VZCZCXRO6009
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2179/01 2210200
ZNR UUUUU ZZH
P 080200Z AUG 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6436
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 1660
RUEHFK/AMCONSUL FUKUOKA 9287
RUEHOK/AMCONSUL OSAKA KOBE 3029
RUEHNAG/AMCONSUL NAGOYA 7468
RUEHKSO/AMCONSUL SAPPORO 9869
RUEHBJ/AMEMBASSY BEIJING 4798
RUEHUL/AMEMBASSY SEOUL 0788
RUCNDT/USMISSION USUN NEW YORK 1151

UNCLAS SECTION 01 OF 10 TOKYO 002179 
 
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 08/08/08 
 
Index: 
 
Defense and security: 
1) U.S. Navy nuclear sub leaked radiation in Yokosuka, Okinawa, as 
well  (Asahi) 
2) Leaky sub made 11 port calls in Japan over two year timeframe 
(Tokyo Shimbun) 
3) Local communities upset that sub leaked radiation for two years 
(Asahi) 
4) Locals charge "cover up" of sub radiation leakage  (Tokyo 
Shimbun) 
5) Yokosuka, Nagasaki citizens angry at sub leak incident charge 
that they were "deceived"  (Mainichi) 
6) On sub leak incident, charges that Japanese government was 
negligent in verifying, U.S. was sloppy in enforcing own regulations 
 (Mainichi) 
7) U.S. forces Japan: Small amounts of radiation difficult to detect 
 (Mainichi) 
8) Foreign and defense ministers both push for continuing MSDF's 
Indian Ocean refueling mission  (Nikkei) 
9) Democratic Party of Japan (DPJ) cooperation is the target of LDP 
Secretary General Aso's suggestion of MSDF escorting Japanese ships 
in Indian Ocean  (Yomiuri) 
 
North Korea problem: 
10) Abduction reinvestigation will head the agenda at talks between 
Japan, North Korea that start on 11th  (Nikkei) 
11) Foreign Minister Koumura says that Japan will be involved in 
determining results of DPRK's promised reinvestigation of abduction 
incidents  (Asahi) 
 
China syndrome: 
12) Koumura admits that China asked Japan to withhold information 
about its own poisoned dumpling incidents  (Asahi) 
13) DPJ Secretary General Hatoyama blasts Foreign Ministry for being 
"weak-kneed" toward China on poisoned dumpling issue  (Mainichi) 
 
14) DPJ drafts treaty on nuclear-weapon-free zones  (Asahi) 
 
15) Economic and Fiscal Minister Yosano acknowledges that Japan is 
slipping into a recession  (Nikkei) 
 
16) Prime Minister Fukuda is unhappy at reports he made a secret 
political deal with LDP Secretary General Aso  (Asahi) 
 
Articles: 
 
1) U.S. sub leaked radioactive water at 2 other ports in Yokosuka, 
Okinawa 
 
ASAHI (Page 35) (Full) 
August 8, 2008 
 
The U.S. government has provided the Japanese government with 
additional information about findings from its probe into the 
earlier reported leakage of cooling water containing a trace amount 
of radiation from the U.S. Navy nuclear-powered Houston, the Foreign 
Ministry said yesterday. The radiation leak occurred for a period of 
two years and one month from June 2006, during which the Houston 
called at Sasebo in Nagasaki Prefecture, Yokosuka in Kanagawa 
Prefecture, and White Beach in Okinawa Prefecture's Uruma City, 
according to the ministry. 
 
TOKYO 00002179  002 OF 010 
 
 
 
According to the Foreign Ministry's press release, the USS Houston 
leaked a trace amount of radiation from June 2006 through July 2008 
when the submarine was docked at Honolulu. During that period of 
time, the Houston called at three ports in Japan. The Foreign 
Ministry also released data, including the dates of the Houston's 
port calls in Japan and its presumable leakage of radioactive 
substances during its port calls in Japan. 
 
According to findings from the U.S. Navy's investigation, the 
Houston was in port at Sasebo for a total of 16 days, during which 
the total amount of radiation leaks from the sub was less than 0.340 
microcuries. The Houston stayed at Yokosuka for a total of 5 days, 
and the total amount of radiation leaks there was less than 0.095 
microcuries. In Okinawa, where the Houston stayed for a total of 9 
days, the total amount of radiation leaks was less than 0.170 
microcuries. 
 
The U.S. government explains: "The total amount of radioactive 
substances is extremely small and does not endanger human health, 
sea life, or the environment. The total amount of radiation leaks 
during all the port calls in Japan is smaller than the amount of 
radioactive substances contained in a smoke detection sensor for 
home use." 
 
According to the Foreign Ministry's Japan-U.S. Security Division, 
the fact-finding report from the U.S. government does not specify 
anything about why the cooling water leaked, how often radiation 
leakage occurred, how much cooling water leaked during the port 
calls, and how the amount of radiation leakage was estimated. The 
Foreign Ministry says it will ask the United States for further 
accounts. 
 
Meanwhile, the Foreign Ministry inquired of the Education, Science 
and Technology Ministry about the amount of radiation at each of the 
three ports and during the port calls. According to findings from 
Japan's monitoring, however, there were no abnormal readouts. "We 
don't think the submarine leaked radiation to an extent that could 
affect human health or the environment," said an official of the 
Education, Science and Technology Ministry. 
 
2) U.S. nuclear-powered submarine leaked radiation in Yokosuka and 
Okinawa; Visited 11 Japanese ports since July 2006 
 
TOKYO SHIMBUN (Page 29) (Full) 
August 8, 2008 
 
The Foreign Ministry announced yesterday that it was informed by the 
U.S. Embassy in Japan that the U.S. Navy's nuclear-powered submarine 
Houston had leaked traces of radiation during its port calls at 
Yokosuka Naval Base (Yokosuka City, Nakagawa Prefecture) and White 
Beach (Uruma City, Okinawa Prefecture) between January 2007 and 
March 2008, in addition to an earlier reported leak at Sasebo Naval 
Base (Sasebo City, Nagasaki Prefecture). From what was learned from 
the U.S. side, there is a possibility that the radiation leak at 
Sasebo began at the sub's port call there in July 2006. 
 
The U.S. Embassy said that the amount leaked was very small and that 
it posed no risk to public health or the environment. Abnormal 
levels of radiation have not been detected in radioactivity tests 
conducted at the sub's calling ports since June 2006 by the 
Education, Science and Technology Ministry. According to the U.S. 
 
TOKYO 00002179  003 OF 010 
 
 
side, the Houston anchored at the Yokosuka base for five days in 
late January 2007. The submarine is estimated to have leaked less 
than 3.5 kilo Bq. of radioactivity during that period. It also 
stayed at White Beach for a total of nine days on five occasions 
between March 2007 and March 2008 and is estimated to have leaked 
less than 6.3 kilo Bq. of radiation. 
 
The U.S. side also informed the ministry regarding the radiation 
leak at Sasebo that the Houston stayed there for a total of 16 days 
on five occasions between July 2006 and April 2008 and that it 
leaked a total of less than 13 kilo Bq. of radiation. 
 
3) Local officials concerned about U.S. sub radiation leaks 
 
ASAHI (Page 35) (Full) 
August 8, 2008 
 
Concerning the leak of radiation from the U.S. Navy nuclear-powered 
submarine Houston at three ports in Japan, local officials are 
wondering why such leaks continued for more than two years. There is 
no knowing why this occurred, so they are feeling uneasy and 
dissatisfied. 
 
In late September, the USS George Washington, a nuclear-powered 
aircraft carrier of the U.S. Navy, is slated to arrive at Yokosuka 
in Kanagawa Prefecture for deployment. Kanagawa Gov. Shigefumi 
Matsuzawa said, "They say it does not endanger human health or the 
environment, but such an accident must not take place." Matsuzawa 
also voiced concern about repercussions on the flattop's deployment, 
saying, "Minor accidents, if they continue to take place, will cause 
the local residents to feel uneasy." 
 
"In such a situation, we cannot accept the deployment of a 
nuclear-powered aircraft carrier." This criticism came from Masahiko 
Goto, a lawyer representing a group of local citizens. 
 
In Okinawa Prefecture, Lt. Gov. Zenki Nakazato told a senior 
official of the Foreign Ministry: "Even if it's a small amount, a 
nuclear-powered submarine's leakage of cooling water containing 
radiation causes local residents to feel extremely uneasy. We 
learned that cooling water leaks had continued for two years. We're 
very concerned about safety control, and it's truly regrettable." 
 
Masahide Haraguchi, director general of the Base Policy Bureau at 
the municipal government office of Sasebo City, said: "We wonder if 
the accident resulted from the submarine's structural defects or if 
it resulted from human error. Our action depends on that. We want 
them to clear up the cause of the accident immediately." Masato 
Shinozaki, chief of the secretariat for a local group opposing 
nuclear-powered ship port calls, criticized the United States, 
saying: "They have not revealed the cause of the accident, but their 
submarines of the same type are still operating." 
 
4) Yokosuka residents reacting strongly to U.S. military concealment 
of information, some calling for halt to deployment of 
nuclear-powered aircraft carrier 
 
TOKYO SHIMBUN (Page 29) (Full) 
August 8, 2008 
 
It has come to light that the U.S. nuclear-powered submarine Houston 
leaked radiation at U.S. Yokosuka Naval Base in Kanagawa Prefecture, 
 
TOKYO 00002179  004 OF 010 
 
 
as well as Sasebo Naval Base in Nagasaki Prefecture. With the 
nuclear-powered aircraft carrier George Washington (GW) scheduled to 
be deployed at Yokosuka in late September, the U.S. military's 
announcement of the radiation leak is drawing fire from local 
residents as "concealing information." 
 
Hiroshi Goto, 60, a company president living near the Yokosuka base, 
expressed strong displeasure toward the U.S. military's response, 
saying: "I don't feel good. It's not good to conceal a radiation 
leak. I guess that because radiation leaked at Sasebo as well 
following the GW's fire (in May), the U.S. military had no choice 
but to announce it before the GW's arrival at Yokosuka." 
 
Lawyer Masahiko Goto, a joint representative of the Yokosuka civic 
group to consider the home-porting of a nuclear-powered aircraft 
carrier, also said: "It is a serious problem that the U.S. military 
did not inform Japan of the radiation leak for a year and a half. 
The central government, Yokosuka municipal government, and its 
citizens have been deceived during that period. The planned 
deployment of the aircraft carrier must be suspended." 
 
A small amount of radiation was also detected in September 2006 in 
seawater at the Yokosuka base after the U.S. nuclear-powered 
submarine Honolulu departed. At that time, Japan was not allowed to 
conduct basic safety checks at the U.S. base and the military vessel 
to find out the cause. This has raised questions about the fact that 
safety measures are left to the U.S. military. 
 
During the Houston's port call at Yokosuka on January 25-29, 2007, 
during which the U.S. military admitted the sub's radiation leak, 
the Education, Science and Technology Ministry conducted radiation 
tests at four monitoring posts on the base and by collecting 
seawater. But abnormal levels of radiation were not detected. 
 
Since October 1985, the Houston visited the Yokosuka base 24 times, 
with the time in January 2007 in which the leak became clear being 
the latest. 
 
Yokosuka Mayor Ryoichi Kabaya released a verbal statement: "Dealing 
with a matter properly when it is still a small problem is the most 
effective safety measure to prevent major accidents." He also 
revealed a plan to ask the U.S. side for an appropriate response. 
 
5) Yokosuka, Nagasaki angry at radiation leakage by U.S. submarine: 
"We were deceived" 
 
MAINICHI (Page 31) (Excerpt) 
August 8, 2008 
 
Radiation-contaminated coolant water leaked from the U.S. Navy 
nuclear-powered submarine Houston from June 2006. In all of the 
sub's port calls, data showed no anomalies, but the atomic bomb 
survivors in Nagasaki are filled with distrust, charging that the 
city was "deceived." From the ports where the sub made calls -- 
Sasebo, Okinawa, and Yokosuka, where similar leakage has just been 
revealed - voices of anger and concern are rising. 
 
The port of Yokosuka in Kanagawa Prefecture received a port call in 
January 2007. In Yokosuka City, where the U.S. nuclear-powered 
carrier George Washington (GW) will be deployed at the end of Sept., 
lawyer Masahiko Goto, who heads a citizens' movement opposed to the 
deployment of the GW, made this comment, his face filled with 
 
TOKYO 00002179  005 OF 010 
 
 
distrust: "The incident was not reported for over a year and a half 
(after the port call), deceiving the residents." In May, the GW was 
damaged by a fire, and with the series of accidents involving 
nuclear-powered vessels, "The anxieties of the residents are growing 
even higher," he said. 
 
In Nagasaki, Sumiteru Taniguchi (79), who is an atomic bomb survivor 
and heads the council of Nagasaki atomic bomb victims, stressed: 
"The U.S. and Japanese governments decided to deceive Nagasaki." 
 
6) Leakage of radiation from U.S. Navy submarine: Japan has no means 
of verifying; Sloppy controls by U.S. forces exposed 
 
MAINICHI (Page 2) (Full) 
August 8, 2008 
 
The issue of coolant water containing radioactive particles having 
leaked from the U.S. Navy nuclear-powered submarine Houston for over 
two years exposes the sloppiness of the safety-control system on 
U.S. subs that repeatedly make port calls in Japan, while neglecting 
leakage. Although there reportedly has been no impact on human 
bodies or the environment, the radiation leaked at the three ports 
having been minute in quantity, the incident raise questions about 
the way that information is disclosed. 
 
By Akashi Sudo and Hiroshi Nishikawa 
 
According to the Foreign Ministry, it is not clear from the data 
provided by the U.S. reason for the starting of the leakage of 
coolant in June 2006 or the estimated total amount of radiation 
leaked. The Japanese side has no way to verify such. 
 
When a nuclear-powered vessel makes a port call in Japan, the 
Ministry of Education and Science and local governments sample the 
seawater and seabed in order to detect whether or not there are 
radioactive particles.  However, in the inspections when the Houston 
made port calls, until now there never has been any anomaly found. 
In ports all over Japan, for over two years, radioactive particles 
have been leaking into the seawater. If there had been no 
information from the U.S., the timeframe of the leaks and the 
locations would have gone undetected. 
 
On the other hand, the leakage of radioactive particles that could 
have been signs of an impending major accident went on undetected 
for a long period of time. Needless to say, this raises questions 
about the control system aboard U.S. Navy nuclear-powered vessels. 
 
However, the dispersion into the sea of 22.8 kilo-becquerels in 
released radiation, according to the Ministry of Education and 
Science, "has no impact on the human body or the environment." 
According to the ministry's disaster environment countermeasures 
office in the Nuclear Power Safety Division, in the case of cobalt 
60, a representative radioactive particle found in coolant water in 
nuclear power plants, the detectable limit is 4 mili-becquerrels per 
liter. 
 
The same office noted: "Sea water is take immediately next to the 
moored nuclear vessel. The fact that nothing was detected probably 
means that an extremely minute amount of radiation was being 
leaked." 
 
7) U.S. Navy: Amount was too small to detect 
 
TOKYO 00002179  006 OF 010 
 
 
 
MAINICHI (Page 1) (Full) 
August 8, 2008 
 
Masaya Oikawa, Washington 
 
The U.S. Navy made it clear on August 7 that it had not been able to 
detect the leak of cooling water containing radiation from the 
nuclear-powered submarine Houston for nearly two years. But the Navy 
stopped short of explaining what let it to conclude that the leak 
began in June 2006. 
 
The Navy explained that it was not able to detect the leak because 
the amount was too small. The Navy has designed criteria based on 
the nuclear promotion program, but the ratio of water leaked was far 
greater than the standard. 
 
8) Continuation of refueling operation in Indian Ocean necessary, 
say foreign and defense ministers; Difficult for MSDF to escort 
private tankers 
 
NIKKEI (Page 2) (Full) 
August 8, 2008 
 
Foreign Minister Masahiko Koumura and Defense Minister Yoshimasa 
Hayashi in interviews with the Nikkei yesterday both said that it 
was necessary for Japan to continue refueling operations in the 
Indian Ocean, the top-priority issue in the upcoming extraordinary 
Diet session. They took the view that it would be difficult (for the 
Maritime Self-Defense Force) to escort Japan's private tankers, an 
idea proposed by Secretary General Taro Aso of the Liberal 
Democratic Party (LDP) as an alternative to the refueling operation. 
 
 
Referring to the refueling operation, Koumura said, "There is no 
option for Japan to stop refueling operations, just because we are 
in a difficult situation."  Hayashi echoed Koumura's remark, noting, 
"No one is arguing that there is no need for a war on terror. When 
viewed from the results, the refueling has contributed to securing 
stability in the supplying of fuel oil." 
 
9) Aso may ask DPJ for cooperation on MSDF role in Indian Ocean 
 
YOMIURI (Page 4) (Abridged) 
August 8, 2008 
 
The Maritime Self-Defense Force is currently tasked with refueling 
activities in the Indian Ocean to back up multinational antiterror 
efforts in Afghanistan under the new Antiterrorism Special Measures 
Law, which is set to run out in January next year. In this 
connection, the ruling Liberal Democratic Party's Secretary General 
Aso has indicated that he would consider such measures as having the 
MSDF escort tankers instead of carrying out refueling activities. 
This is creating a stir in the government and the ruling parties. 
The government is planning to amend the law to extend the MSDF 
mission there. However, Aso is believed to be exploring other 
measures that can obtain cooperation from the leading opposition 
Democratic Party of Japan (Minshuto). 
 
Chief Cabinet Secretary Machimura, Foreign Minister Koumura, and 
Defense Minister Hayashi met yesterday at the prime minister's 
office to discuss how to handle the new antiterror law. On that 
 
TOKYO 00002179  007 OF 010 
 
 
occasion, they talked about Aso's proposal. 
 
Aso indicated on Aug. 5 that the government should consider 
dispatching the Self-Defense Forces to escort Japanese tankers in 
the Indian Ocean if it is difficult to extend the MSDF's refueling 
activities there due to opposition from the DPJ and other opposition 
parties. 
 
However, there is no law at present to dispatch the SDF for that 
purpose. The government therefore deems it infeasible to task the 
SDF with escorting tankers in the Indian Ocean. "It would be 
difficult to do so," a senior official of the Defense Ministry said, 
representing the government's view. 
 
Meanwhile, the United States wants Japan to send SDF troops to 
Afghanistan. This deployment will be accompanied by extraordinary 
danger, so the government would like to fulfill its contributions to 
the war on terror by continuing the MSDF's refueling activities in 
the Indian Ocean. 
 
However, the DPJ is unlikely to approve of the government's plan to 
continue the MSDF's refueling mission. Moreover, New Komeito, the 
LDP's coalition partner, is reluctant to take a second vote in the 
House of Representatives to get the MSDF bill through the Diet after 
its possible failure to clear the opposition-controlled House of 
Councillors. As it stands, the MSDF bill is uncertain to get the 
Diet's approval at its next extraordinary session. 
 
10) Government to propose means of allowing Japan to check progress 
in abduction reinvestigation point by point to ensure efficacy 
 
NIKKEI (Page 2) (Excerpts) 
August 8, 2008 
 
The government on August 7 revealed the approach it would take at 
the Japan-North Korea working level talks that start August 11. 
Regarding the method of reinvestigation into the abductions of 
Japanese nationals, the focus of highest attention at the talks, 
Tokyo will propose a mechanism that would allow the Japanese side to 
check progress in the investigation point by point, instead of 
adopting a joint investigation arrangement. It intends to respond to 
a partial lifting of the economic sanctions against North Korea once 
it starts the reinvestigation and extradites hijackers of the JAL 
airliner Yodo. It will convey this policy to Pyongyang at the 
upcoming meeting. 
 
Several government sources revealed these policy points. The meeting 
will be held on August 11-12 in Shenyang, China. North Korea in the 
previous talks pledged to conduct a reinvestigation into abduction 
cases and cooperate for the handover of hijackers. Japan indicated 
its stance of agreeing to lift three economic sanction items, making 
it a condition that North Korea carries out the reinvestigation. The 
focus of the upcoming meeting is on how far the method of 
reinvestigation and when to start such can be boiled down. 
 
The Japanese government gives top priority to ensuring that the 
results of the reinvestigation are effective. It will use a 
framework that allows it to check the progress point by point so 
that it can prevent a situation in which North Korea tries to close 
the case with an insufficient investigation. To be specific, Japan 
intends to call on North Korea to approve visits by Japanese 
officials to North Korea at every key juncture of the 
 
TOKYO 00002179  008 OF 010 
 
 
reinvestigation so that they can receive explanations from North 
Korea. 
 
11) Koumura: Japan should be involved in work to confirm results of 
North Korea's reinvestigation into abductions 
 
ASAHI (Page 4) (Full) 
August 8, 2008 
 
In an interview with reporters of the Asahi Shimbun and other news 
companies yesterday, Foreign Minister Koumura stressed the need for 
Japan's involvement in confirming the results of North Korea's 
reinvestigation of the issue of Japanese nationals abducted by its 
agents. He said: "North Korea will conduct the investigation, but it 
is naturally possible that Japanese representatives will go there 
and confirm (the investigation results)." The issue of the 
reinvestigation will be on the agenda at the Japan-North Korea 
working-level talks to be held in Shenyang, China, on August 11-12. 
 
Koumura stressed the need for a mechanism to confirm the results of 
the investigation by North Korea so that Pyongyang will conduct an 
investigation that can satisfy Japan. He added that it is necessary 
to decide in the working-level talks how to undertake confirmation. 
 
12) Koumura on poisoned dumplings: Ministry did not publicize it at 
China's request 
 
ASAHI (Page 1) (Full) 
August 8, 2008 
 
Foreign Minister Koumura said yesterday that the ministry had been 
informed by the Chinese government in early July of a poisoning 
outbreak from tainted dumplings in China in June. He then disclosed 
in an interview with reporters from the Asahi Shimbun and other news 
companies that China had asked Japan to keep the information 
confidential. 
 
Speaking before reporters at his official residence last night, 
Prime Minister Fukuda said: "Although my memory is a bit hazy, it 
was probably around the Hokkaido Toyako Summit (on July 7-9)" when 
the government received the information. Fukuda added that he would 
discuss the issue when he meets Chinese leaders in Beijing on Aug. 8 
in pursuit of an early settlement. 
 
According to Koumura, the Chinese Foreign Ministry informed the 
Japanese Embassy in Beijing of the poisoning cases in China in early 
July. He quoted a Chinese official as saying at that time: "We want 
you to withhold the information for now, because the ongoing 
investigation might be hindered. We will keep you up-to-date as new 
information comes in." Koumura said that the information was shared 
by the Prime Minister's Office, the National Police Agency, and the 
Foreign Ministry. Asked about the information being kept 
undisclosed, Koumura said: "That stands to reason." 
 
Koumura said that while keeping the information in mind, Prime 
Minister Fukuda and President Hu Jintao held talks on the sidelines 
of the Toyako Summit and that he and Foreign Minister Yan Jiechi met 
in Singapore in late July. They confirmed that the two countries 
would accelerate cooperative work by their investigative agencies, 
according to Koumura. 
 
Regarding the state of the ongoing investigation, Koumura indicated 
 
TOKYO 00002179  009 OF 010 
 
 
that China has begun to make a response while acknowledging that it 
experienced poisoning cases, saying: "A higher-level Chinese 
official delivered (the new information). I recognize that there has 
been a change in China's response." 
 
13) DPJ criticizes government as "overly weak-kneed" on dumpling 
poisoning cases in China 
 
ASAHI (Page 1) (Full) 
August 8, 2008 
 
In a press conference in Yokohama yesterday, Democratic Party of 
Japan (DPJ) Secretary General Yukio Hatoyama lashed out at Foreign 
Minister Koumura for having kept a poisoning outbreak from tainted 
dumplings in China unpublicized at the request of the Chinese 
government. Hatoyama said: 
 
"The information is too serious to be kept undisclosed at the 
request of the Chinese government. The Japanese government should 
have asserted in a stately way that it would make the information 
public even if asked to hush it up. The government is overly 
weak-kneed, and its response was far from one taken out of 
consideration for the viewpoints of consumers and the people. 
 
14) DPJ drafts treaty on nuclear-weapon-free zones 
 
ASAHI (Page 4) (Full) 
August 8, 2008 
 
The Democratic Party of Japan's (DPJ) parliamentary caucus on 
nuclear disarmament, chaired by Katsuya Okada, compiled a draft 
treaty on nuclear-weapon-free zones in Northeast Asia yesterday. The 
draft calls for translating into action Japan's three nonnuclear 
principles - that the nation will neither possess, nor produce, nor 
allow the introduction of nuclear weapons - in Japan, South Korea, 
and North Korea. The draft covers military facilities in other 
countries, such as U.S. military bases in Japan. The DPJ plans to 
hold a press conference in Nagasaki today to announce it. 
 
15) State Minister for Economic and Fiscal Policy effectively 
acknowledges that economy has taken downward turn; Word "recovery" 
dropped from August monthly report 
 
NIKKEI (Page 1) (Almost full) 
August 8, 2008 
 
The government on August 7 adopted at a meeting of related ministers 
a monthly economic report for August that uses the term "weakening" 
in its overall assessment of the economy. Following a decline in 
industrial output and exports, which have shored up the Japanese 
economy, the latest report dropped the word "recovery," which had 
been used for four years and eight months. Meeting the press, State 
Minister for Economic and Fiscal Policy Kaoru Yosano effectively 
acknowledged that the economy had entered a recessionary phase. He 
said, "The monthly report dropped the word 'recession.' It indicated 
with the word 'weakening' that the economy is beginning to enter a 
phase that does not allow us to view the outlook of the economy 
optimistically." 
 
This is the first time since May 2001, when the economy was on the 
way to a recession, that the government in its monthly report 
assessed the current state of the economy as weakening. Following an 
 
TOKYO 00002179  010 OF 010 
 
 
economic slowdown throughout the world on the backdrop of the credit 
uneasiness originating in the U.S., the Japanese economy, which has 
continued to grow, depending on external demand, is now at a turning 
point. 
 
Among key economic items used to determine the economic outlook, the 
monthly report lowered assessments of exports, industrial output and 
employment conditions. Exports to the U.S. and the EU are declining. 
Corporate production is also dropping due to a slowdown in exports. 
Employment, which had improved gradually, is now in a harsh 
situation. 
 
Concerning the future course of the economy, the monthly report 
noted that slight movement would continue for the time being. Yosano 
indicated that it would be possible for the Japanese economy to 
avoid a deep adjustment, noting, "I am sure that as the global 
economy recovers, the Japanese economy will turn around." 
 
16) Fukuda expresses displeasure at rumored secret deal on power 
transfer 
 
ASAHI (Page 4) (Full) 
August 8, 2008 
 
Speculation has spread that Prime Minister Fukuda promised Taro Aso 
that he would transfer the prime ministership to Aso prior to a 
general election if Aso agreed to become secretary general. Asked by 
reporters whether the speculation was true, Fukuda unpleasantly 
replied: "Is this a report?" Without referring to whether there was 
a secret deal, he cynically said: "Something that has been made 
public is not 'a secret deal'." 
 
Regarding whether he will decide to dissolve the House of 
Representatives for a snap election, Fukuda said: "It is not the 
proper time now to comment, since there is still time." 
 
SCHIEFFER