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Viewing cable 08TOKYO2054, DAILY SUMMARY OF JAPANESE PRESS 07/25/08

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Reference ID Created Released Classification Origin
08TOKYO2054 2008-07-26 11:40 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6792
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2054/01 2081140
ZNR UUUUU ZZH
P 261140Z JUL 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6087
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 1403
RUEHFK/AMCONSUL FUKUOKA 9029
RUEHOK/AMCONSUL OSAKA KOBE 2759
RUEHNAG/AMCONSUL NAGOYA 7233
RUEHKSO/AMCONSUL SAPPORO 9612
RUEHBJ/AMEMBASSY BEIJING 4549
RUEHUL/AMEMBASSY SEOUL 0539
RUCNDT/USMISSION USUN NEW YORK 0929
UNCLAS SECTION 01 OF 12 TOKYO 002054 
 
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 07/25/08 
 
INDEX: 
 
(1) Okinawa governor on Futenma relocation: "Tacit agreement" with 
the central government (Mainichi) 
 
(2) PACOM refuses to meet Ginowan mayor (Okinawa Times) 
 
(3) ASEAN Regional Forum losing its reason for existence (Yomiuri) 
 
(4) Government accelerating signing of tax treaties with 
resource-rich countries: Talks with Saudi Arabia, Oman start 
(Nikkei) 
 
(5) Right to self-defense against attacks: Iranian envoy (Sankei) 
 
(6) Simulation: Cabinet shuffle on July 30 most likely (Tokyo 
Shimbun) 
 
(7) Secretary General Ibuki eager to stay in office (Sankei) 
 
(8) Chorus of calls for pork-barrel largesse from the ruling camp, 
concerned about support groups deserting LDP (Asahi) 
 
(9) Appointments of senior MOFA officials (Yomiuri) 
 
(10) TOP HEADLINES 
 
(11) EDITORIALS 
 
(12) Prime Minister's schedule, July 24 (Nikkei) 
 
ARTICLES: 
 
(1) Okinawa governor on Futenma relocation: "Tacit agreement" with 
the central government 
 
MAINICHI (Internet edition) (Excerpt) 
July 25, 2008 
 
In connection with the issue of relocating the U.S. Marine Corps' 
Futenma Air Station, Hirokazu Nakaima, governor of Okinawa 
Prefecture, stated today, "There is a tacit agreement (with the 
central government) on moving it." He was referring to moving the 
government's planned location (of the site) into the ocean, as the 
prefecture has been seeking. He indicated his perception that the 
government would now respond by moving the site into the sea. 
However, until now, although Defense Minister Shigeru Ishiba has 
said, "We will discuss (the relocation) keeping in mind a possible 
moving (of the site) into the ocean," he also has repeatedly stated 
this view, "Unless there is a logical reason, revising (the plan) 
would be difficult." Governor Nakaima's statement is likely to 
create a new stir. 
 
He made the remark at his regular news conference at the prefectural 
building. 
 
(2) PACOM refuses to meet Ginowan mayor 
 
OKINAWA TIMES (Page 20 (Full) 
July 25, 2008 
 
GINOWAN-Ginowan City's Mayor Yoichi Iha is scheduled to visit the 
 
TOKYO 00002054  002 OF 012 
 
 
United States from July 27 for a direct appeal, seeking to close 
down the U.S. Marine Corps' Futenma Air Station at an early date. In 
the meantime, U.S. Navy Adm. Timothy J. Keating, commander of the 
U.S. Pacific Command (PACOM), headquartered in Hawaii, and Lt. Gen. 
Keith J. Stalder, commander of the U.S. Marine Corps Forces Pacific, 
have refused to meet with the mayor, sources revealed yesterday. In 
addition, the mayor has been unable to get an appointment with any 
other officers. The city is continuing its coordination with the 
U.S. military through other channels. Iha will visit the United 
States as planned. 
 
The city asked the Foreign Ministry's Okinawa liaison office in 
early July to ensure meetings with the two commanders. According to 
the office, the U.S. military answered that it would be difficult 
for the two commanders to meet with the mayor because their 
schedules are tight. The U.S. military did not give any detailed 
reasons or refer to which office could meet with the mayor, the 
office said. 
 
On June 29, the U.S. Navy kicked off the Rim-of-the-Pacific naval 
exercises, or RIMPAC 2008, in waters off Hawaii. The naval drills 
will be carried out until July 31, with the participation of naval 
forces from a total of 10 countries, including Japan. The city has 
again asked the U.S. military for appointments with the commanders 
through U.S. Senator Feinstein, whom Iha once met when he visited 
the United States in the past, and through Bob Nakasone, a member of 
Hawaii's state legislature. 
 
Iha had plans to tell the commanders during his visit to the United 
States that he has obtained a copy of the U.S. military's masterplan 
for Futenma airfield and that Futenma airfield violates the U.S. 
military's safety standards. The mayor also planned to ask them to 
close down the airfield at an early date. 
 
It is now difficult for Iha to make a direct appeal to the 
commanders. "They will not respond to requests from the local 
communities suffering from damage," Iha said. He added: "This means 
that the U.S. military's responsibility will be called into 
question. Their future risk is greater. I'm planning to meet over 
there with Federal Congress and State Legislature members and also 
with experts on base issues. This alone is meaningful." With this, 
he stressed the effectiveness of his U.S. visit. 
 
Iha to pursue U.S. military's inconsistency 
 
GINOWAN-A group of local supporters for Ginowan City's Mayor Yoichi 
Iha held a send-off party for him yesterday at the city's Social and 
Welfare Center before he leaves for the United States to make a 
direct appeal. Iha will be accompanied by two Okinawa prefectural 
assembly members, Seiryo Arakaki and Kiyoko Tokashiki. They 
reaffirmed their resolve for their visit to the United States. 
 
Iha noted that the U.S. military's masterplan for Futenma airfield 
sets up "clear zones" that restrict land uses. "About 3,600 people 
live in the clear zones where land uses are restricted, and there is 
a primary school in that area. The U.S. military does not follow its 
own standards. I will pursue such an inconsistency in person. This 
will lead to base reversion." 
 
(3) ASEAN Regional Forum losing its reason for existence 
 
YOMIURI (Page 7) (Abridged slightly) 
 
TOKYO 00002054  003 OF 012 
 
 
July 25, 2008 
 
Singapore, Tetsuya Tsuruhara 
 
The Singapore Declaration adopted on July 24 by the Association of 
Southeast Asian Nations (ASEAN) Regional Forum (ARF) ministerial 
conference reflects the group's intention to develop the ARF, a 
loose-knit government-to-government framework, from a venue for 
dialogue into a regime for action. Although ASEAN has been pulling 
together 26 countries and one organization to participate in its 
conference, ASEAN's own foundation is starting to sink. In order 
also to effectively operate the ARF, it has become imperative to 
increase the pace of integration of ASEAN, the forum's driving 
force. 
 
The declaration that includes the wording "to undertake concrete and 
practical cooperation" is a product of growing pressure for a review 
for the future of the ARF, which has been criticized as "all words 
and no action." Disaster relief, antiterrorism, maritime security, 
denuclearization, and disarmament form the major areas of 
cooperation. Groups centering on like-minded countries will explore 
specific ways to cooperate in each area. 
 
Cooperation will be centered on ASEAN. The organization was supposed 
to declare this year the launching of its "charter," which can be 
called a basic law for building by 2015 a community equivalent to a 
single market. This would be done through a series of conferences 
starting with the July 20 ASEAN foreign ministerial and ending with 
the ARF ministerial. Instead, ASEAN's attention was diverted by the 
Burmese junta's isolationism, which collided with the spirit of 
integration, and by the border dispute between Cambodia and 
Thailand, an example of nationalism and not integration. 
 
As seen in ASEAN+3 and the East Asia Summit, ASEAN has moved forward 
by serving as the glue binding together such major powers as Japan, 
the United States, China, India and Russia. There have also emerged 
in Asia in recent years other forums, such as the Shanghai 
Cooperation Organization, in which ASEAN's mediation has not been 
needed. Although the latest informal six-party foreign ministerial 
on North Korean denuclearization was held in Singapore, Beijing is 
the home ground for the talks. Japan, China and South Korea also 
decided earlier this year to hold a trilateral summit regularly 
apart from ASEAN. 
 
ASEAN is now faced with both internal and external challenges. 
Singaporean Prime Minister Lee Hsien Loong in the July 21 ASEAN 
ministerial meeting stressed the need to accelerate ASEAN's 
integration, saying: "The pace of ASEAN integration should not be 
set by its slowest members, or else all will be held back by the 
problems of a few." 
 
(4) Government accelerating signing of tax treaties with 
resource-rich countries: Talks with Saudi Arabia, Oman start 
 
NIKKEI (Top Play) (Almost full) 
July 25, 2008 
 
The government plans to accelerate a drive to sign a tax treaty with 
resource-rich countries. In June, it reached a basic agreement to 
sign such a treaty with uranium-rich Kazakhstan and Brunei, an oil 
producing country. It has also informally launched talks with Saudi 
Arabia, the largest oil producing country in the world. The aim of 
 
TOKYO 00002054  004 OF 012 
 
 
signing such a treaty is to back Japanese companies' activities in 
resource-rich countries, where large projects joined by Japanese 
companies are on the increase, and to lure investment from 
deep-pocketed resource-rich countries, by preventing double taxation 
in Japan and partner countries. 
 
Support for penetration of Japanese companies; Luring investment in 
Japan 
 
The Japanese government is now engaging in talks with Kuwait and the 
United Arab Emirate (UAE), where there are rich crude oil reserves. 
It has also informally started talks with Saudi Arabia and Oman -- 
both prominent oil-producing countries. Countries like Qatar, which 
has ample liquefied natural gas, have been floated as candidates for 
partners for such a treaty. 
 
Resource-rich countries are active in implementing large-scale 
projects, starting with projects for building infrastructure, due to 
the steep rise in crude oil prices. Marubeni Corporation has taken 
part in a power generation project in the UAE. Mitsubishi Heavy 
Industries and Obayashi Corporation have also joined a railway 
construction project in that country. According to the Japan 
External Trade Organization (JETRO), the number of Japanese 
companies that have advanced into the UAE has doubled from four 
years ago, exceeding 300. Isuzu Motors also plans to advance into 
Saudi Arabia. Companies operating in those countries have been 
calling on the government to sign a tax treaty for fear of being 
doubly taxed. 
 
Such a treaty could also produce an effect of luring investment 
money from various Middle-Eastern countries, whose funds in hand are 
expanding due to surging resource prices. For instance, the Abu 
Dhabi Investment Authority, a UAE government-affiliated fund, is 
presumably managing more than 80 billion dollars and the Kuwait 
Investment Authority approximately 200 billion dollars throughout 
the world. 
 
Under Japan's existing system, in the event of foreign companies and 
investors from countries with which it has not tax treaty purchasing 
stocks of Japanese listed companies, the income taxes of 7 PERCENT 
is imposed on dividends and 15 PERCENT  on interests on bonds, 
working as impediments to investment. If there is a tax treaty, such 
taxes could be reduced. In many cases, taxation could be reduced to 
between 5 PERCENT  and 10 PERCENT , though the percentage may differ 
according to treaties. 
 
Japan has signed tax treaties with the U.S., Sweden, Denmark, etc., 
since the 1950s. Since then, it has signed such a treaty with 
European countries, such as France, Germany, and then Asian 
countries, such as India and China, as its economic relations with 
those countries deepened as a result corporate advances into those 
countries. The government intends to increase such a treaty with 
resource-rich countries, whose presence is increasing because of 
their oil money. 
 
(5) Right to self-defense against attacks: Iranian envoy 
 
SANKEI (Page 7) (Full) 
July 24, 2008 
 
Iran recently carried out missile tests against Israel's military 
training exercises that anticipated strikes on Iran's nuclear 
 
TOKYO 00002054  005 OF 012 
 
 
facilities. Meanwhile, the U.S. Bush administration has shifted to a 
flexible stance, having a high-ranking official participate in the 
European Union's nuclear talks with Iran for the first time. There 
are now new developments regarding the Iranian nuclear issue. On 
that issue, the Sankei Shimbun interviewed Iranian Ambassador to 
Japan Seyed Abbas Araghchi, who took part in the nuclear issue as 
vice foreign minister for legal and international affairs and who 
arrived at his post in March. 
 
-- How do you evaluate the nuclear talks held with the EU and other 
entities in Geneva on the 19th of this month? 
 
Ambassador Araghchi: All participants agreed that it would be better 
to shelve preconditions and negotiate. This is a step forward. 
 
-- This time, the U.S. Department of State's No. 3 man, Under 
Secretary of State for Political Affairs Burns, was present. 
 
Araghchi: I wonder why they (U.S.) did not send someone in the 
past. 
 
-- The international community is calling on Iran to stop enriching 
uranium. Will Iran do so? 
 
Araghchi: We cannot find any reason for us to do so. Our nuclear 
program is for peaceful purposes. Iran has the right to do so. The 
more the United States and Europe tell us to stop enriching uranium, 
the more we will be distrustful of the United States and Europe. 
They say we are playing for time while refusing to stop the program. 
But Iran has already acquired technical know-how, so we don't need 
more time. 
 
-- The U.S. and Europe think Iran's purpose is to develop nuclear 
weapons. 
 
Araghchi: The United States says Iran will go nuclear in the future. 
At this point, however, there's no sign of it. The United Nations 
Security Council is imposing sanctions on Iran for what we've not 
done yet. In 2003, the United States and Europe requested Iran stop 
its nuclear program. We did so and negotiated for two and a half 
years. They're still imposing sanctions. And we found that the real 
aim of the United States and Europe is to stop our nuclear 
activities forever. Confidence building should be bidirectional, and 
Iran has fulfilled its responsibility. The United States and Europe 
also have the responsibility to do so. 
 
-- Iran has the world's third largest amount of oil reserves. Why 
does Iran need nuclear energy? 
 
Araghchi: We will use nuclear energy for electric power generation, 
and we will use earnings from our exports of oil and natural gas to 
invest in infrastructure improvement. 
 
-- In 1981, Israel raided the Osirak reactor in Iraq. Do you 
anticipate such an event? 
 
Araghchi: They wouldn't attack. It's easy to start a new war in this 
region. But it's almost impossible to end it. 
 
-- Some people in Iran say Iran would block the Straits of Hormuz if 
the situation deteriorates. 
 
 
TOKYO 00002054  006 OF 012 
 
 
Araghchi: We have the right to defend ourselves when we're 
attacked-no matter what it takes. On the nuclear issue as well, 
we're ready to cooperate and talk, and we're also ready for a 
showdown. 
 
-- The July 9 missile test will destabilize the region. 
 
Araghchi: Security is basically for deterrence and defense. Our 
missile plan is limited to self-defense. 
 
-- What about nuclear cooperation with North Korea? 
 
Araghchi: Iran is developing its nuclear program on its own, and I 
can say definitely it has nothing to do with North Korea. North 
Korea could be a threat to Japan, but Iran is unlikely to become a 
threat to Japan. 
 
(6) Simulation: Cabinet shuffle on July 30 most likely 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 24, 2008 
 
Prime Minister Yasuo Fukuda has remained silent regarding a cabinet 
shuffle. Therefore, ruling coalition lawmakers have been on pins and 
needles. They, however, can narrow down the timing of a cabinet 
shuffle because of the tight political calendar. 
 
Fukuda has yet to reveal even his intention on whether he will 
shuffle his cabinet or not. Yet, many ruling camp members believe 
that if the extraordinary Diet session is convened in late August 
and if Fukuda wants to shuffles his cabinet before the convocation 
of the extra session, he will do so on July 30. 
 
Economy, Trade and Industry Minister Akira Amari and Agriculture, 
Forestry and Fisheries Minister Masatoshi Wakabayashi will be 
staying in Geneva until July 27 to attend the ministerial meetings 
of the new round of global trade talks (Doha Round negotiations). 
The Fukuda cabinet is expected to approve on July 29th budgetary 
estimate request guidelines for fiscal 2009. 
 
Although a government official said that the cabinet approval of 
budgetary request guidelines for FY2009 would not be an obstacle to 
the setting of the date for a cabinet shuffle, Fukuda has stated 
that he gives top priority to implementation of policy measures and 
only then will he make a decision on the cabinet-shuffle issue. 
 
The government is expected to come up with a plan to set up a 
third-party organization, as well as a five-point social welfare 
plan by July 29. With this, Fukuda will complete his policy agenda 
for the time being. 
 
Fukuda is expected to visit Hiroshima on August 6 and Nagasaki (on 
August 9). He also plans to go to China to attend the opening 
ceremony of the Beijing Olympics. The week of August 11 starts the 
O-Bon holiday break. So it is evident that shuffling the cabinet 
will be difficult during that time. Considering the fact that it 
takes a couple of days to pick senior vice ministers and 
parliamentary secretaries, the dominant view is that August 1 would 
be the last day for Fukuda to be able to shuffle his cabinet. 
However, July 30 (astrologically) is a very unlucky day. 
 
Some ruling camp members have suggested delaying the convocation of 
 
TOKYO 00002054  007 OF 012 
 
 
the extra session to late September. If that is the case, Fukuda 
does not need to carry out a cabinet shuffle quickly. If so, a 
cabinet shuffle may slip to after the O-Bon holiday break. The 
timing of the opening of a Diet session and a cabinet shuffle are 
closely related. In that context, ruling coalition members are very 
interested in a meeting of Fukuda and New Komeito leader Akihiro 
Ota, which will soon be held to work out the Diet calendar. 
 
A senior LDP member, however, said that he could not agree to delay 
a cabinet shuffle to sometime after the O-Bon holidays. Fukuda seems 
to be hearing such views. What kind of a decision will he make 
finally? 
 
(7) Secretary General Ibuki eager to stay in office 
 
SANKEI (Page 4) (Excerpts) 
July 25, 2008 
 
Bunmei Ibuki is enthusiastic about keeping his job as LDP secretary 
general at a time when everyone's attention is on when Prime 
Minister Yasuo Fukuda will shuffle his cabinet. Although Ibuki is 
known as a policy expert and enjoys the strong confidence of the 
prime minister, the faction headed by him is small with only 28 
members. He is not exactly popular in the party, either, due to his 
blunt speaking style. Further, he reportedly does not get along well 
with his New Komeito counterpart, Kazuo Kitagawa. What kind of 
secret plan is he crafting amid rumors that the next extraordinary 
Diet session will be put off or that the prime minister will 
dissolve the Lower House before the end of the year? 
 
"I don't know if the prime minister thinks a variety of outstanding 
issues should be handled by the current cabinet or new members. I 
have talked with him many times. I think he will make a decision 
around next week." 
 
Ibuki, attending a lecture meeting at an Osaka hotel on July 24, 
alluded to a cabinet shuffle next week. Having met Fukuda at a pace 
of once a week, Ibuki apparently intended to play up his strong ties 
with the prime minister. 
 
On July 22, the day after Fukuda's vacation ended, Ibuki reportedly 
urged the prime minister to convene the next Diet session as early 
as possible in order to extend the new antiterrorism special 
measures law at all cost. 
 
An Ibuki aide indicated that he has been upbeat since mid-July. The 
prevailing view in the LDP is that Ibuki has won assurance from 
Fukuda that he would not replace him as secretary general. 
 
On July 17, a meeting was held at a Tokyo hotel among the 
secretaries general and Diet affairs chiefs of the LDP and New 
Komeito. In the session, Ibuki locked horns with Kitagawa over the 
timing for the convocation of the next extraordinary Diet session. 
Kitagawa sought the convocation in late September, while Ibuki 
insisted on late August. Sparks flew between the two. 
 
The gulf with Election Strategy Council Chairman Makoto Koga is also 
expanding. Koga on July 23 echoed the New Komeito's call for 
delaying the convocation of the next Diet session by citing divided 
views within the ruling bloc and among the general public on 
amending the antiterrorism legislation. Ibuki on July 24 raised an 
outright objection, saying: "The international community is not as 
 
TOKYO 00002054  008 OF 012 
 
 
understanding as allowing Japan to discontinue its refueling 
activities in the Indian Ocean. It is natural for the cabinet to do 
risk management in running Diet business." 
 
The responsibility for election campaigning used to rest exclusively 
with the secretary general, but the prime minister has upgraded the 
election campaign chief to the election strategy council chairman on 
par with the secretary general. Given vaguely defined duties, 
Secretary General Ibuki has begun meddling in every area from 
election campaigning to Diet measures to policy. A former cabinet 
minister regards this as the cause of discord in the LDP 
leadership. 
 
(8) Chorus of calls for pork-barrel largesse from the ruling camp, 
concerned about support groups deserting LDP 
 
ASAHI (Page 4) (Excerpts) 
July 24, 2008 
 
With the guidelines for the fiscal 2009 budget to be adopted later 
this month, calls for increased spending are growing in the ruling 
camp. Some lawmakers are demanding the withdrawal of cuts in social 
expenditures and public works, which Prime Minister Fukuda has 
characterized as a symbol of ensuring fiscal discipline. With the 
next Lower House election in mind, the legislators are calling for 
pork-barrel spending without inhibition. 
 
Root of all evil 
 
Hidehisa Otsuji, head of the Liberal Democratic Party (LDP) caucus 
in the Upper House, is known as a welfare and labor policy expert in 
the Diet. At a press conference held after a joint welfare and 
labor-related meeting of the party on July 23, he lashed out at the 
government's policy since fiscal 2007 of cutting 220 billion yen 
from the natural increase in social security expenditures. He said, 
"The root of all evil is to be found in the 220 billion yen cut. I 
want it to be stopped. I cannot approve automatically cutting social 
security expenditures." 
 
Social security spending is not the only target of attack. Finance 
Minister Nukaga on July 19 during a foreign trip revealed a policy 
of expanding the cut in public works from the current 3 PERCENT  to 
5 PERCENT . Many participants in the plenary meeting of the LDP 
Policy Research Council opposed the proposal with Takashi 
Mitsubayashi, chairman of the Land, Infrastructure and Transport 
Division, saying, "We cannot accept even a 3 PERCENT  cut. A 5 
PERCENT  cut is utterly unacceptable." Upper House member Masashi 
Waki warned, "The construction industry will completely desert the 
LDP." 
 
New Komeito steps in line with LDP 
 
The ruling parties are inclined to call for boosting expenditures 
because they anticipate dissolution of the Lower House for a snap 
election. With only about a year left until the term of office of 
the incumbent members of the Lower House expires next September, the 
LDP believes that the outcome of the fiscal 2009 budget will 
directly affect the responses of support groups and industrial 
associations. 
 
Some members of the New Komeito, the coalition partner, are in line 
with the LDP. Election Committee Chairman Yosuke Takagi on a TV 
 
TOKYO 00002054  009 OF 012 
 
 
program on July 20 pointed out, "The government annually cuts 220 
billion yen from the natural increase in social security 
expenditures. There should be aspects of this policy that can be 
reviewed." The New Komeito is openly seeking substantive fiscal 
disbursements as a measure to address the steep rise in crude oil 
prices. Such aid is being sought by fisheries associations. Komeito 
head Ota noted, "More than 1 trillion yen in subsidies is needed.'' 
 
Reform or policy switch? 
 
However, if constraints on expenditures are eased at this stage, the 
move could undermine the government's target of moving the primary 
balance into the black by fiscal 2011, as set by the basic policy 
guidelines on economic and fiscal management and structural reforms 
for the fiscal 2006 national budget, adopted during the Koizumi 
administration. Former Prime Minister Shinzo Abe, who inherited the 
Koizumi policy line, in a speech on the 18th stressed, "Wasteful 
spending must be eliminated in the process of compiling the budget. 
There should not be any outlay that can be labeled pork barrel. 
Fiscal reconstruction is a challenge that must be addressed by using 
every means." 
 
All eyes are now on Prime Minister Fukuda to see if he will decide 
to maintain the reform policy line or to give in to those in the 
ruling camp seeking policy change. On the 22nd, he met with former 
Secretary General Tsutomu Takebe at his office. When Takebe asked 
for drastic measures to address soaring crude oil and grain prices, 
Fukuda simply said, "The sharing of roles between the government and 
the party is needed. I welcome the party sending decisive 
messages." 
 
(9) Appointments of senior MOFA officials 
 
YOMIURI (Page 4) (Full) 
July 25, 2008 
 
The Ministry of Foreign Affairs (MOFA) announced yesterday a roster 
of its new senior officials who include International Cooperation 
Bureau Koro Bessho as the replacement of Foreign Policy Bureau 
Director General Chikao Kawai. Kawai will assume the post of 
assistant chief cabinet secretary. The appointments will be 
officially announced on July 29. 
 
Foreign Policy Bureau Director General 
 
Kojiro Bessho: Graduated from the law faculty of the University of 
Tokyo in 1975; has been serving as director general of the 
International Cooperation Bureau; born in Kagawa Prefecture; age 
ΒΆ55. 
 
Latin American and Caribbean Affairs Bureau Director General 
 
Satoru Sato: Graduated from Tokyo University of Foreign Studies in 
1977; has been serving as minister at the embassy in Indonesia; born 
in Shimane Prefecture; age 55. 
 
European Affairs Bureau Director General 
 
Yasuaki Tanizaki: Graduated from the law faculty of the University 
of Tokyo in 1975; has been serving as director general of the 
Consular Affairs Bureau; born in Tokyo; age 56. 
 
 
TOKYO 00002054  010 OF 012 
 
 
Middle Eastern and African Affairs Bureau Director General 
 
Toshiro Suzuki: Graduated from the law faculty of the University of 
Tokyo in 1977; has headed the Office of Civilian Assistance to 
Reconstruction of Iraq; born in Tokyo; age 54. 
 
International Cooperation Bureau Director General 
 
Masato Kitera: Graduated from the law faculty of the University of 
Tokyo in 1976; has been director general for Sub-Sahara African 
Affairs; born in Tokyo; age 55. 
 
International Legal Affairs Bureau Director General 
 
Koji Tsuruoka: Graduated from the law faculty of the University of 
Tokyo in 1976; has been director general for Global Issues; born in 
Tokyo; age 55. 
 
Consular Affairs Bureau Director General 
 
Hiroshi Fukada: Left Osaka University of Foreign Studies in 
mid-course in 1977; has been serving as chief of the secretariat of 
the office to prepare for G-8 summit; born in Osaka; age 56. 
 
Intelligence and Analysis Service Director General 
 
Jiro Kodera: Graduated from the faculty of economics of Hitotsubashi 
University in 1977; has been ambassador to the United Nations; born 
in Hokkaido; age 55. 
 
Public Diplomacy Department Director General Kenjiro Moji 
 
Disarmament, Non-Proliferation and Science Department Director 
General Toshio Sano 
 
Southeast and Southwest Asian Affairs Department Director General 
Koji Inomata 
 
Director General for Sub-Sahara African Affairs Yoshitaka Akimoto 
 
Director General for Global Issues Shinsuke Sugiyama 
 
Ambassador to Ghana Keiichi Katakami 
 
Ambassador to Cote d'lvoire Yoshifumi Okamura 
 
(10) TOP HEADLINES 
 
Asahi & Tokyo Shimbun: 
Defense industry consultant arrested on suspicion of tax evasion 
 
Mainichi: 
Former Oita education board official says top board executive 
ordered to make several examinees pass teacher employment tests 
 
Yomiuri: 
Government to give financial support for medical services in rural 
areas 
 
Nikkei: 
Government to speed up tax accords with resource-rich nations 
 
 
TOKYO 00002054  011 OF 012 
 
 
Sankei: 
Tohoku earthquake leaves 132 injured in 8 prefectures 
 
Akahata: 
Tohoku earthquake leaves 126 injured in 7 prefectures 
 
(11) EDITORIALS 
 
Asahi: 
(1) Iwate earthquake: Whole country must prepare for quakes 
(2) Random stabbing incidents: Sever this chain 
 
Mainichi: 
(1) Foreign ministerial of six-party nations: How to seize North 
Korean pace 
(2) Defense consultant Akiyama arrested: Shed light on defense 
concessions 
 
Yomiuri: 
(1) Six-party nation foreign ministerial: No progress made on 
nuclear and abduction issues 
(2) Iwate earthquake: Unexpected regions also must prepare for 
quakes 
 
Nikkei: 
(1) Steeper path lies ahead before U.S. financial system stabilizes 
(2) Japan must prepare for earthquakes 
 
Sankei: 
(1) Foreign ministerial of six-party nations: U.S. should consider 
withdrawal of its decision to delist North Korea as state sponsor of 
terrorism 
(2) Iwate earthquake: Need to raise awareness of disaster prevention 
 
 
Tokyo Shimbun: 
(1) Major quakes: Entire Japan is dangerous 
(2) Arrest of Akiyama: Don't seal off defense interests 
 
Akahata: 
(1) Measures against surging fuel prices: Direct compensation 
urgent 
 
(12) Prime Minister's schedule, July 24 
 
NIKKEI (Page 2) (Full) 
July 25, 2008 
 
01:52 
Met Assistant Chief Cabinet Secretary Yanagisawa at his official 
residence. 
 
06:48 
Met Deputy Chief Cabinet Secretary for Crisis Management Ito. 
 
08:57 
Discussed post-Iwate earthquake measures at the Cabinet Crisis 
Management Center. Talked with Anti-Disaster Minister Izumi on the 
phone. 
 
10:02 
Attended a meeting of the central council on promoting measures for 
 
TOKYO 00002054  012 OF 012 
 
 
the handicapped. Met middle school students who attended the 
northern youth exchange program, followed by Vice-Foreign Minister 
Yabunaka. 
 
12:15 
Met Chief Cabinet Secretary Machimura, followed by Deputy Chief 
Cabinet Secretary Futahashi. 
 
14:35 
Met Defense Ministry Defense Intelligence Headquarters chief 
Hokazono, Defense Policy Bureau chief Takamizawa, and Cabinet 
Intelligence Director Mitsuya. Mitsuya stayed on. 
 
15:14 
Met NHK and commercial TV station announcers who are serving as 
ambassadors of terrestrial digital broadcasting. 
 
15:39 
Met MHLW Minister Masuzoe, Declining Birthrate Minister Kamikawa, 
People's Life Minister Kishida, and Assistant Chief Cabinet 
Secretary Saka. 
 
16:54 
Met Izumi and Cabinet Office policy director-director Omori. 
 
17:12 
Met MEXT Minister Tokai, followed by former LDP Secretary General 
Nakagawa. 
 
18:37 
Met Machimura and Futahashi. 
 
19:37 
Returned to his official residence. 
 
ZUMWALT