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UNCLAS SECTION 01 OF 12 TOKYO 005388 
 
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 11/30/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Diet in turmoil: 
4) New antiterrorism bill to allow MSDF refueling to continue in the 
Indian Ocean finally being deliberated in the Upper House committee, 
but outlook is bleak (Mainichi) 
5) With new MSDF refueling bill facing gridlock, proposal floated to 
let Lower House speaker use his good offices to try to broker a 
resolution (Nikkei) 
6) Japanese Communist Party throws monkey wrench into DPJ's strategy 
by balking at the summoning of Finance Minister Nukaga as a sworn 
witness (Mainichi) 
7) Growing mood of caution in the ruling camp about re-extending the 
Diet session in order to force passage of the antiterrorism bill 
(Mainichi) 
 
Political voices: 
8) Shoichi Nakagawa forms new lawmakers' study group to bring 
conservative forces together in the Diet (Mainichi) 
 
Defense scandal deepens: 
9) Former Vice Defense Minister Moriya, now under arrest, used clout 
to land Yamada Corp. a contract for GSDF equipment at a padded price 
(Mainichi) 
10) Moriya even arranged meeting with GE executives in order to 
steer engine contract to his favorite defense equipment trader 
(Yomiuri) 
11) Defense contractor Yamada Corp. pumped 100 million yen into a 
defense policy experts group (Asahi) 
12) Former Pentagon Japan desk director James Auer, in Tokyo, once 
more denies ever having dinner with former defense chief Nukaga, as 
DPJ charges (Sankei) 
 
Defense secrets issue: 
13) US protest about leakage of secrets led MSDF to halt inspection 
of Aegis vessel by visiting Chinese military brass (Yomiuri) 
14) Government considering new secrets protection law that would 
apply to civilians, as well as government and military personnel 
(Sankei) 
 
15) Government's policy stance on North Korea's nuclear plan report 
requires inclusion of uranium enrichment project, as well (Yomiuri) 
 
 
Environmental protection aid: 
16) Japan, China to establish environment fund that would replace 
yen loans (Mainichi) 
17) Government introducing new environmental-protection scheme in 
Indonesia's aid package (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Yamada Corp. provides 100 million yen to group linked with lawmakers 
engaged in defense policies 
 
 
TOKYO 00005388  002 OF 012 
 
 
Mainichi: 
Former Vice-Defense Minister Moriya suspected of influencing 
contracts for Ground Self-Defense Force equipment 
 
Yomiuri: 
Moriya suggests General Electric be picked for supplier of destroyer 
engines 
 
Nikkei: 
Japan Post plans to cut 24,000 jobs, or 10 PERCENT  of entire 
payrolls, in four and half years 
 
Sankei: 
Justice Ministry to announce names of executed death row inmates 
 
Tokyo Shimbun: 
Moriya allowed Nihon Mirise representative to attend CX meeting 
 
Akahata: 
Kyuma ordered 12 discretionary contracts during his tenure as 
defense chief 
 
2) EDITORIALS 
 
Asahi: 
(1) Agreement reached between ruling and opposition blocs to 
disclose political funds 
(2) Port call by Chinese naval vessel: First step toward new 
history 
 
Mainichi: 
(1) We want to hear former Prime Minister Koizumi's comment on 
Moriya's crime 
(2) Political Funds Control Law must be revised speedily to 
eliminate loopholes 
 
Yomiuri: 
(1) Don't summon witnesses just to ling mud 
(2) Middle East peace talks: U.S. role most important 
 
Nikkei: 
(1) Middle East peace talks test U.S. leadership 
(2) Agreement on political funds a huge step forward 
 
Sankei: 
(1) Nukaga's testimony requires second thought 
(2) Apply pressure on Russia for return of Northern Territories 
 
Tokyo Shimbun: 
(1) Politics and money: Greater transparency essential 
(2) Postal delivery services: Give full consideration to depopulated 
areas 
 
Akahata: 
(1) Redeployment of SDF must not be allowed 
 
3) Prime Minister's schedule, November 29 
 
NIKKEI (Page 2) (Full) 
November 30, 2007 
 
09:28 
 
TOKYO 00005388  003 OF 012 
 
 
Met at Kantei with METI Minister Amari and Vice METI Minister 
Kitabata. 
 
10:01 
Met with Welfare Minister Masuzoe. Met later with Lower House 
members Mitsuo Horiuchi and Yoshitaka Murata. 
 
11:02 
Met with Economic and Fiscal Policy Minister Ota. 
 
13:00 
Attended convention of the Central Federation of Societies of 
Commerce and Industry held in NHK Hall. 
 
14:52 
Met at Kantei with Chief Cabinet Secretary Machimura. Met afterwards 
with Internal Vice Defense Minister Masuda, followed by Deputy Chief 
Cabinet Secretary Futahashi. 
 
16:07 
Met Nikkei columnist Yasuhiro Tase at LDP headquarters to have a 
talk, which will be put in the party's organ paper's New Year's 
issue. 
 
17:22 
Met at Kantei with Internal Affairs Minister Masuda, followed by 
Vice Foreign Minister Yachi and Assistant Deputy Chief Cabinet 
Secretary Ando. 
 
SIPDIS 
 
19:26 
Returned to his private residence Nozawa. 
 
4) Upper House Defense Committee begins discussing new antiterrorism 
legislation 
 
MAINICHI (Page 2) (Full) 
November 30, 2007 
 
The House of Councillors Foreign Affairs and Defense Committee began 
yesterday deliberating on the new antiterrorism special measures 
bill to resume the Maritime Self-Defense Force's refueling operation 
in the Indian Ocean. Given the arrest the previous day of former 
Administrative Vice-Defense Minister Takemasa Moriya, the session 
has taken on an aspect of pursuing suspicions involving the Defense 
Ministry. In the House of Representatives, deliberations were 
conducted at a special committee. The Upper House Foreign Affairs 
Committee is originally a venue to discuss diplomatic issues, such 
as North Korea policy. If the pursuit of allegations drags on, 
deliberations on mounting pending issues might be left behind. 
 
"The matter of top concern was supposed to be what Prime Minister 
Fukuda discussed with President Bush in the summit (on Nov. 15) 
regarding the abduction issue." Thus an Upper House Liberal 
Democratic Party member indicated that the committee is supposed to 
discuss such diplomatic issues as how the question of Japanese 
nationals abducted by the North was discussed at the summit and a 
response to the United States' move to delist North Korea as a state 
sponsor of terrorism. 
 
The ruling camp intends to urge strongly the Democratic Party of 
Japan (Minshuto or DPJ) to come up with a counterproposal to the new 
antiterrorism legislation. The DPJ, however, is certain to find it 
 
TOKYO 00005388  004 OF 012 
 
 
difficult to produce a unified view. There is no prospect that the 
largest opposition party can submit a counterproposal to the Diet in 
the current session. 
 
5) Proposal being floated for breaking Diet deadlock over new 
antiterrorism bill by using good offices of Lower House speaker and 
Upper House president; Ruling and opposition camps worried about 
early Lower House dissolution 
 
NIKKEI (Page 2) (Excerpts) 
November 30, 2007 
 
In connection with a bill to resume the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean, the notion being 
floated is to seek a breakthrough in the standoff by using the good 
offices of House of Representatives Speaker Yohei Kono and House of 
Councillors President Satsuki Eda. This is because the Dec. 15 
closing of extended current Diet session is approaching with no 
prospect for a solution in sight. Due to the divided Diet, 
deliberations on the new antiterrorism bill have not been moved 
ahead, and all those involved appear to be concerned about public 
criticism of Diet management erupting. 
 
Chief Cabinet Secretary Nobutaka Machimura stated in a press 
conference yesterday: "(Passing the bill before the end of the Diet 
session) is the highest priority." In the backdrop of his remark is 
the fact that an early resumption of the MSDF refueling operation 
has become Japan's commitment to the United States since Prime 
Minister Fukuda pledged it in his summit with President George W. 
Bush. 
 
Meanwhile, Ichiro Ozawa, president of the main opposition Democratic 
Party of Japan (DPJ or Minshuto), when asked yesterday on a TV Asahi 
program about his view on the possible timing of a dissolution of 
the Lower House for a general election, replied y: "What will happen 
with the new antiterrorism bill will become the criterion for making 
a decision." When asked whether his party would submit a censure 
motion against the prime minister, he emphasized: "It depends on 
whether the (ruling camp) will ram the bill through the Diet by 
extensively extending the session." 
 
Contrary to the standoff between the ruling and opposition camps, 
the fact that the two sides want to avoid an early dissolution of 
the Lower House has complicated the matter. The reason is that 
neither camp is fully prepared for the next Lower House election and 
able to read public opinion. 
 
Against the backdrop of growing expectations for using the good 
offices of the Lower House speaker and Upper House president, there 
is a hidden motive that the occasion will propel the ruling and 
opposition blocs to find common ground. The Lower House speaker and 
Upper House president are expected to urge the secretaries general 
of the ruling and opposition parties to speed up deliberations on 
the new antiterrorism bill. 
 
6) DPJ plunging into confusion over requiring Nukaga's testimony, 
and is now drawing fire from PNP; JCP admits decision was mistake 
 
MAINICHI (Page 2) (Excerpts) 
November 30, 2007 
 
The opposition bloc previously unilaterally decided to demand Diet 
 
TOKYO 00005388  005 OF 012 
 
 
testimony by Finance Minister Fukushiro Nukaga and forcer 
Administrative Vice-Defense Minister Takemasa Moriya (in connection 
with the defense procurement scandal). The Japanese Communist Party 
admitted yesterday that this decision was a mistake, with the 
party's Diet Affairs Committee Chairman Keiji Kokuta saying, "The 
unanimity rule must be upheld." This has charge up the ruling camp, 
as seen in an Upper House Liberal Democratic Party executive's 
comment: "Such is natural. The Democratic Party of Japan will have 
to lower its fist and postpone the planned Diet testimony." The 
future of the planned Diet testimony over Nukaga's alleged presence 
at a dinner party, along with a former defense contractor executive, 
is becoming even murkier, fueled by the arrest of Moriya. 
 
The Upper House Finance Affairs Committee has 25 directors: 13 seats 
going to the DPJ, 9 to the LDP, 2 to the New Komeito, and 1 to the 
JCP. Even if the JCP changes its stance, the decision will remain 
unchanged. The DPJ parliamentary group in the Upper House has 119 
members. In order for it to secure a majority (122 persons), it 
needs the cooperation of the JCP (7) or the Social Democratic Party 
(5). 
 
Although the JCP admitted the mistake, Chairman Kazuo Shii also 
indicated that if the testimony was to be conducted on Dec. 3., as 
scheduled, his party would not boycott it. At the same time, Shii 
said, "The Diet testimony should not be carried out forcibly." 
Shizuka Kamei, deputy representative of the People's New Party, 
which forms the Upper House parliamentary group with the DPJ, also 
told the press in a critical tone in the Diet building: "What would 
happen if the House of Representatives (which is controlled by the 
ruling bloc) unilaterally decided on Diet testimony? Such a thing 
should not be carried out in either chamber." 
 
Given the situation, a senior DPJ Lower House Diet Affairs Committee 
member complained: "Discord among the opposition parties would make 
it difficult to conduct the planned Diet testimony." The DPJ 
initially planned to summon Nukaga and Moriya at the same time to 
let them lock horns over the gap in their views on Nukaga's presence 
at the dinner party. The DPJ's plan has now fallen through due to 
Moriya's arrest. 
 
7) Some in ruling bloc cautious about re-extending the current 
session of Diet, out of concern for a possible dissolution of Lower 
House 
 
MAINICHI (Page 5) (Excerpts) 
November 30, 2007 
 
Hirofumi Oniki 
 
Coordination is underway in the government and the ruling parties, 
which are trying to enact into law during the current session of the 
Diet a new antiterrorism special measures bill, to re-extend the 
current Diet session, which is to close on Dec. 15. But some in the 
ruling bloc are against re-extending the session, out of fear that a 
re-extension of the Diet session could lead to dissolving the Lower 
House for a snap general election. With a confrontational mood 
growing between the ruling and opposition blocs as to whether to 
summon as witnesses to the Diet former Administrative Vice Defense 
Minister Takemasa Moriya, who was involved in the bribery case, and 
Finance Minister Fukushiro Nukaga, who is alleged to have been 
present at a dinner party in dispute, it is becoming increasingly 
uncertain what will happen in the Diet in the days ahead. 
 
TOKYO 00005388  006 OF 012 
 
 
 
"There is no call for starting over again from the beginning. It's 
not too much to say that passing the (new antiterror bill) into law 
is an absolute must for the Fukuda cabinet," Chief Cabinet Secretary 
Nobutaka Machimura said at a press briefing yesterday and 
highlighted his resolve to enact the bill into law during the 
current Diet session. 
 
Meanwhile, the major opposition Democratic Party of Japan (DPJ) and 
other opposition parties have given priority to throwing light on 
the allegations involving Moriya and Nukaga. At a board meeting 
yesterday of the Upper House Committee on Foreign Affairs and 
Defense, the ruling coalition sought to start a question-and-answer 
session on Dec. 4, but the DPJ and other opposition parties insisted 
on questioning outside of the Diet suspect Motonomu Miyazaki, a 
former executive of the defense trading firm Yamada Corp. As a 
result, no agreement was reached between both sides. 
 
With a growing confrontational mood between the ruling and 
opposition blocs, some in the ruling parties are becoming cautious 
about re-extending the Diet session in order to avoid the case of 
suddenly dissolving the Lower House for a snap general election as 
(DPJ President Ichiro Ozawa has mentioned) a "sudden dissolution of 
the Lower House." The ruling Liberal Democratic Party's (LDP) 
Tsushima faction's Chairman Yuji Tsushima noted at his faction's 
 
SIPDIS 
general meeting yesterday: "A budget bill must be created and 
passed. I hope (the prime minister) will keep this point in mind in 
managing the Diet." Tsushima thus indicated caution about broadly 
extending the Diet session on the grounds that another round of 
extension of the Diet session could affect the process of compiling 
a budget bill for 2008. 
 
One senior member of the junior coalition partner New Komeito also 
noted, "The current Diet session should be closed as scheduled and 
then we should start over again from the beginning in the upcoming 
ordinary session of the Diet." Another senior New Komeito member 
suggested: "It may be a good idea to give time to the DPJ so that it 
can come up with a counterproposal." 
 
8) LDP's Shoichi Nakagawa holds a charter meeting of group rallying 
together conservatives 
 
MAINICHI (Page 5) (Excerpts) 
November 30, 2007 
 
Eriko Horii 
 
The ruling Liberal Democratic Party's (LDP) former Policy Research 
Council Chairman Shoichi Nakagawa and other lawmakers yesterday held 
a charter meeting in the Diet of a new study group aimed at rallying 
conservative forces together. Joining the meeting were 23 LDP 
lawmakers and former Minister of Economy, Trade and Industry Takeo 
Hiranuma, who left the LDP in opposition to the privatization of the 
postal services. Ahead of the first meeting of the study group 
slated for Dec. 4, Nakagawa and Hiranuma were chosen as chairman and 
supreme advisor respectively. Because the core members of the study 
group are those lawmakers who backed up former LDP Secretary General 
Taro Aso in the September LDP presidential election, some in the LDP 
are alert to the move of the study group with one member saying, 
"The group may aim to discourage the Fukuda administration." 
 
In the meeting, Nakagawa said: "We must not forget what all of us 
 
TOKYO 00005388  007 OF 012 
 
 
said several months ago 'we should do.'" He indicated his intention 
to work hard to translate such policies as revitalization of 
education into action in line with the "departure from the postwar 
regime" as called for by former Prime Minister Shinzo Abe. Nakagawa 
also noted: "I will give full support to Prime Minister Yasuo Fukuda 
and the party executives, including Secretary General Bunmei 
Ibuki." 
 
The lawmakers who attended the founders' meeting were as follows: 
 
LDP 
 
House of Representatives members: 
Yasuhide Nakagawa, Yasutoshi Nishimura, and Koichi Hagiuda from the 
Machimura faction; Taimei Yamaguchi and Toru Toida from the Tsushima 
faction; Yoshihisa Furukawa from the Yamasaki faction; Shoichi 
Nakagawa, Keiji Furuya, Toshio Kojima, Kiyoshi Ono and Kenta 
Matsunami from the Ibuki faction; Kentaro Sonoura from the Aso 
faction; and Yoshinobu Shimamura, Kenichi Mizuno, and Yoji Muto 
from, who are not members of any faction. 
 
House of Councilors members: 
Nobuto Kishi and Shoji Nishida from the Machimura faction; Yoshio 
Nakagawa, Tsukasa Akimoto and Seiichi Eto from the Ibuki faction; 
and Yoshitada Konoike, Katsuhito Asano and Ichiro Tsukada from the 
Aso faction. 
 
Independent 
House of Representatives member: Takeo Hiranuma 
 
9) Moriya may have given favors to Yamada subsidiary regarding GSDF 
equipment, forcing agency to conclude discretionary contract for 
price 300 million yen higher than plan 
 
MAINICHI (Top play) (Excerpts) 
November 30, 2007 
 
It was discovered that former Administrative Vice-Defense Minister 
Takemasa Moriya, 63, who has been arrested on suspicion of taking 
bribes, in 2005 instructed his subordinate to procure devices for 
the Ground Self-Defense Forces' biological reconnaissance vehicles 
from a subsidiary of Yamada Corp., a trading house specializing in 
defense equipment. Moriya allegedly pressed the subordinate, who was 
trying to consider procuring the devices from a different trading 
firm, by telling him to conclude a discretionary contract with the 
Yamada subsidiary and forced the then Defense Agency to purchase 
them for over 1.5 billion yen, 300 million yen higher than the 
planned budget. Aware of the sequence of such events, the special 
investigation squad of the Tokyo District Prosecutors Office seems 
to be pursuing the case, believing that Moriya did a favor for 
Yamada in return for being treated to free golf. 
 
The device is designed to detect biological agents, such as anthrax. 
According to sources familiar with the case, the GSDF and the former 
Defense Agency Planning Division decided in 2003 to purchase 
equipment made by Smiths Detection of Britain, for which Yamada's 
subsidiary Nihon U.I.C. was serving as the Japanese agent, and 
earmarked in its fiscal 2004 budget approximately 1.23 billion yen 
for four sets of the devices. 
 
But in around November 2004, the subsidiary demanded a price hike, 
citing changes in design. As a result, the official in charge tried 
 
TOKYO 00005388  008 OF 012 
 
 
to look for products by a different manufacture. Learning of such a 
move, Moriya in around February 2005 told the official, "The 
decision has already been made, so why don't you conclude a 
discretionary contract?" The planned study was cancelled, and in 
March 2005 the agency concluded a discretionary contract for about 
1.53 billion yen. 
 
10) Moriya suspected of providing favors to defense contractor in 
connection with destroyer engine, suggesting procurement of GE-made 
product; Arranges meeting with executives of GE, responding to 
Miyazaki request 
 
YOMIURI (Top Play) (Lead para.) 
November 30, 2007 
 
Yomiuri Shimbun has learned that Takemasa Moriya (63), the former 
administrative vice defense minister who was arrested on the charge 
of bribery involving procurement of defense equipment, once arranged 
a meeting with executives of General Electric of the US, which was a 
candidate supplier of engines for the Maritime Self-Defense Force's 
next-generation destroyer, responding to a request from Motonobu 
Miyazaki (69), former executive director of Yamada Yoko, a defense 
contractor. The meeting took place in December last year, a time 
when Miyazaki was maneuvering to become GE's agent, after leaving 
Yamada Yoko (to form his own company). After the meeting Moriya made 
a remark to his subordinates using a tone that could be taken as 
persuading them to introduce GE products. The special investigation 
squad of the Tokyo District Public Prosecutors Office is now 
investigating the case, suspecting that Moriya gave business favors 
to Miyazaki in return for his entertaining him with golf outings. 
 
11) Yamada Yoko suspected of paying 100 million yen to organization 
headed by organization headed by member of defense policy clique in 
Diet: Paper recording payment for cooperation for receiving of order 
for disposing of poisonous gas shells 
 
ASAHI (Top Play) (Excerpts) 
November 30, 2007 
 
Asahi Shimbun has obtained as of Nov. 29 a document indicating that 
Yamada Yoko, a trading house specializing in military procurement, 
paid a total of 900,000 dollars (approximately 100 million yen) as 
cooperation expenses to a US organization connected to Naoki 
Akiyama, permanent director of Japan-US Center for Peace and 
Cultural Exchange (Japan-US CPCE), in connection with the receiving 
of an order for the work of disposing of poisonous gas shells 
abandoned by the former Imperial Japanese Army. A Yamada Yoko source 
familiar with this circumstance said that Yamada Yoko prepared the 
document. 
 
In connection with the alleged embezzlement of corporate funds by 
former Yamada Yoko executive director Motonobu Miyazaki (69), 
rearrested on suspicion of giving bribes to former Administrative 
Vice Defense Minister Takemasa Moriya (63), the special 
investigation squad of the Tokyo District Public Prosecutors Office 
is searching the office of the Japan-US CECE, where Miyazaki served 
as director until last year. Public prosecutors are reportedly 
keeping close tabs on the flow of funds involving the Japan-US CECE, 
where influential defense policy specialist lawmakers have served as 
director. Responding to a request for an interview by an Asahi 
Shimbun reporter, Akiyama replied in writing that there was no such 
payment. This news paper also sent a questionnaire in writing to 
 
TOKYO 00005388  009 OF 012 
 
 
Yamada Yoko, but there was no reply. 
 
12) James Auer: Nukaga was not present (at dinner along with 
Moriya) 
 
SANKEI (Page 5) (Full) 
November 30, 2007 
 
James E. Auer, a former U.S. Defense Department Japan Desk director, 
yesterday held a press conference at Liberal Democratic Party (LDP) 
headquarters in Nagatacho, Tokyo, in which he said that Finance 
Minister Fukushiro Nukaga was not present at a dinner party along 
with former Vice Defense Minister Takemasa Moriya, which was held on 
Dec. 4 last year at the Japanese restaurant Hamadaya in Ningyocho, 
Tokyo. 
 
Auer said that he was invited to the dinner by Keiichi Manda, 
director of the international relations association. He then stated: 
"I met Mr. Nukaga in his office but I have never had dinner, lunch, 
or breakfast with him." 
 
Asked about Moriya's testimony before the Diet that Nukaga joined 
the dinner, Auer said: "I don't know about that. Why don't you ask 
Mr. Moriya?" As to the question of whether the topic of the 
procurement of defense equipment came up during the dinner, he 
stated: "My specialty is defense policy. So I don't know about 
equipment at all." 
 
13) MSDF canceled plan to show Aegis ship to Chinese military due to 
U.S. protest 
 
YOMIURI (Page 1) (Abridged) 
November 30, 2007 
 
The Maritime Self-Defense Force cancelled its plan to invite Chinese 
military personnel to tour its Aegis ship because of a protest from 
U.S. Forces Japan and others concerned, sources revealed yesterday. 
The Chinese military personnel are crewmen aboard a warship that is 
making a port call in Japan as part of defense exchanges between 
Japan and China. The MSDF planned to show the Kirishima, a 7,250-ton 
Aegis-equipped vessel, to the Chinese military. The U.S. military 
was concerned about the possibility of defense-secret leaks. The 
MSDF changed the plan to show a supply ship instead, and the tour 
will take place this morning. 
 
Japan and China held a meeting of their defense ministers in August, 
when the two countries agreed on a mutual visit plan for MSDF and 
Chinese naval vessels. As the first Chinese warship to visit Japan, 
the Shenzhen, a 6,000-ton missile destroyer of the Chinese navy with 
350 crewmen onboard, arrived at Tokyo's Harumi pier on Nov. 28. 
 
The Shenzhen is scheduled to stay in Japan until Dec. 1. The 
commanding officer and more than a dozen naval brass officers aboard 
the visiting Chinese warship are scheduled to visit the MSDF's 
Yokosuka District Headquarters in the city of Yokosuka, Kanagawa 
Prefecture, on the morning of Nov. 30. They had proposed visiting 
the Kirishima, which is homeported at Yokosuka base and belongs to 
Escort Flotilla 1, on the occasion of their Yokosuka visit. 
 
USFJ and the U.S. Embassy in Tokyo learned of the visit plan on Nov. 
28 and then inquired of the Defense Ministry and the Foreign 
Ministry about the plan and requested them to call it off, according 
 
TOKYO 00005388  010 OF 012 
 
 
to government sources. The Defense Ministry cancelled the Kirishima 
visit and decided to show the group the Tokiwa, a supply ship that 
returned home on Nov. 23 from its Indian Ocean refueling mission. 
 
Commentary: U.S. distrusts Japan over confidentiality 
 
In January this year, an information leakage incident was brought to 
light. In that event, an MSDF member assigned to Escort Flotilla 1, 
an MSDF unit based at Yokosuka, Kanagawa Prefecture, took out 
Aegis-related defense secrets without permission. The United States 
requested Japan to tighten information security. In August, the 
Japanese and U.S. governments concluded a general security of 
military information agreement (GSOMIA). 
 
There were such circumstances in the past. Concerning the Chinese 
naval plan to visit an MSDF Aegis ship, a U.S. diplomatic source 
voiced a growing sense of distrust about Japan's optimistic 
awareness of information security. "The leakage of information about 
an Aegis ship became a problem," the source said. "That's why the 
United States is very nervous," the source added, "so it's 
absolutely unacceptable." 
 
14) Gov't eyes creating new law to protect secrets 
 
SANKEI (Page 2) (Abridged) 
November 30, 2007 
 
With an increasing number of technologies convertible for military 
use, the Ministry of Economy, Trade and Industry is planning to make 
a list of technologies that should not be transferred or publicized, 
officials said yesterday. METI will ask its advisory panel to 
discuss the plan. After that, the government will create a new law 
to protect secrets with increased penalties for public service 
personnel's leakage of secrets and tightened regulations for 
private-sector personnel. The government will present a bill to the 
Diet at its ordinary session in 2009. 
 
Under the current legal system, criminal penalties are imposed on 
public service personnel and nuclear power companies that leak 
defense secrets or nuclear power plant protection secrets. Even in 
the case of those who leak confidential information about 
nuclear-related technologies that can be diverted to military use, 
they will be accused of breaching confidentiality under the National 
Public Service Law. They will only get one year or less. 
 
In the case of leaking information about technologies in the private 
sector, there is no problem even if information concerning national 
security is leaked. METI will set up a study group involving 
scholars and corporate officials. The group will hold its first 
meeting today and will study ways to tighten regulations. 
 
15) Japan intends to call for inclusion of uranium enrichment 
program in DPRK's declaration of its nuclear programs 
 
YOMIURI (Page 2) (Full) 
November 30, 2007 
 
The government yesterday determined its attitude toward the planned 
meeting of the chief representatives to the six-party talks on the 
North Korean nuclear issue slated for early December. Regarding the 
focal issue of North Korea's declaration of its nuclear programs, 
Japan will make it the essential conditions for approval to include 
 
TOKYO 00005388  011 OF 012 
 
 
"extracted plutonium," "nuclear weapons," and "uranium enrichment 
program." The joint statement as agreed on in October of the 
six-party talks states that North Korea should disable its three 
nuclear facilities in Yongbyon and declare all its nuclear programs 
thoroughly and accurately by the end of December. 
 
According to a senior Foreign Ministry official, the process of 
disabling the three nuclear facilities in Yongbyon, where plutonium, 
one material for nuclear bombs, had been extracted, is "going 
smoothly." So attention is now shifting to the contents of the 
declaration of nuclear programs. North Korea is expected to submit a 
list ahead of its declaration of its nuclear programs, but the North 
has reportedly expressed disapproval of including existing nuclear 
weapons in the declaration of nuclear programs. Also, the North has 
not officially admitted to an uranium enrichment program. 
 
16) Japan-China environment fund to be set up to finance projects in 
place of yen loans 
 
MAINICHI (Page 1) (Excerpts) 
November 30, 2007 
 
Beijing, Takuya Otsuka 
 
It has been learned that the governments of Japan and China are 
looking into the possibility of setting up a joint fund to extend 
financial assistance for energy-conservation and 
environmental-protection projects in China.  More than one 
Japan-China diplomatic source revealed the plan. Japan's yen loans 
have thus far financed environmental cooperation to China, but the 
scheme will end this fiscal year. Accordingly, the government will 
secure funds to finance projects with low profitability, as it is 
difficult for private banks to do so. 
 
Tokyo and Beijing want to play up bilateral cooperation at the Lake 
Toya Summit to be held in Hokkaido next year, where global warming 
preventive measures will take the center stage. China's National 
Development and Reform Commission and the Japanese government are 
now undertaking coordination. They are expected to work out concrete 
proposals, including the size of the envisaged fund and their shares 
of funds by the time when Chinese President Hu Jintao visits Japan 
next spring. 
 
Aforestation to prevent desertification and consolidation of 
sewerage systems are envisaged as projects eligible for financial 
assistance. The size of the planned fund is estimated to reach at 
least billions of yen. Chances are that if government-to-government 
talks on joint development of gas fields in the East China Sea make 
progress, projects related to the joint gas field development could 
also become eligible for financial assistance. 
 
17) Global warming preventive measures: Government likely to reach 
agreement with Indonesia for first time, based on fund mechanism 
 
SANKEI (Page 3) (Excerpts) 
November 30, 2007 
 
It was found on Nov. 29 that the government will likely reach an 
agreement with Indonesia shortly on financial assistance to that 
nation, based on the fund mechanism it has mapped out with 
developing countries working to come up with measures to prevent 
global warming in mind. The government will extend assistance valued 
 
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at more than 10 billion yen in the form of yen loans for such 
projects as boosting geothermal generation. It will formally 
announce the agreement at the 13th session of the Conference of the 
Parties to the Climate Change Convention (COP13) to be started on 
Bali, Indonesia, on Dec. 3. It wants to play up the fund mechanism 
to participating countries. 
 
The fund mechanism was incorporated as one key proposal in Cool 
Earth 50, a strategy on climate change the government released in 
May. Under the fund mechanism, developing countries apply for 
assistance for their measures to prevent global warming and present 
programs to implement measures to prevent disasters caused by 
climate change and promote energy-conservation plans. The Japanese 
side then examines the propriety of the proposed measures and 
decides whether to finance them or not. The aim is to urge 
financially beleaguered developing countries to adopt sustainable 
global warming preventive measures. This is the first time for the 
government to reach an agreement based on the fund mechanism. 
 
SCHIEFFER