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Viewing cable 08TOKYO1643, JAPANESE MORNING PRESS HIGHLIGHTS 06/17/08

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Reference ID Created Released Classification Origin
08TOKYO1643 2008-06-17 01:04 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO0864
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1643/01 1690104
ZNR UUUUU ZZH
P 170104Z JUN 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5105
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0772
RUEHFK/AMCONSUL FUKUOKA 8397
RUEHOK/AMCONSUL OSAKA KOBE 2104
RUEHNAG/AMCONSUL NAGOYA 6655
RUEHKSO/AMCONSUL SAPPORO 8982
RUEHBJ/AMEMBASSY BEIJING 3929
RUEHUL/AMEMBASSY SEOUL 9927
RUCNDT/USMISSION USUN NEW YORK 0348
UNCLAS SECTION 01 OF 09 TOKYO 001643 
 
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 06/17/08 
 
 
Index: 
 
Opinion polls: 
1) Fuji-Sankei poll finds 61.3 PERCENT  of public not supporting the 
Fukuda Cabinet, up 2.3 points, while only 22 PERCENT  support it, a 
drop of 1.8 points  (Sankei) 
2) Yomiuri poll has the cabinet support rate at 25.1 PERCENT , a one 
point drop from last month, and the non-support rate up 1.3 PERCENT 
to 63.4 PERCENT   (Yomiuri) 
3) 59 PERCENT  of the public prefer revision of the medical services 
system for the elderly over scrapping it, and 53 PERCENT  are 
negative about the opposition camp's Diet stance  (Yomiuri) 
4) Asahi poll shows a slight recovery of the cabinet support rate to 
23 PERCENT , but the public is split over evaluating the 
opposition's censure motion against Fukuda  (Asahi) 
5) With the Fukuda cabinet's support rate still sliding, the ruling 
parties are becoming even more alarmed about its political future 
(Yomiuri) 
 
6) Daniel Russel picked as director of the State Department's Japan 
Desk  (Sankei) 
 
7) Policy debate intensifies in the Liberal Democratic Party over 
whether to stick to a pressure policy toward North Korea or opt for 
a dialogue approach  (Tokyo Shimbun) 
 
Taiwan crisis: 
8) After the sinking of a Taiwan fishing boat near the disputed 
Senkakus, Taiwan's representative to Japan resigns, angry over cries 
that he "sold out" Taiwan  (Asahi) 
9) Prime Minister Fukuda pleas for constraint on both sides of the 
ship-sinking incident  (Asahi) 
 
10) Japan, China to announce later this week an agreement on E. 
China Sea joint gas field development, including the Asunaro site 
(Sankei) 
 
Political developments: 
11) The Democratic Party of Japan's refusal to deliberate anything 
in the Diet following the censure motion is tearing apart the 
opposition alliance  (Nikkei) 
12) Former DPJ President Okada, apparently seeking the LDP 
presidency again, comes out with his first book that is critical of 
political realignment  (Tokyo Shimbun) 
13) International symposium in Kuala Lumpur worries about Prime 
Minister Fukuda's leadership  (Asahi) 
 
14) Prime Minister's panel on economic and fiscal policy set to 
include a proposal for an environmental tax in the 2008 set of 
policy guidelines  (Mainichi) 
 
15) Kishida named space development minister  (Asahi) 
 
Articles: 
 
1) Poll: Disapproval for Fukuda cabinet tops 60 PERCENT 
 
SANKEI (Page 1) (Abridged) 
June 17, 2008 
 
The Sankei Shimbun conducted a joint public opinion survey with Fuji 
News Network (FNN) on June 14-15, in which the rate of public 
 
TOKYO 00001643  002 OF 009 
 
 
support for Prime Minister Yasuo Fukuda and his cabinet reached a 
new low of 22.0 PERCENT , down 1.8 percentage points from the last 
survey taken Apr. 2-3. The nonsupport rate also rose 2.3 points from 
the last survey to 61.3 PERCENT . 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 24.0 PERCENT , down 3.4 points 
from the last survey. The leading opposition Democratic Party of 
Japan (Minshuto) rose 0.3 points to 24.6 PERCENT , topping the LDP 
for the first time under the Fukuda government. In the survey, 
respondents were asked about the form of government they would like 
to see after an election for the House of Representatives. To this 
question, 44.9 PERCENT  chose a grand coalition of the LDP and the 
DPJ, topping all other answers. Among other answers, 30.2 PERCENT 
picked a DPJ-led coalition, with 16.5 PERCENT  preferring an LDP-led 
coalition. 
 
2) Poll: Cabinet support at 25 PERCENT 
 
YOMIURI (Page 1) (Full) 
June 17, 2008 
 
The public approval rating for Prime Minister Fukuda's cabinet was 
25.1 PERCENT , down 1.0 percentage points from the preceding month, 
the Yomiuri Shimbun found from its face-to-face nationwide public 
opinion survey conducted June 14-15. The disapproval rating for the 
Fukuda cabinet improved to 63.4 PERCENT , showing a decrease of 1.3 
points. In the breakdown of public support for political parties, 
the ruling Liberal Democratic Party stood at 26.0 PERCENT , down 2.5 
points from the previous month. The leading opposition Democratic 
Party of Japan (Minshuto) was at 20.5 PERCENT , up 2.1 points. 
 
The Diet's current session became the first opportunity for 
full-fledged debate in its divided situation, with the ruling 
coalition holding a majority of the seats in its lower chamber and 
the opposition parties controlling its upper chamber. In the survey, 
respondents were asked if they thought the Diet has functioned as a 
place to decide on important policies for Japan. In response to this 
question, "yes" accounted for only 17 PERCENT , with "no" reaching 
73 PERCENT . Respondents were also asked if they approved the LDP 
and the DPJ when it comes to their Diet policies. To this question, 
66 PERCENT  answered "no" to the LDP, with 59 PERCENT  also saying 
"no" to the DPJ. Meanwhile, the House of Councillors passed a motion 
presented by the DPJ and other opposition parties to censure Fukuda. 
Asked about this, 50 PERCENT  answered that it was meaningless 
because it is not legally binding, with 36 PERCENT  saying it was 
meaningful because it made clear the upper chamber's intention. 
 
3) Poll: 59 PERCENT  support healthcare review for elderly 
 
YOMIURI (Page 2) (Abridged) 
June 17, 2008 
 
According to findings from a recent nationwide public opinion survey 
taken by the Yomiuri Shimbun, 36 PERCENT  answered "yes" and 61 
PERCENT  said "no" when asked if they approved of the government's 
newly introduced healthcare system for the elderly. However, "yes" 
increased 6 percentage points from the preceding month, with "no" 
decreasing 8 points. The public seems to have a better understanding 
on the new healthcare system. 
 
The government and the ruling coalition of the Liberal Democratic 
 
TOKYO 00001643  003 OF 009 
 
 
Party and New Komeito have come up with a plan to improve the new 
healthcare system, including measures to lighten the burden on those 
in lower income brackets. In the survey, 59 PERCENT  answered "yes" 
and 38 PERCENT  said "no" when respondents were asked if they 
approved of this plan. Meanwhile, the leading opposition Democratic 
Party of Japan (Minshuto) and other opposition parties are calling 
for restoring the previous healthcare system for the elderly. This 
opposition standpoint was also approved by 53 PERCENT . 
 
4) Poll: Cabinet support inches up to 23 PERCENT 
 
ASAHI (Page 1) (Full) 
June 17, 2008 
 
The rate of public support for Prime Minister Fukuda's cabinet 
inched up to 23 PERCENT  in a telephone-based nationwide public 
opinion survey conducted June 14-15 from the 19 PERCENT  rating in 
the last survey taken May 17-18. The nonsupport rate was 59 PERCENT 
(65 PERCENT  in the last survey). The support rate picked up but 
still remains low. Meanwhile, public opinion was split over the 
House of Councillors' recent passage of a motion censuring Fukuda, 
with 42 PERCENT  saying "yes" and 39 PERCENT  saying "no" when asked 
if they approved the motion. 
 
Among those who support the leading opposition Democratic Party of 
Japan (Minshuto), 63 PERCENT  answered "yes" when asked if they 
approved the passage of the censure motion against Fukuda. Among 
those with no particular party affiliation, "yes" accounted for 41 
PERCENT  to the same question, with "no" at 35 PERCENT . Among those 
who support the ruling Liberal Democratic Party, 26 PERCENT 
answered "yes." 
 
One of the reasons for censuring Fukuda was the government's newly 
introduced healthcare system for the elderly. The government and the 
ruling parties have decided to amend and maintain the system, while 
the opposition camp is insisting on abolishing it. In the survey, 
respondents were asked which side they approved. To this question, 
30 PERCENT  chose the ruling coalition (no change from 30 PERCENT 
in the last survey), with 49 PERCENT  picking the opposition camp 
(53 PERCENT  in the last survey). There is still a strong backlash 
to the system. 
 
The Diet has now substantially wound up its current ordinary 
session. In the survey, respondents were asked about the Diet's 
divided situation, in which the ruling coalition holds a majority of 
the seats in its lower chamber while the opposition camp controls 
its upper chamber. When asked if it was good, 41 PERCENT  answered 
"yes," with 36 PERCENT  saying "no." Among those who support the 
DPJ, which has had some of its standpoints adopted in the Diet, 
"yes" accounted for 59 PERCENT . Among those unaffiliated, "yes" 
accounted for 37 PERCENT , with "no" at 33 PERCENT . Even among LDP 
supporters, "yes" accounted for 30 PERCENT . It seems that the 
public does not necessarily take a negative view of the Diet's 
divided situation. 
 
Meanwhile, Prime Minister Fukuda has proposed a comprehensive 
package of environmental countermeasures, including a long-term goal 
for greenhouse gas emissions cuts. In the survey, 74 PERCENT 
answered "yes" while 13 PERCENT  said "no" when asked if they 
approved this proposal. The government plans to start emissions 
trading this fall. Asked about this system, "yes" accounted for 45 
PERCENT , with "no" at 25 PERCENT . 
 
TOKYO 00001643  004 OF 009 
 
 
 
Respondents were also asked about the issue of Japanese nationals 
abducted to North Korea. North Korea has now promised to look again 
into this issue, and the Japanese government has decided to ease 
some of its sanctions on North Korea. When asked if progress could 
be expected, "yes" accounted for only 12 PERCENT , with "no" 
reaching 80 PERCENT . 
 
In the breakdown of public support for political parties, the LDP 
stood at 22 PERCENT  (leveling off from the 22 PERCENT  rating in 
the last survey), with the DPJ at 22 PERCENT  (26 PERCENT  in the 
last survey). 
 
5) Poll: Cabinet approval rate falls to the lowest level 
 
YOMIURI (Page 4) (Full) 
June 17, 2008 
 
The approval rating for the cabinet of Prime Minister Yasuo Fukuda 
has fallen to 25.1 PERCENT , nearly unchanged from the rate 
registered in the previous survey, according to a June poll 
conducted by the Yomiuri Shimbun. There is a view in the ruling 
parties that the declining cabinet support rate has now bottomed 
out. 
 
Liberal Democratic Party (LDP) Secretary General Bunmei Ibuki told 
the press yesterday: "The public trust in the Prime Minister, who 
has made various instructions and has taken the initiative in 
dealing with matters, led to the approval rate." The ruling 
coalition has analyzed that the cabinet's efforts for enacting a 
bill revising the civil servant system and measures to prevent 
global warming were supported by the public. 
 
However, the approval rates still remain at a low level. LDP Upper 
House Chairman Hidehisa Otsuji told reporters: "We cannot be pleased 
at the fact by saying the cabinet approval rate has stopped 
falling." 
 
Prime Minister Fukuda told the press corps yesterday: "Since that is 
outside my control, I have no choice but to take the outcome." 
 
Meanwhile, Democratic Party of Japan (DPJ) Secretary General Yukio 
Hatoyama said: "The disapproval rates greatly surpassed the approval 
rates. The Prime Minister should take them as a no-confidence 
motion." 
 
6) Daniel Russel to be appointed Japan desk director at U.S. 
Department of State 
 
SANKEI (Page 3) (Full) 
June 17, 2008 
 
A source connected to U.S.-Japan relations revealed yesterday that 
Osaka-Kobe Consul General Daniel Russel will be appointed as Japan 
desk director at the U.S. Department of State. His formal 
appointment is expected in early July. Russel served as an assistant 
to Ambassador Mike Mansfield from 1985 to 1987 at the U.S. Embassy 
in Tokyo. He is a Japan expert with ample experience in working in 
Japan. He also served at the U.S. mission in the United Nations 
Headquarters in New York from 1989 to 1992. He served as deputy 
chief of mission in Cyprus from 1999 to 2002 and as deputy chief of 
mission in the Netherlands from 2002 to 2005. 
 
TOKYO 00001643  005 OF 009 
 
 
 
7) Pressure or dialogue? Divisions intensifying in LDP due to 
government's decision to partially lift sanctions on North Korea 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 17, 2008 
 
In the wake of the government's decision to partially lift sanctions 
on North Korea, the conflict is intensifying in the Liberal 
Democratic Party between those calling for pressure and those for 
dialogue in dealing with the North. 
 
Those critical of the Fukuda administration's measures include 
former Prime Minister Shinzo Abe, former Policy Research Council 
Chairman Shoichi Nakagawa, and Lower House member Keiji Furuya, who 
have insisted on the need to apply pressure by means of economic 
sanctions and other steps. 
 
Fearing that an excessive tilt toward dialogue would end up putting 
the abduction and nuclear issues on the backburner, Abe expressed a 
sense of alarm, saying: "The policy course rejecting pressure has 
not resulted in anything." 
 
Furuya, who is the chief secretary of a parliamentary league on the 
abduction issue, released a statement yesterday urging the 
government to immediately implement stiffer sanctions against the 
North in the event there is no specific progress (on the abduction 
issue). 
 
Meanwhile, such members as former LDP Vice President Taku Yamasaki 
and former Secretary General Koichi Kato, who have urged the prime 
minister to shift the policy direction to dialogue in the view that 
pressure would not bring progress to outstanding issues, have 
repeatedly made comments welcoming the government's measures. 
 
Yamasaki appearing on a television program on June 16 said: 
"Although my prediction that the government would decide on energy 
aid (to North Korea) has not come true, (the latest Japan-DPRK 
talks) have proven fruitful." 
 
Yamasaki and Kato eye acceleration of the dialogue policy course by, 
for instance, exploring a supra-partisan delegation to the North. 
 
8) Sinking of Taiwanese fishing boat near Senkaku Islands: Top 
representative in Japan expresses intention to step down, upset by 
criticism that he is a "traitor" 
 
ASAHI (Page 8) (Full) 
June 17, 2008 
 
Koh Se-Kai (73), head of the Taipei Economic and Cultural 
Representative Office in Japan, who was recalled to Taiwan on June 
15, held a press conference on the 16th and expressed his intention 
to quit over the sinking of a Taiwanese fishing boat after a 
collision with a Japan Coast Guard patrol boat near the Senkaku 
Islands. 
 
As a reason for his decision to resign, Koh noted that when he 
called for a calm response in Taiwan, lawmakers of the ruling 
Kuomintang (KMT) harshly criticized him as a traitor. He said that 
it is intolerable to remain in office any longer. 
 
 
TOKYO 00001643  006 OF 009 
 
 
Koh conveyed his intention to the Foreign Ministry. Upon receiving 
approval, he will formally step down. He is an elder of Taiwan's 
independence movement. Having lived in Japan for more than 30 years, 
he has many acquaintances in Japanese political circles. 
 
The Taiwanese parliament and Ministry of National Defense yesterday 
conferred on the dispatch of Navy vessels to waters around the 
Senkaku Islands, which Taiwan is looking into on the basis of 
demonstrating its sovereignty and protecting its fishing boats. 
However, no decision was reached. 
 
Concerning growing anti-Japanese sentiments in Taiwan, the Exchange 
Association, Japan's point of contact in Taiwan, on the 16th alerted 
Japanese residents in Taiwan, noting that with an anti-Japanese mood 
growing, there is the possibility of the safety of Japanese living 
in Taiwan being affected. 
 
9) Prime Minister Fukuda calls for self-restraint both from Japan 
and Taiwan 
 
ASAHI (Page 8) (Full) 
June 17, 2008 
 
Prime Minister Fukuda on the evening of June 16 indicated his stance 
to reporters at the Prime Minister's Office (Kantei) that both 
Taiwan and Japan need to exercise self-restraint. He said: "Japan 
and Taiwan have had a good relationship. It is necessary for both 
sides to exercise self-restraint. In particular, Taiwan needs to 
cope with the matter in a cool-headed manner. I believe our country 
should also tackle the issue in a cool-headed manner." 
 
10) Japan, China also agree on joint development of Asunaro gas 
field 
 
SANKEI (Page 5) (Excerpts) 
June 17, 2008 
 
Japan and China have agreed to jointly develop the area encompassing 
the Asunaro (Longjing in Chinese) gas field, splitting the 
development costs on a 50-50 basis, it was learned yesterday. The 
two countries have engaged in negotiations on the development of 
four gas fields in areas straddling the median line between the two 
countries in the East China Sea. Coordination is now underway in 
preparation for the official announcement of the joint development 
plan by the end of this week. Joint development has been a thorny 
issue between the two countries since Japan protested China's 
independent development of a gas field in June 2004. But the dispute 
is now likely to come to a resolution of sorts. 
 
Even so, there is a slight perception difference between the area 
encompassing the Asunaro gas field as Japan envisions and the area 
encompassing the Longjing gas field as China cites. Given this, both 
sides have to iron out the difference. 
 
As the demarcation line between Japan and China, Japan has cited the 
median line, while China has insisted on the Okinawa Trough. 
 
In the talks held so far, the two countries separated the 
demarcation issue and agreed on the joint development of the areas 
that straddle the median line. China has invested significant funds 
in the development of the Shirakaba (Chunxiao in Chinese) gas field, 
triggering a dispute with Japan. Japan will also finance the 
 
TOKYO 00001643  007 OF 009 
 
 
development of this gas field and be given some concession rights. 
 
But Japan will not allow China to develop gas fields, including 
joint development, in areas on the Japanese side and will invest 
only in developing gas fields in areas on the Chinese side. Both 
countries will continue negotiations on cooperation in developing 
the remaining two gas fields named Kusunoki (Duanqiao) and Kashi 
(Tianwaitian). 
 
11) DPJ's boycott of deliberations creates discord among opposition 
parties; Lower House committee meeting toady to discuss quake 
damage; JCP calls for deliberations on bill abolishing medical 
insurance system for elderly 
 
NIKKEI (Page 2) (Excerpts) 
June 17, 2008 
 
The major opposition Democratic Party of Japan's strategy of 
boycotting Diet deliberations has caused visible discord among 
opposition parties. The DPJ has decided, however, to attend 
deliberations on matters connected with Saturday's major earthquake 
as an exceptional case in view of their highly urgent nature. The 
Japanese Communist Party is also calling for starting Lower House 
deliberations on a bill abolishing the medical insurance system for 
those aged 75 and older. Both hard-line and flexible views exist in 
the DPJ as well. The DPJ leadership from President Ichiro Ozawa on 
down is now under pressure to make a difficult decision while with 
an eye on public opinion. 
 
In yesterday's Lower House Anti-disaster Special Committee directors 
meeting, the ruling and opposition blocs agreed to hear the 
government's measures for the Iwate-Miyagi Inland Earthquake from 
Disaster Minister Shinya Izumi in a committee meeting on June 17. In 
an Upper House Anti-disaster Special Committee meeting, the DPJ also 
called for a committee meeting, but it was postponed because the LDP 
expressed unwillingness. 
 
After the Upper House adopted a censure motion against Prime 
Minister Yasuo Fukuda on June 11, the DPJ came up with a policy 
course of boycotting all Diet deliberations, including talks on a 
timetable. Nevertheless, in a June 15 meeting of the Diet affairs 
chiefs of three opposition parties -- the DPJ, Social Democratic 
Party, and the People's New Party - they confirmed a policy 
direction of handling deliberations on matters connected with the 
earthquake as exceptions. 
 
JCP Secretariat Head Tadayoshi Ichida in a press conference 
yesterday expressed his party's eagerness to explain even 
independently (the bill abolishing the medical insurance system for 
the elderly) and take questions in the Diet, saying: "Like disaster 
relief, the medical insurance system is urgent and concerns people's 
lives." JCP Diet Affairs Committee Chairman Keiji Kokuta requested 
in a meeting with his DPJ counterpart Kenji Yamaoka a session 
between the secretaries general of the two parties for returning to 
deliberations. In response, Yamaoka bluntly said, "There is no one 
in the Diet." 
 
One DPJ member complained about the stance of his party, saying: 
"Our party's posture is hard to understand for the general public." 
A Diet Affairs Committee executive also commented: "The bill 
abolishing the new medical insurance system is closely associated 
with the people's livelihood, so we should deliberate on it." 
 
TOKYO 00001643  008 OF 009 
 
 
 
12) DPJ's Okada in book: Political realignment argument 
irresponsible 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 17, 2008 
 
Katsuya Okada, a vice president of the main opposition Democratic 
Party of Japan (DPJ), will publish on June 18 for the first time a 
book titled Political Change Will Change This Country. In his first 
book, Okada criticized calls for political realignment for "totally 
irresponsible." He also writes that it is difficult for him to 
understand moves of some DPJ lawmakers taking part in the political 
realignment argument. 
 
Okada in the book details his political career from 1993 when he 
left the Liberal Democratic Party (LDP) through the DPJ's defeat in 
the 2005 House of Representative election. During that period, Okada 
made efforts to bring about politics that would enable political 
change. He, however, does not refer to the internal party situation, 
including his assessment of DPJ President Ichiro Ozawa. 
 
Although speculation has been rife that publishing a book prior to 
the September party leadership race is his expression for 
challenging again the presidential post, Okada denied such 
speculation, saying: "I wrote the book in order to bring about 
political change. It has nothing to do with the leadership race." 
 
13) Question about Fukuda's leadership raised in World Economic 
Forum 
 
ASAHI (Page 10) (Full) 
June 17, 2008 
 
(Kono, Kuala Lumpur) 
 
"In Japan, there has been a change of prime ministers frequently. 
Can Prime Minister Fukuda take the leadership, although his term 
office is expected to be short?" 
 
One participant asked the above question to former Foreign Minister 
Yoriko Kawaguchi in a luncheon, hosted by Japan, at the East Asia 
Conference of the World Economic Forum held through June 16 in Kuala 
Lumpur, Malaysia. The question came when she was showing during her 
speech a videotape in which Prime Minister Fukuda spoke of his 
enthusiasm for the upcoming Lake Toya Summit in July. 
 
Kawaguchi, who is proficient in English, first said: "Prime Minister 
Fukuda's term of office might be long," adding: "In Japan, there are 
frequent changes in prime ministers, but the Liberal Democratic 
Party has held political power for a very long time." She thus 
emphasized that there is no cause of concern about the hosting the 
G-8 Summit and the policy management after the Summit. 
 
14) Draft basic policy guidelines note consideration of introduction 
of environment tax: No mention of specific timeframe for consumption 
tax hike 
 
MAINICHI (Page 2) (Full) 
June 17, 2008 
 
The draft of basic policy guidelines on economic and fiscal 
 
TOKYO 00001643  009 OF 009 
 
 
management and structural reforms for the fiscal 2008 national 
budget, which the government will adopt at a cabinet meeting later 
this month, was revealed yesterday, June 16. Regarding the drastic 
reform of the tax code in the wake of the reallocation of 
special-purpose road construction revenues for other uses, the draft 
mentions that the overall tax code should be reviewed from the 
viewpoint of promoting a low-carbon society, including the handling 
of the envisaged environmental tax. In line with this policy 
proposal, the draft puts forward a stance of looking into the 
introduction of an environmental tax, including the reform of the 
gas tax to secure revenues from provisional rates imposed on the gas 
tax and other related taxes. 
 
However, a decision on when to actually implement the drastic reform 
of the tax code, including a consumption tax hike, has been put off 
with the draft simply noting that the drastic reform of the tax 
system, including the consumption tax, should be realized at an 
early date. 
 
State Minister for Economic and Fiscal Policy Hiroko Ota will submit 
the draft to the Council on Economic and Fiscal Policy chaired by 
Prime Minister Yasuo Fukuda on June 17. The will then be adopted on 
the 23rd after coordination between the government and the ruling 
parties. It will be formally adopted at a cabinet meeting at the end 
of the month. 
 
The draft notes that the package reform of expenditures and revenues 
designed to achieve fiscal soundness, included in the basic policy 
guidelines for fiscal 2006, should be kept in place. According to 
this policy line, it indicates a stance of realizing a zero-waste 
government, based on the introduction of a private-sector business 
management method, noting that maximum spending cuts is to be 
carried out without backing off previous reform efforts. 
 
15) Kishida tapped as space development minister 
 
ASAHI (Page 4) (Full) 
June 17, 2008 
 
Prime Minister Fukuda decided yesterday to appoint Minister of State 
for Science and Technology Policy Fumio Kishida as space development 
minister to be newly set up based on the Basic Space Law, which was 
enacted in May. Kishida will be formally appointed today. 
 
The Basic Space Law lifts the ban on the use of space for defense 
purposes. The law also upgrades space development to a national 
strategy and governs how to arrange a system led by the government. 
Specifically, a space development strategy office will be 
established in the cabinet, with the prime minister as head and the 
chief cabinet secretary and the space development minister as deputy 
heads. The strategy office will be tasked with drawing up a basic 
space plan to comprehensively promote measures related to space 
development. 
 
SCHIEFFER