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UNCLAS SECTION 01 OF 12 TOKYO 002431 
 
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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, 
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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 09/05/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Election frenzy: 
3) Four candidates declare for LDP presidency: Aso, Yosano, Nobuteru 
Ishihara, and Koike  (Nikkei) 
4) LDP faces dilemma with too many candidates in the presidential 
race  (Nikkei) 
5) Fukuda, the "twilight prime minister," refuses press contacts, 
skips important SDF function  (Tokyo Shimbun) 
6) LDP factions will let members vote freely for the presidential 
candidate of their choice  (Nikkei) 
7) The economy and how to rescue it will be the main campaign issue 
in the LDP presidential election  (Nikkei) 
8) LDP presidential candidate Taro Aso calling for three years of 
active fiscal disbursements to pump up economy  (Yomiuri) 
 
Diet agenda: 
9) Extra Diet to open on Sept. 24 but duration unsettled: LDP exec 
(Sankei) 
10) Komeito's Secretary General Kitagawa predicts Diet dissolution 
right after the supplementary budget is passed  (Sankei) 
 
Democratic Party of Japan (DPJ) on the move: 
11) Alarmed by being overshadowed by the LDP presidential race, the 
DPJ launches a media strategy campaign  (Tokyo Shimbun) 
12) DPJ writing up its own supplementary budget draft to counter 
LDP's original version, aim being to gum up the works in the extra 
Diet session  (Asahi) 
 
North Korea problem: 
13) Pyongyang apparently "shocked" by Fukuda's sudden resignation, 
which has derailed the easing of sanctions on the DPRK as promised 
(Sankei) 
14) U.S., Japan, ROK delegates to Six-Party Talks to meet in Beijing 
to discuss the North's decision to restore its recently disabled 
nuclear reactor  (Asahi) 
 
Defense issues: 
15) Defense Minister Hayashi attending off-shore maritime exercise 
stresses continuation of oil refueling mission in the Indian Ocean 
(Sankei) 
16) Gov. Ishihara praises USFJ for joining Tokyo's large-scale 
disaster drill but motivation question by others  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
3 lawmakers to challenge Aso in LDP presidential election 
 
Mainichi, Yomiuri & Tokyo Shimbun: 
4 candidates set to run for LDP presidential race 
 
Nikkei: 
LDP presidential election to center on 4 candidates 
 
Sankei: 
Yosano announces candidacy for LDP presidential race 
 
TOKYO 00002431  002 OF 012 
 
 
 
Akahata: 
Now Japanese Communist Party's turn 
 
2) EDITORIALS 
 
Asahi: 
(1) Okinawa secret pact: Government must open documents 
(2) Turmoil in Thailand: Loss of entire Asia 
 
Mainichi: 
(1) McCain nominated presidential candidate: Keeping distance from 
Bush difficult 
(2) Employment and Human Resources Development Organization: Is 
argument calling abolishing body excessive? 
 
Yomiuri: 
(1) Innovation: How can planned fund attract outside capital? 
(2) Confusion in Thailand: Weakness of democracy seen 
 
Nikkei: 
(1) Japan International Broadcasting should dispatch to the world 
correct information about Japan 
(2) Mitsubishi Trading Co. -- Evading customs duties is problem 
 
Sankei: 
(1) LDP presidential race: Candidates must speak up on what they 
would do for Japan 
(2) Employment and Human Resources Development Organization: Need 
for effective vocational training center 
 
Tokyo Shimbun: 
(1) Paralympics: Hope for success 
(2) Kawabe River dome: Will dome threaten residents? 
 
Akahata: 
(1) LDP presidential election: LDP has neither awareness nor 
reflection 
 
3) Aso, Yosano, Ishihara, Koike to run in LDP presidential election 
 
NIKKEI (Top Play) (Full) 
September 5, 2008 
 
Economic and Fiscal Policy Minister Kaoru Yosano, Nobuteru Ishihara, 
former Liberal Democratic Party (LDP) policy chief, and former 
Defense Minister Yuriko Koike yesterday managed to secure 20 
recommendations from LDP lawmakers, the number required to run for a 
presidential race. As Secretary General Taro Aso, who is a strong 
candidate, has already announced his candidacy, the LDP presidential 
election to choose a successor to Prime Minister Yasuo Fukuda is 
expected to be contested by four candidates. Yosano has called for 
engaging in thorough policy debate. As it stands, the economy, 
fiscal reconstruction, among other economic issues will become major 
campaign issues. 
 
Besides the four, some groups of junior and midlevel members are 
looking into the possibility of filing their own candidates. 
Yasufumi Tanahashi, former minister in charge of science and 
technology policy, last night told the press corps: "I would like to 
do my best to run in the presidential election so that a 
generational change will take place in the LDP." 
 
TOKYO 00002431  003 OF 012 
 
 
 
Yosano has advocated the need for fiscal reconstruction by 
increasing the consumption tax rate. Although Ishihara has placed 
importance on fiscal discipline, he has attached more emphasis to 
economic growth through the easing of regulations and structural 
reforms. Aso, on the other hand, is positive about fiscal 
disbursement in order to deal with the economic slowdown. He has 
suggested that the goal of achieving a surplus in the primary 
balance in 2011 could be put off. 
 
Aso was busy yesterday with compiling campaign pledges as he has 
planned to announce them early next week. His faction has been 
actively working on other faction members to support him. The Ibuki 
faction decided yesterday in a meeting its executives to back Aso. 
It will today present its request to Aso. 
 
Yosano told the press yesterday at the Prime Minister's Official 
Residence: "I was determined yesterday to stand in the election, 
engaging in policy debate. The economic policy is one of the key 
campaign issues." 
 
Prior to this, Yosano visited the office of Mikio Aoki, a member of 
the Tsushima faction and former chairman of the LDP caucus in the 
Upper House, to inform him of his intention to throw his hat in the 
ring. Aoki told him: "I want to support you." Yosano also called on 
Land, Infrastructure, and Transport Minister Sadakazu Tanigaki at 
his ministry and asked Tanigaki for cooperation. 
 
Ishihara told reporters yesterday: "I would like to make efforts as 
a midlevel lawmaker to make sure the presidential election is full 
of lively discussion." He also stressed: "It is nonsense to compile 
a 4-5 trillion yen supplementary budget, since the situation is not 
so bad that financial institutions will go bankrupt." The Yamasaki 
faction, to which Ishihara belongs, will make a decision on its 
response today. 
 
Asked by reporters about her efforts to collect recommendations, 
Koike said with confidence: "I think I'm doing well." After a 
meeting of the Machimura faction, to which she belongs, Koike said: 
"I will maintain fiscal discipline, while attaching more priority to 
economic growth. It is a difficult issue, but I will find a 
solution." 
 
4) LDP facing dilemma with several members intending to run in 
presidential race: Will divided field benefit Aso? Party concerned 
about decline in public interest 
 
NIKKEI (Page 3) (Full) 
September 5, 2008 
 
Many in the Liberal Democratic Party (LDP) welcome the prospect of 
several candidates running in the party's presidential race, with 
one member saying, "We can expect an active policy debate." Some 
believe that if many candidates run, it will work to the advantage 
of Secretary General Taro Aso, who is viewed as the frontrunner. 
Anti-Aso forces are caught in a dilemma. 
 
Moves to field rival candidates have rapidly spread, reflecting a 
sense of alarm in the party that if Aso is elected unopposed, the 
rumor that Prime Minister Fukuda made a secret deal with Aso to 
transfer power to him could reemerge, destroying the party. 
 
 
TOKYO 00002431  004 OF 012 
 
 
However, supply-side advocates in the LDP, who are distancing 
themselves from Aso over economic policy, are concerned that if the 
number of candidates increases, anti-Aso votes will be split. There 
is also concern that if anti-Aso forces allow Aso an easy victory, 
public interest in the election would wane. 
 
Should that occur, the LDP's strategy of boosting its public support 
through a dramatic presidential election with the next Lower House 
election in mind would be derailed. 
 
There is a possibility that anti-Aso forces could unite behind a 
single candidate. Aso is the head of the sixth-largest faction in 
the party, and his power base is not necessarily strong. 
 
One senior member of the Aso faction said, "We want to pursue a 
policy debate with several rival candidates instead of seeing 
anti-Aso forces emotionally band together." 
 
5) Prime Minister Fukuda rejects impromptu interviews and skips SDF 
meeting; Experts urge him to perform duties 
 
TOKYO SHIMBUN (Page 30) (Abridged slightly) 
September 5, 2008 
 
Following his refusal of impromptu interviews, Prime Minister Yasuo 
Fukuda was absent form an important SDF meeting. His abrupt 
announcement of his resignation has provoked a national outcry. 
Although he is to remain in office until later this month, Fukuda 
has been behaving if he has already resigned. Retired SDF officers 
and crisis-management experts indicated that he should fully perform 
his duties to the end, citing a plethora of pressing issues. 
 
After announcing his resignation on the night of Sept. 1, Fukuda has 
refused the impromptu interviews that had been carried out daily 
previously. He was also absent from the SDF senior officers' meeting 
that took place at the Defense Ministry on Sept. 3. 
 
A senior officers' meeting is held annually to take the prime 
minister's instructions to their respective units. Over the last 10 
years, Junichiro Koizumi was the only prime minister who failed to 
attend such meetings. He was absent twice due to overseas trips. 
Fukuda, who was chief cabinet secretary at the time, attended them 
as Koizumi's proxy. 
 
Former GSDF Middle Army Commanding General Matsushima said angrily: 
"He seems to be lacking the awareness as commander in chief of the 
SDF. Having attended the meetings as the prime minister's proxy when 
he was serving as chief cabinet secretary, it was unlikely that this 
year's meeting slipped him mind. The prime minister must perform his 
duties. The officers must have been waiting for instructions from 
their commander in chief. For Mr. Fukuda, it might have been a minor 
event. Nevertheless, it is regrettable that he was not able to sense 
the feeling of those ignored." 
 
Fukuda attended a meeting yesterday of a blue-ribbon panel on 
government document archives. In the session, the prime minister 
said with a smile on his face: "Records must be kept in an orderly 
manner so that events like the prime minister's sudden resignation 
can be found easily 100 or 1,000 years from now." There was no 
apology for his sudden resignation in the Fukuda cabinet's Sept. 4 
email magazine, either. 
 
 
TOKYO 00002431  005 OF 012 
 
 
Crisis-management consultant Tatsumi Tanaka noted: "When a top 
corporate leader quits, he quickly loses passion for the job. A 
person's true worth is determined by how he fulfills his 
responsibilities when quitting. A crisis could occur today. I am 
very worried that a vacuum might emerge in the crisis-management 
system because of the de facto absence of the country's top 
leader." 
 
President Hiroshi Sugimoto of Kinsei Rubber of Sumida Ward said 
disapprovingly: "He really does not understand the position of the 
prime minister. In the private sector, it's impossible to walk off 
job like that." 
 
6) Most factions to allow members to vote their own choices in the 
election 
 
NIKKEI (Page 2) (Abridged slightly) 
September 5, 2008 
 
A major change can be seen in the moves of the Liberal Democratic 
Party (LDP) factions to field candidates for the upcoming party 
presidential election. As of yesterday, Secretary General Taro Aso 
is the only faction leader who has announced his candidacy. In 
addition, the Aso and Ibuki factions are the only two factions that 
have decided to require its members to vote for faction-endorsed 
candidates. "Divisions" are seen in many factions. An increasing 
number of factions have decided to allow their members to vote for 
their own choices. 
 
Former Upper House Caucus Chairman Mikio Aoki indicated yesterday 
that he would back Economic and Fiscal Policy Minister Kaoru Yosano. 
Two days earlier, Sept. 2, the day the election timetable was 
determined, Aoki told Chairman Yuji Tsushima of the Tsushima 
faction, to which Aoki belongs, that even if the Lower House allowed 
its members to make their own decisions, the Upper House would act 
as one body. To most Tsushima faction executives, Aoki's action was 
a bolt from the blue. 
 
Lower House Tsushima faction members are still divided over Aso. 
Chances are that the members will be allowed in the end to vote on 
their own volition. 
 
Yosano has been supported by the fiscal reconstruction group, 
including Policy Research Council Senior Deputy Chairman Hiroyuki 
Sonoda, and the so-called Koizumi's children who won Lower House 
seats for the first time in the 2005 "postal" election. The Tsushima 
faction is likely to join them. 
 
Former Policy Research Council Chairman Nobuteru Ishihara is backed 
mostly by mid-level lawmakers who were referred to as the "new 
policy breed" in the party in the late 1990s. A structural 
reform-oriented group led by former Secretary General Hidanao 
Nakagawa is supporting former Defense Minister Yuriko Koike. Support 
all rests on personal ties transcending faction lines. 
 
Machimura faction in confusion 
 
The faction led by Chief Cabinet Secretary Nobutaka Machimura, 
having decided not to field its own candidate, is somewhat 
disoriented. With Koike in mind, Seishiro Eto in yesterday's 
luncheon meeting of Tokyo-based lawmakers urged them to throw 
unified support behind a faction member willing to run in the race. 
 
TOKYO 00002431  006 OF 012 
 
 
But his comment received a cold reception. 
 
Meanwhile, Masaaki Shibayama, a junior member, called for the 
elimination of factional influence, saying: "When visions differ, 
the faction should let us back candidates belonging to other 
factions." Throughout the meeting, no one cited Koike. 
 
In yesterday's executive meeting, some said that Nakagawa should 
throw his hat in the ring. But Nakagawa simply said: "I am 
responsible for the party's defeat in the Upper House election, so I 
will refrain from running in this presidential race." In the 
luncheon meeting that lasted one hour and 40 minutes, 19 members 
expressed their views. After the meeting, the faction's secretary 
general, Nariaki Nakayama, said to the press corps: "We are not in 
an age when a faction can force its members to vote for a certain 
candidate." 
 
Ibuki faction set to back Aso 
 
The Ibuki faction is the only faction other than the Aso faction 
that has decided to rally around Aso. But some in the faction are 
eager to back Yosano. 
 
The Koga faction is leaning toward the view that fielding Land, 
Infrastructure and Transport Minister Sadakazu Tanigaki is 
difficult. In a meeting with junior members last night, Election 
Strategy Council Chairman Makoto Koga indicated that his faction 
would leave the voting to the discretion of individual members, 
saying: "Mr. Tanigaki and I are responsible for the establishment of 
the Fukuda administration. This time around, our members may have to 
act individually." 
 
There is a high likelihood that the Yamasaki faction, too, will let 
its members make their own choices without adhering to Ishihara 
alone. 
 
7) LDP presidential race will likely be contested between Aso and 
three other candidates: Clear differences in stances over structural 
reforms, consumption tax seen; War of words over economy likely to 
take place 
 
NIKKEI (Page 3) (Slightly abridged) 
September 5 2008 
 
The major campaign issue in the upcoming Liberal Democratic Party's 
(LDP) presidential race will be the management of the economy and 
state finances. The pattern of confrontation in the race lines up 
Secretary General Taro Aso, who is calling for a shift to a positive 
fiscal policy line from the government's current stance of attaching 
importance to the economy, against State Minister for Kaoru Yosano, 
who is calling for maintaining fiscal discipline. The race also 
includes former Defense Minister Yuriko Koike and former Policy 
Research Council Chairman Nobuteru Ishihara, who are both seeking to 
uphold the structural reform line. Maneuvering among party members, 
who all have their eyes on the next Lower House election, has begun 
to transcend traditional factional boundary lines. 
 
Yosano yesterday told the press why he has decided to run in the 
presidential race. He said, "It is desirable for the new president 
to be elected after open policy debate." Yosano's longstanding pet 
argument is that it is unavoidable to raise the consumption tax in 
order to maintain the social security system, which is faltering 
 
TOKYO 00002431  007 OF 012 
 
 
under the weight of the rapidly aging society. Asked about his view 
of the role expected of the next prime minister, Yosano during a 
press conference on the 2nd said, "It is to set a path for fiscal 
reconstruction." 
 
Propriety of Koizumi policy line 
 
Aso hinted at putting on hold the government's goal of moving the 
primary balance into the black by fiscal 2011, noting: "The economy 
has entered a recessionary phase. It is necessary to adopt economic 
stimulus measures." He intends to include in his manifesto boosting 
local economies as a showcase. This has been one reason for the 
present situation of LDP local chapters, which are beset by battered 
local economies, pinning hopes on Aso becoming the next LDP 
president. Yosano's declaration of his candidacy will challenge Aso, 
who has been seeking to leave his opponents far behind in the race, 
forcing him to respond to a head-on policy debate with him. 
 
There is actually a strong criticism of Aso's policy as rejecting 
the structural reform policy line adopted during the Koizumi 
cabinet. 
 
Former Defense Minister Koike on the 4th clarified her stance one of 
the supply-side advocates in the LDP, saying, "Fiscal discipline 
should be maintained, while importance being attached to economic 
growth. The key point is whether structural reforms can be upheld." 
 
 
Former Secretary General Hidenao Nakagawa, who is seen as Koike's 
backer, has been insisting that the government goal of moving the 
primary balance into the black by fiscal 2011 should be achieved 
through economic growth and far-reaching spending cuts, without 
resorting to a consumption tax hike. Koike is also eager to 
thoroughly carry out administrative reform, saying, "Tax money is 
being spent in a wasteful way." 
 
Former Secretary General Ishihara also expressed his disagreement 
with Aso's economic policy as one reason why he decided to run in 
the race. He said, "Mr. Aso's thoughts are not those of the LDP. My 
stance is diametrically opposed to that of Mr. Aso." 
 
8) Outline of Aso's policy platform: Aggressive public spending for 
three years 
 
YOMIURI (Page 2) (Full) 
September 5, 2008 
 
The outline of the policy platform of Liberal Democratic Party (LDP) 
Secretary General Taro Aso, who will run in the party's upcoming 
presidential race, was revealed yesterday, September 4. The policy 
platform, "Japan's Potential," calls for continuing economic 
stimulus measures without hesitating to boost fiscal expenditures 
for the next three years, citing that it would take three years for 
the Japanese economy to recover. This means effectively putting on 
the back burner the government's goal of moving the primary balance 
into the black by fiscal 2011. Aso's policy platform will be 
released at a press conference to be held on the 8th. 
 
The policy platform also promotes fixed-rate cuts in income and 
residential taxes. Concerning the consumption tax, the outline 
simply notes that a national debate should be pursued to secure 
stable fiscal resources. 
 
TOKYO 00002431  008 OF 012 
 
 
 
On the policy front, Aso indicates his desire to continue refueling 
operations in the Indian Ocean by the Maritime Self-Defense Force 
(MSDF), noting that Japan will not flee from the war on terror. In 
particular, concerning the North Korea issue, he says that he will 
make a logical response to security issues and that he will also 
work on the abduction issue. 
 
The outline also includes his policy of establishing a consumer 
agency, which Prime Minister Fukuda has advocated. It also lists 
measures for the working poor, including raising the minimum wage 
level, the promotion of decentralization and the introduction of a 
doshu or regional bloc system. 
 
9) Extra Diet session to convene Sept. 24, duration unclear: LDP 
exec 
 
SANKEI (Page 5) (Full) 
September 5, 2008 
 
Tadamori Oshima, chairman of the ruling Liberal Democratic Party's 
Diet Affairs Committee, said in a satellite TV program yesterday: 
"We're thinking of calling the next extraordinary Diet session on 
September 24. After the (LDP) presidential election, we'll have to 
hold it to designate the prime minister." However, Oshima did not go 
so far as to clarify how long the extra Diet session will last. 
"It's a delicate situation," he said. 
 
10) Diet dissolution after extra budget passage: Kitagawa 
 
SANKEI (Page 5) (Full) 
September 5, 2008 
 
New Komeito Secretary General Kazuo Kitagawa, meeting the press 
yesterday, indicated that it would be preferable for his party to 
have the House of Representatives dissolved for a general election 
after the supplementary budget passes the Diet during its 
extraordinary session. "We've agreed with the Liberal Democratic 
Party's leadership to make sure to compile the supplementary budget 
in order to implement an emergency economic stimulus package," 
Kitagawa said. "I don't think the Diet can easily be dissolved right 
after the LDP's presidential election," he added. 
 
11) DPJ launches media campaign so as not to be overshadowed by LDP 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 5, 2008 
 
Now that it has become certain that several Liberal Democratic Party 
members will compete in the party presidential election, Democratic 
Party of Japan (DPJ) Secretary General Yukio Hatoyama anxiously 
said: "The media's attention has been directed at the Liberal 
Democratic Party's presidential election." This trend might result 
in bringing about a blow to the main opposition party in the next 
House of Representatives election, which is likely to take place by 
the end of the year. The DPJ's media campaign team urgently held a 
meeting yesterday to map out measures to strengthen its 
information-transmission capability. The party has begun to move to 
prevent itself from being overshadowed by the LDP. 
 
In the DPJ, it is likely to be decided on Sept. 8, the official 
announcement day of the party presidential election, that President 
 
TOKYO 00002431  009 OF 012 
 
 
Ichiro Ozawa will win a third term without a formal vote. In the 
LDP, however, active debate on economic policy is expected among the 
candidates. 
 
In the media team meeting yesterday, Hatoyama expressed a sense of 
alarm, remarking: "Our party's presence is likely to vanish. It is 
important to show the people what we are doing." Public Relations 
Committee Chairman Yoshihiko Noda, who once decided to run for the 
party presidency but later gave up on his candidacy, critically 
said: "(The LDP) apparently is trying to stage-manage the 
presidential race and give a boost to the administration." 
 
Hatoyama and other DPJ executives remember the time when the Lower 
House was dissolved in 2005 over postal privatization. Media 
attention was focused on the fights between "assassins" sent by the 
LDP led by then Prime Minister Junichiro Koizumi and LDP postal 
rebels. As a result, the DPJ suffered a crushing defeat. 
 
This time, too, if the next prime minister, taking advantage of the 
momentum in the aftermath of the presidential election, dissolves 
the Lower House, the same situation might occur. 
 
In the meeting, one member said: "The course of things will begin to 
change after the new prime minister comes into office. The game will 
start then." But all the party can do now is to play up its policies 
through executive members' inspection tours. It has prepared no 
radical measures. 
 
Deputy President Naoto Kan said in a press conference: "We should 
perform our initial duties without moving about in confusion. Aiming 
for a real change of government, the party should make preparations 
on policies, candidates, and an election strategy. 
 
12) DPJ starts drafting own supplementary budget counterproposal, 
centered on fiscal disbursements for social security 
 
ASAHI (Page 4) (Excerpts) 
September 5, 2008 
 
The Democratic Party of Japan (DPJ) has started to compile its own 
package of job and economic stimulus measures, centered on fiscal 
disbursements for social security policy measures and designed to 
counter the government's fiscal 2008 supplementary budget bill that 
aims to tackle the receding economy. The idea is to make it a 
campaign issue in the next Lower House election. 
 
DPJ Acting President Naoto Kan and Policy Board Chairman Masayuki 
Naoshima met on the third to discuss the party's response to the 
flat-sum tax cut worked out by the government and ruling parties. 
They confirmed a policy course of the DPJ coming up with it own 
counterproposal that would have a greater impact on the economy in 
terms of jobs and consumption than the flat tax cut. The package 
would focus on fiscal resources in the social security area, such as 
medical care, nursing care, pensions, and measures to help the 
disabled. There is also an intention of forcing an early Diet 
dissolution by using the opportunity of the DPJ's opposition to the 
government's supplementary budget bill. 
 
13) North Korea shocked at Fukuda resignation, seeing hopes for 
partial removal of sanctions dashed 
 
SANKEI (Page 6) (Excerpts) 
 
TOKYO 00002431  010 OF 012 
 
 
September 5, 2008 
 
North Korea has been shocked at Prime Minister Yasuo Fukuda's abrupt 
announcement of his decision to step down. The Kim Jong Il regime 
had hoped the Fukuda administration would partially remove economic 
sanctions against it. In the run-up to the 60th anniversary of the 
establishment of the nation on Sept. 9, Pyongyang hoped to show the 
lifting of sanctions as one of its political achievements. Senior 
members of the General Federation of Korean Residents in Japan had 
planned to visit North Korea, on the premise that Japan would 
partially lift sanctions, but the members had to cancel the visit 
following Fukuda's resignation announcement. As it stands, 
Japan-North Korea relations will inevitably reach a stalemate, and 
North Korea might begin to take a tough stance toward Japan. 
 
Three North Korean newspapers in their editorials early this year 
defined the 60th anniversary of the establishment of the state as "a 
year of changes that will go down in history." According to North 
Korean sources, the changes indicate "progress in Japan-North Korea 
negotiations" and "America delisting North Korea as a state sponsor 
of terrorism." Pyongyang intended hold up Japan's removal of 
sanctions in exchange for the North's reinvestigation into the 
abduction issue as a surrender on the part of Tokyo. 
 
Japan and North Korea resumed bilateral talks this June after a 
lapse of nine months. In mid-August, both sides agreed to set up a 
committee on reinvestigation of the abduction issue. Since 
coordination on the details of the committee did not go smoothly in 
the Japanese government, the committee was not established by late 
August despite an agreement. Then the Fukuda administration 
collapsed. 
 
The U.S. froze its delisting plan due to concerns about nuclear 
verification. In reaction, the North has resorted to restoring its 
main reactor. North Korea also sees Japan's removal of sanctions put 
on hold. A source connected to Japan-North Korea relations said: 
"There is no showcase for National Foundation Day." 
 
14) Japanese, South Korean, U.S. representatives set talks on North 
Korea in Beijing 
 
ASAHI (Page 4) (Full) 
September 5, 2008 
 
Chief negotiators from Japan, South Korea, and the U.S. will meet in 
Beijing on Sept. 5 for talks on North Korea's denuclearization 
process at a time when the North has begun restoring its Yongbyon 
reactor. According to Japanese diplomatic sources, the three envoys 
are scheduled to hold a series of trilateral and bilateral meetings, 
including bilateral talks with Chinese Vice Foreign Minister Wu 
Dawei, the chair of the six-party talks. 
 
The envoys will discuss how to work on North Korea to accept their 
verification plan. On whether Kim Gye Gwan, North Korea's top 
negotiator, would travel to Beijing during the three envoys' stay, a 
senior Chinese Foreign Ministry official said: "There is no 
information about it for now." 
 
Foreign Ministry's Asian and Oceanian Affairs bureau Director 
General Akitaka Saiki, U.S. Assistant Secretary of State for East 
Asian and Pacific Affairs Christopher Hill, and South Korean Foreign 
Affairs and Trade Ministry's Special Representative for Korean 
 
TOKYO 00002431  011 OF 012 
 
 
Peninsula Peace and Security Affairs Kim Sook will meet for the 
first time since they met in Tokyo in June. A Japanese diplomatic 
source stressed: "North Korea's moves might interrupt the six-party 
talks and bring about a serious situation." He indicated that Japan 
would deal with North Korea in cooperation with the U.S. and South 
Korea. 
 
Chinese Foreign Ministry spokeswoman Jiang Yu stated in a press 
conference on the 4th: "The countries should hold thorough talks and 
keep in close contact in an effort to overcome difficulties and 
resolve the problem at an early date." 
 
15) Defense minister stresses need to continue MSDF refueling 
mission 
 
SANKEI (Page 5) (Full) 
September 5, 2008 
 
Defense Minister Yoshimasa Hayashi yesterday embarked on the 
Maritime Self-Defense Force supply ship Tokiwa, which has been 
engaged in refueling activities in the Indian Ocean, to inspect its 
seaborne refueling operation in waters off the Miura Peninsula of 
Kanagawa Prefecture. He there emphasized the importance of 
continuing the MSDF's refueling mission in the Indian Ocean. 
 
"The MSDF has conducted refueling drills over the past 30 years," 
Hayashi told reporters onboard the Tokiwa after the inspection. "I 
don't think we can hand over the task to another country," he 
stressed. 
 
In the meantime, the House of Representatives is now more likely to 
be dissolved at an early date for a general election. The government 
has plans to introduce a bill amending the new Antiterrorism Special 
Measures Law in order to continue the MSDF's refueling mission in 
the Indian Ocean. The legislation, however, may not clear the Diet 
during extraordinary session. "I will make efforts to make it 
possible to continue the refueling mission somehow," Hayashi said. 
 
16) Disaster drill participation "for U.S. military" 
 
TOKYO SHIMBUN (Page 31) (Full) 
September 5, 2008 
 
Masashi Hara 
 
The Tokyo metropolitan government conducted a disaster drill on Aug. 
31, and U.S. Forces Japan (USFJ) participated in the drill for the 
third year in a row with a 40,000-ton ship, the largest ever for the 
drill. USFJ has been deepening its cooperation with local 
governments from year to year under the slogan of 'disaster 
prevention.' However, there seems to be no end to trouble over the 
U.S. military presence in Japan. Local officials are concerned that 
such cooperation makes it hard to see what the problem is. 
 
The USS Essex, an amphibious assault ship of the U.S. Navy, was 
anchored in Tokyo Bay off Kasai. 
 
"We're honored to be able to participate in the drill. I hope you 
realize how high this ship's capability is when dispatched on a 
disaster relief mission." With this, U.S. Naval Forces Japan 
Commander Rear Adm. James Kelly looked proud in his briefing of 
about 100 participants, including Tokyo metropolitan government 
 
TOKYO 00002431  012 OF 012 
 
 
personnel, in a simulation to carry those who are affected in a 
disaster and can hardly get home. 
 
The USS Essex-currently based at Sasebo in Nagasaki Prefecture-has a 
displacement of 40,650 tons and an overall length of 257 meters. The 
Essex, also known as a light flattop, is far larger than the USS 
Gary, a 4,100-ton frigate, and the USS Tortuga, a 15,939-ton landing 
craft, both of which participated in the Tokyo metropolitan 
government's disaster drills in the past two years. 
 
One of the Essex's features is its full lineup of medical facilities 
with a total of 600 beds. This scale is equivalent to a hospital and 
largest among U.S. naval vessels with the exception of hospital 
ships. The Essex has an operating room and an intensive care unit 
(ICU), and she has even a dental clinic. 
 
"I feel very encouraged," said Tokyo Gov. Shintaro Ishihara, who 
inspected the drill onboard the Essex. A senior official from the 
Tokyo metropolitan government also gave high marks, saying: "The 
U.S. military sent a large ship that needs a large number of 
crewmembers. This shows their positive stance." 
 
Meanwhile, late this month the USS George Washington, a 
nuclear-powered aircraft carrier of the U.S. Navy, will arrive at 
Yokosuka, Kanagawa Prefecture, for deployment. Japan cannot check 
the George Washington's safety, and this causes local residents to 
feel uneasy. Under international law, Japan cannot inspect U.S. 
military vessels. U.S. military bases in Japan are also beyond 
Japanese law, according to the Japan-U.S. Status of Forces Agreement 
or SOFA for short. 
 
Actually, U.S. military vessels have caused trouble. Last month, it 
was brought to light that the USS Houston, a nuclear-powered 
submarine, had leaked a trace of radiation for two years from 2006 
during its port calls at Yokosuka and Sasebo. The government did not 
disclose this fact, resulting in facing strong criticism. 
 
"The U.S. military's participation in our disaster drills is 
inconceivable, based on our local feelings," said a senior official 
of Okinawa Prefecture's Ginowan City, which is saddled with the U.S. 
military's Futenma airfield. The city's population is daily exposed 
to the risk of helicopter crashes and the flight training of 
Futenma-based choppers over the city's residential areas. 
 
The Ginowan city official said: "A disaster drill is pleasing to the 
ear, but for the U.S. military it's just a kind of military training 
exercise for themselves. Taking advantage of disaster prevention, 
they may tell us to remain somewhat patient. We'll have to go over 
the SOFA that gives them privileges. In addition, and there are 
problems we must first resolve. 
 
ZUMWALT