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UNCLAS SECTION 01 OF 15 TOKYO 001628 
 
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 06/16/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's weekend schedule  (Nikkei) 
 
Opinion polls: 
4) Mainichi poll: Fukuda Cabinet support rate up slightly to 21 
PERCENT ; Non-support rate down a point to 60 PERCENT ; Majority of 
Japanese oppose removing sanctions on DPRK  (Mainichi) 
5) Mainichi poll: 47 PERCENT  approve, 43 PERCENT  disapprove of 
Democratic Party of Japan's (DPJ) aggressive stance toward LDP 
(Mainichi) 
6) Kyodo poll: Cabinet support rate rises 5.2 points to 25 PERCENT , 
with non-support rate down 6.4 points to 60.2 PERCENT   (Tokyo 
Shimbun) 
7) Jiji poll: Cabinet support rate slips a bit to 19.1 PERCENT , 
with non-support rate also down a point to 61.8 PERCENT   (Tokyo 
Shimbun) 
 
North Korea problem: 
8) Japan reports that North Korea has agreed to reopen investigation 
of abductees, and will also cooperate to return the JAL hijackers 
(Nikkei) 
9) Japan will be involved in North Korea's reinvestigation of 
abduction issue  (Yomiuri) 
10) Prime Minister Fukuda: Japan would ease sanctions further if 
more progress on the abduction front  (Tokyo Shimbun) 
11) DPJ Secretary General Hatoyama against easing sanctions against 
the DPRJ without good cause  (Tokyo Shimbun) 
 
12) U.S. welcomes DPRK's intent to reopen abduction issue, stresses 
cooperation with Japan  (Nikkei) 
13) Mood growing now for restarting the Six-Party Talks  (Nikkei) 
 
14) LDP, New Komeito secretaries general: Japan would resume 
sanctions on North Korea if investigation does not pan out  (Sankei) 
 
 
15) Foreign ministers of Japan, U.S., and ROK agree to summit 
meeting in Sept.  (Yomiuri) 
 
16) Taiwan to recall its representative in Tokyo in protest of 
Japan's response to Senkaku accident in which JCG sunk a small 
fishing vessel  (Mainichi) 
 
G-8 finance ministers meeting: 
17) G-8 finance ministers all want a strong dollar but no consensus 
on when the U.S. economy might recover  (Nikkei) 
18) G-8 finance ministers stress cooperation to fight inflation 
(Yomiuri) 
19) Finance ministers of U.S., Japan, Britain agree to setting up 
$10 billion environment fund for developing countries  (Nikkei) 
 
20) G-8 science ministers, also meeting in Japan, to promote joint 
use of research facilities to develop technology to resolve global 
warming problem  (Yomiuri) 
 
21) Senior U.S. official in Washington stresses concern about state 
of Japanese politics in the lopsided Diet  (Sankei) 
 
22) Japan and China agree to joint development of the Shirakaba gas 
 
TOKYO 00001628  002 OF 015 
 
 
field in the E. China Sea  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun & Akahata: 
Iwate-Miyagi earthquake leaves 9 dead, 13 missing; Three bodies 
discovered in collapsed inn 
 
Nikkei: 
Survey of 100 corporate presidents: 30 PERCENT  say business 
conditions worsening, exceeding those who say business is expanding 
 
2) EDITORIALS 
 
Asahi: 
(1) Hansen's disease basic law will help not to isolate patients 
(2) Prime Minister Rudd visits Hiroshima with aim of eliminating all 
nuclear weapons 
 
Mainichi: 
(1) Global inflation cannot be stopped by lip service 
(2) Tobacco and health: We support raising the price of a pack of 
cigarettes to 1,000 yen 
 
Yomiuri: 
(1) Agency for regional revitalization should be set up swiftly to 
deal with reconstruction of third-sector companies 
(2) Opening of Tokyo Metro Fukutoshin Line: Safety and reliability 
highest priority 
 
Nikkei: 
(1) Chinese economy faces three difficulties - rising commodities 
prices, reconstruction after earthquake, falling shares 
(2) Can consumer agency function properly? 
 
Sankei: 
(1) Social welfare panel's report: Future costs of social welfare 
should be shown quickly 
(2) China-Taiwan talks held; Next step for Taiwan to make its 
international "debut" 
 
Tokyo Shimbun: 
(1) COP10 should serve to protect human beings 
 
Akahata: 
(1) Resolution for indigenous people should be used to drastically 
rectify Ainu policy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 13 
 
NIKKEI (Page 2) (Full) 
June 14, 2008 
 
08:31 
Attended a Security Council of Japan meeting. 
 
09:00 
Attended a cabinet meeting. 
 
TOKYO 00001628  003 OF 015 
 
 
 
09:35 
Met Miss Iris Yamauchi and others at the Kantei in the presence of 
Finance Minister Nukaga. Afterward met Asian Development Bank 
President Kuroda. 
 
11:10 
Attended a consumer administration promotion conference. Afterward 
met State Minister in Charge of Consumer Affairs Kishida. 
 
12:15 
Met Climate and Energy Minister Hedegaard of Denmark at the Hotel 
New Otani, followed by former British Foreign Minister Beckett. 
Afterward attended the 2008 global environment symposium sponsored 
by the Asahi Shimbun. 
 
14:33 
Met at the Kantei U.S.-Japan Conference on Cultural and Educational 
Exchange adviser Minoru Makihara, Shinsei Bank President Tierry 
Porte in the presence of U.S. Ambassador to Japan Schieffer and 
others. 
 
14:58 
Met Foreign Minister Koumura, Vice-Foreign Minister Yabunaka, Asian 
and Oceanian Affairs Bureau Director-General Saiki in the presence 
of Chief Cabinet Secretary Machimura, Deputy Chief Cabinet Secretary 
Futahashi and advisor Nakayama. 
 
15:41 
Met Takeshi Noda and other Lower House lawmakers of the LDP 
anti-global warming headquarters. 
 
16:01 
Met Cabinet Intelligence Director-General Mitani, followed by LDP 
Election Strategy Council Chairman Koga and his deputy Suga. 
Afterward met MHLW Minister Masuzoe. 
 
17:17 
Met Internal Affairs and Communications Minister Masuda and 
Assistant Chief Cabinet Secretary Saka. 
 
17:37 
Met drug abuse prevention campaign character Konno and others. 
 
19:20 
Returned to his official residence. 
 
Prime Minister's schedule, June 14 
 
NIKKEI (Page 2) (Full) 
June 15, 2008 
 
10:10 
Deputy Chief Cabinet Secretary for Crisis Management Ito. 
 
13:00 
Attended an Iwate-Miyagi Inland Earthquake meeting at the Kantei 
Crisis Management Center. 
 
13:20 
Met Deputy Foreign Minister Kohno, Economic Affairs Bureau 
Director-General Otabe, Assistant Chief Cabinet Secretary Ando, 
 
TOKYO 00001628  004 OF 015 
 
 
Resources and Energy Agency Director General Mochizuki, MOF 
International Cooperation Bureau chief Bessho, Finance Ministry 
International Bureau chief Tamaki and others. 
 
15:10 
Met Ito, followed by Chinese Foreign Minister Yang Jiechi and South 
Korean Foreign Minister Yu Myung Hwan in the presence of Foreign 
Minister Koumura and Asian and Oceanian Affairs Bureau chief Saiki. 
 
16:10 
Met Ito. 
 
17:42 
Met Fiscal and Economic Policy Minister Ota. 
 
18:32 
Talked with Disaster Minister Izumi on the phone at the Crisis 
Management Center. 
 
19:00 
Met Ota. 
 
Prime Minister's schedule, June 15 
 
NIKKEI (Page 2) (Full) 
June 16, 2008 
 
10:16 
Met Deputy Chief Cabinet Secretary for Crisis Management Ito and 
Meteorological Agency Director General Hiraki. 
 
13:03 
Met Disaster Minister Izumi and Cabinet Director General for Policy 
Planning Kato. 
 
17:28 
Met Land, Infrastructure, and Transport Minister Fuyushiba. 
 
4) Poll: 55 PERCENT  disapprove lifting sanctions on N. Korea; 
Cabinet support up slightly to 21 PERCENT 
 
MAINICHI (Page 1) (Abridged) 
June 16, 2008 
 
The Mainichi Shimbun conducted a telephone-based nationwide public 
opinion survey on June 14-15, in which only 34 PERCENT  answered 
"yes" while 55 PERCENT  said "no" when respondents were asked if 
they appreciated the government's decision to lift some of its 
sanctions on North Korea in response to North Korea's agreement in 
the recent bilateral talks to look again into the issue of Japanese 
nationals abducted to North Korea. The rate of public support for 
Prime Minister Fukuda and his cabinet rose 3 percentage points from 
the last survey in May to 21 PERCENT , with the nonsupport rate down 
1 point to 60 PERCENT . The Fukuda cabinet's support rate rose for 
the first time since it came into office in September last year. 
Yet, it still remains low. 
 
North Korea has also agreed to turn over Japan Airlines hijackers. 
However, the survey shows that the general public is cautious about 
lifting sanctions without seeing what North Korea will now do. 
 
In the breakdown of public support for political parties, the ruling 
 
TOKYO 00001628  005 OF 015 
 
 
Liberal Democratic Party stood at 21 PERCENT , up 1 point from the 
last survey. The leading opposition Democratic Party of Japan 
(Minshuto) was at 25 PERCENT , down 3 points. 
 
5) Poll: 47 PERCENT  support DPJ's confrontational stand against 
Fukuda 
 
MAINICHI (Page 1) (Full) 
June 16, 2008 
 
The Diet has now wound up a battle of words between the ruling and 
opposition parties in its current ordinary session, with the House 
of Councillors adopting a censure motion against Prime Minister 
Yasuo Fukuda on June 11. The Mainichi Shimbun, in its recent public 
opinion survey, asked respondents about the Diet's divided situation 
in which the ruling camp holding a majority of the seats in its 
lower chamber while the opposition camp controlling its upper 
chamber. 
 
In the survey, respondents were asked if they appreciated the 
leading opposition Democratic Party of Japan (Minshuto) that took a 
confrontational stand against the governing parties. To this 
question, 47 PERCENT  answered "yes," with 43 PERCENT  saying "no." 
In the last survey taken in May, "yes" accounted for 41 PERCENT , 
with "no" at 51 PERCENT . The survey this time shows that the DPJ's 
strategy has gained more public understanding. 
 
Facing the censure motion, the prime minister will not dissolve the 
House of Representatives and his cabinet will not resign en masse. 
Those who approved this course accounted for only 29 PERCENT , with 
those who disapproving totaling 61 PERCENT . 
 
6) Poll: Cabinet support up to 25 PERCENT 
 
TOKYO SHIMBUN (Page 1) (Full) 
June 14, 2008 
 
In the wake of the House of Councillors' passage of a censure motion 
against Prime Minister Yasuo Fukuda, Kyodo News conducted a 
telephone-based spot nationwide public opinion survey on June 12-13. 
The Fukuda cabinet's support rate was 25.0 PERCENT , up 5.2 
percentage points from its all-time low. 
 
This can be taken as reflecting the public's appreciation to a 
certain extent of Fukuda, who told his ruling Liberal Democratic 
Party and its coalition partner, New Komeito, to agree with the 
leading opposition Democratic Party of Japan (Minshuto) to retouch a 
bill reforming the national civil service personnel system. As a 
result, the legislation passed through the Diet. In the breakdown of 
public support for political parties, the LDP rose 4.8 points to 
29.1 PERCENT , with the DPJ dropping 6.7 points to 23.6 PERCENT . 
The LDP outstripped the DPJ for the first time in a month. 
 
The Fukuda cabinet's nonsupport rate was 60.2 PERCENT , showing a 
decrease of 6.4 points. However, it still remains high. Fukuda is 
still facing difficulties in steering his government. In the 
breakdown of reasons for not supporting the Fukuda cabinet, 28.7 
PERCENT  said the prime minister lacks leadership ability, topping 
all other answers. The most common reason given for supporting the 
Fukuda cabinet was that there is no other appropriate person, 
accounting for 47.1 PERCENT . Among other reasons for supporting 
Fukuda, 20.4 PERCENT  said the prime minister was trustworthy, 
 
TOKYO 00001628  006 OF 015 
 
 
showing a slight increase. 
 
The Diet has now censured Fukuda in its upper chamber, and the DPJ 
is poised to continue its refusal of deliberations in the Diet 
during its extraordinary session that is expected to be called in 
August. In the survey, 68.6 PERCENT  answered said "no" and 17.3 
PERCENT  said "yes" when respondents were asked if they would 
support the DPJ's strategy of boycotting Diet deliberations. 
 
Respondents were also asked what they thought the prime minister 
should do. In response to this question, 56.2 PERCENT  said the 
prime minister should dissolve the House of Representatives for a 
general election, with 30.0 PERCENT  saying the prime minister does 
not have to resign because the censure motion is not legally binding 
and 8.4 PERCENT  saying his cabinet should resign en masse. 
Respondents were further asked whey they would like an election to 
be held for the House of Representatives. To this question, 22.0 
PERCENT  answered that they would like it to take place by this 
summer, with 36.4 PERCENT  preferring to "this fall or later this 
year." A total of nearly 60 PERCENT , as in the last survey, want an 
election to take place within the year. 
 
Meanwhile, public opinion was split over the now-introduced 
controversial new healthcare system for the elderly, with 47.0 
PERCENT  insisting that it should be abolished and 44.9 PERCENT 
saying they think it is all right to maintain the new system if it 
is improved. 
 
7) Poll: Cabinet support down to 19.1 PERCENT 
 
TOKHYO SHIMBUN (Page 2) (Abridged) 
June 16, 2008 
 
The rate of public support for Prime Minister Yasuo Fukuda's cabinet 
dropped 0.8 percentage points from last month to 19.1 PERCENT  in a 
public opinion survey conducted by Jiji Press on June 6-9. The 
Fukuda cabinet's support rate reached a new low in the Jiji poll 
since its inauguration. The nonsupport rate was 61.8 PERCENT , down 
1.0 points. It decreased for the first time but still topped 60 
PERCENT  for the second month in a row. This can be taken as 
reflecting public attitudes critical of (a scandal involving) 
government bureaucrats treated by taxicab drivers in money or in 
kind on their way home late at night, as well as a public backlash 
against the controversial new healthcare system for the elderly. 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 20.3 PERCENT , up 0.8 points. The 
LDP topped 20 PERCENT  for the first time in two months. Meanwhile, 
the leading opposition Democratic Party of Japan (Minshuto) dropped 
1.3 points to 14.5 PERCENT . The difference of public approval 
ratings for the LDP and the DPJ expanded to 5.8 PERCENT . 
 
The survey was conducted across the nation on a face-to-face basis 
with a total of 2,000 persons chosen from among men and women aged 
20 and over. The response rate was 66.4 PERCENT . 
 
8) DPRK vows to reinvestigate abductees, send hijackers back to 
Japan 
 
NIKKEI (Top play) (Excerpts) 
June 14, 2008 
 
 
TOKYO 00001628  007 OF 015 
 
 
The government on June 13 declared that during the latest formal 
working-level talks between Japan and North Korea in Beijing, the 
North Korean side altered its previous assertion that the issue of 
abductions of Japanese citizens has already been settled, and that 
it promised to reinvestigate Japanese abductees whose whereabouts 
had been unknown. The North Korean side also indicated that it would 
cooperate and hand six JAL hijackers and related persons suspected 
of having been involved in abductions of Japanese citizens back to 
Japan. Tokyo intends to lift a portion of its independent economic 
sanctions imposed on North Korea, which began in October 2006, once 
both sides reach an agreement on methods for reinvestigations and 
other matters. 
 
Late on June 13, when asked about the results of the recent 
Japan-North Korea talks at the Kantei, Prime Minister Yasuo Fukuda 
said: "North Korea appeared willing to have talks with us. If that 
is the case, it may be safe to say that we have now come to the 
entrance of the negotiating process." Chief Cabinet Secretary 
Nobutaka Machimura told the press: "They have turned around their 
previous stance that the abduction issue had been settled already. 
We view this as a degree of progress on the issue." 
 
The working-level talks were held on June 11 and 12 between the 
Japanese representative, Akitaka Saiki, director-general of the 
Ministry of Foreign Affairs' Asian and Oceanian Affairs Bureau, and 
his North Korean counterpart, Song Il Ho, ambassador for diplomatic 
normalization talks with Japan. On the 13th, Saiki briefed Fukuda, 
Machimura, and Foreign Minister Masahiko Koumura on the results of 
the talks. The government announced the results of the talks through 
a press briefing by Machimura. The government also explained the 
results to family members of the abductees. 
 
On the question of abductions of Japanese citizens by North Korea, 
the North Korean side vowed to reinvestigate abductees in view of 
taking specific action to resolve the issue. As for how the 
reinvestigation should be conducted, the Japanese side asserted that 
the investigation needs to discover survivors and lead to having 
them return home. The North Korean side did not reject this 
assertion by Japan. Machimura noted: "Our understanding is that the 
other side has accepted (the Japanese side's assertion)." 
 
Major points of Japan-North Korea talks 
 
Q North Korea has promised to reinvestigate the abduction issue. The 
Japanese side welcomed this stance, as the North Koreans altered 
their previous position. 
 
Q North Korea declared that it would cooperate to resolve the JAL 
hijacking incident. Coordination will start between the two 
countries to send the hijackers back to Japan. 
 
Q  Once agreement is reached on how to reinvestigate abductees, 
Japan will lift restrictions on personal travel between Japan and 
North Korea and North Korean chartered planes' flights into Japan. 
 
Q Japan will remove a ban on North Korean ships' entering Japanese 
ports only if they load relief goods for humanitarian purposes in 
Japan. But Japan will not allow people to embark or disembark. 
 
Q Japan does not take the progress at present as sufficient for 
taking part in economic and energy assistance agreed on in the 
six-party talks on the North Korean nuclear issue. 
 
TOKYO 00001628  008 OF 015 
 
 
 
9) LDP secretary general: Japan will be involved in reinvestigation 
into abductees 
 
YOMIURI (Page 2) (Full) 
June 16, 2008 
 
The ruling Liberal Democratic Party's (LDP) Secretary General Ibuki 
appeared on an NHK TV talk show yesterday. When asked about a 
reinvestigation into Japanese abductees declared by North Korea 
during the latest working-level talks between Japan and North Korea, 
Ibuki indicated that the Japanese side would be involved in the 
reinvestigation, noting, "It will not be done one-sidedly by North 
Korea. They will consult with Japan and confirm items for 
reinvestigation and identify abductees." Ibuki went on to say: "We 
can't remove the sanctions (now imposed on North Korea) if we do not 
satisfy the details of the reinvestigation. Even after we remove the 
sanctions, if the way the investigation is carried out is different, 
the sanctions will be imposed again. Prime Minister Fukuda is 
strongly aware of this point." 
 
10) Prime Minister Fukuda: Sanctions would be eased further if 
improvement in reinvestigation on abductees seen 
 
TOKYO SHIMBUN (Page 3) (Full) 
June 14, 2008 
 
When asked by the press corps on June 13 at his office about North 
Korea having promised Japan to conduct again its investigations on 
the Japanese abductees by its agents, Prime Minister Yasuo Fukuda 
indicated that Tokyo would ease further its sanctions against 
Pyongyang depending on the development of the reinvestigation. 
Fukuda stated: "If there is any improvement in the investigation, we 
will ease the economic sanctions further." 
 
Fukuda gave a certain level of positive evaluation to the result of 
the recent Japan-North Korea talks, saying: "The question is the 
contents of the reinvestigation. We will boil them down. I think we 
are now at the start of the negotiating process." 
 
He explained the reason for his decision to lift part of the 
economic sanction measures (against the North) this way: 
 
"Obviously, North Korea expects something in return. Since we cannot 
hold negotiations (with that country) without such, I have decided 
it would be good to ease the sanctions in an extremely limited 
manner." 
 
11) DPJ's Hatoyama: Sanctions should not be easily lifted 
 
TOKYO SHIMBUN (Page 3) (Full) 
June 14, 2008 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama on 
June 13 criticized the government decision to ease part of its 
sanction measures against North Korea. He said: "Unless there is any 
concrete improvement (in the issue of North Korea's kidnapping of 
Japanese nationals), the government should not easily lift the 
sanctions." He was responding to questions by the press. He also 
stated: "Is it an improvement that North Korea cannot say the 
abduction issues has been resolved? The public will be totally 
unconvinced." 
 
TOKYO 00001628  009 OF 015 
 
 
 
Meanwhile, Japanese Communist Party Head of the Secretariat 
Tadayoshi Ichida released a statement that wrote: "It is a step 
forward for resolving the Japan-North Korea problems." 
 
12) North Korea's planned reinvestigation into abduction issue: U.S. 
spokesman welcomes sincere steps by North Korea, emphasizing 
cooperation between U.S. and Japan 
 
NIKKEI (Page 2) (Full) 
Evening, June 14, 2008 
 
A U.S. State Department spokesman commented on June 13 on the fact 
that North Korea has promised to launch a reinvestigation into the 
question of Japanese nationals abducted to the North: "We will 
welcome any sincere steps to be taken by North Korea." At the same 
time, he indicated that the U.S. government's efforts have paid off, 
saying: "The United States has long urged North Korea to address 
Japan's concern over the abduction issue." 
 
As the next step, the United States intends to accelerate 
coordination for progress in the six-party talks on the North Korean 
nuclear issue. 
 
U.S. State Department spokesman Vasquez indicated that Washington 
and Tokyo had worked closely for Japan-DPRK talks, saying, "We were 
informed of the contents of the talks by the Japanese government in 
advance." 
 
13) Mood growing for resumption of six-party talks 
 
NIKKEI (Page 3) (Slightly abridged) 
June 14, 2008 
 
(Hiroshi Maruya, Washington) 
 
The U.S. government has welcomed the recent progress in Japan-North 
Korea talks. The Bush administration is eager to hold a six-party 
foreign ministerial after estimating how and when the second stage 
of North Korea's denuclearization will be completed. It is aiming to 
resume the six-party talks by the end of June and hold a foreign 
ministerial in July. Upon ascertaining what responses North Korea 
will make to the issue of the past abductions of Japanese nationals 
by its agents and to its pledge to declare all its nuclear programs, 
the U.S. intends to decide to delist North Korea as a state sponsor 
of terrorism. 
 
In the talks held so far between the U.S. and North Korea, U.S. 
Assistant Secretary of State Christopher Hill, the top U.S. nuclear 
negotiator, urged the North to take action to resolve the abduction 
issue. Consideration to Japan, an ally of the U.S., is imperative 
for State Secretary Condoleezza Rice and Hill, both of whom give 
priority to a policy of dialogue in dealing with Pyongyang, to 
persuade the hardliners in the U.S., who are critical of their 
policy. In order also for the U.S. to draw Japan into the framework 
of aid to the North in return for its submission of a nuclear 
declaration and to reduce its burden, an improvement in Japan-North 
Korea relations is imperative for the U.S. 
 
North Korea has agreed to hand over Japanese radicals who hijacked a 
Japan Airlines plane and took it to North Korea. This development 
and the North's earlier antiterrorism statement will make it easier 
 
TOKYO 00001628  010 OF 015 
 
 
for the U.S. to be ready to drop North Korea from the U.S. terrorism 
blacklist. 
 
If North Korea disables the reactor at its nuclear complex in 
Yongbyon and declares all its nuclear programs, and if the U.S. 
delists the North, the second stage will be almost completed. The 
denuclearization process will then enter the final stage. 
 
The Bush administration is now preoccupied with Iraq policy, prior 
to the expiration of its term of office next January. If things move 
smoothly as envisioned, such progress will be one of its few 
diplomatic achievements. The administration is aiming to hold a 
foreign ministerial to coincide with a planned visit to Asia by 
Secretary Rice after the six-party talks resume. The U.S. is looking 
to time it with the Association of Southeast Asian Nations (ASEAN) 
Regional Forum (ARF) to be held in Singapore in late July. 
 
Even so, it is still uncertain whether North Korea will include the 
number of nuclear weapons it possesses in declaring its nuclear 
programs. Negotiations may not proceed smoothly. 
 
14) Secretaries general of LDP, New Komeito: Revival of sanctions 
possible, depending on North Korea's response 
 
SANKEI (Page 5) (Full) 
June 16, 2008 
 
Appearing on an NHK program yesterday, Liberal Democratic Party 
(LDP) Secretary General Bunmei Ibuki stated: 
 
"We won't be able to lift the sanctions (against North Korea) unless 
we satisfy the contents (of the reinvestigation). If the North does 
not keep its promise after we lift part of the economic sanction 
measures, we will reinstate the sanctions." 
 
Ibuki showed the perception that Japan would reinstate its sanctions 
depending on North Korea's response. 
 
Appearing on the same NHK program, New Komeito Secretary General 
Kazuo Kitagawa said: 
 
"We have to gauge the contents of the reinvestigation on the 
abductees (which North Korea promised). If Pyongyang does half-back 
response, we will reinstate the sanctions. We will naturally take 
tough measures." 
 
Ibuki also stated on a Fuji TV program yesterday: "Unless the 
reinvestigation on the abductees is conducted as Japan expects, 
there is no need to (lift the sanctions). I think Prime Minister 
Yasuo Fukuda understands it well." 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama, 
however, criticized the government's response, saying: "It is too 
early to ease the sanctions before North Korea shows specific 
response." 
 
15) Japan, China, South Korea foreign ministers agree to hold 
trilateral summit in September, strengthen anti-disaster 
cooperation 
 
YOMIURI (Page 2) (Full) 
June 15, 2008 
 
TOKYO 00001628  011 OF 015 
 
 
 
The foreign ministers of Japan, China and South Korea held talks on 
June 14 at the Foreign Ministry's Iikura Guesthouse in Tokyo's 
Azabudai. As a result, they decided to hold a trilateral summit by 
September in Tokyo. In the past, trilateral summits have been held 
on the sidelines of ASEAN forums and other events. The upcoming 
trilateral summit will be held for the first time independently from 
international conferences. An agreement was also reached to hold a 
trilateral foreign ministerial regularly rotating the location among 
the three countries. The next foreign ministerial will be held in 
China. 
 
The meeting was held for about two hours among Japan's Foreign 
Minister Masahiko Koumura, China's Yang Jiechi, and South Korea's Yu 
Myung Hwan. The three foreign ministers decided to carry out 
coordination to ensure that the North Korean issue, climate change 
and other matters would be high on the agenda of the upcoming 
trilateral summit. 
 
Koumura said about the six-party talks on the North Korea nuclear 
issue: "We would like to obtain the understanding of China and South 
Korea so that the questions of denuclearizing North Korea and of 
Japan-DPRK relations, including the abduction issue, will move 
forward." In response, Yang and Yu agreed to enhance ties among the 
three countries, saying, "Cooperation among Japan, China and South 
Korea is vital." The three ministers also agreed to promote 
anti-disaster cooperation in order to be able to respond speedily to 
major disasters, such as the recent Sichuan earthquake. 
 
As for climate change, a major topic in the upcoming July Lake Toya 
Summit meeting, the three countries agreed to combine efforts for 
drafting a new framework replacing the Kyoto Protocol in 2013 and 
beyond. They also decided to hold policy talks in Japan in the fall 
to closely cooperate in providing aid to Africa. 
 
16) Taiwan to recall envoy to Japan in reaction to Japan's response 
to Senkaku accident 
 
MAINICHI (Page 2) (Abridged slightly) 
June 15, 2008 
 
A Taiwanese fishing boat sank on June 10 after colliding with a 
Japan Coast Guard patrol boat in Japanese territorial waters near 
the Senkaku Islands, known as Tiaoyutai in Taiwan, in the city of 
Ishigaki, Okinawa Prefecture. The Taiwanese foreign affairs 
department (Foreign Ministry) announced on June 14 that it would 
recall representative Koh Se-kai of the Taipei Economic and Cultural 
Representative Office in Japan, a point of contact with Japan, 
saying that Japan's response as unacceptable. Criticism has been 
growing in Taiwan against Japan since the accident. 
 
One June 14, the 11th Regional Japan Coast Guard Headquarters in 
Naha City sent to the Naha District Public Prosecutors Office 
Ishigaki branch office papers on the captains of the JCG patrol boat 
and the Taiwanese fishing boat on suspicion of professional 
negligence. 
 
Taiwanese Foreign Minister Francisco Ou in a press conference said: 
"It was outrageous that the (JCG) patrol boat sank the small 
Taiwanese fishing boat. We demand an apology and the (JCG patrol 
boat) captain pay compensation for the inhumane act." Ou also 
announced a plan to abolish a special committee, established in 
 
TOKYO 00001628  012 OF 015 
 
 
October 2005 in the Foreign Ministry to handle Japan affairs with 
the aim of strengthening ties to Japan. 
 
Over the accident, Executive Yuan President (Premier) Lio Chao-hsuan 
said on June 13: "I will not rule out opening hostilities as the 
last resort." With some considering dispatching warships, Taiwan is 
stepping up its hard-line stance toward Japan. 
 
17) G-8 finance ministers share need for a "strong dollar" 
 
NIKKEI (Page 1) (Full) 
June 15, 2008 
 
In the Group of Eight (G-8) Finance Ministers' Meeting held in Osaka 
yesterday, the ministers essentially approved of the U.S. policy of 
propping up its currency. U.S. Treasury Secretary Henry Paulson Jr. 
stressed that a "strong dollar" was imperative to stabilize the 
global economy. No other voiced opposition to Paulson's view. After 
the meeting, Paulson issued a statement noting: "I recognize that 
the recent steep rise in oil prices is becoming a major risk that 
could prolong the U.S. economic slump." He had earlier said that the 
U.S. economy would be on a recovery path in the middle of the year, 
but he indicated in the statement that the recovery might be delayed 
to the end of the year. 
 
A senior Japanese Finance Ministry official quoted Paulson as 
saying: "The U.S. economy has great long-term growth potential. If 
solid fundamentals in the U.S. economy are reflected, our currency 
will naturally become stronger." 
 
In a press briefing held after the meeting, Finance Minister 
Fukushiro Nukaga indicated that the joint statement issued at the 
meeting in April of the Group of Seven (G-7) finance ministers and 
central bank governors, which clearly expressed apprehension about 
the slumping U.S. dollar, is still effective, emphasizing the need 
for propping up the dollar. Nukaga said: "What was agreed on in the 
G-7 meeting remains effective even now." French Finance Minister 
Christine Lagarde also said: "I don't feel there is anything strange 
about that." 
 
The G-7 statement in April noted: "Key currencies sometimes undergo 
a rapid change. We are worried that such changes might negatively 
affect our economies and monetary markets." It was the first time in 
seven years and seven months that a statement was designed to 
constrain sharp changes in key currencies. This highlighted their 
concern about the weak dollar. 
 
The G-8 finance ministers find it difficult to refer to currency 
issues in a joint statement without central bank governors present. 
Given this, they aimed to show to market players that they share the 
same position over the weak dollar. 
 
Paulson also referred in the statement after the meeting to the risk 
of higher oil prices dealing a blow to the U.S. economy, saying: 
"The U.S. economy is still facing a trial." He added: "I expect that 
the growth path of the U.S. economy will become faster than the 
current path before the end of the year." 
 
18) G-8 finance ministers vow to cooperate in addressing inflation: 
Seek transparency in crude oil prices 
 
YOMIURI (Page 1) (Abridged slightly) 
 
TOKYO 00001628  013 OF 015 
 
 
June 14, 2008 
 
The Group of Eight Nations (G-8) finance ministerial, which has been 
held in Osaka, closed on the afternoon of June 14, after adopting a 
joint statement. The meeting participants in the joint statement 
expressed concern that the steep rise in prices of crude oil and 
food could increase inflationary pressure worldwide and vowed to 
deal with the issue in cooperation. 
 
Concerning the steep rise in crude oil prices, the joint statement 
calls for efforts to constrain demand for oil through the 
dissemination of energy-saving technologies and improve the 
transparency of the crude oil price formation process through such 
means as promoted disclosure of stockpiling information. 
 
One cause contributing to the steep rise in crude oil prices is 
speculative funds, which have nothing to do with actual supply and 
demand of oil. The participants agreed to pay attention to the 
movements of speculative funds. 
 
The meeting also focused on the currency exchange issue with 
participants in stressing in unison the importance of stabilizing 
exchange rates in order to prevent the dollars from quickly losing 
value. This is out of the concern that if the weak-dollar trend 
continues, inflation in the U.S. would become serious, having an 
adverse impact on the global economy. In addition, it would trigger 
the influx of funds into the crude oil market, further raising its 
prices. 
 
The statement also calls on various countries, including the G-8 
Nations, to make more efforts to boost food production so as to 
contain the sharp rise in food prices. It also points out that grain 
export restrictions are one factor contributing to soaring grain 
prices. 
 
The participants agreed to set up a climate investment fund to help 
developing countries take measures to prevent global warming. 
 
19) Environment fund to help developing countries; Japan, U.S., 
Britain aim to raise up to 10 billion dollars, calling on emerging 
countries to take part 
 
NIKKEI (Page 3) (Full) 
June 14, 2008 
 
Japan, the U.S., Britain and the World Bank on June 13 revealed 
their policy of seeking contributions from emerging countries as 
well as industrialized countries, such as the G-8 Nations, to a 
climate investment fund to be established as early as this summer. 
The fund is designed to help developing countries address global 
warming. The three lead donors and the World Bank aim to raise up to 
10 billion dollars, assuming the participation of China and India as 
well. 
 
The finance ministers of Japan, the U.S. and Britain, and the World 
Bank Group president on the 13th held a joint press briefing prior 
to the G-8 finance ministerial. Finance Minister Nukaga said, "I 
want to call on as many countries as possible to take part though 
the finance ministerial and the Lake Toya Summit." The U.S. treasury 
secretary noted: "I hope we can raise up to 10 billion dollars. We 
will be able to gain assistance from emerging countries with large 
economies." 
 
TOKYO 00001628  014 OF 015 
 
 
 
The World Bank will manage and control the funds, proposed by Japan, 
the U.S. and Britain, in providing funds and loans to developing 
countries. Japan will donate up to 1.2 billion dollars. Whether 
emerging countries will respond to the call is unclear. 
 
20) G-8 science and technology ministers vow to promote joint use of 
research facilities for technological development in addressing 
global warming 
 
YOMIURI (Page 2) (Full) 
June 16, 2008 
 
The first-ever G-8 science and technology ministerial was held on 
June 15 in Nago City, Okinawa. Participants agreed to large-scale 
research facilities so as to promote international cooperation in 
developing innovative technologies aimed at addressing the gradual 
global-scale climate change. 
 
State Minister for Science and Technology Kishida finalized the 
chairman's summary and released it at a press conference after the 
meeting. 
 
Regarding an approach to settling the global-scale environmental 
issue, the participants were in unison in emphasizing the importance 
of developing such innovative technologies as next-generation 
technology, fusion energy and carbon dioxide capture and storage, 
which will lead to a drastic cut in greenhouse gas emissions. The 
chairman's paper also noted that the G-8 nations and guest countries 
will promote international cooperation on the joint use of 
large-size facilities as well as to share information, setting up a 
new framework for a working-group meeting. 
 
21) Senior U.S. official expresses concern about Japan's lopsided 
Diet 
 
SANKEI (Page 7) (Full) 
June 16, 2008 
 
In a U.S. Congressional hearing on June 12, a senior U.S. official 
described Japan's divided Diet situation as "sailing in uncharted 
waters." The situation referred to is the ruling camp controlling 
the House of Representative, and the opposition camp in control of 
the House of Representatives. The official expressed concern about 
Japan's divided Diet as having delayed deliberations on bills and 
political decisions. The official stated that the pessimistic view 
is that the current unstable political situation in Japan would 
continue for several years. The official nonetheless expressed hope 
that Japan would play a leading role in the Group of Eight summit in 
July in Hokkaido. 
 
Deputy Assistant Secretary of State for East Asian and Pacific 
Affairs Alexander Arvizu made the statement before a hearing of the 
Subcommittee on Asia, the Pacific, and the Global Environment of the 
House Foreign Affairs Committee. It is rare for a U.S. government 
official to comment on Japan's domestic politics. 
 
22) Japan, China considering joint development of "Shirakaba" oil 
field, with Japan providing financing; Both sides now nailing down 
conditions 
 
NIKKEI (Page 1) (Excerpts) 
 
TOKYO 00001628  015 OF 015 
 
 
June 16, 2008 
 
The governments of Japan and China, in order to settle the issue of 
the development of gas fields in the E. China Sea, have begun to 
consider Japan possibly financing the "Shirakaba" gas field 
(Chunxiao in Chinese), which China is not developing on its own. The 
handling of the Shirakaba project is one of the major sticking 
points between the countries. If a compromise settlement can be 
reached, it will not be long before a final agreement can be reached 
on the gas-field development issue. 
 
Both countries have shelved the issue of designating the EEZ line as 
the boundary, since the gulf is too wide to fill. They have decided 
to resolve the issue of gas fields in the E. China Sea by joint 
development. Working level officials are now boiling down the 
conditions, and depending on the conclusion of those talks, a formal 
announcement will be made. 
 
SCHIEFFER