VZCZCXRO3091
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1096/01 1120824
ZNR UUUUU ZZH
P 210824Z APR 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3628
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 9757
RUEHFK/AMCONSUL FUKUOKA 7377
RUEHOK/AMCONSUL OSAKA KOBE 1051
RUEHNAG/AMCONSUL NAGOYA 5772
RUEHKSO/AMCONSUL SAPPORO 7973
RUEHBJ/AMEMBASSY BEIJING 2916
RUEHUL/AMEMBASSY SEOUL 8935
RUCNDT/USMISSION USUN NEW YORK 9450

UNCLAS SECTION 01 OF 09 TOKYO 001096 
 
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 04/21/08 
 
 
INDEX: 
 
(1) Poll on Fukuda cabinet, political parties, gas tax (Asahi) 
 
(2) Poll on Fukuda cabinet, political parties (Nikkei) 
 
(3) Fukuda, Lee play up new era in Japan-ROK relations in talks 
(Yomiuri) 
 
(4) South Korean president meets with Prime Minister Fukuda; 
Agreement reached to resume EPA talks (Asahi) 
 
(5) Editorial: Court rules SDF dispatch to Iraq unconstitutional 
(Asahi) 
 
(6) In training, U.S. military police officers were taught to take 
U.S. military suspects to U.S. bases ahead of (Japanese 
authorities); Systematic SOFA violation suspected (Okinawa Times) 
 
(7) Japanese tea tastes bitter for students at U.S. Navy Academy 
(Sankei) 
 
(8) FTC searches 13 cargo firms on suspicion of price-fixing cartel 
(Nikkei) 
 
(9) FTC raids 13 companies over air cargo cartel (Asahi) 
 
(10) Aim to counter competitive Western firms likely behind 
price-fixing cartel by 13 air cargo firms (Nikkei) 
 
ARTICLES: 
 
(1) Poll on Fukuda cabinet, political parties, gas tax 
 
ASAHI (Page 2) (Full) 
April 21, 2008 
 
Questions & Answers 
(Figures shown in percentage, rounded off. Bracketed figures denote 
proportions to all respondents. Figures in parentheses denote the 
results of the last survey conducted Mar. 29-30.) 
 
Q: Do you support the Fukuda cabinet? 
 
Yes 25 (31) 
No 60 (53) 
 
Q: Why? (One reason only. Left column for those marking "yes" on 
previous question, and right for those saying "no.") 
 
The prime minister is Mr. Fukuda 17(4) 5(3) 
It's an LDP-led cabinet 29(7) 17(10) 
From the aspect of policies 21(5) 69(41) 
No particular reason 28(7) 7(4) 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP) 26 (31) 
Democratic Party of Japan (DPJ or Minshuto) 22 (20) 
New Komeito (NK) 2 (3) 
Japanese Communist Party (JCP) 2 (1) 
Social Democratic Party (SDP or Shaminto) 1 (1) 
 
TOKYO 00001096  002 OF 009 
 
 
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 41 (39) 
No answer (N/A) + don't know (D/K) 6 (5) 
 
Q: The gasoline tax went down from April 1. The government and 
ruling parties plan to take a second vote in the House of 
Representatives to restore the now-expired rate of provisional 
taxation on gasoline due to a shortfall of tax revenues. Do you 
support the idea of restoring the provisional gas taxation? 
 
Yes 24 
No 63 
 
Q: In April, the government started a new national health insurance 
system for those aged 75 and over. Do you appreciate this new 
system? 
 
Yes 18 
No 71 
 
Q: Which one do you like, Prime Minister Fukuda or DPJ President 
Ozawa? 
 
Fukuda 32 
Ozawa 28 
 
Polling methodology: The survey was conducted Apr. 19-20 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 2,084 persons (58 PERCENT ). 
 
(2) Poll on Fukuda cabinet, political parties 
 
NIKKEI (Page 2) (Full) 
April 21, 2008 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote findings from the 
last survey conducted in March.) 
 
Q: Do you support the Fukuda cabinet? 
 
Yes 29 (31) 
No 59 (54) 
Can't say (C/S) + don't know (D/K) 12 (15) 
 
Q: Which political party do you support or like now? 
 
Liberal Democratic Party (LDP) 38 (40) 
Democratic Party of Japan (DPJ or Minshuto) 29 (30) 
New Komeito (NK) 4 (3) 
Japanese Communist Party (JCP) 4 (3) 
Social Democratic Party (SDP or Shaminto) 2 (2) 
People's New Party (PNP or Kokumin Shinto) 0 (1) 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 
Other political parties 1 (1) 
None 16 (15) 
C/S+D/K 6 (5) 
 
 
TOKYO 00001096  003 OF 009 
 
 
Polling methodology: 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 1,541 households with one or more 
eligible voters were sampled, and answers were obtained from 908 
persons (58.9 PERCENT ). 
 
(3) Fukuda, Lee play up new era in Japan-ROK relations in talks 
 
YOMIURI ONLINE (Excerpts) 
12:05, April 21, 2008 
 
Prime Minister Yasuo Fukuda held a meeting with visiting South 
Korean President Lee Myung Bak earlier today at the Prime Minister's 
Office. It is the first visit to Japan by a South Korean president 
in three years and four months. It is also the first visit since 
reciprocal visits by the two countries' leaders have resumed. 
 
To play up a new era in Japan-ROK relations, the two leaders will 
issue a joint press release spelling out Prime Minister Fukuda's 
visit to South Korea in the second half of this year, an agreement 
on strengthening economic ties, and a policy to cooperate in 
international contributions. 
 
Prime Minister Fukuda started off his meeting with President Lee by 
saying: "The president chose the United States and Japan as the 
destinations for his first overseas trip after assuming office. We 
are grateful for his decision, believing that it reflects the 
president's priority on Japan-ROK relations." In response, Lee said, 
"I hope this will be an extremely productive meeting." 
 
In the meeting, the two leaders agreed to hold a trilateral summit 
once a year among Japan, South Korea and China on a rotational 
basis, and confirmed to hold this year's summit in Japan. 
 
Based on his earlier meeting with U.S. President George W. Bush, 
President Lee is likely to underline the need for Japan, the United 
States, and South Korea to work together. Fukuda and Lee are 
expected to confirm a policy course for the three countries to press 
North Korea for a complete and correct declaration of its nuclear 
programs through the six-party framework. The prime minister is also 
expected to explain the basic policy course that Japan will not 
normalize diplomatic ties with the North until after the nuclear, 
missile and abduction issues are resolved, and seek understanding 
and support for it. 
 
The two leaders are also expected to confirm a plan to hold 
intergovernmental working-level talks in June for resuming talks on 
an economic partnership agreement (EPA), which have been stalled 
since November 2004. 
 
President Lee will probably call for Japan's active efforts to 
granting suffrage in local elections to foreign residents. In 
response, the prime minister is expected to tell the South Korean 
president that he will continue watching closely the future course 
of the ongoing Diet debate. 
 
In addition, the two leaders are likely to agree to expand the 
framework of the working holiday program in which young people can 
stay in each other's country while working from the current 3,600 
persons a year to 7,200 persons in 2009 and then to 10,000 by 2012, 
as well to promote exchanges of students and intellectuals. 
 
TOKYO 00001096  004 OF 009 
 
 
 
(4) South Korean president meets with Prime Minister Fukuda; 
Agreement reached to resume EPA talks 
 
Asahi.com (Excerpts) 
11:35, April 21, 2008 
 
Prime Minister Fukuda met this morning with visiting South Korean 
President Lee Myung Bak at the Prime Minister's Office (Kantei). The 
two leaders agreed to hold working-level talks in June with the aim 
of resuming bilateral Economic Partnership Agreement (EPA) talks, 
which have been suspended for more than three years since November 
¶2004. They confirmed the arrival of the new age for Japan and South 
Korea. Regarding North Korea's nuclear issue, they also shared the 
perception that it is essential for North Korea to declare its 
nuclear programs in a complete and correct manner. They also reached 
a decision for Japan and South Korea, and for Japan, the U.S., and 
South Korea to closely cooperate with each other. 
 
This is the fist visit of a South Korean president to Japan since 
former President Roh Moo Hyun visited Japan in December 2004. Lee's 
visit to Japan marks the resumption of shuttle diplomacy for the two 
countries' leaders to pay mutual visits. Lee and Fukuda agreed that 
Fukuda will visit South Korea later this year. 
 
The two leaders shared the perception that a bilateral Economic 
Partnership Agreement will lead to strengthened economies of their 
countries. They indicated their expectations for expanded mutual 
investment. Lee revealed his intention to consider establishing in 
South Korea an industrial complex manufacturing parts and materials 
for an expansion of investment by Japanese companies. They also 
agreed to hold talks taken part by  both countries' respective 
policy-implementing agencies for small and medium-sized businesses 
and private organizations, sharing know-how on small and 
medium-sized business policy. 
 
Regarding North Korea, the prime minister explained his policy of 
normalizing diplomatic relations at an early date, based on a 
package settlement of the abduction, nuclear and missile issues. The 
president expressed his understanding and support, saying, "I would 
like to cooperate for a settlement of the abduction issue as much as 
I can." The two leaders also agreed to create a framework for 
broad-based dialogue for Japan, the U.S. and South Korea to discuss 
international issues. 
 
Fukuda and Lee also confirmed that Lee will attend a meeting of 
leaders from various countries other than the G-8 nations at the 
July Lake Toya Summit. The two also agreed to strengthen cooperation 
on the environmental and energy issues in Asia and throughout the 
world. They will search for ways to jointly extend assistance to 
Africa as well as to strengthen assistance to developing countries. 
 
Fukuda and Lee also agreed to step up the maximum number of 
participants in the working holiday system to 7,200 in 2009, double 
the present number, and 10,000 in 2012. Following the agreement 
reached during the February summit to map out a concrete program for 
personnel exchanges, they agreed to set up an Exchange Project for 
Japanese and South Korean University Students aimed at helping 1,500 
students over three years, and a Japan-South Korea Joint Research 
Project in the New Age, under which experts from both countries 
jointly conduct studies in such areas as international politics and 
the economy. The prime minister underscored the need to hold a 
 
TOKYO 00001096  005 OF 009 
 
 
Japan-China-South Korea summit. He proposed holding one in Japan 
within the year. South Korea agreed to this proposal. 
 
According to an explanation provided by the Japanese government, the 
ownership of the Takeshima (Dokdo) islets and the demarcation of the 
exclusive economic zone (EEZ) issue were not on the agenda. 
 
(5) Editorial: Court rules SDF dispatch to Iraq unconstitutional 
 
ASAHI (Page 3) (Full) 
April 18, 2008 
 
Is there a noncombat zone in Iraq? Self-Defense Force (SDF) 
personnel are transporting armed U.S. soldiers to Baghdad. How can 
it be possible to say that it is not an act integral to the use of 
force by other countries? 
 
The court yesterday gave a reply to such a simple question regarding 
the dispatch of the Air Self Defense Force (ASDF) to Iraq, which is 
still in a state of conflict. It handed down a negative decision on 
both issues. 
 
It has been four years since the dispatch of the SDF to that country 
started. We believe that those who have long been skeptical about 
the legitimacy of the SDF mission agree with the outcome. 
 
In the lawsuit seeking the suspension of the dispatch filed by more 
than 3,000 people, the Nagoya High Court handed down that ruling. 
 
The plaintiff's demand for the suspension of the SDF dispatch was 
rejected. In that sense, the plaintiffs lost the case, following a 
lower court decision. However, the ruling, referring to the 
relationship between the SDF dispatch and the Constitution, clearly 
rejected the basis of the argument that the Koizumi administration 
adopted in deciding to dispatch SDF troops and the Abe and Fukuda 
administrations have followed. 
 
The ruling pointed out that Iraq is in a state of messy war, going 
beyond the sphere of a simple security issue. In particular, it said 
that the situation in Baghdad, where ASDF troops are operating, is 
so appalling that it can be called a war zone as defined under the 
special law to allow the SDF to provide humanitarian support for 
Iraq's reconstruction efforts. 
 
The Koizumi administration maintained that as there are noncombat 
zones in Iraq, it would be no problem to send SDF troops to such 
areas. According to this argument, Samawah in southern Iraq and 
airports in the capital city are noncombat zones. 
 
The ruling rejected that notion and clearly noted that airlifting 
operations run counter to the special law. The Defense Ministry has 
admitted that though ASDF transport planes had not encountered 
attacks, there were many occasions in which they took action to 
avert danger. Some U.S. military planes have been actually hit. The 
perception of the ruling is convincing. 
 
Another point included in the ruling is that it cannot be helped if 
it is viewed that SDF troops have used force, since airlifting armed 
troops from multinational forces is an act integral to the use of 
force by other countries, in other words, an act in violation of 
Article 9 of the Constitution. 
 
 
TOKYO 00001096  006 OF 009 
 
 
SDF troops have been dispatched based on unreasonable 
interpretations of the Constitution. Asked in the Diet about the 
definition of noncombat zones, then Prime Minister Koizumi 
repeatedly gave a defiant reply, saying, "Areas where SDF personnel 
operate are noncombat zones." 
 
After the ruling was handed down, Chief Cabinet Secretary Machimura 
announced the government policy of continuing the SDF dispatch, 
probably because it was not a final judgment reached by the Supreme 
Court. Even so, the judgment reached by the high court is heavy. 
Both the ruling and opposition camps should launch serious 
discussion with an eye on the withdrawal of SDF troops from Iraq. 
 
Japan's courts have a strong tendency to avoid making decisions 
regarding the Constitution. They are criticized as following the 
government. For that reason alone, the ruling must have come as a 
refreshing surprise to many. 
 
It is the duty of courts to keep tabs on the government and the 
Diet. The Nagoya High Court's ruling reached in an effort to fulfill 
that role has surprised the public. The Supreme Court, which is 
supposed to be the watchdog of the Constitution, must take to heart 
this reality. 
 
(6) In training, U.S. military police officers were taught to take 
U.S. military suspects to U.S. bases ahead of (Japanese 
authorities); Systematic SOFA violation suspected 
 
OKINAWA TIMES (Page 1) (Full) 
April 19, 2008 
 
Two sons of U.S. Marines, who had been caught by a salesclerk for 
allegedly shoplifting in Chatan, were taken to a U.S. base by U.S. 
military police officers. In their training, U.S. Marine police 
officers are instructed on a daily basis to take U.S. suspects into 
custody ahead of prefectural police officers and take them to U.S. 
bases. This was revealed by several sources connected with the U.S. 
Marines in interviews by the Okinawa Times on April 18. 
 
The Japan-U.S. Status of Forces Agreement (SOFA) stipulates that 
outside U.S. military facilities, U.S. military police shall make 
arrests in liaison with Japanese authorities and in so far as such 
is necessary to maintain discipline and order among the members of 
the United States armed forces. U.S. Marine police might have given 
guidance to its members to ignore the SOFA from the stage of 
training. 
 
According to several sources concerned, upon arrival at post, every 
new U.S. Marine police officer is required to take a two-week course 
to learn Japanese laws and other matters from instructors. 
 
SOFA training is governed by the U.S. Marine command legal 
department. In such training, a U.S. military counsel instructs 
personnel to take an accused U.S. service member to a U.S. base even 
if that person was arrested in liaison with prefectural police 
officers. 
 
The training of new members is conducted about twice a year. Similar 
guidance is believed to have been conducted at least until two years 
ago. After completing training, U.S. Marine police officers are 
dispatched to U.S. police headquarters in Camp Foster or branches on 
bases in the northern part of the prefecture. 
 
TOKYO 00001096  007 OF 009 
 
 
 
A person concerned said: "The U.S. military regards its service 
members as property of the military. They want to take U.S. suspects 
into custody before Japan arrests them and claim the custody of U.S. 
property." Pointing out a case in which Japanese guards carried 
firearms in civilian areas, he also said: "Many U.S. military police 
officers do not know the SOFA in detail. This incident in which U.S. 
military police officers took U.S. military family members to a U.S. 
base occurred possibly because some supervisors interpreted (the 
SOFA) to serve the interests (of the U.S. military)." 
 
 (7) Japanese tea tastes bitter for students at U.S. Navy Academy 
 
SANKEI (Page 3) (Full) 
April 20, 2008 
 
 (Hidenari Yamamoto, Annapolis) 
 
Genshitsu Sen, 85, former grand master of the Urasenke Chado (tea 
ceremony), visited the U.S. Naval Academy in Annapolis to talk about 
the tradition of Japanese tea before students there. The visit 
followed a decision made that a visit to Urasenke Konnichian (in 
Kyoto) will be incorporated in the school's training program in 
Japan starting this May. In the school, students are trained to 
become senior members of the U.S. Navy and the Marine Corps. About 
200 persons in the school experienced the tradition of tea. 
 
Sen interpreted the art of the tea ceremony as "intended to learn 
how to keep up our mental stability." A student who served tea 
commented: "Through the tea ceremony, I learned that the host and 
the guests respect each other." But many students said the tea they 
had for the first time tasted bitter. 
 
(8) FTC searches 13 cargo firms on suspicion of price-fixing cartel 
 
NIKKEI (Page 1) (Full) 
Evening, April 16, 2008 
 
The Fair Trade Commission (FTC) searched the offices of 13 cargo 
firms today on suspicion of violating the Antimonopoly Law for 
forming a cartel on air cargo charges for outbound flights from 
Japan. The 13 firms include three major freight forwarding firms: 
Nippon Express Co., Kintetsu World Express Inc., and Yusen Air & Sea 
Service Co. The investigation also included the Tokyo office of the 
Japan Aircargo Forwarders Association (JAFA) (based in Chuo-Ward, 
Tokyo). 
 
Officials searched about 20 main and branch offices of the 13 firms, 
including Nishi-Nippon Railroad Co. 
 
According to informed sources, since 2004 the 13 firms are suspected 
of agreeing to add the increase in air carriers' fixed fuel 
surcharges to their fees and to pass this on to their clients. They 
also allegedly agreed to introduce unified charges for safety 
inspections. 
 
The 13 firms reportedly formed the cartel at meetings of the 
International Department of JAFA, to which they all belong 
 
The firms in question are air freight forwarders, and their combined 
share of the domestic market is about 75 PERCENT . The domestic 
market for international air cargo services, including international 
 
TOKYO 00001096  008 OF 009 
 
 
parcel delivery service, is worth approximately 630 billion yen. The 
European Commission similarly raided major European cargo firms last 
October over international air cargo. 
 
The three major firms have said that they will fully cooperate with 
the FTC investigation. 
 
(9) FTC raids 13 companies over air cargo cartel 
 
ASAHI (Page 13) (Full) 
Evening, April 16, 2008 
 
The Fair Trade Commission (FTC) on April 16 raided 13 distribution 
companies, including three leading companies -- Nippon Express Co., 
Kentetsu World Express Inc. and Yusen Air & Sea Service Co., an 
affiliate of Nippon Yusen K.K., all located in Tokyo -- on suspicion 
of forming a price cartel over freight for international air cargo 
dispatched from Japan in violation of the Antimonopoly Law (AML). 
 
Other distribution companies that were raided include Nishi-Nippon 
Railroad Co. (Fukuoka), Hankyu Express International Co. (Osaka), 
Nissin Corporation (Kanagawa), and their industry body Japan 
Aircargo Forwarders Association (JAFA). About 20 of their head 
offices and branch offices were raided. 
 
The international air cargo market in Japan, including international 
package-delivery service, is estimated at approximately 640 billion 
yen. The top three companies' share is reportedly about 50 PERCENT 
. 
 
International cargo transportation for imports and exports is 
approximately 1.6 million tons a year each, accounting for 
approximately 30 PERCENT  of total trade. Main items of 
international air cargo are machinery components. 
 
At issue is the business activity of distribution companies 
consigned with small cargo shipments, such as electronic equipment, 
by a number of customers, such as automakers and leading electronic 
appliance manufacturers, and consigning them to air carriers after 
repacking the cargo into containers for each consignee.  These 
companies are called freight forwarders. 
 
Forwarders buy cargo space in an airplane from an air carrier and 
take containers aboard the plane. The freight includes an additional 
fuel surcharge set by air carriers to cover a rise in crude oil 
prices. Forwarders pay the combined amount to air carriers. 
 
According to an informed source, distribution companies are 
suspected of having reached an agreement in 2004 to pass on to 
consigners the rise in fuel surcharges when they negotiate with 
customers on prices and to classify that charge as an "additional 
fuel surcharge." 
 
In Japan, both international air cargo freight and fuel surcharges 
set by air carriers are exempt from the AML. However, the FTC 
believes that distribution companies passed part of the fuel 
surcharges onto consignors in a lockstep manner, taking advantage of 
this exemption. 
 
The U.S. Justice Department and the European Commission (EC) are 
investigating the case, suspecting that leading international 
freight forwarders formed a price cartel over cargo freight and fuel 
 
TOKYO 00001096  009 OF 009 
 
 
surcharges imposed on cargo transportation. 
 
The three leading companies said that they would cooperate with the 
FTC in their investigation into the matter. 
 
(10) Aim to counter competitive Western firms likely behind 
price-fixing cartel by 13 air cargo firms 
 
NIKKEI (Page 21) (Full) 
Evening April 16, 2008 
 
The Fair Trade Commission (FTC) raided Nippon Express Co., Kintetsu 
World Express Inc., and Yusen Air & Sea Service Co. on suspicion of 
violating the Antimonopoly Law. These three major freighters just 
established a new air cargo company on April 1 with All Nippon 
Airways Co. (ANA) and another firm. 
 
Leading Western companies, such as DHL Japan, are competitive in the 
domestic business of outbound small-lot freight forwarding from 
Japan. With the aim of countering such Western forwarders, the new 
firm was established. The (13) companies (raided by the FTC today) 
apparently aimed to set the same level of fares for their cargo 
services in order also to compete with foreign cargo companies. 
 
According to informed sources, responsible members from the 13 firms 
discussed the margin of a fare hike and the timing for the hike in 
meetings of the International Department of the Japan Aircargo 
Forwarders Association. 
 
In Europe, the European Commission also investigated major 
international freight forwarding firms last October. As it stands, 
watchdogs across the world are keeping a close tab on a price-fixing 
cartel on international air cargo. 
 
SCHIEFFER