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UNCLAS SECTION 01 OF 13 TOKYO 000193 
 
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 01/25/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Yomiuri poll on national attitudes: 93 PERCENT  have "pride in 
our country"; 73 PERCENT  want to "be of use to the country" 
(Yomiuri) 
 
Defense and security affairs: 
5) MSDF destroyer sets sail from Yokosuka for the Indian Ocean to 
resume refueling mission  (Tokyo Shimbun) 
6) Government to require record of ship name for even indirect MSDF 
refueling in the Indian Ocean  (Mainichi) 
7) Foreign Minister Koumura has placed the enacting of a permanent 
overseas dispatch law as next on the political agenda  (Mainichi) 
8) After considerable delay, U.S., Japan agree on return of Kadena 
RAPCON to be carried out in March 2010  (Mainichi) 
9) Government preparing for possible terrorist aircraft attack as 
one of contingencies that might hit G8 Summit at Lake Toya, Hokkaido 
 (Mainichi) 
 
10) View in U.S. government clash over North Korea policy, centering 
on whether to remove DPRK from list of terrorism sponsoring states 
(Sankei) 
 
11) Government considering scrapping the current system of foreign 
registration with more modern one  (Mainichi) 
 
Diet agenda: 
12) DPJ's Naoto Kan wants any DPJ lawmakers who rebel and vote 
approval for the gasoline tax bill to resign their Diet seats 
(Tokyo Shimbun) 
13) DPJ concerned about what to do about the party rebels who joined 
an LDP rally to support maintaining gasoline tax rate  (Mainichi) 
14) As the tax row heats up in the Diet, LDP leaders are 
coordinating a possible three-month extension of the gasoline-tax 
measure to avoid its expiration  (Yomiuri) 
15) With no complete resolution of the pension debacle in sight, 
work on the issue is falling farther behind schedule  (Tokyo 
Shimbun) 
16) Urgent measures being sought to stop falling stock market 
(Asahi) 
17) Government simulation shows that switch to a clean-burning coal 
technology could cut 45 billion tons in carbon dioxide emissions 
world wide  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Justice Ministry to review government's plan to have 3,000 pass bar 
examination annually 
 
Mainichi: 
Government to abolish registration system for foreign nationals 
living in Japan 
 
Yomiuri: 
Poll: Cases of damage to cultural assets by arson, looting, 
 
TOKYO 00000193  002 OF 013 
 
 
graffiti, and other vicious acts hits 45 in past five years 
 
Nikkei: 
FTC to scrap "umpire system" on bid-rigging and antitrust cases 
 
Sankei: 
Social Insurance Agency finds it difficult to track 3 million 
unidentified pension accounts 
 
Tokyo Shimbun: 
Tokyo opposes Minato Ward's decision to promote part-timers 
 
Akahata: 
EU to obligate member countries to attain numerical targets for 
reducing greenhouse gas emissions 
 
2) EDITORIALS 
 
Asahi: 
(1) Managers should give consideration to economic conditions in 
spring wage negotiations 
(2) Guidelines on interrogations: Police should think about 
recording 
 
Mainichi: 
(1) Night cram schools expected to produce positive results 
(2) Police's reflection: Emerge from policy of focusing only on 
confession 
 
Yomiuri: 
(1) MSDF destroyer leaves for Indian Ocean: Consider "next step" for 
resumption of refueling mission 
(2) NHK new system: Priority must be given to recovery of public 
trust 
 
Nikkei: 
(1) Containment of inflation, environmental protection major 
challenges for Chinese economy 
(2) Steel firms don't seriously reflect on illegalities 
 
Sankei: 
(1) Find clue to selecting new BOJ governor at party head talks 
(2) MSDF departure for Indian Ocean: Restore confidence with 
international cooperation 
 
Tokyo Shimbun: 
(1) With GDP growth, China urged to play responsible role for global 
economy 
(2) Toyota ranking second in international market: There are many 
tasks to address 
 
Akahata: 
(1) Permanent legislation for dispatch of SDF overseas illegal to 
enable government to decide on participation in war 
 
3)Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Jan. 24 
 
NIKKEI (Page 2) (Full) 
January 25, 2008 
 
 
TOKYO 00000193  003 OF 013 
 
 
10:17 
Met with Finance Minister Nukaga at Kantei. 
 
11:43 
Met with Chief Cabinet Secretary Machimura and Deputy Chief Cabinet 
Secretary Futahashi. Machimura remained. 
 
SIPDIS 
 
13:57 
Met with House of Representatives member Okiharu Yasuoka. 
Afterwards, met with Deputy Chief Cabinet Secretary Iwaki, MOFA 
Middle Eastern and African Affairs Bureau Director-General Otabe, 
Its International Cooperation Bureau Director-General Bessho and 
others, joined by Deputy Chief Cabinet Secretary Saka and MOF 
International Bureau Director-General Tamaki. 
 
15:59 
Met with Cabinet Intelligence Director Mitani. Afterwards, met with 
House of Representatives members Nariaki Nakayama and Seiken 
Sugiura. 
 
16:45 
Met with Machimura and Prime Ministerial Advisor Yamatani. 
Afterwards, met with MIC Minister Masuda, Headquarters for Regional 
Revitalization Secretariat Chief Yamamoto, and Saka. 
 
17:29 
Attended a ministerial meeting related to the pension issue. 
Afterwards, met with LDP Upper House Caucus Chairman Otsuji. 
 
19:23 
Arrived at residential quarters in Kantei. 
 
4) 93 PERCENT  proud of being Japanese 
 
YOMIURI (Page 1) (Lead paragraph) 
January 25, 2008 
 
An estimated 93 PERCENT  of the Japanese public are proud to be 
Japanese, the Yomiuri Shimbun found from its annual serial polling. 
In addition, a total of 73 PERCENT  want to work on behalf of the 
nation. Both figures topped those in the past surveys and show the 
Japanese public's growing national awareness today, more than 60 
years after the war. The Yomiuri Shimbun started its monthly public 
opinion survey in March 1978. On this occasion, the serial survey 
will explore changes in comparison with the results of past surveys. 
This is the first serial survey, which was conducted Jan. 12-13 on a 
face-to-face basis to probe public mindsets over Japan. 
 
5) MSDF ship sets off for refueling mission; Fuel diversion will be 
hard to stop 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 25, 2008 
 
The Murasame, a destroyer of the Maritime Self-Defense Force, set 
off yesterday from the MSDF's Yokosuka base in Kanagawa Prefecture 
to resume refueling activities in the Indian Ocean, where the MSDF 
will provide fuel to foreign naval vessels. Meanwhile, there are 
challenges in store for the government and ruling parties, including 
how to prevent fuel diversion and ensure civilian control. Another 
challenge is for the governing parties to debate in the Diet 
permanent legislation allowing Japan to send the Self-Defense Forces 
 
TOKYO 00000193  004 OF 013 
 
 
on overseas missions whenever necessary. 
 
The Yokosuka base held a ceremony for the Murasame and its crew. 
Chief Cabinet Secretary Nobutaka Machimura and former Prime Minister 
Shinzo Abe were there to see the destroyer off with families and 
others. Defense Minister Shigeru Ishiba told the departing crew to 
remain attentive to what was noted in Diet deliberations. "I would 
like to ask you all to accomplish your mission perfectly," Ishiba 
added. With this, Ishiba drew the crew's attention to their tasks, 
such as preventing fuel diversion and keeping in touch. 
 
Japan is going to exchange notes with countries receiving MSDF fuel 
in order to prevent fuel diversion. The government proposed 
specifying its request in its exchanges of note with these countries 
to strictly adhere to the intended use of the fuel. However, the 
United States rejected the proposal. 
 
If the planned exchanges of note are equivocal in their wording, the 
MSDF's on-site crew and their commanding officer will have to judge 
whether MSDF-provided fuel has been used for other purposes. If they 
cannot decide, Ishiba is to do so. Ishiba has clarified that he 
would make a "final" judgment. In the future, if fuel diversion is 
brought to light, Ishiba will inevitably have to take 
responsibility. The MSDF's mission crew will be on edge. 
 
In an earlier extraordinary session of the Diet, the government was 
pursued over the MSDF's cover-up of corrections to the amount of 
fuel supplied by an MSDF ship to a foreign naval vessel. This 
problem was attributed to a lack of communication between the 
Defense Ministry's bureaucrats and the Maritime Staff Office's 
uniformed officers. 
 
Meanwhile, the government has asked its advisory panel to discuss 
steps to overhaul the Defense Ministry. The panel plans to propose 
restructuring the Defense Ministry from the bottom up, involving 
some bureaucrats and SDF staff members. In addition, the government 
will also have to reach an immediate conclusion on information 
disclosure, political engagement, and other critical issues relating 
to the SDF's civilian control. 
 
Furthermore, there is another challenge facing the governing 
parties. That is what to do about the MSDF's refueling mission after 
one year. Japan will now resume refueling activities under a new 
antiterrorism special measures law that was enacted in the earlier 
extraordinary session of the Diet. The law, however, is temporary 
legislation with a one-year time limit. Accordingly, it would be 
extremely difficult to extend the law for the MSDF's continued 
refueling activities as long as the Diet remains lopsided, with the 
ruling coalition holding a majority of the seats in its lower 
chamber and the opposition bench dominating its upper chamber. 
 
The government is therefore in a hurry to create a permanent law. 
The LDP and New Komeito will set up a project team in early February 
to kick off full-fledged discussions. The ruling coalition is 
calling on the leading opposition Democratic Party of Japan 
(Minshuto) to join in. 
 
However, the ruling and opposition parties are currently squaring 
off over the issue of keeping the provisional rate of taxation on 
gasoline. Concerning the LDP's initiative to create a permanent law 
for SDF activities overseas, New Komeito is cautious about expanding 
the allowable scope of SDF personnel's use of weapons on overseas 
 
TOKYO 00000193  005 OF 013 
 
 
missions. 
 
Most LDP lawmakers deem it difficult to create a permanent law 
within one year. "It will take considerable time to work out a plan 
of the ruling parties," says one of the LDP's defense policy 
clique. 
 
6) MSDF supply ship required to record names of foreign vessels 
indirectly receiving fuel in order to prevent Japanese oil from 
being used for other purposes 
 
MAINICHI (Page 2) (Full) 
January 25, 2008 
 
Administrative Vice-Defense Minister Kohei Masuda held a press 
briefing yesterday regarding the Maritime Self-Defense Force's 
refueling operation in the Indian Ocean under the new Antiterrorism 
Special Measures Law. In the session, the vice-minister announced a 
set of measures designed to prevent countries receiving MSDF oil 
from using it for purposes other than the original objectives. 
 
In providing fuel, the dispatched supply ship is required to check 
through a field liaison officer such information as the time, 
amount, the name of the vessel to be refueled, and its activities, 
and record them. In refueling a supply ship, the MSDF vessel is also 
required to record the name and activities of a ship that will 
receive Japanese fuel from the supply ship. Masuda indicated that in 
the event a receiving country does not disclose information, "the 
defense minister will make a decision." 
 
7) Foreign minister: Government will aim for enactment of permanent 
SDF dispatch law 
 
MAINICHI (Page 2) (Abridged slightly) 
January 25, 2008 
 
Foreign Minister Masahiko Koumura made a speech at a symposium held 
at a Tokyo hotel yesterday, in which he indicated that (the 
government) would like to study ways to enact a permanent law 
specifying conditions for the dispatch of the Self-Defense Forces on 
overseas missions. In yesterday's meeting of the faction led by 
former LDP Vice-President Taku Yamasaki, Yamasaki also announced a 
plan to establish a ruling party project team on the legislation 
early next month. Momentum is building in the government and ruling 
camp for enacting a permanent law. 
 
In his policy speech on Jan. 18, Prime Minister Yasuo Fukuda 
revealed his intention to study a permanent law in order to carry 
out international peace cooperation activities swiftly and 
effectively. 
 
Taking another step forward, Koumura defined this year in which 
Japan hosts the G8 Lake Toya Summit as the year in which Japan will 
determine that peace-building is its national policy. Koumura added: 
"It is vital for Japan to make better use of manpower, including the 
SDF." 
 
The view is prevalent in the government and ruling bloc that the 
question of a permanent law will become a key policy theme requiring 
talks with the major opposition Democratic Party of Japan (DPJ or 
Minshuto). Koumura's and Yamasaki's statements showed a positive 
stance about studying permanent legislation based on the position of 
 
TOKYO 00000193  006 OF 013 
 
 
the Prime Minister's Office (Kantei). 
 
Whether the ruling bloc can begin discussing the matter depends on 
the New Komeito's response. The party kicked off working-level 
discussions on Jan. 22 on a permanent law. Cautious discussion is 
underway on the condition: (1) a law will be established within the 
constitutional framework, (2) civilian control will be ensured by 
the involvement of the Diet, and (3) the use of weapons will be 
limited. The party is expected to come up with its unified view 
before the end of the month. 
 
8) Return of Kadena RAPCON to be delayed to March 2010 
 
MAINICHI (Page 2) (Full) 
January 25, 2008 
 
The Japan-U.S. Joint Committee met yesterday, in which the two 
governments reached an agreement to complete the return of the 
Kadena Radar Approach Control (RAPCON) -- the air traffic control 
covering the airspace over the main island of Okinawa -- from the 
U.S. military to Japan by march 2010. Although the initial target 
was the end of 2007, it will be postponed substantially due to a 
delay in training of Japanese air traffic controllers. 
 
Kadena RAPCON is the air traffic control toward aircraft flying in 
the airspace with a radius of 90 km from Kadena Air Base and an 
altitude of less than 6 km over the Okinawa mainland. Commercial 
planes landing at and taking off from Naha Airport and Kumejima 
Airport are also subject to it. Many radar troubles and near-misses 
with U.S. military aircraft have occurred in the airspace. 
 
An agreement was reached in 2000 between the foreign ministers of 
the two countries to transfer RAPCON to Japan. When training of 
Japanese air traffic controllers started in late 2004, the two 
countries were in accord to realize it in about three years. 
 
9) Toyako Summit: Defense Minister Ishiba assuming possible 
terrorist attack; Studying measures to deal with plane flying toward 
venue 
 
MAINICHI (Page 28) (Excerpts) 
January 25, 2008 
 
Defense Minister Shigeru Ishiba on Jan. 24 revealed that his 
ministry is studying how to deal with a possible terrorist attack at 
the Lake Toya Summit to be held in July in Hokkaido, such as a 
hijacked commercial plane being flown into the venue. 
 
Regarding the possibility of an SDF aircraft shooting down a 
hijacked plane flown toward the venue ignoring a warning, Ishiba 
said, "It is only natural to consider such a possibility, by 
assuming every possible situation," though he noted, "I cannot 
reveal specifics." 
 
Ishiba made a similar proposal at a meeting of the Lower House 
National Emergency Legislation Committee in 2002. He also said at a 
press conference in November last year, "It is not appropriate for a 
law-abiding country to assume a stance of making an emergency 
evacuation in such an event." 
 
10) Views in U.S. government clash over policy toward North Korea, 
centered on removing DPRK from list of states sponsoring terrorism 
 
TOKYO 00000193  007 OF 013 
 
 
 
SANKEI (Page 6) (Full) 
January 25, 2008 
 
Takashi Arimoto in Washington 
 
With senior U.S. government officials one after the other making 
conflicting remarks on policy toward North Korea, the White House 
and the State Department are being pressed to provide a clear 
explanation. The reason seems to be differences in opinion in the 
U.S. government on finding a breakthrough in the deadlocked 
situation in the Six-Party Talks caused by North Korea's delay in 
reporting its nuclear plans. 
 
White House spokesperson Perino in a press briefing on the 23rd 
denied that a delisting of North Korea from the list of states 
sponsoring terrorism was close at hand, saying, "It is definitely 
not imminent."  It was a respond to a statement made on the 22nd by 
U.S. State Department Anti-Terrorism Coordinator Daley, who had 
said: "North Korea seems to have fulfilled the criteria (for 
delisting)." Perino made the stance clear that a complete report on 
the nuclear programs was the premise for delisting the DPRK. 
 
There is a strong possibility that Daley's statement underscores 
that there exists in the U.S. government a view that some kind of 
steps must be sought to respond to North Korea's demand (for 
delisting) in order to find a breakthrough in the deadlock in the 
negotiations. However, Perino's strong denial may have been made in 
order not to give the impression that the U.S. is prepared to 
compromise as long as North Korea has not carried out its report. 
 
On the other hand, Special Envoy for Human Rights in North Korea 
Lefkowitz at the same time, stating that North Korean human rights 
issues had not been fully taken up in the Six-Party Talks, proposed 
a review of the talks themselves. In response, Secretary Rice 
rebutted him with statements like, "He has no connection with the 
Six-Party Talks." The Lefkowitz statement was removed from the State 
Department's website, and Secretary Rice was unable to hide her 
displeasure at him when she said, "I doubt that the countries 
participating in the talks) know his name, so I don't think there is 
any confusion among participating countries." 
 
However, at the present juncture, it does not look like the issue 
has developed to the level that the special envoy's position is in 
danger. That is because within the U.S. administration there are 
those who are skeptical of the current situation in the Six-Party 
Talks and echo the special envoy's thoughts about the talks being 
promoted almost solely by Secretary Rice and Assistant Secretary 
Hill. 
 
For that reason, if the DPRK's report is further delayed and the 
deadlocked situation drags on, it is likely that views calling for a 
strong stance against North Korea will probably grow even stronger 
in the U.S. government. 
 
11) Government to abolish the alien registration system so as to 
consolidate it into basic resident register 
 
MAINICHI (Top play) (Slightly abridged) 
January 25, 2008 
 
The Ministry of Internal Affairs and Communications (MIC) and the 
 
TOKYO 00000193  008 OF 013 
 
 
Ministry of Justice (MOJ) decided to abolish the alien registration 
system established under the Alien Registration Act and instead 
consolidate the system into a new basic resident register, which 
will be similar to that of the Basic Resident Register applied to 
the Japanese nationals. Both the ministries will compile an outline 
of a new system by the end of March and submit relevant bills to the 
ordinary session of the Diet for next year. 
 
According to MIC and MOJ, foreigners are currently obligated to 
carry at all times alien registration cards issued by each 
municipality, but this alien registration card system will be 
scrapped. Instead, immigration authorities will issue to mid-term- 
or long-term-stay foreigners a "resident status card" on which their 
names, addresses, and photos are shown. As for new immigrants, 
immigration authorities will hand them this card at airports, and 
foreigners who already reside in Japan will receive the card at a 
local immigration office. New immigrants and foreign residents will 
indicate their resident status cards to each municipality office so 
that their status will be entered in a new basic resident register. 
 
Under the current alien registration system, the records of 
foreigners are registered on an individual basis, so it is difficult 
to know whether foreigners are single or have family members. Also, 
foreigners are not obligated to make a report of a change of address 
to each municipality, so it is difficult to confirm whether 
foreigners move out to anywhere else in Japan or abroad. Because of 
these circumstances, in order to deal with the school attendance 
problem involving foreign children of Japanese ancestry, for 
instance, the concerned municipalities have complained that it is 
difficult to inform foreign residents about school attendance even 
if they have school-age children. The government already decided at 
a cabinet meeting to submit a bill intended to review the current 
alien registration system to next year's regular Diet session. 
 
Discussion on a new system of basic resident register is underway so 
that under the new system, municipalities can grasp the state of 
each foreign family by having them report such matters as a change 
of address, a birth of child, a death of a family member, and a 
marriage. Reportedly, under the new system, it is possible to 
prevent cases where registered foreigners will not be covered by 
national health insurance, care insurance, and child allowances. 
 
It is highly likely at present that a new basic resident register 
for foreigners will be created separately from that for the 
Japanese. As for special permanent residents, including South 
Koreans and North Koreans both living in Japan, they will be entered 
in a new basic resident register, but they will not be subject to 
the system of alien registration card. Given this, discussion is 
underway on the question of whether it is necessary to issue some 
kind of card or certificate to them. 
 
12) DPJ's Kan: If Oe votes for gasoline bill, he should resign from 
Upper House 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 25, 2008 
 
Naoto Kan, deputy president of the largest opposition Democratic 
Party of Japan (DPJ or Minshuto), revealed in a press meeting 
yesterday that if the party's House of Councillors member Yasuhiro 
Oe votes for the government-sponsored bill revising the special 
taxation measures law, which is aimed at extending the provisional 
 
TOKYO 00000193  009 OF 013 
 
 
tax on gasoline, he should give up his Upper House seat. 
 
Pointing out that the votes obtained by Oe in the Upper House 
proportional representation segment of the last election was much 
lower than the average of 1.1 million votes won by the DPJ-backed 
candidates, Kan said: "If he intends to take such action, he should 
return his seat to the DPJ." 
 
13) DPJ fretting over treatment of three lawmakers who defied party 
policy of abolishing temporary tax rate 
 
MAINICHI (Page 5) (Excerpts) 
January 25, 2008 
 
The main opposition Democratic Party of Japan (DPJ or Minshuto) 
leadership is perplexed about the participation of three party 
lawmakers in a rally calling for maintaining the temporary 
(gasoline) tax rate for fiscal resources that are exclusively set 
aside for road construction. The move by the three members has 
exposed that the DPJ is not united on the issue. Deputy President 
Naoto Kan expressed unhappiness with their actions in a press 
conference yesterday. The party executives, however, are fretting 
over how to treat them, because hard-line measures may worsen the 
situation. 
 
The three legislators who took part in the rally organized by local 
assembly members on Jan. 23 include Yasuhiro Oe, Hideo Watanabe and 
Yasuo Yamashita. During the rally, Liberal Democratic Party (LDP) 
Secretary General Bunmei Ibuki told Oe: "I don't want to believe 
 
SIPDIS 
that thinking DPJ members pursue only party interests, taking 
advantage of populism." Oe then replied: "I want (the DPJ lawmakers 
who participated in the rally) to convey to the party leadership the 
atmosphere and enthusiasm of the rally." 
 
Some in the DPJ have pointed out the relationship between Oe and LDP 
General Council Chairman Toshihiro Nikai, who also hails from 
Wakayama, Oe's home constituency. Kan, at yesterday's press 
conference, strongly criticized Oe: "If he attended the rally 
because he had been supported by Nikai in the election, his act 
would mean a betrayal of the voters." Watanabe, who was regarded as 
an aide to Ozawa, has recently distanced himself from him, and he 
voted last year for the government-sponsored national referendum 
bill. 
 
All the more so because many DPJ local assembly members favor 
maintaining of the temporary tax rate, if the party tolerates their 
actions, it would give tacit approval to "rebels." Kan, however, 
indicated that the party would forgo for the time being punishing 
the three members, noting, "We're not saying that attending meetings 
is wrong." Since the DPJ does not hold a majority (122 seats) of the 
House of Councillors even though it has formed a parliamentary group 
(119 members) with the People's New Party, even one Upper House 
member is significant. If the party punishes Oe, he may leave the 
parliamentary group. Therefore, the DPJ leadership is concerned 
about the possible ramifications. The PNP has opposed the DPJ's idea 
of abolishing the temporary tax rate. Should some Upper House DPJ 
members vote for the government's bill to maintain the rate or 
abstain from voting, the vote in the Upper House may be close. 
 
14) LDP leadership carrying out coordination on plan to extend 
provisional tax rates by three months 
 
 
TOKYO 00000193  010 OF 013 
 
 
YOMIURI (Page 1) (Full) 
January 25, 2008 
 
The ruling Liberal Democratic Party (LDP) leadership yesterday began 
coordination on a plan to submit to the House of Representatives a 
bill extending the provisional tax rates by three months in a bid to 
avoid the expiration of the temporary tax imposed on gasoline. The 
LDP intends to pass the legislation through the Lower House within 
January and enact it before the end of March. 
 
Amid heightening confrontation between the ruling and opposition 
parties, the ruling coalition is concerned that the temporary tax 
rate will expire on March 31 if it does nothing and that such will 
cause confusion in the daily lives of people. A senior LDP member 
made this comment yesterday: 
 
"An extension of the measures by three months by a bill sponsored by 
lawmakers will give more time for us to deliberate the contents of 
the government-sponsored bill. We will be able to look for common 
ground with the opposition camp." 
 
The LDP is also considering setting up a consultative panel of the 
ruling and opposition camps to discuss the handling of the bill to 
revise the special taxation measures law. 
 
The bill sponsored by lawmakers is aimed to extend the terms of the 
temporary gasoline tax and other preferential taxation measures. If 
the legislation clears the Lower House before the end of January, it 
will be enacted by the two-thirds majority in the Lower House even 
if it is not put to a revote in the Upper House by resorting to 
Article 59 of the Constitution, which allows for a bill to be sent 
back to the Lower House if it has not been voted within 60 days 
after being presented to the upper chamber. The LDP has determined 
that it will submit the legislation to the Lower House immediately 
after the FY 2007 supplementary budget bill clears the lower 
chamber. It intends to seek understanding from the Democratic Party 
of Japan (DPJ or Minshuto) and other opposition parties. If it fails 
to secure their understanding, it plans to take a vote by the ruling 
parties alone. 
 
However, there remains a cautious view in the LDP and its coalition 
partner New Komeito that by taking a forced vote, Diet deliberations 
would be stalled due to the strong reaction of the opposition camp. 
 
15) Complete resolution of pension problem unlikely 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
January 25, 2008 
 
In a meeting of relevant cabinet ministers on the pension 
record-keeping fiasco held yesterday, it was apparent how difficult 
it is for the government to meet its pledge to complete the 
identification process "down to the last person and last yen." The 
government and the ruling camp have so far presented 
countermeasures, but they have not produced satisfactory results. 
The people are becoming more distrustful of the government. 
 
Only 4 PERCENT  of unidentified accounts tracked 
 
To untangle the pension mess, the government and the ruling camp 
have sent special notices in an attempt to identify the legitimate 
holders of some 50 million pension accounts. 
 
TOKYO 00000193  011 OF 013 
 
 
 
However, about 20,000 of the about 480,000 people to whom the Social 
Insurance Agency (SIA) had sent notices last year -- only 4 PERCENT 
-- responded and claimed to be legitimate holders of unidentified 
pension accounts. The reason many recipients did not respond is that 
the notices did not provide a detailed explanation to help people 
recall their past pension premium payments. 
 
The SIA plans to mail second notices to about 1.03 million people to 
whom notices have already been sent to make them confirm whether any 
other past premium payments had been overlooked. But it remains to 
be seen how effective this approach will be. In addition, it will 
cost more than 170 million yen to send second notices, so this 
approach may come under heavy fire as a waste of money. 
 
It has also been found that about 140,000 people responded that 
their pension records do not need to be corrected, probably because 
they cannot remember their detailed work history. 
 
In six months, 1,000 cases screened 
 
Another pillar in resolving the pension mess is the third-party 
committee to confirm pension records set up under the Ministry of 
Internal Affairs and Communications. The panel planned to speedily 
judge, from the standpoint of the people, whether pension benefits 
should be paid to those who have no records to prove they had paid 
pension premiums. But the screening process has been delayed due to 
a lack of manpower. Since the start of the process last July, the 
panel has recognized only 1,004 cases as allowed to receive pension 
benefits. 
 
The SIA have received 37,735 applications for screening, but it has 
completed the screening of only 1,900 cases, just 5 PERCENT . 
 
60,000 cases remained unaccounted for 
 
Of the unidentified 50 million pension accounts, 5.24 million 
records included no names or other details. Of them, the SIA has 
failed to identify the legitimate holders of about 60,000 pension 
accounts. The agency intends to continue its efforts, but a 
resolution of the pension fiasco is not in sight. The government now 
finds it impossible to fulfill its pledge to complete the 
identification process by the end of March. 
 
16) Emergency measures on falling stock prices 
 
ASAHI (Page 4) (Full) 
January 25, 2008 
 
Opposition parties unanimous in call for stimulating consumption 
 
Following falling stock prices and soaring crude oil prices, 
opposition parties are rushing to discuss emergency economic 
measures. They are determined to criticize the Fukuda cabinet as 
having no economic measures during Diet debates, which will move 
into full swing with intensive deliberations on economic and 
financial issues on Jan. 25. All opposition parties are in lock-step 
agreement that consumption should be stimulated with fiscal 
resources secured from reformed special budget accounts and an 
amendment to the tax code. 
 
Azuma Okikishi of the Democratic Party of Japan (DPJ or Minshuto), 
 
TOKYO 00000193  012 OF 013 
 
 
chairman of the DPJ caucus in the Upper House, expressed concern, "I 
am worried that a Heisei depression could occur. Should that occur, 
Japan would sink." The DPJ has already released a measure to deal 
with high crude oil prices. It also intends to demonstrate 
discretionary income-boosting effects of child allowances to be 
included in a budget function change bill, which the DPJ will 
shortly submit as a proposal countering the government's budget 
bill, and the party will push for compensation for farmers' 
household income and abolition of the provisional tax rate imposed 
on the gas tax. 
 
Japanese Communist Party Chair Shii during a press conference on 
Jan. 24 stressed, "The main problem is sluggish personal 
consumption. Measures to directly deal with this issue are needed." 
The Social Democratic Party (SDP) and the People's New Party (PNP) 
are expected to release their proposals on Jan. 25. The SDP will 
call for reinstating the fixed-rate tax break on a 5-billion yen 
scale. The PNP is considering reducing people's share of medical 
services expenses worth 20 trillion yen. It has also drafted a bill 
to directly compensate people for a rise in gasoline prices. They 
sought cooperation both from the ruling and opposition blocs on the 
24th. 
 
LDP parliamentarian league calls for cut in capital gains tax 
 
The Parliamentarian League to Make People Affluent with Asset 
Effects, chaired by former State Minister for Financial Policy 
Yamamoto, yesterday compiled a set of emergency proposals aimed at 
finding a breakthrough in the current economic and financial 
situation, which is increasingly becoming unclear due to sharp 
equity falls, and handed their requests to Chief Cabinet Secretary 
Machimura. 
 
The package calls for tax breaks on capital gains and stock 
dividends until the Nikkei Stock Average rebounds to the 18,000 yen 
level in order to boost personal consumption. It also notes 
expectations that the Bank of Japan (BOJ) will further ease the 
monetary supply. For the revitalization of the economic and 
financial markets, the panel also called for reviewing foreign 
capital investment regulations under the Foreign Exchange Law. 
 
Machimura reportedly responded to Yamamoto, saying, "I want to see 
courageous intra-party discussions calling for even abolition of 
taxation on capital gains." After the meeting, Yamamoto told 
reporters, "The government's external message is weak. It must 
properly deal with falling stock prices, using more than one measure 
to boost stock prices." 
 
17) Highly efficient coal-fired power generation could cut global 
CO2 emissions by 45 billion tons, government estimates 
 
TOKYO SHIMBUN (Page 3) (Full) 
January 25, 2008 
 
The government plans the use of high-efficient coal-fired power 
generation system as a measure to combat climate change. It was 
learned yesterday that realization of this system would cut global 
carbon dioxide (CO2) emissions by 45 billion tons in 2050. As a 
result, CO2 emissions that year would drop to 13 billion tons, half 
the level of 2005, enabling the long-term goal of cutting greenhouse 
gas emissions by 50 PERCENT  by 2050. 
 
 
TOKYO 00000193  013 OF 013 
 
 
The new coal-fired power generation system and solar energy 
generation are incorporated in the Innovative Technical Development 
Program, which the government is now mapping out as a main pillar of 
its measures to combat climate change. Prime Minister Yasuo Fukuda 
in a speech to be delivered at the World Economic Forum Annual 
Meeting on Jan. 26 will announce Japan's technical development 
program and call for cooperation. 
 
Realizing the plan will require long-term research and development 
and huge amounts of expenses. The government will outlay 10 billion 
dollars over 10 years starting in fiscal 2008. According to the 
plan, it will set up an international research center and invite 
engineers from many countries. It will also strengthen ties with 
domestic manufacturers that have state-of-the-art energy-conserving 
technology for development and dissemination of innovative 
technology. 
 
SCHIEFFER