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RUCNDT/USMISSION USUN NEW YORK 1381

UNCLAS SECTION 01 OF 05 TOKYO 002351 
 
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 08/27/08 
 
INDEX: 
 
(1) U.S. Consul General Maher asked to leave Okinawa; Says, "I 
conveyed U.S. policy honestly" [Okinawa Times] 
 
(2) Reorganization of Okinawa land prior to return of areas used by 
five U.S. military facilities in south of Kadena Air Base; creation 
of extensive city aimed at [Ryukyu Shimpo] 
 
(3) Illegal imports of U.S. beef via Costa Rica: Agriculture 
ministry imposes total embargo [Akahata] 
 
(4) Aso gives priority to revitalizing corporate activities, evoking 
skepticism even from LDP [Asahi] 
 
(5) TOP HEADLINES 
 
(6) EDITORIALS 
 
(7) Prime Minister's schedule, August 26 [Nikkei] 
 
ARTICLES: 
 
(1) U.S. Consul General Maher asked to leave Okinawa; Says, "I 
conveyed U.S. policy honestly" 
 
OKINAWA TIMES (Page 26) (Full) 
August 27, 2008 
 
(Ginowan City)  On the morning of August 26, Zenji Shimada, head of 
a litigation group to end roars emanating from Futenma Air Station, 
and other civic group members paid a visit on the U.S. Consulate 
General in Okinawa and handed over a paper with a resolution that 
read: "We protest your anti-Okinawa remarks and demand you leave 
Okinawa immediately." In response, Consul General Maher reportedly 
stated: "My role is to convey U.S. policy honestly to residents. I 
do not make personal remarks." 
 
In the resolution was a protest against Consul General Maher's 
remark made in a press conference on July 11 about housing that 
neighbors the U.S. forces' Futenma Air Station in Ginowan City. He 
had stated: "I question why Ginowan City allowed such construction." 
Consul General Maher asserted that the danger from Futenma Air 
Station to the surrounding area was low, if one compared the 
neighboring population density and number of flights to such 
airports as Fukuoka's. His remark brought about a sharp reaction 
from local residents. 
 
(2) Reorganization of Okinawa land prior to return of areas used by 
five U.S. military facilities in south of Kadena Air Base; creation 
of extensive city aimed at 
 
RYUKYU SHIMPO (Page 1) (Full) 
August 26, 2008 
 
Prior to the return of U.S. military facilities located south of 
Kadena Air Base to Okinawa, which was agreed on between Tokyo and 
Washington as part of the realignment of U.S. bases in Japan, the 
Okinawa prefectural government's planning department yesterday 
issued a report of a basic study under consideration for drawing an 
"effective utilization vision" aimed at the use of base land to be 
vacated by the U.S. military. With the return of large-scale land in 
 
TOKYO 00002351  002 OF 005 
 
 
mind, the Okinawa prefectural government came up with the notion of 
reviewing the structure of the Naha-centered local economy and 
establishing a broad urban area made up of central and southern 
Okinawa. It also drew up tentative plans for the five areas that are 
scheduled to be returned to Okinawa. The tentative plans include 
connecting roads in Camp Zukeran. 
 
Of the promising industries for this fiscal year in southern and 
central Okinawa, the prefectural government will launch a 
feasibility study of the medical industry with an eye on creating an 
"innovative technology special zone." 
 
Based on the results of the basic research, the prefecture will 
formulate an "effective utilization vision" this fiscal year. 
Regarding the medical industry area, it will look into a road map 
for creating advanced medical enterprises and bringing in such 
companies in order to reflect more specialized verification in the 
road map. 
 
The basic survey was conducted in 2007. As a result, the prefectural 
government came up with two visions: an industry promotion vision to 
look into industries to be created and existing ones to be brought 
in; and an urban function vision to look into a traffic system in 
central and southern Okinawa. 
 
According to the urban function vision, areas south of Kadena Air 
Base are regarded as one extensive city. The vision sets these 
goals: 1) exchanges with the Asia-Pacific region and contribution to 
the region; 2) building a strategic industrial base; and 3) 
realizing a new symbiotic life style based on climate and culture. 
In order to accomplish these goals, a unique concept was made for 
each U.S. military facility site to be returned. 
 
The report proposes creating a large-scale park and new 
administrative function at Futenma Air Station, which is located on 
the center of south-central Okinawa and regarded as a symbol of the 
settlement of postwar issues, by remodeling into a "multifunctional 
urban space for international exchanges." 
 
According to the industry promotion vision, the prefecture will 
verify the feasibility of 14 projects, including an advanced medical 
special zone, bringing in a heavy particle radiotherapy 
organization, and an international air distribution network, and 
their issues. 
 
Based on that, industrial clusters, which are expected to be set up 
in central and southern Okinawa, include: 1) a medical-affiliated 
industry cluster; 2) a health business cluster; 3) an Asian gateway 
zone; 4) a destination resort; and 5) an information and 
communication industry corridor. 
 
(3) Illegal imports of U.S. beef via Costa Rica: Agriculture 
ministry imposes total embargo 
 
AKAHATA (Page 1) (Full) 
August 27, 2008 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) on August 
26 placed a total ban on imports of beef from Costa Rica, because it 
was found that U.S. beef had been imported to Japan via that country 
in violation of import conditions. This is the first discovery of 
the illegal imports of U.S. beef via Costa Rica. 
 
TOKYO 00002351  003 OF 005 
 
 
 
According to the Animal Health Division of the Ministry of 
Agriculture, Forestry and Fisheries, about 1.4 tons (320 boxes) of 
ox tongues from U.S. cattle were illegally imported. The random 
inspection carried out on August 20 found improper sanitary 
certificates that carried the name of the consignor but had no name 
for the beef processing plant. 
 
In response to an inquiry by the agriculture ministry, the Costa 
Rican government on August 25 replied that the cryopreserved ox 
tongues in question were U.S. products from cattle processed at the 
Dakota City plant of Tyson Foods Inc. 
 
The government approves imports of beef products from Costa Rica 
itself. It also approves imports of such products of 17 other 
countries, where there have been no confirmed discoveries of BSE 
cases, via Costa Rica. 
 
However, it does not approve imports of U.S. beef. The agriculture 
ministry and the health, labor and welfare ministry have `\-[Qsta Rican government 
to report on the detailed results of investigations. 
 
According to the Animal Health Division, the importer is a company 
based in Fukuoka Prefecture. The consignor in Costa Rica has 
received a certificate to process and store beef bound for Japan 
only in July this year. 
 
According to the statistics, beef imported from that nation account 
for about 0.1% of annual total imports. 
 
(4) Aso gives priority to revitalizing corporate activities, evoking 
skepticism even from LDP 
 
ASAHI (Page 4) (Full) 
August 27, 2008 
 
Liberal Democratic Party Secretary General Taro Aso has continued to 
call for a package of economic stimulus measures, placing emphasis 
on revitalizing corporate activities. His aim is to underscore his 
stance of avoiding pork-barrel such as public works projects by 
prioritizing measures that are not accompanied by fiscal 
disbursements. 
 
When asked by Prime Minister Fukuda on Aug. 1 to take the post of 
secretary general, Aso in accepting the offer said: "There is one 
challenge I would like you to realize without fail. That is economic 
recovery." Fukuda agreed that economic measures should be given 
priority. Since then, Aso has continued to make his pitch. 
 
In a speech on the 9th, Aso proposed a tax-free small-sum 
capital-gain system. In speeches everywhere, he has expressed his 
eagerness to introduce the system, saying: "I was determined to 
introduce the system once I become prime minister. But I cannot wait 
any longer." 
 
In a press conference on the 19th, Aso said: "It would be better for 
companies to make capital investments now," referring to a plan for 
capital investment tax reduction. 
 
Aso has noted: "Although the interest rate is now close to zero, 
 
TOKYO 00002351  004 OF 005 
 
 
companies are hesitant to make capital investment by borrowing 
money. A situation that cannot be found in the textbooks on 
economics is taking place now." This is what Richard Koo, chief 
economist at Nomura Research Institute, also has advocated. What is 
needed now is to draw out investment from the private sector. There 
is a view that if investments are stimulated, there will be an 
increase in tax revenues enough to cover the revenue shortfall 
expected from tax cuts "Some might claim that we might become unable 
to collect some tax money, but if no measures are taken, it may 
become impossible to collect tax money at all." 
 
Some in the party are skeptical about Aso's policy stance. An 
ex-senior vice minister said: "His policy is what was pursued during 
the Obuchi administration, skipping over the Koizumi administration. 
Mr. Aso, with an eye on the next general election, seems to be 
declaring that he will go after pork-barrel largesse." 
 
In an attempt to dodge criticism, Aso said: "Those who talk about 
'pork-barrel largesse', do not know the meaning of the words." Even 
so, he has emphasized the need to take measures to control floods 
and improve the Hokuriku Shinkansen lines in the aftermath of the 
heavy rains this summer, so it would seem that he is ready to 
approve a certain level of fiscal disbursements. 
 
(5) TOP HEADLINES 
 
Asahi: 
Russian president recognizes independence of South Ossetia and 
Abkhazia 
 
Mainichi: 
Taliban forces suspected involved in kidnapping Japanese aid worker 
 
Yomiuri, Sankei, and Tokyo Shimbun: 
North Korea suspends disabling nuclear facilities 
 
Nikkei: 
Pension shortfalls at listed companies expand 3.6 times in fiscal 
2007 
 
Akahata: 
MAFF minister logged 23.45 million yen in expenses in 2005 and 2006 
by registering secretary's home as office 
 
(6) EDITORIALS 
 
Asahi: 
(1) North Korean nuclear facilities: Brinkmanship does not work 
(2) MAFF Minister Ota must present supporting documents 
 
Mainichi: 
(1) What prime minister wants to do in extra Diet not clear 
(2) MAFF minister's offices expenses a problem 
 
Yomiuri: 
(1) Ruling parties cannot afford to be divided 
(2) Harmful effects of taxi liberalization cannot be left 
unaddressed 
 
Nikkei: 
(1) Russia must avoid being isolated internationally 
(2) Fukuda administration in danger zone 
 
TOKYO 00002351  005 OF 005 
 
 
 
Sankei: 
(1) Diet session must be extended for continued refueling mission 
(2) U.S. presidential race: Deal with Russia resolutely 
 
Tokyo Shimbun: 
(1) Another office expense scandal 
(2) U.S. presidential race: Strong leadership necessary 
 
Akahata: 
(1) Solid economic stimulus package imperative 
 
(7) Prime Minister's schedule, August 26 
 
NIKKEI (Page 2) (Full) 
August 27, 2008 
 
09:30 
Attended a party executive meeting at party headquarters. 
 
10:00 
Attended a cabinet meeting at the Kantei. Foreign Minister Koumura 
stayed behind. Followed by Finance Minister Ibuki, METI Minister 
Nikai, Economic and Fiscal Policy Minister Yosano, and Chief Cabinet 
Secretary Machimura. Nikai stayed behind. 
 
11:29 
Met UNESCO Director General Matsuura and others. 
 
14:24 
Met Central Japan Railway Company Chairman Kasai. 
 
15:14 
Met Education Rebuilding Council member Fumiya Shinohara. 
 
16:54 
Met Vice Defense Minister Masuda and Assistant Deputy Chief Cabinet 
Secretary Yanagisawa. 
 
18:01 
Attend a ceremony to give gifts to prize winners in the Beijing 
Olympic Games and posed for a photo. Later attended a party. 
 
18:51 
Returned to his official residence. 
 
ZUMWALT