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UNCLAS SECTION 01 OF 03 TOKYO 000191 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SENV JA
SUBJECT: JAPAN: ECONOMY, ENVIRONMENT, G8 PROMINENT IN PM 
FUKUDA'S DIET SPEECH 
 
REF: TOKYO 141 
 
Summary 
------- 
¶1. (SBU) Prime Minister Yasuo Fukuda launched Japan's 2008 
spring Diet session January 18 with a policy speech focused 
on livelihood and environmental issues.  Laying out five 
policy principles, Fukuda stressed a "people first" agenda, 
including creation of a new Minister for Consumer Affairs and 
renewed efforts to solve the country's pension problems. 
While generally complimenting Fukuda's emphasis on 
environmental issues, major dailies criticized the speech as 
lacking in vision.  End summary. 
 
Putting People First 
-------------------- 
¶2. (SBU) Prime Minister Fukuda put economic and livelihood 
issues front and center in his January 18 policy speech, 
which marked the opening of this year's spring Diet session. 
Looking at how Japan can deal with globalization, growing 
international competition, environmental degradation, an 
aging and graying society, and an austere fiscal situation, 
Fukuda noted Japan's postwar accomplishments and called on 
citizens to carve out a new future.  He defined his cabinet's 
mission as tapping the vitality of the Japanese people to 
overcome the nation's challenges. 
 
¶3. (SBU) PM Fukuda specified five principles to activate 
Japan's latent economic power and to spread the benefits of 
growth throughout society. 
 
A) Shifting to "administrative and financial policies that 
put people first."  Fukuda promised to create a new Minister 
for Consumer Affairs to champion people's priorities rather 
than those of producers and suppliers.  Fukuda also promised 
better budget implementation, reform of independent 
administrative agencies, progress toward achieving a surplus 
in the primary fiscal balance by 2011, and maintence of tax 
revenues earmarked for road construction -- all policies he 
described as aimed toward improving people's daily lives. 
 
B) "Establishing a social security system and ensuring 
safety."  In addition to explaining his government's efforts 
to resolve problems with the nation's pension system, PM 
Fukuda promised new family-friendly work and childcare 
policies, improvements to the healthcare system, and new 
disaster prevention measures. 
 
C) Creating "an economic society with vitality."  The Prime 
Minister outlined three priorities for the Council on 
Economic and Fiscal Policy: 1) acceleration of technological 
innovation; 2) increased internationalization of the economy, 
including early conclusion of the Doha WTO Round, trade 
agreements with Asia-Pacific partners, enhanced transparency, 
achieving a doubling of inward FDI, liberalization of 
aviation markets, and increased competitiveness of Japan's 
financial sector; and 3) measures to spread growth's benefits 
to Japan's outlying regions, as well as to small and 
medium-sized enterprises. 
 
D) Making "Japan a Peace-Fostering Nation."  Citing the 
centrality of the U.S.-Japan security alliance to Japan's 
 
TOKYO 00000191  002 OF 003 
 
 
foreign policy, PM Fukuda stated Japan will resume refueling 
activities in the Indian Ocean and continue reconstruction 
assistance to Afghanistan and Iraq.  As host to this year's 
fourth Tokyo International Conference on African Development 
(TICAD IV) and the G8 Summit, Fukuda named poverty 
eradication and improvements in health and hygiene as 
humanitarian engagements Japan would undertake. 
 
E) "Conversion to a low carbon society."  Global 
environmental issues are "the most serious challenge to 
humankind in the twenty-first century," said PM Fukuda, 
adding that Japan should capitalize on its energy-saving 
technologies to set an international precedent.  Fukuda set 
the following goals: 
 
-- Fulfilling Japan's Kyoto commitment to reduce greenhouse 
gases by six percent and revising Japan's Kyoto Achievement 
Plan in 2008 to include further industry efforts and 
household energy savings; 
 
-- Using the G8 presidency to lead international efforts to 
create a new, effective international policy framework, to 
include all major emitters, "with a view to attaining the 
long-term goal of halving emissions of greenhouse gases by 
2050 in a manner compatible with economic growth"; 
 
-- Establishing a financial mechanism that supports 
developing countries' efforts to cut greenhouse gases, as 
well as measures to counter environmental damage caused by 
climate change, including drought and floods; 
 
-- Formulating an "Environmental Energy Technology Revolution 
Plan" to foster mid- to long-term development of 
revolutionary technologies that would eliminate greenhouse 
gas emissions; and 
 
-- Designating ten model cities willing to adopt innovative 
technologies and policy measures, with the aim of drastically 
reducing greenhouse gas emissions in those areas. 
 
Media Reaction 
-------------- 
¶4. (SBU) Editorial reaction to Fukuda's speech was mixed. 
Fukuda's "people first" consumer focus and emphasis on 
climate issues were well-received, but the speech was 
characterized as lacking leadership and a strong vision by 
major dailies such as the Yomiuri and Mainichi.  Moreover, 
several papers criticized Fukuda for failing to reassure 
people in the face of rising economic anxieties and for 
skirting the tough questions of domestic economic reform that 
are key to raising Japan's productivity and global 
competitiveness. 
 
Comment 
------- 
¶5. (SBU) Fukuda's "people first" message is a sharp contrast 
to the foreign policy issues that dominated the previous Diet 
session.  Polling has consistently shown pocketbook issues as 
Japanese voters' top concern and the new message is a clear 
counter to the themes the opposition Democratic Party of 
Japan has been hammering upon since their victory in July 
2007's Upper House election. 
 
TOKYO 00000191  003 OF 003 
 
 
 
 
SCHIEFFER