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UNCLAS SECTION 01 OF 13 TOKYO 000994 
 
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 04/11/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Food issues: 
4) Ambassador Schieffer in Yomiuri interview on food security: U.S. 
principle is not to impose restrictions on food exports  (Yomiuri) 
5) British premier sends letter to Prime Minister Fukuda asking that 
soaring food prices across globe be put on G8 Summit agenda  (Tokyo 
Shimbun) 
 
Tibet and Olympic issues: 
6) Fukuda's friendly policy towards China being complicated by 
Tibetan issue  (Tokyo Shimbun) 
7) Dalai Lama in Tokyo gives press conference denouncing violence 
against Olympic flame runners  (Asahi) 
8) Dalai Lama meets Mrs. Abe, wife of former prime minister 
(Sankei) 
9) Police may bar entry of those who would try to block Olympic 
torch bearers in Nagano, former site of the games  (Yomiuri) 
 
10) Difficult for Fukuda to travel during Golden Week holidays 
(early May) as planned  (Yomiuri) 
 
11) Defense Minister Ishiba cancels Golden Week trip to Washington 
(Yomiuri) 
 
12) Fukuda states intent to increase official development assistance 
(ODA)  (Yomiuri) 
 
Diet in flux: 
13) Government, ruling parties to agree formally today to Fukuda's 
plan to turn road revenues into regular budget funds  (Asahi) 
14) LDP lawmaker Taro Kono: If no guarantees, will rebel against the 
planned Lower House override vote to approve the continuation of the 
gasoline tax  (Asahi) 
15) Road policy specialists in the LDP are deeply disgruntled by the 
move to take away their control over dedicated road-taxes for 
highway building  (Asahi) 
16) Democratic Party of Japan proposes talks with ruling camp on 
revising the road-revenue system  (Nikkei) 
 
17) Fukuda rival Taro Aso now has 20 faction members, placing him on 
the threshold of making a bid for the LDP president's and thus prime 
minister's post  (Mainichi) 
 
18) LDP committed working on anti-child-porno bill decides to shelf 
idea of banning possession of animated (anime) pornographic scenes 
depicting children  (Mainichi) 
 
19) Japanese satellite systems to undergo complete overhaul due to 
many mishaps  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Seven & Holdings, Aeon suffer drops in operating profits: Will take 
second look at expansionary course 
 
TOKYO 00000994  002 OF 013 
 
 
 
Mainichi: 
Bayer Yakuhin produced iPs cells earlier than Kyoto University 
Professor Yamanaka 
 
Yomiuri: 
Forty-three PTA mutual aid systems to be disbanded due to legal 
revision 
 
Nikkei: 
International financial authorities to jointly monitor large banks 
to stabilize markets: Agreement to be reached at G-7 
 
Sankei: 
Very elderly medical system: Old insurance card to be accepted for 
time being 
 
Tokyo Shimbun: 
Very elderly medical system: Those in lower-income bracket may have 
to pay higher share 
 
Akahata: 
Japanese Communist Party to present a bill revising Worker Dispatch 
Law into worker protection law 
 
2) EDITORIALS 
 
Asahi: 
(1) Reallocation of special-purpose road construction revenues to 
general account: Prime minister should keep his pledge, by revising 
bills 
(2) Quotation of documents serving as record of statement by boy: 
Kodansha responsible for being careless 
 
Mainichi: 
(1) Publication of documents serving as record of statement by boy: 
New determination to protect information source 
(2) Strengthening economy: Challenge is revitalizing regional areas 
and employment 
 
Yomiuri: 
(1) Report by Kodansha: Quotation of documents serving as record of 
statement by boy comes under fire 
(2) General election in South Korea: How will new administration 
switch North Korea policy? 
 
Nikkei: 
(1) Protect Olympic torch relay, by protecting human rights in 
Tibet 
(2) South Korea's Lee administration wins majority in general 
election: Promotion of EPA expected 
 
Sankei: 
(1) Beijing Olympic Games torch relay: "Journey of Harmony" merely 
nominal 
(2) Japan pension organization personnel plan: Do no allow transfer 
of problem officials of Social Insurance Agency 
 
Tokyo Shimbun: 
(1) Six-party talks: Do not give in on "complete" report of all 
nuclear activities 
(2) Gene recombination: Thorough practice of labeling 
 
TOKYO 00000994  003 OF 013 
 
 
genetically-modified crops urged 
 
Akahata: 
(1) Constitution and public opinion: Believe firm that "now is the 
best time" 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 10 
 
NIKKEI (Page 2) (Full) 
April 11, 2008 
 
09:33 
Met Marshall Islands President Tomeing at the Kantei. 
 
10:13 
Met Chief Cabinet Secretary Machimura. Later met Special Advisor 
Ito. Followed by METI Vice Minister Kitabata, Natural Resources and 
Energy Agency Director General Mochizuki, Finance Ministry 
International Affairs Bureau Director General Tamaki, and Assistant 
Deputy Chief Cabinet Secretary Saka. 
 
13:14 
Arrived at his official residence. 
 
14:30 
Met Cabinet Intelligence Director Miki. 
 
15:03 
Met Science and Technology Minister Kishida, Science and Technology 
Policy Council member Masuo Aizawa, Cabinet Office Vice Minister 
Uchida, Saka, and others. Kishida and Saka stayed behind. Later, Met 
National Police Agency Deputy Director General Ando. 
 
17:03 
Met Foreign Ministry European Affairs Bureau Director General 
Harada, Economic Affairs Bureau Director General Otabe, Disarmament 
and Science Department Head Nakane, and Ando. Attended a meeting of 
the Science and Technology Policy Council. 
 
18:38 
Met Secretary General Ibuki, Executive Council Chairman Nikai, 
Policy Research Council Chairman Tanigaki, Election Committee 
Chairman Koga, and Machimura. 
 
19:44 
Attended a study meeting on foreign policy with National Defense 
Academy President Iokibe and others at his official residence, with 
JICA President Sadako Ogata present. 
 
4) Food shock - Voices from overseas (part 1): Interview with U.S. 
Ambassador to Japan Thomas Schieffer: U.S. principle is not to place 
restrictions on exports 
 
YOMIURI (Page 9) (Full) 
April 11, 2008 
 
The rate of food self-sufficiency for Japan has fallen to 39 PERCENT 
, making it the lowest among advanced industrialized countries. 
Moreover, concern has heightened about the safety of imported foods, 
and the country has been hit by a wave of soaring food prices. How 
 
TOKYO 00000994  004 OF 013 
 
 
is Japan's food problem seen by foreign eyes? We ask concerned 
parties (in this series), starting with U.S. Ambassador to Japan 
Thomas J. Schieffer: 
 
Japanese farmers are aging. Unless the number of people involved in 
agriculture does not increase, Japan's (food) situation will likely 
worsen. I think the way to resolve this is by Japan further opening 
its agricultural market. Agriculture is the most protected area in 
the global economy. Japanese consumers are paying higher prices for 
food than they need to. The more the market is opened, the more 
prices will drop. 
 
There are many Japanese who have experienced hunger during World War 
II, so the emphasis on food security is understandable. However, the 
economy has globalized, and today, there is a much richer variety of 
foods than in the 1960s and '70s. In today's world, it is impossible 
for a country to self-produce all of its food. 
 
The U.S. has a principle of not placing restrictions on exports. We 
learned a lesson from the embargo on soybeans (due to a crop failure 
in the 1970s) that export restrictions neither fill political needs 
nor market needs. The United States, Canada, and Australia are the 
world's most advanced democracies and practice free trade. Japan 
need not fear that food would be used (as a threat through such 
measures as embargoes). 
 
Restrictions on food safety must be led by science. Japan has 
restricted the importation of beef to cows that are under 20 months 
of age, but this import condition is not based on science but is a 
decision based on a political viewpoint. Based on the OIE standards, 
removing the age limit would be a better solution from the long-term 
perspective. 
 
The world can produce sufficient food supplies by applying new 
technologies. One example of that is genetic modification. When I 
was a child in the 1950s and '60s, the world's population was 
growing at an amazing pace, and it was feared that there would not 
be enough food supply. However, in reality, because of technological 
innovation, such a situation will not happen. 
 
5) British prime minister asks Prime Minister Fukuda for G-8 
cooperation to deal with rising food prices 
 
TOKYO SHIMBUN (Page 3) (Full) 
April 11, 2008 
 
Hiroshi Hoshi, London 
 
British Prime Minister Gordon Brown yesterday sent Prime Minister 
Yasuo Fukuda, who is to host the upcoming Group of Eight (G-8) 
Toyako Summit in Hokkaido, a letter calling on the G-8 to work 
together with the United Nations and the World Bank to take action 
to deal with soaring food prices as quickly as possible. 
 
In the letter, Brown paid attention to the expansion of the starving 
population and riots that occur in various locations across the 
world and suggested the need to further help developing countries 
and examine the impact of a radical shift from food production to 
biofuel production. 
 
United Nations Under Secretary General for Humanitarian Affairs John 
Holmes also told a press conference on April 8 that the annual 
 
TOKYO 00000994  005 OF 013 
 
 
number of large disasters doubled from 200 to 400 over the past two 
decades, and that there has been a serious impact on food 
production. 
 
Holmes emphasized that climate change has had a serious impact on 
food production and pointed out that food prices rose nearly 40 
PERCENT  over the past several months. He continued: "Riots over 
food are spreading across the world. We must not underestimate the 
impact of soaring food prices on security." 
 
6) Pro-China Fukuda diplomacy clouded 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 11, 2008 
 
There is now a spread of backlashes against China's Tibet policy, 
with protesters trying to disrupt the Beijing Olympic torch relay in 
various countries. This is casting a shadow on Prime Minister Yasuo 
Fukuda's proactive China diplomacy. Fukuda insisted on a peaceful 
settlement of the Tibet issue through dialogue. In fact, however, 
Fukuda is now being bound hand and foot in his efforts to improve 
ties with China. 
 
"There are no plans for any government officials to meet with him," 
Chief Cabinet Secretary Nobutaka Machimura told a news conference 
yesterday when the 14th Dalai Lama, the supreme leader of Tibetan 
Buddhism, stopped over in Japan. 
 
Japan would unavoidably irritate China if anyone in the Japanese 
government had met with the Dalai Lama. 
 
The Foreign Ministry was also careful about its wording to explain 
why the government had no plans to meet with the Dalai Lama. "We're 
responding while considering various factors in a comprehensive 
manner," a Foreign Ministry spokesman said. 
 
"The Chinese government is also making efforts. We should not say we 
will not participate in the Olympic Games." With this, Fukuda has so 
far refrained from criticizing China. 
 
Some lawmakers in the ruling Liberal Democratic Party are calling 
for Fukuda to boycott the opening ceremony of the Beijing Olympics. 
Fukuda said: "Japan has such close relations with China. We should 
make a coolheaded judgment." 
 
Aside from such a standpoint of the Japanese government, however, 
China has drawn unexpectedly strong criticism in the international 
community. On Apr. 9, British Prime Minister Brown announced that he 
would not participate in the opening ceremony of the Beijing Olympic 
Games. 
 
Fukuda will meet with French Prime Minister Fillon today. After 
that, Fukuda will meet with other foreign leaders during their 
visits to Japan. They include Chinese Foreign Minister Yang Jiechi, 
South Korean President Lee Myung Bak, and European Union President 
Barroso. 
 
In early May, Fukuda will also visit the Group of Eight's European 
member nations. Shortly thereafter, Fukuda will meet with Chinese 
President Hu Jintao in Japan. 
 
Fukuda has lost political momentum in the parliamentary turmoil over 
 
TOKYO 00000994  006 OF 013 
 
 
the road-related tax revenues and his nomination for the post of 
Bank of Japan governor, so he wanted to regain his footing by making 
his meetings with foreign dignitaries successful. 
 
The problem, however, cannot be expected to calm down before Hu's 
visit to Japan. Moreover, Fukuda will host this year's G-8 summit at 
Lake Toya in Hokkaido, during which he could be asked by European 
leaders to show a resolute response toward the Chinese government. 
 
On Apr. 26, the Olympic torch will come to Nagano City. "Everybody 
is looking forward to watching the relay. Violence is undesirable." 
This was all Fukuda could say. 
 
7) Meeting press in Japan, Dalai Lama denounces interference with 
torch relay: "Use of violence is wrong" 
 
ASAHI (Page 1) (Full) 
April 11, 2008 
 
The 14th Dalai Lama, Tibet's spiritual leader, yesterday met with 
the press at a hotel near Narita Airport during his stopover in 
Japan on his way from India, where he lives in self-exile, to the 
United States. When asked about interference with the torch relay 
for the Beijing Olympics, the Dalai Lama said: "It is all right to 
express their feelings, but the use of violence is absolutely 
unacceptable." The Dalai Lama stressed his support for China to host 
the Olympics and indicated his willingness to attend the opening 
ceremony of the Beijing Olympics if the Chinese side invites him to 
attend it. 
 
The Dalai Lama answered questions in carefully choosing words but 
with humorously animated gestures. 
 
Asked about the Chinese government's condemnation against him as a 
leader of the group aiming at Tibet's independence, the Dalai Lama 
rebutted: "China has Buddhism. I feel a sense of fellowship in terms 
of sharing the same belief." He went on to say: "It is not my desire 
to seek (Tibet's) independence. I think it is all right that Tibet 
is under China's control on the diplomatic and defense fronts. As 
part of China, we want to have autonomy over Buddhism, culture, 
education, and the environment." 
 
When asked about the riots in Tibet that took place on March 11 and 
after, the Dalai Lama indicated his understanding by noting, "They 
are taken as a manifestation of (Tibetan people's) anger." As for 
the number of victims, the Dalai Lama said, "Hundreds of people died 
and thousands of people were jailed," revealing the great gap from 
the numbers released by Chinese authorities. 
 
Ahead of the press conference, the Dalai Lama met with former Prime 
Minister Abe's wife, Akie, and House of Representatives member 
Seichi Ota, chair of the ruling Liberal Democratic Party's 
Commission on Human Rights Issues. According to Ota, the Dalai Lama 
asked for Japan's assistance in the area of medical care. 
 
8) Dalai Lama meets with former Prime Minister Abe's wife Akie, 
says, "Tibet may disappear...." 
 
SANKEI (Page 5) (Full) 
April 11, 2008 
 
Former Prime Minister Shinzo Abe's wife, Akie, yesterday afternoon 
 
TOKYO 00000994  007 OF 013 
 
 
met at a hotel in Narita City, Chiba Prefecture with the Dalai Lama, 
Tibet's spiritual leader, who was stopping over in Japan on his way 
to the United States, Akie conveyed her husband's message that went: 
"I offer my respect for your activities aimed at protecting the 
human rights of the Tibetan people. I deeply sympathize with the 
Tibetan people, given the current situation they are placed in. I 
will strive to help improve the state of human rights in Tibet." 
 
The Japanese government has refrained from contacting the Dalai 
Lama, whom China blames for the riots in Tibet. Chief Cabinet 
Secretary Nobutaka Machimura only said, "The government has no plan 
 
SIPDIS 
for officials to meet with him." Despite Japan's excessive 
consideration given to China, compared with the United States and 
European countries, former Prime Minister Abe and Akie have now 
praised the Dalai Lama's human right activities. A favorable comment 
was heard about their stance from one Foreign Ministry official: "It 
was very good in the sense that Japan has demonstrated it is not a 
country that disregards human rights." 
 
According to Mrs. Abe, the Dalai Lama expressed his gratitude in 
response to the former prime minister's message. Speaking of the 
increased number of Chinese people living in Tibet, the Dalai Lama 
noted: "I am worried that if this situation continues for five or 10 
years, Tibet may disappear. China is trying to 'Chinalize' Tibet. 
The Tibetans are becoming a minority in Tibet." 
 
Furthermore, the Dalai Lama stressed, "At this point in time, I have 
no intention to call for Tibet's independence. I simply want to 
protect the lives, culture, and spirit of the Tibetan people." When 
asked about whether he is willing to have a direct dialogue with the 
Chinese government, the Dalai Lama said: "Of course. I am ready to 
do so anytime." 
 
When asked about what he hopes to see Japan do for Tibet, the Dalai 
Lama said: "I expect Japan to provide assistance (to Tibet) in the 
area of medicine and medical treatment." 
 
The same day, the ruling Liberal Democratic Party's (LDP) Research 
Commission on Human Rights Issue Chairperson Seiichi Ota also met 
with the Dalai Lama. 
 
9) NPA eyes restricting torch disrupters' entry into country during 
Nagano relay 
 
YOMIURI (Page 1) (Full) 
April 11, 2008 
 
In the wake of serious Beijing Olympic torch relay disruptions in 
Europe, the National Police Agency has decided to increase security 
for the relay in Nagano planned for April 26. With the aim of 
preventing radical activists from entering Japan, the NPA will also 
consider application of the hooligan provision of the Immigration 
Control and Refugee Recognition Law that bans individuals with 
arrest records from entering the country. China has sounded out 
Japan on dispatching to Nagano two security officers running 
parallel to the torch runners. The NPA, however, will ask China not 
to become directly involved in security that relates to Japan's 
sovereignty. 
 
The NPA initially planned to mobilize about 500 Nagano prefectural 
police officers and 1,000 private security guards along the torch 
relay course. But in anticipation of demonstrations by rightist 
 
TOKYO 00000994  008 OF 013 
 
 
groups with sound trucks and rallies by human rights groups, in 
addition to disruption attempts by foreign activists, the NPA has 
begun considering boosting security, for instance, by having riot 
police officers accompany the torchbearers during their relay. 
 
Coordination is underway with immigration authorities to tighten 
passport control, while envisaging applying to radical European 
activists the hooligan provision that was added to the Immigration 
Control and Refugee Recognition Law during the 2002 World Cup soccer 
finals. 
 
10) Overseas trip by Fukuda in May might be difficult 
 
YOMIURI (Page 4) (Full) 
April 11, 2008 
 
The government has started coordination on a visit to Russia by 
Prime Minister Fukuda on April 25-27. 
 
The government initially looked into the possibility of having him 
visit Britain, France and Germany during the Golden Week holidays. 
However, it is now likely that a bill to maintain the provisional 
gasoline tax rate will be brought back into the House of 
Representatives for a revote in late April. Given this, many 
officials now think it would be difficult for the prime minister to 
make an overseas trip in May. 
 
11) Defense Minister Ishiba cancels planned Golden-Week trip to 
U.S. 
 
YOMIURI (Page 4) (Full) 
April 11, 2008 
 
Defense Minister Ishiba has cancelled his trip to the United States 
planned for May. He had planned to travel to Washington during May 
3-6 and meet with Secretary of States Gates. However, in prior 
coordination, the U.S. side sought specific talks on the issue of 
the relocation of Futenma Air Station, while the Japanese side 
wanted to take up broader themes. Coordination broke down, so the 
defense minister decided to cancel the trip to the U.S. 
 
12) Prime Minister Fukuda wants increase in ODA 
 
YOMIURI (Page 4) (Full) 
April 11, 2008 
 
Attending a meeting last evening of the "Foreign Policy Study 
Group," a forum of influential persons, Prime Minister Fukuda 
expressed his strong desire to see an increase in the official 
development assistance (ODA) budget, which as continued to decline. 
He said: "We can't just let it continue to fall. We must do 
something (to boost it)." 
 
13) Government, ruling parties confirm reallocation of road 
construction funds to general account starting in fiscal 2009; 
Agreement to be reached today 
 
ASAHI (Page 1) (Excerpts) 
April 1, 2008 
 
Prime Minister Fukuda yesterday evening met with four top officers 
of the Liberal Democratic Party (LDP), including Secretary General 
 
TOKYO 00000994  009 OF 013 
 
 
Bunmei Ibuki, and ordered them to finalize on April 11 the 
government's and the ruling parties' proposal regarding 
special-purpose road construction revenues. The proposal is expected 
to incorporate a policy of shifting those revenues to the general 
account starting in fiscal 2009, while keeping the level of tax 
rates, including the provisional tax rate, intact. The prime 
minister intends to obtain Diet approval for tax code 
revision-related bills, now under deliberation, as is. However, 
regarding a revision of those bills in the next fiscal year and 
beyond, he will call on the opposition camp to agree to hold policy 
talks. 
 
The meeting was joined by Chief Cabinet Secretary Machimura. The 
proposal of the government and the ruling parties will center on the 
following points, based on the prime minister's proposition made 
during the emergency press conference on March 27: (1) shifting 
special-account road construction revenues to the general account 
starting in fiscal 2009; (2) maintaining the tax rate level, 
including the provisional tax rate; and (3) speedy passage of the 
fiscal 2008 revenue bill. Giving consideration to some LDP members 
who are concerned about the impact of the proposal on road 
construction, the proposal will also mention that the construction 
of necessary roads will be carried out steadily. 
 
Emerging from the meeting, Election Committee Chairman Makoto Koga, 
who has influence over road policy, told reporters, "Since the prime 
minister said that he would adopt that policy, I will follow his 
policy." The government and the ruling parties will hold a liaison 
council meeting on the afternoon of the 11th and reach a consensus 
on the prime minister's proposal. They will then call on the 
opposition camp to agree to hold policy talks. 
 
Democratic Party of Japan Diet Affairs Committee Chairman Kenji 
Yamaoka met with his LDP counterpart Tadamori Oshima and conveyed to 
him that the DPJ will not insist on its previous call for a cabinet 
decision on the prime minister's proposal. The DPJ had made it a 
precondition for it to enter into talks with the ruling camp. 
 
14) Interview with Taro Kono: I will rebel on revote on 
highway-related bill if there is no guarantee that all road tax 
revenues will be shifted into general account 
 
ASAHI (Page 4) (Full) 
April 11, 2008 
 
-- Prime Minister Fukuda proposed shifting highway tax revenues to 
the general account starting in FY2009. 
 
Our plan compiled by mid-ranking and junior members proposed 
introducing the new policy five years from now, so the prime 
minister's proposal calling to adopt it starting next fiscal year is 
fully satisfactory. In the Liberal Democratic Party, though, there 
are members complaining of the proposal behind the scenes. It is 
necessary to come up with a definite plan. 
 
-- The bill amending the law pertaining to financial sources for 
highway-related projects now under deliberation calls for placing 
only extra tax revenues that exceed expenses for highway 
construction and maintenance into the general account. 
 
If the bill is brought back into the House of Representatives for a 
revote without a guarantee to incorporate all highway tax revenues 
 
TOKYO 00000994  010 OF 013 
 
 
into the general account, I will raise opposition. There are many 
LDP members who are against such an approach. More than 16 lawmakers 
calling for such a guarantee gathered together in late March. I hear 
there are more. If all of them are against it, the bill might be 
voted down. 
 
--Do you think the provisional road-related tax rates should be 
maintained? 
 
The major theme at the upcoming Lake Toya Summit is the issue of 
global warming. Despite this, if Japan decides to lower the gasoline 
tax rate, other countries might think Japan has no eagerness to 
address the issue. So I support the idea of taking an override vote 
in the Lower House to restore the provisional tax rate. Some suggest 
that Japan should introduce an environment tax instead of reviving 
the provisional tax rate, but if that is really necessary, money to 
finance environmental measures should be disbursed from the general 
account. 
 
15) Dissatisfaction at policy of shifting road tax revenues to 
general account smoldering among LDP lawmakers lobbying for road 
construction industry; junior members supportive 
 
ASAHI (Page 4) (Full) 
April 11, 2008 
 
The Liberal Democratic Party yesterday endorsed a new proposal made 
by Prime Minister Fukuda in late March to shift highway-related tax 
revenues to the general account starting in FY2009. The road-related 
policy clique in the Diet initially frowned on the agreement hastily 
concluded by the government and the ruling parties, but since a 
paper inserted the phrase that "necessary roads will be 
constructed," they laid down their arms. 
 
Included among the party executives who gathered at the Prime 
Minister's Office last evening in response to a call by the prime 
minister were Election Committee Chairman Makoto Koga and Executive 
Council Chairman Toshihiro Nikai - lawmakers lobbying for the 
highway construction industry. When Fukuda presented a compromise 
plan, Koga promptly started talking on and on about the actual 
situation of roads in local areas and circumstances surrounding the 
road-related industries, according to informed sources. 
 
After the party executive meeting, Koga told reporters: "We will 
properly accept the major trend of incorporating the tax revenues 
earmarked for highway-related projects into the general account." 
Although he spoke with an attitude of unconcern, when his car came 
for him, he pushed away the microphone held by a reporter and left. 
Nikai, surrounded by reporters, said: "It will be impossible to 
easily review massive highway-construction projects in ten days or 
one month. We must listen to views from local people." 
 
In a special executive meeting held on the evening of April 9, after 
a one-on-one debate between Fukuda and Democratic Party of Japan 
(DPJ) President Ozawa, Koga told executive members in a threatening 
way after letting party staff members leave the room: "We all remain 
silent without saying what we want to say. If you get into further 
detail, we will explode in anger." Koga represented the 
dissatisfaction of the road-policy clique in the Diet. 
 
However, a number of medium-ranking and junior members of the LDP 
are calling on the leadership to endorse the prime minister's 
 
TOKYO 00000994  011 OF 013 
 
 
proposal. House of Councillors member Ichita Yamamoto of the 
Machimura faction said in a meeting of the Executive Council on the 
8th: "The prime minister's policy of shifting highway tax revenues 
to the general account should be formally adopted." A senior member 
of the ruling camp's Diet Affairs Committee also stated: "If the 
policy is not endorsed, the administration will reach a dead end." 
 
The lawmakers representing the highway construction industry are 
apparently feeling that although it is necessary to come to terms 
with the prime minister in order to support his administration, a 
significant compromise with the DPJ is unnecessary. Keeping such 
feelings in mind, a senior New Komeito member grumbled: "The DPJ is 
expected to decline our call for negotiations on revising the 
proposal, so there is no need to make any proposal to it. It is 
unnecessary to add anything to the prime minister's proposal." 
 
16) DPJ proposes starting revision talks 
 
NIKKEI (Page 2) (Full) 
April 2, 2008 
 
Democratic Party of Japan (DPJ or Minshuto) Diet Affairs Committee 
Chairman Kenji Yamaoka yesterday met his Liberal Democratic Party 
(LDP) counterpart Tadamori Oshima in the Diet. He during the meeting 
called on the LDP to respond to his party's proposal for holding 
revision talks on the level of diet affairs committee chairmen and 
policy research council chairmen of the ruling and opposition 
parties to discuss the special-purpose road construction revenues 
issue. 
 
The DPJ has called for holding talks to revise the bills presented 
by the government during the current Diet session, based on an 
agreement between the ruling and opposition parties. However, the 
ruling parties and the opposition parties are wide apart on their 
perception of the issue, with the government and the ruling parties 
calling for holding policy talks at an early date to discuss a 
policy course that would reform road policy without revising the 
bills during the current Diet session. 
 
It is viewed that the DPJ made that proposal to indicate a positive 
stance toward talks with the ruling parties, fending off criticism 
from the ruling parties as refusing such talks. Deputy President 
Naoto Kan underscored, "We are ready to respond to talks any time." 
 
Vice President Katsuya Okada during a BS television program played 
up the proposal: "We will protect the abolition of the provisional 
gas tax rate as our achievement. If the government gets the bills 
through the Diet, it would be a lie that the prime minister proposed 
shifting road revenues to the general account."  He indicated that 
revising the government-sponsored bills, including abolishing the 
provisional tax rate, would be essential. So even if the ruling and 
opposition parties entered into talks, there are no prospects at 
this point for them to reach an agreement. 
 
17) Aso faction membership grows to 20; Aso one step close to 
running for LDP presidency 
 
MAINICHI (Page 5) (Full) 
April 11, 2008 
 
The Aso faction led by Taro Aso, a former secretary general of the 
Liberal Democratic Party, at its general meeting yesterday admitted 
 
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into the faction House of Representatives member Yoji Muto (Gifu No. 
3 constituency) and House of Councillors member Tamon Hasegawa 
(Ibaraki electoral district), raising the faction's membership to 
¶20. In order to run for the party presidency, one must have 
recommendations from at least 20 other LDP lawmakers. Aso is now one 
step close to being able to run for the party presidency to succeed 
PM Fukuda without relying on other factions. 
 
Including those two, the Aso faction now has 16 Lower House members 
and four Upper House members. The faction's membership has increased 
by five since its establishment in January 2007. A mid-level faction 
member said: "The greater factional strength will intensify policy 
discussions in the faction, and that will boost Mr. Aso's 
presence." 
 
Recommendations from 20 LDP lawmakers are required to run for the 
LDP presidency in accordance with party rules. The Aso faction, 
however, has sent one member to the Election Administration 
Committee in past presidential elections. Given the situation, in 
order for Aso to win recommendations from 20 faction members, two 
more LDP lawmakers will have to join his faction, according to a 
senior Aso faction member. 
 
18) LDP child porn panel decides to forgo regulating animation 
 
MAINICHI (Page 5) (Full) 
April 11, 2008 
 
The LDP subcommittee on a review of the Law for Punishing Acts 
Related to Child Prostitution and Child Pornography, chaired by 
Mayumi Moriyama, decided yesterday to forgo regulating animated 
films and computer graphics sexually depicting characters who do not 
actually exist. Although the subcommittee has decided to criminalize 
the simple possession of pornographic images of minors, many 
expressed cautious views on animation, saying that no children have 
been victimized. 
 
The New Komeito also intends to forgo regulating animation for a 
similar reason. With the Democratic Party of Japan also remaining 
cautious, the subject is likely to be removed from future 
nonpartisan talks on amending the law. 
 
19) JAXA to overhaul Japan's satellites due to malfunctions 
 
YOMIURI (Page 1) (Abridged) 
April 11, 2008 
 
The lunar probe Kaguya and other Japanese satellites have recently 
experienced minor malfunctions. In the wake of this, the Japan 
Aerospace Exploration Agency (JAXA) will check all 16 satellites 
currently in operation by gathering and analyzing troubles and 
failure data. 
 
In the past four months, JAXA confirmed seven problems in five 
satellites. In January, problems occurred with the engineering test 
satellite Kiku 8 and the X-ray observatory satellite Suzaku. In 
February, the solar observatory satellite Hinode malfunctioned. In 
March, the ultrahigh-speed internet satellite Kizuna was also found 
to have problems. Last December, JAXA announced that Kaguya had 
something wrong with it. In April, JAXA revealed that Kaguya had had 
another problem. Due to the difficulties, Kaguya cannot observe the 
moon's radioelement distribution with its gamma-ray spectrometer. 
 
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MESERVE