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UNCLAS SECTION 01 OF 12 TOKYO 000321 
 
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 02/07/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Super Tuesday: Japanese government hoping Republic administration 
will continue, concerned that Democratic one would give priority to 
China over Japan  (Tokyo Shimbun) 
 
5) Prime Minister Fukuda planning to visit Russia in May  (Mainichi) 
 
 
Economic issues: 
6) Japan-China food poisoning dispute is a heavy blow to 
government's growth strategy  (Mainichi) 
7) LDP's Yosano attacks "market fundamentalism" (i.e., American form 
of free market economy) as incompatible with Japan's cultural 
climate"  (Sankei) 
8) Supplementary budget passes Diet using Lower House override vote 
(Yomiuri) 
9) With skirmish over budget with opposition camp, Prime Minister 
Fukuda finding it difficult to set Diet policy agenda that he can be 
identified with  (Nikkei) 
10) Although ruling parties seek dialogue with opposition side on 
budget process, the outcome in March remains unclear  (Mainichi) 
11) Democratic Party of Japan (DPJ) proposal would shave road 
construction budget to 1.7 trillion yen  (Yomiuri) 
12) Government to revise bill restricting foreign ownership of 
airports  (Sankei) 
 
Political agenda: 
13) Government plans move to a regional bloc system, replacing 
prefectures, over a ten-year period  (Sankei) 
14) Yukari Sato, one of the "Koizumi children," plans to run for the 
Tokyo 5 seat in the next Lower House election  (Mainichi) 
15) Prime minister speaks up consumer administration reform. 
(Mainichi) 
 
16) Poll on whaling shows widespread approval: 56 PERCENT  want to 
eat whale meat; 65 PERCENT  want research whaling to continue 
(Asahi) 
 
17) Budget proposal contains 1.2 trillion yen for CO2 reduction 
measures  (Mainichi) 
 
18) Iwakuni election in a dead heat   (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
U.S. Democrats locked in close battle on Super Tuesday 
 
Mainichi: 
U.S. Democrats tie on Super Tuesday 
 
Yomiuri: 
U.S. Democrats fall short of ending battle for presidential race 
candidate on Super Tuesday 
 
 
TOKYO 00000321  002 OF 012 
 
 
Nikkei: 
Major banks to provide compensation for damages from unauthorized 
deposit withdrawals over the Internet 
 
Sankei & Tokyo Shimbun: 
Benzene not used in Japan detected in package of gyoza dumplings 
 
Akahata: 
JT Foods received 11 complains about Tianyang Food's frozen products 
since last spring 
 
2) EDITORIALS 
 
Asahi: 
(1) Consumer administration: Prepare for reorganizing Kasumigaseki 
(2) U.S. presidential race: Vigorous Democrats and Republicans in 
uproar 
 
Mainichi: 
(1) Road debate: Time for DPJ to show presence 
(2) U.S. presidential race: Battle to break the impasse 
 
Yomiuri: 
(1) U.S. presidential battle still rages on after peak 
(2) Murky boundary between virtual world and actuality 
 
Nikkei: 
(1) Is this a sign of change in U.S. politics? 
(2) Chinese-made tainted gyoza scare prevents JT-Nissan food merger 
 
Sankei: 
(1) Restrictions on foreign investment in airports: Security 
argument important 
(2) U.S. presidential race: Candidates should talk about foreign 
policy 
 
Tokyo Shimbun: 
(1) U.S. presidential race: Time for candidates to show reform 
measures 
(2) Education Revitalization Council: New organization should face 
actual problems 
 
Akahata: 
(1) March 1 - Bikini Day: Need to boost campaign for elimination of 
nuclear weapons 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 6 
 
NIKKEI (Page 2) (Full) 
February 6, 2008 
 
10:00 
Upper House Budget Committee meeting. 
 
10:20 
Met with Chief Cabinet Secretary Machimura at the Kantei, followed 
by Health Minister Masuzoe. 
 
11:01 
Upper House plenary session. 
 
TOKYO 00000321  003 OF 012 
 
 
 
11:42 
Met with Deputy Chief Cabinet Secretary Futahashi at the Kantei. 
Then met with Secretary General Ibuki, followed by Futahashi. 
 
13:02 
Lower House plenary session. 
 
13:17 
New Year's party of the LDP Members' Wives Network held at the Ritz 
Carlton Tokyo. 
 
13:38 
Met with Futahashi at the Kantei. 
 
14:58 
Met with European Parliament President Hans-Gert Bottering. Lower 
House member Taro Nakayama was present. 
 
15:32 
Lower House plenary session. 
 
15:59 
Met with delegates of the Plum Delegacy, including the chief priest 
of Dazaifu-Tenmangu. Lower House member Yoshiaki Harada was present. 
Then met with Bahraini Foreign Minister Khalid. 
 
16:46 
Met with METI Vice Minister Kitabata, Small and Medium Enterprise 
Agency Director General Fukumizu.  Then met with Special Advisor to 
the Cabinet Okuda, Chief Cabinet Secretary Machimura and Deputy 
Assistant Chief Cabinet Secretary Saka. 
 
18:19 
Issued a letter of appointment to State Minister for Promotion of 
Consumer Administration Kishida. 
 
19:19 
Arrived at the official residence. 
 
4) U.S. presidential election: Gov't hopes Republican Party 
administration will stay in office, concerned about Democratic 
Party's China-oriented stance 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 7, 2008 
 
The U.S. presidential election is now underway with Republican Party 
and Democratic Party candidates campaigning hard to receive 
presidential nominations. The Japanese government is intensely 
focused on how the race to the White House will turn out. There is a 
chance that the Democratic Party may regain control of the White 
House. However, Tokyo has strong hopes that a Republican Party 
administration will stay in power, considering that the Bush 
administration has built a favorable relationship between Japan and 
the United States over the past seven years. 
 
Some officials in the Japanese government analyze that the 
Democratic Party is highly likely to march back into power, whoever 
may win the nomination between Clinton and Obama. "The Democratic 
Party has momentum," a senior official of the Foreign Ministry said. 
"Especially," the official added, "the opposition party 
 
TOKYO 00000321  004 OF 012 
 
 
traditionally has the advantage when the economic situation in the 
country is bad." 
 
One government official, judging from Tokyo's experience during the 
administration of President Bill Clinton, fears that if the 
Democratic Party wins the presidential race, its administration, 
which is "historically inward-looking and protectionist," would be 
tough on Japan, especially in economic negotiations. 
 
Furthermore, another official of the Japanese government fears that 
the Democratic Party's administration may give more consideration to 
China than Japan. Actually, Hillary Clinton, in her essay written 
last fall for Foreign Affairs magazine, did not refer to Japan even 
once. Instead, she noted, "Our relationship with China will be the 
most important bilateral relationship in the world." 
 
However, Senator Obama, when Prime Minister Fukuda visited the 
United States last fall, stated before the full Senate that the 
Japan-U.S. alliance is the foundation of peace and prosperity in the 
Asia-Pacific region. Recently, Clinton also released a statement 
with emphasis on Japan-U.S. relations in an aim to wipe away Japan's 
concerns. "Unlike in the days of economic disputes," a source 
familiar with bilateral diplomatic relations said, "there is 
bipartisan understanding to recognize the importance of the 
Japan-U.S. alliance." 
 
Even so, the Japanese government, in its heart of hearts, does not 
want to give up the 'honeymoon' relationship built by President Bush 
and former Prime Minister Junichiro Koizumi. 
 
In particular, Senator John McCain, who is now leading the 
Republican Party's nomination race, has Japan hands as advisers, 
including Richard Armitage, who once served as deputy secretary of 
state in the Bush administration, and Michael Green, who was senior 
director for Asian affairs at the National Security Council (NSC). 
"He will understand so we don't have to explain to him our bilateral 
relationship," a Foreign Ministry source said. 
 
5) Prime Minister Fukuda to visit Russia in May to hold talks with 
Putin before he steps down 
 
MAINICHI (Page 2) (Full) 
February 7, 2008 
 
Yudai Nakazawa 
 
Prime Minister Yasuo Fukuda yesterday made up his mind to travel to 
Russia during the Golden Week holidays in May and meet with 
President Putin. Putin has indicated he wants to hold a Japan-Russia 
summit in Moscow sometime in May before his tenure of office 
expires. Apparently, Fukuda has judged that meeting with the 
president will contribute to moving the now stalled talks on the 
Northern Territories issue forward. 
 
As part of preparations for the Group of Eight summit in Lake Toya, 
Hokkaido, (G8 Toyako Summit) in July, Fukuda is considering making a 
tour of G8 countries in Europe during the May holidays. He is likely 
to visit Russia on that occasion. 
 
In a meeting with former Prime Minister Yoshiro Mori in last 
December, when Mori was visiting Russia, Putin expressed his 
enthusiasm about breaking the impasse on territorial negotiations, 
 
TOKYO 00000321  005 OF 012 
 
 
noting, "I am sure the territorial negotiations will be finalized." 
Meanwhile, Fukuda in his Diet policy speech on Jan. 18 stressed: "I 
will accelerate territorial negotiations in order to bring them up 
to a higher level." Prior to the prime minister's visit to Russia, 
Foreign Minister Masahiko Koumura will visit Moscow in late March 
and set the stage for a Japan-Russia summit. 
 
A diplomatic source familiar with Japan-Russia relations gave this 
explanation about why Putin plans to hold a summit immediately 
before he steps down: "He may want to demonstrate that he will 
retain influence even under the new president." 
 
6) Chinese dumpling scare hits JT's growth strategy; President: 
"Frozen food business is in a crisis" 
 
MAINICHI (Page 9) (Excerpts) 
February 7, 2008 
 
Japan Tobacco Inc. (JT) has scrapped a plan to integrate its frozen 
food business with that of Nissin Food products Co. in the fallouts 
of the recent food-poisoning outbreak involving Chinese-made frozen 
dumplings. The poisoning incident hit JT's strategy of growing its 
food division into its key business. President Hiroshi Kimura said 
in a press conference yesterday that the company will make efforts 
to revive its frozen food business, but it will not be easy to 
dispel consumers' growing distrust. 
 
JT President Kimura emphasized his determination to keep its 
strategy, saying: "The strategy of growing the food division into 
our key business remains unchanged." When demand for Japanese 
tobaccos is shrinking, JT aims to expand the food division as its 
key business, like the foreign tobacco section. JT was placing great 
expectations on the integration plan with Nisshin in the frozen food 
business following the joint purchase of frozen food company 
Katokichi Co. 
 
Due to the Chinese dumpling scare, however, "JT's frozen food 
business is in a crisis," according to Kimura. Pressed with coping 
with the incident, the company had to give up the integration plan. 
 
7) Yosano criticizes market fundamentalism 
 
SANKEI (Page 5) (Full) 
February 7, 2008 
 
Former Chief Cabinet Secretary Kaoru Yosano of the Liberal 
Democratic Party gave a speech at party headquarters yesterday. In 
the speech Yosano revealed a view critical of former Secretary 
General Hidenao Nakagawa and other lawmakers who put high priority 
on economic growth, saying: "The idea that economic growth will help 
the country restore fiscal health is a great illusion. Market 
fundamentalists' idea of creating a small government does not fit 
the atmosphere in Japan." Yosano also argued that the approach of 
turning the consumption tax into a social security tax and raising 
the tax rate from the current 5 PERCENT  to 10 PERCENT  will help 
the government achieve its objective of restoring fiscal health. 
 
8) Supplementary budget bill approved with Lower House's decision 
overriding the Upper House's 
 
YOMIURI (Page 2) (Full) 
February 7, 2008 
 
TOKYO 00000321  006 OF 012 
 
 
 
The 2007 supplementary budget bill that includes measures to deal 
with soaring oil prices was approved yesterday afternoon. This bill 
was adopted in the Lower House plenary session on Jan. 29, but it 
was rejected by a majority of votes from the opposition bloc in the 
Upper House plenary session yesterday morning. At the request of the 
Lower House, the joint committee of both the chambers of the Diet 
held a session yesterday afternoon, but no conclusion was reached 
there. As a result, in accordance with the Constitution's Article 60 
that stipulates the Lower House's decision overrides the Upper 
House's, the budget bill was adopted. Adopting the supplementary 
budget bill under that provision was the first time in 15 years 
since 1993. 
 
A bill amending the Tax Allocation to Local Governments Law, which 
is related to the supplementary budget, was adopted by a majority of 
votes from the ruling bloc and the major opposition Democratic Party 
of Japan (DPJ) in the Upper House plenary session yesterday. 
 
Following the passage of the supplementary budget bill, the Lower 
House Budget Committee will commence deliberations on the 2008 
budget bill today. The ruling bloc asked the opposition bloc at a 
session yesterday of the Lower House Steering Committee to commence 
debate on tax-system-related bills, such as a bill revising the 
Special Taxation Measures Law aimed at maintaining the current 
provisional tax rate for gasoline, at a Lower House plenary session 
on Feb. 14 and 15, but this request was rejected by the opposition 
parties. 
 
9) Supplementary budget clears Diet; Prime Minister Fukuda finds it 
difficult to place own imprint on policy during current Diet 
session 
 
NIKKEI (Page 2) (Excerpts) 
February 7, 2008 
 
A supplementary budget for fiscal 2007, which covers emergency 
measures, including disaster relief and expenditures for people 
suffering from high oil prices, was enacted yesterday based on 
Article 60 of the Constitution, which stipulates that if the two 
Diet chambers cannot reach an agreement over the budget, the House 
of Representatives decision prevails. It was the first time in 15 
years since 1993, when Article 60 was used by the cabinet of Prime 
Minister Kiichi Miyazawa. 
 
All eyes are likely to be on Fukuda's Diet management skills 
centered on economic policy as deliberations start today on the 
fiscal 2008 budget bill. Although Fukuda is eager to unify consumer 
affairs under one administrative body, the main concern is whether 
he will be able to bring about a conclusion by the end of the 
current fiscal year (end of March) the contentious issue of 
extending the provisional gasoline tax rate. Already, Fukuda's 
handling of the plummeting stock market and sharp divisions in the 
government and ruling parties over placing restrictions on foreign 
investment in airports make him vulnerable to criticism that 
"Fukuda's policy imprint remains invisible." 
 
Fukuda spoke last night of the enactment of the supplementary 
budget: "I am glad that this budget was enacted because it is 
directly connected with the daily lives of the people." He appeared 
relieved since he has been saying that an early enactment of the 
supplementary budget and the fiscal 2008 budget bills would be the 
 
TOKYO 00000321  007 OF 012 
 
 
best possible measures (to counter falling stock prices). 
 
Fukuda yesterday took action to appoint a minister in charge of 
consumer administration, as well as to set up a council of 
consumer-affairs experts. He is expecting that his policy of placing 
priority on consumers will boost his administration's popularity, 
based on its handling of a series of scandals over domestic 
food-labeling fabrications and the current row over tainted gyoza 
dumplings made in China. He also plans to take the initiative in 
environmental and social security issues, setting up councils of 
experts in the Prime Minister's Official Residence. 
 
However, it is uncertain whether his efforts will be effective. In 
the ongoing Diet session, the focus will solely be on the handling 
of a bill revising the Special Taxation Measures Law that would 
retain the current provisional rates for gasoline and other 
road-related taxes. The ruling camp has called on the opposition to 
present a counterproposal, but the opposition bloc has insisted the 
provisional tax rates all be abolished. Therefore, there is no 
prospect for consultations on revising the government-sponsored 
bill. 
 
10) Ruling camp to press DPJ to present counterproposal: Course of 
provisional gas tax rate talks remain unclear 
 
MAINICHI (Page 2) (Excerpts) 
February 7, 2008 
 
Secretaries general and Diet Policy Committee chairmen of the 
 
SIPDIS 
Liberal Democratic Party (LDP) and the New Komeito yesterday held 
talks and agreed to urge the Democratic Party of Japan (DPJ or 
Minshuto) to present a counterproposal to their special tax measures 
bill incorporating a 10-year extension of provisional tax rate on 
the gasoline tax, etc. The mediation proposals proposed by the 
speaker of the Lower House and the president of the Upper House 
mentions that items on which both parties agreed should be revised. 
However, the LDP's road policy clique in the Diet is strongly 
resisting the idea of revising the bill. The ruling camp has 
apparently thrown the ball into the DPJ's court, anticipating that 
opposition parties are not unanimous in their stance. Whether they 
ever hold such talks is unclear. 
 
LDP Secretary General Bunmei Ibuki stressed to reporters at the 
Kantei that the DPJ needs to present a counterproposal, saying, 
"Since the DPJ has accepted the mediation proposal, it should 
contribute to efforts to set conditions for substantive Diet 
deliberations. LDP members are in agreement on the notion that it is 
impossible to revise the bill in such a manner that will lead to 
revising the fiscal 2008 budget bill. 
 
However, some are flexible toward such a revision with former 
Secretary General Hidenao Nakagawa noting a plenary meeting of the 
 
SIPDIS 
Machimura faction on Jan. 31, "It is all right to discuss such 
issues as reallocating road funds for other uses and a possible 
adoption of an environment tax." However, General Council Chairman 
Toshihiro Nikai, a veteran member of the transportation policy 
clique in the Diet, checked Nakagawa's statement, "It is 
dishonorable to say that we will respond to any proposal." The 
ruling intends to wait for intraparty discussions to calm down, 
while assuming the ball remains in the DPJ's court. 
 
The DPJ is alert to the ruling parties' approach, seeing it as a 
 
TOKYO 00000321  008 OF 012 
 
 
clinch strategy. Diet Affairs Committee Chairman Kenji Yamamoto 
during a press conference yesterday indicated his party's stance of 
not responding to the ruling parties' call, noting, "The DPJ's 
stance is clear. It is not necessary for us to present a 
counterproposal. We will not make a superficial deal." 
 
The DPJ is, however, preparing to submit a bill incorporating 
reallocations of special-purpose road construction revenues for 
other uses and scrapping the provisional tax. 
 
11) DPJ bill for abolishing provisional gas tax rate proposes 
halving outlays for road construction projects 
 
YOMIURI (Page 2) (Full) 
February 7, 2008 
 
The Democratic Party of Japan (DPJ) yesterday released key points in 
its bill calling for abolishing the current provisional road-related 
tax rates, which the party plans to submit to the current Diet 
session. The bill calls for scrapping the provision set in the 
Special Taxation Measures Law for the current provisional gasoline 
and other road-related tax rates and using the tax revenues for 
general purposes. 
 
Should this bill become law, spending for road-construction projects 
will be reduced from the current about 3.4 trillion yen to about 1.7 
trillion yen. The DPJ, though, stresses that there will be no 
hindrance to road improvement in local areas, because generous 
financial funding will be given to local governments. 
 
An abolishment of the provisional tax rates will decrease local 
governments' annual revenues by more than 1 trillion yen. To offset 
this, the bill incorporates these measures: (1) Discontinue the 
system in which local governments pay some of the expenditures for 
public works projects commissioned by the central government; (2) 
double the ratio of gasoline tax revenues distributed to local 
governments from the current one-fourth to one half. 
 
Although the DPJ admits that scrapping the provisional tax rates 
will inevitably slow down road construction, it stresses that it 
will be possible to construct necessary roads by cutting costs and 
changing the order of priorities. 
 
The main opposition party will carry out internal coordination to 
submit the bill to the Diet, but some members are calling for 
caution, with one saying that the party should carefully watch 
progress in negotiations between the ruling and opposition parties 
on changing the legislation over the road tax rates. 
 
12) Government to reconsider proposed restrictions on foreign 
investment in airports 
 
YOMIURI (Page 2) (Full) 
February 7, 2008 
 
The government aims to submit a bill revising the Airport 
Development Law to the current session of the Diet, but it yesterday 
decided to take a second look at the bill. The government did so 
because of opposition from some members of the cabinet, as well as 
some lawmakers in the ruling Liberal Democratic Party (LDP), to a 
plan presented by the Ministry of Land, Infrastructure and 
Transport's (MLIT) for the introduction of foreign capital 
 
TOKYO 00000321  009 OF 012 
 
 
restrictions on airports. The government's initial plan was to get 
approval for the bill at a cabinet meeting tomorrow, but it has now 
decided to delay the plan. According to a high-level government 
official, the government, after taking a "cooling-off period" for a 
while, will review the bill and aim to reach a conclusion on a 
course of action. 
 
Chief Cabinet Secretary Machimura will work on the review of the 
bill in cooperation with bureau director-level officials from 
relevant ministries and agencies, including the MLIT and the 
Financial Services Agency. The MLIT's proposal says that the 
legislation shall be reviewed in five years after it takes effect, 
but this five-year timeframe will possibly be shortened to two 
years. In addition, the proposal states foreign capital's ratio of 
shareholding shall be below one-third, but this percentage, too, 
will be discussed in the direction of raising the level. Moreover, 
relaxing the now tightened supervision of domestic airline companies 
in connection with airport management will be discussed. 
 
The bill may be divided into two in order to meet the timing for 
budget deliberation: one for a review of airport management related 
to budget and a second one for foreign capital. 
 
13) Government panel calls for shift to doshu system in 10 years' 
time 
 
SANKEI (Page 2) (Full) 
February 7, 2008 
 
The government's doshu (regional bloc) system vision panel met 
yesterday, in which chair Katsuhiko Eguchi presented his plan 
specifying that the country should shift to a doshu system in about 
ten years' time, by 2018. The report also says that the option of 
dividing the country into regional blocs, now in focus, will be 
specified in the panel's final report due out in the spring of 2010. 
Eguchi also proposed limiting the government's role to 20 areas, 
such as diplomacy and the maintenance of the currency system. This 
part drew many objections. The panel plans to consolidate views in 
the next meeting to present an interim report to Decentralization 
Minister Hiroya Masuda in late March. 
 
14) Yukari Sato to move to Tokyo No. 5 constituency for next Lower 
House election 
 
MAINICHI (Page 3) (Excerpts) 
February 7, 2008 
 
The Liberal Democratic Party unofficially decided yesterday to 
endorse Yukari Sato, who ran in the 2005 "postal election" from the 
Gifu No. 1 constituency (and eventually won a Tokai bloc 
proportional representation seat), for the Tokyo No. 5 district. In 
the Gifu No. 1 constituency, former "postal rebel" and former postal 
minister Seiko Noda and Yukari Sato have been vying for party 
endorsement. The LDP informally decided last month to enforce Noda 
for that constituency. Sato has been pressed for a move to another 
constituency. Sato, who is expected to accept the party's decision, 
is likely to convey her acceptance to Election Strategy Committee 
Chairman Makoto Koga later this week. 
 
15) Consumer administration conference to move up first meeting to 
Feb. 12 over gyoza scare 
 
 
TOKYO 00000321  010 OF 012 
 
 
YOMIURI (Page 2) (Excerpts) 
February 7, 2008 
 
The government decided yesterday to establish a conference on 
promotion of consumer affairs administration tasked with determining 
details of a new agency to integrate consumer administrative 
functions now split among various government offices. Chief Cabinet 
Secretary Machimura announced this decision in a press conference 
 
SIPDIS 
the same day. Gakushuin University Professor Tsuyoshi Sasaki, who 
heads the Social Policy Council, an advisory panel to the prime 
minister, is scheduled to chair the new experts' panel. Lawyers and 
representatives from consumer groups will join the new body. Its 
first meeting will be held on Feb. 12 after a formal decision is 
made at a cabinet meeting tomorrow. The panel will come up with a 
conclusion as early as April. 
 
Machimura and State Minister for Consumer Affairs Kishida will also 
participate in its all meetings. The government has set up a 
preparatory office for integrating consumer affairs administration 
in the Cabinet Secretariat yesterday as the head office of the 
conference. 
 
The formation of the new panel reflects Prime Minister Fukuda's 
policy of giving priority to the people. The prime minister 
initially intended to set up the body later this month, but he has 
decided to accelerate the plan due to the fallout from the recent 
food-poisoning outbreak involving Chinese-made frozen dumplings. 
 
Speaking before reporters at the Prime Minister's Office last night, 
Fukuda emphasized: "I thought we would be able to take our time and 
thoroughly address the task. But the incident this time is raising 
questions about whether consumer affairs administration from the 
standpoint of the people has been implemented. We would like to 
conduct a study and quickly establish a new system." The focus is on 
whether the government will be able to set up a new body, reflecting 
on the current lack of cooperation among relevant government 
agencies, as well as of information exchange between the central and 
local governments. 
 
The Liberal Democratic Party's Research Committee on Fundamental 
Policies for Consumers, chaired by Seiko Noda, compiled on Jan. 24 
an interim report that specified (1) creation of a consumer agency; 
(2) establishment of a administrative committee based on the Civil 
Polity Law; and (3) reinforcement of the Cabinet Office's functions. 
The new conference is expected to conduct discussions based on this 
report and views to be presented in the Social Policy Council. 
 
Fukuda has expressed a strong desire to create a new body with 
powerful authority. To do so, however, it will be necessary to 
transfer wide-ranging authority from government agencies to the new 
body, and eventually the agencies involved will likely put up 
resistance. When streamlining administrative work is being promoted, 
it will not be easy to recruit able personnel, either. Given this, a 
senior government official said about the aim of the prime minister: 
"A conclusion reached by experts has more persuasive power for 
government agencies." 
 
16) Poll: 56 PERCENT  back using whales for food 
 
ASAHI (Page 37) (Full) 
February 7, 2008 
 
 
TOKYO 00000321  011 OF 012 
 
 
An estimated 56 PERCENT  of the Japanese public are in favor of 
using whales for food, with 26 PERCENT  against it, the Asahi 
Shimbun found from its telephone-based nationwide public opinion 
survey conducted Feb. 2-3. Asked about Japan's research whaling, 65 
PERCENT  supported its continuation. To both questions, there were 
many affirmative answers from middle-aged and older respondents in 
particular. Among women, there were many negative opinions. Asked 
about using whales for food, negative answers outnumbered 
affirmative answers among women in their 20s and 30s. 
 
"Are you in favor of using whales for food, or are you against it?" 
To this question, "yes" accounted for 70 PERCENT  among men and 
nearly 80 PERCENT  among men in their 40s-60s. Among women, "yes" 
accounted for 44 PERCENT , with "no" at 34 PERCENT . Above all, 
among women in their 20s, "yes" accounted for 33 PERCENT , with "no" 
at 58 PERCENT . Among women in their 30s, "yes" accounted for 34 
PERCENT , with "no" at 41 PERCENT . 
 
Another question was: "Japan continues its research-purpose whaling 
in the Southern Ocean and other waters. However, this research 
whaling is drawing strong criticism overseas. Do you support 
continuing Japan's research whaling?" In response, 65 PERCENT 
answered "yes," with 21 PERCENT  saying "no." The proportion of 
affirmative answers to this question was higher than that of 
affirmative answers to the question about using whales for food. 
"Yes" accounted for 75 PERCENT  among men and 56 PERCENT  among 
women. 
 
17) Government earmarks in fiscal 2008 budget 1.2 trillion yen for 
CO2 cuts 
 
MAINICHI (Page 2) (Full) 
February 7, 2008 
 
The Environment Ministry yesterday revealed that appropriations for 
cuts in greenhouse gas emissions, such as carbon dioxide (CO2), 
earmarked in the government's budget for the new fiscal year total 
1.2166 trillion yen (up 1 PERCENT  from the fiscal 2007 initial 
budget). A budget for measures that will directly contribute to 
Japan complying with its commitment, including afforestation for 
more CO2 absorption by forests and the acquisition of emissions 
credits, is 519.4 billion yen (up 2 PERCENT  from the fiscal 2007 
initial budget). Expenses for acquiring emissions credits sharply 
increased to 30.8 billion yen, up 2.4 PERCENT  from the fiscal 2007 
initial budget, in the initial year of the reductions commitment 
period under the Kyoto Protocol. 
 
The breakdown of measures that are expected to produce direct 
effects comes to 185.3 billion yen for forest CO2 absorption 
measures, such as forest consolidation and soil-conservation 
projects, and 118.8 billion yen for nuclear-power-related subsidies. 
Other CO2 reduction measures include the development of fast breeder 
reactors and the consolidation of streetcars. 
 
18) Fukuda, Ihara neck and neck in Iwakuni mayoral race 
 
MAINICHI (Page 3) (Abridged slightly) 
February 7, 2008 
 
There are only three days left before the Feb. 10 Iwakuni 
gubernatorial election focused on the propriety of the relocation of 
U.S. carrier-based air wing to the base in the city. A heated verbal 
 
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battle is going on between former LDP House of Representatives 
member Yoshihiko Fukuda, 37, who supports the relocation 
conditionally, and former mayor Katsusuke Ihara, 57, who opposes the 
relocation. Perceiving the current situation as neck and neck, the 
two camps are in the homestretch. 
 
Highlighting the city's financial difficulty focusing on services 
for children and the elderly, Fukuda harshly criticizes Ihara's 
administration. Fukuda plays up the importance of cooperation over 
confrontation toward citizens who have begun showing signs of "base 
fatigue" from the controversial relocation issue, while emphasizing 
his determination to make school buildings earthquake resistant as 
part of his livelihood-oriented policy. In the middle of the 
election campaigning, Fukuda camp workers began noticing good 
reactions in municipalities that have been merged into Iwakuni City. 
Thos areas, that are traditionally conservative and less familiar 
with the base issue than the original Iwakuni City area, are 
reacting favorably to Fukuda's pledge that he will directly lobby 
government agencies in order to win budgets. 
 
On the other hand, Ihara rebuts: "It is a lie that the city's 
finances are bankrupt. (Mr. Fukuda) is trying to make the 
(anti-relocation voters) turn around their views by diverting the 
focus from U.S. force realignment." 
 
In the 2006 municipal referendum, 87 PERCENT  of voters said 'no' to 
the relocation. Vividly expressing his anger toward the government's 
steps, such as its freeze on the subsidies for building a new city 
hall, Ihara is trying to rally together such anti-relocation 
citizens once again. 
 
DONOVAN