VZCZCXRO2198
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0444/01 0510808
ZNR UUUUU ZZH
P 200808Z FEB 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1857
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 8574
RUEHFK/AMCONSUL FUKUOKA 6182
RUEHOK/AMCONSUL OSAKA KOBE 9847
RUEHNAG/AMCONSUL NAGOYA 4759
RUEHKSO/AMCONSUL SAPPORO 6785
RUEHBJ/AMEMBASSY BEIJING 1758
RUEHUL/AMEMBASSY SEOUL 7826
RUCNDT/USMISSION USUN NEW YORK 8424

UNCLAS SECTION 01 OF 05 TOKYO 000444 
 
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 02/20/08 
 
 
INDEX: 
 
AMERICAN EMBASSY, TOKYO 
PUBLIC AFFAIRS SECTION 
OFFICE OF TRANSLATION AND MEDIA ANALYSIS 
INQUIRIES:  03-3224-5360 
INTERNET E-MAIL ADDRESS: otmatokyo@state.gov 
DAILY SUMMARY OF JAPANESE PRESS 
February 20, 2008 
 
INDEX: 
 
(1) Editorial: Defense Minister Ishiba's MOD reform plan raises 
questions (Nikkei) 
 
(2) China indicates no willingness to concede on gas field 
development despite plan for president's visit to Japan (Sankei) 
 
(3) LDP research commission approves in general outline bill 
amending AML: Administrative surcharge to target false labeling; 
Government stance of protecting consumers becomes clear (Nikkei) 
 
(4) Parliamentary league "Sentaku" to have 60 participants: Founders 
to meet today (Sankei) 
 
ARTICLES: 
 
(1) Editorial: Defense Minister Ishiba's MOD reform plan raises 
questions 
 
NIKKEI (Page 2) (Full) 
February 18, 2008 
 
Defense Minister Shigeru Ishiba explained his plan to reorganize the 
Ministry of Defense (MOD) to the ministry's blue-ribbon reform 
panel, chaired by Tokyo Electric Power Co. advisor Nobuya Minami. 
His plan raised questions and concerns. 
 
Ishiba's plan is basically designed to reorganize the ministry into 
an organization of three functions -- (1) building up defense 
capabilities, (2) employment, and (3) accountability to the Diet and 
the public -- by integrating the MOD internal bureaus (non-uniform 
group) and the four staff offices (uniformed group) in order to 
establish a system in which the two groups cooperate in assisting 
the minister. 
 
The first question concerns the plan's weak connection to measures 
to prevent a recurrence of the bribery scandal involving former 
Vice-Defense Minister Takemasa Moriya. 
 
Moriya's dictatorial power coming from his ties to lawmakers was the 
primary cause of the scandal. Mr. Ishiba, as the person who 
appointed Moriya vice minister, must know it the best. There is no 
guarantee that another Moriya will not emerge if MOD is reorganized 
based on his plan. 
 
Second, can an organization reorganized by function by integrating 
the MOD bureaucrats and the Ground, Maritime, and Air Self-Defense 
Forces in uniform actually function? Cultural differences exist not 
only between the non-uniform and uniform groups but also between the 
Ground, Maritime, and Air Self-Defense Forces. Although the Joint 
Staff was established two years ago for integrated operations of the 
 
TOKYO 00000444  002 OF 005 
 
 
three forces, it has yet to produce any visible effects. 
 
Third is the possible effect on the SDF's international cooperation 
activities. An integration of the non-uniformed group and the three 
forces would increase the influence of the Ground Self-Defense 
Force, the largest of the three forces. Precedents tell that control 
of the reorganized by the GSDF, which is the least international 
among the three forces, will result in hesitance to conduct 
international cooperation activities. 
 
Fourth, the plan runs the risk of "GSDF bureaucrats" wielding 
significant influence by taking advantage of their numerical 
strength. Internal bureau civilian officers, the MSDF, and the ASDF 
would bow to them. If they forge ties to lawmakers, like Moriya did, 
it would be difficult to restrain them. 
 
The emergence of an elite group in Tokyo putting a slight on field 
troops might result in a second coming of the Imperial Headquarters 
that does not know the front line. That is apparently why the U.S. 
Defense Department, the world's largest bureaucratic organization, 
has two separate bodies: the organ to support the defense chief and 
the Joint Chiefs of Staff. 
 
What is necessary now is not tinkering with the organization but 
bold personnel exchanges, including high-level officials of the 
internal bureaus and the four staff offices. That, too, never came 
to fruition, however. Organizational restructuring must not take 
place by capitalizing on the Moriya scandal. 
 
(2) China indicates no willingness to concede on gas field 
development despite plan for president's visit to Japan 
 
SANKEI (Page 2) (Full) 
February 16, 2008 
 
The Chinese government has indicated that it has no intention of 
making a concession on the issue of gas exploration rights in the 
East China Sea simply for the reason that President Hu Jintao is 
planning to visit Japan, an informed source revealed yesterday. A 
Chinese representative said in working-level talks held late last 
year: "We don't want to link a settlement of the issue to the 
presidential visit to Japan." The governments of Japan and China are 
engaged in final coordination in a bid to bring about a settlement 
in vice-minister-level talks to be held on Feb. 20, but it remains 
to be seen whether both sides will be able to find common ground. 
 
Observers speculate that the Chinese government might be afraid that 
if it quickly reached an agreement for the reason of the planned 
presidential visit to Japan, its people could criticize the 
administration, claiming that the government had compromised with 
Japan. 
 
Prime Minister Yasuo Fukuda and Premier Wen Jiabao agreed in their 
meeting late last year to grope for a solution at an early date over 
the gas field development row. The Japanese government has expressed 
its desire to reach a settlement by the time of the Chinese 
presidential visit to Japan in April. 
 
On the boundary line between Japan and China, Japan and China remain 
divided. Japan regards a line equidistant from the land territory of 
Japan and China as the boundary line, but China insists that the 
Okinawa Trough should be the boundary line. 
 
TOKYO 00000444  003 OF 005 
 
 
 
In the working-level talks prior the Japan-China summit late last 
year, China sounded out Japan on a plan to jointly develop gas 
fields in the waters near the Japan-claimed median line and on the 
Japanese side, showing its willingness to compromise for the first 
time. Japan, however, did not agree to this proposal, asserting that 
China should promise the development of gas fields in the oceanic 
areas on the Chinese side and near the median line. But China, which 
has deemed the Okinawa Trough as the boundary line, reportedly 
assailed that its people might lash out at even the joint 
development proposal in waters on the Japanese side, complaining 
that the government made a compromise. 
 
In the Japan-China talks, a Japanese representative proposed that 
the issue be brought into the International Court of Justice or the 
International Tribunal for the Law of the Sea, but China has refused 
this proposal. A Foreign Ministry source explained: "In recent 
precedent cases, the median line has been adopted in demarcating a 
border, so if the case is put on the trial, China's assertion might 
be denied." 
 
Foreign Ministry Vice Minister Mitoji Yabunaka is scheduled to visit 
China on Feb. 20 to discuss the issue with Chinese Foreign Ministry 
Vice Minister Wang Yi. But a final decision is now likely to be made 
in the planned between Prime Minister Fukuda and President Hu. 
 
(3) LDP research commission approves in general outline bill 
amending AML: Administrative surcharge to target false labeling; 
Government stance of protecting consumers becomes clear 
 
NIKKEI (Page 1) (Excerpts) 
February 15, 2008 
 
A bill amending the Antimonopoly Law, which the government will 
present to the regular Diet session, has been confirmed in general 
outline. The Fair Trade Commission (FTC) on Feb. 14 submitted it to 
the Research Commission on Antimonopoly Laws of the Liberal 
Democratic Party (LDP) and obtained its approval. As a feature, the 
bill is aimed at strengthening measures against an increase in 
bid-rigging activities in construction works. Administrative 
surcharges will be imposed on false labeling with the aim of 
thoroughly protecting consumers and small and medium-size 
businesses. Some in business circles are alarmed about the move. The 
challenge to the FTC will be how to secure transparency in imposing 
administrative surcharges and improve the system of filing a 
complaint against a ruling. 
 
According to the amendment bill, the amount of administrative 
surcharge imposed on companies that played a leading role in 
bid-rigging activities and cartels will be raised 50 PERCENT , 
compared with the present level. The FTC intends to curb the number 
of violations of the AML, by imposing heavy punishments on companies 
that play a leading role in unfair trade practices. One executive of 
a leading general construction contractor said, "An increase in 
antimonopoly surcharge rates would be unavoidable. However, a 
question remains on how to distinguish offending companies that 
played a leading role in unfair trade practices remains." 
 
In the meantime, the FTC also plans to improve a system of reducing 
administrative surcharges imposed on companies that voluntarily 
admit to unfair trade practices. The FTC hopes to toughen watchful 
eyes by increasing companies subject to the surcharge system so that 
 
TOKYO 00000444  004 OF 005 
 
 
it can secure more information on unfair trade practices. 
 
Unfair trade practices subject to surcharges are currently limited 
to bid-rigging activities and cartels. The coverage of the amendment 
bill, which attaches importance to the protection of consumers, will 
be expanded to include false labeling intended to deceive consumers 
with incorrect information. The rate of the surcharge will be 3 
PERCENT  of sales of the goods subject to the punishment. 
 
The abuse of preferred position, in which major companies force 
unfavorable trading on their subcontractors, will become subject to 
surcharges. The auto industry, where there are many sub-contractors, 
consists of primary parts manufacturers that directly trade with 
finished car-manufacturers, second-tier and third-tier parts 
manufactures. The auto industry's stance is that it would be 
necessary for group companies as a whole to tackle preventing unfair 
trade practices. 
 
Concerning unfair trade practices that will become subject to 
administrative surcharges in the revised law, Attorney Ishida, who 
is versed in the AML, expressed concern, "Unlike bid-rigging 
activities or cartels, the scope of unfair trade practices is 
unclear." 
 
Chances are that if administrative surcharges as well as orders to 
end unfair trade practices are imposed on offending companies, more 
complaints would be filed against FTC rulings. At present, the FTC 
is responsible for determining whether protests are justifiable or 
not. Industrial circles are unhappy with the situation with one 
source saying, "The present judge system, in which the FTC serves 
both as a public prosecutor and a judge should be done away with." 
Since a plan to reform the judge system cannot be prepared in time 
for inclusion in the amendment bill, the bill will be attached with 
an additional clause stipulating that the system is to be fully 
reviewed. The system will be reviewed within fiscal 2008. 
 
Many DPJ members are calling for the total abolition of the judge 
system. The dominant view in the LDP is to change the system into 
one under which complaints regarding unfair trade practices, such as 
bid-rigging activities, cartels and dumping, can be filed with a law 
court. Ishida said, "If the possibility of legal disputes increases, 
the FTC would be urged to be careful in determining facts. Should 
that occur, the overall number of investigations might decrease." 
 
(4) Parliamentary league "Sentaku" to have 60 participants: Founders 
to meet today 
 
SANKEI (Page 5) (Full) 
February 20, 2008 
 
Founders of a non-partisan parliamentarian league to support 
"Sentaku" (double meaning of "choice" and "cleaning up"), which is 
short for the "National Congress for Cleaning up (and making choices 
for) Japan from the Local Community and Working People's View 
(established by former Mie Prefectural Governor Masayasu Kitagawa 
and Miyazaki Prefectural Governor Hideo Higashikokubaru) will meet 
today at a hotel in Uchisaiwai-cho, Tokyo. The league is expected to 
be launched formally on March 2. The founders want to gather around 
60 members from both the ruling and opposition camps.  They are 
aiming at such efforts as completing a manifesto in cooperation with 
Sentaku.  However, the prevalent view in political circles is that 
the move is connected with political reorganization. 
 
TOKYO 00000444  005 OF 005 
 
 
 
The founders include eight Liberal Democratic Party (LDP) members, 
such as former Minister of Education, Culture, Sports, Science and 
Technology Takeo Kawamura, Deputy Policy Research Council Chairman 
Hiroyuki Sonoda and Vice Election Committee Chairman Yoshihide Suga, 
eight Democratic Party of Japan (DPJ or Minshuto) members, such as 
former Diet Affairs Committee Chairman Yoshihiko Noda and former 
Secretary General Yukio Edano, and two lawmakers from the New 
 
SIPDIS 
Komeito. Kawamura and Noda will likely be appointed joint 
representatives when the group is launched formally. 
 
One of the founders said, "It is a policy-oriented parliamentary 
league to reflect the views of local areas in the manifesto." 
However, many participants from the DPJ are lawmakers who have 
distanced themselves from President Ozawa. 
 
Sentaku is a private policy group launched on Jan. 20 by Kitagawa. 
Its aim is to bring about regional decentralization and policies 
that reflect the views of average citizens. 
 
SCHIEFFER