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UNCLAS SECTION 01 OF 11 TOKYO 001717 
 
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 06/23/08 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
Prime Minister's weekend schedule: None 
 
North Korea problem: 
3) Prime Minister Fukuda in meeting with Ambassador Schieffer calls 
for U.S. caution in deciding to remove North Korea from list of 
terrorist-sponsoring states  (Nikkei) 
4) Heated exchange between Assistant Secretary Hill, Asian and 
Oceanian Affairs Bureau Director General Saiki over removing DPRK 
from terror list  (Yomiuri) 
5) Foreign Minister Koumura willing to accept DPRK's nuclear weapons 
information in a separate document from the main nuclear declaration 
 (Yomiuri) 
6) Koumura; Need verification set up arranged with North Korea when 
it carries of abductee reinvestigation  (Sankei) 
7) Koumura on NHK TV: Japan will participate in DPRK's 
reinvestigation of abduction issue  (Mainichi) 
8) Japan will remove partial sanctions on DPRK conditioned on start 
of actual reinvestigation of abductees  (Nikkei) 
9) Koumura on Fuji TV discusses U.S. move to delist North Korea as a 
terrorist sponsor, gas development in E. China Sea, and China-Taiwan 
relations  (Sankei) 
 
Defense affairs: 
10) Due to Komeito resistance, bill establishing permanent law for 
overseas SDF dispatches will not include security guarding as a duty 
 (Tokyo Shimbun) 
11) Oversight body to be established in Prime Minister's Official 
Residence (Kantei) to see that defense procurement is carried out 
properly  (Nikkei) 
 
12) Asahi survey shows local economies rapidly worsening  (Asahi) 
 
Political agenda: 
13) No one can read Prime Minister Fukuda's cards on whether he will 
carry out a cabinet shuffle after the G-8 Summit  (Nikkei) 
14) Democratic Party of Japan (DPJ) planning relentless series of 
consecutive battles with Fukuda administration to force the Prime 
Minister to dissolve the Diet  (Yomiuri) 
15) Number of DPJ party members and supporters now at their peak 
(Nikkei) 
16) Proposal aired in DPJ to move up the election date for the party 
president  (Asahi) 
17) Ozawa losing lawsuit against magazine accusing him of personally 
owning 1 billion yen in real estate paid for by political funds 
(Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Drastic changes occurring in lives of Canadian Inuit over past 45 
years, affected by global warming 
 
Mainichi: 
SDF quake-search operation called off in Miyagi 
 
Yomiuri: 
 
TOKYO 00001717  002 OF 011 
 
 
Survey finds increasing number of patients using ambulances instead 
of taxis across Japan 
 
Nikkei: 
Energy firms have highest market capitalizations in world, 
surpassing U.S. financial institutes, IT firms 
 
Sankei: 
Logic of betrayal: U.S. move to delist North Korea as state sponsor 
of terrorism; Abductee's mother believes in President Bush's 
sincerity 
 
Tokyo Shimbun: 
Survey finds 27 PERCENT  of local governments in metropolitan area 
not preparing measures to prevent new strains of influenza 
 
Akahata: 
Incumbent Komae Mayor Yano, JCP member, reelected 
 
2) EDITORIALS 
 
Asahi: 
(1) China must be aware of responsibility for reducing greenhouse 
gas emissions as major emitter 
 
Mainichi: 
(1) We expect Mr. Masuzoe to produce results by increasing doctors 
(2) The economic and fiscal policy guidelines should specify what to 
do about consumption tax 
 
Yomiuri: 
(1) Local governments urged to reinforce school buildings against 
earthquakes 
(2) Take opportunity of first Japanese, U.S. parliamentary meeting 
to deepen bilateral ties 
 
Nikkei: 
(1) Appropriately apply new rules on capital procurement 
(2) Future course not set for new EU treaty 
 
Sankei: 
(1) Policy of accepting foreign nurses should be made model to 
secure excellent human resources from overseas 
(2) Introducing rules on fair use necessary for copyrights and 
Internet 
 
Tokyo Shimbun: 
(1) Increase in number of doctors taken as first step for 
reconstructing medical system 
(2) Tie-up between Yahoo and Google must not undermine competition 
 
Akahata: 
(1) July 9 gathering to be held to protect distribution of 
handbills 
 
3) Prime Minister Fukuda in meeting with U.S. Ambassador Schieffer 
calls for U.S. caution in deciding to remove DPRK from list of 
states sponsoring terrorism 
 
NIKKEI (Page 2) (Full) 
June 21, 2008 
 
 
TOKYO 00001717  003 OF 011 
 
 
Prime Minister Yasuo Fukuda met with U.S. Ambassador to Japan 
Schieffer at his official residence (Kantei) on June 20. The Prime 
Minister requested that the United States use caution in making a 
decision on removing North Korea from the list of states sponsoring 
terrorism. "The abduction issue for Japan is crucial," Fukuda said. 
The Ambassador responded: "We understand how important the abduction 
issue is for Japan. We will do what we can to help move the 
Japan-North Korea negotiations forward." 
 
4) Heated exchange between Japanese and U.S. delegates over removal 
of North Korea from terrorist-sponsoring list 
 
YOMIURI (Page 4) (Full) 
June 21, 2008 
 
Akitaka Saiki, director general of the Foreign Ministry's Asian and 
Oceanian Affairs Bureau, briefed the Liberal Democratic Party's 
(LDP) Korean Peninsula Affairs Subcommittee on June 20 on the 
contents of his meeting with U.S. Assistant Secretary of State Hill 
on June 19. That afternoon, every newspaper in their evening 
editions had reported the statement made by Secretary of State Rice 
about removing North Korea from the list of states sponsoring 
terrorism. When Saiki appealed to Hill, "I would like you to realize 
how great the impact of that was," Hill explained, "When North Korea 
takes action, we, too, have to do something in response." Saiki then 
rebutted: "The content of nuclear declaration is not clear, and the 
method of verifying it has not yet been discussed. If pressure is 
removed from the DPRK, it will do nothing." "Trust between Japan and 
the U.S. is at stake," he said. 
 
5) Foreign Minister Koumura indicates acceptance of separate 
document for DPRK's nuclear weapons information to follow North 
Korea's nuclear declaration 
 
YOMIURI (Page 2) (Full) 
June 21, 2008 
 
Foreign Minister Koumura in a press conference on June 20 hinted 
that information regarding North Korea's nuclear weapons might not 
be included in that country's nuclear declaration to be presented to 
China, the presiding country in the Six-Party Talks. The document 
would include such information as the total amount of expended 
plutonium North Korea possesses. 
 
Even in that case, Koumura suggested that the nuclear declaration 
would be accepted from the viewpoint of advancing the DPRK's 
denuclearization. The report is expected to be completed soon, and 
the proposal has come up among Japan, the United States, and the 
Republic of Korea to have the North present a document promising a 
future report regarding its nuclear weapons. 
 
The foreign minister stated: "Even if we ease (the criteria for the 
nuclear declaration) there is a view that it would be better at the 
next stage to achieve the goal of the DPRK's denuclearization (with 
a report on its nuclear weapons)." From the standpoint of making 
progress in the Six-Party Talks, the U.S., South Korea and other 
participants have softened their stance, taking the position that it 
would be acceptable for the nuclear weapons portion follow the 
nuclear declaration. 
 
Regarding this issue, at a meeting of the trilateral delegates on 
the 19th, the proposal was made to have the DPRK later draft a 
 
TOKYO 00001717  004 OF 011 
 
 
second document containing a report of its nuclear weapons and a 
promise to eliminate the nuclear programs. The next stage of the 
Six-Party Talks would see the full elimination of the nuclear 
programs. Koumura made it clear that Japan, the U.S., and the ROK 
are now considering this option. 
 
In the nuclear declaration, other than the volume of spent 
plutonium, there apparently would be included: 1) records of 
operation of the nuclear reactors; and 2) lists of materials, 
facilities, and programs related to nuclear development. 
 
6) Koumura on removing sanctions of North Korea: Need for agreement 
on verification arrangement of reinvestigation of abductee victims 
 
SANKEI (Page 5) (Excerpt) 
June 23, 2008 
 
Appearing on an NHK TV program on June 22, Foreign Minister Masahiko 
Koumura made this statement about the reinvestigation of the 
abductee victims that was agreed on at working-level talks between 
Japan and North Korea: "I would like to create an arrangement 
including a body of Japanese experts in order to verify the 
reinvestigation North Korea will carry out. As long as those 
negotiations make no progress, we cannot remove a portion of the 
sanctions now imposed on North Korea." 
 
7) Foreign minister indicates Japan will not take part in 
reinvestigation by North Korea into abduction issue 
 
MAINICHI (Page 2) (Full) 
June 23, 2008 
 
Foreign Minister Masahiko Koumura indicated yesterday the 
possibility that Japan would not take part in the reinvestigation 
into the abduction issue recently promised by Pyongyang. He said in 
an NHK TV program: "Some in the nation are skeptical about Japan's 
participation in the investigation. Their opinion is that it is 
undesirable to allow critics to think Japan participated in 
activities in an area over which Japan has no sovereignty." 
 
Meanwhile, Koumura emphasized: "We would like to establish a 
mechanism whereby we can fully verify the contents of the other 
side's investigation." He implied that even if the investigation is 
conducted under the lead of North Korea, Japan will thoroughly 
verify its contents and that if Japan cannot judge the investigation 
was conducted in good faith, Japan will not partially lift sanctions 
against North Korea. 
 
8) Government to remove part of the sanctions against North Korea 
conditioned on confirming that reinvestigation of abduction issue 
has really started 
 
NIKKEI (Page 2) (Excerpt) 
June 21, 2008 
 
The government, after considering the results of the recent talks 
between Japan and North Korea, plans to condition removal of part of 
the sanctions imposed on the DPRK on the restarting of the 
reinvestigation by North Korea of the abductee victims. Based on the 
principle of action for action associated with the Six-Party Talks 
on the DPRK's nuclear programs, a portion of the sanctions would be 
removed once the reinvestigation actually starts. 
 
TOKYO 00001717  005 OF 011 
 
 
 
9) Excerpts from Fuji TV talk show on June 22 
 
SANKEI (Page 5) (Full) 
June 23, 2008 
 
Appearing on the Fuji TV talk show, Hoodoo 2001, yesterday, Foreign 
Minister Masahiko Koumura spoke of Washington's move to delist North 
Korea as a terrorism-sponsoring nation, the ongoing negotiations 
between Japan and China on developing gas fields in the East China 
Sea, and Japan's relations with China and Taiwan over the ownership 
of the Senkaku Islands. 
 
-- U.S. Secretary of State Rice stated in a speech that President 
Bush would notify Congress of his intention to take Pyongyang off 
the list of terrorism-sponsoring nations. 
 
Secretary Rice has indicated that when the U.S. decides to remove 
North Korea from the list, it will take into consideration the state 
of progress in Japan-North Korea relations, including the abduction 
issue. It is not correct to think that (the U.S.) will no longer 
take progress in Japan-North Korea relations into consideration 
 
-- Some speculate that the agreement reached in the recent 
working-level talks between Japan and North Korea was intended to 
pave the way for the U.S. to delist North Korea. 
 
Japan asked (the U.S.) to allow it to use the delisting card to move 
forward Japan-North Korea relations, including the abduction issue, 
and the U.S. agreed to it. The question of whether Japan can use the 
card to promote Japan-North Korea relations and the abduction issue 
is now at a crucial stage. 
 
-- It has been reported that in the working-level talks, North Korea 
was not positive about reaching the agreement. 
 
Unless North Korea conducts an investigation in a way that is 
expected by Japan, Japan will not remove some of its sanctions. 
 
-- Chinese Vice Foreign Minister Wu Dawei said: "Since sovereignty 
over the Shirakaba (Chunxiao) gas field resides with China, it 
cannot be called joint development." 
 
It is an exaggeration to say that sovereignty resides with China. 
The note of agreement (on joint development) specifies that "both 
sides' legal positions will not be violated." 
 
--The Taiwanese government led by President Ma Ying-jeou has taken a 
tough stance about the issue of the ownership of the Senkaku 
Islands. 
 
(The Senkaku Islands) are indisputably Japan's territory in view of 
history and international law. Japan will continue to protect it 
silently. 
 
10) SDF legislation stalled over security 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
June 23, 2008 
 
The ruling Liberal Democratic Party and its coalition partner, New 
Komeito, have now hit a snag in their work of outlining a 
 
TOKYO 00001717  006 OF 011 
 
 
legislative measure to create a permanent law that will allow Japan 
to send the Self-Defense Forces on overseas missions as needed. The 
LDP wants to allow the SDF to engage in security activities on their 
overseas assignments. In addition, the LDP also eyes easing the 
government's self-imposed restrictions on SDF personnel's use of 
weapons. However, New Komeito is strongly opposed to the LDP 
standpoint. The ruling coalition cannot be expected to present a 
bill to the Diet, and the SDF legislation is far off. 
 
A project team of LDP and New Komeito lawmakers discussed the SDF 
legislation during the recent ordinary session of the Diet, and its 
discussion heated up on whether to allow the SDF to engage in field 
security activities, such as guarding or escorting personnel from 
the United Nations and foreign countries, protecting their 
materials, and going on patrol for relevant facilities. The project 
team also discussed the advisability of having SDF personnel go to 
the help of foreign troops if and when they are under attack. 
 
The LDP strongly insisted on allowing the SDF to conduct security 
activities in consideration of the fact that the SDF was actually 
asked to guard or escort U.N. troops engaged in peacekeeping 
operations. The SDF's overseas activities are currently subject to 
an extremely large number of restrictions. The LDP wants to make the 
SDF's overseas activities flexible for more opportunities to make 
international contributions. 
 
However, such security activities will be accompanied by danger. 
Accordingly, the primary challenge is to review the government's 
weapons use standards. SDF personnel on overseas missions are 
currently allowed to use weapons in legitimate self-defense or 
emergency evacuation to escort those who are under their control. In 
addition, the SDF may also have to use weapons against those 
standing in its way. 
 
Meanwhile, former LDP Vice President Taku Yamasaki, who presides 
over the ruling coalition's project team, has indicated that the LDP 
would give up on submitting the bill to the Diet in its next 
extraordinary session. The LDP is expecting to present the 
legislation to the Diet in its ordinary session next year. However, 
New Komeito is now in a mood to say it can no longer get along with 
the LDP's standpoint. It would not be easy for the two parties to 
find common ground. 
 
11) Kantei to verify defense procurement 
 
NIKKEI (Page 2) (Full) 
June 23, 2008 
 
The government is planning to set up a new watchdog body in the 
Kantei in the aim of verifying the Defense Ministry's procurements 
for the Ground, Maritime, and Air Self-Defense Forces. This is a 
step to reform the Defense Ministry in the wake of former 
Administrative Vice Defense Minister Takemasa Moriya's bribery case 
and other scandals involving the ministry. The newly planned body 
will also take part in the Defense Ministry's work of compiling 
midterm defense buildup plans. The Kantei will keep tabs on 
illegalities and improve the efficiency of budget allocations for 
the GSDF, MSDF, and ASDF. 
 
A government panel established at the Kantei for reform of the 
Defense Ministry is expected to release a report this month, with 
Tokyo Electric Power Co. Adviser Nobuya Minami presiding. The panel 
 
TOKYO 00001717  007 OF 011 
 
 
will shed light on structural problems that brought about such 
scandals, and make recommendations on preventing recurrences. 
 
The newly planned organization will be set up under the Security 
Council, which is made up of the prime minister and relevant cabinet 
ministers. It will also involve working-level officials from 
relevant government ministries and agencies and experts to discuss 
defense procurement, including how Japan's defense buildup will 
affect Japan's industrial infrastructure and Japan's relations with 
its neighbors. 
 
In its report, the panel will propose setting up an intersectional 
team in the Defense Ministry to study procurement transparency. The 
focus is on how to reorganize the Defense Ministry into a mixed 
setup of the Defense Ministry's bureaucrats and the SDF's staff 
officers. Meanwhile, the Defense Ministry's reform plan includes the 
option of abolishing the GSDF, MSDF, and ASDF staff offices. 
However, the panel is expected to avoid going so far as to design 
such a detailed organization. 
 
12) Asahi poll: 40 PERCENT  say business conditions in local area is 
deteriorating 
 
ASAHI (Page 1) (Full) 
June 23, 2008 
 
The Asahi Shimbun conducted a survey on local economies targeting 
business managers in 47 prefectures, in which 33 PERCENT  replied, 
"The local economy is moderately declining," while 5 PERCENT  said, 
"The local economy is worsening." The proportion of respondents who 
replied that the economy was deteriorating reached about 40 PERCENT 
, up 32 points from the previous survey carried out in November last 
year. The sharp rise in the prices of crude oil and raw materials is 
working negatively on already troubled local economies. 
 
The survey was carried out between May 29 and June 16, targeting the 
chambers of commerce and industry and regional banks in 47 
prefectures. A face-to-face survey was conducted on top executives, 
in which 94 persons responded. In a survey targeting 100 leading 
companies, carried out almost at the same time, about one-fourth of 
the respondents replied that the economy was deteriorating. A 
decline in business confidence is felt more seriously in local 
areas. 
 
Regarding the view of the present state of the local economy, 28 
PERCENT  replied in the previous survey, "The local economy is 
recovering moderately." However, only 2 PERCENT  gave such a reply 
in the survey this time. To a question as to how long the current 
expansion, which began in February 2002, will continue, 71 PERCENT 
replied, "It is already over." As factors for contributing to the 
determination of economic outlook (respondents were allowed to 
choose up to two factors), 53 PERCENT  cited the prices of crude oil 
and raw materials. 
 
Referring to the soaring crude oil prices, President Mitsuo Hayashi 
of the Aomori Chamber of Commerce and Industry pointed out, "It is a 
major issue in areas where agriculture, forestry and fisheries 
industries are active. The steep rise in crude oil prices is being 
felt in various ways. Fishermen are suspending fishing temporarily. 
There is a drop-off in demand to replace automobiles." Many stressed 
the impact of the blow dealt to local companies, with Hyakugo Bank 
President Hajime Maeda in Mie Prefecture saying, "Small and 
 
TOKYO 00001717  008 OF 011 
 
 
medium-size companies that deliver their products to major companies 
find it difficult to raise prices due to the power relationship." 
Concerning economic disparities between major cities and regional 
areas, 96 PERCENT  said, "The disparity is increasing." 
 
13) Ruling parties eager for cabinet shuffle, but cannot read 
Fukuda's real intention 
 
NIKKEI (Page 2) (Excerpts) 
June 21, 2008 
 
With the closing of the regular session of the Diet, many lawmakers 
in the ruling parties are greatly looking forward to a shuffle of 
the cabinet. Some say that in order to improve Prime Minister Yasuo 
Fukuda's policy image, a cabinet shakeup is necessary with an eye on 
a political timetable for such issues as tax system reform and a 
budget compilation in the upcoming extraordinary session. The 
predominant view is that a cabinet shuffle should be carried out 
sometime between middle to late July and early August. Although 
Fukuda has not revealed his real intention, he will like make a 
decision after the Group of Eight summit in Hokkaido in July 
 
"Managing Diet affairs is extremely tough," Fukuda said on the night 
of June 20, looking back on the Diet sessions, including the extra 
session started last fall. He also expressed enthusiasm for a 
long-term government, saying: "I would like to implement policies 
that provide the public with relief and hopes." He has, however, 
reiterated that he has no intention to carry out a cabinet shuffle. 
A senior ruling camp member said that he had tried to find out 
Fukuda's real intention but he had received only vague remarks from 
the Prime Minister. 
 
Fukuda hinted at a shuffle of his cabinet late last year, but he 
never went through with it. There was a rumor in the ruling 
coalition that one of the reasons for Fukuda having forgone a 
shuffle was to send a message to Democratic Party of Japan (DPJ) 
President Ichiro Ozawa that he was ready to form a grand alliance 
with the DPJ, according to a senior member of the Liberal Democratic 
Party (LDP). 
 
However, the environment surrounding the Fukuda administration has 
greatly changed in the past six months. The cabinet approval rate 
has plunged to half of what it was six months ago to reach the 20 
PERCENT  level. Fukuda has now cut off all ties with Ozawa. 
 
The Fukuda cabinet was inaugurated last September following the 
sudden resignation of Prime Minister Shinzo Abe. Fukuda kept on 13 
members of the Abe cabinet. There is a mood in the ruling camp that 
it is necessary to handle such important issues as reform of the tax 
revenues earmarked for road projects and a review of the social 
welfare system, by strengthening the setup of controlling the 
government, taking advantage of a cabinet shuffle as leverage. 
 
14) DPJ planning relentless series of consecutive battles for force 
Diet dissolution 
 
YOMIURI (Page 4) (Excerpt) 
June 21, 2008 
 
With the de facto end of the current Diet session on June 20, 
President Ichiro Ozawa of the Democratic Party of Japan (DPJ) made 
this statement at a joint meeting of upper and lower house DPJ 
 
TOKYO 00001717  009 OF 011 
 
 
lawmakers at party headquarters: "There is a high probability that 
Diet dissolution and a general election will take place sometime 
after September and at the latest at the beginning of next year. The 
extraordinary session will become an important venue to lead into 
the Lower House election." Ozawa later at a round table discussion 
with lawmakers from his party explained his plan to carry out a 
opinion survey in late August in all the single-seat districts and 
based on the results, announce in early September the first list of 
party candidates for the election. He also indicated his desire to 
strengthen assistance to the official candidates by such means as 
financial contributions (to their campaigns). He thus set off the 
first blast in activating a full-fledged campaign for the Lower 
House election. 
 
15) DPJ members, supporters reach record number of 270,000 as of end 
of May 
 
NIKKEI (Page 2) (Full) 
June 23, 2008 
 
The number of rank-and-file members and supporters of the Democratic 
Party of Japan (DPJ or Minshuto) hit a record high, exceeding 
270,000 as of the end of May. The party member and supporter system 
was launched in 2002. Those who are registered as of the end of May 
have voting rights in party presidential elections. Some party 
members view that the pension contribution record errors and 
criticism of the new public health care plan for elderly people have 
contributed to the increase in DPJ members and supporters. 
 
The number of DPJ members reached 244,000 in 2006, when Ichiro Ozawa 
defeated Naoto Kan and was reelected unopposed as president five 
months later. The number dropped to 201,000 in 2007. 
 
Commenting on the number of party members and supporters reaching a 
record high, Secretary General Yukio Hatoyama at a joint plenary 
meeting of party members of both houses of the Diet held on June 20 
said, "Needless to say, the public pins high hopes on the DPJ. The 
increased membership also indicates expectations for the 
presidential election." 
 
16) DPJ considering holding presidential election early 
 
ASAHI (Page 4) (Full) 
June 21, 2008 
 
A plan to implement the party presidential election earlier than 
September was floated on June 20 in the main opposition Democratic 
Party of Japan (DPJ). The plan came up following moves calling for 
opening an extraordinary Diet session in late August. There is also 
speculation that the plan will lead to paving the way for the 
uncontested reelection of President Ichiro Ozawa for a third term. 
The party has been split between a group favoring the uncontested 
reelection of Ozawa and others wishing to develop policy debate in a 
full-fledged election. 
 
Azuma Koshiishi, chairman of the DPJ caucus in the House of 
Councillors, referred in a meeting on June 20 for the first time to 
the possibility of carrying out the leadership race earlier than 
planned. He stated: 
 
"I wonder whether the next regular Diet session will be convened in 
late August or not. Our presidential election will be held in 
 
TOKYO 00001717  010 OF 011 
 
 
September. If possible, the election should be held earlier than the 
opening of the extra Diet session." 
 
Koshiishi was reelected in early this moth in his post, term of 
which runs two years, for his third term. He is now considering the 
executive lineups. 
 
He sees that the number of executive posts that the DPJ Upper House 
caucus will occupy will increase with the next House of 
Representatives election in mind. Therefore, unless the DPJ starts 
the selection of the executive members soon after the leadership 
race before the extra session, it will be unable to make 
arrangements for the extra session. 
 
The government and ruling parties will move up the convocation of 
the extra session to late August. The DPJ presidential election rule 
stipulates that an election should be carried out within 30 days 
before the term of the presidency expires. So, it is possible to 
implement the upcoming election earlier than the planned September 
date if it is approved in the meeting of the lawmakers from the two 
Diet chambers. 
 
The reason for the DPJ placing importance on the extra session is 
that it considers it as the battle field prior to the next Lower 
House election. In the meeting on June 20, Ozawa urged his party 
members to unite, saying: "The extra Diet session in the fall will 
become important for the general election." In a meeting of the 
party's Lower House members later in the day, he explained that the 
party would conduct an opinion poll in August on the prospective 
candidates for the next Lower House election and would decide in 
September the first selection of candidates. Besides Koshiishi, a 
senior DPJ Upper House member said: "It is rational (to hold the 
presidential race) before the Diet session starts. We should attend 
the extra session after picking the leadership lineup. A senior 
Lower House member, who has close ties to Ozawa, made this comment: 
"Many party members think that the presidential election should be 
held before the opening of the extra session." 
 
17) Appeal court rejects claim by DPJ President Ozawa that real 
estate worth 1 billion yen belongs to political support 
organization, Rikuzankai 
 
SANKEI (Page 3) (Abridged slightly) 
June 21, 2008 
 
Reacting to the weekly magazine Shukan Gendai's report that 
Democratic Party of Japan (DPJ) Chairman Ichiro Ozawa has amassed 
secret assets, Ozawa filed a defamation of character lawsuit against 
the publisher Kodansha demanding compensation, claiming that the 
real estate in question was not his personal asset but belongs to 
the Rikuzankai, his fund management organization. However, he lost 
the case on June 4. In this connection, the Sankei Shimbun learned 
on June 20 that the adjudication handed down by the appeal court 
noted that it is impossible to determine that the assets belong to 
the Rikuzankai. 
 
Regarding the Rikuzankai, too, the court ruled that it is unclear 
whether there are enough details of the actual operations regarding 
the organization so that it can be determined that it is an 
unincorporated association. This is because third parties are not 
given opportunities to know how the organization is operated. 
 
 
TOKYO 00001717  011 OF 011 
 
 
Touching on the Rikuzankai having purchased 13 pieces of real estate 
worth 1.02 billion yen in Tokyo and other areas and that the assets 
are registered in his name, Ozawa at a press conference held in 
February last year had insisted, "I as an individual have no 
ownership rights to those assets." As the reason that those assets 
are registered in his name, Ozawa explained, "A political 
organization, which is an unincorporated association, is not allowed 
to register assets in its name. Such an organization must register 
assets it owns in the name of an individual." 
 
SCHIEFFER