VZCZCXRO2213
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2123/01 2170152
ZNR UUUUU ZZH
P 040152Z AUG 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6285
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 1561
RUEHFK/AMCONSUL FUKUOKA 9187
RUEHOK/AMCONSUL OSAKA KOBE 2925
RUEHNAG/AMCONSUL NAGOYA 7380
RUEHKSO/AMCONSUL SAPPORO 9770
RUEHBJ/AMEMBASSY BEIJING 4695
RUEHUL/AMEMBASSY SEOUL 0684
RUCNDT/USMISSION USUN NEW YORK 1060

UNCLAS SECTION 01 OF 16 TOKYO 002123 
 
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 08/04/08 
 
Index: 
 
1) Hiroshima peace groups protest remark made by Ambassador 
Schieffer about the dropping of atom bombs saved many more lives by 
ending the war  (Nikkei) 
 
New Fukuda Cabinet: 
2) Cabinet shuffle by Prime Minister Fukuda a shift in gears to face 
a Lower House election, but it also symbolizes a change away from 
reform line  (Akahata) 
3) Average age of the new Fukuda Cabinet is 62, older than the first 
cabinet  (Yomiuri) 
4) Prime Minister Fukuda in press conference denies the possibility 
of an early Diet dissolution, as rumored in the media  (Asahi) 
5) LDP Election Chairman Koga, kept on in his post, retracts earlier 
statement about an early Diet dissolution  (Asahi) 
6) Minister for Economic and Fiscal Policy Yosano to be the control 
tower for Fukuda administration's economic policy  (Nikkei) 
 
Opinion polls: 
7) Cabinet support rate leaps 14.7 points to 41.3 PERCENT  in 
Yomiuri poll, boosted by LDP Secretary General Aso's 66 PERCENT 
popularity  (Yomiuri) 
8) Nikkei poll: Cabinet support rate soars 12 points to 38 PERCENT , 
with LDP support rate outpacing DPJ's, 37 PERCENT  to 33 PERCENT 
(Nikkei) 
9) Mainichi poll shows little change in cabinet support rate, rising 
3 points to 25 PERCENT , with 56 PERCENT  of public not appreciating 
the new lineup  (Mainichi) 
10) Asahi poll after the cabinet shuffle has the support rate at 24 
PERCENT , the same as before, but 51 PERCENT  of the public are 
positive about the Aso appointment  (Asahi) 
 
11) Kyodo poll shows 4.7 point rise in cabinet support rate to 31.5 
PERCENT , but voters would prefer a DPJ-centered government over an 
LDP one, 48.2 PERCENT  to 34.8 PERCENT   (Tokyo Shimbun) 
12) Nikkei poll found Taro Aso the most popular future candidate for 
prime minister, favored by 20 PERCENT  of the voters  (Nikkei) 
 
Diplomatic issues: 
13) Nikkei poll finds 48 PERCENT  of the public favoring a 
withdrawal of the MSDF from its refueling mission in the Indian 
Ocean  (Nikkei) 
14) Fukuda in press conference after cabinet shuffle skirts the 
issue of whether his government would present bill extending MSDF 
refueling in the Indian Ocean  (Tokyo Shimbun) 
15) LDP General Council Chairman Sasagawa cautious about extending 
MSDF's mission in the Indian Ocean  (Tokyo Shimbun) 
16) Fukuda Cabinet to face difficult foreign policy issues with 
U.S., starting with the extension of the MSDF's mission in the 
Indian Ocean  (Nikkei) 
 
Sasebo incident: 
17) Small leak of radiation from U.S. Navy submarine at Sasebo 
occurred in March but went unreported  (Asahi) 
18) Foreign Minister Koumura annoyed, said he saw news of the Sasebo 
sub leak on CNN  (Tokyo Shimbun) 
19) Prime Minister's Official Residence not contacted by the Foreign 
Ministry about the U.S. Navy sub leaking radiation  (Sankei) 
20) Local government officials in Sasebo query Tokyo for reason why 
they were not informed about the U.S. Navy sub leaking radiation in 
their waters  (Nikkei) 
 
TOKYO 00002123  002 OF 016 
 
 
 
Economic agenda: 
21) Fukuda orders comprehensive economic policy measures drawn up 
(Yomiuri) 
22) Government and ruling camp mulling submission of supplemental 
budget during extra Diet to deal with soaring fuel and food prices 
(Nikkei) 
23) Chief Cabinet Secretary Machimura, also retained in the cabinet, 
rules out tax hike next fiscal year  (Sankei) 
24) Major cabinet figures starting to call for need to stimulate the 
now sagging economy  (Yomiuri) 
 
Articles: 
 
1) Sit in at Hiroshima of atomic-bomb victims, foreign 
representatives of peace groups protest remark by U.S. Ambassador to 
Japan justifying the dropping of atomic bombs on Japan 
 
AKAHATA (Page 1) (Full) 
August 4, 2008 
 
(Photo shows a peace groups staging sit in at the Peace Park in 
Hiroshima City with banner reading: "We protest the remark by U.S. 
Ambassador to Japan Schieffer, "Dropping of atomic bombs saved many 
more lives.") 
 
The peace groups, Hiroshima Prefecture Gensuikyou (headed by 
Masanobu Omori) and the Hiroshima Prefecture Hidankyou (headed by 
Kazushi Kaneko), staged a sit in yesterday in front of the memorial 
to atomic bomb victims in the Peace Park in Hiroshima City to 
protest a remark by U.S. Ambassador to Japan Schieffer the dropping 
of atomic bombs on Japan "were necessary to hasten the end of the 
war." The sit in was joined by foreign representatives who had come 
to Hiroshima to attend the 2008 international rally and convention 
to ban nuclear weapons. The sit in was staged in 35 degree heat, 
displaying a banner protesting the statement, "Dropping atomic bombs 
saved many more lives." A protest letter was sent to Ambassador 
Schieffer that went: "The dropping of atomic bombs was in inhuman 
act that violated international law. They cannot be justified for 
any reason whatsoever." 
 
Gensuikyou head Omori said: "The Schieffer remark can be said to be 
an official statement of the U.S. government. It is a major setback 
for the move to ban nuclear weapons." From the foreign visitors, one 
representative said: "With the dropping of the bombs, the Cold War 
started. What Schieffer should do is to seriously study and learn 
that. He should come here and apologize." 
 
The statement by Ambassador Schieffer occurred in a city in Fukuoka 
Prefecture in answer to a question after his lecture to high-school 
students. 
 
2) Fukuda shuffles cabinet, apparently keeping in mind Lower House 
election, picks Aso as secretary general, expecting him to lead LDP 
 
ASAHI (Top Play) (Lead paragraph) 
August 2, 2008 
 
Prime Minister Fukuda launched his new cabinet last night. In 
picking new cabinet members and Liberal Democratic Party executives, 
Fukuda apparently kept in mind the next general election, as seen 
from the selection of Taro Aso as "the poster-boy" for the LDP. In 
 
TOKYO 00002123  003 OF 016 
 
 
terms of policies, as well, he gave priority to such challenges as 
dealing with soaring commodity prices and buoying up the economy, 
shifting his policy priority away from structural reform. Even so, 
unless such a change in his policy course contributes to boost his 
government, he may promptly lose his grip on power and become unable 
to exercise his right to dissolve the House of Representatives. 
 
Fukuda shifts away from reform line 
 
The new lineup shows that the government has turned away from the 
structural policy line that was promoted by the Koizumi and Abe 
administrations. Given skyrocketing gasoline and food prices, 
uncertainty is now looming large over an economic recession. Under 
such a circumstance, the new lineup reflects the government's desire 
to shift to policies that will be favorably taken by the voters, 
with an eye on the next general election. 
 
Finance Minister Ibuki and Economy, Trade and Industry Minister 
Yosano, those responsible for the government's economic and fiscal 
policies, are regarded as advocates of fiscal reconstruction. They 
insist that since expenditure cuts have their limits, discussion of 
a consumption tax hike must be proactively conducted in order to 
strengthen social security and other services for the people. 
 
For the posts related to economic and fiscal policies, Fukuda tapped 
lawmakers who draw a line with market-oriented structural reform 
line, including Land, Infrastructure, and Transport Minister 
Tanigaki. At the outset of a press conference yesterday, Fukuda also 
categorically said: "I would like to come up with a lineup that is 
capable of implementing policies whereby the people can feel the 
improved quality of their lives." 
 
Fukuda also appointed Kosuke Hori as Policy Research Council 
chairman and Seiko Noda as consumer policy minister, both of who 
opposed the privatization of postal services and once bolted the LDP 
but returned to the party under the Abe administration. Among those 
who left the party over the postal issue but returned to it, Hori 
and Noda are the first members who assumed one of the four key party 
posts or joined the cabinet. 
 
Meanwhile, no key post has been given to former Secretary General 
Hidenao Nakagawa, who supported the Koizumi and Abe administration 
and insisted on the need to give priority to economic growth and 
spending cuts. Former Administrative Reform Minister Yoshimi 
Watanabe and former Economic and Fiscal Policy Minister Hiroko Ota 
are said to have views close to Nakagawa's, but both have also left 
the cabinet. 
 
Attributing the ruling camp's crushing defeat in the House of 
Councillors election in July of last year to the structural reform 
policy line, many ruling members were calling on Fukuda to change 
his policy course. Even while giving consideration to the 
side-effect of reform, the prime minister has continued to raise the 
slogan of reform out of fear about a further drop in public support 
for his cabinet. But in the run-up to a general election, he seems 
to have taken one step toward a policy change in term of lineup, 
first. 
 
3) Average age of ministers 62: Five first-time ministers 
 
YOMIURI (Page 4) (Excerpts) 
August 2, 2008 
 
TOKYO 00002123  004 OF 016 
 
 
 
Average age higher than that of previous cabinet 
 
The average age of newly appointed ministers, including Prime 
Minister Fukuda, is 62, which is higher than the previous cabinet's 
60.2. This is because priority has been given to the appointments of 
experienced veterans. The oldest minister is the prime minister at 
72, followed by Finance Minister Ibuki, 70. The youngest are State 
Minister in charge of Consumer Affairs Noda and Defense Minister 
Hayashi. Both are 47 years old. 
 
One from private sector 
 
There are five first-time ministers, compared with one in the 
previous cabinet. The number of ministers from the private sector 
decreased from two to one. 
 
Distribution of cabinet posts 
 
 Abe cabinet Shuffled Abe cabinet Fukuda cabinet Shuffled Fukuda 
cabinet 
Machimura faction 4 1 2 2 
Tsushima faction 2 3 4 1 
Koga faction 4 2 2 3 
Yamasaki faction 1 2 2 2 
Ibuki faction 2 1  1 
Aso faction 1   1 
Nikai faction  1 1 1 
Koumura faction 1 1 1 1 
Independent  3 2 3 
New Komeito 1 1 1 1 
Private sector 1 2 2 1 
 
4) Fukuda denies early Lower House dissolution, playing up plan to 
implement policies 
 
ASAHI (Page 4) (Lead paragraph) 
August 2, 2008 
 
After shuffling the LDP executive lineup and his cabinet, Prime 
Minister Yasuo Fukuda held a press conference at the Prime 
Minister's Official Residence (Kantei) on the night of August 1. 
Asked whether he would dissolve the Lower House for a snap general 
election under the new cabinet lineup, Fukuda ruled out an early 
Diet dissolution, revealing a plan to give top priority to 
implementing policies. He said: "The socioeconomic situation is such 
that policies must be implemented rather than talking about Lower 
House dissolution. The situation does not allow me to consider 
dissolving the Lower House immediately." 
 
5) Koga retracts statement on early Lower House dissolution 
 
ASAHI (Page 2) (Full) 
August 4, 2008 
 
In a speech in Omuta City, Fukuoka Prefecture yesterday, Makoto 
Koga, the Liberal Democratic Party's Election Committee chairman, 
said: "If the Lower House is dissolved for a snap election under the 
current situation, the outcome may be disastrous. In order for the 
ruling coalition to win the election, the sole way is to make 
efforts to get the people to realize that the cabinet will put them 
at ease." 
 
TOKYO 00002123  005 OF 016 
 
 
 
On the timing for dissolving the House of Representatives, Koga had 
echoed the New Komeito's insistence on late this year or early next 
year, but he said in the speech: "I had said until recently sometime 
between late this year or early next year, but I have to change the 
remark into one suggesting sometime very close to the expiration of 
the members' term." He indicated that time is needed to work out 
economy-boosting measures following the shuffle of the cabinet. 
 
6) Yosano to serve as control tower for economic policy: Distancing 
himself from those who attach importance to economic growth; 
Appointment of former postal rebels likely to dim Koizumi reform 
policy 
 
NIKKEI (Page 3) (Excerpts) 
April 2, 2008 
 
Former Chief Cabinet Secretary Kaoru Yosano, who is well-versed in 
policy matters, has assumed the post of state minister in charge of 
economic and fiscal policy. He will once again play the role of the 
central command of economic policy as the fixer of the Council on 
Economic and Fiscal Policy, whose presence has been declining as the 
ruling parties and government agencies increase pressure. 
 
He is expected to play a leading role in the management of the 
economy in cooperation with Secretary General Taro Aso, with whom he 
has a deep relationship of trust. 
 
Since he is a prominent advocate of fiscal reconstruction, he will 
likely firmly maintain the government goal of putting the primary 
balance back into the black. 
 
Regarding the tax code, he has called for concrete discussions of a 
hike in the consumption tax. Bunmei Ibuki, who took office as 
finance minister and has previously served as the chairman of the 
subcommittee of the Liberal Democratic Party Tax System Research 
Commission, is also known as an advocate of fiscal reconstruction. 
This could affect discussions of reforming the tax code starting in 
the fall. 
 
Kosuke Hori, who took office as Policy Research Council, is an 
influential figure among education and agriculture policy experts in 
the Diet, who are calling for a positive increase in expenditures. 
 
Aso during a press conference said, "Economic stimulus measures are 
a key policy that would lead to buoying up the administration." 
 
Among those who attach importance to economic growth and are in 
confrontation with Yosano over the restoring of fiscal health is 
Toshihiro Motegi, who holds the post of state minister for 
administrative reform. However, former Secretary General Hidenao 
Nakagawa, leader of those calling for economic growth, has again not 
been given a cabinet post. 
 
Yosano is negative toward the idea of increasing tax revenues 
through higher economic growth, as called for by Nakagawa. He is 
also cautious about implementing more thorough administrative 
reform. Some take the view that the stand of those who want to 
maintain the Koizumi reform policy line will now become difficult to 
promote. 
 
7) Spot poll: Cabinet support rebounds to 41 PERCENT 
 
TOKYO 00002123  006 OF 016 
 
 
 
YOMIURI (Top play) (Abridged) 
August 3, 2008 
 
The Yomiuri Shimbun conducted a telephone-based nationwide public 
opinion survey from the evening of Aug. 1 through Aug. 2, in which 
the rate of public support for the new cabinet of Prime Minister 
Fukuda was 41.3 PERCENT  and the nonsupport rate was 47.0 PERCENT . 
The figures cannot be compared simply with those in the past surveys 
but changed for the better from the 26.6 PERCENT  approval rating 
and the 61.3 PERCENT  disapproval rating in this July's face-to-face 
survey taken July 12-13. Fukuda appointed Taro Aso to the post of 
secretary general for his ruling Liberal Democratic Party. In the 
survey, respondents were asked if they supported this appointment. 
To this question, "yes" totaled 66 PERCENT . The figure shows that 
public expectations for improving the ability to carry out policy 
measures with the appointment of a heavyweight pushed up public 
support for the Fukuda government. 
 
In the breakdown of public support for political parties, the LDP 
stood at 35.1 PERCENT , with the leading opposition Democratic Party 
of Japan (Minshuto) at 24.6 PERCENT . The figures showed no marked 
changes from this July's face-to-face survey (27.2 PERCENT  for the 
LDP, 18.8 PERCENT  for the DPJ). 
 
8) Poll: Cabinet support rises to 38 PERCENT 
 
NIKKEI (Page 1) (Abridged) 
August 4, 2008 
 
The Nihon Keizai Shimbun and TV Tokyo conducted a joint spot poll on 
Aug. 2-3 in the wake of Prime Minister Yasuo Fukuda's shuffling of 
his cabinet. In the poll, the rate of public support for the new 
Fukuda cabinet was 38 PERCENT , up 12 percentage points from the 
last poll taken in late June. The nonsupport rate was 49 PERCENT . 
It still remains high but was down 14 points from the last survey. 
The public saw the new Fukuda cabinet as an ability-oriented one. 
This apparently had a favorable impact on the support rate. The 
ruling Liberal Democratic Party stood at 37 PERCENT  in public 
support, up 1 point. The leading opposition Democratic Party of 
Japan (Minshuto) was at 33 PERCENT , down 2 points. 
 
The LDP outstripped the DPJ for the second time in a row. The gap 
between the two parties was 1 point in the last survey but increased 
to 4 points in the latest poll. 
 
The survey was taken by Nikkei Research Inc. by telephone on a 
random digit dialing (RDD) basis. For the survey, samples were 
chosen from among men and women aged 20 and over across the nation. 
A total of 1,402 households with one or more eligible voters were 
sampled, and answers were obtained from 856 persons (63.8 PERCENT 
). 
 
9) Poll: Cabinet support up 3 points to 25 PERCENT 
 
MAINICHI (Top play) (Abridged) 
August 3, 2008 
 
In the wake of Prime Minister Yasuo Fukuda's shuffling of his 
cabinet and his ruling Liberal Democratic Party's executive lineup, 
the Mainichi Shimbun conducted a telephone-based spot nationwide 
public opinion survey on Aug. 1-2. The rate of public support for 
 
TOKYO 00002123  007 OF 016 
 
 
the new Fukuda cabinet, which was formally launched yesterday, was 
25 PERCENT , up 3 percentage points from the last survey conducted 
in July. In the survey, respondents were asked if they would 
positively evaluate the Fukuda cabinet's new lineup and the LDP's. 
To this question, 56 PERCENT  answered "no." Respondents were also 
asked if they thought that the cabinet shuffle clearly showed 
Fukuda's political philosophy, and 72 PERCENT  answered "no." The 
figures show that the cabinet and LDP shuffles did not necessarily 
lead to boosting the Fukuda government. 
 
The nonsupport rate for the new Fukuda cabinet was 52 PERCENT , a 
decrease of 2 points from the last survey. The proportion of those 
"not interested" was 21 PERCENT , remaining the same as in the last 
survey. 
 
In the breakdown of public support for political parties, the LDP 
stood at 24 PERCENT , up 2 points. The leading opposition Democratic 
Party of Japan (Minshuto) was also at 24 PERCENT , down 1 point. 
However, 46 PERCENT  chose the DPJ, with 31 PERCENT  picking the 
LDP, when asked which political party between the LDP and the DPJ 
they would like to see win in the next election for the House of 
Representatives. The gap between the LDP and the DPJ has narrowed 
from 27 points in a survey taken in May when the government's newly 
introduced healthcare system for the elderly came under attack. It 
also narrowed from 21 points in the last survey. 
 
10) Poll: Cabinet support levels off at 24 PERCENT 
 
ASAHI (Top play) (Abridged) 
August 3, 2008 
 
In the wake of Prime Minister Fukuda's shuffling of his cabinet, the 
Asahi Shimbun conducted a telephone-based spot nationwide public 
opinion survey on Aug. 1-2. The approval rating for the new Fukuda 
cabinet was 24 PERCENT , remaining unchanged from the 24 PERCENT 
rating in the last survey taken July 12-13. The disapproval rating 
was 55 PERCENT  (58 PERCENT  in the last survey). Fukuda appointed 
Taro Aso to the post of secretary general for his ruling Liberal 
Democratic Party. In the survey, 51 PERCENT  supported this 
appointment, with 29 PERCENT  saying they do not. 
 
Respondents were also asked which political party they would vote 
for in their proportional representation blocs if they were to vote 
now in an election for the House of Representatives. To this 
question, 25 PERCENT  chose the LDP, with 32 PERCENT  preferring the 
leading opposition Democratic Party of Japan (Minshuto). In this 
June's survey, the LDP was at 23 PERCENT , with the DPJ scoring 36 
PERCENT . The gap between the two parties has narrowed. However, the 
DPJ is still above the LDP. 
 
In the breakdown of public support for political parties, the LDP 
stood at 23 PERCENT  (26 PERCENT  in the last survey), with the DPJ 
at 22 PERCENT  (24 PERCENT  in the last survey). 
 
11) Kyodo News opinion poll finds 31 PERCENT  support for shuffled 
Fukuda cabinet. But 48 PERCENT  of public prefer a DPJ-centered 
administration 
 
TOKYO SHIMBUN (Top play) (Full) 
August 3, 2008 
 
With Prime Minister Yasuo Fukuda's shuffle of his cabinet and the 
 
TOKYO 00002123  008 OF 016 
 
 
Liberal Democratic Party (LDP) executive posts, Kyodo News carried 
out a telephone-based nationwide spot public opinion survey from the 
evening of Aug. 1 through Aug. 2. The poll showed the support rate 
of the new cabinet to be 31.5 PERCENT , a 4.7 PERCENT  rise from the 
previous poll in July. The non-support rate for the cabinet dropped 
5.4 points to 48.1 PERCENT . On the other hand, regarding the 
framework of the administration preferred by the public, close to 
half or 48.2 PERCENT  said they favored a Democratic Party of Japan- 
(DPJ) centered one, an increase of 2.9 points from July, while only 
34.8 PERCENT  supported an LDP-centered administration, a drop of 
3.6 points. 
 
Although the appointment of Taro Aso as LDP secretary general and a 
strong cabinet made up of veteran lawmakers received a certain level 
of appreciation, the poll still showed that the public is 
increasingly seeking a change in administration. Prime Minister 
Fukuda is likely to continue to be forced to run his government 
under severe circumstances. 
 
Asked about the lineup in the new cabinet, 37.9 PERCENT  of the 
public picked the answer, "They do not project anything different." 
Only 3.7 PERCENT  chose, "It is a fresh cabinet, not fettered by 
factions." A small percentage, 7.7 PERCENT , chose, "I sense there 
is an eagerness to carry out reforms." 
 
As for party-support rates, the LDP and DPJ in the last survey were 
dead even at 28.6 PERCENT , but this time, the DPJ increased to 30.2 
PERCENT , while the LDP remained the same at 28.7 PERCENT . 
 
On the extension of the Maritime Self-Defense Force's (MSDF) 
refueling mission in the Indian Ocean, a hot issue in the upcoming 
extra Diet session, a majority or 52.4 PERCENT  said they opposed 
such a bill, while another 34 PERCENT  said they approved it. When 
asked when they expected the Lower House election to be held, 37.6 
PERCENT  thought it would be later this year. 
 
As for reasons for supporting the Prime Minister the most favored 
answer with 45.7 PERCENT  was, "There is no other appropriate person 
around." The most favored reason for not supporting the Prime 
Minister, with 32.6 PERCENT , was the answer, "I have no 
expectations of his economic policies." As for the agenda of the new 
cabinet, the most picked choice (29 PERCENT ) was "economy and 
jobs," followed by "social security, including pensions" (28.6 
PERCENT ), and then by "income disparity issue" (11.5 PERCENT ). 
 
Support rates for parties other than the LDP and DPJ: the New 
Komeito had 3.4 PERCENT ; the Japanese Communist Party had 2.9 
PERCENT ; the Social Democratic Party, 1.7 PERCENT ; Peoples New 
Party, 0.5 PERCENT , and New Party Japan, 0.7 PERCENT . 
 
12) Aso ranks first at 20 PERCENT  in popularity ranking for 
post-Fukuda premiership 
 
NIKKEI (Page 2) (Full) 
August 4, 2008 
 
In a recent spot poll conducted by the Nihon Keizai Shimbun and TV 
Tokyo, respondents were asked who they thought would be appropriate 
for prime minister in the future. To this question, Taro Aso, the 
new secretary general of the ruling Liberal Democratic Party, ranked 
first at 20 PERCENT . The same question was asked in a survey taken 
in May, and Aso topped all others at 21 PERCENT  in that survey. He 
 
TOKYO 00002123  009 OF 016 
 
 
has now become LDP secretary general. Its effects did not show in 
the survey this time, but he is still above all others. 
 
Former Prime Minister Junichiro Koizumi ranked second at 13 PERCENT 
, followed by Ichiro Ozawa, president of the leading opposition 
Democratic Party of Japan (Minshuto), at 10 PERCENT . Koizumi and 
Ozawa stood at the same rankings and popularity ratings as in the 
May survey. Prime Minister Yasuo Fukuda rose from 4 PERCENT  in May 
to 8 PERCENT  in the latest survey. 
 
DPJ Vice President Naoto Kan was at 8 PERCENT . Land, Infrastructure 
and Transport Minister Sadakazu Tanigaki and former DPJ President 
Katsuya Okada were at 5 PERCENT , followed by former Defense 
Minister Yuriko Koike at 4 PERCENT . 
 
13) Poll: 48 PERCENT  opposed to continue MSDF mission in Indian 
Ocean 
 
NIKKEI (Page 2) (Full) 
August 4, 2008 
 
The Nihon Keizai Shimbun conducted a joint spot poll with TV Tokyo 
in the wake of Prime Minister Yasuo Fukuda's shuffling of his 
cabinet. In the survey, respondents were asked if Japan should 
continue the Maritime Self-Defense Force's current refueling mission 
in the Indian Ocean after the Antiterrorism Special Measures Law 
expires in January next year. To this question, 48 PERCENT  answered 
that the MSDF mission there should be discontinued then, with only 
36 PERCENT  saying it should be continued. The government plans to 
revise the law at the next extraordinary Diet session to extend the 
MSDF mission. However, the opposition parties are opposed to the 
legislation. There are also cautious views in New Komeito, the 
ruling Liberal Democratic Party's coalition partner. 
 
In a previous poll taken in December 2007 after the MSDF was 
temporarily recalled from the Indian Ocean, 44 PERCENT  said Japan 
should not resume the MSDF's Indian Ocean refueling mission, with 39 
PERCENT  saying Japan should resume it. 
 
14) Prime Minister Fukuda in press conference did not mention 
whether bill extending MSDF refueling mission would be presented to 
the Diet or not 
 
TOKYO SHIMBUN (Page 2) (Excerpt) 
August 2, 2008 
 
Prime Minister Yasuo Fukuda in his press conference at the official 
residence following his shuffling of his cabinet, stated his view 
that it was necessary to extend the refueling mission of the 
Maritime Self-Defense Force (MSDF) in the Indian Ocean: "We cannot 
ignore a problem which has cause great losses for concerned 
countries." On the other hand, on the question of whether he would 
be presenting a bill to the extraordinary session of the Diet this 
fall extending the anti-terrorism special measures law, he avoided 
mentioning anything specific, only saying, "We are considering the 
specific handling of this, so we are not at the stage of my 
announcing anything." 
 
15) Sasagawa cautious about refueling operation in Indian Ocean 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 4, 2008 
 
TOKYO 00002123  010 OF 016 
 
 
 
The New Antiterrorism Special Measures Law, the law that serves as 
the basis for the Maritime Self-Defense Force's (MSDF) refueling 
operation in the India Ocean, expires in January next year. Takashi 
Sasagawa, General Council chairman of the Liberal Democratic Party 
(LDP), during a Fuji TV talk show on August 3 indicated a cautious 
stance toward an extension of the law, noting, "The Democratic Party 
of Japan (DPJ or Minshuto) is not opposing Japan taking measures to 
ensure the safety of oil coming from Arab countries, and it is 
necessary for MSDF vessels to do that job. There may be a gap 
between this job and refueling operations." 
 
Sasagawa stressed that it would be difficult to obtain the public's 
understanding regarding continuing the refueling operation when 
crude oil prices are surging. He said, "The domestic situation this 
year is completely different from the situation last year." 
 
16) Fukuda administration's foreign policy faces difficulty in 
relations with U.S.; Takeshima, too, remains contentious issue 
 
NIKKEI (Page 2) (Abridged) 
August 2, 2008 
 
The new Fukuda cabinet has been launched bearing a heavy workload on 
the diplomatic front, as well. In particular, the administration 
faces a number of difficult problems in relations with the United 
States, such as extending the Maritime Self-Defense Force's (MSDF) 
refueling mission in the Indian Ocean. The standoff with South Korea 
over the Takeshima (Dokdo) isles, as well, shows no sign of abating. 
With the appointment of Taro Aso as Liberal Democratic Party (LDP) 
secretary general, who has a different foreign policy line than 
Prime Minister Fukuda, some observers are worried whether the two 
will be able to cooperate. 
 
"Next January, we will likely face a big crisis in our Asia 
diplomacy, centering on our relations with the United States," said 
a senior Foreign Ministry official, echoing the views of others in 
the ministry who see the Fukuda administration's relationship with 
the U.S. as a spark ready to ignite. In addition to the refueling 
services in the Indian Ocean which expire by law in January, there 
is no prospect in sight for dispatching the Self-Defense Forces to 
mainland Afghanistan, as the government had been considering. 
 
The U.S. is in a political season culminating in November with the 
presidential election and the inauguration of a new administration 
next January. A government source spoke for many others by stating, 
"If the refueling mission is withdrawn, and the contribution planned 
for the Afghan mainland is not in train, Japan-U.S. relations by the 
end of this year will likely to grow ugly." 
 
The standoff between Japan and the Republic of Korea over the 
Takeshima issue, too, is filled with the danger of undermining the 
entirety of Fukuda's Asia diplomacy. This fall, there is supposed to 
a summit meeting held in Tokyo between Japanese and South Korean 
leaders, the first for the two in Japan. But according to a 
diplomatic source connected to the bilateral relationship, there is 
a possibility that "South Korean President Lee could possibly cancel 
his trip to Japan." The confrontation between Japan and the ROK 
could impact adversely on their policy cooperation toward North 
Korea. 
 
17) U.S. submarine leaked radiation since its port call at Sasebo in 
 
TOKYO 00002123  011 OF 016 
 
 
March; level not harmful 
 
ASAHI (Page 1) (Abridged) 
Evening, August 2, 2008 
 
Washington 
 
The U.S. Navy announced on August 1 that there was a possibility 
that the USS Houston, a Los Angeles-class fast attack submarine, 
leaked minute amounts of radiation for several months, including 
during its port call at Sasebo, Nagasaki Prefecture, in March and 
April and its navigation in waters around Japan. 
 
U.S. CNN reported on the matter, and the U.S. Navy public relations 
office confirmed the fact in the Asahi Shimbun's question about it. 
The level of leakage is so low that there is no danger of causing 
any damage but for the maintenance of transparency, the U.S. Navy 
notified the Japanese government of the fact on July 31, U.S. 
Eastern time, according to the U.S. Navy public relations office. 
The U.S. Navy also notified the fact to Guan and Hawaii where the 
submarine visited in May. 
 
The radiation leak was found during the Houston's regular inspection 
on July 17 in which about 1 gallon (about 3.8 liters) of water 
splashed on the feet of one crewmember when it came through a valve 
near the sub's engine room. The water was not in direct contact with 
the nuclear reactor. 
 
The U.S. Navy explained that the crewmember who was exposed to the 
water, proved to be unaffected and that the amount of leaked 
radiation was estimated at 0.5 micro-curie at the most -- the level 
equivalent to being exposed to a 50 pounds (22 kilograms) of plant 
fertilizer (in daily life). 
 
18) Koumura learned of U.S. submarine radiation leak through CNN 
report; Harshly raps administrative officers 
 
TOKYO SHIMBUN (Page 1) (Full) 
August 3, 2008 
 
A Foreign Ministry department was notified on August 1 by the U.S. 
side on the leak of radiation from the USS Houston, the 
nuclear-powered submarine that had docked in Sasebo, Nagasaki 
Prefecture. But the office did not report the matter to Prime 
Minister Yasuo Fukuda, Foreign Minister Masahiko Koumura, Defense 
Ministry, and other nerve centers of the government, it was learned 
on August 2. Chief Cabinet Secretary Nobutaka Machimura in a press 
conference expressed strong displeasure, saying: "It was pretty bad. 
It was about radiation. The office should have announced it 
immediately." 
 
The Foreign Ministry was notified of the matters from the U.S. 
government on the afternoon of August 2. A Foreign Ministry official 
explained, "We judged the amount of radiation would not have any 
impact on humans or the environment." When the Houston docked in 
Japanese ports in March and April, no abnormal figures were detected 
in radiation examinations. For this reason, the Foreign Ministry 
kept the information to itself without reporting it to other 
government offices and municipalities concerned, such as Sasebo. 
 
Koumura learned of the matter through a CNN television report on the 
morning of August 2. After seeing the report, Koumura reportedly 
 
TOKYO 00002123  012 OF 016 
 
 
immediately confirmed the fact with administrative officials. 
Koumura harshly criticized the ministry's inappropriate handling of 
the matter, saying: "I ordered the ministry to announce such 
information immediately. It should have been made public much 
earlier." 
 
19) Foreign Ministry failed to report U.S. submarine's radiation 
leak to Kantei 
 
SANKEI (Page 1) (Full) 
August 3, 2008 
 
The Foreign Ministry failed to report to Foreign Minister Masahiko 
Koumura and the Prime Minister's Official Residence (Kantei) the 
information it had obtained that the U.S. Navy nuclear-powered 
submarine USS Houston that had docked in Sasebo, Nagasaki 
Prefecture, in late March leaked a small amount of radiation, it was 
learned yesterday. Foreign Minister Koumura in a press conference 
yesterday harshly criticized the Foreign Ministry's office that had 
been responsible for the matter. 
 
Koumura learned of the radiation leak through a CNN television 
report yesterday morning. The Foreign Ministry department that 
received the information on August 1 from the United States 
reportedly did not make it public, judging that the amount of 
radiation leaked was low that would not have any impact on humans. 
Koumura expressed a strong sense of displeasure, saying: "The office 
should have announced it much earlier. (Whether the amount was 
minute or not) was not the rightful reason (not to make the 
information public). It is simply unacceptable." 
 
Chief Cabinet Secretary Nobutaka Machimura, too, in a news 
conference yesterday, called for speedy reporting to the Kantei, 
saying: "It is pretty bad. It's about radiation. Once the Foreign 
Ministry is notified by the U.S. government, it should report the 
matter immediately to the Kantei to make it public." 
 
According to the U.S. Navy, the nuclear-powered submarine had been 
leaking minute amounts of radiation for several months since March. 
The leak was found in a regular inspection on July 16. The submarine 
had docked in Sasebo for a week. It also visited Guam and Hawaii. 
 
20-1) U.S. base-hosting municipalities becoming distrustful of 
Japanese government that failed to report on U.S. submarine's 
radiation leak 
 
NIKKEI (Page 11) (Full) 
Evening, August 2, 2008 
 
A radiation leak by a U.S. Navy nuclear-powered submarine has come 
to light through a CNN television report. Was the government's 
communication system functioning properly? Residents of Sasebo, 
Nagasaki Prefecture, are becoming distrustful of the government, 
because it failed to announce the fact. 
 
The Japanese government was notified on August 1 by the U.S. side 
about the leak. But the information on the leak did not reach Sasebo 
until a news program reported it. Masahide Haraguchi, the 
59-year-old head of Sasebo city's bureau in charge of U.S. military 
base programs, said: "I wonder why the Foreign Ministry didn't tell 
local communities after it learned of the incident. I wish they had 
handled the matter properly even if the leak was not problematic." 
 
TOKYO 00002123  013 OF 016 
 
 
 
Mayor Tsuneo Chinen of Uruma, Okinawa Prefecture, where the USS 
Houston, the nuclear-powered submarine that leaked radiation, docked 
for a short period of time, also expressed concern, saying: "The 
matter is too serious to overlook. Radiation must not be leaked, 
even a minute amount." 
 
According to the Okinawa Prefecture base affairs department, the 
Huston docked in the U.S. Navy base of White Beach for 24 minutes on 
March 12 replenishing supplies. The level of radiation in an 
inspection conducted at that time was reportedly normal. 
 
The nuclear-powered aircraft carrier George Washington is scheduled 
to be deployed at Yokosuka, Kanagawa Prefecture. Yokosuka base 
affairs division director Masashi Suzuki said: "(As of August 2), 
there has been no notice. I think there will be an explanation of 
some sort, but we won't know anything until we hear an 
explanation." 
 
20-2) Japan, U.S. required to mutually report on radiation accidents 
during port calls in Japan 
 
NIKKEI (Page 11) (Full) 
Evening, August 2, 2008 
 
When U.S. nuclear-powered vessels enter Japanese ports, Japan and 
the United States are required to sample air and seawater in order 
to check the level of radiation and to report to each other swiftly 
when an accident occurs. 
 
When U.S. nuclear-powered vessels enter, leave, or are docked at 
Japanese ports, such as Sasebo, the Japanese side also checks air 
and seawater to detect possible radiation leaks by using radiation 
measuring instruments set at bases and their vicinity. The 
Education, Science and Technology Ministry collects seawater and 
seabed mud by using Japan Coast Guard radiation research vessels to 
find any anomalies. However, Japan is reportedly not allowed to 
conduct onboard inspections from the perspective of protecting 
military secrets. 
 
After a U.S. nuclear-powered submarine left Yokosuka port in 
September 2006, a minute amount of Cobalt 60, a radioactive 
substance, was detected in seawater collected by the Japanese side. 
But the U.S. Navy concluded that there was no problem aboard the 
submarine. 
 
21) Fukuda to instruct Yosano today to produce comprehensive 
economic package this week 
 
YOMIURI (Page 2) (Full) 
August 4, 2008 
 
Prime Minister Fukuda will call in Minister of Economy, Trade and 
Industry Yosano to the Prime Minister's Office this morning to 
instruct him to produce a package of comprehensive economic measures 
this week to cope with skyrocketing oil and food prices and an 
economic slowdown. 
 
Fukuda will order Yosano to compile a policy package to quickly 
erase public uneasiness and dissatisfaction about price hikes and 
other problems, as well as to sweep away people's concern about the 
economy. The package is likely to include measures to boost aid to 
 
TOKYO 00002123  014 OF 016 
 
 
small businesses and to industries related to agriculture, forestry 
and fisheries, which are suffering from the recent steep rise of oil 
prices. The package is also expected to include measures to promote 
energy conservation and new energy. 
 
As key points in drawing up measures, the following three points 
will bepQQLQxQl or stopgap measures; 
and (3) maintain the policy of keeping fiscal soundness, as well as 
promote examining government disbursements and reviewing the special 
accounts simultaneously. 
 
22) Government, ruling parties now looking into submitting 
supplementary budget to upcoming extraordinary Diet session as 
measure to address soaring crude oil, food prices 
 
NIKKEI (Page 1) (Full) 
August 4, 2008 
 
The government and the ruling camp yesterday started looking into 
the possibility of submitting a supplementary budget for the current 
fiscal year to the upcoming extraordinary Diet session. Their 
judgment is that it will be necessary to make fiscal disbursements 
in a flexible way in order to cope with soaring crude oil and food 
prices and a slowing domestic economy. With the next Lower House 
election in mind, some in the ruling parties are calling for 
large-scale fiscal disbursements so as to demonstrate their stance 
of attaching importance to the economy. This will likely generate 
vigorous discussions about the scale and specifics of fiscal 
disbursements. 
 
Referring to the possible compilation of a supplementary budget, 
Chief Cabinet Secretary Nobutaka Machimura during a TV program that 
day noted, "Such a judgment must be made at the appropriate time. We 
will do whatever necessary during the extraordinary session in a 
flexible manner." Appearing on another TV talk show, he said, "We 
are ready (to compile a supplementary budget), if necessary." 
 
Finance Minister Bunmei Ibuki also noted, "The government will use 
the budget ahead of schedule to implement measures to boost the 
economy." He then indicated the government policy of looking into 
compiling a supplementary budget, saying that it would make efforts 
to implement the budget for the current fiscal year ahead of 
schedule and consider what to do, when it is used up. 
 
Concerning specifics to be incorporated in a supplementary budget, 
the finance minister said that the focus will be on measures to 
address soaring crude oil prices. He noted, "The first thing we 
should do is to take emergency individual measures for businesses 
that cannot pass higher costs along to consumers, such as farmers, 
commercial fishermen, livestock farmers and the trucking industry." 
Environment Minister Tetsuo Saito (New Komeito) pointed out, "All 
policy measures, including fiscal disbursements, should be fully 
mobilized." 
 
Machimura said, "It is questionable whether the situation now 
requires tax cuts and a substantial increase in spending. Measures 
that greatly deviate from the government policy of bringing the 
primary balance into the black by fiscal 2011 should not be taken." 
He thus indicated a cautious stance toward large-scale fiscal 
disbursements that could lead to a change in the fiscal 
reconstruction policy line. 
 
TOKYO 00002123  015 OF 016 
 
 
 
23) Hiking consumption tax next fiscal year difficult, says Chief 
Cabinet Secretary Machimura; Unavoidable over mid- to long-term 
 
SANKEI (Page 1) (Full) 
August 4, 2008 
 
Chief Cabinet Secretary Nobutaka Machimura, appearing on NHK and TV 
Asahi talk shows on August 3, indicated a negative view on a hike in 
the consumption tax in fiscal 2009. He said, "The economy is showing 
signs of losing steam. Given the current economic situation, it 
would be rather difficult to decide to raise the consumption tax in 
the tax code revision for next year." 
 
Concerning the issue of raising the state contribution to the basic 
pension to 50 PERCENT  starting in fiscal 2009, Machimura pointed 
out, "It must be implemented, because the increase is stipulated by 
law." Regarding fiscal resources to finance the increase, he 
indicated his perception that it would be possible to finance the 
increase using reserves in the special account. 
 
He also said, "The public expects improved social security and solid 
measures to ensure that. It is necessary to indicate a mid-term 
vision to the public." He thus indicated that it raising the 
consumption tax over the medium term will be unavoidable. 
 
Referring to measures to address rising prices in the wake of the 
steep rise in crude oil prices and the economic slowdown, Finance 
Minister Bunmei Ibuki on an NHK talk show of the same day said, "We 
will implement the budget ahead of schedule in order to boost the 
economy." He thus indicated that the government will deal with those 
issues by implementing the fiscal 2008 budget ahead of schedule for 
the time being. He at the same time indicated his stance of looking 
into a possible compilation of a supplementary budget, saying, "We 
must consider what do to when the budget is used up." 
 
Machimura also stated, "We will take measurers in the extraordinary 
Diet session in a flexible manner, if necessary." 
 
24) Major cabinet ministers insist on need for economic stimulus 
measures 
 
YOMIURI (Page 2) (Full) 
August 4, 2008 
 
Appearing on NHK and commercial TV programs yesterday, major members 
of the shuffled Fukuda cabinet reiterated the need for 
economy-spurring measures to deal with soaring oil and food prices, 
as well as economic slowdown. 
 
Finance Minister Ibuki indicated a positive view about compiling a 
supplementary budget in a NHK program, saying: "Upon working out 
economic stimulus measures, the government will have to come up with 
additional steps." Chief Cabinet Secretary Machimura also commented: 
"We will flexibly take measures if necessary during the 
extraordinary Diet session." 
 
On the scale of fiscal disbursements, Land, Infrastructure, and 
Transport Minister Tanigaki said: "There is room to come up with 
something other than fiscal disbursements." But Environment Minister 
Saito asserted: "Fiscal disbursements and measures that need no 
money should be fully employed." 
 
TOKYO 00002123  016 OF 016 
 
 
 
Asked about a consumption tax hike, Machimura stated: "Since there 
are signs of an economic slowdown, it might be difficult to decide 
to raise the consumption tax in FY2009." 
 
Regarding the proposed constraint of growth in spending on social 
security to 220 billion yen in the budgetary request guidelines for 
FY2009, Machimura indicated that the government would secure 330 
billion yen under a separate account as money to finance measures to 
implement key tasks and to cover the contained expenditures for 
social security with the money. 
 
SCHIEFFER