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UNCLAS SECTION 01 OF 14 TOKYO 002215 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 08/12/08 
 
INDEX: 
 
(1) North Korea to announce start of reinvestigation of abduction 
issue, premised on Japan's conditions (Asahi) 
 
(2) Postponement of removal of North Korea from U.S. list of state 
sponsors of terrorism - part 1 (Yomiuri) 
 
(3) Postponement of removal of North Korea from U.S. list of state 
sponsors of terrorism - part 2 (Yomiuri) 
 
(4) Japan welcomes U.S. decision to put off delisting North Korea as 
state sponsor of terrorism (Mainichi) 
 
(5) Editorial: Need for an approach that does not allow North Korea 
to stall for time (Nikkei) 
 
(6) Futenma Air Station noise pollution plaintiff's group adopts 
resolution demanding Maher leave Okinawa (Ryukyu Shimpo) 
 
(7) Man killed in traffic accident on local street in Uruma City 
(Okinawa Times) 
 
(8) Interview with Defense Minister Yoshimasa Hayashi: War on 
terror-Its significance needs to be reconfirmed (Tokyo Shimbun) 
 
(9) 90 PERCENT  of DPJ prefectural chapters support Ozawa's third 
term in office; 60 PERCENT  call for carrying out presidential 
election (Mainichi) 
 
(10) Poll on Fukuda cabinet, political parties (Yomiuri) 
 
(11) Gap in perspectives for economic measures between government, 
ruling coalition (Nikkei) 
 
(12) Interview with Daniel Berman, former U.S. Embassy 
minister-counselor for agricultural affairs (Part 2) (Nihon Nogyo 
Shimbun) 
 
(13) Interview with Daniel Berman, former U.S. Embassy 
minister-counselor for agricultural affairs (Part 3) (Nihon Nogyo 
Shimbun) 
 
(14) TOP HEADLINES 
 
(15) EDITORIALS 
 
(16) Prime Minister's schedule, Aug. 11 (Nikkei) 
 
ARTICLES: 
 
(1) North Korea to announce start of reinvestigation of abduction 
issue, premised on Japan's conditions 
 
ASAHI (Page 1) (Excerpts) 
Eve., August 12, 2008 
 
By Yoshihiro Makino in Shenyang, China 
 
In formal working-level talks between foreign ministry officials of 
Japan and North Korea, North Korea has basically accepted Japan's 
request centering on the method of carrying out a reinvestigation of 
 
TOKYO 00002215  002 OF 014 
 
 
the abduction victims, and it is expected to announce that it will 
start the actual reinvestigation process. In talks that started on 
Aug. 11, North Korea informed the Japanese side of such a course of 
action, and in the talks today, the timing of the investigation and 
the length of the process are likely to be firmed up. 
 
This was revealed by a source connected to North Korea. In the talks 
that are being held in Shenyang, China, Song Il Ho, North Korea's 
ambassador for normalization talks with Japan, and Akitaka Saiki, 
director general of the Foreign Ministry's Asia-Pacific Bureau 
participated. They met today, the final day of the talks, at a 
Shenyang hotel mainly to exchange views on the method of the 
reinvestigation. 
 
(2) Postponement of removal of North Korea from U.S. list of state 
sponsors of terrorism - part 1: U.S. remains hard-line about 
verification; North Korea waiting for U.S. to make concessions with 
only five months to go until term of Bush administration ends 
 
YOMIURI (Page 3) (Excerpts) 
August 12, 2008 
 
U.S. Secretary of State Rice on August 11 announced the government's 
decision to put off the removal of North Korea from its list of 
state sponsors of terrorism. This is because the U.S. has yet to 
reach an agreement with North Korea on procedures to verify its 
nuclear report. The Bush administration, which was criticized for 
making concessions to North Korea, is standing firm when it comes to 
specific procedures for verification of North Korea's nuclear 
report. Seeing through the Bush administration's impatience as its 
term approached the end, North Korea is taking a strategy of buying 
time. Whether the U.S. can stick to its severe stance toward North 
Korea is unclear. With stagnation now inevitable in the six-party 
talks' process, bilateral talks between the U.S. and North Korea are 
taking on an aspect of a war of nerves. 
 
The U.S. government had at first indicated an optimistic outlook 
that both countries would reach an agreement on specific 
verification procedures and that North Korea would be removed from 
the U.S. list of state sponsors of terrorism within 45 days after it 
notified the Congress on June 26 of its intention to rescind North 
Korea's designation as a state sponsor of terrorism. According to a 
U.S. government official, North Korea had pledged to render full 
cooperation on verification. 
 
North Korea completely changed its attitude after the U.S. 
government handed over a draft for verification procedures to North 
Korea at a meeting of chief envoys to the six-party talks held in 
Beijing for three days starting on July 10. According to the draft, 
which this newspaper has obtained, the U.S. called on North Korea: 
1) to allow free access to all nuclear facilities and 2) accept 
strict verification procedures targeting nuclear weapons that are 
not included in the report, a nuclear program that uses 
highly-enriched uranium, and nuclear cooperation that it has 
provided to other countries. 
 
North Korean Vice Foreign Minister Kim Kye Gwan, chief envoy to the 
six party talks, wanted North Korea to be treated as a nuclear 
power. He said: "North Korea cannot grant a request for the removal 
of samples. We cannot approve the U.S. bringing in verification 
equipment, either." 
 
 
TOKYO 00002215  003 OF 014 
 
 
The gulf between the U.S. and North Korea over verification 
procedures remains wide. A source familiar with the details of the 
talks revealed, "North Korea only intends to accept verification of 
nuclear facilities at Yongbyon." 
 
Given that President Bush's term of office will soon end, the DPRK 
is determined to wait and see if Washington will give in and make 
concessions. According to a former senior U.S. government official, 
who was involved in the nuclear talks, North Korea hopes that the 
U.S. will end its hostile policy toward it, once it is removed from 
the U.S. list of state sponsors of terrorism with its nuclear 
weapons still in hand. This official said that for North Korea, it 
is out of the question to submit to verification that involves its 
nuclear weapons. North Korea will likely press the U.S. to accept 
its demand by delaying the nuclear disabling work now under way at 
nuclear facilities at Yongbyon. 
 
The Bush administration's true intention is not to lose momentum: In 
order to chalk up achievements in its nuclear talks with North 
Korea, it needs to delist it as soon as possible. However, if the 
U.S. makes a compromise in an easy-going manner on the verification 
process, plans to move to the next targets for denuclearization, the 
six party talks' final goal, would collapse. Caught on the horns of 
a dilemma, the U.S. is forced to negotiate from a tough stance. 
 
(3) Postponement of removal of North Korea from U.S. list of state 
sponsors of terrorism - part 2: Japan welcomes move 
 
YOMIURI (Page 3) (Excerpts) 
August 12, 2008 
 
Following a telephone conversation with U.S. Secretary of State 
Rice, in which she conveyed the U.S. decision not to remove North 
Korea from its list of state sponsors of terrorism, Foreign Minister 
Koumura, looking satisfied, told reporters, "I thought there could 
not be a delisting of North Korea. This is the natural outcome." 
Since the Japanese government had regarded the designation of North 
Korea as a state sponsor of terrorism as a tool to promote its own 
bilateral agenda, such as the abduction issue, it is welcoming the 
outcome. 
 
Since the U.S. government decided to take off North Korea from the 
list, the Japanese government has repeatedly asked the U.S. through 
foreign ministerial meetings and on other occasions to step up 
pressure on North Korea regarding the abduction issue, as well. The 
Japanese government takes it that North Korea agreed to hold the 
Japan-North Korea formal working-level talks, now going on in 
Shenyang, China, from August 11 after a hiatus of two months, in the 
form of responding to the U.S. government call with an eye on its 
removal from the list on or after August 11. As a matter of fact, 
the ongoing talks were realized when the North Korean side proposed 
a date in August. However, whether North Korea will come up with a 
positive response at the negotiating table is still unclear. 
 
Though at the outset of the talks on the 11th, Akitaka Saiki, 
director general of the Asian and Oceanian Affairs Bureau of the 
Foreign Ministry, and Song Il Ho, ambassador for normalization talks 
with Japan, shook hands, they remained grim through the talks. 
Concerning the lifting or easing of Japan's sanctions against that 
nation, Saiki during the talks proposed, "If North Korea takes a big 
step forward, Japan would take a big step forward, too. If it makes 
a small step forward, Japan would do the same." However, North Korea 
 
TOKYO 00002215  004 OF 014 
 
 
stopped short of clarifying its stance toward a reinvestigation into 
abduction cases, which it pledged. 
 
If North Korea comes up with a concrete approach to the 
reinvestigation of abduction cases, Japan would be pressed to make 
decisions on when to partially lift or ease its sanctions against 
North Korea and whether to take part in energy assistance to that 
nation. If the Fukuda administration stumbles over this issue amid 
public opinion in Japan remaining harsh toward the arrangement, it 
could suffer a setback. 
 
(4) Japan welcomes U.S. decision to put off delisting North Korea as 
state sponsor of terrorism 
 
MAINICHI (Page 2) (Full) 
August 12, 2008 
 
The Japanese government welcomes the U.S. government's decision to 
put off delisting North Korea as a state sponsor of terrorism, 
believing that it would become pressure to force Pyongyang to carry 
out stricter nuclear verification. The U.S. decision to delay 
removal of the North from its list of terrorism-sponsoring nations 
will likely affect Pyongyang's response in bilateral talks between 
Japan and North Korea, which are now going on in Shenyang, China. 
 
The U.S. government notified Congress in June of its decision to 
remove North Korea from the terrorism blacklist after carrying out 
bilateral talks on delisting. 
 
Japan, however, was concerned about the exclusion of nuclear weapons 
from the subjects of the North's declaration report. It was also 
concerned about the possibility of the process of North Korea's 
denuclearization becoming ambiguous. Tokyo has insisted that the 
verification of nuclear weapons is extremely important in order to 
realize the denuclearization of North Korea. 
 
Foreign Minister Masahiko Koumura told reporters: "I was convinced 
that (delisting) would never occur unless North Korea agreed to 
concrete verification." Since Japan's various efforts were meant to 
make sure North Korea was effectively denuclearized, the U.S. 
decision to postpone delisting this time around meets Japan's 
policy. 
 
However, there is no change in the situation that the U.S. 
government can remove at anytime North Korea from the list of state 
sponsors of terrorism. Moves over delisting will proceed centering 
on U.S.-DPRK talks from now on, as well. 
 
(5) Editorial: Need for an approach that does not allow North Korea 
to stall for time 
 
NIKKEI (Page 2) (Full) 
August 12, 2008/08/12 
 
U.S. Secretary of State Condoleezza Rice has told the Japanese 
government that the United States will not remove North Korea from 
its list of terrorist-sponsoring states on August 11, which was 
considered the initial deadline. The reason is that North Korea 
failed to respond sincerely to the flexible US policy. Not only the 
Bush administration, but also the next U.S. presidency will be 
pressed to review policy toward North Korea. 
 
 
TOKYO 00002215  005 OF 014 
 
 
On August 10 (U.S. time), 45 days will have passed since President 
Bush notified Congress of his intention to remove North Korea from 
the list of terrorist-sponsoring states. The Department of State 
initially explained that North Korea would be delisted on August 11 
unless Congress adopted a resolution opposing the move. However, 
Dennis Wilder, senior director for Asian affairs at the White House, 
gave a different interpretation at a news conference on August 4, 
saying, "August 11th is the opening of the window for this; it is 
not a deadline." 
 
While Wilder's comments indicated that the United States plans to 
further watch North Korea's moves, a presidential election will be 
held in the United States in less than three months. It would be 
difficult and unacceptable for the Bush administration to make 
concessions that would tie down the next administration. The next 
U.S. president, whether it be Obama or McCain, will have to review 
policy toward North Korea during the closing days of the Bush 
administration. 
 
The Bush administration initially took a hardline policy toward 
North Korea. At the six-party talks in September 2005, North Korea 
pledged to "abandon all nuclear weapons and existing nuclear 
programs," indicating that the Bush administration's approach seemed 
to be working. However, North Korea then conducted a nuclear test in 
October 2006, and the Bush administration suffered defeat in the 
midterm elections held that November. Consequently, the Bush 
administration shifted to a reconciliatory policy in January 2007. 
 
The result of this policy shift was the agreement reached at the 
six-party talks in February 2007. The US plan in June this year to 
delist North Korea as a terrorist-sponsoring state is also an 
extension of the policy shift. Although the details of an aid 
package for North Korea were decided at the six-party talks in July, 
no agreement was reached on the specifics of a verification protocol 
for North Korea's denuclearization. 
 
This outcome could have easily been predicted, considering North 
Korea's strategy to use the nuclear issue for political purposes. 
The Bush administration took the risk of pinning hopes on North 
Korea's "good will" and notified Congress of its intention to remove 
North Korea from the terrorist black list. The postponement of North 
Korea's delisting signifies that the Bush administration itself 
admitted that its hopes were betrayed. Just as expected, North Korea 
merely took advantage of this matter to buy time, indicating that 
Rice and Assistant Secretary of State Christopher Hill made an error 
in judgement. 
 
North Korea will likely present a small concession in the 
not-so-distant future and press for implementation of the aid 
package. Bush, who will be stepping down soon, cannot go along with 
that. It even appears that the six-party talks framework, which was 
initially established to contain North Korea, has been transformed 
into an organization for assisting North Korea. The next 
administration needs to conduct a thorough review of U.S. policy 
toward North Korea, including this point. The day that North Korea 
can be made to completely scrap its nuclear ambitions is still 
regrettably far away. 
 
(6) Futenma Air Station noise pollution plaintiff's group adopts 
resolution demanding Maher leave Okinawa 
 
RYUKYU SHIMPO (Page 3) (Full) 
 
TOKYO 00002215  006 OF 014 
 
 
August 9, 2008 evening edition 
 
Ginowan - A plaintiff's group (headed by Zenjrio Shimada) in the 
U.S. Marine Corps Futenma Air Station noise pollution suit held its 
annual general meeting for fiscal 2008 on 8 August at the Ginowan 
City Central Community Center. The group unanimously adopted a 
resolution demanding that Consul General Kevin Maher of the US 
Consulate in Okinawa "leave the island," in response to Maher's 
remarks questioning "why Ginowan City has permitted construction (of 
homes) in off-base areas near the runway." In the "resolution 
demanding that Maher leave the island," the plaintiff's group 
explained how US military bases were established on Okinawa, 
pointing out that "the US military confiscated the local residents' 
land after landing on Okinawa during World War II and built an 
airfield (in Futenma)." It claimed that this was "a serious 
violation of international law." 
 
The plaintiff's group cited the verdict of the first hearing on the 
Futenma noise pollution suit, in which "the judge ruled out the 
central government's argument of "moving close to danger (kiken e no 
sekkin)," (the argument that those who built homes close to the 
runway should have known what to expect, and the government, 
therefore, does not have to pay compensation) and condemned the 
abnormal usage of Futenma Air Station as illegal. It went on to make 
the following demand: "We protest with anger against anti-Okinawa 
behavior that Consul General Maher has shown on a number of 
occasions, even though he was fully aware of the verdict, and demand 
that he leave Okinawa immediately." 
 
The protest resolution was addressed to the U.S. Secretary of State, 
the U.S. Embassy in Japan, and the U.S Consulate General in 
Okinawa. 
 
Shimada explained the significance of the resolution, saying: "We 
cannot tolerate any behavior that defies the feelings of the 
Okinawan people. In particular, we, who have filed a complaint, must 
raise our voices. Tsutomu Arakaki, who heads the defense team, 
called on more people to join the plaintiff's group, saying: "The 
fact that the court for the first time condemned the roaring noise 
at Futenma Air Station as illegal carries great significance. 
Anyone who lives in an area where the W-value (Weighted Equivalent 
Continuous Perceived Noise Level) exceeds 75 can become a plaintiff. 
Please call out to get a lot of people to join the plaintiff's 
group." 
 
At the general meeting, Ginowan Mayor Yoichi Iha, who returned from 
his US visit, gave a briefing on his petition mission. The 
plaintiff's group also adopted its action policy for fiscal 2008 and 
a general meeting declaration, among other matters 
 
(7) Man killed in traffic accident on local street in Uruma City 
 
OKINAWA TIMES (Page 5) (Full) 
August 11, 2008 evening edition 
 
A passenger vehicle driven by a member of the U.S. Navy in her 20s 
collided head-on with a motorcycle driven by a 36-year-old man 
around 0650 hours local time on August 11 on a local street in Taba, 
Uruma City.  The man was seriously injured and was carried 
unconscious to a hospital, but was confirmed dead about one hour 
later. The Uruma police are trying to confirm the man's identity and 
investigating the cause of the accident. 
 
TOKYO 00002215  007 OF 014 
 
 
 
(8) Interview with Defense Minister Yoshimasa Hayashi: War on 
terror-Its significance needs to be reconfirmed 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 11, 2008 
 
-- How will you reform the Defense Ministry? 
 
Defense Minister Hayashi: We must recover public trust, and that 
will lead to raising the Self-Defense Forces' morale. I will 
steadily implement the Defense Ministry Reform Council's report of 
recommendations (such as mixing the Defense Ministry's bureaucracy 
and the SDF's staff offices). 
 
-- On the issue of relocating the U.S. military's Futenma airfield, 
Okinawa is calling for the government to change its plan. 
 
Hayashi: The current plan is the one with a balance of various 
factors, including the natural environment and feasibility. So it 
would be difficult to change it without rational reason. 
 
-- The Maritime Self-Defense Force is currently tasked with 
refueling activities in the Indian Ocean under the new Antiterrorism 
Special Measures Law. But this law is set to run out in January next 
year. Will the government present a bill to the Diet to extend the 
MSDF's refueling mission there? 
 
Hayashi: The government has yet to decide on that matter. In the 
Sept. 11, 2001 terrorist attacks on the United States, Japanese 
nationals were also victimized. We must reconfirm the significance 
of the war on terror and explain it. 
 
-- Oil prices are now rising, and there is also a strong criticism 
of Japan's free refueling services. 
 
Hayashi: The MSDF's refueling activities there help secure the sea 
lane (between oil producing countries and Japan). We need to 
reconfirm this fact as well. 
 
-- Liberal Democratic Party Secretary General Taro Aso has come up 
with his idea of having the MSDF escort Japanese oil tankers. 
 
Hayashi: I have the impression that it wouldn't be so easy to do so. 
In that case, other countries may raise a question about Japan 
engaging the MSDF in the task of escorting its tankers only. 
 
-- What do you think about the idea of creating a permanent law 
allowing Japan to send SDF troops overseas as needed? 
 
Hayashi: That's important in the medium- and long-term. We used to 
legislate special measures every time something happened. This is 
not so beautiful a way of doing things under the legal system. But 
I'm not so optimistic in the current Diet situation. 
 
(9) 90 PERCENT  of DPJ prefectural chapters support Ozawa's third 
term in office; 60 PERCENT  call for carrying out presidential 
election 
 
MAINICHI (Page 2) (Excerpts) 
August 12, 2008 
 
 
TOKYO 00002215  008 OF 014 
 
 
The Mainichi Shimbun conducted an inquiry survey on the presidential 
election of the main opposition Democratic Party of Japan (DPJ) of 
senior officials of the DPJ prefectural chapters. The official 
campaign for the DPJ presidential race will start on Sept. 8 and the 
election will be on Sept. 21. According to the result of the survey, 
90 PERCENT  or 42 prefectural chapters responded that giving Ichiro 
Ozawa a third term in the presidency was desirable, while 60 PERCENT 
 or 27 chapters sought the carrying out of an election with more 
than one candidate. 
 
The survey was conducted on Aug. 4-7 of the secretaries general and 
other senior officials (excluding Diet members) of the 47 
prefectural chapters in writing and by phone. 
 
Regarding the reasons for supporting Ozawa for a third term, the 
Hokkaido chapter said that considering the party's victory in the 
Lower House by-election in the Yamaguchi No. 2 constituency, Ozawa 
would be a suitable person to take the lead in the next Lower House 
election. The Yamanashi chapter said that the party's mission was to 
aim at victory in the next general election by keeping unity, with 
an eye on a change ing government. 
 
Of the five prefectural chapters that saw Ozawa's third term as 
undesirable, four chapters including Fukushima and Tokushima were 
"ambivalent" because potential candidates have yet to announce their 
candidacy. The Kyoto chapter officials responded that they were 
still considering. 
 
(10) Poll on Fukuda cabinet, political parties 
 
YOMIURI (Page 6) (Full) 
August 12, 2008 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote the results of a 
survey taken in July.) 
 
Q: Do you support the Fukuda cabinet? 
 
Yes 28.3 (26.6) 
No 59.7 (61.3) 
Other answers (O/A) 3.0 (3.3) 
No answer (N/A) 9.0 (8.9) 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Give up to two reasons for your approval of the Fukuda cabinet. 
 
I can appreciate its political stance 23.7 (22.4) 
It's stable 23.3 (18.7) 
The prime minister is trustworthy 22.3 (27.8) 
Something can be expected of its economic policy 6.1 (5.6) 
Something can be expected of its foreign policy 6.3 (7.4) 
Because it's a coalition of the Liberal Democratic Party and New 
Komeito 10.7 (16.9) 
Because the prime minister is from the LDP 36.0 (34.2) 
It's better than its predecessors 11.5 (11.3) 
O/A+N/A 6.3 (7.6) 
 
 
Q: (Only for those who answered "no" to the foregoing question) Give 
up to two reasons for your disapproval of the Fukuda cabinet. 
 
 
TOKYO 00002215  009 OF 014 
 
 
I can't appreciate its political stance 42.6 (44.6) 
It's unstable 29.1 (31.4) 
The prime minister is untrustworthy 20.3 (20.7) 
Nothing can be expected of its economic policy 42.1 (44.6) 
Nothing can be expected of its foreign policy 13.3 (14.4) 
Because it's a coalition of the Liberal Democratic Party and New 
Komeito 8.0 (7.7) 
Because the prime minister is from the LDP 5.1 (3.5) 
It's worse than its predecessors 9.7 (8.8) 
O/A+N/A 2.8 (2.0) 
 
Q: What issues do you want the Fukuda cabinet to pursue on a 
priority basis? Pick as many as you like from among those listed 
below, if any. 
 
Economic, employment measures 63.2 (57.6) 
Fiscal reconstruction 25.3 (25.5) 
Tax reform, consumption tax 34.2 (36.6) 
Social security reform, including pension and healthcare systems 
60.2 (63.0) 
Low birthrate countermeasures, including childcare support 25.0 
(28.0) 
Education reform 16.5 (17.2) 
Social divide 19.6 (23.5) 
Civil service reform 16.5 (21.1) 
Politics and money issues 28.2 (31.6) 
Asia diplomacy, including China and South Korea 12.3 (14.8) 
North Korea 20.6 (27.5) 
Defense, security 9.2 (8.9) 
Constitutional revision 4.4 (5.3) 
Crisis management, including disaster prevention 10.2 (11.4) 
Public security, crime prevention 18.2 (22.5) 
Environmental protection 22.9 (30.6) 
Food safety 32.0 (37.9) 
O/A + nothing in particular + N/A 2.9 (2.8) 
 
Q: Which political party do you support now? Pick only one. 
 
Liberal Democratic Party (LDP) 30.5 (27.2) 
Democratic Party of Japan (DPJ or Minshuto) 18.7 (18.8) 
New Komeito (NK) 2.4 (2.8) 
Japanese Communist Party (JCP) 1.7 (1.9) 
Social Democratic Party (SDP or Shaminto) 1.3 (0.8) 
People's New Party (PNP or Kokumin Shinto) 0.1 (0.1) 
New Party Nippon (NPN or Shinto Nippon) --- (0.1) 
Other political parties 0.1 (---) 
None 44.5 (47.8) 
N/A 0.8 (0.5) 
 
Q: When would you like the House of Representatives to be dissolved 
for the next general election? 
 
As early as possible 29.5 
Within this year 21.3 
Early next year 14.7 
Sometime during the current term up until September 2009 26.6 
N/A 8.0 
 
Q: If an election were to be held now for the House of 
Representatives, which political party would you like to vote for in 
your proportional representation bloc? 
 
 
TOKYO 00002215  010 OF 014 
 
 
LDP 31.3 
DPJ 25.1 
NK 3.0 
JCP 2.9 
SDP 1.6 
PNP 0.3 
NPN 0.1 
Other political parties --- 
Undecided 35.0 
N/A 1.0 
 
Q: Would you like an LDP-led government after the next election for 
the House of Representatives, or would you otherwise like a DPJ-led 
government? 
 
LDP-led government 43.2 
DPJ-led government 35.1 
O/A 1.3 
N/A 20.4 
 
Q: Do you think the Fukuda cabinet is appropriately dealing with the 
recent rising prices? 
 
Yes 6.9 
No 88.5 
N/A 4.6 
 
Polling methodology 
Date of survey: Aug. 9-10. 
Subjects of survey: 3,000 persons chosen from among all eligible 
voters throughout the country (at 250 locations on a stratified 
two-stage random sampling basis). 
Method of implementation: Door-to-door visits for face-to-face 
interviews. 
Number of valid respondents: 1,788 persons (59.6 PERCENT ). 
 
(11) Gap in perspectives for economic measures between government, 
ruling coalition 
 
NIKKEI (Page 2) (Full) 
August 9, 2008 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner, 
New Komeito, asked on Aug. 8 the government to come up with such 
economic measures as those against soaring crude oil prices, as well 
as a tax cut for low-income earners. Their purpose is to reflect 
them in the outline of economic measures the government will compile 
as early as Aug. 11. Amid a growing sense of uncertainty about the 
economy, pressure calling for expanding expenditures has suddenly 
become stronger in the ruling camp with an eye on the next House of 
Representatives election, propelled out by LDP Secretary General 
Taro Aso's remarks. A fierce battle between the government and 
ruling camp has intensified over the question of whether to maintain 
fiscal discipline. 
 
Prime Minister Yasuo Fukuda called economic measures that the 
government would come up with "a comprehensive economic stimulus 
package to realize peace of mind." Fukuda also called his new 
cabinet formed on Aug. 1 "a peace of mind realization cabinet." The 
reason for giving the same name is because the Fukuda government 
considers the upcoming economic stimulus a showcase policy. 
 
 
TOKYO 00002215  011 OF 014 
 
 
However, there are gaps in views on the showcase policy between the 
Prime Minister and the ruling coalition. 
 
Fukuda instructed to Economic and Fiscal Policy Minister Kaoru 
Yosano to keep sound public finance policy, including a surplus (in 
the primary balance) for fiscal 2011. Secretary General Aso, who 
also assumed his post just recently, announced a policy shift fairly 
and squarely, noting: "It would be difficult to compile 
comprehensive economic measures while implementing fiscal 
reconstruction." Aso's remarks ignited pressure calling for an 
expansion of expenditures in the ruling bloc. 
 
After his meeting with Yosano on Aug. 8, LDP Policy Research Council 
Chairman Kosuke Hori told reporters: "There are factors that would 
bloat spending." Hori also referred in an interview to the 
possibility of issuing deficit-covering government bonds in a 
supplementary budget for fiscal 2008 as revenue sources for pump 
priming. 
 
The New Komeito, too, proposed measures for reducing and exempting 
taxes for a certain period of time. It is said that if about 50,000 
yen is exempted, nearly 2 trillion yen in resources would be needed 
per year. A senior LDP official expressed expectations, saying: "It 
depends on a decision by the Prime Minister, but the trillion-yen 
range of economic stimulus will be needed since business is slow. 
 
The government is desperately trying to put out the fire. Vice 
Finance Minister Kazuyuki Sugimoto underscored that the ministry 
would use reserve funds for revenue sources for economic measures. 
Yosano also threw a wet blanket on it by saying: "We will consider 
structural reforms and fiscal discipline as consistent with each 
other." 
 
Former Secretary General Hidenao Nakagawa, who attaches importance 
to boosting tax revenues through economic growth in implementing the 
fiscal reconstruction policy, criticized Aso severely on Aug. 6 on 
his home page: "I cannot believe that a person opposing the Prime 
Minister's policy is included in the party leadership, because a 
policy shift means a change in the political situation." 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama at 
a press conference on Aug. 7 said: "(Aso) may come up with some 
fairly bold actions in compiling the budget. I want to see the LDP 
splitting." 
 
(12) Interview with Daniel Berman, former U.S. Embassy 
minister-counselor for agricultural affairs (Part 2): Key to 
spreading GM products lies in promoting understanding 
 
NIHON NOGYO SHIMBUN (Page 3) (Full) 
August 3, 2008 
 
-- What approach are you going to take to spread genetically 
modified (GM) farm products? 
 
I think it will become a major challenge to promote understanding of 
biotechnology, including GM, among consumers and producers. 
Biotechnology is environment-friendly and contributes to enhancing 
productivity. 
 
I believe Japanese farmers should introduce this technology and 
bolster their competitiveness. A Japanese farmer, my acquaintance, 
 
TOKYO 00002215  012 OF 014 
 
 
harbors strong dissatisfaction at the unavailability of 
biotechnology. 
 
Japanese consumers tend to judge that products are good or not. They 
are negative about biotechnology. Japanese companies are quite 
conservative and don't want to be the first to introduce (GM farm 
products). 
 
But it is strange that there are few options about GM foods in 
Japan. There might be consumers who opt for GM foods if they are 
confirmed safe and low-priced. It is necessary to give freedom to 
choose to consumers. 
 
(13) Interview with Daniel Berman, former U.S. Embassy 
minister-counselor for agricultural affairs (Part 3): Emphasizes 
seller's market, pressuring Japan to open market wider 
 
NIHON NOGYO SHIMBUN (Page 3) (Full) 
August 3, 2008 
 
"The global supply-demand relationship of farm products has 
significantly changed, and we are now experiencing a switch from a 
buyer's market to a seller's market," Berman said in the interview. 
He indicated that with the end of an age in which Japan can buy farm 
products from countries across the world without any restrictions, 
the position of sellers is now stronger than that of buyers. 
 
Berman pointed out the possibility that if Japan's government and 
consumers continue to ignore the international "standards" over the 
BSE issue and GM farm products, Japan may become unable to acquire 
products on the international market. This remark appears to be 
reflecting his irritation at the fact that he could not achieve 
satisfactory results during four years of his term of office in 
Japan. 
 
The U.S. Agricultural Department has its overseas agencies in 68 
countries and regions. Their major mission is to exploit new markets 
for U.S. agricultural products. Berman made efforts to cultivate the 
Japanese market, leading 20 members stationed in Tokyo and Osaka. 
 
The Japanese market used to be the most valued customer for U.S. 
agriculture, but the situation changed over the past several years. 
In 2004, when Berman assumed office in Japan, Mexico became the top 
importer of U.S. farm products, replacing Japan, affected by Japan's 
suspension of U.S. beef imports in reaction to the discovery of the 
first case of BSE in the U.S. 
 
Exports of U.S. farm products to China are sharply increasing. The 
value of exports to China was 1.3 billion dollars in 1998, 
accounting for less than 3 PERCENT  of the total. But its share 
topped the 9 PERCENT  level in 2007. 
 
During this period, U.S. exports to Japan dropped from 18 PERCENT 
to 11 PERCENT . Berman's main duty was to put trade in beef with 
Japan on the right track and accelerate sales to the Japanese 
market. The value of U.S. exports to Japan started increasing in 
2006, but the rise is attributed to soaring grain prices due to a 
tight global supply-demand situation, and it is not true to think 
that only the value of exports to Japan has boosted. 
 
In exploiting the Japanese market, the U.S. gives priority to having 
Japan to further open up its market for U.S. beef. The U.S. is 
 
TOKYO 00002215  013 OF 014 
 
 
expected to ratchet up pressure on the Japanese market. Its second 
priority is to spread genetically modified farm products across 
Japan. The U.S. might be considering that it is necessary to change 
Japanese consumers' consciousness about GM products, because it 
plans to shift U.S.-made corn and beans to GM ones. 
 
(14) TOP HEADLINES 
 
Asahi: Mainichi: Sankei: Akahata 
Kitajima wins second gold medal 
 
Yomiuri: 
Russian troops advance into Georgia: French president to broker 
ceasefire today 
 
Nikkei: 
Retailers ready to kick drug over-the-counter drug sales into high 
gear 
 
Tokyo Shimbun: 
South Ossetia: Georgia signs ceasefire paper 
 
(15) EDITORIALS 
 
Asahi: 
(1) Postponement of US removal of North Korea from its list of state 
sponsors of terrorism: Forward movement impossible without 
verification 
(2) Gold medalists smile in Beijing Olympic Games after 1400 days of 
effort 
 
Mainichi: 
(1) Kitajima wins gold medal: We hope to see him win second gold 
medal in men's 200-meter breaststroke 
(2) Recommendation by National Personnel Authority: Can its 
recommendation to reduce working hours help restore attractiveness 
of working as bureaucrats? 
 
Yomiuri: 
(1) Delisting of North Korea from U.S. list of state sponsors of 
terrorism: North Korea must accept nuclear verification first 
(2) Minimum wages: Consistency with welfare benefits still long way 
to go 
 
Nikkei: 
(1) Approach that does not allowing North Korea to gain time needed 
(2) Terrorism in Xinjiang Uygur Autonomous Region reflects ethnic 
problems 
 
Sankei: 
(1) Kitajima wins second gold medal, following Athens Olympic Games 
(2) Attack on police in Xinjiang Uygur Autonomous Region 
 
Tokyo Shimbun: 
(1) Kitajima wins gold medal 
(2) 23rd anniversary of JAL plane crash: We should not forget basis 
of safety 
 
Akahata: 
(1) Food self-sufficiency at 40 PERCENT : It is urgent to 
fundamentally change agricultural administration 
 
 
TOKYO 00002215  014 OF 014 
 
 
 (16) Prime Minister's schedule, Aug. 11 
 
NIKKEI (Page 2) (Full) 
August 12, 2008 
 
07:55 
Had dental checkup at dental clinic in Shin-Aoyama building in 
Minami-Aoyama. 
10:30 
Phoned Masato Uchishiba, judo gold medalist of Beijing Olympics. 
12:06 
Met at Kantei with Chief Cabinet Secretary Machimura, later joined 
by Economic and Fiscal Policy Minister Yosano and Finance Minister 
Ibuki. 
13:01 
Attended government-ruling coalition meeting on measures for 
stimulating the economy. 
14:25 
Met with Finance Services Minister Motegi and National Civil Servant 
System reform Promotion Headquarters Chief of Secretariat Tachibana. 
 
15:03 
Met with expert panel head to discuss Ainu policy Kato, attended by 
Machimura and deputy chief cabinet secretaries Iwaki and Futahashi. 
15:32 
Met with National Personnel Authority President Tani. Met later with 
Machimura and Futahashi. Machimura remained. 
17:58 
Returned to his official residence. 
 
SCHIEFFER