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UNCLAS SECTION 01 OF 13 TOKYO 000538 
 
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 02/29/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense issues: 
4) Iwakuni mayor's formal acceptance of U.S. jet relocation from 
Atsugi is a great step forward for USFJ realignment  (Yomiuri) 
5) MSDF seaman has been missing ever since questioned about Aegis 
information leakage by investigators  (Sankei) 
 
Aegis collision incident: 
6) It was Defense Minister Ishiba's wish to question the Aegis 
captain in his office soon after the collision with a fishing boat 
(Mainichi) 
7) Defense Minister Ishiba's concurrence not obtained by MSDF brass 
to question Aegis captain about the collision with a fishing boat 
(Sankei) 
8) Ishiba repeatedly stresses that if there is evidence of a 
cover-up after the Aegis accident, he will resign as defense 
minister  (Nikkei) 
9) Ishiba tours site of the Aegis destroyer Atago's collision with a 
fishing boat  (Mainichi) 
10) The opposition camp continues to loudly clamor for Ishiba's 
resignation  (Tokyo Shimbun) 
 
China connection: 
11) Huge gap between China and Japan in explaining the likely cause 
of the recent imports of poisoned dumplings  (Nikkei) 
12) Concern rising that the flap between Japan and China over who 
poisoned the dumplings could affect the pending visit of President 
Hu  (Nikkei) 
13) China proposes that U.S., DPRK sign a joint communiqu similar 
to the one the U.S. and China signed in 1972 
 
14) Japanese-American delegation of business leaders and other 
dignitaries arrives in Japan for exchange meeting  (Mainichi) 
 
15) Foreign Minister Koumura tells UN special advisor Japan will 
cooperate with UN on aid to Burma  (Mainichi) 
 
16) Iran's ambassador to Japan hopes Tokyo will play an intermediary 
role in improving ties between Teheran and Washington  (Yomiuri) 
 
17) Koga reappointed head of the Association of Bereaved Families of 
the War Dead  (Mainichi) 
 
18) Proposed restrictions on foreign investment in airports removed 
as Prime Minister Fukuda steps in to the issue  (Mainichi) 
 
19) Government, ruling parties determined to get budget bill as well 
bill amending Special Tax Measures Law through Lower House today 
(Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Fleet chief of staff questioned destroyer crew without coast guard's 
approval 
 
TOKYO 00000538  002 OF 013 
 
 
 
Mainichi: 
Ishiba conducts second questioning of navigating officer of Atago 
 
Yomiuri: 
Toshiba, IHI to team up on nuclear power plant engineering business 
 
Nikkei: 
Teijin, Mitsubishi Chemical to mass-produce carbon fiber auto parts 
starting in 2010 
 
Sankei: 
China indicates pesticide got mixed into dumplings in Japan, 
probably aiming to seal off truth 
 
Tokyo Shimbun: 
China propose putting assertions by U.S., North Korea on Pyongyang's 
declaration of nuclear programs in writing, using 1972 U.S.-North 
Korea joint statement as reference 
 
Akahata: 
Japanese Communist Party Chairman Shii stresses need for thorough 
probe into Aegis collision 
 
2) EDITORIALS 
 
Asahi: 
(1) Confusion of Defense Ministry: Supreme commander is prime 
minister 
(2) DPJ's plan on road taxes: It is LDP's turn to take action 
 
Mainichi: 
(1) Defense Ministry in confusion: Prime Minister's Office must not 
leave situation unattended 
(2) Powell problem: Japanese baseball should regain humanity and 
justice 
 
Yomiuri: 
(1) Textbook screening: Seek harmony between free discussion and 
transparency 
(2) Hurriedly work out measures to protect cultural assets 
 
Nikkei: 
(1) Postponement of restrictions on foreign ownership of airports 
quite natural 
(2) US recession fears growing 
 
Sankei: 
(1) Vague settlement of poisoned Chinese dumplings scare 
unacceptable 
(2) Teachers' illegal strikes: Education board must give thorough 
instruction 
 
Tokyo Shimbun: 
(1) Prime minister must take action to resolve road-tax dispute in 
Diet 
(2) Thoroughly investigate Chinese dumplings scandal 
 
Akahata: 
(1) Reform guideline: Public hospitals cannot be protected only with 
efficiency 
 
 
TOKYO 00000538  003 OF 013 
 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 28 
 
NIKKEI (Page 2) (Full) 
February 29, 2008 
 
08:34 
Met with Chief Cabinet Secretary Machimura and Deputy Chief Cabinet 
Secretary Futahashi at Kantei. Machimura remained. 
 
SIPDIS 
 
09:33 
Met with Deputy Chief Cabinet Secretary Ono. Afterwards met with 
State Minister in Charge of Economic and Fiscal Policy Ota. 
 
10:01 
Met with State Minister in Charge of Gender Equality Kamikawa. After 
her, met with Administrative Vice Foreign Minister Yabunaka, and 
Natural Resources and Energy Agency Director-General Mochizuki. 
After them, met with former LDP Secretary General Nakagawa. 
 
11:00 
Met with Vice Indonesian President Kalla. Afterwards, met with 
Ambassador to Russia Saito and MOFA European Affairs Bureau 
Director-General Harada. 
 
12:33 
Met with Futahashi, joined by Machimura. 
 
13:00 
Attended a Lower House Budget Committee session. 
 
18:03 
Attended a session of the Council on Economic and Fiscal Policy held 
at Kantei. Afterwards, met with the LDP Financial Reform Research 
Council's Advisor Tanigaki. 
 
19:05 
Met with Deputy Foreign Minister Sasae. 
 
19:38 
Arrived at Kantei residence. 
 
DEFENSE & SECURITY 
 
4) USFJ realignment to make headway 
 
YOMIURI (Page 4) (Full) 
February 29, 2008 
 
Yoshihiko Fukuda-the newly elected mayor of Iwakuni City in 
Yamaguchi Prefecture-announced yesterday that he will accept the 
government-proposed relocation of U.S. carrier-borne fighter jets to 
the U.S. Marine Corps' Iwakuni base. The Japanese and U.S. 
governments will now move ahead with plans in the process of 
realigning U.S. forces in Japan. Meanwhile, the government will 
unfreeze its base-related subsidization of Iwakuni City and push 
ahead with the transferal of U.S. jets to Iwakuni while respecting 
Iwakuni City's requests for public security and other measures. The 
government also wants other anti-realignment municipalities to 
change course. 
 
 
TOKYO 00000538  004 OF 013 
 
 
Mayor Fukuda addressed his city's municipal assembly yesterday at 
the opening of its regular session yesterday, during which he 
clarified his intention to accept the planned relocation of U.S. 
carrier-borne aircraft. "The government has shown consideration to a 
certain extent for our request to ease Iwakuni City's burden," 
Fukuda stated. "Basically," he added, "I think we should 
cooperate." 
 
The U.S. Navy plans to move 59 planes, including carrier-borne 
fighter jets, and about 1,900 persons, including U.S. military 
personnel, from its Atsugi base in Kanagawa Prefecture to Iwakuni by 
¶2014. The U.S. Marine Corps will also relocate 12 planes, including 
air tankers, and about 300 persons, including military personnel, 
from its Futenma base in Okinawa Prefecture to Iwakuni. As a result, 
Iwakuni will be the largest of all U.S. airbases in the Far East. 
 
In return for hosting Atsugi-based U.S. carrier-borne aircraft, 
Iwakuni City will ask the government to resume its frozen 
subsidization of the city for its construction of a new hall (3.5 
billion yen for the current fiscal year). In addition, the city will 
ask the government to grant realignment incentive subsidies (13.4 
billion yen in total according to the city's estimate) within the 
current fiscal year. The city will also ask the government to take 
measures for aircraft noise and public security. 
 
The government will basically accept these requests from Iwakuni. In 
particular, the government will make its utmost efforts to prevent 
incidents since a large number of U.S. military personnel will live 
in the city. 
 
5) Quizzed MSDF sailor missing 
 
SANKEI (Page 31) (Full) 
February 29, 2008 
 
A 34-year-old lieutenant commander belonging to the shore patrol 
unit of the Maritime Self-Defense Force's Maizuru District 
Headquarters has been missing, sources revealed yesterday. The MSDF 
officer is suspected of having taken out confidential data about an 
Aegis destroyer, according to the sources. In this info leak 
incident, the officer was questioned by MSDF investigative 
authorities. 
 
According to informed sources, MSDF investigative authorities found 
that MSDF data files had leaked on the Internet through the 
file-swapping software Winny. As a result of MSDF investigations, 
the MSDF discovered that the data files had leaked from a personal 
computer used by the lieutenant commander at his home. The MSDF 
investigative authorities looked closely into his several personal 
computers at his home and discovered an Aegis destroyer's data that 
falls under the category of "special defense secret" (tokubetsu boei 
himitsu). 
 
The MSDF lieutenant commander was questioned by MSDF investigators 
on Feb. 23. The lieutenant commander fled near JR Kyoto Station on 
his way back to the base along with his officer, according to the 
sources. His whereabouts is still unknown, the sources said. 
 
The MSDF is currently investigating a series of Aegis information 
leaks with its in-house questioning of several thousand persons. In 
March, the MSDF will punish all MSDF personnel whose infractions are 
clear. 
 
TOKYO 00000538  005 OF 013 
 
 
 
The Aegis data, which was illegally taken out by the lieutenant 
commander and saved in his home computer, is believed to be the same 
as the data that was confirmed to have leaked in the series of 
information leaks, in which another MSDF lieutenant commander was 
arrested. The MSDF will scrutinize the data taken out by the 
lieutenant commander and will also track its path. At the same time, 
the MSDF is searching for his whereabouts. 
 
6) Ishiba questioned chief navigator at his office on his own 
desire 
 
MAINICHI (Top play) (Excerpts) 
February 29, 2008 
 
In the wake of the recent collision between the Maritime 
Self-Defense Force Aegis destroyer Atago and the fishing boat 
Seitoku Maru, Defense Minister Shigeru Ishiba and other officials 
questioned the Atago's chief navigator without obtaining approval 
from the Japan Coast Guard (JCG). Regarding this matter, Ishiba 
revealed yesterday before the House of Councillors Foreign and 
Defense Affairs Committee that he had questioned the chief navigator 
himself at his office based on his own decision. Ishiba said, "I 
should have announced that I had questioned (the chief navigator) 
myself," reversing his earlier statement that he had not contacted 
any crew members. Now that it has become clear that Ishiba had 
quizzed the navigator himself without a prior notice to the JCG, 
which has the right to investigate, the defense minister is likely 
to come under greater pressure to take responsibility. 
 
On Feb. 25, Ishiba said before the House of Representatives Budget 
Committee: "For the sake of fairness of investigations, I have not 
contacted any crew members." But in the Upper House Foreign and 
Defense Affairs Committee meeting yesterday, Ishiba withdrew that 
statement, saying: 
 
"It meant that (although I had questioned the chief navigator on the 
day the collision occurred), I was not in touch with him when I made 
that statement. I had no intention of covering that up. Although I 
did not order (the Maritime Staff Office) to call the navigator to 
the ministry, I do not think calling him to the ministry was 
inappropriate, either. I just wanted to be informed of it 
beforehand." 
 
Ishiba admitted, however, that knowing that the navigator was being 
questioned by the MSO, he had also decided to question the navigator 
himself at his office. Administrative Vice-Defense Minister Kohei 
Masuda also explained in a press conference yesterday: "(The 
minister) decided that he, too, needed to grasp the situation." 
 
7) Questioning conducted by MSDF chief of staff's decision without 
defense minister's approval 
 
SANKEI (Page 1) (Full) 
February 29, 2008 
 
It became clear yesterday that in the wake of the recent collision 
between the Maritime Self-Defense Force Aegis destroyer Atago and 
the fishing boat Seitoku Maru in waters off Cape Nojima in Chiba 
Prefecture, the Maritime Staff Office (MSO) had called the Atago's 
chief navigator to the Ministry of Defense (MOD) to question him 
without Defense Minister Shigeru Ishiba's approval. It was also 
 
TOKYO 00000538  006 OF 013 
 
 
found that the Fleet Escort Force Command chief of staff had boarded 
the Atago four and a half hours after the collision without sending 
a prior notice to the Japan Coast Guard (JCG). 
 
Defense Minister Ishiba explained before the House of Councillors 
Foreign and Defense Affairs Committee that the chief navigator had 
been called to MOD on Feb. 19, the day the accident occurred, at the 
MSDF chief of staff's decision and that he was informed of it before 
noon that day after the senior MSO officers finished questioning the 
chief navigator. Ishiba then questioned the chief navigator himself 
at his office. About the questioning at his office, Ishiba said, "I 
thought it was not good to conduct questioning only by a limited 
number of people, so I did it at my own decision." 
 
Meanwhile, Administrative Vice-Defense Minister Kohei Masuda 
explained yesterday that a fax message had been sent to the JCG 
shortly before 4:00 p.m. on Feb. 19, reversing his earlier statement 
denying the existence of any records on the questioning of the chief 
navigator at the minister's office. Masuda also said that he "still 
does not know" about what the MSO officers learned from the chief 
navigator. 
 
Further, the Fleet Escort Force Command chief of staff arrived at 
the Atago by helicopter shortly after 8:30 a.m. on Feb. 19, four and 
a half hours after the destroyer collided with the Seitoku Maru. It 
also became clear that he quizzed crew members about the accident 
for about one hour. Masuda also said: "The chief of staff boarded 
(the Atago) by the order of the Fleet Escort Force commander, but he 
did not obtain the approval of the JCG." Masuda, though, stopped 
short of mentioning what was discussed on the Atago. 
 
In calling the chief navigator to the ministry, MOD told the JCG 
that it would use the helicopter to transport "injured persons," but 
in fact, the navigator was transported to the ministry by different 
helicopter. The helicopter carrying the chief navigator departed 
form the Atago at 9:10 a.m. and arrived at MOD at 9:54. 
 
8) Defense minister again emphasizes, "I'll resign if cover-ups 
found" over Aegis ship collision 
 
NIKKEI (Page 2) (Excerpts) 
February 29, 2008 
 
Defense Minister Shigeru Ishiba yesterday emphasized again at a 
session of the Upper House Committee on Foreign Affairs and Defense 
that he would resign if cover-ups or information manipulation by the 
Ministry of Defense (MOD) and the Self-Defense Forces (SDF) over the 
recent collision of the Maritime Self-Defense Force's (MSDF) Aegis 
destroyer Atago and the fishing boat Seitoku-maru were found. MOD's 
inappropriate acts have been found successively over the collision. 
For instance, MOD was not cooperative toward the Japan Coast Guard 
(JCG), which is investigating the incident. MDO misperceived facts, 
and it was slow to report on and publicize the incident. Opposition 
parties are gaining steam to drive the defense minister into 
resignation from the post. 
 
On top of them, another problem involving MOD was found yesterday. 
It was that on the morning of Feb. 19, when the incident occurred, 
the Maritime Staff Office (MSO) staff, without obtaining permission 
from the defense minister, called the navigating officer of the 
Atago to the office and questioned him. In this regard, Ishiba 
noted, "(The MSO staff) should have obtained my approval 
 
TOKYO 00000538  007 OF 013 
 
 
beforehand," but he insisted that it was not wrong for the MSO to 
hold the questioning. 
 
When asked about why he initially did not reveal the fact that he 
had questioned the navigating officer at noon of Feb. 19, Ishiba 
explained: "I should have revealed it early on. I had no intention 
at all of hiding it." 
 
Asked about remarks made by the navigating officer during the 
questioning, Ishiba stated, "Facts I heard from him were all put 
down." Following Ishiba, Administrative Vice Defense Minister Kohei 
Masuda backed down his remarks made at a press briefing on Feb. 27, 
in which he said, "Neither recorder nor a minute existed," and he 
modified those remarks. 
 
9) Ishiba inspects collision site 
 
MAINICHI (Page 1) (Full) 
February 29, 2008 
 
Defense Minister Shigeru Ishiba yesterday inspected for the first 
time waters off Cape Nojima in Chiba Prefecture where the MSDF Aegis 
destroyer Atago collided with the fishing boat Seitoku Maru (on Feb. 
19). He headed for the collision site by SDF helicopter and boarded 
the destroyer Akebono, which was searching for two missing 
fishermen. The defense minister also took a firsthand look at the 
accident prevention setup using radar and the search operation. 
 
After the inspection, Ishiba said to the press: "An accident cannot 
occur under normal circumstances. I felt that the system is designed 
to catch any mistakes." He thus pointed to the possibility that the 
Agato made some mistakes. As seen in the fact that the Atago was in 
autopilot mode until one minute before the collision, it has become 
clear that the destroyer had problems in avoiding the fishing boat. 
Ishiba's inspection is aimed at ensuring that other destroyers have 
appropriate systems to prevent accidents. 
 
10) I Net tightening around Ishiba to force him to resign: Fierce 
criticism of blunders coming from the opposition camp one after the 
other (Tokyo) 
 
TOKYO SHIMBUN (Page 2) (Excerpt) 
February 29, 2008 
 
Views in the ruling and opposition camps questioning the 
responsibility of Defense Minister Shigeru Ishiba in connection with 
the accidental collision of the Aegis destroyer Atago and a fishing 
boat continued to harden yesterday. 
 
A Liberal Democratic Party (LDP) lawmaker with experience as one of 
the party's three top executives pointed out: "At the stage when the 
results of the investigation into the cause of the accident and the 
like are complete, Mr. Ishiba will likely then step down." A 
mid-level lawmaker also said, "It is not inconceivable that he would 
resign when measures to prevent a recurrence are set, and there is a 
clear understanding of the cause of the accident." 
 
FOREIGN RELATIONS 
 
11) China denies contamination occurred in China in poisoned 
dumpling scandal, upsetting NPA 
 
 
TOKYO 00000538  008 OF 013 
 
 
NIKKEI (Page 3) (Lead Paragraph) 
February 29, 2008 
 
There is a wide gap in views between Japanese and Chinese 
investigators in the probe of the recent food-poisoning outbreak 
involving Chinese-made frozen dumplings. Japan and China agreed to 
conduct an investigation in close cooperation only a few days ago, 
but both sides were at odds over the exchange of their data 
yesterday. The National Police Agency (NPA) intends to call on China 
for close cooperation in uncovering the cause of the incident, but 
the joint investigation has already been disrupted at its very 
beginning. 
 
12) China's denial of being contamination source in tainted 
dumplings scare sparking conflict between Japan, China; May affect 
President Hu's planned Japan visit 
 
NIKKEI (Page 3) (Full) 
February 29, 2008 
 
The Chinese Public Security Ministry yesterday denied the 
possibility that methamidophos - the organic phosphorus pesticide 
found in Chinese-made frozen dumplings involved in poisoning 
incidents in Japan - had gotten mixed into the products in China. 
This announcement is sparking conflict between Japan and China. If 
no progress is made in the investigation, national sentiment will be 
inevitably undermined. This conflict may also negatively affect the 
planned visit to Japan by President Hu Jintao in April, betraying 
the government's expectations. 
 
In a press conference yesterday, Chinese Press Officer Liu Chien 
Chao urged Japan to reaffirm its material evidence, following the 
announcement by the Public Security Ministry. But Liu added: "I hope 
this issue will not affect Japan-China relations." Japanese 
officials have expressed a sense of distrust in China. Chief Cabinet 
Secretary Nobutaka Machimura said in a press conference yesterday: 
 
SIPDIS 
"China should also make efforts." 
 
The leadership of the Hu administration, which places emphasis on 
relations with Japan, initially tried to settle the issue at an 
early date. But a host of harsh views against Japan have been posted 
on the Internet. If the Chinese government indicated a stance that 
could be taken as making a concession to Japan, it might be under 
heavy fire. In response to the announcement yesterday, the number of 
comments sharply criticizing Japan has been significantly increasing 
on the Internet, such as: "Japan put the guilt on innocent us. We 
urge Japan to offer an apology." 
 
If the cause is not uncovered, imports of Chinese food may further 
decrease. In the aftermath of the Chinese dumpling scare, leading 
Japanese frozen food manufacturers have seen their sales of products 
for households sharply dropping. An employee of Nippon Suisan Kaisha 
Inc. said: "Our sales have fallen by about 30 PERCENT  below the 
same period a year ago." Japan Tobacco Inc. (JT) also announced that 
it would cancel its plan of selling starting on March 1 by its 
subsidiary JT Foods Co. of two kinds of frozen products, including 
one made by Tianyang Food Processing in Hebei Province, which 
produced tainted dumplings. 
 
Prime Minister Yasuo Fukuda said last night regarding the Chinese 
government's announcement: "(The Chinese government) said that it 
would like to thoroughly conduct investigation in cooperation with 
 
TOKYO 00000538  009 OF 013 
 
 
Japan. The announcement is very positive." He seems to be aiming to 
calm down the situation. 
 
Fukuda must anticipate that the planned Hu's visit to Japan will 
provide a good opportunity to boost public support of his 
administration. But the dumpling scandal and no progress in the gas 
field development standoff are disappointing his expectation. 
 
13) China suggests putting down both assertions of U.S., DPRK in 
nuclear declaration document with 1972 U.S-China communiqu as a 
reference 
 
TOKYO SHIMBUN (Top play) (Full) 
February 29, 2008 
 
Yasunobu Kiuchi, Beijing 
 
It was learned yesterday that the host nation China of the six-party 
talks on the North Korean nuclear issue had suggested to the United 
States that both assertions of the U.S. and North Korea be put down 
in a nuclear declaration report, which North Korea is supposed to 
present but which has been pending to date, with the so-called 
"Shanghai Communiqu," a statement issued when U.S. President Nixon 
visited China in February 1972, as a reference. This was revealed by 
a couple of sources familiar with the six-party talks. 
 
By giving consideration to North Korea's denial of nuclear 
development based on enriched uranium and of the proliferation of 
nuclear arms to Syria, China aims to make a breakthrough in the 
stalled six-party talks. Aside from this proposal, the U.S. 
reportedly has asked the North Koreans to shed light on its uranium 
enrichment programs as well as the question of the proliferation of 
nuclear arms separately from the initially-required submission of a 
declaration of nuclear programs by North Korea. Coordination is 
actively underway among the countries concerned over the nuclear 
declaration issue. 
 
The U.S. and some other countries have demanded that North Korea 
make clear its uranium enrichment programs as well as the 
proliferation of nuclear weapons in connection with a complete 
declaration of North Korea's all nuclear programs in accordance with 
the six-party agreement. North Korea, however, has denied any 
nuclear suspicions; as a result, the six-party talks have hit a 
snag. 
 
According to a source involved in the six-party talks, China's 
proposal is that America's views about uranium-enrichment programs 
be also put down in the North's declaration of its nuclear programs, 
including the state of its plutonium-based nuclear development, and 
that based on the declaration, the six-party talks resolve the 
nuclear issue. 
 
Using the Shanghai Communiqu, which ended the hostile relationship 
between the U.S. and China, as a reference, China came up with the 
proposal. The communiqu specified the perception both the U.S. and 
China agreed on after explaining their respective assertions in a 
clear-cut manner. 
 
On Feb. 19, U.S. Assistant Secretary of State Christopher Hill met 
with his North Korean counterpart, Vice Foreign Minister Kim Gye 
Gwan in Beijing and after the session, Hill said: "We exchanged 
views on the (breakthrough) proposal shown by China." 
 
TOKYO 00000538  010 OF 013 
 
 
 
According to a source connected with the six-party talks, however, 
the U.S. has not given the nod yet to China's proposal and has 
indicated that some coordination will be necessary. 
 
14) Japanese-American leaders to visit Japan tomorrow for Japan-U.S. 
exchanges program 
 
MAINICHI (Page 5) (Full) 
February 29, 2008 
 
A full-scale discussion will begin tomorrow on an initiative to 
strengthen exchanges between Japan and the United States, a program 
aimed at developing human resources, who would form the foundation 
of the Japan-U.S. alliance. The program was agreed in a summit 
meeting last fall between the leaders of the two countries. A total 
of 14 Japanese-American leaders will arrive in Tokyo tomorrow. They 
will pay their respects to Japanese political and business leaders, 
including House of Representatives Speaker Yohei Kono, to deepen 
interpersonal exchanges. 
 
The initiative focuses on 1) the exchanges of experts, 2) grassroots 
exchanges, and 3) the teaching of Japanese language. 
 
The 14 Japanese-American leaders, who are men and women in their 
thirties to fifties, are lawyers, university professors, and 
business managers. 
 
15) Foreign Minister Koumura tells UN special advisor Japan will 
cooperate with UN on aid to Burma 
 
MAINICHI (Page 5) (Full) 
February 29, 2008 
 
Foreign Minister Masahiko Koumura met yesterday with Ibrahim 
Gambari, the UN secretary general's special advisor in charge of 
Burma (Myanmar) issues. In the meeting, Komura told Gambari that 
Japan would help promote the United Nation's "national economy 
forum" concept, which is aimed to support Burma's effort for 
amelioration of poverty and democratization. In the wake of the 
incident involving Japanese journalist Kenji Nagai, who was killed 
while gathering information in Burma, the government has suspended 
part of its official development assistance to that country, but it 
has now judged that it is possible to offer aid to Burma through the 
United Nations. 
 
16) New Iranian ambassador expects Japan to act as intermediary 
between Iran, U.S. 
 
YOMIURI (Page 2) (Full) 
February 29, 2008 
 
New Iranian Ambassador to Japan Abbas Araghchi yesterday held a news 
conference in his country's embassy in Tokyo. He referred to 
relations with the United States having been broken off since 1980, 
and he asked Japan to act as an intermediary between the U.S. and 
Iran so as to bring about a rapprochement. He said, "We hope to see 
the Japanese government give advice to the United States to adopt a 
wiser policy (toward Iran)." 
 
Turning to relations between Japan and Iran, Araghchi stressed that 
"the relations between the two countries continue to be in good 
 
TOKYO 00000538  011 OF 013 
 
 
shape, despite charges from the U.S. and European countries against 
Iran" on the nuclear issue. Noting, "The Japanese (government) is 
more familiar with the realities facing the Middle East and Iran's 
role in the region than the U.S. (government)," Araghchi pointed out 
that Japan was most qualified to urge the U.S. to shift its hostile 
policy toward Iran. 
 
Araghchi served as vice foreign minister in charge of such key 
issues as the nuclear weapons and Iraq since 2005 until just 
recently. He arrived at his post in early February. 
 
POLITICS 
 
17) LDP's Koga to remain Nippon Izokukai chairman 
 
MAINICHI (Page 5) (Full) 
February 29, 2008 
 
The Japan Association for the Bereaved Families of the War Dead 
(Nippon Izokukai), chaired by Makoto Koga, the ruling Liberal 
Democratic Party's Election Committee chairman, held yesterday in 
Tokyo a national convention of its directors and councilors. In the 
convention, the association approved of the re-appointment of 
Chairman Koga, Vice Chairman Hidehisa Otsuji, chairman of the LDP 
caucus in the House of Councillors, and another vice chairman. Their 
term in office is two years. Koga, who assumed the chairmanship in 
2002, will be serving in his fourth term. The organization confirmed 
that it would continue holding study sessions on the Yasukuni Shrine 
issue, which were started last May. 
 
ECONOMY 
 
18) Clause restricting foreign investment in airport operators to be 
deleted: Prime minister takes action to prevent discord in cabinet 
by postponing decision-making; MLIT minister's resistance contained 
 
MAINICHI (Page 2) (Excerpts) 
February 29, 2008 
 
Prospects are now good that the issue of restricting foreign 
investment in airport-related companies will likely be settled with 
the deletion of a foreign investment restriction clause from a bill 
amending the Airport Development Law. Prime Minister Yasuo Fukuda 
yesterday evening revealed his intention to reach a conclusion at 
the end of the year on how such investment should be limited with 
the security issue as the Ministry of Land, Infrastructure and 
Transport (MLIT) insists in mind. He has avoided discord from 
flaring up again in the cabinet by postponing decision-making to the 
end of the year. He seems to have calculated that if the issue were 
to become prolonged, his leadership could be questioned, 
particularly with a mountain of other thorny issues unsettled, such 
as Defense Minister Ishiba's responsibility over the Aegis 
destroyer's collision accident and the appointment of a new Bank of 
Japan governor. 
 
The prime minister from the start was cautious about the idea of 
limiting foreign investment in airport companies. He also played up 
a policy of promoting foreign investment in Japan at the Davos 
Conference in January. When former Liberal Democratic Party (LDP) 
Secretary General Hidenao Nakagawa on Feb. 5 expressed his 
 
SIPDIS 
opposition to limiting foreign investment, Fukuda supported his 
statement. 
 
TOKYO 00000538  012 OF 013 
 
 
 
Since MLIT Minister Tetsuzo Fuyushiba is stuck with the issue, the 
prime minister has ostensibly taken the stance of watching the 
coordination of views of government officials led by Chief Cabinet 
Secretary Machimura. However, when a compromise plan to exempt 
 
SIPDIS 
already listed Japan Airport Terminal Co. from the foreign 
investment restriction was about to be adopted, Fukuda rejected the 
plan, saying, "The proposal is incompatible with my Davos 
statement." 
 
19) Government, ruling parties determined to get budget bill as well 
bill amending Special Tax Measures Law through Lower House today 
 
NIKKEI (Page 2) (Excerpts) 
February 29, 2008 
 
The government and the ruling parties intend to get the fiscal 2008 
budget bill and the bill amending the Special Tax Measures Law, 
including the maintaining of the provisional gas tax rate for 
special-purpose road construction revenues, through the Lower House 
today. Tension is growing in the Diet with the opposition camp 
indicating a stance of opposing the appointments of a new Bank of 
Japan (BOJ) governor and deputy governor by the Diet slated for next 
week. 
 
BOJ personnel appointments would be affected, if ruling camp force 
budget bill through Lower House, says ruling camp 
 
Referring to the fiscal 2008 budget bill, Prime Minister Yasuo 
Fukuda told reporters, "It is time for the Lower House to end 
deliberations." Liberal Democratic Party (LDP) Secretary General 
Bunmei Ibuki during a meeting of LDP members said, "The Upper House 
will become a main venue of deliberations on the budget bill 
starting on March 1." The Lower House Budget Committee, and the 
Financial Affairs Committee, which is deliberating on the bill 
amending the Special Tax Measures Law, decided by virtue of 
chairman's office at their directors meeting on Feb. 28,  to hold a 
winding-up question-and-answer session and a roll call. The Lower 
House General Affairs Committee has also prepared for a roll call. 
 
The opposition camp intends to oppose putting the budget bill to a 
vote, insisting that full deliberations have yet to take place. In 
the Democratic Party of Japan (DPJ or Minshuto), President Ichiro 
Ozawa, Deputy Presidents Azuma Koshiishi and Naoto Kan and Secretary 
General Yukio Hatoyama at party headquarters conferred on the issue. 
Participants confirmed that in the event of the ruling parties 
forcing the budget bill through the Lower House, they would boycott 
budget deliberations in the Upper House starting next week. The DPJ 
will also look into the possibility of rejecting a roll call on the 
bill amending the Special Tax Measures Law, abandoning the mediation 
proposal made by the Lower House speaker and the Upper House 
president that some sort of conclusion should be reached before the 
end of the year. 
 
If the ruling camp railroads the budget bill through the Lower 
House, it would also affect Diet approval of the selection of a new 
governor and a new vice governor of BOJ with Koshiishi telling 
reporters, "If they railroads the bill, it would be only natural 
that it would affect the selection of a BOJ governor." With the 
possibility of the appointment of a new BOJ governor missing the 
March 19 deadline, when the incumbent rotates out, in mind, he said, 
"If the BOJ governor's post becomes vacant in result, the government 
 
TOKYO 00000538  013 OF 013 
 
 
would be accountable for it." 
 
SCHIEFFER