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Viewing cable 08TOKYO1808, JAPANESE MORNING PRESS HIGHLIGHTS 07/02/08

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Reference ID Created Released Classification Origin
08TOKYO1808 2008-07-02 01:17 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO7713
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1808/01 1840117
ZNR UUUUU ZZH
P 020117Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5542
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 1056
RUEHFK/AMCONSUL FUKUOKA 8680
RUEHOK/AMCONSUL OSAKA KOBE 2409
RUEHNAG/AMCONSUL NAGOYA 6912
RUEHKSO/AMCONSUL SAPPORO 9265
RUEHBJ/AMEMBASSY BEIJING 4193
RUEHUL/AMEMBASSY SEOUL 0184
RUCNDT/USMISSION USUN NEW YORK 0599
UNCLAS SECTION 01 OF 10 TOKYO 001808 
 
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 07/02/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
North Korea problem: 
4) Presidential candidates Obama, McCain's policies toward North 
Korea: Obama favors direct dialogue; McCain looks to cooperation 
with Japan, South Korea  (Sankei) 
5) UN Secretary General Ban asks Japan to provide food aid to North 
Korea  (Mainichi) 
 
G-8 Summit: 
6) G-8 Summit leaders will line up on checking China's nuclear 
expansion  (Nikkei) 
7) Chinese President Hu to join the G-8 Summit meeting  (Mainichi) 
 
8) Cover up of GSDF officer's loss of memory chip with U.S.-Japan 
training charts?  (Mainichi) 
 
Economy: 
9) Bank of Japan's Tankan survey of business opinion shows pessimism 
about economy for three months in a row, sign of Japan possibly 
entering recession  (Mainichi) 
 
10) Five economists read economic tea leaves to see slump coming, 
trouble especially in jobs and capital investment  (Asahi) 
11) LDP tax council wants to speed up tax reform, raise consumption 
tax, but encountering many hurdles  (Nikkei) 
 
12) Ruling camp drafts bill that would ban the dispatch of day 
laborers in principle  (Asahi) 
 
Political merry go round: 
13) Prime Minister Fukuda, former Prime Minister Mori meet to 
exchange views on cabinet shuffle  (Sankei) 
14) Former Kochi-governor Hashimoto plans to form new party before 
next Lower House election in order to serve as catalyst for 
political realignment  (Sankei) 
15) DPJ President Ozawa concludes nationwide stumping tour in Akita 
Prefecture  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Labor Ministry to submit to extra Diet session bill prohibiting 
dispatch of day workers 
 
Mainichi: 
Hokkaido Regional Development Bureau to be dismantled 
 
Yomiuri: 
Supreme Court urges new psychiatric testing rules 
 
Nikkei: 
Showa Shell to build one of world's largest solar cell facilities in 
2011 
 
Sankei: 
 
TOKYO 00001808  002 OF 010 
 
 
Tokushima Police to investigate mislabeled eel scam tomorrow 
 
Tokyo Shimbun: 
World Ocean Farm executives to be arrested on charges of fraud 
 
Akahata: 
JCP requests government to support farmers, fishermen 
 
2) EDITORIALS 
 
Asahi: 
(1) Economy: Preventing a severe recession 
(2) Education basic plan: Bold investment needed to improve academic 
standards 
 
Mainichi: 
(1) Japan Pension Corporation: Pension system reform at critical 
stage 
(2) Strengthening of authority of National Archives of Japan: 
Thorough information disclosure urged 
 
Yomiuri: 
(1) SDF dispatch to Sudan: How to expand scope of SDF's peacekeeping 
activities 
(2) Tankan: Possibility of recession moving closer to reality 
 
Nikkei: 
(1) Strength of Japanese economy and corporations being tested 
(2) Enthusiasm for Japan becoming education-oriented country cannot 
be felt in education promotion plan 
 
Sankei: 
(1) SDF dispatch to Sudan: Government must review unreasonable 
principles on SDF overseas dispatch 
(2) Yamada Denki: Forcing subcontractors to provide free labor 
outrageous 
 
Tokyo Shimbun: 
(1) Rising food prices a warning signal to family budgets 
(2) Education plan one only in name 
 
Akahata: 
(1) Class-action suit seeking recognition as sufferers of A-bomb 
diseases: Government must settle matter comprehensively 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 1 
 
NIKKEI (Page 2) (Full) 
July 2, 2008 
 
09:18 
Met with Secretary General Ibuki at the party headquarters. Then 
attended executive meeting. 
 
10:01 
Cabinet meeting at the Kantei. Then met with Chief Cabinet Secretary 
Machimura and Deputy Chief Cabinet Secretary Futahashi, followed by 
Deputy Foreign Minister Kono. 
 
11:06 
 
TOKYO 00001808  003 OF 010 
 
 
Met with Policy Research Council Chairman Tanigaki and Deputy 
Chairman Sonoda, followed by Machimura and Futahashi. Then met with 
former Prime Minister Mori and Tokyo Governor Ishihara. 
 
12:53 
Met with Mori at Nagata-cho Sogo Building. 
 
13:29 
Met with outgoing and incoming Cabinet Office Vice Ministers 
Yamamoto and Uchida. 
 
14:31 
Met with State Minister for Control of Archive Kamikawa and Ozaki, 
chairman of the expert council to discuss the way to control 
archive. 
 
15:13 
Met with outgoing and incoming Jiji Press President Nakata and 
Wakabayashi. Then met with Vice Finance Minister for International 
Financial Affairs Shinohara. 
 
16:11 
Met with State Minister for Consumer Affairs Kishida. 
 
17:06 
Met with METI Commerce and Information Policy Bureau Okada. 
 
17:47 
Met with Machimura and Futahashi. 
 
18:35 
Deputy Foreign Minister Sasae. 
 
19:50 
Arrived at the official residence. 
 
4) Next U.S. president's policy toward N. Korea: Obama wants direct 
dialogue, McCain eyes cooperation with Japan, S. Korea 
 
SANKEI (Page 5) (Abridged) 
July 2, 2008 
 
WASHINGTON-North Korea has now declared its nuclear programs. 
However, it is almost impossible to settle the issue of North 
Korea's nuclear development before U.S. President Bush leaves office 
in January next year. All eyes are therefore on the North Korea 
policies of the two presumptive nominees: Republican Sen. McCain and 
Democratic Sen. Obama. Both stress the importance of verifying North 
Korea's declaration. However, Obama is attaching importance to 
direct dialogue with North Korea, while McCain is focusing on 
cooperation with Japan and South Korea. 
 
On June 26, North Korea submitted its nuclear declaration. "We will 
have to be very careful about whether they are making efforts to 
resolve Japanese and South Korean concerns," McCain told reporters 
that day. 
 
McCain released a statement that day in which he said he would 
consider South Korean and Japanese concerns. In addition, McCain 
made public his foreign policy in the December 2007 issue of Foreign 
Affairs and suggested the need to consider the issue of Japanese 
nationals abducted to North Korea, as well as the nuclear issue. As 
 
TOKYO 00001808  004 OF 010 
 
 
seen from this stance, McCain remains committed to keeping in touch 
with Japan and South Korea. 
 
Meanwhile, Obama, appearing on a Fox-TV program aired on June 26, 
said North Korea's nuclear declaration was a "positive" move, adding 
that it shows that things are attainable through direct talks even 
with an enemy. Obama has also indicated that he would make positive 
efforts for dialogue with the leaders of North Korea, Iran, and 
other anti-U.S. countries as well. He seems to believe that North 
Korea's nuclear declaration is a consequence of the Bush 
administration's policy changeover to direct dialogue. 
 
Obama also released a statement that day focusing on the nuclear 
issue. In his statement, Obama took up an incident in which a South 
Korean clergyman in Obama's home state of Illinois was abducted to 
North Korea. Concerning this incident, Obama and his congressional 
colleagues from Illinois sent a letter to the North Korean 
ambassador to the United Nations, writing that they would oppose 
delisting North Korea as a state sponsor of terrorism unless 
Pyongyang provides information about the abducted clergyman's fate. 
In his statement, however, Obama did not refer to this. 
 
5) UN secretary general urges Japan to participate in multilateral 
provision of food aid to North Korea 
 
MAINICHI (Page 2) (Full) 
July 2, 2008 
 
Visiting United Nations Secretary General Ban Ki Moon, in a lecture 
yesterday sponsored by the Japan Institute for International 
Affairs, referred to the United States having resumed the provision 
of rice to North Korea through the UN World Food Program (WFP). He 
then said: "I hope Japan will consider providing (aid) in a positive 
manner." 
 
Even after Pyongyang presented a list of its nuclear programs on 
June 26, Japan has taken a cautious stance toward resuming aid to 
the DPRK since no progress has been made on the abduction issue. UN 
Secretary General Ban stated that he would cooperate with Japan's 
efforts to resolve the abduction issue, while showing his 
understanding for Japan's position. Ban, however, requested Tokyo to 
provide aid to Pyongyang on humanitarian grounds, pointing that 
North Korea is facing a serious shortage of food due to a long 
drought. 
 
Ban left yesterday for Beijing where he will meet today with Chinese 
President Hu Jintao. 
 
6) G-8 leaders to take action to press China to refrain from 
expanding nuclear arms, to strengthen nuclear nonproliferation 
regime 
 
NIKKEI (Page 2) (Full) 
July 2, 2008 
 
The Group of Eight (G-8) leaders will take action in the upcoming 
Lake Toya Summit to strengthen the WMD nonproliferation regime with 
the aim of reducing the dangers from terrorism, as well as of 
ratcheting up international pressure on North Korea and Iran, both 
of which have nuclear programs. The leaders will also specify (in a 
joint statement) the need to promote nuclear disarmament in order to 
press China to refrain from accelerating its efforts to modernize 
 
TOKYO 00001808  005 OF 010 
 
 
its nuclear arsenal. 
 
The first aim of strengthening the nuclear nonproliferation regime 
is to prevent terrorism using nuclear, biological, and chemical 
weapons. The G-8 leaders have judged it necessary to present a new 
proposal based on the judgment that the threat of terrorism is a 
reality since the terrorist attacks on the U.S. 
 
Japan, as the chair of the Lake Toya Summit, also expects that a 
reinforced nuclear nonproliferation system will work to apply 
pressure on North Korea to abandon its nuclear program, according to 
a government source. 
 
The leaders also intend to insert in their statement "transparent 
nuclear disarmament" as one of the goals of the G-8 Summit. Among 
the G-8 members, the U.S., Britain, France, and Russia - nuclear 
weapons states - have addressed the task of reducing nuclear weapons 
since the Cold War ended. The insertion of the wording despite their 
ongoing efforts is "intended to send a strong message to China, 
which has reinforced its nuclear capability in defiance of their 
efforts," a diplomatic source involved in the Lake Toya summit 
said. 
 
7) Chinese President Hu to attend G-8 Summit 
 
MAINICHI (Page 2) (Full) 
July 2, 2008 
 
Takeji Matsuura, Beijing 
 
The Chinese Foreign Ministry announced yesterday that President Hu 
Jintao will participate in the Group of Eight Hokkaido Toyako Summit 
to be held on July 7-9. This will be President Hu's second visit to 
Japan, following one in May. He is also expected to meet with Prime 
Minister Yasuo Fukuda. 
 
8) GSDF decided from the beginning to cover up data loss 
 
MAINICHI (Page 31) (Abridged) 
July 2, 2008 
 
The Ground Self-Defense Force lost a USB memory device containing 
data on its command post exercise (CPX) with the U.S. Army. In this 
incident, GSDF brass officers at the GSDF's Middle Army 
headquarters, located in Hyogo Prefecture's Itami City, and GSDF 
Ground Staff Office leaders decided to cover up the loss of the 
data, reasoning that it would be dangerous should the loss become 
known to an adversarial force or a potential enemy. The GSDF also 
decided that the lost data was in the category of "chui" or "handle 
with care," which is less important than "boei himitsu" or "defense 
secret." With these reasons that suited its convenience, the GSDF 
decided to conceal the incident. 
 
In February 2007, a GSDF lieutenant colonel who was posted to the 
intelligence section of the GSDF Middle Army's headquarters borrowed 
the USB memory device that contained such data as a plan for a CPX 
drill codenamed "YAMA SAKURA 51." The lieutenant colonel let a 
master sergeant use the USB device. This master sergeant was one of 
the lieutenant colonel's subordinates in the intelligence section. 
The USB device went missing then. 
 
According to informed sources, the GSDF's Middle Army headquarters 
 
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at that time mulled whether to make public its loss of the device. 
Eventually, the Middle Army brass created a document listing 
contradictory reasons. One of the reasons was: "The lost data is 
only 'handle-with-care' information that is lower in importance than 
defense secrets (which must be reported to the defense minister and 
are classified into three categories as "tokubetsu boei himitsu" or 
special defense secret, "boei himitsu" or defense secret, and 
"shohi" or Defense Ministry secret)." Another reason cited in the 
document was: "It would be dangerous should the loss of the data 
become known to an adversarial force and should the lost data get 
into their hands." This documentation was supported by the then 
commanding general of the GSDF's Middle Army, Ryoichi Oriki, who is 
currently in the post of GSDF Chief of Staff, and also by the GSDF 
Ground Staff Officer leadership. As a result, the incident was not 
reported to the then defense minister, Fumio Kyuma, or to the United 
States. 
 
The term "adversarial force," normally from a military aspect, means 
an opponent or enemy that needs to be organizationally encountered. 
Today, North Korea and terrorists are in this category. In some 
cases, however, this category includes left-wing organizations, 
civic groups, and mass media as entities that may affect the 
Self-Defense Forces' morale and discipline and may consequently 
benefit the enemy. 
 
9) Recession becoming reality: Business confidence worsens, 
according to BOJ "tankan" survey; Cost-cutting efforts reaching 
limit 
 
MAINICHI (Page 9) (Excerpts) 
July 2, 2008 
 
The Bank of Japan (BOJ) on July 1 released the June Short-Term 
Economic Survey of Enterprises ("tankan" survey), reporting that the 
diffusion index (DI) of major manufacturers worsened for the third 
consecutive quarter, indicating an end to the expansion that has 
been underway since February 2002. The sharp rise in the prices of 
natural resources throughout the world has dampened business 
sentiment, putting a dent on earnings of manufacturers, which have 
served as an economic engine. The soaring prices of daily goods are 
working as a drag on consumption. The longest economic expansion in 
the postwar period is now at a major turning point. 
 
The DI of automakers, who have been playing a key role in expanding 
the economy, in the June survey plummeted 18 points from the 
previous survey in March to plus-15. Sluggish sales in the U.S. 
market and the sharp rise in the prices of raw materials are dealing 
a blow. Stagnant sales of large cars in the U.S. are a major blow to 
the industry. Toyota Motor in May decided to reduce production at 
its Indian plant. Nissan Motors and Mitsubishi Motors are also 
pressing ahead with a plan to reduce production in the U.S. 
 
10) Interview with five economists: Sagging employment, capital 
investment 
 
ASAHI (Page 10) (Abridged slightly) 
July 2, 2008 
 
The Short-Term Economic Survey of Enterprises or Tankan survey has 
found that the diffusion index (ID) of major manufacturers industry 
has deteriorated for the third consecutive quarter, plunging to the 
lowest level since 2001 after the collapse of the IT bubble economy. 
 
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With soaring crude-oil prices casting a pall over corporate 
earnings, the outlook for their current earnings for fiscal 2008 is 
a decrease of 9.9 PERCENT , down for the first time in seven 
quarters. The domestic economy, as an engine of growth, is on the 
verge of losing steam. 
 
The survey estimates an increased profit for small, medium and large 
companies in all industries for the second half of fiscal 2008. 
However, Hideo Kumano at the Dai-ichi Life Insurance Economic 
Research Institute is skeptical about an optimistic outlook, saying, 
"A scenario of predicting a recovery in the second half of the year 
may be just for the sake of balancing forecasts. Grounds for the 
calculations are unclear." 
 
Signs of deterioration have appeared on the employment front. The DI 
on employment conditions, which indicates corporate views regarding 
whether they have surplus employees or they are understaffed, marked 
a negative 5 among major manufacturers, the same level as recorded 
in Dec. 2006. 
 
The new graduate recruitment plans of all industries for fiscal 2009 
dropped 1.3 PERCENT , compared with the previous year. This is the 
first drop since 2005, when the recruitment of new graduates for the 
next fiscal year first became subject to the tally. Some industries 
are increasingly feeling that they have surplus employees, as can be 
seen in the fact that a number of second-tier companies among 
general construction contactors, who have been hit by sluggish sales 
of condominiums, are now recruiting those who wish to retire early. 
 
The total amount of salaries paid in cash in May increased only 0.2 
PERCENT , compared with the same month year earlier. A significant 
increase in summer bonuses cannot be expected. Yasuya Ueno, a chief 
market economist at Mizuho Securities, projected: "The downward 
pressure on corporate earnings will be reflected in individual 
consumption in the form of reduced bonuses. The employment situation 
will first deteriorate among small and mediums-size businesses." 
 
Capital investment is estimated to fall 1.4 PERCENT  from the 
previous year's level among small, medium and large companies in all 
industries. Though the figure has been revised upward from the 
result of a survey conducted in March, some take the view that there 
is the possibility of capital spending remaining in the negative 
territory even after the current fiscal year is over, as Ueno said. 
Hidehiko Fujii, a chief economist at the Japan Research Institute, 
views that the economy has already entered a recessionary phase. 
 
On the other hand, Tomihide Kiuchi, chief of the Economic Research 
Department at the Nomura Securities Financial and Economic Research 
Center, takes an optimistic stance: "The number of companies that 
feel they are understaffed has decreased. However, the pace of the 
decrease is moderate, compared with the pace seen in the past 
recessionary phases. If exports pick up toward the second half of 
the year, a significant correction phase would not occur." 
 
11) LDP tax panel starts discussion on tax reform, with many hurdles 
standing in way of consumption tax hike 
 
NIKKEI (Page 2) (Excerpts) 
July 2, 2008 
 
The Liberal Democratic Party's Tax System Research Commission, 
chaired by Yuji Tsushima, held a general meeting at party 
 
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headquarters yesterday and started discussions on bold tax reform in 
FY2009 earlier than usual. The panel will discuss measures to move 
the special tax revenues for highway construction and maintenance to 
the general budget, to create an environment tax, as well as to hike 
the cigarette tax and the consumption tax. Senior members of the 
panel are positive about tax hikes, but many in the ruling camp are 
calling for caution. 
 
In a press conference after the general meeting, Kaoru Yosano, 
chairman of a subcommittee, indicated that the panel will discuss 
hiking the consumption tax, remarking: "The drastic tax reform will 
involve all major taxes, including the corporate, income, 
consumption and all other taxes." Tsushima also stressed: "The 
dominant view is that it is necessary (for the government) to 
respond to the people's call for increased social security 
payments." 
 
In reference to a plan to raise the national government's share of 
basic pension benefits, which would require approximately 2.3 
trillion yen annually, Tsushima indicated a willingness to finance 
the plan with increased tax revenues by raising taxes. 
 
The environment surrounding the LDP tax panel, however, remains 
severe. Prime Minister Yasuo Fukuda said in June: "Now it is an 
important time to make a decision," but he had to say less than one 
week later: "We would like to consider the issue in two to three 
years." Fukuda told reporters yesterday: "I will make a judgment 
while taking various elements into consideration. I offered a rough 
timeframe." Hearing this remark, many LDP members have concluded 
that the tax will not be raised next fiscal year. 
 
In the LDP, former Secretary General Hidenao Nakagawa and others who 
give priority to buoying up the economy are negative about a 
consumption tax hike. They insist that the government should take 
such measures as reducing expenditures, increasing tax revenues 
through economic growth, and use the so-called "buried money" like 
surplus funds in special accounts to cover the increased social 
security payments. New Komeito President Akihiro Ota also said in a 
press conference yesterday: "Our basic stance is that we are very 
cautious (about an increase in the consumption tax)." 
 
12) Ruling camp agrees to ban dispatch of day workers in principle, 
to submit bill amending Worker Dispatch Law to extraordinary Diet 
session 
 
ASAHI (Top Play) (Excerpts) 
July 2, 2008 
 
"The Project Team on New Employment Measures" composed of members of 
the Liberal Democratic Party and the New Komeito and chaired by 
former Health, Labor and Welfare Minister Jiro Kawasaki yesterday 
finalized a package of proposals that includes a ban on dispatching 
day workers in principle. The Ministry of Health, Labor and Welfare 
(MHLW) will draw up a bill amending the Worker Dispatch Law based on 
the proposals and will submit it to the extraordinary Diet session 
in the fall. The trend of easing regulations on the temp staffing 
system had continued since the said law was enacted in 1986, but 
that trend is about to turn around. 
 
In a meeting of senior panel members yesterday, agreement was 
reached to (1) ban in principle the dispatch of day workers, 
excluding services that require high expertise, such as 
 
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interpretation; (2) obligate staffing agencies to disclose how much 
they take as margins; and (3) strengthen regulations on dispatching 
workers to specified companies. Based on these measures, the panel 
will formally adopt a ruling party plan. 
 
Regarding unstable daily employment, which is criticized as a 
breeding ground for creating working poor, if all types of job are 
banned, employment opportunities may decrease. Given this, the panel 
will ask MHLW to decide which services should be excluded from the 
ban, reflecting views at its study groups and in the business 
world. 
 
13) Fukuda holds meeting with Mori to discuss cabinet shuffle 
 
SANKEI (Page 4) (Abridged slightly) 
July 2, 2008 
 
Prime Minister Yasuo Fukuda called on former Prime Minister Yoshiro 
Mori at his Nagatacho, Tokyo, office yesterday afternoon, and the 
two exchanged views on the G-8 Lake Toya summit that will open on 
July 7. They also seem to have exchanged views on future management 
of the Fukuda administration, including a possible cabinet shuffle 
after the summit. 
 
After his meeting with Fukuda, Mori delivered a speech in Sendai 
City yesterday evening in which he said this about the next Lower 
House election: "We have a two-thirds majority (in the Lower House 
that can override the Upper House's decision). There is no need to 
dissolve the lower chamber when we are certain to lose the next 
election. Lower House dissolution can wait until September next 
year. If the LDP loses a Lower House election, it will become an 
opposition party and its administration will collapse. I served as 
secretary general of an opposition party for 11 months, and it was a 
miserable experience." 
 
Fukuda has held meetings with former prime ministers. He had a 
telephone conversation with Junichiro Koizumi on June 30. Fukuda is 
also scheduled to exchange views with Shinzo Abe on July 2. 
 
14) Daijiro Hashimoto to launch new party before next Lower House 
election in attempt to trigger political realignment 
 
SANKEI (Page 5) (Excerpts) 
July 2, 2008 
 
Former Kochi Governor Daijiro Hashimoto, 61, who is preparing to run 
in the next Lower House election in the Kochi Constituency No. 1 as 
an independent, held a press conference in Tokyo yesterday. He 
announced that he will launch a new party before the next Lower 
House election. In the event power is evenly divided between the 
ruling and opposition camps as a result of the next Lower House 
election, a Hashimoto party could have the deciding vote. Hashimoto 
apparently aims to have his party trigger political realignment. He 
stopped short of discussing any specific plans for his new party or 
candidates. 
 
Yesterday marked the third anniversary of the death of his brother, 
former Prime Minister Ryutaro Hashimoto. The former governor 
indicated that putting an end to bureaucracy-led politics would be 
his party's slogan, saying: "Two years ago, a funeral service was 
held for my brother at the Nippon Budokan Hall. There I heard my 
brother's photograph saying to me, 'You have to pick up what I 
 
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dropped.' I think he meant destroying the system of letting the 
bureaucracy decide policy." 
 
15) Ozawa winds up his nationwide tour for now 
 
SANKEI (Page 4) (Excerpts) 
July 2, 2008 
 
With a visit to Akita Prefecture, Democratic Party of Japan 
President Ichiro Ozawa wound up yesterday his nationwide political 
tour that started before last year's Upper House election. The 
purpose was to receive heavy local media attention and to strengthen 
ties with local Rengo (Japanese Trade Union Confederation) chapters, 
the party's base of election support. Ozawa, who is counting on 
there being a Lower House dissolution for a snap general election 
before the end of this year, also planned to make surprise visits to 
constituencies where close contests are expected, with the aim of 
encouraging prospective DPJ candidates. 
 
Ozawa visited 14 prefectures from Hokkaido to Okinawa in about a 
month from June 3. 
 
Ozawa in a press conference in Akita City yesterday said: "My 
nationwide tour has come to an end for now. Through this tour, I was 
able to feel keenly (the people's) strong distrust, discontent, and 
anger toward politics by the LDP and the New Komeito. I am now 
certain that we will be able to win public support." Standing 
besides Ozawa was Masashi Kudo, chairman of Rengo Akita. 
 
Two events always took place throughout Ozawa's nationwide tour. 
 
In the daytime, Ozawa always held a meeting with local Rengo 
executives to exchange views. There he would give this pep talk: "It 
is impossible for the LDP-New Komeito administration to postpone the 
next Lower House election until September 2009 when the Lower House 
lawmakers' term will expire. There is no doubt that the next general 
election will take place between this fall and early next year." 
 
The meeting was always followed by a party in the evening in which 
Ozawa, while making a toast, politely thanked Rengo executives for 
their support of the DPJ in election campaigns. 
 
SCHIEFFER