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UNCLAS SECTION 01 OF 08 TOKYO 002474 
 
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) Diplomatic tasks left by Fukuda administration: Coordination 
with new government urged for (Mainichi) 
 
(2) NSG decides to lift ban on nuclear trade with India; Major 
nuclear powers' double standard revealed; Japan endorses decision 
that conflicts with nuclear disarmament (Mainichi) 
 
(3) America's excitement and Japan's casualness (Asahi) 
 
(4) DPJ Ozawa announces set of basic policies, lacking specifics on 
fiscal resources, timing (Nikkei) 
 
(5) DPJ President Ozawa to stipulate in administrative concepts that 
senior vice ministers and parliamentary secretaries would be 
increased to 100 (Nikkei) 
 
(6) TOP HEADLINES 
 
(7) EDITORIALS 
 
(8) Prime Minister's schedule, Sept. 8 (Nikkei) 
 
ARTICLES: 
 
(1) Diplomatic tasks left by Fukuda administration: Coordination 
with new government urged for 
 
MAINICHI (Page 7) (Full) 
September 5, 2008 
 
By Hitoshi Tanaka, senior fellow at the Japan Center for 
International Exchange 
 
Prime Minister Fukuda's abrupt announcement of his decision to step 
down has been criticized as irresponsible. He should have apologized 
to the public in a press conference. But I guess that behind this 
decision might have been the pangs of conscience as a politician. I 
conjecture that Mr. Fukuda might have come to this conclusion: It is 
no longer possible for his government to implement policies in a 
responsible manner due to the current lopsided Diet and low public 
support; In order to help out the nation's crisis, since it is the 
sole way for a new administration that wins public trust in a 
general election to implement policies, a new prime minister should 
be elected, and a general election should be carried out as soon as 
possible. 
 
I think that Japanese political leaders should give priority to 
national interests over party interests. A new prime minister of the 
Liberal Democratic Party should dissolve the House of 
Representatives at the outset of the extraordinary Diet session 
without wasting time and seek to win public confidence by holding a 
general election. The new political leader should establish his or 
her administration as soon as possible and implement powerful 
policies, because Japan is now in a serious crisis. 
 
Although Japan's national power is on the eclipse, Japan's status in 
the international community has been undermined more seriously by 
the ongoing political confusion than by the decline in national 
power. Diplomatic clout should work more effectively than national 
power. But we cannot expect Japan, which tends to be affected by 
 
TOKYO 00002474  002 OF 008 
 
 
political populism, to engage in vigorous diplomacy. It would seem 
impossible for a government that lasts only one year or so to 
produce diplomatic results. 
 
The next full-scale government will have to address three major 
diplomatic issues. These are closely linked to the issue of what 
Japan should be doing. 
 
The first challenge is coordination of relations with the U.S. I 
think Japan should fulfill its due responsibility in the war on 
terrorism, but I do not think the sole way to do so is by continuing 
the ongoing refueling mission in the Indian Ocean. A new Japanese 
government should consider what role Japan should play in the 
international security area. I think the next U.S. administration 
will shift from the unilateralism of the Bush White House toward a 
multilateral stance and call on advanced democratic countries to 
shoulder an appropriate burden. It is the right time for Japan to 
partially review the government's interpretation of the 
Constitution, focusing on the right to collective self-defense, to 
enable Self-Defense Force troops to participate in the collective 
security system under the United Nations. After doing this, the new 
Japanese government should hold close talks with the new U.S. 
government on burden-sharing. 
 
The second challenge is coordination with East Asia. The recent 
remarkable economic growth of China and India has changed power 
relations among countries. Under this situation, the world remains 
unable to find an effective solution to such emergency issues as the 
environment, energy, and food. It is the top priority task for Japan 
to establish a stable order for East Asia involving China and India. 
Japan should assume the initiative in creating a multilateral 
economic partnership region in East Asia, as well as multinational 
mechanisms to prevent proliferation of weapons of mass destruction 
and attacks by terrorists or pirates, as well as to ensure energy 
security. To that end, Japan, China, and South Korea should urgently 
hold trilateral talks to discuss their visions. 
 
The third challenge is the Korean Peninsula issue. In an effort to 
resolve the issue of Japanese nationals abducted by North Korean 
agents, Japan should launch comprehensive talks with North Korea, 
based on the Pyongyang declaration. I think Japan should call for 
negotiations that would lead to a Japan-North Korea summit, from a 
broad perspective, instead of considering only the North's start of 
a reinvestigation in the abduction issue in exchange for Japan's 
partial removal of sanctions against it. 
 
(2) NSG decides to lift ban on nuclear trade with India; Major 
nuclear powers' double standard revealed; Japan endorses decision 
that conflicts with nuclear disarmament 
 
MAINICHI (Page 3) (Abridged slightly) 
September 7, 2008 
 
Takuji Nakao in Vienna, Kenichi Komatsu in Washington 
 
The latest general meeting of the Nuclear Suppliers Group (NSG) has 
endorsed a proposal to lift a global ban on nuclear trade with India 
as an exceptional to NGS guidelines, despite the country's 
development of nuclear weapons in defiance of the Nuclear 
Nonproliferation Treaty (NPT) regime. Such countries as the United 
States, which has been eager to cooperate with India as the world's 
largest democracy, France, and Russia steamrollered New Zealand and 
 
TOKYO 00002474  003 OF 008 
 
 
others countries that had called for a cautious response. The NPT 
which aims for nuclear nonproliferation and the NSG's visions are 
now in danger of being reduced to pie in the sky. 
 
Japan, which is supposed to advocate a nuclear-free world as the 
sole atomic-bombed country, effectively endorsed the nuclear 
exception for India from the viewpoint of security and enhancing 
bilateral relations with that country, siding with the United 
States. Japan's act that is tantamount to helping the NPT turn into 
a dead letter will inevitably be criticized as a double standard at 
home and abroad. 
 
In the NSG meeting, Japan applied pressure on the United States by 
urging that a moratorium on India's nuclear testing be specified in 
the accord, but it backed off in the end. It was because India 
issued a foreign minister's statement declaring that the country 
would continue its nuclear moratorium and also because Japan highly 
valued a decision on stricter nuclear inspections by the 
International Atomic Energy Agency. 
 
A Foreign Ministry official explained: "Although it was insufficient 
from the ultimate goal of eliminating nuclear weapons, priority was 
given to the pragmatic objective of winning India over to the NSG 
side as a nuclear power." Priority was reportedly given to defining 
India in an international agreement although such is not quite 
consistent with the NPT regime. 
 
The government's decision also comes from its desire to strengthen 
ties with India, which is keep on growing at a fast pace. The 
cooperation of India, a major greenhouse gas emitter, is 
indispensable in reaching an anti-global-warming framework 
agreement. The decision also intended to give a boost to efforts to 
conclude an economic partnership agreement (EPA) with India before 
the end of the year. 
 
It is also a fact that the treatment of India which sits outside the 
NPT regime runs counter to the international nuclear disarmament 
trend. Additionally, the NSG accord might also have a negative 
impact on the denuclearization talks with North Korea that conducted 
a nuclear test. Japan's prioritization of the reality of nuclear 
control while obscuring the principle might end up stifling Japan's 
foreign policy in the long run. 
 
(3) America's excitement and Japan's casualness 
 
ASAHI (Page 2) (Abridged slightly) 
September 9, 2008 
 
By Yoshibumi Wakamiya, Asahi columnist 
 
In the United States, Democratic presidential candidate Barack Obama 
is aiming to take over the reins of government from the Republican 
Party, hitting the Iraq war and economic mismanagement. His rival, 
John McCain, is trying to restore the pride and the principles of 
the Republican Party. Obama has become the first African-American 
presidential candidate, while McCain has picked a female governor as 
his running mate. All eyes are on the historic U.S. presidential 
race as the Nov. 4 election approaches. 
 
Meanwhile in Japan, Ichiro Ozawa yesterday sealed his third term 
unopposed as president of the Democratic Party of Japan. The Liberal 
Democratic Party's presidential campaign period also begins on Sept. 
 
TOKYO 00002474  004 OF 008 
 
 
10 in the wake of Prime Minister Yasuo Fukuda's decision to step 
down. After that, the next general election apparently lies. Timed 
with the U.S. presidential race, a political battle that might 
result in a change of government is likely to take place in Japan, 
as well. 
 
The next LDP president, who automatically becomes the next prime 
minister, might be short-lived, however. The LDP and DPJ 
presidential elections are primaries, so to speak. How are the races 
on this side of the Pacific going? 
 
Although Ozawa's policy stances have often been criticized as 
unrealistic, no one ran against him. The DPJ is buckling down to 
take power, but there is no comparison with the excitement of the 
Obama and Clinton campaigns. The selection of the DPJ president that 
was conducted without asking any questions about his policies has 
left concerns about what would come should that party assume the 
reins of government. 
 
In contrast, the LDP race, joined by candidate after candidate, is 
full of life. Nevertheless, with the two consecutive presidents 
having walked off the job, the LDP presidential election has now 
turned into a seasonal event. Several LDP lawmakers have come 
forward without feeling ashamed of such a fact. The casualness of 
the post of the prime minister has been exposed. 
 
Declined factional clout is fine, but it is deplorable that the LDP 
has now turned into a disorderly and lax party. The LDP's attempt to 
showcase policy debates has exposed the deep paradox over reform 
that has existed in the party since the Koizumi administration. 
 
The LDP presidential candidates, including the first female 
candidate and veteran and junior lawmakers, are all attractive in 
their own way. But when it comes to their credentials to become the 
prime minister, many questions remain. Some have made slips of the 
tongue and another reportedly has health problems. One was even 
blamed for a major accident. They must first make efforts to dispel 
public mistrust and concerns. 
 
Ozawa, whose desire to serve as the prime minister had been 
questioned due to his failed attempt to form a grand coalition, 
reportedly has made up his mind this time around. Legislators eyeing 
to become the country's top leader must have the drive and gutsiness 
to continue steering the government under any circumstances. 
 
(4) DPJ Ozawa announces set of basic policies, lacking specifics on 
fiscal resources, timing 
 
NIKKEI (Page 3) (Full) 
September 9, 2008 
 
Democratic Party of Japan (DPJ) President Ozawa, who was reelected 
uncontested for a third term, reiterated his determination to take 
over the reins of government from the ruling coalition in a press 
conference yesterday. The same day, Ozawa announced a set of 
fundamental policies, including measures to reform the pension and 
medical systems, as well as to abolish the provisional gasoline tax 
rate, under the slogan of giving top priority to the lives of the 
people. But the package stops short of explaining how to secure 
fiscal resources worth over 18 trillion yen to fund these measures. 
It also lacks a timetable for each proposed item to be implemented. 
 
 
TOKYO 00002474  005 OF 008 
 
 
At least 18 trillion yen needed 
 
The shadow cabinet in a meeting today will start working out in 
earnest a manifesto for the next House of Representatives election, 
based on Ozawa's package of basic policies released yesterday. The 
basic-policy package will add policies set forth after the House of 
Councillors election in July 2007, such as a measure to scrap the 
provision gasoline tax rate, to those included in the manifesto for 
the July election. A major question is how to secure fiscal 
resources to pay for everything. 
 
The Upper House manifesto estimated the necessary amount of fiscal 
resources at 15.3 trillion yen. To implement the measures cited in 
the basic policies, an additional 3 trillion yen will become needed 
unless Ozawa presents spending-cut measures to be able to set off 
the revenue loss expected from the abolition of the provisional tax 
rates. If the package also includes a fresh measure to give income 
support for individual fishermen as an economic stimulus measure, 
outlays for policies will expand further. 
 
In the press conference yesterday, Ozawa, asked about how he would 
secure fiscal resources, said in disgust: "Saying that there are no 
fiscal resources is exactly what bureaucrats often say. If politics 
and administration are fully examined, satisfactory fiscal resources 
can be squeezed out." Ozawa has insisted that if wasteful outlays 
are reduced, it will be possible to secure enough fiscal resources. 
He said that he would slash useless spending specifically by: (1) 
dismantling special corporations and special accounts in principle; 
(2) discontinuing subsidies but granting fiscal resources to local 
governments in a package; and (3) completely abolishing the 
amakudari practice (government officials finding lucrative jobs in 
private corporations after retirement). 
 
The package makes no reference to the government's plan to return 
the national and local governments' primary balance into the black 
by fiscal 2011, although it was incorporated in the Upper House 
manifesto. Debates on fiscal resources will significantly change, 
depending on whether to maintain the plan or not, so attention is 
likely to be paid to how the party will treat this issue. 
 
On global warming and security policies, Ozawa has left some parts 
ambiguous. The party's taskforce has recommended introducing a 
global warming countermeasure tax, but the package notes nothing 
about this measure. On the security area, in which views are split 
over whether to send Self-Defense Force troops overseas, the package 
just notes: "SDF troops should proactively participate in UN 
peacekeeping operations." 
 
The party is expected to discuss the issues left vague in the 
process of drawing up a manifesto for the Lower House election, but 
coordination in the party may face rough going. 
 
Dependence on cuts in special accounts overly easy-going 
 
On Ozawa's call for stopping wasteful spending, the dominant view 
among economists and experts is that Ozawa's explanations lack 
specifics. 
 
For instance, he promised to abolish the National Debt Consolidation 
Fund Special Account, but it does not mean that the funds to redeem 
national bonds will become unnecessary. On the National Pension 
Special Account, as well, many observers say that it is too 
 
TOKYO 00002474  006 OF 008 
 
 
easy-going to think that fiscal resources will be secured if the 
account is completely abolished. To avoid useless spending, 
reviewing the pension system itself is indispensable. 
 
The total amount of expenditures in the special accounts reaches 
approximately 178 trillion yen. Ozawa pointed out: "About 10 
trillion yen has been earmarked for unnecessary items. Money has 
also been disbursed from the general account (to special accounts) 
in various forms." 
 
To be sure, an abolition of special accounts will lead to shrinking 
some reserve funds, and there might be some unnecessary parts in the 
48 trillion yen into special accounts from the general account 
annually. But it will become necessary to discuss each special 
account, so it is uncertain to what extent fiscal resources can be 
secured by this means. 
 
On the highway budget, Ozawa referred to a reduction in the gasoline 
and other road-related tax rates, saying: "The highway budget worth 
5.6 trillion yen is no longer necessary." He then came up with a 
measure to impose no charges for expressway use. There was no 
reference to how to tap the fiscal resources to pay off the debts 
held by the Japan Expressway Holding and Repayment Agency and 
boosting maintenance costs, either. 
 
On the measure to discontinue the amakudari practice, too, it will 
become necessary to establish a system to keep all senior government 
officials in office until they reach retirement age. In such a case, 
personnel costs will increase, so the impact of the proposal remains 
uncertain. 
 
The economic research department chief of the Nissei Research 
Institute commented: "It is somewhat ambiguous whether he is 
pursuing aggressive fiscal policy or economic growth by cutting 
wasteful spending." 
 
(5) DPJ President Ozawa to stipulate in administrative concepts that 
senior vice ministers and parliamentary secretaries would be 
increased to 100 
 
NIKKEI (Page 1) (Slightly abridged) 
September 7, 2008 
 
It was learned on Sept. 6 that Democratic Party of Japan (DPJ) 
President Ichiro Ozawa would come up with a plan to double the 
number of senior vice ministers and parliamentary secretaries to 
about 100. He intends to incorporate this plan in a set of 
administrative concepts he will soon reveal. The aim is to shift the 
center of gravity of the government from bureaucrats to politicians 
by drastically revamping the compilation of budgets and 
policy-making, in which bureaucrats now have the initiative, when a 
government led by the DPJ is launched. 
 
Ozawa is expected to announce administrative concepts at the party's 
convention on Sept. 21. Based on those precepts, the DPJ will draft 
a manifesto (set of campaign pledges) for the next House of 
Representatives election. 
 
In addition to an increase in the number of senior vice ministers 
and parliamentary secretaries, ministerial assistant posts would be 
created and the posts would be served by politicians. The number of 
deputy chief cabinet secretaries would be increased from the present 
 
TOKYO 00002474  007 OF 008 
 
 
two, which are now served by Upper and Lower House members. An 
assistant deputy chief cabinet secretary post, which is served by an 
administrative vice minister-level bureaucrat, would be given to a 
lawmaker. 
 
Ozawa will look into the possibility of expanding the political 
appointments of senior ministry officials, including bureau director 
general-level officials, and he will also come up with a plan to 
actively appoint private-sector persons to let them serve in 
government posts. Although the revised basic law on the national 
civil service system stipulates the establishment of a cabinet 
personnel affairs agency, which would control the personnel changes 
of senior government officials, Ozawa has judged that the revision 
is insufficient to correct the seniority-based promotion system. 
 
Ozawa will also include decentralization in his administrative 
concepts. A government-led by the DPJ would abolish in principle 
individual subsidies from the state to local governments, but it 
would provide subsidies in a lump to local governments, which would 
be able to use them freely. The state, prefectures and 
municipalities would be reorganized to about 700 to 800 broad and 
basic autonomous bodies over the next five to seven years. 
 
(6) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: 
Sumo association fires Roho, Hakurozan after they tested positive 
for marijuana 
 
Nikkei: 
Bank deposits top loans by record 145 trillion yen 
 
Akahata: 
National convention for aged adopts resolution to abolish medical 
insurance system for people 75 and older 
 
(7) EDITORIALS 
 
Asahi: 
(1) Ozawa-led DPJ must demonstrate unity in drafting policies 
(2) Tainted rice misused: MAFF to blame partially 
 
Mainichi: 
(1) DPJ must produce a solid manifesto 
(2) Sumo world needs a fresh start 
 
Yomiuri: 
(1) DPJ must show itself ready to govern 
(2) Sumo needs drastic reform 
 
Nikkei: 
(1) U.S. financial crisis far from over 
(2) Ozawa must join policy debate 
 
Sankei: 
(1) DPJ still unconvincing to take power 
(2) U.S. financial sector needs bolder bail-out plan 
 
Tokyo Shimbun: 
(1) Ozawa must speak up 
(2) Sumo world must be reformed 
 
 
TOKYO 00002474  008 OF 008 
 
 
Akahata: 
(1) Misused tainted rice: Food security essential 
 
(8) Prime Minister's schedule, Sept. 8 
 
NIKKEI (Page 2) (Full) 
September 9, 2009 
 
09:40 
Met at Kantei with METI Minister Nikai and METI Economic and 
Industrial Policy Bureau chief Matsunaga. Nikai remained. 
 
11:01 
Attended consumer administration promotion council meeting. 
 
13:01 
Met with former Deputy Chief Cabinet Secretary Ono. 
 
14:28 
Met with Internal Affairs and Communications Minister Masuda and the 
ministry's Local Tax Bureau chief Kono. 
 
15:04 
Met with Indonesian Ambassador to Japan Anwal. Me afterwards with 
China-Japan Friendship Association Vice Chairman Wang Xiaoxian. 
 
17:01 
Met with Czech President Klaus. 
 
18:21 
Returned to his official residence. 
 
 
ZUMWALT