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UNCLAS SECTION 01 OF 11 TOKYO 000754 
 
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 03/20/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Government in monthly report sees the economy at a crossroads, 
with consumption, investment, and production all flat  (Asahi) 
 
Bank of Japan debacle: 
5) For the first time in postwar period, Bank of Japan will not have 
a governor at the helm  (Mainichi) 
6) Fukuda administration has run out of names to submit to fill BOJ 
governorship, and deputy governor will act as acting chief for a 
while  (Nikkei) 
7) Business leaders blast, overseas press ridicules political 
parties for allowing a vacancy in the top central banker's post 
(Nikkei) 
8) Democratic Party of Japan Secretary General Hatoyama to punish 
lone party member who voted with ruling party in favor of its BOJ 
governor nominee  (Mainichi) 
9) With "April crisis" looming and DPJ tougher than ever in stance, 
the climax for Prime Minister Fukuda will be the fight in the Diet 
with opposition on road taxes  (Nikkei) 
10) Fukuda ready to consider possibility of transferring 
road-related tax revenues to the general coffers  (Yomiuri) 
 
Iraq war five years later: 
11) Need to verify the legitimacy of Japan having sent SDF troops to 
assist Iraq after the war  (Asahi) 
12) With the withdrawal of the GSDF from Samawah, Japan no longer 
has a visible presence in Iraq  (Mainichi) 
 
Defense issues: 
13) Opposition camp in their SOFA revision want to require USFJ to 
restore returned bases to their original state environmentally 
(Mainichi) 
14) At least 60 Defense Ministry officials to be punished for series 
of incidents including mishandling the Aegis collision with a 
fishing boat  (Mainichi) 
15) Defense Minister Ishiba vulnerable to criticism for handling of 
Aegis collision fallout, with inconsistent explanations and 
investigation bogged down  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi and Nikkei: 
Monthly economic report describes Japanese economy as "taking pause" 
with consumption, capital investment, production remaining flat 
 
Mainichi: 
BOJ governor falls vacant for first time in postwar history; Deputy 
Governor Shirakawa to serve as acting governor 
 
Yomiuri: 
Prime minister to study placing road-use revenues into general 
account to hold talks with DPJ 
 
Sankei: 
77-year-old man tells investigators that he shot then National 
 
TOKYO 00000754  002 OF 011 
 
 
Police Agency chief Kunimatsu in 1995 
 
Tokyo Shimbun: 
Yokohama District Court orders prefectural government to return 1.9 
billion yen in corporate tax to Isuzu 
 
Akahata: 
Treatment of part-time workers needs to be improved 
 
2) EDITORIALS 
 
Asahi: 
(1) Political turmoil requires Prime Minister Fukuda's leadership 
(2) Life imprisonment handed down over Akita murder case 
 
Mainichi: 
(1) Politicians are to blame for unfilled BOJ governorship 
(2) Akita double murder case must be examined closely 
 
Yomiuri: 
(1) Vacant BOJ post must be filled quickly 
(2) FRB lowers interest rates to avert financial crisis 
 
Nikkei: 
(1) Vacant BOJ post points to dysfunctional Japanese politics 
(2) U.S. economy relies on interest rate cuts 
 
Sankei: 
(1) Top BOJ post unfilled: Japan might collapse 
 
Tokyo Shimbun: 
(1) BOJ appointment: Golden parachuting must be reviewed 
(2) Hatakeyama gets life imprisonment for killing two children 
 
Akahata: 
(1) Government's selection of nominees for top BOJ post has 
problems 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 19 
 
NIKKEI (Page 2) (Full) 
March 20, 2008 
 
09:59 
Met at Kantei with Cabinet Office Senor Vice Minister Yamamoto, 
Parliamentary Secretary Toida, and deputy chief cabinet secretaries 
Ono, Iwaki, and Futahashi. 
 
10:30 
Met with Internal Affairs and Communications Minister Masuda. 
 
11:10 
Met with Education Ministry official Hayashi, followed by Lower 
House Anti-Terrorism Special Committee Chairman Fukaya. Me 
afterwards with LDP policy chief Tanigaki. 
 
12:32 
Attended Lower House plenary session. 
 
14:09 
 
TOKYO 00000754  003 OF 011 
 
 
Met at Kantei with Chief Cabinet Secretary Machimura. Met later with 
Cabinet Office Vice Minister Uchida and Quality-of-Life Bureau chief 
Nishi. 
 
15:08 
Met Machimura. Followed by LDP Research Committee on Consumer Issues 
Chairman Noda and Managing Executive Gotoda. 
 
16:30 
Cabinet Intelligence Director Mitani. Later, met LDP Policy Research 
Council Chairman Tanigai and New Komeito Research Council Chairman 
Saito, with Machimura. 
 
17: 40 
Attended a meeting of the cabinet ministers involved in producing 
monthly economic reports. 
 
18:16 
Met BOJ Governor Fukui. Followed by Internal Affairs Minister 
Masuda. 
 
19: 29 
Met with New Komeito President Ota, Lower House member Taro Nakayama 
and others at a Japanese restaurant in the Hotel Okura. 
 
20:53 
Met Finance Minister Nukaga, Policy Research Council Chairman 
Tanigaki, former Secretary General Takebe, Lower House members 
Eishiro Eto and Takeshi Noda, and others at a Chinese restaurant in 
the Grand Prince Hotel. 
 
21:39 
Returned to his official residence. 
 
4) Monthly economic report: Economy judged to be at a pause, with 
consumption, capital investment, and production all flat 
 
ASAHI (Top play) (Excerpts) 
March 20, 2008 
 
The government yesterday held a meeting of cabinet ministers 
concerned with the monthly economic report and approved a March 
report that judged "the economic recovery at this point is at a 
standstill." This was a downgrading of the key judgment in February 
that "at this point, the economic recovery has slackened." State 
Minister for Economic and Fiscal Policy Ota at a press conference 
after the cabinet meeting said, "The economy is at a pause 
(odoriba-teki no joukyou)," and she expressed her view that the 
postwar period's longest economic recovery has now reached a 
crossroads. 
 
This is the second month in a row for the economic situation to be 
downgraded. This is the third time for the economy to pause in its 
recovery. 
 
As the main reason for downgrading the state of the economy, State 
Minister Ota said, "Three key elements - personal consumption, 
capital investment, and production - are all flat." There has been a 
great drop in production headed mainly toward the United States. The 
pace of production of electronic parts and the like has slowed down, 
and the judgment about production that last month was "growth has 
become sluggish," was changed in March to "is flat." Capital 
 
TOKYO 00000754  004 OF 011 
 
 
investment was changed from "growing modestly" to "generally flat." 
Personal consumption also was judged as stagnant, with wages not 
rising and daily necessities rising in price. 
 
5) BOJ governor post left vacant for first time in postwar era; 
Deputy Gov. Shirakawa to serve as acting BOJ chief 
 
MAINICHI (Top Play) (Excerpts) 
March 20, 2008 
 
The government decided yesterday in a cabinet meeting to appoint 
Masaaki Shirakawa, 58, a Kyoto University professor and former 
executive director of the Bank of Japan, and Kiyohiko Nishimura, 54, 
a BOJ Policy Board member, as the BOJ deputy governors, since the 
terms of Gov. Toshihiko Fukui and the two deputy chiefs, including 
Toshiro Muto, expired the same day. The BOJ helm is now vacant for 
the first time in the postwar period because the House of 
Councillors has rejected the government's nominees: Muto and Koji 
Tanami, president of the Japan Bank for International Cooperation. 
 
The central bank last night decided that Shirakawa would serve as 
the acting governor. Shirakawa will be chosen tomorrow in a BOJ 
Policy Board meeting as the chair to lead the central bank's 
monetary policy management. The BOJ will hold meeting on April 8-9 
to decide its monetary policy. A meeting of the finance ministers 
and central bank governors of the Group of Seven (G7) will be held 
soon. If the vacancy in the BOJ helm is prolonged, Shirakawa will 
attend the G7 meeting. 
 
Amid the ongoing international financial market crisis triggered by 
the U.S. subprime mortgage crisis, officials in the markets are 
concerned whether Japan can take a flexible response at a time when 
the global economy and financial markets are in crisis. Since there 
is a view that the leadership vacuum at the central bank has made it 
clear that Japanese politics is malfunctioning, the current BOJ 
situation has seriously damaged the international reputation of 
Japan. 
 
6) Nomination of new candidate for BOJ governorship may be deferred 
to April; Shirakawa to serve as acting governor 
 
NIKKEI (Page 1) (Excerpts) 
March 20, 2008 
 
The government's plan of nominating Koji Tanami, governor of the 
Japan Bank for International Cooperation and a former vice finance 
minister, for the post of governor at the Bank of Japan (BOJ) was 
rejected in the Diet yesterday. Toshihiko Fukui's term of office as 
BOJ governor expired yesterday. Following this, the government will 
start the process of finding an alternative, but the ruling and 
opposition camps have been engaged in a fierce battle over such 
issues as taxes for highway construction in the ongoing Diet 
session. Given such circumstances, it seems impossible for the 
government to present a new nominee by the end of this month. Fukui 
designated Deputy Governor Masaaki Shirakawa as acting governor 
yesterday. 
 
The House of Councillors in its plenary session yesterday voted in 
favor of Kiyohiko Nishimura to fill the second of two deputy 
governor posts. In the House of Representatives, the nominations of 
Tanami and Nishimura gained approval by a majority from the ruling 
parties. The government formally decided in a cabinet meeting 
 
TOKYO 00000754  005 OF 011 
 
 
yesterday to appoint Shirakawa and Nishimura as deputy governor. 
 
7) Government, ruling and opposition parties under heavy fire from 
business leaders, overseas media because of failure to find a new 
BOJ leader 
 
NIKKEI (Page 3) (Full) 
March 20, 2008 
 
Japanese business leaders slammed the government and ruling and 
opposition parties for their failure to appoint a new Bank of Japan 
(BOJ) governor. 
 
Fujio Mitarai, chair of the Japan Business Federation (Nippon 
Keidanren), yesterday told reporters, "It casts significant doubt 
upon Japan's credibility." Adding, "I hope (the officials concerned) 
give up their holiday to continue efforts to choose a new governor 
as quickly as possible." Mitarai sought to save the situation 
swiftly. 
 
Tadashi Okamura, president of the Japan Chamber of Commerce and 
Industry, as well, told reporters the same day: "Given that 
international cooperation in the monetary area is required at 
present, I am very concerned that Japan will be able to play the 
role it should play appropriately." Masamitsu Sakurai, chair of the 
Japan Association of Corporate Executives (Keizai Doyukai), again 
called on the ruling Liberal Democratic Party (LDP) and the major 
opposition Democratic Party of Japan (DPJ) to have a leaders' 
meeting, noting, "No one other than the heads of the parties can 
resolve the matter." 
 
Speaking of the selection of a new BOJ governor, Mitarai noted, "A 
high degree of expertise and an international outlook are both 
required for the position. Where a nominee comes from is not a big 
problem," casting doubts upon the DPJ's attitude of sticking to 
separation between fiscal and monetary affairs. 
 
Fujio Cho, chair of the Japan Automobile Manufacturers Association, 
likewise told a news briefing the same day: "I'd like politicians to 
be fully aware of the fact that the current state of politics has a 
negative impact on the economy. I hope they will think of Japan from 
a broad point of view." 
 
Overseas media also rapped the Japanese political world. 
 
The Washington Post described the confused selection of a new BOJ 
governor as a "national embarrassment" in its March 18 edition. It 
pointed out: "Can you believe that the top post of the central bank 
is empty despite the rapid appreciation of the yen? But this is a 
reality facing Japan." Businessweek sounded an alarm by writing that 
"Other countries' central banks are desperate to prevent a meltdown 
of the market, but the BOJ may stay on the sidelines." 
 
8) DPJ Secretary General Hatoyama: DPJ will punish Kimata for voting 
for Tanami's nomination for new BOJ governor 
 
MAINICHI (Page 2) (Full) 
March 20, 2008 
 
When asked by the press whether the Democratic Party of Japan (DPJ 
or Minshuto) would punish its Upper House member Yoshitake Kimata, 
who had voted for the government's nomination of Koji Tanami for the 
 
TOKYO 00000754  006 OF 011 
 
 
new governor of the Bank of Japan, DPJ Secretary General Yukio 
Hatoyama said yesterday: "Of course, it is regrettable that he 
violated the party rule. We will penalize him because he took action 
to destroy our internal harmony." 
 
Although Nobuo Matsuno absented himself from voting, the DPJ will 
unlikely punish him, similar to the three members who abstained from 
voting at the Upper House plenary session on March 12. 
 
9) "April crisis" for Fukuda administration becoming likely, with 
DPJ stepping up confrontation with ruling bloc as the question of 
tax revenues for road projects comes to head 
 
NIKKEI (Page 3) (Excerpts) 
March 20, 2008 
 
The showdown between the ruling and opposition camps in the divided 
Diet, where the opposition parties have control of the Upper House, 
brought about the unusual situation of leaving the top Bank of Japan 
(BOJ) post vacant. Prime Minister Yasuo Fukuda is making desperate 
efforts to appoint a new BOJ governor swiftly by obtaining approval 
from the opposition camp, but the battle between the ruling and 
opposition blocs over the question of whether to scrap the 
provisional tax rate for gasoline will come to a head at the end of 
March. If gasoline prices are cut as the major opposition Democratic 
Party of Japan (DPJ) calls for, the Japanese economy will be certain 
to be thrown into turbulence. If no action is taken right now, the 
Fukuda administration may be hit by an "April crisis," given the 
already prevailing concerns over the monetary market as well as 
economic performance. 
 
"The next week will be a hard time," Fukuda said in meeting late 
yesterday in Tokyo with Finance Minister Fukushiro Nukaga and the 
ruling Liberal Democratic Party's (LDP) Policy Research Council 
Chair Sadakazu Tanigaki. What Fukuda had in mind was not only the 
selection of a new BOJ governor but also the question of how to deal 
with a bill amending the Special Taxation Measures Law, which 
includes a provision stating the provisional tax rate for gasoline 
shall be maintained. 
 
The DPJ, which controls the Upper House, has yet to respond to 
debate on the bill. It appears hopeless to put the bill to a vote by 
the end of this fiscal year without adding modifications to it. If 
the bill is not adopted adopted, the provisional tax rate will be 
scrapped and a 25-yen cut in the gasoline price as demanded by the 
DPJ will come true. 
 
The only hope for Fukuda, who has been driven into a corner, is to 
reach agreement with the DPJ on modifications to the bill. Late 
yesterday, Fukuda called Tanigaki and junior ruling coalition 
partner New Komeito's Policy Research Council Chair Tetsuya Saito to 
the Prime Minister's Official Residence and indicated to them a set 
of five items concerning modification to the bill related to the 
problem of tax revenues for road projects. Fukuda did so, out of 
strong concern over the current situation. 
 
Departing widely from the previous stance of the government and the 
ruling bloc by suggesting incorporating the full amount of tax 
revenues for road projects into the general budget and implementing 
drastic reform in fiscal 2009 and beyond, Fukuda sought to have 
talks between the ruling and opposition parties, saying, "I hope to 
see proposals from the opposition bloc." 
 
TOKYO 00000754  007 OF 011 
 
 
 
However, the DPJ still remains cold toward Fukuda. The tide of 
opinion in the DPJ at present is that there is no need to make 
concessions with the ruling bloc, given that if April comes without 
doing anything about the bill, the DPJ can win the fruit of reducing 
gasoline prices. No path to talks between the ruling and opposition 
parties is found yet. 
 
10) Fukuda hints at intention to consider placing highway tax 
revenues into general budget, aiming to hold talks with DPJ 
 
YOMIURI (Top Play) (Excerpts) 
March 20, 2008 
 
Prime Minister Fukuda said last night that the government would 
consider the possibility of allocating highway tax revenues for 
general expenditures in revising bills related to the tax system, 
including one amending the Special Taxation Measures Law to maintain 
the current provisional gasoline tax rate. Although the prime 
minister had taken a cautious view about the idea of shifting 
highway tax revenues to the general budget, he now appears to have 
judged it unavoidable to make a compromise in order to bring the 
Democratic Party of Japan (DPJ) into talks on revising the bills in 
order to have a vote taken on the bills by the end of this fiscal 
year. The DPJ has insisted that the provisional tax rates be 
scrapped and that highway tax revenues be incorporated into the 
general budget. Given this stance, it remains to be seen whether 
progress will be made in negotiations on changing the legislation. 
 
Fukuda told reporters at his official residence (Kantei) last night: 
"The government will look into placing the full amount of highway 
tax revenues into the general budget." 
 
Asked about an abolishment of the provisional tax rates, the prime 
minister replied: "We should consider it in discussions on boldly 
reforming the tax system." Prior to this, the prime minister met 
Liberal Democratic Party Policy Research Council Chairman Tanigaki 
and New Komeito Research Council Chairman Saito at the Kantei the 
same day and instructed them to work out an amendment plan in 
accordance with a five-item guideline on revising the road tax bills 
and hold negotiations with the DPJ and other opposition parties. 
 
The guideline suggests (1) enacting the bills within this fiscal 
year; (2) considering the possibility of incorporating highway tax 
revenues into the general account budget in the process of reforming 
the tax system; and (3) reviewing the mid-term highway-construction 
program, including its timeframe. The prime minister ordered them to 
hold negotiations with the opposition bloc after coordinating views 
on these possibilities within the ruling camp. 
 
11) SDF's Iraq dispatch yet to be fully verified 
 
ASAHI (Page 4) (Abridged) 
March 20, 2008 
 
The Iraq war, which was started by the United States and Britain, 
prompted the Japanese government to make a substantial shift of 
Japan's diplomacy from the United Nations to the alliance. The 
government, stepping into a "gray zone" of the Constitution, sent 
Ground Self-Defense Force troops to a battlefield for the first 
time. Today marks the fifth anniversary of the Iraq war. The 
government and the ruling coalition are now pushing ahead with 
 
TOKYO 00000754  008 OF 011 
 
 
discussions on the advisability of creating a permanent law allowing 
Japan to send SDF troops overseas as needed. Before doing so, 
however, they must assess the SDF's Iraq mission. 
 
The Japanese government supported the Iraq war on the grounds of 
weapons of mass destruction (WMD). In March 2003, then Prime 
Minister Koizumi told U.S. President Bush: "You made the decision in 
order to do away with Iraq's weapons of mass destruction. It's only 
natural that I support this." 
 
In his remarks to the press at home, Koizumi said: "If weapons of 
mass destruction are in the hands of a dangerous dictator, that is 
very dangerous. This is also a matter of concern to Japan." With 
this, Koizumi stressed the existence of WMD for his decision to send 
SDF troops to Iraq. 
 
"They will discover WMD in time." This comment came from then Chief 
Cabinet Secretary Fukuda. However, WMD were nowhere to be found. The 
government crossed out the wording of "WMD disposal assistance," 
which was incorporated in its draft bill for the Iraq Special 
Measures Law, right before endorsing it in a cabinet meeting. 
President Bush himself owned up to misinformation about WMD, so 
Japan lost justification for its SDF deployment to Iraq. 
 
That was not the only miscalculation. "We didn't think Iraq would 
get bogged down like this," a senior official of the Defense 
Ministry confessed. In his press remarks yesterday, Chief Cabinet 
Secretary Machimura admitted that the government still cannot check 
 
SIPDIS 
the progress of GSDF-initiated projects in Iraq to help with its 
rebuilding efforts, because public security has yet to be ensured 
there. 
 
In order to weaken the military imprint of Japan's dispatch of SDF 
troops to Iraq, the government incorporated a civilian role in the 
Iraq Special Measures Law, as well as the SDF's Iraq dispatch. Four 
years later, however, the government cannot send any civilians 
there. 
 
"Boots on the ground." Urged by the U.S. government, Japan sent SDF 
troops to Iraq without authorization from the United Nations. The 
government took the position that sending SDF members to a noncombat 
area is not linked to the constitutionally prohibited use of armed 
force. Even so, Koizumi was rough in Diet debates when asked about 
the SDF's Iraq dispatch from the perspective of constitutionality. 
 
12) Five years after war with Iraq: Japan's face no longer visible 
with withdrawal of GSDF 
 
MAINICHI (Page 3) (Full) 
March 20, 2008 
 
Ken Utsuka 
 
The Japanese government has stressed that Japan's reconstruction 
assistance in Iraq consists of the deployment of the Self-Defense 
Forces (SDF) and official development assistance (ODA), which the 
government says are both closely connected with each other like "two 
wheels of a vehicle." But Japan has failed to come up with a clear 
assistance policy after the Ground Self-Defense Force's (GSDF) 
troops pulled out from Iraq in 2006. 
 
During the period from January 2004 through July 2006, Japan focused 
 
TOKYO 00000754  009 OF 011 
 
 
its ODA on Iraq's southern city of Samawah, where GSDF groups were 
deployed. Most of ODA was used for medical care and the construction 
of social infrastructure. In October 2003, Japan announced it would 
offer 5 billion dollars to Iraq at the international conference on 
reconstruction assistance to Iraq held in Spain. Japan's aid amount 
was the second largest after the United States in the world. 
 
After the withdrawal of GSDF troops from Iraq, however, Japan's ODA 
has been spread across Iraq. Although the Air Self-Defense Force 
(ASDF) began to be engaged in airlifting operations in March 2004, 
the core of this assistance has been support for the U.S. forces-led 
multinational force. According to the Ministry of Defense (MOD), the 
airlifting was carried out 271 times from September 2006 after GSDF 
troops' withdrawal through December of 2007. Of them, 67 times of 
airlifting or less than 30 PERCENT  of the total were carried out to 
assist the United Nations. 
 
Japanese diplomats, except for those working in the Japanese Embassy 
in Baghdad, hardly enter Iraq. The late Ambassador Katsuhiko Oku and 
the late First Secretary Masamori Inoue, both of whom were shot to 
death (by Iraqi gunmen) at the age of 45 and 30, respectively, were 
engaged in "tangible assistance" closely linked to a specific 
region, but Japan remains unable to resume such visible assistance. 
 
13) Opposition parties to draft SOFA revision bill requiring U.S. 
military to restore environmentally damaged sites to original state 
 
MAINICHI (Page 2) (Full) 
March 20, 2008 
 
In the wake of a series of misconduct by U.S. service members in 
Okinawa, the Democratic Party of Japan, Social Democratic Party, and 
the People's New Party have been studying jointly submitting a bill 
revising the Japan-U.S. Status of Forces Agreement. The three 
parties decided yesterday to specify in the envisaged bill the U.S. 
side's obligation to restore environmentally damaged sites to their 
original state. The three parties plan to come up with a revision 
bill early as March 27 to urge the government to revise the SOFA. 
 
The envisaged revision bill will call for an environmental 
conservation clause, which obligates the U.S. side to restore 
contaminated sites to their original state in returning them to 
Japan or to take steps to repair damages that were caused by U.S. 
military activities. 
 
The bill will also include regular Japan-U.S. joint surveys on 
environmental impacts by U.S. military drills. The U.S. obligation 
to restore environmentally damaged sites to their original state is 
exempted form the current agreement. 
 
Environmental problems, such as the disposal of PCBs, have 
frequently occurred at U.S. bases in Okinawa and Kanagawa 
Prefecture. 
 
14) Defense Ministry to punish more than 60 persons for MSDF 
incidents 
 
MAINICHI (Page 2) (Full) 
March 20, 2008 
 
In the wake of the Maritime Self-Defense Force's series of 
unfortunate incidents, the government decided yesterday to take 
 
TOKYO 00000754  010 OF 011 
 
 
punitive actions against over 60 MSDF personnel, including 
Administrative Vice-Defense Minister Kohei Masuda and MSDF Chief of 
Staff Eiji Yoshikawa. The government will implement the decision 
timed with a cabinet decision on March 21 to dismiss Chief of Staff 
Yoshikawa from the post. The measures are intended to bring the 
curtain down on the matter by punishing the top administrative and 
MSDF officers. 
 
In connection with the February 19 Atago collision with a fishing 
boat, the government will punish Masuda, Yoshikawa, Fleet Escort 
Force command Hiromi Takashima and others. The government will also 
take punitive actions against some 20 personnel over a fire last 
December on another destroyer Shirane, including issuing a warning 
to the ship's captain. Further, about 40 persons will be punished 
for an Aegis data leak with pay cuts for Yoshikawa and the 
disciplinary discharge of a lieutenant commander, who has been 
indicted on suspicion of violating the Law Concerning the Protection 
of Secrets for the Japan-U.S. Mutual Defense Assistance Agreement. 
 
Along with those actions, the government will release reports on the 
collision, fire, and information leak incidents. 
 
15) Ishiba vulnerable to criticism: Account of Aegis accident 
confused, no progress in verification 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 20, 2008 
 
The recent collision of the Maritime Self-Defense Force's 
Aegis-equipped destroyer Atago with a fishing boat has exposed the 
Defense Ministry's poor management of information, as seen from the 
Defense Ministry's belated learning of the accident and its 
backtracking in accounting for the accident. The Defense Ministry 
has yet to unfold the cause of the accident while remaining unable 
to come up with sufficient countermeasures for another such 
eventuality. The Defense Ministry will release an interim report 
tomorrow on its investigation of the accident. Currently, Defense 
Minister Shigeru Ishiba is not being pressed to resign, but 
depending on the interim report's content, however, the Defense 
Ministry and Ishiba will likely be showered with criticism again. 
 
"We tried to make public our findings within the scope of not 
interfering with their (Japan Coast Guard) investigation. This gave 
the impression that we were confused." 
 
Looking back on the past one month after the Aegis accident, Ishiba 
said he would review the Defense Ministry's public information for 
eventualities. 
 
The Defense Ministry first said the Atago confirmed the fishing boat 
"two minutes before the collision." However, the Defense Ministry 
changed that explanation to "12 minutes before the collision." 
Concerning its questioning of the Atago's chief navigator, the 
Defense Ministry explained that it had obtained the JCG's prior 
approval. However, the Defense Ministry later took back that 
explanation. 
 
What lies behind the situation was the lack of sufficient 
communications between the Defense Ministry's bureaucrats and the 
staff offices of the Self-Defense Forces, according to 
Administrative Vice Defense Minister Kohei Masuda. 
 
 
TOKYO 00000754  011 OF 011 
 
 
However, the Defense Ministry does not seem to have looked closely 
into how the lack of communications brought about the confusion. 
Moreover, the Defense Ministry remains unable to work out even a 
specific plan for enhanced cooperation. The Defense Ministry's 
bureaucracy and the SDF brass have had poor communications with each 
other. As it stands, it will not be so easy to shore up their 
teamwork. 
 
Meanwhile, Ishiba also wavered in his remarks over the Defense 
Ministry's questioning of the chief navigator and was exposed to 
bitter criticism. 
 
"It's only natural that I cut off my retreat." With this, Ishiba 
indicated that he would make strenuous efforts to prevent similar 
accidents. Ishiba plans to reorganize and integrate the Defense 
Ministry's internal bureaus and the SDF's staff offices. However, 
the Defense Ministry has just set about its feasibility study of 
Ishiba's reorganization plan in its in-house project team. There is 
also a strong backlash calling the plan "empty," and its feasibility 
is unclear. 
 
If the interim report upsets the Defense Ministry's explanation 
given so far, or if another problem is brought to light, Ishiba will 
likely face calls again for his resignation while remaining unable 
to restructure his ministry. 
 
SCHIEFFER