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UNCLAS SECTION 01 OF 10 TOKYO 000026 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 01/04/08 
 
 
INDEX: 
 
(1) Japan-U.S. defense interests (Part A) (Sentaku) 
 
(2) Tasks after enactment of new antiterrorism legislation: Need to 
discuss future operations with other countries; What is Japan 
expected to do? (Yomiuri) 
 
(3) Year of decisive battle -- interviews with leaders of ruling and 
opposition parties: DPJ Secretary General Hatoyama mentions the 
possibility of teaming up with some LDP members (Nikkei) 
 
(4) Editorial: Future of ODA - Secure the budget to ensure 
international contribution (Mainichi) 
 
(5) Noboribetsu Grand Hotel picked as lodging site for U.S. 
delegation to G8 Summit, beating out favored choice Niseko (Hokkaido 
Shimbun) 
 
(6) TOP HEADLINES 
 
(7) EDITORIALS 
 
ARTICLES: 
 
(1) Japan-U.S. defense interests (Part A) 
 
SENTAKU (Pp. 110-113) (Almost full) 
January 2008 issue 
 
A giant leap made by Yamada Corp, which used to be a small real 
estate company, is attributable to Hideaki Tamura, an 
Air-Self-Defense-Force-officer-turned-Upper House lawmaker. Minoru 
Genda, who can said to be Tamura's predecessor so to speak, played a 
role in the 1976 Lockheed scandal and the 1978 Douglas-Grumman 
scandal. Genda became an Upper House lawmaker after serving as ASDF 
Chief of Staff. The role played by Genda in the Lockheed scandal was 
the same as that by Tamura in the Yamada scandal. Similar roles were 
played by Osamu Kaihara and former Vice Defense Minister Takemasa 
Moriya, who had both served as Defense Policy Bureau chief and was 
called the "Emperor." Kakuei Tanaka played the central political 
role in the Lockheed scandal, and Nobusuke Kishi in the 
Douglas-Grumman scandal. Regarding the Lockheed scandal, The New 
York Times exposed that CIA funds had been funneled into Japan, 
shifting eventually the investigative direction to the arrest of 
Kakuei Tanaka. 
 
There are stark similarities between the Douglas-Grumman and 
Lockheed scandals and the Yamada scandal. In other words, the Yamada 
scandal is a rerun of a dark drama that has repeatedly been played 
in the postwar period over defense interests, especially over 
aircraft interests. The Yamada scandal, however, led to the arrest 
of a former administrative vice-defense minister, a rare 
development. This unusual development has opened a crack to offer a 
glimpse into the inner workings of Japan-U.S. defense interests. 
 
Moriya is the key-man to shedding light on the interests associated 
with U.S. force realignment in Japan. The special investigation 
squad of the Tokyo District Public Prosecutors Office has begun 
dashing ahead to uncover the facts about the scandal based on 
Moriya's statements. Beneath lie bottomless interests in the name of 
the Japan-U.S. alliance. They are the "Guam interests." 
 
TOKYO 00000026  002 OF 010 
 
 
 
Bechtel has strong ties to U.S. administration's inner circle 
 
Last summer, a military delegation visited Saipan and its 
neighboring islands 200 kilometers away from Guam. The group was 
from the missile department of the U.S. giant corporate group 
Bechtel. 
 
A Japanese government official said: 
 
"Although only Guam is focused in Japan, the U.S. Defense Department 
intends to create a huge military base that can become a frontline 
base replacing Okinawa toward Asia by combining the areas up to the 
Mariana Islands, including Saipan. A military expansion plan has 
surfaced to establish training and research facilities and reserve 
stockpile stations at various places to conduct training against 
submarines and patrol aircraft and exercises for defending the 
homeland or improve the logistical department. The plan keeps 
growing in anticipation of the Japan money the government promised 
at the 2+2 (Japan-U.S. Security Consultative Committee) meeting." 
 
The realignment of U.S. forces in Japan is estimated to cost 3 
trillion yen in total. Of it, the Guam relocation plan accounts for 
1.1 trillion yen. Japan is to bear 60 PERCENT  of it. Japan's 
financial contribution is legally groundless, as it is not mentioned 
in the Japan-U.S. Status of Forces Agreement on the handling of U.S. 
bases in Japan. It was supposed to be covered by the expenses 
connected with SACO (Special Action Committee on Okinawa) and the 
"sympathy budget." But because they were insufficient to fund the 3 
trillion yen, the two governments have come up the strange scheme of 
making Japan foot the bill partially. 
 
Meanwhile, the cost of relocating/integrating U.S. forces in Japan 
was estimated at 2.3 trillion yen. Then U.S. Deputy Defense 
Undersecretary Richard Lawless categorically said: "As long as there 
is the U.S.-Japan alliance, it is natural for Japan to bear the cost 
in full." 
 
A government official took this view: 
 
"Japan paid 300 million dollars in accordance with a secret pact at 
the time of Okinawa's reversion to Japan. Japan also saved the 
Republican Nixon administration suffering from the huge financial 
burden of the Vietnam War. This time around, Japan, which has not 
directly funded the Iraq war, has provided relief for the Bush 
administration under the cloak of bearing the cost of the Guam 
relocation instead of a secret pact." 
 
The Japanese government has unilaterally been forced to make 
contributions to the planned relocation. Japan, which has not been 
informed of the basis of the estimate, is frightened by endless 
requests from the United States. 
 
A Japanese military corporate executive noted: 
 
"The beautiful resort island of Guam and the islands in its vicinity 
have now turned into a hunting ground for the military industry. 
Although the Japanese government says it is still at a planning 
stage, the realignment project is fully underway on the ground, and 
Bechtel has now finally come on the stage." 
 
Bechtel, though unlisted, is the world's strongest general 
 
TOKYO 00000026  003 OF 010 
 
 
contractor that undertakes nuclear plants and airports in Asia and 
Europe. Former Secretary of State George Shultz and former Secretary 
of Defense Casper Weinberger under the Reagan administration, which 
pursued a military expansion policy course, once served as president 
and vice president, respectively, of Bechtel. The company is a 
quintessential political merchant. 
 
Bechtel's current chairman Riley Bechtel is a member of an advisory 
panel to President Bush George W. Bush. With his political power in 
the backdrop, the company has won a 4 billion-yen infrastructure 
improvement project, a post-Iraq war pivotal reconstruction 
undertaking. This can explain why the company is ridiculed as a 
postwar hyena. 
 
Envisaging that Guam will become a military town, Bechtel reportedly 
has an eye on a nuclear power generation project to cover growing 
electric power consumption. 
 
Bechtel's viral is reportedly the Shaw Group Inc. 
 
A government source explained: 
 
"In anticipation of the relocation, Andersen Air Force Base on Guam 
completed its second runway for 2.5 billion yen just in June last 
year. Shaw has also started waste disposal and environmental plant 
projects." 
 
Armitage, the fixer 
 
Shaw is also a shrewd political merchant. The company is racking up 
profits, hiring President Bush's national campaign manager as its 
lobbyist, coming forward for a post-Iraq war oil plant project, and 
winning orders for many post-disaster recovery projects in the 
United States. 
 
The U.S. government has recently determined fiscal 2008 budgetary 
steps for the Guam relocation plan. Shaw is targeting the relocation 
plan entirely dependent on Japan money. 
 
A Japanese government official commented: 
 
"Shaw executives visited Japan in the fall of the year before last 
when the realignment plan did not take shape, and lobbied political 
and business circles to swiftly disburse 700 billion yen in Japan's 
contribution. The firm also concluded a consultant agreement with 
Nihon Mirise Corp. run by Motonobu Miyazaki to work upon Japanese 
corporations to invest in Guam." 
 
Pestering Japan for money are senior Pentagon officials and huge 
American corporate groups like Bechtel and Shaw. Actively hiring 
retired military officers, Bechtel and Shaw are targeting defense 
interests by using their connections. They have two ways: one is to 
work upon the Pentagon through retired officers and the other is to 
use former senior U.S. government officials as lobbyists. 
 
Such individuals as Richard Armitage, who served as assistant 
secretary of defense and deputy secretary of state under a 
 
SIPDIS 
Republican administration, and William Cohen, who served as 
secretary of defense under the Clinton administration despite his 
 
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being a Republican, have played since the 1990s important roles as 
fixers in hunting for defense interests straddling Japan and the 
Untied States. Armitage pressed Japan to revise Article 9 of the 
 
TOKYO 00000026  004 OF 010 
 
 
Constitution to allow Japan and the United States to take joint 
military operations. He also urged Japan to improve its emergency 
legislation and offer cooperation to the United States in the wake 
of 9/11. 
 
A source connected with the Defense Ministry took this view: 
 
"He played a central role in addressing the question of determining 
a Futenma replacement facility that drew fire from Okinawa 
residents, serving as a U.S. contact person in talks on the 
realignment issue. Winning a reputation from Tokyo that he lends an 
ear to Japan's views, he has established himself as pro-Japanese." 
 
It has come to light through investigations by the special 
investigation squad that Armitage and his aides have received a 
total of over 100 million yen over the last seven years from Yamada 
International Corp., Yamada's U.S. subsidiary. Armitage established 
in 1993 a consultant firm called Armitage Associates. Armitage 
received funds even during his tenure as deputy secretary of state 
through this firm. 
 
A Defense Ministry source also said: 
 
"Motonobu Miyazaki, now under arrest, indicated that he has been on 
friendly terms with (Armitage) over the last 20 years. (Miyazaki) 
also took the trouble of introducing (Armitage) to Moriya, who did 
not have any personal connections in the United States." 
 
Taking seriously the fact that money was paid to the senior U.S. 
official, the special investigation squad is questioning Miyazaki 
and others to find out detailed circumstances. 
 
A journalist residing in the United States commented: 
 
"He had received large sums of money from various quarters in the 
name of consulting fees even from before becoming deputy secretary 
of state under the Bush administration." 
 
There is a list of clients exhibiting his enormous money-collecting 
power. They all pay 5,000 dollars a year. On the list are nearly 50 
companies ranging from the defense industry, such as Boeing and 
Halliburton (subsidiary), to financial groups, such as Goldman 
Sachs. 
 
Also on the list are the Japanese Embassy, Japan National Oil Corp. 
(currently Japan Oil, Gas and Materials National Corp.), Japan 
Petroleum Exploration Co., Institute of Research and Innovation, 
which is involved in R&D in the nuclear fuel recycling field. Such 
public-interest corporations and special corporations are listed 
along with Mitsubishi, Toshiba, and Yamada International. 
 
The U.S.-based journalist also said: "Although he is regarded as 
pro-Japanese, his ties exist only through money. They are convenient 
clients supplying money to his business." According to a concerned 
source, Armitage is also involved in the real estate business and 
has invested in such companies as Pfizer and AIG. This shows his 
dirty side of doing business on the strength of his money-collecting 
power and political influence. 
 
Former Secretary of Defense William Cohen has also founded a 
consultant firm called Cohen Group. The firm hires former Pentagon 
officials as lobbyists. Its aggressive money-collecting activities 
 
TOKYO 00000026  005 OF 010 
 
 
have often been reported by the U.S. media. 
 
(2) Tasks after enactment of new antiterrorism legislation: Need to 
discuss future operations with other countries; What is Japan 
expected to do? 
 
YOMIURI (Page 16) (Full) 
January 4, 2008 
 
Hidemichi Katsumata 
 
The new antiterrorism special measures law intended for Japan to 
resume its refueling mission in the Indian Ocean is expected to be 
approved again in the Lower House possibly sometime in next week. 
But this does not mean the putting to an end of debate on "war on 
terrorism." Instead, it restarts the debate. 
 
There is no end to Al-Qaeda and other terrorist organizations 
traveling by sea from Afghanistan via Pakistan and Iran. They travel 
by sea to transport narcotics, weapons, and people. In order to 
prevent them from doing so, naval forces from the United States, 
Britain, France, and Pakistan -- members of the Coalition of the 
Willing -- are on the alert against terrorism and monitor the 
activities of terrorists. Supplying fuel to vessels from the 
coalition of willing is the role Japan's Maritime Self-Defense Force 
(MSDF) will fulfill again. 
 
But ahead of resuming this refueling mission, questions were voiced 
by some SDF officers including those from the MSDF. One officer 
asked, "I wonder whether the current operations are the best?" 
Another said: "The war on terrorism has lasted for a long time. It 
may be a wise policy for Japan to consider another form of 
cooperation, while being engaged in the refueling mission." 
 
When the terrorist attacks on the U.S. occurred on Sept. 11, 2001, 
what was important then was for Japan to quickly decide to join the 
international operation "the war on terrorism." It was also 
important for Japan to secure the safety of SDF members to be 
dispatched to take part in that operation. 
 
At the time, Japan discussed a plan to send, in addition to 
providing refueling services, the Air Self Defense Force, using such 
aircraft as P-3C patrol planes, to monitor the activities of 
terrorists on the sea. In December of that year, Japan began 
providing fuel, and after that, the International Security 
Assistance Force (ISAF) tasked with securing security in Afghanistan 
informally asked Japan to send the Ground Self-Defense Force and 
helicopters to Afghanistan. And the North Atlantic Treaty 
Organization (NATO) approached to Japan about a plan for the SDF to 
take over the role played by New Zealand's forces' Provincial 
Reconstruction Team (PRT), which is operating together with 
civilians at Bamyan in mid-Afghanistan. 
 
A dispatch of the P-3C to Afghanistan was never realized, however, 
partly because of difficulties in securing aircraft to be dispatched 
and also the expected difficulty of guarding them. As for Japan's 
participation in the PRT, even discussion on that was not held 
because SDF troops have no authority to guard civilians in 
international cooperation activities. 
 
At present, more than 40 countries have taken part in the U.S. -led 
Operation Enduring Freedom (OEF), and ISAF and the PRT. But it 
 
TOKYO 00000026  006 OF 010 
 
 
appears to be a reality that each country has agonized over 
continuing the war on terrorism in view of the fact that more than 
720 participants (as of last November) have been killed in the 
operations that have continued for six years since the 9/11 
terrorist attacks. 
 
Canada saw more than 70 its soldiers killed in Afghanistan, and 
Germany has had over 20 deaths. France has had over 10 deaths. 
Nonetheless, these countries remain engaged in warning operations in 
ISAF or in the Indian Ocean. Whether to participate in such 
operations raises a very serious question involving the lives of 
participating countries' soldiers and civilians. Last January, Prime 
Minister Abe vowed at the NATO headquarters (in Brussels) to step up 
support for the PRT. But the arguments that have continued since 
last fall in the Diet, for instance, are that Japan does not have to 
cooperate in the U.S.' self-defense war and that OEF is not backed 
by any United Nations resolutions. No arguments like these have been 
heard in any countries other than Japan, however. 
 
Once the new antiterrorism legislation is enacted, Japan will again 
dispatch MSDF vessels (to the Indian Ocean) late this month at the 
earliest and resume the refueling mission in late February. Japan 
will then return to the stage of international cooperation, which 
has been suspended since last November. Taking the opportunity to 
resume the mission, Japan needs to verify the war on terrorism in 
cooperation with the U.S., Britain, France, Germany, Canada, 
Australia, and other countries that are cooperating strongly 
together and to discuss with those countries how to continue 
operations. 
 
Through such discussions, Japan can see and make it clear to the 
public what other countries expect from Japan. For instance, the Air 
Self-Defense Force (ASDF) now transports goods by means of its C130 
transport planes from Kuwait to Baghdad and other Iraqi cities, but 
if Kabul is included in this transport route, this transport service 
will lead to supporting ISAF and the PRT. However, Japan would find 
it difficult to realize a number of tasks because of legal 
restrictions. Yet one thing would become clear through the 
discussions: Japan would finally get rid of at least those 
self-righteous Diet debates. 
 
(3) Year of decisive battle -- interviews with leaders of ruling and 
opposition parties: DPJ Secretary General Hatoyama mentions the 
possibility of teaming up with some LDP members 
 
NIKKEI (Page 2) (Slightly abridged) 
January 4, 2008 
 
Q: Prime Minister Yasuo Fukuda is unwilling to dissolve the Lower 
House at an early date. Will you be able to drive him into deciding 
to do so? 
 
Major opposition Democratic Party of Japan (DPJ) Secretary General 
Yukio Hatoyama: Once the public concludes the prime minister's 
approach is outrageous and that the contents of his policies are 
poor, the public will side with us, so we will then grill and grill 
and grill him. The prime minister may not be bothered, even if the 
opposition bloc adopts a censure motion against him in the Upper 
House and causes the Diet to be paralyzed, but if the opposition 
parties just do nothing when the public gets angry (at the 
government), the public may suspect that there is a 
behind-the-scenes agreement between the ruling and opposition 
 
TOKYO 00000026  007 OF 010 
 
 
parties. 
 
If the government and the ruling parties steamroll their way by 
front-loading a bill intended to continue the provisional tax rate 
applicable to the gasoline tax, then the prime minister will become 
responsible also for that bill in addition to the bill aimed at 
resuming the refueling mission in the Indian Ocean. It is only 
natural for the DPJ to envision the possibility of presenting a 
censure motion against the prime minister. 
 
Q: Do you think the end of March, when the provisional tax rate is 
to expire, will be the time for a showdown? 
 
Hatoyama: If the government front-loads the submission of such a 
bill, we will then need to come up with a counter bill. It is 
possible for the DPJ to submit a bill aimed at freezing the 
provisional tax rate sometime between January and March before the 
expiration of that tax rate. 
 
Q: There is those who suggests submitting a censure motion against 
Health Minister Yoichi Masuzoe in connection with the question of 
identifying unidentified pension premium payment records. 
 
Hatoyama: It (the submission of a censure motion) may give the prime 
minister an excuse for shuffling his cabinet. The prime minister may 
dodge the question of the bungled pension premium payment record by 
arguing the situation has now changed. 
 
Q: How many seats does your party aim to grab in the next Lower 
House election? 
 
Hatoyama: The DPJ's goal is to secure 151 seats from single-seat 
constituencies. If the DPJ can grab that number, we can expect to 
win 70 seats from the proportional representation constituency. The 
DPJ will then be certain to become the first party. Once the DPJ 
becomes the first party, it is only natural that Prime Minister 
Fukuda will hand over the reins of government to us. It would be in 
accord with the Constitution to then choose the prime minister from 
the DPJ. 
 
Q: Last year the DPJ announced it would field 250 candidates, but 
the process of recruiting candidates is running late. 
 
Hatoyama: We need to recruit 20 more candidates to field. Many slots 
are still open in Tokyo district. In Kanagawa and Chiba districts, a 
final decision is being formed about whom to field. I think it is 
possible to line up 250 candidates to field by the end of January. 
 
Q: Rumor has it that big-name party leaders may trade their 
electoral districts for those districts where an uphill battle is 
expected. 
 
Hatoyama: I can't tell you anything about that. Trading electoral 
districts could incur local criticism. It is not at all that easy to 
do so. The point is what DPJ President Ichiro Ozawa thinks about 
that. 
 
Q: Rumors are flying around that a grand coalition will be formed 
after the Lower House election or that another political realignment 
will occur. 
 
Hatoyama: If the DPJ becomes the first party in both chambers of the 
 
TOKYO 00000026  008 OF 010 
 
 
Diet, it is likely that we will rally those who sympathize with our 
party's views. Someone who has a centripetal force in (both the 
ruling Liberal Democratic Party (LDP) and the DPJ) can drive a wedge 
in the other party. 
 
Q: In such a case, is it possible for the DPJ to team up with a 
liberal group in the LDP? 
 
Hatoyama: It is fully possible to do so. 
 
(4) Editorial: Future of ODA - Secure the budget to ensure 
international contribution 
 
MAINICHI (Page 5) (Full) 
December 28, 2007 
 
Outlays related to official development assistance (ODA) in the 
General Account portion of the government's draft budget for fiscal 
2008 totaled 700.2 billion yen, a reduction of 4 PERCENT  from the 
previous year's amount. Compared to the 1.16 trillion yen budget in 
fiscal 1997, there has been a 40 PERCENT  drop in ODA. In the reform 
effort to bring expenditures and revenues together, it was decided 
that the ODA budget until fiscal 2011 would be cut 2 to 4 PERCENT 
annually. 
 
The OECD's Development Assistance Committee (DAC) in a calculation 
of assistance performance over the last ten years, ranked Japan in 
sixth place (as a global donor). In 2006, Japan was third after the 
United States and Britain, but now it has been overtaken by Germany, 
France, and Italy. The ranking reflects the cuts in the ODA budget. 
 
Fiscal policy must be made sound in order to return the economy to 
its normal state. At the same time, when Japan is making 
international contributions, the trend of developing countries in 
decline must be given serious consideration. The Overseas Economic 
Cooperation Conference established last year in May in order for the 
prime minister, foreign minister, finance minister and other top 
officials to discuss the ODA problem from a wider point of view is 
now supposed to hammer out a policy direction. 
 
Since the revision of the ODA Charter in 2003, the government has 
focused aid policy on choices and concentration and strategy. 
However, with the General Account (of cash portion) of the ODA 
budget being cut, technical cooperation and grant aid also will 
unavoidably dwindle. Yen loans, which draw funds from the Fiscal 
Investment and Loan Program, and contributions to international 
organizations have a limited capability of supplementing that. 
 
In October 2008, the yen-loan (reimbursable aid) portion of the 
Japan Bank of International Cooperation (JBIC) will merge into the 
Japan International Cooperation Agency (JICA), which is the agency 
that implements technical assistance. The non-reimbursable aid 
division of the Foreign Ministry also in principle will be under 
JICA's jurisdiction. Unified operation of the ODA program will 
finally be possible. In May, the fourth Africa Development 
Conference will be held, and in July, the G8 Summit Conference will 
be held at Lake Toya in Hokkaido.  From the aid perspective, these 
are good chances for Japan to speak out internationally. 
 
 Japan has made an international pledge to add $10 billion to ODA 
from 2005 to 2009, and to double aid to Africa in three years, 
starting in 2005. The extra $10 billion was used for large-scale 
 
TOKYO 00000026  009 OF 010 
 
 
debt relief, including for Iraq, and the aid for Africa is likely to 
be attained, since the original amount of aid to that continent was 
small. 
 
The cooperation being sought internationally now are contributions 
to the United Nations' Millenium Development target, which sets 
annual targets for 15 years, measures to counter global warming, and 
measure to deal with atmospheric pollution. With such situations in 
mind, the ODA White Paper for 2007 noted the necessity of 
international cooperation to expand such types of official 
assistance. Such international cooperation clearly positions as 
important not only reimbursable and non-reimbursable financial 
cooperation but also financing from the international financial 
division (formerly Japan Export-Import Bank) of JBIC and assistance 
that link the government and private sectors. Even so, with the 
budget continued to be slashed, Japan's presence in such efforts 
will wane. 
 
As was introduced in the ODA White Paper, everywhere in the world 
are Japanese whose mission is international cooperation. In the 
development of Southeast Asia, Japan contributed with building 
infrastructure and other projects. Here, too, the value of 
assistance must not dwindle. 
 
(5) Noboribetsu Grand Hotel picked as lodging site for U.S. 
delegation to G8 Summit, beating out favored choice Niseko 
(Hokkaido) 
 
HOKKAIDO SHIMBUN (Page 2) (Full) 
December 28, 2007 
 
(Photo of Noboribetsu Grand Hotel at Noboribetsu Spa that the U.S. 
government delegation has decided to use as its lodging) 
 
It was learned yesterday from several informed sources that 
Noboribetsu Grand Hotel (261 rooms, located at Noboribetsu Spa in 
Noboribetsu City) has been picked as the lodging site for the U.S. 
government delegation to the G8 Summit at Lake Toya that will 
consist of some 800 officials, the largest scale of the 
participating countries. The Foreign Ministry has also confirmed 
that fact. As early as the beginning of the new year, the hotel 
management and the U.S. Embassy are expected to start negotiations 
to work out such details as the room charges and the like. 
 
According to sources, the Embassy notified the hotel late last week 
that the Grand Hotel would be used as the main lodging site. The 
U.S. side has already investigated the hotel's equipment and 
security aspects, and it has essentially made the selection. 
However, the entire delegation cannot be accommodated there, so the 
possibility is high that another hotel will be used for a portion of 
the delegation. 
 
At first, the Higashiyama Prince Hotel in Niseko-cho was seen as the 
favorite, but suddenly, the choice was boiled down to Noboribetsu 
Grand Hotel. The reasons seemed to be: 1) its track record for 
security, with the Showa Emperor having stayed there twice; 2) its 
historical connection to the Occupation's GHQ after the end of the 
war; 3) its name value as a representative hot-springs spa in Japan; 
and 4) its geographical superiority, being close to both New Chitose 
Airport and the main expressway. 
 
Noboribetsu Grand Hotel in 2008 will celebrate its 70th anniversary 
 
TOKYO 00000026  010 OF 010 
 
 
since its establishment. By the time of the lengthy holiday season 
in May prior to the Summit, such adjustments as remodeling guest 
rooms and changing the beds will be carried out. According to the 
Noboribetsu Tourist Association, with Japanese-style rooms being the 
main feature of Noboribetsu Spa, the Grand Hotel has the most 
Western-style rooms, approximately 90, and it can provide 
Western-style service to its guests. 
 
(6) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, and Nikkei: 
N.Y. crude oil prices briefly hit record 100 dollars 
 
Sankei: 
GSDF secret document found at Chinese man's apartment during police 
search in connection with drug case 
 
Tokyo Shimbun: 
Reformist governors to launch decentralization promotion federation, 
while seeking consent of nonpartisan lawmakers 
 
Akahata: 
Hard spring for 100,000 high school students not entitled to 
interest-free scholarships 
 
(7) EDITORIALS 
 
Asahi: 
(1) U.S. presidential campaign: We hope to see debate occur that may 
change the world 
(2) Let's prepare for flu by learning what it is like 
 
Mainichi: 
(1) Thinking of 2008: Let's establish a model country of mature 
country 
 
Yomiuri: 
(1) How to eliminate threat of North Korea 
 
Nikkei: 
(1) Way to a low carbon society: Grass-roots efforts will lead the 
government 
 
Sankei: 
(1) Stupidity of using tax and financial reforms as a campaign tool 
 
Tokyo Shimbun: 
(1) Thinking at the start of New Year: Embryonic movements leading 
to historic change 
 
Akahata: 
(1) Economic outlook for 2008: Dollar's supremacy now at turning 
point 
 
DONOVAN