VZCZCXRO3874
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2021/01 2050619
ZNR UUUUU ZZH
P 230619Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5997
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 1343
RUEHFK/AMCONSUL FUKUOKA 8968
RUEHOK/AMCONSUL OSAKA KOBE 2698
RUEHNAG/AMCONSUL NAGOYA 7178
RUEHKSO/AMCONSUL SAPPORO 9551
RUEHBJ/AMEMBASSY BEIJING 4481
RUEHUL/AMEMBASSY SEOUL 0471
RUCNDT/USMISSION USUN NEW YORK 0870

UNCLAS SECTION 01 OF 10 TOKYO 002021 
 
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 07/23/08 
 
Index: 
 
ASEAN meeting: 
1) Foreign ministers of ASEAN plus 3 agree to fund to deal with 
disasters, cope with terrorism, share long-term goal of reducing 
greenhouse gases  (Nikkei) 
2) ASEAN plus 3 express support for Six-Party Talks  (Mainichi) 
3) Meeting at ASEAN meeting sidelines, Japan, ROK foreign ministers 
unable to fill wide gap over Takeshima isles issue  (Tokyo Shimbun) 
 
4) Japanese, Chinese foreign ministers agree to speed up talks on 
gas-field development  (Asahi) 
 
Political agenda: 
5) Returning to work after vacation, Prime Minister Fukuda is mum 
about possibility of shuffling his cabinet  (Sankei) 
6) Fukuda to meet Komeito's Ota to discuss timing of next Diet 
session and possibility of cabinet reshuffle  (Nikkei) 
7) Big gap in ruling camp over taking a Lower House revote on the 
extension of the anti-terror law that allows MSDF refueling service 
in the Indian Ocean  (Mainichi) 
8) Machimura: Serving in a post for long time is important; Masuzoe: 
I will do my best; Ishiba: Prime Minister should pick cabinet 
members for smooth management (Mainichi) 
 
Government finances: 
9) Primary balance deficit has expanded and will soon reach 3.9 
trillion yen  (Tokyo Shimbun) 
10) LDP's Taku Yamasaki: Age of Koizumi has passed, for the economy 
cannot get by just by structural reform  (Asahi) 
 
11) WTO agricultural talks: Japan focusing its efforts on important 
farm products  (Mainichi) 
 
Defense affairs: 
12) Defense Ministry's counselor (sanjikan) position to be scrapped 
next year  (Yomiuri) 
13) Defense Ministry proposes unifying defense buildup areas by 2010 
 (Nikkei) 
 
Articles: 
 
1) ASEAN, Japan, China, S. Korea agree to fund disaster prevention, 
counterterrorism 
 
NIKKEI (Page 2) (Abridged) 
July 23, 2008 
 
SINGAPORE-Japan, China, South Korea, and the Association of 
Southeast Asian Nations (ASEAN) held a meeting of their foreign 
ministers in Singapore yesterday afternoon and agreed to set up a 
fund to cooperate in disaster prevention and counterterrorism. 
Meanwhile, the recent Group of Eight (G-8) summit held at Lake Toya 
in Hokkaido agreed to share a long-term global goal of halving 
greenhouse gas emissions by 2050. In this connection, Foreign 
Minister Masahiko Koumura called on ASEAN members to share the 
goal. 
 
Last November, Japan, China, South Korea, and ASEAN members held a 
summit of their leaders and adopted a joint statement regarding 
future cooperation in East Asia. The fund to be established this 
time is based on that statement for regional cooperation in specific 
 
TOKYO 00002021  002 OF 010 
 
 
areas. The fund amounts to 3 million dollars (approximately 300 
million yen). The 10 ASEAN members will shoulder 10 PERCENT  of the 
fund, and the rest will be equally shared by Japan, China, and South 
Korea. 
 
Members of the East Asia Summit also held an informal meeting of 
their foreign ministers from a total of 16 countries-Japan, China, 
South Korea, 10 ASEAN members, India, Australia, and New Zealand. 
The current food crisis was on the agenda, and they shared a sense 
of crisis about the possibility of social unrest. They also 
concurred on the importance of technological research to produce 
more grain. 
 
In the series of meetings, Koumura stressed the importance of 
resolving the issue of Japanese nationals abducted to North Korea 
along with the North Korean nuclear issue. "I have obtained their 
understanding," he told reporters after the meetings. 
 
2) ASEAN-plus-3 supports six-party talks, agrees on early 
denuclearization of North Korea 
 
MAINICHI (Page 2) (Abridged slightly) 
July 23, 2008 
 
An ASEAN-plus-3 foreign ministerial meeting was held in Singapore on 
July 22. As a result, the members agreed on the need to support the 
six-party talks and to bring about North Korea's early 
denuclearization through the verification of its nuclear 
declaration. They also welcomed the North's nuclear declaration and 
the disablement of its nuclear facilities as a positive move toward 
nuclear abandonment. 
 
After the meeting, Foreign Minister Masahiko Koumura said: "It is 
important to bring progress to Japan-North Korea relations through 
the North's complete denuclearization and nuclear abandonment and 
the abduction issue." Koumura also asked for support for the 
settlement of the abduction issue based on the fact that a 
reinvestigation into the issue has not realized as was agreed upon 
with Pyongyang. With informal six-party talks scheduled to take 
place on July 23, Koumura intended to give a boost to the upcoming 
meeting by seeking the understanding of the ASEAN nations. 
 
The members also discussed soaring food and oil prices that are 
seriously affecting each country and agreed to combine efforts in 
addressing the issue. An accord was also reached to establish a fund 
to support ASEAN's activities in a wide range of areas, such as 
measures against poverty and food security. The size of the fund 
will be about 300 million yen. Ten percent will be covered by ASEAN 
members and the remaining amount will be evenly split by Japan, 
China and South Korea. Although a Japan-ROK foreign ministerial has 
been dropped due to the reference of the Takeshima/Dokdo issue in a 
new Japanese teacher manual, the foreign ministers of Japan and 
South Korea met each other in person for the first time yesterday 
after the territorial issue cropped up. 
 
Koumura said after the meeting, "We were able to exchange views on 
matters (including the Takeshima issue) extremely significantly 
though for a short period of time." The Foreign Ministry did not 
reveal the contents of the meeting. 
 
3) Gulf expanding between Japan and South Korea over Takeshima 
issue 
 
TOKYO 00002021  003 OF 010 
 
 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
July 23, 2008 
 
The gulf between Japan and South Korea is growing due to the 
Japanese government's decision to refer to Japan's sovereignty over 
the Takeshima group of islets (known as Dokdo in South Korea) in the 
new social studies guidelines for middle schools. The foreign 
ministers of Japan and South Korea came in contact with each other 
briefly at an ASEAN-plus-Three foreign ministerial held on July 22. 
But their meeting was short, without pursuing a way out of the 
current deadlock. 
 
Foreign Minister Masahiko Koumura and his South Korean counterpart 
Yu Myung Hwan sat next to each other in the ASEAN-plus-3 foreign 
ministerial. 
 
Seoul's strong reaction to Tokyo was evident, with a South Korean 
negotiations source describing the atmosphere of the meeting as 
businesslike. 
 
With informal six-party foreign ministerial talks scheduled to take 
place on July 23, Japan actively conducted prior consultations 
yesterday, with Foreign Ministry Asian and Oceanian Affairs Bureau 
Director-General Akitaka Saiki exchanging views with U.S. Assistant 
Secretary of State Christopher Hill. 
 
But due to Takeshima issue, Japan was not able to hold a meeting 
with the South Korean chief delegate, with whom Saiki has worked 
closely. The informal six-party foreign ministerial meeting is about 
to take place without prior consultations among the chief delegates 
of Japan, China, and South Korea. 
 
U.S. chief delegate Hill in his meeting with his South Korean 
counterpart Kim Sook indicated that a lack of dialogue between Japan 
and South Korea must not hinder the six-party talks. 
 
Japan's call on South Korea for a settlement of the Takeshima issue 
might end up augmenting Seoul's outcry. Japan intends to closely 
watch South Korea's response for the time without bringing up the 
territorial issue. 
 
4) Foreign ministers of Japan, China agree on acceleration of gas 
field talks; Prime Minister Fukuda to attend ASEM 
 
ASAHI (Page 4) (Abridged) 
July 23, 2008 
 
Foreign Minister Masahiko Koumura, now visiting Singapore, held a 
meeting with his Chinese counterpart Yang Jiechi on July 22. As a 
result, the two leaders agreed to accelerate talks on such matters 
as concluding a treaty on the joint development of gas fields in the 
East China Sea. Koumura also told Yang that Prime Minister Fukuda is 
planning to attend the Asia-Europe Meeting (ASEM) to be held in 
Beijing in October. 
 
After the meeting, Koumura indicated to the press that an agreement 
was reached to strengthen Japan-China relations through post-Sichuan 
earthquake reconstruction assistance, the development of gas fields, 
and youth exchanges, saying, "In order to advance strategically and 
mutually beneficial relations, we will actively use high-level 
contacts (such as summit meetings)." 
 
TOKYO 00002021  004 OF 010 
 
 
 
October also marks the 30th anniversary of the exchange of documents 
for the ratification of the Japan-China Peace and Amity Treaty by 
former Prime Minister Takeo Fukuda, the prime minister's father. 
Yang indicated that Beijing is considering a commemorative event 
timed with Fukuda's visit to China to attend the ASEM. 
 
The two leaders also agreed on continued efforts for the settlement 
of the frozen dumpling food-poisoning dispute and on continued human 
rights talks that resumed between the two countries after a hiatus 
of eight years. 
 
5) Prime Minister Fukuda ends summer vacation, but remains mum about 
reshuffling his cabinet 
 
SANKEI (Page 5) (Excerpt) 
July 23, 2008 
 
Although Prime Minister Fukuda has ended his six-day vacation and 
returned yesterday to his official duties, he continues to avoid 
making any statements about whether he will shuffle his cabinet or 
not. His plan was to first carry out such tasks as obtaining cabinet 
approval at the end of the month for the budget request ceilings for 
fiscal 2009 and announce a five-point plan related to health and 
labor issues. However, because differences of views have surfaced 
within the ruling parties about the timing for convening the 
extraordinary Diet session, he has decided to meet soon with New 
Komeito President Ota to analyze the political situation from now. 
His position seems to be to wait until the last minute to announce 
whether he had decided to shuffle his cabinet or not. 
 
6) Ruling party heads to meet soon to discuss cabinet shuffle, extra 
Diet session convocation 
 
NIKKEI (Page 2) (Excerpts) 
July 23, 2008 
 
Prime Minister Yasuo Fukuda revealed yesterday to the press corps 
his intention to make a decision on when to convene the next 
extraordinary session of the Diet after consulting soon with Akihiro 
Ota, president of the New Komeito, the junior coalition partner of 
the ruling Liberal Democratic Party (LDP), which Fukuda heads. 
Fukuda said: "I have to make a decision quickly." He is expected to 
discuss with Ota also whether to shuffle the cabinet. Ota has been 
calling for the government to change its structural reform policy, 
including broad-based reforms, advocating adopting his own party's 
reform policy that is aimed at encouraging the public. 
 
When asked by the press about whether he would convene the extra 
session in late August as scheduled or in September, Fukuda 
responded: "I want to make a proper decision after hearing various 
views (in the ruling parties)." 
 
The prevailing view in the ruling coalition is that the cabinet 
should be shuffled at the end of July or early August. Asked by the 
reporters about whether he considered a cabinet shuffle during his 
vacation, Fukuda evaded the question, only saying: "I just rested. I 
did nothing. This means I goofed off. Sorry about that." 
 
LDP Upper House Caucus Chairman told reporters yesterday: "Now is 
time to think comprehensively about various matters." He explained 
that he understood that Fukuda had indicated in his remarks in an 
 
TOKYO 00002021  005 OF 010 
 
 
executive meeting that there would be a cabinet shuffle. Secretary 
General Bunmei Ibuki met yesterday with Fukuda at the Prime 
Minister's Office. After the meeting he told reporters: "I assume if 
the cabinet is shuffled, the Prime Minister will do so quickly." 
 
Referring to a cabinet shuffle and the timing for opening of the 
extra Diet session, Ota stressed: "It is important to carry out 
politics that gives consideration to the socially weak." He urged 
Fukuda to put an end to the reform policy that has made people 
suffer. 
 
Ota took a cautious stance toward taking a revote at the House of 
Representatives on a bill extending Japan's refueling mission in the 
Indian Ocean, which will become a major issue at the extra session. 
He said: "It is important for the ruling and opposition camps to 
discuss the issue well." The New Komeito appears to have shifted its 
policy to one allowing it to show its own policy imprint. It prefers 
the option of a Lower House dissolution and general election around 
next January. 
 
The New Komeito and the LDP Upper House executives have shared the 
view that they should avoid confrontation with the main opposition 
Democratic Party (DPJ) at the extra Diet session. Otsuji showed the 
perception that there would be no problem to convene the extra 
session in September in a bid to extend the new Antiterrorism 
Special Measures Law. 
 
Ibuki, however, stressed yesterday the need for opening the Diet 
session in late August as planned with an eye on an extension of the 
refueling law and the handling of other bills. After the meeting 
with Fukuda, he expressed with a confident air: "The Prime Minister 
will probably do what is necessary without hesitation." 
 
7) Gap in ruling camp over when to open extra Diet session, as well 
as over revote on extension of new refueling law 
 
MAINICHI (Page 5) (Slightly abridged) 
July 23, 2008 
 
Wrangling has intensified in the ruling coalition over the timing of 
convening the next extraordinary Diet session. The government and 
ruling coalition had envisioned the convocation of the extra session 
in late August. However some in the ruling camp suggested putting it 
off to mid-September. A move to fight for a rollback became evident 
yesterday. Behind this move, there is the issue of extending the new 
Antiterrorism Special Measures Law, which will expire in January. In 
order to extend the law, a revote in the House of Representatives 
would inevitably be necessary. However, many in the New Komeito, the 
junior coalition partner of the Liberal Democratic Party (LDP), are 
cautious about a revote in consideration of pubic opinion. 
Therefore, the two ruling parties have engaged in wrangling with the 
next Lower House election also in mind. 
 
LDP Secretary General Bunmei Ibuki stated in press conference 
yesterday morning: "It seems to me that those who call for convening 
the extra session in late September have given up on bills that need 
to be dealt with." 
 
Ibuki appears to have strongly warned against the suggestion of 
putting off the convocation of the extra session, pointing out that 
some may want to avoid an extension of the new Antiterrorism Special 
Measures Law. 
 
TOKYO 00002021  006 OF 010 
 
 
 
Ibuki met with Prime Minister Yasuo Fukuda for about 40 minutes 
yesterday evening. He revealed to the press that he and Fukuda 
exchanged views on the timing of opening the extra session. He said: 
"The question is whether management of the Diet will become tough or 
whether we will not deal with necessary matters. I think the Prime 
Minister will do what is needed." 
 
Taku Yamasaki, a defense policy specialist and former LDP vice 
president, yesterday underscored the need for an extension of the 
new Antiterrorism Law. He said: "In order to extend the law, the 
extra session must be convened by early September." 
 
Many LDP lawmakers has called for putting off convening the extra 
session on the grounds that the term of the session should be 
shortened in an attempt to avoid attacks by the opposition bloc. The 
New Komeito has become alarmed about taking a second vote in the 
Lower House. 
 
The New Komeito is also concerned about the possibility that Fukuda 
will be forced by the opposition to dissolve the Lower House for a 
snap election at the end of this year or early next year. 
 
When asked by reporters about his party's position on the issue of 
extending the new Antiterrorism Special Measures Law, New Komeito 
leader Akihiro Ota said: "I want to refrain from making a comment." 
His remark showed a gap with the LDP's Ibuki. A senior LDP member 
said: "I cannot tell whether the New Komeito will agree to take a 
revote on the refueling mission extension." 
 
8) Machimura: Serving in a post for long time is important; Masuzoe: 
I will do my best; Ishiba: Prime Minister should pick cabinet 
members for smooth management 
 
MAINICHI (Page 5) (Full) 
July 23, 2008 
 
Prime Minister Yasuo Fukuda returned to work yesterday after 
finishing his summer vacation. In an executive meeting yesterday 
morning of his Liberal Democratic Party (LDP), Fukuda said: "Since 
now is time to consider various things comprehensively, I want to 
make efforts to fully cooperate with you." The major issue for the 
time being is whether he will shuffle the cabinet or not. 
 
Chief Cabinet Secretary Nobutaka Machimura pointed out: "Generally, 
it is important for cabinet ministers to serve in their posts as 
long as possible," after introducing overseas views critical about 
the short term of Japanese cabinet members. Attention is now on how 
Fukuda will treat Machimura in shuffling the cabinet. Machimura then 
expressed his enthusiasm for continuing to serve in his post. 
 
Health, Labor and Welfare Minister Yoichi Masuzoe stressed: "Since 
there are many pending issues such as the establishing of Japan 
Pension Organization and a review of nursing-care benefits, I will 
do my best." Defense Minister Shigeru Ishiba, who has pushed forward 
with reform of his ministry, said with a confident air: "It is only 
natural for the prime minister to have ministers to carry out his 
job smoothly." 
 
Administrative Reform Minister Yoshimi Watanabe, who has often 
confronted with the Prime Minister's Office regarding reform of the 
civil servant system, said: "I think it is a wrong way to shuffle 
 
TOKYO 00002021  007 OF 010 
 
 
the cabinet in order to boost the administration's popularity." 
 
Asked by reporters about his holiday, Fukuda said last evening: "I 
did nothing. It means I goofed off. Sorry about that." He denied the 
rumor that he had considered the selection of new cabinet members. 
 
9) Primary balance nowhere near surplus in fiscal 2011: Deficit 
likely to expand to 3.9 trillion yen, according to Cabinet Office 
projection; Outlook likely affect tax hike debate 
 
TOKYO SHIMBUN (Top Play) (Full) 
July 23, 2008 
 
The Cabinet Office on July 22 projected the primary balance of the 
central and local governments and submitted the results to the 
government's Council on Economic and Fiscal Policy. According to the 
estimate, the primary balance in fiscal 2011 would fall into a state 
of showing a deficit of approximately 3.9 trillion yen, even if 
spending is reduced steadily and the highest possible economic 
growth within the scope of the assumption is achieved. The number is 
0.7 PERCENT  of the gross domestic product. The projection indicates 
that it would become more difficult to move the primary balance into 
the black in that fiscal year, the immediate target year for the 
government's fiscal reconstruction effort. The bleak outcome will 
likely affect discussions of drastic reform of the tax code, 
including the consumption tax, this fall. 
 
The Cabinet Office projected in January this year that the amount of 
deficit would be about 700 billion yen (0.1 PERCENT  of the GDP). 
The latest estimate of a deficit has significantly increased. This 
is due to the downward revision of the nominal growth of the GDP 
from 3.3 PERCENT  a year to 3.0 PERCENT  a year in the wake of the 
steep rise in crude oil prices and the slowdown of the global 
economy, and a fall in projected tax revenues from the estimate made 
in January. 
 
The projection was made, based on the precondition that expenditures 
worth 14.3 trillion yen could be slashed over five years between 
fiscal 2007 and fiscal 2011. The amount of deficit in the event of 
the estimated nominal growth rate dropping from the projected level 
and remaining at 1.4 PERCENT  a year would be approximately 5.8 
trillion yen (1.1 PERCENT  of GDP). 
 
If the amount of spending cuts remains at 11.4 trillion yen over the 
five years, the amount of deficit would be 6 trillion yen (1.1 
PERCENT ), provided that high economic growth has been achieved, but 
if the economic growth remains sluggish, the amount of deficit would 
swell to about 7.9 trillion yen. 
 
State Minister for Economic and Fiscal Policy Hiroko Ota during a 
press briefing after the panel's meeting said, "The government will 
achieve its target of moving the primary balance into the black 
without fail. There are only three ways to achieve this end -- 
spending cuts, increasing tax revenues through strengthened growth 
potential, and a tax hike, if those two measures do not suffice." 
 
10) Yamasaki bids farewell to Koizumi era 
 
ASAHI (Page 4) (Abridged slightly) 
July 23, 2008 
 
"The Koizumi era is over. Japan will not be able to survive just by 
 
TOKYO 00002021  008 OF 010 
 
 
advocating structural reforms." 
 
Former LDP Secretary General Taku Yamasaki in a lecture meeting in 
the city of Otsu on July 21 bid farewell to the structural reform 
policy course of former Prime Minister Koizumi, his close friend. 
Yamasaki, Koizumi, and former LDP Secretary General Koichi Kato were 
known as the YKK trio. 
 
Yamasaki, who was serving as secretary general when Koizumi was 
pushing ahead with structural reforms, positively evaluated the 
Koizumi era, saying, "If it had not been for the Koizumi 
administration, the LDP would have become weak much earlier. But it 
has regained strength." 
 
At the same time, Yamasaki expressed his support for Prime Minister 
Fukuda's policy course of reducing disparities between Tokyo and 
local districts, saying: "We are now in the post-Koizumi era. Unless 
local regions are revitalized, the country will not grow with the 
Tokyo-centered approach alone." 
 
11) WTO Doha Round of talks on global trade: Japan focusing on how 
many farm products will be categorized as key items 
 
MAINICHI (Page 3) (Excerpts) 
July 23, 2008 
 
A cabinet-level meeting of the multilateral trade liberalization 
talks (Doha Round) sponsored by the World Trade Organization (WTO) 
that was held in Geneva, Switzerland, on July 21, was the scene of 
fierce clashes by countries with different interests. Can the Doha 
Round reach a settlement seven years since the talks started? The 
climax is expected to come this week. If the talks fall apart, a 
long extension of the negotiations would be inevitable. 
 
Japan is on the offensive over mined and manufactured products and 
on the defensive on farm products. 
 
Since Japan's tariffs on mined and manufactured products are the 
lowest among industrialized countries, there is a slim chance of 
such foreign products surging into the Japanese market as a result 
of a consensus being reached on the chairman's proposal as is. On 
the contrary, such an agreement would work favorably for Japan's 
exporting industries, because the markets of developing countries, 
which now impose high tariffs on those products, would become open. 
 
 
However, Japan is worried that if it is pressed to open its 
agricultural market, the result would hurt domestic agriculture and 
further diminish the food self-sufficiency ratio, which has already 
dropped to 39 PERCENT  on a calorie basis, according to a senior 
agriculture ministry official. 
 
One hundred-and thirty-four farm products will become subject to 66 
PERCENT -73 PERCENT  tariff reductions as required in the chairman's 
proposal. However, the imposition of only 22 PERCENT -49 PERCENT 
tariff cuts is allowed for key items. How many key items Japan can 
secure will be the central issue. According to the chairman's 
proposal, 4 PERCENT -6 PERCENT  of all farm products can be, in 
principle, categorized as key items. If an agreement reached on 6 
PERCENT , about 80 items would become eligible. Tariffs on the 
remaining 50 items or so will have to be significantly reduced. 
 
 
TOKYO 00002021  009 OF 010 
 
 
As such, Japan has been insisting that 10 PERCENT -15 PERCENT  of 
all farm products (approximately 130-200 items) should be 
categorized as key items. However, Agriculture Minister Wakabayashi 
lowered this number in Geneva, saying, "I want to secure at least 8 
PERCENT ." 
 
His statement is presumably aimed at advancing the talks by 
indicating a stance of making a certain level of concessions. 
However, views opposing Wakabayashi's statement are already growing 
strong among agricultural organizations. 
 
The chairman's proposal also seeks an expansion of a framework that 
requires a certain set amount of key farm items with low tariffs. 
 
Concerning rice, Japan is at present obligated to import 770,000 
tons a year (minimum-access quota). It could be required to expand 
that framework by up to 500,000 tons. Should that occur, rice 
growers, who have been forced to reduce rice cultivation, could be 
affected. 
 
12) Defense Ministry to abolish counselor posts next year 
 
YOMIURI (Page 2) (Abridged) 
July 23, 2008 
 
The Defense Ministry decided yesterday to abolish its defense 
counselors system, under which its bureaucrats have assisted the 
minister. Instead, the ministry will set up advisory posts (for 
political appointees) to assist the defense minister. In addition, 
the Defense Ministry will set up a defense council, which will be 
made up of the defense minister, senior officials from the 
ministry's bureaucracy, and staff officers from the Self-Defense 
Forces. The ministry will carry out these action plans in fiscal 
¶2009. The decision is based on a report of recommendations worked 
out by a government advisory panel to reform the ministry. 
Administrative Vice Defense Minister Kohei Masuda revealed this 
course of action in a national meeting of senior officials held 
yesterday. 
 
The Defense Ministry will earmark relevant costs in its budget 
request for next fiscal year and will present a package of 
legislative measures-including a bill to revise the Defense Ministry 
Establishment Law-to the Diet at its ordinary session next year. The 
Defense Ministry currently has a bureau in charge of planning 
Japan's defense buildup. In addition, each of the Ground, Maritime, 
and Air Self-Defense Forces' respective staff offices also has a 
defense buildup section. The Defense Ministry will unify these 
defense buildup planning offices into one, and it will also abolish 
the Operational Policy Bureau to integrate its SDF operational 
functions into the SDF Joint Staff Office. This restructuring will 
be carried out in fiscal 2010. "It will take time for coordination," 
a senior official of the Defense Ministry explained. 
 
13) Defense Ministry eyes unifying defense buildup sections in 2010 
 
NIKKEI (Page 2) (Full) 
July 23, 2008 
 
The Defense Ministry yesterday held a national meeting of senior 
officials following a government advisory panel's recent submission 
of a report of recommendations to reform the ministry. In the 
meeting, the Defense Ministry confirmed that it would present a 
 
TOKYO 00002021  010 OF 010 
 
 
package of legislative measures to the Diet at its ordinary session 
in 2010, including a bill to revise the Defense Ministry 
Establishment Law. The Defense Ministry currently has several 
sections to work out defense buildup plans and operational plans for 
the Self-Defense Forces. The legislation is intended to unify these 
defense buildup planning sections and integrate the Defense 
Ministry's SDF operational functions into the SDF Joint Staff 
Office. The ministry will work out an action plan in August as a 
roadmap for its restructuring. 
 
ZUMWALT