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UNCLAS SECTION 01 OF 11 TOKYO 000331 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 02/07/08 
 
 
INDEX: 
 
(1) 23 organizations file request with U.S. consulate to return 
Itazuke Air Base 
 
(2) Rally held at Ishikari Bay New Port against Aegis-equipped John 
¶S. McCain 
 
(3) DPJ opposes planned relocation of U.S. aircraft training to 
Chitose 
 
(4) Prime Minister Fukuda uses experts councils to give his 
administration a boost 
 
(5) Fierce argument on whether to approve foreign investment in 
airport operators: Security vs. growth strategy 
 
(6) Discord growing in Fukuda cabinet over foreign ownership of 
airports; Judgment left to Kantei 
 
(7) Monetary cooperation not in sight: What measures will G-7 to be 
held in Tokyo on Feb. 9 propose in dealing with subprime mortgage 
crisis? 
 
(8) Indonesia certain to reduce the current level of its LNG exports 
to Japan to one-fourth in 2010 
 
(9) Will Nobuteru Ishihara in Yamasaki faction declare candidacy for 
LDP presidential election? 
 
ARTICLES: 
 
(1) 23 organizations file request with U.S. consulate to return 
Itazuke Air Base 
 
AKAHATA (Page 4) (Full) 
February 7, 2008 
 
Part of an aging building on U.S. Itazuke Air Base at Fukuoka 
Airport is scheduled to be demolished by the end of June this year. 
Yesterday, 23 peace and democratic organizations, including the 
Japanese Communist Party Fukuoka Prefectural Committee and the 
Fukuoka Prefecture Reformist Council to Defend Peace and Livelihood, 
filed requests with the Kyushu Defense Bureau and the U.S. Consulate 
in Fukuoka, seeking the U.S. base be completely removed and returned 
on the occasion of the building's demolition. The group of 
representatives was accompanied by Takaaki Tamura, Kiyoshi Shinoda 
and Tokiko Kobayashi, who are scheduled to run in the next Lower 
House election on the JCP ticket for the Kyushu-Okinawa Bloc in the 
proportional representation segment. 
 
According to the requests, U.S. Itazuke Air Base sits on the south 
side of the Fukuoka Airport international terminal building. 
Exclusively used by the U.S. military during the Korean War and the 
Vietnam War, the Itazuke base and Hakata Port suffered extensive 
damage from U.S. military aircraft crashes, rapes, robberies by U.S. 
servicemen and the like. The airport's runway is still being used by 
the U.S. military. Reportedly, some 100 U.S. military cargo planes 
fly into the base annually, and military supplies, including 
ammunition, are transported to Sasebo, Nagasaki Prefecture, by 
land. 
 
 
TOKYO 00000331  002 OF 011 
 
 
The plan is designed to demolish two-thirds of the warehouse on the 
U.S. military area (of about 22,000 sq. meters) to make it into a 
vacant lot. The Kyushu Defense Bureau notified the Itazuke Base 
Reversion Promotion Consultative Council, chaired by Fukuoka 
Municipal Assembly President Hiroshi Kawaguchi, of the plan last 
November. 
 
A Kyushu Defense Bureau Planning Department Local Coordination 
Division official indicated that there is a plan for (the U.S. 
military) to use the vacated area, adding, "Totally returning the 
site immediately to Japan is difficult. We will continue talks (with 
the U.S. military), seeking the base's return." 
 
Meanwhile, a U.S. consulate officer refused to meet the 
representatives. They then handed a letter of requests addressed to 
President George W. Bush to a consulate guard and chanted in front 
of the consulate, calling for a total removal and return of the 
Itazuke base and refusal of the missile cruiser USS Princeton, 
scheduled to enter Hakata Port on Feb. 11. 
 
(2) Rally held at Ishikari Bay New Port against Aegis-equipped John 
¶S. McCain 
 
AKAHATA (Page 4) (Abridged slightly) 
February 7, 2008 
 
The liaison council to defend the peace of the city of Ishikarai, 
headed by Hideo Masujin, held a rally at Bannaguro pier in protest 
against entrance yesterday morning into Ishikari Bay New Port 
straddling Ishikari and Otaru cities by the Aegis-equipped U.S. Navy 
destroyer USS John S. McCain of the Seventh Fleet. The rally was 
attended by some 100 protesters from the two cities. 
 
This is the second time for a U.S. naval vessel to enter Ishikari 
New Port, following last year. In the gusty wind, the protesters 
chanted against the birthed John S. McCain, "Go home, U.S. naval 
vessel! Ishikari Bay must not become a military port!" 
 
Hokkaido Confederation of Trade Union Chief Secretary Masanori 
Komuro said: 
 
"The U.S. military is aiming to enter Otaru Port on Feb. 7, relocate 
the fighter plane training to the Chitose base, and conduct a 
Japan-U.S. joint exercise at the Yausubetsu Training Range. Let us 
fight tooth and nail to prevent all of Hokkaido from becoming a 
base." 
 
Confederation Otaru Region President Kaoru Aoyagi went: 
 
"Backed by citizens' voices, Otaru once refused a U.S. naval 
vessel's port call. A mayoral race is also going on in Iwakuni, 
Yamaguchi Prefecture, against the move to strengthen the U.S. base 
there. Let's spread the movement by joining hands with other 
municipalities across the country." 
 
Shoko Yamasaki, 26, of the Democratic Youth League of Japan said in 
a strong tone: 
 
"A port call during the Sapporo Snow Festival by the U.S. vessel 
that is killing people in the Iraq war is intolerable." 
 
Satoshi Miyauchi, who will run in the next Lower House election on 
 
TOKYO 00000331  003 OF 011 
 
 
the Japanese Communist Party's ticket to seek a Hokkaido 
proportional representation seat, also joined the rally and 
delivered a speech. 
 
(3) DPJ opposes planned relocation of U.S. aircraft training to 
Chitose 
 
MAINICHI NET (Full) 
February 7, 2008 
 
The Democratic Party of Japan, Hokkaido, urged the Hokkaido 
government yesterday to convey to the central government its 
opposition to the relocation of U.S military aircraft training to 
the Chitose base, scheduled for later this month, reasoning that it 
will seriously threaten the peace of Hokkaido and the safety and 
security of people in Hokkaido. 
 
(4) Prime Minister Fukuda uses experts councils to give his 
administration a boost 
 
SANKEI (Page 5) (Slightly abridged) 
February 6, 2008 
 
Prime Minister Yasuo Fukuda has set up experts councils, such as the 
National Council on Social Security, in the Prime Minister's 
Official Residence since taking office. The prime minister's aim is 
to play up his own political identity. Some have said that there is 
the possibility that his efforts will go nowhere. 
 
In a board meeting on Feb. 4 of the ruling Liberal Democratic Party 
(LDP), Fukuda revealed a policy of launching an experts panel on 
environmental issues. He stressed to reporters: "I want to create an 
organization like a control tower. I also want to set up council to 
study what industrial circles and the public should aim for." 
 
Fukuda is looking toward the July Group of Eight summit, in which 
the battle against global warming will become a major topic of 
discussion. "He is eager to come up with environmental policy that 
can appeal to the international community," a person close to Fukuda 
said. 
 
The prime minister late last year formed the Council on Reform of 
the Defense Ministry to deal with the bribery case involving the 
former vice defense minister and the Foreign Policy Study Council. 
Along with environmental issues, he is focusing on consumer 
affairs. 
 
Fukuda announced on Jan. 4 a policy of integrating consumer 
administration extending over several ministries and agencies. In 
the wake of the Chinese gyoza dumplings scare, he declared that he 
would establish Consumer Administration Headquarters earlier than 
planned, aiming at reaching a conclusion as early as April. 
 
Meanwhile, he has been indifferent to the Education Revitalization 
Council, which was set up by former Prime Minister Shinzo Abe. 
 
Fukuda told reporters last evening: "Issues related to various 
ministries and agencies cannot be pushed ahead because of the evils 
of the vertically fragmented system of administration." A government 
official also underscored: "Prime Minister Fukuda tends to seek 
views on a broad range of areas." 
 
 
TOKYO 00000331  004 OF 011 
 
 
Some in the LDP, however, are cool to the premier's approach. A 
former cabinet minister made this comment: "The prime minister does 
not have close friends who work on his behalf. His idea of forming 
councils of private-sector persons symbolizes his solitude." Whether 
the councils function or not is up to Fukuda's leadership. 
 
(5) Fierce argument on whether to approve foreign investment in 
airport operators: Security vs. growth strategy 
 
ASAHI (Page 2) (Almost full) 
February 6, 2008 
 
The Ministry of Land, Infrastructure and Transport (MLIT) plans to 
restrict foreign investment in Haneda Airport and Narita Airport 
operators. Three cabinet ministers, including State Minister for 
Financial Policy Yoshimi Watanabe, yesterday expressed their 
opposition to the move. The Ministry of Economy, Trade and Industry 
is also urged to reach a decision on whether to approve foreign 
investment in leading energy companies. Discussions of which to give 
priority -- security that places importance on the public nature of 
airports and utility companies, or growth strategy using foreign 
investment in Japan -- pursued by the government and the ruling 
companies will come to a climax, while receiving attention also from 
the stock market. 
 
A joint meeting of the Land and Transportation Division and the 
Aviation Measures Special Committee was held at Liberal Democratic 
Party (LDP) headquarters. When Land and Transportation Division 
Chairman Takashi Mitsubayashi cut the meeting short with the premise 
that the LDP would approve the adoption of a regulation restricting 
foreign investment, participants against the move pressed 
Mitsubayashi and asked him to withdraw the proposal. 
 
Amid angry roars, final decision-making was entrusted to the 
division chairmen. However, intraparty procedures, such as securing 
approval from the General Council, slated for the same day, were 
postponed. In the end, it was decided to hold a division meeting 
again on the 6th to obtain understanding from lawmakers opposing the 
proposal. 
 
MLIT intends to introduce to the current Diet session a bill 
amending the Airport Development Law aimed at adopting a regulation 
restricting foreign investment in the operators of Narita Airport 
and Haneda Airport. 
 
However, a growing number of LDP members are opposing the move. 
Following State Minister for Financial Policy Watanabe, who had 
already expressed his opposition, State Minister for Economic and 
Fiscal Policy Ota during a cabinet meeting on the morning of Feb. 5 
said, "Such a regulation could give the impression that Japan is 
closing itself to the outside." State Minister for Regulatory Reform 
Kishida also expressed his intention to seek a policy change from 
MLIT. 
 
Their opposition to the move is based on the possible negative 
impact on inward foreign direct investment. The government plans to 
compile a growth strategy in April. One feature of the package is 
consolidating the environment for doubling inward foreign direct 
investment. The idea is to boost growth of domestic industries, 
raising investment funds from all over the world. 
 
Prime Minister Fukuda during the World Economic Forum Annual Meeting 
 
TOKYO 00000331  005 OF 011 
 
 
(Davos Conference) on Jan. 26 stated, "I will make further efforts 
to open the Japanese market, including inward foreign direct 
investment." A new regulation restricting foreign investment would 
serve as a negative factor for the administration, which is under 
fire on economic policy. 
 
The share prices of Japan Airport Terminal Co., the operator of 
Haneda Airport, plunged more than 100 yen from the previous day on 
the negative reaction to the proposed restriction on foreign 
investment. However, when the LDP divisions put off approving 
related bills, the stock price rose 100 yen. The price of the stocks 
of that company fell more than 40%, compared with the level of late 
September last year, before MLIT Minister Fuyushiba announced a plan 
that would consider such a possibility. 
 
Foreign investors account for 60% of trading on the Tokyo Stock 
Exchange. An official at an institutional investor pointed out that 
the adoption of such a regulation would accelerate the move away 
from Japan stocks. 
 
Meeting with a backlash, MLIT's bargaining card is security. Its 
stance is that foreign investment in airport operators should be 
regulated due to security needs, such as the emergency use of 
airport facilities. LDP members in favor of giving priority to 
security have increased. Chief Cabinet Secretary Machimura also 
indicated understanding, noting, "The security issue must be taken 
into consideration to a considerable extent. 
 
However, Prime Minister Fukuda on the evening of the same day told 
reporters, "I think we will hit on a good idea while pursuing 
discussions." He is thus determined to take a wait-and-see 
attitude. 
 
MLIT has given up on reaching a decision at a cabinet meeting on the 
8th. It will instead aim at doing so on the 12th.  A last-ditch 
battle between those who aim for growth and those who attach 
importance to security will continue. 
 
(6) Discord growing in Fukuda cabinet over foreign ownership of 
airports; Judgment left to Kantei 
 
MAINICHI (Page 9) (Slightly abridged) 
Evening, February 6, 2008 
 
Discord in the Fukuda cabinet is growing over the Transport 
Ministry's plan to limit foreign stakes in airport operations. 
Following Financial Services Minister Yoshimi Watanabe, Economic and 
Fiscal Policy Minister Hiroko Ota and Regulatory Reform Minister 
Fumio Kishida also began to voice opposition to the plan, standing 
against Transport Minister Tetsuzo Fuyushiba. 
 
In a joint meeting of the Liberal Democratic Party's Land and 
Transport Division and its Special Committee on Aviation on Feb. 5, 
one participant shouted: "These proceedings are no good." That 
person reacted to the way of proceeding with the meeting by Chairman 
Seiichi Ota looking at approving the proposed regulations. It was 
decided in the end to put off internal procedures that day. 
 
The Transport Ministry wants to limit the voting rights of foreign 
investors to less than one-third in major airport operators, like 
the Narita International Airport Corp. by amending the Airport 
Development Law. In Britain, where there were no restrictions, a 
 
TOKYO 00000331  006 OF 011 
 
 
Spanish firm has acquired the operator of Heathrow Airport after it 
was privatized. The ministry think that Japan must avoid following 
in the footsteps of Britain. 
 
The Macquarie Group, an Australian investment banking group, 
acquired last summer more than 19% of the shares in Japan Airport 
Terminal Co. (JAT), which operates Haneda Airport. This development 
bolstered the ministry's sense of alarm at foreign capital. The 
Transport Ministry reiterates the need to place regulations on 
foreign capital also from the viewpoint of security. 
 
But Finance Services Minister Watanabe is against the planned 
restrictions, citing Prime Minister's pledges in the Davos 
Conference in Switzerland last month to do more for Japan to try to 
shore up foreign investment in the nation. Many also voice concern 
that reports of foreign-ownership restrictions could negatively 
affect the stock market. Narita International Airport Corp. has 
offered lucrative post-retirement jobs for Transport Ministry 
officials. But last June, then Chief Cabinet Secretary Yasuhisa 
Shiozaki in the Abe administration took the lead in installing a 
person in the private sector to the "reserved seat for retired 
Transport Ministry bureaucrats," making him the first president from 
the private sector. 
 
But under the Fukuda administration, conflict has been going on over 
the structural reform policy introduced by the Koizumi 
administration and continued by the Abe administration. Former 
Secretary General Hidenao Nakagawa and former Chief Cabinet 
 
SIPDIS 
Secretary Kaoru Yosano were at odds over if there is "buried money 
 
SIPDIS 
[special reserves]" in the government. Former Internal Affairs 
minister Heizo Takenaka has criticized the government and the ruling 
camp for their attempt to raise the consumption tax in the future. 
Besides, Watanabe also crashed head-on with Transport Minister 
Fuyushiba over whether to privatize independent administrative 
corporations. Some officials of the Transport Ministry are perplexed 
with the ongoing heating discussion on the propriety of the proposed 
restrictions on foreign ownership of airports, with one official 
grumbled: "The dispute on the proposed restrictions has developed 
into a political issue, going beyond just a policy debate." In the 
Financial Services Agency, as well, a senior official was overheard 
saying: "There will be no other means but to leave a decision in the 
hands of the Prime Minister's Office (Kantei)." But asked last night 
about if he is ready to hand down a judgment, Fukuda replied: "We 
are not in such a situation now." 
 
(7) Monetary cooperation not in sight: What measures will G-7 to be 
held in Tokyo on Feb. 9 propose in dealing with subprime mortgage 
crisis? 
 
ASAHI (Page 3) (Slightly abridged) 
February 6, 2008 
 
The meeting of finance ministers and central bank governors from the 
Group of Seven (G-7) industrial power will take place in Tokyo on 
Feb. 9. Amid the spillover effect of the subprime mortgage fiasco 
casting a pall over the future of the global economy, the focus of 
the meeting is whether it can show a path toward stabilizing the 
chaotic monetary market. However, with the U.S., and Japan and 
European countries wide apart in the situations they are placed, 
including economic conditions and their sense of crisis, there is 
little room for them to take concerted action. 
 
 
TOKYO 00000331  007 OF 011 
 
 
U.S. having its back against wall to stave off recession 
 
The G-7 this time will take place in Tokyo for the first time in 
eight years in the run-up for the G-8 summit Japan will hold in 
July. Finance Minister Nukaga, who will chair the meeting, showed 
his enthusiasm, noting, "We must send a message that will lead to 
stabilizing the monetary market and the global economy." 
 
The statement issued after the G-7 in April last year boasted that 
the global economy achieved the most powerful, sustainable expansion 
in more than 30 years.  Unlike last year, the Tokyo G-7 will serve 
as a venue for leading countries to share a perception of the crisis 
and confer on what measures they can take. 
 
The situation is above all serious in the U.S., the center of the 
crisis. Its economy has already lost steam with its growth rate 
marking only 0.6% in the October-December quarter last year. There 
is concern that housing prices, the symbol of the economic bubble, 
could fall to the level of the Great Depression, according to Yale 
University Professor Shiller. The U.S. reserves 150 billion dollars 
or approximately 16 trillion yen drawn from drawbacks as its fiscal 
policy. However, experts' views are divided regarding whether it can 
stave off a recession since 2001, when the IT bubble collapsed. If 
the U.S. economy, which is serving as the economic engine, loses 
steam, it could have a major impact on the global economy. As such, 
the present situation is indeed at the critical juncture. 
 
International Monetary Fund (IMF) Managing Director Strauss-Kahn in 
late January said that countries that can make financial 
disbursements should do so. The U.S. is playing up that it has taken 
every possible domestic measure, as one senior White House Official 
noted. As such, some take the view that the U.S. would urge 
participants of the G-7 to adopt an economic stimulus package. 
 
Japan, EU: Weakened sense of urgency, slow response 
 
However, Japan and European countries are not feeling such a strong 
sense of urgency as the U.S. is. That is because European banks have 
tentatively recovered from a crisis, during which time they were 
unable to procure dollars. The decline of their economy in real 
terms is not so pronounced as the decline of the U.S. economy. 
 
European Central Bank President Trichet is determined to give 
priority to containing the inflationary trend, saying, "Our compass 
has only one hand. That is stabilizing prices." He appears to have 
no intention of lowering interest rates. Regarding fiscal 
disbursements, too, European Commission President Barroso warned, 
"We must not be tempted to resort to a measure of artificially 
stimulating the economy." 
 
In Japan, housing investment has dropped. There are also indications 
of personal consumption cooling off due to rises in the prices of 
products for daily use. However, the government's stance is that 
though weakness is observable in some quarters, personal consumption 
is recovering, according to State Minister for Economic and Fiscal 
Policy Hiroko Ota. Japan's policy interest rate is 0.5%, leaving 
little room for a further cut. Making fiscal disbursements is also 
difficult with the central and local governments strapped with 
combined long-term debts worth nearly 800 trillion yen. 
 
A joint statement to be issued at the Tokyo G-7 is expected to note 
as a shared perception that the global economy is slowing. However, 
 
TOKYO 00000331  008 OF 011 
 
 
it will unlikely to include concerted action in the form of the 
invocation of financial and fiscal policies. Feasible measures would 
be no more than technical measures, such as how the authority should 
regulate the monetary market in order to prevent confusion, as a 
senior Finance Ministry official noted. 
 
Another senior Finance Ministry official revealed the distress he is 
feeling, saying, "Only expectations of international cooperation are 
running alone. We as the chair of the G-7 are agonizing over the 
situation." 
 
A point has been made for some time that the expansion of the U.S. 
economy could reach a limit. Americans who profited from the housing 
bubble have continued to buy goods from newly emerging countries, 
such as China, Japan and European countries, while their economy 
continued to suffer a current-account deficit, deepening the global 
imbalance. Fundamental problems would remain, even if the current 
crisis is tided over. 
 
(8) Indonesia certain to reduce the current level of its LNG exports 
to Japan to one-fourth in 2010 
 
YOMIURI (Page 9) (Full) 
February 6, 2008 
 
Japan imports liquefied natural gas (LNG) from Indonesia, but 
Indonesia is certain to drastically cut its exports of LNG to Japan 
in 2010. Indonesia's state-run oil company Pertamina and six major 
Japanese electric power companies are expected to finalize their 
negotiations possibly by the end of the month. LNG is used as 
material for electric power plant fuel as well as for utility gas. 
On top of the currently soaring oil prices, if LNG imports from 
Indonesia, on which Japan depends for 22% of its total LNG imports, 
fall sharply, it could lead to hikes in electricity and gas rates. 
 
"2010 problem" for LNG; Shortage of 10 million tons of LNG 
 
Business negotiations between the Indonesian state-run oil company 
Pertamina and Japanese firms, including Kansai Electric Power Co., 
will reach the final phase on Feb. 19. The talks are now focusing on 
the price of LNG to be exported from the Bongtang LNG plant to 
Japan. Exports of LNG from Indonesia to Japan are expected to be 
reduced 25% on an annual basis from the current 12 million tons to 
an eventual 2-3 million tons. 
 
The reason why Indonesia has made a policy switch that gives more 
weight to domestic consumption of energy resources is because of a 
general shortage of energy resources and soaring prices worldwide. 
Initially, Indonesia intended to halve the current level of its LNG 
exports to Japan, but it has now decided to further reduce the 
exported amount. By simple calculation, it is estimated that Japan 
will suffer a shortfall of 9-10 million tons of LNG annually. 
 
Kansai Electric Power plans to cope with this shortage by importing 
LNG from Australia or increasing the volume of imports from the 
current LNG suppliers. But development of LNG is now stagnant 
worldwide because of the high cost and low profitability from 
constructing new LNG plants. 
 
In fact, under the Sakhalin II project, an oil and gas development 
project off the coast of Sakhalin in Russia, the initial plan was to 
supply LNG to Japan in 2008, but this plan is likely to be delayed 
 
TOKYO 00000331  009 OF 011 
 
 
until the spring of 2009. Australia's Gorgon project intended to 
export 42 million tons of LNG annually to Japan starting in 2010, 
but this schedule is most likely to be delayed until 2012 or later. 
 
Concern about rising costs 
 
The government is taking a wait-and-see attitude toward [LNG 
negotiations between Japan and Indonesia], with the Ministry of 
Economy, Trade and Industry saying that these are between 
private-sector firms. In addition, a senior official of the Natural 
Resources and Energy Agency said optimistically: "Procurement of LNG 
from Qatar and spot purchases of LNG are available." But Qatar is 
known for its bullish way of negotiations. Spot purchasing, too, is 
very risky because it is affected by market prices. 
 
There are some 100 LNG-based electric power plants across Japan. 
Given LNG's good combustion efficiency and its low level of emission 
of carbon dioxide, demand for it is expected to grow even higher in 
the future. 
 
Meanwhile, the United States and Europe, which have been importing 
natural gas mainly in the form of pipelines, are raising their 
levels of imports of LNG. China and India are doing the same. A 
leading trading house official predicts, "The LNG supply and demand 
balance will become tight worldwide around 2010." 
 
Wako University Prof. Koichi Iwama (of natural resources and energy) 
noted: "Spot prices are 1.5-2 times higher than long-term contracted 
prices, and the price gap is highly likely to expand even more in 
the future." 
 
Electric power and gas companies are expecting the government to 
back the negotiations, with one company official saying: "We hope 
the government will back us in negotiations by means of using 
official development assistance so that the negotiations will 
proceed in our favor." 
 
Japanese firms bustling about looking for new suppliers 
 
Japanese oil companies and trading houses are continuing their 
efforts in various ways to secure energy resources. 
 
Nippon Oil Company during a period from last November to December 
acquired oil-drilling rights in three unexplored oil fields in 
Southeast Asia, including offshore southern Vietnam. Itochu will 
launch a project exploring offshore oil fields in the north of the 
United Kingdom. 
 
In last October, Tokyo Gas secured a 5% stake in the drilling rights 
over natural gas fields offshore in the west of Australia. Tokyo Gas 
is the first company among domestic electric power and gas companies 
to take part in such a project from the stage of exploration. Tokyo 
Gas Overseas Project Director General Shigeru Hamada said: "It is 
significant because it will make it possible for our company as a 
development partner to secure gas smoothly." 
 
Meanwhile, natural resources development projects tend to be 
affected by the desires of developing countries, as seen n the case 
of Sakhalin II project, in which the Japanese side was pressured by 
Russia on the pretext of environmental destruction to lower its 
investment ratio. 
 
 
TOKYO 00000331  010 OF 011 
 
 
Japan is extremely hopeful about the Sakhalin I project, but there 
is a possibility that the natural gas will be sold to China. The 
road ahead for Japan to secure natural resources remains difficult. 
 
(9) Will Nobuteru Ishihara in Yamasaki faction declare candidacy for 
LDP presidential election? 
 
SHUKAN SHINCHO (Page 43 & 44) (Slightly abridged) 
February 14, 2008 issue 
 
Seeing public support for the Fukuda cabinet remaining low, some 
observers are speculating that the cabinet might be forced to resign 
en masse before dissolving the House of Representatives. At such a 
time, former Policy Research Council Chairman Nobuteru Ishihara, 50, 
who is dubbed as "one of the thoroughbreds" in the Liberal 
Democratic Party (LDP) [given his famous father Shintaro], made a 
remark that could be taken as a declaration of his candidacy for the 
next party presidential election. 
 
Ishihara appeared as a guest in the BS 11 news program "INsideOUT" 
on Jan. 31. 
 
Ishihara joined the Yamasaki faction last December after seven years 
of belonging to no faction in the LDP. Asked by the moderator why he 
had joined the Yamasaki faction, Ishihara replied: 
 
"When I was engaged in drafting the new antiterrorism bill as 
chairman of the Policy Research Council, Mr. Yamazaki, who was 
serving as chairman of the panel responsible for the legislation 
work at that time, invited me to join his faction. I asked, 'Why are 
you inviting me?' He replied: 'I just have a gut feeling about you.' 
I think we share the same kind of spirit." 
 
When the moderator touched on the next LDP presidential election, 
Ishihara made the following remark: 
 
"I know Mr. Yamasaki's mind very well, but I have yet to establish 
good contacts inside the faction. Even so, if some were to call on 
me to run in the presidential race, I would like to establish firm 
personal relations and make efforts to respond to such calls." 
 
This is a considerably bold statement for Ishihara, who has given 
the image of being an irresolute man. 
 
A deskman of a certain political department commented: 
 
"It was the first time for Mr. Ishihara to refer to the possibility 
of putting himself forward as a candidate for the LDP presidential 
race. ... He is eager to run in the next presidential election. I 
think it was a declaration of candidacy in effect. Mr. Ishihara used 
to be a member of the group led by former Prime Minister Abe. Mr. 
Abe dislikes Mr. Yamasaki. Despite that, he joined the Yamasaki 
faction, probably showing his eagerness to file his candidacy for 
the presidential election." 
 
In the Yamasaki faction, there is no influential successor to 
Yamasaki. Given this, Yamasaki reportedly invited Ishihara to join 
his party, while also keeping in mind the possibility of fielding 
him as a candidate for the presidency. 
 
An LDP member said: "Since he has been regarded as a candidate for 
the next presidency, he has put his minds to it." The member added: 
 
TOKYO 00000331  011 OF 011 
 
 
"In a TV program the other day, one commentator called Ishihara the 
third candidate, following Aso and Tanigaki. When I told that to Mr. 
Ishihara, he grinned broadly, saying, 'No way'." 
 
Ishihara ran about in confusion over the challenge of reforming 
road-related public corporations. He accomplished no remarkable 
achievements as deputy secretary general or Policy Research Council 
chairman in the Abe administration. We think he has yet to have 
enough capacity as a politician, but one LDP lawmaker said: 
 
"Former House of Councillors Chairman Mikio Aoki has highly 
evaluated Mr. Ishihara. I think it is fully possible that Mr. 
Ishihara will run in the next presidential race.  Mr. Ishihara in 
the LDP is seen as a captivating person to the elderly members. In 
the earlier Upper House election, he went to Shimane Prefecture to 
make campaign speeches three times in response to Mr. Aoki's 
request, cancelling planned speeches. Many veteran members call him 
a nice young man." 
 
Ishihara has earnestly attended faction meetings and study meetings. 
He has also dined with faction members, in an attempt to forge a 
solid footing in the faction. 
 
A Yamasaki faction member said: "It is impossible for Yamasaki to 
run in the presidential race, because he has been tainted with a 
scandal involving a woman. Economy, Trade and Industry Minister 
Amari, who is aiming to succeed Yamasaki, will support Aso. Under 
such a situation, it is fully conceivable that our faction will back 
Ishihara." 
 
DONOVAN