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UNCLAS SECTION 01 OF 07 TOKYO 001791 
 
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 06/30/08 
 
INDEX: 
 
(1) 61 PERCENT  opposed to lifting economic sanctions against North 
(Nikkei) 
 
(2) Nikkei poll: Cabinet support rate rises to 26 PERCENT  (Nikkei) 
 
 
(3) DPJ's hard-pressed finances: Too much money spent on Upper House 
election last year (Tokyo Shimbun) 
 
(4) Annual IWC meeting: Mood for holding dialogue on whaling 
dwindles: Meeting winds up reviving voting battle (Asahi) 
 
(5) Interview with U.S. Undersecretary of Science Orbach: Non-food 
biofuel technologies imperative (Nikkei Sangyo Shimbun) 
 
(6) TOP HEADLINE 
 
(7) EDITORIALS 
 
(8) Prime Minister's schedule, June 28 (Nikkei) 
 
ARTICLES: 
 
(1) 61 PERCENT  opposed to lifting economic sanctions against North 
 
NIKKEI (Page 2) (Abridged slightly) 
June 30, 2008 
 
The government has announced that it would partially lift its 
economic sanctions against North Korea if an agreement was reached 
on the form of Pyongyang's reinvestigation into the issue of 
Japanese abducted by North Korea in the past. In a recent Nikkei 
opinion poll, 61 PERCENT  of respondents expressed opposition to the 
government's policy to lift sanctions, while 25 PERCENT  voiced 
support for it. The government's response to the abduction issue is 
still under intense public scrutiny. 
 
Even of those supporting the cabinet, 44 PERCENT  reacted negatively 
to the government's policy, while 39 PERCENT  reacted positively. 
Among unaffiliated voters, negative answered added up to 70 PERCENT 
and positive replies 19 PERCENT . 
 
By party, 56 PERCENT  of LDP supporters voiced opposition and 32 
PERCENT  support. Negative reactions were also dominant among DPJ 
supporters and unaffiliated voters, with the former marking 67 
PERCENT  and the latter 56 PERCENT . 
 
(2) Nikkei poll: Cabinet support rate rises to 26 PERCENT 
 
NIKKEI (Page 1) (Abridged slightly) 
June 30, 2008 
 
The rate of support for the cabinet of Prime Minister Yasuo Fukuda 
stood at 26 PERCENT  in a Nikkei public opinion survey conducted on 
June 27-29, up 2 points from the previous survey conducted in late 
May. The disapproval rate was still high at 63 PERCENT , though it 
dropped 1 point from the previous survey. By party, the Liberal 
Democratic Party overtook the Democratic Party of Japan for the 
first time since April by 1 point at 36 PERCENT  to 35 PERCENT . 
Views on a consumption tax hike were fairly evenly split. 
 
TOKYO 00001791  002 OF 007 
 
 
 
In a question asking for reasons for not supporting the cabinet, 61 
PERCENT  of respondents cited "a lack of leadership", 46 PERCENT 
referred to "bad policy," 33 PERCENT  "a lack of stability" and 22 
PERCENT  "a lack of international sensitivity." As for reasons for 
supporting the cabinet, 43 PERCENT  said the prime minister's 
personality was trustworthy and 37 PERCENT  indicated that it is an 
LDP cabinet. 
 
Although the support rate sank to 21 PERCENT , the lowest ever (in 
Nikkei polls), in early May due to the reinstatement of the 
provisional gasoline tax rate and the introduction of the healthcare 
system for people aged 75 and older, it is inching up. The DPJ and 
LDP swapped places in early May, and the DPJ remained more popular 
than the LDP in late May. In the latest survey, the LDP overtook the 
major opposition party. 
 
Prime Minister Fukuda has indicated that the government will decide 
on a consumption tax hike in two to three years. Regarding this 
matter, 47 PERCENT  indicated the rate must not be hiked, while 46 
PERCENT  said a hike cannot be helped. By party, 58 PERCENT  of LDP 
supporters reacted positively and 37 PERCENT  negatively to a tax 
hike. In contrast, among DPJ supporters, negative answers added up 
to 52 PERCENT  and positive answers 41 PERCENT . Among unaffiliated 
voters, 47 PERCENT  expressed opposition to and 43 PERCENT  support 
for a tax hike. 
 
Nikkei Research conducted the telephone-based opinion poll of 1,555 
men and women selected by a random digit-dialing (RDD) system. Valid 
answers came from 900, or 57.9 PERCENT  of the total. 
 
(3) DPJ's hard-pressed finances: Too much money spent on Upper House 
election last year 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 27, 2008 
 
The main opposition Democratic Party of Japan (DPJ) has been 
experiencing financial difficulties because it spent too much money 
on the July 2007 House of Councillors election. Even if the largest 
opposition party can force Prime Minister Yasuo Fukuda to dissolve 
the House of Representatives at an early date, a shortage of funds 
may hamper it in such a campaign. 
 
The DPJ's budget for this year totals 16.4 billion yen, a drop of 
6.4 billion yen from 22.8 billion yen last year. This is because the 
balance brought forward was reduced, since more money was spent on 
the Upper House election than expected. In addition, the party spent 
its funds for campaigns for the Osaka gubernatorial election, the 
Lower House by-election for the Yamaguchi No. 2 constituency, and 
the Okinawa assembly election. 
 
President Ichiro Ozawa gave a pep talk to party members, saying: 
"The possibility is high that a Lower House election will be held by 
late this year." The party plans to start in early September the 
finalization of its official candidates. In that case, "The party 
will give funds (to the candidates) and make posters, so a great 
deal of money will be needed," said Diet Affairs Committee Chairman 
Kenji Yamaoka. 
 
The DPJ plans to hold a fund-raising party on July 14 in Tokyo. It 
hopes to secure 250 million yen by selling tickets. A senior party 
 
TOKYO 00001791  003 OF 007 
 
 
member, however, said: "We want 20 billion yen to contest the Lower 
House election." 
 
The DPJ reportedly has found it difficult recently to get loans from 
banks. Another senior member lamented: "In the past, President Ozawa 
lent us money." Ozawa reportedly told senior party members: "I want 
you to use money carefully. 
 
DPJ Financial Committee Chairman Taisuke Sato said: 
 
"There are two methods for us for resolving financial difficulties: 
either individual lawmakers will put up their houses and land as 
collateral for loans, or the party will collect contributions and 
increase its membership dues and charges for parties." 
 
He also called on DPJ members to stop the wasteful use of party 
money, saying: "The party will not allow the creation of excessive 
banners and pamphlets." 
 
(4) Annual IWC meeting: Mood for holding dialogue on whaling 
dwindles: Meeting winds up reviving voting battle 
 
ASAHI (Page 6) (Excerpts) 
June 28, 2008 
 
The 60th annual meeting of the International Whaling Commission 
(IWC) wrapped up its five-day session on June 27. Participating 
countries have decided to set up a working group to improve the 
present situation of the IWC, where whaling countries and 
antiwhaling countries are in conflict. However, whether talks at 
such a setting will produce any effects is doubtful. Though whaling 
countries, including Japan, have hinted at creating a new framework, 
their cash position in terms of research whaling, which Japan is 
promoting, is deteriorating. 
 
A split in views developed when Denmark proposed allowing the 
hunting of 10 humpback whales. The IWC Science Committee reported 
that it would cause no problem to take a small number of them, since 
there is humpback population of some 3,000. Nevertheless, 
antiwhaling countries, such as the European Union (EU), rejected the 
proposal, leading to a voting battle despite efforts by both 
antiwhaling and whaling countries to avoid such. 
 
Chairman Hogarth of the U.S., who had been making efforts to 
normalize the proceedings, looked crestfallen when he said: "We have 
failed to reach a consensus at this meeting. I am so disappointed." 
 
The session started with a brief mood of a thaw occurring. Japan 
refrained from making overconfident statements, assuming a stance 
that mutual trust should be developed. This allowed anti-whaling 
countries to take the lead in discussions in an effort to turn the 
IWC into a whale-preservation agency. Research whaling was attacked. 
Discussions ranged from climate change to even the adverse effect of 
whale-watching boats on whales. Brazil and South Africa proposed 
placing a ban on whaling in the entire south Pacific south of the 
equatorial line. 
 
Australia, represented by Environment Minister Garrett, a former 
rock singer who has criticized Japan's research whaling as slaughter 
in the name of science, insisted that the IWC must transform itself 
from an organization that sets whaling quotas to one that protects 
whales. It also added that the effective use of whales should be 
 
TOKYO 00001791  004 OF 007 
 
 
limited to whale watching, which neither kills nor consumes whales. 
 
The normalization of the IWC has been put off until the next annual 
meeting to be held in June next year. The IWC will aim at drafting a 
package of proposals which can satisfy member nations. However 
distrust between whaling and antiwhaling countries is deep-rooted. 
 
An antiwhaling NGO was alarmed by the moves of whaling countries, 
with one member saying, "Even if we stop the voting battle, Japan 
would not stop catching whales." Caribbean countries, which are in 
favor of whaling, seem to be harboring a sense of crisis noting, 
which one source saying, "We might have remained silent for too long 
a time and made too many concessions." 
 
Japan aims at resuming coastal hunting of minke whales. However, 
precarious factors still remain. Fisheries Agency Deputy Director 
General Akira Nakamae, who hinted at a possible withdrawal by Japan 
from the organization during the annual meeting last year, strongly 
appealed to participating countries, "We will fasten hopes on the 
last chance next year in order to realize the resumption of 
small-scale coastal whaling that has been a traditional way of life 
for small fishing villages." 
 
Responding to an interview by the Asahi Shimbun, Minoru Morimoto, 
representative of the Japanese government, said, "If it is 
impossible for the IWC to go back to where it started as an 
organization to manage whaling, we must concurrently look for a new 
framework for whaling. 
 
Research whaling facing fund shortage 
 
Foreign pressure is not the only element that gets in the way of the 
future of Japan's research whaling. Research whaling is facing a 
funding shortage. 
 
According to the financial report of the Institute of Cetacean 
Research for the fiscal year covering October 2007 to September 
2008, estimates for income from the sale of whale meat will likely 
drop from 7.5 billion yen to 5 billion yen due to a drop in the 
number of whale catches caused by obstruction by antiwhaling groups. 
The Institute announced a 6.1 PERCENT  increase in the price of 
whale meat on average on June 24. However, the effect of the price 
increase is only 160 million yen. The institute gave up on 
significantly raising the prices of whale meat due to opposition 
from senior Fisheries Agency and whale meat traders, who were 
concerned about a drop in sales due to high prices. 
 
The Institute's finances have deteriorated due to a significant 
price cut in fiscal 2005 and a fire on a vessel. It has received 3.6 
billion yen in interest-free loans as operating funds from a 
judicial foundation under the jurisdiction of the Ministry of 
Agriculture, Forestry and Fisheries.  It plans to borrow more. 
However, if it becomes unable to pay, the debts will be made up for 
with tax money. 
 
(5) Interview with U.S. Undersecretary of Science Orbach: Non-food 
biofuel technologies imperative 
 
NIKKEI SANGYO SHIMBUN (Page 11) (Full) 
June 23, 2008 
 
The U.S., which has promoted the production of biofuels as a global 
 
TOKYO 00001791  005 OF 007 
 
 
warming countermeasure, tends to be at odds with developing 
countries, which claim that the production of biofuels using grains 
has pushed up the prices of those commodities. But the U.S. is also 
eager to promote the research and development (R&D) of second 
generation biofuels that do not threaten food supplies. Visiting 
U.S. Undersecretary of Science Raymond Orbach said that second 
general biofuels are expected to be widely used by 2020. 
 
-- What about the current state of progress in R&D of second 
generation biofuel technologies? 
 
It is said that the increased use of corn for biofuel has raised 
corn prices, but only about 3 PERCENT  of the margin of the price 
rise is attributable to the use of corn in making biofuel. When 
considering the long-term stable supply, however, the use of next 
generation biofuels is imperative. The U.S. government has invested 
a huge amount of money to meet this challenge, taking the lead in 
biofuel research across the world. 
 
The key points are how to resolve plants into their basic components 
and how to skillfully produce fuels. In addition to such vegetation 
as poplars, research on bacteria is also moving along. It is 
desirable to use plants that can survive in a harsh environment, for 
instance, with little precipitation or fertilizer. The production of 
fuels that use such raw materials will contribute to ensuring a 
long-term stable supply of energy. Over the next five years, we 
intend to come up with a plan for using next generation fuels and 
then over the following five years, develop an application 
technology so that we can fully disseminate such fuel. 
 
-- Attention is also being focused on carbon capture and storage 
(CCS) technology as means to contain global warming. 
 
The U.S. is at the forefront in meeting this challenge. This 
technological development will likely become one of the world's most 
important tasks in the near future. The U.S. is conducting 
meticulous study and research, including basic research, such as 
what impact will appear if CCS technology is used under various 
geographical conditions.  We are going to urge other countries also 
to launch research by emphasizing the effectiveness of CCS. 
 
-- What technical assistance is the U.S. planning to offer to 
developing countries in Africa and other regions? 
 
Providing advanced technologies is necessary, but since using such 
technologies cost a lot, developing countries will find it difficult 
to use them. It therefore is necessary to extend comprehensive aid 
that includes financial support, such as a fund for the effective 
use of clean energy. We would like to also make a contribution in 
the agricultural area by providing food-production technology and 
other means. I believe that relations between the U.S. and Africa 
will deepen in various research areas in the future. 
 
(6) TOP HEADLINES 
 
Asahi: 
10 municipalities considering restricting late-night convenience 
store operations for sake of conservation 
 
Mainichi: 
Tension runs high in Toyako with one week to go before G8 summit 
 
 
TOKYO 00001791  006 OF 007 
 
 
Yomiuri: 
More seasoned athletes go to Olympics 
 
Nikkei: 
Rising material costs drag slowing Japan economy 
 
Sankei: 
Prime Minister Fukuda's decision not to take up Northern Territories 
issue in G8 summit the loss of a good opportunity to apply 
international pressure 
 
Tokyo Shimbun: 
Many commodity prices to be raised in July 
 
Akahata: 
JCP symposium on agricultural revitalization in Hokkaido urges 
nation to increase self-sufficiency rate 
 
(7) EDITORIALS 
 
Asahi: 
(1) G-8 and global warming: Set greenhouse gas emissions reduction 
target that can be understood by working generations as well 
 
Mainichi: 
(1) False labeling of eels: Malicious intent to take advantage of 
consumer anxieties about food safety 
(2) Hereditary candidates: DPJ should limit hereditary candidates 
running in elections 
 
Yomiuri: 
(1) Inquiry into Atago accident: Maritime Self-Defense Force should 
take second look at training 
(2) Tokyo Metropolitan Government's CO2 ordinance: Is it possible to 
impose fair reduction rates? 
 
Nikkei: 
(1) Management of U.S. financial policy increasingly difficult 
(2) False labeling of eels: Impossible to get away with deception 
 
Sankei: 
(1) Public pension records fiasco: Identify all contribution 
records 
(2) Tokyo Metropolitan Government's CO2 ordinance: Consistency with 
state system needed 
 
Tokyo Shimbun: 
(1) Revision to minimum wages: Zero working-poor policy needed 
(2) Fierce competition in cell phone market due to iPhone and free 
basic software 
 
Akahata: 
(1) Goodwill pulls out of labor dispatch business: Drastic amendment 
to Labor Dispatch Law a pressing issue 
 
(8) Prime Minister's schedule, June 28 
 
NIKKEI (Page 2) (Full) 
June 29, 2008 
 
09:20 Attended a Tokyo G-8 plus 5 global environment lawmakers' 
meeting held at the Tokyo Prince Hotel. 
 
TOKYO 00001791  007 OF 007 
 
 
10:00 Met University of Tokyo Professor Akihiro Sawa at his official 
residence. 
Afternoon Spent time at his official residence. 
 
Prime Minister's schedule, June 29 
 
NIKKEI (Page 2) (Full) 
June 30, 2008 
 
09:56 Met at his official residence Deputy Foreign Minister Kono, 
Economic Affairs Bureau Director-General Otabe, and Assistant Chief 
Cabinet Secretary Ando, joined by Special Cabinet Advisor Nishimura 
 
13:02 Met Nishimura. 
 
SCHIEFFER