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UNCLAS SECTION 01 OF 15 TOKYO 005320 
 
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 11/21/07 
 
 
INDEX: 
 
(1) US needs to see progress in nuclear, abduction issues for N. 
Korea delisting: Bush (Sankei) 
 
(2) Fukuda diplomacy takes first step toward "synergy": Premier Wen 
reacts favorably (Asahi) 
 
(3) Leaders of Japan, China, South Korea play up friendly mood, 
laying aside pending issues (Nikkei) 
 
(4) Nukaga treated by Mitsubishi (Akahata) 
 
(5) Editorial: Do we want to entrust the compilation of the state 
budget to Finance Minister Nukaga? (Asahi) 
 
(6) Ruling, opposition parties to find way to reach agreement on 
bills (Asahi) 
 
(7) US N-flattop unsettles local host communities (Tokyo Shimbun) 
 
(8) US system of screening visitors: mistakes, contradictions found 
in 38 PERCENT  of those cited on monitoring list (Asahi) 
 
(9) Policy watch: Face up to the economy slipping (Sankei) 
 
(10) TOP HEADLINES 
 
(11) EDITORIALS 
 
ARTICLES: 
(1) US needs to see progress in nuclear, abduction issues for N. 
Korea delisting: Bush 
 
SANKEI (Top play) (Abridged) 
November 21, 2007 
 
On Nov. 16, Japan and the United States held a summit meeting of 
their leaders. On that occasion, US President Bush cited 
requirements for the issue of striking out North Korea's name on its 
terror list, sources familiar with Japan-US relations revealed 
yesterday. In this regard, Bush told Prime Minister Yasuo Fukuda 
that the United States, before delisting North Korea, would need to 
see progress in three areas: 1) North Korea's nuclear disablement; 
2) nuclear nonproliferation; and 3) abductions. In the summit 
meeting, Fukuda did not set forth a strong stance against delisting 
North Korea. That is presumably because Fukuda, based on such 
remarks from Bush, judged that the United States would not delist 
North Korea for the time being. 
 
So far, the government has not revealed details about what was 
discussed at the Japan-US summit. When it comes to the abductions 
issue in particular, the fact that Bush told Fukuda that the United 
States "will never (sic) forget" the abductions issue was revealed. 
However, the government has remained equivocal about the possibility 
of the United States delisting North Korea as a terror sponsor while 
there is still no progress in the abductions issue. For this reason, 
abductees' kin voiced dissatisfaction with Fukuda who did not 
strongly oppose delisting North Korea. According to the sources 
familiar with Japan-US relations, however, Bush actually cited the 
need to see "progress" in the abductions issue as a requirement for 
North Korea to be delisted. 
 
TOKYO 00005320  002 OF 015 
 
 
 
Gov't optimistic with "no delisting for the time being" 
 
President Bush, in his meeting with Prime Minister Yasuo Fukuda, 
revealed three preconditions for the United States to strike out 
North Korea's name on its list of terror sponsors. For this reason, 
there are optimistic views arising from within the government. "The 
North has yet to satisfy the three requirements," a senior official 
of the Foreign Ministry said. "So," the official added, "there will 
be no delisting for the time being." However, one who has 
experienced the post of chief cabinet secretary surmises that US 
Assistant Secretary of State Hill, who is the chief US chief 
delegate to the six-party talks, might have already promised North 
Korea the UA would cross out its name from the terror list. Only 
Japan could be left out of the loop while taking an optimistic view 
of things. As it stands, there is no predicting how things will turn 
out. 
 
In the meeting, Bush declined to say the United States would not 
delist North Korea. Nevertheless, the government's sense of crisis 
remains weak. That is primarily because North Korea is now suspected 
of backing up the construction of nuclear-related facilities in 
Syria, which, according to a diplomatic source, is "a country that 
holds the key to the Middle East situation." This is clearly against 
Bush's requirement of North Korea's nuclear nonproliferation. 
 
"The United States is focusing its tenfold attention to the Middle 
East over North Korea," a Foreign Ministry source said. The source 
also said, "The United States is now concerned about the issue of 
North Korea's nuclear proliferation to Syria, so the United States 
cannot take action to delist North Korea at this time." As a matter 
of fact, Hill and his supervisor, Secretary of State Rice, are now 
turning reconciliatory toward North Korea. "But," the source said, 
"the US government and Congress are not in such a situation." 
 
(2) Fukuda diplomacy takes first step toward "synergy": Premier Wen 
reacts favorably 
 
ASAHI (Page 2) (Slightly abridged) 
November 21, 2007 
 
Winding up the Japan-US summit in Washington, Prime Minister Yasuo 
Fukuda on Nov. 20 started full-fledged Asia diplomacy in Singapore. 
His talks with the Chinese and South Korean leaders were enveloped 
by a friendly atmosphere. However, no in-depth talks on individual 
pending issues, such as exploration of gas fields in the East China 
Sea, took place. It will likely take time for his pet theory of 
diplomatic synergy of combining efforts to strengthen the Japan-US 
alliance and pursuing Asia diplomacy to take on concrete form. 
Chinese Premier Wen during the talks said, "I talked with Prime 
Minister Fukuda right after he took office as prime minister." 
Chinese leaders have thus far had telephone talks with US 
presidents, but this is presumably the first time for any Chinese 
leader to have a telephone dialogue with a Japanese prime minister 
since ties between the two countries were normalized 35 years ago. 
The two leaders also had a luncheon in Singapore, the first time for 
any leaders of the two countries to have a luncheon in a country 
other than their own. 
 
Former Prime Minister Abe had in a way kept himself at arm's length 
with China. However, touching on Abe's reviving reciprocal visits by 
Japanese and Chinese leaders, a practice that had been suspended due 
 
TOKYO 00005320  003 OF 015 
 
 
to former Prime Minister Koizumi's repeated visits to Yasukuni 
Shrine, Wen made a considerate remark, "Mr. Abe's visit to China 
last fall turned out to be a journey to thaw the ice between the two 
countries, and my visit to Japan this spring also thawed the ice. I 
will never forget my old friend." He then expressed expectations for 
progress on strategic and mutual-beneficial relations during the 
Fukuda administration. 
 
Since Prime Minister Fukuda expressed his intention not to visit 
Yasukuni Shrine, China and South Korea are reacting favorably to 
him. Wen during the talks said, "Prime Minister Fukuda is popular in 
China." South Korean President Roh Moo Hyun praised Fukuda, noting, 
"South Korean people have great expectations of Prime Minister 
Fukuda." In particular, China has a favorable impression of Fukuda 
because of his father Takeo Fukuda, former prime minister who signed 
the Japan-US Peace and Friendship Treaty. 
 
Some Japanese government officials have even tried to score points 
for the Fukuda administration by proposing a new Fukuda doctrine 
coinciding with Prime Minister Fukuda's debut in Asia diplomacy. 
 
There are remnants of the Fukuda Doctrine, guidelines for Asia 
diplomacy late former Prime Minister Takeo Fukuda advocated, in 
Southeast Asia. The idea is to create heart-to-heart relations of 
mutual trust on an equal footing with Asian countries, abandoning 
the path of becoming a military power. 
 
However, the idea was put on hold this time with some saying that 
the prime minister's proposal would not draw attention at a forum 
where many top leaders gather. 
 
Instead, the prime minister at the Japan-China summit declared his 
Asia diplomacy policy, saying, "Our country will promote 
cooperation, based on self-support and coexistence, in order to 
realize an affluent, stable and open East Asia." 
 
The prime minister included "self-support and coexistence" in his 
policy speech given right after taking office. He has now used that 
policy ideal in the international arena. One senior Foreign Ministry 
official explained that the prime minister has in his mind a concept 
of acknowledging sustainable growth of Asian economies and 
diversity. 
 
Concrete image has yet to come into sight; Pending issues left 
unattended 
 
Wen: "I hope to see both of our countries bravely tackle the issue 
to realize joint development." 
 
Fukuda: "I would like Premier Wen to display leadership for an early 
settlement." 
 
Joint exploration of gas fields in the East China Sea between Japan 
and China, the issue that has made little progress since Wen visited 
Japan in April, was also on the agenda of the Japan-China summit. 
 
Both leaders indicated a positive stance and played up their 
readiness to cooperate. However, efforts to find a concrete 
settlement measure have been put off until Fukuda visits China, 
regarding which coordination is underway to set a visit for either 
the end of the year or early next year. 
 
 
TOKYO 00005320  004 OF 015 
 
 
With gaps in views of the two countries on the issue remaining 
unfilled even after 11 rounds of bureau-director-level talks, the 
judgment was reached that making concessions is premature due to 
Japan's unstable political situation and with the Taiwanese 
presidential election close at hand next March, according to the 
same source. 
 
According to a senior Japanese government official, Fukuda during 
the meeting with Wen sought cooperation from China in order to 
realize the return of abduction victims. Wen expressed understanding 
and sympathy and offered necessary cooperation. However, Foreign 
Minister Koumura, who was present at the meeting, got the impression 
that the talks went all right, but what cooperation China will 
extend in concrete terms will depend on future talks." 
 
Regarding ever-expanding China's military expenditures, Fukuda 
reportedly did not seek transparency in concrete terms. 
 
Concerning Burma, one key issue at the series of summits this time, 
the Japanese side simply sat still and watched China and Burma try 
to cancel a debriefing session by Special Advisor to the US 
Secretary General Gambari slated to be held at the East Asia Summit 
 
SIPDIS 
on the 21st. China overtly tried to defend Burma's military junta, 
fearing that the situation in that nation would spill over and 
affect its own humanitarian issues. However, Fukuda did not refer to 
Burma at all during the meeting with Wen. 
 
Former Prime Minister Abe stressed the importance of sharing values, 
such as freedom and democracy. He advocated value-based diplomacy, 
which was taken as a policy of encircling China while attaching 
importance to India. Fukuda is trying to strengthen relations with 
China, marking a clear departure from Abe's policy. However, the 
whole image of his Asia diplomacy has yet to be fixed. 
 
(3) Leaders of Japan, China, South Korea play up friendly mood, 
laying aside pending issues 
 
NIKKEI (Page 2) (Full) 
November 21, 2007 
 
A series of summit talks between Japan, China and South Korea, 
between Japan and China, and then between Japan and South Korea were 
held on Nov. 20, in which expressions suggesting their willingness 
to establish future-oriented relations were frequently used, such as 
"cooperation" and "development." Both the leaders of China and South 
Korea were eager to build personal ties with Prime Minister Yasuo 
Fukuda, who is emphasizing a policy of placing importance on 
relations with Asia, unlike when Japan's relations with these two 
Asian countries became strained over former Prime Minister Koizumi's 
annual visit to Yasukuni Shrine. The series of summits were held 
outwardly in a friendly mood, but pending issues were laid aside. 
 
In the summit of Japan, China and South Korea in the morning, the 
three leaders agreed to hold another round of trilateral summit 
separately from an international conference, which had so far been 
postponed many times. The decision to hold one might be representing 
the leaders' eagerness to improve trilateral relations. 
 
In the Japan-China summit held in the afternoon, China also gave a 
cordial reception to Fukuda. The two leaders had lunch together for 
the first time since Fukuda assumed office, at the request of 
Japan. 
 
TOKYO 00005320  005 OF 015 
 
 
 
In the bilateral summit, Chinese Premier Wen Jiabao gave 
consideration to Fukuda by mentioning the name of his father, former 
Prime Minister Takeo Fukuda, who signed the Japan-China Peace and 
Friendship Treaty, saying: "Chinese people know you very well." A 
participant from Japan uttered, remembering the days of the Koizumi 
administration: "I am moved that we've come this far." 
 
But Premier Wen also said: "Japan-China relations are at an 
important turning point. It is necessary to seize opportunities and 
move relations forward." Wen's remarks are indisputably a message 
that China will never make concessions on past accounts and 
territorial issues, though maintaining favorable relations with 
Japan is indispensable in order for China to continue economic 
growth. 
 
In the series of summits, Chinese Premier Wen and South Korean 
President Roh Moo-Hyun did not refer to themes that could upset 
Japan, such as the issue of whether the United States would delist 
North Korea as a state sponsor of terrorism. 
 
China and South Korea are keeping close watch on future changes in 
the unstable power base of the Fukuda administration under the 
situation of the opposition bloc having control of the House of 
Councillors. China's cautious stance about a settlement of the 
dispute over gas exploration rights in the East China Sea might 
represent its willingness to cool-headedly explore the best timing 
to find a point of contact in a way advantageous to it. 
 
Key points in summits 
 
Japan-China-South Korea summit 
? Agreed to hold another trilateral summit separate from the ASEAN 
summit. 
? Confirmed the importance of North Korea steadily disabling its 
nuclear facilities and declaring its nuclear development programs. 
? Agreed to accelerate negotiations on concluding a trilateral 
investment treaty. 
 
Japan-China summit 
? Agreed on a visit to China by Prime Minister Fukuda by the end of 
this year or early next year. 
? Fukuda asked Wen to demonstrate his leadership in resolving the 
East China Sea gas dispute, and Wen expressed his determination to 
make efforts to that end. 
 
Japan-South Korea summit 
? Agreed on the importance of developing future-oriented Japan-South 
Korea relations. 
? Roh quoted North Korean leader Kim Jong Il as saying: "I clearly 
acknowledge the need for normalizing diplomatic ties between Japan 
and North Korea." 
 
(4) Nukaga treated by Mitsubishi 
 
AKAHATA (Top play) (Full) 
November 21, 2007 
 
Finance Minister Fukushiro Nukaga, a former director general of the 
Defense Agency, is now suspected of having been wined and dined by 
the Mitsubishi group (that includes Mitsubishi Heavy Industries, 
Ltd. and Mitsubishi Electric Corporation), with the group footing 
 
TOKYO 00005320  006 OF 015 
 
 
the bill. The Mitsubishi group annually received more than 30 
PERCENT  of all orders placed by the Defense Agency, now the Defense 
Ministry. This suspicion was pursued by Mikishi Daimon, a House of 
Councillors member of the Japanese Communist Party, in a House of 
Councillors Audit Committee meeting yesterday. 
 
Nukaga, sitting in on the Financial Affairs Committee on Oct. 30, 
asserted that he had never been to Kantokaku, which is a 
"guesthouse" of the Mitsubishi group. Daimon asked whether Nukaga 
paid membership dues there. Nukaga stated, "There were cases where I 
paid, and there were also cases where they paid." He also stated, 
"There's no need to comment on each case." With this, Nukaga 
admitted that he was entertained. 
 
Daimon stated: "You did not pay membership dues there, did you? To 
begin with, that is not a place to pay such money." With this, 
Daimon asked Nukaga to recheck whether he paid membership dues. 
 
Nukaga also is on the board of directors for a public-interest 
corporation called the Center for Japan-U.S. Peace and Cultural 
Exchange. Daimon took up the fact that this entity was subsidized 
from the state coffers when Nukaga and several other lawmakers 
visited Washington to attend a Japan-US security strategy conference 
held there. 
 
Daimon further noted that it takes each person at least one million 
plus several hundred thousand yen to cover travel expenses and to 
stay at a gorgeous hotel. In this regard, Daimon quoted Naoki 
Akiyama, a permanent director of the center, as explaining that each 
lawmaker only received 200,000 yen. Daimon revealed that more than 
one million yen was covered by subsidies from the government and 
donations from the munitions industry. 
 
Nukaga is a member of a public-interest entity's board of directors, 
and he made as many as three foreign trips subsidized by the 
government through that body. Raising a question about such junkets, 
Daimon pursued Nukaga's responsibility not only as a minister of 
state but also as a member of the Diet. Nukaga stated, "I paid money 
to join and worked for the public good." In this way, Nukaga sounded 
as if to say "so what?" Daimon bitterly criticized Nukaga, saying, 
"You should pay your way when you go." 
 
(5) Editorial: Do we want to entrust the compilation of the state 
budget to Finance Minister Nukaga? (Asahi) 
 
ASAHI (Page 3) (Full) 
November 21, 2007 
 
Everything so far has been unconvincing. We are talking about the 
explanation of Finance Ministry Nukaga about his relationship with 
Yamada Yoko Corp., the trading firm specializing in defense 
procurement, and its former executive manager. 
 
The trigger was the sworn testimony of former Administrative Vice 
Defense Minister Takemasa Moriya, who served under Nukaga during the 
two times he was defense chief. He also said that he had attended 
the same dinner as a former Japan desk director at the Pentagon and 
the former executive director. 
 
In replying, Nukaga said that he had no recollection or record of 
such a dinner, making the two sets of testimony completely opposite. 
There is a possibility that one or the other told a lie, but if what 
 
TOKYO 00005320  007 OF 015 
 
 
Moriya said was untrue, it is serious for he, as a sworn witness 
before the Diet, committed perjury. We also cannot give the nod to 
Nukaga's explanation that he had neither recollection nor record of 
such a matter. 
 
Regarding the relationship of Nukaga to Yamada Yoko Corp., little by 
little it is become clearer that he had close ties, as seen in the 
following information. A total of 2.2 million yen in party tickets 
were purchased from Nukaga by Yamada Yoko. He also received as 
carfare 200,000 yen from the former executive director when he 
attended the wedding of that person's daughter. His wife, who 
attended as a proxy, returned it as a congratulatory gift. He also 
played golf with the former executive director and attended a 
luncheon study group. 
 
Nukaga has denied it, but there also was testimony in connection 
with a construction order put out by the Sendai Defense Facilities 
Administration Bureau that Nukaga put in a good word for the 
company. 
 
Politicians always meet many people. It is probably inevitable that 
mixed among them may be some dishonest types. Nukaga probably wanted 
to say something like that. However, his relationship with Yamada 
Yoko went over the boundary line, no matter how you think about it. 
There is still another problem, for Nukaga's relations with a 
company that lacked common sense did not stop with Yamada Yoko. 
 
Nukaga, during his two times as defense chief between 2005 and 2006, 
held parties four times in the form of breakfast study groups, and 
reportedly, the ticket purchases that included the portion bought 
Yamada Yoko totaled 57.1 million yen. Politicians in important 
government positions such as a cabinet post are supposed to practice 
self-constraint in holding large-scale political fund-raising 
parties. That is because if they receive favors from certain firms 
in the form of political contributions, it will lead to suspicions 
about their administrative fairness. 
 
Despite that, why did he repeatedly hold such parties? Nukaga has 
explained that they were small scale of about 100 persons and not 
large scale. But is selling party tickets for one occasion to the 
tune of 10 million yen plus "small scale"? It only strains our 
ears. 
 
Nukaga, when he was defense director general in 1998 for the first 
time, had to resign to take responsibility for an excessive payment 
of charges for equipment. Prior to his resignation, Nukaga tackled 
the task of reforming the equipment procurement system by 
strengthening the checking function. The same Nukaga has had a 
strong inclination to having what might be called collusive ties 
with a company that has had over five years 17.4 billion yen in 
transactions with the Defense Agency and later the Defense Ministry. 
What a terrible state of affairs. 
 
The compilation of next year's national budget is almost here. In 
case Nukaga as the finance minister is the one tackling the budget 
compilation, which includes the defense budget, can he obtain the 
understanding of the public? The situation has become that severe. 
 
(6) Ruling, opposition parties to find way to reach agreement on 
bills 
 
ASAHI (Page 4) (Excerpts) 
 
TOKYO 00005320  008 OF 015 
 
 
November 21, 2007 
 
It has been two months since the main opposition Democratic Party of 
Japan (DPJ or Minshuto) became the largest party in the House of 
Councillors, while the ruling Liberal Democratic Party (LDP) is the 
largest in the House of Representatives. The LDP and DPJ are 
continuing their efforts to find a way to create rules to reach 
agreement on bills. The ruling camp is trying to listen to proposals 
by the opposition camp. If the largest ruling and opposition parties 
make compromises behind closed doors, many bills will smoothly clear 
the Diet. Whether they can find a third path -- neither 
confrontation nor a grand coalition -- depends on their efforts. 
 
"If the present Diet situation continues, we have to discuss what 
rules are needed," Chief Cabinet Secretary Nobutaka Machimura said 
in a press conference yesterday. He indicated that this topic would 
be discussed in one-on-one meetings between Prime Minister Yasuo 
Fukuda and other party leaders. 
 
The ruling and opposition parties have begun looking for a way to 
create Diet rules for consensus-building. 
 
Hideaki Omura of the LDP said: "We can't consult (kyogi-suru) on a 
bill after deliberating (shingi-suru) it." 
 
Kazunori Yamanoi of the DPJ stated: "We will accept deliberations 
(shingi) but not consultations (kyogi). 
 
In a meeting on Nov. 16 of the Lower House Committee on Health, 
Labor and Welfare, Omura and Yamanoi, who are in charge of managing 
the panel, had the above exchanges over anti-hepatic measures. The 
DPJ has submitted to the Upper House an anti-hepatitis measures 
bill, while the LDP has submitted its own hepatic bill to the Lower 
House. The committee members had different views on how to find 
common ground on the hepatitis issue. 
 
The LDP's Omura proposed holding consultations (kyogi) of 
working-level officials (committee members) from the ruling camp and 
the DPJ, not in the committee. The DPJ's Yamanoi, however, insisted 
on the need for deliberations (shingi) at the Diet. One committee 
member stressed: "It is important to hold an open debate on good and 
bad points of the two views. Otherwise, the Diet will lose 
substance." 
 
If placing importance on an easy way to reach a consensus, a 
consensus will be built behind closed doors. If open discussions are 
held, it will be difficult to build a consensus. Although they share 
the view that they should compromise, they have separate views on 
how to make a compromise. 
 
The revised law to support disaster victims' livelihoods enacted on 
Nov. 9 is an example that was made speedily. With the Diet divided, 
the opposition party-proposed bill finally saw the light of day, 
after their previous bills had been scrapped. 
 
Genichiro Sata of the LDP, who chairs the Special Committee on 
Disaster Victims, proudly said on Nov. 6: "Since doing things for 
the sake of the people is the basis for politics, the ruling and 
opposition parties talked about various matters." 
 
The DPJ submitted its own bill to support disaster victims to the 
Upper House, while the ruling LDP-New Komeito coalition presented 
 
TOKYO 00005320  009 OF 015 
 
 
its own bill to the Lower House. After launching deliberations on 
the bill at the special committee on Nov. 2, they immediately began 
consultations behind closed doors. Kazuyoshi Akaba of New Komeito, 
who has long been involved in the issue, and Takeaki Matsumoto of 
the DPJ took the initiative in revising the law, and Sata managed 
the consultations and deliberations. 
 
The DPJ proposed supporting the costs of disaster victims' 
reconstruction of their houses. The government had opposed to this 
idea, citing that tax money should not be used for personal assets. 
The main opposition party also asserted that the revised law should 
be applied also to four disaster cases occurred this year, including 
the Chuetsu Offshore Earthquake. Although conflict points affected 
the basis of law and fiscal system argument, the ruling and 
opposition parties searched for a way to make a compromise. 
 
As a result, the revised law was not applied to the four disaster 
cases, but the LDP and DPJ compromised to make the four cases as an 
exception. The diversion of gift money for use to rebuild housing 
was tacitly allowed. After holding six sessions in five days, the 
two sides came up with a revised bill. 
 
There was no question-and-answer session on Nov. 8 and 9 of the 
Upper and Lower House committees, to which the revised bill was 
submitted. The bill was put to a vote after each party expressed its 
approval of it, and it cleared the Diet immediately. 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima proudly told the 
press: "It was a symbolic policy decision. It was a result of our 
humble discussion, overcoming narrow party interests." 
 
(7) US N-flattop unsettles local host communities 
 
TOKYO (Page 3) (Full) 
November 14, 2007 
 
Hirohito Saito, Yokosuka bureau 
 
In August next year, the USS George Washington, a US naval 
nuclear-powered aircraft carrier, will arrive for deployment at the 
US Navy's Yokosuka base in the city of Yokosuka, Kanagawa 
Prefecture. Late last month, the nuclear flattop was opened to the 
press for the first time when she was on a training voyage in 
Atlantic Ocean waters off the US East Coast. However, her nuclear 
reactors and relevant facilities were barriered off as military 
secrets. Local citizens, saddled with the base, have been calling 
 
SIPDIS 
for dispelling their anxieties about nuclear disasters. However, 
there is still nothing better for their concerns. Again, the deep 
gulf became clear over safety. 
 
"We cannot show you the reactor compartment. If we reveal its high 
technologies, our strategic superiority will collapse. That's why. 
The nuclear propulsion system (of US warships) is classified in the 
US Navy, so we cannot show it." 
 
On the flight deck were training carrier-borne fighter jets. They 
were catapulted to take off and hooked up to halt. Their shock 
sounds reverberated to the commanding officer's cabin on the bridge. 
There, US Navy Cdr. Silkman, who is in charge of the USS George 
Washington's nuclear reactors, stressed the reasons why the reactor 
compartment is not open to the public. 
 
 
TOKYO 00005320  010 OF 015 
 
 
Silkman explained the USS George Washington's nuclear reactors, 
saying each reactor's generating power is about one-sixth of a 
commercial power plant's reactor. However, he refused to answer a 
question about its size, reasoning that it would disclose reactor 
data. This shows the US Navy's stance of giving top priority to 
information security. 
 
The USS George Washington is currently homeported at a naval base in 
the city of Norfolk, Virginia. The city has a population of about 
240,000. The base there is the largest of all naval bases in the 
United States. Warships based there include five nuclear-powered 
aircraft carriers, nuclear-powered submarines, and Aegis ships. 
 
In the Norfolk area, there are relevant facilities, such as an air 
station for carrier-borne aircraft and a shipyard that can build 
flattops. The city has a large population of people in the US Navy 
and their dependents. That is probably why people living in the city 
do not seem to feel uneasy about nuclear reactor accidents. 
 
"We've been living here for years, but I've never felt 
nuclear-powered aircraft carriers and nuclear-powered submarines are 
dangerous," said a 75-year-old man, who was on a walk with his wife 
in a Norfolk park. "The nuclear reactor is the kind of propulsion," 
he went on, "and it's not a bomb." He added: "There's no need to 
replace fuel for a long time. That's good." In his words, there was 
nothing negative about nuclear power. 
 
A 53-year-old Japanese woman, who is married to a US serviceman and 
lives in Norfolk, having a US citizenship, said: "There are also 
many complaints about noise around the air station, but many of the 
citizens are not concerned about that. However, Japanese people feel 
uneasy about nuclear power. I can understand their feelings well." 
 
The United States released a "fact sheet" on its planned deployment 
of a nuclear-powered aircraft carrier to Yokosuka. In this report, 
the US government explains that the US Nuclear Regulatory Commission 
and an advisory committee review each of the US Navy's nuclear 
reactors. With this, the US government stresses that the US Navy's 
nuclear reactors are authorized. 
 
The USS George Washington's Captain Dykhoff also said proudly, "We 
have been operating aircraft carriers and nuclear-powered submarines 
in a safe way over the past 50 years." 
 
Gov't hesitant about safety check 
 
Meanwhile, at the US Navy's Yokosuka base, seabed dredging work is 
now under way for a nuclear-powered aircraft carrier. "If a nuclear 
reactor accident should take place, Tokyo and its metropolitan 
environs will sustain immense damage that is irrecoverable." With 
this, a group of about 1,000 local residents, including those from 
the Tokyo metropolitan area, has instituted a class action lawsuit 
against the government trying to get an injunction to stop the 
dredging work in order to halt the deployment of a nuclear flattop 
to Yokosuka. 
 
The plaintiffs are concerned about a response shown by the 
government, which should be in a position to protect public safety. 
A review of nuclear reactors may ensure the American public's 
safety. Even so, it does not include the Japanese public. 
 
In its parliamentary reply, however, the government only says it has 
 
TOKYO 00005320  011 OF 015 
 
 
no right to review the reactors of US nuclear-powered warships. 
Moreover, the government generally admits that the United States 
does not provide Japan with information about the design and 
operation of US nuclear-powered warships. The government is hesitant 
to demand information from the United States, citing the US 
military's secrecy as a reason. 
 
"It's also possible to verify the nuclear reactors with their 
technical data in private," Masahiko Gotoh, a lawyer for the 
plaintiffs, noted. "But," Gotoh said, "the government will try not 
to do anything." He added: "The government must verify safety. We're 
going to pursue the government's accountability in court." So 
saying, he was ready to square off with the government. 
 
(8) US system of screening visitors: mistakes, contradictions found 
in 38 PERCENT  of those cited on monitoring list 
 
ASAHI (Page 2) (Excerpts) 
November 19, 2007 
 
Arriving foreign visitors form a long line at the immigration 
section at John F Kennedy Airport in New York to have their 
fingerprints taken from the index finger of each hand. Visitors have 
to wait for more than one hour when a number of flights arrive. 
 
The US-visit system was introduced in 2004. The system is almost the 
same as Japan's. Anna Hinken, an officer of the US Department of 
Homeland Security, proudly said: "We have rejected the entry of more 
than 2,000 persons who were considered a security risk since the 
system was introduced." 
 
But a US government agency poses questions about the system's 
technology and credibility. This July, the US General Accounting 
Office criticized the US-visit system as seriously fragile in view 
of information control. He pointed out the possibility that personal 
data, including fingerprint data, might be altered or copied by 
someone from the outside due to insufficient security measures. 
 
In September, an auditor of the Justice Department emphasized how 
inaccurate US blacklists are. The auditor said that as a result of a 
sampling check of the terrorism-affiliates included in a monitoring 
list, mistakes or contradictions were found in 38 PERCENT  of those 
checked, with the names of some terror suspects left out of the list 
or innocent persons appearing on it. 
 
The monitoring list was compiled by integrating those of such 
government agencies as the FBI and the Transportation Security 
Administration, and the list is not open to the public. As of April 
this year, the number of those listed was 700,000. The number 
reportedly increases by 20,000 per month. 
 
American Civil Liberties Union member Barry Steinhardt said: "There 
should not be so many terrorists. The list is unreliable. In 
addition, since the list is classified and not publicized, it is 
impossible to check how effectively it has worked to prevent 
terrorism." 
 
The monitoring list has also affected civic life. There are cases in 
which citizens unrelated to terrorism appeared on the list or in 
which a person who has the same family and personal name as a 
certain suspect was stopped at an airport security check. 
 
 
TOKYO 00005320  012 OF 015 
 
 
The US-visit system also tends to give travelers an unpleasant 
impression about the nation. 
 
A group formed with the aim of improving the image of the US 
conducted a survey of travelers from foreign countries last year. 
Asked about which they think is the most unfriendly country or 
region in terms of immigration officers' response and necessary 
immigration procedures, the largest number of respondents cited the 
US. A member of this group commented: "Travelers have a feeling that 
the US has not welcomed them and has set up barriers." 
 
(9) Policy watch: Face up to the economy slipping 
 
SANKEI (Page 1) (Full) 
November 19, 2007 
 
By Heizo Takenaka 
 
It has become clear that the Japanese economy is slipping. A spot 
report for the July-September quarter this year, released on Nov. 
13, noted that gross domestic product (GDP) increased 2.8 PERCENT 
(in annual terms) from the preceding quarter. Since the April-June 
quarter marked a negative 1.2 PERCENT  increase, there had been 
expectations that GDP would achieve a clear recovery from that 
level. Though the GDP in the July-September quarter resulted in a 
positive figure, two-thirds of the growth was due to external 
demand, confirming that the deflationary trend has yet to be 
overcome. The Subprime loan issue of the US is grabbing headlines. 
Stock prices have plunged in industrialized countries this year. 
However, it is Japan that is experiencing the largest stock plunges, 
despite the fact that it has not directly felt the impact of the 
Subprime loan flap. The government needs to face up to this point. 
While political circles have gotten into a mess, causing a possible 
Lower House dissolution and snap election to dominate the agenda, 
the deterioration of the economy caused by domestic factors has 
begun to come within sight. 
 
There are two factors that are attributable to the worsening of the 
economy. One is that with market players having determined that 
economic structural reforms having clearly become stagnant, the 
expected rate of growth is in a slump. The other is that the impact 
of mistaken financial policies has become obvious. 
 
Let's examine the stagnant reform drive and the slump in the 
expected rate of growth. The Japanese economy has recovered an 
ordinary growth level of about 2 PERCENT  since 2004, when the 
amount of non-performing loans clearly dropped. As a result, 
companies have reported all-time high earnings and profits. The 
economic expansion outdoing the Izanagi economic boom (1965-1970) 
has continued. However, no major organizational reforms have been 
carried out since decisions were made to privatize postal services 
and to consolidate government-affiliated financial institutions. 
 
Rather, a stance of overtly going against the reform drive is 
visible as can be seen in the recent proposal made by the Land, 
Infrastructure and Transport Ministry for using up road-construction 
revenues without reallocating them for other usage, and a request 
filed by the Association of Prefectural Governors for an increase in 
tax allocations. In the meantime, the Finance Ministry is taking the 
lead in discussions of tax hikes. In other words, people are seeking 
money from the state, and the state is seeking money from the 
people. The economy cannot be stimulated under such a situation. 
 
TOKYO 00005320  013 OF 015 
 
 
 
Overseas investors have apparently lost interest in Japan. Foreign 
funds have begun pulling out of Japan. The Japanese economy, which 
has been maintained thanks to the aftereffects of the Koizumi reform 
drive, is clearly beginning to undergo changes. 
 
A questionnaire on corporate behaviors carried out by the Cabinet 
Office indicates companies' expected rate of growth. According to 
the outcome of the survey, an expected rate of growth in Japan 
gradually rose from 1.0 PERCENT  recorded three years ago to 1.8 
PERCENT  marked this fiscal year. However, the result indicates that 
the expected growth rate would slightly decline in the future. 
Personal consumption and capital investment will become active only 
when an expected rate of growth rises. The US has absorbed money 
from all over the world, because it has kept a high expected rate of 
growth. 
 
With the economy clearly deteriorating, the government must 
positively deal with what the survey results have indicated. Of 
course, it does not mean taking economy-spurring measures in fiscal 
terms. The government must carry out drastic reform that can make 
people believe that the Japanese economy would grow, that is to say, 
it must reform frameworks matching postal privatization. However, 
the new administration has yet to indicate a menu for such a 
reform. 
 
Economy has yet to emerge from deflationary phase 
 
Another reason why Japan is experiencing the largest dip in stock 
prices among advanced countries is that its fiscal policy is 
inappropriate. The government has pledged to overcome deflation in 
fiscal 2006, but it has failed to deliver on that commitment. It is 
also hopeless for it to contain deflation in fiscal 2007, either. 
While crude oil prices are soaring to this level and concern about 
inflation felt by all over the world, Japan alone remains unable to 
emerge from deflation. Government officials need to seriously 
reflect on this fact. Their responsibility for the fiscal policy is 
immense. 
 
Biased discussions calling for a substantive consumption tax hike 
have recently been taking place. This is the result of Japan having 
accepted its failure to overcome deflation and an extremely low 
nominal growth rate as a matter of fact. The average nominal growth 
rate among members of the Organization for Economic Cooperation and 
Development (OECD) was 5.2 PERCENT  last year. However, Japan's rate 
was only 1.2 PERCENT . Given the fact even Germany, which marked the 
second lowest rate, achieved 3.2 PERCENT , Japan's blunder in the 
management of the economy is outstanding. 
 
Under such circumstances, the Bank of Japan (BOJ) has raised 
interest rates for the past year. The BOJ's job is, however, to 
fulfill its original responsibility of countering deflation first 
through an increased money supply. 
 
What is important is not who will head BOJ but what must be sought 
from BOJ governor 
 
In connection with the trading of places between the ruling and 
opposition camps in the Upper House, how to obtain approval for the 
appointment of the next BOJ governor has become a subject of 
discussion. The media is always interested in personnel affairs. 
What is important from the perspective of policy arguments is what 
 
TOKYO 00005320  014 OF 015 
 
 
should be expected of BOJ governor, instead of who will become its 
governor. 
 
The opposition camp reportedly plans to hold a hearing, inviting 
candidates for the post to the Diet. In view of the fact that the 
bureaucracy has thus far taken the lead in selecting personnel for 
posts that require Diet approval, it is very meaningful for the Diet 
to proactively examine personnel matters. On that occasion, the Diet 
should make it clear what it will seek from a BOJ governor. 
 
In a word, what they should be sought from a BOJ governor is that he 
should prevent the economy from inflating or deflating. This is 
indeed the goal the BOJ should attain. We should urge candidates for 
a BOJ governor to raise prices by between 1 PERCENT  and 2 PERCENT . 
Taking into account that the prices of crude oil would continue 
rising, bringing about a potential inflationary risk, this would be 
extremely meaningful. If that happens, a nominal growth rate between 
3 PERCENT -4 PERCENT  can be hoped for, even if a real growth rate 
remains at around 2 PERCENT  as it is now. This would also help 
correct the current Finance Ministry-led tax hike discussions that 
are biased toward a tax hike. 
 
The aftereffects of the structural reforms have already vanished. In 
order to live up to the wary eyes of the international community, 
too, a stance of seriously tackling the economic deterioration is 
sought from politicians. 
 
(10) TOP HEADLINES 
 
Asahi: 
Government's tax panel recommends reducing income tax deductions 
 
Mainichi, Yomiuri & Tokyo Shimbun: 
Kyoto University team succeeds in producing iPS stem cells from 
human skin 
 
Nikkei: 
Government's tax panel proposes using income tax revenues to cover 
social security expenses 
 
Sankei: 
US president in meeting with Fukuda presents progress on nuclear and 
abduction issues as conditions for delisting North Korea 
 
Akahata: 
Nukaga gave favors to construction company, according to former 
Sendai Defense Facilities Administration Bureau director 
 
(11) EDITORIALS 
 
Asahi: 
(1) Prime Minister Fukuda should utilize Japan-China-ROK resonance 
(2) We cannot commission Finance Minister Nukaga to compile the 
state budget 
 
Mainichi: 
(1) Foreign policy toward China and ROK: Top leaders' mutual visits 
should be continued 
(2) Consumption tax hike: Government should be one that the public 
can support 
 
Yomiuri: 
 
TOKYO 00005320  015 OF 015 
 
 
(1) Japan-China summit: Japan-China relations at turning point 
(2) Government tax council's recommendations: Ruling and opposition 
parties should quickly find common ground 
 
Nikkei: 
(1) Curb on growth and expenditures preconditions for a consumption 
tax hike 
(2) Japan should determine to set "post-Kyoto" target to cut 
greenhouse gas emission 
 
Sankei: 
(1) Japan-China-ROK summit: Prime Minister Fukuda must maintain 
Japan's basic stance of resolving pending issues 
(2) IPCC report: No time for preventing global warming 
 
Tokyo Shimbun: 
(1) Government tax council's proposals: How will the government 
secure public understanding? 
(2) National Consumer Affairs Center: The center should be 
strengthened rather than scaled down 
 
Akahata: 
(1) Government tax council's recommendations: Government, ruling 
coalition should give up consumption tax hike 
 
SCHIEFFER