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Viewing cable 08TOKYO1342, JAPANESE MORNING PRESS HIGHLIGHTS 05/16/08

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Reference ID Created Released Classification Origin
08TOKYO1342 2008-05-16 01:34 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO5714
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1342/01 1370134
ZNR UUUUU ZZH
P 160134Z MAY 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4289
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0209
RUEHFK/AMCONSUL FUKUOKA 7825
RUEHOK/AMCONSUL OSAKA KOBE 1505
RUEHNAG/AMCONSUL NAGOYA 6152
RUEHKSO/AMCONSUL SAPPORO 8416
RUEHBJ/AMEMBASSY BEIJING 3364
RUEHUL/AMEMBASSY SEOUL 9379
RUCNDT/USMISSION USUN NEW YORK 9839
UNCLAS SECTION 01 OF 14 TOKYO 001342 
 
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 05/16/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
China quake: 
4) Japan sends rescue team to earthquake-stricken Sichuan, China 
(Tokyo Shimbun) 
5) Beijing changes stance to allow Japanese rescue term into quake 
are, recognizing their expertise and giving priority to improved 
bilateral ties  (Yomiuri) 
6) Chinese President Hu Jintao's desire to maintain good ties with 
Japan explains turnaround in policy toward accepting human 
assistance in quake zone  (Asahi) 
 
7) Prime Minister Fukuda to announce doubling of aid to Africa over 
five years  (Yomiuri) 
 
8) Government to help private companies invest in Iraq  (Nikkei) 
 
Defense and security affairs: 
9) Fourteen governors of prefectures hosting U.S. bases meet chief 
cabinet secretary to call for revision of the status of forces 
agreement  (Mainichi) 
10) Government, Okinawa prefecture frustrated at lack of progress on 
Futenma relocation, fear result of upcoming assembly election could 
be further setback  (Yomiuri) 
 
11) U.S., Japanese governments agree that USFJ will inform Japanese 
authorities within a day or two of American serviceman deserting 
post  (Asahi) 
12) Defense Ministry decides to provide USFJ-realignment-related 
subsidies to local governments  (Yomiuri) 
 
13) Japan to export 50,000 tons of rice to the Philippines  (Nikkei) 
 
 
14) Whale meat taken by research whaler crewman was a "gift" not 
stolen says company  (Asahi) 
 
Political agenda: 
15) Speculation that the long-awaited Fukuda cabinet shuffle will 
come after the G-8 Summit  (Tokyo Shimbun) 
16) DPJ head Ozawa off on a nationwide stumping tour to ready for 
the next election  (Asahi) 
17) Improving the controversial system of medical care for the 
elderly over 74 would cost 200 billion yen in revenue resources 
(Nikkei) 
18) Creation of consumer affairs agency involves transfer of 
jurisdiction of 22 laws  (Nikkei) 
 
19) Joint government-private sector development of GX rocket has 
skyrocketed to 200 billion yen  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun, and Akahata 
Quake toll could top 50,000; Japan's rescue team dispatched to 
China; 10 million affected 
 
TOKYO 00001342  002 OF 014 
 
 
 
Nikkei: 
Japan sees first decline in number of vehicle owners; Related 
industries to receive blow 
 
2) EDITORIALS 
 
Asahi: 
(1) Rational review of health insurance system for elderly needed 
(2) Hammer out measures to deal with steep oil price rise at G-8 
Summit 
 
Mainichi: 
(1) Launch of group to consider adding life sentence to criminal 
law: Propriety of death sentence also should be discussed 
(2) Thoroughly discuss plan for independent permanent-settlement 
area in line with "post-mega merger of Heisei era" system 
 
Yomiuri: 
(1) Strict antimonopoly bill in line with international trend 
(2) 60th anniversary of establishment of Israel: Status quo will 
bring no bright future 
 
Nikkei: 
(1) Change river policy prioritizing construction of dams 
(2) Many things must be considered before way opened to using space 
 
 
Sankei: 
(1) Simulation of major quakes in Kinki, Chubu: Prepare full 
measures, focusing on key traffic systems 
(2) Companies' account settlement at turning point: Now recheck 
business strategy 
 
Tokyo Shimbun: 
(1) Work out steady measures in anticipation of major quake 
(2) "Peaceful use" starting point of use of space 
 
Akahata: 
(1) Reckless acts against public views steeply lowering support for 
Fukuda cabinet 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 15 
 
NIKKEI (Page 2) (Full) 
May 16, 2008 
 
09:26 
Met with former LDP Secretary General Nakagawa at Kantei. 
Afterwards, met with LDP Reform Implementation Headquarters Chief 
Takebe. 
 
10:10 
Had a telephone conference with Australian Prime Minister Rudd, 
joined by MOFA Asian and Oceanian Affairs Bureau Director-General 
Saiki. Afterwards, met with Special Advisor to Prime Minister Ito. 
 
11:33 
Met with Deputy Chairman Hironaka and Secretary-General Nohno of the 
Parliamentary Forum to Discuss International Population Issue. 
 
TOKYO 00001342  003 OF 014 
 
 
 
13:05 
Met with National Police Agency Director-General Yoshimura, followed 
by Special Advisor to Cabinet Nishimura. 
 
13:58 
Met with LDP Diet Affairs Committee Chairman Oshima and New Komeito 
Diet Affairs Committee Chairman Urushibara. 
 
14:38 
Met with Chief Cabinet Secretary Machimura. After him, met with MOD 
Defense Intelligence Headquarters Director-General Hokazono, Defense 
Policy Bureau Director-General Takamizawa, and Cabinet Intelligence 
Director Mitani. Mitani remained. 
 
15:11 
Met with Deputy Agriculture Minister Murakami and MOFA Economic 
Affairs Bureau Director-General Otabe. Afterwards, Met with FAO 
Director-General Diouf, joined by former Agriculture Minister 
Yatsu. 
 
16:00 
Met with Nikkei Chairman Sugita, its President Kita, and its 
Managing Director Akiyama. Afterwards, met with National Association 
of Shinkin Banks Chairman Takaharu Omae. Afterwards, met with Vice 
Foreign Minister Yabunaka, joined by Saiki. 
 
17:38 
Met with METI Vice Minister Kitabatake, Small and Medium Enterprises 
Agency Director-General Fukunaga and MAFF Director-General for 
Agricultural Affairs Ito. 
 
18:00 
Met with Special Advisor to Cabinet Okuda. 
 
18:58 
Attended a study meeting on foreign policy at Kantei, joined by 
Machimura. 
 
4) Japan sends rescue team to China 
 
TOKYO SHIMBUN (Page 1) (Full) 
May 16, 2008 
 
Following the Chinese government's announcement yesterday of 
accepting a Japanese rescue team, the Japanese government decided to 
dispatch an international disaster relief team that will consist of 
personnel from the Fire and Disaster Management Agency, the National 
Police Agency, the Japan Coast Guard, and the Japan International 
Cooperation Agency. The first unit of some 30 personnel left Haneda 
Airport yesterday evening for China. It will arrive at Chengdu, the 
capital of Sichuan Province before dawn today. Later in the morning, 
the group will travel to Qingchuan County, an area most hit hard by 
the earthquake, some 80 kilometers northeast of Sichuan Province's 
Beichuan County, and begin rescuing victims. The second relief unit 
of some 30 personnel will depart for China today. The Japanese team 
will be then composed of a total of 60 or so personnel. 
 
According to the Ministry of Foreign Affairs, the Japanese rescue 
team is the first foreign rescue team China has accepted. 
 
The Japanese team consists of 17 disaster and fire management 
 
TOKYO 00001342  004 OF 014 
 
 
officials including those from the Tokyo Fire Department's 
Interprefectural Emergency Rescue Unit, and 20 riot police officers 
including those from the Tokyo Metropolitan Department, 13 special 
rescue officials from the Japan Coast Guard, and physicians and 
nurses from the Japan International Cooperation Agency. Three search 
and rescue dogs also join the team. 
 
The Ministry of Internal Affairs and Communications' Fire and 
Management Agency intended to send 17 fire fighters to the quake-hit 
area, but because the Chinese side did not asked for the dispatch, 
the agency at one point decided not to dispatch them. 
 
5) In about-face from just days before, China accepts Japan's offer 
to send rescue team; China may have high opinion of Japan's 
experience in relief efforts 
 
YOMIURI (Page 2) (Excerpts) 
May 16, 2008 
 
The Japanese government will send in stages an international 
disaster relief team, consisting altogether of some 80 personnel, to 
Sichuan Province in order to rescue victims of the deadly 
earthquake. The first group of 31 personnel departed for China 
yesterday. Today, the second group of 29 personnel will leave Japan. 
Following them, a medical team of some 20 personnel is planned to be 
sent to China. 
 
Immediately after the occurrence of the quake, Tokyo made an offer 
to send a rescue team to China, but Beijing did not respond. 
 
Yesterday, however, China made an about-face from its previous 
stance (and accepted Japan's offer to send a rescue team). Speaking 
about why China has now asked Japan to send a rescue team, Senior 
Vice Foreign Minister Itsunori Onodera noted: "Japan has experience 
in dealing with disasters. The recent improvement in Japan-China 
relations also may have had a good effect." Prime Minister Fukuda 
told reporters at the Prime Minister's Official Residence: "It's 
take time to assess the full scope of the damage caused by the 
quake. It's unavoidable for it to (be slow to ask for help). Japan 
will extend as much cooperation as possible." 
 
Japan has sent a small rescue team to China to deal with the 
aftermath of a massive flood in 1989 and to deal with the damage 
caused by SARS in 2003, but the rescue team Japan has sent this time 
is the largest ever. 
 
The rescue team this time is composed of personnel from the Ministry 
of Foreign Affairs, the National Police Agency, the Japan Coast 
Guard, and the Japan International Cooperation Agency. It does not 
include any personnel from the Ministry of Defense and the 
Self-Defense Forces. According to a government official, the Chinese 
side did not want Japan to send SDF personnel to China. The 
disaster-affected area is close to Chongqing City, where 
anti-Japanese sentiments are still deep-rooted. Apparently, there 
seemed to be the Chinese side's judgment that the arrival of 
Japanese military personnel (even though their aim is to rescue 
victims) could further irritate frustrated local residents and have 
the opposite effect. 
 
Is this China's signal to attach important to Japan? 
 
Yusuke Sugiyama, Beijing 
 
TOKYO 00001342  005 OF 014 
 
 
 
The Chinese government yesterday decided to accept Japan's offer to 
send its rescue team to the area hit by the deadly Sichuan 
earthquake. Behind this decision is Beijing's judgment that it would 
be necessary to demonstrate at home and abroad that it is doing all 
it can to rescue human lives despite the situation being at its 
worst and the number of victims increasing. 
 
After Beijing announced its decision to accept a Japanese rescue 
team, a major Chinese message board on the Internet posted a number 
of messages that unusually expressed thanks to and hopes of Japan 
and also anxiety like "Need to come here quickly:. 72 hours have 
already passed.'" 
 
The entire country is anxious about the slow progress in rescuing 
tens of thousands of buried victims of the quake. Messages critical 
of the government are drawing attention. One such message said, "Too 
late." The public has cast doubts on the government's refusal to 
accept foreign rescuers by claiming "destroyed roads," according to 
the Civil Affairs Ministry. This seems to strong pressure on the 
government to comply. 
 
6) China desperate to save quake victims, accepts Japan's disaster 
relief team; Destroyed roads stand in way of relief efforts 
 
ASAHI (Page 2) (Excerpts) 
May 16, 2008 
 
The first Japanese disaster relief team departed for China late 
yesterday, following the Chinese government's acceptance of such 
assistance. Behind Beijing's acceptance lies the slow progress in 
rescuing victims of the recent quake. The Japanese assistance unit 
left for China but it was after the 72-hour time limit had passed - 
meaning that the survival rate then sharply drops in the aftermath 
of an earthquake. Still, victims are waiting for rescue. 
 
Hu administration shows consideration to relations with Japan 
 
Hideto Fujiwara, Beijing 
 
"We have taken into account the principle that Japan is close to us 
and is quick to act." This remark came out from Chinese Foreign 
Ministry Spokesman Qin Gang yesterday, when he explained why China 
had accepted Japan's international disaster relief team. 
 
 
On the night of May 12, the Chinese Civil Affairs Ministry and 
Foreign Ministry accepted the Japanese government's offer to send an 
emergency relief team. An official of the Civil Affairs Ministry, 
which received the offer from Japan ahead of the Foreign Ministry, 
told the Japanese side, "We will consider it." The ministry official 
was unable to respond promptly to the offer before his country had 
yet to prepare any relief unit. 
 
Meanwhile, the Chinese Foreign Ministry seized this offer as an 
opportunity for China to demonstrate international cooperation, 
especially with the Beijing Olympics nearing. In addition, the 
ministry was apparently motivated by the desire to promote ties with 
Japan, which President Hu Jintao had visited recently. According to 
a diplomatic source, Japan's offer was without delay relayed to Hu 
and other Chinese leaders. 
 
 
TOKYO 00001342  006 OF 014 
 
 
China's National Earthquake Relief Team consisting of 214 personnel 
flew from Beijing at 7:45 p.m. of May 12, some five hours after the 
occurrence of the earthquake. Some of the team had experience in 
relief activities in Indonesia and Iran. Joining the team were 12 
search-and-rescue dogs, and the team has two quake-relief-purpose 
vehicles and one emergency control vehicle. The team arrived at the 
disaster site in Dujiangyan City, Sichuan Province, at 2:23 a.m. of 
May 13. 
 
China is frequently hit by earthquakes. So, it established the 
National Earthquake Relief Team in 2001 as a professional group of 
rescuers. Afterwards, local relief teams were also established, but 
the number of rescuers joining those teams total only some 3,000 
persons from across the country. 
 
On May 13, a senior Civil Affairs Ministry official told a news 
conference: "Rescuers could not reach the disaster site because of 
bad road conditions." Two days later, China turned around its 
previous policy (of not accepting foreign rescuers) and accepted 
(Japan's offer to send a rescue unit). According to a diplomatic 
source, the damage caused by the deadly earthquake is so serious 
that China had no choice but to accept the offer. Reportedly, the 
decision to accept the offer was made by Hu himself. 
 
Yesterday, Prime Minister Fukuda indicated his understanding toward 
the situation in China, noting, "Given the scale of the recent 
earthquake, it is only natural to take time to see the full scope of 
the damage. Some time would be necessary to do so. It would be 
unavoidable to take time to ask for rescue teams from other 
countries." 
 
The survival rate drops significantly 72 hours after the occurrence 
of an earthquake. Already 72 hours have passed in China, but the 
Chinese side strongly hoped for a dispatch of a rescue team. This 
move could be taken as a message by the Chinese leadership that the 
Chinese government has not given up all hope of rescuing victims. 
 
7) Fukuda to announce in African Development Conference a plan to 
double ODA to Africa over five years 
 
YOMIURI (Page 2) (Full) 
May 16, 2008 
 
The government decided yesterday to augment official development 
assistance (ODA) disbursements to Africa. Final coordination is now 
underway on a plan to double ODA to Africa over the next five years. 
Prime Minister Fukuda will announce the plan in the 4th Tokyo 
International Conference on African Development (TICAD4) to open on 
May 28 in Yokohama. The government intends to boost aid particularly 
to countries in sub-Sahara Africa, an area suffering from serious 
poverty and internal conflicts. The government aims to assist 
African countries' agricultural development and economic growth with 
increased aid. 
 
The Japanese government announced in 2005 that it would double ODA 
disbursements to Africa in three years. Since then, it has augmented 
the amount of aid. A senior Foreign Ministry official said: "It will 
be possible to attain this goal," but a greater part of the 
financial aid has been used for their debt relief. Given this, 
Africa has asked the government to increase more substantial 
assistance. Recently, concern about steep rises in food prices is 
also heightening there. 
 
TOKYO 00001342  007 OF 014 
 
 
 
Japan has judged it is necessary to amplify its aid to Africa as the 
chair of the TICAD4 and the upcoming Lake Toya Summit (the Group of 
Eight Summit). 
 
The government intends to offer more grant and payable aid to 
finance infrastructure-construction projects to develop technology 
to increase food production and to improve agricultural output. 
 
8) Government, private sector to propose establishing safe zones as 
support measures for companies advancing into Iraq 
 
NIKKEI (Page 5) (Full) 
May 16, 2008 
 
The government will consider support measures for companies 
advancing into Iraq. The government specifically plans to establish 
a public-private economic committee to periodically exchange 
investment information as well as safe zones where companies can 
conduct activities freely. An Iraq trade policy study group will be 
established in the Ministry of Economy, Trade and Industry. The 
group will be tasked with presenting a set of proposals to the 
Japanese and Iraqi governments by late July. 
 
Although the situation in Iraq is still unstable, Western oil majors 
have advanced into the country for interests. The government will 
improve the business environment surrounding Japanese companies. 
 
The study group will hold its inaugural meeting on May 16. The 
meeting will be attended by officials from the Foreign Ministry, 
Japan External Trade Organization (JETRO), private-sector 
representatives, and Iraqi Ambassador to Japan Al-Jumaily. The group 
will propose the establishment of a public-private economic 
committee and sending a Japanese corporate delegation to the Kurdish 
Autonomous Region, where security is relatively stable. It will also 
call for the establishment of safe zones near borders and airports 
for corporations. 
 
9) SOFA revision called for 
 
MAINICHI (Page 5) (Full) 
May 16, 2008 
 
Kanagawa Gov. Shigefumi Matsuzawa and Okinawa Gov. Hirokazu Nakaima, 
who are chairman and vice chairman of the association of 14 
prefectures hosting U.S. bases, visited yesterday Chief Cabinet 
Secretary Nobutaka Machimura at the Prime Minister's Official 
Residence, to call on the government to revise the Japan-U.S. Status 
Forces Agreement (SOFA) and the establishment of a special committee 
of representatives from the municipalities in the Joint Japan-U.S. 
Committee. 
 
10) Gov't, Okinawa fret over Futenma relocation ahead of local 
election 
 
YOMIURI (Page 4) (Full) 
May 16, 2008 
 
The government and Okinawa Prefecture are now growing frustrated as 
they see little progress in the planned relocation of the U.S. 
Marine Corps' Futenma Air Station in Ginowan, Okinawa Prefecture. 
Okinawa Prefecture will announce an election on May 30 for its 
 
TOKYO 00001342  008 OF 014 
 
 
assembly with voting and vote counting slated for June 8. This is 
because the relocation plan could be affected if the ruling parties 
fail to retain a majority in the prefectural assembly, according to 
a government official. 
 
Okinawa Gov. Hirokazu Nakaima yesterday met with Chief Cabinet 
Secretary Machimura at the prime minister's office as one of those 
representing an association of governors from prefectures hosting 
U.S. military bases. In the meeting, Nakaima asked the government to 
revise the Japan-U.S. Status of Forces Agreement. 
 
Nakaima looked for a chance to meet Machimura before or after the 
meeting. That is because Nakaima wanted to propose revising the 
government's plan to relocate Futenma airfield to a coastal area of 
Camp Schwab in Okinawa Prefecture's northern coastal city of Nago. 
However, he could not take Machimura's time. With the prefectural 
assembly election scheduled ahead, Okinawa Prefecture has a sense of 
crisis over the pending issue of Futenma relocation. 
 
The government plans to lay down a V-shaped pair of airstrips as an 
alternative facility for Futenma airfield. Meanwhile, Okinawa 
Prefecture has asked the government to move the planned facility's 
location into the sea. The government will respond to Okinawa's 
proposal to revise the relocation plan. However, there was a strong 
backlash from the Unites States. The government therefore remains 
unable to go ahead with full-fledged consultations with Okinawa 
Prefecture. 
 
The Okinawa prefectural assembly currently has a total of 48 seats, 
broken down into 27 for the ruling parties and 20 for the opposition 
parties with one vacancy. This time, however, a number of 
heavyweights from the ruling parties have clarified their intent to 
run in the next election for the House of Representatives or retire. 
In Okinawa Prefecture, some municipalities have been consolidated 
into larger ones. There are also changes in the number of seats for 
each electoral district. Some presume that the ruling and opposition 
parties could be on an even balance. The governor's approval is 
needed for filling up the alternative facility's neighboring waters. 
However, if the ruling parties should become a minority group in the 
prefectural assembly, the governor's judgment may also be bound up 
with the prefectural assembly's decision. 
 
"If the ruling and opposition parties change places, that would 
affect the relocation," a high-ranking government official said 
yesterday evening. "We must win," New Komeito Secretary General 
Kitagawa stressed in a liaison meeting of the government and ruling 
coalition yesterday. 
 
"The prefectural assembly election would have repercussions from 
national politics, such as the new health insurance system for the 
elderly," Nakaima told reporters after meeting with Machimura. "I 
want to ask the expected candidates to do their best," he added. 
 
11) U.S. soldiers to be determined as deserters within a day or two 
 
ASAHI (Page 34) (Full) 
May 16, 2008 
 
Japan and the United States yesterday held a meeting of their 
intergovernmental joint committee to discuss the lack of information 
about a U.S. military deserter in connection with a taxicab driver 
slain in the city of Yokosuka, Kanagawa Prefecture. In the meeting, 
 
TOKYO 00001342  009 OF 014 
 
 
the Japanese and U.S. governments agreed to quicken procedures to 
acknowledge desertion. Based on the agreement, the United States 
will immediately inform Japan about deserters and ask Japanese 
police authorities to arrest them. The Japanese and U.S. governments 
will improve the Japan-U.S. Status of Forces Agreement's 
implementation. 
 
Senior Vice Foreign Minister Itsunori Onodera revealed the agreement 
in a press conference yesterday. The U.S. military used to take up 
to about 30 days to acknowledge a deserter. From now on, the U.S. 
military is expected to acknowledge a deserter within a day or two 
after that deserter's whereabouts became unknown. 
 
12) USFJ realignment subsidies set for local hosts 
 
YOMIURI (Page 4) (Full) 
May 16, 2008 
 
The Defense Ministry yesterday decided informally on the amount of 
subsidies to be granted in fiscal 2008 to municipalities for their 
increased burden along with the planned realignment of U.S. forces 
in Japan. The ministry will grant a total of 6.168 billion yen to 38 
municipalities, excluding Kanagawa Prefecture's Zama City, which is 
opposed to the U.S. Army's plan to move the forward-deployed 
headquarters of its 1st Corps headquarters to Camp Zama. 
 
Okinawa Prefecture's Nago City and Ginozason Village, where the U.S. 
Marine Corps' Futenma Air Station will be relocated, will be 
subsidized for the first time. Nago City will receive the largest 
amount of subsidies at 970 million yen, which includes a subsidy for 
fiscal 2007. Yamaguchi Prefecture's Iwakuni City, which has now 
accepted the planned transfer of carrier-borne aircraft, will 
receive the second largest amount of subsidies at 768 million yen. 
 
13) Japan mulling exporting 50,000 tons of rice to Philippines, 
using stocks held by Rice Stable Supply Ensuring Support 
Organization: Largest amount on commercial basis 
 
NIKKEI (Page 5) (Full) 
May 16, 2008 
 
A plan to export rice to the Philippines, where there is a growing 
concern about a rice shortage due to a sharp rise in international 
rice prices, has surfaced. The most likely plan is to export 50,000 
tons of rice from stocks, which the Rice Stable Supply Ensuring 
Support Organization (RSSESO) purchased in 2005, a year that 
experienced abundant crops. Japan exports about 1,000 tons of rice 
on a commercial basis. If the plan is realized, the scale would be 
the largest amount ever. 
 
The Philippines is a major rice-importing country in the world. It 
is having difficulty procuring rice due to a rise in the prices of 
Thai rice, an indicator for rice prices. It has already exchanged a 
memorandum on rice imports with Vietnam. It appears that it has also 
sought cooperation from Japan. 
 
The 2005 crop of rice that the RSSESO purchased cannot be sold 
because of the supply and demand adjustment by the government. It is 
selling the stocks at low prices for use for rice powder. The 
organization had approximately 68,000 tons of such rice in stock as 
of the end of March. It will likely undergo coordination with the 
possibility of exporting 50,000 tons from those stocks. 
 
TOKYO 00001342  010 OF 014 
 
 
 
The largest importer of Japanese rice on a commercial basis is 
Taiwan. Japan exported 450 tons to that nation last year. A ban on 
rice exports to China was lifted last year on a provisional basis. 
However, export amounts to it are no more than 120 tons a year. 
 
If it becomes possible to export rice on a scale much larger than 
the current level, it would boost a drive to expand rice exports, 
which have been sluggish due to high production cost. However, since 
the RSSESO has purchased the rice for a special reason -- 
supply-demand adjustment due to abundant harvest, whether the move 
will lead to expanded exports is unclear. 
 
14) Reversing previous explanation, operating whaling company says 
10 kilograms of whale meat was given to crewmembers as "souvenir" 
 
ASAHI (Page 34) (Abridged slightly) 
May 16, 2008 
 
Crew members of a Japanese whale research ship are suspected to have 
taken without permission some meat from whales caught during their 
activities. In this connection, Kyodo Senpaku Kaisha Ltd., the 
company that operates the whale research vessels, revealed yesterday 
the existence of the custom of giving 10 kilograms of whale meat to 
each crewmember free of charge as a "souvenir," reversing its 
previous claim until May 14 that denied charges of embezzlement or 
giving "souvenirs." There is clearly a gap in explanations with the 
Institute of Cetacean Research (ICR), which is authorized to conduct 
research whaling. 
 
According to Kyodo Senpaku, the souvenir consisted of 8 kilograms of 
whale meat known as unesu in Japan that is used for bacon and 2 
kilograms of red meat. Multiplying that amount by some 250 crew 
members comes to 2.5 tons in total. A source said: "Each crewmember 
can buy up to 3 kilograms of meat. They can also buy meat that was 
not bought by others." Kyodo Senpaku director Tajiro Tsurumoto 
noted: "Giving souvenirs is a custom in conducting research whaling. 
The money for the souvenirs has been paid to the ICR, so there is no 
problem. We think the amount of meat was also appropriate." 
 
Souvenirs are usually given to crewmembers before getting off the 
ship. Whale meat is put on the market after the Fisheries Agency 
determines sales prices about two months after research vessels 
return to Japan. (Souvenir meat) hits the market before that. The 
ICR has not said that it had sold "souvenir meat" to Kyodo Senpaku; 
it has simply said that the organization had handed several 
kilograms of meat to each crewmember. 
 
Administrative Vice-Agriculture, Forestry and Fisheries Minister 
Toshiro Shirasu in a press conference yesterday endorsed the 
practice of giving "souvenirs," saying, "Giving 10 kilograms of meat 
(per person) is not really a problem." At the same time, he 
indicated that Japan would conduct thorough research. 
 
15) LDP lawmakers waiting for cabinet posts ardently desire cabinet 
shuffle after G8 summit 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 16, 2008 
 
Calls are growing in the ruling Liberal Democratic Party (LDP) for a 
cabinet shuffle after the Group of Eight summit in early July in 
 
TOKYO 00001342  011 OF 014 
 
 
Hokkaido. All the more because a cabinet shuffle has been put off, 
although there have been many chances to carry it out, LDP members 
who have been looking forward to becoming cabinet ministers,are 
expressing their expectations of a cabinet shuffle after the G8 
summit. 
 
On the night of April 27 when the LDP candidate was defeated in the 
Lower House by-election for the Yamaguchi No. 2 constituency, Prime 
Minister Yasuo Fukuda met at his official residence with two 
influential LDP members, former Prime Minister Yoshiro Mori and 
Mikio Aoki, former chairman of the LDP Upper House caucus. Fukuda 
there told Mori and Aoki: "I will neither dissolve the Lower House 
nor resign en masse with my cabinet." 
 
Feeling secure after hearing Fukuda's remark, Mori and Aoki 
suggested to Fukuda that in order to boost the government the 
cabinet be shuffled: 1) sometime between the end of the ongoing 
regular Diet session and the opening of the G8 summit, 2) 
immediately after the G8 summit , or 3) around September. The three 
discussed the pluses and minuses of the three timings. 
 
Since Fukuda retained most ministers appointed by former Prime 
Minister Shinzo Abe in his cabinet when he took office, calls are 
strong in the LDP for a cabinet shuffle. 
 
Fukuda forwent shuffling his cabinet in mid-January before the 
convocation of the current Diet session, claiming a tight Diet 
schedule. Although there were views calling for a cabinet shuffle at 
the end of March after the Diet passed the budget for fiscal 2008 
and in May soon after the Golden Week holidays, Fukuda still did not 
make a move to shuffle his cabinet. 
 
After the end of the ongoing regular session, the excuse that 
cabinet ministers cannot be changed while the Diet is in session 
cannot be used. If the cabinet is shuffled before the G8 summit, 
chances are that a minor cabinet shuffle will be carried out because 
the foreign minister and some other ministers will be retained in 
their posts. Therefore, many LDP lawmakers are greatly looking 
forward to a large-scale shuffle after the G8 summit. 
 
There is a cautious view about a cabinet shuffle that Fukuda's grip 
on the party will weaken because some lawmakers and factions whose 
expectations are betrayed will hold a grudge against him and because 
there is concern about possible scandals involving new cabinet 
ministers. However, the dominant view in the party is that in a bid 
to gain public support rating for his cabinet, Fukuda has no other 
choice but to carry out a drastic shuffle even if it involves some 
risk. 
 
However, LDP views are divided as to when the cabinet should be 
shuffled -- immediately after the G8 summit or in September. Except 
the presidency, the terms of the LDP executives will expire at the 
end of September. Many LDP members has said that in order to avoid 
double work, a cabinet shuffle and the selection of the party 
executives should be conducted the same time. LDP members will have 
to wait for Fukuda's decision on whether a cabinet shuffle and the 
selection of the party executives will be carried out in July or in 
September. 
 
16) LDP President Ozawa to accelerate nationwide stumping tour for 
next Lower House election 
 
 
TOKYO 00001342  012 OF 014 
 
 
ASAHI (Page 4) (Full) 
May 16, 2008 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa from late May 
will accelerate his nationwide stumping tour to campaign for the 
next House of Representatives election. The purpose of his decision 
is to have his party speed up the selection of candidates by 
creating a surge in public expectations about an early dissolution 
of the Lower House and a snap election. 
 
Ozawa, who started stumping nationwide last fall, has so far visited 
16 prefectures this year. He plans to place priority on campaigning 
in the Tohoku and Kyushu-Okinawa regions. 
 
The reason is that he considers that obtaining a majority of seats 
of the single-seat constituencies in the Tohoku region is the first 
step for his party's goal of securing 150 seats in the single-seat 
constituencies nationwide and that he thinks since the DPJ forces 
have not yet taken root in the Kyushu region, an early promotion in 
the region is needed. He will visit either region in later this 
month and plans to speed up the pace of stumping nationwide. 
 
He intends to inspect medical, welfare and agricultural facilities 
in places where he will visit and to hold press conferences together 
with LDP-sponsored candidates. He also plans to hold meetings with 
senior members of Rengo (Japan Trade Union Confederation), DPJ 
prefectural chapters and support groups to obtain their cooperation 
in the next Lower House election. 
 
17) Ruling parties' proposals to improve new medical service system 
for elderly people requires fiscal resources worth 200 billion yen, 
going against government goal of constraining social security 
expenses 
 
NIKKEI (Page 2) (Full) 
May 16, 2008 
 
The government and the ruling parties have come up with measures to 
improve a new medical service system for elderly people aged 75 and 
older, which was introduced in April. However, the package would 
require about 200 billion yen if all proposals are to be 
implemented. Since the government has already set a goal of 
constraining growth of social security expenses by 220 billion yen a 
year, coordination would likely encounter difficulties. 
 
Yuya Niwa and Hidehisa Otsuji of the Liberal Democratic Party (LDP) 
and Chikara Sakaguchi of the New Komeito yesterday evening conferred 
on measures to remedy the system. One participant revealed, "Many 
participants called for cutting premiums paid by low-income earners 
by 80 PERCENT -90 PERCENT ." 
 
Premiums paid by low-income earners are reduced by 20 PERCENT -70 
PERCENT  under the present system. The ruling parties' proposal 
targets husbands whose income is lower than 1.68 million yen a year 
(current reduction percentage is 70 PERCENT ). The plan likely to be 
adopted is that if a husband's income is lower than the basic 
pension -- 66,000 yen a month or approximately 800,000 yen a year, 
premiums paid by the husband and his wife would be reduced by 80 
PERCENT -90 PERCENT . 
 
Another plan is the exemption of premiums paid by elderly persons 
supported by their company employee child for a year starting in 
 
TOKYO 00001342  013 OF 014 
 
 
October. The government and the ruling parties will also look into 
freezing a decision to raise over-the-counter hospital fees paid by 
elderly persons in the 70-74 age bracket starting next April. 
 
The problem is fiscal resources. It would need about 30 billion yen 
to exempt elderly persons supported by their company-employee child 
from paying premiums and about 140 billion yen to freeze a hike in 
the over-the-counter hospital fees paid by elderly people aged 
between 70 and 74. 
 
If those measures are implemented within the current fiscal, it 
would be possible to use a supplementary budget. However, if they 
are carried out next year, a budgetary ceiling would be set on 
expenditures. 
 
Given the fact that the government intends to constrain growth of 
social security expenses by 220 billion yen a year, it is difficult 
for it to make a generous commitment. 
 
18) Government plans to concentrate personnel, authorities in 
envisaged consumer agency: Jurisdiction of 22 laws to be transferred 
to enable agency to give recommendation to cabinet ministers; 
Government agencies alarmed about move 
 
NIKKEI (Page 2) (Excerpts) 
May 16, 2008 
 
A draft proposal for a consumer affairs agency that the government 
will establish in fiscal 2009 was revealed on May 15. According to 
the plan, the envisaged agency will be made an external organ of the 
Cabinet Office. It will be granted authority to carry out 
comprehensive coordination with and issue recommendations to other 
government agencies. It will have a committee as a subordinate 
organization, based on Article 8 of the National Government 
Organization Law, for the purpose of reflecting consumers' opinions 
in its policy and administrative procedures. The government 
envisages bringing under the agency's jurisdiction a total of 22 
laws, such as the Product Liability Law, the Law for Preventing 
Unjustifiable Extra or Unexpected Benefit and Misleading 
Representation and the Financial Instruments Sales Law. However, 
existing agencies are alarmed about their being deprived of 
authority and their personnel being trimmed. The government will aim 
at reaching a settlement in ministerial-level negotiations to be 
held around May 19. 
 
The establishment of a consumer affairs agency is based on the 
proposal made by Prime Minister Yasuo Fukuda. The Consumer 
Administration Promotion Council reporting to the prime minister, 
chaired by Gakushuin University Professor Takeshi Sasaki, will map 
out a set of specific proposals in early June. The government will 
aim at submitting related bills, such as one amending the Cabinet 
Office Law, to the extraordinary Diet session to be convened in the 
fall. 
 
19) Developing GX rocket costs 200 billion yen, three times initial 
estimate 
 
MAINICHI (Page 2) (Full) 
May 16, 2008 
 
The government and private sectors are jointly developing the GX 
mid-sized rocket. Japan Aerospace Exploration Agency (JAXA) and 
 
TOKYO 00001342  014 OF 014 
 
 
other organizations yesterday reported to a Space Activities 
Commission sub-panel that test-launching a prototype GX would cost 
between 15 billion yen and 19.5 billion yen. The cost is higher than 
that for the mainstay H2A rocket with launch capability more than 
twice the GX's. Many questioned the significance of developing the 
GX. 
 
In the meeting, JAXA and the private sector presented the estimates 
based on four patters of components and launch sites. 
 
The project would further cost between 83 billion yen and 138 
billion yen. The total development cost would swell to 150 billion 
yen to 200 billion yen instead of the originally projected 55 
billion yen. 
 
DONOVAN