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UNCLAS SECTION 01 OF 12 TOKYO 000028 
 
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 01/07/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Opinion polls: 
4) Asahi poll: 76 PERCENT  of Japanese agree the global environment 
is "sick" and 48 PERCENT  are willing to pay an increased "green 
tax" to protect the environment  (Asahi) 
5) Mainichi poll finds 46 PERCENT  of voters expect Democratic Party 
of Japan (DPJ) to win the Lower House in the next election, while 
only 33 PERCENT  see the LDP winning  (Mainichi) 
 
Political agenda: 
6) Prime Minister Fukuda postpones cabinet shuffle in order to 
prevent turmoil in the Diet  (Mainichi) 
7) DPJ's Naoto Kan say his party is likely to present a censure 
motion against the prime minister in March  (Asahi) 
8) Ruling camp wants to put off Diet dissolution and snap election 
until the fall or later, but DPJ determined to force an early 
dissolution in the spring  (Tokyo Shimbun) 
9) 768 political candidates prepared to run in the next Lower House 
election, with LDP, DPJ to clash head on in 218 districts 
(Mainichi) 
10) Government planning to establish a "consumer agency" to unify 
administration because of the rash of major fraud and deception 
cases  (Tokyo Shimbun) 
 
11) Government readying a "peace settling" contribution to Africa by 
initiating a program to cultivate PKO personnel  (Mainichi) 
 
Defense and security affairs: 
12) When Indian Ocean refueling restarts, government plans to sign 
official memos with recipient countries, including U.S., to ensure 
no diversion for other purposes  (Nikkei) 
13) Defense Ministry sounds out U.S. forces about postponing 
disclosure of oil supplying out of consideration for ongoing Diet 
deliberations  (Sankei) 
14) Next mid-term defense buildup program to be advanced one year 
and start in fiscal 2009  (Mainichi) 
15) MSDF's missile-intercepting warship deployed to Sasebo  (Nikkei) 
 
16) Bill to establish general law on overseas dispatch of SDF to be 
presented to the Diet in the fall extra session of the Diet  (Asahi) 
 
17) Government is considering easing three weapons-export 
restrictions to allow MD-related joint development  (Tokyo Shimbun) 
 
 
18) President of Abu Dhabi National Oil Company hints to visiting 
METI minister that Japan's oil-development rights may be extended 
(Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Subsidiary of Sagawa Express dispatches temporary employees 
dispatched by Goodwill: Labor Ministry decides to issue order to 
improve business practices 
 
TOKYO 00000028  002 OF 012 
 
 
 
Mainichi: 
Internal Affairs Ministry to introduce system of dispatching junior 
officials to municipalities throughout nation to let them experience 
harsh fiscal situation 
 
Yomiuri: 
Court decision to order volunteer activities, including cleaning, 
removing graffiti: Amendment bill to be introduced possibly this 
year 
 
Nikkei: 
Basic pension should be fully covered by consumption tax revenues: 
Nikkei Head Office report; Trustworthiness to be recovered with 
improved sustainability 
 
Sankei: 
Gradual price rises produce stagflation: Situation similar to oil 
crises in 1970s; Government finds it difficult to steer economy 
 
Tokyo Shimbun: 
Medical fees for elderly patients: Increase in share to be reduced 
again in fiscal 2008: Ruling parties considering easing drastic 
change 
 
Akahata: 
Contradiction in two major parties and public interests: Find 
breakthrough with advancement of Japanese Communist Party 
 
2) EDITORIALS 
 
Asahi: 
(1) Learn lessons for education from Apollo 13 
 
Mainichi: 
(1) Bush administration in 2008: From confrontation to 
reconciliation; Dialogue with people with different values urged 
 
Yomiuri: 
(1) New order: Japan-U.S. alliance is linchpin; Permanent law for 
dispatch of Self-Defense Forces personnel needed 
 
Nikkei: 
(1) Suprapartisan discussions urged before pension system collapses 
 
Sankei: 
(1) Space and global environment: Show presence with technical 
power; Satellite observation should be used to prevent global 
warming 
 
Tokyo Shimbun: 
(1) Thoughts at the start of the New Year 
 
Akahata: 
(1) Make 2008 year when athletes can display their real worth 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 4 
 
NIKKEI (Page 2) (Full) 
January 5, 2008 
 
TOKYO 00000028  003 OF 012 
 
 
 
08:20 
Met at Kantei with Deputy Chief Cabinet Secretary Futahashi, 
followed Chief Cabinet Secretary Machimura. 
 
09:30 
Held press conference. Attended ceremony to award the winner for 
logo for Toyako G-8 Summit. Me again with Futahashi. 
 
10:53 
Left Tokyo on JR Nozomi No. 181. Met on the train with Deputy Chief 
Cabinet Secretary Iwaki and Special Advisor to the Prime Minister 
Yamatani. 
 
12:36 
Arrived at JR Nagoya Station. 
 
12:40 
Met at the stationmaster's office with Internal Affairs and 
Communications Minister Masuda and Agriculture Minister 
Wakabayashi. 
 
12:50 
Left JR Nagoya Station on a Kintetsu limited express train. 
 
14:12 
Arrived at Kintetsu Ujiyamada Station. 
 
14:18 
Arrived at the grand Shrines of Ise. Paid respects at the Outer 
Shrine, accompanied by Masuda and Wakabayashi. 
 
14:47 
Paid respects at the Inner Shrine. 
 
15:28 
Received flowers from Ise Scout No. 7 of Scout Association of Japan 
and Girl Scouts Mie No. 1. 
 
16:15 
Left Kintetsu Ujiyamada Station on Kintetsu limited express. 
 
17:36 
Arrived at Kintetsu Nagoya Station. 
 
17:53 
Left JR Nagoya Station on Nozomi No. 34. 
 
19:10 
Arrived at JR Shin-Yokohama Station. 
 
19:43 
Returned to his private residence in Nozawa. 
 
Prime Minister's schedule, January 5 
 
NIKKEI (Page 2) (Full) 
January 6, 2008 
 
Morning 
Spent time at his private residence in Nozawa. 
 
 
TOKYO 00000028  004 OF 012 
 
 
16:00 
Met at his official residence with Deputy Chief Cabinet Secretary 
Futahashi. 
 
21:08 
Returned to his private residence in Nozawa. 
 
Prime Minister's schedule, January 6 
 
NIKKEI (Page 2) (Full) 
January 7, 2008 
 
Spend the whole day at his private residence in Nozawa. 
 
4) Poll: 76 PERCENT  see global environment as "sick" 
 
ASAHI (Page 2) (Abridged) 
January 7, 2008 
 
Three out of every four persons believe the earth is now "sick," the 
Asahi Shimbun found from its face-to-face public opinion survey 
conducted across the nation on Nov. 17-18 last year about public 
life and the earth's environment. More people think that the global 
environment is now worsening. More than 90 PERCENT  are worried 
about global warming. The Kyoto Protocol mandates Japan to reduce 6 
PERCENT  of its greenhouse gas emissions from 1990 levels. In the 
survey, 78 PERCENT  said Japan should do so without fail. As seen 
from these figures, the public is highly concerned about the 
environment. 
 
The survey probed public awareness of global warming, as well as the 
public's evaluation of society and human behavior. 
 
In the survey, the condition of the earth's environment was likened 
to human health. A total of 76 PERCENT  answered that they thought 
the earth was "seriously ill" or "ill." The proportion of those 
thinking the earth is seriously ill was 16 PERCENT , showing an 
increase from 7 PERCENT  in a previous survey taken 10 years ago and 
from 12 PERCENT  in a survey taken five years ago. 
 
A total of 92 PERCENT  were "very" or "somewhat" worried about 
global warming, with 93 PERCENT  feeling that climate change is 
already beginning with global warming. 
 
In the survey, respondents were further asked if they should change 
their lifestyle to prevent global warming. To this question, a total 
of 96 PERCENT  said "very much" or "somewhat." However, "very much" 
accounted for only 50 PERCENT . 
 
5) Poll: 46 PERCENT  want DPJ to win next general election 
 
MAINICHI (Top play) (Abridged) 
January 7, 2008 
 
The Mainichi Shimbun conducted a telephone-based public opinion 
survey in December last year. In that survey, respondents were asked 
which political party between the Liberal Democratic Party and the 
Democratic Party of Japan (Minshuto) they would like to see win in 
the next election for the House of Representatives. In response to 
this question, 46 PERCENT  opted for the DPJ, with 33 PERCENT 
choosing the LDP. "Other political parties" accounted for 13 PERCENT 
, and "no answer" at 9 PERCENT . In last July's election for the 
 
TOKYO 00000028  005 OF 012 
 
 
House of Councillors, the DPJ made great strides and the LDP 
suffered a crushing defeat. The DPJ is now outpacing the LDP. The 
figures show that the public is critical of the LDP due to the 
government's pension record-keeping flaws and the Defense Ministry's 
scandals. 
 
This question was asked in the last five surveys. The DPJ was above 
the LDP in all those surveys. In a survey taken in August last year 
right after the House of Councillors election, the DPJ stood at 44 
PERCENT , with the LDP at 37 PERCENT . As seen from these figures, 
the LDP was 7 points behind the DPJ. 
 
In the three surveys conducted between September and October, the 
gap narrowed to 4-5 points. In the latest survey, however, it 
increased to 13 points. 
 
Respondents were also asked which political party they supported. In 
response to this question, 26 PERCENT  chose the LDP, with 27 
PERCENT  opting for the DPJ. In view of these results, non-DPJ 
supporters also have expectations for the DPJ. 
 
6) Prime Minister Fukuda puts off cabinet shuffle, giving priority 
to avoiding political confusion 
 
MAINICHI (Page 2) (Excerpts) 
January 5, 2008 
 
Prime Minister Yasuo Fukuda decided to put off a cabinet shuffle he 
had planned to carry it out before the regular session of the Diet, 
which is slated to be convened on Jan. 18. The reason is that Fukuda 
has determined that the shuffling of cabinet members would not add 
to strengthening the cohesiveness of his government and that 
dissatisfaction would only grow in the Liberal Democratic Party 
(LDP), centering on those who did not get appointed as ministers. He 
wanted to make an effort to display his own political identity by 
shuffling his cabinet since approval ratings for his cabinet had 
plunged due to such issues as the pension-records mess, but in the 
end, he has decided to give up on his plan. Moreover, there is 
insufficient time left to shuffle the cabinet due to the tight 
political schedule. 
 
Fukuda said during his China trip late last year: "I want to give 
good consideration to next year's schedule. There are various views 
in the party. I think they are understandable." Apparently accepting 
calls for a cabinet shuffle in the LDP, he at that time expressed 
his intention to shuffle it before the start of the regular Diet 
session. 
 
7) DPJ plans to introduce censure motion against prime minister 
around March, says Deputy President Kan 
 
ASAHI (Page 2) (Full) 
January 7, 2007 
 
Concerning the possible introduction of a censure motion against the 
prime minister to the Upper House, Democratic Party of Japan (DPJ or 
Minshuto) Deputy President Naoto Kan on a TV talk show on Jan. 6 
revealed that his party is planning to do so around March, when 
budget deliberations in the regular Diet session are expected to 
come to a head. He said, "Our basic strategy is to corner the Fukuda 
administration in budget deliberations to dissolve the Lower House, 
backed by public opinion calling for a change of administration." 
 
TOKYO 00000028  006 OF 012 
 
 
Kan indicated a negative stance to the possibility of introducing a 
censure motion during the extraordinary Diet session, saying, "We 
will not automatically decide to introduce a censure motion just 
because the ruling camp has used its two-thirds majority to adopt 
the refueling assistance special measures legislation by putting it 
to a vote again in the Lower House." 
 
8) Influential ruling camp lawmakers making statements one after the 
other about Diet dissolution in the fall or later; Democratic Party 
of Japan continues endurance contest 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
January 7, 2008 
 
On the issue of the timing of the next House of Representatives 
election, influential lawmakers in the ruling parties have been 
making statements one after the other that is should be put off 
until after the G8 Summit at Lake Toya in Hokkaido. With the 
government and ruling parties at a disadvantage due to such issues 
as the missing pension records and the case of corruption by a 
former defense vice minister, their aim is to constrain the DPJ from 
becoming even more adamant for an early dissolution of the Diet. 
 
"Since we already have a two-thirds majority, the universal thinking 
(in the party) is the later the better (for an election)," said 
Liberal Democratic Party Secretary General Ibuki on an NHK 
television talk show on the 6th. He indicated that a Lower House 
election should be put off if possible. 
 
However, DPJ President Ozawa has said, "The earlier that Diet 
dissolution is carried out the better." He intends to press the 
government for an early dissolution. The DPJ plans to file a censure 
motion against the prime minister in March and try to force him to 
dissolve the Lower House. 
 
9) 768 preparing to run in next Lower House election; LDP, DPJ 
candidates to compete directly in 218 districts 
 
MAINICHI (Top Play) (Slightly abridged) 
January 5, 2008 
 
As of Jan. 4 at least 768 persons are now making preparations for 
filing their candidacies for the next House of Representatives 
election, according to a survey by the Mainichi Shimbun. The survey 
has found that the number of candidates to run in the race is 
expected to be greatly lower than the 1,131 who ran in the 2005 
Lower House election. The number is the lowest since 1996, when the 
mixed-electoral system of single-seat and proportional 
representation constituencies was established, and reflects the 
decision of the Japanese Communist Party (JCP) to change its policy 
of filing candidates in all the single-seat electoral districts 
across the nation. 
 
Chances are that the next Lower House election will be conducted 
before the end of this year. This will be the first large-scale 
election for Prime Minister Yasuo Fukuda since he took office. The 
focus will be on a battle between the ruling Liberal Democratic 
Party (LDP), which won a landslide victory in the previous race, and 
the largest opposition Democratic Party of Japan (DPJ or Minshuto), 
which leaped ahead in the 2007 House of Councillors election (to win 
control). 
 
 
TOKYO 00000028  007 OF 012 
 
 
A total of 701 candidates are expected to run in the single-seat 
electoral district races, and 67 (excluding candidates running in 
both single-seat and proportional representation constituencies) 
will seek to win proportional representation seats. The LDP will 
field 314 candidates -- 290 in the single-seat constituencies and 24 
in the proportional representation segment. 
 
The LDP basically intends to file candidates in all single-seat 
districts, excluding those in which the New Komeito is expected to 
field candidates. However, there still remain single-seat 
constituencies in which coordination is needed between incumbents 
and former "postal rebels." 
 
The DPJ, which does not allow its candidates to run in both 
single-seat and proportional representation constituencies, has now 
lined up 232 candidates, aiming at fielding about 270 in the end. 
However, the party has been delayed in selection candidates for the 
Tokyo and Kyushu areas. The LDP and DPJ are expected to face off in 
218 single-seat constituencies (including sponsored candidates), but 
the number will likely increase. 
 
10) Government considering the establishment of a "consumer agency" 
in order to unify administration as incidents of fraud and deceit 
continue 
 
TOKYO SHIMBUN (Top play) (Abridged) 
January 5, 2008 
 
The government in response to the rash of incidents involving fraud 
and deceit related to food items, housing, and the like, has decided 
to give consideration to establishing a "consumer agency" that would 
unify administration of consumer affairs now under each ministry. 
 
Administration of consumer affairs is now under the jurisdiction of 
the Cabinet Office, but specific responsibilities are under the 
Ministry of Health, Welfare and Labor (Food Sanitation Law) for such 
aspects as product shelf-life, and the Ministry of Agriculture, 
Forestry, and Fisheries (JAS or Japan Agricultural Standards Law). 
Such an arrangement has been pointed out to be a hindrance. 
 
The government is now proceeding with a complete examination of the 
current system, including the legislation that affects consumers. In 
order to protect consumers from being harmed by the series of fraud 
and deceit cases, the judgment has been made that it is necessary to 
unify consumer administration under one organ. 
 
The Liberal Democratic Party's (LDP) Research Committee on Consumer 
Affairs (chaired by Seiko Noda) also in an interim report expected 
to come out in March will call for the establishment of a consumer 
affairs agency in fiscal 2009. 
 
However, there are voices of caution about such a move, saying that 
setting up a new agency would run counter to administrative reform, 
so the possibility exists that the for the time being, the effort 
will stop at beefing up the administrative coordinating function of 
the Cabinet Office over the other ministries. 
 
11) Japan decides to assist in personnel training for PKO in Africa 
as part of "consolidation of peace" 
 
MAINICHI (Page 5) (Full) 
January 5, 2008 
 
TOKYO 00000028  008 OF 012 
 
 
 
Ken Uzuka 
 
The government decided to help train personnel for United Nations 
peacekeeping operations (PKO) in Africa. This aid is intended to 
bring into shape "consolidation of peace," a major subject for the 
upcoming 4th Tokyo International Conference on Africa's Development 
(TICAD) in Yokohama slated for May. The government will announce 
this aid as its new international contribution. It plans to 
facilitate peace-building by helping to educate and train personnel 
from African nations. 
 
When it comes to PKOs in Africa, preparations are underway to send 
the largest number of personnel (some 26,000 persons) to Sudan where 
the Darfur dispute is serious, and there are also PKOs in Liberia 
and Cote d'lvoire. 
 
The conditions for Japan to send its Self-Defense Forces (SDF) 
abroad under the PKO Cooperation Law include the existence of an 
agreement on a cease-fire and the affected countries' consent to the 
dispatch of the SDF. Because Japan is not allowed to mobilize the 
SDF in an area of strife, it has decided to give help to PKO centers 
in five locations, including Kenya. 
 
Specifically, Japan plans to provide police officers and military 
personnel from African countries knowledge and technology related to 
(1) the International Humanitarian Law, (2) emergency medical care, 
and (3) removal of land mines. 
 
"This will be a new type of assistance to PKOs that will not be 
involved in disputes," a senior Foreign Ministry official said. 
Japan will explain the idea and results of this aid to the 4th 
TICAD. Japan will appropriate 1.8 billion yen for this aid in its 
2007 supplementary budget and provide it via the UN Development 
Plan. 
 
12) Japan to exchange notes banning fuel diversion 
 
NIKKEI (Page 1) (Abridged) 
January 7, 2008 
 
The Diet is now certain to enact a new antiterror bill in order for 
Japan to resume the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. Meanwhile, the government decided to 
exchange official notes with foreign countries to prevent 
MSDF-supplied fuel from being used for other purposes. The 
government will ask these countries to provide information about 
their vessels receiving MSDF fuel and will record MSDF fuel supplies 
to these foreign vessels. 
 
The House of Councillors, where the opposition parties hold a 
majority of the seats, is about to vote down the new legislation. 
After that, the House of Representatives is expected to vote again 
on the bill and the ruling parties will enact it by a majority of 
two-thirds. The government will ready the MSDF to resume refueling 
activities as soon as the bill clears the Diet. 
 
The exchange of notes is intended to confirm intergovernmental 
agreements. The new bill limits the MSDF's refueling mission to 
maritime interdiction operations (MIO) conducted in Afghanistan for 
antiterror mop-up operations. The government will specify this in 
its official notes so that MSDF-supplied fuel will not be used for 
 
TOKYO 00000028  009 OF 012 
 
 
other military operations. 
 
The MSDF carried out refueling activities under the Antiterror 
Special Measures Law that expired in November last year. 
MSDF-supplied fuel, however, was allegedly used for U.S. military 
operations against Iraq. The opposition parties grilled the 
government over this allegation in the Diet during its current 
session. The government had exchanged official notes with 11 
countries on these refueling activities. However, those exchanges of 
notes did not specify anything in detail to prevent fuel diversion. 
 
The Defense Ministry plans to stage an MSDF fuel supply ship in the 
Indian Ocean in late February after the new bill is enacted into 
law. Ahead of MSDF refueling activities there, the Foreign Ministry 
would like to exchange official notes with the United States, 
Britain, France, Germany, New Zealand, and Pakistan. 
 
13) Defense Ministry found to have put out feeler to U.S. last fall 
about possibility of delaying fuel information disclosure: Out of 
concern about impact on Diet deliberations? 
 
SANKEI (Page 1) (Excerpts) 
January 7, 2008 
 
Question-and-answer sessions were held in the Diet in October last 
year over the use of the fuel Maritime Self-Defense vessels supplied 
to U.S. warships in the Indian Ocean. In a related development, 
Sankei Shimbun learned on Jan. 4 that a senior Defense Ministry 
official informally sounded out the U.S. as to whether it would be 
possible to delay procedures for disclosing information on the U.S. 
warships involved. The official appears to have floated the 
suggestion out of concern about the possible impact of the 
disclosure of such information on Diet deliberations. However, the 
U.S. forces reportedly disclosed the information, based on its 
regular investigative process. 
 
According to a Defense Ministry source, the official met at the 
Defense Ministry in October last year with U.S. forces Japan 
visitors. On that occasion, the U.S. was receiving a flurry of 
requests for disclosure of the logbooks of its Navy warships that 
have been participating in Operation Iraqi Freedom, and the Defense 
Ministry also receiving requests for disclosing information on 
logbooks of MSDF warships dispatched to the Indian Ocean. 
 
The Defense Ministry during the meeting sounded out the U.S. 
military officers as to a possibility of the U.S. taking more time 
in disclosing the information by investigating more cautiously. The 
U.S. side reportedly stopped short of making a clear-cut reply. 
 
Since late September last year, Japan's Peace Depot and other civic 
groups have been asking the U.S. to disclose information in 
compliance with its Information Disclosure Act via the Internet or 
by air mail. The records of the activities of the U.S. Navy's 
warships disclosed have given rise to the suspicion that U.S. oilers 
that received fuel from a MSDF supplier in the Indian Ocean refueled 
U.S. aircraft carriers that took part in the Operation Iraqi 
Freedom, an activity the Anti-terrorism Special Measures Law does 
not envisage. 
 
Opposition parties had harshly pursued factual situations to bring 
the matter to light. 
 
 
TOKYO 00000028  010 OF 012 
 
 
The senior official who sounded out the U.S. military was in a 
position of receiving reports through the MSDF on requests for 
information disclosure that the Peace Depot had filed. This official 
said that he did not have personal information on the persons who 
had made the requests, saying that he had not received a report on 
whether the requests were made by persons connected to civic groups 
or not. 
 
14) Government, ruling parties to shorten current Midterm Defense 
Buildup Program by one year to play up their reform-oriented 
posture 
 
MAINICHI (Page 1) (Excerpts) 
January 5, 2008 
 
The government and ruling parties decided yesterday to draw up the 
next Midterm Defense Buildup Program, the country's defense plan 
stipulating its total defense outlays and defense equipment policies 
for a five-year period, one year earlier. The plan is to make fiscal 
2009 the initial year for the next program by shortening the current 
program covering fiscal 2005-2009 by one year. The aim is to play up 
the government's reform posture in the wake of a series of scandals 
involving the Ministry of Defense. Cuts in the number of personnel 
and procurement costs will be the focus. 
 
The current five-year program was adopted by the cabinet in December 
¶2004. The total defense outlay for the program covering fiscal 
2005-2009 is set at 24.24 trillion yen, including the introduction 
of the next-generation mainstay combat aircraft. 
 
But MOD has been hit by a series of improprieties, such as a bribery 
case involving former Administrative Vice-Defense Minister Takemasa 
Moriya and a leak of data on the Aegis system. Establishing the MOD 
Reform Council last December, the government has been discussing a 
review of the defense procurement system, information security, 
securing civilian control, and other matters. 
 
A senior MOD official said: "The government should draw up the next 
Midterm Defense Buildup Program ahead of schedule to reflect 
full-fledged organizational reform in it." The government and ruling 
parties intend to put together the defense program for the next term 
by late fiscal 2008 based on an organizational review interim report 
to be produced by the MOD Reform Council in February. 
 
15) Antimissile destroyers to be deployed at Sasebo 
 
NIKKEI (Page 2) (Full) 
January 5, 2008 
 
The Maritime Self-Defense Force's Aegis destroyer Kongo returned to 
its home port in Sasebo yesterday after a successful missile 
interception test with a Standard Missile-3 (SM-3) system last month 
in airspace over the Pacific Ocean near Hawaii. It will play a role 
in intercepting incoming missiles at sea in a missile defense (MD) 
system. 
 
The Ministry of Defense plans to install SM-3 missiles on three 
Aegis destroyers to establish a system of four ships: three in 
Sasebo and Maizuru on the Sea of Japan side and one in Yokosuka on 
the Pacific Ocean side. 
 
16) Government envisions submission of permanent legislation for SDF 
 
TOKYO 00000028  011 OF 012 
 
 
overseas activities to extraordinary Diet session set for fall 
 
ASAHI (Page 2) (Excerpts) 
January 6, 2008 
 
Keiichi Kaneko 
 
The government decided to start full-fledged discussion on general 
legislation (permanent law) that would allow the Self-Defense Forces 
(SDF) to operate abroad beyond the framework of United Nations 
peacekeeping operations, envisioning a submission of such 
legislation to the extraordinary Diet session slated for the fall. 
The legislation would allow the government to dispatch the SDF 
abroad if there are UN resolutions or requests from international 
bodies, but it would mandate the government to obtain prior approval 
of the dispatch from the Diet. In this connection, the government 
intends to discuss the relaxation of weapons-use criteria. The 
government intends to enter discussion with the ruling bloc about 
these ideas. On this sort of general legislation, the ruling 
(Liberal Democratic Party (LDP)) already reached agreement in 
party-head talks last year with the major opposition Democratic 
Party of Japan's (DPJ) President Ichiro Ozawa on the view that such 
legislation would be necessary. The government intends to call on 
the DPJ to join policy discussion on the legislation. 
 
Prime Minister Fukuda in his New Year's press conference on Jan. 4 
stressed the need for the general legislation, noting: "I think it 
is a good idea to establish a system for Japan to proactively and 
swiftly take part in international peace cooperation. In order to 
realize that, an idea of creating a permanent law has been 
previously floated. I, too, have a similar idea." Expressing his 
hope for the Diet to have a lively debate on such a law, Fukuda 
said, "I hope to see the Diet fully discuss what system will be good 
for the assumption of various activities." 
 
17) Government considering relaxing three rules banning weapons 
exports to allow joint development 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
January 6, 2008 
 
The government began discussions yesterday on relaxing the country's 
three principles banning weapons exports. Under discussion is the 
option of lifting the ban on jointly developing and producing 
weapons with other countries and exporting weapons to such 
countries. Currently the only exception is Japan's joint project 
with the United States on missile defense (MD). The government's 
Ministry of Defense (MOD) Reform Council will conduct full-fledged 
discussions on the matter in tandem with a review of the defense 
equipment procurement system. 
 
The government first came up with the three principles in 1967 
prohibiting the country from exporting weapons to communist 
countries and warring parties only. In 1976, the government expanded 
the area of prohibition, totally banning exports in effect. 
 
At present, the only exception to the rules is the exporting of 
parts to the United States under an agreement on joint development 
of MD technology. 
 
However, in the process of Reform Council discussion of the scandal 
involving a former vice-defense minister, it was pointed out that 
 
TOKYO 00000028  012 OF 012 
 
 
Japan's defense equipment procurement costs are higher than any 
other countries. The government thinks that if Japan is allowed to 
engage in joint development with other countries, the arrangements 
would help increase the international competitiveness of Japan's 
defense industry and lower the high cost of defense-equipment 
development. It would also pave the way for Japan joining joint 
development of the next-generation F-35 fighter jet being carried 
out by Western countries. 
 
For this reason, there has been a view in the government and the 
Liberal Democratic Party that the government should allow the 
country to engage in joint development with Western countries by 
returning the scope of application of the three principles to the 
original version. 
 
There has also been a request from the United States to lift the ban 
on weapons exports. 
 
18) Abu Dhabi Oil Co. CEO hints at extending Japan's concession 
rights in meeting with Japanese METI minister 
 
NIKKEI (Page 3) (Full) 
January 7, 2008 
 
Kazuki Kagaya 
 
Minister of Economy, Trade and Industry (METI) Akira Amari, now 
visiting Abu Dhabi in the United Arab Emirates, yesterday met with 
Abu Dhabi National Oil Company C.E.O. Yusuf. The company president 
said, "We are asking Japanese firms to continue to be involved in 
oil development," implying he would allow four Japanese oil 
companies, including Abu Dhabi Oil Company, a subsidiary of Cosmo 
Oil, to extend and expand such rights. Those companies' concession 
rights are to expire in 2012 one after another. 
 
During a press briefing held at the end of his tour of that country, 
Amari revealed that when he met with Crown Prince Sheikh Mohammed 
bin Zayed al-Nahayan on Jan. 5, the crown prince made a similar 
request. Amari continued: "This is the first time I've heard such 
positive comments from high-level persons about the future of oil 
concession rights." 
 
Japan procures one million barrels, one-fourth of its total imported 
oil, from Abu Dhabi. Of that amount, Japan obtains some 350,000 
barrels from oil fields it independently developed. The Abu Dhabi 
government-affiliated International Petroleum Investment Co. (IPIC) 
last year decided to take a 20 PERCENT  stake in Cosmo Oil. 
 
Amari also met with UAE Energy Minister al-Hamili and the two shared 
the concern about soaring oil prices that exceeded 100 dollars per 
barrel. They also shared the perception that it is important that 
oil producing countries will promote oil development, while oil 
consuming countries will work on stabilizing oil prices through 
energy-saving efforts. 
 
DONOVAN