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UNCLAS SECTION 01 OF 15 TOKYO 001241 
 
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 05/08/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Profile of Lt. Gen. Edward Rice, first African-American to hold 
USFJ command post  (Nikkei) 
 
Visit of China's President Hu: 
5) Japan's desire for seat on UN Security Council "understood" by 
Chinese President Hu Jintao in summit talks with Prime Minister 
Fukuda  (Nikkei) 
6) Japan-China summit meeting: Issues of Tibet, poisoned dumplings, 
and history avoided  (Nikkei) 
7) Fukuda, Hu agree to "early resolution" of pending gas-field 
development issue  (Asahi) 
8) DPJ President Ozawa in meeting with China's President Hu talks 
about reform  (Yomiuri) 
9) Tibet issue comes up in Hu's meetings with senior members of each 
party  (Mainichi) 
10) Disgruntlement among LDP lawmakers for lack of toughness on the 
issues by Fukuda in meeting with China's President Hu  (Mainichi) 
11) Hu appeals to Japanese business leaders to promote investment in 
China in the environmental-protection area  (Nikkei) 
12) Difficult for Japan to fulfill promise to China of opening up 
rice exports  (Tokyo Shimbun) 
 
13) Japan joins other donors to offer emergency aid to 
cyclone-devastated Burma (Myanmar)  (Asahi) 
 
14) Japan to provide Sudan with 20 billion yen in aid over four 
years  (Asahi) 
 
Food crisis: 
15) Japan's proposal to revise restrictions on food exports runs 
into road block as Brazil and other countries react sharply  (Asahi) 
 
16) New government farm policy would use rice for bread and feed due 
to world prices of feed grain skyrocketing  (Mainichi) 
 
Political agenda: 
17) Democratic Party of Japan (DPJ) will not file a censure motion 
in the Upper House against Fukuda over the road-funds issue  (Tokyo 
Shimbun) 
18) With Fukuda Cabinet support rates at record lows, ruling parties 
favor postponing next Lower House election until next year  (Tokyo 
Shimbun) 
19) Lower House to override vote on road bills on the 13th  (Tokyo 
Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
In exclusive interview with Asahi, Microsoft Chairman Bill Gates not 
positive about making another offer to Yahoo 
 
Mainichi: 
Japan-China summit: Agreement reached on resumption of dialogue to 
discuss human rights issues; Concessions also made on gas 
 
TOKYO 00001241  002 OF 015 
 
 
exploration in East China Sea 
 
Yomiuri: 
Japan-China summit confirms joint development of Shirakaba gas field 
in East China Sea 
 
Nikkei: 
METI to label each product's amount of CO2 emissions in cooperation 
with major retailers, possibly in next fiscal year 
 
Sankei: 
Japanese and Chinese leaders agree to promote mutually beneficial 
relations 
 
Tokyo Shimbun: 
Japanese and Chinese leaders reach a basic agreement on sea waters 
where both sides will explore gas fields 
 
Akahata: 
JCP and the Chinese Communist Party confirm strengthening new 
relationship during meeting between JCP Chairman Shii and President 
Hu Jintao 
 
2) EDITORIALS 
 
Asahi: 
(1) Japan-China summit: New bilateral cooperation to be tested 
(2) Burma hit by cyclone: Open doors to receive humanitarian aid 
from other countries 
 
Mainichi: 
(1) Japan-China summit: Two countries need to foster mutually 
beneficial relations 
(2) Reform of MOD: Supremacy of civilian control unnecessary now? 
 
Yomiuri: 
(1) Japan-China summit: Question is how best to use joint statement 
(2) New political system in Russia: Can Russia restore international 
confidence? 
 
Nikkei: 
(1) More efforts by Japanese and Chinese leaders needed after adding 
momentum to promotion of strategic and mutually beneficial relations 
 
 
Sankei: 
(1) Japan-China summit: Mutually beneficial relations must be proved 
by action 
(2) Two-headed structure starts in Russia: We must pay attention to 
Moscow's energy diplomacy 
 
Tokyo Shimbun: 
(1) Japan-China joint statement: Be brave enough to touch on sore 
spots 
(2) Ongoing U.S. presidential campaign reveals America's hesitation 
 
Akahata: 
(1) Japan needs to hurriedly review domestic laws to ratify the UN 
Disability Convention 
 
3) Prime Minister's Official Residence (Kantei) 
 
 
TOKYO 00001241  003 OF 015 
 
 
Prime Minister's schedule, May 6 
 
NIKKEI (Page 2) (Full) 
May 8, 2008 
 
Morning 
Spent time at his official residence. 
 
14:53 
Met Waseda University Professor Koichiro Inahata. 
 
16:16 
Met Ambassador to China Miyamoto, Deputy Foreign Minister Sasae and 
Asian and Oceanian Affairs Bureau Director-General Saiki. 
 
18:07 
Hosted a welcome dinner for Chinese President Hu Jintao at a French 
restaurant at Hibiya Park. 
 
20:23 
Returned to his official residence. 
 
Prime Minister's schedule, May 7 
 
NIKKEI (Page 2) (Full) 
May 8, 2008 
 
08:59 
Attended a welcome ceremony for President Hu and his wife at the 
Imperial Palace. 
 
09:52 
Returned to his official residence. 
 
10:21 
Held a ceremonial photograph session with President Hu at the 
Kantei, followed by a summit meeting with him. 
 
12:16 
Signed a joint statement, followed by a joint press conference. 
 
13:15 
Inspected the "Touchable Globe" with President Hu. 
 
15:10 
Met Chief Cabinet Secretary Machimura and Assistant Deputy Chief 
Cabinet Secretary Saka, followed by LDP Administrative Reform 
Headquarters chief Chuma and chief secretary Miyazawa. 
 
16:03 
Met Columbia University Professor Gerald Curtis, followed by Deputy 
Chief Cabinet Secretary Futahashi and Assistant Deputy Chief Cabinet 
Secretary Yanagisawa. 
 
17:01 
Attended a joint meeting of the Food, Agriculture, Farm Village 
Policy Promotion Headquarters and the Strategic Council to Paint the 
Future of Food. 
 
18:20 
Returned to his official residence. 
 
 
TOKYO 00001241  004 OF 015 
 
 
19:12 
Attended a welcome banquet for President Hu at the Imperial Palace. 
 
22:34 
Retuned to his private residence in Nozawa. 
 
23:08 
Returned to his official residence. 
 
4) Newsmaker: Edward A. Rice, Jr., 1st African-American to command 
USFJ; Picked for experience in emergency readiness 
 
NIKKEI (Page 5) (Full) 
Eve., May 7, 2008 
 
Tsuyoshi Sunohara, senior writer 
 
On Feb. 25, a new face showed up at the headquarters of U.S. Forces 
Japan (USFJ) in Yokota-the keystone of the alliance between Japan 
and the United States. The new face is Lt. Gen. Edward A. Rice, Jr., 
52, who is the 22nd commander of USFJ and the commander of the 5th 
Air Force. U.S. Ambassador to Japan Schieffer is also sure that Lt. 
Gen. Rice is "a man with a promising future in the U.S. military." 
 
Lt. Gen. Rice reminds us of Hollywood actor Denzel Washington. He 
exudes the kind of intelligence demonstrated by U.S. Secretary of 
State Rice, with whom he shares the same surname. New USFJ Commander 
Rice had been an object of public attention in Japan before his 
arrival as the first African-American to command USFJ. 
 
The U.S. Pacific Command (PACOM), headquartered in Hawaii as the 
"Pacific guard," sent Lt. Gen. Rice to Japan. Its aim, however, was 
on a different plane. In the region, there are such issues as North 
Korea's nuclear and missile development and China's high-pitch 
modernization of the People's Liberation Army. With an eye on these 
developments, PACOM Commander Keating put forward Lt. Gen. Rice, who 
is experienced in responding to emergencies, in an aim to buttress 
the bilateral alliance. 
 
Lt. Gen. Rice graduated from the Air Force Academy in 1978. After 
that, he became an Air Force pilot. The general is a command pilot 
with more than 3,800 flying hours. He has flown the B-2, a stealth 
strategic bomber. Before his Japan assignment, Lt. Gen. Rice was 
commander of the 13th Air Force in Guam and vice commander of the 
Pacific Air Forces in Hawaii. 
 
Lt. Gen. Rice's assignment in Hawaii was three and a half years 
long. In those days, the general accomplished two heavy 
responsibilities. One was to command a new warfighting 
headquarters-also known as Kenny Headquarters-established in the 
13th Air Force. The other role was to serve as deputy commander for 
a joint task force (JTF), which is commanded by the U.S. Pacific 
Fleet commander and is in charge of unified control over the four 
armed services under PACOM. 
 
In both positions, Lt. Gen. Rice was tasked mainly with studying 
scenarios in detail for potential emergencies in the Asia-Pacific 
region and working out contingency plans between the U.S. military 
and allies. 
 
One of the USFJ commander's major functions-according to the Foreign 
Ministry-was to "oversee U.S. military bases in Japan in ordinary 
 
TOKYO 00001241  005 OF 015 
 
 
times," such as preventing U.S. military personnel from committing 
crimes. However, Lt. Gen. Rice has a unique career. Moreover, the 
new USFJ commanding general says he has never been assigned to 
Japan. The general's arrival at the USFJ post could have USFJ 
headquarters undergo a sea change in its position and nature for 
dealing with emergencies. 
 
The new USFJ chief readily answered a question about his goals as 
USFJ commander: "One is to carry out the U.S. military realignment 
plan completely, and another goal is to improve bilateral joint 
training exercises for such tasks as the defense of Japan." He 
stressed: "The road to the U.S. military's realignment is long and 
difficult. However, I want to have the planned relocation of (the 
U.S. Marine Corps') Futenma base (in Okinawa) and all other agreed 
plans move forward, based on the agreement between Japan and the 
United States." 
 
Lt. Gen. Rice envisages having the bilateral alliance used for close 
cooperation in this new era, with an eye to the deployment of 
missile defense (MD) systems. In a change-of-command ceremony this 
February, USFJ Commander Rice stated: "I believe that our bilateral 
alliance will be stronger than ever in the years ahead." 
 
5) Japan, China to explore ways on diplomatic and security fronts; 
Hu simply expresses "understanding" toward Japan's desire for 
permanent UNSC seat without giving assurance for support 
 
NIKKEI (Page 2) (Abridged slightly) 
 
May 8, 2008 
 
Through their summit meeting yesterday, Japan and China proposed 
close cooperation in bringing peace and stability to Asia and the 
world on the diplomatic and security fronts. At the same time, 
however, rather than over environmental and trade issues, the two 
countries' national interests and pride might clash over their 
respective responses to the North Korean issue and reform of the 
United Nations, on which Japan puts high priority. The two countries 
are likely to be forced to explore ways to coordinate their 
interests in building a strategic, mutually beneficial 
relationship. 
 
The meeting between Prime Minister Yasuo Fukuda and visiting Chinese 
President Hu Jintao lasted slightly less than two hours, exceeding 
the original schedule by over 30 minutes. A mood of cooperation 
filled the session. When the prime minister said, "Let us contribute 
to the development of Asia and the world," President Hu immediately 
answered, "I completely agree." 
 
It was significant that the two leaders released a joint statement 
after their meeting pledging to address not only bilateral issues 
but also global challenges. But gaps in views on specific issues 
were also evident. 
 
The North Korean issue was a prime example. Fukuda for instance 
said, "I would like to ask for China's continued understanding and 
cooperation on the issue of Japanese nationals abducted to North 
Korea." Hu simply replied, "I believe outstanding issues (between 
Japan and North Korea) will be resolved appropriately." 
 
Although Fukuda and Hu also agreed to make efforts for an early 
settlement of the nuclear issue, the areas of emphasis do not 
 
TOKYO 00001241  006 OF 015 
 
 
coincide altogether. Japan's basic policy is to proceed with the 
nuclear and abduction issues simultaneously. China, on the other 
hand, wants to swiftly push the abduction forward in order to elicit 
aid to North Korea from Japan for resolving the nuclear issue, 
according to a source connected to Japan-China relations. 
 
There still is a perception gap over Japan's bid for a permanent 
seat on the UN Security Council, as well. To Fukuda, Hu expressed a 
favorable stance, saying, "I understand that Japan hopes to make 
greater contributions to the peace and development of the world," 
adding, "I hope Japanese people will sense China's positive stance 
from what I just said." 
 
But Hu did not give assurances, in stark contrast to his meeting 
this past January with Indian Prime Minister Singh. That meeting 
also produced a joint statement noting that China understands and 
supports India's desire to play a greater role in the United 
Nations, including the Security Council. 
 
Equating the UNSC permanent membership with major power status, 
China does not want to easily allow Japan, its Asian rival, to gain 
a permanent seat. According to the same source, coordination lasted 
until the last moment on how to mention UN reform in the joint 
statement. In the end, the two countries decided not to use a bold 
expression. 
 
6) Fukuda-Hu talks 
 
NIKKEI (Page 2) (Abridged slightly) 
May 8, 2008 
 
Hu takes hard-line stance on Tibet 
 
In yesterday's summit between Prime Minister Yasuo Fukuda and 
visiting Chinese President Hu Jintao, attention was focused on 
statements on the Tibet issue. The summit immediately followed a 
direct dialogue between the Chinese government and an aid to the 
14th Dalai Lama. President Hu said to Fukuda, "It is not a human 
rights issue. It is a question of a sovereign state and of whether 
there will be a breakup of the homeland or unity." Prime Minister 
Fukuda also avoided touching on the core part. 
 
Hu criticized the riots in the Tibet Autonomous Region in March by 
describing them as a gravely violent criminal act. Hu also said in a 
press conference, "I hope the Dalai Lama will stop activities to 
break up the homeland, contriving and inciting violence, and 
attempts to destroy the Beijing Olympics." 
 
Fukuda simply said without making any requests: "The international 
community is becoming increasingly concerned about the situation. I 
hope the Beijing Olympics will be a success, and I would like China 
to offer a full explanation." 
 
Frozen dumpling food poisoning cases 
 
Fukuda commented in a strong tone about the Chinese-made frozen 
dumplings food poisoning issue, "The facts have not been uncovered, 
which is not good for Japan or China." Although the two sides 
confirmed a plan to step up their investigations, the two leaders 
stopped short of mentioning specific measures. 
 
Fukuda said: "Countless lives were placed at risk. We absolutely 
 
TOKYO 00001241  007 OF 015 
 
 
cannot leave the matter unresolved." In response, Hu said: "We put 
high priority on food safety as a matter concerning the interests of 
the general public. We have persistently investigated the matter and 
notified the relevant departments in Japan of the results." 
 
Future-oriented historical perceptions 
 
In his talks with Fukuda and the joint statement that followed, 
President Hu avoided underscoring China's perception on historical 
events. The Chinese president apparently wanted to avoid reigniting 
anti-Japanese sentiment in China, for that would harm the stability 
of the country. 
 
In his speech at a banquet held at the Imperial Palace last night, 
Hu refrained from touching on Japan's acts of aggression against 
China in the past. In his talks with Fukuda, the president also 
simply said: "I would like to address (historical issues) 
appropriately." The joint statement, too, simply indicates the two 
countries' plans to squarely face history without specifying an 
apology from Japan. 
 
Taking the opposite tack of then Chinese President Jiang Zemin's 
visit to Japan in 1998, when Jiang repeatedly brought up historical 
issues, Hu succeeded in generating a mood of seeking a 
future-oriented relationship. 
 
7) Japan-China summit: Early settlement of gas field exploration 
issue in sight 
 
ASAHI (Page 1) (Full) 
May 8, 2008 
 
Japan and China have confirmed their stance of aiming at an early 
settlement of the issue of jointly developing gas fields in the East 
China Sea, the greatest pending issue between the two countries. 
Following the move, they will enter near final talks in the hope of 
reaching a settlement by around the summer. Though specific details 
of the talks, such as a method of joint exploration and areas 
subject to the project, have yet to be clarified, both leaders have 
indicated that the talks are now in the final phase. 
 
Prime Minister Fukuda during a joint press conference after the 
summit stressed, "There has been a major development (in discussions 
over the gas field issue). We confirmed that a settlement is in 
sight." Chinese President Hu Jintao also said, "We have had a vision 
of the issue's resolution. We agreed to accelerate the talks so as 
to reach an agreement at the earliest possible time." 
 
Fukuda visited China last December and met with Premier Wen Jiabao. 
At that time, they shared the view that there had been a positive 
development on a concrete measure of setting the issue. This time, 
Fukuda and Hu agreed to adopt words that hgo a step further. 
 
Asked about a specific timeframe for reaching an agreement on the 
gas field issue, the prime minister yesterday evening told 
reporters, "We want to reach an agreement at the earliest possible 
date." It is viewed that the Japanese government will aim at 
reaching a settlement by the time when the president visits Japan 
again in July to take part in the G-8 summit conference in 
Hokkaido. 
 
A government source said, "What remains to be settled is 
 
TOKYO 00001241  008 OF 015 
 
 
coordination of technical details." It is deemed that Japan and 
China will undertake final coordination over how to deal with the 
Chunxiao (referred to as Shirakaba by Japan) gas field, which the 
Chinese side is developing on its own. 
 
8) DPJ head Ozawa expresses reform expectations of China when 
Japanese political party leaders meet with Chinese President Hu 
Jintao 
 
YOMIURI (Page 4) (Full) 
May 8, 2008 
 
Leaders of the ruling Liberal Democratic Party (LDP), the major 
opposition Democratic Party of Japan (DPJ), the junior coalition 
partner New Komeito, the Japanese Communist Party (JCP), and the 
Social Democratic Party (SDP) yesterday met separately with visiting 
Chinese President Hu Jintao at a hotel in Tokyo. 
 
DPJ President Ozawa expressed his expectations of China's efforts to 
reform its own systems by noting: "When I was young, I watched a 
movie depicting the Italian Revolution. In the movie, a large 
landowner supported the revolutionary army and the duke said, 'For 
us to remain as we are, we need to change.' Making this thinking my 
political philosophy, I have been engaged in politics to date." In 
response, President Hu said, "I would like to continue to pursue a 
reform and open-door policy. Doing so is the will of the nation and 
the basis of our party." Hu did not mention specific issues, such as 
Tibet and the poisoned-dumpling incidents. 
 
LDP Secretary General Ibuki touched on the gas exploration in the 
East China Sea and the poison dumplings and gave this positive 
comment: "It was good to confirm (during the Japan-China summit) 
that government offices in charge would actively discuss the 
issues." In response, Hu said: "It benefits both sides that Prime 
Minister Fukuda and I have reached a basic agreement in this 
regard." Hu also suggested exchanges between junior lawmakers of the 
two countries. 
 
In a session between Hu and New Komeito Representative Ota, Ota 
asked China to resolve the Tibet issue in a peaceful manner. In 
response, Hu explained about the dialogue with Tibet's spiritual 
leader, the 14th Dalai Lama, and stressed: "The followers of the 
Dalai Lama must end their violence and their moves to destroy the 
Beijing Olympics." In a meeting with Hu, SDP President Fukushima 
said: "We respect (the way China is tackling the North Korean 
nuclear issue)." JCP Chairman Shii and Hu confirmed exchanges 
between their parties and expansion of the exchanges. 
 
9) Senior members of political parties meet Chinese president, 
shelve Tibet issue to demonstrate friendship 
 
MAINICHI (Page 5) (Full) 
May 8, 2008 
 
Visiting Chinese President Hu Jintao met separately with senior 
lawmakers of various political parties yesterday. On the outstanding 
issue of Tibet, they took a cautious stance, probably aiming at 
creating an atmosphere of friendship. 
 
Liberal Democratic Party Secretary General Bunmei Ibuki, when he 
visited China in mid-April, asked President Hu to disclose 
information on the riots in Tibet. In the meeting yesterday, though, 
 
TOKYO 00001241  009 OF 015 
 
 
he just said: "I hope (China) will grow into a country in which 
different races can live together under the lead of President Hu." 
 
New Komeito President Akihiro Ota told Hu: "I would like to see a 
peaceful settlement of the issue reached by talks among the parties 
concerned." Hu explained to Ota about the talks held between the 
Chinese government and a delegation sent by the Dalai Lama. He then 
reiterated: "The Dalai Lama group must follow China's efforts to 
halt violent activities and moves to splinter the nation and to 
undermine the Beijing Olympics." Ota expressed his intention to 
visit China in early June. 
 
The Democratic Party of Japan sent a delegation of 400 members last 
December. On Tibet, President Ichiro Ozawa made no reference in a 
meeting with Hu yesterday, although he had said regarding the Tibet 
issue this March: "In order for the Chinese Communist Party to 
remain in power, this issue must be resolved." 
 
10) LDP conservatives dissatisfied at prime minister's weak-kneed 
stance in meeting with Chinese president on Tibet, tainted dumpling 
issues 
 
MAINICHI (Page 5) (Excerpts) 
May 8, 2008 
 
Following their meeting yesterday, the leaders of Japan and China 
signed a joint statement that pledges to establish a mutually 
beneficial relationship based on common strategic interests. Senior 
members of the government and the ruling coalition have praised the 
contents of the meeting, but conservative lawmakers of the Liberal 
Democratic Party have voiced their dissatisfaction at Prime Minister 
Fukuda's failure to take a stern stance about such pending issues as 
Tibet and the poisoning outbreak caused by tainted Chinese 
dumplings. One member complained: "The prime minister did not take a 
stern attitude toward China." Conservative members have stopped 
short of outwardly criticizing Fukuda for the pro-Chinese stance his 
cabinet has taken since it was launched last September. However, 
depending on future developments in the Tibetan issue and other 
pending problems, conservative members may try to undermine the 
Fukuda administration, which has been in a quandary over declining 
public support. 
 
A senior member of the "real conservative policy study group," 
composed of LDP and independent lawmakers and chaired by former 
Policy Research Council Chairman Shoichi Nakagawa, expressed his 
discontent at the outcome of the Japan-China summit. He said: "The 
prime minister put pending issues on the back burner without 
touching on them. The only visible fruit of the meeting was China's 
pledge to loan a pair of giant pandas to Japan." Another senior 
member commented: "The people are also feeling dissatisfied with the 
prime minister's weak-kneed stance toward China. Public support for 
the Fukuda cabinet is expected to drop further." 
 
The study group was set up last December to continue the slogan 
advocated by former Prime Minister Shinzo Abe of freeing Japan from 
the postwar Japan, including constitutional revision. About 80 
conservative lawmakers have joined the group. On April 30, the study 
group held a symposium in Tokyo to consider the state of human 
rights in China, inviting a former member of the refugee Tibetan 
government as a lecturer. Abe and former Secretary General Taro Aso, 
who is aiming at becoming Fukuda's successor, also participated in 
the symposium. Nakagawa there lashed out at China's response to the 
 
TOKYO 00001241  010 OF 015 
 
 
Tibet issue, remarking: "The world is apprehensive about whether the 
Beijing Olympics will be held in a happy atmosphere as a sports 
event." A senior member of the study group said: "We held the 
symposium prior to the Japan-China summit, with the aim of urging 
the prime minister to take a resolute attitude toward China." 
 
11) President Hu reach out to Japanese business leaders for 
investment in China's energy-saving area 
 
NIKKEI (Page 5) (Full) 
May 8, 2008 
 
Visiting Chinese President Hu Jintao yesterday took part in a 
luncheon hosted by Japan's economic organizations to welcome him. Hu 
in a speech sought proactive investment in China by Japan regarding 
measures to combat global warming greenhouse gasses. He noted, 
"Japan has technology that is way ahead of other countries in the 
environment and energy-saving areas. 
 
Hu proposed private sector-level cooperation in such areas as 
developing local economies, exchanges of high technology and 
overseas advance of companies as well as the environmental and 
energy-saving areas. In particular, he was keen to characterize the 
environmental area as a new key area of bilateral economic and trade 
cooperation. Fujio Mitarai, chairman of the Japan Business 
Federation (Nippon Keidanren), said, "We can further contribute to 
China through the transfers of eco-friendly products, technology and 
know-how." 
 
Japan has called on China to agree on its proposal for adopting a 
sector-specific approach of cutting global warming greenhouse 
gasses. However, it appears that no in-depth discussions on the 
proposal took place. Emerging from the meeting, Mitarai told 
reporters, "It is important for major CO2 emitters to take part in 
efforts to deal with measures to combat global warming greenhouse 
gasses. We hope that China will show willingness." 
 
The luncheon party brought together approximately 180 participants, 
including Masamitsu Sakurai, representative director of the Japan 
Association of Corporate Executives (Keizai Doyukai), Nobuo 
Yamaguchi, honorary chairman of the Japan Chamber of Commerce and 
Industry, and Hiroshi Okuda, former Nippon Keidanren chairman and 
special advisor to the cabinet as well as Mitarai. 
 
12) Number of hurdles to full lifting of embargo on rice exports to 
China: High prices, special pest management 
 
TOKYO SHIMBUN (Page 9) (Excerpts) 
May 8, 2008 
 
Tokyo and Beijing during the bilateral summit yesterday formally 
agreed on the complete lifting of the embargo on Japanese rise 
exports to China, which had been carried out on a limited basis. It 
has taken about a year for the two countries to reach a formal 
agreement since the ministerial agreement in April last year due to 
the trouble in the work of boiling down quarantine conditions. The 
two countries reached a settlement over the length of a period for 
conducting an insect research and a specific fumigating method. 
 
Japan pins high hopes on rice exports to China, as its domestic 
consumption is sluggish. However, sales in China of Japanese rice, 
which has been exported on a provisional basis, are remaining flat. 
 
TOKYO 00001241  011 OF 015 
 
 
High prices -- 10-20 times higher than the prices of Chinese rice -- 
appear to be the reason that Chinese consumers have shunned Japanese 
rice. Selling Japanese rice in China is bound to encounter future 
difficulties, as well. 
 
Conditions for steady exports of Japanese rice had been expected to 
be set by March this year. However, one senior Ministry of 
Agriculture, Forestry and Fisheries (MAFF) said, "Coordination has 
taken an unexpectedly long time." Customs clearance procedures for a 
portion exported in January on a provisional basis became stacked up 
due to the food poisoning incident involving Chinese-made gyoza 
dumplings. The incident has made sources involved acutely feel the 
difficulty of exporting rice to China. 
 
China's annual consumption of rice is 130 million tons, which is 
approximately 16 times more than the amount consumed in Japan. Japan 
intends to sell its rice, which is far more expensive than Chinese 
rice, to wealthy customers as a luxury-brand product. 
 
Following the basic agreement, 24 tons of Japanese rice temporarily 
put on the market in Beijing and Shanghai in July last year were 
sold out immediately. 
 
However, such healthy sales did not last. MAF revealed that though 
100 tons of additional rice had been exported between last December 
and this January, only 40 tons have been sold." 
 
13) Japan joins other donors to announce aid to cyclone-devastated 
Burma (Myanmar) 
 
ASAHI (Page 9) (Excerpt) 
May 8, 2008 
 
The international community is responding country after country with 
announcements of assistance for Burma, which has been devastated by 
a cyclone. According to Reuters, the total of commodities and money 
announced as of yesterday by international organizations and 
countries has climbed to approximately $28 million (or approximately 
2.9 billion yen). 
 
The Japanese government announced yesterday that it would continue 
its emergency aid equivalent to approximately 28 million yen, as 
announced on May 5 for Burma, which had been struck with a 
devastating cyclone. It announced also that it would add the 
equivalent of approximately 36 million yen in the form of blankets, 
prefabricated water tanks, and other equipment. 
 
The Japanese government since 2003 has frozen aid in principle to 
the military junta in Burma. However, Foreign Ministry spokesperson 
Kazuo Hodaka told a press briefing on May 7 that the new aid was 
"based on humanitarian considerations." 
 
14) Japan to provide 20 billion yen in aid to Sudan over next four 
years 
 
ASAHI (Page 4) (Full) 
May 8, 2008 
 
Shinya Minamijima, Oslo 
 
At a donors' conference for Sudan held in Oslo yesterday to discuss 
how to help the southern part of Sudan to rebuild itself, the 
 
TOKYO 00001241  012 OF 015 
 
 
Japanese government declared that it would provide some $200 million 
(approximately 20.8 billion yen) over next four years from 2008 
through 2011. The conference was joined by 33 countries and eight 
international institutions. The conference closed yesterday by 
promising an offer of a total of some $4.8 billion dollars (499.2 
billion yen) in aid to Sudan. Japan will provide Sudan with food aid 
via international institutions and help returned Sudanese refugees 
to settle down. Japan also will directly help the southern 
autonomous government of Sudan and resume bilateral aid, which has 
been suspended since 1992. 
 
15) Japan's proposal to revise restrictions on food exports 
encountering difficulty, as Brazil also balks 
 
ASAHI (Page 7) (Full) 
May 8, 2008 
 
Coordination has bogged down regarding Japan's proposal to revise 
food-export restrictions, which are regarded as the cause of the 
current skyrocketing prices of food supplies. The reason is that 
Japan is unable to obtain the understanding of food-exporting 
countries. The Japanese government aimed to have its proposal 
included in the draft agreement on the agricultural area of the 
World Trade Organization (WTO) expected to be announced in mid-May, 
but the probability is high that it will not make it on time. 
 
Agriculture Minister Wakabayashi on May 5 met in Brazil's capital 
city Brazilia with Foreign Minister Celso Amorim. Although he 
brought up Japan's proposal, Foreign Minister Amorim reportedly told 
him: "The standpoints of food-exporting countries and importing 
countries are different." Brazil is a major exporter of soy beans, 
and it has stopped exports of rice that is stored in government 
warehouses. 
 
Japan made the proposal to the WTO on April 30. China and India 
reportedly made statements seeking to maintain the status quo that 
in effect restricts the free flow of exports. Malaysia criticized 
Japan by calling it a contradiction for Japan, which protects its 
agriculture with tariffs to criticize other countries for 
restricting exports. A senior official in the Agriculture Ministry 
stated: "Coordination will inevitably take time." 
 
The ministry now is thinking of seeking the approval (of its 
proposal) of the United States, Canada, and Australia, in addition 
to 40 to 50 other countries in Africa that are directly facing a 
food crisis. 
 
16) Guidelines for new agricultural policy proposes using domestic 
rice as raw material for bread and animal feed to cope with soaring 
grain prices worldwide 
 
MAINICHI (Page 3) (Full) 
May 8, 2008 
 
The government's policy promotion task force on food, agriculture, 
and farm villages, headed by Prime Minister Yasuo Fukuda, yesterday 
finalized a set of guidelines for the nation's future agricultural 
policy that includes measures to ensure food security. The 
guidelines titled, "New agricultural policy in 2008 for the 21st 
century," propose that Japan use rice as raw material for bread and 
as animal feed, reflecting soaring grain prices worldwide. 
 
 
TOKYO 00001241  013 OF 015 
 
 
The guidelines set forth the following measures: (1) provide the 
people with more information regarding food supply and demand; (2) 
the Ministry of Agriculture, Forestry, and Fisheries (MAFF) is to 
exploit means to predict the supply and demand of food from a 
medium- to long-term perspective; and (3) support food development 
by strengthening cooperation between the agriculture and forestry 
industry and the food service industry. 
 
The guidelines were compiled based on proposals made in a meeting of 
the Strategy Council on the Future of Food (chaired by Tokyo 
University Professor Shinichi Shogenji), an experts' panel under 
MAFF. The meeting was held jointly by MAFF and the task force. The 
council proposed increasing the nation's food self-sufficiency rate 
by taking such measures as making use of domestic rice and other 
farm products and boosting emergency food stocks in order to cope 
with the current deteriorating global food situation. 
 
17) DPJ will not submit censure motion against Prime Minister Fukuda 
over road issue, but will attack over new health care system for 
elderly 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
May 8, 2008 
 
The main opposition Democratic Party of Japan (DPJ) decided 
yesterday on a policy of not submitting a censure motion against 
Prime Minister Yasuo Fukuda even if the ruling parties revote on a 
bill amending the Road Construction Revenues Special Exemption Law, 
intended to reinstate the road-related tax rates for 10 years, on 
May 12 or after. The DPJ intends to put off the submission of such a 
censure motion. 
 
The DPJ also forwent the submission of a censure motion against the 
prime minister when the ruling camp took a second vote on a bill 
amending the Special Taxation Measures Law on April 30. The dominant 
view in the DPJ was that since the bill amending the special 
exemption law went against the government-ruling coalition's policy 
of integrating the tax revenues earmarked for road construction into 
the general account budget starting fiscal 2009, a censure motion 
should be submitted if a revote was taken. 
 
However, if the prime minister were to ignore a censure motion, the 
DPJ would have no other choice but to boycott all Diet deliberations 
for about one month until June 15 when the ongoing session ends. 
Therefore, the largest opposition party has now decided that it is 
better for it to go on the offensive over the new medical system for 
those 75 and over, in which the public had a strong interest, 
through deliberations. A senior DPJ member, after a meeting with 
President Ichiro Ozawa and other executives, told the press: "After 
thoroughly deliberating on the new medical system for the elderly, 
we want to consider the submission of a censure motion against the 
prime minister." 
 
18) With plunge in cabinet support rates, strong calls from ruling 
camp for putting off Lower House dissolution to next year, some also 
urging early replacement of Prime Minister Fukuda 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 8, 2008 
 
In the wake of plummeting support rates for the cabinet of Prime 
Minister Yasuo Fukuda, there are strong calls from members of the 
 
TOKYO 00001241  014 OF 015 
 
 
ruling parties for postponing dissolution of the House of 
Representatives. The prevailing view in the ruling coalition is that 
Lower House dissolution should be put off until immediately before 
the end of the terms of the Lower House members in September next 
year. However, a view will likely be raised that if the support 
ratings for the Fukuda cabinet drop further, Fukuda should be 
replaced by someone else, and the Lower House should be dissolved at 
an early time. 
 
Encouraged by the fact that the approval rating for the main 
opposition Democratic Party of Japan (DPJ) has not gone up, some 
officials in the ruling camp in early April made remarks indicating 
the possibility of early Lower House dissolution, with Liberal 
Democratic Party (LDP) Election Committee Chairman Makoto Koga 
saying: "We should not say there will be Lower House dissolution 
before the end of the year; we should only say there will be one 
soon." 
 
Affected by the start on April 15 of withholding medical insurance 
premiums from the pension benefits of those 75 and over and the 
reinstatement on May 1 of the provisional tax rates, including the 
gasoline tax, an opinion poll conducted on May 1-2 by Kyodo News 
found the approval rating for the Fukuda cabinet has reached a new 
low of 19.8 PERCENT . The rating in the Kyodo poll fell for the 
first time below 20 PERCENT , which is regarded as a danger zone 
(for a prime minister). In public opinion polls by other news 
organizations, the approval ratings for the cabinet were around 20 
PERCENT . 
 
Taku Yamasaki, a former LDP vice president, told the press on May 3 
in Fukuoka City: "It would not be strange if the Lower House were 
dissolved anytime after the fall, but as long as the cabinet support 
rates remain low, (Prime Minister Fukuda) cannot carry that out." 
New Komeito Secretary General Kazuo Kitagawa also stated at a press 
conference yesterday: "We take the figure seriously; now is not the 
time for Lower House dissolution." 
 
A senior LDP member remarked: "We will ignore provocative approaches 
by the DPJ. The Lower House will be dissolved sometime after next 
year's Group of Eight summit." Another senior LDP member also 
pointed out: 
 
"The possibility of Lower House dissolution has been slipping away. 
Although there will be a view calling for replacing the prime 
minister, there are no appropriate candidates." 
 
A former LDP executive member made this comment: 
 
"The Lower House should be dissolved after Prime Minister Fukuda 
realizes a policy of shifting the tax revenues earmarked for road 
construction and maintenance to the general account. This means that 
the Lower House should be dissolved next April or later." 
 
A mid-level LDP lawmaker, however, made this comment opposing the 
postponement of Lower House dissolution: "It will be difficult to 
for the cabinet support rating, having once plunged below 20 PERCENT 
, to make a dramatic recovery. No good will be accomplished by 
waiting (for Lower House dissolution)." A veteran lawmaker said: 
 
"I think a view will be raised that the prime minister should be 
replaced by someone after the G8 summit in July in Hokkaido, and 
that the Lower House should be dissolved to call a snap election." 
 
TOKYO 00001241  015 OF 015 
 
 
 
19) Upper House to vote down bill amending Construction Revenues 
Special Exemption Law on May 12, Lower House to revote on the bill 
on 13th 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
May 8, 2008 
 
The ruling Liberal Democratic Party (LDP) and major opposition 
Democratic Party of Japan (DPJ) held intermittingly a meeting of 
their Diet affairs committee chairmen of the House of Councillors. 
In the meeting, an agreement was reached that the Upper House will 
take a vote on the bill in a plenary session on May 12 after it is 
adopted in a meeting on May 9 of the Financial Affairs Committee. 
 
With this agreement between the LDP and DPJ, it has now been decided 
that the bill will be voted down in the Upper House before May 13 
when 60 days pass after the bill was sent to the upper chamber, 
which is allowed by the Constitution. The ruling coalition plans to 
take a revote on the bill and enact it with its two-thirds majority 
overriding vote. 
 
DONOVAN