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UNCLAS SECTION 01 OF 15 TOKYO 000108 
 
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 01/15/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's weekend schedule  (Nikkei) 
 
Opinion polls: 
4) Fukuda Cabinet support rate up 3 points but still remains low at 
34 PERCENT  in Asahi poll, with public still upset by pension fiasco 
 (Asahi) 
5) Cabinet support rate recovers somewhat to 41 PERCENT  in Kyodo 
poll  (Tokyo Shimbun) 
6) Cabinet support rate almost unchanged at 42 PERCENT  in Nikkei 
poll; 43 PERCENT  of public unsupportive of ruling camp's override 
vote in Lower House to pass refueling bill  (Nikkei) 
7) Fukuda Cabinet's "way of carrying out business" does not sit well 
with 47 PERCENT  of Japanese in Nikkei poll  (Nikkei) 
 
Diet affairs: 
8) Bill to allow MSDF refueling mission to resume in Indian Ocean is 
enacted by override vote in Lower House, first time constitutional 
provision used in 57 years  (Tokyo Shimbun) 
9) Absence of Democratic Party of Japan (DPJ) head Ozawa from the 
final vote in the Lower House sets off a storm of criticism, 
including in his party  (Tokyo Shimbun) 
 
10) Ruling camp plans now to kill the DPJ's bill calling for an Iraq 
withdrawal of ASDF, but it is willing to talk about the other bill 
for Afghan assistance  (Sankei) 
11) With regular Diet session about to open, LDP plans to ram 
through bill maintaining provisional tax on gasoline, a measure 
opposed by the DPJ  (Yomiuri) 
 
12) LDP's action plan shows alarm in party about possibly losing the 
farm vote  (Tokyo Shimbun) 
 
Defense and security issues: 
13) New missile-defense air defense system could be operational this 
year  (Nikkei) 
14) Outline of new antiterrorism special measures law for Indian 
Ocean refueling services  (Sankei) 
 
15) New legislation planned to further clarify rules for dealing 
with intrusions by suspicious foreign ships  (Nikkei) 
 
16) Japan, China in working-level talks, search for compromise 
solution on joint development of gas fields along median line in E. 
China Sea  (Sankei) 
 
17) Agricultural Ministry announces another U.S. beef import 
violation, with the possibility of some of the meat already having 
been sold in Japan  (Nikkei) 
 
18) Japan loses part of interests in development of oil fields in 
Caspian Sea: Kazakhstan state-run company increases its stock 
holding  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
 
TOKYO 00000108  002 OF 015 
 
 
Central government to allow 80 municipalities to issue 
deficit-covering local bonds due to drop in tax revenues 
 
Mainichi: 
Progress toward eco-society: Toyota Motor to sell plug-in hybrid 
electric vehicle in 2010 
 
Yomiuri: 
METI to establish new legislation against industrial espionage 
 
Nikkei: 
MLIT considering new legislation for controlling suspicious foreign 
vessels 
 
Sankei: 
Government, ruling bloc looking for ways to avoid confusion in April 
because of expiration of governmental revenue-related laws 
 
Tokyo Shimbun: 
MLIT-affiliated road foundation that accepts retired bureaucrats 
found to have earned as much as 38 billion yen from sale of 
facilities in expressway rest areas 
 
Akahata: 
Survey of 50 cities across the country about how many times 
municipalities pay the cost of pregnant women's medical 
examinations: Only 10 cities pay for five or more checks 
 
2) EDITORIALS 
 
Asahi: 
(1) Proposals for better society: Let's destroy sectionalism in 
science and technology sectors 
 
Mainichi: 
(1) Extraordinary Diet session will end today without showing 
anything new 
(2) U.S. presidential campaign: "Change" the buzzword 
 
Yomiuri: 
(1) New order: Japan needs to come up with global strategy against 
worsening climate change 
 
Nikkei: 
(1) M&As can convert change into opportunity and bring about growth 
 
Sankei: 
(1) Recommendations for reform of the civil servant system: 
Discussion starts now 
(2) Handball rematch for Olympic berth: Japan should find middle 
ground to avoid mud-slinging 
 
Tokyo Shimbun: 
(1) Social welfare in 2008: Government must act before raising 
burden 
 
Akahata: 
(1) PhD holders facing difficulty finding jobs: Solution urgently 
needed for progress in science 
 
3) Prime Minister's Official Residence (Kantei) 
 
 
TOKYO 00000108  003 OF 015 
 
 
Prime Minister's schedule, January 11 
 
NIKKEI (Page 2) (Full) 
January 12, 2008 
 
09:01 
Attended a cabinet meeting. Chief Cabinet Secretary Machimura stayed 
on. 
 
09:55 
Met Vice Land and Transport Minister Minehisa at the Kantei. 
 
11:31 
Met special cabinet advisers Kurokawa and Okuda and cabinet 
councilor Nishimura in the presence of Machimura. 
 
12:56 
Chatted with former Prime Minister Mori in the Diet building. 
Afterwards attended a Lower House plenary session. 
 
14:17 
Met at the Kantei with Deputy Chief Cabinet Secretaries Iwaki and 
Futahashi, joined in by Machimura. 
 
15:27 
Met LDP constitutional council chairman Nakayama and his deputy 
Funada. 
 
16:06 
Met Cabinet Intelligence Director General Mitani, followed by Deputy 
Foreign Minister Yabunaka and Asian and Oceanian Affairs Bureau 
chief Sasaki. 
 
17:00 
Met LDP Reform Headquarters chief Takebe, followed by former Chief 
Cabinet Secretary Nakagawa and Economic and Fiscal Policy Minister 
Ota. 
 
18:38 
Met Assistant Deputy Chief Cabinet Secretary Saka. 
 
19:04 
Met Machimura, Iwaki, and Futahashi. 
 
20:08 
Dined at a Grand Prince Hotel Akasaka Chinese restaurant with Kantei 
officials and Machimura. 
 
21:46 
Returned to his residence in Nozawa. 
 
Prime Minister's schedule, January 12 
 
NIKKEI (Page 2) (Full) 
January 13, 2008 
 
10:33 
Visited the Setagaya Social Insurance Office with Social Insurance 
Agency Director General Sakano. 
 
11:43 
Dined at a Grand Prince Hotel Akasaka Japanese restaurant with his 
 
TOKYO 00000108  004 OF 015 
 
 
secretaries. 
 
SIPDIS 
 
12:38 
Had a study session with Chief Cabinet Secretary Machimura and his 
deputies Futahashi, Iwaki and Ono at the Prime Minister's Official 
Residence. 
 
17:34 
Returned to his private residence in Nozawa. 
 
Prime Minister's schedule, January 13 
 
NIKKEI (Page 2) (Full) 
January 14, 2008 
 
Spent all day at his private residence. 
 
Prime Minister's schedule, January 14 
 
NIKKEI (Page 2) (Full) 
January 15, 2008 
 
10:42 
Arrived at his official residence. 
 
16:34 
Watched the movie "Earth" with his wife, Kiyoko, at the Shinagawa 
Prince Cinema in the Shinagawa Prince Hotel. 
 
18:22 
Met GAGA Communications Chairman Yoda. 
 
18:44 
Returned to his official residence. 
 
4) Poll: Cabinet support at 34 PERCENT 
 
ASAHI (Page 1) (Abridged) 
January 13, 2008 
 
The approval rating for Prime Minister Fukuda and his cabinet was 34 
PERCENT  in a telephone-based spot nationwide public opinion survey 
conducted by the Asahi Shimbun on Jan. 11-12 after the House of 
Representatives' overrode the House of Councillors' decision in a 
second vote to enact a new antiterrorism bill. In the last survey 
taken Dec. 19-20, the Fukuda cabinet's support rate was 31 PERCENT , 
hitting an all-time low. This time, it rebounded somewhat but was 
still low. The public is taking a severe view of the government's 
pension record-keeping flaws, a factor accounting for the low rate 
of public support for the Fukuda cabinet. The ruling coalition 
passed the new antiterrorism bill in a second vote in the House of 
Representatives after it was voted down in the House of Councillors. 
In the survey, respondents were asked if they thought it was 
appropriate to have done so. In response, public opinion was split, 
with "yes" and "no" even at 41 PERCENT . 
 
The Fukuda cabinet's approval rating was over 40 PERCENT  until 
early December last year. In the previous survey, however, approval 
plummeted due to the government's pension record-keeping mess. In 
the survey this time, respondents were asked if they appreciated the 
Fukuda cabinet's response to the pension issue. To this question, 
"yes" accounted for only 26 PERCENT  (36 PERCENT  in the last 
 
TOKYO 00000108  005 OF 015 
 
 
survey), with "no" at 55 PERCENT  (46 PERCENT  in the last survey). 
As seen from these figures, the public's view of the issue is 
severer than in the last survey. Even among Fukuda cabinet 
supporters, "yes" accounted for 45 PERCENT , with "no" at 31 PERCENT 
. 
 
In the last survey, which showed a sharp drop in the Fukuda 
cabinet's support rate, respondents were also asked if they thought 
it would be appropriate for the House of Representatives to enact 
the new antiterrorism bill in a second vote. To this question, 43 
PERCENT  answered "no," with 37 PERCENT  saying "yes." As seen from 
these figures, negative answers outnumbered affirmative ones. 
 
The Diet has now enacted the new antiterrorism special measures law, 
and Japan will resume the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. In the survey this time, respondents 
were asked if they thought Japan should do so. To this question, 48 
PERCENT  answered "no," with 34 PERCENT  saying "yes." As seen from 
these figures, negative answers outnumbered affirmative ones. In the 
last survey, "no" (48 PERCENT ) topped "yes" (37 PERCENT ). This 
time, the gap widened further. When asked whether to support the new 
antiterrorism special measures law itself, 40 PERCENT  answered 
"no," with 36 PERCENT  saying "yes." 
 
Respondents were further asked if they thought it would be 
appropriate for the House of Representatives to override the House 
of Councillors' decision in a second vote over other bills. To this 
question, "yes" accounted for only 18 PERCENT , with "no" at 35 
PERCENT  and "can't say which" at 44 PERCENT . Among those who 
support the ruling Liberal Democratic Party, about 70 PERCENT 
supported the House of Representatives' enactment of the new 
antiterrorism bill in a second vote. However, when it comes to the 
advisability of enacting other bills in a second vote, "yes" 
accounted for only 30 PERCENT  among LDP supporters and 19 PERCENT 
among those who support New Komeito, the LDP's coalition partner. 
Even among those who support the ruling coalition, there are 
cautious views about the House of Representatives' option of 
overriding the House of Councillors' decision for other legislative 
measures. 
 
5) Poll: Cabinet support rebounds to 41 PERCENT 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
January 13, 2008 
 
Following the Diet passage of a new antiterrorism bill, Kyodo News 
conducted a telephone-based spot nationwide public opinion survey on 
Jan. 11-12. The rate of public support for the Fukuda cabinet was 
41.4 PERCENT , up 6.1 percentage points from the last survey taken 
in December last year. The bounce can be taken as reflecting Prime 
Minister Yasuo Fukuda's political decision to help hepatitis C 
victims. In addition, his ruling coalition enacted the new 
antiterrorism law. However, the Fukuda cabinet's disapproval rating 
was 42.8 PERCENT  and still outstrips its approval rating. The 
Fukuda administration is still facing difficulties in running its 
government. 
 
The House of Councillors voted down the new antiterror legislation. 
After that, the House of Representatives overrode the upper 
chamber's decision in a second vote. In the survey, respondents were 
asked if they thought it was appropriate to have done so. In 
response, 46.7 PERCENT  answered "no," with 41.6 PERCENT  saying 
 
TOKYO 00000108  006 OF 015 
 
 
"yes." Asked whether to support the now-enacted new antiterrorism 
special measures law, public opinion was split, with 44.1 PERCENT 
saying "yes" and 43.9 PERCENT  saying "no." 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 32.0 PERCENT , up 6.8 points. The 
leading opposition Democratic Party of Japan (Minshuto) was 27.0 
PERCENT , down 1.5 points. The LDP ranked first again, topping the 
DPJ. New Komeito, the LDP's coalition partner, scored 4.4 PERCENT . 
Among other political parties, the Japanese Communist Party was at 
2.3 PERCENT , with the Social Democratic Party (Shaminto) at 1.5 
PERCENT , the People's New Party (Kokumin Shinto) at 0.6 PERCENT , 
and the New Party Nippon (Shinto Nippon) at 0.4 PERCENT . The 
proportion of those with no particular party affiliation was 30.5 
PERCENT . 
 
6) Nikkei opinion poll: Support of revote on Indian Ocean refueling 
legislation registers 43 PERCENT ; Cabinet support rate almost 
unchanged at 42 PERCENT , with non-support rate at 38 PERCENT 
(Nikkei) 
 
NIKKEI (Page 1) (Full) 
January 13, 2008 
 
In a spot opinion poll that Nikkei carried out Jan. 11-12, 43 
PERCENT  of the public supported the Lower House's passage of the 
special measures law allowing resumption of the refueling mission in 
the Indian Ocean by overriding the Upper House's rejection of the 
bill. This was five points more than the 38 PERCENT  who opposed the 
revote. The Fukuda Cabinet's support rate was 42 PERCENT , almost 
the same as last month's poll. The non-support rate was at 46 
PERCENT , also almost unchanged from the last survey. 
 
Although the override vote by the Lower House on the Indian Ocean 
refueling bill was singled out as symbolic of the lopsided situation 
in the Diet (with the opposition camp controlling the Upper House), 
there seemed to be little impact on the cabinet support rate. The 
non-support rate, however, was higher than the support rate for the 
second month in a row. It appears that the effect as before was more 
from such issues as the missing pension records and the defense 
ministry scandals (than the antiterrorism bill). 
 
In case the Lower House will be forced to override (in the upcoming 
regular Diet session) the Upper House's rejection of a group of 
fiscal 2008 budget-related bills, including a measure maintaining 
the provisional high tax rate on special revenues designated for 
road construction that determines the price of gasoline, 42 PERCENT 
of the public was against the move, while only 36 PERCENT  supported 
it. For the ruling parties, the hurdle of a revote on the 
budget-related bills directly related to the people's daily lives 
will prove to be much higher than that of the Indian Ocean refueling 
bill. 
 
Respondents who did not support the cabinet were asked to pick 
several reasons why they chose that answer. At the top of the list, 
51 PERCENT  of the public cited a "lack of leadership," followed by 
30 PERCENT , who chose, "because the policies are bad." The third 
most chosen answer was "because it is a Liberal Democratic Party 
(LDP) Cabinet," with 27 PERCENT . The top reason for supporting the 
cabinet with 39 PERCENT  of the public was, "I can trust its 
character." 
 
 
TOKYO 00000108  007 OF 015 
 
 
Support for the LDP slipped two points to 36 PERCENT . The 
Democratic Party of Japan's (DPJ) support rate slid 4 points to 30 
PERCENT . In the last poll, the margin between the rates of support 
for the two parties was only 4 points, but this time, it widened to 
6 points. 
 
 
The survey was carried out nationwide among men and women by Random 
Digital Dialing (RDD) by telephone. The effective response rate was 
58.3 PERCENT , with 744 out of 1,277 households responding to the 
digitized calls. 
 
7) Nikkei poll: 47 PERCENT  do not appreciate the "way the Fukuda 
Cabinet does business," a three-point drop from the last survey, 
with the top reason being its economic policy (Nikkei) 
 
NIKKEI (Page 2) (Full) 
January 14, 2008 
 
In Nikkei's opinion poll carried out on Jan. 11-12, when respondents 
were asked whether they "appreciated" the Fukuda Cabinet's way of 
doing business, 47 PERCENT  answered negatively. This was a 3-point 
drop from the figure in the December poll, but it was far higher 
than the 34 PERCENT  who said they "appreciated" it. As for the 
reason for the negative evaluation, 28 PERCENT  cited the way it 
"tackled fiscal reconstruction and economic policy," changing places 
with the response, "handling of the pension issue," which topped all 
others in the last poll. The apparent reason for the shift seems to 
have been the effect of the falling stock market and other economic 
issues. 
 
The most chosen reason for those who positively evaluated the 
cabinet's performance was is handling of the pension issue, with 25 
PERCENT . Although the poll was taken right after the passage of the 
Indian Ocean refueling bill, no more than 13 PERCENT  of the public 
picked the answer, "response to the issue of antiterrorism 
assistance." 
 
When analyzing party-specific support, 54 PERCENT  of Liberal 
Democratic Party (LDP) supporters gave the cabinet high marks for 
the way it did business, while 60 PERCENT  of the New Komeito 
supporters felt the same. Both responses were a majority view. 
However, 69 PERCENT  of Democratic Party of Japan (DPJ) and 56 
PERCENT  of unaffiliated voters were unappreciative of the way the 
cabinet ran the government. 
 
Only 32 PERCENT  of male respondents were appreciative of the Fukuda 
cabinet's performance, while 51 PERCENT  were not. Among women, 36 
PERCENT  gave it high marks, but 46 PERCENT  did not. 
 
8) Ruling coalition readopts new antiterrorism bill with first 
two-thirds vote in Lower House in 57 years 
 
TOKYO SHIMBUN (Top Play) (Lead paragraph) 
January 12, 2008 
 
The new antiterrorism special measures bill to allow the Maritime 
Self-Defense Force (MSDF) to resume its refueling activities in the 
Indian Ocean was readopted in the Lower House plenary session on the 
afternoon of Jan. 11 with a two-thirds majority of the ruling 
Liberal Democratic Party (LDP) and its coalition partner New Komeito 
members based on Article 59 of the Constitution. With the passage of 
 
TOKYO 00000108  008 OF 015 
 
 
the new antiterrorism bill, the focus in the Diet will move to a 
battle between the ruling and opposition camps over bills related to 
the fiscal 2008 budget in the upcoming regular session set to 
convene on the 18th. In order to pass these bills through the Diet, 
the government and ruling coalition are determined not to refrain 
from taking the rare step of overriding an Upper House rejection. 
However, the main opposition Democratic Party of Japan (DPJ or 
Minshuto) is seeking the right timing to submit a censure motion 
against Prime Minister Yasuo Fukuda. As it stands, the wrangling 
between the ruling and opposition blocs over budget-related bills is 
certain to lead to dissolution of the House of Representatives. 
 
9) Lower House plenary session over new antiterrorism bill lacks 
tension; DPJ President Ozawa leaves session without casting ballot 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 15, 2008 
 
Despite the historical significance of the House of Representatives 
overriding a House of Councillors' rejection of a bill for the first 
time in 57 years to pass the new antiterrorism special measures bill 
to resume Japan's refueling mission in the Indian Ocean, the 
parliamentary proceedings went smoothly moved and lacked tension. 
 
Around 2:00 p.m. when the vote-taking started, some ruling camp 
lawmakers were heard voicing enthusiasm. It was the only time that 
there was a stir in the session. Jeering by ruling coalition members 
failed to prevent opposition legislators from delivering speeches 
opposing the enactment of the antiterrorism bill. Even some ruling 
camp members were smiling when casting their vote. 
 
The opposition parties did not take any strategy of dragging out the 
vote by using such tactics as a filibuster or ox-walk. 
 
The only event of import was when ruling and opposition Diet 
steering committee members gathered around the chairman's seat to 
confer about the contents of a speech by DPJ lawmaker Yoshito 
Sengoku. The plenary session ran about one hour as scheduled without 
heated battles between the ruling and opposition camps. 
 
For the ruling bloc, enacting the new antiterrorism bill by a 
two-thirds lower chamber override vote was the predetermined policy 
course, because the number of Lower House members (336) from the 
ruling Liberal Democratic Party (LDP)  and its coalition partner New 
Komeito exceeds the 320 seats needed for an override. A senior 
ruling camp member pointed out prior to the plenary session: "We 
have to just cast our ballot today." 
 
It was unexpected that DPJ President Ichiro Ozawa left the session, 
abstaining from voting. At 1:39 p.m. when Ozawa left the session 
during a speech by a Social Democratic Party member, a DPJ lawmaker 
voiced: "Ozawa disappeared!" Another LDP member jeered: "(Ozawa) 
favors the (government's bill). It's a rebellion." 
 
10) Ruling camp to scrap DPJ Iraq bill but to continue discussion on 
its counterproposal to new antiterrorism bill 
 
SANKEI (Page 5) (Excerpts) 
January 15, 2008 
 
The government and the ruling camp decided yesterday to scrap the 
bill intended to withdraw the Air Self-Defense Force (ASDF) from 
 
TOKYO 00000108  009 OF 015 
 
 
Iraq, which was submitted to the Diet by the Democratic Party of 
Japan (DPJ) and adopted in the House of Councillors. But they have 
decided to continue to deliberate in the ordinary Diet session to 
start on Jan. 18 on the Afghanistan reconstruction special measures 
bill that the DPJ submitted as a counterproposal to the government's 
new antiterrorism bill. The government seems to be aiming to 
underscore its willingness to discuss the Afghanistan bill with the 
main opposition party, with the aim of paving the way for permanent 
legislation to enable Self-Defense Force (SDF) troops to be 
dispatched overseas as required. 
 
The House of Representatives antiterrorism special committee, 
chaired by Takashi Fukaya, will decide today, the last day of the 
current extraordinary Diet session, to discuss the Afghanistan bill 
at the ordinary Diet session. 
 
But the Iraq bill calls for immediately withdrawing ASDF troops on 
an airlift mission for multinational forces in Iraq. Since such a 
call is hard for the government and the ruling parties to accept, 
they will kill the bill without taking procedures for continued 
debate. 
 
The DPJ's Afghanistan bill allows the dispatch of SDF troops only 
for humanitarian and reconstruction assistance, such as providing 
medical services and transporting aid materials. Given this, the 
government has decided to continue deliberations on the bill. A 
senior member of the Liberal Democratic Party Diet Affairs Committee 
said: "The bill contains measures that could lead to permanent 
legislation. It may be possible for the ruling camp to reach an 
agreement with the DPJ. Through deliberations, we can underline a 
lack of unity in the DPJ." 
 
11) LDP determined to put bill amending gas tax to second vote; DPJ 
hints at submitting censure motion against premier 
 
YOMIURI (Page 1) (Excerpts) 
January 14, 2008 
 
Liberal Democratic Party (LDP) Secretary General Ibuki on Jan. 13 
clarified his party's decision to aim at securing Diet approval 
within the current fiscal year for a bill amending the Special Tax 
Measures Law, one of the most contentious issues in the upcoming 
regular Diet session, and putting it to a second vote in the Lower 
House if the opposition camp votes it down (in the Upper House). In 
opposition, Democratic Party of Japan (DPJ) Diet Affairs Committee 
Chairman Kenji Yamaoka hinted at the possibility of submitting a 
censure motion against Prime Minister Fukuda. The situation is now 
beginning to assume a serious aspect of the ruling and opposition 
camps colliding head-on. 
 
The legislation is aimed at maintaining the provisional tax rate 
imposed on gasoline and the small- and medium-sized businesses 
investment promotion tax system, which expire at the end of March. 
If the bill fails to obtain Diet approval within the present fiscal 
year, the provisional rate added to the gasoline tax would be 
scrapped, lowering gasoline taxes starting in April. However, there 
is also the possibility of a tax break for small- and medium-size 
businesses that made investment being scrapped. 
 
Referring to the amendment bill, Ibuki on a Fuji-TV talk show 
indicated his perception that it would be impossible for the bill to 
clear the Lower House before the end of January, noting, "It would 
 
TOKYO 00000108  010 OF 015 
 
 
be impossible in terms of time." However, he noted, "The ruling 
parties will approve it again in the Lower House if the DPJ opposes 
it." 
 
12) LDP's action plan for 2008 filled with alarm about political 
situation 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 15, 2008 
 
In the wake of its crushing defeat in last year's House of 
Councillors election, the ruling Liberal Democratic Party (LDP) has 
issued an action plan for 2008, which will be adopted in its 
convention on Jan. 17. The plan contains analysis on the outcome of 
the Upper House race in the beginning part. Revising completely last 
year's action plan, the LDP this time expresses a sense of alarm 
toward the next House of Representatives election. 
 
The LDP will adopt the action plan at its annual convention. Over 
the past several years, the party subtitled the 2006 action plan, 
"Reform and Acceleration," and the 2007 one, "Japan, A Beautiful 
Country"  -- catch phrases used in the party leadership races. 
 
However, the party did not use Prime Minister Yasuo Fukuda's catch 
phrase "Integrity and Steadiness" for its action plan for 2008. It 
subtitles the action plan as "Stand up LDP with Fresh Determination 
and More Challenges," reflecting the current political situation. 
 
Party Organization Headquarters Chief Goji Sakamoto, who chaired the 
action plan panel, said: "It will take 2 to 5 years for us to 
implement our measures fully. But we have to use severe expressions 
for this year's action plan, with the Lower House election in 
mind." 
 
The 2008 action plan gives priority to measures to narrow the 
economic disparities in society, revitalize agriculture, forestry 
and fisheries and small business, as well as to provide social 
capital improvement in regional areas. 
 
Sakamoto pointed out: "As a result of pushing forward with policy 
measures related to the shape of nation such as constitutional and 
educational reforms, the public misunderstood, taking it that the 
LDP was ignoring average people and local areas." 
 
General Council Chairman Toshihiro Nikai stated that the party would 
stress Fukuda's political identity of making efforts to dispel 
public anxiety this year. 
 
It is difficult to show the differences of the plan from that of the 
main opposition Democratic Party of Japan (DPJ), which has played up 
efforts to give priority to the livelihoods of average people. 
Secretary General Bunmei Ibuki, however, emphasized: "The DPJ's 
 
SIPDIS 
policies are just product catalogs. No one has the products in their 
hands. Since the LDP takes charge of the government, we do not make 
false pledges." 
 
13) Defense Ministry eyes making new air defense system operational 
before year's end allowing it to track ballistic missiles and 
increase response to state-of-the-art fighter jets 
 
NIKKEI (Page 2) (Full) 
Evening, January 12, 2008 
 
TOKYO 00000108  011 OF 015 
 
 
 
The Defense Ministry will introduce a new air defense system against 
suspicious fighters' intrusions into Japan's airspace, possibly by 
the end of the year. The new system equipped with improved detecting 
and tracking functions enables Japan to acquire incoming high-speed 
ballistic missiles. It is also aimed at increasing the efficiency of 
the missile defense (MD) system, now being deployed. Stepping up 
cooperation with regional air defense commands in the country as 
well as with U.S forces in Japan, the ministry will strengthen the 
country's capability to respond to the state-of-the-art fighters, 
now being deployed in China, Russia and other countries. 
 
The system that will become operational is called the Japan 
Aerospace Defense Ground Environment (JADGE) system. The current 
system has been improved since fiscal 2004. A total of some 51 
billion yen will be invested in the system by the end of fiscal 
¶2008. The ministry intends to make the system fully operational in 
fiscal 2009. 
 
A projectile that entered Japan's air defense identification zone 
will be detected by 28 air-defense radar sites and airborne warning 
and control system (AWACS) aircraft. The ASDF Air Defense Command 
(in Fuchu, Tokyo) and four regional air defense commands will 
formulate a strategy after determining if the projectile is a friend 
or foe based on trajectory data and other information. 
 
The system is designed to deal with the MD system with the aim of 
improving the accuracy of tracking ballistic missiles that travel at 
a speed of Mach 7-8. The Defense Ministry is hopeful that 
participation in the JADGE system by satellites, Aegis-equipped 
vessels, and the FPS-5 state-of-the-art radar system will enable the 
country to project a landing spot in a short period of time thereby 
allowing it to intercept an incoming ballistic missile accurately. 
 
Allowing the country to deal with trajectories of many aircraft 
simultaneously, the country's readiness against fourth-generation 
high-performance fighters that are increasing in such countries as 
Russia and China will also be increased. There has been concern that 
in the event a suspicious plane crossing the air defense 
identification zone, teamwork between the regional air defense 
forces might not work smoothly. The new system is expected to 
facilitate their teamwork more easily in carrying out operational 
plans. 
 
14) Gist of new antiterrorism legislation 
 
SANKEI (Page 5) (Full) 
January 12, 2008 
 
Basic rules 
 
Refueling support activities shall not constitute threat of force or 
the exercise of force. Refueling support activities shall be limited 
to Japanese territories and areas free from act of combat and the 
following areas where acts of combat are not expected to occur 
throughout the period Japan will be engaged in support activities: 
 
¶1. On the high seas (Indian Ocean including the Persian Gulf) 
¶2. Territories of other countries (limited to cases where there are 
concurrences of countries concerned regarding Japan's refueling 
support activities) 
 
 
TOKYO 00000108  012 OF 015 
 
 
Definitions 
 
¶1. Antiterrorism maritime interdiction operations: Of the activities 
carried out by foreign military forces, antiterrorism maritime 
inspections mean inspections of ships cruising in the Indian Ocean 
and the subsequent necessary steps with the aim of blocking the 
maritime movement of terrorists and weaponry. 
¶2. Refueling support activities mean SDF activities to provide 
supplies and services (limited to providing fuel and water to 
vessels and bladed aircraft mounted on vessels) to vessels of 
foreign militaries that are engaged in the antiterrorism maritime 
interdiction operations. 
 
Weapons use 
 
SDF personnel ordered to carry out refueling support activities are 
allowed to use weapons in the event there is an appropriate and 
rational reason to use weapons in defending themselves, other SDF 
personnel, or those in their control. 
 
In the event there is a supervisor, an SDF officer must follow his 
order in using weapons. However, this rule does not apply to a case 
in which one's life is in imminent danger and there is no time to 
seek a supervisor's order. 
 
15) Transport ministry eyes legislation to crack down on 
unidentified foreign vessels 
 
NIKKEI (Top Play) (Excerpts) 
January 15, 2008 
 
The Ministry of Land, Infrastructure, and Transport is considering a 
law to crack down on unidentified foreign ships intruding in 
Japanese territorial waters. The new legislation would ban 
suspicious ships from anchoring without a proper reason. The law 
would enable the Japan Coast Guard (JCG) to conduct a boarding 
inspection and issue an order to leave the territorial waters or to 
place such vessels under its custody. The ministry aims to submit a 
bill to the ordinary Diet session to be convened on Jan. 18. The 
move is part of efforts to beef up security by preparing a clear 
legal basis for territorial protection by the JCG. 
 
A nation's sovereign waters are within the 12-mile territorial 
limit. The United Nations Convention on the Law of the Sea 
recognizes the right of innocent passage, a regime of free 
navigation in coastal waters of third states. In view of preventing 
foreign vessels intruding into territorial waters from threatening 
the peace and safety of the coastal countries concerned, the UN 
convention allows coastal countries to take necessary measures. 
 
Russia, China, and South Korea have enacted control laws, but Japan 
has yet to prepare such comprehensive legislation. To deal with 
unidentified foreign ships idling in Japanese territorial waters, 
Japan has applied the Fisheries Law, the Japan Coast Guard Law, and 
the Self-Defense Law. If a fishing boat is found to be engaged in 
fish poaching, the JCG will conduct a boarding inspection on 
suspicion of a violation of the Fisheries Law and will pursue the 
ship if it speeds away. 
 
But in the case of mooring cargo vessels or those not engaged in 
fishing operations, it is difficult to judge whether they are 
conducting illegal operations. In many cases, even if such ships 
 
TOKYO 00000108  013 OF 015 
 
 
refuse an on-board inspection and flee, the JCG can do nothing. 
 
The Japan Coast Guard Law allows patrollers to use weapons against a 
fleeing unidentified ship, based on the judgment that the ship may 
be involved in a vicious crime. But whether weapons are actually 
used hinges on a case-by-case judgment. 
 
Under the envisioned new legislation, foreign vessels would be 
allowed to anchor in Japan's territorial waters only when there are 
appropriate reasons, such as cases of avoiding danger from severe 
weather or an accident, as well as lifesaving. The legislation would 
allow the JCG to carry out an on-board inspection and to issue an 
order to leave Japanese territory. 
 
16) Although China floated idea of joint gas-field development in 
waters near median line close to Japanese territory, no agreement 
reached 
 
SANKEI (Top play) (Excerpts) 
January 14, 2008 
 
Japan and China have differing views over what waters in the East 
China Sea where they could jointly develop gas fields. To resolve 
this issue, the Chinese side during working-level talks held ahead 
of the Japan-China summit meeting late December between Prime 
Minister Yasuo Fukuda and Chinese Premier Wen Jiabao, floated for 
the first time to the Japanese side a plan to jointly develop gas 
fields in the East China Sea, sources revealed yesterday. This 
proposal is taken as indicating a certain level of concession by the 
Chinese side, which until then had insisted that the sea area 
located in between the median line and the Okinawa Trough was in 
dispute. But because China did not agree at all to explore gas 
fields in waters near the Chinese territory close to the median 
line, as called for by Japan, the negotiations eventually ruptured. 
 
On the question of the Japan-China border line in the East China 
Sea, Japan has insisted that the border be the median line that is 
located at the same distance from the coastlines of the two 
countries, but China has claimed that the Okinawa Trough stretching 
to the western side of the Okinawa islands is the border line. The 
two countries began their bureau director-level talks on the joint 
gas-field development in 2004, but the negotiations failed to reach 
accord because both sides stuck to their basic stances about the 
border line. 
 
In the negotiations last November, however, Japan sounded out the 
possibility of jointly exploring gas fields first in some sea areas 
that are part of Japanese territory starting from the median line, 
if China accepted a plan to jointly develop gas fields in the areas 
across the median line. China, which will not agree to use the 
median line as the border line, rejected Japan's proposal. In the 
latest talks, however, China offered a plan for joint gas-field 
development in sea areas near the median line. This move could be 
taken to mean that China, taking advantage of an opportunity of 
Prime Minister Fukuda's visit to China, was willing for the first 
time to show a certain degree of understanding toward Japan's 
position. 
 
According to a government official, however, Japan insisted that the 
matter concerns national sovereignty, and that unless joint 
gas-field development in both the Japanese waters and the Chinese 
waters across the median line is specified in a statement, Japan 
 
TOKYO 00000108  014 OF 015 
 
 
could not accept China's offer. The negotiations intermittently 
continued minutes before the Japan-China summit talks, but both 
sides could not find middle ground. 
 
17) U.S. beef that violated import conditions may have been sold: 
MAFF reveals arrival of shipment containing beef from cattle over 20 
months 
 
NIHON KEIZAI (Page 3) (Excerpts) 
January 13, 2008 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) and the 
Ministry of Health, Labor and Welfare (MHLW) on Jan. 12 revealed 
that U.S. beef violating the import condition that limits beef 
eligible for exports to cattle aged 20 months or younger was shipped 
to Japan and that these products may have been sold. There have been 
shipments of beef violating the import conditions in the past as 
well. However, this is the first case of products violating the 
import condition actually being sold to consumers. MAFF takes the 
position that since the case was due to human error, there is no 
need to totally ban U.S. beef imports. 
 
Smithfield's Pennsylvania plant shipped the product in question. 
About 1.3 tons of beef from cattle aged 21 months was contained in 
its Japan-bound shipments of 21.3 tons of beef and tongue, of which 
17 tons, or 1,264 boxes, were actually shipped to Japan. Importers 
sold about half of the products shipped to Japan to other domestic 
retailers. Their whereabouts are not known. 
 
The error happened because the plant mistakenly input "aged 21 
months or younger" instead of "aged under 21 months" in its computer 
beef control program. The error had continued since November last 
year. The U.S. government's regular inspection in January found the 
programming error. The U.S. side informed Japan of the error on Jan. 
¶12. 
 
MAFF and the MHLW stopped imports of products from the plant in 
question as of the 12th. They also ordered Marudai Food Co. and 
Shinwa-Ox, importers of the products in question, to stop selling 
and recall the products. 
 
The MHLW released a statement saying: "It will take several weeks to 
determine the whereabouts of half of the cartons. As two months have 
passed since the error occurred, there is a possibility that 
consumers have already bought the beef." 
 
However, since specified risk materials (SRM), which are believed to 
pose a relatively large risk of BSE transmission, were not included, 
the MHLW takes the position that it is unlikely that eating the 
products in question would cause any heath problems. 
 
18) Japan loses part of interests in development of oil fields in 
Caspian Sea: Kazakhstan state-run company increases its stock 
holding 
 
NIKKEI (Page 1) (Slightly abridged) 
January 15, 2008 
 
The Kashagan oil field in the Caspian Sea in Kazakhstan is one of 
the greatest oil development projects led by foreign companies. The 
Kazakhstan government on Jan. 14 announced that it reached an 
agreement with the foreign companies that its state-run company will 
 
TOKYO 00000108  015 OF 015 
 
 
increase its stake. As a result, a Japanese company taking part in 
the project will also transfer part of its interests. Foreign 
companies had to give up a majority of the management rights in 
Sakhalin 2, Russia's natural resources development project. They 
have apparently once again been deprived of part of their interests 
in the Kazakhstan project due to the nation's resource-hoarding 
policy. 
 
Kazakhstan Energy and Mineral Resources Minister Mynbayev revealed 
the agreement reached between his nation and foreign companies. 
According to the agreement, KazMunay Gas (KMG), the nation's 
state-run company, will raise the ratio of its stock holding from 
the current 8.33 PERCENT  to 16.81 PERCENT  by purchasing stocks 
from foreign companies taking part in the project. The amount of the 
purchases is 1.78 billion dollars (approximately 190 billion yen). 
Mynbayev revealed that the start of production will be delayed until 
2011 and said that payments would be made after the production 
started. 
 
As a result, KMG's stock holding would become almost equal to four 
foreign companies, such as Ente Nazionale Idrocarburi (ENI), which 
have held 18.52 PERCENT  as top shareholders. Japan's consortium 
consisting of Inpex Corporation and Mitsubishi Corporation, has 
invested in the project. Their share will likely drop to 7.56 
PERCENT . 
 
DONOVAN