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UNCLAS SECTION 01 OF 13 TOKYO 000483 
 
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 02/25/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's weekend schedule (Nikkei) 
 
Aegis collision: 
4) Prime Minister Fukuda sees no need for Defense Minister Ishiba to 
resign to take responsibility for the collision of an Aegis ship 
with a fishing boat  (Asahi) 
5) Fukuda orders Defense Ministry reforms  (Mainichi) 
6) Ishiba on TV states that he will order ship's rules revised for 
navigating in heavily traffic waters, as when the fishing boat was 
struck by an Aegis  (Tokyo Shimbun) 
 
Okinawa incidents: 
7) Effects of strict USFJ rules on off-base personnel unclear; 
Restrictions could turn out to be a double-edged sword  (Mainichi) 
8) Okinawa Prefecture coming up with own set of ruled to counter 
incidents by U.S. military personnel  (Mainichi) 
9) Central government, Okinawa have differences over how best to 
stop recurrences of incidents by U.S. soldiers  (Yomiuri) 
 
10) LDP to sponsor legislation to ban possession of child 
pornography and stiffen penalties in existing child-porn law 
(Mainichi) 
 
Korean affairs: 
11) Newly inaugurated ROK President Lee to visit Japan April 21 
(Sankei) 
12) Democratic Party of Japan forming new parliamentarian league for 
"conciliation" with North Korea, will invite LDP lawmakers to join, 
too  (Sankei) 
 
13) China proposes trilateral dialogue among China, U.S. and Japan, 
possibly at the summit level  (Nikkei) 
 
Political affairs: 
14) Yomiuri poll finds 68 PERCENT  of the public have no trust in 
politics, 60 PERCENT  want two party system with each party 
regularly take a turn at running the government  (Yomiuri) 
15) Diet hit by three sets of tough issues to tackle in weeks ahead: 
appointing Bank of Japan governor; Aegis collision fallout; and 
passing tax-related bills  (Nikkei) 
16) Fukuda ready to compromise and revise tax-related bills  (Asahi) 
 
17) LDP membership drops 7.5 PERCENT   (Mainichi) 
18) Former Prime Minister Koizumi is on the political move again 
(Mainichi) 
 
19) Government ready to use H2 rocket to launch commercial 
satellites, including for U.S. and ROK  (Nikkei)    13 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Aegis duty crew spotted fishing boats but did not give instructions 
to avoid them 
 
Mainichi, Yomiurim, Sankei & Tokyo Shimbun: 
 
TOKYO 00000483  002 OF 013 
 
 
Miura arrested for 1981 shooting with FBI's discovery of new 
evidence 
 
Nikkei: 
China's export value expanded five-fold in six years after joining 
WTO, outstripping U.S. to take second place 
 
Akahata: 
JCP Chairman Shii addresses an audience of 1,150, largest-ever, in 
Kumamoto Prefecture's Hitoyoshi City; Participants include head of 
the local medical association, conservative assembly members 
 
2) EDITORIALS 
 
Asahi: 
(1) Proposals for building a society filled with hopes: How to help 
"the working poor" to become economically independent 
 
Mainichi: 
(1) 1981 shooting case in Los Angeles: Japan, U.S. need to make 
clear their respective investigation rules 
(2) Former ROK President Roh overly stuck to ideas and failed to 
recognize realities: 
 
Yomiuri: 
(1) "Kizuna" satellite launched, but what are necessary now for 
space development are select projects and focus efforts on selected 
ones 
(2) 1981 shooting case in Los Angeles: U.S. FBI made a fresh move to 
deal with the 27-year-old murder case 
 
Nikkei: 
(1) Way to a low-carbon society: Japan needs to come up with own 
ideas and policies ahead of G-8 Toyako Summit 
 
 
Sankei: 
(1) Government should consider early use of prepandemic vaccination 
(2) Time to assess ShinGinko Tokyo's raison d'etre 
 
Tokyo Shimbun: 
(1) Arrest of Miura: We watch developments without any prejudice 
(2) Government needs to work out basic policy on anti-quake 
resistance of cultural assets 
 
Akahata: 
(1) Dangerous if government uses nuclear power generation as a trump 
card to deal with climate change 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 23 
 
NIKKEI (Page 2) (Full) 
February 24, 2008 
 
10:00 
Met advisor Ito at his official residence. 
Afternoon Spend time at his official residence. 
 
Prime Minister's schedule, February 24 
 
 
TOKYO 00000483  003 OF 013 
 
 
NIKKEI (Page 2) (Full) 
February 25, 2008 
 
Morning 
Spent time at his official residence. 
 
12:20 
Attended the wedding reception of Foreign Minister Koumura's eldest 
son held at the Conrad Tokyo. 
 
13:44 
Returned to this official residence. 
 
14:30 
Went to the Kantei. 
 
15:19 
Departed from Haneda Airport for South Korea to attend presidential 
inauguration of Lee Myung Bak. 
(Local time) 
 
Evening A 
rrived in Seoul Air Base. Toured the Chong Gye River project in 
Seoul. 
 
Night 
Had an informal discussion with the accompanying press corps at the 
Lotte Hotel in Seoul. Dined with South Korean political and business 
leaders. Stayed overnight at the hotel. 
 
4) Prime Minister Fukuda: No reason for Defense Minister to resign 
 
ASAHI (Page 2) (Excerpts) 
February 25, 2008 
 
Seoul, Nenya Etori 
 
Asked by reporters accompanying him to Seoul about his view of the 
opposition's call for the resignation of Defense Minister Shigeru 
Ishiba to take responsibility for the collision between a Maritime 
Self-Defense Force Aegis destroyer and small fishing boat, Prime 
Minister responded yesterday with a clear statement: "It is 
necessary for the person who knows well the Defense Ministry's 
issues to take the lead in reforming the ministry and thus bearing 
full responsibility." In view of the importance of stability of 
internal politics also for foreign policy, Fukuda said he was still 
enthusiastic about the notion of forming a grand alliance between 
his Liberal Democratic Party (LDP) and the largest opposition 
Democratic Party of Japan (DPJ or Minshuto). He said: "It depends on 
the other party." 
 
Regarding the collision between the MSDF Aegis destroyer and fishing 
boat, Fukuda pointed out: 
 
"If the collision was caused due to the nature of the Defense 
Ministry, the ministry should be drastically reformed. If (Ishiba) 
is replaced without thinking, (reform) will not be carried out. A 
new minister would have to study the issues from scratch. I do not 
think we should take such meaningless action." 
 
Fukuda underscored the meaning of a grand alliance, saying: "I 
wonder whether foreign countries will trust Japan if our country 
 
TOKYO 00000483  004 OF 013 
 
 
cannot decide anything with them due the politically divided Diet. 
This issue affects our national interests." 
 
5) Reform team launched at order of prime minister: Aim is to 
encourage Ishiba, by countering calls for his resignation 
 
MAINICHI (Page 2) (Excerpts) 
February 23, 2008 
 
Following a flurry of scandals involving the Defense Ministry, a 
Defense Ministry Reform Promotion Team was launched on Feb. 23, 
based on Defense Minister Shigeru's cherished desire for a major 
reorganization of his ministry. It was Prime Minister Yasuo Fukuda 
himself who ordered Ishiba to put his initiative into practice, 
apparently motivated by the desire to check the opposition bloc's 
calls for Ishiba's resignation. 
 
The team was originally scheduled to be launched on Feb. 19. 
However, the plan has been put off due to the Maritime Self-Defense 
Force's Aegis-equipped destroyer Atago's collision with the Seitoku 
Maru, which took place the same day. The prime minister ordered the 
launch of the team three days after the accident, apparently with 
the aim of encouraging Ishiba. The Defense Ministry also gave 
consideration to the administration, with one senior official 
noting, "We did not want to have a fatal impact on the 
administration." 
 
Core members of the reform team are staff members under Ishiba's 
direct jurisdiction. Fifteen mid-level officials, such as deputy 
bureau directors general and division directors (six from internal 
bureaus and nine SDF personnel), have been transferred to the 
Minister's Secretariat. Compared with the existing study teams 
responsible for such areas as civilian control, equipment 
procurement, and intelligence and security, the newly established 
team has Ishiba's strong imprint as the leader. 
 
6) Ishiba reveals plan to require manual operation in waters with 
heavy traffic 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 25, 2008 
 
Appearing on a Fuji-TV program yesterday, in the wake of the 
collision between the Maritime Self-Defense Force Aegis-equipped 
destroyer Atago and a fishing boat, Defense Minister Shigeru Ishiba 
said: "We will enforce a rule at once that (autopilot) must be 
switched to manual operation once a vessel enters such waters." 
Ishiba thus announced a plan to review the way SDF vessels cruise in 
waters with heavy traffic. 
 
The cause of the collision seems to be ascribable to the fact that 
the Atago did not switch from autopilot to manual operation until 
one minute before the collision, causing it to delay in taking 
action to avoid the fishing boat. 
 
Appearing on an NHK program, Ishiba also indicated that the ministry 
will revise within this week an outline of the vice-administrative 
minister notification system specifying the post-accident 
communication setup and implement the revised system immediately. 
 
7) U.S. military still not expected to tighten standards for living 
off-base 
 
TOKYO 00000483  005 OF 013 
 
 
 
MAINICHI (Page 2) (Full) 
February 23, 2008 
 
In the wake of an Okinawa-based U.S. serviceman's alleged rape of a 
junior high school girl, the government has worked out a plan to 
prevent similar incidents. The plan includes submitting an annual 
report to base-hosting municipalities on the number of U.S. military 
personnel and others living outside their bases. In Okinawa, 
however, base neighbors are feeling uneasy about U.S. servicemen 
living off base. Although Okinawa's base-hosting local communities 
want the Japanese and U.S. governments to take effective steps, the 
U.S. military is still not expected to tighten its off-base living 
standards. 
 
Currently, U.S. military personnel in Japan, civilian employees 
working at U.S. military bases in Japan, and their dependents are 
exempted from foreign registration under the Japan-U.S. Status of 
Forces Agreement (SOFA). Instead, U.S. Forces Japan reports the 
number of SOFA personnel entries into and departures from Japan once 
every three months. Based on a bilateral agreement reached this 
time, USFJ will reveal the number of U.S. military servicemen and 
other off-base SOFA personnel in 129 municipalities across the 
nation, including 22 in Okinawa Prefecture. However, the Japanese 
government and USFJ have only agreed to "discuss" the standards for 
living off-base. The Foreign Ministry explains that the Japanese and 
U.S. governments have not yet agreed to tighten the standards. The 
issue will be left to bilateral joint committee consultations. 
 
Okinawa Gov. Hirokazu Nakaima appreciated the Japanese government 
for its plan to take preventive steps. "The government took quick 
action," he said yesterday. He also said, "There is no choice but to 
tighten the off-base living standards." The incident this time took 
place in the town of Chatan, which is an electoral district for 
Kantoku Teruya, a member of the House of Representatives. Teruya 
suggests the need to bar off-base living in principle. 
 
In Okinawa, however, there are also industries that depend on bases. 
Local realty businesses dealing in rental housing for U.S. military 
personnel are expected to oppose the idea of tightening standards 
for living off-base. "After the start of the Iraq war," one 
Chatan-based real estate broker noted, "there are now fewer U.S. 
servicemen living outside their bases." This broker added, "If the 
standards are tightened, all of us will be affected." 
 
8) Okinawa also works out 20-point plan 
 
MAINICHI (Page 2) (Full) 
February 23, 2008 
 
In the wake of an Okinawa-based U.S. serviceman's alleged rape of a 
local junior high school girl, a panel of the Okinawa prefectural 
government yesterday worked out a 20-point plan to prevent similar 
incidents. 
 
The plan includes requesting the U.S. military to restrict its 
off-base hours for more of its personnel, step up responsibilities 
and penalties for the supervisors of discipline violators, and 
tighten discipline for those living off base. In addition, the plan 
proposes setting up automobile license plate number readers near 
U.S. military bases. It also suggests the need for the Japanese and 
U.S. governments to compensate victims on their respective 
 
TOKYO 00000483  006 OF 013 
 
 
responsibilities. 
 
9) Difference in degree apparent between government, Okinawa toward 
preventive measures following rape incident 
 
YOMIURI (Page 2) (Full) 
February 23, 2008 
 
Following the recent case of a Marine having raped a junior-high 
school girl in Okinawa and other crimes by Marines, the government 
yesterday announced a package of its measures to prevent similar 
incidents. The package indicates a willingness to strengthen 
restrictions regarding U.S. military personnel's off-base residences 
and moves, but it ended up just listing subjects for future 
consideration. There is still a gap between the government's 
measures and the requests being made by Okinawa. The government 
plans to continuously work out specific preventive measures in 
meetings of the Japan-U.S. Joint Committee and on other occasions. 
 
Speaking before reporters yesterday, Prime Minister Fukuda expressed 
his determination to do his best to obtain understanding from 
Okinawa. Fukuda said: "It will be difficult to prevent (incidents by 
Marines) without local communities' cooperation. It is imperative 
for the three parties concerned (the governments of Japan and the 
U.S., as well as the Okinawa government) to jointly make efforts to 
prevent incidents." The government's package notes: "The U.S. side 
should reconsider its various preventive measures," and indicates 
that outgoing restrictions should be tightened.  The package also 
includes a plan under which the Japanese and U.S. governments will 
study a review of the current standards for U.S. soldiers and their 
families to live outside bases. 
 
But the set of preventive measures mapped out and released by 
Okinawa prefecture the same day calls for such specific measures as 
expansion of curfew hours and of those areas subject to 
restrictions, and publication of clear standards for off-base 
residence. 
 
10) LDP mulling amending law to ban possession of child pornography 
 
MAINICHI (Page 1) (Full) 
February 24, 2008 
 
Eriko Horii 
 
In an effort to prevent the proliferation of child pornographic 
images via the Internet, the ruling Liberal Democratic Party (LDP) 
on Feb. 23 decided to amend the Law for Punishing Acts Related to 
Child Prostitution and Child Pornography. The LDP intends to add to 
the law a new provision prohibiting "simple possession," a term that 
is defined as individuals collecting pornographic images and 
pictures not for sale but for their own use. The LDP also plans to 
discuss punishment provisions. The LDP intends to submit an 
amendment to the law, which will be drafted by a suprapartisan group 
Diet members, to the current session of the Diet, but some in the 
ruling and opposition parties are cautious about establishing 
punishment provisions, with one member arguing, "Ambiguity still 
remains about the definition of immorality or obscenity. (Such 
punishment provisions) could lead to expanding the right to 
investigate." 
 
The LDP will set up by the end of the month a subcommittee to be 
 
TOKYO 00000483  007 OF 013 
 
 
headed by former Justice Minister Mayumi Moriyama. An idea being 
floated in the LDP to deal with simple possession without any 
intention of selling or providing child pornography is to establish 
a provision banning "possession of electronic records." Discussion 
on punishment provisions at the subcommittee will focus on how to 
levy fines. Given cases where images are sent unsolicited as seen in 
spam emails, punishments will be limited to cases where individuals' 
intention of collecting (child pornography) is clear. Whether to 
regulate child pornography in animation and manga is expected to be 
put on hold because of strong opposition that regulating it would 
violate the freedom of expression. 
 
Last year, the United States government called for a ban on simple 
possession of child pornography on the ground that the international 
community needs to join hands to deal with this matter. Justice 
Minister Kunio Hatoyama stated at a session on Feb. 4 of the Upper 
House Budget Committee that there is need to establish a punishment 
provision on simple possession. 
 
The current law took effect in 1999. Regarding pictures, images, and 
videos of pornography involving children (below 18), acts subject to 
punishments include production and sale, possession for the purpose 
of sale or offer, and disclosure on websites. If individuals possess 
them without any intention of selling or providing them to someone, 
such possession is not subject to punishment. 
 
When the law was amended in 2004, the ruling parties drafted a 
revision bill that included a provision prohibiting simple 
possession, but heeding cautious views voiced in the opposition bloc 
against the provision, the ruling bloc dropped it and got the 
revision bill approved. 
 
The LDP aims to submit to the current Diet session a revision bill 
that will be drafted by Diet members from both ruling and opposition 
parties. But there seem to be cases where individuals are not aware 
of the fact that images were sent unsolicited. Assuming such cases, 
a senior member of the major opposition Democratic Party of Japan 
argued: "There is the possibility that the right to investigate will 
be broadened unnecessarily." 
 
11) South Korean President Lee to visit Japan on April 21 
 
SANKEI (Page 2) (Full) 
February 25, 2008 
 
Katsuhiro Kuroda, Seoul 
 
An inauguration will be held for new South Korean President Lee 
Myung Bak on Feb. 25. Joining as guests will be Japanese Prime 
Minister Yasuo Fukuda, U.S. Secretary of State Condoleezza Rice, and 
dignitaries from many other countries. According to an informed 
South Korean source, Japan and South Korea have agreed that 
President Lee will visit to Japan on April 21-22. He will stop over 
in Japan on his way back from the U.S. (April 14-20). He will visit 
Japan as a state guest on another occasion. 
 
The inauguration will be held on the morning of Feb. 25 in front of 
the Diet Building in Seoul, with 45,000 prominent figures from 
various circles and general public in attendance. From abroad, about 
200 representatives will attend, including Chinese State Councilor 
Tang Jiaxuan and Russian Prime Minister Viktor Zubkov, besides 
representatives from Japan and the U.S. President Lee will hold 
 
TOKYO 00000483  008 OF 013 
 
 
meetings with Fukuda, Rice and other participants from abroad on the 
first day of his assumption of office. 
 
Japan will send more than 100 dignitaries to attend the ceremony, 
indicating Japan's expectations on the Lee administration for 
improvement in bilateral ties. Included among Japanese government 
envoys will be former Prime Minister Yasuhiro Nakasone, former Prime 
Minister Yoshiro Mori (chairman of the Japan-Korea Parliamentarians' 
Union), former Liberal Democratic Party Secretary General Taro Aso, 
and Democratic Party of Japan Deputy President Naoto Kan. DPJ 
President Ichiro Ozawa already met Lee on Feb. 21. 
 
Japan and South Korea have agreed on the need to revive the 
suspended reciprocal visits between both sides' leaders. After Lee 
visits Japan in April, the Japanese government plans to invite the 
president to the Lake Toya Summit to be held in Japan in July. 
 
President Lee has expressed his desire to establish a mature 
relationship with Japan without calling for Japan's apologies or 
self-reflection and without being bounded by any formalities. As a 
president who places emphasis on economics, the new president has 
emphasized a practical diplomacy focusing on actual benefits to the 
country. Lee is expected to take such a stance in his meeting with 
Fukuda. 
 
12) DPJ launches study group conciliatory to North Korea, also eying 
cooperation with LDP 
 
SANKEI (Page 5) (Excerpts) 
February 23, 2008 
 
Interested lawmakers from the Democratic Party of Japan (DPJ) and 
the People's New Party (PNP) yesterday launched a study group to 
address issues related to the Korean Peninsula. The group aims at 
normalizing diplomatic relations with North Korea, as well as 
resolving the issues of the North's past abductions of Japanese 
nationals and ongoing nuclear and missile development programs by 
promoting mutual exchanges with North Korea. The group plans to look 
into visiting Pyongyang. It also intends to join hands with Liberal 
Democratic Party (LDP) member Taku Yamasaki, supreme advisor to the 
party's subcommittee on Korean Peninsula issues, which is seeking a 
North Korea visit, and other members. Members of a suprapartisan 
group of Diet members dealing with the abduction issue have been 
alert at the moves by LDP and DPJ members calling for conciliation 
with North Korea. Participating in its kick-off meeting were 15 DPJ 
members and one PNP member. The study group appointed DPJ 
International Bureau chief Tetsundo Iwakuni as chairman, DPJ House 
of Councillors member Yoshihiro Kawakami as chief of the 
secretariat, DPJ Vice President Hajime Ishii and Yoshio Hachiro, 
 
SIPDIS 
foreign minister in the shadow cabinet, as advisors, and PNP Vice 
President Shozaburo Jimi as vice president. 
 
Iwakuni emphasized in the meeting the importance of dialogue with 
the North in order to resolve the abduction and nuclear issues. He 
then implied he had in mind a plan to form a suprapartisan 
parliamentary group, like the dormant Japan-North Korea Friendship 
Promotion League. 
 
Iwakuni also expressed his hopes for realizing a visit by a 
delegation led by DPJ President Ichiro Ozawa to North Korea in the 
future. Kawakami reported that he met with Yamasaki to discuss the 
possibility of cooperation on Feb. 21. He then told reporters: "I do 
 
TOKYO 00000483  009 OF 013 
 
 
not deny the need for pressure, but we would like to effectively 
resolve the abduction issue in another way." Iwakuni plans to meet 
Yamasaki next week to discuss a coalition, including a visit to 
North Korea by a suprapartisan delegation with the LDP. 
 
13) China sounds out Japan, U.S. on possibility of regular 
trilateral dialogue, positing such being at the summit level 
 
NIKKEI (Page 2) (Excerpts) 
February 23, 2008 
 
Ken Sato in Beijing 
 
It was learned yesterday that the Chinese government has sounded out 
the Japanese and U.S. governments about establishing a regular 
dialogue of the three countries, including the United States. The 
dialogue would be a venue for discussion of such topics as 
environmental issues, energy policies, and policy toward North 
Korea. In addition to participants at the vice foreign minister and 
bureau director-general levels, top leaders and foreign ministers 
would conceivably join, too. The aim is to build momentum for policy 
coordination among the three countries, and apparently, there is 
motivation by China to drive a wedge into the now strong Japan-U.S. 
alliance. 
 
At present, there are various bilateral arrangements for dialogues 
at the vice-ministerial level between Japan and the U.S., Japan and 
China, and the U.S. and China. If such are widened to become 
trilateral dialogues, it could lead to strengthening cooperation 
centered on the three countries on the diplomatic stage. The 
combined GDP of the three countries as of 2006 made up approximately 
40 PERCENT  of world GDP, so the policy cooperation also could be 
seen as stabilizing the global economy, as well. 
 
14) Poll: 68 PERCENT  don't trust politics 
 
YOMIURI (Page 1) (Abridged) 
February 24, 2008 
 
Two out of every three persons are distrustful of present-day 
political parties or politicians and dissatisfied with politics that 
does not reflect their votes cast in elections, the Yomiuri Shimbun 
found from its annual public opinion survey of the nation's voting 
population on their political mindsets. In the survey, the 
proportion of those who want the ruling and opposition parties to 
change places at times was a little over 60 PERCENT  among all 
respondents and reached 40 PERCENT  even among those who support the 
ruling coalition of the Liberal Democratic Party and New Komeito. 
The survey shows that an increasing number of people would like to 
see a big change in politics. 
 
The survey was conducted Feb. 16-17 on a face-to-face basis. 
 
In the survey, respondents were asked if they trusted present-day 
political parties or politicians in Japan. In response, "very much" 
and "somewhat" totaled no more than 30 PERCENT , with "not very 
much" and "not at all" totaling 68 PERCENT . Respondents were also 
asked if they thought their votes cast in elections are actually 
reflected in politics. To this question, "yes" accounted for 29 
PERCENT , with "no" at 67 PERCENT . 
 
Respondents were further asked if they thought it would be better to 
 
TOKYO 00000483  010 OF 013 
 
 
see the ruling and opposition parties change places at times. In 
response to this question, 63 PERCENT  answered "yes," with 27 
PERCENT  saying "no." Among LDP supporters, "no" accounted for 53 
PERCENT , but "yes" accounted for 40 PERCENT . Among those who 
support the leading opposition Democratic Party of Japan (Minshuto), 
91 PERCENT  answered "yes." 
 
15) Stormy developments expected in Diet over budget bill, Aegis 
accident, and appointment of new BOJ governor 
 
NIKKEI (Page 2) (Abridged slightly) 
February 25, 2008 
 
Starting today, Diet debates will head toward a climax with the 
House of Representatives soon approving the fiscal 2008 budget bill 
and a bill amending the Special Taxation Measures Law, including the 
maintenance of the provisional road-related tax rates. Although the 
ruling bloc is aiming to obtain Lower House approval this month, the 
stormy developments have hit the Diet owing to such factors as an 
MSDF Aegis destroyer's collision with a fishing boat and the ongoing 
row with the opposition camp over the appointment of a new Bank of 
Japan governor, which requires Diet approval. 
 
Liberal Democratic Party Diet Affairs Committee Chairman Tadamori 
Oshima yesterday gave a speech in the city of Hachinohe in Aomori 
Prefecture in which he highlighted the need to get the budget bill 
and the bill amending the Special Taxation Measures Law approved by 
the Lower House before the end of February. He said: "We will make 
utmost efforts, aiming at Feb. 28. We will also have to send the tax 
bill to the House of Councillors at the same time." 
 
The ruling camp is planning to hold a subcommittee meeting on Feb. 
27-28 ahead of taking a vote on the budget bill with the aim of 
obtaining Lower House approval along with the tax bill on Feb. 29 at 
the same time. After being sent to the Upper House, a budget bill 
will be automatically enacted in 30 days. Given the situation, in 
order for the fiscal 2008 budget to clear the Diet within the 
current fiscal year, it will have to obtain Lower House approval by 
March 2. But because March 1 and 2 fall on a Saturday and Sunday, 
respectively, the ruling camp desperately wants to get the bill 
passed by the Lower House before the end of February. 
 
Meanwhile, the largest opposition Democratic Party of Japan (DPJ) 
plans to put up do-or-die resistance, arguing that it is premature 
to bring the bill to a vote. In the event, the ruling bloc railroads 
the budget bill through the Lower House this month, the opposition 
camp may consider reneging on the mediation agreement worked out by 
the heads of the two Diet chambers specifying "to reach a certain 
conclusion within the current fiscal year" regarding the budget and 
budget-related bills. Upper House deliberations are expected to face 
rough going. 
 
With the Aegis destroyer collision accident, opposition parties are 
set to press the ruling camp to reveal all details, and they plan to 
pursue Defense Minister Shigeru Ishiba's responsibility during 
intensive Lower House Security Committee deliberations on Feb. 26. 
The Diet affairs chiefs of the opposition parties are scheduled to 
meet this evening to confirm a policy course of seeking intensive 
deliberations in the Lower House Budget Committee. 
 
Although the ruling camp plans to reject the opposition bloc's call 
for Lower House Budget Committee intensive deliberations, some are 
 
TOKYO 00000483  011 OF 013 
 
 
concerned about a possible public backlash. The ruling bloc is 
nervous because any misstep could throw the Fukuda administration 
into a tighter spot. 
 
Lower House Rules and Administration Committee Chairman Takashi 
Sasagawa and his Upper House counterpart Takeo Nishikawa are 
expected to formally agree today on procedures for hearing views of 
candidates replacing the BOJ governor and deputy governor, whose 
terms are set to expire on March 19. As such, the government plans 
to present a personnel action plan to the opposition bloc on Feb. 26 
or later. 
 
Although the ruling camp has sounded out the DPJ on promoting Deputy 
Governor Toshiro Muto to the governor's post, there are some 
objections in the DPJ. Some fear that if a BOJ appointment plan is 
presented toward the end of the month when the battle between the 
ruling and opposition camps on the budget bill intensifies, the two 
sides will not be able to discuss matters calmly. At the same time, 
an LDP Diet Affairs Committee member said: "If a personnel plan is 
presented in early March, the post of BOJ governor might remain 
unfilled temporarily." The government and ruling bloc will likely 
find it difficult to handle the matter. 
 
16) Prime minister positive toward revising provisional gas tax rate 
bill 
 
ASAHI (Page 1) (Almost full) 
February 25, 2008 
 
Regarding a bill amending the Special Tax Measures Law, including an 
extension of the provisional rate on the gas tax for special-purpose 
road construction revenues, Prime Minister Fukuda, now visiting 
South Korea to attend incoming President Lee Myung Bak's 
inauguration, yesterday evening told reporters traveling with him: 
"There may be a ruling by the Speaker. Revisions will be made, and 
the budget and related bills will be passed by the end of the fiscal 
year. I would deliberate on the bill while keeping all this in 
mind." He thus indicated a stance of responding to a call for a 
revision to the amendment bill in a flexible manner. 
 
The prime minister said, "I would most appreciate if the bill is 
passed into law without any revisions. However, given the 
deliberations in the Diet, there are various views on the issue. It 
is inconceivable that there will be no proposals." 
 
Former Prime Minister Koizumi in a speech given on Feb. 22 noted, 
"If the prime minister says that the ruling parties should listen to 
the views of opposition parties and ready a good bill, by giving in 
where necessary, a proposal for a revision will be made by members 
of the Liberal Democratic Party (LDP)." 
 
Regarding Koizumi's statement, the prime minister said, "I will take 
it seriously." He also said to the Democratic Party of Japan (DPJ or 
Minshuto), "I want them to finalize their views. Otherwise, I do not 
know what revisions can be made to the bill. It would be troublesome 
if the opposition parties cannot finalize their proposals, while the 
ruling parties readied a bill." He thus urged the DPJ to come up 
with a counterproposal. 
 
17) LDP members decrease by 7.5 PERCENT , down for tenth consecutive 
year 
 
 
TOKYO 00000483  012 OF 013 
 
 
MAINICHI (Page 5) (Full) 
February 23, 2008 
 
The ruling Liberal Democratic Party (LDP) revealed on Feb. 22 that 
its membership decreased by 7.5 PERCENT , or to 1,102,460, from the 
number the party had in 2007. The number of party members has 
dropped for ten years in a row. The main reason for the drop is a 
decrease in the occupational chapters. A senior LDP member said 
resignedly: 
 
"It can't be helped, because the trend started when recruiting party 
members ceased to affect one's placement on the party's slate of 
candidates for the Upper House proportional representation 
segment." 
 
Of the top five Diet members who recruited a large number of new 
party members, four were "assassins" who secured their seats in the 
2005 House of Representatives election, and former postal rebels, 
who were reinstated in the LDP. The four apparently recruited a 
large number of new members with the next Lower House election in 
mind. 
 
The five were Lower House members Kotaro Nagasaki, Seiko Noda, 
Mitsuo Horiuchi, Hiroshi Moriyama, and Yasuhiro Ozato. Nagasaki was 
an assassin. Noda, Horiuchi, and Moriyama were former postal rebels 
who rejoined the party. Nagasaki and Horiuchi are rivals in the 
Yamanashi No. 2 constituency. 
 
The LDP had 5.46 million members at its peak in 1991. 
 
18) Former Prime Minister Koizumi in meeting denies early Lower 
House dissolution 
 
MAINICHI (Page 5) (Full) 
February 23, 2008 
 
Former Prime Minister Junichiro Koizumi of the ruling Liberal 
Democratic Party (LDP) gave a speech in a seminar held last night in 
Hachioji, Tokyo, by the LDP's House of Representatives member Koichi 
Hagiuda. In it, Koizumi indicated his negative view about an early 
dissolution of the Lower House. He said: 
 
"The dominant view is that the Lower House will not be dissolved 
until the end of the July Group of Eight (G8) summit at Lake Toya in 
Hokkaido. Recently, however, the mood is that it is not too late to 
dissolve the Lower House even after (Fukuda) takes part in next 
year's G8." 
 
Referring to deliberations on revising the government's bill to 
retain the current provisional road-related provisional taxes, 
Koizumi pointed out: 
 
"The opposition camp should present counterproposals and reach a 
conclusion through discussion. If Prime Minister Yasuo Fukuda asks 
the LDP to compile a good idea with a view to integrating the 
special account for road-related taxes into the general account, the 
LDP will follow the prime minister and compromise." 
 
According to Koizumi's office, it was the first time for him to 
deliver a speech in a meeting held by a Diet member after he left 
the prime minister's post. He plans to give a speech in a meeting 
next month of other Lower House member. There is speculation in 
 
TOKYO 00000483  013 OF 013 
 
 
political circles that Koizumi has restarted his political 
activities. 
 
19) H-2A rocket: Mitsubishi Heavy Industries in negotiations with 
U.S., South Korean companies for first order for commercial 
satellite 
 
NIKKEI (Page 1) (Excerpts) 
February 25, 2008 
 
Mitsubishi Heavy Industries has released a plan to start the launch 
of a domestically built H-2A rocket that can carry a commercial 
satellite in fiscal 2008. The company has already entered final 
talks with communications companies of the U.S. and South Korea. It 
will likely receive an order for a rocket-launching project as early 
as March. The National Space Agency succeeded in launching the No. 
14 H-2A rocket on Feb. 23. The satellites that were launched in the 
past were all for use by the government, such as observation 
satellites. Mitsubishi, which took over the project in the spring 
last year, will enter the private-use satellite market, an area that 
has been monopolized by foreign rocket manufacturers, on the 
strength of reduced costs. 
 
Mitsubishi Heavy Industries President Kazuo Tsukuda told a Nikkei 
reporter that the success of the launch of the No. 14 H-2A rocket 
has boosted the competitiveness of the rocket on the global market 
with strengthened technical reliability. He also revealed that the 
company is expected to receive an order to launch a commercial 
satellite by Feb. 2009. Though he steered clear of revealing the 
name of the negotiating partner, the plan appears to be launching a 
communications satellite using the H-2A rocket for various data 
communications. 
 
SCHIEFFER