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UNCLAS SECTION 01 OF 13 TOKYO 000278 
 
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//08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Refueling mission: Government exchanges of notes with U.S., other 
countries operating in Indian Ocean ban diversion of fuel for other 
purposes  (Asahi) 
5) Heated mayoralty race in Iwakuni City centered on issue of 
relocation of U.S. Navy carrier-based jets to local base  (Mainichi) 
 
6) Road revenue resources being tapped to build U.S. armed forces' 
housing at Sasebo for 2.5 million yen per unit  (Akahata) 
7) Defense ministry firms up new equipment procurement system that 
would allow direct purchases  (Mainichi) 
8) Ruling parties ready to launch project team to prepare permanent 
SDF dispatch legislation  (Sankei) 
 
9) Prime Minister takes lead in "Killer dumpling" issue  (Nikkei) 
 
10) Four African countries picked as candidates to first $10 billion 
tranche of Japan's environmental aid program  (Tokyo Shimbun) 
 
11) Joint gas-field development scheme between Japan, China would 
split the benefits down the middle  (Nikkei) 
 
12) Japanese police authorities ready to file charges against those 
who impede research whaling, including two incidents last year when 
crewmen were hurt  (Sankei) 
 
13) Russia plans to invest fund money into Japanese stocks 
(Nikkei) 
 
Diet affairs: 
14) Supplementary budget bill to pass the Diet on Feb. 6  (Nikkei) 
 
15) Early dissolution of the Diet becoming unlikely as both camps 
are yet unprepared to run a full slate of Lower House candidates 
(Nikkei) 
16) Democratic Party of Japan's Naoto Kan on TV takes positive view 
about revising parts of controversial bill  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun 
Poisoning from Chinese gyoza dumplings: Pesticide residues found 
from six more packets manufactured same day when one caused 
poisoning in Hyogo; Hole found in one packet 
 
Nikkei: 
Japan-China joint gas field development in East China Sea: 
Governments of both countries to aim at reaching agreement to divide 
total profits equally, in principle 
 
Akahata: 
Special-purpose road construction revenues: Mid-term plan worth 59 
trillion yen: Policy Committee Chairman Koike calls for using road 
funds for other purposes 
 
TOKYO 00000278  002 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Mechanism of protecting nursing-care givers as well: Proposals 
for hopeful society; Attractive workplace to attract nursing-car 
givers; Reciprocal support, by having more young people contribute 
to nursing-care insurance 
 
Mainichi: 
(1) We want to see next-generation communications network lead to 
shoring up Japan 
(2) Births by surrogate mothers: Collecting data is not only 
challenge by editorial member Yuri Aono 
 
Yomiuri: 
(1) Reform of public servant system: Bureaucratic society must be 
revitalized 
(2) Return of democratic government in Thailand: Can new 
administration restore stability? 
 
Nikkei: 
(1) Do not miss opportunity to take part in fierce competition for 
international standard 
 
Sankei: 
(1) Proposals for public servant system question prime minister's 
seriousness 
(2) New type of flu is challenge that is equally difficult to 
anti-terror measures 
 
Tokyo Shimbun: 
(1) Reform of public servant system: Watered-down bill unacceptable 
(2) Who is job card system for? 
 
Akahata: 
(1) Going ahead with medical services system for elderly patients 
aged over 75 in April impermissible 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 1 
 
NIKKEI (Page 2) (Full) 
February 2, 2008 
 
09:01 
Attended a cabinet meeting in the Diet building. Foreign Minister 
Koumura stayed behind. 
 
09:56 
Met METI Vice Minister Kitabata at the Kantei. 
 
10:40 
Met Assistant Deputy Chief Cabinet Secretary Saka. Followed by Vice 
Foreign Minister Yabunaka. Later, met Australian Foreign Minister 
Smith. 
 
11:28 
Met Lower House members Taku Yamasaki and Koichi Kato. Followed by 
Deputy Chief Cabinet Secretary Futahashi. 
 
 
TOKYO 00000278  003 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
14:29 
Met Futahashi. Later, met Saka, Cabinet Office People's Livelihood 
Bureau Director General Nishi, Agriculture Ministry Consumers Safety 
Bureau Director General Sato, Foreign Ministry Asian and Oceanian 
Affairs Bureau Director General Saiki, and others. 
 
15:56 
Met Cabinet Intelligence Director Mitani. Then met Policy Research 
Council Chairman Tanigaki, head of the LDP emergency headquarters on 
safety of imported food, and others. Followed by Vice Minister of 
Finance for International Affairs Shinohara. 
 
17:21 
Met New Komeito Deputy President Hamayotsu and Prop Station 
President Nami Takenaka. 
 
18:17 
Met LDP Reform Promotion Headquarters Head Takebe. 
 
19:22 
Met Futahashi at his official residence. 
 
Prime Minister's schedule, February 2 
 
NIKKEI (Page 2) (Full) 
February 3, 2008 
 
10:04 
Arrived at his private residence in Nozawa. 
 
17:42 
Dined at an Italian restaurant in Minami-Aoyama with his wife, 
Kiyoko, and his secretary. 
 
19:27 
Returned to his official residence. 
 
Prime Minister's schedule, February 3 
 
NIKKEI (Page 2) (Full) 
February 4, 2008 
 
Spent all day at his official residence 
 
4) Japan to exchange notes with U.S., other countries on 'no fuel 
diversion' 
 
ASAHI (Page 1) (Full) 
February 3, 2008 
 
Japan will now resume the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean, and the government will exchange 
official notes with foreign countries under a newly enacted special 
measures law for the MSDF's refueling support. MSDF fuel provided 
under an old special measures law was allegedly used for other 
purposes, so the official note expressly stipulates that the MSDF's 
fuel supply is limited to use for maritime interdiction operations 
that are intended to prevent weaponry and drug trafficking. Japan 
has already agreed with the United States, Britain, France, and 
Pakistan. The government will make a cabinet decision on Feb. 6 to 
adopt the note. After that, Japan will sign it with these four 
countries. Japan is now negotiating with Canada and Germany as 
 
TOKYO 00000278  004 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
well. 
 
The official note to be exchanged is a document describing bilateral 
arrangements between the Japanese government and foreign countries 
on the MSDF's free fuel supply to their vessels participating in 
Operation Enduring Freedom and Maritime Interdiction Operations 
(OEF-MIO) in Afghanistan and its environs. The official note this 
time says Japan will proactively contribute on its own to the 
international community's efforts by providing fuel to vessels 
engaged in antiterror maritime interdiction operations. With this, 
the note clearly prohibits MSDF fuel from being used for military 
operations in Iraq and for any other purposes. 
 
The exchange of notes, which was concluded under the old 
antiterrorism special measures law, did not expressly stipulate that 
MSDF fuel must be used for antiterror operations only and must not 
be used for any other purposes. Therefore, MSDF fuel provided to a 
U.S. oiler was disclosed to have been supplied to a U.S. naval ship 
that later engaged in Iraq operations. 
 
In addition, the new exchange of note prescribes bilateral 
consultations between Japan and its signatories in order to 
implement this note in an effective manner. With this, the note 
expressly stipulates that Japan will step up bilateral cooperation. 
 
Meanwhile, the question is whether foreign vessels will use MSDF 
fuel after receiving it. Japan has no choice but to entrust this 
matter to their governments. The Japanese government does not have 
any specific power to check them later. Foreign naval vessels could 
be doubly tasked with OEF activities and Iraq operations. Refueling 
in this case, however, is not prohibited under the new antiterrorism 
special measures law. 
 
As another measure to prevent fuel diversion, the government will 
also introduce a new system, under which an MSDF liaison officer 
will hear from foreign governments about the schedules of their 
vessels. If their schedules are ambiguous, the defense minister will 
then make a final decision on the advisability of refueling foreign 
vessels, according to government sources. 
 
5) Fukuda-Ihara battle kicks off for Iwakuni mayoral race 
 
MAINICHI (Page 1) (Abridged slightly) 
February 4, 2008 
 
The official campaign kicked off yesterday for the mayoralty 
election in Iwakuni, Yamaguchi Prefecture. The biggest campaign 
issue is the U.S. plan to relocate carrier-based fighter jets to the 
base in the city. Former LDP House of Representatives member 
Yoshihiko Fukuda, who supports the plan, and former Mayor Katsusuke 
Ihara, who opposes the plan, filed their candidates for the election 
on Feb. 10. A by-election will also take place on April 27 in 
Yamaguchi No. 2 constituency due to Fukuda's resignation as a Lower 
House member. The outcome of the race in Iwakuni, a large bloc of 
votes for No. 2 constituency, is likely to affect the by-election as 
well. 
 
In reaction to U.S. force realignment, the city conducted a 
referendum in March 2006 and a mayoralty race in April 2006 
following the merger with its neighboring municipalities. This is 
the third time for the city to go to the polls. In the referendum, 
some 87 PERCENT  of residents opposed the relocation of the jets. 
 
TOKYO 00000278  005 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
Ihara, in the previous mayoral race, won by a large margin. 
 
The race this time was triggered by the government's decision in 
December 2006 to freeze 3.5 billion yen in subsidies for the 
construction of a new city hall, citing the city's opposition to the 
relocation. The municipal assembly voted down four times then Mayor 
Ihara's budget plans to make up for the lost subsidies. As a result, 
Ihara resigned as mayor last December to "seek the will of the 
people." 
 
Fukuda has pledged that he will negotiate with the central 
government regarding specific issues, such as possible noise 
resulting from the relocation and other security matters, without 
agreeing to the government's views at all times. "I will stake my 
political life on the race. Let us change Iwakuni," Fukuda said in a 
campaign speech yesterday. 
 
Ihara, on the other hand, criticized the government regarding the 
relocation, saying, "The freeze on the subsidies for the city hall 
is clearly a violation of their promise. The relocation plan 
concerns the very foundation of central and local governments. I am 
prepared to directly negotiate with Prime Minister Fukuda on the 
matter to bring an early settlement to it." 
 
6) U.S. forces' housing built in Sasebo, Nagasaki, financed with 
special-purpose road construction revenues: 250 million yen per 
unit, as U.S. Navy planned originally 
 
AKAHATA (Top Play) (Abridged) 
February 2, 2008 
 
Shimbun Akahata has learned that although the U.S. Navy in Japan had 
planned to build housing accommodations for naval officers, using 
host-nation support funding for the U.S. forces stationed in Japan 
(the so-called "sympathy budget" allocations), the facilities were 
actually built by the Ministry of Land, Infrastructure and 
Transportation (MLIT) at a total cost of approximately 2.8 billion 
yen, drawn from special-purpose road construction revenues but 
allocated for use by the U.S. forces. The government has complied 
with a long-standing U.S. forces' request for such construction 
under the pretext of the relocation of U.S. military housing 
accompanying the construction of expressways. The case has raised 
the question whether outlays of road-related funds for such a 
purpose was appropriate. 
 
The housing in question is Fiddlers' Green, a U.S. military housing 
complex built in 2007 and located in Kompira-cho, Sasebo City. A 
slope abutting a road was developed at the cost of 1.4 billion yen. 
It has a castle-like wall revetment, which is 14 meters high at the 
highest point. There are eight blocks with 11 apartments in each 
block on a site of approximately 12,000 square meters. The 
construction cost per unit is approximately 250 million yen. 
 
The MLIT Nagasaki River and National Road Office explained that the 
facilities were financed with road funds to replace U.S. forces' 
housing to be demolished following the acquisition of the site for 
the construction of a Nishi-Kyushu Express Way. The Japan-U.S. joint 
committee in May 2004 agreed on a basic housing construction plan. 
The housing was then built with the Nagasaki River and National Road 
Office repeatedly carrying out detailed coordination with the U.S. 
Navy. 
 
 
TOKYO 00000278  006 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
However, it was found that the U.S. Navy had already planned to 
build housing at this state-owned land in its Sasebo Bay U.S. Navy 
Facilities Master Plan, mapped out in September 1990, when the route 
of the express way had not yet been decided. The Japanese government 
included in a list of facilities to be constructed under the 
sympathy budget, six Fiddlers' Green family houses at the cost of 2 
million dollars. (U.S. forces' data as reported by Hiromichi 
Umebayashi in "U.S. forces stationed in Japan as learned under the 
Freedom of Information Act." 
 
7) Defense Ministry's import control office to enter into direct 
contracts for procurement 
 
MAINICHI (Page 1) (Full) 
February 3, 2008 
 
The Defense Ministry, which began in October last year to study 
measures to reform its procurement system for the Self-Defense 
Forces, outlined a conceptual plan yesterday. The plan features 
setting up a new import and procurement section in its Equipment 
Procurement and Construction Office (EPCO), a body directly under 
the defense minister. In addition, the plan also proposes 
strengthening the ministry's functions to check its procurement with 
certified public accountants and other experts from outside the 
ministry. The ministry's project team, chaired by Parliamentary 
Defense Secretary Minoru Terada, will finalize and release the plan 
within the current fiscal year. 
 
The project team's reform plan lays emphasis on reducing the 
involvement of trading companies, reflecting on a number of scandals 
that involved the Defense Ministry. Specifically, Yamada 
Corporation, a trading company dealing in defense equipment, padded 
bills to the ministry. The ministry has imported equipment through 
trading houses. However, the ministry will newly set up an import 
control section consisting of certified public accountants and other 
outside specialists. This newly planned office will directly enter 
into contracts with overseas manufacturers. For the time being, the 
ministry will ask trading firms to provide information. However, the 
ministry intends to raise the percentage of direct contracts. 
 
The Defense Ministry will also inquire of overseas manufacturers 
about trading firms' estimates of equipment so as to prevent them 
from fabricating estimates. In addition, the ministry will impose 
penalties on trading companies against overbilling. The ministry 
used to purchase defense equipment during several fiscal years. 
However, the ministry will purchase equipment at a time to attain a 
reduction of 5 PERCENT  in its cost of procurement over the next 
five years. 
 
8) Ruling coalition to launch project team this month for permanent 
SDF dispatch law 
 
SANKEI (Page 2) (Abridged) 
February 4, 2008 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
will hold a preparatory meeting its project team on Feb. 6 to create 
a permanent law allowing Japan to send the Self-Defense Forces on 
overseas missions whenever necessary. The project team will be 
launched within the month. Its chair is former LDP Vice President 
Taku Yamasaki, currently chairman of the LDP Research Commission on 
Foreign Affairs. Its members include Gen Nakatani, chairman of the 
 
TOKYO 00000278  007 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
LDP Research Commission on Security Affairs, and others who once 
served as defense chief. The project team will also have former 
Parliamentary Vice Defense Minister Natsuo Yamaguchi from New 
Komeito. 
 
New Komeito, which upholds itself as a party for peace, has remained 
cautious about the idea of creating a permanent law for SDF missions 
overseas because its backer, Soka Gakkai, was negative about sending 
SDF troops overseas. However, Prime Minister Yasuo Fukuda and 
Democratic Party of Japan (Minshuto) President Ichiro Ozawa met last 
fall and then took up permanent legislation in their "grand 
coalition" initiative. New Komeito therefore feared that the LDP and 
the DPJ could go on without New Komeito. 
 
Given such circumstances, New Komeito early this year kicked off an 
intra-party full-fledged discussion of the permanent legislation, in 
an aim to lead discussions in the ruling coalition, according to New 
Komeito sources. 
 
9) Prime Minister takes lead to deal with poison-laden gyoza 
dumplings, since bureaucrats slow to act 
 
NIKKEI (Page 2) (Excerpts) 
February 3, 2008 
 
Prime Minister Yasuo Fukuda has instructed relevant government 
officials to speed up discussions of integrating consumer 
administration. This move reflects Fukuda's judgment that given the 
current criticism of the government for its delay in dealing with 
the rash of poison-laden Chinese-made dumplings, it is necessary to 
take action swiftly to cap the issue, as well as to revamp the 
current food administration system. Fukuda will establish a panel in 
the Prime Minister's Official Residence (Kantei) to deal with the 
problem, with a spring deadline for reaching its conclusions. 
However, cautious views are coming from relevant ministries and 
agencies, as well as business circles. The Prime Minister has 
referred to (unifying consumer administration) as his "showcase 
policy," but his leadership in this area is soon to be tested. 
 
"Why are you so slow to take action?" On the afternoon of Feb. 1, 
Fukuda stormed at bureau directors-general from the Cabinet Office, 
the Ministry of Agriculture, Forestry and Fisheries (MAFF), and the 
Ministry of Foreign Affairs (MOFA), when they visited Fukuda to tell 
him that they remained unable to take action because the causes of 
the problem had yet to be figured out. Fukuda told them to 
thoroughly implement safety measures, for instance, by expanding the 
scope of import products subject to inspections beside dumplings. 
 
Growing criticism of government's slow action 
 
On the night of Jan. 31, when he was informed of the problem, Fukuda 
did not appear to be taking it so seriously. He told reporters: "I 
think relevant government offices will deal with it after fully 
investigating why it occurred." But his attitude grew severed as 
criticism mounted that the government's delay in dealing with the 
problem had led to a spreading of the problem, some complaining that 
a month had gone by since the problem erupted before the government 
announced the problem after its occurrence 
 
The approval ratings for the Fukuda administration plunged at the 
end of last year linked to its delay in dealing with the problem of 
false records of pension premium payments and the lawsuit against 
 
TOKYO 00000278  008 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
the government by drug-infected hepatitis C patients. Fukuda's 
decision to take the lead in discussion of unifying consumer 
administration reflects a sense of crisis that his administration 
could be in dire straits if it failed to unify consumer 
administration. Merging consumer administration is the issue that 
Fukuda plans to focus his energies on as a showcase policy for his 
administration. 
 
Fukuda was so highly motivated by his desire to unify consumer 
administration that he mentioned it at the beginning of his recent 
Diet policy speech, but the Cabinet Office's Quality-of-Live Policy 
Bureau, which was tasked with examining the task, was slow to act. 
Fukuda complained that the bureau "lacks speed." 
 
On the night of Feb. 1, Fukuda declared his intention to set up in 
Kantei a "consumer administration promotion headquarters," which 
will be composed of relevant cabinet members and experts, to discuss 
specific measures to unify consumer administration. It was supposed 
to reach a conclusion in June, but Fukuda instructed that the report 
be ready much earlier. 
 
10) Government picks four African countries as candidates for first 
tranche of financial aid to counter global warming 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 4, 2008 
 
The government chose yesterday Nigeria, Madagascar, Senegal, and 
South Africa as countries to which Japan will provide the first 
tranche of its grant aid and yen loan package amounting to 10 
billion dollars (approximately 1.07 trillion yen) to help them 
counter global warming. 
 
The four countries have seriously suffered from natural disasters 
and crop damage caused probably by global warming. The government 
will sent this week a mission of Foreign Ministry International 
Cooperation Bureau officials to discuss aid measures for forest 
preservation and drought and flood. 
 
Prime Minister Yasuo Fukuda announced the so-called Fund Mechanism 
last month at the annual meeting of the World Economic Forum (Davos 
Conference). The government will host the fourth Tokyo International 
Conference on African Development (TICAD) in May in Yokohama, along 
with the United Nations and World Bank. The government has placed 
top priority on its support for African nations since global warming 
and African development will become main topics of discussion at the 
July Group of Eight summit at Lake Toya in Hokkaido. 
 
11) Japan, China plan to split profits from joint development of gas 
fields in East China Sea 
 
NIKKEI (Top Play) (Abridged) 
February 4, 2008 
 
The government unveiled a joint development plan, now under 
negotiations between the governments of Japan and China in an effort 
to resolve the standoff over gas filed development in the East China 
Sea. Both sides are considering evenly dividing profits from joint 
development. On the areas subject to joint exploration, no agreement 
has yet to be reached. Japan has proposed that the areas should 
include sites that straddle the Japan-claimed median line separating 
Japanese and Chinese territorial waters. The two countries aim to 
 
TOKYO 00000278  009 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
reach a settlement based on a two-step approach - reaching an 
agreement on basic conditions first and then determining details, 
such as the sites for joint exploration, under a treaty they would 
conclude. 
 
The two countries expect to resume vice minister-level talks in 
February in anticipation of having an agreement on basic terms in 
place prior to Chinese President Hu Jintao's planned visit to Japan 
this spring. Later, working-level meetings will be held to hammer 
out the details of the treaty. They think that signing a treaty is 
necessary to give legal endorsement to the agreement. 
 
Japan and China have been at loggerheads over the demarcation of 
their respective exclusive economic zone. Japan insists that the 
line equidistant from the land territory of Japan and China as the 
median line, but China does not recognize it. While putting aside 
this territorial issue, both sides will engage in negotiations to 
translate joint oil field development into action. 
 
Under the plan, (1) Japan would invest more than 50 PERCENT  in gas 
fields closer to it, while China would also invest more than 50 
PERCENT  in sites closer to it; and (2) The share of profit from 
each gas field would be determined according to the ratio of 
investment. To prevent a significant difference from being caused in 
profits for both countries, they will work out details on what gas 
fields should be selected and how to set the areas subject to joint 
development. 
 
Japan and China are also negotiating on the gas fields which China 
has independently developed near the median line, such as the 
Chunxiao oil and gas field. China asserts that only the areas on the 
Japanese side from the median line should be subject to joint 
development, refusing Japan's proposal. China has made a compromise 
to hold negotiations on Japan's proposal as of now, but it has yet 
to agree to it. 
 
Japan has proposed to pay half of the money China has already 
invested in order to include the gas fields under development by 
China in joint development projects. But China has not accepted this 
proposal. 
 
12) MPD envisions building a case concerning obstruction of whaling 
as crew members injured in two obstruction cases last year 
 
SANKEI (Page 1) (Full) 
February 4, 2008 
 
It was learned yesterday that the Tokyo Metropolitan Police 
Department (MPD) is conducting an investigation into the United 
States environmental protection group Sea Shepherd, which in this 
past January, had obstructed Japan's research whaling by throwing 
bottles containing chemicals at a Japanese research whaling ship, on 
charge of forcible obstruction of business for throwing bottles of 
chemicals at a Japanese research whaling ship and injuring crew 
members in last February. It is unusual for the Japanese police to 
investigate the act of obstruction conducted in international 
waters. The Public Security Department already confirmed through the 
owner of the research vessel that the vessel was obstructed by Sea 
Shepherd, and it is investigating into who actually engaged in the 
obstruction. 
 
The cases under police investigations are two acts of obstruction 
 
TOKYO 00000278  010 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
that occurred in the Antarctic Ocean in February of last year. On 
Feb. 9 of that year, Sea Shepherd threw a bottle containing 
chemicals that threatened vision and had an offensive odor and a 
flare at the mother research whaling ship "Nisshinmaru." It also 
attacked the ship by using a gun that fired life-saving rope. Two 
crewmembers of the research whaling ship were exposed to chemicals 
and suffered burns on their faces. Reportedly Nisshinmaru was forced 
to suspend the work of dismantling a whale. 
 
On Feb. 12 of that year, Sea Shepherd threw a flare at the visual 
inspection ship "Kaikomaru" and collided with it, distorted the 
handrail on the port side of Kaikomaru, and forced it to stop 
navigating. Both on Feb. 9 and 12, Sea Shepherd threw rope at the 
screw. 
 
The United Nations Convention on the Law of the Sea stipulates that 
the right to investigate criminals that occur in international 
waters lies with the country where the ship is registered. The 
Public Security Department questioned the owner company in Tokyo of 
Nisshinmaru and Kaikomaru about the damages the ships suffered. It 
also confirmed the damages. 
 
The Public Security Department is examining whether the charge of 
forcible obstruction of business or assault is applied to those 
activities. It will identify through videos recording obstruction 
and countries concerned who engaged in the obstruction. 
 
Once persons who obstructed whaling are identified and the country 
they stay are found, Japan is likely to consider whether to seek 
they be put on the international wanted list and whether to demand 
they be handed over to Japan under the Convention for the 
Suppression of Unlawful Act against Vessels at Sea. 
 
Regarding the recent obstruction case where on this past Jan. 15, 
two activists of Sea Shepherd threw a bottle of chemicals having an 
offensive odor at the deck of the Japanese research whaling ship 
"No. 2 Yushinmaru" and climbed aboard the ship illegally, the Public 
Security Department is expected to question persons concerned. 
 
13) Russian government fund to invest in Japanese stock, according 
to Finance minister 
 
NIKKEI (Page 1) (Full) 
February 4, 2008 
 
(Sakai, Moscow) 
 
A Russian government fund worth 32 billion dollars (3.4 trillion 
yen) that launched on Feb. 1 will invest in Japanese stocks, 
according to Russian Deputy Prime Minister and Finance Minister 
Alexei Kudrin in an interview with the Nikkei. Prior to a meeting of 
Group of Seven finance ministers and central bankers in Tokyo on 
Feb. 9, in which Kudrin will attend, he said that Russia is willing 
to contribute to normalizing the international monetary market, 
which has become unstable, triggered by the U.S. subprime mortgage 
crisis. 
 
The fund is now allowed to invest only in U.S. dollar, Euro, and 
British pound-dominated assets. Kudrin, however, said: "The 
government is considering adding the yen to the list. Experts 
analyze it is an appropriate move." The fund will be operated with 
foreign bonds for the time being, but it plans to invest in foreign 
 
TOKYO 00000278  011 OF 013 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//08 
 
stocks after obtaining government approval in sometime after 
October. He also said that the fund will not get involved in 
corporate management, remarking: "The fund will not hold a stake of 
more than 5 PERCENT  in a company." 
 
Kudrin expressed concern about the current weakening dollar in the 
aftermaths of the subprime loan problem. Kudrin also emphasized that 
the G-7 should include such emerging countries as Russian, which 
holds 480 billion dollars in foreign reserves and has become a major 
energy supplier, China, and India as its official members. He 
warned: "Without Russia, China and India, the G-7 may lose its 
influence on the global economy." 
 
14) Fiscal 2007 supplementary budget bill to pass Diet as early as 
Feb. 6 
 
NIKKEI (Page 2) (Excerpt) 
February 4, 2008 
 
The ruling and opposition parties will set focus this week on fierce 
discussions in the ongoing Diet session over a bill revising the 
Special Taxation Measures Law, which includes measures to maintain 
the current provisional rate for gasoline and other road-relates 
taxes. The bill on supplementary budget for fiscal 2007 is expected 
to be enacted as early as Feb. 6. 
 
The House of Councillors Budget Committee will carry out today 
intensive deliberations on social security issues. Since the upper 
chamber's panel will spend more time for the supplementary budget 
bill than the House of Representatives' committee, the opposition 
bloc plans to respond to a vote tomorrow at the committee. The bill 
will be voted on the 6th in the opposition-controlled Upper House, 
but it will be enacted based on the Constitution that stipulates the 
Lower House holds supremacy for budget packages. 
 
The ruling parties are expected to hold a basic question-and-answer 
session on the 7th and 8th on the fiscal 2008 budget bill. The bill 
will be enacted before the end of March if it clears the Lower House 
by March 2 as the Constitution stipulates that budget packages are 
enacted after they are sent to the Upper House. The ruling 
coalition, therefore, aims to get it passed by the Lower House by 
Feb. 29. 
 
15) Ruling, opposition parties making no preparations for Lower 
House election, feeling that chance is slipping away 
 
NIKKEI (Page 2) (Full) 
February 4, 2008 
 
The ruling and opposition parties appear to be making little 
preparations for the next House of Representatives election. Both 
the ruling Liberal Democratic Party (LDP) and largest opposition 
Democratic Party of Japan (DPJ or Minshuto) are not pushing forward 
with the selection of their candidates, although they had decided to 
pick them in early this year. With the agreement by the ruling and 
opposition camps through the good offices of the leaders of the two 
Diet chambers on the controversial provisional tax rates, there is 
growing observation that the chances for a Lower House election has 
slipped away. There is little mood for the next Lower House taking 
place soon. Another reason is that there still remains the lurking 
notion of forming a "grand coalition." 
 
 
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The main reason for the dwindling enthusiasm, about election 
preparations among the parties is that DPJ President Ichiro Ozawa 
indicated that his party would focus on the fall. He, quoting the 
U.S. presidential election in November, said: "I feel that the 
election in Japan would coincide with that of the United States." 
 
Criticizing media reports, Ozawa stated in a lecture at his 
political study group: "Even my poetic remarks become reports on 
political developments." He has repeatedly made similar remarks that 
could be taken that his party would take the offensive in the fall 
or later: "I am concerned about the Chinese economy after the August 
Olympic Games. I expect there will be a great change." 
 
In the ruling camp, New Komeito Election Policy Committee Director 
Yoshihisa Inoue categorically said in a meeting yesterday in 
Yamagata City: "It is said that this year is a year for a decisive 
political battle, but the chance for the battle occurring in March 
or April has slipped away." 
 
Seeing the election preparations by the ruling and opposition 
parties, the LDP has yet to pick candidates for nine of the 15 
electoral districts, although it had decided to finish up by its 
January annual national convention. 
 
The LDP has found it difficult to coordinate candidates for six 
districts in which both "former assassins" and former "postal 
rebels" who rejoined the party are expected to run. The party plans 
to file former rebels in the Gifu No. 1 and Tokushima No. 2 
districts. However, the issue has not yet been settled because 
supporters for the former assassins have thronged to party 
headquarters. Election Committee Vice Chairman Yoshihide Suga 
commented: "Our choice will be criticized, anyway." 
 
Coordination between the LDP and New Komeito has not been pushed 
ahead in connection with the candidate for the Okinawa No. 1 
district. The two ruling parties have no longer expecting a possible 
April Lower House dissolution. The religious sect Soka Gakkai, the 
main backer for the New Komeito, has advocated that the next Lower 
House election should either be conducted sometime after the July 
Group of Eight summit (Lake Toya Summit) or around July next year 
when the Tokyo Metropolitan assembly election occurs. Inoue predicts 
that the next Lower House election will probably occur in the fall. 
 
16) Kan take positive stance about revision talks during Hodo 2001 
program on February 3 
 
SANKEI (Page 5) (Full) 
February 4, 2008 
 
Appearing on Fuji TV's program Hodo 2001 on February 3, DPJ Deputy 
President Naoto Kan discussed a bill to maintain the provisional 
gasoline tax and the question of road-related tax reverences. The 
following is a gist of the main questions and answers. 
 
-- The bridging bill has been withdrawn owing to mediation by the 
Lower House speaker and Upper House president. 
 
"The bridging legislation was designed to increase taxes without 
deliberations. If it had been adopted, the Fukuda cabinet would have 
collapsed." 
 
-- LDP Secretary General Bunmei Ibuki is saying that (the DPJ) has 
 
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promised to bring the matter to a vote within the current fiscal 
year. 
 
"If questions and answers are conducted thoroughly, there might be 
some modifications to it. 'A certain conclusion' will be reached 
after all those developments. The compromise note must be taken 
literally. There could be a vote within this fiscal year as well as 
additional deliberations." 
 
-- Wasn't it the DPJ's strategy to force the prime minister into 
Lower House dissolution with the bridging legislation? 
 
"(Bridging dissolution) was not what we initially aimed at. If the 
government and ruling parties had rammed the bridging bill through 
the Lower House, they would have had to use a two-thirds majority 
override vote twice in late March. They would not have been able to 
steamroller it. That is why the ruling bloc made concessions (to the 
DPJ)." 
 
-- If there are talks between the ruling and opposition camps on 
making changes to a revenue bill, there could be: (1) a shortened 
period, (2) turning a part into a green tax, (3) (using road-related 
tax revenues) for general purposes, and (4) lowering the tax rates. 
 
"One theory goes that because the DPJ holds a majority in the Upper 
House, the Land and Transport Ministry said that the term should be 
left at 10 years. There also is a talk in the LDP that (the 
legislation must be revised) to shorten the period. However, there 
are many LDP lawmakers who have vested interests in the road 
industry. They are blustering that they will not allow anyone to 
flirt with road-related revenues. The LDP would lose unity (as 
revision talks) move forward." 
 
-- Mr. Kan, you said that the faces of LDP Election Committee 
Chairman Makoto Koga and General Council Chairman Toshihiro Nikai 
can tell their determined to hold onto road-related interests. Your 
comment resulted in a letter of protest from the LDP. 
 
"Did I say anything wrong? Mr. Nikai and Mr. Koga have said that 
they would absolutely defend the road revenues, so I said that their 
resolve was clear on their faces." 
 
SCHIEFFER