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UNCLAS SECTION 01 OF 11 TOKYO 005504 
 
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 12/11/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Yomiuri poll: Public remains split, 45 PERCENT  for and 43 
PERCENT  against, on the new antiterrorism special measures bill now 
before the Diet (Yomiuri) 
 
U.S. base issues: 
5) -- Negotiations on host-nation support for U.S. forces in Japan 
reaches final stage, with foreign and finance ministries still 
locking horns over cutting funds (Nikkei) 
6) -- Environmental assessment for Futenma relocation may start in 
January; Government and Okinawa still at odds over altering plan 
(Yomiuri) 
7) -- Third strike of Japanese employees at U.S. bases linked to 
cuts in salaries funded by Japan's host-nation support budget 
(Yomiuri) 
8) -- At 70 million yen a house, Defense Minister calls the 
estimated cost of planned Marine housing on Guam too pricy (Yomiuri) 
 
 
9) U.S. Embassy after 10 years of negotiating over old documents 
with Japanese government pays up rent in arrears (Mainichi) 
 
Diet clashes: 
10) -- LDD, Komeito to make final decision today to re-extend the 
Diet session to Jan. 15 in order to allow time to pass the 
antiterrorism bill (Sankei) 
11) -- Conflict in Diet between ruling and opposition camps over 
antiterror bill is intensifying (Tokyo Shimbun) 
 
Economic affairs: 
12) -- Government plans to assist small companies hit hard by rising 
fuel costs (Yomiuri) 
13) -- Government sees 2 PERCENT  growth possible next fiscal year 
despite high cost of oil (Sankei) 
 
14) Cop13: Chairman's call for 25-40 PERCENT  cuts in emissions by 
advanced countries has Japan, U.S. upset (Yomiuri) 
 
15) Foreign Ministry protests China's removing parts of recent joint 
communiqu after high-level economic talks (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Social Insurance Agency faces difficulty in identifying 19.75 
million pension accounts 
 
Mainichi & Yomiuri: 
Putin names Medvedev, first deputy prime minister, as successor 
 
Nikkei: 
Swiss bank UBS to post 1.1 trillion yen in losses caused by subprime 
loans 
 
Sankei: 
 
TOKYO 00005504  002 OF 011 
 
 
20 PERCENT  of missing pension records difficult to identify 
 
Tokyo Shimbun: 
Aichi Prefectural Police Headquarters to prosecute sumo wrester's 
death as criminal case 
 
Akahata: 
JCP member stresses in Diet session need for aid to poor people 
 
2) EDITORIALS 
 
Asahi: 
(1) New national soccer team coach Okada should make use of his 
experience while valuing what Osim left 
(2) Local governments urged to set up patient-friendly systems 
 
Mainichi: 
(1) Begin with the nature of official duties in streamlining 
independent administrative corporations 
(2) Make e-voting a new step toward democracy 
 
Yomiuri: 
(1) Easing import conditions for U.S. beef proper 
(2) Japan, China should deepen dialogue on Nanjing Incident on 
occasion of 70th anniversary 
 
Nikkei: 
(1) Eliminate waste from special accounts 
(2) Chinese Foreign Ministry must be aware of the weight of 
diplomatic documents 
 
Sankei: 
(1) Excessively staged TV programs lose viewers' trust 
(2) Senba Kitcho must translate self-reflection into action 
 
Tokyo Shimbun: 
(1) Mislabeling by Senba Kitcho exposes arrogance and 
irresponsibility 
(2) Gradually deregulate double-billing system for medical services 
 
 
Akahata: 
(1) Drastically review Worker Dispatch Law from standpoint of 
workers 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 9 
 
NIKKEI (Page 2) (Full) 
December 11, 2007 
 
Morning 
Stayed at his official residence in Nozawa. 
 
17:43 
Attended a foreign policy study meeting held at the Hotel Okura. 
 
20:53 
Retuned to his residence. 
 
Prime Minister's schedule, December 10 
 
TOKYO 00005504  003 OF 011 
 
 
 
NIKKEI (Page 2) (Full) 
December 11, 2007 
 
08:24 
Met Deputy Chief Cabinet Secretary Iwaki at the Kantei. 
 
09:00 
Attended an Upper House Audit Committee meeting. 
 
12:06 
Attended a government and ruling coalition liaison meeting at the 
Kantei. Afterward met Chief Cabinet Secretary Machimura. 
 
13:00 
Attended the Upper House Audit Committee meeting. 
 
17:03 
Attended an LDP executive meeting. Afterward met LDP tax commission 
chief Tsushima and subcommittee chief Yosano. 
 
17:41 
Met Deputy Chief Cabinet Secretary Futahashi at the Kantei. 
 
18:02 
Held talks with President Rajapaksa of Sri Lanka and a joint press 
conference. Afterward hosted with his wife a dinner party for the 
president. 
 
21:14 
Returned to his private residence. 
 
4) Poll: Public split over antiterror bill 
 
YOMIURI (Page 2) (Slightly abridged) 
December 11, 2007 
 
A new bill is now before the Diet to resume the Maritime 
Self-Defense Force's refueling activities in the Indian Ocean. In 
the event the House of Councillors votes down the legislation, the 
House of Representatives may override the opposition-dominated upper 
chamber's decision with the ruling coalition's concurring majority 
of two-thirds. In a recent face-to-face public opinion survey 
conducted by the Yomiuri Shimbun on Dec. 8-9, respondents were asked 
if they thought it would be appropriate for the Diet's lower chamber 
to do so. In response to this question, 43 PERCENT  answered "yes," 
with 44 PERCENT  saying "no." 
 
Respondents were also asked if they supported the new antiterror 
legislation. To this question, 45 PERCENT  answered "yes," with 43 
PERCENT  saying "no." Among those who answered "yes," 66 PERCENT 
think it is appropriate to override the upper chamber's decision, 
while 26 PERCENT  think it is inappropriate to do so. Among those 
who answered "no," 69 PERCENT  think it is inappropriate to do so, 
but the proportion of those who think it is appropriate also reached 
25 PERCENT . 
 
Respondents were further asked if they supported the government's 
plan to resume the MSDF's refueling activities. To this question, 48 
PERCENT  answered "yes," with 41 PERCENT  saying "no." In this 
October's survey and in the following survey, "yes" accounted for 
nearly 50 PERCENT  and "no" at around 40 PERCENT . 
 
TOKYO 00005504  004 OF 011 
 
 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 35.3 PERCENT , up slightly from 
the last survey taken in November (34.3 PERCENT ). The leading 
opposition Democratic Party of Japan (Minshuto) was at 17.1 PERCENT 
, down 5.4 percentage points. 
 
The rate of public support for the Fukuda cabinet was 52.5 PERCENT 
(52.2 PERCENT  in the last survey). The nonsupport rate was 35.3 
PERCENT  (36.0 PERCENT  in the last survey). 
 
5) Sympathy budget for U.S. forces in final stage of negotiations 
 
NIKKEI (Page 2) (Full) 
December 11, 2007 
 
Japan and the United States are in the final stage of 
intergovernmental negotiations to revise an agreement regarding 
Japan's host nation support (omoiyari yosan or literally "sympathy 
budget") for U.S. Forces Japan. The Japanese government insists on 
the necessity of cutting down on its budgetary burden of hosting 
USFJ due to financial stringency. The U.S. government is strongly 
opposed to reduction. The Japanese government wants to settle the 
negotiations within this week. However, its negotiating ministries 
are getting out of step. The final cutback is expected to be 
downscaled in consideration of relations with the United States. 
 
"We wanted to settle the talks last month," Administrative Vice 
Foreign Minister Shotaro Yachi said in a news conference yesterday. 
"But," Yachi went on, "we couldn't reach an agreement." He added, 
"We're now in working out details in connection with budget 
compilation." With this, he stressed that the negotiations are now 
in the final stage. 
 
The sympathy budget is made up of two portions, which are under the 
Japan-U.S. Status of Forces Agreement (SOFA) and a special 
agreement. The SOFA portion covers outlays for U.S. military 
facilities in Japan, amounting to 76.5 billion yen for FY2007. The 
special agreement portion covers basic wages for Japanese employees 
working at U.S. military bases in Japan. In addition, this special 
slot covers utilities, amounting to 140.8 billion yen. The current 
agreement is for a period of two years up until the end of next 
year. However, the Japanese and U.S. governments are coordinating to 
enter into a new agreement for a period of three years. 
 
The Japanese government, centering on the Finance Ministry, proposed 
cutting back on utilities currently up to approximately 25 billion 
yen. The U.S. government is strongly opposed to the proposed cutback 
in the coverage of utilities because of the growing amount of 
military costs for the Iraq war and antiterror mop-up operations in 
Afghanistan. 
 
The Foreign Ministry asked the Finance Ministry for special 
consideration. "For the United States, the sympathy budget is a 
priority issue that is on a par with the new refueling legislation 
or beyond it," a senior official of the Foreign Ministry said. The 
Finance Ministry is seeking to reduce maintenance costs for provided 
facilities and is also looking for other budget-cutting ways that 
will not directly affect the United States. 
 
There is a time limit to the ongoing negotiations, so the government 
is also expected to maintain the special agreement and reduce the 
 
TOKYO 00005504  005 OF 011 
 
 
sympathy budget as a whole. 
 
6) Environmental assessment for Futenma relocation may start in 
January; Government and Okinawa still at odds over altering plan 
 
YOMIURI (Page 4) (Full) 
December 11, 2007 
 
The government has decided to begin as early as next January an 
environmental impact assessment of the coastal area of Camp Schwab 
in Nago, the relocation site for the Marine Corps' Futenma Air 
Station in Ginowan. The government, Okinawa, and affected 
municipalities are expected to confirm "efforts for the smooth 
implementation of the assessment" at their Futenma relocation 
consultative meeting tomorrow. The relocation plan has taken a step 
forward with the start of the environment impact assessment, the 
basis for building an airport. Nevertheless, the plan's future is 
still murky because the government and Okinawa still remain at 
loggerheads over making changes to the alternative facility, coupled 
with the bribery and corruption scandals involving the Ministry of 
Defense (MOD). 
 
The government announced yesterday that the Futenma relocation 
consultative council would meet tomorrow, following the last meeting 
on Nov. 7. At the council meeting, views will be exchanged on the 
alternative facility construction plan after confirming the start of 
the environmental impact assessment and its specific procedures. In 
August this year, the then Naha Defense Facilities Administration 
Bureau (currently the Okinawa Defense Bureau) sent to the 
prefectural government a notice specifying the outline of the 
environmental impact assessment to be conducted by MOD. But the 
prefectural government reacted strongly to it, saying it contains 
many flaws. This made it difficult for Japan to realize the 
relocation by 2014, as was agreed upon with the United States. 
 
Given the situation, Tokyo earlier this month renewed its call for 
an early implementation of the environmental assessment, and Okinawa 
accepted it in principle. About the background of Okinawa's 
acceptance of the assessment, a ruling party member explained: 
"Okinawa shares the desire for pushing the planned relocation 
forward. Okinawa probably needed the steady implementation of the 
economic package for the prefecture." 
 
Given bright prospects for starting the assessment, the government 
plans to implement shortly the Okinawa northern area economic 
package (10 billion yen for fiscal 2007) that has been frozen. 
 
The government plans to build a V-shaped pair of runways at the 
coastline of Camp Schwab, but Governor Hirokazu Nakaima has asked 
the government to move them out to sea, saying, "They would have 
adverse effects on the living and natural environments; it is not 
the best plan." But the government is insisting on building the 
runways, as planned, and the two sides remains at odds. At 
tomorrow's meeting, they are expected to simply confirm continued 
talks on the construction plan. Once the environmental impact 
assessment is over, the government will file a request with the 
governor to allow the central government to reclaim public waters 
around Camp Schwab. If the governor rejects the request, the 
relocation plan might stall. 
 
Former Administrative Vice-Defense Minister Takamasa Moriya, who is 
under arrest for taking bribes over the procurement of defense 
 
TOKYO 00005504  006 OF 011 
 
 
equipment, was deeply involved in the process of adopting the 
government plan. If there are unclear points in the process, calls 
for a review of the plan might grow louder. 
 
7) Zenchuro plans third strike tomorrow 
 
YOMIURI (Page 4) (Full) 
December 11, 2007 
 
Talks between the All Japan Garrison Forces Labor Union (Zenchuro) 
and the Ministry of Defense (MOD) over reducing the salaries and 
allowances of Japanese employees working at U.S. bases in Japan as 
part of the plan to review Japan's host-nation support (commonly 
called the sympathy budget) for U.S. forces in Japan are now in the 
final stage. The two sides held informal talks yesterday but failed 
to reach an accord. MOD plans to present a compromise plan in talks 
today. If agreement is not reached, Zenchuro is set to stage a third 
strike tomorrow. 
 
8) Housing units on Guam that cost 70 million yen per unit "way too 
expensive," says defense minister 
 
YOMIURI (Page 4) (Full) 
December 11, 2007 
 
Defense Minister Shigeru Ishiba revealed at yesterday's House of 
Councillors Audit Committee session that the government has received 
a U.S. estimate that building housing units on Guam for U.S. Marines 
to be relocated from Okinawa would cost Japan approximately 610,000 
dollars per unit. Ishiba expressed displeasure, saying: "Is it 
necessary to build housing units costing over 70 million yen (per 
unit) with taxpayer money? It is way too expensive from the 
perspective of ordinary people. We will ask for the basis of the 
estimate and closely examine it." 
 
9) U.S. Embassy in Japan pays rent for first time in decade after 
refusing based on old document 
 
MAINICHI (Page 2) (Full) 
December 11, 2007 
 
The U.S. government had failed to pay rent on the approximately 
130,000 square meters in state-owned land where its embassy is 
located (Minato Ward, Tokyo), since 1998. However, it has decided to 
start paying the rent after a 10 year hiatus. It had been opposed to 
a major hike in rent. However, since the rent for fiscal 1998 will 
reach the statute of limitations this month, the governments of both 
countries yesterday reached an agreement that the rent be raised in 
stages. 
 
According to the Finance Ministry, rent for the U.S. Embassy has 
been revised twice in proportion to rises in the prices of nearby 
land. The annual rent from 1983 through 1997 was 2.52 million yen. 
When the ministry sounded out the embassy about a third increase, 
the U.S. side refused to pay based on a document signed more than a 
century ago, noting that since the contract signed in 1896 did not 
provision on a rise in rent, it was not possible to accept a request 
for a rent increase. 
 
The governments of Japan and the U.S. agreed that the annual rent 
for 1998-2007 should be 7 million yen, rising to 10 million yen 
annually in 2008-2012 and to 15 million yen in 2013-2027. The U.S. 
 
TOKYO 00005504  007 OF 011 
 
 
has as of Dec. 10 paid 70 million yen covering the 10-year period. 
 
10) LDP, New Komeito to decide today to re-extend extra Diet session 
until Jan. 15, with eye on two-thirds majority vote on new 
antiterrorism bill 
 
SANKEI (Page 3) (Slightly abridged) 
December 11, 2007 
 
The government and ruling parties has decided to re-extend until 
Jan. 15 the current extraordinary Diet session, which will end on 
Dec. 15. Prime Minister Yasuo Fukuda and New Komeito Chief 
Representative Akihiro Ota will meet today to make a formal 
decision. With the present political situation, in which the ruling 
coalition holds a majority in the House of Representatives and the 
opposition camp controls the House of Councillors, there is no 
prospect that a new antiterrorism special measures bill will be 
enacted into law during the current session. The government and 
ruling camp have, therefore, determined that it is necessary to 
secure more days for a two-thirds vote in the Lower House, which is 
allowed by Article 59 of the Constitution, which stipulates that if 
the Upper House fails to take a vote on a bill within 60 days after 
it received it from the Lower House, it may be determined that the 
lower chamber rejected the bill. As the government and ruling 
coalition have generally decided to convene a regular session on 
Jan. 18, the ongoing session will continue until early January next 
year. 
 
Since opposition parties, including the Democratic Party of Japan 
(DPJ or Minshuto), have strongly opposed a lengthy re-extension of 
the extra session, chances are that a planned one-on-one meeting 
between the Prime Minister and DPJ President Ichiro Ozawa will be 
canceled. If the bill is readopted by a two-thirds majority vote at 
the Lower House based on Article 59, useless Upper House debates 
might be prolonged. So, there is also a possibility of the 
tug-of-war between the ruling and opposition camps intensifying at 
the end of the year and beginning of the new year. 
 
Ruling Liberal Democratic Party (LDP) Diet Affairs Committee 
Chairman Tadamori Oshima held a meeting yesterday with his DPJ 
counterpart Kenji Yamaoka, in which Oshima said: 
 
"Instead of looking into a possibility of a permanent law on 
overseas dispatch of the Self-Defense Forces (SDF), I want the Upper 
House to put the bill on a vote before the end of the year." 
 
The meeting, however, ended in a failure, as Yamaoka insisted that 
top priority should be on shedding light on a series of scandals 
involving the Defense Ministry, including the bribery scandal caused 
by former Administrative Vice Defense Minister Takemasa Moriya. 
 
Given that, Oshima discussed the matter with LDP Secretary General 
Bunmei Ibuki and New Komeito Diet Affairs Committee Chairman Yoshio 
Urushibara. As a result, the three have decided that there is no 
other choice but to re-extend the current Diet session (until 
mid-January). The New Komeito, which had baulked previously at a 
lengthy Diet extension, reportedly showed understanding toward the 
idea. 
 
11-1) Ruling coalition decides to use Lower House revote to force 
through new antiterrorism bill, given distrust in DPJ 
 
 
TOKYO 00005504  008 OF 011 
 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
December 11, 2007 
 
The government and the ruling camp have decided to extend the 
current Diet session until the middle of January and force through 
the new antiterrorism bill by a two-thirds House of Councillors 
overriding vote. It is conceivable that the government may be forced 
to dissolve the House of Representatives for a snap election as a 
result of the standoff between the ruling and opposition camps 
escalating, but Prime Minister Fukuda seems to be making up his mind 
to do so. The Democratic Party of Japan (DPJ) will also be pressed 
to decide on whether to submit a censure motion against Prime 
Minister Fukuda early next year. 
 
In the ruling camp, Liberal Democratic Party (LDP) Secretary General 
Bunmei Ibuki, Executive Council Chairman Toshihiro Nikai, and Diet 
Affairs Committee Chairman Tadamori Omori met at party headquarters 
yesterday to make preparations for re-extending the Diet session. 
 
The ruling bloc has been discussing the length of extension of the 
Diet session, focusing on one month. In order to secure the 
enactment of the antiterror bill in the current Diet session, it is 
necessary to continue the session until January 12, when it becomes 
possible for the ruling coalition to use Lower House revote under 
the Constitution. 
 
But some LDP members and the New Komeito insisted that the length of 
extension should be a week or 10 days. If the government decides an 
unusual year-crossing extension, it will inevitably affect the 
process of compiling the FY2008 budget. Additionally, the Diet may 
be thrown into chaos, and the government may be pressed to dissolve 
the Lower House early next year. 
 
However, a DPJ member now assumes the chairmanship of the Upper 
House Foreign Affairs and Defense Committee, where deliberations on 
the antiterror bill are going on. Given this, the ruling coalition 
has judged it necessary to extend the Diet session through next 
year, even if there is some effect on the budget compilation. One 
lawmaker remarked: "If the Diet is extended for a short period and 
if the DPJ refuses to take a vote on the bill, the bill will be 
abandoned, with deliberations incomplete. Even if the DPJ pledges 
beforehand to take a vote, we cannot trust it." 
 
11-2) Sense of concern behind DPJ's strong opposition to lengthy 
extension of Diet session 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
December 11, 2007 
 
The Democratic Party of Japan (DPJ) yesterday strongly opposed the 
government's plan to re-extend the current Diet session for a 
lengthy period. In the case of a lengthy extension, the new 
antiterrorism bill will surely be passed by a two-thirds House of 
Representatives overriding vote and the main opposition party will 
be eventually driven into a difficult situation. 
 
DPJ Secretary General Yukio Hatoyama told reporters in Tokyo 
yesterday: "The session has already been extended by 35 days. It is 
outrageous that (the ruling camp) say more extra days are needed. A 
year-crossing Diet session contains an unstable factor. The 
government should not decide to do so for the sake of the people." 
 
 
TOKYO 00005504  009 OF 011 
 
 
DPJ Diet Affairs Committee Chairman Kenji Yamaoka also said during 
his separate meetings with his counterparts Tadamori Oshima of the 
Liberal Democratic Party and Yoshio Urushibara of the New Komeito: 
"If the session is extended further, three problems will emerge." As 
one problem, Yamaoka cited the possibility that former House of 
Councillors member Junichi Fukumoto, whose name was removed from the 
DPJ membership list, may be summoned as an unsworn witness, keeping 
in mind the New Komeito's unwillingness to allow his relations with 
the Soka Gakkai, its support group, to be taken up at the Diet 
 
A sense of concern is behind the DPJ's strong reaction to a lengthy 
extension, because if the ruling coalition decides to use Lower 
House revote, the DPJ will be pressed to make a hard decision on 
whether to submit a censure motion against Prime Minister Fukuda to 
the Upper House. 
 
12) Government decides to subsidize kerosene fees as measure against 
high crude oil prices: Conditions for repayment of loans small- and 
medium-size businesses have taken out from government-affiliated 
financial institutions to be eased 
 
YOMIURI (Page 11) (Excerpts) 
December 11, 2007 
 
The full text of basic guidelines to be adopted at an emergency 
cabinet meeting to be held to find measures to deal with high crude 
oil prices was revealed yesterday. As a cardinal feature of the 
package, the government will allocate special tax grants to local 
governments that subsidize kerosene fees for low-income earners. For 
small and medium-size businesses, which are suffering from high 
crude oil prices, it will ease conditions for the repayment of loans 
taken out from government-affiliated financial institutions. The 
government will formally adopt specific assistance measures within 
the year, based on the basic guidelines. Regarding measures that 
will require fiscal measures, it will make appropriations from the 
fiscal 2007 supplementary budget. 
 
Subsidies for kerosene fees have been adopted with the welfare 
kerosene system implemented by Kushiro City, Hokkaido, in mind. 
Fifty municipalities in Hokkaido either have implemented or are 
planning a similar system in fiscal 2007. Under the system, local 
governments issue kerosene vouchers or discount tickets to elderly 
people and single-mother households. Though the amounts of subsidies 
vary, depending on municipalities, one household receives between 
several thousand yen and about 30,000 yen. The government at present 
has no such subsidy system. However, according to the basic 
guidelines, it will allocate special tax grants to local governments 
that adopted such a system. Of the special local allocation tax, the 
use of 660 billion yen has not yet been decided. The government will 
likely use part of that money. 
 
Special tax grants will also be allocated to local governments whose 
expenses to maintain communications systems by air and sea and a 
public bus service system in regional areas have increased. 
 
13) Government's GDP forecast rate at around 2.0 PERCENT 
 
SANKEI (Page 1) (Excerpts) 
December 11, 2007 
 
It was revealed yesterday that the government was adjusting at 
around 2.0 PERCENT  a growth rate of the gross domestic product 
 
TOKYO 00005504  010 OF 011 
 
 
(GDP) excluding an effect by price changes regarding economic 
outlook, which will become a premise for economic and fiscal 
management for fiscal 2008. A nominal growth rate is expected to be 
more than 2.0 PERCENT , putting an end to the trend in which the 
real rate of growth exceeds the nominal rate of growth, for the 
first time in 11 years. Meantime, the government intends to lower 
the growth rate of real GDP for 2007 to around 1.7 PERCENT  from the 
initial projection of 2.1 PERCENT . 
 
Since the government's economic outlook is a premise for the 
compilation of state budget for the coming year, it is approved by 
the cabinet around Dec. 20 and it is formally decided by the cabinet 
in January every year. 
 
14) Bali climate change conference: Acrimonious exchange of views on 
chairman's proposal for cutting greenhouse gas emissions 25 PERCENT 
-40 PERCENT ; Japan, U.S. at odds with EU 
 
YOMIURI (Page 2) (Full) 
December 11, 2007 
 
Bali, Indonesia, Hiroko Kono 
 
The 13th session of the Conference of the Parties to the Climate 
Change Convention (COP13) yesterday entered full-fledged discussions 
on how to expedite international negotiations in the future and a 
road map for items up for consideration. However, the U.S. and Japan 
opposed the phrase "industrialized countries are to be urged to cut 
greenhouse gas emissions by 25 PERCENT -40 PERCENT  by 2020, 
compared with 1990 levels" included in a joint proposal made by a 
working group and the chairman as a draft. Acrimonious exchanges of 
views are continuing with the European Union (EU), which supports 
the chairman's proposal. 
 
The words in question are included in a preface to the main subject 
mentioning what should be decided at the session this time. The 
preface notes that in order to prevent the worst possible effects of 
climate change, it would be necessary for industrialized countries 
to cut greenhouse gas emissions by 25 PERCENT -40 PERCENT , the 
figures worked out based on science. The words are written in a 
manner that can be taken as a premise that all countries should 
accept. 
 
Harlan Watson, senior climate negotiator and special representative 
of the U.S. State Department, during a press conference on Dec. 10 
strongly criticized the proposal, saying, "The roadmap should allow 
no presuppositions regarding the outcome of future international 
negotiations. We cannot accept any numbers." Japan is also against 
the proposal, with a member of the government delegation noting, 
"Only the EU will be able to cut emissions by 25 PERCENT -40 PERCENT 
. Neither Japan nor the U.S. would be able to comply with a 
numerical goal." 
 
In response, a delegate from the EU announced a stance that the 
chairman's proposal should incorporate numbers, noting that 
negotiations must by pursued based on science instead of politics. 
United Nations Framework Convention on Climate Change (UNFCCC) 
Executive Secretary Yvo de Boer from the Netherlands during a press 
conference indicated his perception that the description, which 
would become a focal point of future negotiations, would be 
indispensable. He underscored, "Numbers will indicate a direction of 
the talks." 
 
TOKYO 00005504  011 OF 011 
 
 
 
15) China's altering joint communiqu may adversely affect 
Japan-China friendship 
 
YOMIURI (Page 4) (Full) 
December 11, 2007 
 
The Chinese government released a document agreed at the Japan-China 
High-Level Economic Dialogue held in Beijing on Dec. 1, after 
altering the document. In this connection, some Japanese government 
officials are concerned about negative effects on the increasingly 
friendly mood between the two countries. With Prime Minister Yasuo 
Fukuda's visit to China approaching, the Japanese government intends 
to carefully deal with the matter, while it will continue to ask 
China to correct the document. 
 
Administrative Vice Foreign Minister Shotaro Yachi stated with 
annoyance at a press conference: "Normally, this should never 
happen. Honestly, I am surprised at it." 
 
The Japanese government has lodged a protest with China over this 
issue through diplomatic channels. The Chinese government 
reportedly, however, has not responded in a sincere manner, 
insisting that the document was released after deleting some part at 
the request of concerned departments and bureaus and that it was 
just a working-level agreement. 
 
There is a growing view in the Foreign Ministry that the Chinese 
government might have been trying to keep the Chinese people from 
thinking that the document was forced on Beijing by Tokyo, as China 
deleted such parts as that 1) Japan hopes China will revalue the 
yuan, and 2) Japan urges China to participate in the energy Charter 
Treaty. 
 
SCHIEFFER