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RUCNDT/USMISSION USUN NEW YORK 1174

UNCLAS SECTION 01 OF 09 TOKYO 002196 
 
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 08/11/08 
 
Index: 
 
China relations: 
1) In meeting in Beijing, Prime Minister Fukuda, President Hu agree 
to completely resolve poisoned dumpling issue  (Mainichi) 
2) Text of exchange between Prime Minister Fukuda, China's President 
Hu Jintao  (Yomiuri) 
3) No progress in sight in patching up Japan-South Korea relations, 
strained over Takeshima isles issue  (Mainichi) 
 
North Korea problem: 
4) In talks with North Korea that restart today, Japan to pursue 
DPRK promise to reinvestigate the abduction issue  (Mainichi) 
5) Foreign Minister Koumura: If DPRK starts reinvestigation of 
abductions, some sanctions could be removed  (Tokyo Shimbun) 
6) State Minister for Abduction Issue Nakayama acknowledges that if 
new developments occur in talks with North Korea, sanctions could be 
removed  (Nikkei) 
7) Senior U.S. official suggests that North Korea will stay on the 
terror-sponsor list because nuclear "replies are not satisfactory" 
(Yomiuri) 
 
Political agenda: 
8) LDP suddenly turns cautious about passing extension of 
anti-terrorist law that allows MSDF refueling services in the Indian 
Ocean  (Mainichi) 
 
9) Democratic Party of Japan eager to elect Ozawa to another term 
without formal vote in order to ready for anticipated early Lower 
House election  (Nikkei) 
10) August 15 is coming but all is quiet in the Fukuda 
administration over the Yasukuni issue  (Nikkei) 
11) LDP's Koga, who heads the bereaved family association for the 
war dead, calls for separation of Class-A war criminals from 
Yasukuni Shrine  (Nikkei) 
 
The economy: 
12) Private economic think-tanks agree that the economy is likely to 
experience negative growth next period  (Yomiuri) 
13) Farm minister Ota says consumers are too "clamorous" over food 
safety  (Nikkei) 
 
Articles: 
 
1) Japanese, Chinese leaders agree at summit to do their utmost to 
settle gyoza dumpling poisoning incident 
 
MAINICHI (Page 2) (Full) 
August 9, 2008 
 
Prime Minister Yasuo Fukuda on August 8 prior to the opening 
ceremony of the Beijing Olympic Games separately held a meeting with 
Chinese President Hu Jintao and Premier Wen Jiabao for about 40 
minutes each. Fukuda and Hu agreed to aim at settling the 
Chinese-made poisoned dumpling poisoning, regarding which it was 
revealed that there were reports on poisoning in China as well, at 
an early date. Hu stated, "We will investigate what really happened, 
by accelerating investigative cooperation." 
 
Fukuda urged China to provide information, including progress on the 
investigation, pointing out: "The Japanese people have a strong 
interest in the poisoned dumpling incidents. I hope that China will 
 
TOKYO 00002196  002 OF 009 
 
 
solve the case as soon as possible. I would like to solicit further 
cooperation." Meeting the press after the summit, Fukuda told a news 
conference, "I believe Japan and China will make progress on their 
effort to unravel the truth." 
 
Referring to a case in which a Japanese reporter was assaulted by a 
policeman in the Uighur Autonomous Region of China, Fukuda during 
his meeting with Wen said, "The incident is very regrettable." Wen 
responded, "We attach importance to what happened. We would like to 
secure the safety of Japanese reporters." Fukuda also called on 
China to make improvements on the Tibet issue. Wen indicated the 
Chinese government's stance of continuing a dialogue with the 14th 
Dalai Lama. Fukuda will leave Beijing in the early hours of the 9th 
and attend the Nagasaki Atomic Bomb Victims Memorial Peace Prayer 
Ceremony to be held in Nagasaki on the morning of the same day. 
 
2) Text of exchanges between Prime Minister Fukuda and China's 
President Hu Jintao 
 
YOMIURI (Page 4) (Full) 
August 9, 2008 
 
Japan-China relations 
 
Prime Minister Fukuda: Congratulations on the Olympics opening 
ceremony. I am praying for the speedy recovery of Sichuan from the 
earthquake disaster. 
 
President Hu: I feel deep friendship for Japan as a result of your 
precious cooperation and assistance after the great Sichuan 
earthquake. The strategic, mutually beneficial relationship between 
China and Japan is contributing to the stability of the entire 
world. It is important that we further deepen ties. 
 
Poisoned dumpling incidents 
 
Fukuda: The concern of the Japanese public is very high. I am hoping 
for progress in the investigation and a rapid resolution of the 
issue. I would like to strengthen cooperation to clear up the truth, 
including the relationship to the poisoning incidents that occurred 
in China in June. Information disclosure is extremely important. 
 
Hu: We are consistently giving priority to this issue. I would like 
to put in every effort to resolve it as quickly as possible. 
 
Bilateral relations 
 
Fukuda: We are hoping to move Japan-North Korea relations forward, 
as well, including the abduction issue. We hope to see China work on 
that country. 
 
Hu: I wish to see normalization of relations between Japan and North 
Korea, as well as progress on the nuclear issue at the same time. 
 
Incident of violence against Japanese reporters in the Xinjiang 
Uighur autonomous region 
 
Fukuda: We regret very much this incident. 
 
Hu: We are giving priority to this incident, and will handle it 
properly. We welcome Japanese reporters covering the news, and will 
secure their safety. 
 
TOKYO 00002196  003 OF 009 
 
 
 
Tibet issue 
 
Fukuda: We hope for leadership to be displayed to correct the 
situation through dialogue. 
 
Hu: The essence of the problem lies in the issue of (the country's) 
unified yet split situation. There have been two dialogues with the 
Dalai Lama's side. The dialogue will continue. 
 
3) Japan-South Korea summit meeting not held due to Takeshima islets 
issue still remaining 
 
MAINICHI (Page 2) (Excerpts) 
August 9, 2008 
 
The Japan-China summit meeting on August 8 served as a venue for 
both countries to play up friendly bilateral ties, as seen by 
President Hu Jintao warmly receiving Prime Minister Fukuda, setting 
their meeting for the day of the opening ceremony of the Beijing 
Olympic Games. However, this was the only formal summit Fukuda held. 
A meeting with South Korea's President Lee Myung Bak was not held 
due to hard feelings left by the Takeshima islets issue. A challenge 
that Japanese diplomacy is facing has been revealed against the 
backdrop of the Olympic opening ceremony, in which China 
demonstrated its vigor as a major power. 
 
President Lee Myung Bak attended the opening ceremony. But not even 
an attempt to coordinate views or schedules was made in order to set 
up a bilateral summit. One senior Foreign Ministry official 
revealed, "Given the state of public opinion in South Korea, the 
situation does not allow us to hold a summit." The situation is not 
yet conductive to allow a meeting with a North Korean senior 
official, either, even though Supreme People's Assembly Presidium 
Kim Yong Nam attended the opening ceremony. Despite China's 
favorable treatment, Japan's diplomacy clearly faces a severe 
reality. 
 
4) In talks to start today, Japan to call on North Korea to 
determine details about investigation of abductions 
 
MAINICHI (Page 2) (Excerpts) 
August 11, 2008 
 
(Furumoto, Shenyang) 
 
Japan and North Korea will hold official working-level talks in 
Shenyang, China, on Aug. 11-12, with an eye on a resumption of talks 
by the working group on normalizing bilateral diplomatic relations 
set up in the six-party talks. The talks will take place after a 
hiatus of two months since the ones in Beijing in June, in which 
North Korea agreed to reinvestigate the issue of its past abductions 
of Japanese nationals. 
 
Japan aims to bring about an agreement to (1) determine specifics, 
including who should be selected as investigation committee members 
and when the reinvestigation should be conducted; and (2) create a 
mechanism to enable Japan to verify the credibility of the 
investigation at any time. The talks will also focus on when Japan 
would partially lift its economic sanctions against North Korea. 
 
Japan is set to approve an independent investigation by North Korea, 
 
TOKYO 00002196  004 OF 009 
 
 
instead of a joint one with Japan. This decision stems from the 
judgment that even if Japanese police officers join it, the 
investigation will become limited because they cannot use public 
authority in North Korea and that the North might cite their 
participation as an excuse for a limited investigation. 
 
To bring about an effective investigation, Japan will ask the North 
to have an investigative agency with its authority to undertake the 
investigation with responsibility and announce the timing of the 
start and end of the investigation. Japan will also ask the other 
side to set up an arena for Japan to seek explanations and express 
its views about the contents of the investigation. 
 
If North Korea accepts these Japanese proposals, Pyongyang will 
likely to call on Japan to swiftly remove its economic sanctions, 
but Tokyo has decided to lift sanctions at the time when the North 
starts reinvestigation, based on the principle of action for action. 
Japan is also considering the possibility of carrying out the terms 
of the agreement reached in June step-by-step, in accordance with 
the contents of North Korea's agreement. 
 
5) Japan may partially lift sanctions if N. Korea reinvestigates 
abductions: Koumura 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 11, 2008 
 
Foreign Minister Masahiko Koumura, appearing yesterday on an NHK TV 
program, discussed the working-level talks to be held between Japan 
and North Korea in China's Shenyang from today. He indicated that 
the Japanese government would lift some of its economic sanctions on 
North Korea as it had decided at the last round of talks in June to 
do so. "If they determine how to discover and repatriate survivors 
(on the issue of Japanese nationals abducted to North Korea), and 
when we confirm that they have started their reinvestigation, we 
will then ease the sanctions, though slightly," Koumura said. 
 
Koumura also mentioned his outlook: "We want them to clearly show us 
how they will reinvestigate the issue to repatriate survivors. We 
want them to get it started as soon as possible." 
 
Concerning food poisoning from frozen 'gyoza' dumplings made in 
China, Koumura clarified that he would visit China on Aug. 16-18 to 
meet with Chinese Foreign Minister Yang Jiechi and ask China to 
accelerate investigations into the incident. 
 
6) Abduction Minister Nakayama: Sanctions may be lifted if there is 
new developments 
 
NIKKEI (Page 2) (Full) 
August 11, 2008 
 
Appearing on an NHK program yesterday; Kyoko Nakayama, minister in 
charge of abduction affairs, made this remark regarding a 
reinvestigation of the abduction issue that North Korea had 
promised: 
 
"It would be a new development if it becomes clear that North Korean 
leaders and senior officials would take action to have the remaining 
Japanese abductees in North Korea returned to Japan. If the 
situation changes, there would be a possibility of Japan removing 
sanctions." 
 
TOKYO 00002196  005 OF 009 
 
 
 
Foreign Minister Masahiko Koumura stressed: "If a concrete 
reinvestigation method is decided and if our side agrees to it, we 
will do what we promised after we confirm the initiation of the 
reinvestigation." 
 
7) U.S. to put off delisting decision; senior official: "We have not 
received satisfactory reply" 
 
YOMIURI (Page 2) (Full) 
August 11, 2008 
 
(Kurose, Beijing) 
 
In a press conference in Beijing on Aug. 10, Dennis Wilder, a senior 
official of the White House National Security Council (NSC), 
announced that the Bush administration will most likely decide to 
delay implementing its decision to delist North Korea as a state 
sponsor of terrorism from the initial Aug. 11 deadline. Wilder said: 
"I think it is reasonable to say that tomorrow will come and go 
without anything happening." 
 
Wilder said: "The U.S. will continue talks with North Korea" with 
the aim of reaching an agreement on procedures for verifying the 
contents of North Korea's declaration on its nuclear development 
programs. But he added: "We have not received a satisfactory reply 
yet" from North Korea about a verification plan presented by the 
U.S. 
 
According to Wilder, U.S. Assistant Secretary of State Christopher 
Hill, the chief envoy to the six-party talks, is now engaged in 
consultations with China on the delisting issue in Beijing, timing 
it with President Bush's visit to China. 
 
8) LDP cautious about extending antiterror law 
 
MAINICHI (Page 2) (Full) 
August 11, 2008 
 
Taro Aso, secretary general of the ruling Liberal Democratic Party, 
and other LDP executives have now turned cautious about extending 
the new Antiterrorism Special Measures Law at the next extraordinary 
Diet session to continue the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean to back up antiterror operations in 
Afghanistan. Aso's predecessor, former LDP Secretary General Bunmei 
Ibuki, intended to get a bill through the Diet extending the law 
even by taking a second vote in the House of Representatives, 
assuming the bill would be voted down in the opposition-controlled 
House of Councillors. However, Aso and LDP General Council Chairman 
Sasagawa intend to prioritize dialogue with the opposition bench and 
will consider such antiterror assistance measures as tasking the 
MSDF with escorting tankers instead of refueling activities. 
Meanwhile, New Komeito, the LDP's coalition partner, is reluctant to 
extend the law, with an eye on a potential dissolution of the House 
of Representatives for a general election. Aso and other LDP leaders 
are therefore believed to be showing consideration for New Komeito 
and aiming to obtain cooperation from the leading opposition 
Democratic Party of Japan (Minshuto) on other antiterror backup 
measures. 
 
Aso met the press after becoming LDP secretary general. In his 
inaugural press remarks, he stressed: "I don't want to go straight 
 
TOKYO 00002196  006 OF 009 
 
 
away for the option of taking a second vote in the House of 
Representatives. It's most important to hold inter-party talks." He 
then proposed: "If the opposition parties are against refueling, we 
will have to consider such measures as having the Self-Defense 
Forces escort Japanese oil tankers." Sasagawa also made a similar 
remark. LDP Election Strategy Council Chairman Makoto Koga, 
appearing on a TV program aired on Aug. 8, also suggested the need 
for the LDP to do all it can to talk with the opposition parties 
about Japan's international contributions other than refueling. 
 
One of the LDP's four top executives explained what Aso meant to say 
about his proposal of escorting tankers: "Japan is providing free 
oil while its prices are rising, and the government plans to extend 
the mission. This alone can't hook up the DPJ like fishing. We 
should prepare various ideas and call on the DPJ for talks." 
 
The LDP leadership is now about to switch Ibuki's policy course due 
in part to New Komeito's reluctance to take a second vote in the 
House of Representatives. New Komeito anticipates that the House of 
Representatives would be dissolved later this year or early next 
year for a general election. The party therefore insists on calling 
an extraordinary Diet session in late September to shorten it. 
 
However, the government is going to extend the MSDF's Indian Ocean 
refueling mission in order for Japan to continue its cooperation on 
the U.S.-led war on terror. However, Chief Cabinet Secretary 
Nobutaka Machimura is negative about the idea of escorting tankers. 
"We must think well about whether it can be an international 
antiterror measure," he said on Aug. 6. One senior official of the 
Defense Ministry indicated that the idea be unrealistic, saying it 
could conflict with the constitutional prohibition of Japan from 
exercising the right of collective self-defense. 
 
9) Early Diet dissolution possibility having an impact on the DPJ 
presidential election: Momentum building to argument for reelecting 
incumbent without a vote 
 
NIKKEI (Page 2) (Excerpt) 
August 11, 2008 
 
It is a month now until the Democratic Party of Japan (DPJ) will 
announce on Sept. 8 that it will hold a party presidential election. 
While those calling for the incumbent Ichiro Ozawa to be supported 
for a third term are increasing, rival candidates continue to 
posture. The party is preparing for Diet dissolution and a snap 
election expected by the end of the year. So in a mood of giving 
priority to a Lower House election over a party election, the voices 
of those saying that the party would lose its vitality without a 
formal election are being drowned out. 
 
10) Prime Minister Fukuda has no plan to visit Yasukuni Shrine on 
Aug. 15; Forgoes allocating feasibility study money for construction 
of new national memorial facility 
 
NIKKEI (Page 2) (Excerpts) 
August 11, 2008 
 
Prime Minister Yasuo Fukuda has no plan to visit Yasukuni Shrine on 
August 15, the anniversary of the end of World War II. He also will 
forgo a plan to allocate funds for a feasibility study on building a 
new national memorial facility, a project that came up while he was 
serving as chief cabinet secretary in the government of Prime 
 
TOKYO 00002196  007 OF 009 
 
 
Minister Junichiro Koizumi. He intends to take a somewhat aloof 
attitude toward the Yasukuni issue in order to prevent it from 
becoming a political issue. Under the Fukuda cabinet, the Yasukuni 
issue has disappeared, from the central political stage, although it 
drew political strong attention in the Koizumi and Abe cabinets. 
 
Fukuda told the press corps on Aug. 5 that he would not visit 
Yasukuni Shrine: "I will attend a memorial service for the war dead 
on Aug. 15. I want to pay my respects at the Chidorigafuchi National 
Cemetery." Among the new cabinet ministers, only Justice Minister 
Okiharu Yasuoka has stated he will visit Yasukuni Shrine on Aug. 15. 
Agriculture, Forestry and Fisheries Minister Seiichi Ota said: "I 
will probably go there." 
 
It is not that Fukuda lacks interest in the annual memorial service 
for the war dead. He has on Aug. 15 every year paid his respects at 
the Shinto shrine in Takasaki City, Gunma Prefecture, his hometown, 
except for the year when he served as chief cabinet secretary. A 
person close to Fukuda said: "(Fukuda) has privately visited 
Yasukuni Shrine, thinking that it is not good to visit the shrine 
along with many other politicians." 
 
Fukuda is only remotely connected to the Japan Association for the 
Bereaved Families of the War Dead (Izokukai). He took part in only 
two events held by the association -- one in September 2002 as chief 
cabinet secretary and the other in November 2007 as prime minister. 
 
During his tenure as chief cabinet secretary, Fukuda headed the 
government's informal council to consider what kind of a memorial 
facility Japan should build. The panel in December 2002 issued a 
report proposing the construction of a new national memorial 
facility for all the war dead that would not be connected with any 
religious faith. 
 
However, the government has forgone allocating money for a 
feasibility study for the construction of a new memorial facility 
because some Liberal Democratic Party (LDP) lawmakers and the 
Izokukai have strongly reacted to the idea. Kaoru Yosano, minister 
of state for economic and fiscal policy, once referred to the 
possibility of expanding the Chidorigafuchi National Cemetery in 
order to place there the ashes of foreigners who died in World War 
II. However, nothing specific has ever happened. 
 
11) Izokukai Chairman Makoto Koga says in interview, "Discussion to 
remove enshrined Class-A war criminals from Yasukuni Shrine 
unavoidable" 
 
NIKKEI (Page 2) (Full) 
August 11, 2008 
 
-- How does the Japan Association for the Bereaved Families of the 
War Dead think about how Yasukuni Shrine should be? 
 
Makoto Koga: For the bereaved families of the war dead, Yasukuni 
Shrine is the only memorial facility in our country. But it is 
extremely regrettable that all the Japanese do not think that 
Yasukuni Shrine is a facility to pay respects for their ancestors 
and pray for peace. We have studied how we should go about in order 
to have all the people pay their respects at the shrine. It is not 
good that Yasukuni Shrine remains as is. 
 
-- Do you think the argument to remove the enshrined Class-A war 
 
TOKYO 00002196  008 OF 009 
 
 
criminals from Yasukuni Shrine will become an issue? 
 
Koga: I don't think so because the Izokukai has been discussing it. 
However, a view calling for separating the Class-A war criminals 
from Yasukuni will probably come up. I think we will need to discuss 
it. We cannot avoid it and we must not avoid it. 
 
12) Negative growth in GDP for April-June quarter expected, 
according to projection by private research centers 
 
YOMIURI (Page 2) (Full) 
August 11, 2008 
 
The likelihood is now that the gross domestic product (GDP) in the 
April-June quarter to be released by the Cabinet Office on August 13 
will move into the negative territory in real terms, which exclude 
fluctuations in prices. This is due to a sharp fall in exports and 
consumption. 
 
All major private research centers have projected negative growth in 
GDP, compared with the previous quarter. The average number 
predicted by the seven research centers is a negative 0.7 PERCENT 
or a 2.8 PERCENT  drop in annual terms, compared with the previous 
quarter. 
 
 
Regarding exports, which had been robust up until the previous term, 
all seven research centers predicted negative growth in comparison 
with the previous term. The average number is a negative 2.7 PERCENT 
. It would be the first drop in about three years since the 
January-March quarter in 2005, if it turns out that exports in that 
quarter have actually declined into the negative territory. 
 
Projection of GDP growth in real terms for April-June quarter 2008 
by private research centers 
 
Dai-ichi Life Research Institute -0.8  (-3.2) 
Mitsubishi Research Institute -0.7 (-2.9) 
Daiwa Institute of Research -0.6 (-2.4) 
NLI Research Institute -0.7 (-2.9) 
Nomura Securities Financial and Economic Research Institute -0.6 
(-2.5) 
Mizuho Research Institute -0.8 (-3.1) 
Japan Research Institute -0.6 (-2.6) 
Average figure -0.7 (-2.8) 
Track record in January-March quarter   1.0 ( 4.0) 
 
 PERCENT  growth rate in comparison with the previous term. Figures 
in parentheses are annual growth rates compared with the previous 
term. 
 
13) Consumers "noisy" about food safety: Ota 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
August 11, 2008 
 
Agriculture Minister Seiichi Ota, appearing on an NHK TV talk show 
aired yesterday, said Japan is "particular about cleanliness" when 
it comes to food safety. "So," Ota went on, "there's no need to 
worry about domestic food products." He added, "If people as 
consumers noisily say this and that, then we have to answer them." 
 
 
TOKYO 00002196  009 OF 009 
 
 
In the wake of disguising or mislabeling food products and food 
poisoning from frozen 'gyoza' dumplings made in China, Prime 
Minister Fukuda set forth his initiative to create a consumer agency 
and appealed on ensuring food safety. However, the opposition 
parties are strongly opposed to the idea of creating a consumer 
agency. One opposition party lawmaker noted, "The public is 
bothersome, so he will create a consumer agency. That's what he 
means." 
 
Asked about food safety in the show, Ota stressed: "Japan is 
different from a country where it's all right to cover up anything 
troublesome like China, which is a socialist country, and Japan is 
also different from a country where it's all right to give no 
thought to consumers." 
 
Ota specified the traceability of information about food production 
and distribution as well as food sanitation control called HACCP, 
short for hazard analysis and critical point. In this regard, Ota 
said, "Japan is safe." "But," he also said, "consumers are noisy, so 
we will do it in an even more thoroughgoing way." 
 
SCHIEFFER