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RUEAWJA/USDOJ WASHDC PRIORITY
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RUEHNAG/AMCONSUL NAGOYA 3843
RUEHKSO/AMCONSUL SAPPORO 5769
RUEHBJ/AMEMBASSY BEIJING 0788
RUEHUL/AMEMBASSY SEOUL 6849
RUCNDT/USMISSION USUN NEW YORK 7545

UNCLAS SECTION 01 OF 08 TOKYO 005653 
 
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 12/26/07 
 
 
Index: 
 
Whaling: 
1) Japan calls off hunt for humpbacks (Asahi)    3 
 
Political issues: 
2) Prime Minister Fukuda scraps Abe's NSC plan  (Yomiuri)    3 
3) MOFA to retain Vice Minister Yachi  (Sankei)    4 
4) Cabinet Secretariat to set up intelligence anlysist post 
(Yomiuri)    4 
 
Defense and security issues: 
5) GOJ not to review midterm defense buildup program in current 
fiscal year  (Yomiuri)    5 
6) Okinawa Gov. Nakaima calls for Tokyo to review Futenma assessment 
plan  (Nikkei)    5 
7) Police, MSDF send papers to prosecutors on Aegis leaks  (Sankei) 
  5 
8) GOJ sees SDF Afghan mission as constitutional  (Yomiuri)    6 
9) Universities also to block military spies  (Yomiuri)    6 
10) ASDF posts liaison officer to new U.S. command in Hawaii 
(Sankei)    7 
 
Japan-China ties: 
11) Japan-China summit set for Dec. 28  (Tokyo Shimbun)    7 
12) Beijing deems it difficult to reach agreement with Tokyo in E. 
China Sea gas development talks  (Asahi)    8 
13) Japan-China joint fund eyed for environmental preservation in 
China  (Nikkei)    8 
 
Energy topics: 
14) 18 countries to participate in U.S. nuclear recycle plan, 
including Mitsubishi Heavy Industries  (Nikkei)    8 
15) Japan to take over North Korea's 45 billion yen debt on 
light-water reactor construction  (Yomiuri)    9 
 
Articles: 
 
1) Japan to suspend humpback whaling for year or two, out of 
consideration to IWC, Australia 
 
ASAHI (Page 1) (Full) 
December 22, 2007 
 
The government announced yesterday that it would call off for a year 
or two the catch of humpback whales, which Japan included on its 
list of species subject to its research whaling early this year, 
meeting strong reactions from Australia and the United States. 
Humpbacks are popular among whale-watchers. Japan's decision on the 
temporary suspension came in response to International Whaling 
Commission (IWC) Chairman William Hogarth's expression of his 
determination to normalize the function of the IWC, in which 
discussions over the whaling issue have become polarized and 
emotional. 
 
In a press conference yesterday, Chief Cabinet Secretary Machimura 
revealed that Chairman Hogarth had asked Japan to suspend humpback 
whaling for a year or two while the IWC makes efforts to normalize 
its function. He added: "We will not change the research whaling 
plan, but the government will suspend humpback whaling while the 
IWC-normalization process is underway." 
 
 
TOKYO 00005653  002 OF 008 
 
 
According to officials of the Ministry of Agriculture, Forestry and 
Fisheries (MAFF), Chairman Hogarth, keeping in mind Japan's position 
of vice chair of the IWC, visited Japan in mid-December and called 
for Japan's cooperation for the commission's utmost efforts to 
normalize its operations. MAFF takes the view that there will be no 
problem with the domestic supply of whale meat even without hunting 
humpbacks. 
 
Japan's whaling fleet left Shimonoseki Port in Yamaguchi Prefecture 
in mid-November this year and arrived at an area near the Southern 
Ocean. It plans to catch 850 minke whales, 50 fin whales, and 50 
humpbacks. 
 
However, the Australian government announced that it will send a 
fisheries patrol ship to monitor Japan's whaling activities in the 
Southern Ocean to collect evidence for a potential legal case 
against Japan's whaling program. A spokesman for the U.S. State 
Department also called Japan to practice self-control. As it stands, 
criticism of Japan's whaling is growing in the international 
community. The ambassadors to Japan of several countries, including 
Australia and Argentina, visited the Foreign Ministry yesterday and 
submitted a statement by about 30 countries against the resumption 
of Japan's research whaling. 
 
MAFF Minister Wakabayashi said that the government's decision to 
call off humpback whaling was "not based on Australia's 
announcement." But as Machimura said: "I think the decision could 
result in improving the relationship with Australia," consideration 
to relations with Australia was also behind the decision. Foreign 
Minister Koumura informed Australian Foreign Minister Smith of 
Japan's decision. 
 
2) Government formally drops idea of establishing Japanese version 
of U.S. National Security Council but notes it is necessary to 
strengthen Kantei functions 
 
YOMIURI (Page 2) (Excerpts) 
December 25, 2007 
 
The government formally decided at a meeting on Dec. 24 of its 
Security Council held at the Prime Minister's Official Residence 
(Kantei) to abandon the idea of establishing a Japanese version of 
the U.S. National Security Council (NSC) aimed at strengthening the 
command functions of the Kantei. In line with this decision, the 
government will scrap related bills during the current session of 
the Diet, including a bill revising the Security Council 
Establishment Law. During the session, Prime Minister Fukuda said, 
"Under the current political situation, we can't discuss the bills, 
and I think it is less likely that the bills will be approved." He 
added: "Strengthening the functions of the Kantei is necessary. I 
hope to see the chief cabinet secretary, the foreign minister, and 
the defense minister work in closer cooperation and play the roles 
expected of a Japanese version of the U.S. NSC." 
 
3) Appointment of new administrative vice foreign minister deferred 
 
SANKEI (Page 2) (Excerpts) 
December 26, 2007 
 
The government decided to delay appointing a new administrative vice 
foreign minister, which was planned for January. Behind this 
decision is the government's judgment that because the current 
 
TOKYO 00005653  003 OF 008 
 
 
extraordinary session of the Diet has been re-extended to Jan. 15, 
the government has no time to spare to select a new vice minister. 
 
Incumbent Administrative Vice Foreign Minister Shotaro Yachi (63) is 
to retire in March, but the government will delay his retirement so 
that personnel replacement, including the selection of a new vice 
minister, will be carried over to next summer after the coming 
ordinary Diet session. 
 
4) Government to set up info analyst posts to strengthen 
intelligence functions 
 
YOMIURI (Page 4) (Slightly abridged) 
December 25, 2007 
 
The government will strengthen its intelligence functions next 
fiscal year. It plans to set up intelligence analysis posts tasked 
with analyzing developments in issues such as the threat of North 
Korea and international terrorism in the Cabinet Secretariat. The 
government has also decided to establish a counterintelligence 
center with the aim of thoroughly protecting its information. 
Although the Fukuda administration officially decided yesterday to 
abandon a plan initiated by the former Abe administration to create 
a Japanese version of the U.S. National Security Council (NSC), it 
intends to enhance the government's ability to collect and analyze 
information. 
 
In a press conference yesterday, Chief Cabinet Secretary Machimura 
stressed that the government would strengthen intelligence 
gathering, saying: "Raising the government's intelligence-gathering 
abilities is a basic requirement for preserving Japan's peace, 
security and independence." 
 
About five analysts will be appointed to the Cabinet Intelligence 
and Research Office. They will be in charge of specialized areas, 
such as the Korean Peninsula, China and other Asian countries, 
international terrorism, and weapons of mass destruction. Based on 
analysis of information obtained by the government through persons 
or satellites, they will draft an information-assessment report and 
submit it to the Prime Minister's Office. 
 
The government intends to select for the posts "persons with 
specialized skills from both the government and the private sector," 
according to a senior officer of the Cabinet Intelligence Office. 
 
5) Midterm defense plan not to be reviewed in current fiscal year: 
Machimura 
 
YOMIURI (Page 2) (Full) 
December 25, 2007 
 
Chief Cabinet Secretary Machimura, meeting the press yesterday, said 
the government for now would not review its current midterm defense 
buildup plan for the period of five fiscal years from 2005 through 
¶2009. The current midterm defense buildup plan totals 24.24 trillion 
yen. "W will consider what to do about it after seeing the outcome 
of the advisory panel's discussions on a reform of the Defense 
Ministry," Machimura said. The government, if necessary, is to 
review the defense buildup plan during the current fiscal year as 
its third year in consideration of the international situation and 
financial circumstances. However, the government has set up the 
Defense Ministry reform panel in the wake of scandals involving the 
 
TOKYO 00005653  004 OF 008 
 
 
Defense Ministry. The panel is expected to work out an interim 
report in February next year. The government will then decide on 
whether to review the plan. 
 
6) Futenma assessment plan insufficient: Nakaima 
 
NIKKEI (Page 2) (Full) 
December 22, 2007 
 
Okinawa Prefecture's Governor Hirokazu Nakaima yesterday presented 
the Okinawa Defense Bureau with a statement calling for the 
government to review its environmental impact assessment plan for 
the relocation of the U.S. military's Futenma airfield in Okinawa 
Prefecture to the island prefecture's northern coastal city of Nago. 
Nakaima, in his statement, takes the position that the environmental 
assessment plan is "insufficient" in terms of what to survey and how 
to assess a potential impact on the environs of the relocation site 
for Futenma. 
 
The governor's statement calls for the government to disclose 
information about aircraft types and flight operations for the newly 
planned facility. Meanwhile, Nago City has proposed moving the 
Futenma relocation site to an offshore area. In this respect, the 
governor also calls for the government to conduct a fact-finding 
survey of aircraft noise. The government is planning to start an 
environmental survey in February next year. Nakaima asked the 
government to release its review of the assessment plan before 
that. 
 
7) Papers pertaining to the case of Aegis information leak against 
four SDF officers, including one lt. cmdr., sent to prosecutors 
 
SANKEI (Page 22) (Abridged) 
December 26, 2007 
 
The Kanagawa Prefectural Police and the Maritime Self-Defense Force 
Criminal Investigation Command, which were jointly investigating the 
case of a petty officer 2nd class (33) having taken key information 
on the Aegis defense system, yesterday sent to prosecutors papers 
pertaining to the leak of classified information involving four SDF 
officers, including a lieutenant commander (43) at the MSDF Fleet 
Training Command, who had taught at the MSDF First Service School, 
on charges of violation of the Law Concerning the Protection of 
Secrets for the Japan-U.S. Mutual Defense Assistance Agreement, thus 
 
SIPDIS 
winding up their investigation into the case. 
 
Three other officers who have been referred to prosecutors were: a 
lieutenant (49) who had taught at the above service school and who 
faces additional charges; a petty officer 2nd class (38) who had 
been a student at Maizuru Training Center; and a leading seaman (24) 
who had been assigned to service activity at Yokosuka Base. 
 
8) Government decides to interpret SDF's participation in ISAF as 
constitutional in terms of complementing police activities 
 
YOMIURI (Top play) (Lead paragraph) 
December 22, 2007 
 
It was learned on Dec. 21 that the government has come to the view 
that the Self-Defense Forces' (SDF) participation in the 
International Security Assistance Force (ISAF) operating in 
Afghanistan would be constitutional. In the past, however, cabinet 
 
TOKYO 00005653  005 OF 008 
 
 
members had stated in their Diet replies that the SDF's 
participation in ISAF would be regarded as the use of armed force, 
which is prohibited by the Constitution. By making changes to this 
stance, the government has now come out with a fresh view that 
ISAF's main activities would not be regarded as the use of weapons 
in light of international law and has noted that in some cases, the 
SDF would be allowed to take part in ISAF activities that might use 
armed force. The government has thus implied the possibility of the 
SDF's future participation in ISAF, even though there is another 
condition that must be met, which is how to confirm a "noncombat 
area." As for the SDF's participation in ISAF at this point in time, 
the government will assess the security situation in Afghanistan and 
carefully decide whether to send the SDF to that country, even 
though the constitutional issue has now been resolved. 
 
9) Protection of WMD-convertible technology at universities: 
Government plans to adopt stricter screening system when accepting 
foreign students 
 
YOMIURI (Page 2) (Full) 
Evening, December 25, 2007 
 
The government yesterday mapped out guidance on technical control of 
security trade guidelines targeting research organs and 
universities, with the aim of preventing the outward flow of 
technologies convertible into weapons of mass destruction (WMD), 
such as nuclear weapons. The guidelines call for setting disclosure 
standards for such technologies and adopting a stricter screening 
system for the acceptance of foreign students. The government will 
notify related organs of the guidelines early next year. 
 
The guidelines were mapped out by the Ministry of Economy, Trade and 
Industry (METI) and the Ministry Education, Culture, Sports, Science 
and Technology (MEXT). They call for setting three to four 
categories, such as "top secret," "secret" and "for internal use 
only," based on the principle that not all information should be 
disclosed freely and it should be checked whether the guidelines 
lack the viewpoint of security. 
 
The guidelines also cite Iran, Iraq and North Korea as "countries of 
concern" that are developing WMDs. Regarding the acceptance of 
students from those countries, the package notes that it is 
necessary to cautiously consider technologies possessed by host 
sections and departments when accepting students who have the 
possibility of entering employment in military-affairs-related 
sectors or the military when they return their home countries. 
 
According to MEXT, 229 Iranian students and researchers and 13 Iraqi 
students and researchers were studying in Japan as of May this year, 
but there are no North Koreans. The guidelines recommend that host 
entities vet applicants' personal history and nationalities at the 
stage when applications are filed. 
 
As other points to keep in minds, the guidelines note: (1) staff 
members must submit all technical information they possess to 
universities or research organs before they resign; (2) the 
disclosure of information through patent applications and the 
release of theses should also be taken note of; and (3) when 
accepting tours of research facilities by foreigners, careful 
consideration must be given in advance to the specifics of the 
tours. 
 
 
TOKYO 00005653  006 OF 008 
 
 
10) ASDF posts liaison officer to new U.S. command in Hawaii 
 
SANKEI (Top play) (Abridged) 
December 23, 2007 
 
The Defense Ministry has sent a liaison officer to the U.S. Air 
Force's warfighting headquarters newly established in Hawaii, 
sources revealed yesterday. The newly launched headquarters, an 
organization in charge of planning and conducting operations, has 
24-hour command and control functions using a satellite network. The 
new headquarters will command air operations in its area ranging 
from the Pacific Ocean to the Indian Ocean. Japan, with its liaison 
officer posted to the new command, will step up its intelligence 
sharing and interoperability with the United States for emergency 
and disaster relief operations. 
 
The new command, called the Kenny Headquarters, is located at Hickam 
Air Force Base in Hawaii. It was established in June 2005 and is 
currently tasked with the Pacific Air Forces Headquarters' command 
and control functions. The Defense Ministry sent an Air Self-Defense 
Force lieutenant colonel to the Kenny Headquarters this month. 
 
11) Japan-China summit on Dec. 28: Premier to visit China tomorrow 
 
TOKYO SHIMBUN (Page 3) (Full) 
December 26, 2007 
 
Chinese Foreign Ministry Spokesman Qin Gang on Dec. 25 released the 
Chinese side's schedule for welcoming Prime Minister Yasuo Fukuda, 
who will visit the nation from the 27th through the 30th. The top 
three officials -- President Hu Jintao, National People's Congress 
Standing Committee Chairman Wu Bangguo, and Premier Wen Jiabao -- 
will meet with Fukuda on the 28th. Wen will also attend a breakfast 
meeting on the 29th to cordially welcome him. 
 
Qin underscored: "Prime Minister Fukuda's visit to China will carry 
a significant meaning for the development of China-Japan relations. 
The leaders will exchange in-depth opinions on issues of interest to 
both countries." However, regarding talks on the development of gas 
fields in the East China Sea, an issue that will likely have 
rough-going, Qin repeated China's usual stance that it will aim for 
an early settlement of the issue based on the principle of joint 
development, putting the dispute on the back burner. Regarding a 
joint statement after the summit, he remained cautious, simply 
saying, "Consultation is now under way." 
 
Fukuda will deliver a speech at Beijing University on the 28th. On 
the 29th, he will visit a primary school in Beijing. He will then 
visit Tianjin, Wen's hometown, and Qufu in Shandong, the birthplace 
of Confucius. Wen visited Kyoto and Osaka along with Tokyo when he 
came to Japan in April. The Chinese side had asked Fukuda to visit 
provincial cities. 
 
12) Chinese Foreign Ministry spokesman indicates difficulty in 
resolving gas-field development row 
 
ASAHI (Page 4) (Full) 
December 26, 2007 
 
(Kenji Minemura, Beijing) 
 
In a regular press conference on Dec. 25, Chinese Foreign Ministry 
 
TOKYO 00005653  007 OF 008 
 
 
Spokesman Qin Gang said on the standoff over joint gas-field 
development in the East China between Japan and China, which is 
expected to be high on the agenda at the upcoming meeting between 
Prime Minister Fukuda and President Hu Jintao planned for Dec. 28: 
"Since there is a wide gap in both sides' views, negotiations have 
reached a stalemate." He added: "The Chinese government has always 
attended the negotiations in a positive and practical manner," 
indicating the need for Japan to make further efforts to resolve the 
dispute. 
 
13) Environmental protection in China: Government, ruling camp 
mulling establishment of joint Japan-China fund as proposal by PM 
Fukuda in China: Coordination underway with outlay of 10 billion yen 
in mind 
 
NIKKEI (Page 1) (Excerpts) 
December 23, 2007 
 
The government and the ruling camp on Dec. 22 started looking into 
the possibility of setting up a fund to be jointly financed by Japan 
and China with the aim of protecting the environment in China. The 
heads of the ruling parties will coordinate the details. If the 
proposal is finalized, Prime Minister Yasuo Fukuda will propose it 
to the Chinese side during his visit to the nation starting on Dec. 
¶27. 
 
Protecting the environment in China has been seen as one means of 
preventing global warming. The government wants to play up the 
Fukuda administration's enthusiasm with the establishment of such a 
fund in the run-up to the G-8 (Lake Toya Summit) in July next year, 
where global warming will be one of the top agenda items. 
 
The establishment of the fund is also intended to partially replace 
the end of yen loans in fiscal 2007. The government has searched for 
a new framework for providing funds to China based on the policy of 
continuing cooperation on the environment. It has judged that if 
both countries provide funds, hard-liners against China in the 
Liberal Democratic Party (LDP) would agree. 
 
The government wants to confer on the proposal at the working level, 
after proposing it at the bilateral summit, and reach an agreement 
at the summit in July. 
 
14) U.S. nuclear fuel processing plan draws in 18 countries 
 
NIKKEI (Page 7) (Excerpts) 
December 26, 2007 
 
Kazuaki Fujii, Washington 
 
The United States government is accelerating its plan to establish a 
framework to increase the use of nuclear power internationally and 
for countries to reprocess used nuclear fuel. As of May, only four 
countries - Japan, France, China, and Russia - had joined the U.S. 
plan. But the number has increased to 18. The U.S. government has 
already signed contracts with such private firms as Mitsubishi Heavy 
Industries, Japan Nuclear Fuel Limited, and Areva of France. The 
U.S. aims to dissolve concern about funding and technology by 
joining hands with foreign countries, mainly Japan. 
 
15) Assumption of North Korea's debts worth 45 billion yen: MOFA 
insists on demanding payment 
 
TOKYO 00005653  008 OF 008 
 
 
 
YOMIURI (Page 4) (Full) 
December 22, 2007 
 
The government has decided to in principle take on 44.8 billion yen 
in the outstanding balance of loans the Japan Bank for International 
Corporation (JBIC) extended to North Korea for the construction of 
light water nuclear reactors by the Korean Peninsula Energy 
Development Organization (KEDO). The procedure will be that the 
government outlays funds to KEDO, and KEDO pays the money to the 
JBIC. The outlay of funds will start next fiscal year and continue 
for up to five years. The government earmarked approximately 9 
billion yen in the initial fiscal 2008 budget. 
 
A senior official of the Ministry of Foreign Affairs (MOFA) 
yesterday stressed his ministry's view that it will ask North Korea 
to repay the money, noting that the outlay of funds to KEDO does not 
mean that the Japanese government will assume North Korea's debts 
payments. However, it is viewed that there is almost no possibility 
of North Korea responding to Japan's demand for the repayment of the 
loans, as a government source put it. Such being the situation, it 
would be unavoidable for Japan to cover North Korea's debts with 
taxpayers' money. Some ruling party members are voicing skepticism 
about the idea of Japan assuming the payment of debts held by North 
Korea. 
 
The government in April 1999 decided at a cabinet meeting that the 
JBIC would extend loans up to 116.5 billion yen (1 billion dollars) 
for the construction of two nuclear light-water reactors, which KEDO 
will provide to that nation. North Korea was expected to pay the 
loans through KEDO. However, the arrangement was that in the event 
of North Korea failing to pay its debts, the Japanese government 
would cover the losses. Following North Korea's declaration of its 
possession of nuclear weapons, it was decided to end construction of 
the light-water nuclear reactors in May 2006. As a result, loans 
worth 44.9 billion yen turned sour. 
 
DONOVAN