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UNCLAS SECTION 01 OF 13 TOKYO 001402 
 
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 05/22/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Defense Ministry presents reorganization report focusing on 
policy, operations, and equipment, and mixing uniformed and civilian 
personnel  (Nikkei) 
5) Defense Ministry's reorganization proposal meets with cool 
response  (Yomiuri) 
6) With passage of Basic Law on Outer Space, introduction of 
early-warning satellites is now possible  (Nikkei) 
7) Procurement-scandal tainted Yamada Corp. files lawsuit against 
Defense Ministry seeking compensation for CX engine and other 
contract losses  (Tokyo Shimbun) 
8) Letter to Tokyo Shimbun editor: Government rapped for giving 
special treatment to U.S. troops in Japan  (Tokyo Shimbun) 
 
9) LDP lawmakers form new study group on North Korea  (Yomiuri) 
 
10) Democratic Party of Japan (DPJ) readies own bill on banning 
simple possession of child pornography  (Asahi) 
 
Food aid: 
11) Government plans to provide Africa with 20,000 tons of rice as 
food aid  (Nikkei) 
12) Government to establish new international organization for 
increasing rice production  (Asahi) 
 
Global warming: 
13) Panel presents interim report on global-warming countermeasures 
(Asahi) 
14) Prime Minister Fukuda says system of emissions trading will have 
to be in place five to ten years from now  (Nikkei) 
15) LDP's proposed global-warming countermeasures calls for the 
introduction of an environment (green) tax  (Yomiuri) 
 
Political agenda: 
16) Extraordinary Diet session may be convened as early as late 
August  (Yomiuri) 
17) Council proposes creation of a consumer affairs agency  (Asahi) 
 
18) Government and ruling parties working to revise controversial 
system of medical care for elderly over 75 that tops their pensions. 
 (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Toyota Motor to pay full overtime wages linked to "kaizen" or extra 
group activities, acknowledging it as related to work 
 
Mainichi: 
Nonlife insurers overcharge 29.8 billion yen in premiums: Six 
leading companies to return overcharged amounts 
 
Yomiuri: 
Government panel seeks to give powerful authority to envisaged 
 
TOKYO 00001402  002 OF 013 
 
 
consumer agency; Point of contacts to be integrated 
 
Nikkei: 
Government eyes fund to commercialize untapped state-of-the-art 
technologies 
 
Sankei: 
Defense Ministry presents reform plan, including mixed organization 
consisting of both uniformed group and civilians; Unit management to 
be integrated 
 
Tokyo Shimbun: 
Consumer agency: State to demand loss compensation from unscrupulous 
companies; Accident analysts to be assigned 
 
Akahata: 
China quake: Lawmaker Kasai calls for maximum aid; "Additional aid 
will be considered, if a request is made," says foreign minister 
 
2) EDITORIALS 
 
Asahi: 
(1) Enactment of Basic Law on Use of Space: Clear-cut principles for 
military use urged 
(2) Narita Airport marks 30th anniversary since opening: Integrating 
Narita and  Haneda Airport operating companies is one way of 
boosting international competitiveness 
 
Mainichi: 
(1) Can scandals be rooted out with proposed Defense Ministry reform 
proposal? 
(2) New Taiwan President Ma Ying-jeou: Dialogue between China and 
Taiwan urged 
 
Yomiuri: 
(1) Narita Airport marks 30th anniversary since opening: Shift to 
policy for  co-existence with Haneda Airport 
(2) New Taiwan President Ma Ying-jeou: China should also do its 
utmost to stabilize Taiwan Strait 
 
Nikkei: 
(1) U.S. Democratic Party conducting experiment choosing Obama as 
presidential candidate 
(2) Japanese banks have still long way to go to become strong 
 
Sankei: 
(1) Defense Ministry reform: Give teeth to mixed organization plan 
(2) Lay judge system: Further enhance public attitude regarding 
taking part in system 
 
Tokyo Shimbun: 
(1) Obama declares victory: Will face test of uniting party members 
(2) Nominal administrative position: McDonald's decision to pay 
overwork wages should be made milestone to reform harsh working 
conditions 
 
Akahata: 
(1) Consumption tax: LDP-New Komeito-led politics' number is up 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 21 
 
TOKYO 00001402  003 OF 013 
 
 
 
NIKKEI (Page 2) (Full) 
May 22, 2008 
 
09:55 
Met Ambassador to Britain Ebihara. 
 
10:06 
Met Vice Foreign Minister Yabunaka. Followed by Special Advisor 
Ito. 
 
11:18 
Met Japan Science Foundation Chairman Arima, chairman of the 
Association to Consider the Earth, and others. Followed by Internal 
Affairs Minister Masuda and Consumer Affairs Minister Kishida. 
 
12:14 
Met Mie Asaoka, president of the Climate Network, and others, with 
former Foreign Minister Kawaguchi president. 
 
14:13 
Signed a condolence book at the Chinese Embassy in Moto-Azabu. Met 
Ambassador Cui Tiankai. 
 
15:20 
Met at the Kantei with U.S. PhRMA Chairman Richard Clark, with 
Foreign Ministry Economic Affairs Bureau Director General Otabe 
present. Later met Deputy Chief Cabinet Secretary Futahashi and 
Assistant Deputy Chief Cabinet Secretary Saka. 
 
16:25 
Met Environment Minister Kamoshita and Vice Minister Tamura. 
 
17:00 
Attended a meeting of the Council for Promoting Consumer Policy. 
Minister Kishida stayed behind. 
 
18:05 
Met LDP Tax System Research Commission Tsushima. 
 
19:55 
Returned to his official residence. 
 
4) Defense Ministry submits reform plan for policy planning, SDF 
operations, defense buildup 
 
NIKKEI (Page 2) (Abridged) 
May 22, 2008 
 
The Defense Ministry reported its reorganization plan to a Defense 
Ministry reform panel in its meeting held yesterday at the prime 
minister's office. The plan features reorganizing the current 
separate setups of the Defense Ministry's internal bureaus and the 
Ground, Maritime, and Air Self-Defense Forces' respective staff 
offices into three functional bodies, each of which is to consist of 
both the Defense Ministry's internal bureau officials and the SDF's 
uniformed staff officers. The Defense Council, which advises the 
defense minister, will also be expanded. The plan goes no further 
than to come up with multiple ideas over whether to retain the SDF 
staff offices and what to do about its divisions for SDF operations, 
because the Defense Ministry was divided in opinion. 
 
 
TOKYO 00001402  004 OF 013 
 
 
The Defense Ministry has set up a team under Defense Minister 
Shigeru Ishiba to overhaul itself against the backdrop of scandals 
and incidents, such as its officials' corruption over acquisition 
and an MSDF Aegis destroyer's collision with a fishing boat. The 
reform panel will work out a report in mid-June. However, its 
coordination is expected to face rough going. 
 
In the reform panel meeting, Ishiba suggested the need for the 
Defense Ministry to rectify its bureaucratic sectionalism, noting 
that it is difficult for the Defense Ministry to optimize its budget 
and personnel allocation. The plan lists five problems, such as the 
ambiguity of authority and responsibility in the overlapping 
functions of the Defense Ministry's internal bureaus and the GSDF, 
MSDF, and ASDF staff offices. 
 
In addition, the Defense Ministry plans a new advisory system for 
its minister. In this regard, the Defense Ministry will abolish its 
current defense counselor system, under which the Defense Ministry's 
senior officials, including the directors general of its internal 
bureaus, assist the defense minister as defense counselors. Instead, 
the Defense Ministry plans to have political appointees as special 
assistants to its minister. The Defense Council, which has rarely 
met so far, will also be defined as a law-based body to advise and 
assist the defense minister on defense policies in general. 
 
The Defense Ministry will reorganize its current central 
organizational setups into three functional divisions for policy 
planning and public relations, SDF operations, and defense buildup 
programs. Each division is to be made up of civilian officials and 
SDF staff officers. When it comes to the two divisions for SDF 
operations and defense buildup programs, the reported plan lists 
both the idea of combining them into an internal bureau of the 
Defense Ministry and the idea of creating a special body like the 
SDF Joint Staff Office. 
 
Concerning the current setups of the three SDF staff offices, the 
Defense Ministry takes the position that they need to retain their 
respective administrative functionalities, such as providing SDF 
personnel with education and training programs. Even so, the Defense 
Ministry's reform plan lists three ideas: 1) absorbing the three SDF 
staff offices into an internal bureau of the Defense Ministry to 
abolish their current setups; 2) establishing headquarters in the 
GSDF, MSDF, and ASDF to retain some of their functionalities; and 3) 
maintain the current setups of the three SDF staff offices as they 
are. 
 
5) Defense Ministry reform plan draws cautious views; Ironing out 
views likely to be difficult 
 
YOMIURI (Page 2) (Abridged) 
May 22, 2008 
 
The Ministry of Defense (MOD) presented yesterday a set of MOD 
reform proposals to the government's Council on Reform of the 
Defense Ministry, chaired by Tokyo Electric Power Co. advisor Nobuya 
Minami, that met yesterday at the Prime Minister's Official 
Residence (Kantei). The proposal is mainly designed to integrate and 
realign the internal bureaus (civilian staff) and the staff offices 
of the three SDF branches (uniformed group) into bodies responsible 
for three separate functions. The plan elicited cautious views from 
most attendants. 
 
 
TOKYO 00001402  005 OF 013 
 
 
The council plans to produce a report in June. 
 
The MOD's plan is designed to integrate the main duties of the 
internal bureaus and the staff offices into three functions: defense 
policymaking and planning, including public relations activities; 
operation of SDF units; and unified equipment procurement. This also 
designed to set up mixed units of personnel from both the civilian 
and uniformed groups. The plan lists two options: one is to 
integrate the three functions into the internal bureaus, and the 
other is to set up two new organizations, which in addition to the 
bureau would deal either with the operation of SDF units or the 
procurement of equipment. 
 
On personnel affairs and education regarding the staff offices of 
the three SDF branches that are outside the three functions, three 
plans were presented: (1) abolishing the staff offices to shift such 
functions to the internal bureau; (2) abolishing the staff offices 
and split the functions either to the internal bureau or the Joint 
Staff Office; and (3) laving them at the staff offices. The first 
two plans are designed to remove the chiefs of staff of the three 
SDF forces from the units' chain of command to exclusively serve as 
assistants to the defense minister. 
 
The reform plan has drawn critical views from attendants, with one 
saying: "The connection between a series of scandals and the planned 
organizational reform is hard to understand." 
 
The plan is drawing fire also from within the ministry. A uniformed 
officer said: "The elimination of the staff offices would lead to a 
decline in the SDF's voice. Unless the chiefs of staff of the three 
forces exit at the top of the units, their morale would decline." 
 
6) Basic space law enacted; Introduction of early-warning satellites 
possible 
 
NIKKEI (Page 2) (Abridged slightly) 
May 22, 2008 
 
The House of Councillors passed in its plenary session yesterday 
legislation allowing space to be used for defense purposes. The 
legislation will also allow the possession of high-performance 
reconnaissance satellites by the Self-Defense Forces, as well as the 
development and introduction of early-warning satellites for a 
missile defense system. The Defense Ministry intends to set up a 
space and maritime policy office as early as July to study a 
concrete policy for using space. 
 
Equipped with an infrared sensor, an early-warning satellite can 
detect the heat of a fired ballistic missile. A person concerned 
expressed hope, saying, "We have relied on the United States in 
obtaining intelligence. We will now be able to obtain information 
speedily and independently." The use of space has a wide range of 
applications, such as the introduction of communication satellites 
exclusively for use by the SDF and the development of special 
materials. The LDP Space Development Committee, which has been 
promoting basic space legislation, produced an interim report 
yesterday urging the government to incorporate space development in 
the next Midterm Defense Buildup Program. 
 
The Diet adopted a resolution in 1969 allowing the use of space 
limited to peaceful purposes only, and the government has followed 
it. But because industrialized countries began using military 
 
TOKYO 00001402  006 OF 013 
 
 
satellites earnestly, the government slightly revised the resolution 
in 1985 to "allow the SDF to use satellites that are common." 
 
In the wake of a ballistic missile fired in 1998 by North Korea, the 
government has shifted the policy to allow the possession of 
multiple-purpose information-gathering satellites to deal with 
disasters and other situations. The country now has four such 
satellites (including one that is unusable). Nevertheless, their 
solution is about one meter, on the level of commercial satellites, 
in comparison to U.S. satellites' 10 centimeters. 
 
At the same time, there are cautious views in Japan and other 
countries about using space for military purposes. The development 
and possession of high-accuracy reconnaissance would weigh heavily 
on the nation's finances, and reactions by neighboring countries 
cannot be ignored, either. China has been alarmed at Japan's moves. 
Its official Xinhua News Agency has made a quick report on the 
enactment of Japan's basic space law, saying, "It is intended to 
launch military spy satellites." 
 
A senior Defense Agency official also expressed a cautious view: 
"Which is better -- to share the cost with the United States or to 
bear it independently? The government's space development budget has 
hit a plateau. I would like to watch the government's interpretation 
of the text at the Diet, as well as public opinion." 
 
Space industry expresses hope 
 
Fuji Heavy Industries President Ikuo Mori, who became chairman of 
the Society of Japanese Aerospace Companies (SJAC) yesterday, spoke 
highly of the enacted the basic space law in a press conference 
yesterday: "The area of industrialization will be expanded." Former 
SJAC chairman and IHI advisor Mototsugu Ito also commented: 
"Bureaucratic sectionalism will be eliminated and administration 
will be unified, making it possible to tackle matters 
comprehensively, from basic research to industrialization." 
 
7) Yamada Corp. files lawsuit against MOD seeking to pay all prices 
for sale of C-X engine, etc. 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
May 22, 2008 
 
It has been learned that the defense trading company Yamada Corp. 
has filed a civil lawsuit against the Ministry of Defense (MOD) 
calling for payments for the sale of such products as the C-X engine 
to be installed in the Air Self-Defense Force's (ASDF) Cargo 
aircraft-X (C-X) engine and other products. It is unusual for a 
company trading with the MOD to file a complaint against it. The 
first hearing is scheduled to take place in the Tokyo District Court 
on May 26. 
 
According to the MOD, the ministry was supposed to pay 1.42 billion 
yen to Yamada Corp. for the purchase of two C-X engines and a 
missile alarm device, which were all distributed in fiscal 2007 by 
Yamada Corp. 
 
Afterwards, however, it was discovered through the bribery case 
involving Yamada Corp's former executive Motonobu Miyazaki and 
former Administrative Vice Defense Minister Takemasa Moriya that the 
company had broadly padded the prices of its products. The MOD paid 
to the company the amount in two installments - in this past 
 
TOKYO 00001402  007 OF 013 
 
 
February and April -- after deducting the padded portion of 540 
million yen from the 18 invoices related to the purchase of parts 
for the F-2 fighter. 
 
Yamada Corp., however, insisted that "It's strange that the ministry 
did not pay the prices of products after they were distributed to 
it. We purchased the C-X engine upon borrowing money from a bank. We 
had to pay interest on the money, but (the MOD) unilaterally reduced 
the amount it had to pay to us. We want to discuss the problem of 
padded invoices separately, but the MOD is unwilling to do so." 
 
8) Letter to editor from bookstore employee: Government responsible 
for giving preferential treatment to U.S. service members 
 
TOKYO SHIMBUN (Page 5) (Full) 
May 22, 2008 
 
Kaori Suzuki, 51 year-old, resident in Nerima Ward, Tokyo 
 
The number of incidents caused by U.S. military personnel totaled 
9,193 over the past five years from 2002 to 2006, averaging five 
cases a day. If such crimes as sexual ones that victims tend to hide 
were added, the total number would be certain to increase. 
 
It is surprising that more than 80 PERCENT  of the crimes caused by 
U.S. service members occurred while they were off duty. It means 
that there were more than 7,000 incidents in the five years that 
would not have occurred if U.S. military personnel were not allowed 
to go outside bases. 
 
Japan spends annually several tens of billions yen of tax money for 
U.S. bases. Since there are entertainment facilities on U.S. bases 
made under Japan's host-nation support budget, I want U.S. military 
personnel to stay in their bases even when they are off duty. If 
they leave the bases, let them as U.S. citizens residing in Japan 
follow Japan's law. 
 
Meanwhile, I think the Japanese government, which gives preferential 
treatment to U.S. military personnel in Japan, is obliged to take 
responsibility in place of them. It is unforgivable that the 
government does not pay compensations to victims of crimes that are 
caused by U.S. service members while they are off duty. When 
thinking how much the Japanese government gives consideration to 
U.S. forces in Japan, I cannot accept such a government's stance. 
 
9) LDP lawmakers to study North Korea pressure 
 
YOMIURI (Page 4) (Full) 
May 22, 2008 
 
Former Deputy Chief Cabinet Secretary Hakubun Shimomura and other 
middle-ranking and junior lawmakers belonging to the ruling Liberal 
Democratic Party will launch a study group today to promote cautious 
and pressure-oriented diplomacy toward North Korea. The study group 
will start with a total of six LDP legislators, including Shimomura, 
Kenichi Mizuno from the House of Representatives, and Ichita 
Yamamoto from the House of Councillors. They insist that Japan 
should take economic sanctions and other resolute measures against 
North Korea in order to resolve issues over its nuclear development 
and abduction. The group will invite Kyoko Nakayama, special advisor 
to the prime minister on the abduction issue, to its first meeting 
today to hear about the abduction issue. 
 
TOKYO 00001402  008 OF 013 
 
 
 
The study group is believed to be aimed at constraining former LDP 
Vice President Taku Yamasaki and other LDP lawmakers against their 
move to set up a superpartisan parliamentary league today for the 
normalization of diplomatic relations between Japan and North Korea 
at an early date. 
 
10) DPJ decides on outline of own bill amending law banning child 
pornography, applies "simple possession" to limited cases 
 
ASAHI (Page 4) (Full) 
May 22, 2008 
 
Noriko Akiyama 
 
The major opposition Democratic Party of Japan (DPJ) decided on the 
outline of its own bill amending the Law for Punishing Acts Related 
to Child Prostitution and Child Pornography. The features of the 
DPJ's bill include a review of the definition of child pornography. 
The bill will provide for punishment of "simple possession," namely 
individuals who collect child pornography, but the application of 
punishment on this sort of possession will be limited to cases where 
"individuals recklessly collect or obtain child pornography after 
purchasing it." The DPJ aims to submit the bill to the current 
session of the Diet. 
 
The Law for Punishing Acts Related to Child Prostitution and Child 
Pornography was initiated by lawmakers and was enacted into law in 
¶1999. Whether to punish simple possession was discussed at the time 
of the establishment of the law, but it was decided not to punish it 
because of concerns that doing so may lead to violations of privacy. 
But this past March, United States Ambassador to Japan J. Thomas 
Schieffer, who has called for an international effort to prevent 
child abuse, asked for Justice Minister Hatoyama's cooperation to 
punish simple possession. The ruling parties are also discussing the 
question of amending the law. 
 
The ruling bloc's bill is likely to ban simple possession across the 
board and give a sentence of up to one-year imprisonment or a fine 
of up to one million yen. In contrast, the DPJ has limited cases 
subject to punishment to certain acts out of concern that there may 
arise cases where investigations will be carried out in an arbitrary 
manner or a confession will be forced. For both sides' bills, it is 
difficult, however, to be enacted into law during the current Diet 
session. 
 
The DPJ's bill reconsiders the current definition of child 
pornography. The bill revises the current provision on "acts of 
touching a child's sexual organs by others or child's behavior 
related to touching on others' sexual organs" to "something that 
arouses sexual organs, etc." and deletes the provision on "poses a 
naked child or semi-naked child " on the grounds of the ambiguity of 
the provision. 
 
The DPJ's bill also amends the title of the current law from "Acts 
Related to Child Prostitution and Child Pornography to "Acts Related 
to Child Abuse and Sexual Exploitation, Etc." 
 
11) Government plans to provide 20,000 tons of rice to Africa as 
first tranche of emergency food aid 
 
NIKKEI (Page 5) (Excerpts) 
 
TOKYO 00001402  009 OF 013 
 
 
May 22, 2008 
 
The government has set a policy course of setting aside for African 
countries some $50 million and providing them with food aid 
centering on approximately 20,000 tons of rice that Japan has in 
stock. The cabinet will formally make a decision on May 23. This 
will be the first tranche in emergency food aid worth $100 million 
(approximately 10 billion yen) that was announced in April. The 
assistance in principle will be provided through the World Food 
Program (WFP). The aid policy measures will be specified at the 
TICAD Africa development conference that starts on May 28. 
 
The countries subject to the food aid will center on Africa, 
including the Sudan, Kenya, and the Congo Republic, as well as 12 
other countries (sic) in the region including Afghanistan and the 
Palestinian Autonomous Region. Either rice or wheat will be 
provided, depending on the request of the recipient. Rice provided 
to five countries including Kenya will total 20,000 tons. The rice 
used will be minimum access rice, which Japan is obliged to import 
under international trade rules, and rice stored for emergencies. 
 
12) Japan to establish international agency aimed at doubling rice 
production with eye on assistance to Africa 
 
ASAHI (Page 7) (Slightly abridged) 
May 22, 2008 
 
Yusuke Murayama 
 
The government will establish an international aid organization 
aimed at doubling rice production in Africa. This new organization 
will consolidate aid in the agricultural sector provided so far by 
various aid organizations and distribute assistance in an effective 
manner in line with Africa's needs. This organization is expected to 
have the participation of some 30 countries and organizations, 
including the Food and Agriculture Organization of the United 
Nations (FAO). The objective is to constrain social unrest and help 
Africa to become independent economically. 
 
The name of the new organization is CARD (Africa Rice Production 
Promotion Initiative). CARD will be joined by seven agencies, 
including the Japan International Cooperation Agency (JICA) and the 
International Rice Research Institute. CARD will be set up by 
October. Its headquarters will be located in Nairobi, Kenya. Japan 
will call on the World Bank, the United Nations Development 
Programme, and the United States to take part in CARD. 
 
Rice is the principal food in Western Africa, and rice consumption 
is increasing even in East Africa. But with the rice 
self-sufficiency rate staying at 60 PERCENT , soaring food prices 
worldwide have hit the poor people in Africa. Famine and riots have 
occurred. At the upcoming fourth Tokyo International Conference on 
African Development (TICAD) slated for May 28, Prime Minister Fukuda 
will announce a policy of doubling rice production in Africa over 
the next 10 years. CARD will serve as a major engine to promote this 
policy. 
 
CARD will first conduct a feasibility study as to an increase in 
rice production in African countries. It will select a dozen 
countries as priority aid-recipient countries and chart a rice 
production increase strategy. It will make arrangements and 
reorganize various aid measures provided by various aid agencies 
 
TOKYO 00001402  010 OF 013 
 
 
with an eye on (1) improvement in variety of rice; (2) setting of 
small-scale water facilities; (3) introduction of rice mill machine; 
(4) support for small farmers to expand their sales networks; and 
(5) spread of production of New Rice for Africa (NRA). 
 
In Asia, Green Revolution that led to remarkable production increase 
due to improvement of variety of rice occurred in the 1960s. This 
became the basis for industrialization. Africa was slow to address 
improvement in agricultural production. Rice production per hectare 
in Africa is 40 PERCENT  of Asia, but a government official noted: 
"Production increase is highly likely." 
 
13) Subcommittee on global warming in interim report: "Discussion 
will continue" on whether to introduce emissions-trading system 
 
ASAHI (Page 4) (Full) 
May 22, 2008 
 
A subcommittee of the government's Council on Global Warming 
released its interim report yesterday. On whether to introduce an 
emissions-trading system, the report includes both the pros and cons 
of a system and specifies a willingness to continue discussion. The 
council will set forth a policy direction on the propriety of 
introducing the system in early June. Prime Minister Fukuda will 
then make a final decision. 
 
Regarding an emissions-trading system, the report introduces this 
argument favorable for the system: "Introducing the system is a 
global trend. Since it is an effective means to reduce emissions, 
Japan should introduce it at an early date." But the report also 
inserts this view dominant in industries discharging large amounts 
of greenhouse gases: "How to allocate (emission credits) and what 
effect it will have on the nation's industrial competitiveness must 
be thoroughly considered. Western countries are taking a 
trial-and-error approach. Japan also should discuss whether to 
introduce the system in a cautious manner." The report then 
concludes: "While carefully watching moves in Western countries, we 
will continue discussion based on Japan's circumstances." 
 
The report stopped short of presenting a definite policy direction 
on an environment tax, just introducing such views as: "Taxes should 
be imposed on the private sector, emissions from which cannot 
covered by the proposed emissions-trading system," and "The existing 
tax system, not a new tax, should be made use of." 
 
Subcommittee Chairman Akio Morishima, former chairman of the Central 
Council for the Environment, told reporters: "Since the 
emissions-trading system contains various problems, no conclusion 
was reached on introducing it, but the way has been paved for 
discussing it, based on the judgment that the issue is worth 
discussing." 
 
The prime minister intends to announce a set of comprehensive 
proposals to fight global warming, based on the subcommittee's 
recommendations. Attention is focused on whether Fukuda will decide 
to introduce the emissions-trading system prior to the Group of 
Eight Summit in July. 
 
14) Carbon emissions trading system: "The system will become 
necessary in five to 10 years' time," says prime minister 
 
NIKKEI (Page 1) (Excerpts) 
 
TOKYO 00001402  011 OF 013 
 
 
May 22, 2008 
 
The government has started looking into specific measures aimed at 
introducing a global warming greenhouse gas emissions trading 
system. Prime Minister Yasuo Fukuda yesterday told former Foreign 
Minister Yoriko Kawaguchi, who visited the Prime Minister's Office 
(Kantei): "Emissions trading will become necessary in five to 10 
years' time. Charging for gas emissions would make people feel that 
they must cut emissions." He wants to make the system the showcase 
of the Fukuda Vision, which is to be released in June with an eye on 
the post-Kyoto framework staring in 2013. The focus will be when to 
introduce and how to design such a plan. 
 
Fukuda during the exchanges of views on the environmental issue with 
Kawaguchi and others underscored: "With a view to 2050, what should 
be done now is important. Efforts for the next decade are important. 
For international negotiations, five years from now are important." 
He also said, "I will make a surprising proposal. Please look 
forward to it." 
 
Under the Fukuda Vision, the prime minister intends to come up with 
a long-term goal of cutting domestic emissions by 60 PERCENT -80 
PERCENT  by 2050 anticipating that global warming green gas 
emissions will be a main item on the agenda of the G-8 in July. He 
wants to display leadership, including in the Fukuda Vision the 
pending issue of the domestic adoption of the emissions trading 
system. 
 
However, some domestic industries, such as the steel and power 
industries, are cautious about the idea of introducing such a system 
with one noting, "Such a system will hamper economic growth." A 
member from the Federation of Electric Power Companies of Japan 
(FEPCJ) during a subcommittee meeting yesterday of the Round-Table 
on Global Warming reporting to the prime minister pointed out, "It 
would be difficult to strike a balance between emissions cuts and 
economic growth under a system of the government forcibly 
establishing emissions quotas." 
 
15) LDP taskforce on global warming prevention proposes introducing 
environment tax, emissions-trading system 
 
YOMIURI (Page 4) (Full) 
May 22, 2008 
 
The Liberal Democratic Party's Global Warming Prevention 
Headquarters, chaired by Takeshi Noda, will compile a set of 
recommendations by the end of May. A draft of the package defines 
the next five to 10 years as a period for special action and 
suggests that the government should intensively promote such tasks 
as introducing an emission-trading system and an environment tax 
designed to impose tax based on carbon dioxide emissions. The panel 
wants to reflect the recommendations in the Fukuda vision to be 
released by the government on how to curb global warming in June. 
 
From the viewpoint of mitigating global warming, the draft proposes 
reconstructing every policy mechanism, such as the tax and subsidy 
systems, as well as regulations. Besides, it suggests introducing 
daylight-saving time. Regarding the global warming countermeasures 
now being taken by the government, too, the panel will look into 
their effect and review them. 
 
Further, the package proposes that a basic law on creating a 
 
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low-carbon society be enacted and that the law should include 
measures to (1) set medium-term and long-term goals for reducing 
greenhouse gas emissions; and (2) establish a study committee on 
climate change control (tentative name) composed of eminent persons 
from industry and academics. 
 
16) Extra Diet session likely to be convened in late August 
 
YOMIURI (Page 2) (Full) 
May 22, 2008 
 
The government and ruling parties yesterday started looking into the 
possibility of convening an extraordinary session of the Diet in 
late August. The session now is scheduled to open in the fall. With 
an eye on the expiration next January of the new antiterrorism 
special measures law, the growing view is that an early opening of 
the extra Diet session is necessary in order to secure sufficient 
time for deliberations in the House of Councillors. 
 
There is a possibility that if a bill revising the new antiterrorism 
special measures law, intended to extend its term, is submitted to 
the Diet, the main opposition Democratic Party of Japan (DPJ) will 
be opposed to taking a vote on the bill in the Upper House. The DPJ 
has opposed also a bill amending the special law on state subsidies 
for the government-controlled health care program, which will be 
carried over to the extra session from the ongoing regular Diet 
session. 
 
Therefore, the ruling camp has judged that it is needed to secure 
the term of the session in view of the constitutional 60-day rule 
that stipulates if the House of Councillors fails to take vote on a 
bill within 60 days after receiving it from the House of 
Representatives, it is considered that the bill was rejected. 
 
A senior Liberal Democratic Party member even said yesterday: "When 
assuming the constitutional 60-day rule will be used, the extra Diet 
session should be opened sometime between late July and early 
August." 
 
In the past, the fall extraordinary Diet sessions were often 
convened during late September and early October. Under the 
political situation with the Diet divided between the ruling and 
opposition camps, the extra session opened on Sept. 10 last year. 
 
17) Consumer policy panel reveals draft final report on 
 
ASAHI (Page 1) (Excerpts) 
May 22, 2008 
 
The government's Council for Promoting Consumer Policy held a 
meeting at the Kantei yesterday, in which Chairman Takeshi Sasaki, 
professor at Gakushuin University, spelled out its draft final 
report. The draft proposes establishing a consumer agency as an 
organ affiliated with the Cabinet Office, calling for giving to it 
powerful comprehensive coordination and recommendation rights. To 
reflect consumers' views, the report also suggests establishing an 
experts panel. 
 
Ministerial negotiations will start this week. Based on results in 
the negotiations and the recommendations in the draft report, the 
council will come up with a final report in early June. The 
government will then adopt its basic plan in a cabinet meeting and 
 
TOKYO 00001402  013 OF 013 
 
 
submit a bill governing establishing a consumer agency in the 
extraordinary Diet session in the fall. 
 
As key duties for the consumer agency, the draft cites "planning and 
drafting new legislation beyond the vertically divided system of 
government administration." It also specifies that the panel will 
work out legal measures to save victims, focusing on such measures 
as seizing profits illegally earned by companies or dealers and 
introducing a system in which administrative organs file a damage 
complaint on behalf of victims. 
 
In the new body, two key sections will be set up; one  as a control 
tower for coordinative views among government agencies, and another 
responsible for instructing companies or dealers, as well as for 
product testing. 
 
The proposed expert panel will be established based on Article 8 of 
the National Administrative Organization Law. The panel will be 
allowed to offer views to the prime minister and others on consumer 
policies and administrative punishment by government agencies. 
 
18) Government, ruling parties to review medical insurance premiums 
reduction from pension benefits of people aged 75 and over 
 
MAINICHI (Page 1) (Abridged) 
May 22, 2008 
 
The government and ruling parties decided yesterday to review part 
of the system of medical insurance premiums reduction from the 
pension benefits of those aged 75 and older. Under the present 
system, the medical insurance premiums of people whose monthly 
pension benefit is more than 15,000 yen are withheld. The government 
and ruling coalition will promote coordination with municipalities 
on a plan to raise the minimum to more than 30,000 yen. Although 
they intend to compile a revision plan by June 13 when the medical 
insurance premiums are withheld next time, the outlook is that the 
revision plan will be compiled in the fall or later since 
modification of the system is needed. 
 
SCHIEFFER