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UNCLAS SECTION 01 OF 14 TOKYO 000785 
 
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 03/24/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's weekend schedule  (Nikkei) 
 
Opinion polls: 
4) Fukuda support plunges 9 points to 31 PERCENT  in Nikkei poll 
(Nikkei) 
5) Yomiuri poll finds 64 PERCENT  dissatisfied with Fukuda's 
performance during first 6 months of premiership; 90 PERCENT 
clueless as to what his policy aims are  (Yomiuri) 
 
Yokosuka incident: 
6) Deserter turns self in to Navy security police, likely to be 
questioned by Kanagawa police in connection with cab driver slaying 
(Asahi) 
7) Kanagawa police to question seaman in U.S. custody on involvement 
with cab driver slaying; Suspect connected to African group in 
Roppongi  (Yomiuri) 
8) U.S. Navy Commander Kelly pledges "full cooperation" with 
Japanese investigators when the seek to question seaman now in 
custody  (Nikkei) 
 
Okinawa incidents: 
9) Protest rally in Okinawa in wake of school girl rape incident 
draws 6,000 in pouring rain  (Mainichi) 
10) Calls for SOFA revision accompany protest rally in Okinawa 
(Mainichi) 
 
11) Prime Minister Fukuda in speech at defense university graduation 
promises Defense Ministry reform; 26 graduates, however, refuse 
commissions  (Mainichi) 
 
12) Japanese, Chinese finance ministers meet, pledge cooperation to 
stabilize economic situation, agree on need for sustained growth 
(Nikkei) 
 
13) President-elect Ma of Taiwan stresses strong ties with Japan, 
expresses hope to visit Japan soon  (Yomiuri) 
 
14) South Korean President Lee seeks multilateral solution to 
Japan's abduction problem with North Korea  (Nikkei) 
 
Political economy issues: 
15) Democratic Party of Japan (DPJ) refuses talks with ruling 
parties on gax-tax revision  (Tokyo Shimbun) 
16) DPJ Secretary General Hatoyama, still playing hardball, will not 
agree to revise tax bills before Diet unless gas tax is first 
scrapped  (Yomiuri) 
17) Gasoline price will drop in April when tax expires, wreaking 
havoc on local government finances which will lose 1.6 trillion yen 
(Sankei) 
18) Foreign investors leaving Japan's stock market in droves, 
dealing another blow to the weakening economy  (Nikkei) 
19) Well-known political scientist Kabashima wins Kumamoto 
gubernatorial election with LDP backing  (Yomiuri) 
20) Exit poll in Kumamoto governor's race shows strong LDP support 
gave Kabashima the win  (Yomiuri) 
 
Articles: 
 
 
TOKYO 00000785  002 OF 014 
 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: 
Man wanted on murder stabs eight people around Ibaraki station, one 
dead 
 
Nikkei: 
South Korean President Lee in interview calls for joint efforts by 
Japan, ROK, and China for trade accord and environmental issues; 
"Time is also ripe" for Emperor's visit to South Korea 
 
Akahata: 
Okinawa prefectural rally held to protest crimes by U.S. service 
members 
 
2) EDITORIALS 
 
Asahi: 
(1) Make House of Councillors into chamber of local districts 
 
Mainichi: 
(1) Economic foundations must be strengthened 
(2) Junior high schools need higher morals 
 
Yomiuri: 
(1) White paper failed to embrace nuclear power 
(2) Lay judge system requires more court interpreters 
 
Nikkei: 
(1) Improved investment market necessary for emerging companies 
 
Sankei: 
(1) Death sentence should have been handed down to child killer 
(2) Professional baseball community must be reformed this year 
 
Tokyo Shimbun: 
(1) Thoughts on matters at beginning of week in spring 
 
Akahata: 
(1) Sympathy budget agreement financial support for U.S. military 
strategy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 21 
 
NIKKEI (Page 2) (Full) 
March 22, 2008 
 
08:10 
Attended meeting of Regional Bloc System (doshusei) Special Zone 
Promotion Headquarters. Attended cabinet meeting. Handed written 
appointment to BOJ deputy governors Shirakawa and Nishimura, joined 
by Finance Minister Nukaga and Chief Cabinet Secretary Machimura. 
 
09:05 
Met at Kantei with Internal Affairs and Communications Minister 
Masuda, followed by Tokyo Metro President Umezaki. 
 
10:05 
Met with Special Advisor Ito. Recorded video-message for "Symposium 
to Realize Universal Society" attended by New Komeito deputy chief 
 
TOKYO 00000785  003 OF 014 
 
 
Hamayotsu. 
 
11:00 
Met with Deputy Foreign Minister Kono. 
 
13:28 
Met with Machimura. 
 
14:32 
Met with Machimura, Special Advisor to the Cabinet Okuda, Ito, 
Assistant Deputy Chief Cabinet Secretary Saka, METI Economic and 
Industrial Policy Bureau chief Suzuki, Cabinet Office Economic and 
Fiscal Management Director General Saito, and Financial Services 
Agency Supervisory Bureau chief Nishihara. 
 
15:46 
Met with Deputy Chief Cabinet Secretary Futahashi. 
 
16:47 
Met with Special Advisor Yamatani, followed by Vice Foreign Minister 
Yabunaka. 
 
19:01 
Attended meeting of National Conference on Social Security. 
 
20:16 
Returned to his official residence. 
 
Prime Minister's schedule, March 22 
 
NIKKEI (Page 2) (Full) 
March 23, 2008 
 
09:24 
Arrived at his private residence in Nozawa. 
 
14:11 
Met Chief Cabinet Secretary Machimura at his official residence. 
 
Prime Minister's schedule, March 23 
 
NIKKEI (Page 2) (Full) 
March 24, 2008 
 
09:23 
Departed from the Kantei by GSDF helicopter. 
 
09:45 
Met Defense Minister Ishiba, National Defense Academy President 
Iokibe and others at NDA in Yokosuka, Kanagawa Prefecture. 
 
10:02 
Attended the National Defense Academy graduation ceremony. 
 
11:47 
Departed from the National Defense Academy by GSDF helicopter. 
 
12:05 
Arrived at the Kantei. 
 
12:10 
Returned to his official residence. 
 
TOKYO 00000785  004 OF 014 
 
 
 
4) Poll: Cabinet support dips to 31 PERCENT 
 
NIKKEI (Page 1) (Abridged) 
March 24, 2008 
 
The approval rating for Prime Minister Yasuo Fukuda and his cabinet 
dropped 9 percentage points from February to 31 PERCENT  in a public 
opinion survey conducted by the Nihon Keizai Shimbun on Mar. 21-23. 
The disapproval rating rose 6 points to 54 PERCENT . The Fukuda 
cabinet's nonsupport rate topped 50 PERCENT  for the first time 
since it came into office and paralleled that of the Abe cabinet 
around the election in July last year for the House of Councillors. 
This can be taken as reflecting confusion over the appointment of 
Bank of Japan Gov. Toshihiko Fukui's successor and road-related tax 
revenues. 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 40 PERCENT , up 1 point. The 
leading opposition Democratic Party of Japan (Minshuto) was at 30 
PERCENT , down 1 point. The gap between the LDP and the DPJ has 
increased from 8 points in the last survey to 10 points. The survey 
was taken by Nikkei Research Inc. over the telephone on a random 
digit dialing (RDD) basis. For the survey, samples were chosen from 
among men and women aged 20 and over across the nation. A total of 
1,574 households with one or more eligible voters were sampled, and 
answers were obtained from 865 persons (55 PERCENT ). 
 
5) Poll: 64 PERCENT  unhappy Fukuda cabinet's performance 
 
YOMIURI (Page 1) (Full) 
March 24, 2008 
 
Mar. 26 will mark a half year since Prime Minister Fukuda and his 
cabinet came into office. The Yomiuri Shimbun, in a face-to-face 
nationwide public opinion survey conducted Mar. 15-16, asked people 
if they gave high marks to the performance in office of Fukuda and 
his cabinet. Negative responses of "don't appreciate very much" and 
"don't appreciate at all" added up to 64 PERCENT , while affirmative 
answers, including "very much" and "somewhat," totaled 34 PERCENT . 
The Fukuda cabinet's support rate continued to drop for the third 
straight month and is now at 33.9 PERCENT , markedly down from the 
59.1 PERCENT  rating in a face-to-face survey taken after its 
inaugural last October. As seen from these figures in the survey, 
the public is taking a severe view of Fukuda and his cabinet. 
 
In the latest poll, the public also was asked to pick one or more 
aspects of the accomplishments of the prime minister and his cabinet 
that could be positively evaluated. The choice of "blanket relief 
for all hepatitis C virus victims" accounted for 50 PERCENT , 
followed by "response to pension record-keeping flaws" at 18 PERCENT 
, and "resuming the Maritime Self-Defense Force's refueling mission 
in the Indian Ocean" and "initiative to deal with global warming" at 
12 PERCENT  each. But 27 PERCENT  of the public found nothing to 
appreciate him for. 
 
The public was further asked if they understood what kind of 
political goals the prime minister was aiming at. To this question, 
"yes" accounted for only 9 PERCENT , with "no" reaching 89 PERCENT . 
Asked if they thought the prime minister's job performance was 
sound. In response, 43 PERCENT  answered "yes," with 48 PERCENT 
saying "no." 
 
TOKYO 00000785  005 OF 014 
 
 
 
Respondents were asked how long they would like the Fukuda cabinet 
to continue. To this question, "quit as soon as possible" accounted 
for 25 PERCENT , topping all other answers. 
 
6) U.S. seaman contacted Navy of whereabouts on own volition; 
Kanagawa to seek cooperation for voluntary questioning of suspect 
(in connection with cab driver's slaying) 
 
ASAHI (Page 39) (Abridged) 
March 23, 2008 
 
In connection with the slaying of Masaaki Takahashi (61), a taxi 
driver from Yokosuka City in Kanagawa Prefecture, a seaman attached 
to the U.S. Naval Base at Yokosuka who had been absent without leave 
turned himself in to U.S. Navy authorities on the 22nd and was taken 
into custody. He had been missing for about three weeks. Although 
the seaman's credit card was found inside the taxi, there is no 
other evidence to show that he actually rode in the cab. His 
involvement in the killing remains a "blank sheet," so the police 
have decided to seek the cooperation of the U.S. Navy for voluntary 
questioning of the suspect. 
 
According to U.S. Navy command, the Naval Criminal Investigation 
Service (NCIS) at 03:41 am on March 22 took custody of the deserter. 
The seaman said he had got into trouble at the base and could not 
make the time of departure for his ship, the USS Cowpens, an Aegis 
destroyer, of which he was a crewman.  He was subsequently declared 
a deserter on March 10, having been missing since the first of the 
month. 
 
While NCIS was searching for him, the seaman voluntarily turned 
himself in by contacting the Navy about his whereabouts. After being 
taken into custody, he was questioned about his desertion. According 
to an informed source, he reportedly has denied any connection with 
the killing. 
 
In the investigation by the prefectural police, authorities found 
the seaman's credit card at the foot of the seat of the slain 
driver. However, in the NCIS investigation until now, except for the 
credit card, there is no other evidence to indicate the seaman had 
been riding in the cab. 
 
During the NCIS investigation, the seaman himself contacted the U.S. 
Navy about his whereabouts. After being taken into custody, he has 
been confined to base, where he has been questioned about his 
desertion. According to an informed source, he has reportedly denied 
being connected with the murder incident. 
 
7) Kanagawa prefectural police to possibly question U.S. seaman 
today over taxi driver murder case, suspecting he is linked to 
incident 
 
YOMIURI (Page 39) (Excerpts) 
March 23, 2008 
 
Masaaki Takahashi, 61, a taxi driver from Shinagawa Ward, Tokyo, was 
stabbed to death in Yokosuka City, Kanagawa Prefecture on the night 
of March 19. A special investigation team at the Yokosuka Police 
Station has asked U.S. Navy headquarters in Japan for permission to 
question as early as today a 22-year-old seaman based at Yokosuka 
Naval Base they are holding for being absent without leave, 
 
TOKYO 00000785  006 OF 014 
 
 
suspecting that he is linked to the incident. The investigation 
headquarters has information that the sailor is a U.S. citizen of 
Nigerian origin and that he has been keeping company with a private 
group for foreigners from Africa living in Tokyo. Police will also 
investigate the group, believing the group holds the key to 
establishing the seaman's movements and other information. 
 
Seaman might have contacted Roppongi group after desertion 
 
According to U.S. forces, the U.S. Naval Criminal Investigation 
Service (NCIS) apprehended the sailor at 3:41 a.m. March 22 in 
Gotanda, Shinagawa Ward, Tokyo, after the sailor called the base 
earlier that day saying he was in the Tokyo metropolitan area and 
that he wanted someone to come for him. In questioning by the NCIS 
after being taken to the base, the seaman reportedly denied 
involvement in Takahashi's murder. 
 
According to the police, after leaving the base on March 1, the 
seaman is believed to have met with members of the group for 
foreigners of African descent that have links to U.S. service 
members. The group is based in Roppongi, Tokyo, which is close to 
where the sailor was apprehended in Gotanda. 
 
The investigation headquarters has been looking into the seaman's 
activities before and after the incident. In its voluntary 
questioning of the seaman, the special investigation team plans to 
probe him over the circumstances in which a credit card belonging to 
him was found in the taxi. The team will also investigate the 
seaman's connection to the group. 
 
U.S. Naval Forces Japan headquarters explained yesterday afternoon 
to the Kanagawa prefectural police that it would respond to its 
request for questioning the seaman. 
 
The U.S. Navy headquarters specifically said that it was prepared to 
accept a request from Japanese authorities to hand the sailor over 
for questioning at any time and that it would fully cooperate with 
the police's voluntary questioning at the base. 
 
8) Yokosuka murder: U.S. Navy commander vows to fully cooperate on 
investigation 
 
NIKKEI (Page 43) (Full) 
March 24, 2008 
 
The U.S. military has now detained a 22-year-old U.S. Navy 
serviceman, who is the owner of a credit card that was discovered in 
a taxi when its driver was found slain in the city of Yokosuka, 
Kanagawa Prefecture. U.S. Naval Forces Japan Commander Rear Adm. 
Kelly held a press conference yesterday afternoon at the U.S. Navy's 
Yokosuka base. Kelly said there was still no request from Kanagawa 
prefectural police for questioning. However, he clarified that the 
U.S. Navy would fully cooperate on the prefectural police's 
investigation if there is a request. 
 
The Kanagawa prefectural police's Yokosuka Police Station 
investigative taskforce asked the U.S. military yesterday if it 
would be possible to question the U.S. serviceman. The local police 
will make a formal request to the U.S. military after obtaining its 
answer. 
 
"As a representative of the U.S. Navy in Japan, and as a citizen of 
 
TOKYO 00000785  007 OF 014 
 
 
Yokosuka, I am worried about the incident this time," Kelly said. 
However, he avoided accounting in detail for whether the serviceman 
was involved in the incident. "Japanese investigative authorities 
are investigating the murder case, and I neither confirm nor deny 
what has been reported," Kelly said. He added: "He is in custody for 
desertion. At this point, he is not a suspect in the murder case." 
 
Kelly said he was "not in a position to comment" when asked how the 
serviceman explained the credit card that was found in the taxi. He 
revealed that the serviceman, who had been absent without leave 
since Mar. 8, called U.S. naval authorities to report his 
whereabouts. However, Kelly said he had no information about what 
made the serviceman turn himself in. 
 
9) 6,000 take part in protest in Okinawa against crimes by U.S. 
military personnel 
 
MAINICHI (Page 2) (Full) 
March 24, 2008 
 
Teruhisa Mitsumori 
 
A rally in protest against incidents and accidents caused by U.S. 
military personnel was held yesterday in a park in front of a 
baseball stadium in Okinawa's Chatan Town. Despite heavy rain, some 
6,000 persons (according to the rally's executive committee) 
attended. 
 
Because of a series of crimes committed by U.S. military personnel 
even after the arrest of a U.S. Marine on charge of raping a junior 
high school girl (though the victim withdrew her complaint later), 
96 organizations, including the Prefectural Liaison Council for 
Nurturing Children, organized an executive committee to hold a 
rally. The executive committee initially aimed at staging a 
suprapartisan rally, but the rally was not joined by the LDP, the 
largest group in the prefectural assembly. Nor did Gov. Hirokazu 
Nakaima attend it. But the New Komeito, a junior coalition partner 
of the LDP in the prefectural assembly, joined the rally. Ten heads 
of municipalities, including conservatives, such as Naha Mayor 
Takeshi Onaga, the former secretary general of the LDP Prefectural 
Chapter, attended the rally. 
 
Tetsuei Tamayori (73), chair of the executive committee and chair of 
the above prefectural liaison council, stated in a speech: "We need 
to continue our efforts so that the Japan-U.S. Status of Forces 
(SOFA) Agreement will be modified drastically." Okinawa City Mayor 
Mitsuko Toumon said: "I am indignant with the central government for 
its inability to take any effective measures even after an incident 
occurs." Naha Mayor Onaga said: "I am really angry at the 
possibility that Okinawa will be forced to continue to bear a large 
burden of the Japan-U.S. Security Treaty." 
 
The rally adopted a four-point resolution, which calls for a drastic 
revision to the SOFA, in which the U.S. military has the upper hand, 
a reduction and realignment of U.S. military bases, and a troop cut 
of U.S. forces in Okinawa. Executive committee members will visit 
Tokyo, possibly in early April, and present the resolution to the 
central government. 
 
10) Need for review of SOFA voiced by many in rally in Okinawa; 
Ruling parties now positive about review 
 
 
TOKYO 00000785  008 OF 014 
 
 
MAINICHI (Page 2) (Full) 
March 24, 2008 
 
Nakae Ueno 
 
A rally protesting incidents and accidents committed by U.S. 
military personnel was held in Okinawa yesterday. The calls voiced 
in the rally were focused on the need for a drastic revision to the 
Japan-U.S. Status of Forces Agreement (SOFA). Joining the rally from 
the ruling bloc, whose previous position toward the SOFA was 
improving its operation, was the junior coalition partner New 
Komeito's Prefectural Chapter members. They attended the rally to 
call for a review of the SOFA. In response to the local call, the 
ruling Liberal Democratic Party (LDP) now appears willing to discuss 
a review of SOFA. The rally has created momentum in the ruling bloc 
to review the SOFA. 
 
Immediately after a U.S. Marine was arrested on a charge of raping a 
junior high school girl last month, Chief Cabinet Secretary Nobutaka 
Machimura and other leaders in the central government clearly ruled 
out the possibility of revising SOFA. Their attitude came under 
criticism from a number of rally participants, including Naha City 
Mayor Takeshi Onaga. The New Komeito's House of Councilor member 
Kiyohiko Toyama also stated: "It is necessary for Okinawa to 
demonstrate its intent to seek to revise the SOFA. I also would like 
everybody to realize that the problem facing Okinawa is a problem 
facing Japan." 
 
With the prefectural assembly election slated for June in Okinawa, 
the ruling and opposition parties will assume a more confrontational 
stance. The New Komeito was initially not positive about attending 
the rally by noting that its attendance would only benefit the 
opposition bloc, whose position toward the base issue is different 
from the ruling bloc's. But because the focus of the rally shifted 
later to calling for a review of the SOFA, the New Komeito decided 
to participate in the rally on the grounds that doing so meets the 
party's assertions. 
 
The central government and the ruling bloc have moved in tandem so 
far by containing calls for a review of the SOFA but insisting on 
improving its operation. But senior members of the LDP and the New 
Komeito in the Okinawa Prefectural Assembly have asked the 
government since the start of the month to drastically review SOFA. 
 
Taku Yamasaki, a former vice LDP president who now heads the LDP's 
foreign affairs panel as well as the Okinawa economic promotion 
panel, noted: "After seeing a proposal made by the prefectural side, 
I want to set a timetable for a joint session and begin discussion 
on specifics." New Komeito Representative Akihiro Ota, as well, 
softened his attitude and told a news conference on March 21: "We'd 
like to discuss fully the matter with the Okinawa side." 
 
11) Fukuda pledges Defense Ministry reform in National Defense 
Academy graduation ceremony; 26 refuse commissions 
 
MAINICHI (Page 2) (Full) 
March 29, 2008 
 
Delivering a speech in a graduation ceremony at National Defense 
Academy (in Yokosuka, Kanagawa Prefecture, with Principal Makoto 
Iokibe) yesterday, Prime Minister Yasuo Fukuda restated his 
determination to reform the Defense Ministry to regain public trust. 
 
TOKYO 00000785  009 OF 014 
 
 
He said: 
 
"Public trust in the Defense Ministry and the Self-Defense Force has 
been significantly undermined due to the collision between a 
Maritime Self-Defense Force destroyer and a fishing boat and other 
incidents. I am determined to prove what problems lay in them and 
why such incidents took place. I will also make utmost efforts to 
carry out reform." 
 
Defense Minister Shigeru Ishiba indicated in a speech the need to 
ensure civilian control, saying: 
 
"The past war is a striking example of civilian control not 
functioning. After losing the war, our nation has not directly 
tackled the essence of security with military affairs as the core. 
Those who learn nothing from history repeat the same mistakes." 
 
Excluding nine students from overseas, 415 graduated from the 
school. This year, 26 graduates - 16 more than last year - refused 
to receive commissions. In FY1990 during the bubble economy years, 
the number was 94, marking the highest record since the school was 
established, but the 26 is the highest since (the 34 was marked) in 
FY1991. With three not appointed for such reasons as health 
problems, 386 have received commissions. Those who left school 
midway through totaled 100, two less than last year. 
 
12) Japanese, Chinese finance ministers agree on cooperative efforts 
to stabilize Asia economy 
 
NIKKEI (Page 3) (Excerpts) 
March 24, 2008 
 
Finance Minister Fukushiro Nukaga and his Chinese counterpart Xie 
Xuren met yesterday as part of the second Japan-China Finance 
Dialogue to discuss their countries' economic and financial issues 
at the Finance Ministry. Given concerns growing about a slowing 
global economy triggered by the U.S. subprime mortgage crisis, the 
two finance ministers agreed that Japan and China should work 
together to keep the Asian economy from being negatively affected by 
such concerns. Nukaga asked his counterpart to make the yuan more 
flexible against foreign currencies so that China's economic growth 
will continue into the future. 
 
The two finance ministers discussed the Asian economic situation and 
other issues for about one and a half hours. In reference to the 
ongoing panic in the U.S. economy caused by the subprime loan 
problem, Nukaga said: "To avoid any negative impact on the Asian 
economy, it is important for Japan, China, and India to play the 
role of a locomotive to drive forward the economy." Xie replied: 
"Japan and China should exchange frank views and make efforts to 
resolve various global economic issues." The two agreed to cooperate 
for continued Asian economic growth. 
 
The finance ministers also referred to the recent poisoning outbreak 
caused by tainted Chinese dumplings. They agreed that they should 
endeavor to resolve the issue at an early date in order to provide 
the peoples of the two countries with a sense of safety. The next 
session of the dialogue will be held in China in 2009. Nukaga and 
Xie also agreed to hold vice-ministerial and bureau-director-level 
meetings as the need arises. 
 
13) Taiwan's present-elect Ma emphasizes "importance of relations 
 
TOKYO 00000785  010 OF 014 
 
 
with Japan"; Wishes to visit Japan soon 
 
YOMIURI (Page 2) (Excerpts) 
March 24, 2008 
 
(Kenichi Yoshida, Taipei) 
 
Taiwan's president-elect Ma Ying-jeou gave an interview to members 
of the Japanese press corps, including Yomiuri Shimbun, at his 
election office in Taipei on March 23. The 57-year-old Ma revealed 
that he is looking into an early visit to Japan, remarking: "I won't 
exclude Japan and the U.S. (from my first overseas trip prior to my 
presidential inauguration) in light of the importance of those 
countries' relations with Taiwan." It was Ma's first interview with 
foreign press corps after his election on the 22nd. 
 
Ma emphasized: "I place great importance on ties with Japan." He 
then indicated a desire to further promote cooperative relations 
with Japan in a variety of areas, such as culture, education, and 
science and technology. But Chinese President Hu Jintao is scheduled 
to visit Japan in May. Given this, attention is focused on whether 
Ma's Japan visit will be realized. 
 
Ma stressed his willingness to build a favorable relationship with 
Japan through continuous efforts to be knowledgeable about Japan, 
saying: "I support the Japan-U.S. Security Treaty. Although I have 
yet to learn much about Japan, I would like to deepen my 
understanding of Japan from various quarters." 
 
14) ROK President Lee: "Abduction issue should be resolved through 
multilateral framework" 
 
NIKKEI (Page 2) (Excerpts) 
March 24, 2008 
 
Masanori Yamaguchi, Seoul 
 
South Korean President Lee Myung Bak called for a multilateral 
framework that will involve Japan, South Korea, the United States, 
and China as a means to resolve the issue of abductions of Japanese 
nationals. Lee noted: "I think it will be better for countries to 
work together to resolve the issue than for Japan to singly try to 
resolve the issue." On how to strengthen Japan-South Korea 
relations, Lee said, "I will discuss an action plan in concrete 
terms with Prime Minister Yasuo Fukuda, when he visits South Korea." 
Lee indicated his plan to reach agreement on specifics on the action 
plan when Fukuda visits South Korea this fall. 
 
The South Korean government has estimated that the number of South 
Koreans abducted by North Korea totaled some 480. It also has 
estimated that there are 500 or more South Korean soldiers still 
taken prisoners of war (POWs) in North Korea since the Korean War. 
Lee stressed: "North Korea needs to take a humanitarian measure 
without any conditions attached to deal with the issue." Lee 
indicated his willingness to resolve the humanitarian issues 
involving North Korea, particularly the abductions of South 
Koreans. 
 
Keeping in mind also the issue of abductions of Japanese nationals, 
Lee stated, "Cooperation between South Korea and Japan, between 
South Korea and the U.S., and between South Korea and China are all 
necessary in order to resolve the humanitarian issues 
 
TOKYO 00000785  011 OF 014 
 
 
comprehensively." Lee indicated he will use the six-party framework 
on the North Korean nuclear issue to pressure (North Korea) to 
resolve the humanitarian issues. Lee's diplomatic position is in 
sharp contrast to his predecessor Roh Moo Hyun, who prioritized 
reconciliation with North Korea and was critical of the Japanese 
government for its seeking to resolve the abduction issue at the 
forum of six-party talks. 
 
15) DPJ to reject ruling bloc's call for gasoline tax revision 
talks 
 
Evening, TOKYO SHIMBUN (Page 1) (Excerpts) 
March 22, 2008 
 
Democratic Party of Japan Secretary General Yukio Hatoyama, 
appearing on a commercial television program on the morning of March 
22, indicated that his party would not respond to the ruling camp's 
call for talks on revising a bill amending the Special Taxation 
Measures Law, including the maintenance of the provisional gasoline 
tax rate, unless the ruling bloc assures that it would place the 
road tax revenues into the general account and abolish the 
provisional tax rates. The DPJ leadership, including President 
Ichiro Ozawa, is expected to formally decide to reject the ruling 
bloc's request in their talks on March 24. 
 
16) DPJ Secretary General Hatoyama: Abolition of provisional tax 
rates precondition for passage of tax reform bills within this 
fiscal year 
 
YOMIURI (Page 2) (Excerpts) 
March 24, 2008 
 
When asked about his party's response to a revision of the tax 
reform-related bills including a bill amending the Special Taxation 
Measures Law, aimed at retaining the current provisional gasoline 
tax, Democratic Party of Japan (DPJ) Secretary General Yukio 
Hatoyama said during an NHK talk show: "It is impossible to enact 
the bills while maintaining the present provisional tax rates." He 
expressed again that the DPJ would agree to the government's and 
ruling coalition's plan to enact the bills within the current fiscal 
year if they accept its proposal abolishing the provisional tax 
rates. 
 
Hatoyama, however, took a negative stance toward a ruling camp call 
for consultations on a revision of the bills, saying: "We should 
debate at the Diet, not behind closed doors. 
 
DPJ Deputy President Naoto Kan delivered a speech yesterday in 
Utsunomiya City. In it, Kan stated: "(The ruling camp) does not 
intend to modify the bills. Since their plan does not specify 
details, we cannot discuss them." 
 
Liberal Democratic Party Secretary Bunmei Ibuki, also appearing on 
yesterday's NHK talk show, criticized the DPJ, noting: "Noting will 
be decided if the DPJ rejects consultations when things do not go as 
they wish." 
 
Referring to the agreement mediated by the top leaders of the two 
Diet chambers that a certain conclusion will be reached within this 
fiscal year, Ibuki stated on a Fuji TV program yesterday: "The 
mediation would be authoritative. I think the Lower House speaker 
will present a solution this week." He hoped for coordination by the 
 
TOKYO 00000785  012 OF 014 
 
 
speaker. 
 
17) Drop in gasoline prices: What are local governments going to do 
about revenue shortfalls totaling 1.6 trillion yen? 
 
SANKEI (Page 1) (Full) 
March 24, 2008 
 
With the battle between the ruling and opposition parties entering 
the homestretch with the expiration of the provisional gas tax rate 
close at hand on Mar. 31, cheaper gasoline prices appear inevitable. 
The Liberal Democratic Party (LDP) and the New Komeito are placing 
their last glimmer of hope on revision talks with the Democratic 
Party of Japan (DPJ or Minshuto). However, there are no indications 
of the DPJ responding to the call. Provided that the provisional tax 
rate for special-purpose road construction revenues is abolished, 
the central and local governments would suffer revenue shortfalls 
totaling 2.6 trillion yen. Taking measures to deal with this 
situation has emerged as a pressing issue. 
 
LDP Secretary General Bunmei Ibuki and his DPJ counterpart Yukio 
Hatoyama yesterday appeared on Fuji TV's Hodo-2001 and other TV talk 
shows to discuss the issue. However, their exchanges ended up 
without the two making any progress, with Ibuki noting: "We will 
protect local government's fiscal resources. We have proposed 
holding talks to that end," and Hatoyama rebutting: "Upper House 
deliberations have yet to start. Discussing the issue at another 
venue at such a stage is tantamount to bid-rigging." 
 
Hatoyama categorically said that the ruling camp's revision policy 
is forgoing the issue and making no revisions. He thus indicated his 
party's stance of making no concessions on the abolition of the 
provisional gas tax rate. 
 
Hatoyama is taking such a bullish stance because he finds the 
current situation overwhelmingly advantageous to his party. That is 
to say, if the Upper House at the end of the month adopts the DPJ's 
counterproposal -- three bills related to road policy reform, 
excluding portions for special-purpose road construction revenues, 
all provisional rates, such as tariffs, would be abolished. In order 
to avoid a major panic from occurring, the ruling parties have no 
other option but to adopt the DPJ-sponsored bills in the Lower 
House. 
 
If the price of gasoline drops about 25 yen per liter starting on 
April 1 and the ruling camp reinstates the provisional rate one to 
two months later by adopting their bills once again in the Lower 
House, public criticism of the government and the ruling parties is 
bound to mount. In addition, the DPJ says that if the ruling camp 
adopts the bills once again in the Lower House, it would most likely 
submit a censure motion against the prime minister, as Hatoyama 
warned. Should that occur, the likelihood is that the administration 
would be pushed over the precipice. 
 
Local governments will lose tax resources worth approximately 900 
billion yen, such as the light oil delivery tax and the automobile 
acquisition tax, if the provisional rate for road funds is scrapped. 
They will also lose approximately 700 billion yen in special local 
tax allocation subsides for road construction. As a result, they 
would register a total of 1.6 trillion yen in revenue shortfalls. 
 
18) Foreign investors moving away from Japanese stocks due to strong 
 
TOKYO 00000785  013 OF 014 
 
 
yen, uproar over selection of BOJ governor: Selling in second week 
of March second-heaviest on record 
 
NIKKEI (Page 1) ( Full) 
March 22, 2008 
 
According to statistics released on March 21 by the Tokyo Stock 
Exchange, foreign investors' Japanese stocks selling on balance in 
the second week of March (Mar. 10-14) on the Tokyo, Osaka and Nagoya 
Stock Exchanges increased to 922.6 billion yen, marking the second 
largest figure, following 1.122 trillion yen recorded in the third 
week of October 1987, after "Black Monday." Japan-selling by foreign 
investors apparently reached a record level following the turmoil 
over the selection of Bank of Japan governor. 
 
Foreign investors are a major market player, commanding 60 PERCENT 
of the trading volume. Up until recently, the second-largest selling 
on account was 751.9 billion yen recorded in the third week of 
August last year, which saw world-wide stock plunges stemming from a 
commotion on the financial market due to the subprime mortgage 
crisis. But the amount marked in March topped that amount by about 
170 billion yen. 
 
Japanese stocks are increasingly suffering setbacks, such as the 
strengthening yen, with the currency breaking the 100 yen to the 
dollar level. Candidates for BOJ governor have been rejected in the 
Upper House, which has dampened foreign investors' expectations of 
structural reforms, as it indicates that political decision-making 
is not going smoothly, as Nikko Citigroup securities strategist 
Patrice Moor put it. This has also accelerated the trend of foreign 
investors moving away from Japanese stocks. 
 
19) Poll: Kabashima gets most votes of ruling coalition supporters, 
Kamakura fails to obtain many DPJ supporters' votes 
 
YOMIURI (Page 2) (Excerpts) 
March 24, 2008 
 
According to the results of Yomiuri Shimbun's exit polls on 
yesterday's Kumamoto gubernatorial election, Ikuo Kabashima received 
most votes from supporters of the ruling Liberal Democratic Party 
and New Komeito. However, Takayuki Kamakura failed to get votes from 
supporters of the main opposition Democratic Party of Japan (DPJ), 
which recommended him. He was also unable to obtain support from 
nonaligned voters. 
 
A total of 61 PERCENT  of the LDP supporters voted in favor of 
Kabashima and about 70 PERCENT  of the New Komeito supporters voted 
for him. 
 
Only 40 PERCENT  of the DPJ supporters voted for Kamakura. Kabashima 
secured 26 PERCENT  of the votes of the DPJ supporters, while 10 
PERCENT  of the DPJ votes went other candidates Toshiaki Kitazato 
and Masayoshi Yagami respectively. 
 
20) Kabashima wins Kumamoto gubernatorial election 
 
YOMIURI (Page 2) (Full) 
March 24, 2008 
 
Ikuo Kabashima, 62, a former University of Tokyo professor, backed 
by the ruling Liberal Democratic party, won the Kumamoto 
 
TOKYO 00000785  014 OF 014 
 
 
gubernatorial election yesterday, defeating Takayuki Kamakura, 61, 
who was recommended by the main opposition Democratic Party of Japan 
(DPJ) and three other candidates. Kabashima said (during his 
election campaign) that he would make a decision after six months 
after taking over the governorship on whether to implement a project 
to build a dam on the Kawabe River (in Sagara Village) or cancel the 
project, even though the construction project was planned 41 years 
ago. Therefore, all eyes are now on what decision Kabashima will 
make after he assumes the governor's post. Voter turnout was 49.36 
PERCENT , topping the record law of 38.67 PERCENT  in the previous 
election. 
 
The election was contested by Kabashima, Kamakura and three other 
conservative candidates. 
 
Because of his desire to secure support from wide-ranging voters, 
Kabashima refrained from receiving formal support and recommendation 
from the LDP. He, however, won a landslide victory, backed by 
supporters of the LDP and New Komeito, as well as unaffiliated 
voters. 
 
Meanwhile, Kamakura played up his opposition to the dam construction 
project, while stressing his experience of serving as a prefectural 
government official. However, the DPJ decided to recommend Kamakura 
immediately before the start of the official campaign for the 
gubernatorial race. The Rengo (Japan Trade Union Confederation) 
Kumamoto decided to let its members cast their votes independently. 
 
SCHIEFFER