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UNCLAS SECTION 01 OF 12 TOKYO 001324 
 
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 05/15/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Interview with Defense Department DAS Sedney: U.S. not 
considering changing Futenma relocation plan to move the proposed 
site into ocean  (Asahi) 
 
China relations: 
5) Japan's offer of sending teams to assist in earthquake-stricken 
Sichuan not being accepted, China citing difficulty in accessing cut 
off areas  (Sankei) 
6) China's earthquake may have impact on gas field development 
talks, panda rental  (Yomiuri) 
7) E. China Sea gas-field development: Japan, China may co-develop 
only selected areas  (Mainichi) 
 
8) Prime Minister Fukuda, New Zealand Prime Minister Clark agree to 
cooperate on global-warming countermeasures  (Mainichi) 
 
9) North Korea's nuclear program: U.S., Japan, ROK may resume 
director-general talks on May 19th  (Mainichi) 
 
10) Greenpeace accuses crewmembers of Japanese research whalers of 
hauling home boxes of whale meat, rampantly abusing the IWC mandate 
(Asahi) 
 
11) As food prices soar, government's Council on Economic and Fiscal 
Policy begins considering the issue of Japan increasing its food 
self-sufficiency rate  (Asahi) 
 
Political merry-go-round: 
12) Ruling parties and government concur that there is no need to 
extend the current Diet session  (Yomiuri) 
13) Ruling parties are delaying submission of bills right and left 
with only one month left in the current Diet session  (Nikkei) 
14) Government and ruling camp encountering hurdles in revising the 
controversial system of medical care for the elderly over 75 
(Nikkei) 
15) Democratic Party of Japan President Ozawa to change his election 
district from Iwate to Tokyo, creating a stir  (Yomiuri) 
16) Delicate gap is opening between Ozawa and DPJ's Kan and Hatoyama 
 (Yomiuri) 
17) Influential LDP lawmaker Hidenao Nakagawa writes book attacking 
the bureaucracy but the real surprise is his admission in it of 
adultery  (Yomiuri) 
18) Former postal rebel Shizuka Kamei, who now heads a small party, 
blasts the DPJ as "fools" for policy mistakes  (Yomiuri) 
 
19) Japanese economy's international competitiveness is a dismal 
22nd place, while U.S. stays at the top  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: 
Death toll in China's quake rises to nearly 15,000; Rescuers finally 
reach epicenter; Victims scramble for relief supplies 
 
 
TOKYO 00001324  002 OF 012 
 
 
Nikkei: 
Japan to offer low-interest yen loans worth up to 500 billion yen to 
developing countries over five years to cut greenhouse gas 
emissions 
 
Akahata: 
Elderly demonstrators stage sit-in strike calling for promptly 
abolishing health insurance system for the elderly 
 
2) EDITORIALS 
 
Asahi: 
(1) Put end to refugees' plights on 60th anniversary of 
establishment of Palestine state 
(2) Don't delay disposal of toxic gas weapons 
 
Mainichi: 
(1) Concerns still left about possible use of space for military 
purposes 
(2) Create environment first to receive highly skilled foreign 
workers 
 
Yomiuri: 
(1) Kinki, Chubu must boost quake measures, focusing on key traffic 
systems 
(2) Questions looming over alleged fraud involving ex-intelligence 
chief Ogata 
 
Nikkei: 
(1) Burmese military junta's response to cyclone victims a crime in 
terms of humanitarian considerations 
(2) Web 2.0 expected to spur reorganization of Internet market 
 
Sankei: 
(1) China's great earthquake: Government must give top priority to 
saving human lives 
(2) Increase the list of common use kanji characters 
 
Tokyo Shimbun: 
(1) Requirement of 6 PERCENT  cut in greenhouse gas emissions: 
Forests are Japan's lifeline 
(2) J Power stake: Government must not discourage foreign direct 
investment 
 
Akahata: 
(1) WTO agricultural talks: Review policy of trade liberalization 
from foundation 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 14 
 
NIKKEI (Page 2) (Full) 
May 15, 2008 
 
09:20 
Met at Kantei with State Minister in Charge of Economic and Fiscal 
Policy Ota and Deputy Assistant Chief Cabinet Secretary Saka. Ota 
remained. Afterwards, met with House of Representatives member 
Takayoshi Taniguchi. 
 
10:20 
 
TOKYO 00001324  003 OF 012 
 
 
Met with ILO Director-General Somavia, joined by MOFA International 
Cooperation Bureau Director-General Bessho. Later, met with New 
Komeito's Deputy Representative Hamayotsu. 
 
11:30 
Met with Special Advisor to the Prime Minister Nakayama. 
 
13:27 
Met with LDP Policy Research Council Chairman Tanigaki and New 
Komeito Policy Research Council Chairman Saito. 
 
14:05 
Met with ROK-Japan Economic Association Chairman Cho Suk Rae and 
others. Afterwards, photo-shooting. 
 
15:04 
Met with New Zealand Prime Minister Clark. Afterwards, issued a 
joint press release. 
 
16:32 
Met with Japan Institute of International Affairs President Yukio 
Sato. Afterwards, met with Chief Cabinet Secretary Machimura and 
Deputy Chief Cabinet Secretary Futahashi. 
 
17:31 
Attended a meeting of the Council on Economic and Fiscal Policy. 
 
19:01 
Met with secretaries and others at Grand Prince Hotel Akasaka. 
 
22:27 
Arrived at Kantei residence. 
 
4) Pentagon official: It's difficult to revise Futenma relocation 
plan to move construction into ocean 
 
ASAHI (Page 4) (Full) 
May 15, 2008 
 
Yoichi Kato 
 
WASHINGTON-U.S. Deputy Assistant Secretary of Defense for East Asia 
Sedney responded to the Asahi Shimbun's interview at the Department 
of Defense on May 13 right after returning from his recent visit to 
Japan. In the interview, Sedney clarified that the United States 
would not concur with the idea floating in Japan of moving the 
relocation site of Futenma airfield in Okinawa Prefecture into the 
ocean. 
 
Sedney, representing the Pentagon, accompanied Deputy Secretary of 
Defense Negroponte on his recent tour of Japan, China, and South 
Korea. In Japan, Sedney was present in Negroponte's meetings with 
Chief Cabinet Secretary Machimura, Foreign Minister Koumura, and 
Defense Minister Ishiba. In addition, he met with working-level 
officials from the Foreign Ministry and the Defense Ministry. 
 
Sedney first noted that the planned relocation of Futenma airfield, 
including its location and size, is entirely based on Japan's plan. 
"We didn't ask for it," Sedney said. He added: "Once we agree to 
revise the plan, there will be pressure calling for other revisions 
to the plan, and we won't be able to keep our agreement (to complete 
the construction of an alternative facility in 2014). This plan 
 
TOKYO 00001324  004 OF 012 
 
 
stands on a delicate balance, so it's very difficult to revise it." 
 
Meanwhile, the Japanese government has been falling behind schedule 
in its environmental impact assessment of the relocation site in 
Okinawa Prefecture's northern coastal city of Nago. However, Sedney 
said: "Japan showed strong confidence through the series of meetings 
this time in carrying out the agreement to complete the relocation 
in 2014. I'm very satisfied." He stressed that all the cabinet 
ministers he met promised again to carry out the "roadmap" for U.S. 
military realignment in Japan. He also revealed that the Japanese 
and U.S. governments would start working-level consultations in 
order to work out specific challenges. "It's a substantial step 
forward," he said, showing a stance of giving high marks to the 
Japanese promise. 
 
5) China tells Japan: "It's difficult to accept" Japanese rescuers; 
Prime Minister Fukuda shows understanding toward China's response 
 
SANKEI (Page 3) (Full) 
May 15, 2008 
 
The Chinese government as of yesterday told the Japanese government, 
which had been preparing to send rescuers to help victims of the 
deadly Sichuan earthquake, "It's difficult to accept Japanese 
rescuers," several government officials revealed. 
 
Later in the day, Prime Minister Yasuo Fukuda referred to China's 
response and indicated understanding by noting: "At the time of the 
(Great Hanshin Earthquake) occurred in Kobe City, when Japan was not 
ready to accept foreign rescuers, we would have been confused if 
they had come. China appears to be in the same situation." 
 
Fukuda continued to say, "If they are ready to accept rescuers, I 
think they will ask for 'cooperation.' We will then extend as much 
cooperation as possible." Fukuda was replying to questions posed by 
reporters at the Prime Minister's Official Residence. 
 
6) Aftermath of Sichuan earthquake affects talks on gas fields; No 
progress, either, on talks on China's loan of panda to Japan 
 
YOMIURI (Page 2) (Full) 
May 15, 2008 
 
The aftermath of the deadly earthquake in Sichuan Province, China, 
has begun affecting the achievements of the recent Japan-China 
summit talks on May 7 between Prime Minister Fukuda and Chinese 
President Hu Jintao. One government official yesterday revealed that 
the two countries' leaders agreed to hold working-level talks on the 
joint exploration of gas fields in the East China Sea for the 
promotion of the joint development, but that the talks "have been 
effectively stopped" since the occurrence of the earthquake. 
 
China's loan of a panda to Japan's Ueno Zoological Gardens has drawn 
public attention, but preparations for such a loan have been 
effectively stopped because "making preparations for that at this 
point in time may give the impression of being inappropriate," a 
Japanese government official said. 
 
Meanwhile, regarding how to help the devastated area in China, the 
government yesterday adopted an aid policy of offering mainly goods 
for the time being. As for a dispatch of personnel to an 
international disaster relief team, China told Japan that there is 
 
TOKYO 00001324  005 OF 012 
 
 
no need for such a team, so Japan has decided to refrain from 
sending personnel for that purpose. 
 
Moves to help China are emerging also in political circles. The 
Parliamentary Forum to Develop Japan-China Relations, a group 
composed of lawmakers from the ruling bloc, including the ruling 
Liberal Democratic Party's (LDP) General Council Chairman Nikai, 
former Prime Minister Mori, and the junior coalition partner New 
Komeito's Representative Ota, yesterday held an executives' meeting 
at LDP headquarters. The meeting called Administrative Vice Foreign 
Minister Mitoji Yabunaka to the session and asked him to actively 
help the quake-hit area. The session confirmed it would discuss the 
dispatch of a fact-finding mission to see the damage caused by the 
earthquake. 
 
According to the Ministry of Foreign Affairs, of some 300 Japanese 
nationals who were in the region at the time, the whereabouts of 80 
or so have yet to be confirmed as of yesterday evening. Officials 
from the Japanese Embassy in Beijing and from the Consulate General 
in Congqing will visit the disaster site and make every effort to 
identify Japanese nationals by visiting hospitals and other 
locations in the region. 
 
7) Gas fields in East China Sea: Joint development to be carried out 
in more than one area; Japan, China to share profits equally 
 
MAINICHI (Page 3) (Excerpts) 
May 15, 2008 
 
Concerning the exploration of gas fields in the East China Sea, a 
pending issue between Japan and China, it was learned on May 14 that 
both countries had agreed to pursue to the maximum the economic 
interest the joint development of gas fields would bring in, by 
putting the demarcation line issue on the back burner and were 
undergoing coordination with the possibility of subjecting more than 
one areas to development. The premise for the agreement is that all 
matters involved be carried out jointly. Boiling-down talks are thus 
expected to be held for the two countries to jointly develop 
Shirakaba (Chunxiao in Chinese), which China is exploring on its 
own. 
 
On this issue, Prime Minister Yasuo Fukuda during the bilateral 
summit on May 7 stated, "There has been a major progress, making it 
feasible to reach a settlement." According to a source involved in 
the talks, the two countries found a breakthrough, reaching an 
agreement that they would settle the issue in the form of equally 
dividing profits of the development of resources, by putting on the 
backburner the demarcation line issue, over which the two countries 
are at odds. 
 
The key to shelving the demarcation line issue is joint development. 
Joint development in areas belonging to other countries requires an 
arrangement that is advantageous to that nation in terms of the 
distribution of the profits the development brings in. However, in 
the East China Sea, Japan and China will undergo coordination so 
that they equally share investment cost and distribute profits. 
 
8) Japan, New Zealand to cooperate on creation of new international 
framework for greenhouse gas emissions 
 
MAINICHI (Page 5) (Full) 
May 15, 2008 
 
TOKYO 00001324  006 OF 012 
 
 
 
Prime Minister Yasuo Fukuda yesterday held talks with visiting New 
Zealand Prime Minister Helen Clark at the Prime Minister's Official 
Residence (Kantei). In the meeting, the two leaders agreed that 
their countries would cooperate on creating a new international 
framework in which all major greenhouse gas emitters can participate 
after 2012, when the first commitment of the Kyoto Protocol ends. 
 
9) Japan, U.S., ROK to restart talks of their bureau 
director-generals possibly on May 19 
 
MAINICHI (Page 15) (Full) 
May 15, 2008 
 
Takashi Sudo 
 
The Japanese, U.S. and South Korean chief delegates to the six-party 
talks on the North Korean nuclear issue will meet in Washington 
possibly on May 19. The major aim of the meeting is to analyze a set 
of documents recently provided by North Korea in preparation for the 
resumption of the stalled six-party talks. On the part of Japan, it 
wants to resolve the nuclear and abduction issues simultaneously by 
linking them. So, Tokyo aims to confirm concerted action (toward the 
abduction issue) with the U.S. and South Korea, both of which have 
indicated a certain degree of understanding about the issue. 
 
The resumption of the trilateral meeting will in effect lead to 
restarting a session of the Trilateral Coordination and Oversight 
Group (TCOG) of bureau director-general-level officials from the 
three countries, which has been suspended since June 2003. The 
suspension of the TCOG was attributable to South Korea's 
policy-shift to the so-called "sunshine policy." But the TCOG will 
now be restarted because new South Korean President Lee Myung Bak 
has turned around the previous policy toward North Korea, and also 
because the president stated during the April Japan-South Korea 
summit talks, "I will extend as much cooperation as possible to 
resolve the abduction issue." 
 
It is not correct to say, however, that Japan, the U.S., and South 
Korea have consolidated their stances to jointly counter North 
Korea. The U.S. has continued bilateral talks with North Korea and 
reached one accord after another with North Korea. U.S. State 
Department's Office of Korean Affairs Director Sung Kim rated the 
nuclear documents presented recently by North Korea "complete." The 
U.S. is expected to resume food aid to North Korea. 
 
10) NGO to accuse crew of removing research whale meat 
 
ASAHI (Page 1) (Abridged) 
May 15, 2008 
 
A Japanese research whaling fleet's crewmembers are suspected of 
removing some portions of meat in large quantities from whales 
caught in the Southern Ocean. Greenpeace (GP) Japan, an 
environmental nongovernmental organization, has confirmed that whale 
meat contained in cardboard boxes was delivered to the homes of 
crewmen. GP Japan will report it to the Tokyo District Public 
Prosecutors Office today on suspicion of professional embezzlement. 
 
In April, the Nisshin Maru, an 8,044-ton whaling ship, returned to 
Tokyo Bay. GP Japan traced home-delivered parcels through their 
invoices from the whaling ship. As a result, GP Japan found that 12 
 
TOKYO 00001324  007 OF 012 
 
 
employees of Kyodo Sempaku, a research whaling company headquartered 
in Tokyo, had sent a total of 47 suspicious boxes. 
 
One of those delivered boxes had contained whale meat from the unesu 
(lower jaw) for bacon at 23.5 kilograms (worth 100,000-300,000 yen), 
according to GP Japan. If whale meat is contained in all the other 
boxes, its total quantity would be over 1 ton. GP Japan suspects 
that the whale meat could have been illegally sold to whale meat 
stores or restaurants. 
 
Japan's research whaling has been conducted by the Institute of 
Cetacean Research with the Fisheries Agency's permission. ICR 
charters Kyodo Sempaku vessels as well as their crew. Caught whales 
are researched and disposed of. Edible portions are marketed as 
"byproducts." 
 
Meanwhile, a former crewman in his 50s, who was engaged in Southern 
Ocean research whaling from 2005 through 2006, responded to the 
Asahi Shimbun's interview and revealed facts about the crew's 
removal of whale meat. He said many crewmen disposing of whales took 
out unesu and other portions to salt them down. They packed whale 
meat in cardboard boxes and sent them to their homes or elsewhere 
after returning home. One of his colleagues sent 200-300 kilograms, 
according to the former crewman. 
 
11) Self-sufficiency main item of CEFP meeting agenda due to sharp 
rise in food prices 
 
ASAHI (Page 7) (Full) 
May 15, 2008 
 
The government's Council on Economic and Fiscal Policy (CEFP) 
yesterday looked into the issue of agricultural reform. A sharp 
increase in food demand is behind a steep rise in food prices 
throughout the world. Japan's heavy dependence on imports is 
increasingly becoming precarious. There is a great urgency to 
introduce a system of large-scale farming through the easing of 
regulations and raising the food self-sufficiency ratio by 
introducing a corporate management system. However, barriers against 
agricultural reform remain high with Agriculture, Forestry and 
Fisheries (MAFF) Minister Wakabayashi indicating a strong resistance 
to expanding corporate access to the agricultural sector. 
 
Prime Minister Fukuda during the meeting revealed his intention to 
map out a government plan before year's end, noting: "We are in a 
crisis with Japan's food self-sufficiency now less than 40 PERCENT 
while the global food supply situation becomes more severe. I would 
like Agriculture Minister Wakabayashi to map out concrete measures 
by the fall and have them discussed by the CEFP." 
 
A number of emerging countries, such as China and India, where 
demand for food is sharply increasing, are successively restricting 
food exports in order to secure amounts for domestic consumption. An 
increasing amount of corn is now being diverted for the production 
of biofuel as part of a measure to combat global-warming greenhouse 
gases. As such, the predominant view is that structural factors are 
responsible for the sharp rise in food prices. Private-sector 
members of the CEFP proposed measures such as expanding corporations 
to enter the agricultural sector and promoting a large-scale farming 
system, based on the notion that it is urgent to increase the food 
self-sufficiency rate. 
 
 
TOKYO 00001324  008 OF 012 
 
 
Wakabayashi indicated a positive stance to such a proposal as to 
establish a more-than-20-year-term leasehold interest system for 
farming land." However, he balked at the proposal for expanding 
corporate access to the agriculture sector, saying, "I will look 
into that. Please leave the matter to me." 
 
The government has already incorporated such policies as promoting 
intensive agriculture and corporate access to the agricultural area 
into the basic policy guidelines on economic and fiscal management 
and structural reforms for the fiscal 2007 national budget, which it 
adopted last year. MAFF also formulated an agricultural reform plan 
last November. However, the actual implementation is far behind 
their plans. MAFF has forgone the submission to the current session 
of the Diet of related bills, such as one amending the Agriculture 
Land Law. The ruling parties suffered a devastating defeat in the 
Upper House election last summer. Some say that one reason for that 
is the loss of the farm vote. MAFF and the agricultural policy 
clique in the Diet are reluctant to carrying out reform that could 
cause concern for farmers. 
 
The greatest problem about Japanese agriculture is that it consists 
in many cases of family-run operations, and therefore productivity 
is low. Farmers who had stopped farming in the hope of seeing higher 
land prices are still holding onto such land, hampering the 
realization of intensive farming. In the meantime, abandoned 
farmland is increasing due to a shortage of heirs to take over farm 
households. 
 
New entries into farming by companies or non-profit organizations 
have increased, marking 281 as of March 2008. However, the number is 
far too small, compared with the existing 2 million farm 
households. 
 
12) Current Diet session will not be extended 
 
YOMIURI (Page 1) (Full) 
May 15, 2008 
 
The government and ruling parties decided yesterday not to extend 
the current Diet session, which will close on June 15 as scheduled. 
They have judged that it will be possible to pass certain bills 
during the ongoing session, since the main opposition Democratic 
Party of Japan (DPJ) has shown a stance of responding to 
deliberations even after the enactment of a bill amending the Road 
Construction Revenues Special Exemption Law. 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner 
New Komeito confirmed yesterday that only bills the DPJ will support 
will be deliberated in the final stage of the current session. LDP 
Secretary General Ibuki Bunmei and Chief Cabinet Secretary Nobutaka 
Machimura shared the perception in their meeting last night that 
there was no need to extend the current Diet session. 
 
13) Ruling coalition to put controversial bills on back-burner 
 
NIKKEI (Page 2) (Abridged) 
May 15, 2008 
 
In the wake of the enactment of a road-related tax bill on revenues 
for road construction and improvement, the government and ruling 
parties will hurriedly gauge whether it is possible to enact during 
the current session the remaining 51 bills still lingering in the 
 
TOKYO 00001324  009 OF 012 
 
 
Diet. With only one month left until the end of the session, the 
government and ruling camp will give priority to enacting bills on 
which the ruling and opposition camps do not disagree. With an eye 
on continued deliberations on bills on which the two sides have 
strongly been at odds, the government and ruling coalition will 
likely put such bills as a government-run health insurance support 
bill on the back-burner. They have no plan to resort again to an 
override vote in the House of Representatives. At present, the 
current session is unlikely be extended. 
 
Ruling Liberal Democratic Party (LDP) Diet Affairs Committee 
Chairman Tadamori Oshima yesterday asked his Democratic Party of 
Japan (DPJ) counterpart Kenji Yamaoka for cooperation on Diet 
deliberations, saying: "We want to push ahead with (deliberations) 
on the remaining bills. So, I will rely on you." 
 
In a House of Councillors plenary session yesterday, three bills, 
including a designated structural reform district law bill were 
approved. Of the 79 bill the government submitted to the ongoing 
session, 30 have been enacted, falling short of 42 that cleared the 
Diet the same day last year. 
 
14) Improving implementation of new medical service system for very 
old people fraught with challenges: Government, ruling parties start 
discussion; Measures to reduce burdens to come into focus 
 
NIKKEI (Page 3) (Excerpts) 
May 15, 2008 
 
The government and ruling parties have begun mapping out measures to 
improve a new medical service system for people aged 75 and older, 
which was introduced in April. The focal point of their discussion 
is how to reduce the burden on those whose health insurance premiums 
have risen despite low income. However, since the main pillar of the 
new system is seeking a due share from elderly people, a major 
reform is not envisioned. Implementing proposals made as improvement 
measures is restricted due to limited fiscal resources. Completing 
coordination of views by the mid-June target date will likely 
encounter difficulties. 
 
The Ministry of Health, Labor and Welfare on May 14 held a meeting 
of officials in charge within local governments. In the Liberal 
Democratic Party (LDP), Policy Research Council Chairman Sadakazu 
Tanigaki the same day ordered Shunichi Suzuki, chairman of the 
Social Security System Research Council, to look into specific 
measures. The Policy Advisory Council of the Upper House also held 
full-fledged discussions. The government and the ruling parties want 
to map out measures by June 13, the day for the second deduction of 
premiums. 
 
The showcase of measures is how burdens can be reduced. Though the 
MHLW had explained that low-income earners would shoulder lower 
burdens under the new system, their premiums have in many cases 
increased, because local governments are unable to take their own 
burden-reduction measures. 
 
15) Idea of Ozawa switching constituencies creates a stir 
 
YOMIURI (Page 4) (Abridged slightly) 
May 15, 2008 
 
A sensational idea has cropped up that Democratic Party of Japan 
 
TOKYO 00001324  010 OF 012 
 
 
President Ichiro Ozawa run in the next Lower House election from the 
Tokyo No. 12 constituency instead of his home turf of Iwate 
Constituency No. 4. 
 
DPJ Vice President Hajime Ishii made the proposal for switching 
constituencies to Ozawa in a meeting yesterday at party 
headquarters. New Komeito Representative Akihiro Ota now represents 
the Tokyo No. 12 constituency. The DPJ has yet to determine its 
candidate for the constituency. Many DPJ members think switching 
constituencies is difficult in view of supporters' sentiments. The 
DPJ seemingly intends to apply pressure on the New Komeito and its 
support base, Soka Gakkai, by brandishing this surprising tactic. 
 
Ishii quoted Ozawa as saying in the meeting: "If I decide to run in 
the race from the Tokyo No. 12 constituency, (the prime minister) 
might decide to carry out the next Lower House election at an early 
time so that it will not overlap with next summer's Tokyo assembly 
election, a priority for the New Komeito." Ozawa thus left some 
latitude for the idea of switching constituencies. 
 
Earlier, in a press conference on March 1 in Morioka, Ozawa was 
asked about the possibility of changing his constituency. In 
response, he said: "I will answer that question when election time 
comes. I do not have such an intention at present." 
 
16) Delicate gap opening between Ozawa and aides Hatoyama, Kan 
 
YOMIURI (Page 4) (Full) 
May 15, 2008 
 
Democratic Party of Japan Secretary General Yukio Hatoyama and 
Deputy President Naoto Kan attended DPJ House of Representatives 
member Sakihito Ozawa's fund raising party held in Tokyo last night. 
In the party, there was a scene suggesting there may be a delicate 
gap opening between them and President Ichiro Ozawa. 
 
Hatoyama said: "In the DPJ, there is another Ozawa. (I am) one with 
this person (Sakihito Ozawa). President Ozawa does not think he is 
one with (me)." The comment drew laughter from the audience. 
 
Kan commented: "What the DPJ members need is 'patience.' You might 
want to say, 'I don't like him. I cannot do it.' That might make you 
feel good, but with such an attitude, we will never be able to take 
power." 
 
Both Hatoyama and Kan have already announced their support for Ozawa 
for the upcoming DPJ presidential race in September. One observer 
said, "They inadvertently voiced their discontent (with Ozawa)." 
 
17) Referring to his "scandal," Nakagawa reveals in his book that he 
had given "candid advice" to the woman himself 
 
ASAHI (Page 4) (Abridged slightly) 
May 15, 2008 
 
Hidenao Nakagawa, former secretary general of the Liberal Democratic 
Party, has written a book titled Kanryou Kokka no Houkai (Collapse 
of a Bureaucracy-led Country) that will be published by Kodansha in 
late May. In the book, Nakagawa harshly criticizes an LDP group that 
is calling for a consumption-tax hike, writing, "Such a step is 
designed to force a greater burden on the general public to prolong 
the debased life of the elites in Kasumigaseki." 
 
TOKYO 00001324  011 OF 012 
 
 
 
Describing the current state of Japanese politics as bureaucracy-led 
politics, Nakagawa also calls for the fundamental reform of the 
political system, including the civil servant system. Specifically, 
he proposes abolishing the civil servant career system, reducing 
200,000 jobs, and introducing a doshu (regional bloc) system. 
 
In October 2000, Nakagawa resigned as chief cabinet secretary under 
the then Mori cabinet due to a scandal involving a woman. Nakagawa 
reported that he had conveyed investigative information on the woman 
on the phone. About this case, the book reads: "Based on what I had 
learned from a private citizen, I gave frank advice not to associate 
with that bad person. It was suspected that the police had leaked 
information." He thus admitted that the information was conveyed by 
himself, not by the police. 
 
Now that Nakagawa has referred to the scandal involving a women, 
which is regarded as his Achilles heel, some LDP members think that 
he has revealed his eagerness to aim at the prime minister's post by 
settling the past problem completely. 
 
18) Angry Kamei calls DPJ "idiots" 
 
YOMIURI (Page 4) (Abridged) 
May 15, 2008 
 
People's New Party Representative Shizuka Kamei in a regular press 
conference yesterday disgustingly said, "The Democratic Party of 
Japan is crazy, idiotic." 
 
Kamei was angry with DPJ member Hiroshi Kawauchi. Kawauchi gave a 
speech in a Lower House plenary session on May 13 explaining why he 
would vote against readopting a bill to keep road-related tax 
revenues earmarked for building and improving highways. In the 
speech, Kawauchi said in reference to the 2005 "postal" Diet 
dissolution, "In a sense, the idea of then Prime Minister Koizumi 
was correct, (who drove Mr. Kamei to leave the Liberal Democratic 
Party)." 
 
Kawauchi simply indicated that Koizumi's view that even if 
postal-related bills were voted down in the Upper House, they could 
be readopted with a two-thirds overriding vote in the Lower House 
was correct. Kawauchi also pointed, "(The results in the Lower 
House) reflected public opinion only about postal privatization." He 
did not give a positive assessment to Koizumi but cited the episode 
to criticize the ruling bloc's recent revote. 
 
But for the PNP, a party composed mainly of lawmakers who bolted the 
LDP over postal privatization, opposing postal privatization is the 
party's policy. Kamei apparently could not stand the words "postal 
privatization." 
 
After the plenary session, Kamei reportedly told a senior DPJ 
lawmaker on the phone: "If you deny the PNP's position at the Diet, 
we will not be able to cooperate with you in election campaigns or 
form a parliamentary group in the Upper House." 
 
19) Japan's competitiveness inches up from 24th place last year to 
22nd in 2008 yearbook 
 
NIKKEI (Page 7) (Full) 
May 15, 2008 
 
TOKYO 00001324  012 OF 012 
 
 
 
In the 2008 World Competitiveness Yearbook, released on May 15 by 
the International Institute for Management Development (IMD) (based 
in Lausanne) in Switzerland, Japan's ranking inched up from the 24th 
place last year to the 22nd. This year's survey, which marks the 
20th anniversary of the issuance of the first edition in 1989, in 
which Japan was at the top, presented the tasks that Japan should 
address to recover its competitiveness. 
 
IMD has produced yearly almanacs, based on statistics and results of 
inquiries in 55 countries and regions regarding 331 items in these 
four areas: (1) The macro-economy; (2) the government's efficiency; 
(3) business efficiency; and (4) infrastructure. 
 
In the areas of business efficiency and infrastructure, Japan saw an 
increase in its ranking. In the area of business efficiency, in 
which Japan's standing rose from the 27th last year to the 24th, 
Japan attained first place in terms of the consumer-satisfaction 
level and third place regarding training for employees. 
 
In the area of infrastructure, Japan's standing recovered from 6th 
place to 4th. Japan came first on the survey items of the school 
attendance rate and the average span of life. Besides, Japan's 
intellectual infrastructure was evaluated high, as seen from its 
third ranking regarding corporate spending for research and 
development as a percentage of GDP and the productivity of patents. 
 
But on the macro-economy, Japan's place dropped from 22nd to 29th. 
In terms of income from traveling as a percentage of GDP, Japan 
ranked 55th, the lowest place, showing that the overseas movement of 
Japanese personnel, goods, and money remains stagnant for a country 
of its economic scale. 
 
DONOVAN