asked by reporters at his official residence last evening for his 
comment on State Department spokesman Casey's remarks, Prime 
Minister Fukuda replied: "When considering the importance of 
Japan-US relations, we cannot take this one portion (of Casey's 
remarks) as encompassing the US government's view. The US also 
 
TOKYO 00005240  003 OF 009 
 
 
should hand down a comprehensive judgment." He raised questions 
about the idea of dealing with the process of removing the North 
from the blacklist separately from the abduction issue. 
 
4) Prime Minister Fukuda to leave for US today: Japan-US summit 
tomorrow; Strength of bilateral alliance to be reconfirmed 
 
MAINICHI (Page 2) (Full) 
November 15, 2007 
 
Prime Minister Yasuo Fukuda will leave for the US today and meet 
with President Bush tomorrow (local time). This will be his first 
foreign trip since taking office as prime minister. The prime 
minister during the upcoming talks with Bush will clarify his 
administration's diplomatic stance, by playing up synergy of 
strengthening the Japan-US alliance and promoting Asia diplomacy. 
 
He will also explain a situation in which the new antiterror special 
measures bill cleared the Lower House. He will express his 
determination to do his utmost with the possibility of approving the 
bill again in the Lower House, even if it is rejected in the Upper 
House. 
 
There is a growing possibility of the US taking off North Korea from 
its list of state sponsors of terrorism within the year. In this 
connection, Fukuda will work on Bush to set a settlement of the 
abduction issue as a precondition. He intends to call for a cautious 
response from the US side in the belief that if it removes North 
Korea from its blacklist without progress on the abduction issue, it 
could have a negative impact on bilateral relations. 
 
5) Post-Kyoto Protocol: Prime minister to seek cooperation from US 
at bilateral summit; Will propose new working group plan 
 
SANKEI (Page 8) (Excerpts) 
November 15, 2007 
 
The government yesterday revealed a plan for Prime Minister Yasuo 
Fukuda during his meeting with President Bush, which is to take 
place on Nov. 16, to bring up the global warming issue and seek 
cooperation for a proposal for creating a framework after the Kyoto 
Protocol expires in 2013. He intends to obtain US support for 
Japan's proposal for establishing a working group responsible for 
negotiations, instead of just dialogue, within the UN framework. 
 
Japan's aim is to take the lead in discussions on setting up a new 
working group involving the US prior to the 13th session of the 
Conference of the Parties to United Nations Framework Convention on 
Climate Change (COP13) to be held on Bali, Indonesia, in early 
December. 
 
Unless global warming prevention negotiations involve the US, which 
opted out of the Kyoto Protocol, and China and India, which have no 
obligation to cut greenhouse gas emissions, it would be impossible 
to produce global-scale results. As such, Japan has readied a 
proposal that it is necessary to set up a working group joined by 
major emitters. Environment Minister Ichiro Kamoshita at a 
ministerial-level preparatory meeting for the COP13 and the third 
meeting of the Parties to the Kyoto Protocol (MOP3) held in Bogor, 
Indonesia revealed the proposal. 
 
Following the move, the Japanese government has judged that it would 
 
TOKYO 00005240  004 OF 009 
 
 
be important in taking the initiative in the Bali meeting for Japan 
to officially obtain during the summit obtain US approval on the 
establishment of a working group. 
 
President Bush is active in creating a post-Kyoto Protocol 
framework, as can be seen in the fact that he hosted an 
international conference on the global warming issue in September. 
 
However, Bush remains opposed to the idea of restricting emissions 
in a forceful manner. He instead insists on emissions cuts under 
conditions that do not hamper economic growth. As such, it is 
unclear whether the US will give clear-cut approval to the proposal 
for setting up a working group as a post-Kyoto framework for 
negotiations. 
 
6) US State Department: North Korea's status as terrorism-sponsoring 
nation not linked to abduction issue 
 
SANKEI (Page 3) (Full) 
November 15, 2007 
 
Takashi Arimoto, Washington 
 
State Department spokesman Tom Casey said in a press briefing on 
Nov. 13 that the issue of delisting North Korea as a state sponsor 
of terrorism and the issue of North Korea's past abductions of 
Japanese nationals are not necessarily linked. The spokesman 
indicated that the US would push forward the process of taking the 
North off a US blacklist without linking it to resolving the 
abduction issue. Under US domestic law, the president is required to 
inform the Congress of a plan to remove a country from the list at 
least 45 days before the plan comes into effect. If North Korea 
disables its nuclear facilities and declares all its 
nuclear-development programs by the end of this year in accordance 
with a six-party deal, the US will decide to delist it later this 
year and will put the plan into effect in mid-February. 
 
But the spokesman, taking Japan's position into consideration, said: 
"There must be progress (on the abduction issue) in moving the 
six-party process forward." He indicated that the US would continue 
to give priority to resolving the abduction issue. 
 
Former US Ambassador to the United Nations John Bolton, who is 
opposed to delisting North Korea, met on Nov. 13 with visiting 
representatives of the Association of the Families of Victims 
Kidnapped by North Korea, a group of Diet members dealing with the 
abduction issue, and the National Association for the Rescue of 
Japanese Kidnapped by North Korea. In the meeting, Bolton stressed 
the need for Prime Minister Yasuo Fukuda to convey to President Bush 
in their meeting on Nov. 16 Japan's unwavering priority to the 
abduction issue, saying: "The State Department is very eager to 
remove North Korea from the list, so I want to get an opportunity to 
thwart its plan." 
 
7) Upper House approves extension of sanctions on North Korea; JCP, 
SDP oppose it 
 
ASAHI (Page 4) (Full) 
November 15, 2007 
 
The House of Councillors plenary session agreed yesterday to 
re-extend until next April Japan's independent sanctions on North 
 
TOKYO 00005240  005 OF 009 
 
 
Korea. The sanction measures include a ban on North Korean ships 
from calling at Japanese ports, as well as imports of North Korean 
products. The sanctions were unanimously approved twice last October 
when the measures were evoked and in April this year, but this time 
the Japanese Communist Party, the Social Democratic Party and some 
independent lawmakers were against the extension. The JCP explained 
that there appears to be a new situation over the nuclear issue. 
 
8) Japan-China talks on development of gas fields end in rupture: 
Foreign ministerial possible in late November 
 
SANKEI (Page 5) (Full) 
November 15, 2007 
 
The governments of Japan and China yesterday held a 
bureau-director-level meeting in Tokyo to discuss development of gas 
fields in the East China Sea. However, both sides remained at odds 
over areas subject to joint development. The Japanese side proposed 
to hold a meeting again within the month. The two countries during 
the meeting agreed to hold a ministerial-level meeting, such as a 
foreign ministerial, as needed. The Japanese government is 
considering dispatching Foreign Minister Koumura to China to urge 
the Chinese side to make a political decision. 
 
They during the summit in April agreed to report on concrete 
measures for joint development to their own top leaders. However, it 
is now difficult to reach a settlement before the deadline. Chief 
Cabinet Secretary Nobutaka Machimura during a press conference 
yesterday expressed concern, "If we remain unable to compile any 
good report, it might affect Prime Minister Fukuda's plan to visit 
China." 
 
In the past talks, the Japanese side has proposed that an area 
straddling the Japan-China median line, which includes the Shirakaba 
(Chunxiao in Chinese) gas field, which China is already developing 
on its own, be subject to joint development, while the Chinese side 
has suggested two areas on the Japanese side of the median line. 
 
9) Ruling camp, DPJ agree to discuss DPJ bill to abolish Iraq Law 
first in Upper House 
 
ASAHI (Page 4) (Excerpt) 
November 15, 2007 
 
The ruling and the Democratic Party of Japan (DPJ) agreed in a 
meeting of the House of Councillors' foreign and defense committees 
yesterday to deliberate on the DPJ-presented bill to abolish the 
Iraq Special Measures Law on a priority basis. Deliberations on the 
government's new antiterrorism bill to resume the Maritime 
Self-Defense Force's (MSDF) refueling mission in the Indian Ocean 
will be delayed. The ruling coalition is against the DPJ bill 
designed to pull SDF personnel out of Iraq, but it intends to urge 
the DPJ to take a swift vote on the bill with the aim of starting 
deliberations on the new antiterrorism bill at an early date. 
Although it is certain that the bill will be rejected in the House 
of Representatives, the ruling camp will unprecedentedly back the 
passage of the bill that it is opposed to. 
 
10) Ruling, opposition parties reach no conclusion on new antiterror 
bill 
 
YOMIURI (Page 4) (Abridged) 
 
TOKYO 00005240  006 OF 009 
 
 
November 15, 2007 
 
The ruling Liberal Democratic Party and the leading opposition 
Democratic Party of Japan (Minshuto) held a meeting of their House 
of Councillors Diet affairs committee chairmen in the Diet yesterday 
afternoon to discuss a schedule for deliberations on a 
government-introduced new antiterror bill sent from the House of 
Representatives to the House of Councillors. In the meeting, the LDP 
and DPJ Diet affairs chiefs in the Diet's upper chamber, Seiji 
Suzuki and Susumu Yanase, agreed to refer to the House of 
Councillors Foreign Affairs and Defense Committee a DPJ-proposed 
bill repealing the Iraq Reconstruction and Assistance Special 
Measures Law. The DPJ had called for the ruling coalition to 
fast-track the Iraq bill over the new antiterror legislation. The 
committee will now first deliberate on the Iraq bill. 
 
11) DPJ approves Afghan assistance draft bill allowing SDF to 
provide only civilian assistance 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 15, 2007 
 
The main opposition Democratic Party of Japan (DPJ or Minshuto) 
approved in a meeting yesterday of its Foreign Affairs and Defense 
Division a special measures draft bill to support reconstruction of 
Afghanistan as its counterproposal to the government's new 
antiterrorism special measures legislation. The draft features 
dispatch of the Self-Defense Forces (SDF) to Afghanistan only for 
the purpose of extending civilian assistance. The DPJ will formally 
make a final decision in a meeting on Nov. 21 of the "Next Cabinet." 
It will determine whether to submit the bill to the current Diet 
session after watching the Diet situation. 
 
The bill is temporary legislation with a one-year life span. The 
draft stipulates that SDF troops would support Afghanistan's efforts 
to revitalize farm land, and provide medical and food aid in areas 
where damage has not been inflicted on the civilians. A basic plan 
for the SDF overseas dispatch requires prior Diet approval. The 
draft does not refer to SDF participation in the International 
Security Assistance Force (ISAF), which is party head Ichiro Ozawa's 
pet argument. 
 
The government's new antiterrorism bill stipulates that the SDF 
would be allowed to use arms only to protect themselves or those 
under their control. The DPJ's draft bill expands the standards for 
the SDF's use of arms, stipulating that the SDF would be allowed to 
use force when they need to prevent resistance toward their 
activities at any cost. 
 
Regarding participation in the Maritime Interdiction Operation, 
including refueling activities, the draft stipulates that if 
operations are authorized by the United Nations, necessary legal 
adjustments would be looked into. The draft also mentions the need 
for an early establishment of a permanent law enabling SDF overseas 
deployment as needed. 
 
12) Former Yamada executive impeded Defense Agency's investigation 
of bill-padding case; Yamada briefed Moriya on the matter; 
Administrative punishment not imposed 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
November 15, 2007 
 
TOKYO 00005240  007 OF 009 
 
 
 
It has come to light that the defense equipment trading house Yamada 
Corp. has padded a bill for defense equipment. In this connection, 
former Yamada executive Motonobu Miyazaki, 69, under arrest on 
suspicion of corporate embezzlement, is suspected to have had a 
foreign acquaintance act as a manufacturer representative 
responsible for the matter to offer an explanation to put Yamada at 
an advantage when the then Defense Agency sent personnel to the 
United States for investigations in 2002, sources familiar with the 
matter said. 
 
Yamada explained the past developments to former Vice Defense 
Minister Takemasa Moriya, 63, who was serving as Defense Policy 
Bureau director general, a post not responsible for the procurement 
of equipment. 
 
The special investigation squad of the Tokyo District Public 
Prosecutors Office on Nov. 13 began seriously questioning Defense 
Ministry officials responsible for equipment and former defense 
officials, suspecting that (the Defense Agency) gave favors to 
(Yamada) in return for entertainment. 
 
Yamada padded the bill for the contract concluded with the Defense 
Agency in March 2001 to deliver 24 sets of chaff and flare 
dispensers (worth about 810 million yen). 
 
A Defense Agency official stationed in the United States realized in 
December 2001, after the contract was concluded, that the unit price 
was higher than the same equipment on a different contract. The 
official then asked the manufacturer, BAE Systems of Britain, and 
Yamada about the matter and found that the bill was padded. 
 
The Defense Agency sent an official to the United States in May 2002 
to investigate the overcharge. Miyazaki blocked the defense official 
from seeing a BAE representative. 
 
Miyazaki specifically made his acquaintance working at a US 
corporation closely associated with BAE act as a BAE executive to 
offer an explanation that would put Yamada at an advantage, 
according to the sources. Miyazaki is suspected to have forged 
business cards. 
 
Yamada subsequently proposed to the Defense Agency that it would 
reduce the amount by 180 million yen and the contract was altered 
accordingly. Yamada did not receive any administrative punishment 
from the Defense Agency. 
 
13) Moriya's second testimony today 
 
TOKYO SHIMBUN (Page 1) (Full) 
November 15, 2007 
 
Former Administrative Vice-Defense Minister Takemasa Moriya, 63, who 
was treated to free rounds of golf and wining and dining by Motonobu 
Miyazaki, a former managing director of the Tokyo-based defense 
equipment trading house Yamada Corp., will testify this afternoon 
before the House of Councillors Foreign Affairs and Defense 
Committee. 
 
The focus will be on how Moriya will testify about allegations that 
he gave favors to Miyazaki over the procurement of engines for the 
Air Self-Defense Force's next-generation transport aircraft 
 
TOKYO 00005240  008 OF 009 
 
 
codenamed CX and allegations that he entrusted over 40 million yen 
to Defense Policy Division Director Nobuki Kawamura, 47, who was his 
subordinate. 
 
In his testimony on Oct. 29 before the House of Representatives 
Special Committee on Prevention of Terrorism, Moriya admitted that 
he had been treated by Miyazaki to golf more than 200 times through 
April 2007. At the same time, he flatly denied allegations that he 
had given favors to (Yamada) on the procurement of defense 
equipment. 
 
Yamada President Yoshihiko Yonezu, 70, will also testify this 
morning as an unsworn witness. 
 
14) Yamada made 30 million yen in slush funds from procurement of 
PKO supplies; Money sent from Israel to US 
 
ASAHI (Page 1) (Abridged) 
November 15, 2007 
 
Osamu Akiyama, 70, former president of Yamada Corp.'s US subsidy who 
is under arrest on suspicion of corporate embezzlement, built up a 
slush fund of 30 million yen -- profit from the procurement of 
supplies in connection with UN peacekeeping operations in the Middle 
East -- by means of transferring it to the United States from the 
office in Israel, sources familiar with the matter said. The special 
investigation squad of the Tokyo District Public Prosecutors Office 
has questioned an executive of the office and others on a voluntary 
basis. 
 
The money is suspected to have been transferred to Japan and was 
used by former Yamada executive Motonobu Miyazaki, 69, for 
entertaining former Administrative Vice-Defense Minister Takemasa 
Moriya, 63. 
 
Yamada President Yoshihiko Yonezu and Moriya are scheduled to 
testify today before the House of Councillors Foreign Affairs and 
Defense Committee. How the slush funds were created and how Moriya 
was entertained are likely to draw attention. 
 
According to Yamada sources and others, the Israel office (in Tel 
Aviv) of Yamada International Corp. (YIC), Yamada's US subsidiary, 
undertook work to procure daily necessities, such as food, cookers, 
and bathtubs, since 1996 when the Self-Defense Force started PKO on 
the Golan Heights. The payments were made by the local SDF unit in 
US dollars. 
 
The Israel office, upon receiving orders from former president 
Akiyama, sent the money, some enclosed in the mail, to Akiyama, who 
was based in New York at the time. Office executives occasionally 
took cash with them when they visited the United States. They 
transferred several million yen annually, for a total of about 30 
million yen by around 2002. 
 
Akiyama reportedly pooled the money he received in a secret bank 
account for a slush fund. The slush fund was suspected to have been 
sent to Japan and was used by Miyazaki for entertaining Moriya and 
other defense officials. 
 
The YIC started building up slush funds about 30 years ago on the 
pretext of executive remuneration. The company reportedly had over 
500 million yen in slush funds. 
 
TOKYO 00005240  009 OF 009 
 
 
 
15) MSDF ships to return home from refueling mission on Nov. 23 
 
TOKYO (Page 2) (Full) 
November 15, 2007 
 
A squadron of Maritime Self-Defense Force vessels engaged in 
refueling activities in the Indian Ocean will return to Japan on the 
morning of Nov. 23, a high-ranking government official revealed 
yesterday evening. The government plans to hold a ceremony that day 
to greet the MSDF vessels, with Defense Minister Shigeru Ishiba and 
others attending. The MSDF ships withdrew from there at midnight on 
Nov. 2 along with the Antiterrorism Special Measures Law's Nov. 1 
expiry. 
 
16) Labor union of Japanese workers for US military bases set to 
stage strike against wage cuts 
 
SANKEI (Page 5) (Excerpts) 
November 15, 2007 
 
The government is considering cutting its host-nation budget (the 
so-called sympathy budget) for the stationing of US forces in Japan 
in next fiscal year's budget. In response, the All Japan Garrison 
Forces Labor Union (Zenchuro), composed of Japanese employed on US 
military bases and chaired by Kazuo Yamakawa, notified the Defense 
Ministry yesterday of its plan to go on a four-hour strike on Nov. 
21 in protest against wage cuts. If actually staged, it will be the 
first strike by Zenchuro in 16 years. 
 
The Defense Ministry and the Finance Ministry plan to cut Japanese 
workers' wages by approximately 10 billion yen. 
 
Wages and allowances for Japanese workers are paid from 
sympathy-budget-based contracts with the Defense Ministry. The 
Finance Ministry is calling for abolishing a 10 PERCENT 
differential added to base pay for Japanese employees and language 
allowances, as well as lowering retirement allowances to the level 
of those for national public servants. Negotiations between 
Washington and Tokyo over sympathy budget cuts are having 
rough-going. 
 
DONOVAN