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UNCLAS SECTION 01 OF 14 TOKYO 000214 
 
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 01/28/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Opinion polls: 
4) Mainichi poll finds 54 PERCENT  of public want tougher stance 
toward North Korea  (Mainichi) 
5) 83 PERCENT  of Japanese are worried about the safety of the food 
they eat in Yomiuri poll  (Yomiuri) 
6) Cabinet Office survey: 45 PERCENT  of the public feel uneasy 
about using the Internet for fear of personal information being 
leaked  (Mainichi) 
 
Environmental diplomacy: 
7) Prime Minister Fukuda at Davos Conference calls for infusion of 3 
trillion yen into technological innovation to halt global warming 
(Yomiuri) 
8) Former British Prime Minister Blair tells Fukuda at Davos that 
Japan should take leadership in drive to reduce greenhouse gases 
(Tokyo Shimbun) 
 
Energy and the environment: 
9) Government simulation to be announced next week finds reduction 
of global greenhouse gases possible  (Nikkei) 
10) Energy ministers of Japan, U.S., Europe agree to develop new 
energies  (Nikkei) 
 
Security and defense affairs: 
11) U.S., Japan sign special measures agreement on host-nation 
support  (Asahi) 
12) Japan wants to discuss with ROK President-elect Lee during his 
upcoming visit the possibility of a trilateral Japan-U.S.-South 
Korea security dialogue  (Nikkei) 
13) Japan, Australia, U.S. high-level talks to discuss joint missile 
research  (Nikkei) 
14) Defense Ministry plans to start construction of a new system for 
missile interception of highly accurate cruise missiles  (Yomiuri) 
 
 
15) Whaling issue could spill over into the upcoming G8 summit 
(Tokyo Shimbun) 
 
16) Panel of experts to report proposals on 30th for promoting 
inward investment  (Nikkei) 
 
Diet agenda: 
17) Ruling camp will present a bill extending the gasoline tax for 
two months beyond its end of March expiration date  (Yomiuri) 
18) Democratic Party of Japan (DPJ) will not compromise in its 
opposition to the gasoline tax bill, even a short extension  (Tokyo 
Shimbun) 
19) Ruling and opposition camps to clash today in the Lower House 
Budget Committee  (Tokyo Shimbun) 
20) Fukuda resolved to reduce turmoil in the Diet over bill impasse, 
but the opposition camp is equally resolved to continue to cause 
trouble  (Yomiuri) 
 
Osaka gubernatorial race: 
21) Win by LDP-backed Hashimoto in Osaka governor's race a blow for 
Ozawa's DPJ  (Asahi) 
 
TOKYO 00000214  002 OF 014 
 
 
22) Exit poll in Osaka gubernatorial race shows 59 PERCENT  of 
women, a majority of unaffiliated votes cast ballots for LDP-backed 
Hashimoto  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Tokyo Shimbun: 
Lawyer and TV personality 38-year-old Hashimoto elected Osaka 
governor 
 
Nikkei: 
Nissan Motor, Toyo Engineering to hire large numbers of engineers in 
Asia to complement manpower shortages in Japan 
 
Sankei: 
Prime minister to decide today to submit bridge bill to maintain 
provisional higher tax rates 
 
Akahata: 
Poll: Japan's measures to fight global warming found worst among 
industrialized countries 
 
2) EDITORIALS 
 
Asahi: 
(1) Proposals for creating desirable country (Part 14): Find ways to 
protect equality in medical services 
 
Mainichi: 
(1) Start of spring wage negotiations: Boost consumption by 
increasing wages 
(2) Hashimoto should do best to revitalize battered finances as new 
Osaka governor 
 
Yomiuri: 
(1) New Osaka governor expected to reconstruct finances 
(2) We expect Tourism Agency to come up with effective measures 
 
Nikkei: 
(1) Substantial discussion urged for consumer affairs 
administration 
(2) New Osaka governor must urgently tackle reconstructing finances 
 
Sankei: 
(1) New Osaka governor expected to take lead in rehabilitating 
Kansai area 
(2) Attractive teaching materials necessary for moral education 
 
Tokyo Shimbun: 
(1) 100 PERCENT  reuse of wastepaper not a bad idea, but we need to 
think about the purpose of recycling 
(2) Handball situation: Regain fair stance 
 
Akahata: 
(1) Rewrite report on environment assessment methods for new U.S. 
base relocation site in Okinawa 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Jan. 25 
 
TOKYO 00000214  003 OF 014 
 
 
 
NIKKEI (Page 2) (Full) 
January 26, 2008 
 
07:54 
Met with Deputy Chief Cabinet Secretary Ono at Kantei. 
 
09:01 
Attended a cabinet meeting. 
 
10:00 
Attended a Lower House Budget Committee session. 
 
12:04 
Arrived at Kantei. 
 
13:00 
Attended a Lower House Budget Committee session. 
 
15:19 
Met with Chief Cabinet Secretary Machimura at Kantei. 
 
16:00 
Arrived at residential quarters in Kantei. 
 
18:20 
Left Haneda Airport aboard a government plan to attend the World 
Economic Forum in Davos, Switzerland. 
 
Prime Minister's schedule, Jan. 25 & 26 
 
NIKKEI (Page 2) (Full) 
January 27, 2008 
 
Jan. 25 
Night 
(Local time) 
Arrived at Zurich Airport, Switzerland, by a government plane. 
Stayed at Movenpick Hotel. 
Jan. 26 
Early morning 
Left Zurich by a helicopter. Arrived at Davos and had preliminary 
discussion at Congress Hotel. 
Morning 
Met at Congress Center with President of Senegal Wade, former 
British Prime Minister Blair, U.S. Microsoft Chairman Bill Gates, 
rock bank U2's Bono, World Bank President Zoellich, and Japan 
International Cooperation Agency President Sadako Ogata. Addressed 
an audience at an annual general meeting of the World Economic Forum 
in Davos. 
Noon 
Attended a luncheon hosted by the forum. 
Afternoon 
Responded to interviews with reporters accompanying him at Congress 
Hotel. Met with Blair. Had an interview with CNN TV. Afterwards, met 
with Swiss President Couchepin.. 
Evening 
Left Davos by a helicopter. 
 
Prime Minister's schedule, Jan. 26 & 27 
 
NIKKEI (Page 2) (Full) 
 
TOKYO 00000214  004 OF 014 
 
 
January 28, 2008 
 
Jan. 26 
Night 
(Local time) 
Left Zurich Airport. 
Jan. 27 
(Japan time) 
15:00 
Arrived at Haneda Airport. 
15:31 
Made a return home report at Imperial Palace. 
15:44 
Arrived at residential quarters in Kantei. 
 
4) Poll: 54 PERCENT  see need to heighten pressure on N. Korea 
 
MAINICHI (Page 1) (Full) 
January 27, 2008 
 
The Mainichi Shimbun conducted a telephone-based public opinion 
survey on Jan. 19-20, in which respondents were asked what stance 
they thought the government should take toward North Korea. In 
response, a total of 54 PERCENT  answered that the government should 
step up Japan's pressure on North Korea, with a total of 39 PERCENT 
saying the government should prioritize dialogue with North Korea. 
 
Among men, more than half of those in all age brackets wanted the 
government to heighten pressure. Meanwhile, among those who support 
the Fukuda cabinet, public opinion was split, with 47 PERCENT 
prioritizing dialogue and 46 PERCENT  emphasizing pressure. Among 
those who do not support the Fukuda cabinet, more than 60 PERCENT 
prioritized pressure. 
 
A similar question was asked in a previous survey taken in October 
last year, one month after the Fukuda cabinet came into office. To 
that question, 36 PERCENT  answered that Japan should further 
strengthen its pressure on North Korea, with 30 PERCENT  saying 
Japan should continue the Abe cabinet's pressure-oriented stance and 
29 PERCENT  saying Japan should switch to a dialogue-oriented 
attitude. 
 
In the previous survey, a total of more than 60 PERCENT  answered 
that Japan should toughen its pressure on North Korea. In the survey 
this time, however, the proportion of pressure-oriented answers 
decreased. Instead, there was an increase of 10 PERCENT  in the 
proportion of dialogue-oriented answers. 
 
5) Poll: 83 PERCENT  concerned about food safety 
 
YOMIURI (Page 2) (Abridged) 
January 28, 2008 
 
A total of 83 PERCENT  are concerned about food safety, the Yomiuri 
Shimbun found from its face-to-face nationwide public opinion survey 
conducted Jan. 12-13. A similar question was asked in an earlier 
survey that was taken in September last year when a number of food 
makers were found to have falsified their date marking to prolong 
the shelf life of their products. In that survey, a total of 84 
PERCENT  were concerned about food safety. In the survey this time, 
there was almost no improvement, showing the public's deep-seated 
distrust. 
 
TOKYO 00000214  005 OF 014 
 
 
 
Those concerned about food safety were asked to pick one or more 
reasons. The most common answer, accounting for 71 PERCENT , was 
that there were many cases that falsified food labeling. Among other 
reasons, Japan's increasing food imports accounted for 57 PERCENT , 
with residual agricultural chemicals at 50 PERCENT  and food 
additives also at 50 PERCENT . 
 
6) 45 PERCENT  feeling uneasy about Internet: gov't poll 
 
MAINICHI (Page 2) (Full) 
January 27, 2008 
 
The Cabinet Office yesterday released findings from its public 
opinion survey on Internet security. In the survey, respondents were 
asked if they felt uneasy about using the Internet. To this 
question, 45.4 PERCENT  answered "yes," with 36.3 PERCENT  saying 
"no" and 18.3 PERCENT  saying they "don't know." 
 
The survey was conducted in November last year on a face-to-face 
basis with a total of 5,000 persons chosen from among men and women 
aged 20 and over. Answers were obtained from 3,006 persons. "Yes" 
accounted for 55 PERCENT  among those in their 40s and also topped 
50 PERCENT  among those in their 30s and 50s. However, those in 
higher age brackets do not access the Internet so often. "People in 
these generations might feel uneasy about their children's access to 
dating sites," a government public relations official of the Cabinet 
Office analyzes. 
 
In the survey, respondents were asked to pick one or more concerns. 
To this question, 66.5 PERCENT  cited personal data leakage with 
computer virus infection. Among other answers, phishing scams 
accounted for 52.1 PERCENT , with false or illegal charging at 50.5 
PERCENT . 
 
Respondents were also asked to pick one or more about what they 
wanted police to watch to crack down. To this question, 64.5 PERCENT 
 picked sex crimes victimizing children. Among other answers, 
obscene images accounted for 56.4 PERCENT , with murder and bomb 
threats at 53.3 PERCENT . 
 
7) Fukuda in Davos speech reveals plan to invest 3 trillion yen in 
technical innovation to fight global warming 
 
YOMIURI (Page 1) (Full) 
January 27, 2008 
 
Davos, Switzerland, Makoto Miura 
 
Prime Minister Fukuda delivered a speech at the World Economic Forum 
in Davos, Switzerland, on the morning of Jan. 26, local time. He 
demonstrated his resolve to address the task of forming a post-Kyoto 
framework to combat global warming as chair of the Lake Toya Summit 
(the Group of Eight summit) in Hokkaido in July. Fukuda also 
announced a "Cool Earth" promotion initiative that calls for setting 
nation-specific targets to reduce greenhouse gas emissions. On the 
economic front, he reiterated: "It is important that all countries 
take necessary measures to deal with the chain of global share price 
drops." 
 
Referring to the issue of climate change, which will take center 
stage in the July summit, the prime minister detailed the "Cool 
 
TOKYO 00000214  006 OF 014 
 
 
Earth" initiative, which aims at halving emissions by 2050. He then 
proposed expediting (1) formation of a post-Kyoto regime; (2) 
international environmental cooperation; and (3) innovation. 
Regarding a post-Kyoto regime, Fukuda stressed: "I will address in a 
responsible manner the tasks of creating a framework in which all 
major emitters will participate, as well as of setting emission-cut 
targets that are fair for all countries." He also revealed a plan to 
set mid-term targets for cutting emissions for each participating 
country, remarking: "The targeted years (for reduction goals) should 
be reviewed to ensure fairness." 
 
In reference to international environmental cooperation, Fukuda 
proposed that Japan will provide other countries with its advanced 
energy-conservation technology, saying: "It is necessary for all 
countries to share the goal of improving energy efficiency by 30 
PERCENT  by 2020." To urge developing countries to take part in a 
new international framework, Fukuda said that Japan would disburse 
10 billion dollars, or 1.76 trillion yen, in new financial aid. As 
measures to promote innovation, the prime minister announced that 
Japan will inject funds totaling about 30 billion dollars, or 3.23 
trillion yen, in research and development in the environmental and 
energy areas over the next five years. 
 
Touching on the worsening global economy, Fukuda defined the U.S. 
subprime mortgage crisis as a 21st century crisis and then called 
for cooperation among countries. He said: "The monetary authorities 
of industrialized countries are engaged in quickly analyzing the 
causes for the confusion in the financial markets and working out 
medium- and long-term countermeasures." Upon saying that the impact 
of the crisis on the Japanese economy was limited, the prime 
minister stressed that Japan will make efforts to open up its market 
further. 
 
9) Japan should display leadership in cutting greenhouse gas 
emissions, says Blair to prime minister 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 28, 2008 
 
Prime Minister Yasuo Fukuda attended the Davos Conference, an annual 
meeting of the World Economic Forum. On the sidelines of the 
meeting, he on the afternoon of Jan. 26 (evening of the same day, 
Japan time) met with former British Prime Minister Blair. 
 
Referring to the creation of a new international framework aimed at 
reducing greenhouse gas emissions (post-Kyoto Protocol), Fukuda 
said, "I will do my utmost to have the U.S. and China, major 
emitters, take part in the new framework." 
 
He also noted, "However, the overall framework should not be 
weakened on that account." 
 
Regarding the G-8 summit in July (Lake Toya Summit in Hokkaido), 
Blair said, "The issue is up to the leadership of Japan, the host 
country." He thus asked Fukuda to display leadership to realize a 
framework joined by major emitters, based on the principle of 
tackling environmental issues. 
 
10) Environment Ministry to estimate and announce attainable 
reduction of greenhouse gas emissions possibly next month in 
preparation for talks on post-Kyoto Protocol framework 
 
 
TOKYO 00000214  007 OF 014 
 
 
NIKKEI (Page 3) (Full) 
January 28, 2008 
 
The Ministry of Environment (MOE) intends to make a trial 
calculation of greenhouse gas emission reduction at home during a 
2020-2030 timeframe in preparation for negotiations on a post-Kyoto 
Protocol framework, which will be applied to the years beyond 2013. 
MOE will announce the result during February. For Japan, the most 
urgent task is to chart the course to achieve in 2050 the long-range 
goal of halving the levels of greenhouse gas emissions from the 
current levels. By estimating an attainable reduction amount of 
greenhouse gas emissions during that timeframe as a mid-term goal, 
Japan aims to use that goal as a basis for discussion of setting the 
total reduction amount of greenhouse gas emissions. 
 
By tallying attainable reduction volumes as proposed by Prime 
Minister Yasuo Fukuda at the latest World Economic Forum in Davos, 
Switzerland, MOE will announce the attainable volumes. Tallying will 
be made in a sector-selective way, for instance, on an industrial 
basis like electric power and steel, or on a business basis or at 
home. How far emission volumes can be reduced will be estimated. 
 
The calculation will be made by using the climate change simulation 
model developed by the National Institute for Environmental studies. 
This simulation was also used by the Intergovernmental Panel on 
Climate Change (IPCC). Several scenarios will be set by taking into 
consideration progress on development of energy-saving technology 
and forecasts about corporate business activities. Under each 
scenario, attainable reduction volumes will be computed. 
 
Estimated attainable reduction volumes will be presented to a 
Central Environment Council meeting, which is to be held possibly in 
February. Based on those estimated attainable volumes, the 
government and industrial circles will advance debate and lead the 
result of the debate to set a new reduction goal for Japan to 
declare as its own goal in future negotiations on a post-Kyoto 
Protocol framework. 
 
11) Energy ministers of Japan, U.S., Europe agree to develop new 
energies 
 
NIKKEI (Page 2) (Full) 
Evening, January 26, 2008 
 
Energy ministers of Japan, the U.S. and Europe on Jan. 25 held a 
meeting in Davos in eastern Switzerland. Participants agreed on the 
perception that it is important to develop new energies and 
energy-conserving technologies as measures to combat climate change 
and soaring crude oil prices. They also agreed that each nation ask 
oil producers to increase production, emphasizing problem 
consciousness to them that high crude oil prices will have an 
adverse effect on the global economy. 
 
The meeting brought together Economy, Trade and Industry Minister 
Akira Amari, Secretary of Energy Bodman of the U.S. and European 
Commission (EC) Energy Commissioner Andris Piebalgs. They also 
shared the perception that it is important for China, India, and 
some other countries, large energy users and carbon dioxide (CO2) 
emitters, to take part in a set of countermeasures. In this 
relation, they confirmed a policy of inviting cabinet misters of 
China, India and South Korea to a G-8 energy ministerial meeting to 
be held in Aomori in June and asking them to come up with specific 
 
TOKYO 00000214  008 OF 014 
 
 
measures to combat climate change. 
 
12) Japan, U.S. sign "sympathy budget" - three-year extension of 
special agreement, but review talks will be difficult (Asahi) 
 
ASAHI (Page 4) (Full) 
January 26, 2008 
 
The Japanese and U.S. government have signed a special measures 
agreement extending for three years Japan's host-nation support 
("sympathy budget") that covers the cost of stationing U.S. forces 
in Japan. The pact would have expired at the end of March. Based on 
an agreement reached between Japan and the United States last 
December, the contents generally maintained Japan's burden as it 
was, reaching an annual 140 billion yen. Now, the Japanese side in 
order to bear the weight of U.S. force realignment, which is 
estimated to cost a separate 3 trillion yen, is thinking of putting 
the scalpel to the structure of its burden in comprehensive review 
talks with the U.S. after April. But negotiations with the U.S., 
which is reluctant to make cuts, are likely to face rough going. 
 
In the revision talks this time, the Japanese side sought 
step-by-step ending of the utility costs (25.3 billion yen in fiscal 
2007), but the U.S. objected, citing the increase war costs of the 
Iraq war. The cuts went no further than to shave off a total of 800 
million yen over three years starting in fiscal 2008. 
 
On the other hand, the Japanese side has sought a 9.5 billion yen 
cut in the facilities improvement program, such as housing for U.S. 
forces, which is outside the parameters of the special measures 
agreement. This would bring it to 36.2 billion yen per fiscal year. 
It also proposed a staged-in scrapping of additional pay 
compensations for base workers employed at U.S. facilities 
(currently 10.2 billion per fiscal year). 
 
13) Government plans to build framework for dialogue between Japan, 
U.S. and South Korea 
 
NIKKEI (Page 2) (Abridged slightly) 
January 26, 2008 
 
With South Korea scheduled to install a new administration by Lee 
Myung Bak on Feb. 25, Tokyo will embark on an effort to launch a new 
framework allowing Japan, the United States, and South Korea to 
discuss security and other issues. Tokyo specifically envisages a 
venue for periodic talks among vice-minister- and bureau-chief-level 
officials. The aim is to take the initiative in Northeast Asia 
diplomacy by rebuilding the Japan-U.S.-ROK cooperative system that 
collapsed under the Roh Moo Hyun administration, which has taken a 
conciliatory policy toward North Korea. 
 
Japan pins great hopes on the establishment of a conservative 
administration in South Korea for the first time in 10 years. The 
next South Korean administration also thinks that cooperation with 
Japan and the United States is essential for resolving the North 
Korean nuclear issue and revitalizing the South Korean economy. An 
agreement has been reached between Foreign Minister Masahiko Koumura 
and South Korean National Assembly Vice-Speaker Lee Sang Deuk, who 
visited Japan earlier, on strengthening the trilateral cooperative 
system. They also agreed to resume reciprocal visits by the two 
countries' leaders. 
 
 
TOKYO 00000214  009 OF 014 
 
 
To begin with, bureau-chief-level officials of Japan, the U.S. and 
South Korea often met to coordinate policies toward North Korea and 
other matters. But such meetings have not been held since 2003 due 
to the Roh administration's policy not to irritate North Korea, 
while promoting large-scale support to Pyongyang. 
 
The Bush administration, too, shifted toward a dialogue policy 
course toward North Korea last year, expanding differences in views 
between Japan and the U.S. and South Korea. Japan's presence in the 
six-party talks has been weak. The trilateral cooperation revival 
plan is also being helped by an observation that a hard-line stance 
is returning to the Bush administration over the North's declaration 
of nuclear programs. Renewed unity among the three countries will 
help Tokyo pursue the North on the abduction issue. 
 
A senior Foreign Minister official expressed eagerness for building 
a consultative framework to discuss wide-ranging issues, saying, "We 
would like to handle not only the North Korean nuclear issue but 
also a wide range of issues." 
 
14) Japan, U.S. and Australia to jointly research missile defense 
system, ministerial dialogue also eyed 
 
NIKKEI (Page 2) (Full) 
January 26, 2008 
 
Japan, the United States, and Australia will strengthen joint 
research on a missile defense (MD) system to intercept ballistic 
missies. In addition to the existing bureau-chief-level talks, they 
will establish a venue for vice-minister and cabinet minister 
ministers to closely exchange views. They will also raise the level 
of Australia, which has announced to introduce the MD system in 2014 
based on operational information on the Japan-U.S. MD system. 
 
The MD system is designed to shoot down incoming ballistic missiles 
with Standard Missile-3 (MS-3) missiles from Aegis vessels outside 
of the earth's atmosphere, and any missed ones with ground-based 
Patriot Advanced Capability 3 (PAC-3) missiles. 
 
Japan, the U.S. and Australia reached an agreement on the joint MD 
research during talks among the foreign ministers and defense bureau 
chiefs, held in Tokyo last April. The three countries intend to 
study the MD system, envisaging North Korean new mid-range ballistic 
missiles and Chinese ballistic missiles traveling to Guam and 
mainland Australia. 
 
China and North Korea are highly alarmed at the MD system. 
 
15) Defense Ministry plans intercept net against cruise missile 
attacks, using special-type radar, long-range missile 
 
YOMIURI (Top play) (Excerpt) 
January 27, 2008 
 
The Defense Ministry yesterday decided to start working on a new 
system for intercepting cruise missiles, which are used for their 
pin-point accuracy in attacking major installations. In order to 
increase the capability for early detection, the ministry will 
increase the number of deployed AWACS-equipped aircraft, and it will 
install a new type of high-proficiency radar. In addition, it will 
build a new intercept system centered on the development of a 
long-range surface-to-air missile. The plan is to include the new 
 
TOKYO 00000214  010 OF 014 
 
 
system in the revision of the mid-term defense buildup plan that 
will be revised next fiscal year. The reason for the changes is 
there has been increased analysis that China its capability to 
attack enemy targets with cruise missiles. 
 
16) Government troubled by increasing criticism of research whaling 
with G-8 summit just ahead 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 28, 2008 
 
The government is frustrated with the whaling issue. Amid a flurry 
of protests by environmental groups against Japan's research whaling 
in the Southern Ocean, Japan's research whaling, rather than the 
obstruction of it, is drawing criticism from the international 
community. With the G-8 summit (Lake Toya Summit in Hokkaido) close 
at hand in July, the government is struggling to prevent criticism 
from developing into a diplomatic issue. 
 
Giving a reply in an Upper House plenary session on Jan. 23, Prime 
Minister Fukuda harshly criticized the protest of a U.S. 
environmental group, whose members climbed aboard Japan's research 
whaling vessel. He noted: "Research whaling is a legal activity. It 
is important for us to pursue discussions based on scientific 
grounds without being swayed by emotional confrontation. 
Interference is an impermissible illegal act that could endanger the 
lives of persons involved." The government plans to prevent a 
recurrence of such interference with Chief Cabinet Secretary 
Nobutaka Machimura noting, "We will properly deal with the situation 
so that dangerous acts will not be repeated in the run-up to the G-8 
summit." In the meantime, Machimura also admitted to the difficulty 
of dealing with the whaling issue, saying, "We must bear in mind 
that we are dealing with whales, a unique kind of issue." 
 
In the International Whaling Commission (IWC), the number of members 
in favor of whaling and those against it are at present about equal. 
However, Japan's allies, such as the U.S. and Australia, and major 
European countries are among the countries against whaling. 
 
In particular, among seven Group-of-Eight countries excluding 
Canada, which is not an IWC member, only Japan and Russia support 
whaling. Antiwhaling countries characterize whales as a symbol of 
environmental conservation. If Japan mishandles the matter, it could 
be labeled as a country that is not enthusiastic about the 
environment. It wants to avoid becoming isolated in the 
international community with the G-8 summit close at hand. 
 
For this reason, the government is beginning to show a flexible 
stance. It decided not to catch humpback whales for the next one to 
two years in research whaling in the Southern Ocean. Japan has 
stressed that the measure is in response to the fact that the IWC 
has become dysfunctional as a resource control organization due to 
the emotional confrontation between pro-whaling and antiwhaling 
members. It is, however, clear that it has made that decision in 
response to international criticism. 
 
Many lawmakers in both ruling and opposition parties are in favor of 
protecting and promoting whaling. The government will find it 
difficult to steer the situation concerning whaling with its 
diplomatic consideration likely coming under fire on the domestic 
front. 
 
 
TOKYO 00000214  011 OF 014 
 
 
17) Cabinet Office to convene first meeting of panel of experts on 
Jan. 30 to discuss promotion of foreign investment in Japan 
 
NIKKEI (Page 3) (Full) 
January 27, 2008 
 
The Cabinet Office will hold a first meeting of an advisory council 
consisting of experts on the tax system and regulatory affairs on 
Jan. 30 as part of the effort to promote foreign investment in 
Japan. This plan was revealed by State Minister in Charge of 
Economic and Fiscal Policy Hiroko Ota at a press briefing in Sapporo 
City after a local session of the Council on Economic and Fiscal 
Policy (CEFP). 
 
The ratio of foreign direct investment in Japan to gross domestic 
product (GDP) is 3 PERCENT , far lower than Britain's 44 PERCENT 
and the United States' 13 PERCENT . The government aims to raise 
this figure to 5 PERCENT  by 2010. 
 
The advisory council will be chaired by Haruo Shimada, president of 
Chiba University of Commerce. The council will send a delegation to 
European and other countries to see what has prevented foreigners 
from investing in Japan. The council will form a report. Based on 
the report, the Cabinet Office will include specific measures in 
"big-boned" policy for this year. 
 
The local session of the CEFP was joined by the minister in charge 
of economic and fiscal policy and CEFP member Naohiro Yashiro. They 
exchanged views with corporate managers in Hokkaido about how to 
revitalize the economy and attract companies. 
 
18) Ruling parties to submit today to Diet bill extending gasoline 
tax rate by two months 
 
YOMIURI (Page 1) (Excerpts) 
January 28, 2008 
 
The ruling parties decided yesterday to submit to the Diet a bill to 
extend by two months the provisional tax rate imposed on gasoline, 
which is set to expire on March 31. The legislation is sponsored by 
lawmakers from the ruling coalition. The ruling camp plans to 
present it possibly today to the House of Representatives in order 
to get it passed by the Lower House before the end of January. With 
this move, it is highly like that gasoline prices will remain at 
current levels after April 1. 
 
Liberal Democratic Party (LDP) Secretary General Bunmei Ibuki told a 
meeting in Kiyoto on the issue: 
 
"If the Democratic Party of Japan (DPJ or Minshuto) refuses to pass 
(a bill revising the Special Taxation Measures Law) by March 31, 
some measures should be taken before the end of January." 
 
The lawmaker-initiated bill includes measures to extend by two 
months the deadline for the provisional rate and for preferential 
tariffs, among other items. The ruling camp intends to ask the DPJ 
and other opposition parties to support the bill, but if it fails to 
get support from the opposition bloc, it may press ahead with a 
vote. 
 
19) DPJ reacts negatively to LDP's move to introduce even stopgap 
bill in connection with provisional gasoline tax rate with DPJ 
 
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secretary general saying, "We'll not compromise" 
 
SIPDIS 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 28, 2008 
 
At a meeting yesterday of Kumagaya City, Saitama Prefecture, the 
major opposition Democratic Party of Japan's (DPJ) Secretary General 
Yukio Hatoyama revealed that his party will strongly oppose a 
stopgap bill intended to keep in place the provisional gasoline tax 
rate, by arguing, "We have no intention of compromising when it 
comes to the public's livelihood." DPJ Policy Research Council 
Chairman Naoyuki Naoshima, as well, noted on an NHK TV program 
yesterday: "It's outrageous. If that happens, it would only lead us 
to boycott every discussion on the budget bill. We definitely can't 
accept it." 
 
The Japanese Communist Party's Policy Committee Chairman Akira Koike 
and the Social Democratic Party's (SDP) Policy Research Council 
Chairperson Tomoko Abe also criticized (a stopgap bill), arguing 
that it would be "outrageous and the same as forcing a vote at the 
beginning of (debate)." 
 
20) Tug of war to start today between ruling and opposition parties 
at Lower House budget panel 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 28, 2008 
 
In the Diet, a question-and-answer session for the fiscal 2007 
supplementary budget bill will start in the Lower House Budget 
Committee with Prime Minister Fukuda and all cabinet members in 
attendance. The major opposition Democratic Party of Japan (DPJ) 
will send Deputy President Naoto Kan as the questioner. A full 
showdown between the ruling and opposition parties will begin over 
such problems as whether to maintain the provisional gasoline tax 
rate. 
 
Kan will point out that other key policy measures for education and 
medical services have no dedicated revenue sources; it is only 
highway expenditures that have such a revenue source. He will then 
seek to scrap the provisional rate and incorporate the special 
revenue sources for road construction into general revenues. 
 
The supplementary budget bill will clear the Lower House on Jan. 29, 
and debate on the bill in the Upper House Budget Committee will 
begin on Jan. 30. 
 
21) Prime Minister Fukuda decides to submit bill extending 
provisional tax rates; Opposition's backlash inevitable 
 
YOMIURI (Page 2) (Slightly abridged) 
January 28, 2008 
 
The ruling parties have decided to a bill sponsored by lawmakers to 
extend by two months the deadlines of the provisional tax rates, 
including the gasoline tax rate, which will expire on March 31. The 
decision is the expression of Prime Minister Yasuo Fukuda's 
determination to avoid tax confusion (if the tax expires and is 
later reinstated). However, since the opposition camp is bound to 
react strongly against the ruling bloc, it is highly likely that the 
Diet itself will be thrown into turmoil. 
 
 
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The government and ruling camp aim to enact before the end of March 
a bill revising the Special Tax Measures Law, including provisions 
to maintain the provisional tax rates. The main opposition 
Democratic Party of Japan (DPJ or Minshuto) and other opposition 
parties have indicated their intention to drag out deliberations on 
the legislation. 
 
The ruling coalition initially planned to enact the revision bill 
before the end of March by resorting to Article 59 of the 
Constitution after having it passed by the House of Representatives 
before the end of January. If it adopted this method, there was the 
possibility that it would be criticized by the public for having 
rammed the bill through the Lower House. The ruling camp plans to 
explain that the purpose of the two-month extension bill is to avoid 
confusion at the end of current fiscal year and to secure enough 
time for deliberations. 
 
Fukuda has told his aides that any adverse impact on the daily lives 
of people should be avoided at all cost. This view reportedly is now 
gaining ground in the ruling coalition. Appearing on a TV Asahi talk 
show yesterday, New Komeito Policy Research Council Chairman Tetsuo 
Saito said: "I understand that there is such a view in the LDP." 
 
Appearing on an NHK talk show yesterday, DPJ Policy Research 
Committee Chairman Masayuki Naoshima, however, stressed: "I 
absolutely cannot accept the idea." Asked by reporters about what 
action his party would take if the ruling camp pressed ahead with a 
vote on the bill, Naoshima indicated that his party would not 
respond to deliberations on the bill on fiscal 2008. He responded: 
"Normal debate won't be conducted. Deliberations on the budget bill 
in the Lower House won't be held." 
 
22) Osaka gubernatorial race deals blow to DPJ, also giving weak 
sense of victory to ruling camp 
 
MAINICHI (Page 2) (Excerpts) 
January 28, 2008 
 
Toru Hashimoto's victory in yesterday's Osaka gubernatorial election 
has dealt a serious blow to the major opposition Democratic Party of 
Japan (DPJ or Minshuto), which took an all-party approach. The 
outcome is likely to force the DPJ to review its strategy for the 
next House of Representatives election. Hashimoto's victory has also 
brought about only a weak sense of victory to the ruling coalition, 
stopping short of giving momentum to the divided Diet in which the 
ruling coalition parties have a majority in the House of 
Representatives and the opposition DPJ controls the House of 
Councillors. 
 
Looking back at the Osaka race, a senior DPJ member pointed out the 
need to give serious thought to urban areas. Defining the Osaka race 
as a prelude to the next Lower House election, the DPJ had envisaged 
another victory following the Osaka mayoral race last November. 
 
The DPJ lost urban areas in the previous 2005 Lower House election. 
As seen in DPJ President Ichiro Ozawa's display of his determination 
to win both rural and urban areas in the next Lower House election, 
the Osaka race was a test case for the party's urban strategy. 
 
After the official campaign kicked off, Ozawa stumped for the party 
candidate twice in Osaka. On Jan. 11, he even skipped a Diet vote on 
new antiterrorism legislation in order to canvass Osaka downtown 
 
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shopping streets to make an appeal to unaffiliated voters along with 
New Party Japan Representative Yasuo Tanaka. Deputy President Naoto 
Kan and Secretary General Yukio Hatoyama also stumped for the DPJ 
candidate twice and five times, respectively. The party leadership 
ordered all DPJ lawmakers to stump for its candidate at least once. 
 
Hatoyama indicated to reporters last night: "(Ozawa's abstention 
from the Diet vote) might be one reason for the party's defeat in 
the Osaka race." The DPJ's decision to back Sadatoshi Kumagai for 
the Osaka race may raise questions. Of the 300 single-seat 
constituencies, the DPJ has yet to determine its candidates for 64 
districts for the next Lower House election. Ozawa said that the 
party would field only winning candidates, alluding to the 
possibility of replacing candidates the party has already endorsed. 
The outcome of the Osaka race might affect the DPJ's final decision 
on its candidates for the Lower House race. 
 
Meanwhile, the ruling camp has been cautious, as seen in LDP 
Secretary General Bunmei Ibuki's comment: "No matter how the Osaka 
 
SIPDIS 
race turns out, it will not be linked to a national election." In 
view of Hashimoto's unique personality, the outcome is unlikely to 
have a direct impact on the provisional tax rate issue and the stock 
plunge that are likely to force the ruling coalition to adhere 
firmly to its defensive stand. 
 
23) 59 PERCENT  of women vote for Hashimoto in Osaka race 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
January 28, 2008 
 
Tohru Hashimoto, a lawyer and TV personality, won yesterday's Osaka 
gubernatorial election for the first time with votes from 59.5 
PERCENT  of women, according to an exit poll conducted by Kyodo 
News. Among other candidates, Sadatoshi Kumagai was at 25.4 PERCENT 
and Shoji Umeda at 13.8 PERCENT . Hashimoto's overwhelming 
popularity among women was a major factor behind his victory in the 
race. 
 
In addition, Hashimoto won support from 55.1 PERCENT  of floating 
voters. He was also supported by 79.5 PERCENT  of those who support 
the Liberal Democratic Party, which backed him, and he won support 
from 95.3 PERCENT  of those who support New Komeito. 
 
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