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UNCLAS SECTION 01 OF 15 TOKYO 000522 
 
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 02/28/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Visit of Secretary Rice: 
4) Secretary Rice, Prime Minister Fukuda see need to strengthen 
alliance in wake of schoolgirl rape incident  (Tokyo Shimbun) 
5) Secretary Rice offers apology for Marine rape incident 
(Mainichi) 
6) Rice stresses resolve to prevent recurrence of incidents like the 
Okinawa rape  (Nikkei) 
7) Rice confirms with Prime Minister Fukuda importance of preventive 
measures to halt U.S. military misconduct  (Yomiuri) 
8) - Issue of SOFA revision put to rest by Rice visit, but Okinawa 
sentiments still strong for changing the pact  (Mainichi) 
9) Rice stresses cooperation among Japan, U.S., ROK to deal with 
North Korean issue  (Asahi) 
10) Rice: No deadline set for DPRK to declare nuclear programs 
(Nikkei) 
11) Rice urges North Korea again to completely declare its nuclear 
programs  (Mainichi) 
12) Japan, Israel issue joint statement at summit meeting giving 
priority to peace process  (Yomiuri) 
 
Defense issues: 
13) USFJ releases report on off-base housing that shows more than 
half or the 21,885 residents in 15 prefectures are in Okinawa 
(Mainichi) 
14) Permanent PKO dispatch law put on hold due to Aegis collision 
incident  (Yomiuri) 
15) Vice defense minister apologizes for failure to inform JCG about 
questioning of navigating officer  (Asahi) 
 
Political issues: 
16) Ishiba's conduct in questioning captain without informing Coast 
Guard another blow for the Fukuda administration  (Mainichi) 
17) Fight over budget adoption in the Diet further sidetracked by 
the Aegis row  (Nikkei) 
18) Bank of Japan appointment also bumped back by the Aegis incident 
 (Asahi) 
19) Democratic Party of Japan again pushing for someone other than 
Muto for BOJ governor  (Asahi) 
20) Democratic Party of Japan to present counterproposal to the 
government's road funding bill that uses gasoline taxes  (Nikkei) 
 
21) Fukuda to host 16 nation summit on global warming to coincide 
with the Lake Toya G-8 Summit in July  (Asahi) 
 
22) Restrictions on foreign investment in airports will be approved 
by the cabinet next week but in a scaled-down version  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, & Tokyo Shimbun: 
Defense Ministry questions navigator of Atago without approval from 
Japan Coast Guard; Calls growing in ruling camp for Ishiba's 
resignation 
 
 
TOKYO 00000522  002 OF 015 
 
 
Nikkei: 
Government shelves plan to limit foreign stakes in airport operators 
for now 
 
Akahata: 
Rally calling for revision of Worker Dispatch Law held in Diet 
Building 
 
2) EDITORIALS 
 
Asahi: 
(1) Prince Hotel should have had courage to counter right-wing 
group's outrageous acts toward Japan Teachers' Union 
(2) Take initiative in forming international emissions-trading 
system 
 
Mainichi: 
(1) Bush administration should express resolve to denuclearize North 
Korea during term of office 
 (2) Focus on Improving pension system, special accounts in 
discussion on establishing Japanese-version SWF 
 
Yomiuri: 
(1) Rice's Japan visit as part of steady efforts to maintain 
Japan-U.S. alliance 
(2) Contain financial resources by revising Anti-Gangster Law 
 
Nikkei: 
(1) Government must present new prescriptions for structural reform 
in report due out in June 
(2) Burmese military junta's dictatorship unacceptable 
 
Sankei: 
(1) What Defense Minister Ishiba should address now is ministry 
reform, reflecting on Aegis collision incident 
(2) Rice's visit to Japan: It's time to reconstruct alliance among 
Japan, U.S., and South Korea 
 
Tokyo Shimbun: 
(1) Labor unions' abilities tested over rectifying income 
disparities in spring wage struggle 
(2) Cuban Castro's retirement should be made chance for easing 
tensions 
 
Akahata: 
(1) Stop maneuverings to change the nature of treaty to ban on use 
of cluster munitions 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 27 
 
NIKKEI (Page 2) (Full) 
February 28, 2008 
 
08:47 
Met with Health and Labor Minister Masuzoe and State Minister in 
Charge of Declining Birth Rate Kamikawa at Kantei. 
 
09:37 
Met with Chief Cabinet Secretary Machimura, Deputy Chief Cabinet 
Secretary Futahashi, and Deputy Assistant Chief Cabinet Secretary 
 
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TOKYO 00000522  003 OF 015 
 
 
Saka. 
 
10:17 
Met with METI Vice Minister Kitabatake, METI Economic and Industrial 
Policy Bureau Director-General Suzuki, METI Manufacturing Industries 
Bureau Director-General Hosono, and METI Trade and Economic 
Cooperation Bureau Director-General Adachi. Afterwards, met with 
Administrative Vice Agriculture Minister Shirasu. 
 
11:06 
Met with Ambassador to Israel Katori and MOFA Middle Eastern and 
African Affairs Bureau Director-General Okuda. Afterwards, met with 
Futahashi. 
 
12:30 
Attended a session of the Consumer Administration Promotion 
Council. 
 
14:58 
Met with Futahashi. 
 
15:52 
Met with House of Representatives member Yasufumi Tanahashi. 
 
16:25 
Met with U.S. Secretary of State Condoleezza Rice. 
 
17:36 
Met with House of Representatives members Taku Yamasaki and Koichi 
Kato. 
 
18:02 
Met with Israeli Prime Minister Olmert. Afterwards, held a joint 
press conference and hosted, together his wife, a dinner party for 
him. 
 
20:49 
Arrived at residential quarters in Kantei. 
 
4) Secretary of State Rice meets with Prime Minister Fukuda: Both 
expresses sense of crisis over rape of school girl by U.S. Marine, 
emphasizes need to strengthen alliance 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 28, 2008 
 
Yuji Nishikawa 
 
U.S. Secretary of State Condoleezza Rice yesterday met separately 
with Prime Minister Yasuo Fukuda, Foreign Minister Masahiko Komura, 
and other Japanese leaders. In those dialogues, both Japan and the 
United States repeatedly emphasized the need to strengthen the 
bilateral alliance. Standing in the way of the two governments' 
efforts to do so is a spate of misconducts by U.S. service members, 
including the recent alleged rape of a junior high school girl by a 
U.S. Marine in Okinawa. In order to prevent any harmful effect on 
the bilateral alliance, the Japanese and U.S. governments 
highlighted their determination to take measures to prevent a 
recurrence of similar incidents, revealing their sense of crisis 
over the situation. 
 
At the outset of these meetings, Rice expressed regrets over the 
 
TOKYO 00000522  004 OF 015 
 
 
incident and stressed her intention to make all she can to prevent a 
recurrence, noting, "We never hope to see such an incident occur. In 
order to prevent a recurrence of similar incidents, I'd like to 
cooperate with the Japanese government." In response, the Japanese 
side expressed concern about a possible impact on the Japan-U.S. 
alliance with Defense Minister Shigeru Ishiba saying, "It was an 
unfortunate incident for the alliance." 
 
Japan resumed the Maritime Self-Defense Force's (MSDF) refueling 
mission in the Indian Ocean, which had been suspended in last 
November and had been pending for the Japanese and U.S. governments 
since then just until recently, on Feb. 21 after a hiatus of four 
months. In last December, the MSDF succeeded in its missile defense 
(MD) intercept test conducted in waters off Hawaii. The bilateral 
alliance was thus in a good shape, but it is now being rocked by a 
spate of misconducts committed by U.S. service members. 
 
On Feb. 22, the Japanese government released a set of measures to 
prevent a recurrence of similar incidents, such as receiving a 
report on the number of U.S. military personnel living off-base once 
a year from the U.S. side. The Ministry of Defense (MOD), as if to 
be aware of Rice's visit to Japan, yesterday publicized the numbers 
of U.S. service members (who live off-base) in cities, towns, and 
villages respectively across the country. 
 
However, doubts are already raised about the effectiveness of those 
preventive measures. Okinawa Prefecture calls for a drastic review 
of the U.S.-Japan Status of Forces Agreement (SOFA) in order to 
specify that suspects detained by the U.S. side should be hand over 
to Japan before indictment. 
 
The Japanese government, however, is negative about reviewing SOFA 
because it does not want to touch on cumbersome issues for the 
alliance. The Japanese government intends to simply improve the 
operation of SOFA. In fact, in the meeting yesterday with Rice, 
Koumura said, "We aim to take effective, comprehensive and 
continuous measures to prevent a recurrence of similar incidents in 
order to minimize the impact of the incident on the Japan-U.S. 
alliance." Both leaders did not discuss SOFA. 
 
5) Rice offers apologies for U.S. serviceman's incident 
 
MAINICHI (Page 3) (Full) 
February 28, 2008 
 
Prime Minister Yasuo Fukuda yesterday met at his office with U.S. 
Secretary of State Rice. In the meeting, Rice offered her apologies 
 
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for an Okinawa-based U.S. Marine's alleged rape of a junior high 
school girl and other recent incidents involving American servicemen 
in Japan. "It's extremely regrettable and we're sorry," Rice said, 
"and we take these incidents seriously." She added, "We want to make 
our utmost efforts to prevent similar incidents." Fukuda responded 
by saying he would like to convey her words to the Japanese people. 
"We would like to work together between Japan and the United States 
to prevent a recurrence," Fukuda told Rice. 
 
After the meeting, Fukuda told reporters, "We agreed to make 
steadfast efforts so that there will never be this sort of incident 
again." With this, Fukuda underscored the need for Japan and the 
United States to cooperate in building a system to prevent such 
incidents from recurring. 
 
 
TOKYO 00000522  005 OF 015 
 
 
Rice then met with Foreign Minister Masahiko Koumura, during which 
the two confirmed a course of action to continue efforts for 
"effective and comprehensive" measures in order to prevent similar 
incidents. Meanwhile, Japan has now resumed the Maritime 
Self-Defense Force's refueling activities in the Indian Ocean. 
"Japan will aim to be a peaceful cooperative nation," Koumura told 
Rice. He also said the Japanese government would consider 
establishing a permanent law allowing Japan to send the Self-Defense 
Forces for overseas missions. In connection with North Korea's 
nuclear programs, Koumura referred to the issue of delisting North 
Korea as a terror sponsor and explained that Japan's position is to 
see progress in the pending issue of Japanese nationals abducted to 
North Korea before that. Rice answered, "We will fully consult with 
Japan." 
 
6) Rice stresses resolve to put efforts into preventing similar 
cases to U.S. Marine raping schoolgirl in Okinawa 
 
NIKKEI (Page 2) (Full) 
February 28, 2008 
 
Visiting U.S. Secretary of State Condoleezza Rice met Prime Minister 
Yasuo Fukuda, Foreign Minister Masahiko Koumura, and Defense 
Minister Shigeru Ishiba in succession yesterday. Rice and Fukuda 
agreed on the need for Japan, the U.S., and South Korea to cooperate 
in persuading North Korea to resolve the issue of is past abductions 
of Japanese nationals and to scrap its nuclear development program. 
On the recent rape of a schoolgirl by a U.S. Marine in Okinawa, Rice 
expressed her sincere regret and promised to make utmost efforts to 
prevent similar incidents. 
 
Fukuda and Rice also promised to cooperate in forming a new 
international framework to fight global warming beyond the 2012 
timeframe set under the Kyoto Protocol. Rice said: "In tackling the 
issue of climate change, it is necessary to also take economic 
growth into consideration." 
 
Secretary Rice and Foreign Minister Koumura shared the importance of 
 
SIPDIS 
strengthening cooperation among Japan, the U.S., and Australia, as 
well as with the North Atlantic Treaty Organization (NATO). 
 
In a joint press conference, Koumura stated: "We agreed on the view 
that it is necessary for Japan, the U.S., and South Korea to 
strengthen cooperation in dealing with common challenges, including 
issues related to North Korea." In reference to the issue of 
dropping North Korea from a U.S. terrorism blacklist, Koumura said: 
"She told me that the U.S. will fully discuss the issue with Japan." 
Regarding the abduction issue, Rice emphasized: "The U.S. would like 
to continue to support bilateral talks between Japan and North 
Korea." 
 
7) Rice apologizes for string of irregularities involving U.S. 
service members, confirms with prime minister to take preventive 
measures 
 
YOMIURI (Page 2) (Full) 
February 28, 2008 
 
Prime Minister Yasuo Fukuda held a meeting with U.S. Secretary of 
State Condoleezza Rice at his office yesterday. In the session, 
Secretary Rice apologized for a series of misconducts involving U.S. 
 
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service members in Okinawa, including the recent alleged sexual 
 
TOKYO 00000522  006 OF 015 
 
 
assault against a junior high school girl by a U.S. Marine, saying, 
"We feel deeply sorry and take them seriously." 
 
Secretary Rice also said that "the United States would like to work 
 
SIPDIS 
closely with Japan" in taking measures to prevent such incidents 
from occurring. The two leaders confirmed that the two countries 
would make utmost efforts to take preventive measures, with Prime 
Minister Fukuda saying, "It is a matter that must be taken 
seriously." 
 
Further, regarding climate change, a central topic in the G8 Lake 
Toya Summit in July, the prime minister said: "Combating global 
warming is imperative. We would like to work closely with the United 
States with the G8 Summit in mind." In response, Secretary Rice 
said, "In addressing climate change, it is important to keep a 
balance with economic growth." She thus indicated that the United 
States would carefully deal with accepting a quota for reducing 
greenhouse gas emissions. 
 
Secretary Rice also held talks in succession with Chief Cabinet 
 
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Secretary Machimura, Foreign Minister Koumura, and Defense Minister 
 
SIPDIS 
Ishiba. In her talks with Koumura, the secretary welcomed Japan's 
resumption of the refueling operation in the Indian Ocean under the 
current Antiterrorism Special Measures Law. In response, Foreign 
Minister Koumura told her about the government's plan to study a 
permanent law specifying conditions for the overseas dispatch of the 
Self-Defense Forces. 
 
As for North Korea's nuclear programs, they also confirmed the 
policy course for Japan, the United States and South Korea to 
strengthen trilateral cooperative ties. They further agreed to 
continue to work together on pressing North Korea to present a 
complete and correct declaration of its nuclear programs. In her 
meeting with Defense Minister Ishiba, Secretary Rice, based on the 
establishment of the new South Korean administration led by 
President Lee Myung Bak, said: "Japan and South Korea are U.S. 
allies. We would like to strengthen those alliances in dealing with 
not only the denuclearization of North Korea but also with overall 
security in this region." 
 
8) Visit of Secretary Rice puts seal on government talk about 
revising the SOFA over the Okinawa rape incident, but prefectural 
distrust likely to grow 
 
MAINICHI (Page 5) (Excerpt) 
February 28, 2008 
 
In connection with the rape of a schoolgirl in Okinawa, the Japanese 
and U.S. governments through a series of meetings, including that 
between Prime Minister Fukuda and Secretary of State Rice, have 
confirmed that they will cooperate to prevent a recurrence of 
similar incidents. Although the government's measures to stop 
recurrences has been appreciated in Okinawa Prefecture as a rapid 
response, the gap between public opinion in Okinawa and the 
government over revising the Status of Forces Agreement (SOFA), 
which the government will not do, remains as wide as ever. The 
effectiveness of the preventive measures has only led to even 
greater distrust in the prefecture. 
 
9) U.S. Secretary of State Rice: Cooperation among Japan, U.S., ROK 
necessary to deal with North Korea issue; Offers apology for rape 
incident 
 
TOKYO 00000522  007 OF 015 
 
 
 
ASAHI (Page 4) (Full) 
February 28, 2008 
 
Visiting U.S. Secretary of State Condoleezza Rice met yesterday with 
Prime Minister Yasuo Fukuda and Foreign Minister Masahiko Koumura 
separately. She offered an apology for the alleged rape of an 
Okinawan schoolgirl by a U.S. Marine. In the meetings, agreement was 
reached that Japan and the United States would cooperate to prevent 
a recurrence of similar incidents. In an interview to the Asahi 
Shimbun held prior to the meeting with Fukuda and Koumura, Secretary 
Rice said that the U.S. administration would place priority 
especially on cooperation between the U.S., Japan and South Korea in 
dealing with North Korean issues, following the inauguration of 
South Korean President Lee Myung Bak, who has stressed the 
importance of cooperation with the United States and Japan. The 
cooperation includes the resumption of foreign ministerial meetings 
among the three countries. 
 
In the interview, Secretary Rice expressed sincere regret over the 
U.S. Marine's rape incident. She said: "The incident was extremely 
regrettable. American people and the U.S. government are concerned 
about the girl and her family." Prime Minister Fukuda told her: "I 
would like to see cooperation between Japan and the United States to 
prevent a recurrence." 
 
Referring in the interview to how to strengthen cooperation between 
the U.S., Japan and South Korea, Secretary Rice stated: "It is only 
natural for the United States to cooperation with Japan and South 
Korea because we are allies." She underscored a stance of 
strengthening cooperation more with the new South Korea government 
than the previous Roh Moo Hyun government, which distanced itself 
from the United States and Japan. She also said: "The United States, 
Japan and South Korea once held foreign ministerial meetings. The 
three countries will probably continue them from now on." She 
indicated a resumption of meetings of the Trilateral Cooperation and 
Oversight Group (TCOG), which have been suspended since 2003. Prime 
Minister Fukuda pointed out: "Cooperation between Japan, the United 
States, and South Korea is also important." 
 
10) Rice indicates no intent to set deadline for North Korea to 
declare nuclear programs 
 
NIKKEI (Page 2) (Full) 
February 28, 2008 
 
In a press conference at the U.S. ambassador's official residence 
yesterday, U.S. Secretary of State Condoleezza Rice said that the 
U.S. would not set any new deadline for North Korea to declare its 
all nuclear programs. The deadline had been set for late last year, 
but Rice said: "The delay is not a problem." She indicated that the 
U.S. will continue to call on Pyongyang to fully explain its nuclear 
development programs using plutonium and highly enriched uranium, as 
well as its nuclear nonproliferation measures involving nuclear 
technology and materials, without setting a deadline. 
 
11) Rice urges N. Korea again for "complete declaration" of nuclear 
programs 
 
MAINICHI (Page 3) (Abridged) 
February 28, 2008 
 
 
TOKYO 00000522  008 OF 015 
 
 
Visiting U.S. Secretary of State Rice met Japanese and foreign 
reporters at the U.S. ambassador's official residence in Tokyo 
yesterday afternoon. 
 
On the issue of North Korea's nuclear programs, Rice said she has 
left Assistant Secretary of State Hill in Beijing to "move the 
six-party talks forward." 
 
In the press interview, Rice suggested the need for North Korea to 
declare its nuclear programs in order to "make the next step 
productive." With this, she urged North Korea to submit a complete 
declaration of its nuclear programs in order to build a relationship 
of mutual trust. She indicated that North Korea's declaration of its 
nuclear programs should include its storage of plutonium and other 
nuclear materials, highly enriched uranium (HEU) program, and 
nuclear technology and material proliferation. 
 
Rice indicated that the issue of Japanese nationals abducted to 
North Korea is an issue relating to human rights. She also indicated 
that North Korea will have to implement its second-stage action, 
including declaring its nuclear programs, in order for the United 
States to delist North Korea as a terror sponsor. 
 
12) Fukuda, Olmert issue joint statement committing to cooperation 
toward Middle East peace 
 
YOMIURI (Page 2) (Full) 
February 28, 2008 
 
Prime Minister Fukuda met with visiting Israeli Prime Minister 
Olmert at the Prime Minister's Office yesterday. The two leaders 
later issued a joint statement in which Japan committed to 
contributing to resolving the Israeli-Palestinian conflict and 
moving the Middle East peace process forward. This is the first 
Israeli prime ministerial visit to Japan in 11 years. The two 
countries exchanged political documents for the first time. 
 
The statement notes: (1) Japan, Israel, Jordan, and the Palestinian 
autonomous government should cooperate in turning into a concrete 
arrangement the "Corridor for Peace and prosperity" initiative, a 
project Japan has proposed to develop the Jordan Valley; and (2) 
Japan and Israel should establish a taskforce to strengthen their 
economic relations. The statement emphasizes a willingness to 
activate exchanges in the political, economic, and science / 
technology areas. 
 
In the meeting, Olmert expressed his concern about Iran's nuclear 
development and North Korea's moves for nuclear proliferation in the 
Middle East region. In response, Fukuda pointed out the importance 
of nuclear nonproliferation, while adding: "North Korea's nuclear 
problem is an imminent challenge. Resolving the abduction issue is 
also essential for our nation. We are stepping up efforts to improve 
relations with North Korea, but progress has not been made as we 
expected." Prior to meeting with Fukuda, Olmert met Foreign Minister 
Koumura at a Tokyo hotel. Koumura voiced apprehension about the 
construction by Israel of houses in East Jerusalem for immigrants, 
saying: "The move is aggravating the conflict." 
 
13) U.S. military's off-base population totals 21,885; Nearly half 
live in Okinawa 
 
MAINICHI (Page 3) (Abridged) 
 
TOKYO 00000522  009 OF 015 
 
 
February 28, 2008 
 
In the wake of an Okinawa-based U.S. Marine's alleged rape of a 
local junior high school girl, the Defense Ministry yesterday 
announced the number of U.S. military personnel living outside their 
bases in Japan, as well as civilian employees and family members, as 
part of its measures to prevent similar incidents. They total 21,885 
in 15 prefectures, including Tokyo and Hokkaido. In Okinawa 
Prefecture, the U.S. military's off-base population is 10,319-nearly 
half of the total number. Including on-base population, the U.S. 
military's total population in Japan is 92,491. The U.S. military's 
off-base population in Japan accounts for a little over 20 PERCENT 
of its total population in Japan. 
 
U.S. Forces Japan provided the Japanese government with data as of 
the end of March, 2007. In the breakdown of municipalities, Kanagawa 
Prefecture's Yokosuka City has the largest number of off-base U.S. 
military residents at 3,420, followed by Okinawa Prefecture's Chatan 
Town at 2,893, Okinawa City at 2,705, Nagasaki Prefecture's Sasebo 
City at 2,008, and Aomori Prefecture's Misawa City at 1,550. 
 
14) SDF legislation project team put off 
 
YOMIURI (Page 4) (Abridged) 
February 28, 2008 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
has now decided to postpone its plan to set up a project team 
intended to study overseas missions for the Self-Defense Forces. The 
project team was initially set to launch yesterday. New Komeito 
became cautious about the plan, following the recent fatal collision 
of a Maritime Self-Defense Force Aegis destroyer with a fishing boat 
that has left the fishing boat's two crewmen missing. 
 
"We will have to discuss a general (permanent) law for the 
Self-Defense Forces' overseas missions," New Komeito Secretary 
General Kitagawa told reporters yesterday. "But," Kitagawa added, 
"we're not in such an environment to do so for now" given the 
public's growing criticism of the government over the Aegis 
accident. 
 
The idea of establishing a permanent law for the SDF's overseas 
missions is intended to prepare for a newly enacted antiterrorism 
special measures law's expiry in January next year. The ruling 
coalition is planning to present a bill to the Diet during its 
current session. 
 
The LDP held a joint meeting of its panels on Feb. 13 to enter into 
discussions on the permanent legislation for the SDF's overseas 
activities, with former LDP Vice President Taku Yamasaki presiding. 
New Komeito has also held hearings with opinion leaders since this 
January. The party was expected to set about a full-fledged study of 
the permanent legislation with the ruling coalition's project team. 
The Aegis accident seems to have dampened that momentum. 
 
15) Vice defense minister apologizes for failure to inform JCG about 
questioning of navigating officer 
 
ASAHI (Top play) (Excerpts) 
February 28, 2008 
 
Administrative Vice Defense Minister Kohei Masuda late yesterday 
 
TOKYO 00000522  010 OF 015 
 
 
held a special news conference in order to give an account of the 
Maritime Staff Office's (MSO) questioning of the navigating officer 
of the Aegis destroyer Atago on the day of the collision with the 
fishing boat Seitoku-maru. The navigating officer was told by the 
MSO to come to the MSO by helicopter for questioning. Masuda 
admitted that the way the MSO informed the Japan Coast Guard (JCG) 
of the questioning was "inappropriate." Although Masuda still 
insisted that the MSO contacted the JCG before noon, the JCG denied 
there was such contact, so Masuda told the press: "I was unable to 
confirm our side contacted the JCG." Masuda in effect confirmed 
Defense Minister Ishiba's reply made in Diet deliberations yesterday 
morning, in which Ishiba said that "it was not necessarily 
appropriate" to have the questioning without approval from the JCG. 
 
According to Masuda's explanation, on the morning of Feb. 19, when 
the collision took place, the chief of the Fourth Chief of Staff 
Office of the Yokosuka District Headquarters told the Yokosuka Coast 
Guard Department by phone: "We will have one senior officer 
disembark before entering the port in order to have him transport an 
injured person and report to our unit." But Masuda added that 
"Because I don't have a clear memory of whom our side telephoned, I 
can't confirm" whether these matters were well relayed to the 
Yokosuka Coast Guard Department." 
 
16) Prime Minister Fukuda, protective of defense minister under 
fire, also feeling the adverse effect; Budget bill, selection of new 
BOJ governor may be affected 
 
MAINICHI (Page 2) (Full) 
February 28, 2008 
 
Katsumi Kawakami 
 
Defense Minister Shigeru Ishiba now finds himself in an even tighter 
spot since he has admitted that it was "inappropriate" for him to 
question, without obtaining approval from the Japan Coast Guard 
(JCG), the navigating officer of the Maritime Self-Defense Force's 
(MSDF) Aegis destroyer Atago over the collision of the Atago and a 
fishing boat. With the opposition parties gearing up to grill the 
government over its handling of the collision, the backlash from the 
accident could affect struggles in the Diet between the ruling and 
opposition blocs over the passage of the 2008 budget bill, as well 
as the selection of a successor to the incumbent Bank of Japan (BOJ) 
governor, whose term of office is to expire shortly. Prime Minister 
Yasuo Fukuda, who has been defending Ishiba, has put himself into 
the line of critical fire, as well. 
 
A senior member of the ruling Liberal Democratic Party (LDP) Upper 
House Caucus said yesterday, "With the two fishermen still missing 
after the collision, Mr. Ishiba naturally needs to take 
responsibility for that. However, the first thing for him to do is 
to pave the way for a full accounting of the facts about the 
collision." This lawmaker indicated that Ishiba's resignation is 
unavoidable, once he certain light is thrown on the cause of the 
accident. 
 
Fukuda yesterday evening told reporters at the Prime Minister's 
Official Residence: "It is only natural for the minister in charge 
to investigate the incident on his own in order to shed light on 
what happened. I think what he did was within his responsibility." 
Fukuda defended Ishiba for questioning the Atago's navigator about 
the collision. But Fukuda added: "It would have been good if he had 
 
TOKYO 00000522  011 OF 015 
 
 
paid more careful attention and contacted the Japan Coast Guard." 
 
17) Battle over budget bill between ruling, opposition camps 
 
NIKKEI (Page 2) (Full) 
February 28, 2008 
 
The ruling and opposition parties are conducting fierce discussions 
as to setting a date for passing the fiscal 2008 budget bill through 
the House of Representatives. Although the ruling camp aims to get 
the bill passed on Feb. 29 by the Lower House, the opposition 
parties are putting up do-or-die resistance against the plan, 
seeking thorough deliberations on the collision of a Maritime 
Self-Defense Force destroyer and a fishing boat. The government and 
ruling coalition are engaging in complicated maneuvering because of 
their desire to avoid a damaging standoff with the main opposition 
Democratic Party of Japan (DPJ or Minshuto) in order to secure the 
DPJ's approval of their appointment of a new governor of the Bank of 
Japan. 
 
Ruling Liberal Democratic Party (LDP) Diet Affairs Committee 
Chairman Tadamori Oshima and his DPJ counterpart Kenji Yamaoka 
yesterday discussed the issue of setting a date for taking a vote on 
the budget bill in the House of Representatives. 
 
Yamaoka: "How about putting off your plan to next week?" 
 
Oshima: "We absolutely cannot give up on our plan of adopting the 
budget bill this week." 
 
Oshima insisted that the bill pass the Lower House this week, and 
the meeting ended in rupture. 
 
The ruling camp plans to hold concentrated deliberations on the 
collision between the Aegis ship and fishing boat on Feb. 29 and to 
pass the budget bill and a bill amending the Special Taxation 
Measures Law, which includes measures to retain the current 
provisional tax rates for road construction, through the Lower House 
on the same day. The budget bill is sent to the House of Councillors 
after the Lower House adopts it. The bill will be enacted 
automatically if the Upper House does not take a vote within 30 day 
s after it receives it. The ruling coalition is seriously concerned 
about being forced to compile a temporary budget (i.e., continuing 
resolution). 
 
Referring to the state budget and the Special Taxation Measures Law 
revision bill in a consultation yesterday between the government and 
ruling parties, LDP Secretary General Bunmei Ibuki pointed out that 
passing the bills before the end of the current fiscal year is a 
precondition for an agreement between the ruling and opposition 
camps reached thorough the good offices of the Lower House speaker 
and Upper House president that a certain conclusion should be 
reached. He said: "The Lower House speaker should express his own 
view." 
 
Some in the ruling camp think that a vote on the bill revising the 
tax law should be taken next week or later, separately from the 
budget bill. Their aim is to show a certain level of consideration 
to the opposition in order to prevent deliberations on the budget in 
the Upper House from stalling. A senor ruling coalition member said: 
"Whether the ruling and opposition camps can reach agreement is 
still a fifty-fifty chance." 
 
TOKYO 00000522  012 OF 015 
 
 
 
18) Ruling bloc's presentation of candidate for new BOJ governor to 
be delayed 
 
ASAHI (Page 4) (Excerpts) 
February 28, 2008 
 
The government has yet to present its Bank of Japan personnel plan. 
Although the ruling coalition has followed procedures with the aim 
of presenting a plan on key positions requiring Diet approval by 
mid-February, Prime Minister Yasuo Fukuda has now made a decision to 
postpone the presentation until next week. The ruling camp's careful 
attention to moves by the major opposition Democratic Party of Japan 
(DPJ or Minshuto) has been distracted by the fierce battle with the 
opposition camp over Lower House approval for the budget bill and 
the unexpected recent collision between an Aegis destroyer and a 
small fishing boat. A delay in the government's presentation of a 
"shoo-in" has rekindled the argument in the DPJ to find another 
candidate. 
 
The ruling bloc has aimed at setting the stage so that is easy for 
the DPJ to give its consent to the ruling bloc's list of new key BOJ 
officials. 
 
The confrontation between the ruling and opposition bloc affecting 
personnel affairs is something that is not envisaged even under the 
Constitution, according to LDP Secretary General Bunmei Ibuki. In 
order to avoid the Upper House's rejection of a hastily crafted 
plan, Ibuki has repeatedly advised the prime minister to wait for a 
while to present a plan. To secure sufficient time for setting the 
stage, the ruling coalition set the deadline at late February, later 
than the government's plan of mid-February. 
 
During that period, talks were held centering on LDP Diet Affairs 
Committee Chairman Tadamori Oshima and his DPJ counterpart Kenji 
Yamaoka, and an agreement was reached on new rules as a result of 
accepting the opposition camp's plan as is. The ruling bloc was 
hoping that the DPJ would later on endorse its plan to promote 
Deputy Governor Toshiro Muto, the government's favorite candidate. 
 
On Feb. 21, Ibuki and Oshima sounded Yamaoka out on Muto's promotion 
behind the scenes. But Yamaoka said: "Many DPJ members are opposed 
to Mr. Muto's promotion." This has spread the pessimistic view in 
the LDP that President Ozawa would not be able to unite the party on 
the matter of Muto's promotion. 
 
As if to add insult to injury, an Aegis destroyer collided with a 
small fishing boat on Feb. 19. 
 
The incident was followed by the opposition bloc's call for Defense 
Minister Ishiba's resignation and intensive Diet deliberations to 
uncover the truth. This has led to an intensified battle with the 
ruling bloc, which aims at Lower House approval before the end of 
February of the fiscal 2008 budget bill and budget-related bills. 
Tensions have heightened between the two camps this week over the 
presentation of BOJ executive candidates. 
 
19) Argument calling for person other than Muto reignited 
 
ASAHI (Page 4) (Abridged slightly) 
February 28, 2008 
 
 
TOKYO 00000522  013 OF 015 
 
 
About the prime minister's decision to delay the presentation of a 
candidate for the Bank of Japan governorship, a member of the major 
opposition Democratic Party of Japan said: "The prime minister might 
be searching for someone other than Mr. Muto." There has been the 
hopeful observation in the DPJ that the prime minister will make a 
decision to recommend a person other than Mr. Muto. That observation 
is gaining ground in the party. 
 
The group determined to oppose Muto's promotion has also gained 
momentum. A member of the Diet Affairs Committee, which makes a 
final decision on the party's response, categorically said: "If Mr. 
Muto is (the government's decision), we will put up do-or-die 
resistance to the decision." 
 
If the government comes up with a plan to promote Muto in the 
knowledge that it will face the DPJ's fierce resistance, chances are 
that the BOJ governorship will temporarily remain unfilled. The DPJ 
envisions that the government will be held responsible for such an 
eventuality. 
 
Some in the government and ruling coalition have also begun calling 
for someone other than Muto. Following the ruling bloc's decision to 
leave the matter to the prime minister, a government source said, "I 
wonder if promoting Mr. Muto is the best way." Former LDP Secretary 
General Hidenao Nakagawa, too, noted in a speech: "I do not think 
the prime minister will insist on promoting someone the DPJ has 
rejected." There are flexible views in the ruling camp as well. 
 
Even if the ruling bloc recommends Muto under such circumstances, 
the DPJ, regardless of its response, will not able to escape 
undamaged. For this reason, an opinion has emerged in the DPJ to 
hold behind-the-scenes talks with the prime minister to prevent the 
ruling bloc from presenting a plan to promote Muto. 
 
20) DPJ to present own bill on road funds 
 
NIKKEI (Page 2) (Full) 
February 28, 2008 
 
The Democratic Party of Japan (DPJ or Minshuto) adopted yesterday in 
a meeting of its shadow cabinet a framework for its highway 
construction policy that contains five basic principles, including 
the integration of the special account of road-related taxes into 
the general account budget and abolishing the provisional tax rates, 
including the gasoline tax. The DPJ also adopted an outline of a 
bill to reform the special-purpose tax revenue system. The reform 
bill stipulates measures for revenue sources to be provided to local 
governments, in addition to reallocation of revenues from the 
gasoline tax, as well as abolition of the provisional tax rates. 
Considering these as its counterproposals to the government's bill 
amending the Special Taxation Measures Law, which would retain for 
another ten years the current provisional tax rates, the largest 
opposition party will submit its own bill now to the House of 
Councillors. 
 
Policy Research Committee Chairman Masayuki Naoshima pointed out: 
"Since our bill is significantly different from the (bill drafted by 
the government and ruling coalition), it will be difficult to launch 
consultations on revising the government's bill." Deputy President 
Naoto Kan also took the view that the ruling camp's broad compromise 
would become a precondition for consultations on revising the bill. 
He stated: "We have no intention of remaining flexible on the matter 
 
TOKYO 00000522  014 OF 015 
 
 
by slightly changing the bill." 
 
21) Measures to combat global warming: Leaders of 16 countries to 
meet during Lake Toya G-8 
 
ASAHI (Page 1) (Excerpts) 
February 28, 2008 
 
The government will hold a meeting of leaders of 16 major greenhouse 
gas emitters in conjunction with the Lake Toya G-8 (Summit) to be 
held in July in Hokkaido. The meeting will be joined by China, 
India, South Korea and Brazil, as well as G-8 member nations. This 
will be the largest forum for major economies to directly discuss 
global warming. Participants will aim at reaching a certain level of 
common understanding on an international framework to be launched in 
2013, replacing the Kyoto Protocol. 
 
The meeting will have the participation of G-8 members, China, 
India, South Africa, South Korea, Brazil, Mexico, Australia and 
Indonesia. These countries account for 80 PERCENT  of global 
greenhouse gas emissions. The government had been making 
preparations for inviting heavy emitters, such as China and India, 
aside from G-8 nations. In the end, it has sent invitations to eight 
countries. 
 
The government is now undertaking coordination with the possibility 
of holding the envisaged meeting between July 7-9 during the G-8. 
Since the development of Africa is also a major part of the Summit 
agenda, several leading African countries will also be invited. 
Leaders of more than 20 countries will gather at the Lake Toya 
Summit, exceeding the scale of the Kyushu-Okinawa Summit in 2000. 
 
22) Foreign investment restriction to be eliminated from bill 
amending Airport Development Law; Cabinet decision to come as early 
as next week 
 
MAINICHI (Page 1) (Excerpts) 
February 28, 2008 
 
The propriety of the inclusion in a bill amending the Airport 
Development Law of a clause restricting foreign investment in 
airport operators has been a focus of attention. The government 
yesterday started undertaking coordination with the possibility of 
deleting the clause from the bill. It will reach a decision at a 
cabinet meeting as early as next week. Some government officials are 
opposing the inclusion of the clause in the bill. As such, the 
government has decided that it would be necessary to reach a 
conclusion in order to give priority to early passage of this 
budget-related bill amending the Airport Development Law. 
 
According to that bill, the ratio of ownership by foreign companies 
of airport terminal operators, such as Narita International Airport 
Corp. and Japan Airport Terminal Co., would be limited to below 
one-third on a voting-right basis. The Ministry of Land, 
Infrastructure and Transport has aimed at introducing such a 
restriction for security reasons. However, cabinet ministers, such 
as State Minister for Financial Policy Yoshimi Watanabe, have been 
opposing the proposal as going against the trend of 
internationalization. The notion of limiting foreign investment in 
airport operators has been proposed with an eye on the listing of 
Narita International Airport Corp. on the stock market in fiscal 
¶2009. The government sees that there will still be time for looking 
 
TOKYO 00000522  015 OF 015 
 
 
into the issue, even if the clause is eliminated from the bill. 
 
SCHIEFFER