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UNCLAS SECTION 01 OF 13 TOKYO 000180 
 
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 01/24/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Ambassador Schieffer attends ceremony at Iikura House for major 
Japan culture event to be launched in Washington  (Yomiuri) 
 
G8 Summit: 
5) Government studying responses to possible terrorist attacks on G8 
Summit at Lake Toya in Hokkaido  (Yomiuri) 
6) Japan as host country taking security measures for G8 seriously 
(Yomiuri) 
 
Davos Conference: 
7) Prime Minister Fukuda in Davos speech will call for priority 
assistance to Africa  (Tokyo Shimbun) 
8) Fukuda at Davos Conference will propose reversal of 
global-warming emissions situation in 10-15 years  (Tokyo Shimbun) 
9) mergency assistance for PKO training in Africa will not use 
Japan's ODA funds  (Sankei) 
 
10) First of two MSDF destroyers sets sail for Indian Ocean to 
resume refueling mission  (Tokyo Shimbun) 
 
11) Democratic Party of Japan (DPJ) President Ozawa coordinating 
schedule for a visit to South Korea next month  (Mainichi) 
 
The economy: 
12) Stock market after dropping three days in a row, finally 
recovers somewhat  (Nikkei) 
13) Prime Minister Fukuda: If global stock markets continue to drop, 
will seek international cooperation to halt the slide  (Nikkei) 
 
Diet agenda: 
14) DPJ lawmaker blasts Upper House Speaker Eda for courtesy meeting 
with visiting U.S. Congressman Mike Honda  (Sankei) 
15) DPJ heading in direction of approving package of supplementary 
budget bills  (Mainichi) 
16) Mid-February seen as timeframe for passage of tax bills by Lower 
House  (Yomiuri) 
17) To check DPJ, Government calls passing budget by end on March 
"greatest measure to help keep the stock market at high level" 
(Nikkei) 
18) -- Heated criticism starts in the Diet on the gasoline tax issue 
 (Asahi) 
19) Diet interpellations see heated exchange on the tax issue 
(Mainichi) 
20) Thirty percent of local DPJ chapters dissatisfied with party's 
stance on gasoline tax  (Nikkei) 
21) LDP-sponsored rally to back maintaining road revenues from 
gasoline tax joined by 19 local DPJ chapters  (Nikkei) 
22) LDP's Koichi Kato predicts that a Lower House election this fall 
would trigger political realignment  (Mainichi) 
23) People's National Party head Watanuki may link up with 
Hiranuma's new party  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
 
TOKYO 00000180  002 OF 013 
 
 
Asahi: 
Debate kicks off in Diet on gasoline tax rate 
 
Mainichi: 
Government eyes system to pay 20 million yen in compensation to 
cerebral palsy babies even without proof of obstetrician negligence 
 
Yomiuri: 
Government to study shooting down hijacked planes heading toward 
Lake Toya Summit in July 
 
Nikkei: 
Government to boost trade insurance for resource development to one 
trillion yen 
 
Sankei: 
Prime minister plans to hold party head talks to select new BOJ 
governor 
 
Tokyo Shimbun: 
Questions about road construction: Unprofitable roads opened 
 
Akahata: 
JCP Secretary General Ichida in question-and-answer session calls 
for change in politics to protect human lives 
 
2) EDITORIALS 
 
Asahi: 
(1) Uncertainty looming large over U.S. economy. 
(2) Japan should review strategy on aid and countering global 
warming to support the future of developing countries. 
 
Mainichi: 
(1) Reallocating road tax revenues for general expenditures is 
rational 
(2) Additional notices on pension records amaze us 
 
Yomiuri: 
(1) Don't allow people's lives to be disturbed by tax reform bill 
(2) Spring wage offensive: Produce results that will lead to 
revitalizing Japanese economy 
 
Nikkei: 
(1) Prime minister should speak on strategy to stabilize market and 
grow economy 
(2) Proceed with wage-hike negotiations from long-term viewpoint 
 
Sankei: 
(1) U.S. urged to study pouring public funds into tumbling stock 
market 
(2) Detailed explanation needed on social security card system 
 
Tokyo Shimbun: 
(1) Special notices on pension records: Social Insurance Agency 
should deal with issue from people's standpoint 
(2) Spring wage-hike negotiations: Correct income disparity by 
hiking wages 
 
Akahata: 
(1) Switch focus of economic policy from major companies to 
households and people. 
 
TOKYO 00000180  003 OF 013 
 
 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Jan. 23 
 
NIKKEI (Page 2) (Full) 
January 24, 2008 
 
07:53 
Met with Deputy Chief Cabinet Secretary Iwaki at Kantei. 
 
09:01 
Attended a special cabinet meeting. 
 
10:01 
Attended an Upper House plenary session. 
 
12:01 
Arrived at Kantei. 
 
13:01 
Attended an Upper House plenary session. 
 
15:40 
Met with Cabinet Office International Peace Cooperation Headquarters 
Secretariat Chief Ozawa at Kantei. 
 
SIPDIS 
 
16:01 
Met with Ambassador to Bahrain Kondo and other ambassadors who 
attended a meeting of ambassadors assigned to African nations. 
Afterwards, met with Japan Center for International Finance Advisor 
Hiroshi Watanabe. 
 
17:13 
Met with Deputy Foreign Minister Kono, MOFA Economic Affairs Bureau 
Director-General Otabe, Environment Ministry Global Environment 
Bureau Director-General Minamikawa and others, joined by Chief 
Cabinet Secretary Machimura. 
 
18:04 
Interview with BBC. Afterwards, met with Deputy Chief Cabinet 
Secretary Futahashi, joined by Machimura. 
 
SIPDIS 
 
19:33 
Arrived at residential quarters in Kantei. 
 
4) The power of Japanese culture 
 
YOMIURI (Page 4) (Full) 
January 24, 2008 
 
A "Japan: Culture and Hyperculture" reception was held by Foreign 
Minister Masahiko Koumura last night at the Foreign Ministry's 
Iikura Guesthouse in Tokyo's Azabudai district. 
 
"Japan!" is an event that will take place in Washington for two 
weeks from Feb. 4. The event is designed to introduce Japanese 
culture, from traditional arts, such as the Kyogen play and Japanese 
drums, to modern subcultures, such as anime and robots, through over 
40 programs. From Japan, over 450 artists will take part in the 
event. 
 
 
TOKYO 00000180  004 OF 013 
 
 
The reception was attended by fashion designer Junko Koshino, U.S. 
Ambassador to Japan Thomas Schieffer, and former Foreign Minister 
Taro Aso, who is known for his love of comic books. Foreign Minister 
Koumura made a speech in which he said: "I am certain that the event 
will serve as a driving force for Japan-U.S. cultural exchanges." In 
response, Ambassador Schieffer said: "Cultural exchanges are 
imperative for fostering friendship between the Japanese and 
American peoples." 
 
The foreign minister afterwards attended a photo shoot with the 
Ambassador, holding a seal-shaped "healing robot" in his arms. Will 
the power of culture be able to strengthen Japan-U.S. relations 
further? 
 
5) GOJ considering shooting down hijacked airplanes 
 
YOMIURI (Top play) (Full) 
January 24, 2008 
 
The government is now studying countermeasures to deal with 
terrorist attacks in anticipation of a situation where a commercial 
aircraft is hijacked and flown toward the venue of the Group of 
Eight (G-8) summit meeting scheduled to be held at Toyako (Lake 
Toya) in Hokkaido on July 7-9. These countermeasures include 
shooting down the aircraft, Defense Ministry sources said yesterday. 
After the Sept. 11, 2001, terrorist attacks on the United States, 
previous G-8 host countries, such as Britain and Germany, took 
highest-level counterterrorism measures, including deploying fighter 
planes and antiaircraft missile batteries around the summit venues. 
Japan will also take all possible measures. 
 
In order to prevent airborne terrorism targeting the Toyako summit, 
government ministries and agencies-including the Land, 
Infrastructure and Transport Ministry, the Defense Ministry, and the 
National Police Agency-have decided to set up a no-fly zone around 
the summit venue, put sky marshals on commercial flights, and 
tighten baggage checks at airports. However, the government has yet 
to decide on how to deal with major terrorist attacks that target 
vital facilities like the 9/11 attacks. 
 
In the 9/11 terrorist attacks, American Airlines Flight 77 was flown 
into the Pentagon. With this event as an example, the Defense 
Ministry and the Self-Defense Forces have been making case studies 
since last fall. Specifically, the Air Self-Defense Force-if and 
when a commercial plane is hijacked-will scramble F-15s from its 
Chitose base in Hokkaido and repeatedly warn the hijacked plane to 
land at a nearby airport. If the plane does not obey and reaches a 
point one minute from the summit venue, then the government could 
order the ASDF to shoot it down. 
 
However, if a commercial airplane is hijacked after its takeoff from 
a domestic airport, it could reach the summit venue in only 30 
minutes. Accordingly, the government has concluded that it has to 
determine procedures in advance for the SDF to take actions in that 
event, or it will be extremely difficult to prevent such airborne 
terrorism. 
 
In order to avoid such a situation, the government needs to work out 
an emergency action plan in advance and adopt it in a cabinet 
meeting. In this plan, the government would regard a major terrorist 
attack using a hijacked plane as a noncontingency emergency under 
the Armed Attack Contingency Security Law. In this case, the SDF 
 
TOKYO 00000180  005 OF 013 
 
 
will be mobilized for public security operations. Furthermore, the 
plan will have to get Diet approval within 20 days. "We're studying 
what we can do under the current law if and when the government 
judged it would be unavoidable to shoot down a hijacked plane," a 
senior official of the Defense Ministry said. 
 
6)Commentary: Japan must work out antiterror plan as G-8 host 
 
YOMIURI (Page3 2) (Abridged) 
January 24, 2008 
 
In November 2001, shortly after the Sept. 11, 2001, terrorist 
attacks on the United States, the government adopted a course of 
action in a cabinet meeting against potential major terrorist 
attacks like hijacking a commercial plane and flying it into a 
targeted building. In this cabinet-endorsed course of action, the 
government says it will take strong countermeasures as needed to 
ensure public security. This was incorporated in the Armed Attack 
Contingency Security Law of 2003. 
 
The law is intended to deal with armed suspicious ships' incursions, 
large-scale terrorist attacks, and other events. Under this law, the 
government will prepare to work out a counteraction plan and step up 
its interdepartmental cooperation involving the National Police 
Agency, the Japan Coast Guard, and the Self-Defense Forces. The law 
requires the government to work out a counteraction plan in advance 
if it recognizes a state of emergency. 
 
This July's G-8 summit in Hokkaido is expected to focus on global 
warming. Even so, the G-8 leaders used to discuss antiterror 
measures in their past summit meetings, and the G-8 summits were 
targeted by terrorists. When Britain hosted the G-8 summit three 
years ago, there were terrorist attacks in London. The country 
hosting the G-8 summit must determine a course of action in advance 
to deter various conceivable terrorist attacks. 
 
7) Prime Minister Fukuda to emphasize Africa in speech at Davos 
 
TOKYO SHIMBUN (Page 3) (Full) 
January 24, 2008 
 
Prime Minister Yasuo Fukuda yesterday firmed up the outline of a 
speech he will deliver at the World Economic Forum, now in session, 
in Davos, Switzerland. In it, Fukuda will emphasize the importance 
of measures to counter climate change, as well as the need for 
international cooperation to deal with the global slide in stock 
prices. The speech's third major theme is development assistance for 
African nations. Fukuda in the speech wishes to show a global 
audience that Japan is tackling this problem. 
 
Reacting to the worldwide fall in stock prices, Fukuda modified the 
initial draft of the speech regarding economic conditions in order 
to emphasize that the Japanese economy is "in very good shape and 
continues to be on an expansion track." The prime minister is 
expected to mention the importance of international cooperation on 
monetary policy. On development assistance for Africa, Fukuda will 
refer to the upcoming Tokyo International Conference on Africa's 
Development (TICAD), which Japan, along with the United Nations, 
will co-host in Tokyo in May, and stress giving priority to Africa's 
development needs. 
 
In the measures he will list to counter climate change, Fukuda will 
 
TOKYO 00000180  006 OF 013 
 
 
call for "peak-out targets," from which greenhouse gas emissions 
will decline. The prime minister will leave Japan tomorrow afternoon 
for Davos and will deliver the speech on Jan. 26. 
 
8) Prime Minister Fukuda to propose at Davos meeting setting targets 
for peak greenhouse gas emissions in 10-15 years, after which 
emissions will decline 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 24, 2008 
 
It was learned yesterday that Prime Minister Yasuo Fukuda in a 
speech he will deliver at the World Economic Forum (so-called Davos 
meeting) will suggest setting "peak targets" for greenhouse gas 
emissions 10-15 years from now. Fukuda has decided not to propose 
setting mid-term numerical targets to be included in a post-Kyoto 
Protocol framework, although he initially planned to propose such 
targets. 
 
The United Nations Climate Change Conference in Bali (COP13) 
discussed including targets for peak emissions in the Bali Roadmap, 
which charts the course after the expiration of the Kyoto Protocol, 
but after much heated discussion, the conference decided not to 
adopt such targets. 
 
The International Panel on Climate Change (IPCC) analyzed in its 
fourth assessment report that whatever measures may be taken, a rise 
in temperature will be unavoidable. As a measure to hold down a 
temperature rise to two degrees C, the IPCC's report points out the 
necessity of bringing greenhouse gas emissions to their peak in a 
10-15 timeframe and halving them by 2050 from 2000 levels. 
 
In part because Japan is the host country of the Group of Eight (G8) 
Hokkaido Toyako Summit in July, Fukuda, by emphasizing the 
importance of setting targets for peak emissions, which were not 
included in the Bali Roadmap, apparently intends to demonstrate his 
leadership to an international audience. 
 
However, Fukuda decided not to declare Japan's own emission 
reduction targets despite international environmental groups' calls 
on Japan to do so. This attitude is likely to cast doubts on the 
host nation's persuasiveness. 
 
9) Japan to train PKO members as part of emergency assistance to 
Africa but not using ODA funds 
 
SANKEI (Page 3) (Excerpts) 
January 24, 2008 
 
The government revealed yesterday the contents of its emergency 
assistance for Africa that it is considering implementing from funds 
in the fiscal 2008 supplementary budget. It will provide funding for 
a PKO training facility in Africa, but the money will not come from 
the official development assistance (ODA) program. In addition to 
assisting Africa nurture trained peacekeepers, the government will 
provide humanitarian aid in the form of food supplies for refugees 
fleeing disputes, as well as for the victims of droughts and floods. 
In particular, the funding provided for PKO training would be the 
first such aid that bypassed the conventional ODA framework, since 
ODA projects linked to military organizations are prohibited. Japan 
has thus decided to take a new step in the direction of building 
international peace. 
 
TOKYO 00000180  007 OF 013 
 
 
 
The package of emergency assistance to Africa totals $264.5 million 
(approximately 29.1 billion yen). Aid for the PKO training facility 
comes to $17 million (approximately 1.9 billion yen. In addition, 
there is a total of $64.5 million (approximately 7.1 billion yen) in 
refugee aid allocated for such disputed areas as Darfur and southern 
Sudan; $45.66 million (approximately 5 billion yen) for Somalia, and 
$43.8 million (approximately 4.8 billion yen) for the Congo. The 
refugee aid will be provided through international organizations, 
and likely to be in the form of food and water supplies, as well as 
health care. 
 
10) MSDF destroyer to set sail today for refueling mission 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 24, 2008 
 
The Murasame, a 4,550-ton destroyer of the Maritime Self-Defense 
Force, will set sail this morning from the MSDF's Yokosuka base in 
Kanagawa Prefecture to resume refueling activities in the Indian 
Ocean under a newly enacted antiterrorism special measures law. 
Defense Minister Shigeru Ishiba and Chief Cabinet Secretary Nobutaka 
Machimura will attend a ceremony at the base to send the MSDF ship 
off. 
 
Prime Minister Yasuo Fukuda will not attend the ceremony. "I have a 
lot of things to do, so I cannot be there," Fukuda told reporters 
yesterday evening. The Murasame is one of the two MSDF ships to be 
sent to the Indian Ocean. The other vessel is the Oumi, a 13,500-ton 
supply ship. The Oumi will set sail tomorrow morning from the MSDF's 
Sasebo base in Nagasaki Prefecture. The two vessels will arrive in 
the Indian Ocean in mid-February to resume the MSDF's refueling 
mission that has been discontinued since the old antiterror law's 
expiry in November last year. 
 
11) Coordination underway on visit by Ozawa to South Korea next 
month 
 
MAINICHI (Page 2) (Full) 
January 24, 2008 
 
Ichiro Ozawa, president of the main opposition Democratic Party of 
Japan (DPJ or Minshuto), yesterday began looking into a plan to 
visit South Korea in late February immediately before the 
presidential inauguration on Feb. 25 of President-elect Lee Myung 
Bak. If realized, Ozawa may meet with Lee before Prime Minister 
Yasuo Fukuda holds talks with him. 
 
Ozawa has clarified his support for local suffrage for permanent 
foreign residents. If a meeting with Lee is realized, Ozawa will 
take up this issue in a bid to point up the difference between his 
party and the government-ruling coalition. He met last December with 
Chinese President Hu Jintao ahead of Fukuda. 
 
12) Nikkei index rebounds, closes, up 256 yen 
 
NIKKEI (Page 1) (Full) 
January 24, 2008 
 
The Tokyo Stock Exchange (TSE) started with almost across-the-board 
rise in share prices and the Nikkei Average rebounded after a 
three-day hiatus. The market reacted favorably to the U.S. Federal 
 
TOKYO 00000180  008 OF 013 
 
 
Reserve Board's surprise rate cut and eased concerns for the time 
being about a worldwide financial crisis. Prime stocks, such as 
electric power, automobile, and bank, were bought back widely. 
During the trading hours, however, share prices notably fluctuated 
widely in reaction to Asian stocks and exchange rates, keeping 
investors alert to the future. The Nikkei Average closed at 
12,829.06, up 256.01 (2.04 PERCENT  up) from the previous day. 
 
13) Prime Minister Fukuda: If stock prices continue to fall, 
international cooperation will be needed; Japan still concerned 
about chain reaction of stock market drops 
 
NIKKEI (Page 3) (Full) 
January 24, 2008 
 
In response to an interview by British Broadcasting Corporation 
(BBC) at his office, Prime Minister Yasuo Fukuda said yesterday: 
 
"If the worldwide fall in stock prices is prolonged, it will 
inevitably have an impact on actual economy. There are no special 
measures that we should take now, but should the trend moves the 
wrong way, cooperation among (various countries) will be necessary 
to deal with the matter." 
 
He also pointed out: "Financial institutions should be pressed to 
post their new losses." 
 
An increase in the percentage of delinquency in U.S. consumer loans 
is another source of concern. Citigroup declared that 5.4 billion 
dollars of consumer loans for the October-December period last year 
were uncollectible. Nomura Securities Chief Strategist Seiichiro 
Iwasawa made this comment: "Given the negative impact on the U.S. 
actual economy, it will take some time to dispel anxieties." 
 
14) Upper House President Eda criticized for meeting with U.S. Rep. 
Honda 
 
SANKEI (Page 5) (Full) 
January 24, 2008 
 
Hideo Watanabe, a House of Councillors member of the Democratic 
Party of Japan (DPJ or Minshuto), criticized Upper House President 
Satsuki Eda in a general meeting yesterday of the DPJ Upper House 
members for meeting on Jan. 8 with U.S. Rep. Mike Honda, who took 
the lead in adopting a resolution criticizing Japan over the wartime 
"comfort women" issue. Watanabe said: "It might be different if he 
were an ordinary congressman, but he is a legislator who has 
challenged our Diet. I cannot accept the thoughtless meeting." 
 
15) Some DPJ members likely to support supplementary budget bill 
 
MAINICHI (Page 5) (Full) 
January 24, 2008 
 
The Democratic Party of Japan (DPJ) is having difficulty dealing 
with bills related to the fiscal 2007 supplementary budget bill, 
including one amending the Local Allocation Tax Law. That is because 
failure to enact related bills before the end of the current fiscal 
year is bound to affect the finances of local governments. 
Furthermore, if they are voted down in the Upper House, the 
government would adopt the set of bills in a second vote in the 
Lower House, following the new antiterror legislation, making this 
 
TOKYO 00000180  009 OF 013 
 
 
practice a custom. Some DPJ members have begun to look into the 
possibility of approving those bills in order to concentrate on a 
battle over the fiscal 2008 budget bill, to which the party is 
giving priority. 
 
The bill amending the Local Allocation Tax is intended to approve 30 
billion yen in local tax grants, which the government distributed 
more than the due amount, because of a mistake in estimating tax 
revenues for fiscal 2007. Kazuhiro Haraguchi, internal affairs 
minister of the DPJ's "Next Cabinet," criticized the government, 
saying, "I will harshly pursue the government for essentially 
window-dressing accounts." 
 
However, if the bill fails to secure Diet approval before the end of 
the current fiscal year, local governments would be asked to return 
the grants. If the DPJ allows things to get to this point, it could 
come under fire as slighting local administration, especially at a 
time when local governments are negatively reacting to the idea of 
abolishing provisional tax rates. 
 
The ruling camp will most likely adopt the bill in a second vote in 
the Lower House, backed by support from heads of local governments. 
As such, the DPJ finds it difficult to submit a censure motion 
against the prime minister, even if the bill is approved again in 
the Lower House. 
 
16) Government, ruling camp plan Lower House passage of tax-related 
bills in mid-February; Possibility of three-month's extension of 
provisional tax rate 
 
YOMIURI (Page 2) (Excerpt) 
January 24, 2008 
 
The government yesterday presented to the House of Representatives a 
package of tax-system-related bills, including the special measures 
tax bill that would maintain the provisional tax rate on gasoline. 
The plan is to have the Lower House pass the bills around 
mid-February and have the Diet pass the package before the deadline 
in late March when the original measures will expire. However, 
within the ruling parties, there is concern that if the Democratic 
Party of Japan (DPJ) drags out deliberations on the bills in the 
House of Councillors, the provisional tax rate will expire, causing 
great confusion. As a result, the idea has been floated of 
submitting a lawmaker-sponsored bill that would extend the 
provisional tax for three months beyond the deadline and have the 
Lower House pass this bill this month. 
 
17) Government, ruling parties pressuring opposition bloc, arguing 
that enacting budget bill in current fiscal year is best way to 
boost stock prices 
 
NIKKEI (Page 2) (Full) 
January 24, 2008 
 
There is growing momentum in the government and ruling parties to 
apply pressure on the opposition camp by using the global stock 
plunges as an excuse for enacting the fiscal 2008 budget bill and 
related bills within the current fiscal year. The opposition bloc is 
reacting strongly, contending that they are shifting the blame onto 
the global stock plunge. 
 
In yesterday's Upper House plenary session, Prime Minister Yasuo 
 
TOKYO 00000180  010 OF 013 
 
 
Fukuda said: "Ensuring an early enactment of the fiscal 2008 budget 
bill and related bills is the best step." This was preceded by DPJ 
member Masako Okawara's critical comment that described a plunge in 
stock prices as "Fukuda selling." An agreement was also reached at 
the ruling bloc's executive meeting yesterday that the enactment of 
the budget bill and related bills before March 31 was the best way 
to boost stock prices. 
 
Meanwhile, Upper House DPJ Diet Affairs Committee Chairman Susumu 
Yanase categorically said: "People are selling stocks from 
disappointment in the Fukuda administration, which lacks any 
effective economic measures." 
 
18) LDP, DPJ kick off battle in Diet on gasoline tax rate to win 
public support 
 
ASAHI (Top Play) (Excerpts) 
January 24, 2008 
 
The government submitted a tax reform bill that includes a measure 
to extend the current provisional high gasoline tax rate to the 
House of Representatives yesterday. Following this, maneuvering 
started in the "gasoline price-cutting Diet," as dubbed by the 
Democratic Party of Japan (DPJ). 
 
Yesterday, 450 members of 44 prefectural assemblies, including 19 
representatives from the DPJ, gathered at the Constitution Memorial 
Hall near the Diet building for a rally calling for maintaining the 
provisional road-related tax rates. Local members of the Liberal 
Democratic Party arranged the rally with the aim of making an appeal 
to the public the importance of keeping the provisional tax rates 
and forming a coalition against the DPJ. 
 
Attention there was focused on House of Councillors members of the 
DPJ, who sat next to senior ruling party members. The DPJ members 
who openly defied their party's policy are Yasuhiro Oe, Hideo 
Watanabe, and Yasuo Yamashita. Oe stated: "If our party cannot sense 
the atmosphere and enthusiasm in this rally, the party may have lost 
its senses. For those of us who live in rural areas, roads are part 
of our lives." This remark came out in response to LDP Secretary 
General Bunmei Ibuki's remark that "I don't want to believe that the 
party will be swayed only by party interests, taken advantage of 
stupid populism. I would like to listen to a sensible policy from 
the DPJ." 
 
In debates on the new antiterrorism bill, future options for Japan's 
international contribution took center stage. But the major point of 
contention in dispute on the tax reform bill is whether priority 
should be given to "gasoline price" or "roads," an issue closely 
linked to people's lives. Given this, public opinion will greatly 
affect the result of the battle. The ruling camp intends to 
spotlight local voices calling for road constructions, while the DPJ 
underscore that it is a party opposing the ruling camp's policy. One 
Lower House member of the LDP who attended the rally confidentially 
said: "This gathering was effective. I believe it will affect the 
DPJ." 
 
The Ministry of Internal Affairs and Communications (MIAC) produced 
a list of local governments' estimated decreased amounts of revenues 
unless the provisional high tax rates are maintained. Based on this 
list, the ruling camp intends to persuade local government heads and 
assembly members to support its policy. Osaka Mayor Kunio Hiramatsu, 
 
TOKYO 00000180  011 OF 013 
 
 
who was just elected with the recommendation of the DPJ, said in a 
press conference yesterday: "If the current tax rates are 
discontinued, a huge amount of money will disappear from the 
municipal government's coffers. In such a case, it will become 
impossible to continue the budget-compilation work." 
 
Meanwhile, the DPJ criticized in its general affairs section's 
meeting yesterday a remark made in a press conference by MIAC 
Administrative Vice Minister Takino raising a question about the 
DPJ's plan to secure fiscal resources to cover shortfalls expected 
from tax cuts. The main opposition party called the lawmaker who 
made the remark a "demagogue out to spoil the DPJ plan." In its Diet 
Affairs Committee meeting, a senior party member made this request: 
"The rally today was a gathering 'disguised' by the ruling camp and 
the bureaucrats. Fake gatherings calling for maintaining the high 
road-related tax rates will be held across the nation. At the same 
time, our party also should hold gatherings or deliver street-corner 
speeches." 
 
19) Diet interpellations: Confrontation over provisional gas tax 
rate; Little interest in consumer policy 
 
MAINICHI (Page 5) (Excerpts) 
January 24, 2008 
 
With the end of a Diet question session yesterday by heads of all 
political parties on Prime Minister Yasuo Fukuda's policy speech 
both in the Lower and Upper Houses, which lasted three days, the war 
of words will shift on Jan. 25 its forum to the Budget Committees of 
both House. Points of confrontation will include whether to abolish 
provisional tax rates, such as one on the gas tax. However, the 
prime minister has failed to show his presence, as he apparently 
replied to questions using texts prepared by bureaucrats. As such, 
deliberations on key issues, including pensions and consumer policy, 
lacked enthusiasm. 
 
One of the points at issue is whether it is necessary to build more 
roads, even by retaining the provisional tax rate. The government 
late last year mapped out a 10-year road construction plan worth 59 
trillion yen over 10 years. However, Japanese Communist Party (JCP) 
Chair Kazuo Shii criticized the plan for constructing unnecessary 
roads. New Komeito member Toshiko Hamayotsu also called for a full 
account of the plan, saying, "The people would suspect that the 
government has taken the view that a road construction budget must 
be compiled. 
 
The prime minister stressed that constructing roads that are helpful 
for the independence of regional areas or settling the problem of 
railroad crossings that rarely open will continue to be necessary. A 
flurry of criticism was made by opposition party members, with 
Kentaro Kudo of the Democratic Party of Japan (DPJ) noting, "The 
10-year plan is like a declaration prohibiting the use of special 
road-construction revenues for other purposes for the next decade." 
 
20) Poll on provisional tax rates: 30 PERCENT  of DPJ chapters 
dissatisfied with party's explanation on alternate financial 
resources 
 
NIKKEI (Page 2) (Excerpts) 
January 24, 2008 
 
The Nikkei conducted on Jan. 21-23 an opinion survey on Democratic 
 
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Party of Japan (DPJ or Minshuto) local organizations to learn their 
views on the continuation of the provisional tax rates as a 
financial resource for road projects and other matters. Although 
there was no opposition to the party's policy of abolishing the 
provisional tax rates, 30 PERCENT  of the respondents expressed 
discontent with the measures to secure financial resources compiled 
by the party leadership with the aim of averting a drop in tax 
revenues for local governments. The survey exposed a difference in 
views between the party leadership and local chapters, with over 50 
PERCENT  calling for policy talks with the ruling camp and a 
one-third pointing to a delay in preparations for the next 
election. 
 
Representatives and secretaries general of the 47 prefectural 
chapters were asked questions in a written form or on the telephone. 
Valid answers came from them all. 
 
Seven prefectures strongly calling for road construction, such as 
Yamagata, Fukushima and Tochigi, withheld their views about the 
party's policy of abolishing the provisional tax rates. A Fukushima 
representative said, "A sudden decline in tax revenues would cause 
confusion." A Miyazaki member commented, "The government should 
transfer more financial resources to local regions." 
 
Local regions are discontent with the party's measures for alternate 
financial resources, though they do not oppose them outright. The 
party leadership is considering submitting to the Diet a bill 
designed to make up for tax revenue shortfalls by abolishing the 
local burden for state projects. Despite that, eight prefectures, 
including Aomori, Ibaraki, and Nagano, answered that the step was 
insufficient, and six prefectures withheld their answers. 
 
Behind their responses is a fact that local governments will lose 
revenues if the DPJ plan fails to clear the Diet. Unless the DPJ can 
clear the two hurdles of forcing the prime minister into dissolving 
the Lower House for a snap general election and realizing regime 
change, turbulence would result in and the party would find itself 
under fire. 
 
To a question on forming a grand coalition with the LDP, 51 PERCENT 
said that they were against it, though the party should respond to a 
call for policy talks. Although no one supported the option, a Gunma 
representative said, "The party should consider it after the next 
Lower House election." 
 
Their decisions are apparently affected by a delay in preparations 
for the election. Thirty prefectures, or 64 PERCENT  of the total, 
said preparations have been made steadily, while 15 prefectures, or 
32 PERCENT , pointed out a delay in preparations. 
 
21) 19 DPJ-affiliated prefectural assemblymen attend road tax 
revenue maintenance rally 
 
NIKKEI (Page 2) (Full) 
January 24, 2008 
 
A rally seeking the maintenance of road-related tax revenues was 
held yesterday at the Kensei Memorial Hall near the Diet building by 
prefectural assemblymen and others. In the session, Upper House 
Democratic Party of Japan member Yasuhiro Oe, who was present as a 
guest along with Liberal Democratic Party Secretary General Bunmei 
Ibuki, made a speech in which he said, "I am terribly sorry for 
 
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causing you trouble," and bowed deeply. This was met with applause, 
with someone shouting, "You should join the LDP." 
 
The rally brought together 444 prefectural assemblymen from 44 
prefectures. Included in them were 19 DPJ-affiliated members from 
eight prefectures, including Wakayama and Fukuoka. Oe, touching on 
signatures by 39 DPJ lawmakers opposing the party's policy to 
abolish the provisional tax rates, praised DPJ Upper House members 
Hideo Watanabe and Yasuo Yamashita who were also present, by 
referring them as the lawmakers not yielding to party pressure. 
 
The government plan will clear the Diet and be enacted if 17 Upper 
House opposition party members support it. According to the 
organizer, DPJ Upper House Rules and Administration Committee 
Chairman Takeo Nishioka had indicated that he would attend the 
rally, but he did not show up. 
 
22) General election this fall, followed by political realignment, 
Koichi Kato predicts 
 
MAINICHI (Page 5) (Full) 
January 24, 2008 
 
Former Liberal Democratic Party (LDP) Secretary General Koichi Kato 
during a speech given at the Midland Mainichi Forum held in Nagoya 
on Jan. 28, hosted by Mainichi Shimbun, predicted that the Lower 
House would be dissolved for a snap election this fall. He then 
pointed to the possibility of political realignment after the 
election, saying: "There might be major changes in Japanese politics 
this fall. I have a feeling that it will be the greatest political 
juncture in decades." 
 
In connection with political realignment, Kato noted: "Such a change 
is not possible in the current single-seat constituency system. I 
believe discussions are going on with the possibility of reinstating 
the multiple-seat constituency system." Specifically, he claimed 
that there is a plan to create 150 three-seat constituencies. 
 
23) PNP leader Watanuki may form coalition with "Hiranuma New 
Party" 
 
SANKEI (Page 5) (Full) 
January 24, 2008 
 
People's New Party (PNP) leader Tamisuke Watanuki yesterday held a 
press conference at the Japan National Press Club. Referring in it 
to his party's response to the political situation after the next 
House of Representatives election, the PNP leader revealed that his 
party would aim to become the third largest force, following the 
ruling Liberal Democratic Party and the largest opposition 
Democratic Party of Japan. He stated: "I think it would be better to 
form a third force by making a group in which lawmakers from both 
ruling and opposition camps can take part. I will do my best in that 
direction." In a question-and-answer session, asked about his view 
on an alliance with a new party, something former MITI Minister 
Takeo Hiranuma has mentioned, Watanuki responded: "I won't rule out 
the possibility." 
 
SCHIEFFER