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UNCLAS SECTION 01 OF 13 TOKYO 005444 
 
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 12/05/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Antiterrorism refueling mission: 
4) Defense Ministry in assessing impact of withdrawal of MSDF from 
Indian Ocean finds 40 PERCENT  of Pakistani ships have been removed 
from action (Sankei) 
5) Antiterrorism bill being deliberated in Upper House but both 
camps remain on parallel tracks (Nikkei) 
6) Small extension of Diet session being eyed, with intention of 
passing antiterrorism bill by end of year (Tokyo Shimbun) 
7) Government no longer taking a low profile toward the opposition 
camp in Upper House deliberations on the antiterrorism bill (Sankei) 
 
8) Democratic Party of Japan (DPJ) rethinking Diet strategy after 
Nukaga summons failed (Asahi) 
9) DPJ refuses to add time to the committee debate on the 
antiterrorism bill (Nikkei) 
 
Diet business: 
10) Meeting of minds between ruling, opposition camps allowing the 
amended political funds law to pass the Diet (Mainichi) 
11) Report of the educational revival council heavily watered down 
(Sankei) 
12) Shoichi Nakagawa and other conservative lawmakers form 
Hananokai, a study group to continue the policy aims for former 
Prime Minister Abe (Sankei) 
 
13) Fukuda orders immediate measures to keep economy sound by 
countering double impact of high price of oil and U.S. economy slide 
due to sub-prime mess (Nikkei) 
14) DPJ has own measures ready to cope with rising oil price 
(Nikkei) 
15) Prime Minister Fukuda once served on the board of the U.S.-Japan 
peace and cultural exchange, run by shady figure linked to defense 
scandal (Asahi) 
16) DPJ head Ozawa would like to see enshrined Class-A war criminals 
removed from Yasukuni Shrine (Nikkei) 
 
China ties: 
17) DPJ head Ozawa to travel to China with large entourage in order 
to set up direct links there (Asahi) 
18) Ruling camp calls Ozawa's China entourage of 48 DPJ lawmakers 
"excessive" (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Sankei: 
Japanese students slip further in OECD tests, fall to 10th from the 
6th in mathematics 
 
Nikkei: 
Government to hike tax on profit-making businesses under a new 
public-interest corporation law as part of reform of incorporated 
associations and foundations 
 
Tokyo Shimbun: 
 
TOKYO 00005444  002 OF 013 
 
 
The accounting official system scrapped but increase in number of 
vice governors in 12 prefectures across the country 
 
Akahata: 
Scandal-tainted Defense Ministry not qualified to submit new 
aniterror bill 
 
2) EDITORIALS 
 
Asahi: 
(1) OECD tests: What is necessary to foster the ability to think? 
(2) New refueling legislation: We expect lively debate in Upper 
House 
 
Mainichi: 
(1) Where has the DPJ's counterproposal to the government-sponsored 
antiterror legislation gone? 
(2) OECD tests: Weak motivation to study is a problem 
 
Yomiuri: 
(1) Results of OECD tests must be reflected in new course of study: 
 
(2) Taxi-fare hike: Service and efficiency must be improved 
promptly 
 
Nikkei: 
(1) Budget discipline must be maintained in compiling supplementary 
budget as well as next year's budget 
(2) Need to find out the causes of Japanese students slipping 
further in OECD tests 
 
Sankei: 
(1) Why is DPJ sending delegation to China now? 
(2) Lessons from case of Osaka Gov. Ota forgoing reelection 
 
Tokyo Shimbun: 
(1) OECD tests: Japan needs to foster the ability to think 
(2) Rugby players who used marijuana: Need to review students' 
sports 
 
Akahata: 
(1) We call for withdrawal of a plan to cut child-care allowances 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 4 
 
NIKKEI (Page 2) (Full) 
December 5, 2007 
 
07:59 
Met Deputy Chief Cabinet Secretary Iwaki at the Kantei. 
 
08:50 
Attended a cabinet meeting. Foreign Ministry Koumura stayed on. 
Afterward handed a letter of appointment to Special Advisor to the 
Cabinet Nishimura. 
 
09:22 
Arrived at the Kantei. 
 
10:00 
 
TOKYO 00005444  003 OF 013 
 
 
Attended an Upper House Foreign Affairs and Defense Committee 
meeting. 
 
12:47 
Met Assistant Deputy Chief Cabinet Secretary Saka at the Kantei. 
 
13:00 
Attended the Upper House Foreign Affairs and Defense Committee 
meeting. 
 
17:15 
Met OEDC Secretary General Gurria at the Kantei. 
 
18:27 
Met at the Fukudaya Japanese restaurant in Kioicho with US 
Ambassador to Japan Schieffer, his predecessor Baker, and former 
Finance Minister Shiokawa. 
 
21:37 
Returned to his residence in Nozawa. 
 
4) MSDF pullout affects Pakistan's antiterror activities at sea: 
Ishiba 
 
SANKEI (Page 2) (Abridged) 
December 5, 2007 
 
The House of Councillors Foreign Affairs and Defense Committee 
yesterday entered into a substantive debate on a new bill introduced 
by the government to resume the Maritime Self-Defense Force's 
refueling activities in the Indian Ocean. The MSDF has now withdrawn 
from the Indian Ocean due to the Antiterrorism Special Measures 
Law's Nov. 1 expiry. In his reply before the committee, Defense 
Minister Shigeru Ishiba, touching on the MSDF's pullout and its 
impact on multinational forces, stated that Pakistani vessels, which 
cannot receive fuel from the MSDF, have to make port calls for fuel. 
In this regard, Ishiba revealed that there is now a decrease of 
about 40 PERCENT  in the number of operational days for Pakistani 
ships there. 
 
Prime Minister Fukuda stated: "Many countries are engaged in even 
more difficult activities, and they are continuing their activities 
in a persevering way although many have lost their lives. It's only 
natural that we want to resume (refueling) activities. It's taken 
for granted in the international community. I want the bill passed 
before the Diet session ends on Dec. 15." 
 
Meanwhile, Chief Cabinet Secretary Nobutaka Machimura, referring to 
an aid plan for Afghanistan, said the government is considering 
measures to be incorporated in the (FY2007) supplementary budget. 
 
In the committee meeting, the opposition bench pursued a series of 
scandals involving the Defense Ministry. Asked about former 
Administrative Vice Defense Minister Takemasa Moriya's bribery case, 
Fukuda stated, "It's truly regrettable that there were scandals at 
the Defense Ministry." He added, "It's extremely serious, and we 
will have to change the Defense Ministry fundamentally." 
 
5) Refueling bill enters into debate in upper chamber 
 
NIKKEI (Page 2) (Abridged) 
December 5, 2007 
 
TOKYO 00005444  004 OF 013 
 
 
 
The House of Councillors yesterday entered into substantive debate 
on a newly-introduced legislative measure intended to resume the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean. 
The government and ruling parties regard the bill as the most 
important legislation in the current Diet session. However, the 
Foreign Affairs and Defense Committee is concerned about a scandal 
over the Defense Ministry's procurement. In its discussion, the 
ruling and opposition parties were never on the same wavelength. 
 
"Japan will do all it can. I do not want to give up on this stance. 
It's one of the ways for Japan to live." With this, Prime Minister 
Yasuo Fukuda emphasized the necessity of resuming the MSDF's 
refueling activities. 
 
The committee focused its discussion yesterday on international 
views after the MSDF's pullout and what Japan can do in its 
contributions instead of refueling activities. 
 
Ichiro Ozawa, president of the leading opposition Democratic Party 
of Japan (Minshuto), has advocated participating in the 
International Security Assistance Force (ISAF) in Afghanistan to 
assist with its reconstruction. Ozawa asserts that Japan may 
participate in ISAF operations. In this regard, Ozawa maintains that 
Japan's ISAF participation in the ISAF, if authorized by the United 
Nations, does not conflict with the Constitution even though Japan's 
ISAF participation includes using armed force. 
 
In his reply, Fukuda rejected Ozawa's standpoint. "We don't take 
that view," Fukuda said. "Using armed force conflicts with the 
Constitution of Japan," Fukuda added. Referring to the option of 
conducting assistance activities in Afghanistan, Foreign Minister 
Masahiko Koumura noted that it would be "very difficult" to do so, 
reasoning that Japanese nationals in Afghanistan are being advised 
to evacuate that country. 
 
Koumura also touched on the MSDF's withdrawal and its impact on 
maritime interdiction operations conducted by the naval forces of 
foreign countries. "In the case of Pakistan's activities," Koumura 
said, "their efficiency is now 40 PERCENT  lower than in the days 
they were refueled by Japan." He stressed, "It's easy to imagine how 
serious the loss of (Japan's) credibility is." 
 
6) Diet session: Slight re-extension plan surfaces; Ruling camp aims 
at settling new refueling legislation before year's end 
 
TOKYO SHIMBUN (Page 1) (Full) 
December 5, 2007 
 
A plan to re-extend the extraordinary Diet session, which is to end 
on Dec. 15,  by 7-10 days surfaced yesterday in the ruling camp. The 
aim is to secure Diet approval during the current session for the 
new antiterror special measures bill aimed at resuming refueling 
operations in the Indian Ocean by the Maritime Self-Defense Force 
(MSDF). The leaderships of the Liberal Democratic Party (LDP) and 
the New Komeito will make a final decision on the propriety of 
extending the Diet session and the scope of any extension after 
determining opinions in both parties and the movements of the 
Democratic Party of Japan (DPJ or Minshuto). 
 
Substantive deliberations on the bill started yesterday at the Upper 
House Foreign Affairs and Defense Committee. Prime Minister Yasuo 
 
TOKYO 00005444  005 OF 013 
 
 
Fukuda has urged the bill be put to a vote in the Upper House before 
the Diet session ends on Dec. 15. The ruling camp insisted on 
expediting deliberations, using reserved days in addition to 
scheduled deliberation days of Tuesdays and Thursdays. 
 
DPJ President Ozawa during a press conference yesterday rejected the 
idea of deliberating on the bill using reserved days, saying, "How 
dare they say that reserved days should be used for deliberations, 
shutting their eyes to their own fault?" 
 
The ruling parties' judgment is that if sufficient deliberation time 
is secured, the DPJ will have no choice but to agree to take a vote, 
as one senior member explained. As such, a proposal for extending 
the Diet session by 7-10 days has been made, because this would 
secure deliberation time equal to the amount allocated to the Lower 
House (approximately 41 hours), even if deliberations take place 
only on scheduled days. 
 
Even if the Upper House votes down the bill, which cleared the Lower 
House on Nov. 13, it can still be passed into law if it is adopted 
again in the Lower House by a two-thirds majority on Jan. 12 or 
later, according to the Constitution. As such, the dominant view in 
the ruling parties had been that the Diet session should be extended 
by about a month to mid-January in readiness for the DPJ putting off 
a roll call. 
 
However, if the Diet session is extended to January, the year-end 
compilation of the fiscal 2008 budget would be significantly 
affected. If the bill is adopted again in the Lower House without a 
vote in the Upper House, it would legitimatize the DPJ submitting a 
censure motion against the prime minister, as a senior ruling camp 
member said. As such, a call for closing the Diet session before 
year's end has gained ground. 
 
7) Government reverses passive attitude in reaction to Upper House's 
slow deliberation on new antiterrorism bill 
 
SANKEI (Page 5) (Full) 
December 5, 2007 
 
With the Dec. 15 end of the current Diet session just around the 
corner, the government and ruling party executives, including Prime 
Minister Yasuo Fukuda, are increasingly frustrated with the House of 
Councillors that has yet to accelerate its debate on a new 
antiterrorism special measure bill. 
 
The Upper House Foreign Affairs and Defense Committee began 
substantial deliberations on the bill yesterday. In the session, 
Prime Minister Fukuda said in a strong tone: "There are many days 
left. I would like you to meet everyday to discuss the 
legislation." 
 
The prime minister was visibly frustrated yesterday. There was even 
an instance when Chief Cabinet Secretary Nobutaka Machimura snapped 
at the major opposition Democratic Party of Japan: "You have not 
come up with a bill. You should not say things on a whim." The 
government has reversed its passive policy course. 
 
The growing frustration of the government and ruling camp comes from 
the committee's policy to meet only on Tuesdays and Thursdays, as 
scheduled, to discuss the legislation. There are only four days for 
substantial deliberations before the Diet session closes. This makes 
 
TOKYO 00005444  006 OF 013 
 
 
it difficult to meet the opposition camp's demand for 41 hours of 
deliberation time in the Upper House on a par with the lower 
chamber. 
 
DPJ President Ichiro Ozawa in a press conference yesterday rebutted 
the call of the government and ruling bloc for holding sessions on 
days other than Tuesdays and Thursdays, saying: "The Diet wasted 
away two months because of (former Prime Minister Shinzo Abe's) 
abrupt announcement to step down. How could they say such a thing at 
this point? (Deliberations) should have started in August." 
 
Given the situation in which the committee is chaired by a DPJ 
member, the government and ruling coalition have no effective means 
to accelerate the deliberations. Looking angry, a cabinet minister 
said: "The committee meets only twice a week to discuss matters for 
six hours a day. Is the Upper House a house of lords?" 
 
8) DPJ looking for new ammunition following end to Nukaga dinner 
party issue 
 
ASAHI (Page 4) (Excerpts) 
December 5, 2007 
 
The question of Diet testimony by Finance Minister Fukushiro Nukaga 
over his alleged presence at a dinner party was earnestly discussed 
at the Diet for the first time yesterday since it had been called 
off. As a result, the matter is likely to be effectively settled 
before the major opposition Democratic Party of Japan (DPJ or 
Minshuto) was able to pursue Nukaga. The DPJ, however, is busy 
looking for new ammunition, believing that it can win public support 
by pursuing a variety of allegations about the Ministry of Defense 
(MOD). Can the party pull itself together to continue pursing 
allegations? Its ability will be tested. 
 
"I wanted to ask Finance Minister Nukaga some questions, but my 
request was turned down," DPJ member Kazuya Shinba said 
disapprovingly at the outset of the House of Councillors Foreign 
Affairs and Defense Committee meeting yesterday. Shinba was visibly 
unhappy with Nukaga's absence from the meeting. 
 
The DPJ had asked that Nukaga be present at the session, but in the 
committee directors' meeting the day before, the matter did not go 
as far as to decide it by the rule of majority, forcing the DPJ to 
withdraw its request. As a result, the televised question-and-answer 
session ended calmly without any questions about Nukaga's alleged 
presence at a dinner party or his ties to the defense industry. 
 
Now that the Diet has given up on the DPJ-led decision on Nukaga's 
testimony, the prevalent mood in the largest opposition party is 
that it should put an end to the dinner party issue for the time 
being, with a former party official saying, "We have gone too far 
regarding this issue. We must make a fresh start." 
 
9) Opposition camp refuses deliberations on new antiterrorism bill 
on days other than those for regular meeting 
 
NIKKEI (Page 2) (Full) 
December 5, 2007 
 
The House of Councillors Foreign Affairs and Defense Committee 
decided in its executive meeting yesterday to hold the next 
question-and-answer session on the new antiterrorism bill that would 
 
TOKYO 00005444  007 OF 013 
 
 
enable Japan to resume its refueling mission tomorrow, the day for a 
regular meeting of the committee. The ruling coalition requested 
that deliberations should be held on days other than those for 
regular meeting and that a vote on the bill be taken by the 
scheduled end of the current Diet session on Dec. 15. But the 
Democratic Party of Japan (DPJ) declined this request. 
 
Prime Minister Yasuo Fukuda asked the opposition bloc in his reply 
at the committee to take a vote on the bill by the end of the 
session, saying: "The period of the session is limited, but there 
are more days for deliberations. I want the opposition camp to 
swiftly come to a conclusion." 
 
In a press conference, DPJ President Ichiro Ozawa criticized 
Fukuda's comment, saying: "Setting aside what they did (including 
the LDP presidential election, on which much time was spent), he 
suggested using reserve days. How arbitrary his suggestion is." 
 
In the DPJ, though, some members are worried that the party might be 
criticized for putting off a vote. Secretary General Yukio Hatoyama 
told reporters: "It is fully conceivable that we will agree to a 
vote when an environment that can convince the public is created." 
He thus indicated that the party would consider agreeing to a vote 
by the end of this year if the current session is re-extended. 
 
Asked about a re-extension of the session, the prime minister only 
replied: "I cannot comment on the next step." 
 
10) Political Fund Control Law to be revised in current Diet 
session; Third organ to set guidelines for disclosure of receipts 
for expenditures of less than 10,000 yen 
 
MAINICHI (Page 1) (Full) 
December 5, 2007 
 
The ruling and opposition parties agreed yesterday to leave a 
decision up to a third organ, a Political Fund Rationalization 
Committee (tentative name), as to standards for the disclosure of 
receipts for every item costing less than 10,000 yen, which won't be 
required to be attached to their fund reports but would be kept by 
them. With this, consultations on a revision of the Political Fund 
Control Law between the ruling and opposition camps have been 
concluded. The two camps will confirm this issue in a meeting today 
of the Diet affairs committee chairs. The revision bill is expected 
to clear the Diet during the current session. 
 
The revised law is expected to be put into effect on Jan. 1. The 
ruling and opposition parties have reached an agreement that 
receipts for small expenditures will be disclosed by separating 
"payments in which power has been abused" from "payments that 
violate public order and morals." The third organ will set specific 
guidelines and the Ministry of Internal Affairs and Communications 
and prefectural government authorities will decide whether receipts 
should be disclosed or not. Since the revised law will include vague 
expressions, whether they are disclosed will be put off until the 
guidelines are compiled. The third organ will pick five committee 
members based on Diet approval, and the committee will be 
inaugurated as early as next April. The Japanese Communist Party has 
opposed the establishment of the committee, however. 
 
The ruling and opposition camps have also agreed that if auditors 
authorized by the third organ declare a false report, they will face 
 
TOKYO 00005444  008 OF 013 
 
 
a fine of 300,000 yen. 
 
11) Education Revitalization Council in hamstrung situation, losing 
momentum with inauguration of Fukuda administration: Panel members 
angry, saying, "Nothing will be decided" 
 
SANKEI (Page 2) (Excerpts) 
December 5, 2007 
 
Discussions by the government's Education Revitalization Council, 
which is tasked with formulating a third report this month, are 
getting nowhere. Though the debate has gone into the homestretch, no 
noteworthy results have been produced. Some members are aggravating 
a grievance with one complaining, "The Council is doing nothing." 
The move to include moral education in school curriculums has also 
fallen under a cloud. Government efforts to revitalize education, 
the showcase of the previous Abe administration's policy, appear to 
have lost momentum with the inauguration of the Fukuda 
administration. 
 
A joint subcommittee meeting was held on Dec. 3 to discuss items to 
be included in a draft interim report for the third report. Hearing 
a flurry of bureaucratic terms, such as "will consider" and "bear in 
mind," Miki Watanabe, a panel member and the president of restaurant 
chain "Watami," deplored the meeting, saying, "This would never 
work."  Another member also revealed, "Though I would not voice my 
grievance, I am skeptical about the present state of the panel, 
which is unable to decide anything." 
 
The panel was launched in October last year by former Prime Minister 
Abe with a fanfare, but its discussions have been sluggish. 
 
For instance, discussions to include moral education replacing 
ethics classes have come to an impasse. It had been thought that 
grading students regarding moral education with a point system as 
are the case of other subjects would not be appropriate.  One member 
proposed, "We should consider other grading method, such as a 
description method." However, this proposal was fizzled out in the 
end. Acting Chairman Morio Ikeda during a press briefing after the 
meeting noted that if moral education is included in school 
curriculums, it would be better not to individually grade students' 
performance. 
 
12) Cross-factional study group led by Shoichi Nakagawa begins 
activities to follow Abe's policy line of "departure from postwar 
regime"; The group likely to be called "HANA no Kai" 
 
SANKEI (Page 5) (Abridged) 
December 5, 2007 
 
Former Liberal Democratic Party (LDP) Secretary General Taro Aso, 
who ran in the latest LDP presidential election as a rival candidate 
against Prime Minister Yasuo Fukuda, and former LDP Policy Research 
Council Chairman Shoichi Nakagawa have both recently become 
politically active. Yesterday, Nakagawa launched a cross-factional 
study group. Aso brought together deputy secretaries general and 
others in Tokyo. Nakagawa and Aso have both declared that they would 
support the Fukuda administration, but what seems to be behind their 
moves is the legacy of former Prime Minister Shinzo Abe. This study 
group recalls the former "ANA line," which stands for Abe, Nakagawa, 
Aso, but now with former Minister of Economy, Trade and Industry 
Takeo Hiranuma's joining the group, the name has become informally 
 
TOKYO 00005444  009 OF 013 
 
 
the HANA no Kai. There is a possibility that this group could find 
itself in the middle of a political cyclone. 
 
Nakagawa: "What do you think about calling the group 'HANA no Kai' 
by adding H standing for Mr. Hiranuma to ANA?" 
 
Aso: "That's a good idea." 
 
Rxchanging views jokingly, Nakagawa conveyed his plan to launch a 
study group to Aso, who was sitting next to him during a Lower House 
plenary session on Nov. 20. 
 
Nakagawa and Aso tightened their bonds of friendship under the Abe 
administration when the relationship of the three was called the 
"ANA line." But neither is installed in any responsible posts in the 
Fukuda administration at present. Given the current situation in the 
Diet, where the ruling coalition holds a majority of seats in the 
Lower House, but the Upper House is under the opposition bloc's 
control, it is difficult to be anti-mainstreamers. Given this, 
Nakagawa has concluded that in order for them to remain influential, 
they needed to establish their own study group. 
 
The study group was launched at the Constitutional Government Hall 
in the Diet at noon yesterday with the support of 58 Lower and Upper 
House lawmakers. It was attended by 30 lawmakers. Nakagawa, who took 
the post of chairman, gave a speech at the meeting. In it, he 
stated: "I am keenly aware of my responsibility. I'd like to lead 
the group with confidence, pride, and modesty." He indicated he 
would take over the Abe administration's policy line of "departure 
from the postwar regime." Hiranuma, who assumed the post of supreme 
advisor, declared: "There is a trend to think that politicians 
should call for reform, but what is now sought is an attitude of 
cherishing and protecting Japanese culture and traditions." 
 
The official name of the study group has yet to be decided, but some 
see it in the light of the hawkish study group "Seirankai" formed in 
1973 by Nakagawa's father, former Agriculture Minister Ichiro 
Nakagawa (TN: which included Shintaro Ishihara, now Tokyo governor). 
Other factions are likely to increase their pressure on members of 
the study group. 
 
Former Secretary General Hidenao Nakagawa of the Machimura faction 
noted: "Policies should be studied on the premise of supporting the 
Fukuda cabinet. Otherwise, those who study policies for purposes 
other than that should leave the faction." Nonetheless, some junior 
and mid-level lawmakers of the Machimura faction, including Deputy 
Secretary General Kouichi Hagiuda, have joined the study group in 
 
SIPDIS 
response to Abe's strong wishes. 
 
Meanwhile, Aso brought together a dozen or so lawmakers, including 
deputy secretaries general, at a Japanese restaurant in Tokyo's 
Kagurazaka late yesterday. Those lawmakers were under the 
sponsorship of Aso, when he served as secretary general. The purpose 
of the gathering was to recognize their contributions, but the 
current LDP executives may see this scene as a provocative act. 
Secretary General Bunmei Ibuki, chief of the Ibuki faction to which 
 
SIPDIS 
Shoichi Nakagawa belongs, put a good face on toward a series of the 
moves involving the study group, noting, "It's for studying 
policies; it's fine if they do so without disrupting the unity of 
the party." But apparently he was upset about it. 
 
13) Ruling coaling picking up efforts, with eye on election, to map 
 
TOKYO 00005444  010 OF 013 
 
 
out economy-spurring measures given looming uncertainty 
 
NIKKEI (Page 2) (Excerpts) 
December 5, 2007 
 
The government and the ruling coalition are stepping up efforts to 
hammer out economy-boosting measures, out of concern about a 
downturn in the economy due to the recent steep rise in oil prices 
and the US subprime loan problem. Prime Minister Yasuo Fukuda 
instructed relevant cabinet ministers yesterday to draw up measures 
to deal with rising oil prices. With an eye on the next House of 
Representatives election, the Liberal Democratic Party and the New 
Komeito are eagerly taking the lead in adopting measures in many 
cases. 
 
The government and the ruling camp take a considerably severe view 
about the future of the economy. LDP Secretary General Bunmei Ibuki 
stressed: "Uncertainty is looming due to the subprime loan problem 
and price hikes, including crude oil and commodities." 
 
Speaking before reporters yesterday, the prime minister also 
emphasized the need for the government to take prompt action, 
saying: "It is necessary to consider how to cope with the situation. 
We need to pay close attention to future moves, focusing on whether 
oil prices will go up further. We want to reach a conclusion as 
early as possible and take measures." 
 
The buzzwords for a series of countermeasures worked out by the 
ruling coalition are "small businesses," "livelihood," and 
"localities." The ruling parties have in mind the July Upper House 
election, in which the ruling parties were crushingly defeated by 
the Democratic Party of Japan, which stressed in the campaign its 
determination to address pocketbook issues. 
 
The ruling camp plans to finalize a package of measures to deal with 
the problem of oil price rises by early next week. Included in the 
package will be measures to lower the express tolls for trucking 
companies; financial aid for small businesses; and assistance for 
needy persons in cold districts. These measures are specified in the 
two parties' respective packages. This shows signs of a close 
teamwork between relevant government agencies and the ruling 
coalition. 
 
14) DPJ also preparing measures to deal with oil-price rise, giving 
consideration to small businesses but leaving financial resources 
vague 
 
NIKKEI (Page 2) (Full) 
December 5, 2007 
 
The Democratic Party of Japan (DPJ) has also begun to take action to 
deal with the recent sharp rise in oil prices. Based on the view 
that the government has little sense of alarm, the main opposition 
party set up a project team tasked with working out emergency 
measures, chaired by Teruhiko Mashiko, the minister of economy, 
trade and industry in the "next cabinet." In its first meeting, the 
team drafted a package that includes measures to lower the express 
tolls by 30 PERCENT  and to provide low-income earners with 
subsidies for purchasing oil. The party will announce the package 
today. 
 
The DPJ hopes to have the package ready before a supplementary 
 
TOKYO 00005444  011 OF 013 
 
 
budget for this fiscal year is compiled. Small and medium-sized 
enterprises, burdened by high oil prices, are also a strong voting 
base for the DPJ. 
 
The problem is how to secure financial resources. The DPJ has left 
the amount of money to fund these measures ambiguous, citing that it 
is under study. The party intends to ask the government to use 
reserve funds or surplus funds in a special account in the budget 
for this fiscal year. 
 
Most of the listed measures, therefore, are expected to be just 
provisional ones. Regarding subsidies for oil, as well, the party is 
looking into distributing "oil vouchers" for a limited time only. 
 
15) Fukuda in 2005 became director of Japan-U.S. Center for Peace 
and Cultural Exchange, which was searched by prosecutors 
 
ASAHI (Page 4) (Full) 
December 5, 2007 
 
Prime Minister Yasuo Fukuda revealed in yesterday's House of 
Councillors Foreign Affairs and Defense Committee session that he 
had served from 2005 as a director of the Japan-U.S. Center for 
Peace and Cultural Exchange, for which Naoki Akiyama, who is 
allegedly serving as a liaison between the Japanese and U.S. defense 
industries, is also serving as a permanent director. Fukuda also 
said that he had resigned as a director and left the organization in 
March this year. 
 
Fukuda was responding to a question from Japanese Communist Party 
member Satoshi Inoue. 
 
Fukuda said: "I became a member (of the center), as I was advised by 
a lawmaker in 2000. There was a reception during my tenure as chief 
cabinet secretary, and I delivered a speech for a couple of minutes 
there. In 2005, I was asked by a lawmaker to become a director of 
the organization, and I accepted the request." 
 
The prime minister also explained his duties as director: "I don't 
know much about the center. Although I became a director, I did not 
do anything. I have never attended a directors' meeting." 
 
Inoue, pointing out Fukuda's attendance at the organization's 
meeting in the United States, also asked if the expenses were paid 
by the center. In response, Fukuda said: "I traveled to the United 
States seven years ago. Since I have no recollection of receiving 
benefits from this organization, I probably paid (the expenses) 
myself." 
 
The organization has been searched by the special investigation 
squad of the Tokyo District Public Prosecutors Office. The 
organization's former directors also include former Defense Minister 
Fumio Kyuma, Finance Minister Fukushiro Nukaga, and Defense Minister 
Shigeru Ishiba. 
 
16) Ozawa expresses view in favor of unenshrining war criminals from 
Yasukuni Shrine 
 
NIKKEI (Page 2) (Full) 
December 5, 2007 
 
Asked about the propriety of visits to Yasukuni Shrine by Japanese 
 
TOKYO 00005444  012 OF 013 
 
 
prime ministers, Democratic Party of Japan (DPJ) President Ichiro 
Ozawa said: "In the belief that enshrining the souls of Class-A war 
criminals is irrational, I have said that if I assume political 
power, I will not make an official visit." In a press conference 
yesterday, prior to his departure for China tomorrow, Ozawa 
expressed his view in favor of unenshrining war criminals from 
Yasukuni Shrine. 
 
17) DPJ President Ozawa to visit China ahead of prime minister's 
trip to Beijing 
 
ASAHI (Page 4) (Excerpts) 
December 5, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
will visit China on Dec. 6-8. With an eye on taking over the reins 
of government, Ozawa aims to develop his own channels of 
communication to China by deepening exchanges with such leading 
Chinese figures as President Hu Jintao, with whom the largest 
opposition head is expected to hold a meeting on Dec. 7. Referring 
to the Taiwan issue prior to his China trip, Ozawa stressed that he 
would not just hold friendly relations with Taiwan. He intends to 
make the planned China trip an opportunity to exchange frank views 
also with China, before Prime Minister Yasuo Fukuda visits Beijing, 
not only with the United States. 
 
Ozawa said yesterday in a press conference: 
 
"China and the United States would look down upon us if we curry 
favors with them. I've heard that when Mr. Fukuda met with President 
Bush, he told the President that Japan would definitely (resume the 
refueling mission) and the President told him to pull himself 
together. I find that unacceptable." 
 
He also criticized the Fukuda government's China policy: 
 
"In a real sense, Japan is not dealt with. Regarding the six-party 
talks, discussions have been held between the United States and 
China. North Korea has said that Japan should be excluded from the 
members of the multinational talks." 
 
Ozawa, who has advocated that Japan-U.S.-China relations should be 
like an isosceles triangle, stated that he would express clear views 
and hold a debate with Chinese leaders. 
 
18) LDP, New Komeito: Number of lawmakers -- 24 Upper House and 21 
Lower House members -- to accompany Ozawa to China is excessive 
 
ASAHI (Page 4) (Full) 
December 5, 2007 
 
The plan of a total of 24 House of Councillors members accompanying 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa's 
visit to China was taken up yesterday in an Upper House Steering 
Committee session. Approval by the committee is required for an 
overseas trip by Diet members during when the Diet is in session. 
Committee members from the ruling Liberal Democratic Party (LDP) and 
its coalition partner New Komeito suspended their decisions, citing 
that a trip of many lawmakers would affect Diet management. Although 
the planned China trip is expected to be approved in a committee 
session today, Committee Chairman Takeo Nishioka, a DPJ member, gave 
the lawmakers an earful, saying, "I want them refrain from going 
 
TOKYO 00005444  013 OF 013 
 
 
abroad as much as possible if there is no urgency." 
 
A total of 21 House of Representatives members will also accompany 
Ozawa. It is unusual for nearly 50 lawmakers to make an overseas 
trip at the same time having the same purpose, when the Diet is in 
session. The 24 Upper House members include four members of the 
chamber's Foreign Affairs and Defense Committee, which deliberates 
the new antiterrorism bill to resume the Maritime Self-Defense 
Forces' refueling operation in the Indian Ocean. The DPJ will alter 
its committee members. The committee will start deliberations 
tomorrow. 
 
LDP Upper House Caucus Secretary General Masaki Yamazaki made 
yesterday a critical comment: "That's too much." DPJ Upper House 
Secretary General Kenji Hirata, however, rebutted: "This have come 
 
SIPDIS 
up because they extended the Diet session." 
 
SCHIEFFER