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UNCLAS SECTION 01 OF 13 TOKYO 000409 
 
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 02/15/08 
 
 
TOKYO 00000409  001.2 OF 013 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Chinese official reports that DPRK leader Kim Jong Il was pleased 
with President Bush's State of Union Address last month  (Sankei) 
 
USFJ incidents: 
5) U.S. forces Japan to take legal action against four Iwakuni-based 
Marines accused of gang raping 20-year old Japanese woman  (Tokyo 
Shimbun) 
6) USFJ Commander Wright toughening off-base privileges of U.S. 
military personnel after Okinawa rape incident  (Tokyo Shimbun) 
7) U.S., Japan scrambling to put new measures into effect to prevent 
anti-base feeling from spreading following Okinawa rape incident 
(Yomiuri) 
8) Prime Minister Fukuda meets Okinawa Governor, promises to work 
with U.S. on measures to stop U.S. military incidents  (Nikkei) 
9) Senior Pentagon official expresses regret for alleged rape of 
schoolgirl by U.S. Marine, hopes to see continued implementation of 
Futenma relocation plan  (Sankei) 
10) New Iwakuni mayor meets defense and foreign ministers in Tokyo 
on Atsugi jet-relocation issue  (Mainichi)    8 
 
Defense and security affairs: 
11) LDP plans delegation to U.S. to explain why Indian Ocean 
refueling services were broken off for a while  (Asahi) 
12) Government considering new legal system to protect secrets 
(Asahi) 
13) Japan-style CIA plan shelved as another element of former Prime 
Minister Abe's policy agenda is stripped away  (Mainichi) 
 
DPJ in action: 
14) Democratic Party of Japan leaders one by one come out with 
statements backing Ozawa for staying on as party head  (Sankei) 
15) After three-year hiatus, DPJ resumes dialogue with Japanese 
business circles  (Yomiuri) 
16) DPJ finally agrees to go along with government's plan to appoint 
Muto as Bank of Japan governor  (Sankei) 
 
17) Global warming: UN official in Tokyo urges Japan to set a 
greenhouse gas reduction targets during upcoming G8 Summit 
(Mainichi) 
 
18) Fair Trade Commission plans to raise fines 50 PERCENT  on 
bid-rigging practices  (Maincihi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Sankei, and Tokyo Shimbun: 
Quality-of-Life Policy Council recommends requiring food products to 
uniformly display use-by-dates 
 
Mainichi: 
Intentional contamination suspected in pesticide-tainted gyoza 
dumplings 
 
Yomiuri: 
 
TOKYO 00000409  002.2 OF 013 
 
 
Japanese history classes to be mandatory at Kanagawa senior high 
schools as early as 2012 
 
Nikkei: 
Health, Labor, and Welfare Ministry to subsidize small companies to 
help turn part-time, contract workers into regular employees 
 
Akahata: 
Chairman Shii calls for solidarity in demanding reduction and 
elimination of U.S. bases in wake of Okinawa and Iwakuni cases 
 
2) EDITORIALS 
 
Asahi: 
(1) Justice Minister Hatoyama's "false accusation" comment: He must 
watch his tongue 
(2) Open the door to foreign ownership of airports 
 
Mainichi: 
(1) Hatoyama's aptitude questioned as justice minister 
(2) Wage hike the best economic stimulus measure 
 
Yomiuri: 
(1) GDP data good, but uncertainties growing 
(2) Recommended medical fee hike insufficient to improve environment 
surrounding hospital doctors 
 
Nikkei: 
(1) Be alert against signs of economic downturn 
(2) Is country fully prepared against new flu? 
 
Sankei: 
(1) Is it necessary to resubmit human rights protection bill? 
(2) Lowering age of majority to 18 requires in-depth debate 
 
Tokyo Shimbun: 
(1) "False accusation" comment raises question about Hatoyama's 
insight 
(2) Too early for conclusion in gyoza dumpling investigation 
 
Akahata: 
(1) Time to review U.S. military presence in Japan 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 14 
 
NIKKEI (Page 2) (Full) 
February 15, 2008 
 
08:52 
Met with Toyota Chairman Fujio Cho, former Prime Minister Mori and 
Deputy Secretary General Hosoda at restaurant Blue Gardenia in Grand 
Prince Akasaka. 
 
09:33 
Met at Kantei with South Korea Ambassador to Japan Yu Myung Hwan 
joined by Chief Cabinet Secretary Machimura, Foreign Ministry Asian 
and Oceanian Affairs Bureau Director General Saiki. Met afterwards 
with Nuclear and Industrial Safety Agency head Komota. 
 
10:30 
 
TOKYO 00000409  003.2 OF 013 
 
 
Met with Deputy Foreign Minister Sasae, followed by Vice Foreign 
Minister Yabunaka. Met later with LDP Secretary General Yabunaka. 
 
11:55 
Met with special advisors to the Cabinet Okuda and Kurokawa, Special 
Advisor to the Cabinet Nishimura, Tokyo Electric Power President 
Katsumata, and Nippon Steel President Mimura. 
 
13:03 
Met with Okinawa Gov. Nakaima attended by Deputy Chief Cabinet 
Secretary Futahashi. Met again with Okuda, Kurokawa, Nishimura, 
 
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Katsumata and Mimura. 
 
14:55 
Met with New Komeito Vice Representative Higashi, followed by Deputy 
Foreign Minister Kono. 
 
16:17 
Met with Machimura. 
 
17:00 
Had regular eye checkup at Mitsui Memorial Hospital. 
 
18:45 
Returned to Kantei. 
 
19:12 
Met with former BOJ Gov. Mieno, Japan Tobacco President Nagaoka at 
Imperial Hotel. 
 
20:20 
Dined with his family at a Chinese restaurant in Higashi-Azabu. 
 
21:00 
Returned to his official residence. 
 
4) North Korean leader Kim appreciates U.S. State of the Union 
address but assumes wait-and-see attitude on nuclear issue 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 15, 2008 
 
Yasunobu Kiuchi, Beijing 
 
It was learned yesterday that in a meeting on Jan. 30 with Wang 
Jiarui, head of the International Department of the Communist Party 
of China, North Korean leader Kim Jong Il had expressed appreciation 
for President George W. Bush's last State of the Union address, 
telling Wang, "It is to be noted that there was no criticism of our 
country in the address." This was revealed by sources familiar with 
China-North Korea relations. This is the first revelation of Kim's 
remarks about the United States made in the session between Kim and 
Wang. 
 
Reportedly, Kim noted, "I will closely watch the presidential 
campaign in the U.S. to see whether the U.S. will shift (its 
attitude toward North Korea)," and indicated that even though the 
U.S. and North Korea are still at loggerheads over the question of 
nuclear program reporting, he will ascertain whether the U.S. will 
soften its stance toward his country. Given that Washington has 
demanded Pyongyang make a full, complete declaration of all its 
nuclear programs, it is likely to take time before the six-party 
 
TOKYO 00000409  004.2 OF 013 
 
 
talks are resumed. 
 
According to sources, although the denuclearization process, 
including the declaration of nuclear programs, as agreed on in the 
six-party talks, has fallen behind the schedule, Kim told Wang that 
"Our country is not responsible for this (delay)." Kim made this 
remark, apparently keeping in mind such factors as the delay in 
economic assistance by means of, for instance, the supply of heavy 
fuel oil, and America's slow move to delist the North as a state 
sponsor of terrorism. In addition, Kim reportedly indicated his 
intention to watch in what direction the Lee Myung Bak 
administration of South Korea, which is to be inaugurated on Feb. 
25, will move. 
 
Wang asked Kim to visit China, but Kim refrained from making a 
clear-cut answer. Yet, reportedly, speaking of his tour of the 
economic special zone in the south of China during his visit to that 
country in January 2006, Kim expressed his hope of visiting 
underdeveloped regions when he visits China next time. 
 
Furthermore, First Vice Foreign Minister Kang Sok Ju, who also 
attended the session, reportedly voiced dissatisfaction about 
Japan's policy of linking economic and energy assistance to a 
resolution of the abduction issue. 
 
5) U.S. military charges 4 U.S. servicemen with gang rape 
 
TOKYO SHIMBUN (Page 27) (Full) 
February 15, 2008 
 
In connection with Iwakuni-based U.S. Marines' alleged rape of a 
20-year-old Japanese woman, four Marines, aged 20-39, have been 
charged with a violation of the Uniform Code of Military Justice 
(UCMJ), sources revealed yesterday. 
 
In November last year, the Hiroshima District Public Prosecutors 
Office decided not to prosecute the four after receiving papers from 
police over their alleged gang rape. If the U.S. military 
court-martials them, such would differ from Japan's action taken 
under its criminal code as an unprecedented case. Hiroshima 
prosecutors say they are not in a position to comment. 
 
According to the Iwakuni base, the four were charged in December 
last year with crimes, including sexual violence, theft, and 
disobedience under the UCMJ. 
 
U.S. military authorities yesterday pre-examined the four at the 
Iwakuni base to determine whether or not to court-martial them. The 
victimized woman, with tears and in a trembling voice, testified 
that she was raped by the four. 
 
The woman consented to perform sexual intercourse with one of the 
four. However, she explained, "The other three guys came into the 
car during that time...and I was raped by the four." 
 
The woman did not tell Hiroshima police that she had consented with 
one of the four. Asked why, she said she felt ashamed of what she 
did thoughtlessly. 
 
She also explained that her bag and shoes were thrown away after she 
was raped. She had cash, about 12,000 yen, in her wallet and found 
almost no money in it. 
 
TOKYO 00000409  005.2 OF 013 
 
 
 
The four U.S. servicemen also appeared in court. However, they were 
not arraigned. The U.S. military will continue its preliminary 
inquiry of the four today. 
 
The four investigated the incident, suspecting that the four got to 
know the woman at an event hall in the city of Hiroshima early on 
October 14 last year and that they took her into a car and 
gang-raped her. However, the police decided not to arrest the four, 
reasoning that there was something ambiguous in her explanation. The 
police sent papers to prosecutors. The Hiroshima District Public 
Prosecutors Office decided not to prosecute the four. 
 
6) Stricter curfew planned: USFJ chief 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 15, 2008 
 
In connection with the recent rape of a third-year junior high 
school girl in Okinawa, U.S. Forces Japan (USFJ) Commander Wright, 
meeting the press in Tokyo yesterday evening, said the USFJ is now 
planning to review its educational programs and take other 
preventive steps. "We'd like to finish this in two to four weeks," 
Wright said. With this, the USFJ commander indicated that USFJ would 
reach a conclusion within a month on its plan, which includes 
imposing a stricter night curfew on U.S. military personnel and 
barring them from specially designated areas and stores. "We're 
considering every possible measure," he added. 
 
Wright took a negative view about revising the Japan-U.S. Status of 
Forces Agreement (SOFA), which stipulates legal status for U.S. 
military personnel stationed in Japan. "The SOFA has no direct 
bearing on the incident this time," he said, "so we won't be 
discussing that matter." 
 
Wright suggested the need to provide SOFA personnel with more 
education regarding sexual abuse and violence in particular. "We 
will take strong action against such acts," he stressed. USFJ set up 
a taskforce at its headquarters on Feb. 13 to work out a preventive 
action plan. The taskforce consists of commanding officers from all 
U.S. Army, Navy, Air Force, and Marine Corps bases in Japan. "We'd 
like to work it out as soon as possible," he said. 
 
7) In response to Marine rape incident, Japan, U.S. hurry to work 
out measures to prevent recurrence with aim of constraining 
anti-base sentiment 
 
YOMIURI (Page 4) (Full) 
February 15, 2008 
 
The Japanese and U.S. governments are in a hurry to work out 
measures to prevent a recurrence of similar incidents like the 
latest alleged rape of a junior high schoolgirl by a U.S. Marine in 
Okinawa. Ideas being discussed between the two governments, for 
instance, include having the U.S. military police and Japanese 
police officers jointly patrol shopping and entertainment districts. 
The installation of security cameras in such areas is also being 
mullled. 
 
Okinawa Gov. Hirokazu Nakaima yesterday called on Prime Minister 
Fukuda at the Prime Minister's Official Residence to tell him: "I 
would like you to work out measures to prevent a recurrence of 
 
TOKYO 00000409  006.2 OF 013 
 
 
similar incidents in the way that will convince the Okinawa people 
and then to make them open to the public." 
 
Late yesterday, Fukuda told the press: "The governor asked me to 
prevent a recurrence of similar incidents. We must do something in 
cooperation with Okinawa. We must prevent a recurrence (of similar 
incidents)." 
 
Fearing that the incident could have a harmful effect on bilateral 
relations, the government is quickly working out countermeasures. 
Through such measures, the government aims to constrain a growing 
anti-base sentiment among locals and contain the moves seeking to 
review the Japan-U.S. Status of Forces Agreement (SOFA). 
 
At a press briefing yesterday, the opposition People's New Party's 
Secretary General Hisaoki Kamei, speaking of the SOFA, noted, "I 
 
SIPDIS 
hope a substantial review will be made." One idea being floated 
among the opposition parties is to let local municipalities join in 
the Japan-U.S. Joint Committee established in line with the SOFA. 
One senior Foreign Ministry official stated on behalf of government 
concern: "Revising the SOFA would bring about the same confusion 
that Japan experienced when the Japan-U.S. Security Treaty was 
revised." 
 
8) In meeting with Okinawa governor, Prime Minister Fukuda promises 
to ask U.S. to take measures to prevent recurrence of similar 
incidents like rape of schoolgirl this time 
 
NIKKEI (Page 2) (Full) 
February 15, 2008 
 
In order to deal with the recent alleged rape of a schoolgirl by a 
U.S. Marine, Okinawa Gov. Hirokazu Nakaima yesterday called on Prime 
Minister Yasuo Fukuda at the Prime Minister's Official Residence and 
asked him to make a request to the U.S. side to strengthen 
discipline among the U.S. military personnel and take measures to 
prevent a recurrence of similar incidents. Fukuda gave his word to 
the governor, telling him: "I understand the feelings of the Okinawa 
people. I take your request seriously and will do all I can." 
 
In the session, Nakaima emphasized: "Every time a similar incident 
took place, I have asked the central government to take measures to 
prevent a recurrence. I would like it to work out measures to 
prevent a recurrence that can convince the Okinawa people and make 
them open to the public." 
 
9) High-ranking Pentagon official voices hope for implementation of 
Futenma relocation, expresses regret for alleged schoolgirl rape 
 
SANKEI (Page 3) (Full) 
February 15, 2008 
 
Yoshihisa Komori, Washington 
 
A high-ranking U.S. Defense Department official, giving an interview 
to the Sankei Shimbun recently, discussed a variety of issues 
associated with the Japan-U.S. security setup. The official 
expressed his hope once again for the implementation of the planned 
relocation of Futenma Air Station in accordance with the bilateral 
agreement, enhanced Japan-U.S. joint military exercises, and the 
promotion of missile defense, while expressing his regret over the 
recent alleged rape of a schoolgirl by a U.S. Marine sergeant in 
 
TOKYO 00000409  007 OF 013 
 
 
Okinawa. He also expressed hope that Japan will participate in 
security activities in Afghanistan, while emphasizing the positive 
effect of the Maritime Self-Defense Force's resumed refueling 
operation in the Indian Ocean. 
 
The Pentagon official, who is deeply involved in Japan-U.S. security 
relations under the Bush administration, played up the U.S. 
government's zero-tolerance policy toward sexual violence regarding 
the recent incident involving the U.S. sergeant, saying: "It is 
truly regrettable that such an incident occurred. I would like to 
extend my deepest sympathy toward the girl and her family." 
 
At the same time, he highlighted the importance of Futenma 
relocation, while expressing hope that the latest incident will not 
affect U.S. force realignment. He said: 
 
"There seems to be a perception in parts of Japan that the United 
States is strongly pressuring Japan, but in reality, relevant 
Japanese government offices from the prime minister on down are in 
total agreement, and they are pushing ahead with the program by 
taking the initiative at times." 
 
He also made it clear that altering the plan is not envisaged, 
noting: 
 
"The Japanese media have reported on a desire to alter the shape and 
location of the new runways to be constructed as a Futenma 
replacement facility. However, in their contacts with us, a desire 
for altering the plan has never been expressed by responsible 
Japanese offices, such as the Defense and Foreign Ministries or the 
Prime Minister's Office. Everyone has presented the relocation 
policy, as was agreed upon." 
 
Touching on the planned relocation of 8,000 U.S. Marines from 
Okinawa to Guam -- a major pillar, along with the Futenma 
relocation, in USFJ realignment -- the official said: 
 
"The United States has accepted the Japanese government's pledge to 
contribute a total of 6 billion dollars to the project, and in fact, 
we are about to launch the relocation." 
 
About the planned relocation of a U.S. carrier-based air wing from 
the U.S. Navy's Atsugi base to the U.S. Marine Corps' Iwakuni Air 
Station, the official simply said: 
 
"I will abstain from commenting on the results of the mayoral race 
so as not to give an impression that I am interfering in Japan's 
domestic affairs. The United States is advancing U.S. force 
realignment based on an agreement with the Japanese government." 
 
About overall Japan-U.S. security relations, the official mentioned 
the following as priorities: (1) promotion of USFJ realignment for 
strengthening the bilateral alliance, (2) strengthening joint 
military drills between the SDF and the U.S. military on Guam and 
other locations, and (3) promotion of the Japan-U.S. missile defense 
initiative. 
 
About the fact that Japan has resumed the MSDF's refueling operation 
in the Indian Ocean as part of the international antiterrorism 
operation, he said: 
 
"The United States greatly welcomes the step at a time like this 
 
TOKYO 00000409  008 OF 013 
 
 
when the country's burden is growing, given the bad situation in 
Afghanistan." 
 
He also indicated that Japan's action would significantly contribute 
not only to the Japan-U.S. alliance but also to international 
security and that especially between Japan and the United States, it 
would positively affect other security areas as well, including the 
abduction issue. 
 
Further, the official expressed his hope that Japan will participate 
in the area of security in the war on terror in Afghanistan in the 
form of cooperating with the United States and other countries, in 
addition to the refueling operation in the Indian Ocean. 
 
10)Iwakuni mayor wants expanded measures to mitigate base burden 
 
MAINICHI (Page 2) (Full) 
February 15, 2008 
 
Yoshihiko Fukuda, who won the earlier Iwakuni mayoral election, in 
which the question of whether to accept the relocation of 
carrier-based aircraft to Iwakuni was put to local voters, met 
separately with Defense Minister Shigeru Ishiba and Foreign Minister 
Masahiko Koumura in Tokyo last evening. In the meetings, the new 
Iwakuni mayor called for additional measures to resolve noise and 
other problems generated from the Marine Corps Air Station Iwakuni 
before starting negotiations with the central government on 
accepting the transfer plan. 
 
In his meeting with Ishiba, Fukuda requested that now frozen 
subsidies (3.5 billion yen) for constructing a new city hall be 
granted to the municipal government at an early date. Ishiba 
replied: "We want to proceed with administrative work so that we 
will be able to offer the subsidies as soon as possible." 
 
On the propriety of the aircraft transfer plan, Fukuda said: "I 
think our city will be able to cooperate on the relocation plan if 
local citizens' concerns about noise and safety are removed." 
Specifically, he cited an expansion of the area where anti-noise 
measures are undertaken and a review of the flight routes. 
 
Upon confirming Fukuda's support of the transfer plan, the Defense 
Ministry will determine how to grant the subsidies to the city. 
 
11) LDP to dispatch delegation to U.S. to explain circumstances 
behind temporary suspension of refueling mission 
 
ASAHI (Page 4) (Full) 
February 15, 2008 
 
Liberal Democratic Party Secretary General Bunmei Ibuki called on 
Prime Minister Fukuda at his office yesterday and informed him of 
the party's plan to shortly send a delegation to the United States, 
following the Maritime Self-Defense Force's resumption of its 
refueling mission in the Indian Ocean. The prime minister approved 
the plan. The delegation will explain to U.S. government officials 
and others why Japan had to suspend the operation. Coordination is 
now underway on forming a group to be headed by House of 
Representatives' Special Antiterrorism Committee Chairman Takashi 
Fukaya. 
 
12) Gov't mulls info security legislation 
 
TOKYO 00000409  009 OF 013 
 
 
 
ASAHI (Page 1) (Abridged) 
February 15, 2008 
 
The government held a meeting of its intelligence functionality 
panel yesterday, with Chief Cabinet Secretary Machimura presiding. 
In the meeting, the panel decided to establish "Cabinet Intelligence 
Analyst" posts in the Cabinet Intelligence and Research Office in 
order to enhance the intelligence functions of the prime minister's 
office. In addition, the panel has also decided to look into the 
possibility of creating an information security law with severer 
penalties against information leaks by government personnel. 
Machimura yesterday told a team, headed by Deputy Chief Cabinet 
Secretary Masahiro Futahashi, to set about specific studies. 
 
SIPDIS 
 
13) Panel in final report calls for shelving idea of Japanese CIA 
 
MAINICHI (Page 2) (Full) 
February 15, 2008 
 
The government's conference on strengthening the diplomatic and 
security information-gathering functions of the Prime Minister's 
Office (Kantei), chaired by Chief Cabinet Secretary Nobutaka 
Machimura, unveiled its final report yesterday. The report calls for 
postponing drastic organization reform, such as establishing a 
Japanese version of the CIA, and for making only minor revisions to 
the interim report released last February. The idea of strengthening 
the Kantei's intelligence capabilities was one of the eye-catching 
measures proposed by former Prime Minister Abe. 
 
The panel was launched in December 2006. Improvement in the Kantei's 
intelligence capabilities was one of the key security policies of 
the former administration, together with the idea of creating a 
Japanese-version NSC (National Security Council). The NSC initiative 
was turned into a bill without full discussion and was killed in the 
last extraordinary Diet session. Discussion on improvement in the 
Kantei's intelligence capabilities also lost momentum. 
 
In the government, there are the Cabinet Information Conference (by 
vice ministers) and the Joint Information Conference (by bureau 
director generals). These panels are composed of officials of the 
National Police Agency (NPA), the Foreign Ministry, the Defense 
Ministry, and the Public Security Intelligence Agency. But since 
they are unwilling to fully present their own information, results 
have been limited. 
 
The final report emphasizes the importance of sharing information to 
improve the Kantei's analysis capabilities and designates the 
cabinet intelligence director as intelligence coordinator. This 
measure is also unlikely to be able to contribute to promoting the 
sharing of information among government agencies, because it is 
possible for government offices to make a report directly to the 
Kantei. 
 
The government plans to assign five intelligence analysts in the 
Cabinet Intelligence and Research Office this April. The 
introduction of analysts was included in the interim report. It is 
looking into appointing experts from relevant government agencies, 
as well as from the private sector. They will analyze and evaluate 
information forwarded from government offices and draft a report on 
intelligence analysis from medium- and long-term perspectives. 
 
 
TOKYO 00000409  010 OF 013 
 
 
This government expects this measure will work effectively to 
reinforce the intelligence functions of the research office. But 
some are skeptical of its effectiveness, focusing on the fact that 
the post of cabinet intelligence director, the top of the research 
office, has been held by former NPA officials and that the office is 
considered an outpost of the NPA. 
 
Following the 2001 terrorist attacks in the U.S., the government and 
the Liberal Democratic Party have come up with a number of reports 
with recommendations on strengthening the Kantei's information 
capabilities. Many ideas were presented, but all of them were 
dropped in the final report. 
 
14) Senior DPJ members to support reelection of Ozawa as party head 
 
SANKEI (Page 5) (Full) 
February 15, 2008 
 
Democratic Party of Japan (DPJ or Minshuto) Deputy President Naoto 
Kan and Azumi Koshiishi, chairman of the DPJ caucus in the House of 
Councillors, announced yesterday in succession that they would 
support the reelection of Ichiro Ozawa in the September presidential 
election. Secretary General Yukio Hatoyama and Diet Affairs 
Committee Chairman Kenji Yamaoka have already expressed their 
intentions to back Ozawa. As it stands, the DPJ leaders have now 
united with an eye on the next House of Representatives election. 
 
At a press conference yesterday, Kan revealed his intent to aim at 
an early Lower House dissolution and general elections. He stated: 
"I would like to take over the reins of government under the 
leadership of President Ozawa" even if the Lower House election is 
not conducted by September. He also emphasized: 
 
"It is only natural for the DPJ to fight in the next Lower House 
election under President Ozawa. There is a proverb that 'Don't 
change horses in midstream when a battle is going on.'" 
 
Koshiishi said: "We will take over political power under the 
leadership of President Ozawa. There is no need to confirm it." 
 
It is most likely now that Ozawa will be reelected as president even 
if a Lower House election does not take place by September and he 
commits no blunders. However, some have pointed to the possibility 
that Yoshito Sengoku, a former secretary general, Yukio Edano, a 
former policy chief, and other members, who have distanced 
themselves from Ozawa, will field a candidate for the leadership 
race. 
 
15) DPJ-Keidanren talks for first time in three years: Gaps in views 
on special-purpose road funds 
 
YOMIURI (Page 4) (Full) 
February 27, 2008 
 
An opinion-exchange meeting between Democratic Party of Japan (DPJ 
or Minshuto) President Ichiro Ozawa and Japan Business Federation 
(Nippon Keidanren) Chairman Fujio Mitarai was held yesterday at a 
Tokyo hotel. Top-level talks between them are the first since the 
ones held about three years' ago between former DPJ President 
Katsuya Okada and former Nippon Keidanren Chairman Hiroshi Okuda. 
Relations between the party and big business have thus far not been 
close. The DPJ has apparently moved forward to strengthen channels 
 
TOKYO 00000409  011 OF 013 
 
 
with business circles in the run-up to the next Lower House 
election. 
 
At the outset of the meeting, Mitarai requested, "I would like the 
DPJ as the top party in the Upper House to promote reform through 
constructive and proactive talks with the government and the ruling 
parties." Ozawa noted, "It appears that Keidanren's evaluation of 
the DPJ's stance is harsh. However, I would like you to understand 
that if we discuss matters, based on the mechanism of traditional 
politics and administration, we will get nowhere in our efforts to 
settle problems." He thus sought understanding from Keidanren 
regarding the policy of his party, which is aiming at taking over 
the reins of government. 
 
Concerning the key tax system-related bills, the DPJ explained its 
policy of abolishing special-purpose road construction revenues and 
reallocating the funds for other uses. However, Keidanren's side 
called for early passage of the fiscal 2008 budget bill in order to 
avoid turmoil in the national life, highlighting a gap in their 
views on the issue. 
 
16) DPJ to approve of government's plan to appoint Muto as BOJ 
governor 
 
SANKEI (Page 1) (Full) 
February 15, 2008 
 
The main opposition Democratic Party of Japan's (DPJ or Minshuto) 
decided yesterday to approve the government's plan to promote Vice 
Governor of Japan Toshiro Muto, 64, a former administrative vice 
finance minister, to the BOJ governor's post. Following the DPJ's 
decision, the government is now in the final stage of coordination 
for presenting its appointment plan to the Diet as early as Feb. 19. 
Kyoto University Prof. Masaaki Shirakawa, 58, a former BOJ official, 
and Rikkyo University Prof. Teizo Taya, 62, an academic expert, are 
strong candidates for BOJ vice governor. 
 
The ruling Liberal Democratic Party (LDP) and DPJ have agreed to 
avoid a blank period of BOJ governor after the March 19 expiration 
of incumbent Gov. Toshihiko Fukui. 
 
Many DPJ lawmakers opposed the plan to appoint Muto as governor for 
the reason that financial authorities should not get involved in 
monetary policy. However, there are strong calls for the appointment 
of Muto as governor in the BOJ. There is also concern that If Japan 
picked the second best person, such would prompt international 
society's distrust in Japan's economy, according to a government 
source. Under such circumstances, the government and ruling parties 
were waiting for anti-Muto moves in the DPJ calming down. The DPJ 
finally decided to approve the government's plan for the reason that 
Muto is not a person who would impede the stability of currency 
values. 
 
Yesterday morning LDP Secretary General Bunmei Ibuki, Diet Affairs 
Committee Chairman Tadamori Oshima and DPJ Diet Affairs Committee 
Chairman Kenji Yamaoka exchanged views on the matter. After the 
meeting, Ibuki met with Prime Minister Yasuo Fukuda. Fukuda met last 
night with former BOJ Gov. Yasushi Mieno and other officials. 
 
An LDP executive member stressed last evening: "It is reasonable for 
the government to appoint a person whom financial authorities and 
former BOJ officials recommend." General Council Chairman Toshihiro 
 
TOKYO 00000409  012 OF 013 
 
 
Nikai told reporters: "An appropriate person should be picked as 
early as possible." 
 
17) Measures to combat global warming 
 
MAINICHI (Page 3) (Full) 
February 15, 2008 
 
Visiting United Nations Framework Convention on Climate Change 
(UNFCCC) Executive Secretary Yvo de Boer held a press conference in 
Tokyo yesterday. Referring to the Lake Toya Summit in Hokkaido in 
July, he urged Japan to come up with a specific numerical target for 
greenhouse gas emissions cuts as the host nation, noting, "Japan can 
lead discussions by coming up with an ambitious mid-term goal. The 
world wants definiteness on this issue." He also called on Japan to 
introduce emissions rights trading, which Japanese business circles 
are strongly opposing. 
 
The executive secretary noted participants at the G-8 will need to 
show the extent they intend to cut greenhouse gas emissions by 
¶2020. 
 
Regarding the use of an emissions rights trading market, he said, 
"It is the most sophisticated method of curbing climate change. 
Whoever the next U.S. president is, all industrialized countries 
will be looking in this direction." He also stressed, "Likewise, 
Japan will be put to the test regarding whether it will adopt this 
method. It will be possible to create a universal mechanism even 
without the participation of Japan." 
 
18) FTC presents draft amendment to AML: 50 PERCENT  increase in 
administrative surcharge to be imposed on companies that lead 
bid-rigging 
 
MAINICHI (Page 3) (Full) 
February 15, 2008 
 
The Fair Trade Commission (FTC) yesterday reported the outline of a 
bill amending the Anti-Monopoly Law (AML) at a meeting of the 
Liberal Democratic Party's (LDP) AML Research Council. The FTC 
revealed its policy of increasing an administrative surcharge 
imposed on companies that played a leading role in bid-rigging and 
cartel activities by 50 PERCENT . It also showed calculation rates 
applied to illegal business practices to be newly subject to 
administrative surcharges. The FTC plans to submit the amendment 
bill to the current Diet session after obtaining approval from the 
ruling camp. 
 
Though the FTC had decided to increase administrative surcharges 
imposed on companies that played a leading role in bid-rigging, the 
scope of the increase had not been set. An administrative surcharge 
imposed on a leading manufacturing that led bid-rigging would be 
raised from the current 10 PERCENT  of sales achieved through 
illegal business practices to 15 PERCENT . 
 
The calculation rates for illegal business practices subject to 
administrative surcharges will be 3 PERCENT  of sales achieved by 
false labeling, including false or confusing labeling, and 6 PERCENT 
 of sales achieved through such monopolistic practices as excluding 
competitors by such means as dumping. In the case of the abuse of 
dominant bargaining position, in which leading companies make 
unlawful demands to suppliers or subcontractors, trading amounts 
 
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exceeding 2 billion yen will subject to the punishment with an 
administrative surcharge of 0.5 PERCENT  of the trading amounts. 
 
SCHIEFFER