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UNCLAS SECTION 01 OF 09 TOKYO 002457 
 
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 09/09/08 
 
INDEX: 
 
(1) Shock of Fukuda's resignation announcement (Part 2): Debate on 
economic growth and tax hikes should be held openly and squarely 
(Nikkei) 
 
(2) Put an end to one year of gridlock (Sankei) 
 
(3) Democratic Party, Republican Party set forth Japan policy in 
platforms for U.S. presidential election (Nikkei) 
 
(4) Japan's national security based on international teamwork 
(Mainichi) 
 
(5) TOP HEADLINES 
 
(6) EDITORIALS 
 
(7) Prime Minister's schedule, September 6 (Nikkei) 
 
ARTICLES: 
 
(1) Shock of Fukuda's resignation announcement (Part 2): Debate on 
economic growth and tax hikes should be held openly and squarely 
 
NIKKEI (Page 1) (Slightly abridged) 
September 4, 2008 
 
By Mikio Kanno, editorial writer 
 
Business managers are now astonished by Prime Minister Yasuo 
Fukuda's sudden announcement of his resignation. The president of a 
small mold maker in Ota Ward, Tokyo, lamented Fukuda's decision: "I 
have desperately made efforts to get jobs for the sake of my 
employees and their families. I wonder why he could so easily 
abandon his administration." With the prime minister's resignation 
amid an economic downturn, the flow of economic policy making will 
stop. It is only natural that 70 PERCENT  of major company managers 
are concerned that Fukuda's resignation may have a negative impact 
on their business. Fukuda set the slogan of realizing "peace of 
mind" and of building "trust," while distancing himself from the 
structural reform policy course, when he took office last September. 
He was eager to reform the public pension system that would boost 
public confidence, as well as to look into the possibility of 
increasing the consumption tax rate. 
 
With his announcement that he was quitting the prime minister's post 
less than one year since taking office, Fukuda failed to implement 
his policy agenda. The government's national council on social 
security is expected to present its final report as early as next 
month, but how the report will be used after Fukuda steps down is 
unknown. There is still no prospect for fiscal resources that would 
enable the government to halve the treasury's share of the basic 
pension burden for 2009. It is also uncertain whether tax revenues 
currently earmarked for road maintenance and construction will be 
appropriated into general spending from fiscal 2009. 
 
It is true that a global credit crunch and economic slowdown caused 
by the U.S. subprime mortgage crisis adversely affected the Fukuda 
administration. The government, after the cabinet shuffle in August, 
admitted to the possibility of an economic slowdown and it began to 
compile an economic stimulus package. However, since the New Komeito 
 
TOKYO 00002457  002 OF 009 
 
 
forced Fukuda to accept its demand for a fixed tax reduction, the 
policy of Fukuda, who attaches priority to fiscal reconstruction, 
was undermined. 
 
What is of major concern is that moves aiming at creating "big 
government" are gaining ground in both the ruling and opposition 
parties. Fukuda announced his intention to maintain the goal of 
bringing the primary balance into the black by fiscal 2011. However, 
LDP Secretary General Aso, who has announced his candidacy for the 
party leadership race, has referred to the possibility of putting 
off that goal. In the main opposition Democratic Party of Japan 
(DPJ), as well, there is no move to review its campaign pledges for 
the 2007 Upper House election such as creating a minimum welfare 
pension system with no fiscal support, as well as income 
compensation to individual farmers. If both the ruling and 
opposition parties compete by offering great deals, while postponing 
tax hikes, future generations will have to pay accumulated debts. 
 
In addition to Aso, several candidates, including lawmakers 
advocating the importance of the Koizumi reform initiative and 
economic growth, will run in the upcoming LDP presidential election. 
Ichiro Ozawa, who is certain to be reelected as DPJ president for 
his third term, will reportedly reveal his policy again. With an eye 
on the next Lower House election and political realignment that 
follows the election, there will be opportunities to assess the 
persuasiveness of LDP and DPJ candidates. 
 
We would like to pose three questions to LDP and DPJ candidates. 
First, how they will increase an economic growth under the growing 
aging population and international competition? They also should 
make clear their position toward regulatory reform, policy of 
opening the country to foreign business, and a corporate tax 
increase, which is a global trend. 
 
Second, how they will keep a balance between the benefits and 
burdens of the social security? They should clarify how they will 
secure fiscal resources for a policy of realizing the public's peace 
of mind. Unless they do so, they will be called irresponsible. They 
should also reveal their thinking as to whether they prefer a 
welfare insurance system or a tax system when pension premiums are 
collected. 
 
Third how they will reduce the wasteful use of tax revenues in order 
to cut huge fiscal deficit. They should ask the public when, for 
what purpose tax hikes, including a consumption tax increase, will 
be needed. 
 
Once voters learn what the clear distinction is between the LDP 
candidates' position and that of the DPJ candidates, they will be 
able to demonstrate their clear will in an election to choose the 
party that they feel should hold the political helm. Candidates and 
parties that stress rosy policy toward voters, skillfully avoiding 
arguments on tax hikes, will not be able to get public confidence 
and will lose their competitiveness. Such policy debate is expected 
by the electorate. 
 
(2) Put an end to one year of gridlock 
 
SANKEI (Page 13) (Abridged slightly) 
September 5, 2008 
 
By Hisahiko Okazaki, former ambassador to Thailand 
 
TOKYO 00002457  003 OF 009 
 
 
 
First, I would like to express my respect to Prime Minister Yasuo 
Fukuda for his swift decision to step down. 
 
Asked for my views on Prime Minister Fukuda since he came into 
office, I have always indicated that his strongest point lies in his 
humbleness. 
 
Constantly compared to his late father, Takeo Fukuda, who had 
enjoyed the confidence of conservatives as a lawmaker following in 
the footsteps of the Nobusuke Kishi administration, Yasuo Fukuda is 
a person capable of looking at himself objectively. 
 
It was like this when he resigned as chief cabinet secretary (in 
2004). He knows when to quit without clinging to authority and his 
position. 
 
As was mentioned by Fukuda himself, his decision this time resulted 
from the divided Diet. This is a product of the drawback no one 
intended to create in the process of drawing up the Constitution 
during the Occupation. 
 
Under the parliamentary government system originated in Britain, 
politics is supposed to be conducted while striking a balance 
between the government's right to dissolve the parliament and the 
parliament's right to submit a no-confidence motion. The mistake 
that created the Upper House, which cannot be dissolved by the 
government, though it has the authority similar to that of the Lower 
House, has surfaced after the end of the LDP's control over the 
upper chamber following half a century of the Occupation. 
 
 
Currently, there is only one means to dissolve this situation, that 
is, to create a system or a mental attitude to reach agreements that 
cross party lines on matters of national interests. 
 
The Maritime Self-Defense Force's refueling mission in the Indian 
Ocean to support Afghanistan is a vital issue in view of Japan's 
national interests. 
 
Party interests harm national interests 
 
The UN resolution on the U.S.-led coalition forces in Iraq expires 
at the end of this year. The ongoing assistance for Afghanistan is 
Japan's only support to the United States' counterterrorism 
strategy. In the event Japan terminates this assistance, Republican 
presidential candidate John McCain's immediate reaction can easily 
be imagined. 
 
Such would also be a matter of great concern for the policy of 
Democratic presidential candidate Barack Obama, who plans to put 
high priority on relations with Japan amid a variety of views on 
options. 
 
It is understandable that the Democratic Party of Japan led by 
Ichiro Ozawa, whose top priority is to win the next election, is 
trying to drive the government into a corner at all costs with the 
aim of scoring points. National interests take precedence over party 
interests. Can a person who does not understand such a thing be 
called a lawmaker? 
 
I want to see the next administration firmly promote the extension 
 
TOKYO 00002457  004 OF 009 
 
 
of the Antiterrorism Special Measures Law authorizing the MSDF's 
refueling operation in the Indian Ocean. 
 
I have more expectations for the next cabinet. The media reported 
that former Prime Minister Shinzo Abe walked off the job. He had no 
intention to walk off the job if not for his ill health. 
 
On the contrary, he was planning in the previous Diet session to 
resolve and implement the LDP's longstanding issues, such as 
amending the Basic Education Law, the establishment of a national 
referendum law necessary for amending the Constitution, and 
upgrading the Defense Agency to ministry status. 
 
Suspension of Abe reform drive regrettable 
 
A blue-ribbon panel was especially ordered to accelerate its 
deliberations on the government's interpretation of the right to 
collective self-defense. Completing its debates on four situations 
during the summer, the panel was scheduled to meet on Sept. 14 last 
year to wind up its discussions. Prime Minister Abe came down with 
an illness two days earlier. It was truly regrettable that the 
reform drive ended one step short of resolving the LDP's 
longstanding issues. 
 
No one has explained the reason why. The mood of passive resistance 
to Prime Minister Abe's courageous attempt to break away from the 
habitual thinking of over a half-century after WWII -- the lack of 
the courage and intellect to offer a logical explanation -- has 
blocked the reforms that were set in motion. 
 
I remember the following words by a grade school teacher who had 
received the Hakuho Award, which honors organizations and 
individuals for outstanding achievements in elementary and middle 
school education: "I have encouraged children to turn Japan into a 
beautiful country. Today's mood does not allow me to say those words 
to the children. What should I do?" 
 
It is a strange phenomenon. The education to abhor Occupation-period 
Japan, the remnant of the Japan Teachers' Union's education to 
benefit the communist bloc during the Cold War, has heavily shrouded 
Japan over the last one year like smog, though there is no longer an 
argument or intellect to defend it. 
 
I earnestly hope that the next cabinet or Japanese politics 
resulting from the latest political event will bring a ray of hope 
to this dark cloud. 
 
(3) Democratic Party, Republican Party set forth Japan policy in 
platforms for U.S. presidential election 
 
NIKKEI (Page 2) (Full) 
September 6, 2008 
 
In latest party conventions, the Republican Party and the Democratic 
Party adopted their respective policy platforms for the coming U.S. 
presidential election. The Democratic Party, which gives top 
priority to Afghanistan in the war on terrorism, will likely call on 
Japan to continue Maritime Self-Defense Force's (MSDF) refueling 
mission in the Indian Ocean if it wins power. An administration of 
the Republican Party, which places emphasis on the Japan-U.S. 
alliance, might ask for Japan to assume more responsibility and a 
greater burden, using the expression "demonstrate leadership." No 
 
TOKYO 00002457  005 OF 009 
 
 
matter which party wins in the November election, the new Japanese 
government will inevitably be pressed to make a specific reply. 
 
Democratic Party may call for continuation of refueling mission in 
war on terror, also seeks multinational framework 
 
The Democratic Party, which has nominated Barack Obama for 
president, notes in its platform: "The central front in the war on 
terror is in Afghanistan and Pakistan." Without any reference to 
Japan, the platform just stresses the need for deepened cooperation 
with the North Atlantic Treaty Organization (NATO), but it 
incorporates assistant measures in the economic and education areas, 
besides cooperation on the military front. Given this, a Democratic 
Party administration might ask Japan to make more contributions in 
infrastructure construction. 
 
Based on its advocacy of promoting international cooperation, the 
Democratic Party gives priority to strengthening cooperation with 
Pakistan. The Bush administration, in its call for Japan to continue 
the MSDF refueling operation, has cited the need for assistance of 
the sole Islamic nation that has taken part in the war on terror. 
Either a President Obama or a President McCain may come to ask Japan 
to continue the refueling service. 
 
The Democratic Party places Japan at the top on the list of allies 
in Asia, noting the U.S. will maintain its current strong relations 
with Japan, while also seeking a multilateral framework. This is 
similar to State Secretary Condoleezza Rice's approach to Asian 
nations to form a regional security organization that is based on 
the six-party talks on North Korea's nuclear problem. Candidate 
Obama calls for a policy of dialogue in dealing with North Korea, 
taking a different stance from Japan. 
 
Republican Party takes step into North Korea policy 
 
The Republican Party defines the long-term U.S.-Japan alliance as 
the cornerstone for maintenance of peace and stability in Asia. On 
policy toward North Korea, too, its platform urges Pyongyang to 
scrap all its nuclear weapons and programs in a complete, 
irreversible and verifiable way. It also stresses the need to shed 
light on its moves to proliferate nuclear weapons, taking one step 
farther than the Democratic Party's platform. A senior member of the 
McCain indicated consideration for and emphasis of Japan, saying: 
"Although the six-party talks are effective, they have moved forward 
only slightly. We will discuss how to resolve the issue with our 
allies, Japan and South Korea." 
 
But emphasis on the allies is to impose due responsibility on them. 
The Republican Party platform notes: "We hope that Japan will 
demonstrate leadership in dealing with Asian issues, as well as 
global issues," urging Japan to take action. The Defense Department 
expects Japan to expand cooperation not only in dealing with such 
international challenges as global warming but also in the military 
area, like progress in the realignment of U.S. forces in Japan and 
improvement in the ballistic missile defense network. 
 
In the war against terrorism, the U.S. military's strength, 
equipment, and budget are about to reach their limits. Its basic 
principle, therefore, is to urge its allies to shoulder a fair 
share. In the U.S. government, there is an atmosphere of seeking an 
increase in defense outlays. 
 
 
TOKYO 00002457  006 OF 009 
 
 
(4) Japan's national security based on international teamwork 
 
MAINICHI (Page 2) (Abridged) 
August 31, 2008 
 
Makoto Iokibe, president of the National Defense Academy 
 
In April this year, a 150,000-ton Japanese tanker, bearing the name 
Takayama Maru, was attacked and shot by pirates in the Gulf of Aden 
(in the Arabian Sea). On learning of the emergency, the German light 
cruiser Emden, which was on stage off Somalia, flew a helicopter to 
the rescue of the Takayama Maru. Eventually, the Japanese tanker was 
safe. 
 
Although it is not well known, Japan and Germany have actually 
helped each other out. In 1997, there was a riot in Albania, one of 
the Balkan states. At the time, Germany carried out military 
operations to rescue its nationals in that country. The military 
operations went well, and the German forces rescued foreign 
nationals, including 11 Japanese. The Japanese ambassador to Germany 
called on the foreign minister to express his gratitude. 
 
Soon after that, a crisis was just about to happen in Indonesia, 
with Suharto's impending downfall. Then Prime Minister Ryutaro 
Hashimoto decided to use Self-Defense Forces aircraft to rescue 
Japanese nationals. Hashimoto had four SDF planes flown to Singapore 
and ordered them to stand by there. At that time, Germany asked 
Japan to take care of about 100 German nationals. Japan was helped 
by Germany in the Balkans, so the Japanese government responded in a 
positive manner and revised its plan to prepare for that 
contingency. However, the crisis came to an end with Suharto's 
resignation. The German foreign ministry expressed its appreciation 
with impressive words: "Japan made the plan. That's the same as an 
actual rescue." 
 
Japan was willing and ready to engage in mutual assistance. In point 
of fact, however, Germany extended a helping hand to Japan twice, 
while Japan has done nothing for Germany in terms of mutual 
assistance. This is not exactly the spirit of give-and-take. 
 
Instead, Japan is carrying out refueling activities in the Indian 
Ocean. Of course, Germany is also receiving fuel from Japan in the 
Indian Ocean. In February this year, Japan resumed the Maritime 
Self-Defense Force's once-suspended refueling activities there. 
Germany has so far received three refueling services, ranking fourth 
in frequency next to Pakistan, France, and Canada. Japan's refueling 
activities are highly appreciated by various countries engaged in 
maritime interdiction operations in the Indian Ocean--which is far 
and inconvenient-for the war on terror. In January this year, when 
Japan decided to resume its Indian Ocean refueling activities, the 
German government welcomed the decision, stating: "Japan is an 
important international partner for us." There was such a 
background, and a German battleship rescued the Takayama Maru. 
 
Japan is a trading nation, so the sea lanes are its lifeline. 
However, Japan cannot defend its sea lanes alone. In order for Japan 
to secure its activities around world, there is no choice but to 
team up with other countries. In that respect, Japan's alliance with 
the United States, which has overwhelming power, has great merit. In 
addition, it is also essential for Japan to work together with many 
countries in each other's area of activities, as Japan has been 
doing so with Germany. 
 
TOKYO 00002457  007 OF 009 
 
 
 
Last year, Japan hosted an international training exercise in Sagami 
Bay for the proliferation security initiative (PSI) to prevent the 
proliferation of weapons of mass destruction. I had a chance to see 
the PSI training exercise there. The PSI is a framework of 
multilateral cooperation to crack down on weapons of mass 
destruction (WMD) smuggling. In the PSI drill, a small MSDF vessel 
chased, halted, and inspected a gigantic suspicious ship of more 
than 60,000 tons. I felt uneasy as I saw a crew of MSDF members 
climbing up the ladder from their dinghy and being swallowed up in 
the huge ship. What if the suspicious ship bared its fangs? The next 
moment, however, I figured it out. When I turned my eyes out over to 
the vast expanse of water, I found out that there were a number of 
warships floating over the horizon from such countries as the United 
States, Britain, France, and Australia. The suspicious ship was 
surrounded. Their presence backed the MSDF's bold action. The ship 
would have no choice but to surrender. 
 
This is the way Japan should secure itself, isn't it? Japan cannot 
completely defend itself with military spending up to 1 PERCENT  of 
its gross domestic product. Japan's national security is based on 
its international cooperation. 
 
"Japan's security is (a gamble for) all or nothing," Kyoto 
University Professor Masataka Kosaka, a scholar of international 
political science, once said. Japan covers its national security 
with 1 PERCENT  of GDP, but the reason why Japan can do so at this 
exceptionally low level of military spending is because Japan 
maintains its international cooperation including its alliance with 
the United States. Then, how about if Japan wants to have 
self-contained military systems on its own? In that case, Japan-its 
GDP was about half the scale of the United States in those 
days-would need 8 PERCENT  of its GDP for its military spending, or 
doubling the United States' military spending (4 PERCENT ). 
Professor Kosaka humorously talked about such an outline of how 
Japan's national security is. 
 
Japan cannot secure itself or pursue economic activities critical to 
its survival without international cooperation. Even so, Japan's 
international cooperation, including its participation in United 
Nations peacekeeping operations, is extremely low-keyed. Should 
Japan face a crisis without international cooperation, it would feel 
isolated and have no choice but to build up its military 
preparedness. We must not forget that giving up Japan's refueling 
mission in the Indian Ocean, which is one of the few means for Japan 
to shore up international cooperation, will affect Japan's national 
security and survival. 
 
(5) TOP HEADLINES 
 
Asahi: 
Lower House to be dissolved at outset of extraordinary session 
 
Mainichi: 
Tainted rice sold to confectionery maker in Kansai region 
 
Yomiuri & Nikkei: 
U.S. government takes control of troubled mortgage firms 
 
Sankei: 
Another alleged abduction of Japanese woman by North Korea 10 years 
ago 
 
TOKYO 00002457  008 OF 009 
 
 
 
Tokyo Shimbun: 
Oita board of education cancels hiring in 2007 of 6 teachers 
 
Akahata: 
JCP wins Tokyo City assembly by-election 
 
(6) EDITORIALS 
 
Asahi: 
(1) NSG's approval of lifting embargo of nuclear technologies and 
materials against India historical mistake 
(2) Countries should jointly use the Large Hadron Collider  (LHC) 
for research 
 
Mainichi: 
(1) Extension of North Korea's reinvestigation of abductions: Japan 
must prevent agreement with North Korea from becoming a dead letter 
(2) Defense White Paper: 2008 report should be last one that 
includes "scandals" 
 
Yomiuri: 
(1) LDP presidential race: Good opportunity to deepen debate on 
economic issues 
(2) Google's 10th anniversary: Is it all right for us to depend so 
heavily on Google? 
 
Nikkei: 
(1) Lifting of arms embargo of nuclear materials against India 
incomprehensible 
(2) Review also necessary achievement test 
 
Sankei: 
(1) New type of flu: Companies must seriously deal with matter 
(2) UN disarmament conference: New cooperation framework needed for 
nuclear nonproliferation 
 
Tokyo Shimbun: 
(1) If thalidomide is reauthorized, it must be used under strict 
control 
(2) New Pakistani president will face many difficulties 
 
Akahata: 
(1) Heating oil: Support for daily lives of people should be 
expanded 
 
(7) Prime Minister's schedule, September 6 
 
NIKKEI (Page 2) (Full) 
September 7, 2008 
 
09:47 
Met Defense Minister Hayashi and National Public Safety Commission 
chief Hayashi in the JR Tokyo VIP room. 
 
10:02 
Saw off the Emperor and Empress to attend the national convention 
for        marine life. 
 
10:22 
Returned to his official residence. 
 
 
TOKYO 00002457  009 OF 009 
 
 
11:19 
Enjoyed shopping with wife Kiyoko at Iwaki Ginza. Afterward saw the 
Michiko Kobayashi exhibition at the Shinwa Art Museum. 
 
12:14 
Had a dinner with wife at a Hotel Okura Chinese restaurant. 
 
13:48 
Returned to his official residence. 
 
Prime Minister's schedule, September 7 
 
NIKKEI (Page 2) (Full) 
 
September 8, 2008 
 
Morning 
Spent time at his official residence. 
 
18:26 
Had a family dinner at a Chinese restaurant in Higashi-azabu. 
 
20:41 
Returned to his official residence. 
 
ZUMWALT