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UNCLAS SECTION 01 OF 13 TOKYO 001519 
 
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 06/04/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Ambassador Schieffer meets with independent lawmaker Hiranuma on 
the North Korea abduction issue  (Mainichi) 
 
Fukuda diplomacy in Europe: 
5) Prime Minister Fukuda at the FAO food summit announces the 
release of 300,000 tons of imported rice and a $50 million donation 
to help fight food crisis  (Tokyo Shimbun) 
6) Outline of Prime Minister Fukuda's speech at the food security 
summit in Rome  (Nikkei) 
7) Fukuda to take back many difficult issues for G-8 Summit (Nikkei) 
 
8) Fukuda in Rome meeting with Iranian President Ahmadinejad presses 
for end to uranium-enrichment program  (Nikkei) 
9) Fukuda, French President Sarkozy discuss G-8 Summit issues 
(Nikkei) 
 
10) Ambassador to London Nogami retires to become adviser to Mizuho 
Group  (Nikkei) 
 
Defense and security affairs: 
11) Government engaged in full-scale study of reconstruction 
assistance to Afghanistan that may include GSDF dispatch for 
non-military activities  (Nikkei) 
12) China may be carrying out ballistic missile tests in the Yellow 
Sea  (Sankei) 
13) U.S,, Japan considering new Pacific strategy  (Sankei) 
14) Secret documents uncovered by researcher on plans for a Korean 
contingency  (Asahi) 
 
15) Fukuda vision on the global environment problem focuses on 
emissions trading  (Nikkei) 
 
Political agenda: 
16) Opposition camp hurriedly trying to adopt Upper House bill that 
would scrap the controversial medical system for elderly  (Asahi) 
17) Democratic Party of Japan (DPJ) increasingly unlikely to submit 
censure motion against the prime minister  (Sankei) 
18) DPJ head Ozawa comes out against increasing the consumption tax 
(Sankei) 
19) Ozawa again sets off on a stumping tour aimed at the next 
election  (Yomiuri) 
20) Prestigious private panel urges each party to ready a manifesto 
with clear policy statements  (Sankei) 
21) Farm policy clique in the Diet blasts Chief Cabinet Secretary 
Machimura for calling for revision of rice acreage reduction program 
 (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Children moved out of quake-hit China areas without knowing of 
parents' death 
 
Mainichi: 
 
TOKYO 00001519  002 OF 013 
 
 
Towns deserted due to fears of flooding from quake lakes 
 
Yomiuri: 
U.N. secretary general calls for abolition of export restrictions at 
Food Summit 
 
Nikkei: 
Government plans to include emissions trading scheme in "Fukuda 
Vision" of global warming measures 
 
Sankei: 
China believed to have test-launched ballistic missile in Yellow Sea 
 
 
Tokyo Shimbun: 
Food Summit opens: Japan to discharge 300,000 tons of imported rice 
and extend an additional 50 million dollars in aid 
 
Akahata: 
Public health program for elderly must be abolished 
 
2) EDITORIALS 
 
Asahi: 
(1) Children must know about risks associated with cell phones 
(2) Ainu resolution a historic step 
 
Mainichi: 
(1) Recovery of public trust takes zeal and swiftness on part of 
police 
(2) Fiscal 2009 budget: Fiscal System Council must stick to its 
principles 
 
Yomiuri: 
(1) 2nd-generation biofuel could solve food crisis 
(2) Daylight saving time should be introduced 
 
Nikkei: 
(1) Short- and long-term perspectives necessary for solving food 
crisis 
(2) FTA with ASEAN must be ratified swiftly 
 
Sankei: 
(1) Fiscal reconstruction: 2006 policy guidelines must be 
maintained 
(2) Soaring oil prices: Speculative funds must be monitored jointly 
 
Tokyo Shimbun: 
(1) Public health system for elderly requires improvements 
(2) Tax hike must not be predetermined conclusion for Fiscal System 
Council 
 
Akahata: 
(1) Fiscal System Council report far from giving peace of mind 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 2 & 3 
 
NIKKEI (Page 2) (Full) 
June 4, 2008 
 
 
TOKYO 00001519  003 OF 013 
 
 
June 2 
 
Afternoon 
Arrived at Intercontinental Hotel in London. 
 
Evening 
Departed from Heathrow Airport. 
 
Night 
Arrived at Leonardo da Vinci Airport in Roma. Stayed at Hotel The 
Westin Excelsior. 
 
June 3 
 
Morning 
Met with Sri Lankan President Rajapaksa at UNFAO headquarters. 
Delivered speech at Food Summit hosted by FAO. 
 
Afternoon 
Met with French President Sarkozy. Met later with Iranian President 
Ahmadi-Nejad. Returned to Hotel The Westin Excelsior. 
 
Evening 
Met with Italian Prime Minister Berlusconi at the prime minister's 
office. 
 
4) Hiranuma asks that North Korea be kept on designated list of 
countries sponsoring terrorism 
 
MAINICHI (Page 5) (Full) 
June 4, 2008 
 
Independent lawmaker Takeo Hiranuma, who chairs the Abduction 
League, a nonpartisan group of Diet members, yesterday paid a call 
on U.S. Ambassador to Japan Schieffer at the Embassy to urge that 
North Korea not be removed from the list of countries sponsoring 
terrorism. Hiranuma stressed: "It is extremely regrettable that 
there are moves to remove it from the list." According to Hiranuma, 
the Ambassador reportedly replied: "The President's views have not 
changed from before." 
 
5) Japan to release 300,000 tons of imported rice: Fukuda 
 
TOKYO SHIMBUN (Top play) (Full) 
June 4, 2008 
 
ROME-Prime Minister Yasuo Fukuda delivered a speech in a global food 
summit that opened in Rome on the morning of June 3 or on the 
afternoon of June 3 Japan time. In the speech, Fukuda announced a 
package of emergency measures to cope with skyrocketing grain 
prices. Specifically, Fukuda stated that Japan would release more 
than 300,000 tons from its stock of imported rice for countries that 
can hardly secure rice and that Japan would provide additional aid 
amounting to 50 million dollars (approximately 5.2 billion yen). 
 
Japan, for its release of imported rice, will use rice that Japan 
has imported in conformity with minimum access import quotas set by 
the World Trade Organization (WTO). 
 
"We will make efforts to stabilize supply and demand by improving 
our food self-sufficiency," Fukuda said, stressing that Japan will 
improve its food self-sufficiency that is now below 40 PERCENT . 
 
TOKYO 00001519  004 OF 013 
 
 
 
The 50 million dollars is an additional slot to help developing 
countries buy seedlings and fertilizers needed to expand their food 
production. The Japanese government has already translated its 
decision on emergency food aid into action, including 100 million 
dollars for emergency food aid and 10 million dollars intended to 
help developing countries step up their food production. 
 
Fukuda advocated establishing an international system to oversee the 
market influx of speculative money that pushes up food prices. "We 
should demonstrate out strong political intention to watch," he 
said. He also referred to grain-producing countries that restrict 
their exports. "We want to call on them to abstain from taking such 
restrictive action," he stressed. 
 
Biofuel production from corn and other grains has led to 
skyrocketing grain prices. In view of this fact, Fukuda suggested 
the need to study the feasibility of second-generation biofuel that 
is not made from food crops. 
 
Fukuda's speech gisted 
 
? Fukuda advocated establishing an international regime to oversee 
speculative transactions on agricultural markets. 
? The Japanese government will release more than 300,000 tons from 
its stock of imported rice in emergency aid. 
? It is urgently necessary to study the feasibility of 
second-generation biofuel that is not made from food crops. 
? Each country should abstain from restricting its food exports. 
? Japan will outlay 50 million dollars in additional aid for more 
food production. 
? Japan will improve its food self-sufficiency and contribute to the 
global supply and demand of food. 
? The G-8 Toyako summit should send a strong message to resolve the 
food crisis. 
 
6) Main points of Prime Minister Fukuda's speech at UN Food Summit; 
Politics needs to monitor moves for speculative food investment 
 
NIKKEI (Page 2) (Full) 
June 4, 2008 
 
The following is a gisting of Prime Minister Yasuo Fukuda's speech 
given at the Food Summit. 
 
I feel a strong sense of urgency. We must put together ideas and 
take action. I believe the "Comprehensive Framework for Action" 
introduced by United Nations Secretary General Ban Ki Moon is a very 
important foundation. 
 
Japan has announced it will implement emergency food aid worth $100 
million or so by July. As additional aid to poor farmers for 
increasing food production, Japan will immediately offer 
approximately $50 million. Japan is also ready to release 300,000 
tons of rice or more out of the imported rice stored by the 
government as emergency rice stocks. I will call on other countries 
to release their emergency food stocks to the international market. 
 
If there are any speculative aspects about the current state of the 
food market, I deem it necessary for politics to demonstrate strong 
will to monitor it. We must also discuss how to build a system that 
can secure a political will. I'd like to call on other countries to 
 
TOKYO 00001519  005 OF 013 
 
 
use moderation in restricting exports of agricultural products. 
 
In order to resolve the food crisis, I deem it essential for each 
country to strengthen its agricultural production. Japan will make 
efforts to contribute to stabilizing world food supply and demand by 
improving the food self-sufficiency. It is urgently necessary to 
improve agricultural productivity in developing countries. The 
international community needs to pay special attention to the 
agricultural sector and increase aid to it. 
 
The current soaring food prices are apparently related to new 
factors. First, we need to seriously address measures to deal with 
climate change. The way developing countries are farming needs to 
adapt to climate change. Second, in order to avoid cases of world 
food security being threatened by biofuel, it is necessary to study 
the second-generation biofuel that will not use food for fuel and 
put ideas into practical use as quickly as possible so that 
production will be sustainable. 
 
I am determined to jointly send a strong message in this regard at 
the upcoming Group of Eight Hokkaido Toyako Summit in July. 
 
7) Food issue a difficult challenge for Japan as chair of Lake Toya 
Summit 
 
NIKKEI (Page 3) (Full) 
June 4, 2008 
 
(Fumiyoshi Kendo, Rome) 
 
In a speech at a United Nations' food summit in Rome, Prime Minister 
Fukuda stressed his commitment to dealing with the ongoing global 
food crisis as the chair of the Group of Eight (G-8) Summit (Lake 
Toya Summit) in July. Fukuda aims at adopting a joint document on 
the food issue at the Lake Toya Summit, based on a declaration to be 
unveiled by the food summit on June 5. But it will not be easy to 
iron out differences in the participants' views reflecting their 
interests. 
 
One of the points of contention is biofuel. Japan has been calling 
for research to start to develop a biofuel that does not use food 
crops. But since it will take time to put it to practical use, this 
plan will not serve to immediately resolve the ongoing dispute 
between the U.S. and Brazil, which are stepping up production, and 
countries which are calling on them to review their policy. 
 
Meanwhile, it is necessary for the chair of the Summit to give 
consideration so as not to escalate the dispute. In the speech, 
Fukuda skipped this part: "It is true that there is a case in which 
biofuel production conflicts with food supply." The conflict of 
interest is also growing serious between developing countries 
suffering from a food crisis and food producing countries placing 
food export restrictions. 
 
Within the nation, the prime minister will be put up to the test 
over agricultural reform aimed to improve the nation's food 
self-sufficiency, which has dropped to 39 PERCENT  on a calorie 
basis. The Liberal Democratic Party's food strategy taskforce 
(headed by Koichi Kato), launched under the instruction of the prime 
minister, has started a discussion on reviewing such systems as 
supply, procurement from overseas, and stockpiling. 
 
 
TOKYO 00001519  006 OF 013 
 
 
For the LDP, however, agriculture is a delicate theme, as seen from 
the eruption of quick objections to Chief Cabinet Secretary Nobutaka 
Machimura's reference to a review of the current rice production 
adjustment. Stormy negotiations are expected in future talks on this 
issue. 
 
8) Fukuda urges Iranian president to end uranium-enrichment program 
 
YOMIURI (Page 2) (Full) 
June 4, 2008 
 
(Tsuyoshi Endo, Rome) 
 
Prime Minister Fukuda held a meeting with Iranian President Mahmoud 
Ahmadinejad at the Food and Agriculture Organization in Rome for 
about 50 minutes on the afternoon of June 3, local time. Referring 
to Iran's nuclear program, the prime minister said: "I ask you to 
suspend your nation's uranium-enrichment program." But the president 
indicated that Iran would continue the program, rebuking him: "It is 
impossible. Why do we have to end the program?" He then denied the 
allegation that Iran is developing nuclear weapons, saying: "Even if 
we possess nuclear weapons, we will not be able to use them, because 
such weapons are inefficient." 
 
Fukuda also took up the incident in which a Yokohama National 
University student has been kidnapped for nearly eight months and 
asked the president to cooperate in releasing him at an early date. 
Ahmadinejad replied: "We are making utmost efforts to have him 
returned to his family. 
 
9) Prime Minister Fukuda meets with European leaders in effort for 
confidence-building; Agrees with French president on cooperation to 
deal with climate change 
 
NIKKEI (Page 2) (Excerpts) 
June 4, 2008 
 
Fumiyoshi Indo 
 
Prime Minister Fukuda yesterday met separately with French President 
Sarkozy and Italian Prime Minister Berlusconi, winding up his major 
events on his European tour. The prime minister apparently has now 
achieved his initial goal of building a personal relationship of 
trust with each country's leader so that he will be able to smoothly 
put together ideas as to how to reduce greenhouse gas emissions at 
the Upcoming Group of Eight (G-8) Hokkaido Toyako Summit in July. 
 
In the Japan-France summit talks, both leaders confirmed a plan to 
discuss measures for the international community to deal with 
soaring oil prices. Sarkozy sought to establish a framework that 
will involve all major emitters of greenhouse gases. In response, 
Fukuda promised to work together with the president on this matter. 
 
Sarkozy suggested expanding the G-8 summit framework, an idea he has 
previously advocated. Fukuda told Sarkozy: "I think it is meaningful 
for a limited number of leaders of major countries to exchange views 
frankly. One idea is to have discussion with emerging economies at 
an expanded summit forum." Sarkozy also indicated his continued 
intention to give strong support to Japan's bid for a permanent seat 
on the United Nations Security Council. 
 
For Fukuda, who is to host the upcoming G-8 Summit, his tour of 
 
TOKYO 00001519  007 OF 013 
 
 
Europe this time is an important opportunity. Fukuda previously had 
telephone conferences with German Chancellor Merkel and British 
Prime Minister Brown, but until recently he has not met with them. 
During this European tour, Fukuda had his first conversations with 
Salkozy and Berlusconi respectively. 
 
It would be difficult to produce successful results without personal 
relationships of trust with other countries' leaders. So, Fukuda 
prioritized his European tour this time over the political calendar 
at home, such as Diet discussions in the latter days of the Diet 
session. Some meetings with leaders of European countries did not 
last for one hour, but Fukuda has now accomplished his goal of 
meeting with as many leaders as possible. 
 
10) Former Vice Foreign Minister Nogami becomes advisor to Mizuho 
Corporate Bank 
 
NIKKEI (Page 7) (Full) 
June 4, 2008 
 
Mizuho Corporate Bank announced yesterday that it has appointed 
former Vice Foreign Minister Yoshiji Nogami, 65, as its adviser. He 
will offer advice to the bank's management regarding its 
international strategy. 
 
Nogami, a former Economic Affairs Bureau chief and deputy foreign 
minister for economic affairs, is an expert on the economy. He is 
also well-versed in the political and economic situations in the 
Middle East, a region in which the bank is trying to shore up its 
operations. Nogami assumed the post this week in compliance with the 
bank's request. Nogami became vice foreign minister in 2001. He 
resigned from the post the following year due to a conflict with 
then Foreign Minister Makiko Tanaka. Afterward, he served as 
minister and then ambassador to Britain until May this year. 
 
11) Government to start discussion on land-based reconstruction 
activities in Afghanistan 
 
NIKKEI (Page 2) (Excerpts) 
June 4, 2008 
 
The government will start a full-scale discussion on land-based 
reconstruction aid in Afghanistan. Reflecting industrialized 
countries' strong awareness that stabilizing Afghanistan is 
indispensable for success in the fight against terrorism, the 
government is considering the possibility of dispatching Ground 
Self-Defense Force (GSDF) troops to Afghanistan. With an eye on the 
expiration next January of the special law to allow the Maritime 
Self-Defense Force's refueling mission in the Indian Ocean, the 
government aims to prepare more options in an effort to obtain 
support from the Democratic Party of Japan for its plan to extend 
the MSDF mission. 
 
In a speech in late May, Chief Cabinet Secretary Nobutaka Machimura 
said: "The government is about to start a discussion on the 
possibility of Japan's ground-based personnel contributions in 
Afghanistan." Set off by this, Foreign Minister Masahiko Koumura 
also said in a press conference yesterday: "The government has 
already discussed what Japan can do for Afghanistan from a broad 
point of view." 
 
Observers expect that the government will consider having GSDF 
 
TOKYO 00001519  008 OF 013 
 
 
troops provide logistic support to the International Security 
Assistance Force (ISAF) under the North Atlantic Treaty Organization 
(NATO) or provincial reconstruction teams (PRT). The government had 
previously insisted that the GSDF is not constitutionally allowed to 
take part in ISAF, which is engaged in security operations. But a 
government source said: "If activities are limited to backup support 
in noncombat areas, there will be no problem legally." 
 
Negotiations on GSDF troops' land-based activities in Afghanistan 
will unavoidably run into trouble. A new law will become necessary 
if a decision is made to dispatch GSDF troops. The government will 
be required to enact new legislation or to revise the law endorsing 
the MSDF refueling mission in the Indian Ocean. Either way, the 
government will have to engage in difficult coordination with the 
Democratic Party of Japan, which has control of the House of 
Councillors. 
 
12) China may be testing ballistic missiles in the Yellow Sea 
 
SANKEI (Top play) (Excerpts) 
June 4, 2008 
 
It was learned yesterday from intelligence analysis by the Defense 
Ministry and the U.S. Forces Japan that there is a high probability 
China's Navy in late May carried out the testing of ballistic 
missiles (SLBM), scheduled to be mounted on state-of-the-art 
submarines, in the Yellow Sea in a direction facing west toward the 
Korean Peninsula. The SLBMs that were launched appear to have been 
JL2 types now being developed. An investigation and analysis has 
begun on the details by the Defense Ministry's Intelligence 
Headquarters and other offices. 
 
According to the Defense Ministry, the missile launch was carried 
out on May 29. They were launched from a Golf-class ballistic 
missile submarine constructed for use in developing the JL2 
missiles. The JL2 missile has a range of 8,000 kilometers, placing a 
portion of the U.S. mainland under its range. Reportedly, the 
missile will be mounted on an atomic powered submarine that is the 
Chinese Navy's newest model, the 094-type. 
 
13) Japan, U.S. may review Pacific strategy 
 
SANKEI (Page 1) (Full) 
June 4, 2008 
 
China is believed to have test-launched a new submarine-launched 
ballistic missile (SLBM) in the midst of relief activities for 
Sichuan earthquake victims. This will likely have major 
repercussions not only on Japan and the United States but also on 
Taiwan and other neighbors, including India. 
 
China has now brought its new nuclear-powered submarine, which is 
called Type 094 and loaded with the Julang-2, to the island of 
Hainan, where China's South Sea Fleet is based. This is more 
evidence that clearly shows China's south-oriented strategy. 
 
On their way to Pacific waters, nuclear-powered submarines with 
China's North Sea Fleet and conventional-type submarines with its 
East Sea Fleet pass through Japan's southwestern islands, where 
Japan and the United States are conducting warning and surveillance 
activities. They could be therefore spotted easily. 
 
 
TOKYO 00001519  009 OF 013 
 
 
However, Japan and the United States are less wary of naval moves in 
the southern waters down from Hainan. It is easy to pass through the 
Bashi Channel between Taiwan and the Philippines, as the waters 
there are deep. Moreover, Hainan is also situated near the disputed 
Spratly Islets. 
 
Hainan Island is a strategic keystone that is indispensable for the 
defense of sealanes from the Indian Ocean to China's mainland 
through the Straits of Malacca. 
 
A 094-Type (Jin-class) nuclear-powered submarine loaded with 
Julang-2 missiles, if deployed to Hainan Island, could cover some 
parts of the U.S. mainland. In addition, India will be also within 
range. India is considerably wary of China's deployment of a 
Jin-class nuclear-powered submarine to Hainan Island. 
 
Jane's Intelligence Review, a British journal on military affairs, 
says the Chinese navy has tunneled a hill in Hainan Island's 
southern coastal city of Sanya to build a large underground 
submarine base. 
 
A submarine surfaces when leaving and returning to port, so it can 
be spotted by a military satellite. However, a satellite cannot 
detect underground-based submarines. The U.S. Navy and the Maritime 
Self-Defense Force, which are wary of China's naval advance into the 
Pacific Ocean, will therefore likely be urged to review their 
Pacific strategy. 
 
14) Secret pact on contingency on Korean Peninsula discovered; Prior 
consultations unnecessary for U.S. military activities 
 
ASAHI (Page 1) (Excerpts) 
June 4, 2008 
 
A book of minutes on a contingency plan for the Korean Peninsula -- 
a secret Japan-U.S. agreement -- allowing the United States to use 
U.S. bases in Japan without prior consultations with Japan in the 
event of a contingency on the peninsula has been found at the 
University of Michigan Gerald R. Ford Presidential Library. Although 
the existence of a secret pact has widely been believed from 
connected U.S. government documents, this is the first time that the 
full text of the pact has become clear. The Japanese government has 
consistently denied the existence of such a pact. 
 
The document in question is a book of minutes dated June 23, 1960, 
signed by then Foreign Minister Aiichiro Fujiyama and then U.S. 
Ambassador to Japan Douglas MacArthur II. The minutes have been 
attached to a memorandum on the use of U.S. bases in Japan in the 
event of a contingency on the Korean Peninsula in 1974, in the 
closing days of the Nixon administration. They appear to be 
documents handed down to the incoming Ford administration. They were 
declassified in March 2005. Nagoya University Graduate School 
Professor Mikio Haruna obtained copies of the documents at the 
presidential library in late February this year. 
 
The minutes consist of two pages of statements made by Fujiyama and 
MacArthur at the Japan-U.S. Security Consultative Committee 
preparatory meeting held on June 23, 1960. Regarding exceptional 
measures in an emergency situation resulting from an attack on UN 
troops in South Korea, Fujiyama, while prefacing that he was 
commissioned by then Prime Minister Kishi, stated the Japanese 
government's view that (the United States) was allowed to use 
 
TOKYO 00001519  010 OF 013 
 
 
facilities and areas in Japan for military operations that must be 
carried out immediately. The minutes were signed by Fujiyama and 
MacArthur. 
 
The full text of the minutes is attached to the 1974 memorandum that 
says, "This is to allow U.S. forces in Japan to embark on military 
operations without prior consultations with the Japanese government 
in the event of a contingency on the Korean Peninsula." (The United 
States) was considering whether to obtain approval from Japan for an 
extension of the minutes. 
 
Comment by University of the Ryukyus Professor Masaaki Gabe: The 
documents have probably been declassified because given the Law on 
Situations in Areas Surrounding Japan, there is no longer a need for 
the secret pact. From what was discussed between Japan and the 
United States back then, it is clear that to the United States, the 
largest objective of U.S. bases in Japan was directly linked to a 
contingency on the Korean Peninsula. 
 
15) Government decides to include emissions trading scheme in 
"Fukuda Vision" of global warming measures: Steel, power companies 
conditionally agree 
 
NIKKEI (Top Play) (Abridged slightly) 
June 4, 2008 
 
The government has decided to include in the "Fukuda Vision" of 
global warming measures to be mapped out in mid-June a policy of 
incorporating a plan to consider adopting an emissions trading 
system applied to domestic emissions of greenhouse gases. The move 
is due to leading steel and power companies, including Nippon Steel 
and TEPCO, having switched their stance to conditionally accepting 
the introduction of the system. The government also plans to come up 
with a long-term goal of cutting domestic emissions by 60 PERCENT 
to 80 PERCENT  by 2050. The next focus of attention will be how to 
map out a mid-term goal covering the 2020-2030 period. 
 
Still opposition to mandatory emissions cuts 
 
The Fukuda Vision is aimed at underscoring Japan's stance of 
tackling the creation of a post-Kyoto Protocol framework for 
emissions cuts starting in 2010 in the run-up to the G-8 to be held 
in Hokkaido in July. 
 
The steel industry is Japan's largest emitter, accounting for about 
10 PERCENT  of domestic carbon emissions. It has thus far been 
opposing the adoption of emissions trading, noting that if such a 
system is adopted, production would be increasingly transferred 
abroad, causing a decline in the Japanese steel industry's 
international competitiveness and putting a dent in domestic 
employment. The power industry has also pointed out that the 
adoption of the system would make it difficult for it to make 
capital investment from a long-term perspective. 
 
Nippon Steel will start full-fledged talks with the government on 
the creation of a system and when to adopt it through the Japan Iron 
and Steel Federation and power companies through the Federation of 
Electric Power Companies of Japan. Both industries are strongly 
opposed to the government setting mandatory emissions quotas. They 
intend to seek the flexible imposition of emissions quotas that 
reflect emissions reduction efforts by manufacturers. 
 
 
TOKYO 00001519  011 OF 013 
 
 
Prime Minister Yasuo Fukuda on May 21 indicated eagerness to adopt 
an emissions trading scheme, noting, "Such a system will become 
necessary over the next five to ten years." 
 
16) Opposition camp is hurrying to adopt bill scrapping the medical 
system for the elderly over 75 
 
ASAHI (Page 4) (Excerpt) 
June 4, 2008 
 
With the Diet session soon to close, maneuvering between the ruling 
and opposition camps has been intensifying. The four opposition 
parties, which have agreed to scrap the system of medical services 
set up for the elderly over 75, are planning to heighten their 
attacks on the ruling parties, with the possibility of filing a 
censure motion against the prime minister in mind. Meanwhile, the 
ruling parties, concerned that it is losing popular support, is 
rushing to revise the controversial system. 
 
17) DPJ likely to forgo submitting censure motion against prime 
minister to current Diet session 
 
NIKKEI (Page 2) (Full) 
June 4, 2008 
 
The view gained ground yesterday in the main opposition Democratic 
Party of Japan (DPJ) that the party should forgo plans to submit to 
the House of Councillors a censure motion against Prime Minister 
Yasuo Fukuda during the current Diet session. The reason is that it 
does not appear likely that the DPJ will be able to force a 
dissolution of the House of Representatives and a snap election, 
because a censure motion has no binding force. A senior party member 
clearly stated yesterday: "A motion should not be submitted." The 
prevailing view in the party is that a censure motion should be 
saved until an extraordinary session of the Diet. 
 
Since some in the party advocate taking a hard line, the DPJ 
leadership will make a final decision after seeing the public 
response to the new health insurance scheme for those aged 75 or 
older, as well as the prime minister's stance in a party-head debate 
on June 11. 
 
President Ichiro Ozawa stated in a press meeting yesterday in Sendai 
City: "Depending on the circumstances, the party leadership will 
make a decision." 
 
18) Ozawa says DPJ will oppose consumption tax hike in Lower House 
election 
 
SANKEI (Page 5) (Full) 
June 4, 2008 
 
When asked about his party's position on a consumption tax hike 
issue at a press conference in the city of Sendai, Democratic Party 
of Japan (DPJ) President Ichiro Ozawa stated yesterday: 
 
"What should be done at first are to end the waste of tax money and 
to slim down the corrupted government offices. Otherwise, we won't 
be able to get public understanding for the tax systems. By strictly 
eliminating the waste of tax money, the state will have huge 
financial resources for the time being. We will play this up in the 
next House of Representatives election." 
 
TOKYO 00001519  012 OF 013 
 
 
 
Ozawa indicated that the largest opposition party would incorporate 
its position of opposing a consumption tax increase and of keeping 
the present tax rate as is in its manifesto (a set of campaign 
pledges) for the next Lower House election similar to what it did in 
last year's House of Councillors election. 
 
He emphasized that the DPJ would push ahead with measures to slim 
down the government offices by shedding light on how tax money has 
been wasted, and by providing local governments with government 
subsidies in a lump sum, and that the party would implement 
decentralization before raising taxes. 
 
In a meeting to exchange views with residents in Sendai City, which 
took place before the press conference, Ozawa said: "When money is 
lacking even after making efforts to putting an end to a waste of 
money, we will then ask the public about a consumption tax hike." 
 
19) DPJ President Ozawa resumes stumping nationwide 
 
YOMIURI (Page 4) (Full) 
June 4, 2008 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa has resumed 
his nationwide stumping tour for the next House of Representatives 
election, visiting yesterday Miyagi Prefecture. He plans to visit 12 
prefectures, including Niigata and Fukuoka, in about a month, ending 
his tour on July 1. He is expected to exchange views there with 
senior members of regional chapters of Rengo (Japan Trade Union 
Confederation). While many in the ruling parties are now in favor of 
putting off a Lower House election, it seems Ozawa is still trying 
to force an early dissolution of the Lower House. 
 
Holding yesterday a meeting with elderly people in Sendai, Ozawa 
there played up his party's policy, saying: "Without a consumption 
tax hike, we will be able to survive for the time being if (the 
government offices) stop wasting money." He afterwards held a press 
conference in the city, in which he said: 
 
"Our target is to win a majority of the single-seat constituencies 
of all the prefectures. (There are a total of 25 single-seat 
districts.) We want to secure more than 13 seats in the Tohoku 
region." 
 
The DPJ will hold its party leadership race in September. Some in 
the party view that Ozawa is fretting about strengthening his 
political footing for a third term by stumping local areas. 
 
20) 21st Century Ad Hoc Council for Promotion of Administrative 
Reform urges political parties to map out manifesto at early date - 
proposal for realizing election for voters to choose LDP or DPJ 
 
SANKEI (Page 5) (Full) 
June 4, 2008 
 
The National Council to Create a New Japan (joined by 21st Century 
Ad Hoc Council for Promotion of Administrative Reform Co-Chairman 
Takeshi Sasaki, former President of Tokyo University, Masaru Nishio, 
executive director of the Tokyo Institute for Municipal Research, 
and others) yesterday released a set of emergency proposals 
regarding the current party politics. The report seeks political 
parties to formulate a manifesto for the next Lower House election 
 
TOKYO 00001519  013 OF 013 
 
 
at an early date. 
 
The set of proposals stresses the need for an election for voters to 
choose whether it will be the Liberal Democratic Party (LDP) or the 
Democratic Party of Japan (DPJ or Minshuto), based on policy debate, 
saying that with the emergence of various challenges, such as social 
security and environmental issues, the stage in which (the LDP) can 
manage the administration, emboldened by its victory in the postal 
privatization election in 2005 is over. The panel notes in the 
report that it expects various political parties will deepen their 
shared perception and intraparty discussion through the Sentaku (the 
word has a double meaning -- 'choice' and 'cleaning up')  Lawmakers 
Federation," a suprapartisan organization teamed up with the 
"Sentaku," a national movement organization under the 21st Century 
Ad Hoc Council. The report also includes a plan to host a manifesto 
formulation promotion rally between October and November this year, 
inviting responsible persons from various political parties.  The 
report also says that a full-fledged policy discussion will be 
necessary for the DPJ presidential election slated for September, as 
it is a venue where the DPJ's candidate for the premiership is 
finally decided, adding that it is ready to host a debate session 
joined by candidates for the premiership from all political 
parties. 
 
21) Farm policy clique in the Diet blasts Chief Cabinet Secretary 
Machimura for calling for revision of rice acreage reduction 
program 
 
SANKEI (Page 5) (Full) 
June 4, 2008 
 
Chief Cabinet Secretary Nobutaka Machimura in a speech on May 31 
noted, "It is a waste for Japan to adopt a farm acreage reduction 
policy when some countries are suffering from food shortages. Japan 
might be able to help ease the sharp rise in food prices in the 
world if it revises its acreage reduction policy." This statement 
has created quite a stir. 
 
The Liberal Democratic Party (LDP) agricultural policy clique has 
lashed out fiercely at Machimura's statement.  Former Secretary 
General Koichi Kato blasted Machimura's proposal: "His idea is for 
Japan to send rice abroad as aid. It is a proposal like a household 
receiving social welfare payments donating 100,000 yen to a 
community festival." Former Secretary General Tsutomu Takebe during 
the party officers' liaison council meeting also criticized 
Machimura's statement, saying, "I want him to be cautious when he 
makes such a statement, because rice prices could plummet as a 
result." Secretary General Bunmei Ibuki during a press conference 
the same day complained: "His proposal may be correct over the long 
term. However, if it creates a misperception that it is a short-term 
policy, agricultural policy would be undermined." 
 
Following those critical remarks, Machimura during a press briefing 
the same day explained, "I did not say that the acreage reduction 
policy should be revised this year." 
 
SCHIEFFER