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RUCNDT/USMISSION USUN NEW YORK 0358

UNCLAS SECTION 01 OF 13 TOKYO 001653 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 06/17/08 
 
INDEX: 
 
(1) Poll on Fukuda cabinet, political parties, censure motion 
against Fukuda, new healthcare system for elderly (Tokyo Shimbun) 
 
(2) Poll on Fukuda cabinet, political parties, new healthcare system 
for elderly, North Korea (Mainichi) 
 
(3) Postal rebels: LDP Election Committee informally nominates 
Horiuchi, Hori as candidates for next Lower House election: 
"Assassins" fiercely oppose decision (Mainichi) 
 
(4) Prime minister reveals his own initiatives, including global 
warming measures, establishment of consumer agency, without waiting 
for experts' proposals: Changes approach due to mistrust in 
bureaucrats (Mainichi) 
 
(5) Okada makes no reference while Maehara shows confrontational 
stance toward DPJ President Ozawa, three months before party 
presidential race (Mainichi) 
 
(6) DPJ strategy of boycotting Diet deliberations wavering, faced 
with public criticism (Yomiuri) 
 
(7) Idea of taking revote on bill revising Defense Ministry 
Establishment Law suddenly crops up in LDP (Tokyo Shimbun)  8 
(8) Divided Diet (Part 2): Ruling coalition trying to slice down DPJ 
with eye on political realignment (Nikkei) 
 
(9) TOP HEADLINES 
 
(10) EDITORIALS 11 
 
(11) Prime Minister's schedule, June 16 (Nikkei) 
 
ARTICLES: 
 
(1) Poll on Fukuda cabinet, political parties, censure motion 
against Fukuda, new healthcare system for elderly 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 14, 2008 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote the results of the 
last survey conducted May 1-2.) 
 
Q: Do you support the Fukuda cabinet? 
 
Yes 25.0 (19.8) 
No 60.2 (66.6) 
Don't know (D/K) + no answer (N/A) 14.8 (13.6) 
 
Q: (Only for those who answered "yes" to the previous question) 
What's the primary reason for your approval of the Fukuda cabinet? 
Pick only one from among those listed below. 
 
The prime minister is trustworthy 20.4 (16.1) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
New Komeito 12.6 (16.4) 
The prime minister has leadership ability 1.2 (0.8) 
Something can be expected of its economic policies 5.0 (4.6) 
 
TOKYO 00001653  002 OF 013 
 
 
Something can be expected of its foreign policies 3.6 (4.1) 
Something can be expected of its political reforms 3.7 (3.5) 
Something can be expected of its tax reforms 0.9 (0.8) 
Something can be expected of its administrative reforms 0.7 (3.6) 
There's no other appropriate person (for prime minister) 47.1 
(48.1) 
Other answers (O/A) 1.3 (0.7) 
D/K+N/A 3.5 (1.3) 
 
Q: (Only for those who answered "no" to the first question) What's 
the primary reason for your disapproval of the Fukuda cabinet? Pick 
only one from among those listed below. 
 
The prime minister is untrustworthy 11.5 (11.1) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 5.2 (4.5) 
The prime minister lacks leadership ability 28.7 (25.7) 
Nothing can be expected of its economic policies 22.2 (26.6) 
Nothing can be expected of its foreign policies 1.8 (1.3) 
Nothing can be expected of its political reforms 9.3 (8.0) 
Nothing can be expected of its tax reforms 6.4 (11.6) 
Nothing can be expected of its administrative reforms 4.7 (6.9) 
Don't like the prime minister's personal character 5.3 (3.3) 
O/A 1.8 (0.3) 
D/K+N/A 3.1 (0.7) 
 
Q: The House of Councillors passed a motion censuring Prime Minister 
Yasuo Fukuda with a majority of votes from the Democratic Party of 
Japan and other opposition parties. What do you think Prime Minister 
Fukuda should do? 
 
He does not have to resign because the motion is not legally binding 
30.0 (18.5) 
His cabinet should resign en masse 8.4 (8.4) 
He should dissolve the House of Representatives for a general 
election 56.2 (68.1) 
D/K+N/A 5.4 (5.0) 
 
 
Q: Now that the House of Councillors has passed a motion censuring 
the prime minister, the DPJ will likely refuse Diet deliberations 
from the outset of the next Diet session expected to be called this 
summer or later. Do you support the DPJ's stance of refusing Diet 
deliberations? 
 
Yes 17.3 
No 68.6 
D/K+N/A 14.1 
 
Q: The House of Representatives' current term runs through September 
¶2009. When would you like the next election to be held for the House 
of Representatives? 
 
As early as possible, this summer or earlier 22.0 
This fall or later, within this year 36.4 
During the first half of next year 10.9 
When the term ends in September next year 23.5 
D/K+N/A 7.2 
 
Q: Some LDP lawmakers say the multiple-seat constituency system 
should be restored. Do you support this idea? 
 
 
TOKYO 00001653  003 OF 013 
 
 
Yes 32.2 
No 38.5 
D/K+N/A 29.3 
 
Q: The government and the ruling parties plan to improve the newly 
introduced healthcare system for the elderly. Specifically, the 
ruling coalition will not change the new system's framework but will 
lighten the burden on those in lower income brackets. Meanwhile, the 
DPJ and other opposition parties are calling for the new system to 
be abolished. What do you think about this? 
 
Improve the new system 44.9 (44.0) 
Abolish the new system 47.0 (46.5) 
D/K+N/A 8.1 (9.5) 
 
Q: What do you think about the idea of raising the consumption tax 
rate in a reform of the tax system for next fiscal year in order to 
secure revenue for social security, the costs of which are growing 
due to the aging population? Do you support this idea? 
 
Yes 36.9 
No 56.6 
D/K+N/A 6.5 
 
Q: Would you like the present LDP-led coalition government to 
continue, or would you otherwise like it to be replaced with a 
DPJ-led coalition government? 
 
LDP-led coalition government 35.1 (26.7) 
DPJ-led coalition government 40.4 (50.0) 
D/K+N/A 24.5 (23.3) 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 29.1 (24.3) 
Democratic Party of Japan (DPJ or Minshuto) 23.6 (30.3) 
New Komeito (NK) 3.2 (3.6) 
Japanese Communist Party (JCP) 3.9 (3.7) 
Social Democratic Party (SDP or Shaminto) 1.7 (1.6) 
People's New Party (PNP or Kokumin Shinto) --- (0.7) 
New Party Nippon (NPN or Shinto Nippon) --- (---) 
Other political parties, groups --- (---) 
None 35.3 (34.4) 
D/K+N/A 3.2 (1.4) 
 
Polling methodology: The survey was conducted across the nation on 
June 12-13 by Kyodo News Service on a computer-aided random digit 
dialing (RDD) basis. Among randomly generated telephone numbers, 
those actually for household use with one or more eligible voters 
totaled 1,458. Answers were obtained from 1,024 persons. 
 
(2) Poll on Fukuda cabinet, political parties, new healthcare system 
for elderly, North Korea 
 
MAINICHI (Page 2) (Full) 
June 16, 2008 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: Do you support the Fukuda cabinet? 
 
 
TOKYO 00001653  004 OF 013 
 
 
 T P M F 
Yes 21 (18) 21 22 
No 60 (61) 65 55 
Not interested 17 (19) 13 20 
 
Q: (Only for those who answered "yes" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 36 
(37) 36 37 
Because something can be expected of the prime minister's leadership 
9 (8) 11 8 
Because there's something stable about the prime minister 28 (28) 23 
32 
Because something can be expected of the prime minister's policy 
measures 15 (18) 17 12 
 
Q: (Only for those who answered "no" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 7 
(8) 8 7 
Because nothing can be expected of the prime minister's leadership 
31 (37) 33 30 
Because there's no fresh image about the prime minister 5 (5) 4 6 
Because nothing can be expected of the prime minister's policy 
measures 54 (49) 53 56 
 
Q: Which political party do you support? 
 
 T P M F 
Liberal Democratic Party (LDP) 21 (20) 21 21 
Democratic Party of Japan (DPJ or Minshuto) 25 (28) 31 19 
New Komeito (NK) 4 (3) 2 5 
Japanese Communist Party (JCP) 4 (3) 4 4 
Social Democratic Party (SDP or Shaminto) 1 (3) 1 1 
People's New Party (PNP or Kokumin Shinto) 1 (0) 1 1 
New Party Nippon (NPN or Shinto Nippon) 0 (1) 0 -- 
Other political parties 1 (1) 1 1 
None 40 (39) 36 44 
 
Q: The government's newly introduced healthcare system for the 
elderly encountered harsh criticism from the public. In response, 
the government and the ruling parties decided to take alleviative 
measures, such as lightening the burden on those in lower income 
brackets. Do you support this? 
 
 T P M F 
Yes 44  40 48 
No 48  53 42 
 
Q: Four opposition parties have presented a bill to abolish the new 
healthcare system for the elderly and restore the previous system. 
However, the ruling parties are opposed to the move. Do you support 
the idea of restoring the previous healthcare system? 
 
 T P M F 
Yes 56  59 54 
No 30  32 27 
 
Q: The DPJ has taken a confrontational stand against the governing 
parties in the current ordinary Diet session. Do you approve this 
 
TOKYO 00001653  005 OF 013 
 
 
DPJ response? 
 
 T P M F 
Yes 47 (41) 49 45 
No 43 (51) 44 42 
 
Q: The House of Councillors passed a motion censuring Prime Minister 
Fukuda. Prime Minister Fukuda will not dissolve the House of 
Representatives and will not step down. Do you approve this 
response? 
 
 T P M F 
Yes 29  27 30 
No 61  64 58 
 
Q: North Korea has promised to look again into the issue of Japanese 
nationals abducted to North Korea and turn over Japan Airlines 
hijackers. In response, the Japanese government decided to lift some 
of its sanctions on North Korea. Do you approve this decision? 
 
 T P M F 
Yes 34  37 31 
No 55  55 56 
 
(Note) Figures shown in percentage, rounded off. "0" indicates that 
the figure was below 0.5 PERCENT . "--" denotes that no respondents 
answered. "No answer" omitted. Figures in parentheses denote the 
results of the last survey conducted May 1-2. 
 
Polling methodology: The survey was conducted June 14-15 over the 
telephone across the nation on a computer-aided random digit 
sampling (RDS) basis. Answers were obtained from 1,008 persons. 
 
(08061607im) Back to Top 
 
 
(3) Postal rebels: LDP Election Committee informally nominates 
Horiuchi, Hori as candidates for next Lower House election: 
"Assassins" fiercely oppose decision 
 
MAINICHI (Page 5) (Almost full) 
June 17, 2008 
 
The Liberal Democratic Party (LDP) on June 16 informally decided to 
officially endorse former General Council Chairman Mitsuo Horiuchi 
as a candidate for the Yamanashi No. 2 Constituency and former 
Education Minister Kosuke Hori for the Saga No. 3 Constituency in 
the next Lower House election. Two incumbent lawmakers have been 
contesting to secure nomination in those constituencies. The LDP has 
thus picked former "postal rebels," who opposed postal privatization 
in the 2005 election, to run for seats in the next Lower House 
election. However, so-called "assassins" dispatched by the Koizumi 
administration to beat postal rebel candidates in the previous Lower 
House election -- Kotaro Nagasaki (incumbent Lower House member for 
the South Kanto proportional representation bloc) and Motoko Hirotsu 
(incumbent Lower House member for the Kyushu representation bloc), 
who lost the battle for LDP sponsorship this time, are fiercely 
opposing the party's decision, giving rise to a source of internal 
contention. 
 
Election Committee Chairman Makoto Koga and Vice Chairman Yoshihide 
Suga held talks separately with senior members of the LDP Yamanashi 
 
TOKYO 00001653  006 OF 013 
 
 
and Saga Chapters at the party headquarters and conveyed their 
informal decisions to them 
 
Suga after the press conference told reporters, "We have chosen 
persons who can win." Hirotsu on the afternoon of the 16th told 
reporters, "I do not feel that's likely,  following the party 
decision." Nagasaki was also angy at the party decision, saying, "I 
do not understand in what way I am inferior to the person chosen. I 
want the party to reconsider its decision." 
 
The Party Election Committee had said that it would adopt objective 
numbers, such as the number of party members the candidates acquired 
as standards for officially endorsing them. Nagasaki had the largest 
number of people join the LDP last year. As such, there is vagueness 
about the reasons why Nagasaki and Hirotsu were not chosen. As a 
remedial measure, there is an idea of giving special treatment to 
Nagasaki, by placing him in the upper echelon of the proportional 
representation list. However, Nagasaki is determined to decline such 
an offer. 
 
(4) Prime minister reveals his own initiatives, including global 
warming measures, establishment of consumer agency, without waiting 
for experts' proposals: Changes approach due to mistrust in 
bureaucrats 
 
MAINICHI (Page 5) (Full) 
June 17, 2008 
 
Prime Minister Yasuo Fukuda has recently released his own 
initiatives before experts' groups came up with policy proposals. 
The Round-Table to Discuss the Global Warming Issue, chaired by 
Hiroshi Okuda, advisor to Toyota Motors, released a package of 
proposals on June 16. However, the prime minister had released its 
specifics as the Fukuda Vision on the 9th. He also released the 
consumer agency initiative without waiting for the issuance of the 
final report. Mistrust in bureaucrats appears to be behind this 
behavior. However, persons close to the prime minister are perplexed 
at his bypassing them. 
 
The prime minister at first intended to release the Fukuda Vision, 
after the panel released its proposals. However, the panel was 
having difficulty coordinating views of the Foreign Ministry, the 
Ministry of Economy, Trade and Industry and the Environment Ministry 
with its proposal for adopting a domestic carbon emissions trading 
system meeting strong opposition. Feeling frustrated, the prime 
minister complete the Fukuda Vision with several staff members and 
released it without notice. 
 
Regarding the consumer agency issue as well, the prime minister 
released a plan for the establishment of a consumer agency in 2009 
on April 23, when discussion on the issue was still half-baked. The 
Consumer Administration Promotion Council, chaired by Takeshi 
Sasaki, professor at Gakushuin University, was set to release a 
final plan on June 13. Anticipating resistance from government 
agencies, he led the move to release the plan. 
 
The prime minister has aimed at coordination-based policy-making 
style in cooperation with various government agencies, disliking 
former Prime Minister Junichiro Koizumi's top-down policy-making 
formula. However, he appears to have gradually changed his approach, 
deepening mistrust in bureaucrats due to a series of blunders made 
by them and the Ministry of Health, Labor and Welfare's response 
 
TOKYO 00001653  007 OF 013 
 
 
regarding the new health care plan for the elderly aged 75 or 
older. 
 
A government source spoke for the prime minister's stand, noting, 
"Nothing will be decided through coordination among various 
government agencies." However, the government agencies' side is 
increasingly becoming discontent with the prime minister's approach, 
with one Foreign Ministry official noting, "There is concern about 
the prime minister making mistakes, if he does not properly use 
government offices, which have expertise." 
 
(5) Okada makes no reference while Maehara shows confrontational 
stance toward DPJ President Ozawa, three months before party 
presidential race 
 
MAINICHI (Page 5) (Full) 
June 17, 2008 
 
Katsuya Okada, vice president of the Democratic Party of Japan 
(DPJ), will publish on June 18 his first book titled, "A change of 
government" (Kodansha Ltd.). In the book, Okada sums up the 
political activities he carried out until he stepped down as party 
head in 2005. He stresses the need for a change of government. But 
the book makes no comment about President Ichiro Ozawa. Meanwhile, 
Seiji Maehara, another vice party president, cites in a contribution 
to a monthly magazine three major policy differences between him and 
Ozawa as points of contention in the upcoming party presidential 
race. Now that the two vice presidents are coming under the 
spotlight in the run-up to the presidential election three months 
from now, party members are discussing the differences in their 
policy stances. 
 
Okada writes that when he was elected to the House of 
Representatives for the first time in 1990, he regarded then Liberal 
Democratic Party (LDP) Secretary General Ozawa the "father of the 
political world." The book explains why Okada publicly voiced an 
objection for the first time to Ozawa's move to disband Shinshinto 
(the New Frontier Party) and departed from his following in 1997. 
But in his book, without mentioning the present state of his 
relations with Ozawa, Okada suggests that there is a feeling of 
distance from him, stating, "I see him as my senior in the political 
world." In order for the party to grab political power, Okada 
stresses the necessity of party unity. He lists as the areas in 
which he intends to carry out reform on a priority bases should his 
party assume political power: (1) social security; (2) 
decentralization; and (3) fiscal structural reform. 
 
Meanwhile, Maehara, in an article titled "Can the Democratic Party 
take over the reins of government?" in the July edition of the 
monthly Voice, lists such policies as income compensation to each 
farmer, decentralization to divide all local districts across the 
nation into 300 municipalities; and priority given to the United 
Nations. He then highlights the differences between his policy 
stances and those of Ozawa. He emphasizes that in order to win the 
next party presidential race, "Thorough debate with President Ozawa 
is necessary in the campaign." 
 
Asked about his running in the presidential race, Okada states, "I 
would like to refrain from making any comment." But Maehara has told 
his close aides: "I don't want to run for the election, but if 
nobody stands as a candidate, I feel I would have to run in it." 
 
 
TOKYO 00001653  008 OF 013 
 
 
(6) DPJ strategy of boycotting Diet deliberations wavering, faced 
with public criticism 
 
YOMIURI (Page 4) (Full) 
June 17, 2008 
 
The Democratic Party of Japan (DPJ) has boycotted deliberations in 
the two Houses of the Diet since a censure motion against Prime 
Minister Fukuda was adopted in the House of Councillors. But some 
party members have begun to move to return to Diet deliberations. 
They have decided to attend a meeting of the House of 
Representatives Anti-Disaster Committee today. In addition, they are 
willing to attend the meetings of each committee and a plenary 
session to be held on June 19-20 for adopting the procedures to 
adjourn the Diet session. Asked about what response the party would 
take in the next extraordinary Diet session, a DPJ executive 
replied: "Our stance of refusing deliberations under the censured 
prime minister will remain unchanged." But some DPJ members are 
calling on the leadership to review this Diet strategy. 
 
Special case 
 
Meeting with his Japanese Communist Party (JCP) counterpart Keiji 
Kokuda in the Diet Building yesterday, DPJ Diet Affairs Committee 
Chairman Kenji Yamaoka pointed out the propriety of the DPJ's 
stance. Yamaoka said: "We will attend meetings on working out 
countermeasures against natural disasters as a special case, because 
such is a humanitarian task. The health insurance system for people 
aged 75 or older is a different matter because that is a policy 
issue." 
 
Yamaoka stressed that the DPJ will attend meetings of the 
Anti-Disaster Committee following the powerful earthquake in the 
Tohoku district but reject deliberations on a bill submitted jointly 
by four opposition parties to scrap the elderly health system, in an 
attempt to underscore the party's consistent stance of boycotting 
Diet deliberations. 
 
A senior DPJ member reiterated: "Should public support for the 
cabinet decline further, the prime minister will be pressed to step 
down after the July Lake Toya Summit in Hokkaido. To that end, the 
DPJ has to assume a defiant attitude." 
 
Test of patience 
 
However, the public is taking a harsh view of the DPJ strategy in 
the Diet. In an opinion poll conducted on June 14-15 by Yomiuri 
Shimbun, a majority of respondents agreed that the censure motion 
had been meaningless. 
 
In response, DPJ Policy Research Council Chairman Naoshima said 
yesterday: "We will take seriously the severe evaluations. We must 
reconsider our strategy of boycotting deliberations." A veteran 
lawmaker also stressed the need for a flexible response, saying: "If 
the government compiles a supplementary budget to finance measures 
to reconstruct quake-hit areas and calls a special Diet session, we 
should respond to calls for deliberations in a positive manner." 
 
Meanwhile, the Liberal Democratic Party and the New Komeito have 
started coordination with the DPJ to hold a meeting during the 
ongoing Diet session of the House of Representatives Special 
Committee on the issue of the past abductions of Japanese by North 
 
TOKYO 00001653  009 OF 013 
 
 
Korean agents in order to deliberate on a partial removal of the 
nation's sanctions against North Korea. A senior New Komeito member 
said: "If we hold as many meetings as possible by the end of the 
session, the DPJ will find it difficult to reject deliberations in 
the next extraordinary Diet session." 
 
A senior DPJ member grumbled yesterday: "We would like to give heed 
to the public's call on us to join Diet deliberations, but since we 
chose a boycott strategy in the belief that it will result in 
benefiting the people, we will have to patiently wait the other one 
out." 
 
(7) Idea of taking revote on bill revising Defense Ministry 
Establishment Law suddenly crops up in LDP 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 16, 2008 
 
The idea of holding a revote in the House of Representatives on a 
bill amending the Defense Ministry Establishment Law and enacting 
the bill before the June 21 closing of the current regular session 
is being floated in the ruling Liberal Democratic Party (LDP). If an 
overriding vote is held in the Lower House, it will become the third 
one during the ongoing session. 
 
The Defense Ministry Establishment Law revision bill was adopted on 
April 15 in a Lower House plenary session with support (not only by 
the ruling parties) but also by the main opposition Democratic Party 
of Japan. However since priority was given to other bills in the 
House of Councillors Committee on Foreign Affairs and Defense, 
deliberations on the revision bill have never be held. On June 14, 
60 days passed since the bill had been forwarded the Upper House. 
Therefore, it will be possible for the Lower House to hold a revote 
on the legislation in line with the constitutional 60-day rule. 
 
During the current Diet session, the ruling coalition has already 
twice taken overriding votes: one on the bill revising the Special 
taxation Measures Law and the other on the bill amending the Road 
Construction Revenues Special Exemption Law. If a two-thirds 
overriding vote is held on the bill revising the Defense Ministry 
Establishment Law, it would be the first time for the revision bill, 
for which the DPJ voted in the Lower House, to be put to a second 
vote. 
 
The dominant view in the ruling camp is that it is not necessarily 
to enact the bill by overriding an Upper House decision. The New 
Komeito, the LDP's junior coalition partner, has taken a cautious 
stance. 
 
However, with an eye on a political timetable for the summer and 
after, it is not that simple story. The government plans to submit 
to the next extraordinary Diet session a bill amending the new 
Antiterrorism Special Measures Law, intended to allow the Maritime 
Self-Defense Force (MSDF) to continue its refueling mission in the 
Indian Ocean. 
 
In the Upper House, like the bill amending the Defense Ministry 
Establishment Law, the new MSDF refueling bill will be deliberated 
in the Foreign Affairs and Defense Committee. In the upper chamber 
committee chaired by Toshimi Kitazawa of the DPJ, the ruling camp 
had difficulties in dealing with important bills and treaties from 
the previous extra session through the ongoing regular session. The 
 
TOKYO 00001653  010 OF 013 
 
 
similar situation is expected to occur in dealing with the bill 
amending the new Antiterrorism Special Measures Law. 
 
A senior LDP Upper House member has asserted that a revote on the 
bill revising the Defense Ministry Establishment Law should be held 
during the current Diet session, arguing: "If the revision bill is 
left in the Foreign Affairs and Defense Committee, such will be used 
as an excuse for delaying deliberations on the bill." 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima told reporters 
on June 13: "We will make a decision after carefully considering 
whether the public can understand (a revote)." 
 
(8) Divided Diet (Part 2): Ruling coalition trying to slice down DPJ 
with eye on political realignment 
 
NIKKEI (Page 2) (Full) 
June 17, 2008 
 
"Mr. Ozawa is a habitual liar," Prime Minister Yasuo Fukuda grumbled 
to a senior ruling coalition member. Fukuda appears to be unable to 
put up with the Democratic Party of Japan (DPJ), as headed by Ichiro 
Ozawa, disagreeing repeatedly with his nominations for the Bank of 
Japan governor. The senior member clearly said: "The relationship of 
the two has been severed since March." 
 
Even if the ruling camp keeps its majority in the next House of 
Representatives election, the opposition bloc will continue 
controlling the House of Councillors. Unless the ruling coalition 
wins opposition forces over to its side, it will be difficult for 
them to push forward with Diet business. Therefore, the ruling camp 
has been seeking behind closed doors ways to peel off DPJ Upper 
House members. 
 
The move's behind-the-scenes architects include Liberal Democratic 
Party (LDP) General Council Chairman Toshihiro Nikai, who has 
channels of communication to the largest opposition party, and 
Tetsuro Yano, former LDP Upper House Diet affairs committee 
chairman. They have often invited some DPJ lawmakers to their 
meetings at night and proposed forming a third conservative force. 
The ruling camp, however, is having difficulties in implementing its 
plan because the possibility of the DPJ assuming power is moving 
closer to reality and because there are many instances where 
candidates from the two parties would face off against each other in 
the Lower House single-seat constituency races. Only a couple of DPJ 
members have always participated in LDP-sponsored meetings. In the 
opposition camp, as well, there is a mood aimed at implementing 
policies in cooperation with the ruling parties. Less than 80 
PERCENT  of the government-sponsored bills submitted to the current 
Diet session have been enacted. At the final stage of the ongoing 
session, lawmaker-sponsored bills, including one revising the 
Atomic-bomb Victim Assistance Law, cleared the Diet in succession. 
 
A rush of nonpartisan parliamentary leagues and study groups that 
have been quickly formed were motivated by a desire to ease policy 
disputes in the divided Diet. Former LDP Secretary General Hidenao 
Nakagawa, a member of the Machimura faction, is actively on the 
move. He places priority on economic growth and reform of the 
government office district of Kasumigaseki, although he is reluctant 
to hike the consumption tax rate. 
 
In the Machimura faction, a study group using a book as a text 
 
TOKYO 00001653  011 OF 013 
 
 
written in May by Nakagawa has been launched. The speculation has 
spread in political circles that Nakagawa is trying to take the 
initiative in reorganizing the political parties. 
 
On June 12, Nakagawa and Seiji Maehara, former DPJ president, called 
on Economic and Fiscal Policy Minister Hiroko Ota and asked the 
minister to incorporate a strategy of Japan becoming a 
marine-oriented nation in the government's big-boned reform policy 
guidelines for 2008. Nakagawa and Maehara are also advocates for the 
formation of a parliamentary group to consider tobacco and the 
people's health, which was launched on June 13. 
 
In the capital district of Nagatacho, former Prime Minister 
Junichiro Koizumi is regarded as one of the key persons advocating 
political realignment. His remark in April that Maehara would become 
a presidential candidate became a hot topic of political 
conversations. He appears to be enjoying the uproar between the 
ruling and opposition camps. 
 
In an LDP Lower House member's wedding ceremony on June 4, Koizumi 
told Administrative Reform Minister Yoshimi Watanabe: "You should 
work in cooperation with the DPJ from now on." 
 
(9) TOP HEADLINES 
 
Asahi: 
Government to disburse state subsidies to 7 quake-hit municipalities 
earlier than scheduled 
 
Mainichi: 
Number of completely or half-collapsed houses in northeastern Japan 
quake totals 10 
 
Yomiuri: 
Senior MLIT official, others arrested in Hokkaido bid-rigging 
 
Nikkei: 
Poll: Sales of food products decline after price hikes 
 
Sankei: 
Scale of landslides largest ever in northeastern Japan quake 
 
Tokyo Shimbun: 
Fukutoshin Line hit by delays for three consecutive days 
 
Akahata: 
JCP proposes emergency talks among four opposition parties with aim 
of starting deliberations on bill scrapping elderly health plan 
 
(10) EDITORIALS 
 
Asahi: 
(1) Amakudari continuing to create hotbed of government agency-led 
bid rigging 
(2) 3rd oil crisis: Use investment funds for new energies 
 
Mainichi: 
(1) Senkakus: Taiwan, too, should take responsible action 
(2) Economy in recession: Pump-priming measures unneeded 
 
Yomiuri: 
(1) Looming economic crisis needs flexible response 
 
TOKYO 00001653  012 OF 013 
 
 
(2) Arrest of MLIT official: Eradicate hotbed of government 
agency-led bid rigging! 
 
Nikkei: 
(1) Is Hokkaido Regional Development Bureau an office for bid 
rigging? 
(2) Japan-Australia cooperation strategically important 
 
Sankei: 
(1) Iwate-Miyagi earthquake: Consider quakes in urban areas 
(2) Intrusion into Japanese waters: Firm and calm response 
necessary 
 
Tokyo Shimbun: 
(1) Japan-Taiwan relations: Prevent the Senkaku issue from flaring 
up again 
(2) Arrest of MLIT official: Hokkaido not a "sacred cow" 
 
Akahata: 
(1) Child-care system made worse: JCP to make efforts for 
child-support programs 
 
 (11) Prime Minister's schedule, June 16 
 
NIKKEI (Page 2) (Full) 
June 17, 2008 
 
08:20 
Attended a global warming council meeting at the Kantei. 
 
09:24 
Met Vice Foreign Minister Yabunaka, Asian and Oceanian Affairs 
Bureau Director-General Saiki, in the presence of Chief Cabinet 
Secretary Machimura and Deputy Chief Cabinet Secretary for Crisis 
Management Ito, joined in by Deputy Chief Cabinet Secretary 
Futahashi. Machimura, Futahashi and Ito stayed on. 
 
09:51 
LDP International Competitiveness Research Council Chairman Omi and 
chief secretary Gotoda. 
 
10:18 
Met former Ambassador to the U.S. Kato, followed by Cabinet 
Intelligence Director Mitani. Afterward, met Economic and Fiscal 
Policy Minister Ota in the presence of Assistant Chief Cabinet 
Secretary Saka. Ota stayed on. 
 
11:01 
Met Yabunaka. Afterward attended a meeting of cabinet ministers 
connected with the Iwate-Miyagi Inland Earthquake. Afterward met 
Climate and Energy Minister Hedegaard of Denmark. 
 
14:07 
Met LDP Public Relations Headquarters chief Kawamura, followed by 
Machimura. Afterward attended an agricultural, commerce and 
industrial summit. 
 
15:03 
Met MOF European Affairs Bureau Director-General Harada and Finance 
Ministry International Bureau Director-General Tamaki, followed by 
advisor Ito. 
 
 
TOKYO 00001653  013 OF 013 
 
 
16:30 
Attended an LDP executive meeting. Policy Research Council Chairman 
Tanigaki and former MHLW Minister Kawasaki stayed on. 
 
17:03 
Met New Komeito Representative Ota, his deputy Inoue, and Upper 
House Caucus Chairman Koba. Ota stayed on. Afterward attended a 
meeting of cabinet ministers connected with the monthly economic 
report. 
 
18:06 
Met Machimura. Afterward attended an anti-crime cabinet ministers 
meeting. Afterward met Internal Affairs and Communications Minister 
Masuda and Fire and Disaster Management Agency Director-General 
Araki. 
19:50 Returned to his official residence. 
 
SCHIEFFER