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RUCNDT/USMISSION USUN NEW YORK 1107

UNCLAS SECTION 01 OF 08 TOKYO 002149 
 
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 08/06/08 
 
Index: 
 
Defense and security: 
1) Diverging views mark meeting of Futenma study team  (Asahi) 
2) LDP Secretary General Aso says that an alternate plan being 
mulled instead of renewing the MSDF's refueling mission in the 
Indian Ocean  (Tokyo Shimbun) 
3) LDP floats idea of including the protection of tankers into 
anti-terrorism law but Komeito likely to block it  (Yomiuri) 
4) Foreign Minister Koumura visiting India expresses desire for 
refueling mission to the Indian Ocean to be continued  (Yomiuri) 
 
5) Foreign Minister Koumura during New Delhi talks avoids subject of 
propriety of U.S. having signed a nuclear cooperation agreement 
(Nikkei) 
 
Political agenda: 
6) Extra Diet session may not convene until September, with plan 
floated for finding alternate solution to Indian Ocean refueling 
mission  (Nikkei) 
7) Cabinet members Tanigaki, Noda plan to visit Yasukuni Shrine on 
Aug. 15  (Asahi) 
8) Democratic Party of Japan (DPJ) in high spirits, as support 
ratings in the polls rise, gearing up now for early Lower House 
election  (Tokyo Shimbun) 
9) DPJ members and supporters increase by 60,000 to a total of 
270,000  (Tokyo Shimbun) 
10) Former DPJ President Okada expresses doubts about Ozawa's method 
of leading the party  (Yomiuri) 
11) LDP Secretary General Aso withdraws earlier remark about Diet 
dissolution  (Yomiuri) 
 
12) LDP Secretary General Aso calls for a postponement of fiscal 
reconstruction and consideration for a stimulus package to boost 
economy  (Asahi) 
 
Articles: 
 
1) Futenma working teams fail to reach agreement 
 
ASAHI (Page 4) (Abridged) 
August 6, 2008 
 
The government's two Futenma Air Station relocation teams composed 
of working-level officials of the central government and concerned 
local municipalities met for the first time yesterday. 
 
One working team is tasked with finding ways to remove the danger of 
Futenma Air Station, and the other is to pave the way for smoothly 
implementing the replacement facility construction plan and an 
environmental impact assessment. They were launched in accordance 
with the strong wishes of Chief Cabinet Secretary Nobutaka 
Machimura. The government aims to complete the relocation by 2014, 
as was agreed upon with the United States, by displaying its 
deference to Okinawa's requests. 
 
In the first sessions, Okinawa requested the government's maximum 
consideration for local calls for moving the envisaged replacement 
facility offshore. The government, however, insisted that the plan 
agreed upon between Tokyo and Washington cannot be modified unless 
there is a rational reason. The views of the two sides remained wide 
apart. 
 
TOKYO 00002149  002 OF 008 
 
 
 
There is also a gap in views between the two sides over the 
direction of future discussions. Governor Hirokazu Nakaima indicated 
in a press conference on July 25 that discussions would be based on 
an offshore relocation plan, saying, "Working-level talks will begin 
because there is a tacit understanding (on moving the planned runway 
offshore)." An Okinawa official said, "We believe that a substantive 
response will come from the government." 
 
Meanwhile, the Defense Ministry clings to its view that 
working-level talks are venues for discussing technical issues 
necessary for advancing the assessment based on the Japan-U.S. 
agreement. There is an observation in the government that Machimura 
and Nakaima are searching for common ground behind the scenes. The 
talks are likely to face difficulties. 
 
2) Aso mulls alternative for MSDF's refueling operation 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
August 6, 2008 
 
The government plans to revise the new Antiterrorism Special 
Measures Law, which is set to run out in January next year and under 
which the Maritime Self-Defense Forces has been tasked with 
refueling activities in the Indian Ocean. Meanwhile, the ruling 
Liberal Democratic Party will consider presenting another bill 
incorporating other measures for Japan's international contributions 
if cooperation is not available from the leading opposition 
Democratic Party of Japan (Minshuto). "If they say 'no,' we will 
then have to consider what we can do other than refueling," Taro 
Aso, secretary general of the ruling Liberal Democratic Party, said 
in yesterday's media interview. "One idea is to escort oil tankers," 
Aso said, adding, "There are various other measures." With this, he 
came up with the idea of having the MSDF secure Japan's sea lanes. 
 
3) LDP execs eye escorting tankers 
 
YOMIURI (Page 4) (Full) 
August 6, 2008 
 
The ruling Liberal Democratic Party is now considering tasking the 
Maritime Self-Defense Force with other antiterror assistance 
measures in the Indian Ocean instead of continuing its refueling 
activities there under a newly enacted law for special measures 
against terrorism. The government and the LDP plan to present a bill 
to the Diet at its extraordinary session this fall in order to 
extend the law with the option of taking a second vote in the House 
of Representatives since the bill is likely to be voted down in the 
opposition-controlled House of Councillors after its passage through 
the House of Representatives. However, New Komeito, the LDP's 
coalition partner, remains reluctant to do so. 
 
LDP Secretary General Aso indicated in yesterday's media interviews 
that the LDP would consider sending the Self-Defense Forces to 
escort Japanese tankers if the option of extending the MSDF's 
refueling mission in the Indian Ocean fails to obtain understanding. 
LDP General Council Chairman Sasagawa also agreed with Aso in 
interviews. "We need to secure ships bound for Japan, instead of 
refueling activities." Aso and Sasagawa will likely try to iron out 
differences in the ruling coalition over possible options including 
such an idea. However, one government official is skeptical of that 
idea's feasibility, noting that a new law will be needed in that 
 
TOKYO 00002149  003 OF 008 
 
 
case as well. 
 
4) Koumura willing to continue refueling 
 
YOMIURI (Page 4) (Full) 
August 6, 2008 
 
NEW DELHI-Foreign Minister Koumura met with Afghanistan's President 
Karzai, who is now visiting India, at a hotel in New Delhi on the 
afternoon of Aug. 5 (on the evening of Aug. 5 Japan time), in which 
he clarified that Japan would like to continue the Maritime 
Self-Defense Force's refueling activities in the Indian Ocean. 
 
"We will continue our security measures, including refueling 
activities, and our reconstruction assistance to Afghanistan," 
Koumura told Karzai. 
 
Karzai expressed hopes for Japan's continued assistance. "We 
appreciate Japan's powerful and generous assistance," he told 
Koumura. "I appreciate Japan's refueling activities, and I also hope 
for Japan's continued refueling activities." 
 
5) U.S.-India nuclear agreement: Foreign Minister Koumura avoids 
clarifying stance 
 
NIKKEI (Page 2) (Full) 
August 6, 2008 
 
Foreign Minister Masahiko Koumura, now visiting India, met with 
Prime Minister Singh and External Affairs Minister Mukherjee 
separately. India sought Japan's approval of its nuclear agreement 
with the U.S. for civilian use of nuclear energy. Koumura 
acknowledged the need for India to secure electric power. However, 
he did not clarify whether he favors or opposes the pact, saying, 
"The stand of Japan, the only country on which nuclear weapons have 
been used, is to seek the abolition of nuclear arms." 
 
In talks with Singh, both leaders confirmed his visit to Japan, 
possibly in the fall. They also agreed on the stance of both 
countries aiming at reaching a consensus on the signing of an 
economic partnership agreement (EPA) before his visit to Japan. The 
U.S.-India agreement is intended to open the way for the transfer of 
nuclear technology from abroad to India by treating the nation, 
which is not a member of the Nuclear Non-Proliferation Treaty (NPT), 
as an exception. 
 
6) Growing possibility of Lower House dissolution casts pall over 
next extra Diet session; LDP secretary general indicates that 
convocation might slip to September 
 
NIKKEI (Page 2) (Excerpts) 
August 6, 2008 
 
The four new LDP executives, including Secretary General Taro Aso, 
granting separate interviews to the Nikkei and other news companies 
yesterday, revealed their policies toward the next extraordinary 
Diet session. At the same time, they all stopped short of showing 
any solutions to mounting challenges. Given the strong 
confrontational mood between the ruling and opposition blocs with 
the possibility of a Lower House dissolution for a snap general 
election hanging over the horizon, the outlook for the extra Diet 
session seems extremely murky. 
 
TOKYO 00002149  004 OF 008 
 
 
 
Extending refueling operation not the only option 
 
The ruling parties have yet to reach an agreement on when to convene 
the extra Diet session. Aso's predecessor Bunmei Ibuki had pointed 
to late August. Aso, however, indicated in the interview that it 
could slip to a later date, saying, "I don't think it has to be in 
late August." 
 
LDP poised to make a compromise with New Komeito 
 
Election Strategy Council Chairman Makoto Koga, too, expressed a 
cautious view about convening the next session in late August. 
General Council Chairman Takashi Sasagawa indicated that the extra 
session would be convened by the first half of September. Prime 
Minister Yasuo Fukuda and Ibuki had been looking for ways to convene 
the session on August 22 with the aim of securing enough 
deliberation time. The "new Aso leadership," though, seems to be 
willing to make a compromise with the New Komeito, which is calling 
for the convocation in late September. 
 
The term of the session is also in focus. The New Komeito, hoping 
for a Lower House dissolution in late December or early January, 
wants to close the extra Diet session as early as possible. New 
Komeito Representative Akihiro Ota in a press conference yesterday 
revealed the party's plan to expedite preparations for the next 
election, saying: "The political arena will turn into a battlefield 
in the fall or later. We must be ready for the next election 
whenever that will be." 
 
The option of a Lower House dissolution at the year-end and New Year 
period is on Aso's mind as well. 
 
Escorting transport ships as an option 
 
Aso and Sasagawa indicated in connection with legislation for 
extending Japan's refueling operation in the Indian Ocean -- the 
biggest bone of contention in the extra Diet session -- that 
conducting activities strictly for escorting commercial tankers 
could be an option. 
 
Aso said: "Even if the refueling mission is not allowed, there are a 
variety of other options, such as escorting Japanese transport 
vessels." Sasagawa also noted: "The economic situation is different 
from when (the Indian Ocean refueling legislation) was readopted (in 
the Lower House). It is important to hold talks between the ruling 
and opposition blocs so that Japanese transport vessels will be able 
to return home safely." 
 
The New Komeito, opposing the option of the Lower House readopting 
the refueling legislation, is calling for postponing an extension to 
next year's regular Diet session. Statements by Aso and others come 
from the fact that an extension of the refueling mission is the 
source of dispute between the LDP and New Komeito. 
 
The problem is that the Maritime Self-Defense Force has never been 
used for such a purpose. Learning of the contents of the interview, 
Chief Cabinet Secretary Nobutaka Machimura called on Aso and told 
him once again that the government has simply decided to extend the 
refueling legislation. A New Komeito executive, too, expressed 
concern that escort vessels might end up exercising the right to 
collective self-defense. 
 
TOKYO 00002149  005 OF 008 
 
 
 
7) Tanigaki, Noda indicate possibility of visiting Yasukuni Shrine 
 
ASAHI (Page 4) (Full) 
August 6, 2008 
 
Prime Minister Fukuda said yesterday that he would not pay official 
homage at Yasukuni Shrine on the anniversary of the end of WWII on 
August 15. Meanwhile, Justice Minister Yasuoka has revealed his 
intention to visit the shrine. Land, Infrastructure and Transport 
Minister Tanigaki; Agriculture, Forestry and Fisheries Minister Ota 
and State Minister for Consumer Administration Noda have indicated 
the possibility of paying homage at the shrine. Last year, only one 
minister in the Abe administration visited the shrine. If an 
increasing number of members of the Fukuda cabinet visit Yasukuni 
Shrine, the improved relationship between Japan and China might be 
adversely affected. 
 
Fukuda avoided a Yasukuni visit on Aug. 15 when he was serving as 
chief cabinet secretary. Asked by reporters yesterday about whether 
he would visit the shrine on the 15th, Fukuda replied: "Remember 
what I did in the past." Chief Cabinet Secretary Machimura also 
ruled out a shrine visit. Foreign Minister Koumura, as well, said: 
"I won't, as foreign minister." Tanigaki, who forwent a visit in the 
days when he was finance minister, commented: "Since I am chairman 
of the Kyoto War-Bereaved Association, I have a reason to visit the 
shrine." 
 
The number of cabinet ministers who visited Yasukuni Shrine on Aug. 
15 has decreased over the past decade, with nine under the Mori 
cabinet in 2000 as its peak. 
 
8) DPJ remains bullish, despite surge in cabinet approval ratings, 
putting more work into preparations for general election 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
August 6, 2008 
 
Though approval ratings of the Fukuda cabinet have taken an upward 
turn, following the shuffle, the Democratic Party of Japan (DPJ or 
Minshuto) remains bullish. It is now putting more work into 
preparations for a dissolution of the Lower House for a snap 
election at an early date. 
 
Secretary General Yukio Hatoyama at a meeting of the "Next Cabinet" 
on August 5 rapped the new cabinet, "We only hear voices of 
disappointment at the launch of another bureaucrat-led cabinet." 
Azuma Koshiishi, head of the DPJ caucus in the Upper House, during a 
press conference took a confrontational stance, saying, "It's a 
nonsensical cabinet with incumbent ministers appointed to different 
posts from the previous cabinet. I want to characterize the next 
extraordinary Diet session as one that has to do with a Lower House 
dissolution and a snap election in the sense that we will snatch 
power from the ruling coalition." 
 
There is little sense of alarm in the party about a rise in cabinet 
support ratings. This is because approval ratings should have 
increased more, since the shuffle was carried out in a situation 
where opposition parties have had few chances to take active part 
(in the Diet), as it was in recess. One junior lawmaker said, "The 
Fukuda administration has no more factors that can boost its 
approval rating." 
 
TOKYO 00002149  006 OF 008 
 
 
 
However, the appointment of Taro Aso as secretary general of the 
Liberal Democratic Party has raised the level of alarm in the DPJ, 
with one member noting, "The public may find his cheerful character 
attractive." 
 
The DPJ is determined to fight Aso by seeking an apology from him 
for his statement in which he compared the DPJ to Nazi Germany. 
 
In any case, the DPJ expects that Prime Minister Fukuda will 
dissolve the Lower House during this new administration. The DPJ is 
determined to press ahead with preparations, calculating that there 
will be a general election in six months' time or so, as President 
Ichiro Ozawa put it. 
 
9) Number of DPJ rank-and-file members and supporters increases 
60,000 to 270,000 ahead of leadership race 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
August 6, 2008 
 
The Democratic Party of Japan announced at its executive meeting 
yesterday that the number of party members and supporters totaled 
269,124 for fiscal 2008, as of May 31. 
 
This is an increase of nearly 68,000 from fiscal 2007, which marked 
201,489. 
 
The increase is ascribable to the party's overwhelming victory in 
last year's House of Councillors election and its vigorous efforts 
to recruit new party members and supporters with voting rights ahead 
of the party leadership race in September. 
 
The total can be broken down into 44,340 rank-and-file party 
members, 222,407 supporters, 224 Diet members, and 2,153 local 
assembly members. By prefecture, Tokyo topped the list at 22,090, 
followed by Hokkaido at 16,039, and Aichi at 15,706. 
 
The DPJ presidential election is conducted based on a point system 
in which a vote by each Diet member can be converted into two points 
and a vote by each candidate scheduled to run in the next Lower 
House election into one point. 
 
A total of 100 points for the local assemblymen as a package is 
distributed to each candidate in accordance with their votes won 
based on the d'Hondt formula. As for votes by the rank-and-file 
members, one point is distributed to the candidate with most votes 
in each of the 300 Lower House single-seat constituencies. 
 
10) DPJ's Okada in magazine article: I feel sense of disconnect with 
Ozawa's political methods 
 
YOMIURI (Page 4) (Full) 
August 6, 2008 
 
Democratic Party of Japan (DPJ) Vice President Katsuya Okada has 
contributed an article titled, "My stance is different from Mr. 
Ozawa's -- Declaration to take over the political reins," in the 
monthly Bungei Shunju that goes on sale on the 9th. In it, Okada 
notes about President Ozawa: "His strategy of placing emphasis on 
the single-seat constituencies and localities in the House of 
Councillors election (last year) was superb." But he frankly reveals 
 
TOKYO 00002149  007 OF 008 
 
 
that he is feeling odd about his political methods, saying: "I 
sometimes feel that if I were party president, I would do things 
differently." 
 
11) Aso tells LDP members to refrain from talking about timing of 
Diet dissolution 
 
YOMIURI (Page 4) (Excerpts) 
August 6, 2008 
 
Liberal Democratic Party Secretary General Aso said in a party 
executive meeting yesterday that party members should refrain from 
making statements about the timing for the next House of 
Representative election. This remark came under the current 
unsettled situation in the party as executives have cited "sometime 
between later this year and early next year" or "just before the 
expiration of all Lower House members' term" as the possible timing 
for the next Lower House dissolution. Public support for the Fukuda 
cabinet has improved following the latest shuffle. Some speculate 
that the remark was also intended to keep the improved public 
support by having Prime Minister Fukuda devote himself to tackling 
policy issues for the time being. 
 
In the executive meeting yesterday, Fukuda stressed his resolve to 
make utmost efforts to compile a comprehensive economic package. He 
then asked for support from the party, saying: "The terms of all 
Lower House members are to expire a year from now. We must now 
tackle issues with the help of a united party effort." Later, Aso 
said: "The prime minister probably means that we should refrain from 
talking about the timing of a Lower House dissolution." 
 
Regarding the timing, three options -- later this year or early next 
year, next spring or later, and just before the expiration of all 
Lower House members' terms -- had been mentioned in the LDP before 
the cabinet shuffle.  But many have begun to predict that the 
election might be held earlier than expected. Executive Council 
Chairman Sasagawa commented on a commercial TV program on the 3rd: 
"If public support for the cabinet soars, the dissolution of the 
Lower House might come earlier." Calls for an early dissolution are 
also growing in the New Komeito. 
 
Under these circumstances, many wonder why LDP Election Committee 
Koga has changed his prediction from "late this year or early next 
year" to "just before the expiration of all members' terms" in 
September of next year. In the ruling camp, some members, seeing the 
Fukuda-Aso team formed, speculate that the prime minister might be 
replaced before the Lower House dissolution. In part because of this 
speculation, some believe that Koga's remark might be intended to 
head off calls to replace the premier. 
 
12) Fiscal reconstruction likely to be put off, says Secretary 
General Aso: Priority to be given to economic stimulus measures 
 
ASAHI (Page 1) (Full) 
August 6, 2008 
 
Secretary General Taro Aso of the Liberal Democratic Party (LDP) on 
August 8 noted that putting the goal of achieving fiscal 
reconstruction by fiscal 2011 on the back burner is an option. He 
thus referred to the possibility of delaying the target year for the 
first time as an LDP executive. He also said, "The economy is on the 
way to a recession." He thus indicated his stance of giving priority 
 
TOKYO 00002149  008 OF 008 
 
 
to measures to stimulate the economy. He made those statements in an 
interview given to various dailies, including the Asahi Shimbun. 
 
The government has set a goal of moving the primary balance into the 
black by fiscal 2011. Aso pointed out, "Allowing the economy to 
further deteriorate for the sake of giving priority to moving the 
primary balance into the black should not be among the options." He 
continued: "The government must uphold the target. However, moving 
back the target by several years is an option." 
 
The fiscal reconstruction goal was set under the basic policy 
guidelines on economic and fiscal management and structural reforms 
for the fiscal 2006 national budget compiled during the Koizumi 
administration. Some LDP members are calling for delaying the target 
year or scrapping the target itself. 
 
As reasons for delaying the target year, Aso explained, "There will 
be restrictions if we do things while pursuing fiscal 
reconstruction. Economic stimulus measures have priority." 
Concerning the perception of the present state of the economy, which 
the government described as being in a temporary lull, Aso indicated 
his own perception, noting, "The economy is not in a temporary 
slump. It is on the way to a recession." 
 
Regarding the Antiterrorism Special Measures Law intended to enable 
the Maritime Self-Defense Force to engage in refueling and 
water-supply operations in the Indian Ocean, he indicated his 
intention to consider another way of rendering assistance instead of 
simply extending the law. 
 
As another assistance measure, he insisted that a permanent law is 
necessary for the dispatch of SDF personnel abroad, giving the 
example of SDF vessels escorting private tankers. He also indicated 
that since a cautious stance toward the enactment of a general law 
is deep-rooted in the New Komeito, it would be difficult to address 
this issue in the next extraordinary Diet session. 
 
SCHIEFFER