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UNCLAS SECTION 01 OF 11 TOKYO 001844 
 
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 07/07/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Bush-Fukuda summit meeting: 
3) President Bush, Prime Minister Fukuda in Hokkaido summit meeting 
agree to closely cooperate on North Korea nuclear and abduction 
issues  (Mainichi) 
4) Gist of Bush-Fukuda exchange in bilateral meeting  (Nikkei) 
5) President Bush eager to persuade Japan of U.S. sincerity on 
abduction issue, but dilemma on policy toward North Korea remains 
(Sankei) 
6) Perception gap exists between U.S., Japan over cooperation on 
North Korea policy  (Nikkei) 
7) After eight years of the Bush administration, the golden age of 
U.S.-Japan alliance may be over  (Mainichi) 
8) Time to rethink the practice of dickering over the price of the 
U.S-Japan alliance: Asahi bureau chief Yoichi Kato  (Asahi) 
9) Prime Minister Fukuda surprises President Bush with a cake on his 
62nd birthday  (Tokyo Shimbun) 
10) On Olympics controversy, Bush, Fukuda stress sports and politics 
should be kept separate  (Mainichi) 
11) Fukuda formally announces that he will attend the Olympics 
opening ceremony  (Tokyo Shimbun) 
 
Environment issue: 
12) President Bush remains reluctant to go along with Japan-promoted 
goal of reducing greenhouse gas emissions by half  (Mainichi) 
13) Japan, Russia agree to cooperate on measures to protect the 
environment threat to the Sea of Okhotsk  (Sankei) 
14) Government to provide India with 30 billion yen in ODA loans to 
introduce energy conserving machinery  (Sankei) 
 
15) Ruling and opposition camps both split into hardliners and 
softliners on dealing with North Korea issues  (Nikkei)    11 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Japan, U.S. confirm cooperation on abduction issue, remain split 
over global warming 
 
Mainichi, Yomiuri & Nikkei: 
Japan, U.S. leaders assure close cooperation on nuke, abduction 
issues 
 
Sankei: 
Fukuda, Bush both favoring nuclear issue over abductions 
 
Tokyo Shimbun: 
President Bush: "I will not abandon Japan" 
 
Akahata: 
Toyota Motor pays 190 billion yen in tax 
 
2) EDITORIALS 
 
Asahi: 
(1) Japan-U.S. relations: Twilight of Bush era 
 
TOKYO 00001844  002 OF 011 
 
 
(2) New National Theatre, Tokyo: Constructive debate on arts urged 
 
Mainichi: 
(1) G-8 Toyako Summit: Intrinsic value of Japan-U.S. alliance to be 
tested 
(2) Primary LDP presidential election extremely effective to select 
leader 
 
Yomiuri: 
(1) Japan-U.S. summit: North Korea must act on nukes, abductees 
(2) Middle East peace efforts: What should be done to make most of 
ceasefire agreement? 
 
Nikkei: 
(1) Toyako talks have eased Japan-U.S. relations, but 
(2) Banning dispatch of day workers good? 
 
Sankei: 
(1) Japan-U.S. summit: How will Japan and U.S. cooperate over 
abduction issue? 
(2) Re-restriction on taxes: Reform of tax service industry should 
be done first 
 
Tokyo Shimbun: 
(1) Fukuda-Bush talks: Abduction issue should be resolved as two 
leaders assured cooperation 
(2) Recovery of farm land: Japan must increase self-supply ratio 
 
Akahata: 
(1) Ban on dispatch of day workers: Worker Dispatch Law should be 
drastically reformed 
 
3) Japan, U.S. to closely cooperate on nuclear, abduction issues 
 
MAINICHI (Top play) (Abridged) 
July 7, 2008 
 
Prime Minister Yasuo Fukuda met with U.S. President Bush yesterday 
for about one and a half hours at the Windsor Hotel Toya in the town 
of Toyako in Hokkaido, where this year's Group of Eight (G-8) summit 
will be held. The two leaders agreed that the Japan-U.S. alliance 
has greatly deepened in the 21st century, and they also confirmed 
that Japan and the United States will further strengthen the 
alliance. Concerning North Korea's nuclear and abduction issues, 
Fukuda and Bush agreed that Japan and the United States will 
continue to cooperate closely. When it comes to global warming, they 
went no further than to clarify their stance of cooperating in an 
aim to reach an agreement at the G-8 summit. 
 
"The alliance between Japan and the United States has greatly 
deepened in the security and economic areas and also in human 
exchanges and various other areas since January 2001 (when Bush came 
into office)," Fukuda said, stressing that the bilateral alliance is 
now wide-ranging from a security standpoint. "That's welcome," Bush 
said. He also said, "The Japan-U.S. alliance is the foundation for 
the United States' diplomacy in East Asia." 
 
Touching on North Korea, Bush said the United States "will not 
forget" the abduction issue. "There is no change at all in the 
United States' position clearly supporting Japan's position 
concerning the abduction issue," he added. Fukuda noted: "The 
important thing is what to do now. We must sufficiently verify North 
 
TOKYO 00001844  003 OF 011 
 
 
Korea's declaration of its nuclear programs." The two leaders agreed 
to verify the declaration in a thoroughgoing way in order for North 
Korea to abandon its nuclear programs completely. 
 
4) Main points from Japan-U.S. summit talks 
 
NIKKEI (Page 2) (Full) 
July 7, 2008 
 
The following is a gist of the Japan-U.S. summit meeting between 
Prime Minister Yasuo Fukuda and U.S. President Bush: 
 
Japan-U.S. alliance 
 
Fukuda, Bush: The alliance between Japan and the United States is 
the foundation of peace and prosperity in the Asia-Pacific region. 
 
Fukuda: Since 2001 when President Bush came into office, the 
Japan-U.S. alliance has greatly deepened with enhanced cooperation 
in the security and economic areas. 
 
Bush: I agree. We will continue to strengthen our cooperation. 
 
North Korea 
 
Fukuda, Bush: Japan and the United States will need to sufficiently 
verify North Korea's nuclear declaration in order for North Korea to 
abandon all its nuclear weapons and nuclear programs as the ultimate 
goal. 
 
Fukuda: In the recent talks with Japan, North Korea agreed to 
reinvestigate the abduction issue. However, they have gone no 
further than follow words with more words; they should immediately 
proceed to the stage of action for action (on the abduction issue, 
as well). 
 
Bush: The United States has not changed at all its stance of clearly 
supporting Japan's position on the abduction issue. 
 
Asia 
 
Fukuda: Relations between Japan and various countries in Asia are in 
good shape. This is the fruit of cooperation between Japan and the 
United States. Japan and China have improved relations through such 
steps as reaching an agreement on the issue of gas field development 
in the East China Sea. 
 
Bush: I welcome it. 
 
Africa 
 
Fukuda: Japan wishes to promote cooperation with the United States 
on African development. 
 
Bush: We will cooperate. 
 
Global warming 
 
Fukuda, Bush: Japan and the United States agree to continue to 
cooperate in the Group of Eight (G-8) summit meeting (on July 8) and 
the major emitters meeting (MEM) (on July 9). 
 
 
TOKYO 00001844  004 OF 011 
 
 
5) U.S. President trying hard to dispel distrust of U.S. growing in 
Japan over abduction issue 
 
SANKEI (Page 7) (Full) 
July 7, 2008 
 
U.S. President Bush in a meeting with Prime Minister Yasuo Fukuda 
held after arriving in Japan yesterday reiterated his 
administration's basic policy of never allowing the issue of North 
Korea's past abductions of Japanese citizens to be forgotten. Bush 
focused attention on the issue in the meeting in an effort to 
mitigate growing distrust of the U.S. within Japan for its decision 
to delist Pyongyang as a state sponsor of terrorism. In a joint 
press conference, although the President spoke from the heart 
repeatedly about the emphasis his administration placed on Japan, he 
is eager to pave the way for resolving the North Korea nuclear 
problem as a crowning diplomatic achievement. With only less than 
200 days left until the President leaves office, the question is 
which issue will the Bush administration give priority to. 
 
"The U.S. stance of supporting Japan's position remains unchanged." 
President Bush has repeated this remark since he notified Congress 
late last month of his decision to delist the North, keeping in mind 
Japan and the Congress, where distrust of North Korea runs deep. 
 
Prior to the Japan-U.S. summit, National Security Council Asian 
Director Dennis Wilder, who is accompanying the President on his 
visit to Japan, told U.S. reporters: "The Japanese people have an 
extremely distinct feeling about positive progress (on the abduction 
issue)." He added: "The Japanese prime minister is also hopeful of 
hearing the President's words promising (to help resolve the 
abduction issue)." 
 
Wilder's statement indicates the U.S. government's bewilderment at 
the fact that Japanese public's reactions to the U.S. delisting 
decision are fiercer than it had anticipated. 
 
President Bush has had strong confidence in his relationships with 
Britain and Japan. Wilder pointed out: "Japan-U.S. relations under 
the Bush administration entered a golden age." But Bush still cites 
only former Prime Minister Junichiro Koizumi as a friend who helped 
create that golden age. The President had not anticipated that he 
had to use such caution in making remarks intended for Japan. 
 
It is also true that Washington's removal of obstacles in succession 
in promoting relations with North Korea, starting with lifting 
financial sanctions, apparently represents the Bush administration's 
policy being at an impasse. But its anxiety to produce positive 
results on issues with North Korea could lead to undermining the 
foundation of the Japan-U.S. alliance. If his commitment to help 
Japan resolve the abduction issue proved to be just lip service, the 
next U.S. president may be pressed with the task of repairing 
relations with Japan. 
 
6) President Bush puts high priority on North Korea's 
denuclearization, while Prime Minister Fukuda stresses need to 
resolve abduction issue at same time; Gap in motives for cooperation 
over North Korean evident 
 
NIKKEI (Page 2) (Excerpts) 
July 7 2008 
 
 
TOKYO 00001844  005 OF 011 
 
 
Prime Minister Yasuo Fukuda and President George W. Bush confirmed 
in their meeting yesterday a policy course to aim at settling the 
issue of denuclearizing North Korea in tandem with the question of 
Japanese nationals abducted by the North. In the joint press 
conference that followed the bilateral meeting, President Bush first 
touched upon the abduction issue out of concern over growing 
anti-U.S. sentiment in Japan in reaction to the President's 
notification to Congress of his decision to delist North Korea as a 
state sponsor of terrorism. At the same time, the President 
indicated that he would push the nuclear issue forward based on the 
principle of action for action. A gulf with Japan, which puts top 
priority on the abduction issue, is clear. 
 
Referring to his meeting (in 2006) with Sakie Yokota, the mother of 
abductee Megumi Yokota, President Bush said: "As a father of little 
girls, I can't imagine what it would be like to have my daughter 
just disappear." President Bush, a father of two daughters, also 
repeatedly indicated that the United States will not ignore the 
abandon issue or abandon Japan. 
 
At the same time, the President announced that the North's 
declaration of its nuclear programs and actions and the detonation 
of a cooling tower have been "verified," describing them as "a 
positive step." In connection with Washington's decision of take the 
North off its list of terrorist blacklist, President Bush also said: 
"North Korea is the most sanctioned nation in the world," adding, 
"We have other concerns, and one such concern, of course, is the 
abduction issue." There is visibly a difference in views between the 
United States and Japan, which puts high priority on the abduction 
issue. 
 
Meanwhile, touching on progress on the nuclear issue, Prime Minister 
Fukuda showed a degree of understanding toward America's policy, 
saying, "As far as the nuclear issue is concerned, we have moved on 
to a new phase," adding, "I think we need to make sure this will be 
successful. At the same time, in parallel, we need to bring the 
abduction issue to successful conclusion, as well." 
 
On the diplomatic front, President Bush, who will leave office in 
six months, cannot expect substantial results on any challenges 
other than the North Korean issue. In line with an agreement to 
handle the North's highly enriched uranium (HEU) program separately, 
Pyongyang's declaration did not include information on nuclear 
weapons that directly affect the security of Japan. The Bush 
administration still hailed Pyongyang's declaration as a "positive 
step" based on the principle of action for action, though with a 
tinge of wariness. 
 
The six-party talks are now approaching the end of the second phase 
consisting of disabling the North's nuclear facilities and the 
declaration of its nuclear programs. The focus is on whether Japan 
will join the program to provide 950,000 tons of heavy oil to the 
North. In the third phase, full-fledged energy aid to the North in 
return for dismantling nuclear facilities and abolishing nuclear 
weapons will be a subject of discussion. The gulf between the United 
States and Japan is likely to expand in this phase. 
 
A high-ranking U.S. official recently underlined the need to move 
the stalled plan to realign U.S. force in Japan forward. President 
Bush, too, called for Japan's cooperation in Iraq and Afghanistan, 
as well as on Iran's nuclear program. Security issues cover 
wide-ranging areas, including multilateral cooperation. If the 
 
TOKYO 00001844  006 OF 011 
 
 
fissure between Washington and Tokyo deepens over the North Korean 
nuclear and the abduction issues, it might have a negative impact on 
the overall Japan-U.S. alliance. 
 
7) "Golden age" of Japan-U.S. relations under Bush administration 
over 
 
MAINICHI (Page 3) (Full) 
July 7, 2008 
 
After his meeting with Prime Minister Yasuo Fukuda, U.S. President 
George W. Bush yesterday expressed his appreciation for Japan's 
contributions to Iraq and Afghanistan. Prior to the Japan-U.S. 
summit yesterday, National Security Council (NSC) Senior Director 
for Asian Affairs Dennis Wilder told the press in a strong tone: 
"The Bush administration has built a golden age of the U.S.-Japan 
alliance." 
 
The more the significance of the Japan-U.S. alliance was 
underscored, the more the sense of exhilaration of the golden age 
was dampened. 
 
The terrorist attacks on the United States on Sept. 11, 2001, 
greatly changed the course of U.S. foreign policy. Then Prime 
Minister Junichiro Koizumi immediately supported the U.S.-led war on 
terrorism. Along with Britain, Koizumi even supported the Bush 
administration's unilateral attack on Iraq in March 2003. Bush 
called Koizumi "his best friend." The Japan-U.S. golden era was 
strongly backed by the good relationship between Bush and Koizumi. 
 
Fukuda said yesterday that the cooperative relations between Japan 
and the United States have taken shape further and stabilized and 
that various types of cooperation have been carried out. To that 
end, the Japanese government has enacted security-related laws one 
after another. Japan dispatched its Self-Defense Forces (SDF) to a 
battlefield for the first time in the postwar period. 
 
The meaning of the alliance has changed to the "Japan-U.S. alliance 
in the world." 
 
Pro-U.S. governments have been inaugurated in Germany and France, 
which opposed the United States when the Bush administration started 
the Iraq war, but the Koizumi government and the British government 
of Prime Minister Tony Blair have gone. Since Washington has now 
taken a policy of placing emphasis on international cooperation, the 
presence of Japan and Britain has generally weakened. 
 
Late last year, President Bush instructed Secretary of State 
Condoleezza Rice to produce some diplomatic achievements on North 
Korea. The President must be caught now between his desire for a 
historical legacy and his effort to place importance on the 
Japan-U.S. alliance. 
 
8) The Bush administration and Japan: Time to rethink the practice 
of dickering over the price of the alliance; After 9/11, U.S. lost 
its room for maneuvering on security issues (Asahi) 
 
ASAHI (Page 9) (Full) 
July 4, 2008 
 
By American Bureau Chief Yoichi Kato 
 
 
TOKYO 00001844  007 OF 011 
 
 
President Bush's roundtable with the Japanese press on July 2 was 
probably the last such press conference he will do in office. That 
is because until next January, when he leaves the Oval Office, there 
are no plans for him to revisit Japan. Although it is still early, 
one can say that the Japan-U.S. alliance has reached a turning point 
with the ending of the Bush administration. 
 
Mr. Bush summed it up: "While I have been in office, the U.S.-Japan 
bilateral relationship has become extremely good." He used the word 
"cornerstone" three times, in the sense that the U.S.' alliance 
relationship with Japan has been most important to America's Asia 
diplomacy. He even affirmed: "We no longer have to negotiate base 
issues. That is because our bilateral relationship has made it 
possible to manage such issues." 
 
However, the seven-year period since the 9/11 terrorist attacks on 
the U.S. can be said to have been a severe time for Japan, in that 
the meaning of having an alliance with the United States has been 
put to the test. After 9/11, the U.S. lost any room for maneuvering 
in its alliance relationships, having turned its eyes away from 
anything except its own national security. 
 
After 9/11, when the government was presenting anti-terrorist 
special measures legislation to the Diet to make it possible (for 
the Self-Defense Forces) to carry out operations on the high seas in 
the Indian Ocean, a government official told a certain Diet member, 
"It is vital to Japan that the U.S. come to our aid should something 
happen on the Korean Peninsula." For Japan to have misgivings at the 
time about the U.S. possibly abandoning it on North Korea issues is 
indeed ironic. However, what seems to be the basis for such fear was 
the perceived limits of the alliance-management policy, namely, the 
practice of looking at the haggling or dickering over the price of 
the alliance while watching the reactions of the American side. 
 
It would be fine if the U.S. had the leeway to carefully watch out 
for Japanese interests, but after 9/11, everything changed. Instead, 
allies of the U.S. were faced with a difficult choice, undergoing a 
test of loyalty in which the U.S., no longer able to be content with 
the current state of old allies, evaluated them on whether they 
would join a new "coalition of the willing." 
 
As a result, when North Korea successfully carried out a nuclear 
test, it led to a diminution of the feeling that Japan was safe from 
nuclear attack, which had been the foundation of Japan's security. 
 
 
The Washington Post reported on July 2 that the number of U.S. 
soldiers killed in Afghanistan in June was the highest there ever. 
Just when public security in Iraq has been recovering to a certain 
degree, the focal point of the U.S.' war on terror has shifted to 
Afghanistan. For Japan, this brings up the issue of whether to 
extend the Indian Ocean refueling law that expires next January. 
 
Why is it necessary to assist Afghanistan? In answering my question, 
the President replied: "It is because Al Qaeda is using (that 
country) as a safe haven from which it could even attack Japan." 
Expectations of Japan are high in the Obama camp, as well. It is 
doubtful that Japan really shares the threat consciousness that 
accompanies going beyond the risk until now of assisting the U.S. 
 
On global warming, the top item on the agenda of the Toyako Summit 
in Hokkaido, the President took a stance of avoiding a simple 
 
TOKYO 00001844  008 OF 011 
 
 
compromise on setting a target for reducing greenhouse gas 
emissions, which the Fukuda administration is aiming to achieve. 
 
The practice until now of niggling over the price of the alliance is 
a method by Japan that no longer passes U.S. muster. From now on, 
Japan, while carefully keeping an eye on its own national interests, 
must clearly be seen as doing what it must do in running its 
diplomacy. The seven and a half years of the Bush administration 
have taught Japan that reality. 
 
9) Bush celebrates 62nd birthday with ballpark-shaped cake from 
Fukuda 
 
TOKYO SHIMBUN (Page 3) (Full) 
July 7, 2008 
 
Prime Minister Yasuo Fukuda threw a dinner party last night for U.S. 
President George W. Bush who turned 62 yesterday. The event was 
highlighted by a birthday cake for Bush from Fukuda that was in the 
shape of the ballpark of the Texas Rangers, a Major League Baseball 
team Bush co-owned. 
 
Bush said in appreciation: "When I was young, I thought 62 was old. 
I'm 62 now, and I don't feel that way at all. I am looking forward 
to riding a mountain bike during my stay in Japan." 
 
10) Fukuda, Bush to attend Beijing Olympics' opening ceremony; 
"Sports and politics are two separate matters," two leaders say 
 
MAINICHI (Page 3) (Full) 
July 7, 2008 
 
In a joint press conference yesterday, Prime Minister Yasuo Fukuda 
and U.S. President George W. Bush expressed the significance of 
attending the opening ceremony of the Beijing Olympic Games on 
August 8. The two leaders appear to have given consideration to 
China, which has come under criticism for cracking down on the riots 
in Tibet. 
 
Emphasizing that the Olympics are sports events, President Bush 
stated: "If we did not attend the opening ceremony, such would mean 
to insult the Chinese people. If not taking part, it would be 
difficult for us to hold frank discussions with Chinese leaders." 
 
The President indicated that he would urge Chinese President Hu 
Jintao in a meeting on July 9 to improve human rights and freedom of 
religion. Fukuda revealed for the first time his intention to attend 
the opening ceremony of the Beijing Olympics. He then said: "I would 
like to attend the opening ceremony with the hope that our 
neighboring country will become a healthy, bright country." 
 
11) Fukuda officially announces his decision to attend Beijing 
Olympics opening ceremony 
 
TOKYO SHIMBUN (Page 3) (Abridged) 
July 7, 2008 
 
Prime Minister Yasuo Fukuda officially announced in a joint press 
conference after the Japan-U.S. summit yesterday that he will attend 
the August 5 opening ceremony of the Beijing Olympics. As the reason 
of his decision to addend the event, the prime minister said: "The 
Olympics is a sporting event, and we want people to really live up 
 
TOKYO 00001844  009 OF 011 
 
 
to the spirit of the sports, sportsmanship. And I certainly 
encourage that." 
 
12) U.S. cautious about long-term goal of halving greenhouse gas 
emissions by 2050 
 
MAINICHI (Page 2) (Full) 
July 7, 2008 
 
U.S. President Bush remained cautious in a press conference held 
after a meeting with Prime Minister Fukuda yesterday about the goal 
of halving global greenhouse gas emissions by 2050. This long-term 
goal will be a key theme of discussions on global warming at the 
Lake Toya Summit in Hokkaido. Fukuda said: "We will continue to work 
together at the Group of Eight (G-8) Summit." But the two leaders 
stopped short of any specific reference to the goal. The G-8 leaders 
are expected to endeavor to coordinate views on the long-term goal 
until the last minute of the summit. 
 
Bush emphasized: "I am a pragmatist. It will be impossible to 
resolve the problem unless China and India share our view," 
indicating his unwillingness to agree (on the long-term goal) at the 
G-8 Summit if China and India, whose greenhouse gas emissions are 
sharply increasing recently, do not agree on it. 
 
Japan, which chairs the G-8 Summit this year, is aiming at bringing 
about agreements on common goals among the G-8 nations and other 
matters in an effort to gain more results than at the G-8 Summit in 
Germany last year, in which the joint statement used this abstract 
expression: "The goal of halving gas emissions will be studied in a 
serious manner." Bush's remark yesterday in one sense indicates his 
disapproval of such an expectation by Japan. 
 
Meanwhile, Bush stated that the U.S. is also studying the 
possibility of issuing a constructive statement. This remark can be 
taken as indicating the President's eagerness to produce some 
results at the major economies' meeting (MEM) to be held under the 
lead of the U.S. on the last day of the G-8 Summit. The U.S. stance 
will inevitably incur criticism from European countries. 
 
A Foreign Ministry official said: "Various views were presented, but 
we would like to refrain from giving an explanation since 
negotiations on the contents of a joint document are now underway." 
 
13) Japan, Russia to agree to cooperate in protecting environment in 
Okhotsk Sea 
 
SANKEI (Page 3) (Full) 
July 7, 2008 
 
The leaders of Japan and Russia will agree in a bilateral meeting 
tomorrow to cooperate in protecting the environment in the Sea of 
Okhotsk, according to informed sources yesterday. Japan and Russia 
remain unable to resolve the pending Northern Territories issue, but 
they aim to build a cooperative relationship by jointly protecting 
the environment in the waters near the territories. 
 
The two governments have decided to cooperate in working out 
measures to protect the environment, including the protection of the 
ecosystem, in the waters between the two countries. China has 
contaminated the waters around Japan as a result of its rapid 
economic growth. 
 
TOKYO 00001844  010 OF 011 
 
 
 
Observers expect that Japan and Russia will agree to examine the 
state of marine pollution and then to work out measures to protect 
the ecosystem. Strengthened measures by Japan and Russia to protect 
the environment in the waters near the two countries will lead to 
the security of marine resources such fishes and crabs. As a Chinese 
diplomatic source called Russia as "a great power from China's 
perspective," strengthened ties between Russia and Japan will work 
to apply political pressure to China. 
 
Climate and environment issues are high on the agenda at the Lake 
Toya Summit in Hokkaido. The government, while also placing emphasis 
on bilateral approaches, intends to make use of the Summit as an 
opportunity to "give specificity to what it should do with its 
neighbors," a government source said. By expanding cooperative ties 
with Russia in the environment sector, Japan aims to build a 
relationship of trust with that nation, with an eye on a settlement 
of the Northern Territories issue. 
 
14) Government to provide India with yen loans of 30 billion yen as 
assistance to introduce energy-conserving machinery 
 
SANKEI (Page 2) (Excerpt) 
July 6, 2008 
 
It was learned yesterday that the government has firmed up its 
intention to provide India with yen loans worth 30 billion yen to 
assist that country in introducing energy-conserving machinery. The 
aim is to pressure India to adopt measures to counter global 
warming. At the Hokkaido Toyako Summit that opens on July 7, the 
focus will be on debating a post-Kyoto Protocol international 
framework for the period beyond 2013 aimed at reducing 
greenhouse-gas emissions. In that context, by strengthening 
energy-conservation assistance to India, a major gas emitter, Japan 
will urge that country to reduce greenhouse gas emissions. 
 
15) North Korea Policy: Sense of frustration in both hard-line and 
dialogue favoring groups 
 
NIKKEI (Page 2) (Full) 
July 7, 2008 
 
A series of statements yesterday coming out of the ruling and 
opposition camps on the issue of Japanese abducted by North Korean 
agents revealed that there still is a lot of skepticism among 
lawmakers about the Bush administration's stance of cooperating on 
the abduction issue. A sense of impasse has emerged in both those 
favoring a hard-line approach toward Pyongyang and others who place 
priority on a dialogue with that country. 
 
Liberal Democratic Party (LDP) Committee on Abduction Issue Chairman 
Shoichi Nakagawa made this comment on yesterday's Japan-U.S. summit: 
"I felt a sense of aloofness (about the abduction issue). I don't 
expect much to happen at the Summit." In a national gathering on the 
abduction issue held in Matsuyama City, Takeo Hiranuma, chairman of 
the Parliamentary League for Early Repatriation of Japanese Citizens 
Kidnapped by North Korea, stressed: "There should be economic 
sanctions rather than a dialogue." Now rudderless since the U.S. 
decided to delist North Korea as a country sponsoring terrorism, 
many hard-liners find their level of frustration to be growing. 
 
On the other hand, Tetsundo Iwakuni, vice chairman of the 
 
TOKYO 00001844  011 OF 011 
 
 
Parliamentary Group to Promote Normalization of Diplomatic Ties 
between Japan and North Korea, stated: "We should consider lifting 
sanctions only on humanitarian exchanges." Democratic Party of Japan 
(DPJ) Secretary General Yukio Hatoyama criticized the Japan-U.S. 
summit, saying: "The two leaders did not underscore the abductions. 
They held a perfunctory discussion." 
 
SCHIEFFER