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UNCLAS SECTION 01 OF 08 TOKYO 002135 
 
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 08/05/08 
 
Index: 
 
1) Fuji-Sankei poll: Fukuda Cabinet gets 7.6 point boost in support 
rate to 29.3 PERCENT , attributed to bringing the popular Taro Aso 
on board as party secretary general  (Sankei) 
 
Defense and security affairs: 
2) Prime Minister Fukuda will ask U.S. to investigate leakage of 
radiation from Navy sub that called at Sasebo in March  (Yomiuri) 
3) Protest rally in Sasebo against the port call by a Navy sub that 
is the same type as the one that leaked minor radiation in March 
(Akahata) 
4) SDF overseas dispatches at a crossroads as the time limits 
approach for Iraq, Afghanistan and the New Komeito is balking at 
extensions  (Tokyo Shimbun) 
 
Political agenda: 
5) Growing mood in the government, LDP favoring Diet dissolution 
(Mainichi) 
6) Fukuda trying to balance economic policy forces in the party by 
appointing Hidenao Nakagawa, left out of the cabinet, to head 
national strategy task force  (Mainichi) 
7) By ordering a comprehensive economic stimulus package, Prime 
Minister Fukuda aims at buoying up his administration in reading for 
a snap election  (Yomiuri) 
8) LDP executives greatly worried about the mountain of issues piled 
up in the Diet when it reopens  (Yomiuri) 
 
9) What the New Komeito feared, the opposition plans to pursue 
former executive Yano in the Diet over trouble with Soka Gakkai 
sect, the party's chief promoter  (Yomiuri) 
10) LDP Secretary General Aso denies he made any deals with the 
Prime Minister prior to his new appointment  (Yomiuri) 
11) Aso, known for his misspeaks, does it again by comparing the 
Democratic Party of Japan to the WWII Nazis  (Yomiuri) 
 
12) Arrest papers being readied for Sea Shepherd's American 
activists for allegedly stealing whale meat from Japanese whalers 
(Sankei) 
 
13) Survey of 121 major companies finds half convinced that the 
country is already in a recession  (Mainichi) 
 
Index correction: (Morning Highlights August 4) 
 
Hiroshima peace groups protest remark made by Ambassador Schieffer 
about the dropping of atom bombs saved many more lives by ending the 
war  (Akahata) 
 
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 (Asahi) 
 
Articles: 
 
1) Poll: Cabinet support at 29.3 PERCENT , rebounds for first time, 
possibly due to Aso 
 
SANKEI (Page 1) (Abridged) 
August 5, 2008 
 
The Sankei Shimbun conducted a joint public opinion survey with Fuji 
 
TOKYO 00002135  002 OF 008 
 
 
News Network (FNN) on Aug. 2-3 after Prime Minister Yasuo Fukuda's 
shuffle of his cabinet and his appointment of a new lineup of 
executives for his ruling Liberal Democratic Party. The rate of 
public support for the new Fukuda cabinet was 29.3 PERCENT , up 7.6 
percentage points from the 21.7 PERCENT  low in the last survey 
taken July 12-13. The nonsupport rate was 51.5 PERCENT , down 9.7 
points from the last survey. The public approval rating for the 
Fukuda cabinet had been on the decline since its inauguration in 
September last year. However, it rebounded for the first time. 
Fukuda picked the popular Taro Aso for the post of LDP secretary 
general. This appointment is believed to have had some effect. 
 
In the breakdown of public support for political parties, the LDP 
stood at 27.0 PERCENT , up 4.0 points from the last survey. The 
leading opposition Democratic Party of Japan (Minshuto) was at 26.6 
PERCENT , down 2.4 points from the last survey. The LDP outstripped 
the DPJ for the first time in four months. When it comes to the 
desirable form of government after the next election for the House 
of Representatives, however, the proportion of those opting for a 
DPJ-led coalition government (33.4 PERCENT ) topped that of those 
choosing an LDP-led one (19.2 PERCENT ) as in the previous surveys. 
The most common choice was a grand coalition of the LDP and the DPJ 
at 39.4 PERCENT . 
 
2) Japan to ask U.S. to investigate nuke sub radiation leak: Fukuda 
 
YOMIURI (Page 4) (Full) 
August 5, 2008 
 
A U.S. Navy nuclear-powered submarine was recently found to have 
leaked a small amount of radioactivity at the U.S. Navy's Sasebo 
base in Nagasaki Prefecture. On this issue, Prime Minister Fukuda 
said: "Even though it's a small amount, we must seriously take the 
fact that radiation leaked. We will ask the United States to look 
into the cause of that radioactive leak, of course." Fukuda was 
replying to a question from reporters at his office yesterday 
evening. 
 
Asked about the Foreign Ministry's belated report of the incident to 
the prime minister's office, Fukuda criticized the Ministry, saying, 
"Radioactive leakage-regardless of its scale-must be immediately 
reported (to the prime minister's office) and needs to be made known 
to the public." He added, "I have told the Foreign Ministry to take 
appropriate action, including a public announcement." 
 
3) U.S. nuclear-powered submarine of same type as one that leaked 
radiation enters Sasebo; Residents stage protest 
 
AKAHATA (Page 1) (Excerpts) 
August 5, 2008 
 
The USS La Jolla, a nuclear-powered fast attack submarine, entered 
Sasebo port, Nagasaki Prefecture, yesterday morning. The La Jolla's 
port call follows the U.S. government's admission three days ago 
that the USS Houston, a nuclear-powered submarine of the same model, 
leaked radiation. 
 
Some 20 members of the Sasebo Council against A&H Bombs and the 
Nihon Heiwaiinkai (Japan Peace Council) staged an emergency rally 
against the La Jolla's port call starting at 9 o'clock in the 
morning. 
 
 
TOKYO 00002135  003 OF 008 
 
 
The rally's representative Chiaki Yamashita of the Sasebo Council 
against A&H Bombs called on the public, saying: "With the collapse 
of the myth that nuclear-powered vessels are safe, fears are growing 
among residents. Let us expand the circle of protest against the 
U.S. military, whose submarine has entered Sasebo in defiance of 
local fears, and the Japanese government that has given a nod to the 
sub's port call." 
 
4) SDF dispatch at crossroads 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
August 5, 2008 
 
Japan's assistance to Afghanistan and Iraq-both still remaining in a 
state of confusion-is now at a crossroads. New Komeito, the ruling 
Liberal Democratic Party's coalition partner, is also calling for 
the government to recall the Self-Defense Forces. Meanwhile, Japan, 
should it pull out, may give the impression that Japan backpedaled 
on its international contributions. Prime Minister Fukuda, who has 
just shuffled his cabinet, is now being urged to make a decision. 
 
In Japan's assistance to Afghanistan, the Maritime Self-Defense 
Force has been refueling foreign naval vessels in the Indian Ocean 
to deter terrorism under a newly enacted law for special measures 
against terrorism. The law is set to expire in January next year. 
The government and the LDP are going to revise the law at the next 
extraordinary Diet session for the MSDF's continued refueling 
mission there. The LDP wants to get a bill for that purpose through 
the Diet even by taking a second vote in the House of 
Representatives (since the planned legislation, after its passage 
through the House of Representatives, would be voted down in the 
opposition-controlled House of Councillors). 
 
However, New Komeito remains cautious about extending the MSDF's 
Indian Ocean refueling mission. New Komeito fears that the ruling 
coalition, if it rams the bill through the Diet in a second vote, 
would be under fire from public opinion. Meanwhile, New Komeito 
stakes its fate on next year's election for the Tokyo metropolitan 
assembly. The party is therefore worried about a negative impact on 
that scheduled metropolitan event and also on a general election for 
the House of Representatives after its possible dissolution. "It's 
all right to recall the MSDF squadron one time," a New Komeito 
executive said. 
 
5) Anticipation of early Lower House dissolution growing in 
government, LDP 
 
MAINICHI (Page 5) (Excerpts) 
August 5, 2008 
 
Following the appointments of cabinet members and Liberal Democratic 
Party executives in the shuffle of the Fukuda cabinet, an increasing 
number of people in the government and the LDP have begun to make 
remarks regarding an early dissolution of the House of 
Representatives for a snap election. Seeing the appointment of Taro 
Aso as secretary general, some LDP members now think that Prime 
Minister Yasuo Fukuda has arranged the lineup in preparation for the 
next Lower House election. Among them, anticipation for an early 
dissolution is prevailing. But others have made statements intended 
to tamp down such talk. 
 
On the dissolution of the Lower House, the remarks of Election 
 
TOKYO 00002135  004 OF 008 
 
 
Committee Chairman Makoto Koga have drawn much attention. Up until 
the cabinet shuffle, Koga had asserted that the Lower House should 
be dissolved later this year or early next year, in accordance with 
the New Komeito's desire. In a speech on Aug. 3, however, Koga said: 
"If the Lower House is dissolved under the current situation, the 
outcome may be disastrous. We need time to get the people to realize 
that the cabinet will put them at ease, as the prime minister has 
said." Koga then said that the dissolution should come sometime very 
close to the expiration of the Lower House members' terms. 
 
A member of the Koga faction explained: "Since the New Komeito has 
begun to make one request after another over the timing for opening 
the next extraordinary Diet session and such issues as extending the 
new antiterrorism special measures law, Mr. Koga probably tried to 
contain its moves." But an LDP member speculated: "An early 
dissolution would make his rival, Mr. Aso, more influential. Mr. 
Koga might be aiming to avoid such a situation." 
 
Appearing on a TV program on Aug. 2, Aso said: "The dissolution of 
the Lower House could occur anytime." Executive Council Chairman 
Takashi Sasagawa also emphasized on the 3rd, upon indicating that 
the next extraordinary Diet session would last for about three 
months, "The key point is how to persuade the people during the 
three months of the session. If public support for the government 
soars, the Lower House could be dissolved earlier." He defined the 
upcoming extraordinary Diet session as an election-strategy-oriented 
session. 
 
6) Fukuda appoints Hidenao Nakagawa as effective head of National 
Strategy Office 
 
MAINICHI (Page 5) (Full) 
August 5, 2008 
 
The government decided yesterday to appoint former Secretary General 
Hidenao Nakagawa as deputy head of the Liberal Democratic Party's 
National Strategy Office, headed by Prime Minister Yasuo Fukuda. 
Nakagawa is a core member of a group calling for giving priority to 
economic growth. In the shuffled cabinet, however, members of a 
group insisting on the need for fiscal reconstruction, eyeing tax 
hikes, have been picked for cabinet or party executive posts, such 
as State Minister in Charge of Economic and Fiscal Policy Kaoru 
Yosano. Observers believe that Fukuda aims at keeping the party in 
balance by appointing Nakagawa as the effective head of the office, 
which is called "the second Policy Research Council." 
 
Fukuda called Nakagawa in to his official residence yesterday and 
said: "Some say that the government is retreating from the reform 
line, but that is not true. I want you to carry through reforms." 
 
Nakagawa replied: "A reform vision from a medium- to long-term 
perspective will become our party's policy manifesto for the next 
House of Representatives election. From this standpoint, I accept 
your offer," indicating his eagerness to hold on to the reform 
policy. 
 
The National Strategy Office under the party president was created 
in 2001 under the Koizumi administration, tasked with drawing up a 
medium- to long-term national vision. 
 
Taking responsibility for the crushing defeat in the House of 
Councillors election in July 2007, Nakagawa resigned as secretary 
 
TOKYO 00002135  005 OF 008 
 
 
general, but he has continued to demonstrate his influence in 
discussions in the party on civil service reform and other issues as 
an advisor to the said panel. By assuming the post of deputy head, 
Nakagawa might be aiming to make the panel a base for advocates of 
economic growth to recover from the setback. 
 
7) Comprehensive economic stimulus package: Prime Minister aims at 
buoying up administration with eye on Lower House election: Focus is 
on when to submit supplementary budget bill 
 
YOMIURI (Page 4) (Excerpts) 
August 5, 2008 
 
The shuffled cabinet got under way on August 4. Prime Minister 
Fukuda immediately started compiling a comprehensive economic 
stimulus package. He aims at put forward a clearer stance of giving 
consideration to people's lives with eye on the next Lower House 
election. The government and the ruling parties will also look into 
submitting a supplementary budget bill for fiscal 2008 to the next 
extraordinary Diet session. However, since the timing of submitting 
such a bill to the Diet is intertwined with the issue of when to 
dissolve the Lower House for a snap election, coordination of views 
will likely encounter complications. 
 
State Minister for Economic and Fiscal Policy Yosano on the morning 
of the 4th met with the prime minister at the Kantei. After the 
meeting, he told reporters: "The steep rise in crude oil prices has 
triggered an economic slowdown. Its impact has spread to various 
businesses, including small- and medium-size companies and the 
financial services sector. The prime minister has ordered me to 
compile a package of measures dealing with the economy as a whole." 
 
The catchphrase of the shuffled cabinet is the "peace of mind 
realization cabinet." It seems that the prime minister wants to 
secure stable support form the public, by coming up with economic 
stimulus measures without a pause, capitalizing on the improved 
approval rating of the cabinet due to the effect of the shuffling. 
 
The package, which is to be compiled possibly before the end of the 
week, will likely include measures to expand assistance to small- 
and medium-size businesses and the agriculture, forestry and 
fisheries sector, which are suffering from the steep rise in crude 
oil prices, and measures to promote the use of energy-saving 
technologies. 
 
Some ruling party members are concerned that such measures could be 
criticized as for scattering about pork-barrel largesse. However, 
many are welcoming the government's move. The prevailing view is 
that a Lower House election should come after the enactment of a 
supplementary budget bill for fiscal 2008 and the compilation of an 
economic stimulus package. Regarding the size of a supplementary 
budget, some are calling for a drastic scale topping 1 trillion 
yen. 
 
However, a consensus on when to submit a supplementary budget bill 
to the Diet has yet to be reached. 
 
The New Komeito's view is that it would be desirable to dissolve the 
Lower House around the turn of the year. Reflecting this view, some 
have suggested that the Lower House should be dissolved either in 
the final stage of the next extraordinary Diet session or right 
after the handling of a supplementary budget bill at the outset of 
 
TOKYO 00002135  006 OF 008 
 
 
the regular Diet session next year. On the other hand, others have 
pointed out, with a possible dissolution of the Lower House next 
spring or later after the compilation of the fiscal 2009 budget in 
mind, that it would be better not to link a supplementary budget 
bill to a dissolution of the Lower House. 
 
8) New LDP leadership facing unsettling conditions: Mountain of 
challenges, including extraordinary Diet session, unity 
 
YOMIURI (Page 4) (Excerpts) 
August 5, 2008 
 
The new leadership of the Liberal Democratic Party (LDP) yesterday, 
August 4, held a regular meeting with the government. The LDP is 
determined to rebuild the party's strength, spurred by Secretary 
General Aso's popularity. However, there is a mountain of challenges 
to tackle, including coordination of views with the New Komeito 
regarding when to convene the next extraordinary Diet session. The 
leadership itself has yet to reconstruct its unity, which has been 
shaken in the aftereffects of the trouble that occurred over the 
selection of party executives. 
 
Aso on the 4th attended a meeting between the government and the 
LDP, which was held for the first time under the new administration. 
On his appointment, he visited former Prime Minister Mori of the LDP 
and Upper House President Eda to pay his respects. 
 
The leadership is expected to confer on how to manage the next 
extraordinary Diet session, a pressing issue, at a meeting of 
secretaries general and Diet Affairs Committee chairmen of the LDP 
and the New Komeito. Aso wants to reach a decision on when to 
convene the session before the end of the week. 
 
Aso also intends to enact a bill amending the New Antiterrorism 
Special Measures Law, which will become the focus of attention in 
the next extraordinary Diet session, even by taking a revote in the 
Lower House. However, the New Komeito still remains cautious about 
the issue, with Yoshio Urushibara, the party's Diet Affairs 
Committee chairman, telling reporters on the 4th, "It is 
questionable to set a date to convene the extraordinary Diet session 
in a manner that makes taking a revote on the bill amending the New 
Antiterrorism Special Measure Law a foregone conclusion." Aso's 
ability to coordinate with New Komeito will soon be tested. 
 
9) Kamei set to pursue issue involving former New Komeito head Yano 
in extraordinary Diet session 
 
YOMIURI (Page 4) (Full) 
August 5, 2008 
 
In an interview with the Yomiuri Shimbun yesterday, Shizuka Kamei, 
deputy president of the People's New Party, expressed his intention 
to pursue the issue of former New Komeito leader Junya Yano filing a 
damage suit against Soka Gakkai for violating his human rights by 
threatening him and obstructing his freedom of speech. Kamei said: 
"This issue naturally should be taken up in the extraordinary Diet 
session. Since he claimed that his freedom of speech had been 
obstructed, it is necessary to question him about the circumstances, 
from the viewpoint of democracy." He indicated he would demand that 
Yano be summoned as an unsworn witness. 
 
Asked about the timing for a general election, Kamei indicated an 
 
TOKYO 00002135  007 OF 008 
 
 
early dissolution of the House of Representatives. 
 
10) Aso denies "secret deal" 
 
YOMIURI (Page 4) (Full) 
August 5, 2008 
 
There is a rumor going around that when Secretary General Aso of the 
Liberal Democratic Party (LDP) accepted the post, he made a secret 
deal with Prime Minister Fukuda on a transfer of power. Aso on a 
Fuji TV talk show on August 4 denied the rumor, noting: "I thought I 
would not be much of a man if I had declined the offer solely for my 
own convenience. You never know what will happen in the future. Even 
if something happens, a party presidential election must be carried 
out." 
 
In this connection, former Prime Minister Mori of the LDP met with 
Finance Minister Ibuki and Lower House member Muneo Suzuki, head of 
the New Party Daichi. During the meeting, Mori reportedly said, 
"Even if there were various exchanges between the prime minister and 
Mr. Aso, the authority left exclusively in the hands of the prime 
minister (the right to dissolve the Lower House) will never be 
restricted." 
 
11) Aso's remarks likening DPJ to Nazis draws fire 
 
YOMIURI (Page 2) (Abridged slightly) 
August 5, 2008 
 
LDP Secretary General Taro Aso paid a courtesy call on Upper House 
President Satsuki Eda yesterday and applied pressure on the 
Democratic Party of Japan by citing Nazi Germany. Aso's comment is 
drawing fire from the DPJ. 
 
Aso, in his meeting with Eda in the Diet building, said: "Nazi 
Germany, too, once said, 'Let us (steer the administration).'" 
 
In response, Eda said: "I don't mean to contradict you, but it's not 
about the DPJ. The question is which the general public prefers -- 
the LDP or the DPJ. 
 
DPJ Secretary General Yukio Hatoyama expressed strong displeasure to 
reporters in Tokyo last night, saying: "The remark could give the 
impression that the DPJ would undertake oppressive policies. What he 
said is intolerable even as an analogy. We demand that he retract 
his remark." 
 
Aso explained to the press corps last night: "What would happen if 
(the opposition-controlled) Upper House does not carry out 
deliberations? What happened as a result of Germany saying in the 
past 'let the Nazi run the administration'? With such a historical 
event in mind, I just discussed the importance of Diet 
deliberations." 
 
12) Investigative authorities to seek arrest warrants for 
environmental activists, including Americans, possibly today for 
obstructing Japanese whaler 
 
SANKEI (Top play) (Excerpts) 
August 5, 2008 
 
Japanese investigative authorities decided yesterday to press 
 
TOKYO 00002135  008 OF 008 
 
 
charges against several members, including Americans, of the U.S.' 
Sea Shepherd (SS) Conservation Society for interfering with a 
Japanese research whaler in the line of duty. Investigative 
authorities will seek arrest warrants as early as today. The 
Japanese government has concluded that it is necessary to take a 
resolute stance toward the international community in order also to 
prevent acts of sabotage, which have been uncontrolled due to 
difficulty building cases. 
 
Several SS members are suspected to have obstructed the activities 
of the Japanese whaling research mother-ship Nisshin Maru that was 
navigating in the Southern Ocean in February 2007 and March 2008 by 
hurling bottles containing a chemical agent emitting a pungent odor 
that seemed butyric acid at it form the SS protest vessel. Three 
crewmembers sustained minor injuries in the March 3 sabotage. 
 
Taking the situation seriously, investigative authorities have 
analyzed videos taken by crewmembers and expedited efforts to 
identify the suspects by requesting investigative cooperation of 
countries concerned, including the government of Australia where the 
SS is based. 
 
Now that several individuals, including Americans, have been 
identified as suspects, investigative authorities have decided to 
seek arrest warrants for them. 
 
Nevertheless, difficulty is expected in seizing the suspects. That 
is because chances are slim that the suspects will enter Japan and 
also because Japan has to seek the transfer of custody of suspects 
of countries concerned under the Convention for the Suppression of 
Unlawful Act against Vessels at Sea (SUA), with the exception of the 
United States with which Japan has concluded an extradition treaty. 
 
13) Mainichi Shimbun poll:  50 PERCENT  of respondents reply the 
economy is already in grip of recession; Pessimistic view spreads 
 
MAINICHI (Page 1) (Excerpt) 
August 5, 2008 
 
The Mainichi Shimbun conducted a poll on the economy on 121 leading 
companies. The survey found that the business confidence of the 
surveyed companies has rapidly deteriorated due to concern about the 
steep rise in raw material prices and the U.S. economy. 
Approximately 50 PERCENT  of the respondents or 60 companies replied 
that the Japanese economy, which has continued the longest expansion 
after the war, has taken a downward turn as of the first half of 
this year, indicating that a pessimistic view is spreading. As to 
when the economy will enter a recessionary phase, 65 PERCENT  of 
respondents replied "before the end of the year, combining 15 
PERCENT , which replied "the second half of 2008, topping 47 PERCENT 
 marked in the previous survey carried out in April. 
 
SCHIEFFER