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UNCLAS SECTION 01 OF 12 TOKYO 001253 
 
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 05/09/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Visit of Chinese President Hu to Japan: 
4) Deputy Secretary of State Negroponte, arriving in Japan, welcomes 
progress in Japan-China relations  (Tokyo Shimbun) 
5) President Hu Jintao in speech at Waseda University stresses 
future-oriented relations between Japan, China, while touching on 
the history issue  (Tokyo Shimbun) 
6) METI issues trade-barrier report that takes China to task for its 
trade policy, including restrictions on resource exports  (Yomiuri) 
 
 
7) Japan has asked ROK's Lee administration to broker meeting in 
South Korea between the Yokotas and their granddaughter, daughter of 
Megumi Yokota  (Yomiuri) 
 
8) UN special envoy says PKO efforts in Sudan by Japan's SDF would 
be welcome  (Asahi) 
 
9) Foreign Minister Koumura, Australian Foreign Minister Smith 
discuss startup of trilateral talks with United States  (Tokyo 
Shimbun) 
 
10) Non-partisan Diet members study group on depleted-uranium issue 
is launched  (Tokyo Shimbun) 
 
Defense affairs: 
11) Basic law on use of space for defense use to clear the Diet 
today  (Asahi) 
12) Defense Ministry postpones reform process after Ishiba's 
proposal hits a snag with the Prime Minister's Official Residence 
(Yomiuri) 
13) Tokyo Prosecutors throwing the book at defense procurement fixer 
Akiyama, including tax evasion  (Tokyo Shimbun) 
14) Court martial of Iwakuni Marine accused of gang rape finds 
defendant guilty of "unlawful sex without consent"  (Yomiuri) 
 
Political scene: 
15) Former Prime Minister Koizumi: If a Lower-House election were to 
be held now, we would lose up to 150 seats!  (Yomiuri) 
16) Upper House panel to reject today bill amending Road 
Construction Revenues Special Exemption Law  (Tokyo Shimbun) 
17) Cabinet decision on May 13 will eliminate contradiction in Prime 
Minister's policy by limiting use of dedicate road-tax revenues to 
one year  (Tokyo Shimbun) 
18) With Fukuda cabinet popularity plunging in the polls to record 
lows, Democratic Party of Japan (DPJ) is changing Diet strategy to 
engage the ruling parties  (Tokyo Shimbun) 
19) DPJ will attack Fukuda administration for lack of policies, 
homing in on such issues as medical care for the elderly and the 
pension mess  (Nikkei) 
 
20) Toyota expects a 30 PERCENT  drop in its current profits due to 
yen appreciation, high cost of raw materials, and other factors 
(Asahi) 
 
Articles: 
 
 
TOKYO 00001253  002 OF 012 
 
 
1) TOP HEADLINES 
 
Asahi, Mainichi & Sankei: 
Toyota's annual profit likely to drop for the first time in nine 
years 
 
Yomiuri: 
Tokyo found to have asked Seoul to help arrange meeting between 
abductee Megumi Yokota's parents and her daughter 
 
Nikkei: 
MOF mulling ending state contributions to employment insurance with 
aim of constraining social welfare budget 
 
Tokyo Shimbun: 
Akiyama found to have collected 500 million yen from defense firms; 
Prosecutors investigating, envisioning possible tax evasion 
 
Akahata: 
JCP makes appeal for joint action to scrap medical service system 
for elderly 
 
2) EDITORIALS 
 
Asahi: 
(1) New Russian president needs to stand on his own two feet 
(2) Cabinet members need to lead decentralization of authority 
 
Mainichi: 
(1) Russia's new political structure: Can it lead to open country? 
(2) Budget compilation for fiscal 2009 critical in terms of 
financial recovery 
 
Yomiuri: 
(1) Soaring coal prices: Can domestic-produced coal again grab 
spotlight? 
(2) Disaster in Burma: Why does junta refuse humanitarian aid? 
 
Nikkei: 
(1) We hope international assistance to Burma will lead to 
democratization 
(2) Danger of two-headed political structure in Russia 
 
Sankei: 
(1) Disaster in Burma: What is the junta doing? 
(2) Antarctic observation more meaningful 
 
Tokyo Shimbun: 
(1) Skyrocketing oil prices: Invest in energy-saving projects 
(2) Burma's junta pays little attention to the people 
 
Akahata: 
(1) National peace march calling for abolition of nuclear weapons 
marks 50th anniversary this year 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 8 
 
NIKKEI (Page 2) (Full) 
May 9, 2008 
 
 
TOKYO 00001253  003 OF 012 
 
 
10:11 
Attended a Grand Cordon award ceremony at the Imperial Palace. 
 
10:58 
Returned to his official residence. 
 
13:25 
Attended an Order of Golden Silver Star award ceremony at the 
Imperial Palace. 
 
14:02 
Returned to his official residence. 
 
15:15 
Met Rengo (Japanese Trade Union Confederation) President Takagi at 
the Kantei, in the presence of Health, Labor and Welfare Minister 
Masuzoe, Deputy Chief Cabinet Secretary Futahashi, and Assistant 
Deputy Chief Cabinet Secretary Saka. Masuzoe stayed on. 
 
16:25 
Attended along with Chinese President Hu Jintao the opening ceremony 
of the Japan-China Youth Friendship Exchange Year held at Waseda 
University, followed by a Japan-China youth exchange event. 
 
17:40 
Returned to his official residence. 
 
18:24 
Met Deputy Foreign Minister Sasae. 
 
19:13 
Along with his wife, hosted a welcome dinner party for President 
Hu. 
 
21L09 
Returned to his official residence. 
 
4) U.S. Deputy Secretary of State Negroponte hails progress in 
Japan-China relations 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 9, 2008 
 
Administrative Vice Foreign Minister Mitoji Yabunaka late yesterday 
met with visiting U.S. Deputy Secretary of State John Negroponte at 
his ministry's Iikura State Guest House in Azabudai, Tokyo, and 
briefed him on the details of the Japan-China summit on May 7. 
Negroponte said: "On the part of the United States, we welcome the 
progress in Japan-China relations." 
 
Both Yabunaka and Negroponte confirmed that Japan and the U.S. would 
continue to work in close cooperation to resolve the North Korean 
nuclear and abduction issues. 
 
5) Chinese president emphasizes future-oriented relationship in 
speech at Waseda University, refers to Japan's wartime aggression 
 
TOKYO SHIMBUN (Page 1) (Full) 
May 9, 2008 
 
Visiting Chinese President Hu Jintao delivered a speech at Waseda 
University before 900 students yesterday. In the speech, Hu said 
 
TOKYO 00001253  004 OF 012 
 
 
that Japan-China relations "are now at the starting point of a new 
chapter of history and are set to develop further," emphasizing the 
importance of promoting a future-oriented relationship and exchanges 
between young peoples of the two countries. He also stressed that 
China will aim for peaceful development, remarking: "China has taken 
a defensive national defense policy and has not been involved in an 
arms race. (Our progress) will pose no threat to any country." 
 
President Hu talked about how China has developed in the 30 years 
since it opted for a reform and open-door policy. He then expressed 
his gratitude for Japan's assistance to China, saying: "Japan's yen 
loans to China have greatly contributed to modernizing China through 
infrastructure building, environmental protection, and energy 
development." 
 
Hu also referred to Japan's past military aggression for the first 
time since he arrived in Japan on May 6: "The Japanese military's 
invasion of China in the past brought about enormous misfortune to 
the Chinese people and also harmed the Japanese people." He added: 
"China does not forget history not because it continues to harbor 
enmity (against Japan) but because it wants to move into the future 
while learning from the past." 
 
In reference to the fact that 3,000 Japanese young people were 
invited to China in 1984, Hu said: "The seeds planted in our younger 
days will have a lot to offer throughout our lives. We must hand 
down friendship through generations." As part of such efforts, he 
revealed plans to invite 100 students at Waseda University to China 
this year. 
 
6) METI seeks to constrain China's trade policy in Unfair Trade 
Policies Report, pointing out its restriction on resource exports 
 
YOMIURI (Page 9) (Excerpts) 
May 9, 2008 
 
The Ministry of Economy, Trade and Industry (METI) yesterday 
released its 2008 Report on Unfair Trade Policies. METI has come up 
with a stance of more carefully monitoring the movements of China, 
and the report in Chapter 1 for the first time takes up China - and 
not the U.S. - unlike previous reports. Japanese companies are 
actively engaging in trade and investment in China. In particular, 
the report seeks to constrain that country's resource export 
restriction and unclear investment rules. 
 
Citing a sharp rise in domestic demand as a reason, the Chinese 
government is restricting exports of coke, a material for steel, and 
rare metals, which are indispensable for home electronics and parts 
for cell phones. 
 
Noting that the World Trade Organization (WTO) approves export 
restrictions on the condition that domestic production and 
consumption are restricted, the report says that China's export 
restriction is suspected of being a violation of the WTO rule, 
because its production of coke increased from 110 million tons in 
2002 to 280 tons in 2006. 
 
The market price in Tokyo of cold-rolled steel, which is widely used 
for home electronics and construction materials, is hovering at 
around 108,000 yen per ton, 30 PERCENT  higher than the previous 
year's level, due in part to export restrictions on coke. METI is 
increasingly concerned about the impact of the export restriction on 
 
TOKYO 00001253  005 OF 012 
 
 
coke with one official noting, "If the price of steel materials 
continues to rise, it could have an adverse effect on the economy." 
 
Among rare metals, China's permission of exports of an ore that is 
called rare earth, has decreased from 57,000 tons in 2001 to 44,000 
tons in 2007. 
 
Japan depends on China for 90 PERCENT  of its demand for rare earth. 
The report warns that China's export restriction on that material 
could incur a short supply in Japan. 
 
The report proposes settling the issue through a dialogue. The 
government intends to strongly urge China to correct the situation 
at such venues as ministerial or summit meetings. 
 
7) Tokyo found to have asked Seoul to arrange meeting between 
abductee Megumi Yokota's parents and their granddaughter 
 
YOMIURI (Top play) (Excerpts) 
May 9, 2008 
 
The Japanese government was found to have asked the South Korean 
government to act as an intermediary to set up a meeting in South 
Korea between abductee Megumi Yokota's daughter, her former husband, 
and her parents. The Japanese side reportedly indicated a plan to 
return to North Korea the remains of another person provided by 
North Korea as those of Megumi. These details were revealed by a 
source connected to Japan-South Korea relations yesterday. Behind 
this move by Tokyo is apparently its judgment that in order to break 
the current stalemate in Japan-North Korea talks on the abduction 
issue, Japan would need to offer a much bolder proposal to the North 
Korean side. 
 
According to the source familiar with Japan-South Korea relations, 
when Special Advisor to the Prime Minister Kyoko Nakayama visited 
Seoul on April 25, she asked a high-level official of the South 
Korean government to realize this sort of meeting. 
 
South Korea and North Korea have several occasions in a year for 
South Korean abductees and their relatives to meet in South Korea as 
part of the reunion project for separated family members between two 
Koreas. Nakayama suggested using this family reunion occasion to set 
up a meeting between Shigeru Yokota (75) and his wife Sakie (72), 
Megumi's former husband Kim Young Nam (47), and her daughter Kim Hye 
Gyong (20). 
 
8) U.N. official welcomes SDF mission in Sudan 
 
ASAHI (Page 4) (Full) 
May 9, 2008 
 
OSLO-Ashraf Qazi, the special representative of the United Nations 
secretary general for Sudan, responded to an Asahi Shimbun 
reporter's interview on May 7 in Oslo. The Japanese government is 
considering sending the Self-Defense Forces for U.N. peacekeeping 
operations in the southern part of Sudan. In this regard, Qazi said 
he would like the Diet to discuss the matter. "If Japan comes," he 
said, "we will fully welcome it." 
 
Qazi also represents the U.N. Mission in Sudan (UNMIS), a PKO body 
following a north-south peace agreement in Sudan. "The SDF is 
experienced in PKO activities and is highly capable," Qazi said. 
 
TOKYO 00001253  006 OF 012 
 
 
Earlier in the day, Qazi met with Parliamentary Foreign Secretary 
Yasuhide Nakayama. According to Nakayama, Qazi asked Japan to send 
an SDF engineering unit to Sudan. Nakayama quoted Qazi as saying: 
"The PKO troops currently working in Sudan do not have a high level 
of technical know-how for infrastructure construction, so we would 
strongly like to ask Japan to send SDF troops." 
 
The Defense Ministry remains cautious about sending SDF members to 
Sudan for security and other reasons. "Once in a while, there are 
clashes and crimes," Qazi said. "But," he added, "the situation is 
improving." The UNMIS is made up of about 10,000 troops from 67 
countries as of March this year. 
 
9) Japan-U.S.-Australia strategic dialogue to be held 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 9, 2008 
 
Foreign Minister Masahiko Koumura held a meeting yesterday with 
visiting Australian Foreign Minister Stephen Smith at the Foreign 
Ministry. As a result, the two foreign ministers agreed to hold a 
Japan-U.S.-Australia cabinet-level strategic dialogue timed with the 
G-8 foreign ministerial to be held in Kyoto in late June. In the 
planned strategic dialogue, the three countries will discuss close 
cooperation in security and the fight against terrorism. 
 
They also confirmed to aim at settling the controversial research 
whaling issue diplomatically. 
 
10) DU study group launched 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 9, 2008 
 
A group of lawmakers yesterday launched a supra-partisan depleted 
uranium (DU) study group. DU shells, which were used during the Iraq 
war, are suspected of causing cancer and leukemia. 
 
The inaugural meeting was attended by 17 ruling and opposition party 
members, including Asahiko Mihara and former Foreign Minister Yoriko 
Kawaguchi from the Liberal Democratic Party, as well as Social 
Democratic Party head Mizuho Fukushima. The group will consider the 
appropriateness of banning the use of DU shells through lectures by 
experts and exchanges of views among members. 
 
In the session, a lecture was given by Dirk van der Maelen, a 
proponent of legislation banning DU weapons that was adopted by the 
Belgian parliament. Maelen said: "You might be concerned about your 
relationship with the United States, but I believe that armed with a 
pacifist Constitution, Japan can give advice (on banning the use of 
DU weapons)." 
 
11) Japan to lift ban on space activities for defense 
 
ASAHI (Page 1) (Abridged) 
May 9, 2008 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
agreed yesterday with the leading opposition Democratic Party of 
Japan (Minshuto) to present a joint legislative measure to the Diet 
in its current session, a Diet member-proposed "Basic Law on Outer 
Space." The legislation is intended to lift Japan's self-imposed ban 
 
TOKYO 00001253  007 OF 012 
 
 
on the use of outer space for defense. A strategic task force will 
be set up in the cabinet under the political initiative for the 
unified promotion of space-related policy measures. The House of 
Representatives Cabinet Committee will enter into deliberations on 
the bill today and take a vote within the day. The bill is expected 
to clear the Diet during the current session. 
 
The government has so far made it a principle to use space for 
nonmilitary purposes only, in line with a 1969 Diet resolution on 
the peaceful use of space. The legislation purports to "promote 
space development and exploitation for Japan's national security," 
and will allow Japan to use space for "nonaggressive" defense 
purposes as approved by the Space Treaty. The legislation will pave 
the way for the SDF to introduce government-prohibited satellites, 
including high-performance reconnaissance satellites. The SDF will 
also be allowed to possess advanced missile surveillance satellites 
(early warning satellites). 
 
The SDF, in its use of space, has so far been allowed to utilize 
commercial-off-the-shelf technologies only. In 1998, North Korea 
test-fired ballistic missiles. After that, the government launched 
intelligence-gathering satellites for disaster planning purposes. 
Their resolution has been held down to the level of commercial 
satellites. 
 
Parliamentary debate will now likely focus on how far to allow the 
use of space for defense and what to do so in order to avoid 
unnecessarily expanding the scope of confidentiality for defense 
purposes. 
 
12) Defense Ministry forgoes reform plan presentation 
 
YOMIURI (Page 4) (Abridged) 
May 9, 2008 
 
The government held a meeting of its Defense Ministry reform panel 
yesterday at the prime minister's office, with Chief Cabinet 
Secretary Machimura presiding. In the meeting, the Defense Ministry 
was to brief the panel on its plan to reorganize the Defense 
Ministry, involving the Self-Defense Forces. Defense Minister Ishiba 
has advocated integrating the Defense Ministry's bureaucracy and the 
SDF's brass into a reorganized body. However, there are strong 
objections from within the Defense Ministry. The Defense Ministry 
will present its reform plan to the panel at its next meeting to be 
held late this month. 
 
Ishiba plans to reorganize the Defense Ministry's internal bureaus 
and the SDF's staff offices into a body for three functionalities: 
1) defense buildup; 2) operational planning; and 3) Diet affairs and 
public relations. The Ground, Maritime, and Air Self-Defense Forces' 
respective staff offices will be substantially downscaled. The 
Ishiba plan will separate the GSDF, MSDF, and ASDF chiefs of staff 
from the chain of command and will have them serve as advisors to 
the defense minister. The defense minister will directly command the 
three SDF services. 
 
At the reform panel meeting on the eighth as well, there were 
negative views expressed about the Ishiba proposal. 
 
13) Akiyama, director of defense organization, raised 500 million 
yen from arms corporations; Tokyo District Public Prosecutors Office 
also suspects tax evasion 
 
TOKYO 00001253  008 OF 012 
 
 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
May 9, 2008 
 
Naoki Akiyama, 58, director of the Japan-U.S. Center for Peace and 
Cultural Exchange, a Tokyo-based corporation including lawmakers 
with vested interests in the defense industry, raised over 500 
million yen mainly from defense companies in about a three-year 
period, a connected source revealed. During this period, Akiyama 
declared only tens of millions of yen in income. The Tokyo District 
Public Prosecutors Office special investigation squad seems to be 
conducting investigations suspecting that he has violated the Income 
Tax Law (tax evasion). 
 
According to the source, Akiyama raised funds by using bank accounts 
in the names of such corporations as Addback International Corp. in 
Los Angeles and the Council for National Security (CNS), a nonprofit 
corporation based in Washington. Akiyama serves as an advisor to 
Addback's Japan office. 
 
Major Japanese and American arms manufactures and a dozen or so 
trading firms transferred a total of some 300 million yen in 
consultant fees to those accounts. 
 
In addition, part of membership fees and donations to the 
association by Japanese and American arms corporations was funneled 
to Addback. It has already been found that Akiyama received in 
October 2006 approximately 30 million yen from defense equipment 
trader Yamada Corp. Including that amount, Akiyama is believed to 
have raised over 500 million yen in total. 
 
14) U.S. Marine found guilty in Iwakuni court martial 
 
YOMIURI (Page 35) (Full) 
May 9, 2008 
 
In the case of an alleged gang rape of a 20-year old woman in 
Hiroshima City last October by four U.S. Marines (ages ranging from 
20 to 39) stationed at MSCA Iwakuni, a U.S. military court martial 
yesterday found the 20-year old Marine guilty of "committing an 
unlawful sex act without consent (doui-no-nai fuhou-na sei-koui). 
The sentencing will be handed down on May 9. 
 
15) Former Prime Minister Koizumi: If Lower House election is held 
now, the LDP will lose 150 seats 
 
YOMIURI (Page 2) (Full) 
May 9, 2008 
 
Former Prime Minister Junichiro Koizumi, a member of the ruling 
Liberal Democratic Party, dined last night with young Lower House 
members, including Yaichi Tanigawa, parliamentary secretary for 
agriculture, forestry and fisheries, at a Japanese restaurant in 
Tokyo. Koizumi indicated his view that the next House of 
Representatives election should be put on the back burner, saying: 
"If the election is held now, we will lose 100 seats, or as many as 
150 seats. It would be better for us to wait until next year." 
 
Around that time, a dinner party welcoming Chinese President Hu 
Jintao was being held at the Prime Minister's Official Residence 
(Kantei). According to one participant in the party, Koizumi 
explained his decision to stay away from the party: "It would be 
 
TOKYO 00001253  009 OF 012 
 
 
better that I not go there." 
 
16) Upper House panel to reject today bill amending Road 
Construction Revenues Special Exemption Law 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 9, 2008 
 
In a meeting yesterday of its directors, the House of Councillors 
Financial Affairs Committee decided to take a vote on a bill 
amending the Construction Revenues Special Exemption Law, intended 
to reinstate the tax revenues for road construction and maintenance 
for 10 years. The outlook is that the bill will be rejected by the 
opposition camp, which holds the majority of the Upper House seats. 
The said bill is expected to be voted down in an Upper House plenary 
session on May 12. Based on Article 59 of the Constitution, the 
government and ruling parties intend to hold a revote on the 
legislation in a House of Representatives plenary session and enact 
it on the 13th by their two-thirds majority overriding vote. 
 
In this connection, the ruling and opposition parties held yesterday 
a meeting of their Diet affairs committee chiefs. In it, the 
opposition demanded that concentrated deliberations on the road 
issue be held in the Lower House Budget Committee or Land and 
Transport Affairs Committee at the attendance of Prime Minister 
Yasuo Fukuda. The ruling camp, however, just replied: "Holding 
deliberations before the 13th is impossible. We accept the 
request." 
 
Prime Minister Fukuda criticizes DPJ's postponement of voting 
 
When asked by reporters last evening about the Democratic Party of 
Japan's decision to take a vote on a bill amending the Construction 
Revenues Special Exemption Law, Prime Minister Yasuo Fukuda 
criticized the DPJ for having put off taking a vote on the bill, 
saying: "I wonder whey they did not make that decision earlier. I 
want them to make the decision when one is needed." 
 
17) Special road law amendment bill to mention that the 
implementation of the law is for one year only: Inconsistency with 
government decision to free up road tax revenues to be adopted at 
cabinet meeting on the 13th dissolved 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
May 9, 2008 
 
The government plans to adopt at a cabinet meeting a policy of 
shifting special-purpose road construction revenues to the general 
account starting in fiscal 2009. In this connection, it yesterday 
decided to mention in a bill amending the Road Construction Revenues 
Special Exemption Law aimed at reinstating special-purpose road 
construction revenues for 10 more years starting in fiscal 2008, 
that the implementation of the law is to be limited to one year. 
 
Opposition parties and some ruling party members had pointed out 
that the amendment bill is inconsistent with the decision by the 
government and the ruling parties to free up road tax revenues 
starting in fiscal 2009. 
 
However, since the amendment bill is to serve as the basis for 
distributing special subsidies worth approximately 700 billion yen 
to be offered to local governments in fiscal 2008, any delay in its 
 
TOKYO 00001253  010 OF 012 
 
 
passage would affect local finances. 
 
For this reason, the government had decided to dissolve the 
inconsistency at a cabinet meeting instead of giving priority to 
early passage of the bill, which would necessitate an amendment 
later. 
 
18) DPJ trying to boost opportunities for debate with Prime Minister 
Fukuda, shifting strategy 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 9, 2008 
 
The main opposition Democratic Party of Japan (DPJ) has now begun 
intentionally increasing opportunities to hold debate with Prime 
Minister Yasuo Fukuda. The DPJ had previously placed priority on 
expressing its anger by such means as boycotting a plenary session 
of the House of Representatives, which had been held to take a 
revote on a bill amending the Special Taxation Measures Law. 
Following the plummeting support rates for the Fukuda cabinet, 
however, the largest opposition party has now taken a strategy of 
attacking the government through debate. 
 
DPJ Secretary General Yukio Hatoyama met yesterday with Lower House 
Speaker Yohei Kono. Referring to the fact that DPJ lawmakers had 
tried to prevent Kono from entering the plenary hall where the 
second vote on the bill was taken, Hatoyama offered an apology to 
Kono, saying: "Our action was excessive." 
 
The outlook is that although the ruling camp will hold a revote on a 
bill amending the Construction Revenues Special Exemption Law in the 
Lower House on May 13, the DPJ will not put any physical resistance 
but oppose it. 
 
The DPJ has gone along with the ruling coalition's proposal of 
taking a vote on the bill in the Upper House Financial Committee on 
May 9 on the grounds that Fukuda will attend the session. The party 
also demanded that concentrated deliberations be held in the Lower 
House Budget Committee or Land and Transport Affairs Committee. 
 
On the back of the DPJ's attempt to boosting opportunities to hold 
debate with the prime minister, there is the DPJ's aim to attack 
Fukuda, who has been suffering from the low public support rates for 
him and his cabinet, at Diet deliberations so that the public can 
see his incapability. 
 
In particular, the legislation is good means of attacking the prime 
minister because its enactment goes against the decision by the 
government and ruling coalition that the tax revenues earmarked for 
road construction will be shifted to the general account starting 
¶2009. 
 
Deputy President Naoto Kan stressed at a press conference yesterday: 
"I want to hear an explanation by the prime minister on consistency 
(between the decision by the government and ruling camp and the 
revision bill)." 
 
19) DPJ ready to underscore government's lack of policy in Diet 
deliberations 
 
NIKKEI (Page 2) (Excerpts) 
May 9, 2008 
 
TOKYO 00001253  011 OF 012 
 
 
 
The Democratic Party of Japan (DPJ) has agreed to take a vote on a 
bill amending the Special Law on Financial Resources for Highway 
Construction Projects in the House of Councillors. The main 
opposition party is now poised to pursue the government and the 
ruling coalition in Diet deliberations. There is a lot of material 
for attack, such as the unpopular health insurance system for people 
aged 75 or older and the pension record-keeping fiasco. Given this, 
the DPJ has concluded it would be wiser to underscore the Fukuda 
administration's lack of policy in Diet debate. The party has also 
decided not to submit a censure motion against Prime Minister Fukuda 
at an early date out of fear that public criticism might be directed 
toward the opposition bloc. Such a policy switch also reflects a 
judgment that its confrontational stance has reached an impasse. 
 
In a meeting of the DPJ's Health, Labor and Welfare Department 
yesterday, Acting Policy Research Council Chairman Akira Nagatsuma 
and others demanded that the ministry publicize changes in the 
burden of premium payments since the new system for very old 
patients was introduced. A representative from the Ministry of 
Health, Labor, and Welfare reiterated: "It is impossible to given a 
sweeping answer." In reaction, criticism erupted from other 
participant lawmakers. 
 
The four opposition parties -- the DPJ, the Japanese Communist 
Party, the Social Democratic Party, and the People's New Party -- 
have decided to jointly submit a bill calling for abolishing the new 
insurance system by the end of this month. The DPJ has set the time 
for the abolition at April in 2009. It has also outlined a bill 
designed to cancel the automatic deduction of insurance premiums 
from pension benefits immediately after the said system is 
implemented. The DPJ intends to disclose the details of the bill in 
policy talks of the opposition parties to be held possibly on May 
¶13. 
 
On the pension mess, the DPJ has demanded that the ministry present 
data on details about unidentified pension accounts. It is set to 
attack the government, keeping in mind even the possibility of 
exercising Diet members' rights to investigate state affairs. 
Regarding the government-submitted basic bill reforming the national 
civil service system, on which deliberations will start at the House 
of Representatives today, the DPJ is positive about holding 
negotiations on revising the bill. It apparently intends to 
demonstrate its presence in Diet deliberations. 
 
In an executive meeting of the DPJ on the evening of the 7th, Upper 
House Chairman Azuma Koshiishi said about the bill amending the 
special law related to highway construction: "The Upper House is 
willing to take a vote." He apparently fears that the view that the 
Upper House is unnecessary might gain influence if the Upper House 
allows the government to take an override vote on the bill in the 
Lower House again. 
 
Some DPJ members are also concerned about the public might react to 
the party's confrontational stance while continuing to refuse 
deliberations. 
 
20) Toyota foresees 30 PERCENT  drop in profit in term ending in 
March 2009 due to appreciation of yen, sharp rise in raw materials 
 
ASAHI (Top Play) (Full) 
May 9, 2008 
 
TOKYO 00001253  012 OF 012 
 
 
 
Toyoto Motors yesterday released a projection for its consolidated 
financial settlement for the term ending in March 2009. The report 
says that its group operating profits will drop by 30 PERCENT . The 
significant profit fall is attributable to the strong yen and the 
sluggish North American market, triggered by the financial crisis 
that originated in the U.S., and high raw-material prices. The 
projected setback of Toyota, which has been enjoying robust sales, 
indicates that the Japanese economy is a crucial juncture. 
 
"The trend has changed," says president 
 
Meeting the press, President Watanabe analyzed the business 
performance of his company for the next business year, noting, "The 
U.S. economy is slowing. The economic situation in Europe is not 
favorable. I think that the trend of the global economy has 
changed." 
 
Toyota projects its sales to be 25 trillion yen, down 4.9 PERCENT , 
operating profits, indicating profits in the main line of business, 
to be 1.6 trillion yen, down 29.5 PERCENT , and profits of the term 
to be 1.25 trillion yen, down 27.2 PERCENT , from the preceding 
term. The company expects drops in sales and operating profits for 
the first time in nine years since the term ended in March 2000. The 
margin of the drop in profits (670.3 billion yen) will be the 
largest since the term ended in 1099, when it adopted the U.S. 
accounting standards. It is estimated to suffer a drop in profits of 
the term for the first time in seven terms. 
 
The carmaker made the estimate based on the assumption that the 
average exchange rates of the yen against the dollar will be 100 yen 
for the term ending in March 2009, compared with the estimated rates 
of 114 yen for the term ending in March 2008. Exchange fluctuations 
alone are expected to dent operating profits by 69 billion yen. 
 
The projection underscored that the Japanese economy is facing a 
backlash, which even Toyota, a company that represents Japanese 
industry, cannot resist. Concerns about a decline in business 
performances will likely spread widely, centered on the 
export-oriented industry. Honda Motors also projects a significant 
drop in profits. Companies affiliated with automakers, such as parts 
manufactures, are also expected to mark a decline in profits. 
 
DONOVAN