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UNCLAS SECTION 01 OF 11 TOKYO 005633 
 
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 12/21/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Asahi poll: Cabinet support plummets 13 points to 31 PERCENT , 
with non-support rate now at 48 PERCENT ; If Lower House election, 
38 PERCENT  would vote for DPJ, 23 PERCENT  for LDP  (Asahi) 
 
Defense and security affairs: 
5) Diet deliberations to extend into January on new antiterrorism 
special measures bill allowing MSDF refueling mission to continue 
(Yomiuri) 
6) Democratic Party of Japan (DPJ) to present own counterproposal to 
the government's antiterrorism special measures bill  (Nikkei) 
7) Defense scandal: JDA procurement officer in 2002 falsified 
investigative report into bill padding by Yamada Corp.  (Yomiuri) 
8) Defense Ministry plans to test PAC3's missile intercept 
capability next fall in the U.S.  (Mainichi) 
9) Draft defense budget contains a 9 billion cut in host nation 
support for stationing U.S. forces in Japan  (Nikkei) 
 
10) Nation's budget draft for fiscal 2008 shows policy switch toward 
assisting regional economies, socially weak population  (Mainichi) 
 
Political agenda: 
11) Weak government decision on hepatitis C virus infections lawsuit 
seen as lack of leadership by the prime minister  (Sankei) 
12) Prime Minister Fukuda puts off reaching conclusion on scrapping 
and consolidating independent administrative corporations  (Asahi) 
 
13) New ROK President Lee in unusual move meets with U.S. and 
Japanese ambassadors  (Sankei) 
 
14) China's ambassador believes the bilateral gas-field issue can be 
resolved in the Fukuda-Hu summit meeting  (Asahi) 
 
15) Government report optimistic about Japan cutting greenhouse gas 
emissions by 6 PERCENT  under Kyoto Protocol  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Public support for cabinet plummets to 31; 38 PERCENT  say they 
would choose DPJ in proportional representation in Lower House 
election, 23 PERCENT  LDP 
 
Mainichi: 
Kanagawa Prefectural Police superintendent admits to soliciting his 
subordinate to join spiritual healing salon; Lives with female 
president 
 
Yomiuri: 
Revision of agricultural administration: Income compensation for 
small-scale farmers; Policy switch could give rise to concerns about 
pork-barrel spending 
 
Nikkei: 
Toshiba to tie up with Sharp, withdrawing tie-ups with Matsushita 
 
TOKYO 00005633  002 OF 011 
 
 
and Hitachi: LCD panels to be procured at Sharp's Sakai plant 
 
Sankei: 
Drug-induced hepatitis: Reconciliation talks bog down with 
plaintiffs refusing state proposal; Premier to continue 
negotiations 
 
Tokyo Shimbun: 
Damage caused by pseudoreligious entity's spiritual healing business 
likely to total 10 billion yen; Kanagawa police search home of 
superintendent 
 
Akahata: 
Government refuses blanket relief for victims in lawsuit over 
drug-induced hepatitis 
 
2) EDITORIALS 
 
Asahi: 
(1) Drug-induced hepatitis reconciliation proposal: More 
resourcefulness needed for settlement 
(2) NHK chairmanship: Business leaders are not appropriate 
 
Mainichi: 
(1) Drug-induced hepatitis reconciliation talks: Government proposal 
shameful 
(2) Draft fiscal 2008 budget: Future of fiscal reconstruction 
worrisome 
 
Yomiuri: 
(1) Draft fiscal 2008 budget: Managing fiscal resources has reached 
limits 
(2) Missile defense: Important for Japan and U.S. to cooperate for 
effective operation 
 
Nikkei: 
(1) Fukuda budget blurs road to fiscal reform 
(2) Drug-induced hepatitis: Is the premier's desire for settlement 
only lip service? 
 
Sankei: 
(1) Fiscal 2008 budget: Fiscal reconstruction possible with this 
budget? 
(2) Hepatitis lawsuit: State and plaintiffs should search for 
settlement 
 
Tokyo Shimbun: 
(1) Drug-induced hepatitis: Search for breakthrough 
(2) Informal release of draft budget: Too many appropriations to 
make accounts balance 
 
Akahata: 
(1) Hepatitis lawsuit: Government should not abandon patients 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 20 
 
NIKKEI (Page 2) (Full) 
December 21, 2007 
 
09:01 
 
TOKYO 00005633  003 OF 011 
 
 
Attended a special cabinet meeting in the Diet building. Later, met 
Health, Labor and Welfare Minister Masuzoe and Chief Cabinet 
Secretary Machimura. Machimura stayed behind. 
 
SIPDIS 
 
09:46 
Met Economic and Fiscal Policy Minister Ota at the Kantei. 
 
10:34 
Held an interview for a New Year special edition with former Nippon 
Keidanren Chairman Okuda and Jomo Shimbun President Takahashi. 
 
11:30 
Met LDP Women's Section Chief Arimura. Later met Transport Minister 
Fuyushiba. Followed by Machimura. 
 
13:24 
Met U.S. Ambassador Schieffer. Followed by deputy chief cabinet 
secretaries Ono and Iwaki. 
 
SIPDIS 
 
14:55 
Met Deputy Chief Cabinet Secretary Futahashi. 
 
15:59 
Met Administrative Reform Minister Watanabe. Followed by ocean law 
Follow up study group president Nakagawa, former secretary general, 
and co-chairmen Maehara, former DPJ president, and Oguchi, a New 
Komeito member. Nakagawa stayed behind. 
 
17:26 
Met with Ota for recording for a year-end special program by a Gunma 
TV station. 
 
18:15 
Met Japan Center for International Finance Advisor Watanabe. 
 
19:03 
Met Deputy Foreign Minister Kono 
 
19:49 
Met with Deputy Foreign Minister Yabunaka, Asian and Oceanian 
Affairs Bureau Director General Sasae and others at the Grand Prince 
Hotel Akasaka. 
 
22:31 
Returned to his private residence in Nozawa. 
 
4) Poll: Cabinet support tumbles to 31 PERCENT ; DPJ outpaces LDP in 
popularity rating for proportional representation 
 
ASAHI (Top play) (Abridged) 
December 21, 2007 
 
The approval rating for Prime Minister Fukuda and his cabinet was 31 
PERCENT  in a telephone-based nationwide public opinion survey 
conducted by the Asahi Shimbun on Dec. 19-20. The Fukuda cabinet's 
support rate nosedived from the 44 PERCENT  rating in the last 
survey taken Dec. 1-2. Its nonsupport rate rose to 48 PERCENT  from 
36 PERCENT  in the last survey. The Fukuda cabinet's nonsupport rate 
topped its support rate for the first time. In the survey, 
respondents were asked which political party they would vote for in 
their proportional representation blocs if a general election were 
to take place now for the House of Representatives. In this 
 
TOKYO 00005633  004 OF 011 
 
 
popularity rating, the leading opposition Democratic Party of Japan 
(Minshuto) scored 38 PERCENT  (32 PERCENT  in the last survey), with 
the ruling Liberal Democratic Party at 23 PERCENT  (32 PERCENT  in 
the last survey). As seen from these figures, the DPJ substantially 
outpaced the LDP. There was not such a wide margin even when the Abe 
cabinet was in office. The general public is growing critical of the 
government and the LDP for pension record-keeping flaws and other 
issues. The Diet, in its current extraordinary session, is debating 
on a bill resuming the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. The ruling coalition is going to 
revote on the bill in the House of Representatives should it be 
voted down in the House of Councillors. In the survey this time, 
there was an increase in the proportion of those negative about the 
ruling coalition's move to override the bill in the lower chamber. 
 
The Fukuda cabinet's inaugural support rate was 53 PERCENT , which 
was comparatively high among its predecessors. It remained over 40 
PERCENT  thereafter. However, the Fukuda cabinet's support rate fell 
to the level of the Abe cabinet's support rate at its last stage. 
The most common reason given for not supporting the Fukuda cabinet 
was "from the aspect of policies" at 57 PERCENT , standing out from 
all other reasons. 
 
On the issue of pension record-keeping flaws, there are records that 
are still unclear for about 50 million persons, including about 20 
million unidentifiable persons. In the survey, respondents were 
asked if they thought it was a breach of the Fukuda cabinet's public 
pledge. In response to this question, 60 PERCENT  answered "yes," 
with 30 PERCENT  saying "no." Respondents were also asked if they 
appreciated the Fukuda cabinet's efforts on the issue of pension 
record-keeping flaws. To this question, affirmative answers 
accounted for only 36 PERCENT , with negative answers adding up to 
46 PERCENT . Respondents were further asked if they could expect the 
Fukuda cabinet to dissolve public distrust in pensions. In response, 
a total of 72 PERCENT  answered "no," with only 17 PERCENT  saying 
"yes." 
 
In a survey taken upon the Fukuda cabinet's inauguration, the 
proportion of those having expectations for the Fukuda cabinet's 
efforts on the pension issue was as high as 67 PERCENT . In the 
survey this time, however, the Fukuda cabinet is called into 
question over whether it can deliver on its pledge. 
 
Under such circumstances, there is also a change in public attitudes 
over the timing of a general election for the House of 
Representatives. Respondents were asked if they thought a general 
election should be held at an early date. To this question, "yes" 
accounted for 39 PERCENT  (34 PERCENT  in the last survey), with 
"no" at 48 PERCENT  (55 PERCENT ). Among DPJ supporters, "yes" 
accounted for 69 PERCENT . Among LDP supporters, "no" totaled 71 
PERCENT . Asked about the desirable form of government, the 
proportion of those opting for a DPJ-led coalition government 
increased to 41 PERCENT  (36 PERCENT  in the last survey), and the 
proportion of those choosing an LDP-led coalition government 
decreased to 28 PERCENT  (37 PERCENT  in the last survey). 
 
In the breakdown of public support for political parties, the LDP 
stood at 27 PERCENT  (31 PERCENT  in the last survey), with the DPJ 
at 25 PERCENT  (31 PERCENT  in the last survey). Among other 
political parties, New Komeito, the LDP's coalition partner, was at 
3 PERCENT , with the Japanese Communist Party at 2 PERCENT  and the 
Social Democratic Party (Shaminto) at 1 PERCENT . 
 
TOKYO 00005633  005 OF 011 
 
 
 
Commentary: Fukuda cabinet likely to lose momentum 
 
The Fukuda cabinet's approval rating plummeted and is now down 
almost to 30 PERCENT , which is said to be the danger zone. The 
opposition parties hold a majority of the seats in the House of 
Councillors, and Prime Minister Fukuda is walking a tightrope to 
steer the Diet. Meanwhile, people are now distancing themselves from 
Fukuda. The situation for Fukuda and his government will likely be 
even more difficult. Chief Cabinet Secretary Matsumura hoped to have 
the Fukuda cabinet's support rate somehow sustained over 40 PERCENT 
. However, the support rate fell below 40 PERCENT . The prime 
minister will inevitably lose momentum to lead his ruling 
coalition. 
 
5) New antiterrorism bill now certain to be carried over to next 
year 
 
YOMIURI (Page 2) (Full) 
December 21, 2007 
 
The ruling coalition requested in a meeting of the House of 
Councillors Foreign Affairs and Defense Committee yesterday that a 
vote be taken on the government's new antiterrorism bill on Dec. 27. 
But the opposition bloc declined the request, citing that 
deliberations have yet to be fully carried out. Since the 27th is 
the day of the committee's last regular meeting, it is now certain 
that the bill will be carried over to January. 
 
6) Reversing its stance, DPJ to submit alternative bill to 
government's new refueling legislation in attempt to dampen 
government, ruling bloc's plan for re-adoption in Lower House 
 
NIKKEI (Page 2) (Full) 
December 21, 2007 
 
Major opposition Democratic Party of Japan (DPJ or Minshuto) 
President Ichiro Ozawa discussed at party headquarters last night 
Diet measures with Secretary General Yukio Hatoyama and other party 
executives. In the session, Ozawa ordered them to submit an 
alternative bill to the government's new legislation to resume the 
Maritime Self-Defense Force's refueling operation in the Indian 
Ocean to the House of Councillors as early as today. The DPJ 
temporarily gave up on presenting its own bill, but the cabinet's 
support rates in various opinion polls have plummeted recently and 
opposition to resuming the refueling operation has also sharply 
increased. The largest opposition party is set to step up its 
criticism of the government and ruling bloc that are aiming to 
readopt the legislation in the House of Representatives by demanding 
thorough deliberations on the DPJ's counterproposal. 
 
After the meeting, DPJ Diet Affairs Committee Chairman Kenji Yamaoka 
said to the press: "The Diet session has been extended for over one 
month, so we will fulfill our responsibility in our own way. We 
think people, including the prime minister, are willing to consider 
the matter with us." 
 
Deliberation time on the new refueling legislation will reach 41 
hours on Dec. 27 on par with the Lower House, as was asked by the 
opposition camp. However, the opposition bloc intends to forgo a 
plan to take a vote before year's end in the opposition-controlled 
Upper House on the grounds that priority should be given to shedding 
 
TOKYO 00005633  006 OF 011 
 
 
light on scandals over procurement at the Ministry of Defense (MOD). 
The opposition bloc also aims to make a decision on whether to 
submit a censure motion against Prime Minister Fukuda by watching 
developments in the MOD scandals until the current Diet session 
closes on Jan. 15. 
 
Whether there will be new developments, as the opposition camp 
expects, remains to be seen. It is inevitable for the ruling camp to 
criticize the opposition bloc's strategy to postpone a vote, arguing 
that the new refueling legislation has been discussed thoroughly. 
Once discussion begins on the counterproposal, such criticism can be 
averted. 
 
7) JDA procurement officer faked report in favor of Yamada Corp. 
 
YOMIURI (Page 1) (Slightly abridged) 
December 21, 2007 
 
It was revealed yesterday in a House of Councillors Foreign Affairs 
and Defense Committee session that a procurement official at the 
then Defense Agency had faked a report in March 2002 in favor of 
defense equipment trader Yamada Corp. that padded the bill for chaff 
and flare dispensers for Maritime Self-Defense Force helicopters. 
The procurement officer was dispatched to do field investigations at 
British defense contractor BAE Systems' factory in the United 
States. At yesterday's committee session, responding to questions by 
Tsutomu Okubo of the Democratic Party of Japan (DPJ or Minshuto), 
 
SIPDIS 
Defense Minister Shigeru Ishiba offered an apology and said that he 
would consider punishing the procurement official. He said: "It 
cannot be denied that the procurement official acted in line with 
Yamada's will. I will take proper action." 
 
In February 2002, BAE Systems pointed out that the estimates Yamada 
Corp. submitted to the agency were "fabrications." The agency then 
dispatched the procurement official to the BAE factory in the U.S. 
to discover the truth. The procurement official wrote in his report: 
"(As a result of meetings with BAE officials in charge of the 
matter) they apologized saying 'we have caused much trouble for the 
Defense Agency and Yamada Corp.'" Consequently, Yamada was able to 
escape punishment by the agency. However, the procurement official 
said in an interview held later: "I did not meet any BAE officials 
in the U.S. I wrote that in my report at the suggestion of a Yamada 
Corp. subsidiary employee." 
 
8) PAC-3 also to be tested next fall in U.S. for 1st time 
 
MAINICHI (Page 2) (Full) 
December 21, 2007 
 
The Defense Ministry announced a plan yesterday to test the 
ground-based Patriot Advanced Capability 3 (PAC-3) interceptor 
system in the United States in the fall of next year for the first 
time. The PAC-3, a ground-to-air guided missile as one of Japan's 
two missile defense (MD) components, was first introduced to Japan 
in March this year. The PAC-3 test will be carried out at the White 
Sands missile range in the U.S. state of New Mexico, and the U.S. 
Army will cooperate on the test. The Defense Ministry explains that 
it is difficult to test the PAC-3 in Japan because it is too 
powerful. The Finance Ministry's fiscal 2008 budget plan, informally 
presented yesterday, earmarks approximately 1 billion yen for the 
test. 
 
 
TOKYO 00005633  007 OF 011 
 
 
The PAC-3 will be deployed to four bases in the metropolitan area by 
March next year and to a total of 16 bases across the nation by 
fiscal 2012. 
 
Normally, newly introduced weapons are to be tested before 
deployment. However, the Defense Ministry decided to go ahead with 
PAC-3 deployment in the metropolitan area because the threat of 
ballistic missiles from North Korea and other countries is growing, 
according to a senior official of the ministry. 
 
9) Finance Ministry proposes 9 billion yen cut in sympathy budget 
 
NIKKEI (Page 9) (Full) 
December 21, 2007 
 
The fiscal 2008 draft budget presented by the Finance Ministry 
proposes a 0.5 PERCENT  cut in the defense budget, down for the 
sixth year in a row and the lowest level since fiscal 1995. Although 
there were such factors for increasing expenditures as fuel price 
hikes, the ministry decided to review Japan's host-nation support 
for U.S. military forces in Japan (the so-called sympathy budget) 
and to improve the efficiency of procurement of defense equipment. 
 
The draft budget reduces the sympathy budget by 9 billion yen to 
208.3 billion yen and outlays for facility maintenance, such as 
housing for U.S. troops, by 9.5 billion yen. As measures to improve 
the procurement process, the ministry suggests that an open bidding 
system should be introduced in place of the current negotiated 
contract system. To curb spending for equipment procurement, the 
draft budget sets the target of a 15 PERCENT  cost cut by fiscal 
¶2011. 
 
The draft budget allocates 19.1 billion yen in expenses for U.S. 
force realignment plans. To local communities whose financial burden 
will increase due to relocation plans, 6.2 billion yen in grants 
will be allocated. The draft budget also calls for significantly 
increased budgetary allocations to plans to transfer the U.S. Marine 
Corps' Futenma Air Station and relocate planes on an aircraft 
carrier to Iwakuni. The draft budget further allocates 2.2 billion 
yen in activities expenses by the Maritime Self-Defense Force in 
anticipation of the resumption of its refueling mission in the 
Indian Ocean. 
 
The Finance Ministry proposes 133.8 billion yen in spending on the 
missile defense (MD) system and 56.2 billion yen in expenditures for 
improving the capability of the PAC-3 Patriot missile. 
 
10) Fiscal 2008 budget: Intensive appropriation of funds with eye on 
blocs of votes: Policy switch to give priority to regional areas, 
socially weak 
 
MAINICHI (Page 5) (Excerpts) 
December 21, 2007 
 
The Finance Ministry's fiscal 2008 draft budget and draft 
supplementary budget for fiscal 2007 center on the so-called 
downside of the Koizumi reform initiative, such as rural areas, 
agriculture and elderly people. The Liberal Democratic Party (LDP) 
has concluded that those areas were the causes of its defeat in the 
July Upper House election. All party members, including 
reform-oriented groups, have made a policy switch to attach 
importance to measures to deal with problems regional areas and the 
 
TOKYO 00005633  008 OF 011 
 
 
socially weak are facing with eye on a dissolution of the Lower 
House and a snap election. Their policy switch has also been 
necessitated due to the Democratic Party of Japan's (DPJ or 
Minshuto) policy of giving priority to people's livelihoods. 
However, the appropriations of budgetary funds in view of attracting 
blocs of votes could hamper the effort to reconstruct public 
finances. 
 
DPJ Policy Research Council Chairman Sadakazu Taniguchi in a speech 
given at a plenary meeting of his faction on Dec. 20 stressed that 
budget requests made within the party have generally been adopted. 
He noted, "It was difficult to compile the budget. However, we have 
taken pressing issues, such as a sharp rise in crude oil prices and 
agricultural administration, into consideration." Taniguchi was 
originally one of the members of the group calling for fiscal 
reconstruction in principle, but it appears that he has simplified 
the matters by thinking that there is no other way this time. 
 
In order to stress a stance of attaching importance to regional 
areas out of reflection on the outcome of the Upper House election, 
400 billion yen from two corporate tax sources (business tax and 
resident tax) concentrated in urban areas would be diverted to local 
governments. Tokyo Metropolitan Governor Shintaro Ishihara opposed 
the proposal, but he in the end accepted it in a meeting with Prime 
Minister Yasuo Fukuda, saying, "You may as well contend against the 
authorities as reason with a crying child." 
 
The common perception is that impoverished local governments damped 
the moves of local organizations during the Upper House election 
campaign. It would be impossible to increase allocations of 
consumption tax revenues to local governments as requested when the 
opposition camp has dominance in the Upper House, as a senior 
official of the LDP Tax Research Council put it. For this reason, an 
increase in local allocation tax grants for the first time in three 
years and transfers of fiscal resources from cities and rural areas 
symbolized budgetary measures for regional areas. 
 
Agricultural reform started in April. However, the new initiative is 
unpopular for focusing on large-scale farmers. In response, four LDP 
executives in an unprecedented move inspected rural areas.  The 
party then incorporated 79.8 billion yen in the supplementary draft 
budget, which is not subject to the budgetary request guidelines for 
fiscal 2008, making a public appeal for its measure for small-size 
farmers, who are said to be moving away from the LDP. 
 
11) Prime Minister Fukuda, battered and wounded, unable to display 
leadership in settling hepatitis-C issue 
 
SANKEI (Page 5) (Excerpts) 
December 21, 2007 
 
Out-of-court settlement talks on compensation for hepatitis-C 
infections caused by tainted blood products have ruptured, and the 
government has retreated from planned reform of independent 
administrative institutions. 
 
Prime Minister Yasuo Fukuda yesterday failed to show his leadership 
in dealing with two issues on which he was required to make 
political decisions. He has given the impression that he favored the 
bureaucracy and has turned a cold shoulder to the public. Some 
members of the ruling parties are now expressing their 
dissatisfaction with the government's response to the hepatitis C 
 
TOKYO 00005633  009 OF 011 
 
 
problem. With approval ratings for the Fukuda cabinet plunging due 
to the pension-records mess, the Fukuda government is facing even 
more adversity by the latest moves. 
 
"Society should not always take it out on civil servants," Fukuda 
stated in an interview to the Jomo Shimbun, a local newspaper in 
Gunma Prefecture, his hometown. He strongly indicated a position of 
backing the bureaucracy. 
 
Fukuda has long been regarded as favoring the bureaucracy since his 
father Takeo once worked at the Finance Ministry. It can be said 
that Fukuda's response yesterday to the hepatitis C issue and the 
reform of independent administrative institutions "exposed his 
tendency to be completely swayed by the arguments of the 
bureaucrats," as one mid-level Liberal Democratic Party member 
said. 
 
Asked by the press last night about his view on the hepatitis-C 
sufferers' rejection of the government proposal, Fukuda said: "I 
apologize to the victims for the reoccurrence of a drug-induced 
disease. We don't think the problem will end with this. We will 
respond flexibly following the ruling set by the Osaka High Court." 
 
 
For Fukuda, the issue of settlement talks is entirely in the hands 
of Health, Labor and Welfare Minister Yoichi Masuzoe, though he is 
listening to health ministry officials' views. He failed to make a 
political decision that went beyond the judicial judgment. He never 
used the wording "my decision." 
 
12) Prime minister puts off conclusion on streamlining independent 
administrative corporations 
 
ASAHI (Page 4) (Full) 
December 21, 2007 
 
To listen to their views before determining the fate of the Urban 
Renaissance Agency and the Japan Housing Finance Agency, Prime 
Minister Fukuda met separately with Land, Infrastructure and 
Transport Minister Fuyushiba, who opposes privatizing the two 
corporations, and Administrative Reform Minister Watanabe, who 
insists on their privatization. After meeting them, the prime 
minister told reporters: "We need to investigate a little more. 
Study is still underway," and he put off a conclusion until 
tomorrow. 
 
Fuyushiba expressed his desire to retain the two corporations, 
remarking: "Even if they are reformed in the future, the people will 
be seriously troubled if they do not keep their current status." In 
reaction, Watanabe stressed the need for privatizing them. 
 
The plan for streamlining independent special corporations, after 
being authorized by the prime minister, will likely be adopted at a 
cabinet meeting on the 24th following the necessary procedures taken 
in the ruling camp tomorrow. 
 
13) ROK president-elect in rare move holds meetings with Japanese, 
U.S. ambassadors 
 
SANKEI (Page 2) (Excerpts) 
December 21, 2007 
 
 
TOKYO 00005633  010 OF 011 
 
 
Katsuhiro Kuroda, Seoul 
 
South Korean President-elect Lee Myung Bak of the Grand National 
Party held a meeting yesterday at party headquarters with Japanese 
Ambassador to South Korea Toshinori Shigeie and discussed future 
Japan-South Korea relations and other matters. The meeting followed 
one with the U.S. ambassador. It is extremely rare for a 
president-elect to hold meetings with Japanese and U.S. ambassadors 
on the day after the election. The events drew much attention as 
indicating Lee's stance of attaching importance to Japan and the 
United States. 
 
In the meeting, Ambassador Shigeie conveyed to Lee congratulatory 
messages from Prime Minister Yasuo Fukuda and Foreign Minister 
Masahiko Koumura. In response, Lee expressed his intention to make 
efforts to build new bilateral relations and strengthen cooperation 
in dealing with North Korea, stressing the importance of Japan-South 
Korea relations. At the same time, the president-elect requested 
Japan's greater investment in his country for improving economic 
relations. 
 
With the establishment of a new South Korean administration, Tokyo 
and Seoul are aiming to improve bilateral relations that have become 
icy under the Roh Moo Hyun administration. 
 
For starters on the diplomatic front, Prime Minister Fukuda is 
expected to visit South Korea to attend Lee's inauguration on Feb. 
¶25. Tokyo and Seoul are also studying a visit to Japan by President 
Lee Myung Bak coinciding with the G8 Lake Toya Summit in Hokkaido in 
July. 
 
Next year marks the 10th anniversary of the Japan-South Korea joint 
declaration and the 21st century Japan-South Korea action program, 
released in 1998 during the age of President Kim Dae Jung and Prime 
Minister Keizo Obuchi. For this reason, plans are in the works in 
the two countries to strengthen and expand bilateral relations by 
reconfirming them. 
 
14) Gas field issue can be resolved, says Chinese ambassador, 
pinning hopes on summit talks 
 
ASAHI (Page 4) (Full) 
December 21, 2007 
 
Chinese Ambassador to Japan Cui Tiankai, 55, held a press conference 
yesterday at the Japan National Press Club. In the session, touching 
on Prime Minister Fukuda's planned visit to China from Dec. 27 and 
Chinese President Hu Jintao's visit to Japan next spring, Cui said: 
"They are important for (China-Japan) relations. I would like to see 
the two leaders exchange in-depth views on the future of bilateral 
relations thoroughly." 
 
In his first press meeting after assuming office, Ambassador Cui 
also said about Prime Minister Fukuda: "I have high regard for his 
stance of putting high priority on China-Japan relations and Asia 
diplomacy." He also noted about the upcoming series of talks between 
the two leaders: "I hope they will draw a blueprint for the 
long-term development of the two countries and build a good 
framework." 
 
Additionally, regarding the question of jointly developing gas 
fields in the East China Sea, on which the Japan-China foreign 
 
TOKYO 00005633  011 OF 011 
 
 
ministerial in early December confirmed to aim at settlement by 
Prime Minister Fukuda's visit to China, the Chinese ambassador said: 
"The two countries are facing it with a sense of urgency." He also 
expressed hope for finding a breakthrough in the talks between the 
two leaders, saying: "From the broad standpoint of China-Japan 
relations and long-term common interests, it is a matter that must 
be resolved without fail. It is a matter that can be resolved." 
 
Meanwhile, regarding Japan-North Korea relations, including the 
abduction issue, he only said: "In the framework of the six-party 
talks, a working group has been established for the normalization of 
Japan-North Korean relations. I expect that they will be handled 
appropriately through a dialogue between Japan and North Korea." 
 
Ambassador Cui, a native of Shanghai, served as an Asian affairs 
bureau chief and an assistant foreign minister. 
 
15) METI, Environment Ministry in joint report to endorse 
possibility of 6 PERCENT  cut in greenhouse gas emissions 
 
YOMIURI (Page 2) (Full) 
December 21, 2007 
 
The Ministry of Economy, Trade and Industry (METI) and the 
Environment Ministry will finalize a final report today on a review 
of the nation's plan to reduce greenhouse gas emissions to meet the 
target set in the Kyoto Protocol. The report will require the 
industrial world and other sectors to reduce an additional 35 
million to 36 million tons of gas emissions, specifying that Japan 
will be able to attain the target of cutting emissions by 6 PERCENT 
from 1990 levels for fiscal 6 PERCENT . 
 
Under the current plan, it would be difficult for the nation to 
achieve the target, estimating that Japan's emissions would come in 
20 million to 34 million tons higher than what is need to meet its 
obligation. 
 
The draft report notes that industrial circles' upward revisions in 
their voluntary action plans will make it possible to cut 18 million 
tons more. The draft also says that emissions will be reduced by up 
to 11.5 million tons by applying heat insulation to more houses and 
improving automobiles' fuel economy, as well as by up to 10.5 
million tons by promoting energy conservation at households. 
 
DONOVAN