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UNCLAS SECTION 01 OF 09 TOKYO 001115 
 
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 04/23/08 
 
Index: 
 
Foreign affairs: 
1) Government decided to add 36.4 billion yen in new yen loans to 
Iraq, making total commitments of 276.8 billion yen  (Asahi) 
2) Based on UN resolution, Fukuda Cabinet approves extra sanctions 
against Iran for nuclear program  (Mainichi) 
3) Government to try to reject entry into Japan of Reporters without 
Borders, a pro-Tibet group that plans Olympic protests during torch 
relay in Nagano  (Asahi) 
4) First Japan, China, South Korea summit meeting planned for 
September, with discussions to center on North Korea issues 
(Mainichi) 
5) Non-partisan group of lawmakers planning trip to Pyongyang 
(Nikkei) 
6) Police to raid PCI today over scam in contracted cleanup of WWII 
chemicals and weapons left in China  (Sankei) 
 
Diet affairs: 
7) Government, ruling parties decide to hold Lower House override 
vote on April 30, reinstating gasoline and other provisional taxes 
that expired a month before  (Asahi) 
8) Ruling camp considering slight extension of Diet session in order 
to allow more override votes of key bills likely to be killed in the 
Upper House  (Yomiuri) 
9) Democratic Party of Japan (DPJ) split over whether to file 
censure motion against Fukuda Cabinet for override vote on 
provisional tax rate bill  (Yomiuri) 
10) Voices calling for former Prime Minister Koizumi to "explain" to 
the public controversial elderly medical-care plan that his 
administration introduced  (Mainichi) 
 
11) Former Defense Minister Koike expresses desire to link up with 
members of the former Japan New Party  (Asahi) 
12) DPJ comes up with a counterproposal to Fukuda administration's 
Consumer Affairs Agency  (Mainichi) 
 
Defense affairs: 
13) Host-Nation Support Special Measures Agreement to be rejected by 
the Upper House but as treaty will come into effect by Lower House 
approval on the 25th  (Tokyo Shimbun) 
14) Defense Minister Ishiba unhappy with ASDF chief's casual 
statement about issue of constitutionality of Iraq dispatch  (Tokyo 
Shimbun) 
15) Ruling and opposition camps reach agreement on basic law on 
space that would allow use of space for defense purposes 
(Mainichi) 
 
Articles: 
 
1) Japan to offer 36.4 billion yen in fresh yen loans to Iraq 
 
ASAHI (Page 4) (Excerpts) 
April 23, 2008 
 
The Ministry of Foreign Affairs (MOFA) yesterday announced that it 
would offer Iraq a total of 36.4 billion yen in yen loans for 
reconstruction of that country. The new yen loans will cover a water 
and sewerage project (worth some 34.2 billion yen) for the Kurdish 
region in northern Iraq and preliminary work (worth some 2.14 
billion yen) for a plan to improve the sewerage facility in Iraq's 
capital of Baghdad. 
 
TOKYO 00001115  002 OF 009 
 
 
 
This new yen loans are part of the assistance amounting to 5 billion 
dollars (some 515.7 billion yen) Japan promised in 2003. Including 
fresh yen loans this time, the yen loans Japan provides to Iraq will 
total 276.8 billion yen. 
 
In Iraq, the water and sewerage facilities have been deteriorated 
due to economic sanctions and disputes. Particularly in the Kurdish 
region that was hard oppressed in the Hussein regime, water supply 
is restricted to one hour per day in some areas. In the summer of 
2007, cholera spread primarily because of declining quality of 
drinking water. 
 
2) Government approves at cabinet meeting additional sanctions 
against Iran 
 
MAINICHI (Page 2) (Full) 
April 23, 2008 
 
Concerning Iran's nuclear issue, the government at a cabinet meeting 
on April 22 adopted economic sanctions intended to freeze the assets 
of 12 organizations and 13 individuals that have been newly 
designated by the United Nations Security Council (UNSC). 
 
The move is in response to the third resolution on sanctions on 
Iran, which the UNSC adopted on March 3. Now 35 organizations and 40 
individuals are subject to the government's asset freeze policy. 
Foreign Minister Masahiko Koumura at a cabinet meeting on the 22nd 
noted, "It is necessary to deal with the matter with resolution from 
the perspective of firmly maintaining the nuclear nonproliferation 
policy and the connection to the North Korea nuclear issue." 
 
3) Japan looking for ways to refuse entry into Japan by Reporters 
without Borders but has not yet found any grounds for that 
 
ASAHI (Page 4) (Full) 
April 23, 2008 
 
The Paris-based activist group Reporters without Borders (RSF), 
which calls on the countries across the world not to take part in 
the Beijing Olympics opening ceremony, plans to visit Japan in order 
to stage a protest against the torch relay in Nagano slated for 
April 26. This group's plan has become a headache for the Japanese 
government. The government wants to avoid any trouble over the torch 
relay, but it has not yet found any legal grounds for Japan to 
withhold an entry permit to that group. 
 
RSF was organized by journalist Robert Menard in 1985. It has staged 
protests since 2001, when Beijing was chosen as the venue for the 
Olympic Games. At the time of the flame-lighting ceremony in Greece 
in March, Menard and some other journalists unfurled a banner 
showing the Olympic rings as handcuffs, and they were detained by 
Greece authorities. Menard and other journalists plan to stage a 
protest against the Beijing Olympics in Nagano by putting up a 
banner. Reportedly, they are to depart for Japan on April 22. 
 
Meanwhile, the Japanese government has begun studying the 
possibility of whether it can refuse their entry into Japan. As a 
high-level government official noted, "It's inconceivable that the 
group will come to Japan for peaceful purposes. We'd like it to 
constrain it from visiting Japan." 
 
 
TOKYO 00001115  003 OF 009 
 
 
According to a government official, the Ministry of Justice (MOJ), a 
government office that decides whether to accept an entry into Japan 
by foreigners, was behind the scenes asked by the Prime Minister's 
Official Residence to look for legal grounds to refuse the group's 
entry into Japan. The high-level government official claimed: "Given 
that the Group of Eight (G-8) Toyako Summit is nearing, it is only 
natural for Japan to make a move to prevent any trouble. This is not 
subject to any criticism as violating the freedom of press and the 
freedom of assembly." 
 
Under the rules in the Immigration Control Law, even though 
individuals were detained by the police in the past, if they were 
not sentenced to one year or more in jail, Japan has no reason to 
reject their entry into Japan. Justice Minister Hatoyama noted at a 
news conference yesterday: "As an exceptional case, Japan can refuse 
foreigners' entry into Japan. For now, I've not heard any discussion 
held to examine whether the group's plan to enter Japan comes under 
an exceptional case." 
 
A senior MOJ official said: "Because we have little information 
about the group, for instance, for what purpose the group plans to 
visit Nagano, it is difficult indeed to make a decision." The MOJ 
intends to screen during immigration processing at the airport 
Menard and determine whether the protest Menard plans to stage will 
be legal, and then make a final decision whether to allow his group 
to enter Japan. 
 
4) First Japan-China-ROK summit to be held in Japan in September to 
discuss North Korean nuclear program and other issues 
 
MAINICHI (Page 1) (Abridged slightly) 
April 23, 2008 
 
Japan will host in September the first regular Japan-China-South 
Korea summit meeting, several government sources revealed yesterday. 
In his meeting with Prime Minister Yasuo Fukuda on April 21, South 
Korean President Lee Myung Bak announced support for Japan hosting 
the first trilateral summit this year. The government will begin 
making administrative-level preparations after a formal agreement is 
reached between the prime minister and Chinese President Hu Jintao 
in May. 
 
Trilateral summits have been held on the sidelines of ASEAN summits. 
In a meeting last November among Prime Minister Fukuda, Chinese 
Premier Wen Jiabao and then South Korean President Roh Moo Hyun, an 
agreement was reached to hold trilateral summits in rotation apart 
form ASEAN. 
 
The three countries have decided that it would be appropriate to 
coordinate views ahead of the APEC summit to be held in Peru in 
November. In their first trilateral summit, the leaders of the three 
countries are likely to discuss wide-ranging topics, such as the 
North Korean nuclear issue, environmental issues, and the conclusion 
of a Japan-China-South Korea investment pact. 
 
Ahead of the summit, the foreign ministers of the three countries 
are scheduled to meet in Japan to coordinate views. Although Japan 
and South Korea made it clear at the April 21 summit to strengthen 
bilateral ties, there still remain gaps in measures between the two 
countries and China over the North Korean issue and other matters. 
 
5) Yamasaki planning suprapartisan lawmaker group visit to North 
 
TOKYO 00001115  004 OF 009 
 
 
Korea after Second Phase Actions taken 
 
NIKKEI (Page 2) (Full) 
April 23, 2008/04/23 
 
It was learned on April 22 that a suprapartisan group of lawmakers 
led by Taku Yamasaki of the Liberal Democratic Party (LDP) is 
planning to visit North Korea. They intend to travel right after the 
Second Phase Actions for the Implementation of the Joint Statement 
are taken. The Second Actions include the dismantlement of nuclear 
weapons, including a declaration of the nuclear development program, 
as agreed on at the six-party talks to discuss North Korea's nuclear 
issue. They want to make their visit to Pyongyang a breakthrough in 
the issue of the abduction of Japanese nationals. 
 
Yamasaki has already conveyed his intention to visit North Korea to 
Prime Minister Yasuo Fukuda and Vice Foreign Minister Mitoji 
Yabunaka. Tetsundo Iwakuni of the Democratic Party of Japan (DPJ or 
Minshuto) is also expected to join the delegation. 
 
Viewing that U.S. President Bush will notify Congress of his 
decision to delist North Korea as a state sponsor of terrorism if 
the Second Phase Actions issue is settled, Yamasaki and other 
lawmakers plan to visit Pyongyang right after those actions are 
taken. They want to extract some concession from North Korea within 
45 days until Congress formally decides to take North Korea off the 
black list. However, it is unclear whether North Korea will accept a 
Japanese delegation. Yamasaki met with Song Il Ho, North Korea's 
ambassador in charge of normalization talks with Japan, when he 
visited Pyongyang in January last year. 
 
The Second Phase Actions include normalization of ties between Japan 
and North Korea as well as ties between the U.S. and North Korea. 
However, with North Korea standing firm on its stance that the 
abduction issue has been settled, the prospects remain dim for 
finding a breakthrough. 
 
6) Prosecutors may raid consulting firm today over disposal of 
chemical weapons in China 
 
SANKEI (Page 1) (Abridged) 
April 23, 2008 
 
A task force of the Tokyo District Public Prosecutors Office seems 
to have decided to raid the Pacific Consultants International (PCI) 
group, a major consulting firm for construction projects, over its 
undertaking of abandoned chemical weapons (ACW) in China. The task 
force, now looking into PCI's illegal payments for the ACW project, 
is likely to investigate at least three former PCI executives today, 
including a 71-year-old former chairman, on the charge of causing 
PCI to sustain a loss of about 120 million yen through intergroup 
fictitious transactions. The task force raided PCI and its 
affiliates in October last year and is expected to investigate the 
flow of murky money over the project funded with a huge amount of 
money from the state coffers. 
 
The illicit payoffs were made over a government-sponsored ACW 
disposal project in China. A joint venture of PCI and other firms 
received orders for consulting services from fiscal 1999 through 
fiscal 2003. In fiscal 2004 and afterward, however, Abandoned 
Chemical Weapons Disposal Corporation (ACWDC), a Tokyo-based firm 
newly established by the PCI group, was the only contractor for the 
 
TOKYO 00001115  005 OF 009 
 
 
project. ACWDC asked PCI and others to undertake the project in 
part. 
 
ACWDC entrusted PCI with some of the project's undertakings for 
about 300 million yen from fiscal 2004 through fiscal 2005. The 
former PCI chairman and some other PCI executives conspired to have 
PCI subcontract Pacific Program Management (PPM), one of the PCI 
group's member companies, for fictitious transactions. They are 
suspected of having PCI make illicit payoffs to PPM totaling 120 
million yen, broken down into about 90 million yen in 2004 and about 
30 million yen in 2005. 
 
7) Government, ruling bloc to take a revote on bill restoring 
provisional gasoline tax rate on April 30 
 
ASAHI (Page 1) (Full) 
April 23, 2008 
 
The government and the ruling bloc yesterday decided to take a 
revote on the government-sponsored tax system reform-related bills 
and readopt them by a two-third majority in the Lower House in order 
to restore the provisional tax rates for gasoline and other items. 
If the provisional tax rates are left expired, the central and local 
governments will suffer a revenue shortfall amounting to some 2.6 
trillion yen annually. The government intends to minimize the impact 
of the revenue shortage on road construction and local finances by 
taking a revote on the bills. This means that the gasoline price is 
certain to be hiked in May. 
 
Assuming that the ruling parties put the bills on a revote in the 
Lower House on April 30, the opposition bloc, including the 
Democratic Party of Japan (DPJ), which dominates the Upper House, is 
considering submitting a censure motion against the prime minister. 
If the censure motion is adopted in the Upper House, the Diet could 
come to a grinding halt. The ruling and opposition parties are 
likely to engage in a fierce confrontation after the 30th. 
 
The government's tax system reform-related bills cleared the Lower 
House on Feb. 29 and were sent to the Upper House. At present the 
bills are being discussed at the Upper House Committee on Financial 
Affairs. If the bills are not adopted by April 28, the bills can be 
put to a revote in the Lower House on April 29 or after in 
accordance with the 60-day rule of the Constitution of regarding the 
bills as being rejected in the Upper House. As April 29 is a 
national holiday, the ruling block will call a Lower House plenary 
session on April 30 and put the bills to a revote. 
 
Prime Minister Fukuda yesterday discussed how to deal with the now 
expired provisional tax rates with ruling Liberal Democratic Party 
Secretary General Bunmei Ibuki and Chief Cabinet Secretary 
 
SIPDIS 
Machimura. After the discussion, Ibuki told reporters: "As the party 
in power, we can't wink about the difficulties local governments are 
suffering. Our common perception is that we should avoid issuing 
deficit-covering government bonds." 
 
8) With the override vote on the provisional tax rates coming, calls 
come from the ruling camp for a short extension of the Diet session, 
with consideration given to the Diet being in a deadlocked state 
 
YOMIURI (Page 4) (Excerpt) 
April 23, 2008 
 
 
TOKYO 00001115  006 OF 009 
 
 
With the decision by the government and ruling parties to carry out 
a Lower-House override vote on tax-related bills rejected by the 
Upper House that would restore the provisional taxes, including the 
gasoline tax, it has becoming increasingly uncertain whether the 
remaining bills can be dealt with during the remaining part of the 
Diet session. Voices have emerged in the ruling camp calling for a 
short extension of the regular session of the Diet that goes to June 
15 in order to pass by Lower House override votes those bills 
rejected by the Upper House. 
 
9) DPJ split over filing censure motion against prime minister 
 
YOMIURI (Page 4) (Excerpt) 
April 23, 2008 
 
On the question of filing an Upper House censure motion Prime 
Minister Fukuda, Democratic Party of Japan (DPJ) Secretary General 
Yukio Hatoyama yesterday heard the views of the other executives of 
the four opposition parties. Arguments, both for and against 
submitting a motion, were presented, and a way to coordinate a 
position could not be found. 
 
Although both points of view agreed that public opinion had to be 
observed, the view in favor of a censure motion argued, "If we don't 
submit it, apprehension about dissolution of the Lower House would 
grow, and we could take a big blow." The view reluctant to submit a 
motion analyzed: "If we pass a censure motion, it would mean 
rejecting all deliberations in the Diet, but if that continued, 
public opinion would react negatively, and the boycott could not be 
sustained in the party." 
 
10) "Mr. Koizumi, who introduced the medical system for the elderly, 
must explain it in person"; LDP leaders call for Koizumi's stumping 
for LDP Yamaguchi by-election candidate 
 
MAINICHI (Page 5) (Abridged slightly) 
April 23, 2008 
 
"(Former Prime Minister Junichiro) Koizumi and others who took the 
initiative in introducing the medical system for the very old should 
fulfill their accountability." 
 
In yesterday's LDP General Council meeting, many urged Koizumi and 
former Economic and Fiscal Policy Minister Heizo Takenaka to stump 
for the LDP candidate running in the House of Representatives 
by-election for the Yamaguchi No. 2 constituency and fulfill their 
accountability, given the fact that he is fighting an uphill battle 
due to the fierce public reaction to the medical system for the 
elderly (over 75). 
 
Defending the current party leadership, former Secretary General 
Koichi Kato called for Koizumi's and Takenaka's support, saying: 
"Prime Minister Yasuo Fukuda and Secretary General Bunmei Ibuki were 
not in the current posts when the system was introduced." The LDP 
Yamaguchi prefectural chapter also requested stumping by Koizumi, 
who is still popular. Although Ibuki replied, "I will ask Mr. 
Koizumi," the former prime minister remains reluctant to visit the 
constituency. Realizing the request seems difficult. 
 
11) Former Defense Minister Koike eager to join hands with former 
members of now defunct Japan New Party 
 
 
TOKYO 00001115  007 OF 009 
 
 
ASAHI (Page 4) (Full) 
April 23, 2008 
 
She, who hails from the defunct Japan New Party (JNP), may play the 
role of realigning political parties.... Former Defense Minister 
Yuriko Koike yesterday delivered a speech in Tokyo, in which she 
cited lawmakers' names of former JNP members as her fellow lawmakers 
and expressed enthusiasm to join hands with them, saying; "Former 
members of the JNP are found here and there. I'd like to play the 
role of stage director in the divided Diet so that lawmakers can 
behave as 'adults' by giving priority to the state instead of 
political games." 
 
The names cited by Koike as her fellow lawmakers included Prime 
Ministerial Advisor Tatsuya Ito, Environment Minister Kamoshita, and 
House of Representatives member Toshimitsu Motegi of the ruling 
Liberal Democratic Party (LDP), and Seiji Maehara, former president 
of the major opposition Democratic Party of Japan (DPJ) and former 
DPJ Policy Research Council Chairperson Yukio Edano. Because Koike 
dined with former Prime Minister Koizumi, Motegi, Maehara and others 
in Tokyo on April 9, her moves fuel speculation that she has 
established a foothold for political realignment. 
 
12) DPJ mulling establishing post of consumer protection officer to 
counter premier's plan to set up consumer agency 
 
MAINICHI (Page 2) (Slightly abridged) 
April 23, 2008/04/23 
 
The Democratic Party of Japan (DPJ or Minshuto) yesterday firmed up 
an outline of a consumer protection officer system bill to be 
presented to the current Diet session. The bill centers on giving 
authority to the envisaged consumer protection officer on a par with 
that of the prime minister. To that end, the post of a consumer 
protection officer who will be responsible for protecting the right 
of consumers would be created independent of the cabinet. The 
officer would also be empowered to give recommendations to 
government agencies to exercise their forcible investigation right. 
The party will map out an interim report at a meeting of the "Next 
Cabinet" to be held on April 23 and formally adopt the plan possibly 
within May, after final coordination. 
 
The DPJ bill is a counterproposal to Prime Minister Yasuo Fukuda's 
consumer agency initiative. The bill characterizes the status of the 
envisaged consumer protection officer as a position having the 
fourth right, following the three branches of 
government-legislative, administrative and judicial, taking the view 
that it would be impossible to control existing government agencies, 
which are tilting toward business operators, just by unifying 
consumer-related administrative offices of relevant government 
agencies. 
 
The selection of a consumer protection officer would be based on 
Diet approval and attestation by the Emperor, instead of the 
existing personnel appointment system requiring Diet approval under 
which the government proposes candidates to the Diet. The tenure 
would be six years. There would be no reappointments. The new post 
would be responsible for providing giving council and guidance on 
and investigating consumer-related issues. 
 
13) Upper chamber to veto sympathy budget 
 
 
TOKYO 00001115  008 OF 009 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 23, 2008 
 
The leading opposition Democratic Party of Japan (Minshuto) decided 
yesterday to take a vote in a meeting tomorrow of the House of 
Councillors Foreign Affairs and Defense Committee and in a plenary 
sitting on Apr. 25 of the House of Councillors on a special measures 
agreement proposed by the government for Japan's continued burden 
sharing of costs for the stationing of U.S. forces in Japan 
(omoiyari yosan or literally "sympathy budget"). The proposed 
special agreement will be voted down with a majority of votes from 
the DPJ and other opposition parties, including the Japanese 
Communist Party and the Social Democratic Party. The special 
agreement is a kind of treaty, for which the Constitution stipulates 
that the House of Representatives' decision takes precedence over 
the House of Councillors' decision. Accordingly, the special 
agreement will be approved in a joint committee of both houses on 
Apr. 25 and is expected to take effect by early May. According to 
the Foreign Ministry, the upper chamber will vote down a treaty for 
the first time. 
 
14) Ishiba feels "something wrong" with ASDF top brass officer's 
remark over court ruling 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 23, 2008 
 
Defense Minister Shigeru Ishiba, meeting the press yesterday, chided 
Air Self-Defense Force Chief of Staff Toshio Tamogami for using an 
inappropriate expression when commenting on a Nagoya High Court 
ruling that judged the ASDF mission in Iraq to be unconstitutional. 
Tamogami used a popular comedian's signature phrase to say, "Sonna 
no kankei nee (That doesn't concern us)." Ishiba said, "I feel 
something wrong with his choice of words." 
 
At the same time, Ishiba showed his understanding to a certain 
extent, saying: "I guess that he, as the ASDF chief of staff, didn't 
want the court ruling to affect the morale of the ASDF members 
working over there. Given this, I can understand well that he wanted 
to emphasize that the ASDF members are engaged in the mission under 
the Constitution." 
 
15) Ruling parties, DPJ agree to submit basic space bill to Diet 
this week allowing country to use space for defense purposes 
 
MAINICHI (Page 5) (Abridged slightly) 
April 23, 2008 
 
The Liberal Democratic Party, New Komeito, and the Democratic Party 
of Japan agreed yesterday to submit to the Diet as early as later 
this week a basic space bill to expand the government's space policy 
with the aim of enacting it in the ongoing Diet session. The 
legislation aims to enhance the government's efforts by setting up 
what is tentatively called the space bureau in the Cabinet Office 
and to expand the objective of developing and using space to include 
defense purposes. The bill stipulates, "Promotion of the development 
and use of space contributing to the security of Japan." Pointing to 
a shift in the government's policy that has been limited to 
nonmilitary purposes, the legislation is likely to cause 
controversy. 
 
The government has taken a nonmilitary stance based on a 1969 Diet 
 
TOKYO 00001115  009 OF 009 
 
 
resolution confining the development and use of space to peaceful 
purposes. But following North Korea's firing of a Taepodong missile 
in 1998, the government launched three intelligence-gathering 
satellites. Although they have been operated to deal with disasters 
and other events in accordance with the principle of peaceful use, 
some observers have described them as reconnaissance satellites in 
effect. 
 
The LDP, New Komeito, and DPJ shared the need to dissolve the 
discrepancy with the reality. Specifically, the three parties 
reached a basic agreement to: (1) set up space development strategic 
headquarter in the cabinet to serve as an apace policy control 
tower; (2) establish a space bureau in the Cabinet Office in one 
year after the law's enforcement; and (3) review the Japan Aerospace 
Exploration Agency (JAXA). The envisaged space bureau, a 
Japanese-style NASA, is to plan space policies. 
 
Based on the basic agreement, the ruling parties will withdraw a 
similar bill presented to the House of Representatives in June 2007, 
and the three parties will jointly craft a new bill to submit it to 
the ongoing Diet session. But because cautious views exist in the 
New Komeito and the DPJ about developing and using space for 
military purposes, the draft bill stipulates, "Space development 
shall be pursued in line with the Constitution's pacifist 
principles." 
 
SCHIEFFER