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RUCNDT/USMISSION USUN NEW YORK 7094

UNCLAS SECTION 01 OF 07 TOKYO 005337 
 
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//07 
 
 
(1) METI eyes new legislation to create secret patent system for 
preventing technology outflow (Nikkei) 
 
(2) Upper and Lower House steering committee chairmen launch setting 
rules for panels to examine the Constitution; DPJ may strongly react 
(Yomiuri) 
 
(3) Government to buy emissions credit from Hungary in first trading 
(Asahi) 
 
(4) TOP HEADLINES 
 
(5) EDITORIALS 
 
(6) Prime Minister's schedule, November 21 (Nikkei) 
 
ARTICLES: 
 
(1) METI eyes new legislation to create secret patent system for 
preventing technology outflow 
 
NIKKEI (Top play) (Abridged slightly) 
November 26, 2007 
 
The Ministry of Economy, Trade, and Industry (METI) has begun 
discussions on establishing a new law incorporating comprehensive 
measures to prevent the outflow of important technology. A key 
element would be the introduction of a secret patent system that 
would keep technologies with military applications from going 
public. METI specifically plans to make exceptions to the patent 
disclosure rule to prevent foreign governments, enterprises, and 
terrorists from viewing specific information. It will also consider 
increasing criminal punishment for leaking information. The purpose 
is to forestall situations that would undermine Japan's national 
security and industrial competitiveness. 
 
The ministry has set up a study group consisting of academics and 
major corporations to discuss ways to better protect information 
held by the government, companies, and universities. It hopes to 
submit a bill to a regular Diet session in 2009. 
 
Currently the contents of a patent in Japan must be made public 18 
months after filing an application. This is to prevent other 
corporations or individuals from conducting overlapping work. 
Technologies using advanced materials with possible military 
applications can easily be accessed through the Industrial Property 
Digital Library (IPDL) on the Internet and other means. 
 
Such countries as the United States, Britain, France, and Germany 
have secret patent frameworks that keep national security-connected 
technologies from the public eye. In the United States, the head of 
the Patent and Trademark Office determines whether a technology 
should be made secret after a patent application is filed. Once 
patents are designated as secrets, the government provides monetary 
compensation to patent holders in lieu of licensing fees that would 
otherwise receive by letting others use the patents. 
 
Japan used to have a similar system before World War II, but was 
abolished in 1948. METI believes that such a system is now necessary 
enabling the Japan Patent Office to consult with the Ministry of 
Defense (MOD) to decide which technologies should be kept secret. 
 
 
TOKYO 00005337  002 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
METI also hopes to strengthen criminal penalties for leaking 
information. Currently such acts are only punishable for theft of 
paper and personal computers. Leaking trade secrets that are defined 
as information helpful to business activities is treated as a crime 
under the Unfair Competition Prevention Law. However, no charges 
have actually been filed under the law. The ministry plans to 
closely examine information that should be protected in order to 
incorporate comprehensive criminal penalties for obtaining and 
leaking protected information in the envisaged new law. 
 
In addition, the ministry is considering making secret the results 
of research that the government out-sources to the private sector if 
it contains sensitive information. Another proposal is to allow some 
criminal trials to be held behind closed doors because some 
companies that have suffered leaks of trade secrets are reluctant to 
go to court due to concerns that more information would become 
public. 
 
Judging that there are limitations to dealing with the matter by 
just revising existing laws, METI has begun discussions on 
establishing a new law incorporating regulations to stop information 
leakages, while considering revising the Unfair Competition 
Prevention Law. Bases on public opinion, how to determine the kinds 
of information that must be protected and acts constituting illicit 
leakages would be subjects for future talks. 
 
(2) Upper and Lower House steering committee chairmen launch setting 
rules for panels to examine the Constitution; DPJ may strongly 
react 
 
YOMIURI (Page 4) (Full) 
November 24, 2007 
 
Although a panel to examine the Constitution was set up in each Diet 
house based on the Referendum Law to set procedures for 
constitutional amendments, the constitutional examination councils 
have not functioned because the number of panel members and other 
specifics were not set. Now, however, the steering committee 
chairmen of the two Diet houses have initiated setting rules for 
examining the Constitution for deciding the number of panel members 
and procedures. Specific work for the panels has just started three 
months after their establishment. Since there still remains a view 
opposing constitutional amendments in the main opposition party 
Democratic Party of Japan (DPJ or Minshuto), there are still 
hindrances to the panels getting started. 
 
House of Representatives Steering Committee Chairman Takashi 
Sasagawa, a member of the ruling Liberal Democratic Party (LDP), 
requested House of Councillors Steering Committee Chairman Takeo 
Nishioka, a DPJ member, on Nov. 20 that the two Diet chambers 
establish rules for examining the Constitution around the same time. 
The LDP's aim was to secure understanding from the DPJ since the 
largest opposition party had insisted that the two Diet houses 
should fall in step in starting constitutional debate. 
 
Following this, Nishioka stated in an Upper House Steering Committee 
meeting on Nov. 22: "Mr. Sasagawa requested the Upper and Lower 
House start deliberating the matter around the same time." He told 
the press the same day: "For example, we set up a joint panel (for 
the purpose of dealing with) appointments requiring approval of the 
two houses of the Diet. This is one such example." He took a 
positive stance of responding to Sasagawa's proposal. 
 
TOKYO 00005337  003 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
 
The constitutional panels were set up in August at the extraordinary 
Diet session based on the Referendum Law stipulating procedures for 
amending the Constitution. The law was enacted in May. But since the 
DPJ and other opposition parties did not respond to consultations on 
formulating rules for the composition of the panels and operations, 
the abnormal situation has continued with the panels being legally 
set up, but still not functioning. Although the ruling coalition had 
called on the opposition camp to set rules during the current Diet 
session, the opposition camp remained opposed to the ruling bloc's 
proposal, citing that the situation has not been consolidated for a 
debate since the Referendum Law came into effect following the 
ruling coalition's ramming the vote through the Diet. 
 
With the Diet Steering Committee chairmen having taken a positive 
action, many LDP lawmakers are greatly looking forward to the 
constitutional panels getting started. The DPJ has not set up its 
own constitutional research panel since the new party leadership was 
formed in August. Therefore, should rules for the constitution 
panels and the number of panel members be decided during the ongoing 
Diet session, the possibility is strong that real discussion will 
not occur before the regular Diet session next year. 
 
The LDP had envisioned that it would begin debate on constitutional 
amendments at the current session and that it would propose 
constitutional reform in a Diet session in 2010, when the Referendum 
Law goes into operation. A senior LDP member commented: "Our 
schedules will inevitably be delayed." This view is dominant in the 
party. 
 
(3) Government to buy emissions credit from Hungary in first 
trading 
 
ASAHI (Top Play) (Slightly abridged) 
November 26, 2007 
 
In an effort to achieve the nation's target to reduce greenhouse gas 
emissions under the Kyoto Protocol, Japan has decided to purchase 
emissions credit from the Hungarian government. This will be the 
first government-to-government emissions trading for Japan. The 
government will engage in negotiations with the aim of buying in 
2008 up to a quantity equivalent to 10 million metric tons of carbon 
dioxide (CO2). To play up a positive stance about reducing CO2, the 
government intends to limit the use of the money paid to Hungary to 
projects designed to protect the environment. 
 
Trading of emissions quotas is one of the mechanisms set up under 
the Kyoto Protocol. According to a government source, 
representatives from Japan and Hungary will sign a memorandum in 
Budapest this week. Later, both sides will determine for what 
Hungary should use the money to be paid by Japan. Installing solar 
panels on roofs is reportedly one of the cited projects. 
 
The Kyoto Protocol requires Japan to reduce greenhouse gas emissions 
between 2008 and 2012 by 6 PERCENT  from 1990 levels. Only with 
energy-conservation and other domestic measures will it be 
impossible for Japan to attain the target, with the nation's actual 
emissions estimated to be 1.6 PERCENT  or about 100 million tons 
higher than what is needed to meet its obligation. The government 
intends to make use of the Kyoto mechanism to cover this estimated 
shortfall. Japanese firms have so far acquired emissions rights by 
investing in projects aimed to reduce emissions in developing 
 
TOKYO 00005337  004 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
countries under the so-called Clean Development Mechanism (CDM). 
 
Hungary is also obligated to lower its greenhouse gas emissions to a 
level 6 PERCENT  below 1990 levels. But because the heavy chemical 
industry sector remained stagnant during the transition period from 
socialism to a market economy, its emissions are expected to be 
about 100 million tons less than the targeted amount discharged. 
 
The Japanese government anticipates Hungary will sell about 10 
million of the 100 million tons in 2008. With reference to the 
prices of emissions rights traded between companies in the European 
Union (EU), the government calculates the price of 10 million tons 
at 20 billion yen. 
 
Besides Hungary and other East European countries, Russia also 
expects to see its emission quota surplus reaching several billion 
tons. Reportedly, Australia and Holland are making approach to 
Hungary, while Holland and Denmark are making contact with 
Czechoslovakia. Japan is also pushing ahead with negotiations with 
Czechoslovakia and Poland. 
 
Government approach may blunt emissions-cut efforts 
 
(Commentary) 
 
The aim of the Japanese government's decision to purchase greenhouse 
gas emission quotas is to lower the cost needed to attain its target 
by increasing options to acquire emissions quotas. There are 
abundant surplus emissions quotas in Russia and East European 
countries, so the government expects to purchase such quotas cheaper 
than on the market for trading between companies in the EU. Such an 
approach by the Japanese government, however, may lead to bringing 
down prices for emissions rights and eventually to blunting 
reduction efforts by countries and companies. 
 
The Kyoto Protocol, concluded in 1997, assumes that such large gas 
emitters as the United States, Japan and Canada will be "buyers" 
under the Kyoto mechanism. But the US and Australia have withdrawn 
from the protocol, and Canada has also given up meeting its target. 
As of now, emissions rights for about 2.5 billion tons have been 
offered for trading under the CDM, but the emissions quota surplus 
of Russia alone is estimated to be 4 to 6 billion tons. A government 
source said that if all these emissions rights are offered for 
trading, countries will be able to attain their respective targets 
only by purchasing surplus emissions rights." 
 
The CDM is a positive arrangement that contributes to reducing 
greenhouse gas emissions, but purchasing surplus emissions rights is 
likely to come under fire as a negative approach to reduce 
emissions. 
 
If a number of countries meet their targets by purchasing surplus 
quotas from Russia or East Europe, many observers might think the 
reduction targets were set too low in the Kyoto Protocol. There 
might also be some impact in discussion on a post-Kyoto framework at 
the 13th session of the Conference of the Parties to the UN 
Framework Convention on Climate Change in Indonesia next month. 
 
(4) TOP HEADLINES 
 
Asahi: 
Japan to purchase greenhouse gas emission quotas from Hungary 
 
TOKYO 00005337  005 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
 
Mainichi: 
Restrictions on mail delivery business to be lifted 
 
Yomiuri: 
LDP eyes solatium for AUM victims 
 
Nikkei: 
METI eyes secret patents to protect sensitive technologies 
 
Sankei: 
Moriya may have involved in prohibited reporting to Air Staff Office 
on CX engine selection process 
 
 
Tokyo Shimbun: 
Moriya spoke favorably of Mirise for two months for concluding 
discretionary contract 
 
Akahata: 
Annual medical fees on people over 75 at 84,288 yen, 10,000 yen over 
MHLW's estimate 
 
(5) EDITORIALS 
 
Asahi: 
(1) Let us foster sixth industry: Proposals for hopeful society 
(Part 5) 
 
Mainichi: 
(1) Major banks not the only victims of subprime crisis 
(2) High school equivalency test: Enthusiasm for educational reform 
essential 
 
Yomiuri: 
(1) Japan lags in ability to fight infectious diseases 
(2) Tokyo must make efforts for maintaining strategic relationship 
with Australia that elected new prime minister 
 
Nikkei: 
(1) Focus on regime change in Australia after 11 years of 
conservative rule 
(2) WTO talks must go on 
 
Sankei: 
(1) College education system needs fundamental reform 
(2) Success of tightened immigration checks takes understanding and 
cooperation 
 
Tokyo Shimbun: 
(1) ROK presidential race and North Korean nuclear issue 
(2) Tele-work can create jobs 
 
Akahata: 
(1) Sympathy budget must be abolished 
 
(6) Prime Minister's schedule, November 21 
 
NIKKEI (Page 2) (Full) 
November 22, 2007 
 
Morning 
 
TOKYO 00005337  006 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
Attended ASEAN summit held at Shangri-La Hotel in Singapore. Met 
with Singaporean Prime Minister Lee Hsien Loong. Met afterwards with 
Singh. Held informal meeting with reporters accompanying him. 
 
Noon 
Had luncheon with East Asia summit leaders. 
 
Afternoon 
Attended East Asia summit. 
 
Evening 
Attended joint signing ceremony. Met with Burma's Prime Minister 
Thein Sein. Met Japanese and foreign correspondents at Four Seasons 
Hotel. 
 
Night 
Attended dinner party hosted by Singaporean President Nathan and his 
wife at Istana Palace. Departed Singapore International Airport on 
government plane. 
 
Prime Minister's schedule, November 22 
 
NIKKEI (Page 2) (Full) 
November 23, 2007 
 
06:26 
Arrived at Haneda Airport from Singapore on government plane. 
 
07:13 
Arrived at his private residence in Nozawa. 
 
12:42 
Singed in to report his return at Imperial Place. 
 
13:00 
Met at Kantei with Chief Cabinet Secretary Machimura, joined by LDP 
Secretary General Ibuki. 
 
SIPDIS 
 
14:01 
Held one-on-one meeting with New Komeito leader Ota, DPJ President 
Ichiro Ozawa, JCP Chairman Shii, DPJ Chairperson Fukushima, PNP head 
Watanuki, attended by Ibuki and Machimura. 
 
17:16 
Attended Cabinet meeting. Met with Health Minister Masuzoe. 
 
18:48 
Returned to his private residence. 
 
Prime Minister's schedule, November 23 
 
NIKKEI (Page 2) (Full) 
November 24, 2007 
 
Morning 
Spent at his private residence in Nozawa. 
 
15:19 
Paid respects for the late Takami Eto, former management and 
coordination agency chief, at his residence. 
 
15:58 
 
TOKYO 00005337  007 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//07 
 
Met at his official residence with Administrative Reform Minister 
Watanabe. 
 
17:40 
Attended Harvest Festival at Imperial Palace. 
 
20:55 
Return to his private residence. 
 
Prime Minister's schedule, November 24 
 
NIKKEI (Page 2) (Full) 
November 25, 2007 
 
He spent time at his private residence in Nozawa. 
 
Prime Minister's schedule, November 25 
 
NIKKEI (Page 2) (Full) 
November 26, 2007 
 
He spent time at his private residence in Nozawa. 
 
DONOVAN