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UNCLAS SECTION 01 OF 12 TOKYO 000308 
 
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 02/06/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Diplomatic agenda: 
4) Afghanistan's foreign minister in interview seeks Japan's 
participation in PRT  (Asahi) 
5) Japan to provide Afghanistan with 12.8 billion yen in new aid 
(Asahi) 
6) Japan to recognize an independent Kosovo  (Asahi) 
7) President Putin in letter to Prime Minister Fukuda wants to raise 
bilateral relations to a "higher dimension," acknowledges difficulty 
of territorial issue  (Sankei) 
8) Japan proposes to China development of two gas fields first in E. 
China Sea  (Yomiuri) 
9) Japan aims at pragmatic approach to resolving gas-field issue 
with China  (Yomiuri) 
 
Defense affairs: 
10) Japanese government in notes signed with four countries, 
including U.S., on refueling services in Indian Ocean, omits 
specifying restrictions on fuel usage  (Tokyo Shimbun) 
11) Okinawa defense bureau presents additional material on 
environmental assessment of site for relocation of Futenma base 
(Mainichi) 
12) Survey shows two candidates in Iwakuni mayoral race are neck and 
neck, as voters go to the polls Feb. 10 with issue of relocation of 
Navy jets in mind  (Asahi) 
 
Political agenda: 
13) Democratic Party of Japan head Ozawa puts priority on scrapping 
provisional tax rates partly to pressure LDP for revision talks 
(Nikkei) 
14) DPJ is stepping up efforts to capture the rural vote by setting 
up Diet leagues, public discussions, and policy groups  (Nikkei) 
15) Channels being built between ruling and opposition camps, 
including joint mission to South Korea  (Nikkei) 
16) Kishida picked as minister in charge of consumer affairs 
(Mainichi) 
 
Economic affairs: 
17) -- Chief Cabinet Secretary Machimura indicates that proposed 
restriction on foreign investment in airports might be shelved 
(Mainichi) 
18) -- Government is split over the issue of restricting foreign 
investment in airports  (Tokyo Shimbun) 
19) -- Government ready to announce Muto as new Bank of Japan 
governor, as DPJ backs away to avoid vacuum in that post  (Tokyo 
Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Tokyo Shimbun: 
New pesticide found in gyoza dumplings made last June 
 
Nikkei: 
Money transfers between private banks, Japan Post Bank to be 
introduced as early as next January 
 
TOKYO 00000308  002 OF 012 
 
 
 
Sankei: 
Russian president agrees with Prime Minister Fukuda's proposal for 
"higher bilateral relationship" 
 
Akahata: 
JCP lawmaker urges government to strengthen inspections on imported 
food 
 
2) EDITORIALS 
 
Asahi: 
(1) Time to reconsider Afghan aid 
(2) Microsoft's buy-up of Yahoo weaken Internet vitality? 
 
Mainichi: 
(1) Prime Minister Fukuda should show more zeal for reform of civil 
servant system 
(2) Bio bank: Need for strategy of effectively utilizing samples 
 
Yomiuri: 
(1) Rebuild regime encircling North Korea 
(2) Prepare for "new type" flu 
 
Nikkei: 
(1) Overall picture for civil servant system reform remains unclear 
(2) AU should show determination to settle conflicts 
 
Sankei: 
(1) Day of Northern Territories should be added to agenda at G8 Lake 
Toyo summit 
 
Tokyo Shimbun: 
(1) Gyoza dumplings scare: Bringing the truth to light will lead to 
dispelling distrust 
(2) G7: Tackle seriously crisis response 
 
Akahata: 
(1) U.S. Budget Message: "Twin deficit" would expand 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 5 
 
NIKKEI (Page 2) (Full) 
February 6, 2008 
 
07:40 
Met with Deputy Chief Cabinet Secretary Iwaki at the Kantei. 
 
08:31 
Cabinet meeting in the Diet building. 
 
09:00 
Upper House Budget Committee meeting. 
 
14:02 
Met with Chief Cabinet Secretary Machimura. 
 
15:04 
Met with Indian Congress member Rahul Gandhi. Then issued an 
appointment letter to Special Advisor to Cabinet Kusaka. Machimura 
 
TOKYO 00000308  003 OF 012 
 
 
was present. 
 
15:56 
Met with former LDP Secretary General Nakagawa, followed by Special 
Advisor to Cabinet Nishimura. 
 
17:03 
Received a report from Chairman Okamura of the advisory body on 
comprehensive reform of the public servant system. State Minister 
for Administrative Reform Watanabe was present. Then met with Deputy 
Chief Cabinet Secretary Futahashi. 
 
18:43 
Met with Albanian Prime Minister Berisha. Then dinner meeting hosted 
by the prime minister. Former Prime Minister Mori attended. 
 
20:51 
Met with Mori at the official residence. 
 
4) At JCMB meeting, Japan announces it will freshly offer 12.8 
billion yen in aid to Afghanistan 
 
ASAHI (Page 4) (Slightly abridged) 
February 6, 2008 
 
Kazuhito Tsukamoto 
 
The Joint Coordination and Monitoring Board (JCMB), a group of 
bureau director-level officials from 24 countries and international 
institutions engaged in assistance to Afghanistan to discuss the 
rehabilitation of that country, kicked off its two-day meeting in 
Tokyo yesterday. Joining the meeting from Afghanistan were 13 
cabinet members including Foreign Minister Spanta. The meeting 
adopted a communiqu revealing that the participants agreed to step 
up efforts together to deal with such tasks as terrorism and 
narcotics. 
 
Foreign Minister Koumura delivered an opening speech, in which he 
declared Japan would newly offer a total of 110 million dollars 
(12.8 billion yen) in aid, including 9 million dollars for improving 
border management via the Afghan government and 13 million dollars 
for literacy education via the United Nations Educational, 
Scientific and Cultural Organization (UNESCO). 
 
5) Foreign Minister Spanta asks Japan for dispatching PRT consisting 
of civilians 
 
ASAHI (Page 4) (Full) 
February 6, 2008 
 
Tsutomu Ishiai 
 
SIPDIS 
 
Visitng Foreign Minister Spanta yesterday responded to an interview 
with an Asahi Shimbun reporter, in which the foreign minister 
indicated that he expects Japan to consider sending a provincial 
reconstruction team (PRT) consisting mainly of civilians. On the 
issue of narcotics, which have been financial sources for radical 
groups, such as the Taliban, Spanta noted: "The ongoing meeting will 
come up with a comprehensive action plan. By obtaining international 
cooperation, we will eliminate them in a 7-8 year timeframe." 
 
The PRT is a group composed of military personnel and civilians. The 
 
TOKYO 00000308  004 OF 012 
 
 
group establishes a base for activities in an area where conflicts 
are still continuing and engages in reconstruction assistance while 
securing safety and public order. In Afghanistan, European countries 
belonging to the North Atlantic Treaty Organization (NATO) have 
mobilized their PRTs. 
 
Spanta cited the case of Turkey's PRT consisting mainly of 
civilians, including troops for noncombat purposes, and deployed in 
mid-Afghanistan's province of Wardak and noted: "There are various 
types of PRTs. Most areas in 
Afghanistan are safe and stable. I think it is not a serious issue 
whether civilians engage in reconstruction assistance." 
 
Spanta added, "The important thing is for Japan to work together 
with us in reconstruction, as well as in the peace-building process. 
It is Japan that will decide in what form it will join." 
 
As for Japan's resumption of the refueling mission in the Indian 
Ocean, Spanta expressed gratitude by noting: "It is indirect support 
for the operations against terrorism. It is very important for 
Afghanistan, as well." 
 
6) Japan to recognize Kosovo as independent state early, following 
EU and U.S. 
 
ASAHI (Page 1) (Excerpts) 
February 6, 2008 
 
In the event the Autonomous Province of Kosovo, now under the United 
Nations Interim Administration Mission, declares its independence, 
the government intends to recognize it as a state swiftly, following 
Western countries. The autonomous government of Kosovo with a huge 
Albanian population is set to declare independence possibly later 
this month in cooperation with the United States and the European 
Union. Prime Minister Yasuo Fukuda held a meeting last night with 
visiting Albanian Prime Minister Sali Berisha and exchanged views on 
the situation in Kosovo as well. 
 
As the chair of the G8 Summit this year, the government is in a 
position to coordinate views with other countries. For this reason, 
the government is cautious about recognizing Kosovo as an 
independent state at the same time as the EU and the U.S. But in the 
wake of the reelection of Serbian President Boris Tadic who is on 
friendly terms with Western countries, the government has begun 
discussions on recognizing Kosovo as a state early, thinking buds of 
a peaceful settlement have begun to sprout. 
 
Kosovo was initially expected to declare independence immediately 
after a victory by the far-right candidate in the Serbian 
presidential race. But with Tadic's reelection, the declaration of 
independence is likely to delay. Japan intends to make a decision 
based on the case of Bosnia and Herzegovina that have become 
independent of the former Yugoslavia. 
 
7) In response to "Fukuda's personal letter," Russian president 
agrees to put bilateral relations on higher level 
 
SANKEI (Top play) (Excerpts) 
February 6, 2008 
 
It was learned yesterday that Russian President Putin had responded 
to Prime Minister Yasuo Fukuda's personal letter handed by former 
 
TOKYO 00000308  005 OF 012 
 
 
Prime Minister Yoshiro Mori when Putin and Mori met in last 
December. Putin in his written reply gave his assent to Fukuda's 
proposal indicated in his personal letter to put Japan-Russia 
relations on a higher level, by saying, "I agree." This is taken to 
mean "an expression of the president's strong enthusiasm to resolve 
the Northern Territories issue," one Foreign Ministry official 
explained. 
 
The Fukuda cabinet has set a goal of putting Japan-Russia relations 
on a higher level. Specifically, according to a government official, 
it means "to resolve the Northern Territories issue, conclude a 
peace treaty and dramatically improve Japan-Russia relations as a 
whole." 
 
Fukuda in his policy speech delivered in the Diet on Jan. 18 
emphasized: "I will facilitate territorial negotiations in order to 
raise relations with Russia to a higher level." At a press briefing 
yesterday, Foreign Minister Masahiko Koumura noted, "If the Northern 
Territories are not returned to Japan, we can't expect to have a 
higher level of relations (with Russia)." 
 
Reportedly, during a teleconference held in last October, Putin told 
Fukuda that "I would like to meet with Prime Minister Fukuda and 
discuss (the territorial issue) with him." 
 
The Russian government has asked Koumura to visit to Russia as soon 
as possible. In this regard, coordination is underway in the 
Ministry of Foreign Affairs to realize Koumura's visit to Russia in 
March, if the Diet calendar allows him to do so. There is also an 
argument in the government that the Northern Territories issue 
should be put on agenda for the upcoming Group of Eight Summit in 
Lake Toya, Hokkaido, (G8 Toyako Summit) in July. 
 
The government has welcomed a positive response from Putin to 
Fukuda's personal letter calling for a resolution of the Northern 
Territories issue, as well as an expression of Putin's strong 
enthusiasm about territorial talks. However, the government does not 
have any prospect for territorial talks at present because it 
remains to be seen how far the president, who at one point had 
hardened his attitude, noting, "There are no islands to return," 
will come to terms with Japan. 
 
"We have been making a number of efforts, but frankly speaking, our 
efforts have failed to bear fruit so far," Chief Cabinet Secretary 
Nobutaka Machimura said at a press conference on Feb. 4 ahead of 
"Northern Territories Day" on Feb. 7. He admitted that territorial 
talks have been rough going. 
 
8) Government offers new proposal to China for jointly developing 
two of four gas fields first 
 
YOMIURI (Page 1) (Excerpts) 
February 6, 2008 
 
The Japanese government has offered a new proposal in negotiations 
on joint development of disputed natural gas fields in the East 
China Sea, according to informed sources yesterday. Japan had 
initially called on China for the joint exploration of four gas 
fields - Shirakaba (Chunxiao in Chinese), Asunaro (Longjing), 
Kusunoki (Duanqiao), and Kashi (Tianwaitian). But the new proposal 
suggests developing first Shirakaba and Kashi, as well as areas 
around the gas fields, putting off the development of the other two 
 
TOKYO 00000308  006 OF 012 
 
 
fields. The government aims to minimize points at issue between the 
two countries by giving priority to reaching an agreement on the 
joint exploration of the Shirakaba and Kashi gas fields, where China 
has already made preparations for the start of production. 
 
A senior Japanese government official made the new proposal to China 
early this month. The two governments hope to reach a conclusion on 
the issue prior to the planned visit to Japan by Chinese President 
Hu Jintao this April. They have decided to hold a vice ministerial 
meeting in Beijing within this month to iron out differences in both 
sides' views. 
 
9) Government presents new practical proposal for developing two gas 
fields first in bid for early agreement with China 
 
YOMIURI (Page 2) (Full) 
February 6, 2008 
 
(Commentary) 
 
The Japanese government has made a new proposal under which Japan 
and China would give priority to reaching an agreement on the joint 
exploration of Shirakaba (Chunxiao) and Kashi (Tianwaitian), two of 
the four disputed natural gas fields in the East China Sea. By 
offering a practical proposal, the government aims to reach an 
agreement prior to the deadline for concluding negotiations, that 
is, the planned visit to Japan by Chinese President Hu Jintao in 
April. 
 
A Japanese official involved in negotiations with China said: "It is 
desirable for both sides to reach a complete settlement by 
subjecting areas including the four gas fields to joint development 
and then drawing a boundary line. But this idea is not practical. 
The two-stage approach is more feasible." 
 
The Japanese government fears that the new proposal may put its 
initial proposal for joint development of the four gas fields on the 
back burner. At the same time, Japan has said that it wants to see 
areas subject to joint exploration widened to cover areas on the 
Chinese side of the demarcation line that Japan claims, even if only 
slightly. 
 
Late last year, China made a policy switch to approve Japan's 
joint-development proposal, limiting areas for joint exploration to 
locations on the Japanese side of the demarcation line. Recently, 
China reportedly has begun to indicate a willingness to approve 
development of areas that cover almost up to the demarcation line. A 
government source said that the gap in Japanese and Chinese views on 
areas subject to joint development is narrowing. Will both sides be 
able to gain a foothold toward joint development of a wider area? 
Last-minute negotiations will start soon. 
 
10) Dip note fails to ban fuel diversion 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 6, 2008 
 
The Japanese government yesterday exchanged diplomatic notes with 
the governments of the United States, Britain, France, and Pakistan 
on arrangements for the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. The exchange of notes says the 
MSDF's refueling services to be resumed there are only for their 
 
TOKYO 00000308  007 OF 012 
 
 
naval vessels engaging in antiterror maritime interdiction 
operations. However, the government did not expressly prohibit fuel 
diversion in the exchange of notes. The government will now need to 
create an operational mechanism that will make it possible to grasp 
how MSDF fuel is used. 
 
In November last year, the Antiterrorism Special Measures Law 
expired. Under that law, Japan exchanged notes with these four 
countries. That exchange of notes only described that the MSDF would 
provide fuel to foreign naval vessels under the law. MSDF fuel, 
however, was alleged to have been used for other purposes, such as 
military operations for the Iraq war. 
 
The exchange of notes this time prescribes that the MSDF will 
provide fuel to foreign naval vessels operating in the Indian Ocean 
for antiterror maritime interdiction operations. The government says 
the MSDF will identify foreign vessels for its refueling services to 
prevent fuel diversion. 
 
However, there is no denying the case where a foreign naval vessel 
engaging in different activities could be indirectly refueled 
through another country's supply ship. 
 
The government failed to prescribe a "no fuel diversion" clause in 
the exchange of notes. Instead, the government wants to cover that 
portion in MSDF operations. The MSDF will arrange its refueling 
services in Bahrain, where Japan will receive documents from their 
countries about their missions and supply ship refueling schedules. 
 
However, that documentation is not binding unlike an exchange of 
note. Japan has no choice but to depend on their countries for 
information. 
 
11) Defense Ministry submits additional documentation to Okinawa on 
assessment for Futenma relocation 
 
MAINICHI (Page 2) (Full) 
February 6, 2008 
 
The Okinawa Defense Bureau of the Defense Ministry yesterday 
submitted an additional document to the Okinawa prefectural 
government regarding the planned relocation of the U.S. Marine 
Corps' Futenma Air Station in Okinawa Prefecture's central city of 
Ginowan to a coastal area of Camp Schwab, a U.S. military base in 
the island prefecture's northern coastal city of Nago. The 383-page 
document is the Defense Ministry's revised plan for how to carry out 
an environmental impact assessment. 
 
The Okinawa prefectural government will call a meeting of its review 
panel on Feb. 8. After that, the prefectural government will comment 
on the revised plan. 
 
The Okinawa Defense Bureau submitted the original plan to the 
Okinawa prefectural government on Aug. 7 last year. However, the 
prefectural government asked the bureau to rewrite the plan, 
explaining that it was insufficient in substance. 
 
According to the revised document, the government plans to build a 
new airfield with a total area of about 210 hectares. The new 
airfield's runway is about 30 meters wide. The revised document also 
revealed that the new airfield is for four helicopter types, 
including the CH-53, and two fixed-wing aircraft types. Meanwhile, 
 
TOKYO 00000308  008 OF 012 
 
 
the Defense Ministry has explained the traffic pattern of aircraft 
to be stationed at the new airfield. However, the revised document 
says their flight routes have yet to be determined. The defense 
bureau has forgone its answer about actual flights for noise 
monitoring. 
 
12) Iwakuni race a dead heat between Fukuda, Ihara 
 
ASAHI (Page 25) (Abridged) 
February 6, 2008 
 
The city of Iwakuni in Yamaguchi Prefecture will elect its new mayor 
on Feb. 10. The point at issue is whether to accept the proposed 
redeployment of U.S. carrier-borne fighter jets to the U.S. Marine 
Corps' Iwakuni base. The Asahi Shimbun conducted a telephone-based 
survey of the city's voters on Feb. 4-5 and analyzed the situation. 
The race has now become a dead heat between Yoshihiko Fukuda, a 
pro-redeployment candidate who was a House of Representatives member 
of the Liberal Democratic Party, and former Iwakuni Mayor Katsusuke 
Ihara, who is opposed to the transfer of U.S. jets to Iwakuni base. 
In the survey, however, about 20 PERCENT  of those polled remained 
undecided. The Fukuda and Ihara camps are desperately trying to lock 
on the city's voting population. 
 
Fukuda, backed by the LDP and New Komeito, are expected to garner 
votes from more than 70 PERCENT  of LDP supporters. He is now 
steadily gaining support from more of New Komeito's supporters. He 
has also gained support from a little over 40 PERCENT  of those who 
have no party to support. He has support from 60 PERCENT  of those 
in their 30s and those in their 40s. 
 
Meanwhile, Ihara is supported by Democratic Party of Japan 
(Minshuto), Japanese Communist Party, and Social Democratic Party 
(Shaminto) supporters. He has now gained support from more than 70 
PERCENT  of the DPJ's supporters and is also about to gain support 
from almost all of the JCP's supporters and the SDF's supporters. He 
is above Fukuda among the floating voters. Among homemakers and 
those aged 70 and over, there are many in support of Fukuda. 
 
The survey was conducted Feb. 4-5 over the telephone on a 
computer-aided random digit dialing (RDD) basis with the aim of 
calling a total of 1,000 voters in Iwakuni City. Respondents were 
chosen on a three-stage random-sampling basis. Valid answers were 
obtained from 1,091 persons (66 PERCENT ). 
 
13) Ozawa puts priority on abolishing the provisional tax rates 
partly to apply pressure on LDP regarding taxation measures law 
revision talks 
 
NIKKEI (Page 2) (Excerpts) 
February 6, 2008 
 
Democratic Party of Japan President Ichiro Ozawa, holding a press 
conference in Osaka yesterday, made the following comment regarding 
a response to a plan to revise the Special Taxation Measures Law 
over the provisional tax rates as road-construction revenues: "If 
the ruling bloc can come to terms (with us), the matter can be dealt 
with without the provisional tax rates. It is not that the subject 
of using road-related tax revenues for general purposes and the 
abolition of the provisional tax rates should absolutely go hand in 
hand." Ozawa revealed a view that it is possible to make concessions 
first on abolishing the provisional tax rates. 
 
TOKYO 00000308  009 OF 012 
 
 
 
About the reason to give priority to abolishing the provisional 
rates, Ozawa said: "Although using road-related tax revenues for 
general purposes and abolishing the provisional tax rates are 
inseparable, the provisional taxes have been introduced over 30 
years ago. And oil prices are soaring." Ozawa is also obviously 
trying to apply pressure on the LDP, which has been reluctant to 
hold revision talks due to resistance by its members with ties to 
road construction interests. 
 
About the agreement to "reach a certain conclusion within the 
current fiscal year," worked out by mediation by the Lower House 
speaker and the Upper House president, Ozawa said: "As far as what I 
learned, the matter will not necessarily have to be brought to a 
vote straightforwardly." 
 
14) DPJ working upon local areas by holding open forums and 
establishing policy groups 
 
NIKKEI (Page 2) (Abridged) 
February 6, 2008 
 
The major opposition Democratic Party of Japan (DPJ or Minshuto) is 
working strongly on local governments on the issue of abolishing the 
road-construction provisional tax rates. Deputy President Naoto Kan 
will hold an open forum with Miyazaki Governor Hideo 
Higashikokubaru. A group of Lower House members who formerly served 
as local heads, such as former Izumo Mayor Tetsundo Iwakuni, also 
launched a policy group yesterday. But already, Lower House 
Vice-Speaker Takahiro Yokomichi has left the group due to a protest 
from the LDP. 
 
Launched yesterday is a group called itself Gyousei Demokurattsu no 
Kai (Group of Administrative Democrats). Its members are Akio 
Fukuda, Katsumasa Suzuki, and Seiji Osaka. Their strategy is to 
persuade local regions strongly opposed to abolishing the 
provisional tax rates by utilizing their experience in local 
administration. In a press conference, Osaka said: "We would like to 
speak on behalf of local heads who really want to see the 
road-related tax revenues be incorporated into general revenues." 
The group is studying ways to cooperate with former local heads. 
 
In addition to the open forum with nationally well-known 
Higashikokubaru, the party plans to hold a forum later this month 
with Fukuoka Governor Wataru Aso, chair of the National Governors' 
Association. The party is aiming to stir public opinion by playing 
up the general revenue approach allowing local governments to 
determine the use of tax revenues freely. 
 
15) Communication channels developed between ruling and opposition 
parties 
 
NIKKEI (Page 2) (Excerpts) 
February 6, 2008 
 
Diet members from different parties are now actively working to form 
suprapartisan study groups and parliamentarian leagues with an eye 
on the lingering notion that "a grand coalition" of the ruling 
Liberal Democratic Party (LDP) and largest opposition Democratic 
Party of Japan (DPJ or Minshuto) will eventually be formed. They are 
carefully watching the possibility of political realignment 
occurring should the House of Representatives be dissolved and a 
 
TOKYO 00000308  010 OF 012 
 
 
snap election called. There is a mood in political circles that 
something is still afoot, even though the prevailing view is that 
the possibility of an early Lower House dissolution, triggered by 
the issue of the provisional tax rates for road projects, has 
slipped away. 
 
"I am glad that the media are paying attention even though they are 
getting the wrong idea," said DPJ Secretary General Yukio Hatoyama 
in a study session on promotion of computerized local governments. 
Former LDP Secretary General Taro Aso is a co-organizer of the 
session. Hatoyama and Aso aim to set up in March a parliamentary 
group to help local governments promote computerized administrative 
procedures. 
 
Hatoyama's denial of the connection between their move and the idea 
of forming "a grand alliance" evoked laughter from participants, all 
of who are members of the Aso faction in the LDP. Shunichi 
Yamaguchi, an Aso faction member, told reporters: "There is a 
possibility that the wrong idea that Hatoyama mentioned will become 
the right idea." 
 
It has often happened in the capital district of Nagatacho that 
politicians deepen cooperation through study sessions and 
parliamentarian groups. Closeness of ties between Aso, who is 
regarded as strongest candidate to succeed Prime Minister Yasuo 
Fukuda, and the DPJ secretary general means "assurance" for any 
possible political realignment after the Lower House election. 
 
In contrast to the conservative Aso, a group of liberals, including 
Taku Yamasaki and Koichi Kato, who were often at odds with the 
former Abe administration, will visit South Korea on Feb. 10-11. 
They will be part of a suprapartisan mission that includes DPJ 
lawmakers Yoshito Sengoku and Yukio Edano. 
 
Yamasaki's pet argument is that a political realignment of forces in 
the LDP and DPJ that share the same values is possible. Yamasaki and 
Kato appear to be paving the way for a liberal alliance, which would 
serve as a countermove against "a grand coalition" of the LDP and 
DPJ. 
 
Another reason for the formation of parliamentarian groups is an 
effort to find a way for smoothly managing the politically divided 
Diet, in which the opposition camp controls the Upper House and the 
ruling coalition holds the majority in the Lower House. 
 
Taro Kono and Kenichi Mizuno of the LDP and Sumio Mabuchi and Goshi 
Hosono of the DPJ will announce today a joint statement calling for 
Diet reform. The group of junior Diet members is expected to seek 
aggressive utilization of lawmaker-sponsored bills, as well as 
abolition of the pre-screening system on cabinet-initiated bills. 
 
16) Kishida to be in charge of consumer administration 
 
MAINICHI (Page 1) (Full) 
February 6, 2008 
 
Prime Minister Yasuo Fukuda yesterday decided to appoint State 
Minister for People's Life to double as state minister for unifying 
consumer administration. It is also most likely that Takeshi Sasaki, 
professor at Gakushuin University, will chair an experts council to 
consider the specifics of a new entity that will have unified 
functions of related government agencies under its umbrella. The 
 
TOKYO 00000308  011 OF 012 
 
 
decision is expected to be announced possibly on Feb. 6. 
 
The prime minister had originally planned to consider the specifics 
of the envisaged new organization over six months. However, 
following the poisoning incident from Chinese-made gyoza dumplings, 
he decided to  speed up the schedule. The experts council "Consumer 
Administration Promotion Council" will be set up in the Cabinet 
Office Secretariat. The membership will likely be about 10, 
including Sasaki, Kumamoto Governor Yoshiko Shiotani. The panel will 
hold its first meeting possibly next week and reach a conclusion 
around April or May. Kishida will spearhead efforts to unify 
consumer administration, based on discussions pursued by the panel. 
 
17) Adoption of bill regulating foreign investment in airports: 
Chief cabinet secretary hints at postponement 
 
MAINICHI (Page 2) (Full) 
February 6, 2008 
 
Commenting on a bill amending the Airport Development Law, which 
incorporates a restriction on foreign investment in airport 
operators, drawing criticism from cabinet ministers and the LDP, 
Chief Cabinet Secretary Nobutaka Machimura during a press conference 
on the afternoon of Feb. 5 noted, "We must come up with an answer on 
a timely basis. We will coordinate views on the bill at some point." 
He thus hinted at a possible delay in the adoption of the bill at a 
cabinet meeting, which was originally slated to be held on the 8th. 
 
State Minister for Financial Policy Yoshimi Watanabe, State Minister 
for Economic and Fiscal Policy Hiroko Ota and State Minister for 
People's Life Kishida expressed their opposition during a press 
conference yesterday, saying that such a bill could give the 
impression that Japan is closing itself to the outside. The LDP has 
also postponed intraparty procedures. 
 
18) Row over restricting foreign ownership of airports between form 
Abe team and Transport Ministry 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 6, 2008 
 
A bill amending the Airport Development Law, compiled by the Land, 
Infrastructure, and Transport Ministry based on its plan to limit 
foreign stakes in airport operators, was discussed at a joint 
meeting yesterday of the Liberal Democratic Party's Land and 
Transportation Division and Special Committee on Aviation. In the 
meeting, members of the former Abe team composed of those who 
assumed key posts in the Abe administration, including former Chief 
Cabinet Secretary Yasuhisa Shiozaki, strongly opposed the proposed 
regulations, on the grounds that the plan contradicts the policy of 
opening up the aviation market. As a result, the bill 
unprecedentedly was not approved in the meeting. 
 
In the former Abe cabinet, Abe Shiozaki engaged in drawing up the 
Asia Gateway Initiative, which called for aviation liberalization, 
such as a measure to open Haneda Airport to international flights. 
State Minister in Charge of Financial Policy Yoshimi Watanabe, State 
Minister in Charge of Economic and Fiscal Policy, and State Minister 
in Charge of Regulatory Reform, all of whom had also assumed the 
current respective posts under the Abe cabinet, expressed in 
opposition to the proposed regulations in press conferences. 
 
 
TOKYO 00000308  012 OF 012 
 
 
Chief Cabinet Secretary Nobutaka Machimura said yesterday that he 
will make efforts to coordinate views, but it seems difficult to 
coordinate views between the Transport Ministry and the former Abe 
team. 
 
At the outset of the joint meeting, House of Representatives member 
Kenji Harada presented a list of signs of 67 lawmakers calling 
foreign-ownership regulations. Aviation Bureau Director General 
Hisayasu Suzuki of the Transport Ministry emphasized the necessity 
of regulations, remarking: "Japanese companies give consideration to 
the safety of the Japanese people, but foreign firms do not." 
 
Members of the former Abe team fiercely reacted to Suzuki's remark, 
with Hironari Seko, former special assistant to the prime minister, 
asserting: "Airport operators have been offering lucrative 
post-retirement jobs for Transport Ministry officials. They have 
established a high-cost structure, so such companies are targeted by 
domestic and foreign firms." Shiozaki also claimed: "A wrong message 
will be sent." With no agreement reached, it was decided to hold 
talks again today. 
 
19) Next BOJ governor: Coordination underway in DPJ with possibility 
of approving promotion of Muto to stave off vacuum if post unfilled 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 6, 2008 
 
The term of Bank of Japan Governor Toshihiko Fukui expires on March 
¶19. The government plans to promote Deputy Governor Toshiro Muto 
(64) to replace him. The Democratic Party of Japan (DPJ or Minshuto) 
has started undertaking coordinating internally with the possibility 
of approving Muto's promotion, if the government proposes it. 
 
The DPJ in 2003 opposed the appointment of Muto as deputy governor, 
citing his experience of serving as administrative vice finance 
minister. The party based its argument on the notion of separation 
of fiscal and monetary administration. However, amid growing 
uncertainty about the future of the economy, it has leaned toward 
the judgment that in order to avoid possible economic turmoil should 
the BOJ governor's post be unfilled, it would be unavoidable to 
adopt a flexible stance regarding the selection of a new governor. 
 
One senior DPJ member close to President Ichiro Ozawa said, "We do 
not mind approving Muto, if he is independent and free from any 
influence from the Finance Ministry." 
 
However, some members are opposing such a decision, noting, "The 
party opposed his taking office as vice governor (in 2003). It is 
strange for it to approve him now." The partly leadership, including 
Ozawa, is expected to reach a final judgment, after proceeding with 
the coordination of views in a cautious manner. However, growing 
opposition to approving Muto could affect the decision of Ozawa and 
other leadership officials. 
 
The selection of BOJ governor requires approval of the Lower and 
Upper Houses. Unlike bills, there is no regulation allowing the 
Lower House to hold a second vote. Chances are high that if the DPJ, 
which became the dominant party in the July Upper House last year, 
opposes, the Upper House would disagree with his selection. As such, 
the DPJ's response has been drawing attention. 
 
DONOVAN