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COMNAVFORJAPAN YOKOSUKA JA
CTF 72
AMCONSUL NAHA 
AMCONSUL FUKUOKA 
AMCONSUL OSAKA KOBE 
AMCONSUL NAGOYA 
AMCONSUL SAPPORO 
AMEMBASSY BEIJING 
AMEMBASSY SEOUL 
USMISSION USUN NEW YORK

UNCLAS TOKYO 001526 
 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 06/04/08 
 
 
INDEX: 
 
(1) DPJ coordinating with three other opposition parties on censure 
motion against prime minister, depending on ruling bloc's response 
to bill scrapping the medical system for elderly (Sankei) 
 
(2) "We have various pieces of information," says Chief Cabinet 
Secretary Machimura concerning Chinese Navy's test-firing of SLBM 
(Sankei) 
 
(3) Fiscal Affairs Council underscores importance of fiscal 
reconstruction: Fiscal System Council calls for discussion on 
consumption tax in fall (Tokyo Shimbun) 
 
(4) Japan's additional food aid reflects major importer's sense of 
alarm about global food shortage (Tokyo Shimbun) 
 
(5) Fukuda's four-nation tour designed to get acquainted with 
European leaders to make G8 Summit a success (Yomiuri) 
 
(6) DPJ may field Kazumi Ota for Tokyo No. 12 district (Sankei) 
 
(7) Ruling coalition to approve use of weapons in protective action 
under permanent legislation (Tokyo Shimbun) 
 
(8) JICA, MOFA considering introducing qualification system for 
"international collaborators" (Tokyo Shimbun) 
 
(9) Is a Cabinet shuffle golden remedy or a poison pill? (Asahi) 
 
(10) Reporters' monthly report: Prime Minister Fukuda often meets 
with ruling coalition members (Tokyo Shimbun) 
 
ARTICLES: 
 
(1) DPJ coordinating with three other opposition parties on censure 
motion against prime minister, depending on ruling bloc's response 
to bill scrapping the medical system for elderly 
 
SANKEI ONLINE NEWS (Full) 
June 4, 2008, 12:45 
 
The major opposition Democratic Party of Japan's (DPJ) President 
Ichiro Ozawa and other leaders this morning held an executives' 
meeting at party headquarters and confirmed a plan to get the four 
opposition party-sponsored bill intended for scrapping the 
controversial medical system for the elderly through the Upper House 
on June 6 and then demand that the ruling bloc adopt the bill in the 
Lower House by the end of the current session of the Diet, which is 
to close on June 15. They also decided to hold a meeting of 
secretaries general from the four opposition parties possibly by the 
end of the day to discuss whether to decide to submit a censure 
motion against Prime Minister Yasuo Fukuda if the ruling bloc 
rejects the opposition bloc's plan, and push coordination of views 
among the opposition parties. 
 
After the executives' meeting, the DPJ's Diet Affairs Committee 
Chair Kenji Yamaoka told reporters in a firm tone: "If (the 
government and the ruling parties) decide to carry over the bill 
aimed at scrapping the current medical system for the elderly to the 
next Diet session and refuses to scrap that system, is it all right 
for us to allow them to do so? Scrapping that system is the highest 
 
priority task for the public." 
 
(2) "We have various pieces of information," says Chief Cabinet 
Secretary Machimura concerning Chinese Navy's test-firing of SLBM 
 
Sankei on-line 
June 4, 2008, 11:57 
 
Referring to the strong possibility of the Chinese Navy having 
test-fired in the Yellow Sea in late May a submarine-launched 
ballistic missile (SLBM) slated to be fitted to its state-of-the-art 
submarine, Chief Cabinet Secretary Nobutaka Machimura during a press 
briefing on the morning of June 4 stated, "The government is always 
trying to collect and analyze information on such a military 
movement. It has various pieces of information." However, he stopped 
short of making a categorical statement, simply saying, "I would 
like to refrain from making any comment on individual pieces of 
information, judging from the nature of the matter." 
 
(3) Fiscal Affairs Council underscores importance of fiscal 
reconstruction: Fiscal System Council calls for discussion on 
consumption tax in fall 
 
TOKYO SHIMBUN (Page 1) (Full) 
June 4, 2008 
 
The Fiscal System Council reporting to the finance minister 
yesterday submitted a letter of proposals concerning the compilation 
of the fiscal 2009 budget to Finance Minister Fukushiro Nukaga. The 
letter stresses the importance of fiscal reconstruction, noting that 
it is necessary to firmly maintain the basic policy guidelines on 
economic and fiscal management and structural reforms for the fiscal 
2006 national budget, which stipulates that reform should be 
promoted with strengthened growth potential and fiscal soundness as 
the two wheels of a cart. 
 
On the expenditure front, the letter points out that spending reform 
in such areas as social security and local finances should be 
strictly enforced. Regarding the revenue front, it notes that it is 
necessary to secure stable fiscal resources instead of depending on 
temporary fiscal resources. To that end, the letter indicates the 
stand that it is necessary to realize at an early date drastic 
reform of the tax code, including the consumption tax, instead of 
depending on so-called hidden slush funds, such as reserve funds in 
special accounts. 
 
Chairman Taizo Nishimura during a press conference after the meeting 
said that by revenue reform at an early date, the panel meant reform 
should be carried out during the next budget deliberations. He thus 
indicated the stand that discussion of reform of the consumption tax 
should be held this fall. 
 
Regarding individual areas, the report proposes a revision of the 
current system of state contribution to pension insurance, including 
a possible abolition. Concerning nursing-care insurance, too, it 
calls on the government to make efforts to hold down spending, 
citing that high growth in payouts is continuing. 
 
On the education front, the report points out that a goal should be 
set in terms of results to be produced, instead of input, such as a 
budgetary amount. 
 
The panel's proposal regarding official development assistance (ODA) 
is that the budgetary amount should be constrained, while project 
volume being secured through such efforts as to cut costs. 
 
Concerning local finances, the panel is of the opinion that a local 
tax code centered on taxes causing less imbalances among local 
municipalities should be adopted, noting that it would be possible 
to create a system that can improve local taxes and correct income 
disparity as sought by local governments, if local tax taxes are 
increased and revenues from such taxes are distributed, based on 
objective standards, such as populations, as is the case of the 
local consumption tax or a local transfer tax. 
 
(4) Japan's additional food aid reflects major importer's sense of 
alarm about global food shortage 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 4, 2008 
 
In a speech Prime Minister Yasuo Fukuda delivered on June 3 at a 
United Nations' food summit, he revealed Japan's plan to offer 
additional emergency aid to developing countries. This policy 
decision also reflects Japan's sense of alarm toward the recent 
global food shortage from the standpoint of being a major food 
importer. 
 
In a study meeting held at the Prime Minister's Office ahead of the 
food summit, Fukuda instructed the participants to give priority to 
what Japan, as a food importer, can do" in drafting the prime 
minister's speech for the food summit. 
 
Japan has imported about 770,000 tons of rice annually under the 
minimum access requirement. The volume of imported rice in stock (as 
of the end of last October) was 1.52 million tons. The government 
plans to release such rice to developing countries facing 
difficulties in procuring rice on international markets due to 
soaring prices. The imported rice should be consumed in the nation 
in principle, but the government has decided to ship such rice to 
the Philippines from a humanitarian point of view and as an 
emergency measure to curb skyrocketing international prices. 
 
A senior Foreign Ministry official said that the food issue 
"complicatedly involves a variety of factors. This is not such a 
simple question as industrialized countries just extending 
assistance to developing countries." 
 
In actuality, the steep rise in grain prices has pushed up food 
prices. In the speech he delivered at the food summit, Fukuda 
referred to the need for Japan to raise its food self-sufficiency, 
but it is also true that Japan is being pressed to improve its 
structure of depending on imports for most of its non-rice grain. 
Recently, public attention is being focused on the "food mileage" 
index to gauge the amount of carbon dioxide (CO2) discharged in the 
process of transporting foodstuffs. The amount is calculated by 
multiplying the volume of transported goods by the transport 
distance. Japan's total amount is about three times larger than that 
of the U.S. and about five times more than those of Britain and 
Germany. 
 
Japan has given off such a large volume of CO2 in the air in order 
to supply food to its people, bringing about climate change and a 
food crisis to the poorest nations. Critics point out that Japan, 
 
whose food self-sufficiency has dropped to below 40 PERCENT , has 
also exacerbated global warming. 
 
Such a severe situation surrounding Japan is represented in the 
following words used by the prime minister in his speech: "I am 
feeling a sense of urgency." 
 
(5) Fukuda's four-nation tour designed to get acquainted with 
European leaders to make G8 Summit a success 
 
YOMIURI (Page 3) (Excerpts) 
June 4, 2008 
 
Prime Minister Yasuo Fukuda, now on a European tour, has held talks 
in succession with leaders of Germany, Britain, France and Italy. 
Fukuda, who will chair this year's Group of Eight Lake Toya Summit 
which is only one month away, has now met with all the leaders of 
the G8 member countries except Canada. Although Fukuda has paved the 
way for the G8 Summit, there still remain huge gaps among the G8 
countries over climate change, especially their measures to cut 
greenhouse gas emissions. There are a plethora of tasks that must be 
addressed. 
 
On the morning of June 3, or the evening of June 3, Japan time, 
Fukuda delivered a speech at the UN Food Summit in Rome, concluding 
it with his enthusiasm for the G8 Summit. 
 
Fukuda initially planned to make a European tour during the Golden 
Week holiday period from late April through early May. But it was 
called off as a result of giving priority to measures for the 
divided Diet. Since becoming prime minister last September, Fukuda 
had meetings only with the U.S. and Russian presidents of the G8 
leaders. He was keenly aware of the need to have get-acquainted 
sessions with other leaders ahead of the G8 Summit. 
 
It was not easy to set up events for Fukuda's long-awaited European 
tour. A Foreign Ministry source said: "There was no other option but 
to hold a Fukuda-Merkel meeting on Sunday. Berlin was slow to give a 
nod to it, saying, 'We will welcome Prime Minister Fukuda but not on 
Sunday.'" Apparently in consideration of such circumstances, Fukuda 
expressed his gratitude in a press conference after his meeting with 
Merkel on June 1, saying: "German people work hard even on Sundays. 
I am grateful for their consideration." 
 
In his talks with G8 counterparts, Fukuda clearly expressed his 
enthusiasm as the chair of this year's summit. 
 
Touching on climate change in the joint press conference with 
Merkel, Fukuda said: "Japan would like to clarify its policy before 
the Summit, including its thinking about setting midterm targets 
(greenhouse gas emission reduction targets between 2020 and 2030)." 
 
Many industrial circles are reluctant to set midterm targets at an 
early time. 
 
Among the G8, the European Union, which is calling for a 20 PERCENT 
cut, is at odds with the United States, which is opposed to setting 
compulsory midterm targets for reducing emissions. A senior Economy, 
Trade and Industry Ministry official took this view: "If Japan 
presents a midterm target, that would make it difficult to handle 
the matter as the coordinator." 
 
Meanwhile, most of European leaders did not react positively to 
Japan's sector-by-sector approach. British Prime Minister Gordon 
Brown on June 2 urged Japan to join the emissions trading scheme. In 
response, Prime Minister Fukuda simply indicated that Japan would 
consider it. Although Fukuda seems to hold a positive view about 
emissions trading, he apparently gave heed to such industries as 
iron and steel and power in Japan. Difficulty ironing out views in 
Japan and abroad has now become apparent ahead of the G8 Summit. 
 
Under the divided Diet in which the opposition parties have control 
of the Upper House, the prime minister is facing difficulties in 
steering Diet businesses. Coming under public criticism over the 
reinstated provisional gasoline tax rate and the healthcare system 
for the elderly, he is struggling with sagging support ratings as 
well. 
 
Given the situation, the prime minister is desperate to boost his 
administration on the diplomatic front by making the G8 Summit a 
success following the fourth Tokyo International Conference on 
African Development (TICAD IV) held in late May. Such a sense of 
crisis was evident from his jam-packed European tour. 
 
(6) DPJ may field Kazumi Ota for Tokyo No. 12 district 
 
SANKEI (Page 5) (Full) 
June 4, 2008 
 
It was once rumored that Ichiro Ozawa, president of the major 
opposition Democratic Party of Japan, would run for the Tokyo No. 12 
district in the next Lower House election, leaving his old 
constituency. This time around, a plan has cropped up in the DPJ to 
field Kazumi Ota, who won the Lower House by-election for Chiba 
Prefecture's No. 7 district in 2006, for the Tokyo No. 12 
constituency. A DPJ executive said yesterday, "It has not been 
decided yet. (The Tokyo No. 12 district) is left to President Ozawa. 
Such (fielding Ota) is possible." 
 
The Tokyo No. 12 district is currently represented by Akihiro Ota, 
head of the New Komeito. If the plan materializes, 28-year-old 
Kazumi Ota, the youngest among the Lower House members along with 
Taizo Sugimura of the Liberal Democratic Party, would vie for the 
seat with the veteran New Komeito head. 
 
The DPJ intends to confuse New Komeito supporters by fielding a 
person with the same family name (as New Komeito's Ota), according 
to a person connected with the DPJ. It can said to be another DPJ 
tactic to apply pressure on the New Komeito, following the rumor 
about Ozawa's switching constituencies. 
 
In the process of coordinating candidates last December, the DPJ 
officially decided to field Akira Uchiyama of the Southern Kanto 
proportional representation bloc for the Chiba No. 7 district. Ozawa 
commented about Ota: "She is going to play a major role in a new 
constituency." 
 
(7) Ruling coalition to approve use of weapons in protective action 
under permanent legislation 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 4, 2008 
 
In discussing permanent legislation to enable Self-Defense Force 
 
(SDF) personnel to be dispatched overseas as needed, the ruling 
coalition decided yesterday to allow SDF troops to take some 
protective action involving the use of weapons in self-defense if 
they are attacked by criminal groups or terrorists. This measure 
will be included in a draft plan to be released by the ruling camp's 
project team on permanent law by the end of this month. 
 
The items subject to SDF guarding include personnel from other 
countries and United Nations members participating in peacekeeping 
operations, Japanese living overseas, and goods and facilities 
designated by the UN. 
 
SDF overseas missions are currently limited to (1) ceasefire 
monitoring; (2) humanitarian aid; and (3) logistic support. 
Guarding, security activities, and ship inspections are not included 
in the list. 
 
(8) JICA, MOFA considering introducing qualification system for 
"international collaborators" 
 
TOKYO SHIMBUN (Page 3) (Full) 
June 4, 2008 
 
The Japan International Cooperation Agency (JICA) and the Ministry 
of Foreign Affairs (MOFA) are considering establishing a 
qualification system for "international collaborators" to give 
credentials to those who took part in, for instance, the Japan 
Overseas Cooperation Volunteers (JOCV). They plan to back up those 
participants by establishing a qualification system so that they 
will be given a qualification for their participation in the JOCV in 
developing countries with the aim of their receiving a favorable 
evaluation in the job market or at their workplaces. 
 
Under the qualification system, a certification examination will be 
conducted to see whether applicants have a certain level of 
linguistic skills, as well as technical skills in the area of 
cooperation. Whether activities in nongovernmental organizations 
will be viewed as one of the activities required for certification 
will also be discussed.  A MOFA official noted in this context: "The 
idea has yet to take shape. We need to flesh it out." 
 
JICA will make a fresh start as a new organization to implement 
official development assistance by integrating the Japan Bank for 
International Cooperation's (JBIC) yen-loan sector and a part of 
MOFA's grant aid projects. Establishing a qualification for 
international collaborators is likely to help strengthen the 
functions of JICA. 
 
(9) Is a Cabinet shuffle golden remedy or a poison pill? 
 
ASAHI (Page 4) (Full) 
June 3, 2008 
 
With the government and ruling parties started looking into 
convening an extraordinary session of the Diet in late August, the 
view has become stronger that in order to seriously tackle the 
issues facing his administration, Prime Minister Yasuo Fukuda will 
likely shuffle his cabinet soon after the end of the Group of Eight 
summit in July in Hokkaido. However, since there have been cases in 
which a new cabinet was hit by scandals, a shuffle could turn out to 
be a double-edged sword. 
 
Growing calls for July cabinet shuffle to boost the administration's 
popularity 
 
One of the reasons for convening the extra session earlier than 
usual is to secure sufficient time so that the House of 
Representatives will be able to hold a revote on a bill amending the 
refueling mission special measures law (after the House of 
Councillors rejects the bill). Given an agreement between the ruling 
camp and the main opposition Democratic Party of Japan (DPJ) on a 
revised bill to reform the public servant system, the DPJ may 
cooperate on such bills as the one to establish a Consumer Agency, 
which has the strong policy imprint of the prime minister, according 
to a senior Liberal Democratic Party (LDP) Diet Affairs Committee 
member. To that end, the government and ruling coalition want to 
secure sufficient time for deliberations. 
 
In order to thoroughly deliberate bills with a strong Fukuda-policy 
image, it is better for the prime minister to pick his own cabinet 
members. This is one reason for the growing number of calls for a 
cabinet shuffle before the opening of the extra Diet session. Of the 
current cabine, only two -- Kisaburo Tokai, minister of education, 
culture, sports, and science and technology, and Shigeru Ishiba, 
defense minister -- were picked by Fukuda himself. A shuffle of the 
cabinet therefore can be seen as a trump card to boost the 
popularity of the Fukuda administration, which has suffered from 
declining support rates in the polls. 
 
The prevailing view is that the cabinet should be shuffled in the 
second half of July, according to a former cabinet member. This 
means that Fukuda would carry out the shuffle after he wraps up the 
G8 Summit. 
 
Former LDP Secretary General Taku Yamasaki stressed: 
 
"A cabinet shuffle should be carried out soon after the G8 summit. I 
cannot call the present cabinet the Fukuda cabinet. In order to 
implement his own policies, Mr. Fukuda should form his own 
cabinet." 
 
One of the LDP executive members pointed out: "A cabinet shakeup is 
a less expensive measure to boost cabinet support rates." A senior 
New Komeito member expressed expectations, saying: "I want new 
cabinet ministers to compile budgetary requests for next fiscal year 
in late August and I want them to boost the government's 
popularity." 
 
If a new cabinet comes into being by late July, the new cabinet 
ministers will be able to attend the extra session after studying 
their duties for about one month. It is good for them to be involved 
in budgetary compilation from the process of budgetary requests. 
 
In the ruling camp, however, there is a cautious view toward an 
early cabinet shuffle, as well. Another former cabinet member has 
called for convening the extra session in mid-September, noting: 
"Because the opposition camp opposes the refueling mission bill, 
three days are enough for deliberations on the legislation in the 
Lower House." This is because a longer term of a session would be 
disadvantageous for Fukuda because he would be grilled many times in 
a prolonged Diet session. So, a cabinet shuffle will likely be 
carried out in September. 
 
In September, the DPJ is expected to hold its presidential election. 
 
Another view is that there is no need for hurriedly convening the 
extra Diet session because there is a possibility that if the LDP 
holds the party leadership race while the Diet is in session, a 
political cease-fire will occur. 
 
 With expectation of boosting Fukuda government's popularity, calls 
for July cabinet shuffle growing 
 
A cabinet shuffle not only boosts the cohesion of the administration 
but also carries risks leading to discovery of scandals involving 
new cabinet members. In the Abe cabinet, a series of scandals 
involving new cabinet members were discovered immediately after the 
cabinet was shuffled and they put an end to the Abe administration. 
If Fukuda makes a mistake in picking new ministers, the Fukuda 
cabinet may fall into the same rut. 
 
In an attempt to boost the approval ratings for the Fukuda cabinet, 
Secretary General Bunmei Ibuki said: "The prime minister should 
appoint female lawmakers or private-sector persons as new cabinet 
members." Since former prime ministers Junichiro Koizumi and Shinzo 
Abe picked their cabinet members on their own style called 
"single-rod-fishing," there are many mid-level LDP lawmakers waiting 
for cabinet posts. If they are not given minister posts, 
dissatisfaction could only grow in the party. 
 
If Fukuda fails in a cabinet shuffle, he will lose everything. A 
senior LDP member quipped: "The prime minister should be 
thoughtful." However, Prime Minister Fukuda himself has not 
mentioned anything about a cabinet shuffle. 
 
(10) Reporters' monthly report: Prime Minister Fukuda often meets 
with ruling coalition members 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 1, 2008 
 
With an eye on future political realignment, ruling and opposition 
Diet members recently have been often holding meetings at nights. 
Prime Minister Yasuo Fukuda, too, resumed meeting with senior 
members of the ruling parties soon after turning the corner in 
converting tax revenues currently earmarked for road maintenance and 
construction into general spen