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UNCLAS SECTION 01 OF 11 TOKYO 001613 
 
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 06/13/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Diet turmoil: 
4) Lower chamber passes motion backing Prime Minister Fukuda and his 
cabinet  (Yomiuri) 
5) Prime Minister Fukuda determined to stay on  (Yomiuri) 
 
North Korea problem: 
6) North Korea possibly makes new proposal over abduction issue 
(Mainichi) 
7) Japan, North Korea hold in-depth talks over pending issues 
(Asahi) 
8) Japan asks G-8 members for cooperation on abduction issue 
(Nikkei) 
9) Ex-PM Abe calls for tough policy toward North Korea  (Asahi) 
 
Rice, Koumura meet in Paris: 
10) Secretary of State Rice, Foreign Minister Koumura vow close 
cooperation over abduction issues  (Tokyo Shimbun) 
11) Foreign Minister Koumura hints at easing sanctions if there is 
progress on abduction issue  (Nikkei) 
 
In the run-up to G-8 Toyako summit: 
12) G-8 finance ministerial to open today in Osaka  (Mainichi) 
13) Justice Minister Hatoyama in meeting with Attorney General 
Mukasey vows to prohibit child porn  (Asahi) 
 
SDF missions: 
14) Prime Minister Fukuda eyes extending MSDF mission in Indian 
Ocean  (Yomiuri) 
15) ASDF pullout from Iraq likely within this year: LDP executive 
(Mainichi) 
 
Japan-Australia ties: 
16) Prime Minister Fukuda, Australian Prime Minister Rudd reaffirm 
trilateral security cooperation setup including U.S.  (Nikkei) 
 
Afghan reconstruction: 
17) Japan pledges 62.2 billion yen in additional aid to Afghanistan 
(Yomiuri) 
 
Political & economic topics: 
18) Ex-LDP Secretary General Nakagawa, his colleagues propose 
raising the ratio of immigrants in Japan to 10 PERCENT  over the 
next 50 years  (Tokyo Shimbun) 
19) Tokyo downbeat on economy  (Mainichi) 
20) Action program for low-carbon society: Government clarifies in 
draft basic policy guidelines for 2008 (Mainichi) 
 
Fallout from fishing boat sinking: 
21) Senkakus issue rekindled in Taiwan, President Ma claims 
territorial rights  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
 
TOKYO 00001613  002 OF 011 
 
 
Government panel advises government to modify constrained social 
security, implies need to increase government's burden 
 
Mainichi: 
DPRK comes up with new proposal on abduction issue? 
 
Yomiuri, Sankei & Tokyo Shimbun: 
NHK "comfort women" ruling rejected by Supreme Court 
 
Nikkei: 
Abu Dhabi's SWF to invest in Japan's special zone for medical 
services 
 
Akahata: 
Debate on bill intended to scrap new healthcare plan for the elderly 
will not begin in Lower House with DPJ and other parties boycotting 
Diet debate; JCP making efforts to scrap the plan 
 
2) EDITORIALS 
 
Asahi: 
(1) NHK's self-discipline required with Supreme Court's rejection of 
damages suit against NHK 
(2) Medical services for the elderly: Need to relieve the elderly 
 
Mainichi: 
(1) Supreme Court ruling favoring NHK places emphasis on freedom of 
media 
(2) Proposals by LDP's panel: What to do about burden increase in 
basic pension? 
 
Yomiuri: 
(1) Supreme Court's ruling favoring NHK appropriate 
(2) DNA analysis may be useful to deal with stateless children 
 
Nikkei: 
(1) Revision plan for the medical services for the elderly lacks 
financial support 
(2) Supreme Court attaches importance to freedom of editing 
 
Sankei: 
(1) Comfort women lawsuit: NHK and Asahi need to reconsider their 
articles and programs 
(2) Large disasters: Self-help efforts, cooperation, public help 
essential 
 
Tokyo Shimbun: 
(1) NHK should be free from politics 
(2) Medical accident caused by drip infusion: Quicker action 
necessary 
 
Akahata: 
(1) Revision plan for medical services for the elderly still treats 
the elderly as a burden 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 12 
 
NIKKEI (Page 2) (Full) 
June 13, 2008 
 
 
TOKYO 00001613  003 OF 011 
 
 
09:40 
Met at the Kantei with LDP Policy Research Council Chairman Tanigaki 
and Fiscal Reform Council Chairman Yosano and others. Tanigaki 
stayed on, joined in by Special Committee to Revitalize Japan 
Chairman Nemoto and others. 
 
10:03 
Met Chinese Ambassador to Japan Cui Tiankai, Hyogo Earthquake 
Memorial 21st Century Research Organization Chief Director Kaihara 
and others. 
 
10:21 
Attended the inaugural meeting of the parliamentary league to 
promote cereals, held at LDP headquarters. 
 
10:59 
Held talks with Prime Minister Rudd of Australia. 
 
11:55 
Held a joint press conference. 
 
12:13 
Hosted a luncheon meeting. 
 
13:03 
Attended a Lower House plenary session. 
 
14:04 
Met Chief Cabinet Secretary Machimura at the Kantei. 
 
15:32 
Attended a government, ruling party council meeting on a review of 
the medical insurance system for people 75 and older. Afterward, met 
Regulatory Reform Ministry of Consumer Affairs Kishida in the 
presence of Machimura and Deputy Chief Cabinet Secretary Futahashi. 
 
16:41 
Met former Prime Minister Mori, LDP Committee to Strengthen 
Diplomatic Power Secretary General Motegi and others. 
 
17:21 
Attended a National Council on Social Security meeting. 
 
19:13 
Dined at a Chinese restaurant in Kudankita with LDP Secretary 
General Ibuki, General Council Chairman Nikai, Diet Affairs 
Committee Chairman Oshima, Machimura, and others. 
 
20:47 
Returned to his official residence. 
 
4) Lower House passes confidence motion for Fukuda 
 
YOMIURI (Page 2) (Full) 
June 13, 2008 
 
The Lower House in its plenary session yesterday approved a 
confidence motion for the Fukuda cabinet, jointly submitted by the 
ruling Liberal Democratic Party (LDP) and its junior coalition 
partner New Komeito under Article 69 of the Constitution, by a 
majority of votes from those two parties and others. Three 
opposition parties - the Democratic Party of Japan (DPJ), the Social 
 
TOKYO 00001613  004 OF 011 
 
 
Democratic Party (SDP), and the People's New Party (PNP) - abstained 
from voting, but the Japanese Communist Party (JCP) attended the 
session and voted against the motion. 
 
This was the second time for a confidence motion in the cabinet to 
be approved, following the one for the Miyazawa cabinet in 1992. 
 
The ruling parties plan to decide at a Lower House plenary session 
today to extend the current session of the Diet for six days through 
June 21 in order to secure the time necessary for automatic approval 
of an economic partnership agreement with ASEAN. 
 
The DPJ and some opposition parties plan to boycott deliberations 
during the current Diet session as a censure motion against the 
prime minister was approved in the Upper House on June 11. The 
current Diet session has in effect closed. 
 
5) Prime Minister Fukuda determined to continue steering 
administration 
 
YOMIURI (Page 4) (Full) 
June 13, 2008 
 
Prime Minister Yasuo Fukuda dined last night with Liberal Democratic 
Party (LDP) Secretary General Bunmei Ibuki and some LDP General 
Council members in a Chinese restaurant in Tokyo. According to 
participants, Fukuda showed his determination to continue steering 
his administration, saying: "I will do my best so that my 
administration will not run into turbulence." 
 
6) Saiki hints that North Korea offered new proposal on abduction 
issue 
 
MAINICHI (Top Play) (Slightly abridged) 
June 13, 2008 
 
(Takashi Sudo, Beijing) 
 
Speaking before reporters after the end of the second day of 
working-level talks between Japan and North Korea in Beijing on June 
12, Akitaka Saiki, director general of the Foreign Ministry's Asian 
and Oceanian Affairs Bureau, indicated that North Korea made a new 
proposal to move forward the dispute over the past abductions of 
Japanese nationals by North Korean agents. The talks were held with 
the aim of resuming negotiations to normalize bilateral diplomatic 
ties under the six-party framework. Saiki said: "We had in-depth 
exchanges on very important issues, including the abduction issue, 
in a constructive atmosphere. Both sides agreed on how to promote 
relations between Japan and North Korea and engaged in productive 
discussions." 
 
Saiki is scheduled to return home this afternoon. He did not 
disclose the specific contents of the proposal from North Korea, 
saying: "I will report on the details of the proposal to Prime 
Minister Yasuo Fukuda and other senior government officials and seek 
their judgments, evaluations, and instructions." After the 
Japan-North Korea talks, Saiki also met with Vice Foreign Minister 
Wu Dawei of China, the chair of the six-party talks. 
 
In some previous negotiations, North Korea had said that the 
abduction issue has already been settled. But Saiki said that North 
Korea refrained from using that phrase. A source engaged in the 
 
TOKYO 00001613  005 OF 011 
 
 
negotiations said: "Although the next round of talks has yet to be 
determined, both sides will inevitably have to meet again," 
indicating that Japan and North Korea will hold another round of 
talks to express their respective views on North Korea's new 
proposal. 
 
The source also said: "The two countries share the view that they 
should promote bilateral ties under the six-party framework, based 
on the Pyongyang Declaration." 
 
Japan requested in the first day of the meeting that North Korea 
hand over the Japanese radicals who hijacked a JAL plane and took it 
to North Korea. This issue was also discussed in the second day of 
the meeting. It is conceivable that the North made some proposal. 
 
On the morning of the 12th, North Korea explained its position on 
the abduction issue. In the afternoon, both sides discussed such 
issues as Japan's wartime acts, including its colonization of the 
Korean Peninsula, Japan's economic cooperation after the two 
countries normalize their diplomatic ties, and the return of 
cultural assets. 
 
7) In-depth discussion held on pending issues in Japan-DPRK talks 
 
ASAHI (Page 1) (Full) 
June 13, 2008 
 
Toru Tamagawa, Beijing, and Yoshihiro Makino 
 
The two-day formal talks in Beijing of working-level foreign affairs 
officials from Japan and North Korea wrapped up yesterday. The North 
Korean side appeared to make some kind of proposal to the Japanese 
side regarding outstanding issues, including the abductions of 
Japanese citizens. Details of the talks have yet to be disclosed. 
The Japanese negotiator is to return home today and seek a political 
decision from Prime Minister Fukuda. 
 
Joining the talks from Japan was Akitaka Saiki, director-general of 
the Ministry of Foreign Affairs' Asian and Oceanian Affairs Bureau 
and from North Korea was Song Il Ho, ambassador for diplomatic 
normalization talks between Japan and North Korea. After the 
session, Saiki told reporters: "We had in-depth discussions about 
important pending issues between the two countries in a serious and 
constructive mood." When asked about the abduction issue, Saiki 
revealed that the North Korean side did not refer to it as its being 
already settled and implied that there were in-depth exchanges of 
views. 
 
Speaking of the talks, Saiki said, "I will report on the results of 
the talks to the prime minister, the foreign minister, and the chief 
cabinet secretary and ask for their instructions." According to a 
Japanese official concerned with the talks, Saiki will visit the 
Kantei today and report to the prime minister about the details of 
the talks. Reportedly, Saiki is to brief the family members of 
abductees on the talks later in the day. The official indicated that 
the talks this time have produced a certain degree of results, 
noting, "The talks were tough, but we think we were able to catch a 
small fish but not a big one, though." 
 
In the session yesterday, the North Korean side explained its 
position on the abduction issue and the issue of how to settle the 
past. According to an informed source, North Korea, which earnestly 
 
TOKYO 00001613  006 OF 011 
 
 
wants the United States to delist it as a state sponsor of 
terrorism, sounded out Japan about a plan to hand JAL hijackers over 
to Japan, with the presence of the hijackers in North Korea being 
one of the factors that led the U.S. to list North Korea as a state 
sponsor of terrorism. Also, the North Korean side urged Japan to 
lift its independent sanctions. Both sides apparently discussed the 
possibility of resuming the investigation into abductees. 
 
Tokyo's stance is that even if those hijackers are sent back to 
Japan, that will not constitute progress on the abduction issue. 
Even if both sides reach agreement to restart the investigation into 
the abductees, there is a possibility that North Korea may use the 
resumption of the investigation to confirm its assertion that the 
abduction issue has been already settled. 
 
8) Japan seeks cooperation from G-8 on abduction issue 
 
NIKKEI (Page 2) (Full) 
June 13, 2008 
 
The first day of the G-8 justice and internal affairs ministerial 
took place on June 12 at a Tokyo hotel. Justice Minister Kunio 
Hatoyama and National Safety Commission Chairman Shinya Izumi, who 
co-chaired the meeting, sought cooperation from the G-8 on the 
abduction of Japanese nationals by North Korea. Participants made no 
special statements. 
 
9) Former Prime Minister Abe: Japan should continue hard-line stance 
toward North Korea 
 
ASAHI (Page 4) (Full) 
June 13, 2008 
 
Referring in a talk with Naigai News to the launch of a 
parliamentary group to place important on dialogue with North Korea, 
former Prime Minister Shinzo Abe yesterday argued that Japan should 
continue to take a hard-line stance against North Korea, noting: "If 
many Diet members, including influential legislators, take a lax 
response (to Pyongyang), negotiations will not work well. (Lax 
responses) do Japan absolutely no good." 
 
Asked about the U.S. government's plan to delist North Korea as 
state sponsoring terrorism, Abe pointed out: 
 
"If the United States were to delist the North as a state sponsor of 
terrorism, there is a possibility of a negative impact on the 
credibility of Japan-U.S. alliance. I want the U.S. to make a policy 
decision after considering the matter carefully." 
 
Commenting on the abduction issue, Abe said: "Our perception is that 
until the abductees are repatriated, (North Korea is) a state of 
sponsor of terrorism." 
 
10) Japan, U.S. to closely cooperate to resolve abduction issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 13, 2008 
 
Shinichiro Maki, Paris 
 
Foreign Minister Masahiko Koumura met with U.S. Secretary of State 
Condoleezza Rice on June 12 in Paris. Both Koumura and Rice are now 
 
TOKYO 00001613  007 OF 011 
 
 
visiting France to attend an Afghanistan donor conference. The two 
agreed that since the six-party talks are coming to a crucial 
moment, Japan and the United States will continue to cooperate on 
the abduction issue. 
 
Koumura said: "Japan would like to have the Afghan issue on the main 
agenda for the Group of Eight summit in Hokkaido." He indicated that 
Japan as chair of the G-8 would attach importance to the Afghan 
issue. 
 
11) Foreign Minister Koumura suggests a willingness to relax 
sanctions against North Korea following progress on abduction issue 
 
NIKKEI (Page 2) (Full) 
June 13, 2008 
 
Foreign Minister Masahiko Koumura, holding a meeting with U.S. 
Secretary of State Condoleezza Rice in Paris on June 12, said about 
Japan-DPRK talks: "If North Korea takes a step forward, Japan, too, 
will take a step forward." Koumura's statement reflects the 
government's willingness to consider easing sanctions and other 
steps if the North responds to Japan's calls for progress on the 
abduction issue. 
 
12) G-8 finance ministerial to start today 
 
MAINICHI (Page 9) (Full) 
June 13, 2008 
 
The two-day Group of Eight nations finance ministerial, joined by 
Japan, the U.S. European countries and Russia, will start in Osaka 
on June 13. The focus of the meeting will be to what extent 
participants can agree to cooperate over measures on a growing 
concern about global inflation due to the rise in crude oil prices 
linked to the weak yen, the steep rise in grain prices, and the 
global warming issue. 
 
The G-8 finance ministerial will start on the evening of the 13th at 
a dinner meeting joined by finance ministers and officials from 
Australia, Thailand, China, South Korea Brazil and South Africa as 
well as the G-8 member nations. Japan, the host nation, will aim at 
strengthening cooperation with Brazil and China for the prevention 
of global warming in the run-up to the G-8 Summit to be held in 
Hokkaido in July. 
 
Discussions at the plenary meeting on the 14th will focus on the 
movements of the global economy and the turmoil in the financial 
market following the subprime mortgage crisis. The meeting will 
close on the 14th, after releasing a joint statement on the 
afternoon. 
 
Talks between Finance Minister Fukushiro Nukaga and U.S. Treasury 
Secretary Paulson will take place on the afternoon of the 13th prior 
to the G-8 finance ministerial. The stance of the U.S., which has 
recently repeatedly issued statements checking the weak-yen trend, 
will be watched with attention. 
 
13) Justice Minister Hatoyama eager for legislation to restrict 
child pornography 
 
ASAHI (Page 38) (Full) 
June 13, 2008 
 
TOKYO 00001613  008 OF 011 
 
 
 
Justice Minister Hatoyama met with U.S. Attorney General Mukasey 
yesterday on the sidelines of the ongoing Group of Eight (G-8) 
justice ministers and internal affairs ministers meeting in Tokyo 
prior to the Lake Toya Summit in Hokkaido. Hatoyama emphasized that 
he would make utmost efforts to enact a bill banning "simple 
possession" of child pornography. "Fighting the sexual exploitation 
of children" is high on the agenda at the G-8 meeting. Hatoyama 
said: "I would like to commit myself to enacting the legislation in 
a positive manner." Mukasey stated: "Every single pornographic 
picture of child is a crime against children. No one wants to live 
in a society that allows (people to possess) pornography." 
 
14) Fukuda plans to submit to extra Diet a bill extending MSDF 
refueling operation 
 
YOMIURI (Page 1) (Excerpts) 
June 13, 2008 
 
Prime Minister Fukuda decided yesterday to submit to the next 
extraordinary Diet session a bill extending the Antiterrorism 
Special Measures Law, the legal basis for the Maritime Self-Defense 
Force's refueling operation in the Indian Ocean, for one year beyond 
its January 2009 expiry. The prime minister concluded it would be 
necessary to continue the refueling activities in order for Japan to 
cooperate with other countries in the war on terrorism. The 
legislation is defined as the top priority in the next Diet session. 
If the bill is voted down in the House of Councillors, where the 
main opposition Democratic Party of Japan dominates, the ruling 
coalition of the Liberal Democratic Party and its junior partner New 
Komeito plan to pass the bill by approving it for a second time at 
the House of Representatives, where they hold a two-thirds majority, 
to enact it before the end of the year. 
 
Although there have been growing calls to establish a permanent law 
on the overseas dispatch of the SDF, opinion on the issue in the 
ruling parties is still divided. As such, the prime minister, 
concluding that enacting a permanent law within this year is 
difficult, has decided to give priority to amending the existing 
special measures law. 
 
15) LDP executive suggests possible ASDF withdrawal from Iraq 
 
MAINICHI (Page 5) (Excerpts) 
June 13, 2008 
 
An Liberal Democratic Party executive said yesterday about the Air 
Self-Defense Force, which has been dispatched to Iraq: "In view of 
the Constitution and Japan's political situation, it would be 
extremely difficult (to continue the deployment) after a U.N. 
resolution expires." He thus indicated that there could be an ASDF 
withdrawal before the end of the year, citing the fact that the U.N. 
resolution, the legal basis for the multinational forces in Iraq, is 
to expire at the end of December. This is the first case that any 
government or ruling party member has referred to the possibility of 
an ASDF withdrawal within the year. 
 
Touching on the legal grounds after the U.N. resolution expires, the 
LDP executive indicated that a continued deployment would be 
difficult, saying: "Concluding a status of forces agreement with 
Iraq would be one idea, but things are not going well for the United 
States, either." 
 
TOKYO 00001613  009 OF 011 
 
 
 
16) Fukuda, Rudd reconfirm Japan, U.S., Australia cooperation; 
Concerns eased for time being 
 
NIKKEI (Page 2) (Full) 
June 13, 2008 
 
In their meeting yesterday, Prime Minister Yasuo Fukuda and visiting 
Australian Prime Minister Kevin Rudd reconfirmed trilateral security 
cooperation among Japan, Australia and the United States. Japan and 
Australia appear to have eased concerns that Rudd, who advocates the 
need for strengthening bilateral relations between Australia and 
China, may have been more cautious than former Australian Prime 
Minister John Howard about trilateral security cooperation. 
 
It is the first time for Rudd to visit Japan since taking office 
last December. In the summit, Fukuda told Rudd: "Both countries are 
allies of the United States and we are indispensable partners for 
peace and stability of the Asia-Pacific region." He then proposed 
strengthening security cooperation among Japan, the U.S., and 
Australia. Rudd responded: "I absolutely agree with you." However, a 
government source said: "Rudd has taken a cautious stance toward a 
dialogue among Japan, the U.S., Australia, and India, to which China 
is opposed." 
 
17) Japan formally announces additional aid totaling 62.2 billion 
yen to Afghanistan over several years 
 
YOMIURI (Page 4) (Full) 
June 13, 2008 
 
The 4th round of the International Conference on Reconstruction 
Assistance to Afghanistan started at a convention hall in Paris on 
the morning of June 12. Foreign Minister Koumura in a speech 
formally announced Japan's policy of extending additional aid 
totaling 550 million dollars (approximately 62.2 billion yen) to the 
Afghanistan government and international agencies. 
 
18) LDP Diet members' group advocates Japan accept 10 million 
immigrants 50 years from now 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 13, 2008 
 
A group of Liberal Democratic Party Diet members to promote foreign 
personnel exchanges, led by former LDP Secretary General Hidenao 
Nakagawa, has put together policy proposals for a national 
immigration policy. The report released yesterday proposes that 
Japan should be prepared to see immigrants account for 10 PERCENT 
of its population 50 years from now. 
 
The report stresses that Japan should aim to become an 
immigration-oriented nation in order to maintain its vitality in an 
aging society with a declining birthrate. It proposes introducing a 
Japanese-style immigration policy to help foreigners to be able to 
settle down in local communities. The report also suggests the goal 
of setting up an immigration agency responsible for immigration 
administration within three years. 
 
19) Economic outlook in monthly report to be revised downward 
 
MAINICHI (Page 2) (Full) 
 
TOKYO 00001613  010 OF 011 
 
 
June 13, 2008 
 
The government has started coordination with the possibility of 
revising downward the economic outlook in the monthly economic 
report for June. The move is in response to the economy increasingly 
slowing due to the rise in prices of raw materials. Such phrases as 
"weakness is observable in some areas" will be added to the overall 
economic assessment, which notes that the recovery of the economy 
has been at a standstill. 
 
The previous reports noted that production was leveling off and the 
pace of the growth of exports was slowing. However, the government 
has decided to revise downward the economic outlook, taking into 
consideration the facts that the industrial production index has 
declined for two months in a row and that robust Asia-bound exports 
have begun showing signs of slowing. 
 
The government revised downward the overall economic assessment in 
the monthly report for March to say that "the economy is at a 
standstill," indicating that the economy entered a temporary slump. 
 
It has since maintained the overall outlook in the following three 
months. If it further revises downward the overall outlook in the 
June monthly report, concern about a recession will likely grow 
further. 
 
20) Action program for low-carbon society: Government clarifies in 
draft basic policy guidelines for 2008 
 
NIKKEI (Page 2) (Full) 
June 13, 2008 
 
The draft of basic policy guidelines on economic and fiscal 
management and structural reforms for the fiscal 2008 national 
budget, which the government is expected to compile in late June, 
was revealed yesterday, June 12. Regarding global warming measures, 
which will become a main item on the G-8 agenda, the draft 
incorporates a government plan to formulate an action program for 
the creation of a low-carbon society before the end of this fiscal 
year. 
 
For the drastic reform of the tax code, the report mentions that the 
inheritance tax will be reviewed in a comprehensive way to ensure 
fairness among generations. It also notes that stable fiscal 
resources that will support social security should be secured. 
However, it does not mention any concrete measures to be taken to 
achieve that end, such as a consumption tax hike. The report 
includes tax benefits for the dissemination of "200 year housing," 
one of the policy themes into which the prime minister is putting a 
lot of work. The draft will be presented at a meeting of the Council 
on Economic and Fiscal Policy to be held on the 17th. The prime 
minister earlier revealed his policy of reallocating special-purpose 
road construction revenues for other uses, but the draft does not 
mention specifics. 
 
21) Senkaku issue rekindles in Taiwan; Presidential Office plays up 
Taiwan's claim to islands 
 
TOKYO SHIMBUN (Page 7) (Abridged) 
June 13, 2008 
 
The question of sovereignty of the Senkaku Islands, known as Diaoyu 
 
TOKYO 00001613  011 OF 011 
 
 
in China and Tiaoyu in Taiwan, has flared up again in Taiwan in the 
wake of an accident in which a Taiwanese fishing boat sank after 
colliding with a Japan Coast Guard patrol boat near the islands on 
June 10. The Taiwanese Presidential Office released a statement on 
the evening of June 12 renewing its claim that (the Senkaku Islands) 
are part of the territory of the Republic of China. 
 
The statement says: "Harshly protesting the fact that the Japanese 
marine vessel has sunk the Taiwanese fishing boat in our territorial 
waters and has taken the boat's captain into Japanese custody, we 
demand the captain's release and compensation." 
 
A Taiwanese foreign affairs department official, holding a press 
conference yesterday, indicated that Taiwan would uphold its claim 
over the islands. The department chief also yesterday called 
representative Ikeda of the Interchange Association, Japan (IAJ), 
Taipei office -- Japan's point of contact with Taiwan -- to his 
department and expressed Taiwan's "harshest standpoint" once again. 
On the day the accident occurred, the department had issued a 
statement that stopped short of mentioning the sovereignty issue. 
This prompted on June 11 Kuomintang lawmakers and others to 
criticize the government as week-kneed. 
 
The Kuomintang-affiliated Taipei governor, visiting the IAJ office 
yesterday, demanded an apology and compensation. Around the office, 
Taiwanese fishermen also staged a protest rally against Japan. 
 
SCHIEFFER