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UNCLAS SECTION 01 OF 13 TOKYO 000236 
 
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 01/30/08 
 
 
Index: 
 
TODAY'S FEATURES 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Prime Minister Fukuda, commenting on President Bush's State of 
the Union speech, expresses hope for swift U.S. measures to help the 
economy  (Sankei) 
 
"Gasoline Diet session": 
5) Ruling parties submit a bridging bill to the Lower House to 
prevent the gasoline tax from expiring, but the opposition camp vows 
to wage all out war against it  (Asahi) 
6) Ruling camp starts playing hard ball in the Diet, matching the 
opposition's stance, leaving no room for compromise on tax bills in 
sight  (Nikkei) 
7) Main exchanges by the prime minister in the Lower House Budget 
Committee  (Yomiuri) 
8) Supplementary budget clears the Lower House  (Asahi) 
9) DPJ head Ozawa, under fire for skipping key vote in Diet to 
campaign in Osaka, dismisses connection between his absence and 
candidate's loss  (Sankei) 
 
African aid: 
10) LDP project team proposes a three-fold increase in ODA to Africa 
 (Yomiuri) 
11) First Aid being readied for Africa, focusing on measures to 
counter greenhouse gas emissions  (Nikkei) 
 
12) Libyan deputy foreign minister: If Japan backs "United States of 
Africa", possibility that oil field rights will be opened up 
(Asahi) 
 
13) China's State Councilor Tang Jiaxian coming to Japan in late 
February to pave way for state visit of President Hu  (Nikkei) 
 
14) Newly elected ROK president Lee scheduling his visit to Japan 
for April  (Yomiuri) 
 
Defense affairs: 
15) High oil prices creating a burden for national defense, as well 
(Sankei) 
16) Project team envisages activated the Self-Defense Forces in case 
of an influenza epidemic  (Yomiuri) 
17) Prime Minister Fukuda expresses his desire to see a permanent 
SDF dispatch law enacted  (Yomiuri) 
18) Reorganization of Defense Ministry would strengthen the internal 
bureaus  (Sankei) 
19) Ruling parties approve three year extension of U.S.-Japan 
special measures agreement on host nation support  (Sankei) 
20) Cabinet approves another extension of peacekeeping activities on 
the Golan Heights  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Nikkei: Sankei: Tokyo Shimbun: Akahata 
Ruling parties submit to Lower House stopgap bill to keep 
 
TOKYO 00000236  002 OF 013 
 
 
provisional gas tax rates with Lower House speaker's arbitration 
effort failing; Opposition determined to resist; Bill to be adopted 
today 
 
2) EDITORIALS 
 
Asahi: 
(1) McDonald's must pay overtime to store managers 
(2) President Bush's State of the Union address: What to do about 
the fissures his administration has left? 
 
Mainichi: 
(1) State of the Union address: President Bush should be aware of 
the dangers of dogma 
(2) Social security conference: If it is expected to play stopgap 
role, we do not need it 
 
Yomiuri: 
(1) Extension of provisional gas tax rate unavoidable measure to 
avoid chaos 
(2) State of the Union address: Heavy tasks imposed on the outgoing 
administration 
 
Nikkei: 
(1) President Bush undergoing economic ordeal at the end of his 
term 
(2) Pension talks should be held not at the Kantei but in the Diet 
 
Sankei: 
(1) Social security conference: Do not use panel as excuse for 
putting off settlement of social security issues 
(2) State of the Union address: Display leadership that will benefit 
next generation 
 
Tokyo Shimbun: 
(1) State of the Union address: Pending issue is redressing 
divisions 
(2) McDonald's outlet managers: Does the company throw away 
employees in managerial position after use? 
 
Akahata: 
(1) State of the Union address: President Bush's responsibility for 
starting illegal war remains 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 29 
 
NIKKEI (Page 2) (Full) 
January 30, 2008 
 
07:52 
Arrived at the Kantei. 
 
08:10 
Attended a meeting of the Local Revitalization and Integration 
Headquarters. Later attended a cabinet meeting. 
 
09:24 
Attended a Lower House Budget Committee meeting. 
 
12:15 
 
TOKYO 00000236  003 OF 013 
 
 
Met Chief Cabinet Secretary Machimura and Deputy Chief Cabinet 
Secretary Ono. 
 
SIPDIS 
 
12:45 
Met Machimura and Ono. 
 
12:57 
Met Machimura at the Kantei. 
 
14:15 
Attended the Lower House Budget Committee meeting. 
 
17:08 
Attended an Upper House Budget Committee meeting. 
 
17:28 
Attended a national social security meeting at the Kantei. 
 
18:06 
Met Osaka governor-elect Hashimoto, with Election Committee Chairman 
Koga, Osaka Prefectural Federation of Chapters Chairman Nakayama 
present. Later met Libyan Vice Foreign Minister Siala. 
 
20:02 
Attended a Lower House plenary session. 
 
20:37 
Arrived at the Kantei. 
 
20:58 
Returned to his official residence. 
 
21:15 
Met Machimura. 
 
4) Fukuda pins hopes on America's early economic stimulus package 
 
SANKEI (Page 5) (Full) 
January 30, 2008 
 
Prime Minister Yasuo Fukuda made the following comment last night 
regarding the fact that U.S. President George W. Bush expressed his 
resolve to ward off recession in his State of the Union address: 
"The recent global stock plunge (resulted from) the subprime loan 
crisis. Any measures taken by the United States are extremely 
vital." Fukuda thus indicated that he pins hopes on an early 
implementation of the 150-billion-dollar (approximately 16 trillion 
yen) emergency economic stimulus package announced by President 
Bush. He also underlined the need for a swift response, saying: "If 
(the stock plunge) drags on, it might affect not only Japan but also 
the whole world." 
 
5) Ruling camp submits stopgap bills to extend provisional 
road-related tax rates 
 
ASAHI (Top Play) (Excerpts) 
January 30, 2008 
 
The Liberal Democratic Party (LDP) and the New Komeito last night 
submitted to the House of Representatives a package of 
lawmaker-sponsored bills to extend the provisional gasoline and 
other road-related tax rates by two months beyond their end-of-March 
 
TOKYO 00000236  004 OF 013 
 
 
expiration. Given strong opposition to the bill by the Democratic 
Party of Japan (DPJ), Lower House Speaker Yohei Kono asked senior 
members of the ruling and opposition parties to try to find common 
ground in a bid to avoid a stalled session of the Diet. Despite 
intermittent discussion between both camps, the two sides failed to 
reach an agreement. As a result, the ruling parties decided to 
submit the bill. The opposition bloc is poised to put up all-out 
resistance by boycotting deliberations and other means. Both camps 
will unavoidably plunge into total confrontation. 
 
The stopgap bills are those amending the Special Taxation Measures 
Law, the Local Tax Law, and the Provisional Tariff Measures Law. The 
bills were referred to the executive committee and the fiscal and 
monetary committee of the Lower House. The bills are likely to be 
approved at a Lower House plenary session by a majority from the 
ruling parties. Even if the opposition bloc boycotts the vote on the 
bill, the ruling parties intend to enact the bills at the end of 
March by an override vote in the Lower House under Article 59 of the 
Constitution. 
 
Once the bills are enacted, the current gasoline tax rate will be 
maintained until the end of May. During this period, the ruling bloc 
plans to enact a bill amending the Special Taxation Measures Law to 
extend it for 10 years by a two-thirds lower chamber overriding 
vote. 
 
In an effort to break through the impasse, Kono met ruling and 
opposition party executives, including LDP Secretary General Bunmei 
Ibuki and DPJ Secretary General Yukio Hatoyama, in succession in the 
Diet building yesterday. He told them: "I want you to deal with the 
issue with common sense for the sake of the authority of the Diet 
and to make efforts to create an environment for both sides to be 
able to make compromises." 
 
Following this, discussion was carried out at a meeting between the 
Diet Affairs Committee chairmen of the ruling and opposition blocs 
and other meetings intermittently. In response to the opposition 
side's requests, the ruling side presented a compromise plan that 
includes proposals of removing parts related to an extension of the 
gasoline and other road-related tax rates from the revenue-related 
bills based on legislation by Lower House members, as well as of 
refraining from submitting the stopgap bills if the opposition 
promises to take a vote in the House of Councillors by the end of 
March. 
 
But DPJ Diet Affairs Committee Chairman Kenji Yamaoka declined the 
ruling parties' plan, arguing: "It is impossible to hold a 
discussion in which a final judgment has already been made. Such a 
proposal is tantamount to forfeiting our right to debate." The 
opposition side decided to reject the ruling parties' compromise 
plan at its meetings between the secretaries general and between the 
Diet Affairs Committee chairmen. 
 
6) Ruling camp changes to hard-line stance; Area of compromise on 
tax bill still not in sight 
 
NIKKEI (Page 2) (Excerpt) 
 
The ruling parties yesterday changed its line away from seeking 
talks with the opposition camp, and presented to the Lower House a 
"bridging bill" that would extend the provisional taxes, such as the 
gasoline tax. The reason is that with the confrontation between the 
 
TOKYO 00000236  005 OF 013 
 
 
two camps intensifying in the Diet, the ruling parties could see no 
clear outlook (for the main legislation). On the other hand, Prime 
Minister Fukuda has turned over the matter to the ruling parties and 
is taking a wait-and-see approach. He is aiming at preserving his 
card of calling for party-heads talks with Democratic Party of Japan 
President Ichiro Ozawa. 
 
7) Main questions and answers at Lower House Budget Committee 
session 
 
YOMIURI (Page 4) (Full) 
January 30, 2008 
 
The following is a gist of Prime Minister Yasuo Fukuda's replies at 
the House of Representatives Budget Committee session on Jan. 29. 
 
Stopgap bill 
 
Masao Akamatsu (New Komeito): The top leaders of (ruling and 
opposition parties) should discuss the matter. 
 
Prime Minister Fukuda: In running Diet business, a variety of topics 
are being discussed between the ruling and opposition camps. I pin 
hopes on talks. It is extremely regrettable for political issues to 
dim economic prospects. We need to make a breakthrough in the 
situation. 
 
Chinami Nishimura (DPJ): You should order the ruling camp not to 
submit a lawmaker-sponsored bill. 
 
Prime minister: I am not aware of the contents (of the legislation). 
I also don't know whether or not (the ruling bloc) will submit the 
bill. It will be determined through talks. In order to avoid such a 
consequence, (the opposition camp) should respond to a call for 
talks. 
 
Hirofumi Ryu (DPJ): You really don't know the contents of the bill? 
 
Prime minister: I really don't know. The ruling camp asked me to 
leave the matter to them, so I am trying not to interfere in it. I 
won't issue any order, because the talks concern the Diet. 
 
Ryu: Talks were held between the ruling and opposition camps while 
(the committee session) was in a recess for two hours. Did you 
receive a briefing? 
 
Prime minister: There was no contact. 
 
Kazunori Yamanoi (DPJ): Forcibly extending the provisional tax rates 
is tantamount to tax increases. The bill designed to increase 2.6 
trillion yen in taxes in 10 years is not something that can be 
determined in just one day without deliberations. 
 
Prime minister: We can thoroughly discuss what to do with the 
gasoline tax because there is sufficient time before the bill 
(amending the Special Taxation Measures Law) is enacted. We should 
discuss the matter during that period. 
 
Yamanoi: It is not fair to decide to extend the provisional tax 
rates in an instant without deliberations. 
 
Prime minister: It is meaningless to say this or that about (a bill) 
 
TOKYO 00000236  006 OF 013 
 
 
that has not been submitted. I would like you to create an 
atmosphere to conduct discussions calmly. 
 
Yamanoi: Can you say that the bill will not be submitted today? 
 
Prime minister: To be honest, I am not really happy to have to 
answer the same question over and over. I don't know the contents, 
and discussing a supposition is meaningless. 
 
Road construction in regional areas 
 
Ryu: Budget allocation lacks strategy. 
 
Prime minister: There is strategy. Public works projects have been 
halved over the last seven to eight years. We must give thought to 
local economies as well. Local regions must be cherished. To do so, 
roads must be built. 
 
Permanent legislation governing overseas dispatch of SDF 
 
Yuriko Koike (LDP): How are you going to address the question of a 
permanent law? 
 
Prime minister: I truly want to enact a permanent law. The question 
is whether we can create conditions for discussing the matter. I 
would like to advance the matter while watching the overall 
situation. It is ideal to advance the matter with support from 
opposition party members. 
 
Greenhouse gas reduction 
 
Koike: I would like to see the Lake Toya Summit use the carbon 
offset model (to offset the generated greenhouse gases with carbon 
dioxide reduction projects). 
 
Prime minister: We have been considering that idea. We would like to 
come up with the best means available. 
 
8) Supplementary budget bill clears Lower House 
 
ASAHI (Page 4) (Full) 
January 30, 2008 
 
The House of Representatives passed a supplementary budget bill for 
fiscal 2007 in its plenary session yesterday by a majority from the 
Liberal Democratic Party (LDP) and the New Komeito. The bill was 
sent to the House of Councillors the same day. The bill includes 
measures to deal with rising oil prices and to put off an increase 
in the government's burden of medical costs for the elderly. Even if 
the bill is rejected in the Upper House, which the opposition camp 
controls, the bill will be enacted at the end of February, at the 
latest, since the superiority of the Lower House is recognized for 
budget-related bills under the Constitution. Bills amending the 
local tax-allocation law and other laws were also approved by a 
majority from the LDP, the New Komeito, the Democratic Party of 
Japan (DPJ), and other parties in the Lower House. 
 
The total amount of the budget is 895.4 billion yen. The budget 
includes 171.9 billion yen to finance measures to freeze the plan of 
increasing the government's burden of medical costs for the elderly 
and 57 billion yen in aid for the management of transport companies 
in order to maintain services to isolated islands and depopulated 
 
TOKYO 00000236  007 OF 013 
 
 
areas as measures to deal with rising oil prices. The bill amending 
the local tax-allocation law is designed to allow local governments 
to issue deficit-covering bonds as a special measure, given sharp 
drops in their tax revenues in fiscal 2007. Both the LDP and the DPJ 
agreed to specify the validity of the special measures as "for the 
time being," instead of limiting it only to fiscal 2007. 
 
9) DPJ President Ozawa rebuts: My walking out of Lower House plenary 
session was not cause of defeat in Osaka gubernatorial election 
 
SANKEI (Page 5) (Full) 
January 30, 2008 
 
Democratic Party of Japan (DPJ or Minshuto) Secretary General Yukio 
Hatoyama has pointed out that DPJ President Ichiro Ozawa's skipping 
the second vote at the House of Representatives plenary session on 
the antiterrorism special measures bill was one of the reasons for 
the DPJ-backed candidate's defeat in the Osaka gubernatorial 
election. Asked by reporters yesterday about Hatoyama's comment, 
Ozawa snipped: "I don't know what the secretary general really said, 
but I don't think that was a cause." 
 
Referring to the defeat in the Osaka gubernatorial race, which the 
DPJ considered prelude to the next Lower House election, Ozawa 
stated: 
 
"There will be many kinds of elections until the next Lower House 
election, which is our biggest goal. It is only natural to do our 
best to achieve that goal. So Osaka is not so special." 
 
In order to support the DPJ-backed candidate for the Osaka 
gubernatorial election, Ozawa skipped the voting on Jan. 11 at the 
lower chamber, which took a second vote on the new antiterrorism 
bill to resume the Maritime Self-Defense Force's refueling mission 
in the Indian Ocean. 
 
On the night of Jan. 27, the day of the Osaka election, Hatoyama 
said that Ozawa's walking out of the plenary session "was severe 
criticized by the public." 
 
10) LDP panel proposes tripling ODA for Africa 
 
YOMIURI (Page 4) (Full) 
January 30, 2008 
 
The ruling Liberal Democratic Party's (LDP) ODA project team (headed 
by Toshio Yamauchi) in the National Strategy Headquarters yesterday 
formed a package of aid measures for Africa ahead of the fourth 
Tokyo International Conference on African Development (TICAD) and 
reported it to the joint session of the LDP's foreign 
affaires-related departments. The aide measures include tripling 
official development assistance (ODA) over next five years. 
 
As priority items, the package cites yen loans for the construction 
of infrastructure, such as an expressway system that will span the 
African continent, and grant aid for healthcare, such as measures to 
deal with AIDS, as well as educational aid, such as construction of 
elementary school buildings. 
 
11) Japan's first step to help developing countries' efforts to 
tackle climate change will start with Africa 
 
 
TOKYO 00000236  008 OF 013 
 
 
NIKKEI (Page 5) (Excerpts) 
January 30, 2008 
 
The Japanese government's idea put forward just recently to help 
developing countries address climate change will now get rolling. In 
this regard, the first set of measures is being discussed in the 
government to cover four African countries, including Nigeria. With 
an eye on the upcoming Group of Eight summit (G8 Toyako Summit) in 
July, which Japan will host and where how to deal with climate 
change and how to help develop Africa are expected to be high on 
agenda, the government intends to make clear its attitude of 
attaching importance to the environment and Africa. 
 
Prime Minister Yasuo Fukuda declared in a speech given at the annual 
meeting of the World Economic Forum in Davos, Switzerland, that 
Japan will create a "financial mechanism" for developing countries 
to deal with climate change. Japan will provide some 10 billion 
dollars for this financial mechanism. 
 
Candidate countries to receive the first set of measures under this 
mechanism are Nigeria, Madagascar, Senegal, and South Africa. 
Details of the measures will be discussed in February. Japan has 
judged it necessary to provide measures as quickly as possible, 
given desertification and deforestation in Africa because of climate 
change. 
 
The measures are expected to be offered mainly in the form of grant 
aid and technical cooperation. Yen loans from the Japan Bank for 
International Cooperation (JBIC) and the use of trade insurance will 
also be discussed. As specific measures to help African countries, 
Japan is considering offering an afforestation project to Senegal, 
where desertification is spreading. Toward Nigeria, which is 
frequently hit by floods, Japan is considering helping it in the 
area of disaster prevention planning. In addition, promotion of 
electrification by actively using solar and hydraulic power is also 
cited as a candidate project. After discussions on specifics about 
those planned aid projects, Japan will formally announce a set of 
measures toward Africa at the fourth Tokyo International Conference 
on African Development (TICAD) in Yokohama in May and the G8 Toyako 
Summit. 
 
Japan will select countries that will receive aid based on the 
following four criteria: (1) whether countries suffer damage from 
climate change; (2) whether countries have sufficient personnel and 
infrastructure, such as a Japanese embassy that can verify progress 
on aid projects; (3) whether countries have good projects worth 
receiving aid; and (4) whether countries have influence politically 
and economically in Africa. As for South Africa, its income levels 
are high and it has taken measures to deal with climate change to 
some extent. So, that country may not be selected as an 
aid-recipient country. 
 
12) Libyan vice foreign minister says if Japan backs the concept of 
"United States of Africa," Libya will share oil-drilling concessions 
with Japan 
 
ASAHI (Page 7) (Full) 
January 30, 2008 
 
Libyan Vice Foreign Minister Siala yesterday arrived in Japan as a 
special envoy of that country's leader Qaddafi and had an interview 
with the Asahi Shimbun in Tokyo. In it, Siala indicated that Libya 
 
TOKYO 00000236  009 OF 013 
 
 
will share the right to develop oil fields in the country with 
Japanese firms if Japan backs the concept of creating a "United 
States of Africa" advocated by Libya. Later in the day, Siala met 
with Prime Minister Fukuda and handed him a personal letter from 
Qaddafi, reportedly conveying this notion. 
 
Libya has several undeveloped mining areas inland and offshore, for 
which international bidding have begun. Siala said that Japanese 
firms can take part in the bidding and added that "(Libya) can sign 
a negotiated contract with (Japanese firms) on the already-developed 
mining areas." He also noted that "Japanese firms should be directly 
involved in exploring oil fields and producing crude oil," in 
addition to simply buying crude oil. 
 
Libya, backed by ample natural resources, has worked out a 
180-billion-dollar (1.9 trillion yen) economic plan covering the 
next four years for such projects as constructing roads and 
developing ports and harbors. Siala expressed hope that Japanese 
firms will join large development projects other than those for 
oil. 
 
The concept of United States of Africa is an idea to reorganize the 
current African Union (AU consisting of 53 countries and regions) 
into a United States of Africa with one central government. At 
present, Libya seeks to establish such major cabinet posts for that 
as foreign minister and defense minister. This concept is planned to 
be discussed at an AU summit meeting in Addis Ababa slated for early 
February. 
 
Siala noted: "We hope Japan, which has no history of colonizing any 
part of Africa in the past, will convince (other countries) about 
the idea." 
 
13) Chinese State Councilor Tang Jiaxuan to visit Japan in late 
February to pave way for presidential visit 
 
NIKKEI (Page 2) (Full) 
January 30, 2008 
 
The Japanese and Chinese governments launched yesterday coordination 
with the possibility of Chinese State Councilor Tang Jiaxuan 
visiting Japan in late February. As Tang is expected to attend the 
presidential inauguration in South Korea, which will take place on 
Feb. 25, he will likely to come to Tokyo around that time. The two 
governments are also looking into the possibility of a visit to 
Tokyo in March by Foreign Minister Yang Jiechi. With these visits, 
efforts to pave the way for President Hu Jintao's visit to Japan 
this spring will be in full gear. 
 
Placing emphasis on Hu's planned visit to Tokyo, which will be the 
first Chinese presidential visit to Japan in a decade, Beijing has 
sounded out Tokyo to issue a new joint statement during the Hu 
stay. 
 
Beijing intends to characterize the new joint statement as "fourth 
important document, following the Japan-China Joint Statement in 
1972, the Japan-China Pace and Friendship Declaration in 1978, and 
the Japan-China Joint Declaration in 1998. The purpose of Tang's 
trip to Tokyo will be to explain Beijing's intention to seek such a 
document. 
 
Tang is expected to exchange views with Japanese leaders on such 
 
TOKYO 00000236  010 OF 013 
 
 
issues as North Korea's nuclear ambitions, exploration rights in the 
East China Sea gas fields, and reform of the United Nations Security 
Council. 
 
Prime Minister Yasuo Fukuda said that an agreement was reached in 
his meeting with Hu that the timing for Hu's visit to Japan would be 
around cherry-blossom time. With an eye on the presidential visit in 
April, Tokyo and Beijing has begun coordinating schedules. 
 
14) South Korean President-elect Lee to visit Japan in April 
 
YOMIURI (Page 2) (Full) 
January 30, 2008 
 
The governments of Japan and South Korea have launched final 
coordination on a plan to carry out in mid-April a visit to Japan by 
President-elect Lee Myung Bak, who will take office in February. If 
realized, it will be the first time for a South Korean president to 
come to Japan in about three years and four months since President 
Roh Moo Hyun visited in December 2004. Prime Minister Yasuo Fukuda 
is expected to attend the presidential inauguration on Feb. 25. The 
protocol of mutual visits by the top Japanese and South Korean 
leaders will resume. The Japanese government has called on Lee to 
visit Japan as early as possible after he takes office. 
 
According to a source familiar with Japan-South Korea relations, the 
South Korean side sounded out a plan for Lee to visit Tokyo on the 
way back home from the United States where he is expected to visit 
after the April 9 general elections in South Korea. In his telephone 
talks with Fukuda in late last December, Lee said: "I want to meet 
often with Prime Minister Fukuda to build a new future." The two 
leaders agreed in their telephone talks to resume the mutual summit 
visits. 
 
Fukuda is expected to hold the first summit with Lee when he visits 
Seoul to attend the presidential inauguration. He plans to discuss 
with Lee such issues as South Korean trade deficit with Japan, and 
negotiations on a free trade agreement, which have been suspended 
since November 2004. 
 
15) High crude oil prices affecting national defense? Additional 
fuel expenses earmarked in supplementary budget bill 
 
SANKEI (Page 2) (Full) 
January 30, 2008 
 
Soaring crude oil prices and the present lopsided Diet, in which the 
opposition camp controls the Upper House and the ruling bloc holds a 
majority in the Lower House, could affect national defense and 
security. That is because the fiscal 2007 supplementary budget bill 
includes fuel expenses for patrol vessels of the Self-Defense Forces 
(SDF) and the Japan Coast Guard (JCG). Deliberations on the second 
budget bill could be stalled, depending on the Diet situation. The 
Defense Ministry is trying to save fuel consumption by conducting 
drills near SDF bases. However, in order to maintain the level of 
performance of SDF troops, it is not possible to cut the number of 
drills, as a senior SDF officer said. As such, they are closely 
watching developments in Diet deliberations. 
 
Expenditures in the fiscal 2007 supplementary budget bill total 
2.4952 trillion yen, of which 57 billion yen has been earmarked as 
appropriations to cover the rise in crude oil prices. Though the 
 
TOKYO 00000236  011 OF 013 
 
 
specifics of the additional appropriations are mainly measures for 
the people, such as a reduction in expressway tolls for trucking 
companies and small and medium-sized businesses, 12.1 billion yen 
for fuel used by the SDF and the JCG is also included. 
 
According to the Defense Ministry, fuel expenses have surged 
approximately 15 PERCENT , compared with the preceding year. 
Although the ministry is saving fuel by conducting drills in oceanic 
and air areas near bases, the forces are apparently worried, with 
one source saying, "We cannot conduct drills at the same sites 
forever.  Least of all, we cannot possibly order vessels and 
aircraft not to use fuel when they detect North Korea's missiles or 
suspicious ships." The same source said that the activities of 
patrol vessels and aircraft could be extensively restricted without 
additional fuel expenses in the supplementary budget. 
 
The Defense Ministry and the JCG have secured additional fuel 
budgets in the fiscal 2008 budget bill. However, one Defense 
Ministry source expressed concern, "The high crude oil prices could 
affect the security and defense of areas surrounding Japan." 
 
16) Ruling coalition mulls utilizing SDF troops to help fight avian 
flu proliferation 
 
YOMIURI (Page 4) (Full) 
January 30, 2008 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
held a meeting of their project team yesterday to work out 
countermeasures dealing with a new-type avian influenza. The meeting 
was held in the Diet, with former Health, Labor and Welfare Minister 
Jiro Kawasaki presiding. In the meeting, the project team focused 
its discussions on how to prevent at an early stage the new-type 
avian flu from reaching an epidemic stage in Japan. There were 
suggestions from a number of project team members that the 
government should activate the Self-Defense Forces in that event. 
The project will consult with the government on how far the SDF can 
be utilized under the current law. 
 
The project team will work out a report of recommendations in June 
and will ask the government to budget necessary measures for fiscal 
¶2009. 
 
The government has an action plan for the new-type bird flu, but it 
does not expressly stipulate anything about the idea of utilizing 
the SDF. However, the project team anticipates a case where several 
hundred people might be infected with the disease in a local area. 
In order to cope with such a case, the project team suggested the 
need for the government to send in SDF troops at an early stage. 
Specifically, the project team notes that the SDF would use school 
gyms and other local facilities with medical equipment in order to 
conduct medical treatment. Other countermeasures suggested by the 
project team include blockading roads to prevent the disease from 
spreading. 
 
17) Fukuda positive about permanent legislation for SDF missions 
overseas 
 
YOMIURI (Page 4) (Full) 
January 30, 2008 
 
Prime Minister Fukuda attended a meeting of the House of 
 
TOKYO 00000236  012 OF 013 
 
 
Representatives Budget Committee in the Diet yesterday, during which 
he expressed his view over the idea of creating a permanent law for 
Japan to send the Self-Defense Forces for overseas missions. "If we 
choose to legislate special measures each time, we usually need two 
full months to have a special measures law enacted in the Diet," 
Fukuda stated before the committee. "I am worried whether that way 
is sufficient for carrying out our cooperative activities," Fukuda 
added. He stressed, "That is why I want to create a permanent law." 
 
Fukuda was also asked whether the government would present a bill to 
the Diet during the current session. "I would like to continue to 
look at the overall picture to see if we can get the Diet to discuss 
this matter," Fukuda stated. He added, "If we can do this with the 
opposition parties' understanding, that would be best." 
 
He was replying to a question asked by Yuriko Koike from the ruling 
Liberal Democratic Party. 
 
18) Ishiba's idea puzzles Defense Ministry bureaucrats, SDF brass 
 
SANKEI (Page 5) (Abridged) 
January 30, 2008 
 
The government is now planning to restructure the Defense Ministry 
and the Self-Defense Forces. In this connection, Defense Minister 
Shigeru Ishiba's initiative is creating a stir in the Defense 
Ministry. His idea is to integrate the Defense Ministry's internal 
bureaus and the SDF's staff offices into a head office. Ishiba has 
been insisting that the Defense Ministry's internal bureaus and the 
Ground, Maritime, and Air Self-Defense Forces' respective staff 
offices should be integrated into one organization. In concrete 
terms, Ishiba has specified three functions: 1) the SDF's joint 
operations; 2) Japan's defense buildup, including hardware 
development and procurement; and 3) public relations and 
parliamentary affairs, including legislative measures. However, 
there are still no formal orders from Ishiba about his initiative. 
The Defense Ministry's bureaucrats and the SDF's brass officers are 
therefore watching with a wary eye. 
 
"I would not preclude any option," Ishiba told a press conference 
yesterday about integrating the Defense Ministry's internal bureaus 
and the SDF's staff offices. With this, Ishiba indicated that he 
would work it out from scratch. In February, the government will 
hold a meeting of its panel discussing an overhaul of the Defense 
Ministry. On that occasion, Ishiba will state his view about 
civilian control and will raise issues about the Defense Ministry's 
reorganization. 
 
However, the Defense Ministry's bureaucracy and the SDF's brass are 
'oil and water.' It would be no easy matter to merge them. "We may 
lose our posts." With this, one of the Defense Ministry's senior 
officials voiced concern. An SDF staff officer also said, "That may 
end up reinforcing the ministry's bureaucracy." 
 
19) Ruling coalition OKs 3-yr sympathy budget extension 
 
SANKEI (Page 5) (Full) 
January 30, 2008 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
approved a new special agreement for a three-year extension of the 
Japanese government's sympathy budget (host nation support), which 
 
TOKYO 00000236  013 OF 013 
 
 
is to expire at the end of March this year. The government will make 
a cabinet decision in early February to renew the current special 
agreement. After that, the government will present it to the Diet. 
 
Japan currently shoulders the burden of base pay for Japanese 
employees working at U.S. military bases in Japan as well as 
utilities for U.S. military bases, totaling approximately 140 
billion yen. The new special agreement is to maintain this level of 
burden-sharing in fiscal 2008 and is to reduce 400 million yen each 
in fiscal 2009 and 2010. On Jan. 25, Foreign Minister Koumura and 
U.S. Ambassador to Japan Schieffer signed it at the Foreign 
Ministry. 
 
The Japanese government first proposed a substantial cutback of 
spending in its burden sharing due to financial stringency. However, 
the U.S. government insisted on keeping the current level because of 
its increasing war costs in Iraq and Afghanistan. In the end, the 
Japanese and U.S. governments agreed on a slight cutback of 
utilities. However, the two governments have agreed on a 
comprehensive review of burden-sharing. As it stands, bilateral 
consultations will likely face rough going. 
 
20) Cabinet decision made to extend SDF Golan Heights mission 
 
SANKEI (Page 5) (Full) 
January 30, 2008 
 
The government decided at a cabinet meeting yesterday to extend 
Self-Defense Force participation in the UN Disengagement Observer 
Force (UNDOF) in the Golan Heights for six months until September 30 
beyond the March 31 end of the current deployment under the UN 
Peacekeeping Activities Cooperation Law. The decision follows the UN 
Security Council's step last December to extend the UNDOF mission. 
The SDF dispatch to the Golan Heights started in 1996. Currently, 45 
personnel, mostly Ground Self-Defense Force members, are conducting 
transport activities. 
 
SCHIEFFER