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UNCLAS SECTION 01 OF 11 TOKYO 001735 
 
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 06/25/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) President Bush to arrive in Japan July 6 to attend the Hokkaido 
Toyako Summit  (Nikkei) 
 
North Korea issues: 
5) U.S. informs Japan it will remove DPRK from list of 
terrorist-sponsoring states but move seen as end of pressure on the 
North and a trial for abduction issue  (Nikkei) 
6) Prime Minister Fukuda accepts U.S. decision to remove North Korea 
from terror-sponsor list: "If it resolves the nuclear issue, we 
welcome it!"  (Sankei) 
7) Japan to ask U.S. to thoroughly verify that North Korea has ended 
its nuclear programs  (Mainichi) 
8) Japan's fear becomes a reality: With U.S. removing DPRK from 
terror list, resolution of abduction issue may founder  (Asahi) 
9) Government still intends to press U.S. to place importance on 
abduction issue  (Yomiuri) 
10) Six-Party Talks expected to resume next week  (Yomiuri) 
 
China connection: 
11) MSDF ship arrives at Chinese port with quake relief goods, 
greeted by 400 Chinese sailors  (Asahi) 
12) China's welcoming MSDF ship arrival does not mask anti-Japanese 
feelings among the public  (Mainichi) 
13) With strong Chinese public distrust of Japan in the background, 
two governments seek ways to enhance security exchanges  (Nikkei) 
 
14) Panel presents report calling for use of right of collective 
self-defense but Prime Minister Fukuda reluctant to go along with 
changing Constitution's interpretation  (Mainichi) 
 
15) Extra Diet session may open on August 22  (Yomiuri) 
 
16) Big-boned economic and fiscal policy guidelines hit by wave of 
criticism from the LDP  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: 
Goodwill to pull out of labor dispatch business 
 
Yomiuri: 
Survey finds over 180,000 given blood tests with reused devices 
 
Nikkei: 
40 PERCENT  of listed companies effectively debt-free 
 
Sankei: 
Government's confidence recovery draft: Welfare minister to be 
appointed as vice premier; Senior vice ministers to be treated as 
cabinet ministers 
 
Tokyo Shimbun: 
Support for dissemination of solar power: Subsidies for housing to 
be reinstated; METI aims at halving installation fees 
 
TOKYO 00001735  002 OF 011 
 
 
 
Akahata: 
Consumption tax hike: Growing opposition among public 
 
2) EDITORIALS 
 
Asahi: 
(1) Consumption tax hike put on back burner: 3 trillion yen can be 
squeezed with zero-waste policy 
(2) Delisting of North Korea: Pursuit of abduction issue continues 
 
Mainichi: 
(1) Emissions trading: Mechanism useful for cutting carbon emissions 
needed 
(2) Tourism agency to be launched: Can it offer red-tape-free 
services? 
 
Yomiuri: 
(1) Delisting of North Korea: Strict verification of North Korea's 
nuclear declaration urged 
(2) Right of collective self-defense: Specific arguments for 
approving exercise of such a right needed 
 
Nikkei: 
(1) High prices of resources shaking stock markets in Asia 
(2) iPhone will change cell phone market 
 
Sankei: 
(1) Proposal on right of collective self-defense: Good opportunity 
to change unrealistic interpretation of the Constitution 
(2) Shooting incident involving Japanese fishing boat: Government 
should stick to its principles on territorial issue concerning 
Northern Territories at G-8 as well 
 
Tokyo Shimbun: 
(1) Delisting of North Korea: Assistance should be used as next tool 
to settle abduction issue 
(2) Palestinian split: Hurry to achieve reconciliation and 
reunification 
 
Akahata: 
(1) Prime minister's statement on consumption tax: He should give up 
on hike if he cannot explain reasons to public 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 24 
 
NIKKEI (Page 2) (Full) 
June 25, 2008 
 
09:15 
Met Secretary General Ibuki and Executive Council Chairman Nikai at 
LDP headquarters. Later attended a party executive meeting. 
 
10:02 
Attended a cabinet meeting at the Kantei. Administrative Reform 
Minister Watanabe stayed behind. Later, met Health, Labor and 
Welfare Vice Minister Edogawa, Health Promotion Bureau Director 
General Yatsu, and others. Yatsu stayed behind. 
 
11:33 
 
TOKYO 00001735  003 OF 011 
 
 
Met LDP Food Strategy Taskforce head Kato, Yatsu, and others. Yatsu 
stayed behind. 
 
14:10 
Met Foreign Minister Koumura. Followed by International Peace 
Cooperation Headquarters' Chief of Secretariat Ozawa. 
 
15:01 
Met association of lawmakers considering issues of health facilities 
for recuperation members, including Chairman Taro Nakayama and 
Secretary General Iijima. Nakayama stayed behind. Later met Cabinet 
Consultant Nishimura. Followed by Foreign Ministry's Vice Minister 
Yabunaka and Deputy Foreign Minister Sasae. Later met Ibuki. 
 
16:22 
Met former Health, Labor and Welfare Minister Kawasaki and Health 
Promotion Bureau Director General Nishiyama. Followed by Research 
Commission on Foreign Affairs Chairman Yamasaki and Research 
Commission on Security Chairman Nakatani. 
 
17:23 
Met Shunji Yanai, chairman of the council on reconstruction of legal 
basis for national security. Joined by Chief Cabinet Secretary 
Machimura. 
 
19:38 
Made a call of condolence for former Upper House Speaker Inoue at 
his residence in Chiba. 
 
20:53 
Dined with his secretaries and others at a restaurant in Kioicho. 
 
22:48 
Returned to his official residence. 
 
4) Japan-U.S. summit scheduled for July 6 
 
NIKKEI (Page 2) (Full) 
June 25, 2008 
 
(Hiroshi Maruya, Washington) 
 
The White House announced on June 24 that President Bush will leave 
the U.S. for Japan on July 5 to attend the Group of Eight Summit 
(Lake Toya Summit) and return home on the 9th. The President is 
scheduled to meet Prime Minister Yasuo Fukuda on the 6th. The two 
leaders are expected to discuss problems with North Korea, including 
the issue of the U.S. delisting North Korea as a terrorism sponsor. 
The President was considering a visit to South Korea, but he will 
visit there on another occasion. 
 
5) U.S. to begin steps to take North Korea off list of terrorism 
sponsors probably tomorrow; Japan likely to be pressed to revamp 
strategy on abduction issue 
 
NIKKEI (Page 2) (Slightly abridged) 
June 25, 2008 
 
The U.S. government is expected to begin steps to delist North Korea 
as a state sponsor of terrorism, possibly on June 26 if the North 
submits a declaration on its nuclear programs the same day as 
Washington expects. If that becomes the case, Japan may be pressed 
 
TOKYO 00001735  004 OF 011 
 
 
to revamp its strategy on the issue of North Korea's past abductions 
of Japanese nationals. 
 
Washington's approach to Pyongyang lay behind North Korea's response 
to Japan's call for holding bilateral talks. If the U.S. reduces the 
pressure on North Korea, Japan's efforts to resolve the abduction 
issue will suffer a setback. 
 
Fukuda approves U.S. policy 
 
The U.S. informed Japan that it would start steps to remove North 
Korea from the blacklist immediately after the North produces a 
declaration, Foreign Minister Masahiko Koumura said in a press 
conference yesterday morning. Prime Minister Yasuo Fukuda told 
reporters yesterday: 
 
"If the nuclear issue is resolved, we should welcome it. There is no 
difference in opinion (between Japan and the U.S.). Japan has the 
abduction issue. Cooperation between Japan and the U.S. is 
necessary." 
 
Washington's designation of North Korea as a terrorism sponsor, 
however, is an important negotiating card in applying pressure on 
that nation. Koumura said: 
 
"We have asked the U.S. to let Japan use the U.S. card to move 
negotiations on the abduction issue forward. The Japanese government 
wants more cooperation (from the U.S.)." 
 
Koumura intends to ask U.S. Secretary of State Condoleezza Rice in 
their meeting in Kyoto on June 27 not to weaken pressure on North 
Korea. Prior to this, Foreign Ministry Asian and Oceanian Affairs 
Bureau Director General Akitaka Saiki is scheduled to meet U.S. 
Assistant Secretary of State Christopher Hill in Kyoto. 
 
Battle against clock 
 
The delisting of a nation as a terrorism sponsor comes into effect 
45 days after the U.S. government informs Congress of its intention. 
During this period, the U.S. will look into the content of the 
declaration. The U.S. says that if it finds the account 
insufficient, it may not delist the North. In the Japanese 
government, however, the dominant view is that it is inconceivable 
that delisting will not go forward unless the account is severely 
flawed. 
 
Japan wants to turn North Korea's promise in the recent bilateral 
talks to reinvestigate the abduction issue into a concrete 
arrangement during the 45 days. That is because the possibility 
cannot be ruled out that North Korea may delay the reinvestigation 
once it is delisted. 
 
Voices of concern in LDP 
 
In a meeting yesterday of the Liberal Democratic Party's committee 
to deal with the abduction issue, chaired by Shoichi Nakagawa, views 
seeking a cautious response by the U.S. over the issue of delisting 
North Korea as a terrorism sponsor were presented in succession. 
Former Prime Minister Shinzo Abe emphasized: "Japan will regret if 
the U.S. delists the North before the abduction issue is resolved. 
In such a case, the Japan-U.S. alliance might be negatively 
affected." 
 
TOKYO 00001735  005 OF 011 
 
 
 
6) Fukuda to welcome N. Korea delisting if nuclear issue resolved 
 
SANKEI (Page 1) (Full) 
June 25, 2008 
 
The U.S. administration is expected to inform the U.S. Congress 
tomorrow that the United States will remove North Korea from its 
terrorism blacklist in line with North Korea's declaration of its 
nuclear programs. In this regard, Prime Minister Yasuo Fukuda 
indicated yesterday that he would accept the U.S. government's 
response. "If North Korea's nuclear issue is going to be resolved," 
Fukuda said, "that is welcome." Fukuda added, "There's no divergence 
at all (between Japan and the United States)." Fukuda's remarks 
stand out, as almost no government officials are taking a positive 
view of North Korea's delisting. 
 
However, Fukuda also said: "Our country will also have to resolve 
the abduction issue. Japan and the United States will need to keep 
in touch with each other even more closely." 
 
Meanwhile, Foreign Minister Masahiko Koumura indicated that he would 
carefully watch the United States' moves. "I don't think the United 
States will delist North Korea as soon as there is a (nuclear) 
declaration (from North Korea)," Koumura said. "There are as many as 
45 days (until delisting), and the United States may not delist 
North Korea if there is a problem with North Korea's declaration," 
he added. 
 
Koumura also referred to the Japanese government's stance, saying: 
"We'd like to ask the United States to let us use more of the 
(delisting) card the United States has. I'd like to talk with 
Secretary of State Rice about the government position." With this, 
Koumura indicated that he would ask the United States to remain 
cautious when he meets with Rice on June 27. 
 
The ruling Liberal Democratic Party yesterday held a meeting of its 
special committee on North Korea's abductions of Japanese nationals, 
with former LDP Policy Research Council Chairman Shoichi Nakagawa 
presiding. In the meeting, LDP lawmakers voiced dissatisfaction with 
the U.S. government's delisting policy. "I wonder how strongly the 
Foreign Ministry told the United States that this problem could 
undermine the Japan-U.S. alliance," one of them said. Another was 
upset, saying, "I think they're too conciliatory to North Korea." 
Former Prime Minister Shinzo Abe, an advisor to the special 
committee, also expressed his concern about the United States' 
attitude, saying, "It's an extremely serious problem." 
 
LDP Secretary General Bunmei Ibuki voiced his displeasure in a press 
conference: "Japan must say the United States is lowering the bar on 
the nuclear issue." 
 
Meanwhile, Ichiro Ozawa, president of the leading opposition 
Democratic Party of Japan (Minshuto), remarked in a press conference 
yesterday in the city of Nagano: "It means that the United States' 
global strategy will not be affected by Japan's circumstances at 
all. The United States said nice things to the families of those 
abducted to North Korea, but in the end, it does not give them any 
consideration." 
 
7) Government to urge U.S. to thoroughly examine North's nuclear 
declaration regarding delisting; G-8 foreign ministerial to begin 
 
TOKYO 00001735  006 OF 011 
 
 
tomorrow; Tokyo to apply pressure on Pyongyang 
 
MAINICHI (Page 2) (Full) 
June 25, 2008 
 
North Korea is expected to present a declaration of its nuclear 
programs and the United States is likely to begin delisting the 
North as a state sponsor of terrorism on June 26. Given the 
situation, the government will urge the U.S. government to make a 
decision to delist the North after closely examining the contents of 
the declaration. Secretary of State Condoleezza Rice is scheduled to 
visit Japan to attend the G-8 foreign ministerial to be held on June 
26-27 in Kyoto. She will hold talks with Foreign Minister Masahiko 
Koumura on the 27th. In the session, Koumura is expected to urge 
Washington to thoroughly examine the North's declaration even after 
notifying U.S. Congress of its decision to delist the North and to 
continue giving consideration to the abduction issue. 
 
Koumura delivered a speech in Tokyo yesterday in which he first 
pointed out the North Korean issue as a topic on the agenda of the 
G-8 foreign ministerial, saying: "I would like to see the G-8 urge 
the North to abandon all its nuclear weapons and nuclear programs. I 
would also like to see the group send a strong message to the 
international community for early settlements of humanitarian 
issues, such as the abduction issue." Washington is expected to 
notify Congress of its decision to delist the North on June 26 
following Pyongyang's nuclear declaration earlier in the day. 
Chances are high that Secretary Rice will formally announce the step 
during the foreign ministerial. 
 
As such, in the Japan-U.S. foreign ministerial, Tokyo is expected to 
underline the importance of verifying the contents of the 
declaration before the North dismantles its nuclear programs and of 
the international community's future steps. 
 
Secretary Rice has indicated that the United States "will not leave 
the abduction issue behind after delisting the North." New Komeito 
Representative Akihiro Ota said to the press yesterday: "There are 
many ways to achieve the final goal of settling the abduction and 
nuclear issues. Japan and the United States are in close 
cooperation." Japan intends to apply pressure to the North by 
confirming close cooperation with the United States. 
 
8-1) No prospects for progress on abduction issue in sight; Japan 
loses leverage in talks due to U.S. decision to delist the North as 
terrorism-sponsoring nation 
 
ASAHI (Page 2) (Excerpts) 
June 25, 2008 
 
Tokyo's fears have turned into reality. The United States is 
expected to delist North Korea as a state sponsor of terrorism 
before any progress is made on Pyongyang's promise to reinvestigate 
the abduction issue. Losing the diplomatic leverage to press 
Pyongyang for action, the government is having difficulty finding 
the next step that can break the gridlock in relations with North 
Korea. 
 
It became inevitable yesterday that the United States would take the 
North off its list of terrorism-sponsoring nations. Prime Minister 
Yasuo Fukuda yesterday said ostensibly calmly to the reporters: "If 
the North Korean nuclear issue moves toward a resolution, we should 
 
TOKYO 00001735  007 OF 011 
 
 
welcome it." Asked if he would urge President George W. Bush to 
forgo delisting the North, the prime minister said: "The nuclear and 
abduction issues are closely linked to each other. Aside from the 
Department of State, President Bush is well aware of Japan's 
standpoint." 
 
The same phrase has often come from high-ranking government 
officials and senior Foreign Ministry officials. 
 
Japan has heavily relied on President Bush, who met with Sakie 
Yokota, the mother of abductee Megumi Yokota, and other family 
members of Japanese abductees, and expressed strong interest in the 
abduction issue. During the Japan-U.S. summit last November, 
Washington indicated that it would delist the North before the end 
of the year. President Bush also said that he would consider Japan's 
standpoint (in delisting the North). Japan has pinned hopes on his 
words. 
 
8-2) Japan to press the North harder during 45 days 
 
ASAHI (Page 2) (Abridged slightly) 
June 25, 2008 
 
The option of delisting North Korea as a state sponsor of terrorism 
has been a powerful bargaining tip in talks with the North. Without 
that tool, Japan might find it extremely difficult in dealing with 
the North. 
 
Foreign Minister Masahiko Koumura said in a press conference 
yesterday: "We will make efforts to let us use the 'delisting card' 
effectively." Koumura revealed a plan to urge Washington once again 
to use the "delisting card" while giving consideration to Japan 
through in his talks with U.S. Secretary of State Condoleezza Rice 
to be held on June 27 in Kyoto. 
 
Japan has other leverages, such as economic aid and energy 
assistance. Above all, Tokyo regards the option of diplomatic 
normalization as the most powerful leverage. Former LDP Secretary 
General Taku Yamasaki who chairs the Parliamentary League to Promote 
Diplomatic Normalization between Japan and North Korea yesterday 
positively described (the delisting) as a step toward the third 
phase leading to the abandonment of nuclear programs by the North. 
Yamasaki also indicated that once progress is made on the nuclear 
issue, Japan, too, should naturally extend energy aid to the North 
irrespective of the abduction issue. 
 
Nevertheless, whether such an approach can produce immediate results 
in dealing with the North, which can expect loans from international 
organizations following the delisting, remains unknown. 
 
The U.S. government is required to notify Congress of its decision 
to delist the North 45 days before the step takes effect. With its 
back against the wall, Tokyo now pins hopes on the 45 days. The 
government intends to press the North harder via the United States 
through this period, with Koumura saying, "(If North Korea's nuclear 
declaration) is found out to be insufficient, Washington might 
renege on its decision." 
 
In order for U.S. Congress to block the delisting, new legislation 
is necessary, and such a development is unlikely. Once the North is 
delisted, Pyongyang might opt not to fulfill its pledges with Japan, 
such as the reinvestigation into the abduction issue. 
 
TOKYO 00001735  008 OF 011 
 
 
 
9) Japan to ask U.S. to place importance on abduction issue 
 
YOMIURI (Page 2) (Full) 
June 25, 2008 
 
North Korea is expected to provide a declaration of its nuclear 
programs as early as tomorrow, and the United States is expected to 
delist the North as a state sponsor of terrorism. Following these 
moves, the Japanese government intends to call on Washington to give 
consideration to the abductions of Japanese by North Korea when it 
decides to delist and to urge Pyongyang to make progress on the 
abduction issue. It plans to take advantage of the upcoming Group of 
Eight (G8) foreign ministerial and the Hokkaido Toyako G8 summit. 
 
Prime Minister Yasuo Fukuda last night told the press: 
 
"If (delisting North Korea) brings a settlement to the North Korean 
nuclear issue, it should be welcomed. Since our country has the 
abduction issue, we should resolve it. To that end, as well, close 
cooperation between Japan and the United States is necessary." 
 
The Japanese government has taken the position that the Bush 
administration will neither put on the back burner the abduction 
issue nor forget it, as Secretary of State Condoleezza Rice said. It 
is therefore expected to call on the U.S government to strengthen 
its pressure on North Korea to achieve progress on the abduction 
issue during the period of 45 days from the notification to the 
effective date. 
 
10) Six-party talks to resume as early as next week 
 
YOMIURI (Page 2) (Full) 
June 25, 2008 
 
A senior Foreign Ministry official revealed to the press yesterday 
in Tokyo that the next round of the six-party talks on North Korea's 
nuclear programs will be held as early as next week. 
 
Following the expectation that North Korea will present a 
declaration of its nuclear programs on June 26, the senior official 
stated: "(The six-party talks) will be resumed probably next week. 
It is a good idea to hold the talks before the Group of Eight 
Hokkaido Toyako summit, which will begin on July 7." The 
verification of North Korea's nuclear declaration will likely be the 
main topic of discussion. 
 
11) MSDF ship makes 1st visit to China 
 
ASAHI (Page 1) (Full) 
June 25, 2008 
 
ZHANJIANG, Guangdong, China-The Sazanami, a Maritime Self-Defense 
Force destroyer, arrived yesterday in the city of Zhanjiang in 
China's Guangdong Province as part of a defense exchange program 
between Japan and China. The Sazanami is the first MSDF vessel to 
visit China. Its crew handed over relief goods, including blankets, 
for those affected by the recent Sichuan earthquake. 
 
Raising the flags of Japan and China, the Sazanami arrived at a 
naval port, with about 240 onboard. The MSDF ship was greeted by 
about 400 Chinese sailors. Su Shiliang, commander of the PLA Navy's 
 
TOKYO 00001735  009 OF 011 
 
 
south sea fleet, welcomed the Sazanami: "I believe that the visit 
will lead to strengthening our two countries' friendship and 
confidence-building measures." 
 
12) MSDF vessel's first port call in China: Anti-Japanese public 
opinion smoldering: Hu leadership expanding exchanges cautiously 
 
MAINICHI (Page 7) (Full) 
June 25, 2008 
 
(Zhanjiang, Guangdong Province, China) 
 
The Maritime Self-Defense Force (MSDF) escort ship Sazanami on June 
24 made a port call in Zhanjiang, where the Nanhai Fleet Command 
Center of the Chinese Navy is located, for the first time as an MSDF 
vessel.  Anti-Japanese sentiment is still smoldering in China, 
including in the military. Strong wishes of the Hu Jintao 
leadership, which attach importance to Japan-China relations, seem 
to be behind the Chinese military's acceptance of a port call by an 
MSDF vessel. 
 
Japanese reporters at a press conference held after the ceremony 
asked Commander Su Shiliang of the Nanhai Fleet Command Center 
whether the SDF is hated in China. However, Su cut short the 
question and did not touch on wartime history. 
 
On the other hand, Su underscored, "Japan dispatched rescue and 
medical teams immediately after the earthquake in Sichuan. We 
appreciate that from the bottom of our hearts." His comment 
indicated the Chinese military's will to mitigate a backlash against 
the SDF, by making a public appeal to a domestic audience on Japan's 
contribution.  Following the quake, the governments of Japan and 
China were considering transporting relief goods to China, using the 
Air Self-Defense Force's transport plane. However, the Japanese 
media's report noting that China asked the dispatch of SDF personnel 
brought a fierce backlash. For this reason, relief goods, such as 
blankets, the Sazanami brought to China this time were treated as 
consolation gifts that were not given at the request of China. 
 
Hong Kong journal "Weekly Yazhou," which is versed in the internal 
situation of the Chinese military, in its latest issue reported a 
negative mood toward the port call by the MSDF vessel, quoting a 
high-ranking Chinese military officer's statement: "It will take a 
certain period of time until the furor over the MSDF airlifting 
relief goods to China subsides. The Chinese military is doing its 
utmost in quake relief activities. The atmosphere is not appropriate 
for a Japanese vessel (SDF vessel) to visit China." 
 
The negative mood in the Chinese military has also cast a pall over 
exchange events. The Sazanami has about 240 crewmen, including those 
belongs to a musical band. Exchange activities are limited to 
on-the-base events. A concert planned to be held in the city center 
was cancelled for security reasons. 
 
A diplomatic source in Beijing explained: "It is essential for 
defense officials of Japan and China to build confidence for a 
stable bilateral relationship. The Chinese leadership is cautiously 
pressing ahead with such an effort so that it will not stir up 
domestic public opinion." 
 
13) MSDF vessel's port call to China: Japan, China have to advance 
defense exchange, keeping in mind distrust of Japan in China 
 
TOKYO 00001735  010 OF 011 
 
 
 
NIKKEI (Page 2) (Excerpts) 
June 25, 2008 
 
(Ken Sato, Zhanjiang, Guangdong Province, China) 
 
The Maritime Self-Defense Force (MSDF) escort ship Sazanami's port 
call to China demonstrates that confidence-building between Japan 
and China on the security front has entered a new stage. The Chinese 
military's distrust in Japan tended to undermine Japan-China 
relations, but bilateral relations are now at a turning point. As 
seen from the cancellation of the Air Self-Defense Force's plan to 
dispatch a relief team to China to rescue victims of the massive 
earthquake in Sichuan Province, many Chinese people are allergic to 
the SDF. Japan and China will have to advance bilateral defense 
exchange while keeping in mind public feelings in China. 
 
A member of China's South Sea Fleet told reporters on June 24: "The 
mutual visits of both countries' naval ships will lead to 
strengthening mutual trust in the security area and promoting their 
strategic mutually-beneficial relationship." Shinichi Tokumaru, 
commander of the MSDF's Escort Flotilla 4, also emphasized: 
"Bilateral exchange will contribute to maintaining peace and 
stability in the Asian region." 
 
The Sazanami's port call comes in return for the port call to Japan 
by a PLA Navy missile destroyer last November. The mutual visits of 
Japanese and Chinese naval vessels have been realized about 10 years 
after the two countries signed a basic agreement in May 1998. Behind 
the delay are the issues of prime ministerial visits to Yasukuni 
Shrine, as well as anti-Japanese sentiment and wariness toward Japan 
in the military on the Chinese side. The selection of Zhanjiang in 
Guangdong Province, which has attracted little attention unlike 
Tianjin or Shanghai, as the calling port reflects these 
circumstances. 
 
Even so, there are still deep-seated reactions in China. Rear 
Admiral Yang Yi said: "The port call by a vessel with the Japanese 
flag will easily remind us of our painful memory." On the Internet 
on June 24, a typical comment went: "(The Chinese government) has 
approved the revival of Japan's militarism." 
 
14) Collective self-defense acceptable: report 
 
MAINICHI (Page 2) (Abridged) 
June 25, 2008 
 
A government advisory panel for rebuilding the legal foundation of 
Japan's national security submitted a report yesterday to Prime 
Minister Yasuo Fukuda, recommending the government allow Japan to 
exercise its right to collective self-defense, which is prohibited 
under the government's current constitutional interpretation. The 
panel studied four cases for Japan's participation in collective 
self-defense, with former Ambassador to the United States Shunji 
Yanai presiding. The panel report suggests the need for the 
government to change its constitutional interpretation. However, 
Fukuda will not approve collective self-defense. 
 
The panel report proposes allowing Japan to participate in 
collective self-defense in order for Japan's Self-Defense Forces to 
guard U.S. naval vessels in international waters and intercept 
U.S.-bound ballistic missiles. The report also proposes 
 
TOKYO 00001735  011 OF 011 
 
 
reinterpreting the Constitution to allow SDF members to use weapons 
in order to protect foreign troops coming under attack. In addition, 
it recommends the government allow SDF personnel to back up foreign 
troops in a combat zone. 
 
15) Extra Diet session likely to open on August 22 
 
YOMIURI (Page 4) (Full) 
June 25, 2008 
 
Democratic Party of Japan (DPJ) Diet Affairs Committee Chairman 
Kenji Yamaoka, in a speech delivered in Atami, Shizuoka Prefecture, 
said that chances are high that the next extraordinary Diet session 
will be convened on August 22. 
 
Yamaoka then stated: 
 
"(The DPJ) should conduct its presidential election in early 
September. The ruling camp is considering starting interpellation on 
25th and compiling a (supplementary) budget before the end of 
August." 
 
16) Storm of criticism against "big-boned reform policy guidelines" 
draft; LDP forgoes approving it 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 25, 2008 
 
The ruling Liberal Democratic Party (LDP) yesterday deliberated on a 
"big-boned reform policy guidelines for fiscal 2008" draft compiled 
by the government in its Policy Research Council. Since many council 
members criticized the policy of curbing expenditures being 
maintained, the LDP forwent approving it. Although the LDP 
leadership intends to secure approval from the policy board today, 
the deliberations are expected to encounter difficulties. 
 
In the meeting, council members actively criticized the draft, with 
one saying: "Why should the 'big-bone reform policy,'" which was a 
cause of our defeat in the House of Councillors election, be 
continued?" Another said: "If the policy is shifted, the LDP will be 
defeated by the Democratic Party of Japan (DPJ)." Another was heard 
to remark: "The phrase that 'expenditures will be cut to the fullest 
extent' should be omitted." 
 
Regarding specific items, a policy of slashing social security costs 
by 220 billion yen per year came under fire, with one member saying: 
"A natural increase in the social security expenditure has been 
constrained by reform of the system. It is strange to continue 
cutting the costs." Some members called for boosting education 
spending. 
 
SCHIEFFER