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UNCLAS SECTION 01 OF 11 TOKYO 000433 
 
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 02/20/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Aegis collision with fishing boat: 
4) It took 120 minutes before Prime Minister Fukuda was informed 
about the Aegis destroyer's collision, 90 minutes before Defense 
Minister Ishiba notified  (Yomiuri) 
5) Aegis accident seen as another blow for the Fukuda Cabinet and 
for the Defense Ministry's reform efforts  (Mainichi) 
6) Defense Ministry's crisis management system being questioned 
after Aegis collision blunder  (Yomiuri) 
7) Eruption of criticism of handling of Aegis collision  (Nikkei) 
8) Democratic Party of Japan (DPJ) pursuing the accountability of 
Defense Minister Ishiba after the Aegis accident  (Nikkei) 
 
USFJ incidents: 
9) U.S. forces Japan forbids military personnel in Okinawa, Iwakuni 
to leave base for the time being  (Asahi) 
10) USFJ designates Feb. 22 as a "day of reflection"  (Yomiuri) 
 
11) Vice Minister Yabunaka to travel to China for talks on the 
gas-field development issue  (Yomiuri) 
 
12) DPJ President Ozawa will visit South Korea today  (Asahi) 
 
Political agenda: 
13) Lower House plenary today to deliberate the provisional gasoline 
tax issue  (Asahi) 
14) DPJ will not budge on the tax issue  (Mainichi) 
15) Cabinet decision put off on controversial issue of restricting 
foreign investment in airports  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Aegis destroyer began trying to avoid collision with fishing boat 
only shortly beforehand 
 
Mainichi: 
Atago had obligation under law to avoid collision 
 
Yomiuri: 
Destroyer became aware of boat only two minutes before collision 
 
Nikkei: 
Health insurance premiums for corporate employees to be raised on 
higher care costs for elderly 
 
Sankei and Tokyo Shimbun: 
Aegis destroyer became aware of boat only one minute before 
collision; fishermen still missing 
 
Akahata: 
MSDF vessel collides with fishing boat; Search for father, son 
underway 
 
2) EDITORIALS 
 
TOKYO 00000433  002 OF 011 
 
 
 
Asahi: 
(1) Why could Aegis destroyer not avoid collision? 
(2) Toshiba's speedy decision to give up on HD-DVD 
 
Mainichi: 
(1) Aegis destroyer needed more caution 
(2) Greater efforts required for next-generation DVDs 
 
Yomiuri: 
(1) An Aegis-equipped vessel should never hit a boat 
(2) Unified DVD standards good news for consumers 
 
Nikkei: 
(1) Toshiba's decision on DVD business 
(2) Lessons not learned form Natasha accident 
 
Sankei: 
(1) Aegis accident: MSDF lacks sense of intensity 
(2) Personnel selection for key positions requiring Diet approval 
 
Tokyo Shimbun: 
(1) Aegis collision should not have occurred 
(2) Chain of distrust in gyoza must be terminated 
 
Akahata: 
(1) Aegis destroyer had obligation to avoid collision 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 19 
 
NIKKEI (Page 2) (Full) 
February 20, 2008 
 
08:00 
Met with Chief Cabinet Secretary Machimura, Land, Infrastructure and 
Transport Minister Fuyushiba and Defense Minister Ishiba in the Diet 
building. Attended meeting of ministers-related to pension-records 
mess. Attended cabinet meeting afterward. Machimura remained. 
 
09:26 
Met at Kantei with Deputy Chief Cabinet Secretary Ono, followed by 
Deputy Chief Cabinet Secretary Futahashi. 
 
10:23 
Met with LDP Upper House Chairman Otsuji, followed by former Saitama 
Gov. Tsuchiya. Met later with Vice Foreign Minister Yabunaka, 
followed by Special Advisor Ito. 
 
12:04 
Met with Machimura. 
 
13:02 
Attended Lower House plenary session. 
 
15:58 
Met with LDP National Strategy Headquarters Secretary General 
Sugiura. 
 
16:07 
Met at Kantei with Ishiba, Vice Defense Minister Masuda and MSDF 
 
TOKYO 00000433  003 OF 011 
 
 
Chief of Staff Furukawa. 
 
17:30 
Attended IT Strategy Headquarters meeting. 
 
18:40 
Met Small and Medium-sized Enterprises Research Commission Chairman 
Kaneko, followed by New Komeito leader Ota and Small and 
Medium-sizes Enterprises Revitalization Headquarters chief 
Shirahama. 
 
19:29 
Met editorial writers of various media companies at ANA 
Intercontinental Hotel Tokyo. 
 
21:07 
Returned to his official residence. 
 
4) MOD's poor communication system again exposed; Prime minister not 
informed of Aegis accident for 120 minutes, defense minister for 90 
minutes 
 
YOMIURI (Page 3) (Full) 
February 20, 2008 
 
The Aegis collision incident exposed the Ministry of Defense's delay 
in transmitting information, as seen in the fact that it took an 
hour and a half to make its initial report on the incident to 
Defense Minister Shigeru Ishiba and two hours to Prime Minister 
Yasuo Fukuda. 
 
What is especially problematic is the fact that it took 50 minutes 
to report on the matter to the defense minister after its initial 
report to the Maritime Staff Office. MOD press officer Toyoda 
explained in a press conference yesterday: "It was because the 
officer in charge made contact with the vice minister and bureau 
chief in stages after confirming the facts." 
 
According to the vice-defense minister notification regulations on 
accidents, the Staff Offices of the Ground, Maritime, and Air 
Self-Defense Forces or the Joint Staff are required to report minor 
accidents to the defense minister via internal bureaus. In the case 
of a major accident, they are required to report directly to the 
defense minister within one hour by skipping internal bureaus. In 
the wake of the Aegis accident yesterday, the Maritime Staff Office 
reported it only to internal bureaus, as in the case with a minor 
accident. 
 
Given the situation, Prime Minister Fukuda yesterday morning ordered 
relevant government offices to speed up communication. Defense 
Minister Ishiba called last evening Vice-Defense Minister Kohei 
Masuda to the Prime Minister's Office (Kantei) and reprimanded him, 
saying: "Information reached me quite late. It was extremely bad." 
 
Ishiba then said to the press: "I don't expect real-time 
information, but information must reach me in about 10 minutes. I 
would like to enforce a system in which an initial report doesn't 
have to be that accurate." The prime minister emphatically said last 
night: "It took too long for information to reach the cabinet 
minister in charge. The system must be corrected. I want the SDF and 
the Defense Ministry to seriously think about what is really 
important." 
 
TOKYO 00000433  004 OF 011 
 
 
 
A delay in communication within MOD has long been regarded as a 
problem. When a Chinese Navy nuclear submarine entered waters new 
Ishigaki Island, Okinawa Prefecture, in 2004, it took the then 
Defense Agency chief nearly three hours to issue an order for 
maritime security operations due to a delay in reporting the 
incident to him. 
 
The fact that information on the underreported fuel Japan provided 
to a U.S. supply ship in the Indian Ocean had not gone beyond the 
responsible division also came to light last year. In the wake of 
former Vice-Defense Minister Takemasa Moriya's lavish entertainment, 
including golf outings, by a defense contractor, Defense Minister 
Ishiba has decided to require all senior ministry officials carry 
GPS-equipped cell phones as part of his effort to improve the 
internal communication system. But changing the nature of MOD does 
not seem easy. 
 
5) Fukuda again to blame 
 
MAINICHI (Page 2) (Full) 
February 20, 2008 
 
The Atago, an Aegis-equipped destroyer of the Maritime Self-Defense 
Force, collided with a fishing boat early yesterday in Pacific 
waters off Chiba Prefecture, causing the boat to capsize and leaving 
its two crewmen missing. The accident will likely be a serious blow 
to Prime Minister Yasuo Fukuda, with his cabinet's support rate 
edging down. The government, belated in taking initial action, is 
now being called into question over its planned reform of the 
Defense Ministry under the initiative of the prime minister's office 
or Kantei. Fukuda has been trying to boost his government. However, 
he is now saddled with another difficult problem. 
 
Last week, the Kantei launched new advisory panels and announced 
their members in an aim to make an appeal on Fukuda's initiative. 
 
In January, Fukuda addressed the Diet with his policy speech, 
advocating his idea of "consumer-oriented administration." The 
Kantei has now set up an advisory panel of experts to study this 
idea, and its first meeting was held on Feb. 12. On the following 
day, Feb. 13, Fukuda appointed former Financial Services Minister 
Tatsuya Ito as his special advisor for social security. In addition, 
Japan this summer will host the Group of Eight (G-8) summit at 
Toyako (Lake Toya) in Hokkaido. With this forthcoming event in mind, 
the Kantei will launch another advisory panel this week to discuss 
global warming countermeasures. 
 
The accident occurred just when the Kantei was about to gear up to 
turn Fukuda's administration around, complicating his efforts before 
they could even start. 
 
Defense Minister Shigeru Ishiba was informed of the accident one and 
a half hours after its occurrence. Fukuda was notified two hours 
later. Chief Cabinet Secretary Nobutaka Machimura, meeting the press 
yesterday, reiterated that Fukuda gave the order for rescue. In the 
sea, however, rescue activities had been going on without the prime 
minister's order for as long as two hours. 
 
In November 2004, a Chinese nuclear-powered submarine was spotted 
violating Japan's territorial waters. In that event as well, the 
government had a problem with its communication. In September 2005, 
 
TOKYO 00000433  005 OF 011 
 
 
the then Defense Agency issued a notification of reporting 
guidelines under the name of its administrative deputy director 
general (vice minister). The notification expressly stipulated that 
the Self-Defense Forces must report any serious incident or accident 
from SDF officers in charge to the defense minister via his 
secretary. If the Defense Ministry had followed this regulation, the 
 
SIPDIS 
report this time could have been shortened by nearly one hour. 
 
The Kantei is to blame for the belated action. In this case, the 
Defense Ministry and the MSDF are expected to be directly under 
fire. However, rapid communication is on the agenda of an advisory 
panel that was set up at the Kantei in December last year for a 
reform of the Defense Ministry. The government's failure to 
communicate without delay this time shows that the panel's 
discussions under the Kantei's initiative have produced no results. 
 
Ishiba called on Fukuda at the Kantei yesterday evening. Ishiba then 
reported a plan to create a system for the GSDF, MSDF, and ASDF 
chiefs of staff to contact the defense minister in an emergency. 
However, it was too late. 
 
6) Aegis ship hits boat: Concern accident could lower already 
sagging cabinet support ratings; Opposition parties determined to 
pursue crisis management 
 
YOMIURI (Page 4) (Full) 
February 20, 2008 
 
A delay in reporting the collision caused by the Maritime 
Self-Defense Force's Aegis-equipped destroyer to Prime Minister 
Fukuda has revealed that the government's crisis management system 
is insufficient. Voices concerned about the possibility that this 
could further lower already-sluggish cabinet approval ratings are 
growing in the ruling parties. The opposition camp is determined to 
pursue the defectiveness of the government's crisis-management 
system and to shed light on the cause of the accident. 
 
One senior official of the Liberal Democratic Party (LDP) yesterday 
impatiently said, "The accident will affect national sentiment. If 
it becomes clear that the prime minister lacks leadership ability, 
cabinet support rates will drop 5 points or so at once." Some ruling 
party members said that the accident occurred at the worst possible 
time for the administration, as the prime minister had just launched 
efforts to set up an experts' council to come up with his own policy 
in line with the administration's slogan of "administration for 
working people and consumers." If he comes under fire for his 
response to the accident, his efforts to place his imprint on the 
administration would come to nothing. 
 
Reflecting a sense of alarm, criticism of the Defense Ministry 
dominated a meeting of the LDP General Council. Secretary General 
Ibuki demanded detailed accounts from a bureau director general 
representing the Defense Ministry. When he explained what happened, 
participants voiced criticism. 
 
Alert to the possibility of the opposition parties' pursuit of 
responsibility reaching the prime minister and Defense Minister 
Ishiba, the ruing parties stressed that though there was a delay in 
the report, the prime minister properly gave an order to rescue the 
victims. 
 
In response, Democratic Party of Japan (DPJ or Minshuto) President 
 
TOKYO 00000433  006 OF 011 
 
 
Ozawa pointed out, "Something that should not have happened has 
occurred. The government's emergency communication system is not 
working in the communications area or on any front." Regarding the 
defense minister's responsibility, he simply said, "He is no doubt 
responsible. However, there are various ways for him to take 
responsibility." 
 
The predominant view at a meeting of the DPJ's Foreign Affairs and 
Defense Division was that the delay in the report revealed the 
government's crisis control system is unreliable. 
 
7) Flaws in communications network exposed by Aegis destroyer's 
collision with fishing boat; criticism erupts over MOD's slow 
response; crisis management questioned 
 
NIKKEI (Page 2) (Full) 
February 20, 2008 
 
With the collision yesterday of the Aegis destroyer Atago and a 
fishing boat, the government was busy holding meetings to deal with 
the accident. Meanwhile, the accident exposed flaws in the 
government's communications network for emergencies, with a first 
report of the accident to Defense Minister Shigeru Ishiba being 
delayed. Depending on the cause of the accident, the defense 
minister may be forced to take responsibility. The opposition 
parties are gearing up to grill the government over its initial 
insufficient response to the accident, together with the series of 
scandals involving the Ministry of Defense (MOD). The Aegis 
collision is certain to deal a blow to the Fukuda administration. 
 
"Indeed, the report on the collision came too late. Why did it 
happen? We need to investigate it," Prime Minister Yasuo Fukuda said 
in a firm tone in response to questions from the press corps at the 
Prime Minister's Official Residence (Kantei) yesterday evening. The 
defense minister was informed of the collision one hour and 30 
minutes after it happened, and the prime minister two hours 
afterward. According to aides to the prime minister, Fukuda learned 
of the collision at around 6:00 a.m. at the Kantei residence. Around 
when TV news programs reported on the collision, Fukuda was informed 
by his secretary about the accident. Reportedly, at the time Fukuda 
told his secretary in an angry voice: "Why did the report come so 
late?" 
 
The collision is the first test of the Fukuda administration's 
crisis management capability. The moment he received the first 
report of the accident, Fukuda instructed relevant ministries and 
agencies via his secretary to "make every effort to search for 
missing fishermen." At 8:00 a.m., Fukuda called Chief Cabinet 
Secretary Nobutaka Machimura, Ishiba, Minister of Land, 
 
SIPDIS 
Infrastructure and Transport Tetsuzo Fuyushiba to the Diet for 
emergency consultation. Machimura moved up his regular press 
briefing and emphasized that the government intends to quickly 
rescue the missing fishermen. 
 
The Aegis accident, however, will be certain to have a negative 
impact on the government as the cause of the accident is 
investigated and if the Self-Defense Forces' (SDF) initial response 
is found to be problematic. MOD and the SDF have been already 
plagued by a series of scandals, including former Vice Defense 
Minister Takemasa Moriya's bribe-taking, information leakage on the 
Aegis system, and the correction of the amount of fuel supplied by a 
Maritime Self-Defense Force (MSDF) vessel to other countries' 
 
TOKYO 00000433  007 OF 011 
 
 
vessels in the Indian Ocean. In addition, the approval ratings for 
the Fukuda cabinet have been trending downward. Concern is growing 
that the accident will affect management of the government. 
 
Even in the ruling bloc, there was an eruption of criticism. At a 
joint session of the ruling Liberal Democratic Party's (LDP) 
National Defense Department and other committees, severe views were 
voiced by participants with one member arguing, "(The SDF) will lose 
the public's confidence because of the succession of scandals." 
Another participant noted, "Such an accident defies common sense." 
The junior coalition partner New Komeito's Representative Akihiro 
Ota, after meeting with Fukuda at the Kantei, told the press: "The 
most serious problem was that the first report came too late." 
 
Similar accidents have occurred in the past. One was the collision 
of the MSDF's submarine Nadashio and a fishing boat in July 1988. 
Another was the collision of the U.S. nuclear-powered submarine and 
the training boat Ehime-maru. 
 
In the case of the Nadashio accident, then Defense Agency 
Director-General Tsutomu Kawara resigned to take responsibility. 
When the Ehime-maru collision occurred, then Prime Minister Yoshiro 
Mori came under heavy fire for continuing to play golf even after 
learning of the collision. Depending on how this case unfolds, the 
Fukuda administration may come under fire for its inability to work 
out any effective measure to deal with various problems involving 
MOD and the SDF. In this sense, the Fukuda administration is faced 
with a new destabilizing factor. 
 
8) DPJ to pursue defense minister's responsibility 
 
NIKKEI (Page 2) (Excerpts) 
February 20, 2008 
 
At a press briefing yesterday, Ichiro Ozawa, president of the major 
opposition Democratic Party of Japan (DPJ), spoke of Defense 
Minister Shigeru Ishiba's responsibility for yesterday's collision 
involving an Aegis destroyer and firmly noted: "We need to inquire 
about why it occurred. No doubt he is responsible for it." Referring 
to the delayed notification in the government, Ozawa said: "A quick 
response system in emergencies has not yet been established in every 
aspect." Ozawa went on to say: "The Constitution has no provision 
for crisis management. Since the war, Japan has lacked a sense of 
crisis management." 
 
9) USFJ slaps curfew on all troops in Okinawa, Iwakuni 
 
ASAHI (Page 1) (Full) 
February 20, 2008 
 
In the wake of an Okinawa-based U.S. Marine's alleged rape of a 
junior high school girl and other incidents, U.S. Forces Japan 
announced yesterday evening that U.S. military personnel and others 
belonging to U.S. military bases in Okinawa Prefecture and in the 
city of Iwakuni, Yamaguchi Prefecture, will be prohibited from going 
out of their respective bases for the time being from 7:30 a.m. 
today. This action follows a series of incidents brought about by 
U.S. servicemen in Japan. In addition, USFJ also said it had 
designated Feb. 22 as a "day of reflection" for all U.S. troops in 
Japan. 
 
The USFJ-announced curfew has been imposed on U.S. military 
 
TOKYO 00000433  008 OF 011 
 
 
personnel and others living on the premises of U.S. military bases 
in Okinawa Prefecture and in the city of Iwakuni, according to USFJ 
and the Foreign Ministry. Their off-base activities will be limited 
to minimum necessary places like workplaces, chapels, schools, and 
medical facilities. 
 
U.S. servicemen and other U.S. military personnel living in off-base 
housing are also mandated to stay on base, except for driving or 
using a taxi between their bases and houses, according to USFJ and 
the Foreign Ministry. The curfew is indefinite. 
 
On Feb. 20, designated as a day of reflection, USFJ will scale back 
on training and other programs within a scope which will not affect 
its operations. All U.S. troops in Japan will be urged to think of 
their professionalism. 
 
The curfew this time will be imposed on about 30,000 U.S. military 
personnel, USFJ said. 
 
10) USFJ designates February 22 as "day of reflection" 
 
YOMIURI (Page 38) (Abridged slightly) 
February 20, 2008 
 
In the wake of a series of incidents, including the alleged sexual 
assault (on Feb. 10) by a U.S. Marine in Okinawa, U.S. Forces Japan 
announced yesterday that it will impose a curfew for the time being 
on all Army, Navy, Air Force, and Marine service members in Okinawa 
starting on the morning of Feb. 20. Although a curfew banning going 
out at night has been imposed in the past, the one this time is 
unusually strict, allowing even service members living off base to 
commute only between their bases and homes, regardless of the time. 
 
Also designating February 22 as a "day of reflection," USFJ decided 
to require all service members in Japan to confirm their strict 
observance of discipline. The U.S. military also released a 
statement yesterday reading: "Commander Bruce Wright will 
immediately respond to any unacceptable conduct by U.S. service 
members in cooperation with the Japanese government. All U.S. 
service members must act responsibly even while off duty." 
 
11) Sub-cabinet-level meeting on gas fields: Yabunaka to visit China 
starting on Feb. 22 
 
YOMIURI (Page 4) (Full) 
February 20, 2008 
 
It has been confirmed that Vice Foreign Minister Mitoji Yabunaka 
will visit China on Feb. 22-23 to hold sub-cabinet-level talks with 
his counterpart Wang Yi. The aim is to undertake coordination of 
views on the joint development of gas fields in the East China Sea 
in the run-up to Chinese President Hu Jintao's visit to Japan slated 
for April. 
 
The Japanese government will call on China to include in a sea area 
subject to joint development not only the Japanese side of the 
Japan-China median line but also the Chinese. Talks with China, 
which is reluctant to accept the proposal, are expected to be 
confrontational. Concerning the tainted Chinese-made gyoza, both 
countries will confirm cooperation in the investigation into the 
cause of the incident. Chinese State Councilor Tang Jiaxuang will 
visit Japan today and discuss that and other issues with Prime 
 
TOKYO 00000433  009 OF 011 
 
 
Minister Fukuda. 
 
12) DPJ's Ozawa off to Seoul today 
 
ASAHI (Page 4) (Full) 
February 20, 2008 
 
Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa 
will visit South Korea today to meet tomorrow with President-elect 
Lee Myung Bak. He is expected to exchange views with Lee on the East 
Asia situation, including the Korean Peninsula, ahead of Prime 
Minister Yasuo Fukuda, who will visit Seoul to attend the 
inauguration of President Lee on Feb. 25. Attention is fixed on 
whether Ozawa will be more specific on the issue of whether to give 
permanent foreign residents suffrage in local elections, over which 
there remain different views in the DPJ. 
 
Ozawa will visit South Korea for the first time since he assumed his 
present post. Asked by reporters about his planned meeting with Lee, 
Ozawa said yesterday: "In the world, Japan and South Korea share 
many common things. Cooperating based on a relationship of trust is 
extremely effective." He is expected to exchange views on the issue 
of suffrage for permanent foreign residents, as well as North 
Korea's nuclear program and the Chinese economy. He will also give a 
keynote speech at a symposium in which former U.S. Secretary of 
State Henry Kissinger and others will take part. 
 
13) Lower House begins debate on provisional tax rates 
 
ASAHI (Page 4) (Full) 
February 20, 2008 
 
The House of Representatives yesterday started debate on tax 
reform-related bills, which include measures to retain for another 
10 years the provisional gas and other auto-related taxes. The focus 
is on whether the ruling and opposition camps will be able to reach 
a conclusion by the end of March on the bills following the 
mediation by the leaders of the two Diet chambers. However, 
maneuvering between the ruling parties and the largest opposition 
Democratic Party of Japan (DPJ or Minshuto) has continued over 
whether the DPJ will agree to hold consultations on revising the 
bills by presenting its own counterproposals and over whether the 
bills will be amended at the Lower House or House of Councillors. 
 
When asked in yesterday's Lower House Budget Committee session about 
the possibility of revising the government's bills, Prime Minister 
Yasuo Fukuda responded: "The opposition camp should present its own 
bill if it wants to revise the government's bills. Vice President 
Katsuya Okada said: "If we agree to implement the present road 
construction plan, the road plan will naturally not be completely 
implemented." A senior DPJ member, however, argued: "If we show our 
bill in detail, the ruling camp would attack us, arguing that it 
will be impossible to build road under the DPJ's plan." As it 
stands, there remain the two views in the largest opposition party. 
 
The ruling coalition will be forced to make tough decisions on 
whether to secure a time for deliberations on revising the bills at 
the Upper House by getting them through the Lower House as early as 
in February as the provisional taxes will expire at the end of March 
and on whether to agree to revise them at the Lower House, assuming 
that deliberations will be dragged out at the opposition-controlled 
Upper House. 
 
TOKYO 00000433  010 OF 011 
 
 
 
In yesterday's Lower House plenary session, the opposition bloc 
pursued the way of using revenue from the gasoline and other 
auto-related taxes. DPJ's Shinichiro Furumoto stated: "Without even 
making an estimate, a ten-year road construction plan has been 
decided." Fukuda repeatedly answered: "About 10 more years are 
needed for the road construction." 
 
In a meeting of the Lower House Financial Affairs Committee held 
after the plenary session, the DPJ called on the government to 
present policy assessments, which are preconditions for a mid-term 
plan of the 10-year road construction program, Finance Minister 
Fukushiro Nukaga responded: "Policy assessments are not carried out 
on individual items. We will assess through annual budget 
compilation from now on." Debate became tangled since the DPJ was 
not satisfied with the answers. After a long interruption, the 
session ended before the scheduled time. 
 
14) LDP, DPJ unable to move to revise bill amending taxation law, 
with some voicing opposition 
 
MAINICHI (Page 2) (Full) 
February 20, 2008 
 
The focus of attention in deliberations on a bill amending the 
Special Taxation Measures Law is on whether a conclusion would be 
reached by the end of this fiscal year in accordance with a proposal 
made by the heads of both houses of the Diet. On whether to revise 
the bill, both the Liberal Democratic Party (LDP) and the Democratic 
Party of Japan (DPJ) remain unable to reach an agreement, as some 
members are against it. 
 
LDP House of Councillors Diet Affairs Committee Chairman Seiji 
Suzuki said in a press conference yesterday: "The idea of revising 
the bill has not been talked about. I have heard nothing about it 
from the House of Representatives, so I do not have the idea in 
mind." The ruling camp is aiming to get the tax bill through the 
Lower House by the end of this month in order to pass the bill and 
the budget bill for fiscal 2008 within this fiscal year. Given the 
situation, revising the bill in the Lower House seems difficult. As 
such, the Upper House also finds it impossible to refer to revisions 
for now. 
 
In the ruling camp, though, many members think it is necessary to 
make revisions in order to bring the DPJ into voting on the tax 
bill. Such suggestions are floating as shorting the period of 
extension of the current provisional tax rates from the proposed ten 
years to five years. 
 
On the mid-term plan on road construction, for which 59 trillion yen 
is said to be needed over the next decade, LDP Policy Research 
Council Chairman Sadakazu Tanigaki hinted that the plan could be 
revamped, remarking: "It (59 trillion yen) is the upper limit. The 
amount could be reduced." 
 
But many LDP members think that this "is not sufficient to draw out 
a flexible stance from the DPJ," as a senior LDP Policy Research 
Council member said. Reflecting such a view, some lawmakers are 
calling for adding more to the roughly 190 billion yen put in the 
general account. But some LDP members are expected to raise 
objections to a delay in road construction. At it stands, the ruling 
camp remains unable to unify views. 
 
TOKYO 00000433  011 OF 011 
 
 
 
In the DPJ, there are also members who publicly assert that the 
provisional tax rates should be maintained. But a party executive is 
trying to forestall the ruling bloc by saying: "If full discussion 
is not conducted, the conditions set in the proposal by the speakers 
from both houses will not be satisfied." 
 
15) Government puts off cabinet decision on bill on airport 
ownership to March, reflecting split 
 
MAINICHI (Page 2) (Full) 
February 20, 2008 
 
The government decided yesterday to put off to March a cabinet 
decision on a bill amending the Airport Improvement Law to limit 
foreign stakes in airport operators. The decision reflects growing 
dissent from some cabinet members. Chief Cabinet Secretary Nobutaka 
Machimura tried to solicit an agreement, but he failed to iron out 
differences between the Ministry of Land, Infrastructure, & 
Transportation, which calls for restrictions by emphasizing 
security, and the Financial Services Agency, which voices concern 
about a decline in foreign direct investment. The issue is likely to 
bog down. 
 
The Transport Ministry is developing a bill to limit the voting 
rights of foreign investors to less than one-third in such major 
airport operators as Narita International Airport Corp. and Japan 
Airport Terminal Co. 
 
But Financial Services Minister Yoshimi Watanabe and other two 
cabinet ministers have expressed opposition to the bill. Concerned 
about the lack of unity in the cabinet, bureau directors of relevant 
government agencies are now restudying the bill under the lead of 
Machimura. 
 
SCHIEFFER