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UNCLAS SECTION 01 OF 19 TOKYO 000876 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 03/31/08 
 
INDEX: 
 
(1) Prime minister appealing to public each and every day: Changes 
his political approach as communication channel with Ozawa breaks 
down (Asahi) 
 
(2) Stopgap bill on tax measures, except roads tax rates, passed 
through Lower House by majority from ruling coalition, DPJ 
(Mainichi) 
 
(3) Poll on Fukuda cabinet, political parties, road-related tax 
revenues, BOJ chief nomination (Asahi) 
 
(4) Poll on political, social attitudes (Asahi) 
 
(5) MLIT to revise introduction of restriction on foreign investment 
in airport operating companies; Experts council meeting to be held 
possibly next month (Tokyo Shimbun) 
 
(6) LDP Policy Research Chairman Sadakazu Tanigaki: No hesitation to 
take second vote tax reform bill (Yomiuri) 
 
(7) Opinion column by Atsuyuki Sassa: Wishing for a McCain victory 
(Sankei) 
 
(8) Defense Ministry to designate Nago City, Ginoza Village as 
eligible for subsidies in return for bearing base-hosting burden 
(Asahi) 
 
(9) Ginowan City Assembly rejects "peace fund ordinance," creating 
"barrier" for mayor before his visit to U.S.for direct appeal; 
Persuasion of assembly essential (Ryukyu Shimpo) 
 
(10) Defense Ministry panel recommends direct procurement, bypassing 
trading houses (Tokyo Shimbun) 
 
(11) Yokosuka slain taxi-driver case: Footage showing man resembling 
U.S. deserter found in tapes on security cameras near Shinagawa 
Station (Sankei) 
 
ARTICLES: 
 
(1) Prime minister appealing to public each and every day: Changes 
his political approach as communication channel with Ozawa breaks 
down 
 
ASAHI (Page 2) (Slightly abridged) 
March 31, 2008 
 
Prime Minister Fukuda, facing difficulties in managing his 
administration due to low public support rates and other setbacks, 
has changed his political strategy from one of quietly anticipating 
cooperation from Democratic Party of Japan (DPJ) President Ozawa to 
directly and openly appealing his policy stance to the public. 
Following an emergency press conference on March 27, during which he 
revealed his decision to reallocate special-purpose road 
construction funds for other uses in the fiscal 2009 budget, Fukuda 
on the 29th and the 30th responded to a number of interviews and 
appeared on TV programs. He will also hold a press conference on the 
31st, the day when the provisional gas tax rate expires. He intends 
to explain the government's response to the issue. 
 
 
TOKYO 00000876  002 OF 019 
 
 
Fukuda during an NHK program on the 30th gave the reason why he 
revealed his new proposal regarding the special-purpose road 
construction issue at a press conference before offering it to the 
opposition camp: "I revealed to the public details to be discussed 
between the ruling and opposition camps. Since time is running out, 
I had no other means to take." He also said during a press 
conference on the 27th: "I will not give up until the end. It is the 
public that moves politics." Regular exchanges with between the 
prime minister and reporters now take place twice a day. Fukuda 
during those exchanges frequently asserts himself fluently, 
criticizing the DPJ, a scene that has rarely been seen since he took 
office as prime minister in September last year. 
 
Behind the change in his approach is the breakdown of communications 
with Ozawa. Based on the notion that things would not move in the 
divided Diet without approval from Ozawa, Fukuda had secretly 
maintained a "hot line" with Ozawa even after a grand coalition 
initiative with the DPJ was derailed detQ-6~ng his power base in the ruling camp. 
 
The ruling parties at the end of February railroaded the national 
budget bill through the Diet. In the meantime, the DPJ disapproved 
the ruling parties' proposal for promoting Deputy Bank of Japan 
Governor Toshiro Muto to the governor's post. Their communications 
seems to have been suspended from around that time. 
 
The prime minister appears to think that the only way left for him 
to take is to lure in the DPJ for policy talks by gaining wider 
support for his policy through direct appeal to the pubic. He knows 
Ozawa cannot bring DPJ members together and that the grand coalition 
initiative has disappeared. 
 
"Will not hesitate to submit censure motion against the prime 
minister," says Kan 
 
Deputy President Naoto Kan of the DPJ on March 30 gave a speech in 
Niigata Prefecture. He during the speech criticized the LDP for 
opposing an abolition of the provisional gas tax rate, "The LDP is a 
force of resistance that does not reflect public opinion." Referring 
to the determination of the government and the ruling parties to 
adopt a bill aimed at maintaining the provisional rate by a 
two-thirds majority, Kan played up his desire to force the 
government to dissolve the Lower House over that issue. He said: "If 
the ruling parties adopt the bill once again in the Lower House, the 
issue of submitting a censure motion against the prime minister 
would surface. We cannot afford to stop fighting until a new Lower 
House is realized through dissolution of the Lower House and a snap 
election." 
 
(2) Stopgap bill on tax measures, except roads tax rates, passed 
through Lower House by majority from ruling coalition, DPJ 
 
MAINICHI ONLINE 
March 31, 2008, 1:35 PM 
 
The House of Representatives in its plenary session today adopted by 
a majority from the ruling camp and the Democratic Party of Japan 
(DPJ) a stopgap bill designed to extend to the end of May all 
special taxation measures, with the exception of those related to 
financing highway projects. The stopgap bill is expected to become 
law after being adopted in a plenary session of the House of 
 
TOKYO 00000876  003 OF 019 
 
 
Representatives this afternoon. Since no prospects are in sight for 
the government-sponsored bill amending the Special Taxation Measures 
Law to clear the Diet, the ruling coalition and the DPJ decided to 
extend other preferential tax measures than those tied to highway 
projects as a step to avoid any impact on the daily lives of the 
public. The provisional gasoline tax rate is to lose effect today. 
On and after April 1, the tax rate on gasoline will be lowered by 
25.1 yen per liter. 
 
The stopgap bill was hastily submitted to the plenary session this 
morning, after it was presented to the Lower House's Financial 
Committee and its Executive Council as a chairman's proposal. The 
bill includes such tax preferential measures as the reduced 
registration license tax rates for the transfer of land ownership. 
The ruling and opposition camps agreed on the 28th to pass the Diet 
on the 31st, in response to a request from the heads of both Diet 
chambers that confusion on the people's lives be avoided as much as 
possible. 
 
Meanwhile, the price of light oil will drop by 17.1 yen per liter 
starting on April 1. The automobile acquisition tax will also be 
reduced (from the current 5 PERCENT ) to 3 PERCENT . 
 
If the amendment bill is not voted upon in the Upper House, the 
ruling coalition will be able to force the bill through the Lower 
House by using its two-thirds majority for a revote on or after 
April 29, 60 days after the bill is sent to the Upper House, based 
on a provision in the Constitution. The government and the ruling 
camp plan to bring back the current higher gasoline and other 
highway-related tax rates based on this provision. 
 
(3) Poll on Fukuda cabinet, political parties, road-related tax 
revenues, BOJ chief nomination 
 
ASAHI (Page 2) (Full) 
March 31, 2008 
 
Questions & Answers 
(Figures shown in percentage, rounded off. Figures in parentheses 
denote the results of the last survey conducted Mar. 1-2.) 
 
Q: Do you support the Fukuda cabinet? 
 
Yes 31 (32) 
No 53 (50) 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP) 31 (29) 
Democratic Party of Japan (DPJ or Minshuto) 20 (21) 
New Komeito (NK) 3 (3) 
Japanese Communist Party (JCP) 1 (3) 
Social Democratic Party (SDP or Shaminto) 1 (2) 
People's New Party (PNP or Kokumin Shinto) 0 (0) 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 
Other political parties 0 (0) 
None 39 (38) 
No answer (N/A) + don't know (D/K) 5 (4) 
 
Q: Prime Minister Fukuda has proposed incorporating gasoline and 
other road-related tax revenues into the state's general account 
budget so the revenues can be used for other purposes than road 
 
TOKYO 00000876  004 OF 019 
 
 
construction and other road-related infrastructure projects from 
fiscal 2009. Do you support this proposal? 
 
Yes 58 
No 24 
 
Q: Prime Minister Fukuda has also proposed maintaining the current 
extra gasoline tax of 25 yen per liter in fiscal 2008 for road 
construction and other road-related infrastructure projects, taking 
the position that this is intended to avoid confusing local finances 
and people's daily lives. Do you support this proposal? 
 
Yes 31 
No 55 
 
Q: The DPJ rejected Prime Minister Fukuda's overtures, taking the 
position that the current rate of additional taxation on gasoline 
should be abolished right away from fiscal 2008. Do you support the 
DPJ's rejection of Prime Minister Fukuda's overtures? 
 
Yes 40 
No 44 
 
Q: The ruling and opposition parties failed to reach an agreement 
over the gasoline tax. As a result, the gasoline tax will go down in 
April. Do you think it is good to see the gasoline tax go down? 
 
Yes 72 
No 12 
 
Q: The ruling parties are thinking of taking a second vote in the 
House of Representatives in late April or later on a bill to restore 
the current extra portion of taxation on gasoline because the 
government will sustain a shortfall of tax revenues if the gasoline 
tax is lowered. Do you support this restoration? 
 
Yes 24 
No 61 
 
Q: The Diet has been in turmoil over the gasoline tax. Do you think 
the government and ruling parties are more to blame for that, or do 
you think the opposition parties are more to blame? 
 
Government, ruling parties 22 
Opposition parties 13 
Both are equally to blame 59 
 
Q: Prime Minister Fukuda first presented the Diet with his 
nomination of a former administrative vice finance minister for the 
post of Bank of Japan governor and next came up with his proposal to 
appoint another former administrative vice finance minister. 
However, both nominations were rejected in the House of Councillors. 
As a result, the post of BOJ governor has been left unfilled. Do you 
support Prime Minister Fukuda's actions? 
 
Yes 18 
No 58 
 
Q: The DPJ rejected both nominations on the grounds that those who 
were in the post of administrative vice finance minister are not 
appropriate for the post of BOJ governor. Do you support the DPJ's 
actions over the post of BOJ governor? 
 
TOKYO 00000876  005 OF 019 
 
 
 
Yes 33 
No 47 
 
Polling methodology: The survey was conducted Mar. 29-30 over the 
telephone on a computer-aided random digit dialing (RDD) basis. 
Respondents were chosen from among the nation's voting population on 
a three-stage random-sampling basis. Valid answers were obtained 
from 1,033 persons (64 PERCENT ). 
 
(4) Poll on political, social attitudes 
 
ASAHI (Page 8) (Full) 
March 21, 2008 
 
Questions & Answers 
(Figures shown in percentage, rounded off. Bracketed figures denote 
proportions to all respondents. One choice only for each question 
unless otherwise specified.) 
 
Q: To what extent are you satisfied with your daily life now? 
 
Satisfied 8 
Fairly satisfied 47 
Rather dissatisfied 15 
Dissatisfied 15 
 
Q: In your heart, do you think you have a fullness in your daily 
life? 
 
Yes 37 
No 60 
 
Q: Generally speaking, do you think you are happy now? 
 
Very happy 17 
Fairly happy 62 
Not very happy 17 
Not happy at all 3 
 
Q: Pick only one word that best fits today's society. 
 
Stability 4 
Equality 2 
Freedom 6 
Prosperity 1 
Transition 5 
Confusion 26 
Gap 28 
Egoism 21 
Decadence 4 
Isolation 1 
 
Q: How are you getting along with your neighbors? 
 
We are friends 27 
We are nodding acquaintances 61 
I don't know them very well 10 
 
Q: How would you like to get along with neighbors? 
 
More positively than now 11 
 
TOKYO 00000876  006 OF 019 
 
 
Just like now 86 
Not so often like now 1 
 
Q: Do you think there are more trustworthy people than untrustworthy 
people in today's world? 
 
More trustworthy people 24 
More untrustworthy people 64 
 
Q: How much do you trust the following? 
 
Family 
Trust 74 
Trust to a certain extent 23 
Don't trust very much 1 
Don't trust at all -- 
 
Weather forecasts 
Trust 14 
Trust to a certain extent 80 
Don't trust very much 5 
Don't trust at all 1 
 
 
Newspapers 
Trust 17 
Trust to a certain extent 74 
Don't trust very much 7 
Don't trust at all 1 
 
Science & technology 
Trust 21 
Trust to a certain extent 65 
Don't trust very much 8 
Don't trust at all 1 
 
Physicians 
Trust 16 
Trust to a certain extent 67 
Don't trust very much 13 
Don't trust at all 2 
 
Court trials 
Trust 11 
Trust to a certain extent 61 
Don't trust very much 23 
Don't trust at all 3 
 
Television 
Trust 5 
Trust to a certain extent 64 
Don't trust very much 26 
Don't trust at all 2 
 
Police 
Trust 9 
Trust to a certain extent 54 
Don't trust very much 29 
Don't trust at all 6 
 
Teachers 
Trust 6 
 
TOKYO 00000876  007 OF 019 
 
 
Trust to a certain extent 54 
Don't trust very much 31 
Don't trust at all 6 
 
Religions 
Trust 8 
Trust to a certain extent 22 
Don't trust very much 33 
Don't trust at all 35 
 
Politicians 
Trust 1 
Trust to a certain extent 17 
Don't trust very much 50 
Don't trust at all 30 
 
Bureaucrats 
Trust 1 
Trust to a certain extent 17 
Don't trust very much 45 
Don't trust at all 35 
 
Q: Do you think most people are willing to help others, or do you 
think most people think only of themselves? 
 
Willing to help others 22 
Think only of themselves 67 
 
Q: Do you think Japan today is a society where people are rewarded 
for their earnest efforts? 
 
Yes 28 
No 65 
 
Q: Do you hold down your spending in your daily life now to prepare 
for the future, or do you enjoy your daily life now instead of 
preparing for the future? 
 
Hold down my spending in my daily life now for the future 54 
Enjoy my daily lives now rather than to provide for the future 34 
 
Q: Do you feel uneasy about your future daily lives? 
 
Yes 87 
No 9 
 
 
Q: (Only for those who answered "yes" to the foregoing question) 
What is that? 
 
My health 21(18) 
Income, job 22(19) 
Family 9(8) 
Assets, such as savings 5(4) 
Social security, such as pension 29(25) 
Economic slump 8(7) 
Accident, disaster 3(3) 
 
Q: Which one would you like to count on in your old age: your own 
ability or your public pension? 
 
My own ability 42 
 
TOKYO 00000876  008 OF 019 
 
 
Public pension 46 
 
Q: Do you take it for granted that children will take care of their 
parents in their old age? 
 
Yes 38 
No 52 
 
Q: What bonds a family together? 
 
Family name, family register 2 
Blood 33 
Living together 18 
Something moneywise 3 
Something spiritual 39 
 
Q: I in your family life, what would you like to have a little more 
of? 
 
Laughter 9 
Conversation 19 
Relaxation 15 
Free time 7 
Thoughtfulness 24 
Parental authority 4 
Home discipline 5 
 
 
Q: Do you think Japan today is safe? 
 
Yes 32 
No 63 
 
Q: Do you think it would be better to set up more security cameras 
along shopping and residential streets to prevent crimes? 
 
Yes 68 
No 27 
 
Q: Do you think that there are more trustworthy businesses in Japan 
today than untrustworthy businesses? 
 
More trustworthy businesses 29 
More untrustworthy businesses 60 
 
Q: To what extent do you think food products being sold in Japan are 
reliable? 
 
Almost all reliable 4 
Somewhat reliable 63 
Not very reliable 27 
Almost all unreliable 3 
 
Q: If you work at a food company, and if you happen to see or hear 
that the company is falsifying best-before dates, what would you 
do? 
 
Nothing in particular 10 
Consult with my supervisor or colleagues 70 
Report it to the police or mass media 13 
 
Q: Would you buy products again from a company once it loses trust 
 
TOKYO 00000876  009 OF 019 
 
 
over mislabeled or disguised products? 
 
Yes 38 
No 55 
 
Q: What do you think is the most important attribute for a prime 
minister to have? 
 
Decisiveness 43 
Intelligence 2 
Passion 7 
Foresight 22 
Flexibility 5 
Commonalty 11 
Clean 3 
International sense 3 
 
Q: If you support a political party, what do you look for as the 
most important aspect? 
 
Principles, policy 34 
Words, actions and image of its leader 7 
Its lineup of lawmakers 3 
Actual results, stability 20 
Expectation it will change politics 30 
 
Q: Do you trust national politics? 
 
Trust very much 1 
Trust somewhat 34 
Don't trust very much 51 
Don't trust at all 12 
 
Q: Do you trust local politics? 
 
Trust very much 3 
Trust somewhat 46 
Don't trust very much 41 
Don't trust at all 8 
 
Q: Do you think the government has been using taxpayers' money in an 
effective way? 
 
Very effective 1 
Somewhat effective 11 
Not very effective 47 
Not effective at all 40 
 
Q: On the whole, do you think your own local government has been 
using taxpayers' money in an effective way? 
 
Very effective 2 
Somewhat effective 32 
Not very effective 46 
Not effective at all 15 
 
 
Q: Would you like to take part in politics? 
 
Yes 25 
No 68 
 
 
TOKYO 00000876  010 OF 019 
 
 
Q: Who do you think have the most influence on Japan's politics? 
 
Politicians 28 
Bureaucrats 27 
Business community 12 
Mass media 17 
People 13 
 
Q: Are you conscious about law in your daily life, or do you think 
about law in your daily life? 
 
Often 14 
Sometimes 49 
Not very often 32 
Not at all 4 
 
Q: Do you think you must abide by the law in all cases? 
 
Yes 62 
No 33 
 
Q: In order to maintain public order, which do you think plays a 
greater role: "law and punishment" or "morality and ethics? 
 
Law and punishment 11 
Law and punishment to a certain degree 23 
Morality and ethics to a certain degree 49 
Morality and ethics 13 
 
 
Q: By May next year, Japan will introduce a lay judge system under 
which ordinary citizens will take part in criminal proceedings as 
judges and hand down a ruling with court judges. Under this system, 
judges will be selected at random from among people aged 20 and 
over. If you are selected as a judge, would you like to take part as 
a criminal judge? 
 
Definitely yes 10 
If possible, yes 26 
If possible, no 43 
Absolutely no 18 
 
Q: Do you think you will be more trustful of court trials with the 
introduction of a lay judge system? 
 
Yes 23 
No 69 
 
Q: The heaviest punishment in Japan is the death penalty. Do you 
think it would be better to abolish itt? 
 
Yes 8 
No 86 
 
Q: Do you think more Japanese today are ill-mannered than in the 
past? 
 
Agree very much 63 
Agree somewhat 30 
Don't agree very much 6 
Don't agree at all 1 
 
 
TOKYO 00000876  011 OF 019 
 
 
Q: Do you think Japanese are a people who watch their manners well? 
 
Yes 28 
No 64 
 
 
Q: What do you think of as bad-mannered? (Multiple choices) 
 
Not separating the trash (for recycling) 72 
Talking on a cell phone in a bus or a train 68 
Sitting down on sidewalks 68 
Reading a newspaper in a crowded train 60 
Eating and drinking in a commuter train 53 
Smoking on the street 53 
Putting on make-up in public 52 
Looking at an adult magazine or the like in a bus or a train 42 
Cuddling in public 37 
Sending cellphone email in a bus or a train 17 
 
Q: Do you think you are well-mannered when compared with others? 
 
Well-mannered 27 
Fairly well-mannered 63 
Rather bad-mannered 6 
Bad-mannered 0 
 
Q: To what extent do you trust the education at elementary and 
junior high schools? 
 
Trust very much 6 
Trust somewhat 68 
Don't trust very much 21 
Don't trust at all 2 
 
Q: Do you think it is enough for elementary schoolchildren and 
junior high school students to study at school, or do you think they 
also should go to an after-school cram school? 
 
It's enough to study at school 49 
They should go to an after-school cram school  39 
 
Q: Which opinion is close to yours? 
 
It would be better in educating children to prioritize their hopes 
since it is their lives  59 
It would be better to educate children at their parents' discretion 
because they don't have enough experience 30 
 
Q: To what extent do you think the academic background is 
important? 
 
Very important 14 
Somewhat important 63 
Not very important 19 
Not important at all 2 
 
Q: There is a view that human beings will be happy as science and 
technology advance. What do you think about this? 
 
Agree very much 9 
Agree somewhat 55 
Don't agree very much 31 
 
TOKYO 00000876  012 OF 019 
 
 
Don't agree at all 3 
 
Q: Would you like atomic power generation to be promoted as a source 
of energy from now on? 
 
Yes 40 
No 35 
 
Q: Would you like to see advances in genetic engineering of farm 
products and animals for more food production? 
 
Yes 25 
No 59 
 
Q: Would you like to see advances in genetic engineering of humans 
for the treatment of diseases? 
 
Yes 44 
No 37 
 
Q: What do you think further technological advances in the Internet, 
cell phones, and other communication devices will do for human 
relations? 
 
Make them better 22 
Make them worse 62 
 
Q: Do you have a belief or creed of some kind? 
 
Yes 23 
No 70 
 
Polling methodology: The survey was conducted by mailing the 
questionnaire form to a total of 3,000 voters chosen across the 
nation on a stratified two-stage random sampling basis. A total of 
341 voting blocs were selected so as to epitomize the nation's 
electorates at large, and nine persons were picked on average from 
each voting bloc's register. The questionnaire form was sent in late 
January and was sent back from a total of 2,369 persons before the 
final deadline set at Mar. 6. Valid answers were from 2,336 persons, 
excluding answer sheets left blank or filled out by those not 
subject to the survey. The retrieval rate was 78 PERCENT . In the 
breakdown of respondents, males accounted for 44 PERCENT , with 
females at 56 PERCENT . In the breakdown of age brackets, persons in 
their 20s accounted for 12 PERCENT , 30s-17 PERCENT , 40s-16 PERCENT 
, 50s-20 PERCENT , 60s-16 PERCENT , 70 and over-19 PERCENT . 
 
(5) MLIT to revise introduction of restriction on foreign investment 
in airport operating companies; Experts council meeting to be held 
possibly next month 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 30, 2008 
 
The Ministry of Land, Infrastructure and Transport (MLIT) on March 
29 decided to start efforts to revise a plan for introducing a 
restriction on foreign investment in major airports, including 
Narita Airport, by setting up an experts study group within the 
ministry as early as April. With the clashing of arguments pro and 
con, the government and the ruling parties postponed a decision on 
the issue until year's end. MLIT is now selecting panel members with 
the possibility of involving businesspersons well versed in 
 
TOKYO 00000876  013 OF 019 
 
 
international capital markets, as well as security experts. The want 
the review based not just on the views of those from the aviation 
and transport sectors but also from those  who are opposed to the 
idea, arguing that such a restriction will hamper foreign investment 
in Japan. 
 
The envisaged study group would start over from discussions on the 
propriety of regulating foreign investment, including a proposal for 
applying the Foreign Exchange and Foreign Trade Control Law. Under 
this law, the government can place restrictions on the application 
of an article regulating foreign capital investment in airport 
operating companies and the obtaining of stocks of companies with a 
highly public nature by foreign companies -- neither of which was 
incorporated in a bill amending the Airport Development Law. 
 
As the major reasons for the postponement of the introduction of the 
restriction this time, MLIT cited: (1) the view that it would be 
easy to obtain understanding, because many in the ruling camp are in 
favor of the introduction of the regulation was too lax; and (2) the 
initial view that if a foreign company that gives priority to making 
profits runs an airport operating company, airport services would 
degrade came under criticism. The ministry admitted that the reasons 
it had given were inconsistent with the stress it had given to the 
security issue. Based on this realization, MLIT now intends to 
cautiously undergo coordination with concerned government agencies 
and the ruling parties in tandem with the study group. 
 
(6) LDP Policy Research Chairman Sadakazu Tanigaki: No hesitation to 
take second vote tax reform bill 
 
YOMIURI (Page 4) (Full) 
March 30, 2008 
 
-- Prime Minister Yasuo Fukuda proposed integrating the special 
account from road-related taxes into the general account. 
 
Tanigaki: The prime minister presented a drastic proposal. The 
Democratic Party of Japan's (DPJ or Minshuto) stance of rejecting 
the prime minister's proposal is rigid. The DPJ has insisted that 
the provisional gasoline tax should be immediately scrapped. But 
scrapping the road-related rates would lead to tax revenue 
shortfalls totaling about 2.6 trillion yen. Taking the finances of 
local governments and confusion in the markets into account, the 
(provisional tax rates should be maintained) the government drafted 
in its tax reform bill for fiscal 2008.If holding revision talks 
with the DPJ is difficult, we must be determined to revote on the 
legislation in late April in the Lower House. 
 
-- The prime minister said that he would allow the revenues from 
road-related taxes to be used for other purposes even if the DPJ was 
unable to agree with his proposal. Since he did not lay fully the 
groundwork in the Liberal Democratic Party, the LDP was thrown into 
turmoil. 
 
Tanigaki: Since we are in such a critical situation, we are taking 
action as adults. 
 
-- It will be difficult (for the prime minister) to persuade LDP 
road-policy specialists, who have opposed shifting the revenue from 
road taxes to the general account. 
 
Tanigaki: I think so. That is because we still need highways. We 
 
TOKYO 00000876  014 OF 019 
 
 
should consider how to secure fiscal resources in order to prevent a 
negative impact on the finances of local governments. 
 
-- How should the provisional gasoline rates be handled in the 
future? 
 
Tanigaki: The provisional tax rates should be retained. Japan has no 
leeway to cut the rates when considering the present fiscal 
situations of the central and local governments. But if the revenues 
from road-related taxes are allowed to be used for purposes other 
than road projects, we must discuss reasons for imposing the tax on 
gasoline. 
 
-- The prime minister had taken a political method of coordinating 
views. But he made a top-down decision this time around. So some 
members in the LDP are reacting sharply toward his top-down 
decision. 
 
Tanigaki: Under the present situation that the DPJ, which has the 
initiative in the Upper House, has not made any wise concession, the 
prime minister should have a free-hand. I think an ex post facto 
explanation is necessary. 
 
-- How will the LDP implement policies under the divided Diet? 
 
Tanigaki: I don't know whom we should talk to in the DPJ. Given that 
situation, we should use the article of the Constitution that allows 
the Lower House to take a second vote on a bill that was rejected by 
the Upper House when we need to do so. How about considering using a 
joint committee of both Diet houses? 
 
(7) Opinion column by Atsuyuki Sassa: Wishing for a McCain victory 
 
SANKEI (Page 13) (Full) 
March 28, 2008 
 
Atsuyuki Sassa, first director of the Cabinet Security Affairs 
Office 
 
Media's biased way of reporting 
 
It is obvious that the way the Japanese media are reporting on the 
United States presidential election campaigns lacks fairness. From 
the beginning, the Japanese media have taken it for granted that the 
likely Republican nominee John McCain will lose because of the Bush 
administration's failure in the Iraq war. Japanese dailies and TV 
programs are eager to focus their reporting on this simple question: 
Which will be chosen -- Hillary Clinton as the first woman president 
or Barrack Obama as the first African-American president? McCain's 
full name has rarely been seen in newspapers and on TV programs here 
in Japan. He has been treated as if he were a minor candidate. 
 
I wonder, however, whether McCain is a minor candidate. I don't 
think that American democracy with a history of merely 200 years is 
mature enough to easily accept a woman or black president. A 
worst-case scenario for Obama would be there may be a radical 
reaction to him down the road. 
 
McCain is a WASP. He is the ruling Republican Party's likely 
nominee. McCain took part in the Vietnam War as a pilot of 
carrier-based aircraft, and he was shot down and captured. He later 
became a hero lieutenant commander after surviving five and a half 
 
TOKYO 00000876  015 OF 019 
 
 
years of torture and maltreatment as a prisoner of war in North 
Vietnam. He also has the experience of serving as a member of the 
House of Representatives and as a senator. He also lost a 
close-fought battle to George W. Bush in the 2000 Republican 
presidential campaign. When a hard-bitten veteran politician, 
McCain, has a showdown with the first female or black presidential 
candidate in history backed by the Democratic Party, I wonder which 
the American voters will choose at the last minute. 
 
Japanese mass media, preconceiving that McCain will lose the 
election, extensively cover the "Obama fever" that is getting steam 
in Fukui Prefecture's Obama City. But I whether the way they are 
covering it by giving it extensive space is appropriate. 
 
Media need to give analytical report on candidates' policies 
 
Although the presidential election in the U.S. is that of another 
country, the outcome could greatly affect Japan, which is exposed to 
a number of threats from China and North Korea, over the next four 
years. Japan has been in effect shut out from the six-party talks 
since it proposed to deal with the nuclear, missile, and abduction 
issues together there. A most desirable scenario for Japan would be 
that a candidate who sides with Japan will be elected as U.S. 
president. 
 
The Prime Minister's Official Residence (Kantei) and the Ministry of 
Foreign Affairs (MOFA) refrain from making comments on any of the 
candidates, because doing so would constitute interference in the 
internal affairs of another country. But it is my belief that the 
role of mass media is to at least give an analysis of each 
candidate's policy toward Japan and China in light of Japan's 
national interests and explain who will be the best in terms of 
merits and demerits for Japan. 
 
Judging from speeches by Clinton and Obama, their policies toward 
Asia attach importance to China. They hardly mention Japan and the 
Japan-U.S. alliance. If either were to win, I presume Japan-U.S. 
relations would cool. Meanwhile, McCain, who is called a maverick, 
stresses in his speeches the need to strengthen the Japan-U.S. 
alliance, gives support to Japan's bid for a permanent seat on the 
United Nations Security Council, raises opposition to Putin's 
hegemonism, calls for strong diplomatic intervention, and emphasizes 
the importance of resolving the abduction issue from a humanitarian 
standpoint. McCain is the only politician in the Republican Party 
who advocates environmental protection and the necessity of measures 
to prevent pollution. Because he was a military officer with the 
tough experience of war, he is realistic about the Iraq war. 
 
I believe McCain is the person Japan needs to have as U.S. 
president. He may be a second Theodore Roosevelt, who opposed the 
Russian Empire's hegemonistic policy at the time of the 
Russo-Japanese War 100 years ago. 
 
McCain broad-minded enough to accept advice 
 
The Taft-Katsura Agreement was signed in 1905, with Roosevelt being 
supportive of Japan. By contrast, the present-day Bush-Rice-Hill 
appeasement policy toward China and North Korea, which 
preferentially allows China to put the Korean Peninsula under its 
control, appears to be something opposite to that agreement. 
Coincidentally, McCain cites Roosevelt as the politician he respects 
most. If McCain wins, pro-Japanese Republicans, including Armitage, 
 
TOKYO 00000876  016 OF 019 
 
 
will come back to the official political scene. The vice president, 
the secretary of state, the secretary of defense, and other key 
officials for the White House and Pentagon may be chosen from among 
those who attach importance to Japan. 
 
On Jan. 8, 1990, as a former chief of the Cabinet Security Affairs 
Office, I attended a meeting of high-level defense officials from 
Japan and the U.S. held at the official residence of then Ambassador 
to Japan Armacost and wrangled with McCain, who also jointed the 
meeting as chair of the U.S. Senate Foreign Relations Committee. 
McCain, who was short but had a tough and masculine face, sharply 
criticized Japan's lack of efforts to defend itself. He even posed 
this question to the Japanese side: "What if the U.S. Congress 
resolves to abandon the Japan-U.S. Security Treaty?" 
 
I then told McCain: "I am in support of the security treaty, but if 
the U.S. notifies Japan it is scrapping it, Japan will then without 
delay amend the Constitution introduced by General MacArthur and go 
nuclear." McCain said, "Well, what do you think I should do?" I then 
answered him bluntly: "Stay out of this matter." To my surprise, 
McCain, who is known as a person of violent temperament, accepted my 
impolite advice, saying, "That is a frank opinion. I'll do so." I 
was struck by his broad-mindedness. Since then I have had a high 
opinion of him. 
 
(8) Defense Ministry to designate Nago City, Ginoza Village as 
eligible for subsidies in return for bearing base-hosting burden 
 
Asahi online (Full) 
March 31, 2008, 1: 37PM 
 
The Defense Ministry yesterday designated Nago City and Ginoza 
Village in Okinawa Prefecture as municipalities eligible for 
subsidies to be provided in return for accepting the base-hosting 
burden accompanying the realignment of U.S. forces in Japan. The 
ministry is expected to provide the two public entities with 
subsidies for FY2007 and FY2008 in April or later. 
 
On March 15, the environmental impact assessment started off Henoko 
in Nago City in preparation for the construction of an alternative 
facility to the U.S. Marine Corps Futenma Air Station. Given this, 
the Defense Ministry now judges Henoko as fulfilling the condition 
for receiving subsidies. The ministry had excluded Henoko from the 
list of subsidy-recipient municipalities because of its opposition 
to the government's relocation plan, but it has made a policy switch 
in order to solicit the local community' cooperation for the 
relocation plan. 
 
(9) Ginowan City Assembly rejects "peace fund ordinance," creating 
"barrier" for mayor before his visit to U.S. for direct appeal; 
Persuasion of assembly essential 
 
RYUKYU SHIMPO (Page 24) (Full) 
March 31, 2008 
 
By Yoko Shima, Ginowan 
 
The Ginowan City Assembly (chaired by Kosuke Iha) in its regular 
March session has voted down the city's proposal to establish a 
"peaceful city creation fund ordinance." The municipal assembly had 
already voted down twice the option of funding visits to the United 
States (by the mayor). The assembly's latest decision has dealt an 
 
TOKYO 00000876  017 OF 019 
 
 
especially serious blow to Mayor Yoichi Iha, who was planning to 
address the need to eliminate the dangerous nature of MCAS Futenma 
and to visit the United States shortly by using the envisioned fund 
composed of donations. The municipal government is considering a 
visit to the United States (by Mayor Iha) in around July, which 
requires the persuasion of the city assembly. Future developments 
remain to be seen. 
 
No additional financial burden 
 
The envisioned ordinance was designed to place donations from within 
and outside the city in the general account to use them in 
disseminating information on the dangerous nature of Futenma Air 
Station and in visiting the United States. The municipal government 
proposed it as a step to address the base issue without placing an 
extra financial burden on the city. 
 
The approach of establishing a "donation ordinance" to allow a local 
government to raise donations from around the country for specific 
projects is now drawing much attention. Under the system, local 
governments present policy options, such as natural conservation and 
environmental measures, for prospective donors. Yasuoka Village, 
Nagano Prefecture, known for its community-based services, is a 
pioneer in this field. According to Japan Donation Market and 
Company (based in Tokyo), 33 local governments have established such 
ordinances. Strictly speaking, a donation ordinance does not apply 
to Ginowan, where there is the only one option of disseminating 
information on problems associated with Futenma Air Stations. 
Nevertheless, it was epochal in the sense that people from within 
and outside the city would be allowed to financially support the 
municipal government's policy. The municipal government also 
intended to play up the ordinance in anticipation of the 
introduction of the so-called "hometown tax scheme." 
 
Violation of safety standards 
 
In fiscal 2005 and 2006, the Ginowan City Assembly rejected funding 
visits to the United States by Mayor Iha, saying that requests must 
be first made to the central government and that positive results 
could not be expected. Iha was able to visit the United States in 
fiscal 2005 owing to contributions from local residents. However, 
the travel by the municipal workers who accompanied Iha to the 
United States was not clqEA:#zl 
business. 
 
The municipal government has repeatedly pointed out that the 
conditions of Futenma Air Station are more dangerous than those of 
bases in the United States. The city obtained last year the MCAS 
Futenma Master Plan specifying the establishment of airfield clear 
zones where citizens' houses must not be constructed. Despite that, 
the U.S. military has been allowing Futenma Daini (No. 2) Elementary 
School and citizens' houses to continue existing within the clear 
zones in violation of the U.S. safety standards. Mayor Iha is trying 
to aim for the early return of MCAS Futenma by bringing the 
violation of the U.S. safety standards to the attention of 
Washington. 
 
The city is even mulling legal action against the United States over 
this issue. Before doing so, the city thinks it is necessary to 
directly appeal to the U.S. Department of Defense and the Pacific 
Command in Hawaii. 
 
TOKYO 00000876  018 OF 019 
 
 
 
The overwhelming view in the city assembly that voted down the fund 
ordinance was that if a visit to the United States was necessary, 
(donations) should be placed in the general account and (the mayor) 
should persuade the city assembly first. The persuasion of the city 
assembly lies as a task for Iha in his second term. 
 
(10) Defense Ministry panel recommends direct procurement, bypassing 
trading houses 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 29, 2008 
 
A procurement-reform panel in the Defense Ministry yesterday 
finalized a set of recommendations on defense hardware procurement. 
The report suggests directly procuring defense equipment from 
foreign manufacturers, bypassing domestic trading houses. The panel 
will submit the report to the government's Council on Defense 
Ministry Reform to be called next week. The Defense Ministry will 
implement the recommended measures one by one starting next fiscal 
year. 
 
A series of scandals have surfaced in connection with the 
procurement of defense equipment from overseas, including a bribery 
case involving former Administrative Vice Defense Minister Takemasa 
Moriya and the padding of prices for overseas products by Yamada 
Corp., a defense trading firm, and other trading houses. Reflecting 
on these scandals, the Defense Ministry will carry out measures to 
(1) ask manufacturers for estimates; (2) assign more procurement 
experts overseas; and (3) double the penalties for padding bills. 
 
The panel had studied the possibility of completely bypassing 
trading houses, but it has now judged that in some cases, 
procurement through a trading firm costs less, in terms of long-term 
expenses, including costs for repairing and component replenishment. 
The report advises the ministry to choose a cheaper means -- direct 
procurement or procurement through a trading house. The report also 
sets the goal of reducing the ministry's total spending by 15 
PERCENT  by FY2011 as a result of thoroughly slashing costs in the 
process from development through retirement of equipment, for 
instance, by introducing a package-procurement system. 
 
Key points in reform of defense procurement 
? Increase direct contacts with foreign manufacturers by checking 
costs in advance, explaining the bidding process in English, and by 
cultivating human resources. 
? Establish a department responsible for the procurement of defense 
equipment from overseas in April 2009. 
? Increase the number of procurement experts stationed in the U.S. 
from the current three to 10. 
? Employ certified public accountants and former trading company 
employees. 
? Double the penalties for overcharging 
? Incorporate in the contract a special provision to enable the 
ministry to ask overseas manufacturers for estimates. 
? Establish in April 2009 a department that administrates total 
costs needed for developing, purchasing, and maintaining mainstay 
equipment. 
? Reduce total costs by 15 PERCENT  below the level in FY2006 by 
FY2011. 
 
(11) Yokosuka slain taxi-driver case: Footage showing man resembling 
 
TOKYO 00000876  019 OF 019 
 
 
U.S. deserter found in tapes on security cameras near Shinagawa 
Station 
 
SANKEI ONLINE (Full) 
March 31, 13:23 
 
Through its investigations, the Yokosuka Police Station found 
earlier today footage on a security camera near JR Shinagawa Station 
showing a person resembling the 22-year-old U.S. sailor stationed at 
the Yokosuka Naval Base who is now in the custody of the U.S. Navy 
for desertion. JR Shinagawa Station is the place where Masaaki 
Takahashi, 61, a Shinagawa Ward, Tokyo, taxi driver who was slain in 
Yokosuka, Kanagawa Prefecture, was believed to have picked up his 
last passenger. 
 
The U.S. sailor has already hinted at his involvement in the case to 
a friend. Before long, the Yokosuka Police Station's investigation 
taskforce intends to formally request the U.S. military's 
cooperation under the Japan-U.S. Status of Forces Agreement to allow 
it to question the sailor as the primary witness, with the aim of 
uncovering the complete details of the incident. 
 
It has been found through the investigation that Takahashi picked up 
his last passenger at around 7:30 p.m. on March 19 near JR Shinagawa 
Station. The investigation taskforce has been conducting the 
investigation, believing that the passenger fled the scene after 
stabbing Takahashi over a payment dispute. The police have analyzed 
tapes on security cameras near Shinagawa Station and found footage 
showing a man believed to be the U.S. sailor. 
 
SCHIEFFER