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UNCLAS SECTION 01 OF 11 TOKYO 001471 
 
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 05/29/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
Prime Minister's daily schedule: Attended TICAD IV; Bilateral 
meetings also with African leaders 
 
Earthquake in China: 
3) China asks Japan to send SDF planes to deliver relief goods for 
earthquake victims  (Mainichi) 
4) ASDF airlift of relief goods to China could start within days of 
government's order  (Nikkei) 
5) Japan surprised by China's request to send ASDF planes with 
earthquake relief goods  (Asahi) 
6) Sudden request for SDF earthquake assistance may be Hu Jin Tao's 
way of silencing hard-core critics of his Japan policy  (Sankei) 
 
TICAD-IV - African development conference: 
7) African nations support Japan's anti-global warming measures and 
the initiative will be mentioned in the TICAD's Yokohama Statement 
(Nikkei) 
8) In meeting on TICAD sidelines with Sudan's president, Prime 
Minister Fukuda presses for early resolution of Darfur issue 
(Nikkei) 
9) Change in government's policy toward cooperative financing 
(Asahi) 
10) Government in between a rock and hard place in pledges of large 
amounts of aid and fiscal discipline  (Sankei) 
 
11) Global warming countermeasures: Over dozen countries including 
Japan willing to put up $5.5 billion to held countries fight 
greenhouse-gas emissions  (Asahi) 
 
North Korea problem: 
12) Assistant Secretary Hill in meeting with North Korean 
counterpart conditions DPRK removal from terror-sponsoring list to 
progress on abduction issue  (Yomiuri) 
13) Prime Ministerial Advisor Nakayama in speech hopes for returning 
to the starting point on abduction negotiations with DPRK  (Sankei) 
 
 
14) Bank of Japan Governor  Shirakawa: Low interest rates caused 
Japan, U.S. bubble economy  (Yomiuri) 
 
15) Former LDP postal rebel Hiranuma lining up forces through a 
series of Diet members' leagues  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Japan considering sending SDF aircraft to China to transport relief 
supplies 
 
Mainichi: 
Government to send SDF planes to quake-hit areas in Sichuan at 
China's request 
 
Yomiuri: 
ASDF aircraft to be dispatched to China to transport relief 
supplies 
 
TOKYO 00001471  002 OF 011 
 
 
 
Nikkei: 
Government to inform China of sending SDF planes 
 
Sankei: 
ASDF aircraft to be dispatched to China for first time; President Hu 
might try to press anti-Japanese group 
 
Tokyo Shimbun: 
Government to send SDF planes to China 
 
Akahata: 
Atomic lawsuit: New standards for designation of atomic-bomb victims 
insufficient 
 
2) EDITORIALS 
 
Asahi: 
(1) Investigation of insider trading: We are surprised at NHK's lack 
of sense of crisis 
(2) Appointments requiring Diet approval: Bad rules should be 
abolished as quickly as possible 
 
Mainichi: 
(1) ASDF plane dispatch to China: Japan should provide China with 
maximum support 
(2) Agreement on public servant system reform: Politicians, you can 
do it 
 
Yomiuri: 
(1) Aid to Africa: Japan to grow with African states 
(2) Reform of civil servant system: Need for concrete measures to 
implement reform 
 
Nikkei: 
(1) Drastic reform necessary for decentralization 
(2) SDF should join China relief operations 
 
Sankei: 
(1) Recommendations for decentralization: "Zero answers" no longer 
forgiven 
(2) Banning cluster bombs: Security of Japan will be impaired 
 
Tokyo Shimbun: 
(1) Public servant system reform: Why is the system not being 
completely reformed? 
(2) Stock trading in NHK: Three-time investigations needed 
 
Akahata: 
(1) Setting of mid-term goals: Seriousness for battle against global 
warming being tested 
 
3) Government to send SDF planes to quake-hit areas in Sichuan 
Province at China's request 
 
MANI CHI (Top Play) (Full) 
May 29, 2008 
 
In order to transport such relief supplies as tents and blankets to 
earthquake-hit areas in Sichuan Province, China, the Japanese 
government, at the request of the Chinese government, decided 
yesterday to send shortly Air Self-Defense Force C-130 transport 
 
TOKYO 00001471  003 OF 011 
 
 
aircraft in line with Japan Disaster Relief Team Law. The government 
is considering having the ASDF planes transport supply goods from 
Japan to airports of the quake-hit areas in China. It will be the 
first time for an SDF relief unit to be dispatched to China. It will 
be the first time for the SDF to carry out relief operations since 
they did so in 2006 when Indonesia was hit by a massive earthquake. 
 
Chief Cabinet Secretary Nobutaka Machimura revealed yesterday in a 
press conference that the Chinese government had asked Japan through 
the Japanese embassy in Beijing for relief goods as well as the 
dispatch of SDF aircraft. He stated: "We understand that China wants 
the SDF to deliver tents and blankets to airports in China." 
 
Since the tents and blankets that the Japan International 
Cooperation Agency (JICA) has stockpiled in Singapore are running 
out because many were provided to cyclone-hit Burma (Myanmar), the 
Government is now considering sending goods held by the SDF to China 
in the form of a grant. The Defense Ministry is now carrying our 
coordination with the Finance Ministry as to the procedure for using 
state-owned assets for international assistance. 
 
If the dispatch of SDF aircraft is ordered, a fact-finding team will 
be sent within 48 hours and a C-130 transport plane will be 
dispatched within five days. According to the Defense Ministry, two 
to three C-130 transport planes will likely be dispatched to China. 
The government is considering transporting relief supplies from the 
Komaki base where a transport unit is stationed to Shengdou and 
Chengdou in China. 
 
It the dispatch this time around is realized, it will be the first 
case for Japan in the postwar period, excluding a government plane 
used for the prime minister's overseas trips. Assuming that the 
private sector will provide relief goods to China, the government is 
also considering the dispatch of private charters along with the SDF 
planes. Japan dispatched a 61-member relief team to the quake-hit 
areas in Sichuan Province and a 23-member medical team has been now 
carrying out its mission. 
 
4) ASDF cargo aircraft to depart for China within 5 days after 
receiving order 
 
NIKKEI (Page 2) (Abridged) 
May 29, 2008 
 
The government is preparing in full swing to send Air Self-Defense 
Force transport planes to China in order to carry out relief 
operations for those affected in the Sichuan earthquake, officials 
said yesterday. This is for the ASDF to airlift relief goods for 
victims after intergovernmental coordination between Japan and 
China. The government will map out how to collect tents and blankets 
as well as specific flight plans for ASDF C-130 transports. A main 
unit of the ASDF will be readied to depart within five days after 
receiving government orders. 
 
The Defense Ministry is now planning to fly Komaki-based C-130 
transports to airlift tents, blankets, and medical supplies to 
Beijing, Chengdu, or elsewhere. The C-130 is a mainstay cargo plane 
of the Self-Defense Forces. The ASDF has a total of 16 C-130s, three 
of which are currently engaged in a mission for reconstruction 
assistance to Iraq. The ASDF can fly up to six C-130s for disaster 
relief operations. 
 
 
TOKYO 00001471  004 OF 011 
 
 
In the case of overseas activities under the International Emergency 
Relief Law and the Self-Defense Forces Law, the SDF is to send an 
advance team within 48 hours after receiving dispatch orders. That 
is intended to check the conditions of runways. The ASDF's main unit 
will be readied within two or three days after that. 
 
5) China's turnaround surprises Japan 
 
ASAHI (Page 3) (Full) 
May 29, 2008 
 
China has asked Japan to send Self-Defense Forces aircraft to help 
transport relief supplies following the devastating quake that hit 
Sichuan earlier this month. The Chinese asking for help was a 
surprise to officials in the foreign and defense ministries. "I 
never expected China to change like this," a senior official of the 
Defense Ministry admitted, "because they used to have such an 
allergy to the SDF." 
 
Shortly after the Sichuan quake, some of the Japanese government 
wondered if the government would send the SDF to China for emergency 
relief operations. However, the government was negative of it, with 
one high-ranking official saying: "China has enough people in its 
military and police and will use them, so I don't think they will 
ask for help. Also, China has pride as a big power." 
 
In 1992, Japan amended its law for international emergency 
assistance. This legal reform has made it possible for Japan to 
engage the SDF in overseas emergency relief operations. Japan, under 
the revised law, has so far tasked the SDF with a total of nine 
overseas missions, including those in Asia and in the Middle East. 
After the 2004 Sumatra offing earthquake and the 2006 Java 
earthquake, the Air Self-Defense Force's C-130 transport planes 
airlifted supplies to Indonesia. In addition, the Ground 
Self-Defense Force was engaged in medical support and epidemic 
prevention. However, Japan has never sent the SDF to China. 
 
Chief Cabinet Secretary Machimura, meeting the press yesterday, 
commented on the Chinese government's request: "The damage over 
there is so serious, so I presume that they judged they would have 
to depend on foreign countries for what they can't do themselves." 
The government is now studying specific ways to transport relief 
supplies. "We will probably use C-130 transport planes," a 
high-ranking government official said. An ASDF staff officer also 
said, "It depends on how much we would carry, but it's possible to 
fly several C-130 transports." 
 
Such an unprecedented move reflects the recent improvement in 
bilateral relations. Chinese President Hu Jintao visited Japan early 
this month and met with Prime Minister Fukuda. In their meeting, the 
two leaders just released a joint statement and confirmed "strategic 
reciprocity" in bilateral relations. The SDF and the People's 
Liberation Army are also about to promote defense exchanges. This 
time, a Chinese military official first sounded out the Japanese 
embassy in Beijing on airlift activities involving SDF aircraft. 
 
However, some of the Japanese government's officials are also 
cautious about the Chinese request. "It's a sensitive issue," a 
senior official of the Foreign Ministry said. China's public 
sentiment toward Japan has now improved through Japan's dispatch of 
a relief team for the Sichuan quake. Even so, there is no knowing 
how the dispatch of SDF aircraft will work on the Chinese people's 
 
TOKYO 00001471  005 OF 011 
 
 
mindset. 
 
Meanwhile, Foreign Minister Koumura was careful about his choice of 
words. "They're not asking us to carry something on SDF aircraft," 
Koumura told reporters yesterday evening in Yokohama. He added: 
They're saying it's also all right if we use SDF aircraft. That's my 
understanding." He also said, "There are many things to study, so I 
think we need the prime minister's judgment." With this, Koumura 
underscored the necessity of a political judgment. 
 
A senior official of the Defense Ministry is enthusiastic, saying, 
"There's nothing better than this in a way to deepen defense 
exchanges between Japan and China." However, another Defense 
Ministry official says there is no predicting how it will affect 
Japan-China relations in the future. 
 
6) By requesting SDF assistance, Hu administration may to be trying 
to contain hard-liners toward Japan 
 
SANKEI (Top play) (Full) 
May 29, 2008 
 
Toshu Noguchi, Beijing 
 
The Chinese government's decision to ask Japan for a dispatch of the 
Self-Defense Forces' (SDF) aircraft to China in the aftermath of the 
Sichuan earthquake is likely to bring about a major change in 
bilateral relations. Behind this decision seems to be the Chinese 
government's intention to contain hard-liners in the Chinese 
military and to underwrite his stance of attaching importance to 
Japan. He is doing so by taking advantage of the current mood in the 
country where public sentiment toward Japan is improving due to 
Japan's international disaster relief team's rescue activities 
following President Hu Jintao's recent visit to Japan. 
 
In China, how the Chinese Communist Party, which has formed a 
single-party regime, came into being is related to the war against 
Japan. Anti-Japanese education, including encouraging teaching about 
the atrocities of the former Imperial Japanese Army, culminated in 
fostering anti-Japanese feelings and patriotism. Even the Japanese 
"Rising Sun Flag" has been seen as a symbol of the history of 
Japan's aggression in China. 
 
However, the recent visit to Japan by President Hu was called a 
"warm spring trip." When the Sichuan earthquake occurred afterwards, 
the Japanese rescue team was the first foreign group to arrive in 
the disaster-hit area. Chinese mass media gave wide coverage to the 
Japanese rescue team, with one Chinese daily reporting that "the 
rescue team members are making desperate efforts at the risk of 
their lives." Their activities, as well as the follow-on medical 
team's, have been appreciated and received with gratitude in China. 
 
China's request to Japan to send SDF aircraft to China followed 
those Japanese teams' activities, but a Chinese military officer 
noted: "It is not that we lack transport planes due to rescue 
activities." Perhaps because of anti-Japanese sentiments and in 
terms of the People's Liberation Army's honor, some in the army are 
reportedly opposed to the government's request to Japan for a 
dispatch of SDF planes to China. 
 
The Japanese rescue team was asked to rescue victims in a 
mountainous area where there seemed to be scant survivors. As a 
 
TOKYO 00001471  006 OF 011 
 
 
result, it failed to demonstrate its capability to rescue. 
Reportedly, the Japanese team was sent to such an area in line with 
the Chinese military's intention, for the Chinese military has 
jurisdiction over the disaster-hit areas. In one disaster-affected 
area, some Chinese soldiers criticized the Japanese rescue team and 
voiced opposition to it. Given the situation regarding the rescue 
team, one can easily imagine how Chinese hard-liners against Japan, 
including those in the military, will negatively react to the SDF 
when they start relief operations in China. 
 
Notwithstanding, the Chinese government asked Japan for a dispatch 
of SDF planes. That is perhaps because: (1) as an actual problem, 
China is in extremely short supply of goods, such as tents; (2) 
China wants to show at home and abroad its stance of attaching 
importance to international cooperation; and (3) China wants to 
improve the public's feelings toward Japan for the better. Above 
all, rebuilding a good relationship between Japan and China would 
lead to strengthening the power base of President Hu, given the 
existence of former President Jiang Zemin, a hard-liner against 
Japan who is still influential. 
 
In part helped by the state-run TV's news reports on inspections of 
the disaster-hit areas by Hu and Premier Wen Jiabao, their 
popularity is rising. Meanwhile, "Jiang Zemin, who demonstrates his 
voice over personnel selection of key central officials in the 
party, tends to be sinking," a Chinese source said. Expectations are 
building on a "political effect" of SDF aircraft. 
 
7) TICAD: African countries support Japan's global warming 
countermeasures; Yokohama Declaration to specify sector-by-sector 
reduction approach 
 
NIKKEI (Page 2) (Abridged slightly) 
May 29, 2008 
 
In the fourth Tokyo International Conference on African Development 
(TICAD-4) that kicked off yesterday in Yokohama, African countries 
are likely to express their support for Japan's measures to combat 
global warming. In return for Japan's assistance in preventing 
global warming in terms of funds and technology, African nations 
will announce their support for Japan's countermeasures, including 
the sector-by-sector approach to reduce greenhouse gases. Their 
support will be incorporated in the Yokohama Declaration to be 
adopted on May 30. 
 
Prime Minister Yasuo Fukuda, delivering a speech in the opening 
ceremony, played up his determination to spread Japan's Cool Earth 
Partnership initiative to combat global warming throughout the 
African continent. The partnership initiative is a 
10-billion-dollar-scale measure toward developing countries designed 
to assist them in proliferating new energy. The initiative also 
includes the promotion of the sector-by-sector approach. 
 
In a plenary session held yesterday afternoon to discuss the global 
warming issue, leaders of many African nations, including Seychelles 
and Tunisia, expressed their support for Japan's support measures. 
 
The framework after the Kyoto Protocol, which expires in 2012, has 
not been determined, and international talks are underway. Japan 
aims to advance the ongoing talks in its favor by enlisting support 
from over 50 African nations. Emitting only a small amount of 
greenhouse gases and lacking large industries, African countries 
 
TOKYO 00001471  007 OF 011 
 
 
seem to have found the sector-by-sector approach easy to support. 
 
8) Fukuda urges Sudanese president to settle Darfur conflict 
swiftly 
 
NIKKEI (Page 2) (Abridged slightly) 
May 29, 2008 
 
Prime Minister Yasuo Fukuda held a meeting yesterday morning with 
Sudanese President Bashir at a Yokohama hotel. In the session, 
Fukuda urged the Sudanese president to swiftly resolve to the 
conflict in Darfur, an international concern, saying: "Whether Japan 
can extend (economic) assistance depends on the president." In 
response, Bashir indicated that pressure must be applied to the 
antigovernment forces, saying: "The problem is that the 
antigovernment forces do not attend the talks." 
 
9) Africa aid: Switch to concerted financing 
 
ASAHI (Page 1) (Full) 
May 29, 2008 
 
Prime Minister Fukuda during the Fourth Tokyo International 
Conference on African Development (TICAD IV) revealed a plan to 
extend fresh yen loans worth 4 billion dollars (approximately 420 
billion yen) to Africa. In connection with this proposal, the 
government and the World Bank have firmed up a policy of sealing a 
comprehensive tie-up deal with an eye to extending concerted 
financing for their joint projects. They will formally reach an 
agreement at a meeting between Prime Minister Fukuda and World Bank 
Group President Robert B. Zoellick on May 29. 
 
Japan's ranking in the list of donors of official development 
assistance (ODA) dropped to fifth place due to its harsh fiscal 
conditions. Under such a situation, the government has determined 
that Japan is limited in what it can do on its own in addressing 
African countries' request for major development projects aimed at 
integrating their economies. As such, it will shift the focus of its 
aid policy to giving priority to aid items extended jointly with 
international agencies, based on this framework. 
 
The comprehensive tie-up deal with the World Bank will cover a wide 
range of areas, including the consolidation of infrastructure, 
promotion of private-sector investment, agriculture, education, 
health care and climate change. 
 
Concerted financing will smoothen the wide-area development of 
infrastructure, such as the building of a principle road network 
system straddling several countries. For instance, for the 
consolidation of road networks, which the prime minister in a speech 
delivered at the opening ceremony stressed as most important, up to 
8 million dollars (approximately 84 billion yen) in yen loans will 
be provided mainly for projects eligible for concerted financing 
between Japan and the World Bank. The construction of principal 
roads in Kenya and West Africa and highways in Senegal will likely 
be eligible for concerted loans. Up to 760 million dollars will be 
extended for power development. Japan jointly with the World Bank 
will help Zambia and Mozambique build power distribution grids. 
 
Following the sharp rise in food prices, which are hitting 
impoverished people in Africa, the government will provide up to 480 
million dollars (approximately 50 billion yen) in yen loans mainly 
 
TOKYO 00001471  008 OF 011 
 
 
for projects eligible for concerted loans with the World Bank. Japan 
will also contribute over 22 million dollars (approximately 2.3 
billion yen) for various funds aimed at improving agricultural 
productivity. 
 
For measures to combat climate change, Japan will tie up with the 
United Nations Development Program (UNDP). As part of such an 
effort, the government will help governments of African nations 
reduce damage from droughts and submersion under water, by outlaying 
a total of 120 million dollars (approximately 12.6 billion yen) from 
the Cool Earth Partnership, a funding mechanism totaling 10 billion 
dollars (approximately 1 trillion yen), which it has established for 
assisting developing countries. 
 
10) Japan's "4 billion dollars" aid plan faces predicament of being 
caught between aid commitment to Africa and fiscal discipline 
 
SANKEI (Page 1) (Full) 
May 29, 2008 
 
Prime Minister Yasuo Fukuda made a public pledge on Japan's aid to 
Africa in a keynote speech at the 4th Tokyo International Conference 
on African Development (TICAD IV) yesterday. The Africa issue will 
also be high on the agenda at the upcoming Group of Eight (G-8) 
Summit (Lake Toya Summit in Hokkaido) in July. As the chair, Japan 
is aiming to take the initiative in discussions there, bringing in 
Africa. By enticing the participation of Africa, Japan will aim at 
securing its national benefits over the medium to long term. But the 
prime minister's pledges lacked specifics in a sense. 
 
Emphasizing the necessity to promote infrastructure building in 
Africa, Fukuda announced in the speech Japan's plan to extend up to 
4 billion dollars in yen loans to Africa over the next five years. 
Japan's decision to offer aid, despite its austere fiscal 
conditions, stems from a judgment that financial aid is necessary in 
order to solicit support from Africa for Japan's bid for a permanent 
seat on the United Nations' Security Council. 
 
However, there is a trick in the "4 billion dollar" aid plan. In 
offering yen loans to a certain nation, the government has so far 
announced within Japan an amount worked out by deducing repayment 
money. But the "4 billion dollar" includes such money. 
 
In the run-up to TICAD4, the Foreign Ministry was calling for a 
significant increase in the nation's official development assistance 
(ODA) disbursements to Africa. But the government's annual economic 
and fiscal policy guideline adopted in a cabinet meeting in 2006 
specified an annual 2-4 PERCENT  cut in the ODA budget. When 
considering this policy, it was all the government could do to come 
up with a plan to increase yen loans by up to 160 million dollars 
annually by 2012. Fukuda was under the predicament of being caught 
between the two challenges of "aid to Africa" and "fiscal 
discipline." As a result, he hammered out the "4 billion dollars," 
as a Foreign Ministry source remarking: "This is a good showy 
figure," giving consideration to both challenges. 
 
Fukuda stressed: "Our nation, as a peace-cooperation nation, is 
determined to step up efforts to consolidate and build peace in 
Africa." For Japan's bid to become a permanent UNSC member, 
international contributions in the security area are also 
indispensable, but Fukuda made no reference to specific plans. 
 
 
TOKYO 00001471  009 OF 011 
 
 
Self-Defense Force (SDF) troops have not joined the ongoing UN 
peacekeeping operations (PKO) in Africa. The government is now 
planning to dispatch three to four SDF officials to the headquarters 
of the United Nations Mission in Sudan (UNMIS) in southern Sudan. 
 
In a bilateral meeting with Sudanese President Omar al-Bashir 
yesterday, Fukuda was expected to reveal Japan's PKO assistance 
plan, but it was not taken up because "time ran out," according to a 
diplomatic source. Although Fukuda expressed his determination to 
win a UNSC permanent seat, he failed to demonstrate his eagerness to 
prove it. 
 
11) Global warming prevention fund worth 5.5 billion dollars to be 
created to assist developing countries: More than 10 countries to 
contribute 
 
ASAHI (Page 1) (Full) 
May 29, 2008 
 
It seems likely that industrialized countries, such as Japan, the 
U.S. and Britain, will reach an agreement at the G-8 (Lake Toya 
Summit) to be held in Hokkaido in July to establish a fund aimed at 
helping developing countries battle against global warming. More 
than 10 countries are expected to contribute to the establishment of 
the planned fund, disbursing 5.5 billion dollars in total 
(approximately 570 billion yen). The aim of establishing such a fund 
is to encourage developing countries to take part in a new framework 
for cutting global warming greenhouse gas emissions. 
 
President Robert Zoellick of the World Bank, which will be in charge 
of managing the fund, yesterday revealed the plan. Australia and 
Canada will also take part in the fund, making it the largest ever 
scale as a measure to combat climate change. Zoellick underscored, 
"The fund will make a significant contribution in backing 
negotiations for setting up a framework replacing the Kyoto 
Protocol." The fund will be named the Climate Investment Fund. The 
plan was proposed by Japan, the U.S. and Britain at a  meeting of 
finance ministers and central bank governors from the Group of Seven 
nations (G-7) held in Tokyo in February. Agreement in principle was 
reached at a working-level meeting held in the middle of this month, 
bringing together participants from about 40 countries. The fund 
will be established as early as this fall if G-8 participants 
support it. 
 
The U.S. and Britain plan to disburse 2 billion dollars 
(approximately 210 billion yen) and 800 million pounds 
(approximately 170 billion yen) respectively over three years. Japan 
is also undertaking coordination with the possibility of disbursing 
more than 100 billion yen. Finance Minister Nukaga will call on 
other countries to take part in the fund at the Group of Eight 
finance ministerial meeting to be held in Osaka from June 13. 
 
The fund consists of two pillars -- the Clean Technology Fund worth 
5 billion dollars for the dissemination of solar energy generation, 
etc, and the Strategic Climate Fund worth 500 million dollars for 
helping forest conservation and control. 
 
There is strong dissatisfaction with the Kyoto Protocol for its 
insufficient funding assistance to developing countries. This has 
been one cause for developing countries hesitating to take part in 
official UN talks on the creation of a post-Kyoto Protocol 
framework. The focus will be whether industrialized countries can 
 
TOKYO 00001471  010 OF 011 
 
 
succeed in having developing countries take proactive action. 
 
12) Progress in Japan-North Korean relations required before DPRK 
delisted as state sponsor of terrorism 
 
YOMIURI (Page 4) (Full) 
May 29, 2008 
 
Shoji Minami, Beijing 
 
The Japanese and American chief delegates to the six-party talks on 
the North Korean nuclear issue, U.S. Secretary of State Christopher 
Hill and Japan's Foreign Ministry's Asian and Oceanian Affairs 
Bureau Director-General Akitaka Saiki, met late yesterday (late 
yesterday, Japan time) in Beijing. On the question of whether to 
delist North Korea as a state sponsor of terrorism, they confirmed 
that removing that country from the list of state sponsors of 
terrorism is premised on progress in Japan-China relations, 
including the abduction issue. 
 
13) Prime Ministerial Advisor Nakayama hopes Pyongyang would 
readdress abduction issue 
 
SANKEI (Page 5) (Abridged slightly) 
May 29, 2008 
 
Kyoko Nakayama, advisor to the prime minister on the abduction 
issue, held a press conference yesterday at the Japan National Press 
Club in Tokyo's Uchisaiwaicho. Touching on the talks in May 2004 
between then Prime Minister Junichiro Koizumi and North Korean 
leader Kim Jong Il, Nakayama said: "General Secretary Kim has sent 
us a message to return to the starting point. Although a North 
Korean official in charge said, 'The issue has been settled,' it is 
conceivable to return to the first visit to North Korea in September 
2002 and start talks all over again." Thus Nakayama expressed her 
strong hope about the possibility of North Korea readdressing the 
abduction issue. 
 
In addition, while stressing Japan's policy to aim at the 
repatriation of all abductees, Nakayama spoke of conditions for 
Tokyo to lift sanctions against the North: "If concrete talks begin 
with the North for returning (abductees) to Japan, that would be 
progress." 
 
About the relationship between the option of bringing the Yodo-go 
airliner hijackers back to Japan from the North and the United 
States' plan to delist the North as a state sponsor of terrorism, 
Nakayama said: "(Bringing them back to Japan) is considered to be a 
plus factor for the delisting of the North, but it has no direct 
bearing on the abduction issue." She emphasized her position that 
the United States should not delist the North on the grounds of the 
repatriation of the Yodo-go hijackers. 
 
14) BOJ governor attributes low-interest rates to asset bubbles in 
Japan, U.S. 
 
YOMIURI (Page 9) (Full) 
May 29, 2008 
 
Bank of Japan (BOJ) Governor Masaaki Shirakawa said yesterday: "Many 
of the recent asset bubbles in Japan and the United States were 
caused by prolonged low interest rates despite commodity prices 
 
TOKYO 00001471  011 OF 011 
 
 
stabilized." He indicated that the state of interest rates remaining 
low was a major cause for asset bubbles in Japan and the U.S. He 
made this comment, focusing on the bubble economy in Japan in the 
latter half of the 1980s and the subprime mortgage crisis in the 
U.S. 
 
Regarding the bubble economy in Japan, Shirakawa said: "At that 
time, many companies anticipated that interest rates would remain 
low for a long term. It is impossible to say that this is nothing to 
do with the bubble economy." 
 
Shirakawa concluded: "If (central banks) focus their attention only 
on inflation rates, they may fail to swiftly take necessary monetary 
measures and eventually may allow significant changes to occur in 
economic activities." He thus emphasized the importance of taking 
monetary measures while keeping in mind price rise rates over the 
medium- to long-term. He made the above remarks in his speech at the 
central bank's 2008 International Conference. 
 
15) Hiranuma active in various parliamentary groups 
 
YOMIURI (Page 4) (Full) 
May 29, 2008 
 
Former Minister of Economy, Trade and Industry Takeo Hiranuma 
(independent) is eager to organize a new party. He is briskly taking 
part in a number of parliamentary groups. 
 
Yesterday, Hiranuma assumed the post of chair of the supraparty 
parliamentary group "Parliamentary League to Consider the Japanese 
Language." Its inaugural meeting was attended by 45 lawmakers. Among 
the council's executive members are former Prime Minister Mori, the 
major opposition Democratic Party of Japan's (DPJ) Upper House 
Steering Committee Chair Takeo Nishioka, and the People's New 
Party's Representative Watanuki. In the meeting, Hiranuma 
emphasized: "In Japan, we call words the spirit of language, and for 
generations, we have set a high value on words. Unfortunately, 
however, the Japanese language has become very corrupted due to the 
Occupation's policies. I want to lead a campaign to restore a good 
Japanese language." 
 
Hiranuma also heads the "Parliamentary League to Take Swift Action 
to Rescue Japanese Citizens Abducted by North Korea" and the 
"Japan-Taiwan Parliamentary Council". Today, Hiranumra will assume 
the post of supreme advisor to the "Japanese People's Forum" 
(represented by Teikyo Heisei University Prof. Kenzo Yoneda), a 
supraparty study group that conservative local assembly members are 
to launch today. In its inaugural meeting, Hiranuma will deliver a 
speech. 
 
One participant in the forum said: "A number of local assembly 
members sympathize with Hiranuma about his idea of aiming at being a 
'true conservative.' If he forms a 'Hiranuma party,' I want to join 
it." Will Hiranuma's brisk activities in parliamentary groups lead 
to his establishing a new party? His moves are drawing much 
attention in Japan's political center Nagata-cho. 
 
SCHIEFFER