VZCZCXRO7657
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1030/01 1060807
ZNR UUUUU ZZH
P 150807Z APR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3459
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 9659
RUEHFK/AMCONSUL FUKUOKA 7282
RUEHOK/AMCONSUL OSAKA KOBE 0953
RUEHNAG/AMCONSUL NAGOYA 5695
RUEHKSO/AMCONSUL SAPPORO 7876
RUEHBJ/AMEMBASSY BEIJING 2828
RUEHUL/AMEMBASSY SEOUL 8850
RUCNDT/USMISSION USUN NEW YORK 9368

UNCLAS SECTION 01 OF 07 TOKYO 001030 
 
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 04/15/08 
 
 
INDEX: 
 
(1) Government to automatically withhold medical insurance premiums 
from pension benefits of very elderly starting today; Dismay 
widespread due to government's lack of effort to publicize new 
system (Tokyo Shimbun) 
 
(2) Japan adrift: Time to act to make future bright (Nikkei) 
 
(3) Former LDP Secretary General Nakagawa: Prime Minister Fukuda 
should convey his own views to public (Nikkei) 
 
(4) Kazamidori (Weathervane) column: Need for six-party talks on 
Burma (Nikkei) 
 
ARTICLES: 
 
(1) Government to automatically withhold medical insurance premiums 
from pension benefits of very elderly starting today; Dismay 
widespread due to government's lack of effort to publicize new 
system 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
April 15, 2008 
 
The government begins today withholding medical insurance premiums 
from pension benefits of those 75 and over under the very elderly 
medical system. The system has already created confusion due to 
miscalculated insurance premiums, the imperfect delivery of new 
insurance cards, and other factors. Further, the government's 
efforts to publicize the new system have been insufficient. Dismay 
and discontent are widespread among elderly people. 
 
Under the new system, individuals first take out medical insurance 
in their respective prefectures, and all individuals pay insurance 
premiums in principle. Those who are dependents of their children 
with corporate insurance and those working at companies have been 
forced to leave employees' health insurance. Those with National 
Health Insurance have also shifted to this system. 
 
In the case of a couple, the husband or wife joins this system when 
that person turns 75, making the two pay premiums separately. As 
seen in miscalculations by municipalities, the deduction and 
exemption system is also quite complicated. 
 
The new system is designed to cut medication and other types of 
waste by having physicians in charge give comprehensive medical 
treatment to patients with chronic illnesses, such as diabetes, 
dementia, and high blood pressure. A system in which people can 
receive examinations and treatment as many times as needed at fixed 
monthly fees has also been introduced. 
 
This has resulted in the widespread misconception that very elderly 
people will not be able to consult doctors freely. The system is now 
drawing fire in various parts of the country as a scheme ignoring 
the elderly. 
 
The system aims at curbing medical expenses by increasing 
transparency in medical benefits and fees by separating those 75 and 
older, whose healthcare costs are on the rise. 
 
The system costs 1.8 trillion yen, and 50 PERCENT  of it is funded 
 
TOKYO 00001030  002 OF 007 
 
 
by tax money, like the old health insurance system for the elderly, 
10 PERCENT  by premiums by the elderly, and the remaining 40 PERCENT 
 by premiums by younger generations. 
 
The Ministry of Health, Labor and Welfare (MHLW) has placed little 
emphasis on explaining the system, taking the position that the 
burden to be born by the elderly will be the same level as before. 
In reality, the system puts additional burdens on 2 million people 
who have been dependents of their children and others, though there 
are reduced rates and exemptions. It also means greater burdens for 
the majority of low-income earners in urban areas, which have been 
holding down insurance premiums by putting taxes in the National 
Health Insurance account. 
 
Ninety-nine percent of people over 75 have paid national insurance 
premiums. Still, there is strong discontent about the government 
automatically withholding medical insurance premiums from pension 
benefits, given the possibility that the government has not paid out 
pension benefits correctly due to its pension-record mismanagement. 
 
The MHLW has played up the system's advantage, saying that the 
elderly do not have to go to financial institutions to pay their 
premiums. The ministry's awareness is a far cry from dispelling a 
sense of distrust in the automatic withdrawal system. 
 
(2) Japan adrift: Time to act to make future bright 
 
NIKKEI (Page 1) (Abridged) 
April 15, 2008 
 
Prescriptions for Japan: 
 
? Be aware of costs as an aging society 
? Become a country with sustainable economic growth that provides 
"mid-level welfare with mid-level burden" 
? Handle social security reform as suprapartisan policy task 
 
Vibrant Asia. Changing Europe. In contrast, Japan. . . . While other 
countries of the world are making brisk moves, Japan appears to be 
alone and inward-looking. Japan appears not powerful enough to bring 
about change. Japan seems adrift. But Japan should not make its 
future gloomy. 
 
Nursing homes for elderly people with dementia have been built one 
after the other in Kasumigaura City, Ibaraki Prefecture. Each home 
accommodates some 200 elderly persons. What is going on those homes 
at present is "what was never imagined at the beginning," said an 
official from the Ministry of Health, Labor and Welfare. 
 
In April 2006, the government made revisions to the nursing home 
system; as a result, those who are allowed to live in nursing homes 
are now limited to local residents living in the area. But a city 
government official in charge noted: "Nearly half of the residents 
in nursing homes even now are from Tokyo. 
 
Overcrowded cities suffer a shortage of nursing homes. Meanwhile, 
local cities are unable to afford the costs for them to pay for 
elderly people. 
 
Japan is aging faster than any other country. One out of six elderly 
persons needs nursing care. The population of people aged 65 or 
above is 27 million, but this population will expand to 36 million 
 
TOKYO 00001030  003 OF 007 
 
 
in 2020. However, the social welfare systems for pensions, medical 
treatment, and nursing care are not necessarily functioning 
properly. 
 
"We are sorry to say that there will be no consultations today." 
This kind of announcement is increasingly heard in hospitals across 
the country. According to a survey by an industry organization of 
2,800 hospitals, 521 hospitals said they had suspended 
hospitalization, and 439 hospitals said they closed some departments 
for consultations. 
 
The number of patients is on the rise, but the number of doctors is 
on the decrease, and the health insurance system lacks funds. The 
sharply falling birthrate has made it difficult for the generations 
now working to receive the same pension amount as the current 
elderly receive. At the same time, there may be organizations that 
are of no use, and the current way of managing the systems may be 
wrong. If the systems are managed a little more efficiently, money 
may be shifted to the area of greatest need for funds. What is clear 
at present is that the situation in Japan is serious and that 
revenue sources are limited. Because Japan has left the (social 
welfare) problem unattended for many years, prescriptions are 
limited. 
 
What are politicians doing to deal with that problem? At the World 
Economic Forum in Davos early this year, Prime Minister Fukuda, 
after introducing himself, said, pointing to former State Minister 
in Charge of Economic and Fiscal Policy Heizo Takenaka, who was also 
attending the forum: "All reforms have been already done by this 
person. Nothing has been left for me to do." 
 
Politics needs to emerge from its indecisiveness 
 
It is politicians' responsibility to fix the situation. The 
Organization for Economic Cooperation and Development's (OECD) 
Secretary General Gurria said: "Because of its falling birthrate and 
 
SIPDIS 
aging population, Japan is placed in a more disadvantageous 
situation than other countries." When asked what she would do to 
deal with that, Gurria said: "I wouldn't cite 'political 
difficulties' to do nothing in order to justify myself." 
 
On April 11, the government and the ruling parties agreed to the 
prime minister's last-ditch proposal to move revenue sources set 
aside for road construction into the general account. This agreement 
is seen as a byproduct of the divided Diet, but it could lead to 
moving reform forward. It is a good thing if funds used for social 
welfare will expand. Debate on a method to finance basic pensions 
entirely from tax revenue, for instance, the consumption tax, 
instead of insurance premiums is gaining momentum. 
 
Increasing the burden does mean bullying the weak. Currently, one 
out of five is an elderly person, but in 50 years, half the 
population will be elderly. Politicians must explain why it is 
impossible for younger generations alone to bear the social welfare 
burden. A growing population leading to economic growth and 
increased tax revenues is a thing of the past. Japan, which is no 
longer a rising country, needs to sustain economic growth by making 
the best use of the market system and globalization. For that end, 
it is necessary for Japan to drastically shift its current social 
welfare systems from low burden and mid-level welfare to mid-level 
burden and mid-level welfare. 
 
 
TOKYO 00001030  004 OF 007 
 
 
Politicians need to select items that will not be used as subjects 
for political struggles and need to be handled in a suprapartisan 
manner. At the top of them would be social welfare reform. If 
politicians are unable to do so, it will be impossible for us to 
expect political leadership. 
 
(3) Former LDP Secretary General Nakagawa: Prime Minister Fukuda 
should convey his own views to public 
 
NIKKEI (Page 2) (Full) 
April 15, 2008 
 
Questioner: The criticism is that there is "a political slump" due 
to paralysis in policy-making caused by the divided Diet. 
 
Nakagawa: One of the causes of the confusion is internal strife in 
the Democratic Party of Japan (DPJ), which dominates the House of 
Councillors, with an eye on its presidential election (in 
September). When one group in the DPJ tries to hold discussions with 
us, the other group kills it. The DPJ has repeatedly done such a 
thing. 
 
Questioner: The government and ruling parties have agreed on a plan 
to integrate the revenues from road-related taxes into the general 
account starting in fiscal 2009. 
 
Nakagawa: With this plan, we will seek discussions through the end 
of April, but chances are that the DPJ will not accept our plan. 
Unless the DPJ comes to the negotiating table, we won't be able to 
find middle ground. 
 
Questioner: Are there any measures to resolve problems caused by the 
divided Diet? 
 
Nakagawa: The latest one-on-one debate (between Fukuda and DPJ head 
Ichiro Ozawa) was good, wasn't it? The prime minister's thoughts 
were felt. The leaders should conduct such a debate every day. It is 
good to show the public what is really going on and what the two 
leaders are thinking. Public opinion may move the stalled 
consultations between the ruling and opposition parties, including 
the DPJ. 
 
Questioner: Recently, the prime minister himself is trying to break 
the impasse in policy consultations. 
 
Nakagawa: Since the prime minister originally intended to come out 
with various reforms in April, materials have been prepared. If he 
directly explains his thoughts to the public and if he holds on to 
his resolve for reforms, his grip on the party will strengthen. 
 
Questioner: Some say that the Fukuda cabinet should be shuffled as 
early as possible because Prime Minister Fukuda retained most of the 
ministers of the former Abe cabinet. 
 
Nakagawa: I have heard people say this. (Waiting for the proper 
timing) the prime minister should form his own (cabinet). It is 
usually difficult to shuffle a cabinet while the Diet is in 
session. 
 
Questioner: In order to force an early dissolution of the House of 
Representatives for a snap election, the DPJ has drawn a clear 
contrast with the government and ruling coalition. 
 
TOKYO 00001030  005 OF 007 
 
 
 
Nakagawa: The Lower House members should serve in their posts until 
their terms expire. Some in the LDP say that the Lower House should 
not be dissolved before the end of the next year's G-8 summit. (In 
connection with his remark that was taken to mean he had mentioned a 
possible dissolution of the Lower House) Former Prime Minister 
Junichiro Koizumi angrily dismissed the idea. 
 
Questioner: How about the possibility of a grand coalition (between 
the LDP and DPJ), which once hit a roadblock, or a partial 
coalition? 
 
Nakagawa: In an effort to stabilize politics, we will respond to any 
measures. However, nothing is likely to happen before the end of the 
LDP presidential race. 
 
Questioner: How about a political realignment? 
 
Nakagawa: What I said includes that. 
 
(4) Kazamidori (Weathervane) column: Need for six-party talks on 
Burma 
 
NIKKEI (Page 2) (Full) 
April 13, 2008 
 
By Hisayoshi Ina, senior editorial writer 
 
I want the readers to understand why I am using the old name Burma 
instead of Myanmar, which the Japanese media prefer. 
 
My purpose in writing this column is to urge the Japanese government 
to shift its current policy, which has resulted only in coddling the 
military government that runs Burma. The reason is because one of my 
proposals would be to change from using Myanmar, the name given by 
the military junta, to the old name Burma. 
 
I would like to list three basic points that are preconditions for 
my argument: 
 
1) A socialist government ran Burma for 26 years, but was toppled in 
1988 by a pro-democracy group. However, the Burmese military smashed 
the movement and assumed full power to run the country. 
 
2) In 1990, the National League for Democracy led by Aung San Suu 
Kyi won the general election. Ignoring the result of the election, 
the military junta has continued to stay in power since then. 
 
3) The military government will conduct a national referendum on May 
10 to ask the public to approve a newly drafted constitution. The 
new constitution approves the status quo in the country. Based on 
the new code, the military junta plans to hold a general election in 
¶2010. 
 
The website of Japan's Foreign Ministry states that in order to 
promote democratization and improved human rights in "Myanmar," 
Japan will persistently urge both the current government and the 
democratic forces, including Aung San Suu Kyi, to hold a dialogue. 
Japan will continue to maintain relations with both sides, so as to 
not isolate "Myanmar." 
 
That is the way the Japanese government deals with Burma 
 
TOKYO 00001030  006 OF 007 
 
 
 
Perhaps taking such an ambiguous strategy in the 1990s was 
unavoidable. 
 
Japanese conservatives have long felt close to Burma, which 
traditionally has been a pro-Japanese country. Politicians were 
concerned that if pressure was applied, Burma would move toward 
China. 
 
Japan's strategy was not only totally ineffective, it instead 
worsened the situation. That was demonstrated by last September's 
demonstrations, and their suppression, and by the fatal shooting of 
Japanese journalist Kenji Nagai. 
 
It is time for the Japanese government to admit to a failure in its 
policy and change it. It will be too late to do so after Burma's 
national referendum. There is a view calling for policy shift in the 
mainstream of the Foreign Ministry. Conditions at home and abroad 
have been met. 
 
Firstly, Burma's insincere response to the Nagai incident and North 
Korea's response to the abduction issue are exactly the same. If 
Japanese conservatives, who take a tough stance toward the North, 
continue to back the military junta in Burma, it means that their 
policy lacks consistency. 
 
Secondly, there is little chance now that Burma will be urged to go 
over to the Chinese side. China itself is busy with dealing with its 
own Tibetan problem prior to the Beijing Olympics and Shanghai 
Exposition. Beijing has no breathing room to stand up for Burma's 
military junta, which is being criticized by the international 
community. 
 
If Tokyo urges Beijing to hold six-party talks on the 
democratization of Burma, it would be difficult for it to refuse the 
proposal. The six countries would be Burma, China, India, Japan, 
Thailand, and the United States in alphabetical order. 
 
When I proposed this idea at an international conference, a India, 
the United States, the Association of Southeast Asian Nations, and 
the European Union be participants in the talks. 
 
The suggestion was that the EU, which has taken a tougher stance 
toward the human right issue than Japan, be included in the group of 
six countries, and that Japan be excluded. I see in the suggestion 
the complicated mind of a Chinese intellectual. 
 
Like the six-party talks on North Korea's nuclear programs, the 
framework of this kind of talks is premised on "same bed, but 
different dreams" notion -- the north wind policy and sunshine 
policy groups. The framework functions with the two groups. 
 
To that end, the north wind policy is needed at first. Lure Burma's 
military government to talks after stopping the north wind. 
 
The U.S policy of freezing funds to North Korea was effective. The 
North returned to the negotiating table after the freeze was lifted. 
A joint statement was issued, although it was insufficient. But the 
wind stopped, and the North began to ignore the accord. 
 
The United States, Australia, and Canada have already taken such 
financial measures to suspend trade by individuals and corporations. 
 
TOKYO 00001030  007 OF 007 
 
 
If Japan joins the sanctions, similar to those that were used 
against North Korea, the effectiveness would increase. 
 
The United Nations and the governments and media of major countries 
use the word Burma and not Myanmar. The U.S. and British governments 
and the British Broadcasting Corporation (BBC) also use Burma. If 
Japan quits using the word Myanmar and substitutes Burma, the wind 
will be once more blowing against the military junta. My column is a 
test for Japan to meet that challenge. 
 
SCHIEFFER