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Viewing cable 08TOKYO1859, DAILY SUMMARY OF JAPANESE PRESS 07/07/08

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Reference ID Created Released Classification Origin
08TOKYO1859 2008-07-07 08:11 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO0707
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1859/01 1890811
ZNR UUUUU ZZH
P 070811Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5643
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 1115
RUEHFK/AMCONSUL FUKUOKA 8739
RUEHOK/AMCONSUL OSAKA KOBE 2469
RUEHNAG/AMCONSUL NAGOYA 6965
RUEHKSO/AMCONSUL SAPPORO 9324
RUEHBJ/AMEMBASSY BEIJING 4253
RUEHUL/AMEMBASSY SEOUL 0243
RUCNDT/USMISSION USUN NEW YORK 0655
UNCLAS SECTION 01 OF 10 TOKYO 001859 
 
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 07/07/08 
 
INDEX: 
 
(1) Fukuda, Bush defend each other over abduction, nuclear issues 
(Tokyo Shimbun) 
 
(2) Japanese, U.S. leaders agree on need for trade liberalization to 
prevent soaring food prices (Yomiuri) 
 
(3) Editorial: Japan-U.S. relations -- Twilight of Bush era (Asahi) 
 
 
(4) Editorial: Japan-U.S. summit -- How will two countries cooperate 
on abduction issue? (Sankei) 
 
(5) Editorial: Fukuda-Bush Lake Toya summit meeting eased Japan-U.S. 
relations, but... (Nikkei) 
 
(6) Editorial: Real value of Japan-U.S. alliance to be tested at 
Lake Toya Summit (Mainichi) 
 
(7) DPJ to submit to extra Diet session bills banning amakudari 
(golden parachute) practice and reforming the road-related tax 
revenues system (Nikkei) 
 
(8) DPJ Secretary General Hatoyama: if DPJ defeated in Lower House 
election, I and Ozawa will retire from politics (Mainichi) 
 
(9) Prime Minister's schedule, July 5 (Nikkei) 
 
ARTICLES: 
 
(1) Fukuda, Bush defend each other over abduction, nuclear issues 
 
TOKYO SHIMBUN (Page 3) (Full) 
July 7, 2008 
 
Yuji Nishikawa, Political Section 
Yasuyuki Oguri, America Bureau 
 
Yesterday's meeting between Prime Minister Yasuo Fukuda and U.S. 
President Bush was the first Japan-U.S. summit since the United 
States decided to delist North Korea as a state sponsor of 
terrorism. This year's Group of Eight (G-8) summit at Lake Toya in 
Hokkaido is Bush's last and Fukuda's first. However, Fukuda is the 
host. In their meeting, the two leaders-both alike declining in 
public support although they are in different political 
situations-defended each other over the issue of Japanese nationals 
abducted to North Korea, apparently in an attempt to avoid causing a 
fissure in the Japan-U.S. alliance. 
 
"I'm well aware that the abduction issue is a delicate issue," Bush 
said in a press conference following the Japan-U.S. summit. "So," 
Bush went on, "I called Prime Minister Fukuda to tell him that the 
United States will not forsake Japan on this issue." With this, Bush 
directly sought understanding in his message to the Japanese public, 
which has opposed his decision to delist North Korea. 
 
Fukuda said he was "encouraged" by Bush's remark. In the summit, 
Fukuda handed the English version of a book to President Bush about 
Megumi Yokota, one of the abductees. The book was written by her 
mother, Sakie Yokota, and titled Megumi, O-kaasan ga kitto tasukete 
ageru (North Korea Kidnapped My Daughter). Fukuda and Bush showed 
 
TOKYO 00001859  002 OF 010 
 
 
that they will not forget the abduction issue. 
 
In the summit, Fukuda and Bush seemed to give each other a helping 
hand. The United States has decided to remove North Korea from its 
terrorism blacklist. This decision dealt a serious blow to Fukuda 
and his government, for it could cause Japan to lose leverage for a 
solution to the abduction issue. The Fukuda government was under 
fire for leaving the abduction issue behind. 
 
Meanwhile, Bush is likewise being called into question in Congress 
for his decision to delist North Korea in spite of its insufficient 
declaration that does not include nuclear weapons. 
 
In the press conference, Bush stated that he also has daughters and 
he therefore knows well how serious it would be if one were to 
disappear. Time and again, Bush stressed that he understands how the 
Japanese people feel. 
 
Fukuda noted: "We must not produce a situation where there is no 
progress on the nuclear issue because there is no progress on the 
abduction issue. We should resolve both issues together." So saying, 
Fukuda gave consideration to President Bush, indicating that he 
would not focus solely on the abduction issue. 
 
Fukuda showed such a stance for he feared that a fissure between 
Japan and the United States would only help North Korea. Fukuda 
therefore did not ask Bush to reconsider delisting North Korea. He 
showed a stance of seeking public understanding with Bush. 
 
Meanwhile, President Bush's low profile has something to do with his 
intention to make achievements. President Bush, who has had few 
diplomatic accomplishments, is now being noted mainly for what he 
did with former Prime Minister Junichiro Koizumi to strengthen the 
Japan-U.S. alliance. He needs to see progress on the abduction 
issue. For that, however, he does not want to hurt his achievements 
during his remaining six months in office. He played up the 
Japan-U.S. alliance. 
 
In addition, the security situation in Afghanistan has also 
deteriorated. The Maritime Self-Defense Force is currently deployed 
to the Indian Ocean, where it is tasked with a refueling mission 
under the Antiterrorism Special Measures Law. This law is slated to 
expire next year. However, the United States is considering ramping 
up its antiterror operations in Afghanistan. "Depending on the 
circumstances," a source familiar with Japan-U.S. relations noted, 
"Japan may be asked to make a further contribution." There is also 
such a hidden calculation behind Bush's attitude toward Fukuda. 
 
(2) Japanese, U.S. leaders agree on need for trade liberalization to 
prevent soaring food prices 
 
YOMIURI (Page 7) (Full) 
July 7, 2008 
 
U.S. President Bush and Prime Minister Fukuda in their meeting 
yesterday agreed on the view that it is necessary to further 
liberalize trade by lowering tariffs and other means as measures to 
prevent natural resource and food prices from soaring any further. 
The agreement is expected to prompt the now deadlocked new round of 
global trade talks (Doha Round) under the World Trade Organization 
(WTO) to move forward. Meanwhile, Bush acknowledged the U.S. economy 
is slowing down, leaving an uncertainty over Japan's future economic 
 
TOKYO 00001859  003 OF 010 
 
 
prospects, which largely depend on developments in the U.S. 
economy. 
 
Eager for success of WTO Doha Round 
 
In a press conference after meeting with Bush, Fukuda said: "Recent 
sharp price hikes of primary products such as oil and food have 
seriously affected the global economy. We agreed on the view that 
prompt countermeasures are necessary." 
 
Bush said that the two leaders shared the need for mid- to long-term 
measures. He then said: "Establishing a free trade system is 
necessary as an effective measure to help poor countries," 
indicating his determination to work hard to make the Doha Round a 
success. 
 
U.S. Trade Representative Schwab, the U.S. representative in the 
Doha Round, was also present at the Japan-U.S. summit. This fact 
represents the U.S. government's eagerness to make the New Round a 
success. 
 
The WTO is aiming to conclude the Doha Round by the end of this 
year. To do so, the unofficial ministerial meeting to be held in 
Geneva in late July will be the last chance. Some involved in the 
negotiations are guessing that President Bush has begun to get down 
to brass tacks in a bid to leave positive results on the economic 
and diplomatic fronts before leaving office next January. 
 
Recent skyrocketing food prices have contributed to increasing some 
farmers' incomes in the U.S., as an exporter of farm products. Given 
this, the U.S. government appears to be judging that a promotion of 
discussion on a reduction in state subsidies to farmers in an effort 
to bring about a settlement to the Doha Round will incur less 
opposition from farmers. 
 
It is expected that if countries reduce tariffs on agricultural and 
other products following a settlement at the Doha Round, import 
prices will drop and global inflation will be contained. 
 
The issue of U.S. beef imports took center stage in past Japan-U.S. 
trade talks, but in the meeting yesterday, the two leaders touched 
on the issue only briefly. 
 
South Korean consumers have strongly reacted to the resumption of 
U.S. beef imports. Given this, the U.S. finds "it difficult to 
strongly urge Japan to ease its import conditions," a U.S. 
government source confided. 
 
"Strong dollar" emphasized 
 
President Bush frankly admitted in a joint press conference that the 
"U.S. economy has not grown as strongly as expected." He added: "If 
the U.S. economy perks up, the value of the dollar will be affected. 
I believe in the effectiveness of our strong dollar policy." Bush 
thus expressed his hopes that the measures his administration has 
taken to stimulate the economy, such as tax cuts, will work 
effectively and tried to hold in check moves to sell dollars in 
international exchange markets. 
 
Regarding the U.S. economy, there is an increasing possibility that 
a period of inflation combined with stagnation - so-called 
stagflation - may set in. Many are concerned about a vicious circle 
 
TOKYO 00001859  004 OF 010 
 
 
in which a further decline in the dollar makes oil prices higher and 
eventually further slows down the economy. 
 
The U.S. Federal Reserve Bank (FRB) now has few options for monetary 
policy. Banking authorities in Europe are moving to raise interest 
rates to stem inflation. As it stands, the difference in interest 
rates is expanding between the U.S. and Europe. The expanded 
difference could weaken the dollar further. 
 
Many see the measures being taken by the U.S. government as 
insufficient to buoy up the economy, so it is uncertain whether the 
U.S. will be able to jack up the value of the dollar. 
 
In the press conference yesterday, Fukuda emphasized that the 
Japanese and U.S. economies are becoming ever more interdependent. 
Ironically, his remark indicates that if the U.S. economic recovery 
slows, the Japanese economy may also be forced to slow down, too. 
 
(3) Editorial: Japan-U.S. relations -- Twilight of Bush era 
 
ASAHI (Page 3) (Full) 
July 7, 2008 
 
"The United States will not leave the abduction issue behind," said 
U.S. President George W. Bush in a joint press conference held 
yesterday after his meeting with Prime Minister Yasuo Fukuda. Bush 
took up the abduction issue first. 
 
The Japan-U.S. summit was held on the day before the opening of the 
Group of Eight Hokkaido Toyako Summit. Bush may have thought that he 
should speak about the abduction issue first because he seems to 
have felt that the Japanese public was concerned about U.S. policy 
toward North Korea. 
 
In stark contrast, Fukuda praised the state of bilateral relations 
during the seven and a half years of the Bush administration, 
saying, "The Japan-U.S. alliance has dramatically improved." He 
might have been giving consideration to this being the last visit to 
Japan by President Bush, who will leave office early next year. 
 
Even though bilateral relations have deepened, Bush was moved to 
say, "The United States will not abandon Japan," referring to the 
North Korean nuclear and abduction issues. In the joint press 
conference, Fukuda stated: "I'm encouraged" by the President's 
remarks. The U.S. government must intensely tackle the abduction and 
nuclear issues, aiming to resolve them. 
 
Yet, the past seven and a half years of Japan-U.S. relations appear 
to have been led around by the U.S.' foreign policy. 
 
The government of Prime Minister Junichiro Koizumi supported the 
"war on terror" launched by President Bush after the 9/11 terrorist 
attacks on the United States. Koizumi backed the Iraq war, which had 
created discord between major European countries and the United 
States. With domestic public opinion split, Koizumi dispatched 
Self-Defense Forces (SDF) personnel to a combat zone in Iraq. 
 
The main reason for the SDF dispatch was the North Korean issue. 
 
Prime Minister Koizumi might have thought that if Japan cooperated 
with U.S. efforts on the Iraq war, which was internationally 
unpopular, Japan would be sure to get support from the United States 
 
TOKYO 00001859  005 OF 010 
 
 
on the North Korean front on issues that greatly affect Japan's 
security. 
 
However, the crisis of North Korea's nuclear threat to Japan has 
increased due to Pyongyang's test-firing of ballistic missiles and 
defiantly carrying out of a nuclear weapons test. No progress has 
been made on the abduction issue. It is not the first time for Tokyo 
to rely on Washington for its diplomacy. It is good for Japan to 
depend on the United States, as long as the United States values 
international cooperation and is cautious about the use of arms. 
However, if the United States acts unilaterally, it becomes 
difficult for Japan to line up with it. 
 
International politics will likely be increasingly complicated. In 
addition to China's recent rapid economic growth, India has 
accelerated its economic growth and Russia has boosted its presence 
again. Whether Asia will continue to run along the path of stability 
and prosperity in the 21st century is unclear. Fukuda appears to be 
changing Koizumi's policy of solely tilting toward the U.S. by 
putting relations with China back on a recovery track. His stock 
argument of "resonance," meaning that good relations between Japan 
and the U.S. have a positive effect on Japan's Asia policy, is still 
untested. 
 
Japan-U.S. relations will continue be the linchpin of Japanese 
diplomacy, but Japan and the United States alone cannot resolve all 
issues. Leaning that there are limits is a lesson from the past 
seven and a half years. 
 
(4) Editorial: Japan-U.S. summit -- How will two countries cooperate 
on abduction issue? 
 
SANKEI (Page 2) (Full) 
July 7, 2008 
 
The Japan-U.S. summit (held on July 6) between Prime Minister Yasuo 
Fukuda and President George W. Bush agreed that the verification of 
the declaration of nuclear programs and activities by Pyongyang was 
vital for complete nuclear abandonment by North Korea. They also 
confirmed close bilateral cooperation for resolving the abduction 
issue. 
 
The North's nuclear programs are especially important for Japan. The 
North's nuclear declaration on June 26 is a far cry from complete 
and correct, for it does not include information on its nuclear 
weapons. Needless to say, the declaration must be verified 
thoroughly. 
 
Although President Bush referred to Pyongyang's uranium enrichment 
program and nuclear proliferation, Washington will delist the North 
as a state sponsor of terrorism on August 11, as it has informed 
Congress of its step. Questions remain on the extent to which the 
declaration will be examined. We would like to see the relevant 
countries make all-out efforts to verify the declaration. 
 
In a joint press conference after the bilateral summit, President 
Bush said: "The United States will not abandon Japan. The United 
States' intention to support Japan's position on the abduction issue 
remains unchanged." 
 
It is important to demonstrate the stance that Japan and the United 
States will continue working closely in addressing the abduction 
 
TOKYO 00001859  006 OF 010 
 
 
issue. We welcome President Bush's statement. Nevertheless, the 
President probably made such a statement in consideration of Japan's 
strong concerns that the abduction issue is an ongoing act of 
terrorism and that the United States might abandon Japan. 
 
Prime Minister Fukuda said, "I was encouraged to hear the U.S. 
position from President Bush." Did Prime Minister Fukuda convey to 
President Bush Japan's apprehensions about Washington's decision to 
take the North off its terrorist blacklist while leaving the 
abduction issue behind? We wanted to see the two leaders spell out 
how Japan and the United States will work together to resolve the 
abduction issue. 
 
Although Fukuda and Bush played up efforts to enhance the Japan-U.S. 
alliance, some signs of weakening in the alliance worry us. 
 
One is that the United States seems to be prioritizing multilateral 
talks over the alliance with Japan. President Bush referred to 
applying pressure to the North through the six-party framework, 
though China and Russia are less committed to the abduction issue. 
 
Another is that Japan's efforts to reinforce the alliance with the 
United States have been insufficient. Japan for instance will not 
intercept a U.S.-bound ballistic missile in line with its principle 
of not exercising the right to collective self-defense. Such a 
country is not regarded as a dependable ally. 
 
There are a plethora of tasks the two countries must joint efforts, 
such as global warming and soaring oil prices. Top priority must be 
given to cementing the alliance. 
 
(5) Editorial: Fukuda-Bush Lake Toya summit meeting eased Japan-U.S. 
relations, but... 
 
NIKKEI (Page 2) (Full) 
July 7, 2008 
 
What is the season that can be best likened to Japan-U.S. relations 
after the U.S. government informed Congress of its decision to 
delist North Korea as a state sponsor of terrorism? It is certainly 
not balmy spring. Prime Minister Yasuo Fukuda and President George 
ΒΆW. Bush, however, endeavored to generate a spring-like mood at their 
summit meeting held at Late Toya (on July 6). 
 
After their talks, the two leaders, holding their first joint press 
conference, stressed cooperation on such issues as the 
denuclearization of North Korea, the abductions by North Korea, the 
global economy, measures to combat global warming, and aid to 
Africa. Prime Minister Fukuda said, "The verification of North 
Korea's nuclear declaration is extremely important in order to bring 
about the complete denuclearization of that country." President Bush 
stated, "The United States will not abandon Japan (on the abduction 
issue)." 
 
The stress on unity between Japan and the United States apparently 
comes from strategic decisions by both governments. A strained 
Japan-U.S. relationship and an awkward mood between the two leaders 
would only please the North. Fukuda and Bush managed to avoid that. 
For both to fall in step with a conciliatory tone toward the North 
would delight Pyongyang more than Washington and Tokyo. Such a 
message was avoided by the two leaders. 
 
 
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How has Washington's decision to take the North off its terrorist 
blacklist affected the Fukuda administration? Some public opinion 
polls showed severe results, faulting Prime Minister Fukuda for 
going along with it. Although support ratings for the Fukuda cabinet 
seem to have bottomed out, they still remain low. 
 
There is discontent among conservative supporters of the Liberal 
Democratic Party about the delisting the North as a state sponsor of 
terrorism. If that is to weaken the Fukuda's administration's 
foundation, albeit indirectly, the Bush administration's decision 
would end up exacting a political toll on the top leader of an U.S. 
ally whose footing is weak. 
 
The North could respond sincerely to the verification of its nuclear 
declaration and the abduction issue before it is removed from the 
U.S. list of terrorism-sponsoring nations on August 11. Such would 
change the mood in Japan and help Japan and the United States 
restore unity. 
 
The North might opt for buying time or throwing a curve ball to 
drive a wedge between Japan and the United States. Forecasting the 
North's action is not easy. The deadline will come in any event, and 
America's delisting process will come to an end. The rainy season 
will continue for Japan-U.S. relations. 
 
North Korea, a dictatorship, can toy with the feelings of Japan and 
the United States. A dictatorship can have an edge over an unpopular 
leader of a democracy with a weak foundation at least over the short 
term. 
 
It is meaningless for Prime Minister Fukuda to hurl unpleasant words 
at the President, whose days in office are numbered. It was natural 
for the top Japanese and U.S. leaders to confirm bilateral 
cooperation. Although it also was diplomatically wise, offering 
healing words to each other does not help resolve pressing issues. 
 
The Fukuda-Bush meeting has somewhat helped to reduce the 
awkwardness in bilateral relations, but has it sent a strong message 
to the North to respond earnestly to the nuclear and abduction 
issues? The North will probably continue trifling with the feelings 
of Japan, the United States, and China, as well. 
 
(6) Editorial: Real value of Japan-U.S. alliance to be tested at 
Lake Toya Summit 
 
MAINICHI (Page 5) (Full) 
July 7, 2008 
 
In their meeting held prior to the opening of the Lake Toya Summit 
in Hokkaido, Prime Minister Yasuo Fukuda and U.S. President Bush 
agreed to closely cooperate in resolving the North Korean nuclear 
and abduction issues. On the global warming issue, both sides failed 
to bridge their perception gap. In discussions on these issues, the 
real value of the Japan-U.S. alliance will be tested at the Group of 
Eight (G-8) Summit. 
 
This is likely to be the last visit to Japan by President Bush 
before he leaves office next January. The Japan-U.S. relations over 
the past seven and a half years under the Bush administration are 
considered to have been good in general. In particular, the personal 
relationship of trust established between President Bush and Prime 
Minister Koizumi during the five years of the Koizumi administration 
 
TOKYO 00001859  008 OF 010 
 
 
favorably affected the whole bilateral relationship. 
 
Japan has continued to support the President's "war on terror" by 
dispatching Self-Defense Force troops to the Indian Ocean and Iraq 
after the terrorist attacks on the U.S. The two countries have also 
promoted cooperative relations on the military front, as represented 
by their cooperation on missile defense, as part of efforts to 
counter North Korea's nuclear and missile threats. 
 
However, friction has marked recent relations between Japan and the 
U.S., mainly due to a definite difference in both sides' positions 
over issues related to North Korea. 
 
The difference might reflect their perception gap regarding the 
nuclear threat coming from North Korea. North Korea's nuclear 
weapons have posed a threat directly to Japan, but what the U.S. 
seems most fearful of is the possible proliferation of nuclear 
weapons to terrorist groups. The Japanese government, too, harbored 
this kind of concern. 
 
The U.S. also began to take procedures to delist North Korea as a 
state sponsor of terrorism despite no progress on the abduction 
issue. This has made Japan even more apprehensive. 
 
In the joint press conference, Fukuda proudly said: "The Japan-U.S. 
alliance has deepened over the past several decades." If that is so, 
he should show specifics to prove this. 
 
Bush said that the U.S. would make utmost efforts to denuclearize 
the Korean Peninsula. He also stressed the need to strictly verify 
North Korea's nuclear declaration. He further expressed apprehension 
about North Korea's uranium enrichment program, nuclear 
proliferation, and development of long-range missiles. 
 
After the G-8 Summit ends, the envoys of the six-party talks will 
meet to discuss how to verify North Korea's nuclear report and other 
matters. We hope China, the chair of the six-party talks, will work 
on other members to establish a perfect mechanism to fully examine 
the contents of the report. 
 
On the abductions, President Bush said: "We are fully aware how 
delicate this issue is for Japan. We will never abandon Japan on 
this issue." 
 
Among the members of the six-party talks, however, there are 
differences in interest in the abduction issue. Fukuda, who has 
emphasized the importance of resolving both nuclear and abduction 
issues simultaneously, naturally should make utmost efforts to bring 
about progress in negotiations with North Korea and make more 
efforts to obtain understanding of Japan's position from the 
countries concerned. 
 
Regarding the global warming issue, the goal the G-8 leaders should 
attain at least is to reach an agreement on the goal of halving 
greenhouse gas emissions by 2050. We expect Fukuda to step up 
efforts to elicit an agreement from President Bush, who remains 
reluctant to set a goal. 
 
(7) DPJ to submit to extra Diet session bills banning amakudari 
(golden parachute) practice and reforming the road-related tax 
revenues system 
 
 
TOKYO 00001859  009 OF 010 
 
 
NIKKEI (Page 2) (Full) 
July 6, 2008 
 
The main opposition Democratic Party of Japan (DPJ) will submit to 
an extraordinary Diet session, which is expected to be convened in 
late August, a bill to ban the practice of amakudari or a golden 
parachute system under which retired senior bureaucrats take 
high-paying posts in private firms or government-affiliated 
organizations. The DPJ also plans to present a bill on reform of the 
road-related tax revenue system to the upcoming extra session. The 
aim is to play up differences in reform between it and the 
government and ruling camp through policy debate. Some in the 
largest opposition party are calling on their party to flexibly 
respond to deliberations in the House of Councillors, to which the 
DPJ submitted a censure motion against Prime Minister Yasuo Fukuda 
in the latest ordinary session. 
 
The DPJ intends to submit the legislation on management and control 
of retired civil servants (tentative name) which includes such 
measures as 1) prohibiting the system of finding amakudari positions 
for bureaucrats; 2) banning the practice of encouraging early 
retirement, and 3) lifting the retirement age of bureaucrats to 65. 
Although the party advocates the complete scrapping of amakudari, it 
failed to include the above measures in the bill to reform the civil 
servant system, on which it reached agreement in the previous Diet 
session, because the ruling coalition was opposed. 
 
The government plans to free up revenues from the road-related taxes 
now solely dedicated to road construction and maintenance and 
reclassify them as general funds. In response, DPJ Deputy President 
Naoto Kan said: "Under the government plan, the authority alone 
would be transferred from the Ministry of Land, Infrastructure, and 
Transport (MLIT) to the Ministry of Finance." The DPJ, therefore, 
asserts that the authority related to road maintenance and fiscal 
resources be transferred from the central government to local 
governments. It is also looking into abolishing the MLIT's regional 
bureaus. It intends to submit to the extra session a drastic reform 
bill, including the scrapping of regional bureaus. 
 
The DPJ will incorporate such policy measures in a manifesto (set of 
campaign pledges) for the next Lower House election in order to play 
up its political identity as a party with policies. It knows, also, 
that the public pays little attention to the opposition camp while 
the Diet is out of session. 
 
(8) DPJ Secretary General Hatoyama: if DPJ defeated in Lower House 
election, I and Ozawa will retire from politics 
 
MAINICHI (Page 2) (Full) 
July 7, 2008 
 
Yukio Hatoyama, secretary general of the main opposition Democratic 
Party of Japan (DPJ), delivered a speech on July 5 in Kanazawa City. 
Referring to the next House of Representatives election, Hatoyama 
said: "If our party is not able to win it, I and President Ichiro 
Ozawa will have to retire from politics. With that determination in 
mind, we are putting in every effort." 
 
(9) Prime Minister's schedule, July 5 
 
NIKKEI (Page 2) (Full) 
July 6, 2008 
 
TOKYO 00001859  010 OF 010 
 
 
 
10:08 
Arrived at his private residence in Nozawa. 
 
13:43 
Returned to his official residence. 
 
15:51 
Met deputy foreign ministers Kohno and Sasae and North American 
Affairs Bureau Director-General Nishimiya. 
 
16:41 
Met Kohno and Sasae, and Economic Affairs Bureau Director-General 
Otabe. Kohno and Otabe stayed on. 
 
19:09 
Went to dinner with his family at a Chinese restaurant in 
Higashi-azabu. 
 
20:38 
Returned to his official residence. 
 
Prime Minister's schedule, July 6 
 
NIKKEI (Page 2) (Full) 
July 7, 2008 
 
09:16 
Departed from Haneda Airport on a government plane to attend the G-8 
summit. 
 
10:34 
Arrived at New Chitose Airport. 
 
11:23 
Visited Lake Hill Farm in the town of Toya. 
 
11:35 
Arrived at the Windsor Hotel Toya in the town. 
 
13:09 
Toured the International Media Center in Rusutsu. 
 
15:33 
Held a meeting with President George W. Bush at the Windsor Hotel 
Toya. 
 
17:12 
Held a joint press conference. 
 
18:05 
Held a meeting with Canadian Prime Minister Stephen Harper. 
 
19:07 
Threw a dinner party for President Bush and his wife. Stayed 
overnight at the hotel. 
 
SCHIEFFER