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UNCLAS SECTION 01 OF 12 TOKYO 001386 
 
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 05/21/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Ambassador Schieffer in a speech calls on Japan to increase 
defense spending (Mainichi) 
5) Japanese government picking up the tab for highway tolls used by 
U.S. military personnel driving base rental cars (Tokyo Shimbun) 
6) Bill allowing defense use of outer space will be enacted today 
with little debate (Asahi) 
7) LDP project team plans to submit permanent SDF overseas-dispatch 
legislation to Diet in fall (Nikkei) 
 
Africa aid: 
8) Japan plans to provide $2.5 billion in financial assistance over 
next five years to Japanese firms investing in Africa (Asahi) 
9) Japan's commitment to double aid to Africa over five years 
already hitting a snag in internal coordination (Sankei) 
10) Foreign and finance ministries at odds over African aid budget 
(Yomiuri) 
11) Japan to provide Africa with technical cooperation to ensure 
pure water supply (Sankei) 
12) Government to dispatch several SDF officers to serve at African 
Union (AU) headquarters in Addis Ababa (Mainichi) 
 
Burma aid: 
13) Meeting planned at cabinet level on aid to cyclone-ravaged Burma 
(Myanmar) (Nikkei) 
14) Burma accepts dispatch of Japanese aid personnel (Mainichi) 
15) Prime Minister Fukuda to travel to Germany, England, and Italy 
in early June (Asahi) 
16) Secretary Rice, Foreign Minister Koumura discuss North Korean 
nuclear records in telephone conversation (Yomiuri) 
 
Political agenda: 
17) Three-hour meeting between Prime Minister Fukuda and New Komeito 
head Ota prompts speculation they discussed cabinet shuffle or Diet 
dissolution (Tokyo Shimbun) 
18) Democratic Party of Japan (DPJ) head Ozawa says there definitely 
will be Diet dissolution and a snap election sometime between 
September and December (Yomiuri) 
19) LDP starts working on plan to raise consumption tax (Asahi) 
20) Despite its importance, the civil service reform bill will not 
be passed by the Diet this session (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Sichuan quake: 9,000 evacuate homes due to cracks in mountain 
 
Mainichi: 
Drawings of autopsied bodies may be shown to lay judges instead of 
photos with consideration given to their psychological burden 
 
Yomiuri: 
Five local bar associations voice difficulty in dealing with lay 
judge system: One year to go until the system begins: Issue is 
 
TOKYO 00001386  002 OF 012 
 
 
securing personnel 
 
Nikkei: 
Sumitomo Metal to Invest 200 billion yen in nickel mine development 
on Solomon Islands 
 
Sankei: Tokyo Shimbun 
Top six banks' subprime-linked losses reach 940 billion yen in 
fiscal 2007, three times higher than estimated 
 
Akahata: 
Something wrong about consumption tax-centered discussions of fiscal 
resources for pension payouts, which do not seek burden-sharing from 
major companies 
 
2) EDITORIALS 
 
Asahi: 
(1) Reform of public servant system lacks enthusiasm 
(2) New Taiwan president: Maintaining status quo is wise selection 
 
Mainichi: 
(1)  Estimate for pension reform: Time for political parties to come 
up with specific plan 
(2) Children's dependence of cell phones: Problem cannot be solved, 
just by taking handsets from them 
 
Yomiuri: 
(1) We hope to see Japan-U.S.-South Korea talks lead to progress on 
abduction issue 
(2) Account settlement of top six banks: How will they recover from 
major decline in profits? 
 
Nikkei: 
(1) Deepen discussions of pension system, based on government 
estimates 
(2) Taiwan President Ma should urge China to promote 
democratization 
 
Sankei: 
(1) Estimate of tax-funded pension system: Discussion including 
medical service and nursing care needed 
(2) Ma sworn in as Taiwan president: We want to closely watch his 
policy of attaching importance to Taiwan 
 
Tokyo Shimbun: 
(1) Ma sworn in as Taiwan president: Make utmost effort to stabilize 
Taiwan Strait 
(2) Children and cell phones: Do not allow them to enter danger 
zone 
 
Akahata: 
(1)  Three social education-related bills: Do not deprive social 
education of freedom 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 20 
 
NIKKEI (Page 2) (Full) 
May 21, 2008 
 
 
TOKYO 00001386  003 OF 012 
 
 
08:25 
Attended a meeting of the Overseas Economic Cooperation Conference 
in the Diet Building. 
 
09:01 
Attended a cabinet meeting. Health, Labor and Welfare Minister 
Masuzoe and Chief Cabinet Secretary Machimura stayed behind. 
 
09:34 
Met Internal Affairs Minister Masuda and Assistant Deputy Chief 
Cabinet Secretary Saka at the Kantei. Followed by State Minister of 
Consumer Affairs Kishida, joined by Machimura. 
 
11:30 
Met at his official residence with New Komeito President Ota, 
Secretary General Kitagawa, Diet Affairs Committee Chairman 
Urushibara, and others, with Machimura, deputy chief cabinet 
secretaries Ono and Iwaki. 
 
14:34 
Met Deputy Chief Cabinet Secretary Futahashi at the Kantei. 
15:26 Met Lower House members Seiken Sugiura, Taku Yamamoto, and 
Ichiro Miyashita. 
 
16:03 
Met METI Vice Minister Kitabata, Industrial Technology and 
Environment Policy Bureau Director General Ishida, and Natural 
Resources and Energy Agency Director General Mochizuki. Later, met 
Nitori Co. President Akio Nitori, with Executive Council Chairman 
Nikai and LDP Reform Implementation Headquarters chief Takebe, and 
others present. 
 
17:15 
Attended a meeting of the Council on Economic and Fiscal Policy. 
19:02 Met JICA President Sadako Ogata and actress Mayu Tsuruta. 
 
19:22 
Met at his official residence with Secretary General Ibuki, Policy 
Research Council Chairman Tanigaki, and other LDP executive members, 
with Machimura present. Joined by Election Committee Chairman Koga 
and Nikai. 
 
21:15 
Met Machimura. 
 
4) U.S. Ambassador to Japan Schieffer calls on Japan to expand 
defense spending 
 
MAINICHI (Page 3) (Full) 
May 21, 2008 
 
In a speech yesterday to the Foreign Correspondents Club of Japan, 
U.S. Ambassador to Japan Schieffer called on Japan to increase its 
defense spending, as well as to strengthen cooperation with the 
United States in the area of weapons procurement. The Ambassador 
pointed out that while such countries in Northeast Asia as China and 
Russia are expanding defense spending, Japan's expenditures "have 
hardly changed since 1998, and are shrinking in terms of GDP."  He 
said: "It should consider a larger contribution for national 
security." 
 
5) U.S. soldiers' use of rental cars for leisure purpose: Japan 
 
TOKYO 00001386  004 OF 012 
 
 
bears highway tolls; USFJ issues toll free passes; SOFA violation 
likely 
 
TOKYO SHIMBUN (Page 27) (Full) 
May 21, 2008 
 
Shigeru Handa, senior writer 
 
U.S. military bases in Japan give a "certificate for transit of toll 
roads by military vehicles"-or a highway toll free pass-to U.S. 
military personnel and their families when renting out military 
vehicles, the Tokyo Shimbun has found. The Japanese government 
shoulders highway tolls for U.S. military personnel using highways 
for official business. However, it means that the Japanese 
government has been made to foot the bill even for U.S. soldiers' 
leisure. The Defense Ministry has inquired of U.S. Forces Japan 
headquarters about the facts, suspecting that it is a violation of 
the Japan-U.S. Status of Forces Agreement. 
 
The 374th Airlift Wing, which controls the U.S. Yokota Air Base, has 
its own website, Yokota AB Services. This website used to upload an 
advertisement of rental car services to look around in Japan. It had 
a description, saying: "Rent-a-car rates include tolls for most 
highways." 
 
This wording can be taken as indicating USFJ's handout of the 
certificate to U.S. military personnel using rental cars. This 
phrase, however, has now been erased. 
 
USFJ, under SOFA's Article 5-2, is exempted from highway tolls if 
its SOFA personnel hand in a U.S. military pass at a toll gate when 
using a highway for official business. These toll free certificates 
are sent in to the Defense Ministry's nine local defense bureaus 
across the nation, and the Defense Ministry foots the bill. 
 
In fiscal 2007, the Defense Ministry paid 884 million yen for a 
total of 995,000 cars. Even in the case of U.S. military vehicles, 
the Defense Ministry does not shoulder highway tolls for leisure or 
any other purposes outside official business. The U.S. military 
seems to understand that U.S. military personnel's use of rental 
cars falls under welfare for official business. 
 
The Defense Ministry's Compensation Division has inquired of USFJ 
headquarters about the facts-such as what the now-erased webpage 
phrase meant-in order to check if U.S. military personnel's use of 
the toll free certificate was not a violation of SOFA. In addition, 
the Defense Ministry has also asked USFJ to submit a list of its 
rental cars' license plate numbers. In this regard, the Defense 
Ministry is planning to check through its local defense bureaus to 
see if the toll free certificate was used for rental cars. 
 
In 1993, copies of the highway toll free certificate, signed by a 
U.S. military officer for transport affairs, were used at highways 
across the nation. There were also scams with such copies being 
floated to discount ticket stores. The U.S. military currently 
numbers the certificate serially for appropriate use. 
 
USFJ still issues certificate 
 
The Tokyo Shimbun asked USFJ about the highway toll free certificate 
for its personnel's use of rental cars. In response, USFJ's press 
office at its headquarters answered that USFJ "still issues the 
 
TOKYO 00001386  005 OF 012 
 
 
certificate even now." With this, USFJ owned up to the fact that 
U.S. military bases in Japan have handed out the certificate to U.S. 
military personnel and their families renting cars. 
 
The 374th Airlift Wing's website had a description saying the 
rent-a-car rates include highway tolls, but this phrase has now been 
erased from its webpage. Asked why, the USFJ press office explained: 
"That is because Japan and the United States will discuss this 
matter." 
 
6) Basic space law to clear Diet today, with scant debate by DPJ on 
defense purposes 
 
ASAHI (Page 4) (Abridged slightly) 
May 21, 2008 
 
Basic space legislation opening the door to the use of space for 
military purposes is expected to clear the Diet today with the 
Liberal Democratic Party, Democratic Party of Japan, and New Komeito 
casting a majority of votes in an Upper House plenary session. The 
contents of the law change the country's basic policy of using space 
only for peaceful purposes in principle. Because the DPJ responded 
to ruling camp calls for talks on bill revisions, the legislation 
will now be enacted only after a only four hours of deliberations in 
the Diet. The stance of the DPJ, which has failed to thorough debate 
the bill, is likely to draw criticism. 
 
In yesterday's Upper House Cabinet Committee session, which endorsed 
the bill, some proponents played up the legislation's significance: 
 
LDP member and former education, science and technology minister 
Takeo Kawamura said: "The nation will pursue space development in 
line with its exclusively defense-oriented policy." 
 
DPJ Upper House member Goshi Hosono noted: "The legislation can be 
used in removing disaster risks and exploring resources." 
 
Opening the door to defense purposes has long been called for by LDP 
lawmakers connected to space projects and some economic circles 
eager to revitalize the space industry. The major obstacle has been 
the 1969 Diet resolution limiting the use of space to peaceful 
purposes only. The government has interpreted "peaceful use" as 
"nonmilitary purposes." But adding the new phrase "to contribute to 
the security of Japan" to the objectives of the legislation, the 
government has effectively altered its interpretation. 
 
The ruling parties submitted last June a bill removing the ban on 
defense purposes. Many members of the DPJ's space legislation 
project team (PT) also regarded the ban on defense purposes as a 
major obstacle to revitalizing the space industry. The three parties 
jointly re-submitted the legislation in May following the ruling 
bloc's acceptance of the DPJ's counterproposal. 
 
The DPJ has not conducted in-depth discussions on the legislation 
that concerns the foundation of the nation's security policy. There 
is a wide-range of views in the party on the Constitution and 
security. Conducting thorough discussions to narrow down differences 
in views might delay reaching a conclusion. For this reason, the PT 
has continued leaving security outside the focus, reporting to the 
defense and foreign affairs department retroactively. 
 
The legislation includes the phrase "based on the principle of 
 
TOKYO 00001386  006 OF 012 
 
 
pacifism found in our Constitution." The Cabinet Committee also 
passed an additional resolution specifying the need to ensure 
transparency in information on space development and to make efforts 
to improve the law governing space activities within two years of 
the legislation's enforcement. 
 
Asked about the possibility that the legislation will pave the way 
for deploying early warning satellites, which will play a central 
role in a missile defense system, the LDP's Kawamura said, "Such 
will be possible in relation to the law." Although the DPJ's PT 
Secretary General Masamitsu Naito said, "The legislation is not 
designed to allow the government to sign a blank check," the party 
has yet to discuss specific ways to apply brakes to using space for 
military purposes. 
 
7) SDF dispatch permanent law: Ruling bloc's project team to hold 
inaugural meeting on May 23 
 
NIKKEI (Page 2) (Abridged slightly) 
May 21, 2008 
 
LDP Foreign Affairs Commission Chairman Taku Yamasaki and his New 
Komeito counterpart Natsuo Yamaguchi held a meeting within the Diet 
building yesterday. As a result, the two reached an agreement to 
hold the inaugural meeting on May 23 of the ruling bloc's project 
team on a permanent law governing the overseas dispatch of the 
Self-Defense Forces. Although the team will forgo a plan to submit a 
bill to the current Diet session, it will conduct discussion with 
the aim of submitting legislation to the next extraordinary Diet 
session in the fall. 
 
Yamasaki is scheduled to head the team. Yamasaki plans to make the 
team come up with the law's outline before the current Diet session 
closes on June 15 to be prepared for the extra Diet session in the 
fall. With many New Komeito members remaining cautious about 
permanent legislation, a number of twists and turns are expected. 
 
The two parties initially planned to launch the project team in 
February. But the collision between the Maritime Self-Defense 
Force's Aegis ship and a fishing boat occurred, prompting the New 
Komeito to raise an objection, saying, "The environment is not right 
for it." Thus the project team plan has been postponed, and the move 
to explore ways to submit a bill to the Diet also ceased. 
 
Nevertheless, the special legislation governing the MSDF's refueling 
operation in the Indian Ocean is scheduled to expire on January 15, 
¶2009. In order to extend the refueling mission, revision to the law 
must be approved in the next extraordinary Diet session in the fall. 
The ruling and opposition blocs are likely to clash head on over the 
legislation. There is a view in the ruling bloc that a permanent law 
would be easier to obtain the DPJ's understanding. 
 
8) Government to disburse 2.5 billion dollars in financial aid to 
Japanese firms planning to invest in Africa 
 
ASAHI (Page 6) (Full) 
May 21, 2008 
 
The government yesterday unveiled its comprehensive 
investment-promotion package aimed at doubling Japanese firms' 
direct investment in Africa. The package includes measures to 
disburse 2.5 billion dollars (approximately 260 billion yen) in 
 
TOKYO 00001386  007 OF 012 
 
 
financial aid over the coming five years starting next fiscal year 
and to improve the environment for investment by making use of trade 
insurance and a human resource-cultivation fund. Prime Minister 
Fukuda will announce the package at the 4th Tokyo International 
Conference on African Development (TICAD) to start on May 28. 
Economy, Trade and Industry Minister Amari and other officials also 
plan to reveal the aid package during the conference. 
 
The Japan Bank for International Cooperation (JBIC) will take charge 
of the aid plan worth 2.5 billion yen. The government plans to 
establish next spring an "Africa investment facility," a system to 
invest in and offer loans to Japanese companies planning to invest 
in Africa. JBIC will assume some of the risk involved in investment 
as measures to encourage private firms to invest in Africa. Eligible 
for the aid will be plans to develop natural resources, such as 
crude oil and rare metals, and to construct plants related to such 
resources, as well as electricity business. Money equivalent to 10 
to 20 PERCENT  of the total cost will be offered per plan. 
Additionally, debt guarantee will be provided for an amount about 10 
times more than the total amount of investment. 
 
Nippon Export and Investment Insurance (NEXI) has reached an 
agreement with the Islamic Corporation for insurance of Investments 
and Export Credits (ICIEC) - joined by 36 countries in Africa and 
the Middle East and has taken out insurance on goods exported by 
investing companies. Since no insurance is carried on goods traded 
among African countries in many cases, trade with Africa is risky. 
Given this, NEXI is aiming to reduce risk. 
 
The Patent Agency has decided to invest 110 million yen in the World 
Intellectual Property Organization this fall to create a fund to 
foster human resources responsible for protecting intellectual 
property rights in Africa. The Japan Oil, Gas and Metals National 
Corporation will start a full-scale exploitation of underground 
resources in southern Africa, such as Botswana, with an eye on 
Japanese firms' participation in resource-development projects. 
 
9) Japan decides to double ODA for Africa, but tough job remains to 
secure fiscal resources 
 
SANKEI (Page 2) (Full) 
May 21, 2008 
 
The government yesterday held a meeting of the Overseas Economic 
Cooperation Council (chaired by Prime Minister Yasuo Fukuda) in the 
Diet and adopted a policy of doubling the official development 
assistance (ODA) budget for Africa over the next five years until 
¶2012. Japan intends to focus its aid on constructing infrastructure, 
including a network of roads. Japan also aims to double direct 
investment by the private sector in Africa. The prime minister will 
announce this policy at the upcoming fourth Tokyo International 
Conference on African Development (TICAD) in Yokohama City starting 
on May 28. With tight state finances, the government has been forced 
to slice the ODA budget as a whole, but ODA projects for Africa have 
now been decided to be treated as exceptions. 
 
In the meeting yesterday, Fukuda told relevant cabinet members: "I 
will announce a strong initiative that will help develop Africa. I 
want you and each government ministry and agency to address this so 
that it will be realized." 
 
In order to help Africa, Japan intends to gradually increase its 
 
TOKYO 00001386  008 OF 012 
 
 
average ODA budget of some 100 billion yen for Africa for the past 
five years up to 200 billion yen in 2012. The increased portion of 
the ODA budget for Africa will come to some 300 billion yen during a 
five-year timeframe. Japan also aims to double direct investment by 
the private sector in Arica from the currently approximately 170 
billion yen to some 340 billion yen by making the better use of 
trade insurance. Under the increased ODA budget, Japan plans to 
expand cooperation on maternal and child health and tackle the issue 
of improving agricultural productivity. 
 
Standing in the way of this policy is a set of policy guidelines for 
economic and fiscal management and structural reform issued in 2004. 
The guidelines instruct that the ODA budget as a whole be reduced 
2-4 PERCENT  every year in order to move the primary balance into 
the black in fiscal 2011.  In this connection, Chief Cabinet 
Secretary Nobutaka Machimura said at a press conference yesterday: 
"We need to discuss the matter separately as to how we will handle 
it in the process of making the next fiscal year's budget and in a 
new set of policy guidelines for economic and fiscal management and 
structural reform to be prepared by the end of June." 
 
The ODA budget for Africa will be excepted from other budgets 
subject to reduction, but coordination between the Ministry of 
Foreign Affairs (MOFA) and the Ministry of Finance (MOF) has been 
hard going. On May 19, the Council on the Fiscal System, Etc., an 
advisory panel to the finance minister, gave a warning against the 
move to increase the ODA budget and incurred MOFA's objection. A tug 
of war between the two ministries is likely to continue before a new 
set of policy guidelines for economic and fiscal management and 
structural reform is prepared. 
 
10) Foreign Ministry, Finance Ministry to clash over ODA to Africa 
 
YOMIURI (Page 2) (Full) 
May 21, 2008 
 
Prime Minister Fukuda yesterday announced plans to double Japan's 
official development assistance (ODA) disbursements to Africa and 
Japanese firms' investment in the continent over the next five years 
through 2012. But the government's annual economic and fiscal policy 
guidelines for 2006 came up with the policy of slashing the ODA 
budget. How to coordinate this policy and the new plan will be the 
focus of attention in future negotiations. 
 
The 2006 guidelines specified an annual 2-4 PERCENT  cut in the 
nation's ODA budget until FY2011. The Finance Ministry and the 
Foreign Ministry will inevitably crash head-on in negotiations on 
the guidelines for FY2008, which the government will finalize by the 
end of June. 
 
11) Japan to offer 1 billion yen in technical cooperation for Africa 
to secure safe water supply 
 
SANKEI (Page 2) (Full) 
May 21, 2008 
 
The government yesterday decided to establish a "water defense unit" 
that will work to secure drinking water by digging wells and to send 
the unit to African countries with the aim of raising the living 
standards of the poor people in Africa. This technical cooperation 
will be on the budgetary scale of 500 million yen to one billion yen 
per year, and Japan will announce it at the upcoming fourth Tokyo 
 
TOKYO 00001386  009 OF 012 
 
 
International Conference on African Development (TICAD). 
 
Regarding the issue of improving the water-related environment in 
developing countries, the United Nations declared in its Millennium 
Development Goals (MDGs) that specify the goals to attain by the 
year 2015 that the percentage of people who are unable to use safety 
water should be halved. Among a set of assistance measures for 
Africa Japan decided at a meeting yesterday of the government's 
Overseas Economic Cooperation Council, extending assistance for 
improvement in the water-related environment is one of the key 
elements in the assistance measures. 
 
The water defense unit will consist of some 20 experts from the 
waterworks department and former waterworks department officials. 
Based on Japan's know-how, they will instruct local people how to 
dig wells and how to maintain waterworks by preventing water leakage 
with the aim of providing safety water to local people. The 
government plans to the water defense unit to four to five countries 
every year. 
 
12) Government decides to dispatch several SDF personnel to AU 
headquarters to assist standby force 
 
MAINICHI (Page 1) (Full) 
May 21, 2008 
 
The government yesterday firmed up its policy intention of 
dispatching Self-Defense Forces (SDF) personnel to African Union 
(AU) Headquarters in Addis Ababa, Ethiopia, to assist the African 
Standby Force (ASF) that the AU has created. The government's 
thinking is to showcase this as part of the major theme, 
consolidation of peace, of TICAD4, the African development 
conference that will open in Yokohama on May 28. 
 
A major cause of the delay in Africa's development is considered to 
be the disputes that have broken out one after another in each part 
of the continent. The purpose of ASF is to allow Africa to deal with 
such problems on its own as the first stage of dispute resolution 
prior to United Nations peace-keeping operations (PKO). The plan is 
to establish such by 2010. 
 
Being considered as the destinations of the SDF dispatch are AU 
Headquarters, where several personnel would be sent, and the PKO 
centers (in five locations including Kenya), where ASF personnel 
will be trained. The assistance would involve providing know-how on 
PKO dispatches, as well as such non-military assistance as guidance 
in removal of landmines. 
 
13) Government to send cabinet-level member to Burma aid conference 
 
NIKKEI (Page 2) (Abridged slightly) 
May 21, 2008 
 
A senior Foreign Ministry official indicated yesterday that the 
government would send a cabinet-level member to the post-cyclone aid 
conference, to be held on May 25 in Burma's Yangon by the United 
Nations and the Association of Southeast Asian Nations (ASEAN). 
 
Meanwhile, Foreign Minister Masahiko Koumura held talks with Burmese 
Ambassador to Japan Hla Myint at his ministry. Koumura again urged 
Burma to speedily accept a Japanese emergency medial team by telling 
the ambassador, "Although we have already provided supplies to your 
 
TOKYO 00001386  010 OF 012 
 
 
country, we are also ready to extend human aid." In response, the 
ambassador simply said that he would convey Japan's offer to his 
home government. 
 
14) Burma accepts Japan's human assistance 
 
MAINICHI (Page 3) (Full) 
May 21, 2008 
 
Yoso Furumoto 
 
In order to restore Yangon Port -- where ships cannot now navigate 
because a large number of ships that sank in the recent cyclone 
Nargis -- the government has decided to send three experts to survey 
the situation. Japan is the first country Burma (Myanmar) has 
allowed to provide human assistance in the aftermath of the 
cyclone. 
 
Japan decided to dispatch the experts in response to the Burmese 
government's request. Foreign Minister Masahiko Koumura yesterday 
revealed the decision to dispatch experts to Burma to the Burmese 
ambassador to Japan. 
 
The Japanese experts to be sent are officials from an independent 
administrative agency under the control of the Ministry of Land, 
Infrastructure and Transport. They are expected to arrive in Burma 
on May 25. Koumura also conveyed to the Burmese ambassador Japan's 
willingness to send a medical team, if requested. 
 
15) Prime Minister Fukuda likely to visit Germany, Italy, Britain in 
early June 
 
ASAHI (Page 4) (Full) 
May 21, 2008 
 
The government has begun coordination on a schedule for a three-day 
trip for Prime Minister Yasuo Fukuda to Germany, Britain and Italy 
starting on June 1. Fukuda will likely attend a food security 
summit, which will start on June 3 in Rome. He intends to play up 
his positive stance of tackling with the food issue before Japan 
hosts the Group of Eight summit in July in Hokkaido. 
 
According to government officials, Fukuda plans to meet on June 1 in 
Germany with Chancellor Angela Merkel and on June 2 in Britain with 
Prime Minister Gordon Brown. In Italy, after delivering a speech in 
the food security summit the Food and Agriculture Organization of 
the United Nations will hold starting on June 3, Fukuda plans to 
meet in Rome with French President Nicolas Sarkozy and with Italian 
Prime Minister Silvio Berlusconi. In an attempt to meet with the 
leaders of major European countries prior to the G8 summit, Fukuda 
had looked into the possibility of making a trip to Europe during 
the Golden Week holidays from late April to early May, but he had to 
give it up due to a tight Diet schedule. He only visited Russia in 
late April. 
 
16) Machimura-Rice telephone talks on North Korea 
 
YOMIURI (Page 4) (Full) 
May 21, 2008 
 
U.S. Secretary of State Condoleezza Rice last night telephoned Chief 
Cabinet Secretary Nobutaka Machimura. In their 30-minute 
 
TOKYO 00001386  011 OF 012 
 
 
conversation, Machimura and Rice appear to have exchanged views on 
the North Korean nuclear programs such as the operational records of 
nuclear power reactors North Korea has presented to the United 
States. 
 
17) Three-hour meeting between Prime Minister Fukuda, New Komeito 
head Ota giving rise to much speculation 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 21, 2008 
 
A three-hour meeting yesterday between Prime Minister Yasuo Fukuda 
and New Komeito Akihiro Ota is prompting all sort of conjectures. 
 
After the meeting, Ota told the press: "We had a talk so that we 
could come up with policy measures for the elderly people." 
 
Since a bill amending the Road Construction Revenues Special 
Exemption Law was enacted by a two-thirds overriding vote in the 
House of Representatives, the government and ruling parties have 
overcome a critical point in the current Diet session. Since the two 
party leaders chose this time to hold a tte-`-tte, speculation 
broke out that Fukuda and Ota discussed a cabinet shuffle or Lower 
House dissolution. 
 
A senior Liberal Democratic Party (LDP) member pointed out: "I think 
they did not talk about only policy for three hours. They might have 
discussed such thorny issues as the timing for dissolving the Lower 
House." 
 
One of the senior New Komeito members briefed by Ota on May 19, 
wondered aloud: "Considering the contents of his meeting as Mr. Ota 
explained, it would have been difficult for them to spend three 
hours discussing such in their meeting." 
 
18) Ozawa: Lower House dissolution will definitely occur during 
September-December period 
 
YOMIURI (Page 4) (Full) 
May 21, 2008 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa dined last 
night at a Chinese restaurant in Tokyo with about 30 DPJ House of 
Representatives members now serving in their 3rd and 4th terms. 
Referring to the possibility of dissolution of the Lower House, 
Ozawa said: "I'm sure that the Lower House will be dissolved 
sometime in the period between September and December." 
 
Ozawa then added: "I want you to do your best during the hot summer 
season so that you will have a fruitful fall." 
 
Ozawa denies rumor of his changing electoral district 
 
When asked by reporters about a rumor that he would change his 
electoral district from the present Iwate No. 4 constituency to the 
Tokyo 12, DPJ Ichiro Ozawa rejected the possibility, saying: "I 
don't have any such intention now." 
 
19) LDP start looking into consumption tax increase, speeding up 
timetable with eye on pension 
 
ASAHI (Page 1) (Full) 
 
TOKYO 00001386  012 OF 012 
 
 
May 21, 2008 
 
The Liberal Democratic Party (LDP) yesterday started looking into 
raising the consumption tax rate with the aim of securing funding 
resources for the planned increase in the share of tax revenues in 
the basic pension and covering the growing medical expenses for 
elderly people in a stable manner. Senior members of the party's Tax 
System Research Commission, chaired by former Welfare Minister Yuji 
Tsushima, conferred on the matter and decided to speed up a 
timetable for discussion of drastic reform of the tax code, 
including the consumption tax. 
 
Though a consumption tax hike issue has been cropped up for the past 
several years, an actual hike has been forgone. However, with the 
time to raise the share of tax revenues in the basic pension close 
at hand, a view calling for hiking the rate is gaining ground as one 
senior LDP official noted, "There is no other way than to resort to 
the consumption tax." Concerning the criticism of the new medical 
service system of elderly peopled aged 75 and older, Secretary 
General Bunmei Ibuki pointed out, "If pension contributors become 
unable to cope with a rise in the pension premium, then the matter 
comes to discussion of the tax issue." The judgment is that since 
efforts to constrain social security expenses have their own limits, 
it is necessary to resort to consumption tax revenues. 
 
Senior members' meeting joined by Chairman Tsushima and subcommittee 
chairman Kaoru Yosano took place about five months earlier than last 
year. The LDP wants to take time on discussions of its plan so that 
it can obtain the public's understanding, thereby involving 
opposition parties. 
 
The government's Tax Research Commission, which usually starts 
discussion on a tax code revising in the fall, will speed up the 
timetable and hold a meeting shortly at the order of Prime Minister 
Fukuda. 
 
20) Passage of public servant bill seems difficult 
 
ASAHI (Page 1) (Full) 
May 21, 2008 
 
Prime Minister Fukuda has ordered the ruling parties secure Diet 
approval for a basic bill reforming the national governments 
employee system. However, such a possibility now appears slim. That 
is because while the Democratic Party of Japan (DPJ) has decided to 
oppose the bill unless their request for a revision of the bill 
regarding a ban on the golden parachute practice and expansion of 
the basic labor right is met, there is a slim possibility of the 
ruling parties complying with such a request. DPJ President Ozawa 
during a press conference yesterday explained, "The bill has a 
problem of institutionalizing the golden parachute practice." 
Secretary General Yukio Hatoyama met with Diet Affairs Committee 
Chairman Kenji Yamaoka. Based on the wishes of the Japanese Trade 
Union Confederation (Rengo), both agreed to oppose the government's 
plan unless expansion of the basic labor right is approved. 
 
SCHIEFFER