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UNCLAS SECTION 01 OF 14 TOKYO 005465 
 
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 12/06/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense issues: 
4) Government caves in on cuts in host-nation support and will 
extend special agreement three years unchanged (Yomiuri) 
5) Government planning how to use Futenma Air Station and other 
facilities vacated by US force realignment in Okinawa (Yomiuri) 
6) Government plans to unfreeze funds for North Okinawa development 
package (Asahi) 
7) Division chief replaced as part of Defense Ministry move to sweep 
away unwanted legacy from Moriya era as vice minister (Sankei) 
 
North Korea problem: 
8) Lower House special committee passes resolution against removing 
North Korea from US terror list  but opposed by JCP as hindering 
U.S. negotiations (Yomiuri) 
9) Lower House committee resolution opposed to U.S. removing DPRK 
from terror-sponsoring list could have negative impact on U.S.-Japan 
alliance (Nikkei) 
10) Assistant Secretary Hill in Beijing indicates still no agreement 
with North Korea on the nuclear program list it promised (Yomiuri) 
 
11) Prime Minister Fukuda establishes new foreign-policy study group 
to prepare him for the G8 Summit (Asahi) 
 
Political agenda: 
12) Prime Minister Fukuda determined to use override vote in Lower 
House to pass the refueling mission bill once the Upper House 
rejects it (Yomiuri) 
13) Democratic Party of Japan President Ozawa aims to have his party 
win 180 or more seats in expected Lower House election (Sankei) 
14) New conservative group in the Diet led by Shoichi Nakagawa 
linked to new party concept and having a casting vote in the Lower 
House (Tokyo Shimbun) 
15) Former Prime Minister Abe, after long absence from public, to 
visit his home district Dec. 7-10 (Sankei) 
16) Two LDP factions, Koga's and Tanigaki's, to merge (Yomiuri) 
17) SDP's Fukushima starts third term at party helm but questions 
emerging about her sole focus on protecting the Constitution 
(Yomiuri) 
18) Oversight system introduced into the political funds control law 
is a major step forward (Yomiuri) 
 
19) (Corrected copy) Hokkaido Toyako Summit: Niseko Higashiyama 
Prince Hotel a leading candidate to accommodate U.S. delegation; 
Noboribetsu Grand Hotel also a candidate (Hokkaido Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
OPEC to shelve pumping more crude oil 
 
Mainichi: 
If compensation money called for by patients infected with hepatitis 
C via tainted blood products is reduced to a two-thirds, all 
patients could receive compensation money from the state, according 
 
TOKYO 00005465  002 OF 014 
 
 
to a legal team for patients 
 
Yomiuri: 
LDP, DPJ, New Komeito agree to introduce e-voting in national 
elections 
 
Nikkei: 
Government to shorten legal durable years of vehicle manufacturing 
equipment to 9 years as part of the tax system reform, with aim of 
enhancing international competitiveness 
 
Sankei: 
Land Ministry found to have failed to investigate 1,750,000 
buildings against asbestos; Ministry of Internal Affairs to advise 
Land Ministry to take action 
 
Tokyo Shimbun: 
Ministry of Internal Affairs' sample survey finds no measures 
against asbestos taken in 16 PERCENT  of small facilities, such as 
Japanese inns 
 
Akahata: 
Finance Minister Nukaga, some Diet members found to have 
participated in "military expansion conference" in U.S. with one 
million yen given to each from the state as a subsidy 
 
2) EDITORIALS 
 
Asahi: 
(1) Provisional road tax rate needs to be discussed from a 
comprehensive viewpoint 
(2) Osaka gubernatorial election: We hope to see lively debates 
between candidates 
 
Mainichi: 
(1) Reform of Defense Ministry: A second "Moriya" must not be 
produced 
(2) Russia should not move toward dictatorship and self-righteous 
nationalism 
 
Yomiuri: 
(1) Mutual trust essential between medical doctors and patients 
(2) Flu season: Masks may prevent spread of flu 
 
Nikkei: 
(1) Bureaucracy at Kasumigaseki should not prevent scrapping or 
privatization of independent administrative corporations 
(2) Gulf nations enjoying the boom groping for economic and 
political stability 
 
Sankei: 
(1) OECD academic tests: Pressing issue is how to improve reading 
comprehension 
(2) Not too late to have a flu vaccination now 
 
Tokyo Shimbun: 
(1) Revision to medical treatment fees: Review of distribution of 
medical treatment fees important 
(2) Iran's nuclear report should be used as a start for a peaceful 
solution 
 
Akahata: 
 
TOKYO 00005465  003 OF 014 
 
 
(1) New antiterrorism legislation must be thoroughly discussed and 
killed 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 5 
 
NIKKEI (Page 2) (Full) 
December 6, 2007 
 
10:01 
Met at Kantei with leader Sumie Ikeda of the war-displaced Japanese 
in China group seeking state compensation, and others, in the 
presence of ruling block war-displaced Japanese project team leader 
Takeshi Noda, MHLW Minister Masuzoe and others. 
 
10:28 
Met Lower House member Gen Nakatani. Afterward received a telephone 
call from World Bank President Zoellick in the presence of MOF 
International Bureau Director General Tamaki and others. 
 
11)01 
Met New Komeito deputy representative Higashi. 
 
12:29 
Met Council on Economic and Fiscal Policy private-sector members, 
such as Japan Business Federation Chairman Mitarai, joined in by 
State Minister of Economic, Fiscal Policy Ota. 
 
14:05 
Met Deputy Chief Cabinet Secretary Futahashi, followed by former 
National Public Safety Commission member Omori. 
 
15:30 
Met Chairman Sata and Secretary General Miyazawa of the LDP Research 
Commission on Housing and Land Policy, followed by designer Kansai 
Yamamoto. 
 
16:01 
Met Finance Minister Nukaga, Vice Finance Minister Tsuda, and Budget 
Bureau Director General Sugimoto, followed by Chief Cabinet 
Secretary Machimura. 
 
SIPDIS 
 
17:07 
Met with President Rahmon of Tajikistan, followed by Lower House 
member Taku Eto. 
 
17:56 
Met former LDP Secretary General Nakagawa. 
 
19:45 
Returned to his private residence in Nozawa. 
 
4) Government withdraws cuts in host-nation support - sympathy 
budget - for U.S. forces in Japan, with final coordination with U.S. 
on special measures agreement running for three years 
 
YOMIURI (Page 2) (Excerpts) 
December 6, 2007 
 
The Japanese and U.S. governments yesterday entered into the final 
coordination to extend for three years and keeping at about same 
 
TOKYO 00005465  004 OF 014 
 
 
burden level the special measures agreement related to host-nation 
support (the so-called sympathy budget) for U.S. forces stationed in 
Japan. The current agreement runs out at the end of March next year. 
An agreement is expected to be reached possible as early as this 
week. 
 
The Japanese side at first called for great reductions in the burden 
sharing because of the government's fiscal straits, but the U.S. 
government cited its wartime expenses of Iraq and Afghanistan, and 
would not budge, so the Japanese government decided to shelve the 
burden reductions. 
 
5) Gov't to promote reuse plans for vacated U.S. bases 
 
YOMIURI (Page 2) (Full) 
Eve., December 5, 2007 
 
The government will work out a package of backup measures to reuse 
the sites of U.S. military facilities in the central and southern 
parts of Okinawa Prefecture after they are returned along with the 
realignment of U.S. forces in Japan. These sites are closely 
situated, so the government plans to set up an organization that 
will coordinate with base-hosting municipalities for their 
harmonized reutilization of vacated lands. This is intended to 
prevent these local areas from being crowded with a number of 
commercial facilities. 
 
In May 2006, the Japanese and U.S. governments released a final 
report on the U.S. military's realignment. The report incorporates 
an agreement to return the sites of U.S. military facilities 
covering a total area of about 1,000 hectares, including the 
Makiminato Service Area and the Naha Port Facility. However, these 
sites are to be returned with the relocation of the U.S. Marine 
Corps' Futenma Air Station, which is now facing rough going. The 
government's land reutilization package is aimed to push ahead with 
Futenma relocation. 
 
The government will set up a review committee in June next year for 
specific plans to back up Okinawa's local land reutilization. The 
committee will be made up of officials from the Cabinet Office and 
other government offices, officials from Okinawa Prefecture, and 
experts. The government will set up an organization that will push 
for the reutilization of lands to be returned. In addition, the 
government will also study effective ways to buy vacated lands. In 
the case of Futenma airfield, 92 PERCENT  of its land is privately 
owned by about 2,700 persons, according to the Okinawa prefectural 
government. In the case of the Makiminato Service Area as well, 90 
PERCENT  of its land is privately owned, and there are about 2,100 
landowners. 
 
6) Futenma relocation plan: Government to unfreeze northern part 
economic package following resumed talks with Okinawa 
 
ASAHI (Page 4) (Abridged slightly) 
December 6, 2007 
 
The government decided yesterday to implement the Okinawa northern 
part economic package (about 10 billion yen for fiscal 2007), which 
has been frozen due to the discontinuation of talks between the 
central government and Okinawa on the planned relocation of the U.S. 
Marines' Futenma Air Station. The reason is because the talks were 
held for the first time in 10 months in November, bringing out 
 
TOKYO 00005465  005 OF 014 
 
 
prospects for continued talks. 
 
Chief Cabinet Secretary Nobutaka Machimura noted in a press 
conference yesterday: "The government will not (put a hold on 
implementing) the fiscal 2007 budget forever." The government will 
make a final decision based on the next round of talks, slated for 
Dec. 12. 
 
The northern part economic package is a plan to inject a total of 
100 billion yen into 12 affected municipalities, including the 
prefecture and the city of Nago, for 10 years from fiscal 2000 in 
return effectively for accepting the Futenma relocation plan. The 
government at one time decided to shelve the package in the wake of 
a decision in May 2006 by Tokyo and Washington on the realignment of 
U.S. forces in Japan. But due to Okinawa's fierce reaction, the 
government decided that December to revive the package on the 
condition that smooth relocation talks were held. 
 
But the relocation talks stalled in January this year due to 
Okinawa's strong reaction to the position of the planned runways and 
other factors. Okinawa's lack of willingness to make compromises 
prompted the government to freeze the implementation of the budget. 
 
The Fukuda administration, however, has shifted policy to dialogue 
with Okinawa. The relocation talks resumed and the next session has 
also been set for later this month. Some in the Ministry of Defense 
are cautious about unfreezing the package, as there has been a 
bid-rigging scandal over a public works project in the northern 
part. Nevertheless, the dominant view in the government is that 
making a breakthrough in the deadlocked relocation plan is top 
priority. The government plans to lift the freeze on the package 
under the leadership of the Prime Minister's Official Residence 
(Kantei). 
 
7) New defense policy division director picked 
 
SANKEI (Page 5) (Full) 
December 6, 2007 
 
The Ministry of Defense decided yesterday to appoint Public 
Information Division Director Tatsuo Yamamoto as successor to former 
Defense Policy Division Director Nobuki Kawamura, who has been 
removed from the post for allegedly receiving 45 million yen in 
investment fund from former Administrative Vice-Defense Minister 
Takemasa Moriya who is under arrest for receiving bribes. Yamamoto's 
post will be filled by Policy Coordination Officer Yoshitoshi 
Nakamura. The appointments will be announced under the date of Dec. 
¶7. 
 
8) Lower House special committee passes resolution against U.S. 
removing North Korea from list of terrorism sponsoring states 
 
YOMIURI (Page 2) (Full) 
Eve., December 5, 2007 
 
The House of Representatives Special Committee on the Abduction 
Issue yesterday afternoon passed a resolution by a majority, with 
the exception being the Japanese Communist Party, opposing the move 
by the United States to remove North Korea from its list of states 
sponsoring terrorism. 
 
The resolution, pointing to the move to de-list North Korea even 
 
TOKYO 00005465  006 OF 014 
 
 
though no progress has been made on the abduction issue, stated: "We 
are concerned that such will disappoint many Japanese people and 
have a serious impact on the Japan-U.S. alliance." It urged the 
Japanese government to make maximum diplomatic efforts so that the 
name is not removed, and to ask the U.S. government to firmly uphold 
its policy stance of not de-listing the DPRK. 
 
9) Lower House committee in unprecedented move adopts resolution 
opposing US delisting North Korea from its list of state sponsors of 
terrorism, noting, "Delisting could have a serious impact on the 
Japan-US alliance" 
 
Nikkei (Page 2) (Full) 
December 6, 2007 
 
The Lower House Abduction Issue Special Committee yesterday adopted 
a resolution opposing the US government removing North Korea from 
its list of state sponsors of terrorism with approval given by the 
Liberal Democratic Party (LDP), the Democratic Party of Japan (DPJ 
or Minshuto) and the New Komeito. The resolution mentioned that 
delisting North Korea from the US list of state sponsors of 
terrorism, when victims of the abductions by North Korea have not 
returned home, would disappoint many Japanese people, seriously 
affecting the bilateral alliance. It is unprecedented for any Diet 
committee to adopt a resolution on a specific foreign relations 
policy of the US. 
 
At work behind the move is a sense of crisis that the US government 
could notify the Congress of its decision, a procedure needed to 
remove that nation from the list, as early as within the year. 
However, giving consideration to the US, the resolution will not be 
sent to a plenary session, with one noting, "The will of the people 
has been indicated with the adoption of the resolution by the 
committee." Chair Kazuo Shii of the Japanese Communist Party, which 
opposed the adoption of the resolution, released a comment noting 
that no country should bind other country's means of negotiations. 
 
10) U.S., DPRK fail to agree on "list of nuclear programs to be 
declared"; U.S. Assistant Secretary Hill arrives in Beijing and 
hints at failure in talks with DPRK 
 
YOMIURI (Page 7) (Slightly abridged) 
December 6, 2007 
 
Takeo Miyazaki, Beijing 
 
The U.S. chief negotiator in the six-party talks to discuss the 
North Korean nuclear issue, Christopher Hill, U.S. assistant 
secretary of state, arrived in Beijing yesterday after finishing his 
 
SIPDIS 
visit to North Korea. The focus of his North Korea visit this time 
was on whether he was able to pave the way for North Korea to 
prepare a draft of a list of all nuclear programs to be declared as 
agreed on, but late yesterday, speaking of the contents of the 
declaration to reporters in Beijing, Hill said: "There are some 
differences between the United States and North Korea regarding what 
should be included in the declaration." This remark implied that the 
talks between the U.S. and North Korea ended in failure. It has 
become difficult accordingly for the six-party talks to resume a 
meeting at an early date. 
 
Referring to the rescheduled session of the chief delegates to the 
six-party talks, Hill indicated that "The session may be delayed to 
 
TOKYO 00005465  007 OF 014 
 
 
early January as the time is limited." 
 
The joint document adopted in October by the members of the 
six-party talks stipulates that as the "second-phase actions" toward 
the denuclearization (of the Korean Peninsula), a "declaration of 
all nuclear programs" and the "disablement of three nuclear 
facilities in Yongbyon" should be implemented by the end of the 
year. In order to achieve those goals, final coordination had 
proceeded among the countries concerned. 
 
Hill did not make clear in specific terms what were the differences 
of views about the declaration of nuclear programs, but he revealed 
that he assumed a tougher stance than before toward the North, 
noting, "I insisted on including in the declaration all nuclear 
programs, facilities, and materials. Even the draft of the 
declaration should be complete and accurate." On the other hand, 
Hill appreciated the disablement process, noting, "It is going 
smoothly." 
 
The North was initially expected to submit a draft declaration list 
within November, but the submission of the draft has been delayed. 
One reason for the delay would be that the U.S. imposed additional 
conditions to deal with the three suspicions: the uranium enrichment 
program, extraction of plutonium, and the transfer of nuclear 
technology to third countries. 
 
According to an informed source, the U.S. government initially had 
had no intention of rigorously pursuing those three suspicions, but 
it reversed its previous stance out of consideration for Prime 
Minister Fukuda's opposition to America's delisting North Korea as a 
state sponsor of terrorism shown during his visit to the U.S. in 
November. 
 
Because of those additional conditions for the North to meet in 
drafting a list of the declaration, the North would think that it 
has become difficult for the U.S. to remove the North from the list 
of state sponsoring terrorism and lift the Trading with the Enemy 
Act now imposed on the North by the end of the year. According to 
Hill, in the meeting between him and North Korea's chief negotiator 
in the six-party talks, Kim Gye Gwan, vice foreign minister of North 
Korea, Kim did not accept America's request on the scene, and said, 
"Haste makes waste" as if to gain time. 
 
The differences over the declaration remain to be ironed out, and in 
addition, it has become almost impossible to hold a six-party 
meeting by the end of the year to discuss the contents of the 
declaration. Given all these, it is extremely difficult to have 
North Korea make a "declaration of all its nuclear programs" by the 
end of the year; accordingly, the nuclear disablement process may be 
delayed extensively. 
 
11) Prime minister to set up study group on foreign policy in 
preparation for summits 
 
ASAHI (Page 4) (Full) 
December 6, 2007 
 
Prime Minister Fukuda yesterday announced his plan to launch a study 
group on foreign policy to listen to views from knowledgeable 
persons about key diplomatic issues. Its first meeting will be held 
at a Tokyo hotel on Dec. 9. The panel will work out a strategy to 
enable Prime Minister Fukuda to take a positive approach at the 
 
TOKYO 00005465  008 OF 014 
 
 
Japan-China summit scheduled for later this year and the Lake Toya 
Summit next July. The prime minister picked many experts who place 
emphasis not on values, as advocated by former Prime Minister Abe in 
his "proactive foreign policy," but on pragmatism. The lineup of the 
new panel reflects the basic stance of Fukuda diplomacy. 
 
In a press conference yesterday, Chief Cabinet Secretary Machimura, 
who will join the study group with the prime minister, emphasized 
the significance of the study group, saying: "The prime minister has 
a variety of knowledge as information of background. This will 
contribute to his developing thoughtful summit diplomacy." 
 
National Defense Academy Principle Makoto Iokibe, an expert on 
security issues, will serve as chairman. The panel will be composed 
of 11 former diplomats, academics, and former economic government 
officials. The members include former Ambassador to China Sakutaro 
Tanino, National Graduate Institute for Policy Studies Vice 
President Takashi Shiraishi, and Japan Association of Corporate 
Executives Vice President Yorihiko Kojima. A government source said: 
"The persons picked by the prime ministers are not thinkers; he has 
placed emphasis on practical individuals, reflecting his personnel 
connections." 
 
The new panel is modeled after the taskforce on external relations 
aimed at diplomacy led under the Prime Minister's Office, set up 
with former Special Advisor to the Prime Minister Yukio Okamoto as 
chairman when Fukuda was serving as chief cabinet secretary under 
the Koizumi administration. Five members of the taskforce, including 
Okamoto, have joined the new study group. 
 
Prime Minister Fukuda set forth strengthening the Japan-US alliance 
during his first visit to the US as prime minister in November and 
promoting Asia diplomacy when he visited Asia the same month. The 
new diplomatic panel is expected to discuss how to promote these two 
challenges simultaneously. The focus of discussion will also be on 
such international economic issues as an economic partnership 
agreement (EPA) with Asia. 
 
The panel will hold meetings not at the Prime Minister's Official 
Residence (Kantei) but at such unofficial arenas as hotels in Tokyo 
as needed. It will not produce reports but intends to carry the 
gists of discussion on the Kantei's website. 
 
Shiraishi commented: "Japan's foreign policy has been drawn up under 
the lead of the Foreign Ministry. The panel is expected to become 
something like a sounding board to inform the prime minister of 
broad views, including a long-term strategy." 
 
Members of the study group 
 
? Makoto Iokibe (chairman, National Defense Academy president) 
? Yukio Okamoto (former special advisor to the prime minister) 
? Masao Okonogi (Keio University professor) 
? Shinichi Kitaoka (Tokyo University professor, former deputy 
ambassador to the UN) 
? Yorihiko Kojima (Japan Association of Corporate Executives Vice 
President) 
? Kyosuke Shinozawa (former  Japan Bank for International 
Cooperation governor, former administrative vice minister) 
? Takashi Shiraishi (National Graduate Institute for Policy Studies 
Vice President) 
? Akihiko Tanaka (Tokyo University professor) 
 
TOKYO 00005465  009 OF 014 
 
 
? Sakutaro Tanino (former ambassador to China) 
? Hiroshi Nakanishi (Kyoto University professor) 
? Osamu Watanabe (former Japan External Trade Organization 
president, former administrative METI minister) 
 
12) Fukuda decides to use two-thirds override vote on new 
antiterrorism law 
 
YOMIURI (Page 1) (Abridged) 
December 6, 2007 
 
Prime Minister Fukuda made up his mind yesterday to revote on the 
new antiterror law in the House of Representatives in order to enact 
it with a concurring two-thirds vote, if the bill is voted down in 
the House of Councillors. The legislation is intended to resume the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean. 
Fukuda will shortly coordinate with the ruling coalition of the 
Liberal Democratic Party and New Komeito. The current Diet session, 
which is to end on Dec. 15, will be reextended. 
 
Fukuda has reiterated that Japan should resume the MSDF's refueling 
mission in the Indian Ocean at an early date since it is highly 
appreciated in the international community. 
 
Debate on the new antiterrorism bill started full-scale in the House 
of Councillors Foreign Affairs and Defense Committee on Dec. 4. The 
Diet does not have enough time until the end of its current session, 
so the ruling coalition deems an extension unavoidable. "The prime 
minister is determined," an LDP executive said yesterday. This LDP 
executive nixed the option of scrapping the new antiterror bill. "We 
will reextend the Diet session to take a vote again on the 
legislation," he added. 
 
Meanwhile, the leading opposition Democratic Party of Japan 
(Minshuto) is opposed to revoting on the legislation. The DPJ is 
ready to censure the prime minister in the House of Councillors. 
However, the ruling coalition takes the position that censure has no 
legal validity. "We don't have anything to fear," one lawmaker in 
the ruling coalition said. 
 
13) Ozawa eyes over 180 single seats in next Lower House election 
 
SANKEI (Page 5) (Full) 
December 6, 2007 
 
Major opposition Democratic Party of Japan (DPJ or Minshuto) 
President Ichiro Ozawa yesterday exchanged views in the city of 
Matsuyama with Rengo (Japanese Trade Union Confederation) Ehime 
executives. Touching on his party's target in the next House of 
Representatives election in which 300 single seats will be at stake, 
he said: "In order to have a working majority, we need to win over 
180 seats, definitely close to 200 seats. Having a working majority 
is best, but we definitely need to win over a half of the 300 
seats." 
 
14) Former MITI Minister Hiranuma steadily laying groundwork for 
next Lower House election, aiming at holding casting vote in 
political situation after election 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 6, 2007 
 
 
TOKYO 00005465  010 OF 014 
 
 
Takeo Hiranuma, an independent House of Representatives member and 
former MITI minister, has been actively taking preparatory steps for 
the next Lower House election. He is trying to increase influence in 
the ruling Liberal Democratic Party (LDP), by assuming the supreme 
advisory post of a study group of conservative LDP members. He is 
supporting conservative independent lawmakers as candidates who will 
face off against LDP candidates in the next election. He has been 
steadily laying groundwork to secure the political initiative after 
the Lower House election. 
 
"I will support him with all my might," Hiranuma said yesterday at a 
party held in Tokyo by Kazutaka Akamatsu, a former secretary to 
former Agriculture Minister Toshikatsu Matsuoka, who plans to run in 
the race as an independent from the Okayama No. 2 district. 
 
The LDP's Okayama No.2 district chapter is headed by Seiji Hagiwara, 
who won a proportional representation seat after being defeated in 
the No. 2 district race in the 2005 Lower House election. Hagiwara 
ran the 2005 race as "an assassin" against postal rebel Akihiko 
Kumashiro, who was forced to give up on running that election. 
 
Hiranuma, who represents the Okayama No. 3 district and who has 
influence in the No. 2 district, is now determined to back Akamatsu 
as an "assassin" to take out Hagiwara. Hiranuma's moves will likely 
increasingly make the LDP annoyed. 
 
Hiranuma, however, has not neglected to cooperate with the LDP, as 
well. He became a supreme advisor to a study group of conservative 
LDP lawmakers, which Shoichi Nakagawa, a former MITI minister, 
formed on Nov. 4. 
 
According to political fund-management organizations' fund reports 
(for fiscal 2006), Hiranuma backed postal rebels who were defeated 
in the 2005 Lower House election. He also supported by purchasing 
party tickets those postal rebels who had returned to the LDP after 
winning Lower House seats. The reason for Hiranuma's seeking 
opportunities to cooperate with independents and LDP lawmakers is 
that the LDP is expected to face an uphill battle in the next Lower 
House race. 
 
Should neither the ruling coalition nor the main opposition 
Democratic Party of Japan (DPJ or Minshuto) win the majority (241) 
of the Lower House seats, there would be a possibility that Hiranuma 
and other independent lawmakers would hold a casting vote. Hiranuma 
might secure the initiative by obtaining cooperation from many 
people. 
 
Even if the ruling camp wins big, the present political distortion, 
in which the opposition camp controls the Upper House and the ruling 
bloc holds a majority in the Lower House, will not change. 
Therefore, there remains a possibility of attempting to bring about 
political realignment centered on "sound conservatives." Hiranuma 
has repeatedly indicated since October his determination to play a 
role in political realignment. 
 
A junior LDP lawmaker, however, said: "He lost influence in our 
party when he left it." Right now, Hiranuma appears to be preparing 
for the election, looking at all possibilities. 
 
15) Former Prime Minister Abe to visit his home turf tomorrow 
 
SANKEI (Page 5) (Full) 
 
TOKYO 00005465  011 OF 014 
 
 
December 6, 2007 
 
Former Prime Minister Shinzo Abe will visit his home turf of 
Yamaguchi Prefecture on Dec. 7-10 for the first time in 15 moths 
since becoming prime minister in September 2006. After holding a 
press conference on Dec. 7 in the city of Yamaguchi, Abe plans to 
visit his home constituency of Shimonoseki and other places to 
explain past developments that led to his resignation as prime 
minister due to poor health and seek support for resumption of his 
activities. 
 
16) Koga, Tanigaki factions to merge by next spring: New faction to 
give party in April 
 
YOMIURI (Page 4) (Full) 
December 6, 2007 
 
Senior members of the Koga and Tanigaki factions of the Liberal 
Democratic Party (LDP) yesterday evening met at a Japanese 
restaurant in Tokyo. Participants agreed that the two factions merge 
by next spring. They want to see the new party hold a fund-raising 
party in April. Leaders of the two factions are expected to formally 
decide on the merger plan early next year. 
 
The talks yesterday was joined by Makoto Koga, LDP Election 
Committee chairman, Seiichi Ota, director general of the former 
Management and Coordination Agency, and Lower House member Koji Nita 
from the Koga faction and Jiro Kawasaki, former Health, Labor and 
Welfare minister and others from the Tanigaki faction. No objection 
was reportedly raised against the idea of the new faction holding a 
fund-raising party. 
 
One senior Koga faction member yesterday evening noted, "Some senior 
members were against the proposal for merger, but now they are 
indicating a stance of approving it. The two factions will likely 
merge by February or March." A senior member of the Tanigaki faction 
also said, "We will merge early next year at the earliest." 
 
The membership of the merged faction will be 61, nearly equal to 
that of the second largest Tsushima faction (67). 
 
17) Fukushima in third term as SDP head eager to regain party 
strength, but concern voiced about her sole emphasis on protection 
of Constitution 
 
ASAHI (Page 4) (Full) 
December 6, 2007 
 
Mizuho Fukushima will launch her third term as head of the Social 
Democratic Party of Japan (SDP) President on Dec. 22. The party 
holds seven seats in the House of Representatives and five in the 
House of Councillors. The party aims to restore its strength in the 
next general election. Although Fukushima has emphasized the 
importance of protecting the Constitution in her long advocacy, 
debate on a revision of the Constitution has kept a low-profile 
after the Abe administration toppled. Some party members are aiming 
to change the SDP into a party that can respond to calls from 
households and local communities. 
 
In a press conference yesterday, Fukushima said: "If the SDP is able 
to increase its seats, the Democratic Party of Japan will likely 
give consideration to its views. A victory of our party will lead to 
 
TOKYO 00005465  012 OF 014 
 
 
protecting the Constitution." The national referendum law will go 
into effect three years later. On this issue, Fukushima said: "The 
Liberal Democratic Party might take action during the last one 
year," emphasizing the significance of making the debate over 
protecting the Constitution the central issue in the next general 
election campaign. 
 
Former Policy Council Chairman Kiyomi Tsujimoto also said: "There is 
no need for the party to abandon the asset inherited from the former 
Japan Socialist Party called 'the party of protection of the 
Constitution'. The presence of such a party is becoming more 
important now." 
 
But a senior SDP member said: "If we continue to focus only on 
protecting the Constitution, it may be difficult to expand the 
party's strength." Fukushima was elected as party head without a 
vote. Policy Council Chairperson Tomoko Abe, who did not recommend 
Fukushima, stated: "The SDP should become a party that ushers in new 
values, coming up environment-friendly agricultural policies or 
policymaking in cooperation with nonprofit organizations." Election 
Committee Chairman Sadao Fuchigami, a veteran lawmaker, also 
commented: "There is a showcase called 'the Social Democratic 
Party,' but there are no goods to sell. It is necessary for the 
party to come up with specific policy proposals on education and 
livelihood." 
 
Fukushima, aware of the need for such policy proposals, said: 
"Although there are still core fans for the policy of protecting 
Constitution, we would like to also pour our energy into such areas 
as medical care, employment and regional discrepancies. The party 
intends to prepare measures to secure obstetricians and 
gynecologists." But the SDP has yet to prepare a trump card. 
 
18) Surveillance system to undergo sea change: Amendment to 
Political Funds Control Law to be passed into law next week 
 
YOMIURI (Page 4) (Excerpts) 
December 6, 2007 
 
The Liberal Democratic Party (LDP), the Democratic Party of Japan 
(DPJ or Minshuto), the New Komeito, the Social Democratic Party and 
the People's New Party at a meeting of their Diet Affairs Committee 
chairmen yesterday agreed to submit to the Diet a bill amending the 
Political Funds Control Law featuring disclosure of receipts for 
payments exceeding a single yen and to have the bill enacted next 
week. Following a flurry of scandals involving lawmakers' political 
organizations, both the ruling and opposition camps had decided to 
secure transparency in politics and the flows of money with a new 
system. 
 
The revised bill will likely be introduced at the Lower House 
Special Committee on Political Ethics Establishment and Amendment to 
the Public Offices Election Law in the form of a proposal by the 
chairman, adopted in both chambers of the Diet and passed into law. 
The new system will be implemented on Jan. 1, 2008. It will be first 
applied to political funds report for 2008 to be submitted by the 
end of March, 2009. 
 
The Japanese Communist Party during the Diet Affairs Committee 
chairmen's meeting opposed the proposal for establishing a political 
funds rationalization committee, a third-party organ to be set up to 
audit political funds reports, citing a concern that such a 
 
TOKYO 00005465  013 OF 014 
 
 
committee could interfere with political activities. 
 
The envisaged system will be applied to among about 70,000 political 
organizations throughout the nation approximately 5,000 
organizations related to lawmakers and potential candidates for 
national elections. 
 
19) Hokkaido Toyako Summit: Niseko Higashiyama Prince Hotel a 
leading candidate to accommodate U.S. delegation; Noboribetsu Grand 
Hotel also a candidate 
 
HOKKAIDO SHIMBUN (Page 1) (Full) 
December 5, 2007 
 
The Niseko Higashiyama Prince Hotel (200 rooms in main building, 500 
rooms in new annex) in the town of Niseko in Shiribeshi has surfaced 
as a likely candidate to accommodate the United States delegation 
comprising some 800 personnel, the largest scale among the 
participating countries, during the G8 Hokkaido Toyako Summit on 
(July 7-9) next year, sources concerned said by yesterday. The 
Ministry of Foreign Affairs (MOFA) has also indicated that the hotel 
is one of the candidates. The United States, however, is also 
checking the Noboribetsu Grand Hotel (261 rooms) in the Noboribetsu 
hot-spring resort area as a candidate. MOFA plans to make final 
coordination with the U.S. government and the hotel. 
 
According to accounts by the sources concerned, after a decision was 
made in April on the Toyako Summit, the Japanese government sounded 
out the U.S. side on using a major hot-spring hotel in the town of 
Toyako in Iburi, home to The Windsor Hotel Toya, the main summit 
venue. 
 
In response, the U.S. side expressed concern that in the case of the 
Toyako hot-spring area hotel, they might have to use it jointly with 
other participating countries. The U.S. independently examined 
hotels, and as a result, the two hotels have suddenly surfaced. 
 
The Higashiyama Price Hotel has 700 rooms. If nearby hotels are 
included, it may be able to meet the U.S. "one-person-one-room" 
principle putting high priority on privacy. The probability of 
turning parking lots and golf courses into heliports seems to have 
received high recognition as well. 
 
The distance between the hotel and the main summit venue is 
approximately 46 kilometers via roads and National Highway 230. 
Visiting there frequently, U.S. government officials have been 
checking the hotel based on a plan to reserve all of its rooms. 
 
The Seibu Group opened the Niseko Higashiyama Prince Hotel along 
with the sky resort in 1982. But the group decided to sell it due to 
its financial crisis. The hotel was purchased by Citigroup, a major 
U.S. banking institution, in March this year. It later concluded a 
management contract with the global hotel chain Hilton Hotels Corp. 
 
The hotel is scheduled to operate under the new name of Hilton 
Niseko Village in July 2007. If the U.S. delegation is to stay 
there, the U.S. government would indirectly support the American 
hotel immediately after its opening. 
 
The Noboribetsu Grand, on the other hand, is a hotel that can offer 
Western style services, which is rare in hot-spring resort areas, 
with nearly 90 Western style rooms, which is far less than that of 
 
TOKYO 00005465  014 OF 014 
 
 
the Higashiyama Prince Hotel, however. The hotel is scheduled to 
complete its grand renovation by the consecutive holidays in May 
2007, its 70th anniversary. The hotel is about 69 kilometers away 
from the main summit venue via the Hokkaido Expressway. 
 
The hotel is earnestly selling itself by playing up such historical 
events as that the late Emperor Showa (Hirohito) stayed there twice 
and that it was requisitioned by the Allied Forces General 
Headquarters (GHQ) after WWII. U.S. government officials also seem 
to be checking the communications environment, security, and other 
factors. 
 
Reportedly, the two hotels are being challenged to improve their 
communications environments and their funding. 
 
There is information that Britain has already secured a hotel on 
Lake Toya for the summit. 
 
SCHIEFFER