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RUCNDT/USMISSION USUN NEW YORK 1020

UNCLAS SECTION 01 OF 13 TOKYO 002107 
 
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 07/31/08 
 
INDEX: 
 
(1) Drifting Doha Round: Japan finds itself further isolated (Asahi) 
 
 
(2) Limits to proceedings of WTO under lead of U.S., Europe, with 
strong reactions from developing countries; Japan remains low 
profile (Yomiuri) 
 
(3) Rupture of WTO talks to accelerate bilateral talks; Japan's 
disadvantage to continue, fettered by agricultural interests 
(Mainichi) 
 
(4) Cabinet shuffle in August; no prospects yet on timing of extra 
Diet session, Lower House dissolution (Yomiuri) 
 
(5) Frustration growing among lawmakers and bureaucrats (Nikkei) 
 
(6) Government to assist consolidation of Trans-Siberian Railway to 
cut distribution costs (Nikkei) 
 
(7) U.S. consul general's art of reasoning against reason: 'Racial 
discrimination' against Okinawans; Outspoken to justify base 
presence forced on Okinawa (Ryukyu Shimpo) 
 
(8) DPJ's Okada says, "I do not have strong desire" to run in the 
party's presidential election (Nikkei) 
 
(9) BOJ economic outlook for 1998: Economic planning agency director 
general intervenes at policy-setting meeting, claiming "The outlook 
will work as a drag on the economy" (Tokyo Shimbun) 
 
ARTICLES: 
 
(1) Drifting Doha Round: Japan finds itself further isolated 
 
ASAHI (Page 6) (Full) 
July 31, 2008 
 
The collapse of the new round of global trade talks (Doha Round) 
under the World Trade Organization (WTO) has disappointed Japanese 
business leaders. They had anticipated that tariffs imposed by the 
U.S. and Europe could be sharply reduced. In an effort to protect 
domestic farmers, Japan has been on the defensive about tariff 
rates. Japan will inevitably be pressed to reform its agricultural 
structure in the rapid shift toward bilateral free trade talks 
expected in the future. 
 
Concern about progress in FTA talks between EU, South Korea 
 
Business leaders are disappointed at the breakdown of the WTO talks, 
because they had expected to see drops in tariffs on industrial 
products. 
 
Keizai Doyukai (Japanese Association of Corporate Executives) 
President Masamitsu Sakurai (Ricoh chairman) issued this comment 
yesterday: 
 
"It was very regrettable. I am deeply concerned that the WTO talks 
may be delayed by two or three years. I also fear that the 
antagonism among participating countries might lead to a trend of 
protectionism or anti-globalization setting in" 
 
TOKYO 00002107  002 OF 013 
 
 
 
High tariffs levied by the European Union (EU) and the U.S. stand in 
the way of Japanese automakers' business. An executive of an 
automobile manufacturer grumbled with disappointment: "The talks 
were moving in a favorable direction. We are greatly disappointed." 
 
The U.S. imposes a 25 PERCENT  tariff on large-sized foreign 
vehicles. This area in the automobile sector has long been a major 
income source for the so-called U.S. Big Three automakers, including 
General Motors. The EU, too, levies a 10 PERCENT  tariff on imported 
passenger cars, undermining Japanese compact cars' price 
competitiveness. Given this situation, Japanese automakers had 
highly anticipated that tariff rates would be sharply lowered. 
 
Business leaders are becoming nervous about the future development 
of the talks on concluding a free trade agreement (FTA) that started 
last year between the EU and South Korea. 
 
Once the EU agrees on a plan to reduce the tariffs on South Korean 
vehicles, Japanese automakers will be driven into a tighter spot. 
Electrical appliance manufacturers have also been in competition 
with South Korean rivals in the market of such digital products as 
slim TV sets. An executive of a leading home appliance manufacturer 
emphasized: "WTO talks involve many countries' national interests, 
so it naturally takes considerable time until an agreement is 
reached. Japan should also pour its energies into bilateral FTA 
negotiations." 
 
Business leaders had also anticipated that if tariffs on farm 
products had been reduced, agricultural reform in the nation would 
be accelerated. 
 
Vice President Yoji Sato of the leading trading company Sojitz Corp 
said in a press conference yesterday: "(When grain prices are 
steeply rising,) agriculture is becoming a sort of resource for 
countries. Such 'resource' nationalism might have contributed to 
breaking off the talks." Sato expressed concern that the trend of 
protectionism might grow and that economic blocs might be formed. 
 
Limit to protecting agriculture 
 
"I had not thought that the world had such harsh views, so we must 
move ahead with reform," said Ministry of Agriculture, Forestry and 
Fisheries (MAFF) Minister Wakabayashi in a press conference on the 
night of July 29, just after the talks ended in rupture. 
 
Japan had insisted that 10 PERCENT  of all farm products should be 
designated as sensitive farm products to be exempted from sharp 
tariff cuts. But based on the judgment that "the target might not be 
seriously discussed," as Wakabayashi noted, the government lowered 
the target to 8 PERCENT . Japan, however, remained defensive of its 
stand on the agricultural sector. 
 
With the collapse of the talks, tariffs will not be steeply cut for 
the time being. But a senior MAFF officer said: "Since negotiations 
will continue, the same scene will repeat itself several years from 
now." When the Uruguay Round was concluded in 1993, the mandated 
average tariff-cut rate was 36 PERCENT , 1.5 times less than the 54 
PERCENT  called for in the talks this time. Almost everybody 
connected with agriculture is aware of the need to lower tariffs 
from a medium to long-term point of view. 
 
 
TOKYO 00002107  003 OF 013 
 
 
Cited as a problem in Japan's agriculture is that farm products 
cultivated in a land-intense way, like rice and wheat, are less 
competitive. That's why Japan imposes considerably higher tariffs on 
rice and wheat. 
 
The major reason for this problem is that a cultivated acreage per 
farm household is small. The average acreage under cultivation is 
1.7 hectares in Japan, about 380 hectares in Australia, 84 hectares 
in the U.S., and 34 hectares in France. MAFF intends to submit a 
bill amending the Agricultural Land Law designed to promote farmland 
concentration to the next extraordinary Diet session this fall. But 
because the opposition camp has control of the House of Councillors, 
it is uncertain whether legal preparations will be able to move 
forward. Many farmers, in anticipation of a rise in land prices, 
have kept held on to their farmland, so little progress has been 
made in promoting large-scale farming. 
 
Many experts see that expanding "the system of direct payments" from 
the government to farmers is effective to maintain both the 
free-trade system and certain amounts of food production in the 
nation. The system is designed to maintain the production system 
with subsidies in return for liberalization. This system has been 
widely adopted among industrialized countries. Even so, there are 
many hurdles to clear before Japan can introduce such a system, such 
as a lack of public understanding and fiscal problems. 
 
(2) Limits to proceedings of WTO under lead of U.S., Europe, with 
strong reactions from developing countries; Japan remains low 
profile 
 
YOMIURI (Page 9) (Excerpts) 
July 30, 2008 
 
A key ministerial meeting to determine the fate of the new round of 
World Trade Organization (WTO) global trade talks (Doha Round) has 
broken off. Although seven years have passed since the Doha Round 
was established, no agreement has been reached. This result shows 
that there are limits to the WTO's formation of rules as a result of 
national interests of advanced and developing countries clashing 
complicatedly. 
 
The situation this time is similar to that developed in the 
ministerial meeting in Cancun, Mexico (in September 2003). WTO 
Director General Pascal Lamy was attending in that meeting as a 
trade and commerce officer of the European Union (EU). 
 
At that time, Lamy was criticizing the WTO's policymaking based on 
the unanimity rule. He fully knows about the WTO's weak points. 
 
Despite such full knowledge, Lamy had confidently said before the 
unofficial ministerial meeting: "There is a 50-50 chance" for a free 
trade accord. 
 
The U.S. submitted a proposal to cut subsidies for domestic farmers 
just before the ministerial meeting, in an attempt to take the 
initiative in discussions. 
 
But India reacted fiercely, irritating the U.S. The U.S. repeatedly 
criticized India, resulting in enraging India further. In past 
negotiations, everything was decided under the lead of the U.S. and 
Europe. This experience was no longer useful this time, as 
represented by a clash between the U.S. and India/China over 
 
TOKYO 00002107  004 OF 013 
 
 
conditions for developing countries to invoke the so-called 
safeguard mechanism in the agricultural sector. 
 
The U.S. wants to sell its farm products to such huge markets as 
India and China, but India and China want to protect their domestic 
farmers. As it stands, both sides' circumstances are totally 
different. 
 
A proposal for agreement - presented by Lamy on July 25 - noted that 
if one nation boosts the volume of imports by 40 PERCENT  over the 
previous year, the nation will be allowed to resort to the safeguard 
mechanism. 
 
Even so, there are few cases of a 40 PERCENT  increase in imports of 
the same farm product. In India, there are many petty farmers, so it 
wants to protect domestic wheat farmers. India claimed the Lamy 
proposal as offering excessively strict conditions for safeguards. 
 
Countries naturally make remarks to boost their national interests. 
As emerging countries or developing countries become more 
influential, it will become more difficult for the WTO to establish 
rules. 
 
Japan is the world's second largest economic power, but its 
international status is waning in the shadow of India and China. 
 
Japan attended a meeting by seven major trading parties, but there, 
the U.S., Europe, India, and China played key roles. Minister of 
Economy, Trade and Industry Amari said: "I would like to play a 
mediating role between industrialized and developing countries," but 
he just played a subordinate part. 
 
Japan initially wanted 10 PERCENT  of all farm products to be 
designated as sensitive products to be exempted from sharp tariff 
cuts. Just before the start of negotiations, Japan lowered the 
target to 8 PERCENT , but the proposed rate was lower than 8 PERCENT 
, exposing Japan's lack of bargaining capability and its overly 
optimistic outlook. 
 
(3) Rupture of WTO talks to accelerate bilateral talks; Japan's 
disadvantage to continue, fettered by agricultural interests 
 
MAINICHI (Page 8) (Full) 
July 31, 2008 
 
The breakdown of the multilateral trade liberalization talks (Doha 
Round) sponsored by the World Trade Organization (WTO) will likely 
accelerate moves to sign bilateral trade agreements, such as a free 
trade agreement (FTA) or an economic partnership agreement (EPA). 
However, Japan will likely be at a disadvantage in such bilateral 
negotiations, just as it was in the Doha Round negotiations, since 
the issue of opening its agricultural market will continue to act as 
a fetter. 
 
As of October 2007, the number of FTAs and other bilateral economic 
agreements signed throughout the world grew seven-fold to 194, 
compared to 1990. 
 
An FTA focuses on trade liberalization, based on a scrapping of 
tariffs. Japan attaches importance instead on signing EPAs, which 
aim at revitalizing the economy by adding investment, intellectual 
property rights and personnel exchanges to free-trade rules. It has 
 
TOKYO 00002107  005 OF 013 
 
 
so far signed EPAs with nine countries. Talks with six other 
countries are going on. 
 
However, since Japan has characterized bilateral talks as 
supplemental to multilateral talks, it is lagging behind other 
countries. Now that WTO talks have ruptured, those who are 
advocating moving swiftly toward bilateral agreements are increasing 
in number. 
 
Japan found itself at a disadvantage during the WTO's ministerial 
meeting. It also has been having difficulty in EPA talks with 
Australia, since that country is pressing for a total abolition of 
tariffs on rice, beef and dairy products. EPA talks with South Korea 
have been suspended since that country is seeking the liberalization 
of 90 PERCENT  of agricultural products. Political and historical 
issues are complicating talks with South Korea, with the issue of 
Takeshima isles, which both countries claim, casting a pall. 
 
South Korea this April reached agreement with the U.S. to sign an 
FTA. It is also moving ahead with talks with the European Union 
(EU). In Japan, however, government agencies are out of step with 
the Ministry of Economy, Trade and Industry (METI), which is 
exploring opportunities to start talks with the EU and the U.S. The 
Ministry of Agriculture, Forestry and Fisheries, however, has been 
taking a cautious stance. Now that the WTO talks have broken down, 
it is time for Japan to take a second look at its trade policy. 
 
(4) Cabinet shuffle in August; no prospects yet on timing of extra 
Diet session, Lower House dissolution 
 
YOMIURI (Page 4) (Full) 
July 30, 2008 
 
Following the endorsement of the spending cap for fiscal 2009, Prime 
Minister Yasuo Fukuda began yesterday to coordinate a cabinet 
shuffle in August, hoping by that to boost his administration's 
popularity. However, following the cabinet shuffle, the timing of 
the next extraordinary Diet session and whether there will be 
dissolution of the House of Representatives remain opaque. On these 
issues, the gaps in views in the ruling coalition seem difficult to 
overcome. 
 
For the Fukuda administration, July 29 was a day of policy 
decisions. That morning, the government announced an action plan to 
create a low-carbon society in order to cut greenhouse gas 
emissions, as well as an emergency social welfare program, called 
the "five step relief plan." 
 
Having completed his policy agenda, the Prime Minister then turned 
to preparing an environment for shuffling his cabinet.  A senior 
Liberal Democratic Party (LDP) official said last night: "It will 
probably be all over by August 10. I presume that a major shuffle 
will be carried out." 
 
With the likelihood of a pending cabinet shuffle in mind, Foreign 
Minister Masahiko Koumura called off his eight-day trip to India and 
other countries that would have started August 1. 
 
However, Fukuda does not yet seem to have completely made up his 
mind on all three matters. He told his aide: "I cannot ignore any of 
them." 
 
 
TOKYO 00002107  006 OF 013 
 
 
A divergence of views in the ruling camp on the timing for convening 
an extraordinary Diet session, as well as for Lower House 
dissolution has become stronger. 
 
In order to enact a bill revising the New Antiterrorism Special 
Measures Law and bills related to establishing a Consumer Affairs 
Agency, LDP Secretary General Bunmei Ibuki hopes to convene the 
extra session in late August. He also envisages that the Lower House 
would likely be dissolved next spring, once the fiscal 2009 budget 
is passed in the next regular session. The budget incorporates a 
plan to convert tax revenues currently earmarked for road 
maintenance and construction into general spending funds. 
 
Meanwhile, the New Komeito has been seized with the notion of 
convening the extra Diet session in late September, and the party is 
pushing for foregoing a bill extending the New Antiterrorism Special 
Measures Law. 
 
For the New Komeito, it is desirable to call for a Lower House 
election at the beginning of the regular Diet session next January 
in order to have a long interval in between that election and the 
Tokyo Metropolitan assembly election next summer, on which the party 
has placed a priority. LDP Election Strategy Council Chairman Makoto 
Koga has fallen in line with the New Komeito's position. 
 
Ibuki wants Fukuda first gain public support by shuffling the 
cabinet before considering a general election. Although the New 
Komeito ostensibly says that shuffling a cabinet is the prime 
minister's sole prerogative, it has been reluctant toward a cabinet 
shuffle, one official citing: "It would delay the timing of Lower 
House dissolution." Some in the LDP doubt that the New Komeito is 
planning to try to dump Fukuda before the Lower House election. 
 
(5) Frustration growing among lawmakers and bureaucrats 
 
NIKKEI (Page 2) (Abridged) 
July 31, 2008 
 
Prime Minister Yasuo Fukuda did not announce a cabinet shuffle 
yesterday, July 30, disappointing government and ruling party 
executives. A delay in the prime minister's decision has elicited 
voices of bewilderment and frustration from the Kasumigaseki 
bureaucratic district and the capitol district of Nagatacho, with 
one saying, "It's hard to proceed with new projects." 
 
A meeting yesterday of the secretaries general and Diet affairs 
chiefs of the LDP and New Komeito confirmed the policy course of 
handing such outstanding issues as the time of convening the next 
extraordinary Diet session over to the new regime on the assumption 
that the prime minister will shuffle his cabinet in August. But no 
one was certain about the cabinet shuffle. 
 
Representing the LDP officers, Secretary General Bunmei Ibuki later 
in the day called on the prime minister at his office with the aim 
of nailing down the much-talked-about cabinet shuffle. But the prime 
minister simply said, "I will consult with you later." Ibuki could 
not press the prime minister harder. 
 
The LDP leadership is likely to remain paralyzed until the prime 
minister announces a cabinet shuffle and forms a new cabinet. An LDP 
Upper House officer described the series of developments over a 
cabinet shuffle as "much ado about nothing." 
 
TOKYO 00002107  007 OF 013 
 
 
 
Frustrated with Fukuda's excessive caution, an LDP executive also 
complained, saying, "The prime minister has kept us hanging, and we 
cannot make plans. I want to return to my home constituency, but I 
cannot make a decision." 
 
The prime minister's lack of decision has begun taking a toll on 
policy councils as well. For example, the government's National 
Commission on Social Security planned to meet in the week of August 
4, but it might now have to delay that substantially depending on 
when the prime minister shuffles his cabinet. The Council on 
Economic and Fiscal Policy will also effectively remain stalled 
until after the O-bon midsummer holidays. 
 
The impact is not limited to domestic affairs alone. Foreign 
Minister Masahiko Koumura has cancelled his trip to India, Sri 
Lanka, and Uzbekistan from August 1. Although a Foreign Ministry 
official denied any adverse effects, some fear that Japan might have 
lost a golden opportunity to strengthen ties with India, which 
played a major role in the just-ended World Trade Organization trade 
talks. A meeting of the foreign ministers of Japan and five Central 
Asian countries, the first in two years, will also have to be 
rearranged for a later date. 
 
Economic and Fiscal Policy Minister Hiroko Ota is unable to decide 
on her attendance at the First APEC Ministerial Meeting on 
Structural Reform, to be held in Melbourne on August 3-5. 
 
The prime minister has been concealing his true intention from 
private-sector individuals as well. Fukuda attended journalist 
Soichiro Tahara's study meeting yesterday in which the premier was 
advised by the journalist: "If you have to shuffle your cabinet, you 
must take chances. Otherwise the cabinet will lose steam." In 
response, Fukuda nonchalantly said, "What do you mean by 'take 
chances'?" 
 
DPJ cold toward indecisive premier 
 
Opposition parties are also reacting coldly to the turmoil in the 
government and ruling bloc. Democratic Party of Japan Deputy 
President Naoto Kan, attending a workshop held yesterday in Fukuoka, 
criticized Fukuda, saying, "I have never seen such an indecisive 
person. He has yet to make up his mind." President Ichiro Ozawa, in 
a press conference in Sapporo, categorically said: "The LDP 
administration cannot handle the current major issues; the country 
needs a change of government." 
 
(6) Government to assist consolidation of Trans-Siberian Railway to 
cut distribution costs 
 
NIKKEI (Page 1) (Full) 
July 30, 2008 
 
The government in cooperation with the Russian government will 
launch a project to build a distribution network that would 
modernize the Trans-Siberian Railway. Loans by a Japanese 
government-affiliated financial institution and trade insurance will 
be used to modernize the railway, which stretches approximately 
9,300 kilometers across Russia, to help boost train speed, and to 
introduce new trains and a goods-transport system. The assistance 
will aim at speeding up customs clearance with the aim of helping 
companies reduce the time and cost of the distribution of goods. 
 
TOKYO 00002107  008 OF 013 
 
 
Since along the railway there are many special economic zones and 
areas where resources are being developed, the government will 
indirectly be assisting a broad range of Japanese companies, such as 
resource-related, automobiles, high-tech, and distribution, to make 
inroads into these areas. 
 
The initiative to be promoted by the governments of Japan and Russia 
will be called the "Eurasia Industrial Investment Bridge." Under the 
initiative, Tokyo and Moscow will cooperate to develop energy and 
natural resources, as well as to nurture new industries centered on 
the modernization of the railway connecting the Russian Far East and 
Moscow. The Russian government last year proposed a plan to 
modernize the Trans-Siberian Railway by 2030. The total project cost 
will be approximately 69 trillion yen. Private investments from 
foreign countries will also be solicited. 
 
The upgrading of the Trans-Siberian Railway will shorten the length 
of cargo transportation between Moscow and Vladivostok from the 
current two weeks to one week. The main transportation route is now 
an ocean route via Europe. The use of the improved Trans-Siberian 
Railway would shorten the length of cargo transportation by 40 
PERCENT -70 PERCENT . At present the freight rate charged to ship 
via the Trans-Siberian Railway is higher than the freight charge of 
ocean transportation. However, the gap is beginning to narrow due to 
a rise in the cost of ocean transportation due to soaring fuel 
prices. 
 
Japan will offer full support for the initiative. As a first step to 
implementing the plan, both countries in early September will hold a 
bilateral investment forum at the cabinet level in St. Petersburg. 
More than 100 companies from such industrial fields as distribution, 
financial services and automobile manufacturing, not to mention 
resource-related areas, will take part in the conference and discuss 
ways to cooperate in the project. 
 
In modernizing the railway system, bilateral cooperation will focus 
on improving the train operation system, building infrastructure to 
improve train speed and upgrading freight cars and rail beds. 
Chances are that the project could lead to the introduction of train 
cars made in Japan. Japan also will promote investments in the 
numerous economic zones and resource development areas located along 
the railway. The government will help companies advance into Russia 
through financing by the Japan Bank for International Cooperation 
(JBIC) and the use of Japan's trade insurance system. 
 
Japan's trade with Russia in 2007 jumped 55 PERCENT  from the 
previous year's level. Japan mainly imports natural resources, such 
as crude oil and nonferrous metals. As Russia's per-capita income 
increases, its markets are becoming increasingly attractive. 
However, many Japanese companies take the view that transportation 
infrastructure connecting major cities with the Far East remains 
insufficient.  The government, therefore, has decided it needs to 
make more efforts in order to deepen Japan's economic relations with 
that nation. 
 
Once the distribution network becomes more efficient, Russia would 
also find it easier to export such resources as rare metals and 
timber. 
 
(7) U.S. consul general's art of reasoning against reason: 'Racial 
discrimination' against Okinawans; Outspoken to justify base 
presence forced on Okinawa 
 
TOKYO 00002107  009 OF 013 
 
 
 
RYUKYU SHIMPO (Page 17) (Full) 
July 30, 2008 
 
Koya Nomura, professor at Hiroshima Shudo University 
 
According to the Ryukyu Shimpo's article in its July 12 morning 
edition's local news page and its July 13 editorial titled "We don't 
need an American consul general like this," the U.S. consul general 
in Okinawa, Kevin Maher, seems to have hurt the hearts of many 
people in Okinawa again. This is evident from the article that 
reported on the anger and humiliation of people in Okinawa. 
Moreover, I also guess that some of those who read the article 
probably felt discomfort, depressed or helpless, or felt sad. This 
kind of feeling is probably the one that we would have when we are 
discriminated against. 
 
"I wonder," the consul general reportedly said, "why Ginowan City 
allows (housing) construction in the off-base area near the runway" 
of the Futenma base. This remark, as explained in the editorial, is 
tantamount to a logic that goes: "The local residents, who later had 
their houses built near the base on their own, are to blame, and so 
is Ginowan City that allows it. Accordingly, the U.S. military is 
not to blame." This logic is similar to the so-called logic of 
approaching danger, which can be likened to the art of reasoning 
against reason to compel the population of Okinawa to shoulder the 
burden of hosting U.S. military bases. 
 
Reasoning against reason-this is a debating skill of unduly using 
unreasonable logic and holding down someone to forcefully push 
through something unreasonable. Also, the key to the art of 
reasoning against reason is not to listen to what the other person 
is saying. The consul general can say such a thing. That is because 
he ignores serious facts as premises in Okinawa. And his ignorance 
of the facts or his intentional disregarding thereof hurts the 
dignity of Okinawa's people. 
 
In the meantime, many of Okinawa's people were deprived of their 
farmland for U.S. military bases and they were also deprived of even 
their right to live on their landed properties. I'm sure that the 
consul general knows this fact. 
 
In Okinawa, people's property rights have been violated. In 
addition, even their free choice of where to live has been extremely 
restricted. In other words, their fundamental human rights have been 
violated. As a result, many people in Okinawa have had no choice but 
to live in the vicinity of U.S. military bases. Moreover, the U.S. 
military-and none other-has left the Futenma base's danger as is 
against its own safety standards. In short, many of those who live 
around the Futenma base have had no choice but to live "in the 
off-base area near the runway" because of the U.S. military 
presence. Meanwhile, U.S. military personnel and civilian employees 
are almost free to live on or off their bases. 
 
By ignoring the abovementioned serious facts as premises, it is 
possible to set up fictitious premises that are convenient to the 
U.S. military-as if its bases had been built on uninhabited 
wasteland. The conclusion reached by doing so is the consul 
general's remark this time. However, it is nothing but a conclusion 
reached by what is called a "false premise" in logic. A wrong 
premise cannot arrive at a correct conclusion. Accordingly, claiming 
such a conclusion to be correct is also reasoning against reason. 
 
TOKYO 00002107  010 OF 013 
 
 
 
However, any conclusion-if its premise is wrong-is logically not a 
lie. In addition, the consul general says that one of the basics for 
diplomats is not to tell a lie. If that is the case, we might well 
think that he must have knowingly used the art of reasoning against 
reason. In point of fact, the consul general's argument corresponds 
to the logic of "countervailing"-or a specific tactic employed in 
the art of reasoning against reason. In this sense, the consul 
general's remark, which sounded as if he was shifting the blame onto 
Ginowan Mayor Yoichi Iha, can be taken as being intended to offset 
the illegality of U.S. military bases on Okinawa by countervailing 
the mayor's justifiability. 
 
However, the reason why one tries to countervail another person's 
justifiability is because that person acknowledges that 
justifiability. That is a weak point of the logic of countervailing. 
If we logically verify it, contradictions and faults will come out 
of it. That is to say, the consul general, in point of fact, 
acknowledges the justifiability of Mayor Iha, who criticizes the 
U.S. military's violation of its own safety standards for Futenma 
airfield, and the consul general owns up to the U.S. military's 
illegality. Accordingly, it is reasonable to close down the airfield 
as demanded by the mayor. 
 
However, the consul general reemploys his countervailing logic in 
trying to shirk responsibilities by stressing that the U.S. 
government is not authorized to restrict off-base building. But no 
matter how much the consul general underscores that, he cannot 
offset the fact that it is possible enough for the United States to 
close down Futenma airfield within the scope of its on-base 
authority. 
 
In the United States, any base that violates the U.S. military's 
safety standards can never be maintained and can never be allowed to 
exist. In Okinawa, however, the U.S. government forcibly continues 
maintaining a base that must not exist. In other words, the U.S. 
government unconcernedly violates the human rights of Okinawans 
while it can never violate those of Americans. 
 
Such an act is called racial discrimination, isn't it? Forcing U.S. 
military bases on Okinawans is racial discrimination, isn't it? Base 
construction, which is symbolized by "bayonets and bulldozers," is 
racial discrimination, isn't it? In that sense, Mayor Yoichi Iha's 
demand to close down Futenma airfield is also an act of seeking to 
do away with racial discrimination. 
 
Meanwhile, it is probably possible to say that the reason why Consul 
General Kevin Maher hurt the hearts of people in Okinawa is because 
he outspokenly justifies racial discrimination-which is in the form 
of forcing the presence of U.S. military bases on Okinawans-by 
developing his logic of reasoning against reason. The consul general 
also remarked that the Futenma base is not dangerous. This 
reasoning-against-reason logic is also one of his doings that hurts 
the dignity of Okinawans. Anyone reasoning against reason is apt to 
fall into self-contradictions. The consul general says that the 
Futenma base is not dangerous. But he also says that the U.S. 
government will move it. If so, there's no reason, from the 
beginning, to insist on Henoko. It is also possible enough to 
relocate the base elsewhere outside Okinawa Prefecture. 
 
By the way, in 1948, when the construction of U.S. military bases on 
Okinawa was beginning in full swing, Hendrick Verwoerd, who was 
 
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called the farther of apartheid and served as South African prime 
minister, said: "The apartheid policy is a good neighbor policy." 
This is a remark regarding the most notorious racial discrimination 
policy in the world, and it helps shed light on the "good neighbor 
policy" in Okinawa. 
 
(8) DPJ's Okada says, "I do not have strong desire" to run in the 
party's presidential election 
 
NIKKEI (Page 2) (Full) 
July 31, 2008 
 
Democratic Party of Japan (DPJ) Vice President Katsuya Okada said at 
the Japan National Press Club yesterday: "At this time, I do not 
have a strong desire" to run in the presidential election in 
September. It was the first time for Okada to reveal his true 
intention. There has been a strong view in the party calling on him 
to run in the leadership race. Even though the likelihood that 
incumbent President Ichiro Ozawa would be reelected for a third term 
has increasingly become stronger, the focus will likely now be on 
moves by Public Relations Committee Chairman Yoshihiko Noda and 
lawmaker Yukio Edano. 
 
Pointing out that he had resigned from the DPJ presidency in 2005 to 
take responsibility for the party's setback in the House of 
Representatives election that year, Okada said: "I think I should 
restrain myself until the next Lower House election." He added: "I'm 
not sure whether the environment has drastically changed since 2005. 
I think the election will be the same as that in 2005, even if it is 
carried out under my initiative." 
 
Okada commented about Ozawa: 
 
"There is no question that he was the biggest contributor to the 
party's victory in the House of Councillors election. He has been 
doing well since then. However, since the presidential race is an 
opportunity to debate policies, it can be considered as a step 
forward toward the Lower House election." 
 
He indicated that it would be desirable that the election be 
contested by more than one candidate. 
 
Okada answered with "no comment" whenever he has been asked whether 
he would run in the presidential race. With his expression of 
reluctance to run in the election finally made for the first time, 
the possibility is high that moves to field rival candidates against 
Ozawa will likely enter a new phase. 
 
Noda, who has been asked by junior and mid-level lawmakers to run, 
has so far remained silent. However, a group of lawmakers, who wish 
to field rival candidates against Ozawa, will likely ask Noda to 
run. Another group of junior and mid-level lawmakers, who have close 
ties to Vice President Seiji Maehara, is expected to accelerate a 
plan to file him as a candidate. Edano has told persons close to him 
his intention to run in the election if Okada does not. 
 
However, still another group of lawmakers, including the executive 
members, who favor Ozawa's reelection for a third term, is gaining 
momentum. Diet Affairs Committee Chairman Kenji Yamaoka at a press 
briefing yesterday in the city of Oyama, Tochigi Prefecture, 
commented on Okada's remarks: "He is a person with a lot of 
commonsense and thinks of the party." 
 
TOKYO 00002107  012 OF 013 
 
 
 
Deputy President Naoto Kan in a study session he hosted stated 
yesterday: "The party head's post should be assumed by a person who 
is feared by other parties. The LDP is most afraid of Mr. Ozawa." In 
the study session, many participants voiced their views supporting 
Ozawa. Support for Ozawa has grown in a group of lawmakers failing 
from the former Democratic Socialist Party, as well as in a group of 
lawmakers coming from the former Japan Socialist Party. A senior 
party official said: "More than a half of the DPJ Diet members 
support (Ozawa)." 
 
However, Ozawa has yet to announce his candidacy. So, if Ozawa does 
not run, there remains a possibility that Okada might stay in the 
presidential race. When asked by reporters about his comment on 
Okada's remarks, Ozawa just said yesterday in Sapporo: "I'm not in a 
position to make any comment." Asked about when he would announce 
his candidacy, he responded: "I will consider it after the 
mid-August O-Bon holiday break." 
 
(08073103kn) Back to Top 
 
 
(9) BOJ economic outlook for 1998: Economic planning agency director 
general intervenes at policy-setting meeting, claiming "The outlook 
will work as a drag on the economy" 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
July 31, 2008 
 
The Bank of Japan (BOJ) on July 31 for the first time released the 
minutes of its policy-setting meetings. As a result, it was found 
that then Economic Planning Agency Director General Koji Omi 
demanded a revision to its economic outlook at a meeting on April 9, 
1998, in which he took part as the representative of the government. 
It was also learned that the government later demanded the deletion 
of Omi's demand from the summary of the minutes, released on May 22 
the same year, claiming that such a description could be taken as 
the government having lodged an objection. 
 
That was the first time for the BOJ to hold a meeting under the 
amended Bank of Japan Law, which was put into effect in April 1998 
with the aim of securing the independence of the central bank. The 
revelation indicates that since a tense relationship between the BOJ 
and the government had been continuing, the government could have 
infringed on the independence of the BOJ as it had not yet 
familiarized itself with the spirit of the amended law. 
 
The BOJ economic outlook in question noted that the present state of 
the economy was in the negative territory. Omi repeatedly demanded 
that the BOJ steered clear of issuing a report that could obstruct 
economic-stimulus measures taken by the government. 
 
Then BOJ Deputy Governor Sakuya Fujiwara made a rebuttal, saying, 
"Announcements that the BOJ issues are not intended to be a drag on 
the economy." In the end, the BOJ outlook was not revised. 
 
A person who attended a BOJ meeting on May 19 the same year from the 
Economic Planning Agency demanded that Omi's statement be deleted 
from the minutes, claiming that the minutes described as if the 
director general had trampled on the spirit of transparency, 
including the accountability of the BOJ. Omi's demand was then 
deleted, based on the decision made by then BOJ Governor Masaru 
 
TOKYO 00002107  013 OF 013 
 
 
Hayami. 
 
The BOJ is expected to continue releasing minutes covering a 
six-month period every six months. 
 
SCHIEFFER