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UNCLAS SECTION 01 OF 11 TOKYO 000152 
 
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 01/22/08 
 
 
Index: 
 
Opinion polls: 
1) Jiji poll: Fukuda Cabinet support rate plummets 5.6 points to 34 
PERCENT ; nonsupport rises to 39.8 PERCENT   (Tokyo Shimbun) 
2) Fukuda non-support rate at 45 PERCENT  in Mainichi poll, far 
outpacing support rate of 33 PERCENT ; Majority frown on Lower House 
overriding of bills rejected by Upper House  (Mainichi) 
3) Mainichi poll finds 32 PERCENT  favoring Diet dissolution after 
budget compiled in spring, while 28 PERCENT  would put it off until 
after the G8 Summit  (Mainichi) 
4) Jiji poll: 38 PERCENT  approve, 34 PERCENT  disapprove revote on 
refueling mission bill  (Tokyo Shimbun) 
 
Korean Peninsula affairs: 
5) Ambassador Schieffer in Los Angeles speech worries that Japan, 
South Korea might go nuclear if North Korea is allowed to possess 
nuclear arms  (Mainichi) 
6) South Korean President-elect Lee plans to make Japan his first 
overseas visit after inauguration  (Nikkei) 
 
Defense and security affairs; 
7) Japan to implement 180 billion yen package of yen loan projects 
in Iraq for needed infrastructure repairs  (Asahi) 
8) Prime Minister Fukuda skips ceremony for departure of MSDF ships 
hearing for Indian Ocean refueling mission  (Tokyo Shimbun) 
 
9) Citing tactical reasons, U.S. refuses to sign note with Japan 
ensuring that MSDF fuel provided in Indian would be used only for 
OEF/MIO  (Tokyo Shimbun) 
10) Futenma relocation site's environmental assessment likely to 
start next month  (Asahi) 
11) Moriya admits to committing perjury in Diet testimony and will 
be so charged  (Tokyo Shimbun) 
 
Africa aid: 
12) Government to provide Africa with PKO training  (Nikkei) 
13) Foreign Ministry blue-ribbon panel calls for expansion of 
assistance to Africa  (Sankei) 
 
14) On again off again trip to Davos Conference by DPJ head Ozawa is 
off again  (Yomiuri) 
 
Economy: 
15) In Diet speech, Economic and Fiscal Policy Minister Ota sounds 
alarm, warning that Japan is no longer a first class economy 
(Mainichi) 
16) Public split on whether the economy is in sound shape or now in 
Cabinet Agency poll  (Mainichi) 
17) Russian banks set to advance into Japan next year  (Mainichi) 
 
18) Japan ranked worst among the advanced industrialized countries 
in greenhouse-gas containment, largely because of reliance still on 
coal-use generators  (Tokyo Shimbun) 
 
Articles: 
 
1) Poll: Cabinet support dips to 34 PERCENT 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
January 19, 2008 
 
 
TOKYO 00000152  002 OF 011 
 
 
The approval rating for Prime Minister Yasuo Fukuda and his cabinet 
was 34.5 PERCENT , according to a public opinion survey conducted 
for the month by Jiji Press on Jan. 11-14. The figure showed a 
substantial drop of 5.6 percentage points from last month. The 
disapproval rating for the Fukuda cabinet was 39.8 PERCENT , up 5.6 
points. The nonsupport rate topped the support rate for the first 
time since the Fukuda cabinet came into office in September last 
year. 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 22.9 PERCENT , up 0.7 points from 
last month. The leading opposition Democratic Party of Japan 
(Minshuto) was at 15.4 PERCENT , down 0.5 points. As seen from these 
figures, the DPJ has yet to become a party that can take the place 
of the LDP-led government. The proportion of those with no 
particular party affiliation was 53.8 PERCENT , down 0.4 points. 
 
The survey was conducted across the nation with a total of 2,000 
persons chosen from among men and women aged 20 and over. The 
retrieval rate was 67.2 PERCENT . 
 
2) Poll: 51 PERCENT  opposed to future overriding; Cabinet support 
levels off at 33 PERCENT 
 
MAINICHI (Top play) (Abridged) 
January 21, 2008 
 
The Mainichi Shimbun conducted a telephone-based nationwide public 
opinion survey on Jan. 19-20. The Diet has now enacted a new 
antiterrorism law. The ruling parties took a second vote in the 
House of Representatives on the law after it was rejected in the 
opposition-dominated House of Councillors. In the survey, 
respondents were asked if they thought it was appropriate. To this 
question, public opinion was split, with 46 PERCENT  answering "yes" 
and 44 PERCENT  saying "no." If the upper chamber votes down other 
bills in the future, the lower chamber could revote on these 
rejected bills to override the upper chamber's decisions. Asked 
about this future overriding, negative answers accounted for 51 
PERCENT , with affirmative answers at 38 PERCENT . As seen from 
these figures, the public was severe about the ruling coalition's 
option of overriding the upper chamber's decisions in the future. 
The approval rating for the Fukuda cabinet was 33 PERCENT , leveling 
off from the last survey taken in December last year. 
 
On Jan. 18, the Diet called an ordinary session. The ruling and 
opposition benches are expected to focus on a special taxation 
measures law in their Diet debate over whether to keep imposing a 
provisional tax on gasoline. The ruling coalition is ready to take a 
second vote on the law in the House of Representatives if it is 
voted down in the House of Councillors. However, the governing 
parties will likely need to obtain public understanding. 
 
The government will now resume the Maritime Self-Defense Force's 
refueling activities in the Indian Ocean under the now-enacted 
antiterror law. In the survey, respondents were asked if they 
supported this government action. In response, 47 PERCENT  answered 
"yes," with 42 PERCENT  said "no." 
 
3) Poll: 32 PERCENT  want Diet dissolution after budget passage, 28 
PERCENT  prefer "after G-8 summit" 
 
MAINICHI (Page 2) (Abridged) 
 
TOKYO 00000152  003 OF 011 
 
 
January 22, 2008 
 
The Mainichi Shimbun conducted a telephone-based nationwide public 
opinion survey on Jan. 19-20, in which respondents were asked when 
they thought the House of Representatives should be dissolved for a 
general election. The most common answer, accounting for 32 PERCENT 
, was that the House of Representatives should be dissolved after 
the budget for next fiscal year clears the Diet. Among other 
answers, 28 PERCENT  said "after this July's G-8 summit in 
Hokkaido," with 13 PERCENT  saying "the House of Representatives 
should be dissolved immediately" and 20 PERCENT  saying "there's no 
need to dissolve it." 
 
Respondents were also asked which political party between the ruling 
Liberal Democratic Party and the leading opposition Democratic Party 
(Minshuto) they would like to see win in the next election for the 
House of Representatives. To this question, the DPJ scored 44 
PERCENT , with the LDP at 35 PERCENT . Other political parties 
accounted for 12 PERCENT . This question was asked in the past six 
surveys from August last year, and the DPJ has been above the LDP. 
 
4) Poll: 38 PERCENT  for new refueling law's enactment in 2nd vote, 
34 PERCENT  against 
 
TOKYO SHIMBUM (Page 2) (Full) 
January 20, 2008 
 
The Diet enacted a new antiterrorism special measures law in a 
recent extraordinary session, with the ruling parties taking a 
second vote on the law in the House of Representatives after it was 
voted down in the opposition-controlled House of Councillors. 
However, public opinion was split over this way of enacting a law, 
according to a Jiji Press public opinion survey released yesterday. 
In the survey, respondents were asked if they supported the ruling 
coalition's overriding in the lower chamber of the upper chamber's 
decision. In response, 38.9 PERCENT  answered "yes," with 34.1 
PERCENT  saying "no." 
 
The survey was conducted across the nation on Jan. 11-14 with a 
total of 2,000 persons chosen from among men and women aged 20 and 
over. The retrieval rate was 67.2 PERCENT . 
 
"Yes" accounted for 60 PERCENT  among those who support the ruling 
Liberal Democratic Party, and 50 PERCENT  among those who support 
New Komeito, the LDP's coalition partner. Among those who support 
the leading opposition Democratic Party of Japan (Minshuto), 
affirmative answers accounted for a little less than 30 PERCENT , 
with negative answers nearing 60 PERCENT . Among those who support 
the Japanese Communist Party and the Social Democratic Party 
(Shaminto), 90 PERCENT  answered "no." 
 
Respondents were also asked about the advisability of taking a 
second vote on other bills in the House of Representatives to 
override the House of Councillors' rejection of these bills. To this 
question, 18.1 PERCENT  answered that there is no problem because it 
is constitutional, with 11.7 PERCENT  saying they are opposed to 
overriding the upper chamber's decision in any case. Those accepting 
it with conditions accounted for more than 50 PERCENT . Among them, 
24.4 PERCENT  were affirmative for only important bills, with 31.1 
PERCENT  affirmative for some cases. 
 
4) A nuclear-armed North Korea could pressure Japan and South Korea 
 
TOKYO 00000152  004 OF 011 
 
 
to go nuclear, says Ambassador Schieffer in speech 
 
MAINICHI (Page 3) (Full) 
January 20, 2008 
 
Jiji, Los Angeles 
 
U.S. Ambassador to Japan Thomas Schieffer gave a speech at a Los 
Angeles hotel on Jan. 18. Regarding security in Northeast Asia in a 
question-and-answer session, Schieffer indicated that the 
development of nuclear weapons by North Korea must be blocked 
through the six-party talks, saying, "The possession of nuclear 
weapons by North Korea could put pressure on Japan and South Korea 
to arm themselves with nuclear weapons." 
 
He also indicated that there is concern in Japan that the United 
States is putting greater importance on China as its partner than on 
Japan. The Ambassador said: "Should Japan lose its trust in the 
U.S., there is the possibility that it may go nuclear. If that were 
to happen, the situation (in Northeast Asia) would become much more 
dangerous. The good relationship between the United States and Japan 
is not something that can be replaced by U.S.-China relations." 
 
5) Coordination underway for South Korean president-elect's visit to 
Japan immediately before trip to U.S. in March or April 
 
NIKKEI (Page 2) (Full) 
January 22, 2008 
 
Mari Yamaguchi, Seoul 
 
South Korean President-elect Lee Myung Bak has decided to choose 
Japan as the country for his first overseas trip after he assumes 
office. His schedule for a visit to Tokyo is now under coordination, 
it was revealed yesterday by several sources familiar with 
Japan-South Korea relations. According to aides to the 
president-elect, it is most likely that Lee will stop in Tokyo 
before he visits the United States in March or April, a plan that is 
now under coordination. He appears to be looking to repair relations 
with Tokyo and Washington, which have been cool because of the 
government of President Roh Moo Hyun. 
 
In a telephone conference with Prime Minister Yasuo Fukuda in late 
last December, Lee proposed resuming annual reciprocal visits 
between the top leaders of the two countries. Fukuda plans to attend 
the presidential inauguration on Feb. 25 and to hold a summit with 
Lee. Fukuda's planed visit to Seoul and Lee's trip to Tokyo will 
become the first reciprocal visits between them. 
 
6) Government will soon implement 180 billion yen in yen loans to 
Iraq, centered on such infrastructure projects as repairing power 
generators 
 
ASAHI (Page 1) (Abridged) 
Eve., January 19, 2008 
 
As assistance for the reconstruction of Iraq, the government has 
decided to implement soon a package of yen loans totaling 182.7 
billion yen that will be centered on building infrastructure, such 
as a thermal power generator and repairing oil refining facilities. 
This would be the first large-scale yen loan implementation toward 
that country since the Iraq war. Based on the amount of assistance 
 
TOKYO 00000152  005 OF 011 
 
 
from specific donor countries, it would be the largest scale next to 
that from the United States. 
 
With the country having stabilized and public security better than 
before, owing to such factors as the surge in U.S. troops, the 
intention of the Japanese government is to link the projects to 
improved civil life. 
 
The project to be implemented are part of a total package of 
approximately $5 billion (approximately 537 billion yen) pledged by 
the Japanese government in 2003. Although the government exchanged 
notes with the Iraq government in 2007 for a total of 10 projects, 
since the administration there was continued to experience 
instability due to such factors as clashes among religious sects, 
approval by the Iraqi side was delayed. Contracts will now be signed 
as early as Jan. 25 between JBIC, as the main implementing body, and 
the Iraqi government. 
 
According to an informed source, eight projects will be targeted for 
loans this time and include the country's largest power generating 
facility in the suburbs of Baghdad, repair assistance for the 
Al-Mussaib Thermal Power Plant Rehabilitation Project, repair of the 
tanker mooring docks off Basra, and construction of bridges and 
roads in the Samawah area where the Self-Defense Forces were 
previously stationed. At the request of the Iraqi government, the 
decision to go forward was made, with consideration given to such 
factors as the public security situation. The work will be entrusted 
to domestic Iraqi firms, as well as companies in countries 
neighboring Iraq, such as Turkey. 
 
To continue the implementation of the yen-loan package, the 
remaining two projects include rehabilitation of a thermal power 
station in the northern part which is under the Kurds. Contracts are 
expected to be signed in several months. The total amount of yen 
loans implemented this year is expected to reach approximately 240 
billion yen (of approximately $2.2 billion). 
 
7) Prime minister and other cabinet ministers may not be able to 
attend MSDF vessel send-off ceremonies due to Lower House budget 
committee sessions 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
January 22, 2008 
 
Prime Minister Yasuo Fukuda, Defense Minister Shigeru Ishiba and 
other relevant members might not able to attend the Jan. 24 and 25 
send-off ceremonies for the Maritime Self-Defense Force vessels that 
will go to the Indian Ocean to resume the refueling operation under 
the new antiterrorism special measures law. The reason is that the 
House of Representatives Budget Committee, the main arena for debate 
between the ruling and opposition camps, is likely to meet starting 
on Jan. 24. 
 
In many cases, the prime minister and relevant cabinet ministers 
attend ceremonies to send off MSDF personnel on overseas missions in 
order to encourage them and demonstrate the government's resolve. 
 
One MSDF vessel is scheduled to depart from the Yokosuka base in 
Kanagawa Prefecture on the morning of Jan. 24 and another one from 
the Sasebo base in Nagasaki Prefecture on the morning of Jan. 25. 
But the Lower House Budget Committee is expected to meet on both 
days. Although the opposition camp has yet to call for the 
 
TOKYO 00000152  006 OF 011 
 
 
attendance of any specific cabinet ministers, chances are that all 
the cabinet ministers, including the prime minister, will have to be 
present at the budget sessions. Given the situation, chances are 
slim for the prime minister and other relevant cabinet minister to 
visit the two bases to attend the send-off ceremonies. 
 
Although the option of holding the send-off ceremonies on Jan. 26 
and 27, when there will be no committee meetings, surfaced, the 
government needed to brush it aside in order to keep its pledge of 
resuming the refueling operation as soon as possible. 
 
9) U.S. refuses Japan's request for mentioning in exchange notes the 
limited use of MSDF-supplied fuel 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 20, 2008 
 
The United States government will not mention in the exchange notes 
the tracking of the use of all fuel provided by the Maritime 
Self-Defense Force (MSDF) in the Indian Ocean, in declining Japan's 
request. A US government official gave this explanation: "The 
verification process will hinder the U.S. strategic operations, and 
an additional burden will be imposed on those engaged in the 
operations. We cannot accept Japan's request at all." This 
information was revealed by several sources familiar with Japan-U.S. 
relations. 
 
The U.S. agreed Japan's plan to specify the MSDF mission in the new 
antiterrorism law as "supplying fuel and water only to naval vessels 
engaged in maritime intercept operations against terrorism." Some 
might criticize that Washington's refusal will make "the limited use 
of supplied fuel" merely nominal. 
 
The MSDF is expected to resume its refueling operation in 
mid-February based on the new antiterrorism special measures law. 
The governments of Japan and the U.S. are preparing to finalize 
exchange notes by the end of this month. 
 
According to informed sources, Japanese and U.S. authorities for 
foreign and defense affairs started coordination last October, when 
Japan submitted the new antiterrorism bill to the Diet. Keeping in 
mind the allegation of diversion of MSDF-supplied oil to the Iraq 
war, Japan requested that the new law specify the purpose of the 
mission. The U.S. initially insisted that Japan should use the same 
wording as that in the notes exchanged on the basis of the former 
antiterrorism law, which included no mention of a ban on the use of 
supplied fuel for other than the specified purpose. 
 
To enable the use of all fuel to be tracked, Japan asked the U.S. 
afterward to insert this expression in the exchange notes: "The 
governments of Japan and the U.S. will carry out necessary 
coordination in order to ensure that the operations will meet the 
purpose of the new law." But the U.S. turned it down, reasoning that 
since the tanks of war ships will never empty, it will be impossible 
to prove that the amount of supplied oil and the amount of consumed 
oil are completely the same. The U.S. side warned that if Japan 
makes no concession, there may be a case in which vessels will not 
receive MSDF refueling service. 
 
10) Futenma environmental assessment may start next month; Nakaima 
willing to give nod with changes to outline 
 
 
TOKYO 00000152  007 OF 011 
 
 
ASAHI (Page 35) (Abridged slightly) 
January 22, 2008 
 
Okinawa Governor Hirokazu Nakaima revealed his plan yesterday to 
convey to the Ministry of Defense the need to rewrite the part 
pertaining to the planned landfill project in the MOD's outline 
specifying an environmental impact assessment for the planned 
relocation of U.S. Futenma Air Station to Nago. The governor also 
indicated that he would endorse the assessment once the outline is 
rewritten. With the government expected to comply with Nakaima's 
request for rewriting the outline by submitting additional data, the 
assessment is likely to start in February, as planned by MOD. 
 
Even so, there are no prospects for the government to reach an 
agreement with Okinawa and Nago regarding their request to move the 
planned construction location further offshore. The government is 
likely to carry out the assessment while keeping the greatest 
contentious point on the backburner. 
 
Nakaima urged the government to clarify the shape of the envisaged 
reclaimed land and the construction plan, contending that what is 
stated in the outline is insufficient to make an appropriate 
decision. He also requested the government make a final decision 
after holding talks with the prefectural government on the contents 
of the project and the survey methods ahead of implementing the 
assessment. 
 
Nakaima, however, is not demanding that the government redo the 
assessment process, such as the official announcement and 
inspection, all over again from the start. Nakaima indicated to the 
press that he would give a nod to the planned assessment once 
Okinawa's requests are answered, saying: "The government might 
finish rewriting the outline in time to start the assessment in 
February." 
 
The government, too, intends to comply with Okinawa's request, with 
a senior official saying, "The governor's view must be respected. If 
the prefectural side needs additional information, we will deal with 
the speedily." The government intends to confirm the implementation 
of the assessment with the Okinawa prefectural government and 
affected municipalities at the Futenma relocation consultative 
meeting, to be held in early February. 
 
MOD has also softened its stance, with its official saying, "We will 
deal with Okinawa more politely, proving it with additional 
information." 
 
11) Former Vice Defense Minister Moriya admits to having given false 
Diet testimony; Prosecutors to bring charges again 
 
TOKYO SHIMBUN (Page 20) (Full) 
January 22, 2008 
 
It was learned that former Administrative Vice Defense Minister 
Takemasa Moriya, 63, now under indictment, made a statement to the 
special investigation squad of the Tokyo Public Prosecutors Office 
admitting to committing perjury in testimony in the two chambers of 
the Diet. The special investigative task force plans to bring on 
Jan. 22 another accusation against Moriya for violation of the Diet 
Testimony Law, as well as for having received the special treatment 
of golf outings from Motonobu Miyazaki, former defense equipment 
trading house Yamada Corp. executive, 69, how has been under arrest. 
 
TOKYO 00000152  008 OF 011 
 
 
 
 
Moriya stated in a House of Representatives Antiterrorism Special 
Committee session last November that he had paid 10,000 yen for a 
green fee every time when he played golf with Miyazaki, but he told 
the prosecutors that he had not paid the money. He also testified in 
a session in November of the House of Councillors Committee on 
Foreign Affairs and Defense: "I have paid from my own purse all the 
expenditures for my daughter's study abroad." 
 
However, Moriya's daughter used about 1.45 million yen sent from 
Miyazaki for her living costs (in the United States). The bribery 
amount Moriya received from Miyazaki is expected to total more than 
10 million yen. 
 
12) Assistance for training PKO personnel: Government to first 
provide funds to Africa 
 
NIKKEI (Page 2) (Full) 
January 19, 2008 
 
The government will launch assistance to various foreign countries 
in their efforts to train peacekeeping operations (PKO) personnel. 
It will help them train and educate PKO personnel, by providing 
funds to PKO training centers in Africa and Asia through an 
international agency. This is part of efforts to make Japan a peace 
cooperation state as Prime Minister Fukuda advocated in his policy 
speech. The government thus wants to offer indirect assistance to 
countries, to which Japan cannot dispatch Self-Defense Forces 
personnel due to the restriction under the five PKO participation 
principles. 
 
As the first step, it will extend finance assistance to five PKO 
centers, training facilities, in Africa, such as Kenya and Egypt. It 
has already earmarked 1.8 billion yen in the supplementary budget 
for fiscal 2007 and will shortly outlay funds through the United 
Nations Development Program (UNDP). It will also look into the 
possibility of financing PKO centers in Asia, such as Thailand and 
Malaysia. 
 
13) ODA experts' panel in interim report calls for increased aid for 
Africa 
 
SANKEI (Page 5) (Full) 
January 22, 2008 
 
The experts' conference on international cooperation, an advisory 
panel to Foreign Minister Masahiko Koumura and chaired by Takushoku 
University President Toshio Watanabe, released its interim report on 
future options for the nation's official development assistance 
(ODA). The report emphasizes the importance of "strategy" and 
"message" in determining ODA projects. The report expresses concern 
about the recent significant reduction in the ODA budget, calling 
for expanding non-reimbursable aid to Africa. 
 
The interim report noted on Japan's aid for Africa: "When many other 
countries and organizations are boosting their ODA disbursements, 
Japan has halved its financial assistance over the past decade." It 
then suggests increasing the number of ODA projects in Africa based 
on grant aid in and after 2008 and establishing a consultative body 
composed of representatives from the government, private firms, and 
NGOs. 
 
TOKYO 00000152  009 OF 011 
 
 
 
On measures to fight global warming, the report proposes that Japan 
should actively provide energy-conservation technology to poor 
countries that find it difficult to take countermeasures due to a 
lack of funds. As priority tasks, the report also lists the 
following: (1) cooperation between the government and the private 
sector, such as pooling citizens with rich experience abroad and 
dispatching them to poor countries; (2) government aid for 
investment and loan for development; and (3) studying offering loans 
on a foreign currency basis to diminish exchange risks from 
developing countries. 
 
14) DPJ's Ozawa will not attend Davos Conference after all 
 
YOMIURI (Page 4) (Full) 
January 22, 2008 
 
The Democratic Party of Japan (DPJ or Minshuto), the largest 
opposition party, is now at odds as party head Ichiro Ozawa gave up 
on his plan to attend the World Economic Forum (Davos Conference). 
The DPJ had carried out coordination, since there were views calling 
for Ozawa's attendance. Ozawa yesterday, however, told Secretary 
General Yukio Hatoyama to attend the international conference in his 
place. 
 
Diet Affairs Committee Chairman Kenji Yamaoka told reporters the 
reason for Ozawa having cancelled his plan: "His physical condition 
seems a bit bad. He may be tired from stumping in Osaka (supporting 
the candidate in the gubernatorial election)." 
 
Regarding Ozawa's flip-flop, a junior lawmaker pointed out: "The 
reality is that nobody in the DPJ can ask Mr. Ozawa about his real 
intentions, as we are afraid of him." Although Hatoyama reportedly 
is enthusiastic about attending the Davos Conference, there is an 
icy view in the party, with one member saying, "What is he going to 
do there? He will only expose his lack of preparations." 
 
15) Economic Minister Ota in speech: Japanese economy can no longer 
be called first-class 
 
MAINICHI (Page 1) (Full) 
January 19, 2008 
 
"The Japanese economy can no longer be called first-class." In her 
speech at the outset of the ordinary Diet session on Jan. 18, State 
Minister in Charge of Economic and Fiscal Policy Hiroko Ota 
unusually expressed a severe comment on the current state of the 
Japanese economy, causing a buzz of excitement in the hall. 
 
As the reason for her view, Ota cited: "The ratio of Japan's revenue 
to the world's total income dropped below 10 PERCENT  in 2006 for 
the first time in 24 years. Gross domestic product (GDP) per capita 
also slipped into 18th place among the Organization for Economic 
Cooperation and Development (OECD) member countries." Japan's ratio 
was 17.9 PERCENT  in 1994. This figure has been reduced by half, 
against the backdrop of slow growth in a deflationary economy and a 
weakening yen. 
 
After the speech, Ota stated: "Now that the world economy is 
undergoing significant changes, it is necessary for Japan to carry 
out reform to reinforce its growth dynamic, based on a hard look at 
what Japan will be like five or ten years from now." By stressing a 
 
TOKYO 00000152  010 OF 011 
 
 
sense of alarm, she seems to have aimed to give momentum to reform. 
 
16) Cabinet Office survey shows polarization among local areas, with 
43 PERCENT  saying their regions have vigor, and 53 PERCENT  saying 
they do not 
 
MAINICHI (Page 3) (Full) 
January 20, 2008 
 
According to the results of a special local revitalization survey, 
made public by the Cabinet Office, 53 PERCENT  of the respondents 
said that their regions lacked vigor, an increase of 8 points from 
the previous survey conducted in June 2005. At the same time, 43 
PERCENT  of the respondents, up 4 points from the previous survey, 
said that their regions had vigor. The results thus pointed to 
polarization in local areas. 
 
The Cabinet Office conducted a face-to-face survey of 3,000 men and 
women over 20 years of age from last November through December. 
Valid answers came from 1,667 individuals. Figures by region have 
yet to be tallied. 
 
Gloomy answers came from over 50 PERCENT  of the respondents, with 
37.9 PERCENT  -- the largest group -- saying that their regions more 
or less lacked vigor, up 8 points from the previous survey, and 15.3 
PERCENT  pointing to a complete lack of vigor. Meanwhile, 12.5 
PERCENT  said their regions had vigor, and 30.7 PERCENT  indicated 
that their regions were somewhat vigorous -- both showing increases 
from the previous poll. 
 
17) Russian banks to enter Japanese market as early as next year: 
More than 10 banks considering possibility 
 
MAINICHI (Page 1) (Full) 
January 21, 2007 
 
It appears likely that Russian banks will for the first time enter 
the Japanese market as early as 2009. Russian Banks Association 
(RBA) President Garegin Tosunyan revealed this during an interview 
with the Mainichi Shimbun. 
 
The economy of Russia, the world's second largest crude-oil 
producer, is rapidly growing due to soaring crude oil prices. 
Russian banks are suffering only relatively minor damage from the 
U.S. subprime loan crisis. Assets held by Russian banks have reached 
close to 100 trillion yen. According to Tosunyan, more than 10 banks 
are considering opening branches in Japan. 
 
He revealed that Bank for Foreign Trade (VTB) and Rosbank, leading 
Russian banks, have already started considering such a possibility, 
noting, "I am sure Russian banks will enter the Japanese market." 
Japan's financial assets are a major attraction for Russian banks. 
Tosunyan also said that they are interested in Japan's advanced 
financial know-how. 
 
He then added that they will open branches in Japan once they obtain 
approval from the Japanese financial authorities and start 
businesses that focus on lending. They are also reportedly 
interested in taking part in money-lending services for individuals 
and the credit card business. The chances are that they might try to 
take a stake in Japanese companies. 
 
 
TOKYO 00000152  011 OF 011 
 
 
Foreign banks are also setting up shop in Russia. However, Tosunyan 
underscored, "We must not increase the number of foreign banks 
operating Russia. If they advance into Russia, the governments of 
those foreign banks should also approve Russian banks operating in 
their countries." 
 
Russia's real growth rate for 2007 is expected to exceed 7 PERCENT . 
According to RBA, the total assets held by the banking industry are 
estimated to be approximately 21 trillion ruble (approximately 95 
trillion yen). The figure is about five times the amount of five 
years ago. 
 
18) Global warming preventive measures: Japan lowest among developed 
countries, dependency on coal blamed 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 20, 2007 
 
The World Bank has assessed progress of the implementation of 
measures to combat global warming taken by various countries and 
compiled the results as of Jan. 19. According the assessment, Japan 
ranked last among industrialized countries. It ranked 61st among the 
top 70 emitters. 
 
The major cause of the poor assessment result is attributable to the 
increased use of coal, which is cheap but emits a great deal of 
carbon dioxide (CO2), since the liberalization of the power 
supplying business in the latter half of the 1990. 
 
Many observers were of the opinion that Japan was on the top level 
in terms of energy efficiency. However, it is losing its edge as 
other countries are beginning to catch up with it. Japan has yet to 
increase the use of renewable energy, such as wind power. Its 
tendency to depend on coal remains unchanged with its coal usage in 
fiscal 2006 marking a 1.2 PERCENT  increase from the previous year. 
The government will likely be urged to drastically review its 
approach to global warming, centering on its system of supplying 
electric power. 
 
The World Bank assessed various countries in terms of (1) the ratio 
of use of fossil fuels to the amount of energy used; (2) the ratio 
of oil and natural gas to the total amount of fossil fuels used; (3) 
energy usage per gross domestic product (GDP); (4) GDP per capita; 
and (5) population. It looked at the assessment results and whether 
there was an increase or decrease in CO2. It mapped out the survey 
results using figures and ranked the surveyed countries. 
 
The analysis of the results found that Japan's CO2 emissions have 
increased more than the level expected from its GDP and growth in 
its population. Among the 70 countries, 56 countries are shifting to 
natural gas and oil, which produce fewer emissions than coal. 
However, the use of coal in Japan has increased. As a result, its 
CO2 emissions have risen by approximately 42 million tons. 
 
Japan's use of energy per GDP is also increasing, while such in 49 
countries, including the U.S., Germany, China and India, has 
decreased. The overall assessment of Japan was lowest among 
industrial countries. It even ranked lower than China and India. 
 
Denmark, Germany, Sweden and Britain occupied the top four spots. 
 
SCHIEFFER