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UNCLAS SECTION 01 OF 11 TOKYO 000894 
 
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//08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) U.S. sailor admits to slaying of taxi driver in Yokosuka; Police 
to seek questioning  (Yomiuri) 
5) Police to seek arrest warrant for U.S. sailor in connection with 
slaying of taxi driver in Yokosuka  (Mainichi) 
6) Democratic Party of Japan (DPJ) to oppose special measures 
agreement for host nation support of U.S. forces in Japan that is 
now before the Diet  (Asahi) 
 
7) Due to government anxieties, Royal Family to skip opening 
ceremony of the Beijing Olympics  (Sankei) 
 
8) Gloomy Bank of Japan Tankan outlook seems to point to recession 
on the way  (Mainichi) 
 
9) Government to propose drafting of new ODA strategy for newly 
industrializing countries  (Nikkei) 
 
Diet in turmoil: 
10) DPJ President Ozawa turns to next issue to hit Fukuda 
administration with: pension mess, with possible censure motion 
against health and labor minister  (Nikkei) 
11) Ozawa to seek resignation of Minister Masuzoe for "breaching 
public pledge" on resolving pension issue  (Mainichi) 
12) Ozawa denies that he ever hinted at accepting Muto for governor 
of the Bank of Japan  (Yomiuri) 
13) Ruling and opposition camps settle into the second round of the 
"gasoline tax war" in the Diet  (Tokyo Shimbun) 
14) Ruling and opposition camps engage in "war of documents" proving 
their points on gasoline-tax issue  (Yomiuri) 
15) Liberal nonpartisan study group that centers on Koichi Kato and 
Taku Yamasaki now has 70 members, including DPJ's Hatoyama  (Nikkei) 
 
16) Former Prime Minister Koizumi, former LDP Secretary General 
Hidenao Nakagawa, and former defense chief Koike starting 
environmental league in Diet  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Tokyo Shimbun: 
Kanagawa Prefectural Police to question U.S. serviceman in 
connection with murder of taxi driver in response to his deposition 
given to U.S. military, in which he admitted murder 
 
Nikkei: 
Toyota Motor to invest more money in Fuji Heavy Industries in order 
to hold some 17 PERCENT  of shares 
 
Sankei: 
Japan decides not to ask the Imperial Family to attend the Opening 
Ceremony of Beijing Olympics because of a number of unstable 
factors 
 
Akahata: 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
Cruel spring for long living people with the start of the new 
medical care system for elderly aged 75 or above 
 
2) EDITORIALS 
 
Asahi: 
(1) Cancellation of screening of movie "Yasukuni" in Tokyo, Osaka: 
Freedom of expression threatened 
(2) Why has business confidence weakened? 
 
Mainichi: 
(1) Cancellation of screening of movie "Yasukuni" must not be 
overlooked 
(2) Price-hike spring: Japan needs to rebuild its economy to meet 
the new price system 
 
Yomiuri: 
(1) Tankan shows economy leveling off 
(2) Cancellation of screening of movie "Yasukuni": We must protect 
freedom of expression 
 
Nikkei: 
(1) Tankan indicates Japanese firms on the brink 
(2) Proper treatment of part-timers required 
 
Sankei: 
(1) Cancellation of screening of movie "Yasukuni": Controversial 
movie worth watching 
(2) New ROK government has ended appeasement policy toward DPRK 
 
Tokyo Shimbun: 
(1) Scrapping of provisional tax rates: Time to consider using 
surplus funds in government's special accounts 
(2) Cancellation of screening of movie "Yasukuni" attributable to 
excessive self-regulation 
 
Akahata: 
(1) Statement on preemptive use of nuclear arms: Those who dwell on 
possible use of nuclear arms must be isolated for elimination of 
nuclear weapons from the globe 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 1 
 
NIKKEI (Page 2) (Full) 
April 2, 2008 
 
09:03 
Attended a cabinet meeting. 
 
10:23 
Met Deputy Chief Cabinet Secretary Ono at the Kantei, followed by 
Assistant Deputy Chief Cabinet Secretary Ando. Afterward met Chief 
Cabinet Secretary Machimura. 
 
11:11 
Met Consumer Administration Promotion Council Chairman Takeshi 
Sasaki, followed by Special Cabinet Advisor Kurokawa, joined in by 
Machimura. 
 
13:04 
 
TOKYO 00000894  003 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
Met LDP Secretary General Ibuki, joined in by Machimura. 
 
14:24 
Met Foreign Ministry European Affairs Bureau Director-General Harada 
and Economic Affairs Bureau Director-General Otabe. 
 
15:46 
Met advisor Ito. 
 
16:26 
Met Special Advisors to the Cabinet Nishimura and Kusaka and 
Assistant Deputy Chief Cabinet Secretaries Saka and Ando, followed 
by former Finance Minister Omi. 
 
17:05 
Met Oman Minister of National Heritage and Culture Haythim. 
Afterward attended a meeting of the Council on Economic and Fiscal 
Policy. 
 
18:53 
Met Japan Business Federation Chairman Mitarai. 
 
19:04 
Met Bank of Japan Deputy Governor Shirakawa. 
 
19:27 
Returned to his official residence. 
 
20:19 
With his wife, Kiyoko, visited the home of their acquaintance in 
Nagatacho on foot. 
 
20:40 
Returned to his official residence. 
 
4) U.S. sailor admits to cabdriver murder; Kanagawa police asks U.S. 
Navy to allow questioning 
 
YOMIUIRI (Top play) (Abridged) 
April 2, 2008 
 
Masaaki Takahashi, a 61-year-old taxi driver of Tokyo's 
Shinagawa-ku, was recently found slain in his taxi on a street in 
the city of Yokosuka, Kanagawa Prefecture. In connection with this 
incident, a Yokosuka-based 22-year-old Nigerian-American U.S. Navy 
seaman apprentice (itto suihei), whose credit card was discovered in 
Takahashi's taxi, has admitted to killing Takahashi by telling the 
U.S. Navy's Naval Criminal Investigative Service (NCIS) that he had 
"stabbed" Takahashi, sources said yesterday. A task force of the 
Yokosuka Police Station yesterday asked the U.S. Navy to allow 
questioning of the U.S. sailor under the Japan-U.S. Status of Forces 
Agreement. The task force will question the sailor today and will 
seek an arrest warrant for the sailor on a charge of murder as soon 
as it receives a statement admitting to the charge. 
 
According to investigative sources, the U.S. sailor called the 
Yokosuka base on Mar. 22, three days after the incident, and he is 
now under custody of the NCIS. The sailor has been questioned on a 
charge of desertion. The sailor earlier denied his involvement by 
stating that he was at a bar (inshokuten) near the city's Dobuita 
Dori street near the crime scene when the murder took place and that 
he had lost his credit card. However, the sailor's statement changed 
 
TOKYO 00000894  004 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
again and again. He yesterday owned up to killing Takahashi. 
 
The U.S. sailor called an acquaintance on the evening of Mar. 19 
when Takahashi was killed, and he implied his involvement by telling 
that acquaintance that he "did it." A man bearing a close 
resemblance to the sailor was caught by a security camera near JR 
Shinagawa Station in Tokyo's Minato-ku at around 7:30 p.m. that 
day. 
 
5) Police to seek arrest warrant for U.S. sailor over murder of taxi 
driver 
 
MAINICHI (Top play) (Abridged) 
April 2, 2008 
 
 
A 22-year-old U.S. serviceman detained by the U.S. Navy on a charge 
of desertion has admitted to killing a taxi driver in the city of 
Yokosuka, Kanagawa Prefecture, sources revealed yesterday. The 
61-year-old taxi driver, Masaaki Takahashi, was recently found 
stabbed to death in the driver's seat of his taxi on a road in 
Yokosuka. Kanagawa prefectural police will question the U.S. sailor 
today, suspecting that he was involved in the incident. This is the 
first time for the local police to question the sailor. Kanagawa 
police will seek an arrest warrant for the sailor on murder and 
other charges as soon as the suspicion is firmed up. Based on an 
intergovernmental agreement between Japan and the United States, the 
police will ask the U.S. Navy to turn over the sailor prior to 
indictment. The U.S. Navy is expected to agree. 
 
According to investigative sources, the U.S. sailor is a seaman 
(joto suihei) on the USS Cowpens, an Aegis-equipped cruiser based at 
Yokosuka. 
 
The U.S. sailor had earlier insisted on his alibi by stating that he 
was at a nearby bar along the city's Dobuita Dori street when the 
incident took place. 
 
The sailor has been detained at the U.S. Navy's Yokosuka base, where 
Kanagawa prefectural police investigators will visit today to 
question him. 
 
6) DPJ to oppose sympathy budget 
 
ASAHI (Page 4) (Full) 
April 2, 2008 
 
The leading opposition Democratic Party of Japan (Minshuto) decided 
yesterday to oppose Diet approval for a new special agreement 
proposed by the government to extend Japan's burden sharing of costs 
for the stationing of U.S. forces in Japan (omoiyari yosan or 
literally "sympathy budget"). The DPJ will confirm the decision in a 
meeting of its shadow cabinet today. The proposed special agreement 
will shortly clear the House of Representatives and is expected to 
be sent to the House of Councillors. The DPJ intends to reject the 
agreement in the House of Councillors until early May when the 
budget will be substantially affected. The agreement will be 
approved with the House of Representatives' decision taking 
precedence over the House of Councillors'. 
 
The DPJ has approved the last two agreements from its stance of 
attaching importance to the Japan-U.S. alliance. This is the first 
 
TOKYO 00000894  005 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
time for the DPJ to oppose the agreement. The DPJ has found from 
documents obtained from the Defense Ministry that Japanese employees 
had been hired for recreational purposes and that there were 
something unclear about contracts on offered facilities. There was 
strong criticism from within the DPJ, claiming that spending cuts 
are insufficient. 
 
7) Government to turn down China's invitation for Imperial Family 
members to attend Beijing Olympics opening ceremony due to unstable 
factors 
 
SANKEI (Top play) (Excerpts) 
April 2, 2008 
 
The government decided yesterday not to accept China's invitation 
for Imperial Family members, including the Emperor and Empress, to 
attend the opening ceremony of the Beijing Olympics. The government 
has concluded that the invitation was premature, given a number of 
unstable factors, such as poisoned dumplings case, deadlocked talks 
on the joint development of gas fields in the East China Sea, and 
riots in Tibet. There is a move among European countries to refuse 
to attend the opening ceremony. The question of who the Japanese 
government is going to send to the opening ceremony is a "clean 
state," according to a senior Foreign Ministry official. 
 
With the Imperial Household Agency and Foreign Ministry remaining 
negative about Royal Family attendance, a government source said: 
"Since before the dumpling case in February, we had not planned on 
the attendance of Imperial Family members. Given that the riots in 
Tibet are now drawing much international attention, we are more 
convinced than ever that we should not have them go." 
 
The Prime Minister's Office (Kantei) has not taken a clear-cut 
attitude. Meanwhile, Liberal Democratic Party lawmaker Haruko 
Arimura asked about the matter in a House of Councillors Cabinet 
Committee meeting on March 27. In response, Deputy Chief Cabinet 
Secretary Mitsuhide Iwaki took a cautious attitude, saying: "We will 
 
SIPDIS 
study the matter carefully, based on a variety of circumstances." 
 
In January 2007, China informally invited the Crown Prince and Crown 
Princess via then Chinese Ambassador to Japan Wang Yi (currently 
vice foreign minister) and others to attend the opening ceremony. 
Premier Wen Jiabao, who had an audience with the Emperor during his 
visit to Japan in April 2007, also invited attendance by Imperial 
Family members, saying: "We would like the Emperor and other 
Imperial Family members to come (to the Olympics) by all means." In 
response, the Emperor stated: "My visits to foreign countries must 
be considered by the government." 
 
8) BOJ "Tankan" survey: Business confidence drops to lowest level in 
four years and three months; Economy on brink of recession; Possible 
early interest rate cut; Concern about U.S. economy, yen's 
appreciation, falling stock prices, surges in crude oil prices 
 
MAINICHI (Page 9) (Excerpts) 
April 2, 2008 
 
The Bank of Japan (BOJ) on April 1 released a "Tankan" or short-term 
business survey report for March. The report underscores that 
business confidence at leading companies and manufacturers, which 
have been a driving force for the economic expansion, has 
deteriorated with the diffusion index for their sectors dropping to 
 
TOKYO 00000894  006 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
the lowest level in four years and three months. Factors underlying 
the deterioration in their business confidence center on the rapidly 
worsened business environment since early this year, including a 
growing concern about the U.S. economy, which is showing indications 
of facing a financial crisis, entering into recession, the sharp 
appreciation of the yen, falling stock prices and surges in crude 
oil prices. Chances are that companies may increasingly constrain or 
put off investments in plant and equipment from now on. A growing 
view is that the Japanese economy has been driven to the brink of a 
recession. 
 
Among 15 business sectors covered by those leading companies and 
manufacturers, only the paper and pulp industry's business 
confidence has improved from the previous survey carried out in 
December last year. The DI for the steel, non-ferrous metal, 
electric machine, shipbuilding and heavy machinery and precision 
machinery industries, which have thus far produced positive business 
performance, has marked a double-digit decline. 
 
The size of the capital investment plan of leading companies and 
manufacturers for fiscal 2008 dropped 3.3 PERCENT , the largest 
decline since fiscal 2002, compared with the previous year. The 
result indicates that they are becoming cautious about making 
capital investment. 
 
The government and the BOJ acknowledged that the Japanese economy 
has entered a temporary pause. However, they also noted that the 
mechanism of economic recovery in which an increase in corporate 
profits led by robust exports boosting personal consumption through 
wage increases is still in place. They envisage that the Japanese 
economy would remain on an expansionary trend, based on the premise 
that even if the U.S. economy enters a temporary recession, it would 
pull out of it in late 2008. However, the Tankan survey for March 
has revealed that there is a huge gap between this optimistic 
scenario of the government and the BOJ, and companies' harsh 
perception of the economy. 
 
Some market players have already pointed out that the BOJ's economic 
expansion scenario has been derailed, as an analyst at BNP Paribas 
put it. There has also appeared an observation that the BOJ would be 
forced to lower the interest rate at an early date. How will the BOJ 
keep the Japanese economy from entering into recession when its 
policy interest rate is only 0.5 PERCENT ? The management of 
monetary policy by the BOJ has reached a crucial juncture. 
 
9) Government to call on emerging countries to create ODA norms, 
aiming to push for information disclosure, consideration for human 
rights 
 
NIKKEI (Page 5) (Full) 
April 2, 2008 
 
The government will call on emerging countries to create norms for 
official development assistance (ODA), with the aim of urging them 
to disclose information on their aid programs and to provide 
assistance based on consideration for such issues as human rights 
and environmental protection. The government also aims to put 
pressure on China and other countries that have become more 
influential with developing countries. 
 
Foreign Minister Masahiko Koumura and his South Korean counterpart 
Yu Myung-hwan, when Yu visits Japan starting on April 3, are 
 
TOKYO 00000894  007 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
expected to meet and agree to jointly host a conference of emerging 
aid-providing countries in Bangkok later this month. They aim to 
bring together bureau-director-level officers from more than 30 
countries, including industrialized countries and emerging nations 
in Asia and in Central and Eastern Europe. 
 
Such emerging nations as China have been stepping up assistance to 
Africa. One of their aims is to secure natural resources, such as 
crude oil and rare metals. In some cases, they assist countries that 
have problems in terms of human rights, and in other cases, their 
development-aid projects lead to destroying the environment, evoking 
criticism from countries in Europe and other regions. 
 
In the conference in Bangkok, Japan will demonstrate how to tabulate 
data needed to announce ODA disbursements, as well as how to monitor 
the situation after aid is offered. Japan will then announce a plan 
to help the emerging countries introduce such means. It will also 
urge them to select aid recipients while giving consideration to the 
aspect of human rights and the environment. Further, Japan will call 
on emerging countries to temporarily suspend additional aid to 
developing countries to which industrialized countries forgave their 
debts, in order to enhance their fiscal discipline. 
 
Japan will also suggest that Japan and the emerging countries 
introduce a system to jointly offer assistance. The government 
expects that Japan, which is suffering from tight fiscal 
restrictions, will take charge mainly of the transfer of technology, 
while emerging countries will be responsible for financial aid. 
 
10) DPJ now turning critical eye on pension issue; To submit censure 
motion against health and welfare minister with eye on the 
possibility of early dissolution of Lower House 
 
NIKKEI (Page 2) (Excerpts) 
April 2, 2008 
 
The major opposition Democratic Party of Japan (DPJ) is gearing up 
to drive the government and the ruling bloc into a tight corner in 
pursuing the pension data fiasco, following the just realized 
gasoline price cut. Its President Ichiro Ozawa told a news 
conference yesterday that his party would consider submitting a 
censure motion against Minister of Health, Labor and Welfare (MHLW) 
Yoichi Masuzoe. As the reason for the submission, Ozawa cited the 
government's failure to identify all of the unidentified 50 million 
pension premium payment records by the end of March. By grilling the 
government relentlessly, the DPJ, which sees April as a month of 
decisive battle, intends to further attack the government with an 
eye on forcing dissolution of the Lower House election for a snap 
election. 
 
April 1 was an "epoch-making day," DPJ Deputy President Naoto Kan 
said, for the DPJ was seeing a gasoline price cut being realized, 
something that the party had called for since last year. But what 
Ozawa read out at the beginning of the press briefing was the 
party's statement concerning the pension records mess. The statement 
calls on the government to apologize for its failure to implement 
its campaign pledge and drastically review the measures now taken. 
It concludes that a change of government should be realized swiftly, 
and that the job of resolving the pension problem should be 
entrusted to the DPJ. 
 
Of the unidentified 50 million pension premium payment records, the 
 
TOKYO 00000894  008 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
government has stated that 20,250,000 records or some 40 PERCENT 
should be soon identified. But the DPJ argues that more than 90 
PERCENT  or 46,780,000 records have been left unsettled. This gap is 
attributable to an emergence of the possibility that even the 
records that the government has said would not lead to benefits may 
contain cases that have caused pension losses. 
 
The DPJ also intends to attack the government for the new medical 
care system for the elderly aged 75 or above. Under this system, 
premiums will be withheld from the elderly's pensions, starting on 
April 15, the first payment day of pension since the start of the 
new fiscal year. The DPJ calls that day the "4/15 shock." At a 
meeting yesterday of the Diet Affairs Committee chiefs from the four 
opposition parties, they confirmed the policy of grilling the 
government through a joint submission of a bill calling for 
scrapping the system. 
 
11) DPJ Ozawa calls for Masuzoe's resignation 
 
MAINICHI (Page 2) (Slightly abridged) 
April 2, 2008 
 
Democratic Party of Japan (DPJ) leader Ichiro Ozawa yesterday 
criticized the government's response to the pension record-keeping 
issue as violating its campaign pledge and demanded that Health, 
Labor and Welfare Minister Yoichi Masuzoe step down from his cabinet 
post. In a press conference, Ozawa emphasized his readiness to 
submit a censor motion against Masuzoe to the House of Councillors 
depending on what response he will make, remarking: "This will be an 
option if he does not voluntarily take responsibility." Ozawa said: 
"Prime Minister Yasuo Fukuda's responsibility is extremely heavy 
(similar to Masuzoe's)," but "the competent minister must clarify 
his responsibility first." 
 
On the day when gasoline prices were actually lowered, the main 
opposition party expanded its battle line to include the issue of 
identified pension accounts. Citing the pension issue and the 
expiration of the provisional gasoline tax rate, Ozawa said: "To 
seek the judgment of the people, there may be an early dissolution 
of the House of Representatives." To counter Fukuda, who has 
underscored the government's efforts to the public since late last 
week by holding a news conference and other means, Ozawa is 
intensifying his offensive against Fukuda, appearing on several news 
programs. 
 
In reference to Fukuda's earlier remark that the DPJ's leading 
figure had said that his party would agree on the nomination of 
(former Administrative Vice Finance Minister Toshiro) Muto, Ozawa 
said in the press conference: "I did not talk (about it) to 
anybody." (On the possibility of holding party head talks,) he did 
not indicate any positive posture. 
 
Following the expiration of the provisional higher gasoline tax 
rate, DPJ members are rolling up their sleeves to step up their 
attack against the government. Deputy President Naoto Kan declared a 
victory, saying: "Today is a historically epoch-making day for the 
Diet." Diet Affairs Committee Chairman Kenji Yamaoka articulated in 
an executive meeting: "Our next main challenge is the pension 
issue." 
 
A senior member of the Diet Affairs Committee, though, stated: "I 
have told party members not to get overly excited." This remark 
 
TOKYO 00000894  009 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
reflects his concern that the public might become critical of the 
DPJ's posture. Behind the party's shift of attention to the pension 
issue seems to be its apprehension that a prolongation of the 
gasoline issue may negatively work (for the DPJ). 
 
12) DPJ President Ozawa denies giving Prime Minister Fukuda the nod 
on nomination of new BOJ governor 
 
YOMIURI (Page 4) (Full) 
April 2, 2008 
 
Ichiro Ozawa, president of the Democratic Party of Japan (DPJ or 
Minshuto), the largest opposition party, told the press yesterday 
that he had not given any informal consent to Prime Minister Yasuo 
Fukuda on the nomination of then Bank of Japan Deputy Gov. Toshiro 
Muto to be the new BOJ governor. Ozawa stated: "There is no truth to 
reports that I talked with someone and certainly with the prime 
minister about whether Muto would be appropriate for the helm of the 
central bank." 
 
13) Tug-of-war underway between ruling and opposition parties over 
second vote on gasoline tax 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
April 2, 2008 
 
Yesterday, in the wake of the expiration of the provisional gasoline 
tax, the ruling parties were busy offering explanations to the 
public with an eye on a second vote on a bill amending the Special 
Taxation Measures Law. Meanwhile, opposition parties emphasized the 
significance of gasoline price cuts with the aim of blocking the 
bill from being readopted. 
 
In a press conference, Liberal Democratic Party Secretary General 
Bunmei Ibuki played up the need to reinstate the provisional tax 
rate, saying: "A lack of money (from the scrapped provisional tax 
rate) will take a toll on education and public welfare. Although the 
gasoline price has dropped by 25 yen (per liter), (problems) far 
more serious than that will fall upon the people." 
 
The LDP has begun compiling a set of guidelines for its members to 
explain that (1) the party will minimize negative impacts on local 
finances by securing tax revenues, (2) the provisional tax rate is 
environmentally friendly in that it helps hold down gasoline 
consumption, and (3) the government will reduce wasteful spending 
but build necessary highways. 
 
As a measure for gasoline-related organizations, such as the 
Petroleum Association of Japan, the party is also preparing a 
document saying that it will make utmost efforts to prevent 
confusion for gas stations and other parties concerned. LDP 
executives and others visited concerned organization one after 
another to set the stage for a second vote (in the Lower House). 
 
Meanwhile, Democratic Party of Japan President Ichiro Ozawa stressed 
in a press conference, "There is no confusion among the people. They 
understand and support this." Ozawa also criticized the prime 
minister's comment that the lowered gasoline price would end up 
forcing future generations to pick up the tab, saying, "I cannot 
understand it at all." 
 
14) Battle between ruling, opposition parties over whether to 
 
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reinstate or abolish gas tax rate 
 
YOMIURI (Page 4) (Excerpts) 
April 2, 2008 
 
Yesterday the ruling parties aiming at an early reinstating of the 
expired provisional gasoline tax rate by a revote on tax-related 
bills in the House of Representatives, and the main opposition 
Democratic Party of Japan (DPJ or Minshuto), which has called for a 
permanent abolition of the gasoline tax, played up their 
legitimacies in an effort to secure public support. 
 
The ruling Liberal Democratic Party (LDP) yesterday sent to various 
organizations connected to road construction a letter, in which the 
LDP expressed its determination to do its best to reinstate the 
gasoline tax rate, citing that the revenues from the road-related 
taxes are the main features of supporting regional economies in 
aspect of creating demand and securing jobs. 
 
In its letter of March 31 sent to all prefectural governors and 
assembly chairmen, the LDP emphasized: "It is crystal clear that 
local finances will fall into critical situations, including even 
the daily lives of the people (if the expiration is protracted)." 
 
The party executives decided yesterday in a liaison meeting to call 
on all their party lawmakers to let their supporters in their 
electoral districts know this weekend the necessity of reinstating 
the gas tax. 
 
15) Nonpartisan study group of 70 lawmakers 
 
NIKKEI (Page 2) (Full) 
April 2, 2008 
 
A study group of suprapartisan Diet members yesterday exchanged 
views with philosopher Takeshi Umehara on nationalism. Koichi Kato 
and Taku Yamasaki of the ruling Liberal Democratic Party (LDP) and 
Yoshiro Sengoku of the main opposition Democratic Party of Japan 
(DPJ or Minshuto) took part in yesterday's study session. The group 
is mainly comprised of legislators who had visited South Korea in 
February. The membership of the study group has increased to about 
70, including DPJ Secretary General Yukio Hatoyama and Kamei 
Shizuka, deputy head of the People's New Party. Umehara reportedly 
will name the group. 
 
After the session, Kato pointed out: "We share the perception that 
narrow-minded nationalism will lead a nation astray." One 
participant said: "It will be easier to make contacts with each 
other if we have various exchanges." This comment implied a possible 
rallying together of liberal forces. 
 
16) Parliamentary league on environment launched 
 
NIKKEI (Page 2) (Full) 
April 2, 2008 
 
The Parliamentary League to Achieve Goals of Kyoto Protocol, the 
membership of which includes former Prime Minister Junichiro 
Koizumi, former Liberal Democratic Party (LDP) Secretary General 
Hidenao Nakagawa, and former Defense Minister Yuriko Koike, held its 
first meeting yesterday. Although Koizumi, who is the honorary 
advisor, did not attend the meeting, about 20 Diet members from the 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//08 
 
ruling parties took part in it. Kuniko Inoguchi and Junichiro Yasui, 
members of the so-called "Koizumi's children," joined it. 
 
The league selected Nakagawa as chairman and Koike as secretary 
general. The group will look into technical assistance for 
developing countries and introduction of an environment tax. One 
opposition member commented: "Their aim is to pull Koizumi into the 
front stage for political realignment." Another member said: "It is 
a move to field Koike as a candidate to succeed Prime Minister 
Fukuda." 
 
SCHIEFFER