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UNCLAS SECTION 01 OF 09 TOKYO 005510 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 12/11/07 
 
Index: 
 
AMERICAN EMBASSY, TOKYO 
PUBLIC AFFAIRS SECTION 
OFFICE OF TRANSLATION AND MEDIA ANALYSIS 
INQUIRIES:  03-3224-5360 
INTERNET E-MAIL ADDRESS: otmatokyo@state.gov 
DAILY SUMMARY OF JAPANESE PRESS 
December 11, 2007 
 
INDEX: 
 
(1) Editorial: US beef; Easing import conditions is a reasonable 
decision (Yomiuri) 
 
(2) Ozawa seals off "proactive diplomacy" in meeting with Chinese 
leaders (Yomiuri) 
 
(3) DPJ's Yamaoka negative about Upper House taking vote on new 
antiterrorism bill (Yomiuri) 
 
(4) Former Prime Minister Abe resumes activities, supporting 
conservatives' activities behind scenes (Sankei) 
 
(5) Reforms making little headway in a lonely battle by 
administrative reform minister (Tokyo Shimbun) 
 
(6) Editorial: Use Iran nuclear report to find peaceful solution 
(Tokyo Shimbun) 
 
(7) Interview with Keio University Prof. Heizo Takenaka; Top 
priority should be on drastic cut in expenditures (Mainichi) 
 
(8) Interview with Airbus Japan President Glen Fukushima: Will aim 
at gaining 40-60 PERCENT  share of Japanese market (Sankei) 
 
(9) U.S. Embassy to pay 70 million yen for 10 years of back rent 
(Asahi) 
 
ARTICLES: 
 
(1) Editorial: US beef; Easing import conditions is a reasonable 
decision 
 
YOMIURI (Page 3) (Full) 
December 11, 2007 
 
Japan has started moving forward to ease its strict conditions for 
US beef imports. 
 
Though it now limits U.S. beef eligible for exports to cattle aged 
20 months or younger, it has conveyed to the US its decision to 
adopt a new age limit of "less than 30 months." It will reportedly 
consult with the Food Safety Commission (FSC) of the Cabinet Office 
on this matter. 
 
Japan's import condition limiting US beef eligible for export to 
cattle up to 20 months in age is the most severe in the world. The 
proposal for easing this condition is intended to match the 
international standard. It seems to be a reasonable decision. 
 
In the past, 21-month-old and 23-month-old BSE-positive cows were 
 
TOKYO 00005510  002 OF 009 
 
 
discovered in Japan. The discoveries became the major grounds for 
Japan to set the age limit at "20 months or younger." However, it is 
known that since both cows had only a small amount of infectious 
agent that causes BSE, they were hardly potentially transmissible. 
 
The age limit adopted by major importers of US beef, such as South 
Korea, Taiwan, Mexico and Russia, is 30 months or younger. 
 
The World Organization for Animal Health (OIE), which is responsible 
for setting international safety standards for livestock, recognized 
the U.S. as a country with a controlled risk of mad-cow disease. 
 
The grounds for Japan alone to continue to stick to the condition 
that limits beef eligible for export to 20 months or younger are 
weakening. 
 
Even if the age limit is eased, specified risk materials (SRM), such 
as the brain and spinal columns, where prions, a type of protein 
that indicates an infection, tend to accumulate, would be removed. 
Beef would be safe if SRMs are removed. 
 
An increasing number of supermarkets have resumed the sale of US 
beef. Consumers who are still concerned about the safety of the U.S. 
beef can opt for domestic or Australian products. 
 
Amid a flurry of hikes in food prices, an increase in US beef 
imports would be good news, because a drop in the price of beef can 
be expected. However, the problem remains regarding the fact that 
the government revealed its policy to ease the age limit only after 
the bilateral sub-cabinet meeting. Responses after the meeting were 
also in confusion due to a lack of coordination. 
 
It is necessary for the government to convey correct information by 
explaining the propriety of easing the import condition to domestic 
farmers and consumers. It must not neglect efforts to remove 
anxieties felt by consumers by reexamining the quarantine system. 
 
If Japan eases the age restriction, conditions for US beef imports 
being restored to the pre-ban level in 2003 would be met. 
 
The U.S. is seeking a total end to the age limit, based on the OIE 
authorization. It appears to aim at breaking down the barrier 
against Japan, thereby urging South Korea and other countries to 
expand their US beef imports. 
 
It would be premature for Japan to immediately comply with the US 
request. A realistic approach would be gradually easing the import 
condition, while obtaining understanding from consumers. 
 
(2) Ozawa seals off "proactive diplomacy" in meeting with Chinese 
leaders 
 
YOMIURI (Full) 
December 9, 2007 
 
Opposition Democratic Party of Japan (DPJ or Minshuto) President 
Ichiro Ozawa returned home on Dec. 8 from Beijing, wrapping up his 
three-day-trip there. Amid the Dec. 15 closing of the current Diet 
session just around the corner, a delegation of 44 Diet members to 
China came under criticism for making light of the Diet. However, 
Ozawa was able to keep his face as the largest party in the House of 
Councillors as his meeting with Chinese President Hu Jintao was 
 
TOKYO 00005510  003 OF 009 
 
 
realized. Some have contended that he avoided discussion on specific 
bilateral issues as he tried to stress his close relationship with 
Chinese leaders. 
 
Ozawa said with a satisfied look in his meeting with President Hu: 
"I appreciate for your unprecedented hospitality." He thanked Hu for 
shaking hands with Japanese legislators and about 400 party 
supporters accompanying him. Hu also posed for a group photo 
session. Dec. 8 morning's the People's Daily' gave front-page play 
to a report on the Hu-Ozawa meeting with a photo. 
 
Ozawa and other delegation members were given warm welcomes by the 
Communist Party of Japan's (CPC) Organization Department head Li 
Yuanchao, who enjoys the confidence of President Hu and is believed 
to be on the rise, and Hu Chunhua, a first secretary of the 
Communist Youth League of China, who is called the little Hu 
Jintao. 
 
Ozawa has emphasized his hopes for the effect by the series of his 
meetings with Chinese leaders, saying, "If we can show the public 
our good relations with the United States and China, the public will 
have some confidence in the DPJ." 
 
The DPJ president did not mention such pending bilateral issues as 
the gas exploration in the East China Sea. 
 
When Ozawa visited China as head of the then Liberal Party in 1999, 
his remark that the scope of emergency contingencies surrounding 
Japan base on the U.S.-Japan Defense Guidelines would include the 
Taiwan Strait irritated China. Ozawa, whose selling point is to 
assert his own views even though other parties may not like it, did 
not push his own positions in consideration of his party's 
relationship with China in the future. Ozawa double checked the 
order of his meetings with Chinese figures until immediately before 
his departure for Beijing. He gave special consideration to his 
China visit this time around. In the DPJ, there was a plan to hold a 
study session, inviting an expert who has accused China of 
oppression of the human rights of Uighurs in China, but the planned 
study session was cancelled at the suggestion by senior party 
members. Some party members are now concerned about Ozawa's 
diplomatic stance in the future. 
 
(3) DPJ's Yamaoka negative about Upper House taking vote on new 
antiterrorism bill 
 
YOMIURI (Page 4) (Full) 
December 9, 2007 
 
Tsuyoshi Endo, Xian 
 
SIPDIS 
 
Democratic Party of Japan (DPJ or Minshuto) Diet Affairs Committee 
Chairman Kenji Yamaoka held on Dec. 8 an informal meeting with 
reporters accompanying him to Xian in China. Asked by reporters 
about when the House of Councillors would take a vote on a new 
antiterrorism special measures bill, which is now being deliberated 
in the upper chamber, he responded: 
 
"It is impossible to put the bill to a vote before Dec. 15. So, it 
is sure that the current Diet session will be extended again. If 
sufficient document is not submitted to shed light on the allegation 
about scandals involving the Defense Ministry, we will not take a 
vote on the bill. I think there is no bright future (for the 
 
TOKYO 00005510  004 OF 009 
 
 
bill)." 
 
(4) Former Prime Minister Abe resumes activities, supporting 
conservatives' activities behind scenes 
 
SANKEI (Page 3) (Excerpts) 
December 8, 2007 
 
Former Prime Minister Shinzo Abe visited the Yamaguchi Prefectural 
Government yesterday and gave his first press conference after he 
resigned as prime minister. Asked about the idea of forming a grand 
coalition (with the Democratic Party of Japan) as part of efforts to 
dissolve the current state of the reversal of strengths between the 
ruling and opposition parties, Abe indicated a certain level of 
understanding, saying: "To push ahead with policies, politicians 
must make every possible effort. A large coalition should be one of 
such options." He also said: "When I was prime minister, there was 
no specific proposal (for a grand coalition)." To a question about 
his future political activities, he replied: "I would like to make 
utmost efforts as one lawmaker to build a new nation, going back to 
my original intention." Asked if he aims to assume political power 
again, Abe replied: "I don't have such an idea at all for now." 
 
Abe visited Yamaguchi Prefecture, his electoral district, for the 
first time in one year and three months. He energetically met 
Governor Sekinari Nii, local assembly members and his supporters' 
association members, resuming political activities in full swing. A 
close aide to Abe said that since he suddenly announced his 
resignation as prime minister on Sept. 12 and was hospitalized the 
next day, "he has kept a low profile as much as possible". 
 
In the press briefing yesterday, Abe stressed his willingness to 
join hands with conservatives in the Liberal Democratic Party, 
saying: "There are persons who support my basic policy of building 
up a country while giving priority to culture, tradition, history, 
and nature. I would like to work together with such persons." In the 
briefing, although Abe said: "I support the Fukuda administration 
with all possible efforts," he has told those around him: "I would 
like to back up" a conservative policy research group set up on Dec. 
4 under the lead of his close friend, former Policy Research Council 
Chairman Shoichi Nakagawa. 
 
After Yasuo Fukuda, who takes policies of a liberal bent, replaced 
the conservative Abe, "conservative lawmakers in the LDP have been 
downcast," an LDP source said. The Abe-Nakagawa team had scotched 
human-rights legislation and a bill to provide foreign residents 
with local suffrage, but moves are now afoot to submit and enact 
these bills. When he was convalescing at home, Abe frequently 
contacted Nakagawa and former Secretary General Taro Aso, so he was 
worrying about the situation. 
 
On the dispute with China over gas field development in the East 
China Sea, the Abe administration decided to launch negotiations to 
compensate fishermen for fishery losses as a precondition for 
starting test drilling if no progress was made in Japan-China talks 
by the fall. But the Fukuda administration has put this policy 
decision on hold. In addressing the issue of Japanese nationals 
abducted by North Korea, too, a subtle difference is observed in the 
degrees of eagerness between the former and incumbent 
administrations. 
 
The House of Representatives is likely to be dissolved next year, so 
 
TOKYO 00005510  005 OF 009 
 
 
Abe cannot keep sitting idly forever. Abe, though, is also aware 
that his abrupt resignation has been harshly criticized. He intends 
to support activities by conservative lawmakers behind the scenes 
for the time being. 
 
(5) Reforms making little headway in a lonely battle by 
administrative reform minister 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 11, 2007 
 
Uncertainty is looming over the task of reforming independent 
administrative corporations. State Minister in Charge of 
Administrative Reform Yoshimi Watanabe has held negotiations with 
relevant cabinet ministers, but he has so far obtained agreement on 
abolishing only two corporations. Fighting a lonely battle, Watanabe 
aims to make a rollback in negotiations starting today, but the 
government agencies concerned have no intention to give in to 
Watanabe's call. 
 
In a meeting of the House of Councillors' Accounts Committee 
yesterday afternoon, Watanabe confidently said: "We are about to 
reach the end of the road at last." But the actual situation is such 
that they are still at a standstill at the entrance. 
 
Watanabe met separately with eight cabinet ministers from Dec. 3 
through Dec. 7 and asked them to cooperate in abolishing or 
privatizing 39 out of the 102 independent administrative 
corporations. The reform minister, however, was able to win 
agreement in only two cases - the National Institute of Health and 
Nutrition, and the National Institute of Multimedia Education. 
Although Watanabe also aimed to compile a plan to streamline 
independent administrative corporations by the end of the year, he 
has to defer it to next year. 
 
Even if planning is put off, new prospects will not necessarily 
develop. Appearing on TV programs, Watanabe has been trying to 
underscore to the public the necessity for streamlining independent 
administrative corporations, but his efforts have ended up only 
arousing the anger of the ministers concerned, who he had called 
forces of resistance, with Agriculture, Forestry and Fisheries 
Minister Tadatoshi Wakabayashi assailing: "It will be impossible to 
reach an agreement." 
 
But a government source said: "Many of the reform plans presented by 
Watanabe are unreasonable." For instance, he proposes privatizing 
the Urban Renaissance Agency, but since the agency possesses a 
number of rental houses in which many elderly people live, the 
proposed measure could result in forsaking the socially weak. Some 
government and ruling party officers are skeptical about this 
measure. 
 
Watanabe is counting on the help of Prime Minister Fukuda, who has 
said: "We must achieve some results in reform," but he is now taking 
a wait-and-see attitude. 
 
A senior government official, however, said: "We must have the prime 
minister preserve face, though we don't care about Mr. Watanabe's 
honor." Before the prime minister begins to move, Chief Cabinet 
Secretary Nobutaka Machimura is expected to seek the best timing for 
 
SIPDIS 
launching coordination work while watching the state of progress in 
renegotiations. 
 
TOKYO 00005510  006 OF 009 
 
 
 
(6) Editorial: Use Iran nuclear report to find peaceful solution 
 
TOKYO SHIMBUN (Page 5) (Full) 
December 11, 2007 
 
The National Intelligence Estimate (NIE), a report released by the 
U.S. government with its assessment of Iran's nuclear program, 
revises the Bush administration's hardline stance toward Iran. We 
hope that the NIE report will become an opportunity for the United 
States and other countries concerned to expedite their efforts for a 
diplomatic settlement with a flexible posture. 
 
The NIE report says Iran halted its nuclear weapons program in the 
fall of 2003 and has not resumed it since then. The report revealed 
that Iran has no nuclear weapons at this point. 
 
Concerning Iran's capability of developing nuclear weapons, the NIE 
report says Iran cannot enrich enough uranium needed for nuclear 
weapons before 2009. The report, however, forecasts that it would be 
possible for Iran to produce enough highly enriched uranium to 
develop nuclear weapons between 2010 and 2015. In addition, the 
report also notes that the option of developing nuclear weapons 
still remains because Iran continues to enrich uranium. 
 
In 2002, suspicions about Iran's nuclear program came to light. 
Since then, the Bush administration has consistently stressed the 
Iranian threat. In October, the Bush administration warned that 
Iran's nuclear program could lead to a third world war. 
 
There was a rise of arguments from among hardliners in the U.S. 
administration and in the United States, calling even for airstrikes 
on Iran's nuclear facilities in response to its attitude of ignoring 
a UN Security Council resolution. 
 
The NIE report this time could cause President Bush to lose the 
basis for his hard-line policy toward Iran. We think that the Bush 
administration, taking this report as an occasion, should formulate 
a comprehensive policy to ease confrontation, including direct 
dialogue with Iran. 
 
Iran has asserted that its nuclear program is for peaceful purposes. 
Iranian Foreign Minister Mottaki takes it for granted that the U.S. 
government revised its perception of Iran to a down-to-earth view in 
its Iran report. However, Iranian President Ahmadinejad has been 
tough in his remarks. The international community still remains 
doubtful of Iran. 
 
Iran must demonstrate that its nuclear program is for peaceful 
purposes. Last month, the International Atomic Energy Agency 
released a report, which points to Iran's uncooperative attitude. It 
is important that Iran ratifies an additional protocol at an early 
date and extends unconditional and full cooperation to the IAEA. 
 
The United States, Britain, France, China, Russia, and Germany are 
talking about an additional sanctions resolution. European leaders 
are leaning toward a hard-line posture toward Iran, such as taking 
economic sanctions. We should be cautious while giving thought to 
the course of events of the past as well as the NIE. 
 
Libya and South Africa once tried to develop nuclear weapons. The 
two countries, however, gave up on their nuclear programs, and they 
 
TOKYO 00005510  007 OF 009 
 
 
are now back in the international community. North Korea, which 
carried out a nuclear test, is also beginning to disable its nuclear 
facilities through the process of the six-party talks. 
 
We hope that the US government's report this time will lead to a 
peaceful solution of Iran's nuclear issue. 
 
(7) Interview with Keio University Prof. Heizo Takenaka; Top 
priority should be on drastic cut in expenditures 
 
MAINICHI (Page 11) (Full) 
December 11, 2007 
 
The government's work of revising the tax system and compiling the 
state budget for fiscal 2008 is going into the homestretch. 
Decisions on a specific timing for a hike in the consumption tax 
rate and on the margin of hike have been put off, and calls for a 
tax hike are increasingly becoming stronger. Although tax revenues 
are not expected to increase, political pressure on expenditures has 
stepped up. This newspaper interviewed Keio University Prof. Heizo 
Takenaka on such issues. 
 
Ten years ago, in 1997, the government raised the consumption tax 
rate from 3 PERCENT  to 5 PERCENT , attaching excessive importance 
on fiscal reconstruction. As a result, the Japanese economy worsened 
at one stroke, leading to the end of the cabinet of Prime Minister 
Ryutaro Hashimoto (who resigned as prime minister to take 
responsibility for the crushing defeat of his Liberal Democratic 
Party in the 1998 House of Councillors election). We need to recall 
that time. Unfortunately, some people are eager to revisit the 
situation 10 years ago, taking an extremely biased argument. Looking 
at the rest of the world, we see that those countries that attempted 
to increase taxes as part of fiscal reconstruction all came to 
grief. Countries that first reduced their expenditures succeeded in 
their fiscal reconstruction efforts. What is important is to strike 
a balance between economic growth and fiscal reconstruction. The 
nominal growth in GDP does not rise when deflation cannot be 
overcome, and tax revenues do not increase when the nominal rate of 
growth cannot rise. 
 
If the Bank of Japan (BOJ) takes appropriate monetary policy 
measures, it will be possible to attain a nominal growth rate of 
three to four percent. If the BOJ increases purchases of government 
bonds from the markets, money supply would have increased and 
deflation would have been overcome. If the BOJ keeps the present 
policy as is, nothing will be changed even if the consumption tax 
rate is hiked. If expenditures are not cut, the consumption tax 
should be raised soon to about 20 PERCENT . 
 
There is criticism of the reform policies carried out by former 
Prime Minister Junichiro Koizumi, but this is a kind of ad hominem 
attack. I have yet to hear a logical explanation. If I may venture a 
reason for the criticism, it was because the Koizumi government cut 
seven to eight trillion yen out of the public works budget. However, 
without reducing the outlays for public works projects, we would 
have had to raise the consumption tax rate by 3.5 PERCENT . Which is 
the better option: returning to public works spending and raising 
the consumption tax or and keeping the present situation as is? I 
feel certain that most people would choose the latter course. 
 
(8) Interview with Airbus Japan President Glen Fukushima: Will aim 
at gaining 40-60 PERCENT  share of Japanese market 
 
TOKYO 00005510  008 OF 009 
 
 
 
SANKEI (Page 11) (Full) 
December 8, 2007 
 
-- Airbus is outdoing Boeing on the global aircraft market. However, 
it is having difficulty making inroads into the Japanese market. 
 
"Airbus has a 49 PERCENT  share on the North American market, a 62 
PERCENT  share on the European market, an 83 PERCENT  share on the 
Middle East and African market and a 55 PERCENT  share in the 
Asia-Pacific region. However, our share in Japan is only 4 PERCENT 
." 
 
-- What are the reasons for that? 
 
""There are roughly four reasons. The first reason is that Boeing 
opened its Japan office in 1953, while Airbus set up a company in 
Japan in 1970. Boeing advanced into Japan much earlier than Airbus. 
The Japanese market is of a closed nature. Late-comer companies find 
it difficult to advance into it. The second reason is that Boeing 
has close relations with Japanese heavy manufacturing companies 
through joint production. Twenty-one Japanese companies took part in 
the joint project to develop Airbus's super-jumbo jet A380. However, 
their share in the development of the entire fuselage is no more 
than 2 PERCENT . In contrast, China is positive about joint 
production. It is positively trying to acquire production 
technologies. Russia and India are also enthusiastic. 
 
"The third reason is that the U.S. government requested Japan 
purchase U.S.-made aircraft during the time of bilateral trade 
friction between the 1980s and the 1990s. Purchasing Boeing aircraft 
helps Japan reduce its trade surplus with the U.S. The fourth reason 
is that half the Boeing's products are defense-related. Its 
relations with Japan's defense industry and the defense policy 
clique in the Diet are also an advantage for it. 
 
-- Do you think Japan's market is special? 
 
"Air France buys aircraft both from Airbus and Boeing in order to 
have them compete in terms of prices. China also forces competition. 
The same holds true of US carriers. Airline companies throughout the 
world buy airplanes from both companies. In contrast, Japanese 
carriers are highly loyal to Boeing, but they are also biased. " 
 
-- What is the reason for Airbus still sticking to the Japanese 
market? 
 
"Star Flyer, a new comer, purchased 4 Airbus aircraft and Galaxy, a 
subsidiary of Sagawa Express, bought two of our products in the two 
years and nine months since I took office as president. All Nippon 
Airways also purchased five. Japan has a huge population. Japanese 
airlines are world class in size. Both the passenger and cargo plane 
markets are promising. Japan is still a key market." 
 
-- What is your strategy for finding a breakthrough in the present 
situation? 
 
"Seven air carriers in Asia, such as Singapore and Thailand, have 19 
A380 aircraft with excellent gas mileage and technology. I hope 
Japanese carriers will realize that the introduction of A380s is a 
good choice in terms of maintaining global competitiveness. We are 
also developing the A350 aircraft, a medium-size long-distance 
 
TOKYO 00005510  009 OF 009 
 
 
passenger aircraft, to counter Boeing. We will also work on Japanese 
companies for joint production." 
 
-- What is your goal? 
 
"Our head office in Europe expects me to secure a global-level 
share. I will aim at obtaining a 40 PERCENT -60 PERCENT  share of 
the Japanese market." 
 
(9) U.S. Embassy to pay 70 million yen for 10 years of back rent 
 
ASAHI (Page 4) (Full) 
December 8, 2007 
 
The Japanese and U.S. governments have reached an agreement that the 
United States will pay 70 million yen to Japan for 10 years worth of 
rent for its Embassy in Akasaka, which is state-owned land, and also 
to accept a gradual increase in the rent beginning in 2008. The 
Japanese government had considered taking legal action against the 
U.S. government because the statue of limitations expires in the 
middle of this month on the rent for 1998, but the two sides have 
finally reached the agreement. 
 
The rent for 1997 was 2.5 million yen per year. Japan proposed 
raising the rent in stages from 1998 until it was at a level ten 
times higher because of the high commercial rents, but the U.S. 
government rejected the proposal and has failed to pay rent since 
¶1998. Tokyo and Washington had intermittently held negotiations. 
 
According to the agreement, the United States will pay 7 million yen 
a year for the 10-year period through 2007, 10 million yen a year 
between 2008 and 2012, and 15 million yen a year between 2013 and 
¶2027. Although the annual rent the U.S. Embassy will pay is still 
low compared with the average commercial rents in the neighborhood, 
the Japanese government made a compromise. 
 
SCHIEFFER