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Viewing cable 08TOKYO1216, DAILY SUMMARY OF JAPANESE PRESS 05/02/08

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Reference ID Created Released Classification Origin
08TOKYO1216 2008-05-02 08:16 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO3751
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1216/01 1230816
ZNR UUUUU ZZH
P 020816Z MAY 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3952
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 9981
RUEHFK/AMCONSUL FUKUOKA 7597
RUEHOK/AMCONSUL OSAKA KOBE 1276
RUEHNAG/AMCONSUL NAGOYA 5959
RUEHKSO/AMCONSUL SAPPORO 8192
RUEHBJ/AMEMBASSY BEIJING 3136
RUEHUL/AMEMBASSY SEOUL 9153
RUCNDT/USMISSION USUN NEW YORK 9645
UNCLAS SECTION 01 OF 09 TOKYO 001216 
 
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 05/02/08 
 
INDEX: 
 
(1) When will the right timing be for DPJ to submit a censure motion 
against Prime Minister Fukuda? (Tokyo Shimbun) 
 
(2) Prime Minister Fukuda to recharge batteries during Golden Week 
holidays (Tokyo Shimbun) 
 
(3) Zeal for constitutional revision absent from political community 
(Asahi) 
 
(4) 2 years after U.S. military realignment accord: Dark clouds 
looming over 2014 completion (Tokyo Shimbun) 
 
(5) Public opinion rejecting nuclear bombers forces cancellation of 
U.S. military's B-52 flight to Iwakuni (Akahata) 
 
(6) International crime-prevention assistance expected to be 
discussed at G-8 ministers' conference of justice and internal 
affairs in June (Asahi) 
 
(7) Misawa Air Base service member arrested for sexually harassing 
teenager on street (Yomiuri) 
 
(8) Exporting companies revise nominal exchange rate due to yen's 
appreciation stronger yen: Fall in profits worth 1.2 trillion yen 
attributable to strong yen (Nikkei) 
 
(9) Expenses needed to implement DPJ-proposed polices to exceed 20 
trillion yen -- increase due to abolition of provisional gas tax 
rate (Nikkei) 
 
ARTICLES: 
 
(1) When will the right timing be for DPJ to submit a censure motion 
against Prime Minister Fukuda? 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
May 2, 2008 
 
Although the government and ruling parties rammed through a bill to 
reinstate the provisional tax rates, including the gasoline tax, by 
a two-thirds overriding vote in the House of Representatives, the 
major opposition Democratic Party of Japan (DPJ) forwent submitting 
a censure motion against Prime Minister Yasuo Fukuda to the House of 
Councillors. The DPJ has, however, asserted that it still plans to 
present a censure motion to the upper chamber. When will the largest 
opposition party submit a motion? This newspaper probed into what 
might be the right timing for the DPJ to submit it. 
 
In principle, a censure motion against a prime minister can only be 
submitted once in a Diet session. Therefore, it is important that 
the DPJ submit it at the right timing to lead to dissolution of the 
Lower House and a general election. 
 
(The first right timing would have been immediately after the tax 
code bill was readopted.) The second right timing would be on May 13 
when the ruling coalition is expected to take a revote on a bill 
amending the Road Construction Revenues Special Exemption Law aimed 
to retain the road-related tax rates for another 10 years. 
 
DPJ President Ichiro Ozawa has said that a revote on this bill is 
 
TOKYO 00001216  002 OF 009 
 
 
consistent with Fukuda's policy of shifting the tax revenues 
earmarked for road construction and maintenance to the general 
account (starting 2009). So, the dominant view in the largest 
opposition party is that the right timing for the party to submit a 
censure motion would be May 13. 
 
However, Fukuda has no intention to dissolve the Lower House and his 
cabinet even if a censure motion is adopted in the Upper House. If 
so, the DPJ will not be able to respond to Diet deliberations for 
about one month until the ongoing session ends on June 15 for the 
reason that they could no longer deliberate on matters under a prime 
minister who had been reprimanded. Therefore, chances are that a 
view will gain ground in the DPJ that the party should forgo its 
plan to submit a censure motion on May 13. 
 
The third right timing for the submission would be sometime after 
ascertaining how Fukuda handles the controversial health care system 
for the elderly. 
 
(2) Prime Minister Fukuda to recharge batteries during Golden Week 
holidays 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 2, 2008 
 
Prime Minister Yasuo Fukuda forwent his planned visit to the Europe 
during the Golden Week holidays. For now, Fukuda will be off on May 
3-5. He is expected to recharge his batteries during that period at 
his official residence. He intends to devise a strategy for his 
summit on May 7 with Chinese President Hu Jintao, who will arrive in 
Tokyo on May 6. The prime minister will hold a dinner party for the 
president on the night of the 6th. 
 
Fukuda intends to hold on May 13 a revote on a bill amending the 
Road Construction Revenues Special Exemption Law in the House of 
Representatives. It is expected that tensions will rise again in the 
Diet. Fukuda will be able to have a good rest during the three days 
off. 
 
(3) Zeal for constitutional revision absent from political 
community 
 
ASAHI (Page 2) (Abridged) 
May 2, 2008 
 
The constitutional debate has lost steam under the divided Diet. 
Holding power in the two chambers of the Diet, the ruling parties 
forcibly enacted national referendum legislation last year. Such 
vigor is absent today. May 3 is Constitution Day. The constitutional 
debate is likely to continue languishing for some time. 
 
The parliamentary league to establish a new constitution met 
yesterday at the Constitutional Government Commemoration Hall in 
Tokyo's Nagatacho. Former Prime Minister Yasuhiro Nakasone, who was 
named the group's chair in the session, declared: "The Constitution 
was born after WWII. It is our responsibility to make it into a 
correct constitution to pass it on to our descendants. I will devote 
myself to achieve that goal." Former Prime Minister Shinzo Abe also 
said: "A resolution to write the new Constitution with our own hands 
will result in a spirit to open up a new era." 
 
The meeting brought together 51 lawmakers and some 1,000 business 
 
TOKYO 00001216  003 OF 009 
 
 
leaders and local politicians. From the LDP, Secretary General 
Bunmei Ibuki, former Vice-President Taku Yamasaki, and Chief Cabinet 
Secretary Nobutaka Machimura attended the session as guests. 
 
SIPDIS 
 
The league's office had requested speeches by Democratic Party of 
Japan Secretary General Yukio Hatoyama and former DPJ President 
Seiji Maehara, but they did not show up at the event. DPJ Deputy 
Secretary General Akihisa Nagashima gave a speech on their behalf 
 
SIPDIS 
indicating that amending the Constitution is his party's policy, as 
well. This was met with rapturous applause. 
 
The LDP league to establish a home-grown constitution was expanded 
last fall to include members of the DPJ, New Komeito and the 
People's New Party in line with the view that cross-party efforts 
were essential to advance the constitutional reform movement. But 
some LDP members are skeptical about reaching an agreement with 
conservative DPJ and New Komeito lawmakers. 
 
During his tenure as prime minister, Abe fostered momentum for 
enacting the national referendum legislation, saying, "I want to put 
constitutional revision on the political agenda." The DPJ and other 
opposition parties objected to Abe's stance, saying, "His statement 
neglected the Diet, the highest organ of state power." 
 
Back then, Prime Minister Yasuo Fukuda witnessed such a reaction as 
a director of the House of Representatives Special Research 
Committee on the Constitution. In his policy speech, Fukuda simply 
stated, "I strongly hope for earnest discussions by all political 
parties." 
 
The LDP's efforts not to irritate the DPJ do not pave the way for 
constitutional revision. The priority order of policy issues has 
changed completely under the divided Diet. 
 
Asked for his party's stance toward constitutional revision, DPJ 
President Ichiro Ozawa in a press conference on April 28 said: "Does 
the Constitution need to be amended urgently? I believe resolving 
problems threatening the people's livelihood is far more important 
at this point in time." 
 
Hope for political realignment to break deadlock 
 
Views on the Constitution in the ruling and opposition camps are not 
monolithic. 
 
New Komeito members delivered roadside speeches on the Constitution 
in front of Shinjuku Station yesterday. Party Representative Ota 
played up his party's policy of adding clauses to the Constitution, 
saying: "We will reinforce the Constitution by adding new rights to 
it, such as the environmental right and the right to privacy, while 
upholding the three constitutional principles." 
 
The New Komeito eyes adding new rights to the Constitution because 
it fears constitutional revision being pursued only by the LDP and 
DPJ. The New Komeito and its support groups are highly alarmed at 
the two parties' calls for amending Article 9. 
 
It is fortunate for the New Komeito that given ever-dropping cabinet 
approval ratings, the LDP cannot afford to address Article 9 and the 
preamble that concern the party's visions. 
 
The situation is about the same with the DPJ. Establishing a standby 
 
TOKYO 00001216  004 OF 009 
 
 
force for UN missions is Ozawa's stock argument. In an interview by 
the Asahi Shimbun, Maehara raised an objection to it, saying: "If 
Japan is to be able to use any means, including force, as long as 
there is a UN resolution, it would be a deviation from the 
traditional interpretation of the Constitutional." 
 
The chair of the DPJ Constitution Committee has been vacant since 
the House of Councillors election last summer and the debate in the 
party has also been stalled. Former chair Yukio Edano noted: "Public 
opinion is that if the Constitution can be changed for the better, 
that would be fine, but constitutional revision is not a must." 
 
It has been one year since the national referendum law was enacted 
last May. Unable to determine the numbers of directors, the two 
chambers' research commissions on the Constitution have yet to begin 
substantive deliberations. 
 
Some ruling and opposition members have even begun voicing 
expectations for political realignment in order to find a 
breakthrough in the deadlocked discussion. 
 
A nonpartisan group on security met on April 23 for the first time 
in three years. In the session, Maehara noted: "The government has 
repeatedly changed its interpretation of the Constitution without 
amending the top law. Such an approach has reached its limit. Ruling 
and opposition parties have to jointly discuss the matter by 
transcending their boundaries." 
 
Taro Nakayama, who chairs the LDP Constitution Council, predicted: 
"Political realignment could occur. The situation like this cannot 
go on forever." 
 
(4) 2 years after U.S. military realignment accord: Dark clouds 
looming over 2014 completion 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 2, 2008 
 
It has now been two years since the Japanese and U.S. governments 
finalized their agreement in 2006 on the planned realignment of U.S. 
forces in Japan. The U.S. military realignment in Japan shows some 
progress. However, there are also difficulties when it comes to 
building an alternative facility for Futenma airfield in Okinawa 
Prefecture and moving U.S. Marines from Okinawa to Guam. The 
realignment is slated to be completed in 2014. However, there are 
dark clouds looming over that timetable for completion in six 
years. 
 
The realignment of U.S. forces in Japan is aimed at consolidating 
cooperation between the Self-Defense Forces and U.S. forces and 
alleviating the burden of people in Okinawa Prefecture, which is 
saddled with 75 PERCENT  of all U.S. military facilities. 
 
Based on a bilateral agreement, U.S. military aircraft training has 
now been transferred from three U.S. military bases, including 
Kadena in Okinawa Prefecture, to six ASDF bases, such as Komatsu in 
Ishikawa Prefecture and Hyakuri in Ibaraki Prefecture. In September 
this year, the U.S. Yokota Air Base in Tokyo will partially return 
its air traffic control of airspace to Japan. 
 
Another realignment plan is to relocate carrier-borne fighter jets 
to the Iwakuni base in Yamaguchi Prefecture. This relocation plan 
 
TOKYO 00001216  005 OF 009 
 
 
had been bogged down. In this February's mayoral election, however, 
Iwakuni City's newly elected mayor, Yoshihiko Fukuda, who defeated 
his predecessor opposing the relocation of carrier-borne jets to 
Iwakuni, has now accepted the relocation plan. This plan is now 
expected to be completed by 2014. Realignment plans that do not 
accompany a large-scale move of facilities or troops are now well 
under way. 
 
Meanwhile, the government is facing difficulties in its negotiations 
with Okinawa Prefecture and its base-hosting localities over the 
planned relocation of Futenma airfield. Futenma relocation is 
already 7-9 months behind schedule. 
 
In March, the government started an environmental impact assessment 
of the relocation site near Henoko, Nago City, as a step required 
for the planned construction of an alternative facility for 
Futenma. 
 
The Japanese and U.S. governments have agreed on a plan to build a 
V-shaped pair of airstrips (in a coastal area of Camp Schwab in 
Nago, Okinawa Prefecture). Okinawa has asked the government to move 
the planned relocation site into an offshore area. The government 
has also implied that it would consider offshore relocation, with 
Chief Cabinet Secretary Nobutaka Machimura remarking that the 
government will make efforts while bearing it in mind so that the 
issue of Futenma relocation can be settled at an early date. 
 
However, the U.S. government will not accept any change in the 
relocation plan. If Okinawa Prefecture's request is rejected, the 
governor may not allow land reclamation in public waters from the 
sea. The government plans to start construction work in 2010. 
However, there may be a substantial delay in that schedule. 
 
The U.S. military plans to move about 8,000 Marines from Okinawa to 
Guam. The Japanese government will outlay about 600 billion yen -or 
60 PERCENT  of the total amount of money needed for the Guam move. 
The government will shoulder up to 280 billion yen, excluding loans 
and other recoverable funds. The government was under fire in the 
Diet for such a huge amount of costs. 
 
There is also an analysis suggesting the need for Japan to pay out 2 
more trillion yen for the entire realignment of U.S. forces in 
Japan. The Finance Ministry and the Defense Ministry are now 
beginning to struggle against each other over whether or not to 
earmark the realignment costs in the defense budget slot. 
 
(5) Public opinion rejecting nuclear bombers forces cancellation of 
U.S. military's B-52 flight to Iwakuni 
 
AKAHATA (Page 1) (Full) 
May 2, 2008 
 
A B-52 strategic nuclear strike bomber was scheduled to join the air 
show at the United States Marine Corps Air Station (MCAS) Iwakuni 
(in Yamaguchi Prefecture) slated for May 5. It was learned 
yesterday, however, that the B-52's flight to the Iwakuni base to 
participate in the show has been cancelled. 
 
Earlier in the day when Akahata asked the Ministry of Foreign 
Affairs' (MOFA) Status of U.S. Forces Agreement Division about this 
matter, an official of the division revealed that MOFA had been 
informed by the U.S. Embassy in Japan on April 30 that the B-52 
 
TOKYO 00001216  006 OF 009 
 
 
would not fly (to Iwakuni) because of the U.S. forces' operational 
reasons. 
 
The question of the B-52's flight to Iwakuni was raised by House of 
Representatives member Akira Kasai of the Japanese Communist Party 
during a session on April 23 of the Lower House Committee on Foreign 
Affairs and Kawai pursued Foreign Minister Masahiko Koumura, saying: 
"For the victim nation of nuclear bombing, it is intolerable to see 
a strategic nuclear strike bomber fly to an area near the bombsite 
at Hiroshima." 
 
This issue came as a grave shock to local residents. In addition to 
civic groups, Governor Yuzan Fujita of Hiroshima Prefecture 
neighboring Iwakuni City, Mayor of Hiroshima City Tadatoshi Akiba, 
Mayor of Hatsukaichi City Katsuhiro Shinno and other heads of other 
municipalities had filed a petition to U.S. Ambassador to Japan J. 
Thomas Schieffer, Iwakuni Base Commanding Officer Col. O'Halloran, 
and Foreign Minister Koumura for cancellation of the B-52's flight 
to Iwakuni. 
 
(6) International crime-prevention assistance expected to be 
discussed at G-8 ministers' conference of justice and internal 
affairs in June 
 
ASAHI (Page 12) (Full) 
Eve., May 1, 2008 
 
Kenji Ogata 
 
The outline of topics for general discussion at the upcoming 
Conference in Tokyo of Ministers of Justice and Internal Affairs 
from the Group of Eight (G-8) industrialized countries in June -- an 
international meeting related to the G-8 Hokkaido Toyako Summit - 
was learned today. The showcase of the conference will be 
implementation of measures to assist countries that are not fully 
ready to deal with borderless crimes by enhancing the capabilities 
of their law-enforcement agencies. 
 
The upcoming conference to discuss crime-prevention measures will 
mark the 10th such meeting. Japan will host it for the first time. 
The conference is to be held on June 11-13. Justice Minister 
Hatoyama and National Public Safety Commission Chairman Izumi will 
chair the conference. 
 
Subjects for discussion at the conference include international 
terrorism, abuse of personal identity information, such as forgeries 
of passports, the need for the sharing of more information on 
criminals, and child pornography. In order to advance measures 
against those crimes, it is essential to give assistance to 
countries other than the G-8. The conference will propose "capacity 
building assistance" and seek cooperation on it. 
 
(7) Misawa Air Base service member arrested for sexually harassing 
teenager on street 
 
YOMIURI NET (Full) 
12:42, May 2, 2008 
 
Hachinohe police in Aomori Prefecture arrested earlier today James 
Littlejohn III (TN: phonetic), a 22-year-old airman based at U.S. 
Misawa Air Base, on suspicion of sexually harassing (waisetsu) a 
teenage girl. 
 
TOKYO 00001216  007 OF 009 
 
 
 
According to a police announcement, at around 3:45 a.m. today, the 
airman approached a teenage girl and grabbed her from behind on a 
street in Uruichi, Hachinohe City. 
 
The airman fled from the scene by car, but about an hour later, he 
was found by a Misawa police officer in the neighboring town of 
Oirase. 
 
(8) Exporting companies revise nominal exchange rate due to yen's 
appreciation stronger yen: Fall in profits worth 1.2 trillion yen 
attributable to strong yen 
 
NIKKEI (Page 3) (Slightly abridged) 
May 2, 2008 
 
The yen is making big gains, as can be seen in the fact it 
temporarily tested 95 against the dollar. Following the move, many 
export-oriented companies are revising their nominal exchange rate 
to be adopted for the term ended in March 2009. Many companies have 
set the rate at 100 against the dollar, about 14 yen higher than the 
previous term's level. Other companies have set it a little lower 
than 100 yen. The likelihood is that listed companies will report a 
decline in profits in the term ended in March as a result of the 
strong yen for the first time in seven years. Changes in their 
nominal exchange rates are beginning to affect the exchange market 
as well. 
 
Hardest hit by the strong yen are automakers, which are largely 
dependent on North America. Most manufacturers, including Toyota and 
Nissan, which have yet to release their accounts settlement, will 
likely set the nominal rate at around 100 against the dollar. A 
decline in the value of operating profits of seven leading 
manufactures (Toyota, Honda, Nissan, Mazda, Mitsubishi, Fuji Heavy 
Industries and Suzuki) as a result of the strong yen has reached 
approximately 1.2 trillion yen. Six companies excluding Suzuki are 
expected to suffer a double-digit decline in operating profits. 
 
Honda is expected to record a decline of 303 billion yen in 
operating profits as a result of setting a nominal exchange rate at 
100 against the dollar. Vice President Kondo said, "The number of 
units sold throughout the world, mainly in developing countries, 
will mark an increase. Even so, it would be impossible to make up 
for the impact of the sharp appreciation of the yen with that." 
 
In other industrial sectors, TDK's group operating profits for the 
term ended in March are expected to decline for the first time in 
seven terms. This is due to an exchange loss of 30 billion yen. 
Ricoh has also marked a decline in operating profits worth 
approximately 20 billion yen due to the revised exchange rate. 
Vis-a-vis the euro, the company has set the rate at 160, the level 
similar to that actually adopted in the previous term (about 161 
yen). However, Director Miura said, "The future of the European 
economy is also unclear. It is hard to expect a weaker yen and 
stronger euro trend." Chances are that it would be difficult to make 
up for the appreciation of the yen against the dollar with the 
depreciation of the yen against the euro as before. 
 
However, the strong yen is a boost for companies that import raw 
materials from abroad. Oji Paper Co., which hopes to report an 
increase in current profits in the March term, has set the rate at 
ΒΆ102. President Shinoda noted, "The cost of the procurement of raw 
 
TOKYO 00001216  008 OF 009 
 
 
materials has dropped thanks to the appreciation of the yen. This 
could serve as a positive factor for the company's business 
performance." However, the downside of the strong yen is greater in 
terms of corporate earnings as a whole. 
 
Some companies are overcoming the adverse impact of the yen's 
appreciation. Komatsu has suffered a fall in profits worth 43 
billion yen as a result of the strong yen. However, it can cancel 
out the loss with demand from emerging countries, such as China. Its 
operating profits for the term ended in March are expected to mark 
an 8 PERCENT  increase, compared with the preceding term. This is 
ascribable to its effort to spread revenue bases worldwide in a 
balanced manner. Other export-oriented companies are expected to 
further accelerate their move to develop markets in emerging 
countries. 
 
(9) Expenses needed to implement DPJ-proposed polices to exceed 20 
trillion yen -- increase due to abolition of provisional gas tax 
rate 
 
NIKKEI (Page 2) (Abridged slightly) 
April 30, 2008 
 
Estimates for expenses needed to realize the policies proposed by 
the Democratic Party of Japan (DPJ) have expanded to 20 trillion 
yen. The reason is not just because it calls for abolishing the 
provisional gas tax rate and adopting a package of emergency 
economic measures. The DPJ also has proposed many pork-barrel-type 
policies.  It has decided to expand sectors eligible for an 
individual income compensation plan for farmers that had been 
incorporated in its manifesto (campaign promises) issued for the 
Upper House election last year to now cover the livestock, forestry 
and fisheries sectors, as well. Even some party members are 
concerned about how such fiscal resources would be secured. 
 
The manifesto, which estimates major policy expenses to be 15.3 
trillion yen, mentions that funds are, in principle, to be drawn 
from the abolition of system of special budget accounts. It also 
includes a goal of moving the primary balance of the central and 
local governments into the black by fiscal 2011. 
 
Fiscal resources for implementing the DPJ's policy proposal have 
further expanded due to additional policy proposal the party made 
after the Upper House election. The estimated annual drop in 
revenues due to the abolition of provisional gas tax rate for 
special-purpose road-construction revenues would reach approximately 
2.6 trillion yen. The party's proposed package of emergency economic 
measures would cost 3.5 trillion yen. The DPJ says that it would 
cover revenue shortfalls following the abolition of the provisional 
gas tax rate by squeezing the state's road budget. However, it has 
given up on a plan to prepare a bill to prohibit public money from 
being spent for road-related public utility corporations. It is thus 
finding it difficult to map out a concrete plan that would come up 
with the needed fiscal resources. 
 
The DPJ plans to make a freeze on the present consumption tax rate a 
campaign pledge for the next Lower House election. With an eye on 
the next general election, the party appears to be playing up only 
its rosy policies, while avoiding touching on policies that entail 
an increased fiscal burden. The party will shortly map out an 
Agriculture, Fisheries, Farming, Fishing and Mountain Villages 
Revitalization Vision. The envisaged initiative is expected to 
 
TOKYO 00001216  009 OF 009 
 
 
mention that the coverage of its individual income compensation 
scheme intended to compensate gaps between production costs and 
market prices with tax money will be extended to sectors other than 
farming, such as the livestock, forestry and fishing industries. 
Expenses needed to implement this policy are estimated at 
approximately 250 billion yen. 
 
The party included in its proposed set of emergency economic 
measures a policy intention of using a so-called hidden slush fund 
that the government allegedly has, such as surpluses from the 
special foreign exchange funds account. President Ichiro Ozawa also 
advocated using the balance brought forward from the special road 
account as a regional measure to assist local governments suffering 
from revenue shortfalls once the provisional tax rates are scrapped. 
The DPJ thus plans a two-step strategy of making ends meet  using 
the hidden slush fund for the time being and then correcting the 
waste in the use of tax money over the mid- to long term. 
 
DPJ policy and necessary expenses 
 
Policy Expenses needed Measures to secure funds 
Manifesto for Upper House election 
? Using the consumption tax for the minimum guaranteed pension 
payout  system 
? Create a child allowance 
? Individual income compensation for farmers 
? Abolishing expressway tolls 15.3 trillion yen Eliminating waste, 
by adopting a package subsidy offering system, rooting out 
bid-rigging practices, cutting the cords of golden parachute 
(amakurari practice), abolishing special budget accounts and ending 
the income tax deduction for spouse. 
Bills submitted after Upper House election 
? Abolishing provisional tax rates, such as the gas tax rate 
? Assisting gas stations 2.6 trillion yen 
 ASTERISK 
 
50 billion yen Squeezing the state budget for roads, considering 
measures to deal with global warming, using balance brought forward 
from the special road account 
Improving labor conditions for care-givers 90 billion yen Using 
surpluses from national burdens of nursing-care subsidy 
Subsidizing medical expenses for hepatitis patients 28 billion yen 
The government has already secured 21 billion yen. 
Emergency economic measures (including offering 2 trillion yen to 
local governments, measures for a shortage of doctors) 3.5 trillion 
yen Slashing costs of public works and reviewing the placing of 
project orders with public utility corporations at a relatively 
higher prices. Using the so-called buried funds in special accounts. 
 
Income compensation for the livestock, forestry and fisheries 
industries. 250 billion yen Streamlining special public corporations 
and abolishing special accounts. 
 
(N.B. Some of figures for necessary expenses are estimates.) 
ASTERISK  denotes a decrease in revenues. 
 
DONOVAN