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UNCLAS SECTION 01 OF 12 TOKYO 000508 
 
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 02/27/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Yomiuri) 
 
Secretary Rice in Beijing: 
 
SIPDIS 
4) Secretary Rice in meetings with Chinese leaders stresses 
cooperation in Six-Party Talks, working on North Korea to report 
nuclear plans  (Yomiuri) 
5) Rice urges China to use influence of North Korea to achieve 
progress on nuclear issue  (Asahi) 
 
6) Progress in Six-Party Talks is up to Pyongyang: Washington 
sources  (Sankei) 
 
7) Israel's Prime Minister Olmert promises to provide Tokyo with 
information on North Korea  (Asahi) 
 
8) Government to implement global warming countermeasures at Lake 
Toya Summit and 10 related conferences  (Tokyo Shimbun) 
 
9) Government planning new aid initiative in Burma (Myanmar) to help 
eradicate poverty  (Asahi) 
 
10) Former Prime Minister Nakasone meets ROK President Lee  (Sankei) 
 
 
Aegis collision fallout: 
11) Skipper of Aegis ship that collided with fishing boat was 
questioned by Defense Minister Ishiba and others before the Japan 
Coast Guard started its investigation  (Mainichi) 
12) Aegis' captain to be replaced  (Yomiuri) 
13) Ruling camp backing up Ishiba, concerned that the Aegis flap 
could hamper passage of the state budget by the Diet  (Yomiuri) 
14) Dissatisfaction with Ishiba growing in the ruling camp 
(Mainichi) 
 
15) New PKO dispatches eyed  (Nikkei) 
 
Economic affairs: 
16) Decision on new Bank of Japan governor put off after next week 
(Mainichi) 
17) Team of 11 experts, including business leaders, launch effort to 
draft a new "Maekawa plan" for restructuring the economy  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
IHI aware of losses last spring before issuance of corporate bonds 
 
Mainichi: 
Defense minister found to have questioned captain of Aegis destroyer 
Atago on the day of collision 
 
Yomiuri: 
Prof. Yamanaka reveals idea of establishing laboratory for clinical 
application of embryonic stem cells 
 
Nikkei: 
 
TOKYO 00000508  002 OF 012 
 
 
FTC to cooperate with other government offices to crack down on 
unfair transactions 
 
Sankei: 
NY Philharmonic concert in Pyongyang produces suggests thaw for 
chilly relations 
 
Tokyo Shimbun: 
Government intends to take up measures to deal with climate change 
at 10 ministerial meetings related to G-8 Toyako Summit 
 
Akahata: 
MOD, without permission, questioned captain of Aegis destroyer Atago 
before JCG investigation 
 
2) EDITORIALS 
 
Asahi: 
(1) Aegis destroyer collision: Is defense minister aware of his 
responsibility? 
(2) Castro's retirement: Need to rebuild country with generational 
change 
 
Mainichi: 
(1) MOD's delayed announcement raises suspicions 
(2) Applying government-created guidelines to evaluation of 
private-sector-sponsored certificate exams improper 
 
Yomiuri: 
(1) Aegis destroyer collision: A full inspection of SDF essential to 
prevent recurrence 
(2) NY Philharmonic concert in Pyongyang should not be used by DPRK 
as political propaganda 
 
Nikkei: 
(1) Prevention of recurrence more vital than reorganization of MOD 
(2) Castro leaves much to be done 
 
Sankei: 
(1) Health of the Emperor: Need to establish system to reduce his 
official duties 
(2) Falling cabinet approval ratings: Prime Minister Fukuda needs to 
be proactive 
 
Tokyo Shimbun: 
(1) Defense Minister Ishiba certain to face question of resignation 
 
(2) Hearings on selection of new BOJ governor in Diet should be 
open 
 
Akahata: 
(1) Aegis destroyer collision: Defense minister's heavy 
responsibility for concealment of information 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 26 
 
NIKKEI (Page 2) (Full) 
February 27, 2008 
 
07:42 
 
TOKYO 00000508  003 OF 012 
 
 
Met Deputy Chief Cabinet Secretary Ono at the Kantei. 
 
08:31 
Attended a cabinet meeting. Chief Cabinet Secretary Machimura stayed 
on. 
 
09:04 
Attended a Lower House Budget Committee session. 
 
12:11 
Met Ono. 
 
13:04 
Attended the Lower House Budget Committee session. 
 
17:23 
Signed in at the Imperial Palace to report his return. 
 
17:49 
Met State Great Hural Speaker Lundeejantsan of Mongolia at the 
Kantei. 
 
19:18 
Met LDP Upper House Caucus Chairman Otsuji, Upper House Secretary 
General Yamazaki, Machimura and others at his official residence. 
 
4) Rice, Yang confirm cooperation to move six-party talks forward; 
China asked to urge North Korea to make full nuclear declaration 
 
YOMIURI (Page 7) (Full) 
February 27, 2008 
 
U.S. Secretary of State Condoleezza Rice, now visiting China, held 
talks with President Hu Jintao, Premier Wen Jiabao, Foreign Minister 
Yang Jiechi and others in succession on Feb. 26. In their meeting in 
the morning, Rice and Yang agreed to urge North Korea to make a 
complete and full declaration of its nuclear programs, which has 
missed the end-of-2007 deadline. 
 
In a joint press conference with Yang, Rice said: "We are expecting 
North Korea to make a complete and full declaration of its nuclear 
programs, respecting its promise (six-party agreement). The United 
States and China have agreed to make efforts toward the final phase, 
completing the second-phase actions (a full declaration of the 
North's nuclear programs and the disablement of its nuclear 
facilities)." Yang also said, "We want to push the matter forward as 
soon as possible, overcoming difficulties." 
 
Rice also reiterated U.S. opposition to Taiwan's plan to hold a 
referendum on U.N. entry in tandem with the March 22 presidential 
election, saying: "I have repeated (the U.S. position) upholding the 
one-China policy. This referendum is not going to help anyone." Yang 
said, "China praises Secretary Rice's announcement on U.S. 
opposition to the planned referendum." 
 
Rice also indicated that she had expressed concern over human rights 
and the freedom of religion in China. 
 
The two foreign ministers also discussed the dying spy satellite 
that was recently shot down by a U.S. navy missile. 
 
5) Rice urges China to use influence on North Korean in order to end 
 
TOKYO 00000508  004 OF 012 
 
 
nuclear standoff 
 
ASAHI (Page 7) (Full) 
February 27, 2008 
 
Nobuyoshi Sakajiri, Beijing 
 
U.S. Secretary of State Condoleezza Rice, now visiting Beijing, held 
talks on Feb. 26 with Chinese President Hu Jintao, Premier Wen 
Jiabao, Foreign Minister Yang Jiechi and others in succession. After 
her meeting with Yang in the morning, Rice spoke about the North 
Korean nuclear standoff: "We are at an extremely critical juncture." 
She urged China to apply pressure on North Korea so as not to pass 
up a good opportunity for denuclearizing the Korean Peninsula. 
 
At the Diaoyutai State Guesthouse in Beijing, Rice indicated to the 
press corps traveling with her that she had told China that in order 
to convince North Korea that it is time to move forward, each county 
must use all of its influence, according to AP and other news 
agencies. 
 
Chinese press officer Liu Chienchao also revealed in a regular press 
conference on the dame day that Foreign Minister Yang had conveyed 
to Rice Beijing's intention to respond to a call for resuming 
U.S.-China human rights dialogue but stopped short of setting a 
concrete timeframe. 
 
In her talks with President Hu and Premier Wen in the afternoon as 
well, Secretary Rice reportedly have urged Beijing, the largest 
backer of North Korea, to use influence on Pyongyang, which has been 
slow to fulfill its disablement pledge. 
 
6) Progress on Six-Party Talks hinges on what Pyongyang does 
 
SANKEI (Page 6) (Full) 
February 27, 2008 
 
Takashi Arimoto, Washington 
 
The United States government hopes that the New York Philharmonic 
Orchestra's concert in Pyongyang yesterday will break the impasse in 
the Six-Party Talks on the North Korean nuclear issue. The situation 
is similar to what was called "ping-pong diplomacy" in the past, 
which thawed out the icy relations between the U.S. and China after 
an American team of ping-pong players visited China in 1971. 
 
The leading player in realizing this concert was U.S. Assistant 
Secretary of State Christopher Hill, America's chief negotiator in 
 
SIPDIS 
the Six-Party Talks. Hill has stressed: "North Korea  argues that it 
possesses nuclear arms because of America's hostile policy to that 
country, but holding this concert is a kind of proof that the U.S. 
does not adopt such a policy." 
 
Washington has shown its willingness to take steps to normalize 
diplomatic ties with Pyongyang, for instance, resolving such 
outstanding issues as delisting North Korea as a state sponsor of 
terrorism and as a country subject to the Trading with the Enemy Act 
-- both requested by the North -- as well as opening a liaison 
office, once the North declares all its nuclear programs. 
 
Presumably, Hill's ulterior motive is to make landmark progress on 
the North Korean issue, something never achieved by the past 
 
TOKYO 00000508  005 OF 012 
 
 
administrations, by having the North disable its nuclear facilities 
in Yongbyon and by facilitating the North's declaration of its 
nuclear programs. 
 
A growing view in the U.S. government, however, is that it is 
questionable how far Pyongyang is ready to engage in talks with 
Washington in a serious manner, given that the Bush administration 
will leave office next January. 
 
An idea being floated is to first resolve plutonium-based nuclear 
programs while shelving for the time being the uranium 
enrichment-based nuclear programs, over which the U.S. and North 
Korea have conflicting views, and the issue of nuclear proliferation 
to other countries. At present, however, there are no signs that 
Washington will accept that idea. 
 
At one point Hill indicated his willingness to accept a gradual 
declaration of nuclear programs, but there is a strong opposition to 
that declaration particularly in the National Security Council. 
 
According to an involved U.S. official, President Bush is highly 
concerned that if North Korea is allowed to declare its nuclear 
programs piecemeal and given something in return, the U.S. will end 
up following North Korea's pace. 
 
During his stay in Japan, Hill indicated that "North Korea, which 
faces difficult economic conditions, may give in sooner or later." A 
source familiar with the six-party talks also indicated that the New 
York Philharmonic Orchestra's performance this time could set the 
stage to resume the Six-Party Talks. But the source noted also: 
"Negotiations will not progress if the U.S. and North Korea stick to 
their respective positions." 
 
7) Israeli prime minister to propose closer cooperation with Japan 
on North Korea information 
 
ASAHI (Page 7) (Full) 
February 27, 2008 
 
Visiting Israeli Prime Minister Ehud Olmert is scheduled to hold a 
meeting with Prime Minister Yasuo Fukuda today, in which the Israeli 
prime minister will propose an expanded exchange of information with 
Japan on North Korea, which is pushing ahead with military 
cooperation with such countries as Iran and Syria that are hostile 
toward Israel. This was revealed by prime ministerial spokesman 
Regev in an interview to the Asahi Shimbun yesterday. 
 
Regev expressed strong concern about North Korea's activities in the 
Middle East, saying: "North Korea has nuclear weapon and ballistic 
missile technologies. We fear that such a country will join hands 
with reckless governments in the Middle East." He also indicated 
that (Prime Minister Olmert) will propose expanded dialogue with 
Japan on the political, diplomatic and security fronts, noting that 
combining Israel's information on North Korea in the Middle East 
with Japan's information on the North would benefit the two 
countries. 
 
8) Government to implement global warming countermeasures at Lake 
Toya Summit and 10 related conferences 
 
TOKYO SHIMBUN (Top Play) (Full) 
February 27, 2008 
 
TOKYO 00000508  006 OF 012 
 
 
 
The government has decided to implement global warming 
countermeasures in the Lake Toya Summit this July and related 10 
cabinet ministerial conferences to be held in the nation. In the 
G-20 Climate Change Conference to be held in March by the state 
ministers for the environment and the economy at the Makuhari Messe 
in Chiba Prefecture, the government plans to use renewable energy as 
electric power. In other major cabinet ministerial meetings, a 
carbon offset method will be made use of. The government aims to 
demonstrate advanced measures to contain global warming. 
 
Climate change will be high on the agenda at the Lake Toya Summit. 
Prior to the summit, 10 conferences will be held in the nation, 
including the G-20, the Environment Ministerial Conference in Kobe 
and the Africa Development Conference in Yokohama both in May, and 
the Foreign Ministerial Conference in late June. 
 
The Environment Ministry worked out guidelines on global warming 
countermeasures in running the conferences and distributed their 
copies to the ministries and agencies concerned. For the G-20, the 
government plans to purchase a green electricity certificate, which 
has the same meaning as using wind power, besides introducing the 
carbon offset mechanism. 
 
The government is also considering adopting the carbon offset 
mechanism in the Africa Development Conference and the Energy 
Ministerial Conference in Aomori Prefecture in June. Further, it 
will look into using energy-saving resources, such as letting 
natural wind into conference halls and avoiding the use of 
disposable drink bottles. 
 
A government source said: "The Lake Toya Summit and the cabinet 
ministerial conferences will provide a good opportunity for Japan to 
play up its global warming countermeasures as its message. We would 
like to device ways for these measures to be effectively used also 
in the future." 
 
9) UN assistance to Burma: Government to support new initiative; 
Special Advisor Gambari visiting Japan 
 
ASAHI (Page 4) (Full) 
February 27, 2008 
 
The government has decided to support the National Economic Forum 
Initiative, which Special Advisor of the UN General Secretary on 
Burma Gambari will propose as a new framework for helping Burma 
combat poverty. The proposal is part of UN efforts to promote the 
nation's democratization. The envisaged initiative is a new 
framework for extending in consultation with the junta economic aid 
centered on the humanitarian area with a focus on the nation's 
economic, social and minority issues involving poverty and social 
disparities. Foreign Minister Koumura and Vice Foreign Minister 
Mitoji Yabunaka will convey Japan's decision to Gambari during talks 
with him on Feb. 27-28. 
 
According to a government source, the junta has announced a plan to 
enact a constitution by holding a national election in May, and 
transfer power to a civilian government. The same source also said 
that the government is aiming at indirectly supporting Burma's 
democratization through aid in broad-based areas. 
 
Japan will listen to the views of Gambari during the two-day talks 
 
TOKYO 00000508  007 OF 012 
 
 
with him and exchange opinions on a specific framework for how aid 
should be extended and the feasibility of aid. Following the slaying 
of journalist Kenji Nagai in Burma, Japan put on hold part of its 
humanitarian aid to that nation. The government views that it would 
be possible to extend assistance through a UN-led framework. 
 
Gambari will visit Burma in early March, after winding up his Japan 
visit, and hold talks with the junta. According to a diplomatic 
source, a Burmese cabinet minister in charge has shown a negative 
stance toward the proposal in the belief that European countries and 
the U.S. might intervene in the country's democratization process 
through the Forum. 
 
It is now an open question whether the UN can get involved in 
assistance to Burma while preventing its efforts from becoming 
assistance to the junta, as well as whether European countries and 
the U.S., which are adopting a harsh stance to the junta, including 
the implementation of sanctions, will take part in the Initiative. 
Some take the view that there is no knowing whether the Initiative 
can be realized. 
 
Japan has pursued diplomacy in its own way, while keeping a limited 
channel with the junta. It released a comment by a Foreign Ministry 
spokesman hailing the junta for indicating a democratization 
schedule.  Regarding the slaying of Nagai, the government dispatched 
a police official to Burma in mid-February. Tough talks aimed at 
shedding light on the incident are continuing, according to a senior 
Foreign Ministry official. The government wants to proceed with the 
investigation separately from the assistance plan. 
 
10) Former Prime Minister Nakasone meets with ROK President Lee 
 
SANKEI (Page 5) (Full) 
February 27, 2008 
 
Morimichi Imabori, Seoul 
 
Former Prime Minister Yasuhiro Nakasone, now visiting Seoul, met 
yesterday with new South Korean President Lee Myung Bak at the Blue 
House presidential office. Nakasone expressed strong hopes for 
President Lee, saying: "The spring season has come to Northeast 
Asia. With the inauguration of President Lee, Japan-South Korea 
relations will likely improve and progress significantly." He 
continued: "The support of the public is key to any administration. 
I hope to see you overcome difficulties with confidence so that you 
won't lose public support." 
 
President Lee responded: "I would like to improve South Korea-Japan 
relations. I want you to give me advice whenever you visit my 
country." 
 
Nakasone told Lee: "I want you to take the initiative as president 
of South Korea, which is located between Japan and China," and he 
sought an early summit meeting of the leaders of Japan, China and 
South Korea. Lee spoke positively about it: "It was regrettable that 
there has been a lack of regional cooperation in Northeast Asia, 
although such cooperation has been promoted elsewhere in the 
world." 
 
11) Ishiba personally quizzed Atago's chief navigator 
 
MAINICHI (Top play) (Abridged) 
 
TOKYO 00000508  008 OF 012 
 
 
February 27, 2008 
 
In connection with last week's collision between the Maritime 
Self-Defense Force's Aegis destroyer Atago and the tuna trawler 
Seitoku Maru in waters off Chiba Prefecture's Nojima Point, four 
Defense Ministry leaders, including Defense Minister Shigeru Ishiba, 
had directly heard from the Atago's chief navigator in the defense 
minister's room about the accident before authorities from the Japan 
Coast Guard's 3rd Regional Coast Guard Headquarters questioned him 
about the factual circumstances, informed sourced revealed. The 
chief navigator was airlifted by helicopter to the Defense Ministry. 
On that occasion, the MSDF had permission from the JCG to airlift an 
"injured person." However, the MSDF did not tell the JCG that the 
chief navigator would be taken as well. The chief navigator was on 
duty before the accident and knows well about what happened before 
and after the accident. Ishiba has given no account of the fact that 
he heard from the chief navigator in person about the circumstances. 
The four defense officials' closed-door questioning of the chief 
navigator will likely spark criticism. 
 
The MSDF Maritime Staff Office, headquartered in Tokyo's Shinjuku 
Ward, planned to call in an Atago-based officer right after the 
accident to hear details about the accident due to the lack of 
information from the Atago out at sea, according to informed 
sources. At around 10 a.m., Feb. 19, about six hours after the 
accident, a helicopter that arrived at the Atago from the MSDF's 
Yokosuka base in Kanagawa Prefecture headed for MSO headquarters 
with the chief navigator onboard. At that time, the MSO had 
permission from the JCG to "carry an injured crewmember." 
 
The chief navigator was questioned at MSO headquarters for about one 
hour. He is believed to have stated with a note that he "saw a green 
light two minutes before the collision, spotted the fishing boat one 
minute before the collision, and tried to avoid colliding by 
reversing engines at full throttle." 
 
Apart from that hearing, four officials from the Defense Ministry 
and the Self-Defense Forces also heard from the chief navigator 
about the circumstances. The four were Ishiba, Administrative Vice 
Defense Minister Kohei Masuda, SDF Joint Staff Office Chief Takashi 
Saito, and MSDF Chief of Staff Eiji Yoshikawa. The chief navigator 
is believed to have given a similar explanation to the four. The 
chief navigator flew back on a helicopter at around 2:30 p.m., 
according to the sources. 
 
So far, Ishiba has explained that he only received a report from the 
MSO about its hearing from the chief navigator. The Defense Ministry 
also explained that the MSDF had permission in advance from the JCG 
to airlift and question the chief navigator. However, the JCG's 3rd 
Regional Coast Guard Headquarters ruled out that account, saying: 
"We received a report from the Defense Ministry about its hearing 
(of the chief navigator). It was after that hearing." 
 
12) Defense Minister Ishiba to dismiss Atago captain 
 
YOMIURI (Page 1) (Full) 
February 27, 2008 
 
Defense Minister Shigeru Ishiba revealed yesterday in a House of 
Representatives Security Committee session his intention to dismiss 
Ken Funato, the captain of the Maritime Self-Defense Force Aegis 
destroyer Atago, which collided with the fishing boat Seitoku Maru. 
 
TOKYO 00000508  009 OF 012 
 
 
 
Asked how he would treat Captain Funato, Ishiba said: "It's matter 
of course to consider (punishing him). I don't think it's 
appropriate for him to remain a captain." 
 
Ishiba made the remarks in response to a question by Keisuke Tsumura 
of the main opposition Democratic Party of Japan (DPJ or Minshuto). 
 
In regard to a report that Funato was resting at the time of 
collision, Ishiba said, "It was not advisable," adding that it is 
not certain whether there is a link between the accident and 
Funato's rest. Regarding the timing for the dismissal, Ishiba said: 
"Since I have not directly met (with the captain and other crew 
members), I can't punish him without getting sufficient 
information." He indicated that he would make a decision after the 
Defense Ministry investigates the cause of the accident following 
the investigation currently being conducted by the Third Regional 
Coast Guard Headquarters. 
 
The Third Regional Coast Guard questioned Funato on Feb. 25. 
 
13) Ruling parties back defense minister, worried about effect on 
budget deliberations 
 
YOMIURI (Page 4) (Excerpts) 
February 27, 2008 
 
With another revelation that the Defense Ministry bungled the 
handling of communication and release of information on the 
collision of a Maritime Self-Defense Force Aegis destroyer and 
fishing boat, the ruling parties are concerned about the negative 
impact on Diet deliberations. The ruling coalition, however, has not 
budged from its stance of supporting Defense Minister Shigeru 
Ishiba, premised that the public has not been calling for his 
resignation, even though the opposition camp has demanded it. 
 
The Diet affairs committee chairmen of the ruling Liberal Democratic 
Party (LDP) and its coalition partner New Komeito agreed yesterday 
that they would hold concentrated deliberations on the collision of 
the Aegis ship and fishing boat in a House of Representatives Budget 
Committee meeting on Feb. 29. In the wake of the revelation of a 
string of bungled efforts by the Defense Ministry, a senior LDP Diet 
affairs committee member said: "Since the public is now critical of 
the Defense Ministry, the matter has to be carefully dealt with." 
Following this, the ruling camp yesterday withdrew its proposal that 
a vote be taken on the fiscal 2008 budget bill on Feb. 28 in a Lower 
House Budget session. 
 
The ruling bloc aimed to pass the FY2008 budget bill and 
taxation-related bills through the Lower House by Feb. 29, but it is 
now uncertain whether the bills will be put to a vote in the 
committee and Lower House plenary sessions on the 29th, since 
concentrated debate will be held the same day. A senior LDP member 
yesterday expressed concern that the passage of the bills by the 
Lower House might be delayed to March. He said: "The collision 
incident will become a good material for the opposition camp to 
prolong deliberations on the budget bill." 
 
The dominant view on Ishiba's course of action in the ruling camp is 
that he should place priority on making efforts to provide comfort 
to the family of the victims, shed light on the truth, and take 
steps to prevent a recurrence of similar incidents. 
 
TOKYO 00000508  010 OF 012 
 
 
 
Ishiba's alleged involvement in a cover-up of information on when 
the fishing boat was first spotted has given the opposition a weapon 
to pursue his responsibility for the accident. However, it seems 
that many ruling coalition members support Ishiba because the family 
members of the fishing boat crewmembers want Ishiba to remain in 
office and because a number of opinion polls found the public 
wanting reform of the Defense Ministry. 
 
14) Calls for Ishiba's resignation may grow over ministry's 
mishandling of information; Criticism welling up even in ruling 
camp 
 
MAINICHI (Page 2) (Excerpts) 
February 27, 2008 
 
On the collision accident between the Maritime Self-Defense Force 
(MSDF) Aegis destroyer Atago and a fishing boat, it has been 
revealed that the correct information that the fishing boat was 
spotted 12 minutes before the crash had been held back for about 20 
hours. It has also been unveiled that four top Defense Ministry 
officials had secretly questioned (the captain of the Atago) about 
the accident (on the day of the accident). The revelation may spur 
calls for Defense Minister Shigeru Ishiba's resignation. Ishiba 
indicated on Feb. 22 his intention to resign if the ministry was 
found to have attempted to conceal the truth. The opposition camp 
will inevitably pursue Ishiba's responsibility for the ministry's 
manipulation of information if such is found true. Criticism of the 
Defense Ministry is welling up even in the government and the ruling 
camp. 
 
In a House of Representatives' Security Committee meeting yesterday, 
Ishiba said: "It is my responsibility to respond to the feelings of 
the family (of the missing fishermen)," rejecting the idea of 
resigning from his office. He emphasized that the ministry had not 
intended to conceal truth or falsify information. Ishiba also 
stressed his determination to fulfill his duty as defense minister 
by taking the initiative in reforming the Defense Ministry. 
 
In the meeting, though, there was a scene in which Ishiba admitted 
his responsibility, saying: "I am the person responsible for 
ministry affairs." Occasionally having a fit of coughing, he also 
said: "I have to admit (the lack of cooperation in the ministry)." A 
look of fatigue seemed to have settled in his face. 
 
15) Gov't mulls sending additional SDF troops for PKO missions 
 
NIKKEI (Page 1) (Full) 
February 27, 2008 
 
The government is now considering sending Self-Defense Forces 
personnel for United Nations peacekeeping operations in addition to 
those currently on PKO missions. In the run-up to sending SDF 
troops, the government will send SDF personnel to PKO headquarters 
in the Middle East, Asia, and other areas. Prime Minister Yasuo 
Fukuda has advocated a "peace cooperative nation" to take positive 
part in international peace-building efforts. His cabinet will adopt 
an implementational plan for this peace cooperative initiative 
before this July's Group of Eight (G-8) summit (Toyako Summit). 
 
The government has plans to send SDF personnel to the headquarters 
of the United Nations Integrated Mission in Timor-Leste (UNMIT) in 
 
TOKYO 00000508  011 OF 012 
 
 
East Timor and to the headquarters of the United Nations Truce 
Supervision Organization (UNTSO) in the Middle East. In addition, 
the government is also planning to send SDF personnel to the 
headquarters of the United Nations Missions in Sudan (UNMIS). A 
group of several SDF members will be posted to each of these 
headquarters, where they will look into what the SDF can do. Based 
on their fact-findings, the government will make a feasibility study 
of SDF troop dispatches. 
 
In March 2007, Japan sent six SDF personnel for a PKO mission in 
Nepal as military observers. Japan currently posts 51 SDF members to 
PKO missions in Nepal and the Golan Heights in the Middle East. 
Japan ranks 82nd among 119 countries on PKO missions. China 
currently posts about 2,000 troops to PKO missions and South Korea 
about 420. The prime minister and the Foreign Ministry are concerned 
about a lowering of Japan's standing in the international community. 
The government will therefore hurry to send SDF batches for PKO 
missions overseas. 
 
16) Selection of new GOJ governor: Submission of proposal to Diet 
postponed until next week or later 
 
ASAHI (Page 4) (Full) 
February 3, 2008 
 
The government decided to postpone the submission of its selection 
of a new Bank of Japan governor, which requires Diet approval, to 
the Diet until next week or later. It is now undergoing final 
coordination with an eye to promoting Deputy Governor Toshiro Muto. 
In order to determine the situation in the Democratic Party of Japan 
(DPJ or Minshuto), which is strongly opposing the selection of Muto, 
it decided to leave the matter to Prime Minister Fukuda to make a 
final decision regarding when to submit its decision and its 
details. A senior government official revealed the government's 
decision yesterday evening. 
 
The government at first had undertaken coordination with the 
possibility of submitting its decision to the Diet within this week. 
However, the confrontation between the ruling parties, which aim at 
securing Lower House approval for the fiscal 2008 budget bill within 
this week, and the opposition camp, which is seeking more 
deliberations, has escalated. The DPJ has yet to consolidate the 
views of its members on the propriety of promoting Muto as governor. 
As such, the government has made the judgment that it would be 
inadvisable to submit a proposal (promoting Muto) now to the Diet, 
because it will likely create turmoil. 
 
17) Heisei period equivalent of 1980s Maekawa (Structural Reform) 
Report to be mapped out: Eleven-member experts panel including 
business leaders starts discussion 
 
MAINICHI (Page 3) (Full) 
February 27, 2008 
 
The government's Council on Economic and Fiscal Policy (chaired by 
Prime Minister Yasuo Fukuda) yesterday held a first meeting of its 
experts panel tasked with mapping out new guidelines for economic 
structural reforms. The panel is expected to compile in June a 
report, which will prop up the Fukuda cabinet's growth strategy on 
the theoretical front. It will aim at mapping out a Heisei period 
equivalent of the Maekawa Report, issued in April 1986, which called 
for a shift from an export-dependent economy to a domestic 
 
TOKYO 00000508  012 OF 012 
 
 
demand-led economy. 
 
The name of the panel is the Experts Panel on Structural Changes and 
the Japanese Economy, consisting of 11 private-sector members, such 
as academics, economists and business leaders. Fukuda appointed 
Tokyo University Graduate School Professor Kazuo Ueda as chairman. 
At the outset of the meeting, State Minister for Economic and Fiscal 
Policy Hiroko Ota, who spearheaded the establishment of the panel, 
explained the objective of the meeting, "I want to contemplate what 
kind of economy can sustain substantive domestic demand amid the 
dwindling birthrate." 
 
The panel will probe into challenges facing the Japanese economy 
stemming from a spreading division of labor throughout the world and 
changes in the capital flow as a result of the economic 
globalization. Members will discuss 11 issues, including the roles 
to be fulfilled by both companies and households to build a domestic 
demand-led economic structure. 
 
The panel will map out a report before the Lake Toya G-8 (Summit) in 
Hokkaido. The Fukuda cabinet will underscore its stance of attaching 
importance to economic growth. 
 
SCHIEFFER