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UNCLAS SECTION 01 OF 10 TOKYO 001726 
 
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 06/24/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
North Korea problem: 
4) DPRK nuclear declaration expected on June 26, after which U.S. 
will start delisting process  (Yomiuri) 
5) U.S. eager diplomatic results on North Korea's nuclear program 
and removing it from terror list while abandoning Japan's abduction 
issue  (Yomiuri) 
 
Defense and security issues: 
6) Prime Minister Fukuda at Okinawa memorial vows to put every 
effort into resolving base issues  (Asahi) 
7) House Speaker Yohei Kono at same Okinawa event touches on 
military's wartime responsibility there  (Asahi) 
8) No clue in sight in resolving stalemate over Futenma relocation 
as Fukuda visits Okinawa  (Yomiuri) 
9) Government panel sees need to revise constitutional 
interpretation regarding collective security for sake of missile 
defense  (Yomiuri) 
10) MSDF vessel dropping off quake-relief goods at China port gets 
cool welcome  (Sankei) 
 
11) Afghan reconstruction: G-8 foreign ministers meeting planning 
separate statement  (Nikkei) 
 
12) Government's Economic and Fiscal Policy Council watered down 
draft policy guidelines to avoid strains with LDP policymakers 
(Nikkei) 
 
13) Prime Minister Fukuda in news conference kicks consumption tax 
hike issue down the road by saying that a decision will be made 2-3 
years from now  (Nikkei) 
 
14) Government to remove Ikeo's name as Bank of Japan board nominee 
due to DPJ opposition  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, & Tokyo Shimbun: 
Fishing boat capsizes off coast of Chiba, 4 dead, 13 missing 
 
Yomiuri: 
U.S. to begin steps to take North Korea off list of terrorism 
sponsors, possibly on June 26 
 
Nikkei: 
Fukuda: Consumption tax hike within 2 to 3 years 
 
Sankei: 
Russia already handed over Japanese fishing boat involved in 
shooting to government enterprise 
 
Akahata: 
Nagasaki District Court recognizes 20 people as radiation 
casualties 
 
 
TOKYO 00001726  002 OF 010 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Properly invest in land 
(2) Change of professional baseball commissioners 
 
Mainichi: 
(1) Stop heavy consumption of oil to cope with soaring prices 
(2) "Momiji sticker" for drivers aged 75 or older unfavorably 
received 
 
Yomiuri: 
(1) Economic and fiscal policy guidelines for 2008 must clarify 
financial resources for social insurance 
(2) Increase in oil output by Saudi Arabia expected to produce 
positive results 
 
Nikkei: 
(1) Oil producing countries, U.S., China must make more efforts to 
constrain oil demand 
(2) Full preparations needed for new strains of influenza 
 
Sankei: 
(1) Fukuda urged to discuss delisting issue with U.S. President 
(2) Strengthen cooperation with oil producing countries to deal with 
rising prices 
 
Tokyo Shimbun: 
(1) Oil consumer countries should also make efforts, without only 
relying on Saudi Arabia's measures 
(2) False labeling of low-level beef as Hida-brand beef stains brand 
name 
 
Akahata: 
(1) Golden opportunity to significantly raise lowest wages 
 
3) Prime Minister's schedule, June 23, 2008 
 
NIKKEI (Page 2) (Full) 
June 24, 2008 
 
08:29 
Left Haneda Airport on JAL flight no. 903 
 
10:29 
Arrived at Naha Airport. 
 
11:23 
Offered flowers on the Okinawa National Cemetery for War Dead in 
Peace Memorial Park in Itoman City. Then met with Election Committee 
Chairman Makoto Koga, chairman of the Japan War-Bereaved 
Association. Then attended memorial service for all the war dead in 
Okinawa. 
 
13:59 
Left Naha Airport on JAL flight no. 908. 
 
16:12 
Arrived at Haneda Airport. 
 
16:40 
Arrived at the official residence. 
 
TOKYO 00001726  003 OF 010 
 
 
 
17:22 
Met with Chief Cabinet Secretary Machimura at the Kantei. 
 
18:01 
Meeting of the Conference on Economic and Fiscal Policy. Then met 
with Welfare Minister Masuzoe, followed by Machimura and Deputy 
Chief Cabinet Secretary Futahashi. 
 
19:49 
Arrived at the official residence. 
 
4) U.S. may begin delisting the North as state sponsor of terrorism 
as early as June 26, following Pyongyang's nuclear declaration 
 
YOMIURI (Top play) (Abridged slightly) 
June 24, 2008 
 
White House spokesperson Dana Perino indicated in a press conference 
on June 23 that North Korea is expected to make a declaration of its 
nuclear programs to China, chair of the six-party talks on June 26. 
Indicating her willingness to comment on the next step upon 
receiving North's declaration, Perino pointed to the U.S. policy to 
begin procedures for delisting the North as a state sponsor of 
terrorism as early as June 26. Japan is opposed to the U.S. taking 
the North off its nuclear blacklist until there is progress on the 
abduction issue. Washington's step to delist the North is likely to 
have an impact on Japan-U.S. relations. 
 
Perino said: "The deadline is June 26. We expect the North will 
fulfill its obligation." She also said, "That will be followed by 
the principle of action for action follows," indicating that the 
United States would begin procedures for removing the North from the 
list of terrorist-sponsoring nations and put an end to the 
application of the Trading with the Enemy Act to North Korea. U.S. 
chief delegate to the six-party talks Christopher Hill categorically 
said on June 23: "Once a nuclear declaration is presented, the 
United States will fulfill its obligations (as agreed upon with 
North Korea) generally at the same time." 
 
Washington is required to notify Congress of its decision to delist 
the North as a state sponsor of terrorism 45 days before the step 
takes effect. Washington intends to closely verify what is in the 
North's declaration during that period, and if the declaration is 
found out to be insufficient, it might withdraw its decision to 
delist the North. 
 
Meanwhile, according to a six-party talks source, North Korea 
informed the relevant countries that it would demolish a cooling 
tower at the Yongbyon nuclear complex on June 27 as part of its 
effort to disable its nuclear facilities. The United States and 
North Korea are said to be in accord to blast the cooling tower 
within 24 hours of the North's presentation of a nuclear declaration 
and the start of procedures for delisting the North. 
 
The North was supposed to present a nuclear declaration by the end 
of 2007, but the country postponed it, citing a delay in the United 
States to delist it as a state sponsor of terrorism. 
 
5) U.S. in hurry to achieve results on diplomatic front; North Korea 
to be delisted as state sponsor of terrorism regardless of abduction 
issue 
 
TOKYO 00001726  004 OF 010 
 
 
 
YOMIURI (Page 2) (Abridges slightly) 
June 24, 2008 
 
The U.S. administration of President George W. Bush has pressed 
North Korea hard for the presentation of a nuclear declaration by 
making it clear that it would delist it as a state sponsor of 
terrorism and stop applying the Trading with the Enemy Act to it. 
Behind this lies the President's desire to score high marks on the 
diplomatic front before leaving office next January. 
 
The U.S. Congress is scheduled to enter a recess on the 27th. Given 
the situation, in order for President Bush to notify it of his 
decision to delist the North in time, Pyongyang must present a 
nuclear declaration by June 26. The North's failure to meet the 
deadline would decisively stall the process of dismantling its 
nuclear program. 
 
According to a six-party source, the North will present a 
declaration to China, the chair of the six-party talks, early on 
June 26, and the United States will begin procedures for delisting 
the North and ceasing applying the Trading with the Enemy Act to it. 
The United States wants to revitalize the six-party talks by 
fulfilling its obligations based on the principle of action for 
action. 
 
Nevertheless, with a G8 foreign ministerial scheduled to take place 
in Kyoto on June 26, the timing is not good for Japan. 
 
In his talks on June 19 with U.S. Assistant Secretary of State 
Christopher Hill, Foreign Ministry Asian and Oceanian Affairs Bureau 
Director-General Akitaka Saiki urged the U.S. not to delist the 
North unless there is progress on the issue of Japanese nationals 
abducted by North Korea and other matters. Despite that, Washington 
has repeatedly indicated that the United States will deliver on its 
obligations once the North presents a declaration, effectively 
ignoring Japan's concern. 
 
Tokyo has persistently asked Washington to deal with the question of 
delisting the North cautiously. Regarding Washington's hasty step to 
delist the North at this point when the North's promise to 
reinvestigate the abduction issue remains unclear, a senior 
government official said before the dawn of June 24: "Is Washington 
going to take the North off the list of terrorism-sponsoring nations 
in defiance of Japan's wishes? It should wait until after closely 
verifying what is in the declaration." 
 
The North Korean issue will be on the agenda at the G-8 Lake Toya 
Summit, which is only two weeks away. At the summit, leaders of the 
relevant countries are likely to welcome progress on the six-party 
talks on dismantling Pyongyang's nuclear programs. The Japanese 
government will likely find it difficult to incorporate progress on 
the abduction issue in the envisaged G-8 declaration. 
 
U.S. Secretary of State Condoleezza Rice will also attend the G-8 
foreign ministerial. Rice is scheduled to hold talks with Foreign 
Minister Masahiko Koumura on the 27th. The government intends to 
discuss closely future developments with the U.S. government. 
 
6) Fukuda vows to do his best for base issues but remains unable to 
pave way for solution 
 
 
TOKYO 00001726  005 OF 010 
 
 
ASAHI (Page 4) (Abridged) 
June 24, 2008 
 
Prime Minister Fukuda yesterday made his first official visit to 
Okinawa Prefecture, where he attended a memorial service for the war 
dead in the Battle of Okinawa in World War II. The government has 
promoted Okinawa's industrial development while alleviating the 
island prefecture's base-hosting burden. Fukuda will follow this 
Okinawa policy and attach importance to dialogue with local leaders. 
However, he remains unable to pave the way to resolve pending 
issues, including Futenma airfield's relocation. 
 
In his speech at the memorial service, Fukuda portrayed Japan as a 
nation that cooperates for peace, declaring that Japan will fulfill 
its role in the international community. 
 
Referring to base issues, Fukuda stressed his stance of attaching 
importance to dialogue with local communities. "I will do my best to 
alleviate Okinawa Prefecture's burden while listening to the earnest 
voice of local communities," Fukuda said. 
 
Meanwhile, Okinawa has asked the government to move the construction 
site of Futenma airfield's alternative facility to an offshore area. 
In February, Chief Cabinet Secretary Machimura went further than 
ever in his press remarks. "We want to reach a settlement at an 
early date while bearing the option of offshore relocation in mind," 
he said. However, the United States is strongly opposed to revising 
the agreement reached between Japan and the United States on Futenma 
relocation to a coastal area of Camp Schwab in the island 
prefecture's northern coastal city of Nago. As it stands, Futenma 
relocation has been deadlocked. 
 
"To resolve the Futenma issue, the prime minister will need to 
display strong leadership that is convincing to both Okinawa and the 
United States," one government official noted. The Diet is currently 
divided, with the ruling coalition holding a majority of the seats 
in its lower house and the opposition camp controlling its upper 
house. Fukuda is therefore facing difficulties in steering his 
government. The question is whether he is strong enough to settle 
the base issues. 
 
7) Kono refers to military responsibility 
 
ASAHI (Page 4) (Full) 
June 24, 2008 
 
House of Representatives Speaker Yohei Kono delivered a speech in a 
memorial service held yesterday in Okinawa Prefecture for the war 
dead upon the 63rd anniversary of the end of the Battle of Okinawa 
in World War II. "The military in those days might not have given 
first consideration to the safety of local people in Okinawa," Kono 
stated. "And," he added, "we must not turn our eyes away from this 
doubt." This is the third time for Kono to deliver a speech there, 
following his previous speeches in 2005 and 2006. However, this is 
the first time for him to touch on the Imperial Japanese Army's 
responsibility. 
 
Kono noted, "Japan's leadership in those days was unable to bring 
the war to an appropriate and early end, and this resulted in a 
large number of victims in Okinawa." He also took up U.S. military 
base issues in Okinawa. "In the long-term," Kono said, "we should 
create a peaceful diplomatic environment in East Asia and we should 
 
TOKYO 00001726  006 OF 010 
 
 
change the security situation so the current large-scale U.S. 
military presence will be unnecessary." With this, he emphasized 
that Japan should work to stabilize East Asia in order to realign 
and reduce U.S. military bases in Japan. 
 
8) No clue in sight for Futenma relocation 
 
YOMIURI (Page 4) (Full) 
June 24, 2008 
 
Prime Minister Fukuda made his first official visit to Okinawa 
Prefecture yesterday to attend a memorial service held in the island 
prefecture's city of Itoman for the war dead upon the 63rd 
anniversary of the end of the Battle of Okinawa in World War II. In 
the presence of reporters there, Fukuda voiced his willingness to 
push for the pending issue of relocating the U.S. Marine Corps' 
Futenma Air Station. In fact, however, there is no clue in sight to 
realize the plan. 
 
"Local sensitivity is very important. We'll have to resolve this 
issue early. We're now doing an (environmental impact) assessment. 
We will talk at length with Governor (Hirokazu) Nakaima and other 
people, for we must reach a convincing conclusion." 
 
Fukuda gave this comment after attending the memorial service to 
underscore his intention of reaching a settlement on the issue of 
Futenma relocation while attaching importance to local opinions. 
 
Meanwhile, Japan and the United States have reached an 
intergovernmental agreement on a plan to relocate Futenma airfield 
to a coastal area of Camp Schwab, a U.S. military installation in 
the prefecture's northern coastal city of Nago. The government plans 
to build a V-shaped pair of airstrips there as an alternative 
facility to take over the heliport functions of Futenma airfield. 
However, Okinawa Prefecture has asked the government to move the 
planned alternative's site to an offshore point. The government 
intends to comply with the request. However, the United States is 
strongly opposed to that change. As it stands, there has been no 
specific progress in consultations between the central and local 
governments. In April, the government held a meeting of its 
officials and local officials from Okinawa Prefecture and its four 
municipalities to consult on the issue of Futenma relocation. Since 
then, the government's consultative meeting with Okinawa has been 
suspended. 
 
In early June, the government held a meeting in Tokyo of officials 
from the Cabinet Secretariat, Cabinet Office, Defense Ministry, and 
Environment Ministry to discuss what to do about the legal 
interpretation of an environmental impact assessment if the plan is 
retouched. As seen from this move, the government is now preparing 
to revise the plan. Minister of State for Okinawa Affairs Kishida 
also visited Okinawa on June 21-23. Kishida met with the heads of 
municipalities in the prefecture's northern districts, including 
Nago Mayor Yoshikazu Shimabukuro. In that meeting, they agreed to 
resume a consultative meeting at an early date. 
 
However, the United States maintains its tough stance. Moreover, the 
ruling parties were defeated in the June 8 election for the 
prefecture's assembly, losing their majority. As a result, some 
officials deem it difficult to see progress in the situation for the 
time being. In the prefecture's assembly, the opposition parties are 
expected to occupy the posts of speaker and vice speaker and preside 
 
TOKYO 00001726  007 OF 010 
 
 
over most key committees. "The governor would be stuck on the 
Futenma issue that rubs the opposition parties' nerves," a ruling 
party lawmaker elected from Okinawa Prefecture said. 
 
9) Security panel to call for change in constitutional 
interpretation on missile defense 
 
YOMIURI (Page 2) (Full) 
June 24, 2008 
 
The government's council on reconstruction of legal foundation for 
national security will present a package of proposals to Prime 
Minister Fukuda today. 
 
Under the current interpretation of the Constitution, the use of the 
right to collective defense is banned. The package calls on the 
government to change the interpretation to allow Self-Defense Force 
(SDF) troops to use the right of collective defense to enable them 
to (1) provide cover to U.S. Navy vessels under attack on 
international waters; and (2) intercept ballistic missiles heading 
toward the U.S. 
 
The panel also points out that there are problems with the 
government's current interpretation of the Constitution on the 
propriety of the SDF going to the aid of other militaries engaged in 
United Nations peacekeeping operations (PKO), etc., when they are 
attacked and on the propriety of the SDF providing rear-line support 
to its allies. 
 
The panel held its first meeting in May 2007 under the former Abe 
administration. But since Prime Minister Abe stepped down, the panel 
had suspended activities. 
 
10) China coolly accepts MSDF vessel's first port call, probably 
reflecting anti-Japanese sentiment 
 
SANKEI (Page 2) (Full) 
June 24, 2008 
 
(Zhanjiang, Guangdong Province, China) 
 
The Maritime Self-Defense Force (MSDF) escort ship Sazanami will 
visit a military port in China on June 24 on a military exchange 
mission. This will be the first visit to China by an MSDF vessel. 
The calling port is in Zhanjiang, where a fleet command center of 
the Chinese military is located. Although Japan-China relations are 
improving recently, some in China have protested the government's 
acceptance of an MSDF vessel. Given such public opinion, some of the 
planned exchange events will be canceled, and news-gathering 
activities by Japanese reporters will be limited. 
 
The visit to China by the Sazanami is in return for the first ever 
port call to Japan by the PLA Navy missile destroyer Zhanjiang last 
November. The Air Self-Defense Force planned to dispatch a relief 
team to China to rescue victims of the massive earthquake in Sichuan 
Province, but it forwent the dispatch. Instead, the Sazanami will 
transport 300 blankets and 2,600 canned food products. 
 
Not only anti-Japanese groups but even general people have reacted 
to the MSDF vessel's port call to China. On the Internet, views 
opposing the planned port call are appearing, with many asking 
whether a port call by an "aggressor country's vessel" is proper. 
 
TOKYO 00001726  008 OF 010 
 
 
 
According to the China News Service, Rear Admiral Yang Yi sought 
understanding for the MSDF vessel's planned port call to China, but 
he also made the following remark, keeping in mind the voices of 
protest in the military: "China suffered severe damage in Japan's 
aggressive war. The port call by a vessel with the Japanese flag 
will easily remind us of our painful memory." 
 
Various events have been planned in commemoration of the port call, 
but a concert by an MSDF musical band has been canceled. In 
addition, the Japanese media will not be allowed to cover the 
exchange gathering and games on the deck between crewmembers of the 
Sazanami and the Zhanjiang. According to Japanese officials, 
permission from China is necessary for gathering news. 
 
An informed source analyzed that China's negative reaction to the 
MSDF vessel's port call might be reflecting public reaction to the 
recent agreement between the Japanese and Chinese governments on the 
joint development of gas fields in the East China Sea. 
 
11) Afghanistan reconstruction; G-8 to set up coordination framework 
for assistance to border areas 
 
NIKKEI (Page 2) (Slightly abridged) 
June 24, 2008 
 
The Group of Eight nations (G-8) have firmed up a policy of setting 
up a framework for the coordination of their aid policies with the 
aim of assisting areas bordering with Pakistan. The aim is to ensure 
effective assistance. They are expected to reach a consensus at a 
G-8 ministerial to be held in Kyoto on June 26-27 and then include 
the agreement in a special statement on Afghanistan. 
 
The border areas in Afghanistan have become a hotbed for terrorist 
activities. Among various antiterror measures, the international 
community is attaching importance to economic development and public 
security measures in the border areas. The number of aid projects 
has reached over 150. The total project size is estimated to be 
between 2-3 billion dollars. 
 
Under the envisaged framework, ambassador-level persons from various 
international aid organizations, including G-8 nations that are 
operating in Afghanistan and the UN, will meet and look into the 
possibility of extending cooperation, by checking progress on 
ongoing aid measures. As a framework tasked with checking 
reconstruction assistance to Afghanistan, there is also the bureau 
director-level Joint Coordination and Monitoring Board (JCMB) tasked 
with monitoring progress on assistance measures as a whole. 
 
Japan has provided assistance to Afghanistan totaling 65 million 
dollars for areas related to health, education, border control and 
assistance to refugees. At the G-8 foreign ministerial, Japan will 
lead discussions as the host nation to make the venue as a milestone 
for the realization of its being seen as a peace-cooperating nation, 
a concept that Prime Minister Fukuda advocates. 
 
12) Basic policy guidelines forgo pending issues: CEFP takes 
moderate approach in drafting guidelines 
 
MAINICHI (Page 2) (Full) 
June 24, 2008 
 
 
TOKYO 00001726  009 OF 010 
 
 
The government's Council on Economic and Fiscal Policy (CEFP) on 
June 23 released the draft of basic policy guidelines for the 2008 
national budget. The draft revealed that many pending issues, such 
as a consumption tax hike, the reallocation of road construction 
revenues, and the education budget, which could generate conflict 
within the Liberal Democratic Party (LDP), have been put on the back 
burner. The weakened basic policy guidelines reflect that the CEFP, 
which former Prime Minister Koizumi used as the driving force of the 
Kantei-led reform policy, has changed its nature. 
 
Explaining the moderate stance of the CEFP, a government source on 
June 23 noted: "The LDP fiercely opposed proposals made by the CEFP 
during the Koizumi administration. However, Prime Minister Koizumi 
forced his positions through." 
 
Advocating "structural reforms with no sacred areas," Koizumi 
appointed Heizo Takenaka from the private sector as state minister 
in charge of economic and fiscal policy. Basic policy guidelines 
issued during the Koizumi administration included proposals for the 
disposal of nonperforming loans within two to three years and a 3 
PERCENT  cut in public works. LDP lawmakers tied to special 
interests criticized Takenaka, with one saying, "We cannot possibly 
follow a group led by a layman." However, it was the usual practice 
that issues were in the end settled with Koizumi making a final 
decision. 
 
A compromising stance was visible in the fiscal 2006 basic policy 
guidelines, though, the last set issued by the Koizumi 
administration. The fiscal 2007 version of the guidelines did not 
include a numerical target for public works, with consideration 
given to the ruling parties, which were applying pressure for 
increased expenditures on the eve of the Upper House election. 
 
The basic policy guidelines for fiscal 2008 follow that same trend. 
Since the importance of basic policy guidelines in terms of setting 
a course for the next year's budget compilation has weakened, the 
prime minister's decision will be put to the test. 
 
13) Prime Minister Fukuda: Consumption tax hike to be decided within 
2 to 3 years 
 
NIKKEI (Top Play) (Excerpts) 
June 24, 2008 
 
When asked by the press about his view on raising the consumption 
tax, Prime Minister Yasuo Fukuda said yesterday: "I want to consider 
it from a long-term perspective of two to three years. So it will be 
decided in the future." He indicated a cautious stance about raising 
the consumption tax rate in fiscal 2009. His remark yesterday 
slightly retreated from what he had said last week, namely, that now 
was a crucial time to make a decision. At the same time, he revealed 
that his government would come up in July with emergency 
countermeasures to tackle the social security problem, including an 
improvement in the medical service system. 
 
During an interview on June 17 with news agencies from the Group of 
Eight (G8) member countries, Fukuda stated on the possibility of a 
consumption tax hike: "Considering Japan is becoming an aging 
society, a path has narrowed." His remarks were taken that he would 
look into raising the consumption tax rate through debate on drastic 
reform of the tax system starting in the fall, with an eye on an 
increase in the government's share of the basic pension from fiscal 
 
TOKYO 00001726  010 OF 010 
 
 
¶2009. 
 
In his press conference yesterday at the Prime Minister's Office, 
Fukuda underscored: 
 
"The government has now been pushing with 'zero waste' approach to 
expenditure reform. There is also an issue of shifting tax revenues 
earmarked for road projects to the general account." 
 
He indicated in his remarks that he would give priority to gathering 
funds by slashing expenditures and integrating the special account 
from road-related taxes into the general account funds for the time 
being. He then said: "We also have to mull economic trends," 
indicating he would consider (a consumption tax hike) with the 
country's economic performance in mind. 
 
He also announced that in consideration of public criticism of the 
new health insurance system for those aged 75 and older, his 
government would come up with new measures, saying: "I will carry 
out a general review of administrative management from the public 
point of view." He then unveiled that a set of in 'five relief 
measures,' which the government would be make public before the end 
of July. The government, in order to restore public confidence in 
it, would compile measures for supporting the elderly people, 
improving the medical service system, supporting child-rearing, 
improving the system for irregular employees, and straightening out 
the pension-record mess. 
 
14) Government gives up on nomination of Ikeo as BOJ Policy Board 
member 
 
YOMIURI (Page 2) (Full) 
June 24, 2008 
 
The government yesterday gave up on its nomination of Keio 
University Prof. Kazuhito Ikeo for a Bank of Japan (BOJ) Policy 
Board post and decided to present another nomination to the next 
extraordinary Diet session. The reason is that Democratic Party of 
Japan (DPJ) Secretary General Yukio Hatoyama yesterday told Chief 
Cabinet Secretary Nobutaka Machimura by phone: "In consideration of 
relations with the People's New Party (PNP), we won't be able to 
approve the nomination of Ikeo in the extra Diet session, either." 
 
The DPJ had once decided to approve the government's nomination of 
Ikeo, submitted to the latest regular session. However, the party 
later refused to take a vote on the nomination, because the PNP 
threatened to leave the parliamentary coalition in the Upper House, 
reacting negatively to the nomination, arguing that it could not 
accept the DPJ's approval of Ikeo, who promoted postal 
privatization. As a result, the Upper House did not put it to a 
vote. 
 
The government also decided on a policy line of not resubmitting its 
nominations, disapproved by the DPJ in the regular Diet session, for 
members of an Oversight Commission on Reemployment, which would 
oversee the practice of amakudari, or placing retired senior 
bureaucrats into high-paying posts at private firms. The reason is 
that the DPJ has opposed the system itself. A government official 
said yesterday: "The prime minister will decide whether to approve 
reemployment (of retired bureaucrats)." 
 
SCHIEFFER