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RUCNDT/USMISSION USUN NEW YORK 9853

UNCLAS SECTION 01 OF 09 TOKYO 001348 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 05/16/08 
 
INDEX: 
 
(1) Maher raps Tokyo, Okinawa as "indecisive" (Ryukyu Shimpo) 
 
(2) Interview with Okinawa Governor Hirokazu Nakaima on 36th 
anniversary of Okinawa's reversion to Japan; Gap exists in views on 
Futenma relocation; Reaching agreement behind Okinawa's back went 
too far (Asahi) 
 
(3) GIs in Japan-Neighbors' crimes: U.S. military realignment a task 
of top priority (Akahata) 
 
(4) International operations to rescue quake victims starting 
full-scale, with Japan's team arriving in China first (Nikkei) 
 
(5) LDP parliamentary league agrees to accept immigration bill 
(Asahi) 
 
(6) Security and foreign investment restrictions: J-Power incident 
questions; Concern about decline in investment in Japan (Nikkei) 
 
(7) Editorial: Basic law on use of space: Using space for peaceful 
purposes is the original point (Tokyo Shimbun) 
 
ARTICLES: 
 
(1) Maher raps Tokyo, Okinawa as "indecisive" 
 
OKINAWA TIMES (Page 2) (Full) 
May 16, 2008 
 
U.S. Consul General in Okinawa Kevin Maher held a press conference 
yesterday, during which he criticized the Japanese government and 
Okinawa Prefecture for their possible discussions on Okinawa's 
proposal to move Futenma airfield's alternative into the sea. Japan 
and the United States have now agreed on a plan to lay down a 
V-shaped pair of airstrips as an alternative facility for Futenma 
airfield. "This is not the stage for indecisiveness in their 
attitude," Maher said. 
 
Okinawa Prefecture's Governor Hirokazu Nakaima and Nago City's Mayor 
Yoshikazu Shimabukuro have been calling for moving the relocation 
site of Futenma airfield into the sea. In February, the government 
held a meeting of its consultative panel with officials from 
Okinawa's prefectural and municipal governments to discuss the 
pending issue of Futenma relocation. In that meeting, Chief Cabinet 
Secretary Nobutaka Machimura said the government would discuss 
Futenma airfield with its offshore relocation in mind. Maher's 
statement seems to have been meant to constrain both Okinawa and 
Tokyo. 
 
Maher explained, "Rather than point out someone, (the Japanese side) 
is as a whole indecisive." He noted: "The plan should be carried out 
as agreed on between Japan and the United States. If we try to 
partially revise it, there is a high probability that the entire 
plan will fall apart." 
 
Maher added: "If we can do the relocation, 8,000 Marines will be 
moved to Guam and most bases in the southern part will be returned. 
It will be to Okinawa's benefit." With this, he stressed that 
relocating Futenma airfield, as agreed on between Japan and the 
United States, will lighten Okinawa's burden. 
 
TOKYO 00001348  002 OF 009 
 
 
 
(2) Interview with Okinawa Governor Hirokazu Nakaima on 36th 
anniversary of Okinawa's reversion to Japan; Gap exists in views on 
Futenma relocation; Reaching agreement behind Okinawa's back went 
too far 
 
ASAHI (Page 34) (Abridged slightly) 
May 16, 2008 
 
May 15 marked the 36th anniversary of the reversion of Okinawa to 
Japan. Okinawa still hosts 75 PERCENT  of U.S. bases in Japan, 
although the economic gap has narrowed. The newspaper interviewed 
Governor Hirokazu Nakaima to find out his views. 
 
-- It has been 36 years since Okinawa's reversion to Japan. 
 
"Thanks to the government's economic package for Okinawa that 
incorporates ample subsidies, Okinawa's infrastructure, such as 
roads and airports, has been improved markedly. As for the 
manufacturing industry, traditional crafts, such as textiles, and 
metal casting have grown, although still small in size." 
 
-- The relocation of Futenma Air Station has not moved forward. It 
has already been 12 years since a bilateral agreement was reached to 
return it. 
 
"Situated in the middle of the downtown area, Futenma Air Station is 
dangerous to anyone's eye. The question is not about its function or 
its size. When (Japan and the United States decided to return it to 
Japan), Okinawa residents, including myself, thought its replacement 
facility would be built outside Okinawa, but the government 
eventually settled on another site in the prefecture. There was a 
gap in views then, and there remains a gap today." 
 
-- After that, then Governor Masahide Ota said "no" to finding a new 
site for the base in the prefecture. He was eventually replaced by 
Keiichi Inamine, your predecessor. 
 
"Mr. Inamine said, 'Relocating the base to another site in the 
prefecture cannot be helped,' and the government and affected 
municipalities reached an agreement to build a replacement facility 
in waters 2.2 kilometers off Henoko. It we had pushed ahead with 
that plan, there would not have been any problems." 
 
-- In October 2005, the two governments jettisoned the offshore plan 
and adopted a coastal plan instead. 
 
"Another gap has resulted from that. The governments of Japan and 
the United States arbitrarily made changes behind Mr. Inamine's back 
to what had been agreed upon. The way they did was way out of 
line." 
 
-- What was the reason for the change?" 
 
"There has been no clear explanation. The foreign minister simply 
said, 'This is the best option.' I don't think the Foreign Ministry 
can explain why it's the best." 
 
-- What is your stance on the realignment of U.S. forces? 
 
"The U.S. military presence is OK. It is still necessary today. I 
also basically think the intra-prefectural relocation cannot be 
 
TOKYO 00001348  003 OF 009 
 
 
helped. Then again, I have told the government that it would be 
faster to obtain local understanding and convince the people in 
Okinawa. But the government has insisted, 'What was determined 
cannot be moved even a millimeter.' That's why it is taking so much 
time." 
 
-- You are calling for moving the relocation site into the sea, 
aren't you? 
 
"In order to reduce noise and risk factors, I have basically asked 
the government to move the site as far away as possible from the 
residential areas." 
 
-- An environmental impact assessment is underway. If the site were 
to be moved 50 meters from the current plan, wouldn't it necessary 
to do the assessment all over again under an ordinance? 
 
"That's why we have underscored for the last two years the need to 
revise the plan before starting the assessment. I have warned them, 
'If you don't listen to us, I will not authorize the use of the 
surface of public waters for the project.'" 
 
-- When the matter did not move forward, the government considered 
the option of transferring powers from prefectural governors to the 
state to use the surface of public waters. 
 
"The government recently considers such an approach easily. Times 
have changed. About defense policy, including the U.S. military, the 
government should ask the opinions of not only the Defense Ministry 
but also the general public and local governments." 
 
(3) GIs in Japan-Neighbors' crimes: U.S. military realignment a task 
of top priority 
 
AKAHATA (Page 3) (Full) 
May 15, 2008 
 
"We deeply apologize." So saying, U.S. Ambassador to Japan Schieffer 
and the commander of U.S. Forces Japan bowed their heads. We have 
now become quite used to seeing them doing so. 
 
"They're now quick to apologize. That's probably risk management 
they learned from the schoolgirl rape of 1995." This comment came 
from Suzuyo Takasato, a former member of the municipal assembly of 
Naha City in Okinawa Prefecture, where she has been tackling the 
problem of sexual violence by American soldiers. 
 
In February this year, another schoolgirl was raped in Okinawa. 
Afterward, the USFJ set up "a day of reflection" for commanding 
officers as well as for the rank and file. 
 
The U.S. military apparently did not want to repeat the situation it 
had experienced 13 years ago. At the time, the Japan-U.S. alliance 
was said to have been rocked by an incident, involving a group of 
three U.S. servicemen gang raping a schoolgirl. Commenting on that 
inhuman act, U.S. Pacific Command (PACOM) Commander Mackey said, "If 
they had the money to rent a car, they could have got women." This 
remark fueled the anger of people in Okinawa Prefecture. 
 
They said they would "enforce stricter discipline" and "take 
recurrence prevention measures." However, what they say is always 
the same as what they used to say. After an incident, the U.S. 
 
TOKYO 00001348  004 OF 009 
 
 
military imposes a curfew and issues a no-drinking order. However, 
such restrictions will be lifted after a while. That is because 
protracted restrictions will lead to undermining morale. 
 
And crimes repeat themselves. In Okinawa, even after this February's 
schoolgirl rape, there is no end to heinous crimes, as seen from 
such incidents as a foreign woman's rape and a taxi holdup. 
 
What is serious is that heinous crimes committed by U.S. soldiers 
are not a lesson to the rank and file. 
 
In January 2006, William Reese, a U.S. Navy serviceman, murdered a 
Japanese woman, Yoshie Sato, in Yokosuka, Kanagawa Prefecture. 
Reese, currently in prison, was based at Yokosuka for nearly two 
years from May 2004. During that time, nearly 10 U.S. soldiers and 
civilian employees were booked in Kanagawa Prefecture for muggings 
or other crimes. However, Reese stated that he had not been given 
any individual instructions concerning those incidents. 
 
"It is a task of top priority for me to carry out the agreement 
between the Japanese and U.S. governments on the realignment of U.S. 
forces in Japan," U.S. Forces Japan Commander Rice, who arrived at 
his USFJ post in February this year, said in Tokyo in April. 
Concerning a series of crimes committed by U.S. military personnel, 
Rice said: "There may be one or two who do not live up to U.S. 
military standards. However, we have taken appropriate action to 
have them take responsibility." With this, he sounded as if to say 
only some outrageous persons committed such crimes. 
 
The United States' intent is plain. They want to carry out the 
realignment of U.S. forces in Japan, such as building new Marine 
Corps bases in Okinawa's Nago and Guam and deploying a 
nuclear-powered aircraft carrier to Yokosuka. They are trying to 
remove unnecessary friction, and to meet that end, they only bow 
their heads. 
 
(4) International operations to rescue quake victims starting 
full-scale, with Japan's team arriving in China first 
 
NIKKEI (Page 3) (Full) 
May 16, 2008 
 
About 30 members of the Japanese government's emergency relief team 
left Narita Airport last evening and arrived in Beijing on the night 
of the same day. The team will be arriving in devastating 
earthquake-hit Sichuan Province on the 16th to help quake victims. 
The Japanese team is the first foreign relief group that China 
allowed into the country to assist in the rescue efforts. 
International rescue operations have started on a full scale, such 
as the delivery of tents and other relief supplies by Russia. 
 
 
The team is composed of members of the Fire and Disaster Management 
Agency, the National Police Agency, the Japan Coast Guard, and the 
Japan International Cooperation Agency (JICA). Rescue dogs have also 
been sent with them. Self-Defense Force personnel are not included 
in the team. The team will start operations in Qingchuan Province, 
about 400 kilometers away from Chengdu, the capital of Sichuan 
Province. At Narita, team leader Takashi Koizumi, a Foreign Ministry 
official, told reporters: "We will make utmost efforts to rescue as 
many people as possible." 
 
 
TOKYO 00001348  005 OF 009 
 
 
A second group of about 30 is to depart for China today. The 
Japanese government is also preparing to send a medical team 
consisting of 10 to 20 members. Japan so far dispatched personnel to 
China when it was hit by floods and also when Severe Acute 
Respiratory Syndrome (SARS) broke out in the country. 
 
In a press conference yesterday, Chinese Foreign Ministry Spokesman 
Qin Gang expressed his gratitude for Japan's support, saying: "The 
Chinese government and its people have been greatly impressed (by 
Japan's aid)." Qin said that China now needs: (1) tents and 
blankets, as well as such daily necessities as instant food; (2) 
satellite communications equipment and rescue equipment; and (3) 
pharmaceuticals and medical equipment. 
 
On the afternoon of the 14th, a Russian transport plane carrying 30 
tons of relief materials arrived in Chengdu. From Russia, 100 tons 
of additional supplies will soon arrive. Japan's tents and blankets 
worth 60 million yen will also arrive in Chengdu on the 16th. 
Additionally, goods from South Korea and Britain will shortly land. 
 
According to a Chinese diplomatic source, the Chinese government has 
decided to accept rescue teams from Russia and Australia. But it 
referred on the 15 to only a plan to accept Japan's team. The 
spokesman explained: "We gave priority to such conditions as short 
distance and quickness." But the diplomatic source said: "China 
expressed its gratitude for the fact that Japan was the first 
country that expressed a willingness to offer aid after the quake." 
 
Beijing had replied to Tokyo and other governments that it would be 
difficult to receive foreign rescue teams at present because of a 
lack of preparedness. China's policy switch largely reflects its 
judgment that it needs help from Japan with its high level of rescue 
technology and experience, now that no progress has been made in 
rescuing survivors. 
 
The survival rate for victims buried under rubble falls sharply 72 
hours after a quake hits, according to experts. A Chinese government 
source said: "Executive members, including Premier Wen Jiabao, seem 
to have made the decision in the morning of the 15th," keeping 15:00 
of the 15th - 72 hours after the quake - in mind. 
 
If a disaster-struck nation accepts rescuers from abroad, it shows 
that the nation cannot independently deal with the situation. 
China's about-face to accept foreign rescue teams apparently 
reflects the seriousness of damage, as well as a judgment by the 
leadership led by President Hu Jintao giving priority to 
international coordination, particularly, to relations with Japan by 
emphasizing the need to establish a strategic mutually beneficial 
relationship. 
 
China is now being sharply criticized by Western countries for its 
actions to put down Tibetan rioters. Observers also see behind 
China's policy switch an aim to calm down a xenophobic patriotism 
growing among the people in the run-up to the Beijing Olympics 
through reports by the media on its image of joining hands with the 
international community. 
 
(5) LDP parliamentary league agrees to accept immigration bill 
 
ASAHI (Page 7) (Full) 
May 16, 2008 
 
 
TOKYO 00001348  006 OF 009 
 
 
A group of about 80 Liberal Democratic Party (LDP) lawmakers 
advocating the acceptance of talented foreign workers yesterday 
reached a broad agreement on a set of proposals for a 
"Japanese-style immigration policy," which is designed to press 
forward with accepting such immigration. The group headed by Hidenao 
Nakagawa, a former secretary general, aims at creating an 
Immigration Agency over the medium to long term. It will submit this 
policy proposal to the cabinet before the end of June. 
 
The group noted that Japan needs to actively accept foreign labor in 
order to achieve sustained economic growth amid a declining 
population. The group aims at making Japan over the next 50 years a 
multiethnic country, in which immigrants account for 10 PERCENT  of 
the entire population, similar to that of Europe. 
 
At present, Japan allows such foreign workers as researchers and 
lawyers in specialized or technical areas to reside permanently. The 
group, however, calls for expanding the scope of targets to skilled 
labor. 
 
As concrete measures, the group proposes abolishing the present 
on-the-job training system and creating instead a new system to 
teach foreigners skills in vocational training facilities in Japan. 
The LDP lawmakers also suggest that the government increase foreign 
students from the present 130,000 to 1 million by 2025. 
 
An Immigration Agency would in charge of managing the immigration 
and compiling measures for having foreign workers acclimatize 
themselves to the Japanese society in an integrated fashion. 
 
(6) Security and foreign investment restrictions: J-Power incident 
questions; Concern about decline in investment in Japan 
 
NIKKEI (Page 5) (Full) 
May 16, 2008 
 
Private-sector member, "Non-discrimination between domestic and 
foreign companies is essential (in applying foreign investment 
restrictions)." 
 
Minister of Economy, Trade and Industry Akira Amari: "Please do not 
mix up with the airport issue. We are dealing with the case with the 
existing law." 
 
The Council on Economic and Fiscal Policy (CEFP) held a meeting on 
April 8. The agenda item was the environmental issue. However, 
discussions touched on the issue of the Children's Investment Fund's 
(TCI), a British hedge fund, bid to increase its stake in J-Power. 
As participants were exchanging off-the-record opinions, all other 
issues involved cropped up. 
 
No problem, even if a takeover bidder is joining hands with a 
foreign company 
 
This J-Power issue is indeed different from a case involving airport 
operating companies, in which the Ministry of Land, Infrastructure 
and Transport (MLIT) tried to apply a foreign capital restriction. 
The government acted, based on the determination that there is a 
security concern in light of the existing Foreign Exchange and 
Foreign Trade Control Law. It never intended to impose a new 
restriction on an ad hoc basis. 
 
 
TOKYO 00001348  007 OF 009 
 
 
However, this regulation can only be applicable if a foreign company 
tries to obtain a 100 PERCENT  stake in a listed domestic company. 
If a bidder is a domestic investment fund teaming up with a foreign 
fund, then the regulation would not be applied. 
 
Keio University Professor Naoyuki Yoshino, chairman of the Council 
on Tariffs and Foreign Exchange, who examined the British fund's 
plan to increase its stake in J-Power, pointed out that if it had 
been an ordinary company, there have been no problems at all, even 
if it was a foreign company. The TCI's past investment activities, 
such as it once strongly urged the replacement of a management 
executive of a German bourse, were made an issue. However, one 
government source said, "You cannot say that you can trust a person, 
just because that person is Japanese." 
 
If security is the reason for the application of the foreign capital 
restriction, then its application must be non-discriminatory between 
domestic and foreign companies, as the above-mentioned 
private-sector member of the CEFP pointed out. Otherwise, the 
decision would be unconvincing. It would hamper foreign investors 
from investing in Japan. 
 
It is also unclear whether the government has fully faced up to the 
market. INPEX Holdings was privatized in 2004 as J-Power did, taking 
over the resources section of the former Japan National Oil 
Corporation. Both companies listed their stocks. INPEX issued golden 
shares that can protect management personnel and capital for the 
purpose of defending the company from hostile takeover bids, because 
it had a sense of crisis that Exxon Mobil or Royal Dutch Shell, 
which were buffeted by waves of large-scale corporate 
reorganization, might attempt to acquire it. On the other hand, 
J-Power reportedly did not issue golden shares because of the 
possibility of its share prices falling when it is listed. At that 
time, the power industry was not worried about being approached by 
foreign companies. 
 
Harsh eyes of market insiders 
 
Given such circumstances, it is only natural that market insiders 
give a hard look at J-Power for neglecting efforts to take measures 
to secure stable stockholders. Akira Yamauchi, a senior consultant 
at the Nomura Research Institute, pointed out, "It is a reasonable 
decision that the fund targeted J-Power's surplus funds. If that 
company is simply rejecting being acquired, then the meaning of its 
being listed on the market is weak." 
 
When the government issued an order to the TCI to stop a move to 
increase its stake in J-Power, it released a statement, which noted 
that the Japanese government's stance of promoting inward foreign 
direct investment in Japan has not changed. Behind the statement is 
a message that it is not that Japan's foreign investment 
restrictions alone are pronounced and that the measure this time is 
exceptional. 
 
Even so, what is sought from Japan, whose inward foreign direct 
investment in ratio to the GDP is the lowest among industrialized 
countries, is not having foreign investment restrictions on a par 
with those of European countries and the U.S. but whether it can 
lure investment at a pace faster than those countries can. The 
government's Export Council on Investment in Japan will shortly map 
out a set of proposals, including a hike in the corporate tax rate. 
Unless the government steadily takes measures, a suspicion that the 
 
TOKYO 00001348  008 OF 009 
 
 
Japanese market is closed will linger. 
 
(7) Editorial: Basic law on use of space: Using space for peaceful 
purposes is the original point 
 
TOKYO SHIMBUN (Page 5) (Full) 
May 16, 2008 
 
Legislation allowing the country to use space for defense purposes 
has cleared the House of Representatives. Although it is a major 
shift from the traditional principle of using space for "peaceful 
purposes" to "security purposes," concerns have not been eased at 
all in Lower House. The House of Councillors must conduct thorough 
deliberations. 
 
The basic legislation on use of space that will transform the nature 
of the country's space development has easily passed the Lower 
House. 
 
The legislation, jointly submitted by the Liberal Democratic Party, 
New Komeito, and Democratic Party of Japan, has been sent to the 
Upper House after it was approved by the Lower House Cabinet 
Committee following a two-hour question-and-answer session. 
 
In establishing the National Space Development Agency of Japan 
(currently the Japan Aerospace Exploration Agency) in 1999, the 
Lower House unanimously adopted a resolution restricting the 
development of space to peaceful purposes. The government has 
repeatedly explained that "peaceful purposes" mean "nonmilitary 
purposes." 
 
This has prohibited Japan from launching satellites for defense 
purposes. The resolution of the information-gathering satellites 
that were launched after North Korea fired a Taepodong missile in 
1998 has been hold down to a level below that of commercial 
satellites. 
 
Clearly specifying "security" as an objective of space development, 
the legislation will abolish such restrictions at a stroke. 
 
At work behind it seems to be manufacturers' intention to promote 
the space industry by expanding demand in the defense sector, in 
addition to meeting the North Korean nuclear and missile threats. 
 
The question is what will result from such a policy shift. Once the 
legislation is enacted, the Self-Defense Forces will be allowed to 
possess high-performance satellites and early-warning satellites 
that can detect missile launches. Japan's unstoppable steps would 
put neighboring countries on guard. 
 
Transparency in space development would also be lost. The government 
was reluctant to provide information even on information-gathering 
satellites. It would be even more reluctant to disclose information 
on high-end satellites for defense purposes. The government might 
cite the "appropriate management of information" in explaining its 
reluctance. 
 
Space development is costly to begin with. Giving priority to the 
defense sector might end up taking a toll on peaceful utilization. 
How to strike a balance between the two remains totally unclear. 
 
The unmanned spacecraft Hayabusa asteroid probe and Kaguya moon 
 
TOKYO 00001348  009 OF 009 
 
 
probe, which have been developed as part of Japan's efforts to use 
space peacefully, have won the country a high international 
reputation. Such technology might wane. 
 
Abandoning the long-held principle of using space for peaceful 
purposes without answering those questions would create serious 
problems for Japan's space development in the future. 
 
DONOVAN