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RUCNDT/USMISSION USUN NEW YORK 1583

UNCLAS SECTION 01 OF 09 TOKYO 002495 
 
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 09/10/08 
 
INDEX: 
 
(1) Poll on post-Fukuda premiership (Mainichi) 
 
(2) Political maneuvering starting over Lower House election to 
choose new administration; LDP hopes for policy debate, DPJ wants to 
eliminate bureaucratic power (Nikkei) 
 
(3) I Corps will not move to Zama: U.S. commander (Yomiuri) 
 
(4) Editorial: Seven years since 9/11 -- Let's create new common 
ground (Asahi) 
 
(5) METI's new economic strategy calls for increasing resilience to 
soaring resource prices (Nikkei) 
 
(6) TOP HEADLINES 
 
(7) EDITORIALS 
 
(8) Prime Minister's schedule, September 9 
 
ARTICLES: 
 
(1) Poll on post-Fukuda premiership 
 
MAINICHI (Page 5) (Full) 
September 10, 2008 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: What do you think is needed for prime minister? 
 
 T P M F 
Experience 3  3 4 
Determination 33  35 31 
International sensibility 3  3 3 
National popularity 2  2 2 
Policy implementation 36  35 37 
Foresight 9  11 8 
Coordinating ability 3  3 3 
Personality 4  3 5 
A sense of morality 2  2 3 
Youthfulness 1  1 1 
 
Q: Who do you think is appropriate for prime minister now? (Free 
choice) 
 
 T P M F 
Taro Aso 23  24 23 
Junichiro Koizumi 7  6 7 
Ichiro Ozawa 7  9 4 
Yuriko Koike 4  3 5 
Nobuteru Ishihara 4  4 4 
Kaoru Yosano 1  1 1 
Shigeru Ishiba 1  1 1 
Other ruling party lawmakers 3  3 3 
Other opposition party lawmakers 2  3 2 
Other than lawmakers 3  4 2 
None + no answer (N/A) 46  42 49 
 
 
TOKYO 00002495  002 OF 009 
 
 
Q: Do you appreciate Prime Minister Fukuda and his cabinet over the 
past year? 
 
 T P M F 
Yes 21  18 23 
No 73  76 71 
 
Q: Do you appreciate Democratic Party of Japan (Minshuto) President 
Ichiro Ozawa? 
 
 T P M F 
Yes 22  28 17 
No 72  67 77 
 
Q: Which form of government do you think is desirable? 
 
 T P M F 
The current coalition government of the Liberal Democratic Party and 
the New Komeito 14  12 16 
A grand coalition of the Liberal Democratic Party and the Democratic 
Party of Japan 37  33 41 
The LDP's single-party government 10  13 8 
A DPJ-led coalition government 17  21 14 
The DPJ's single-party government 6  8 4 
A non-LDP, non-DPJ coalition government 6  5 6 
 
(Note) Figures shown in percentage, rounded off. 
 
Polling methodology: The survey was conducted across the nation on 
Sept. 5-7. For the survey, a total of 4,602 persons were chosen from 
among men and women, aged 20 and over (as of Sept. 30), at 300 
locations on a stratified two-stage random sampling basis. Answers 
were obtained from 2,563 persons (56 PERCENT ). 
 
(2) Political maneuvering starting over Lower House election to 
choose new administration; LDP hopes for policy debate, DPJ wants to 
eliminate bureaucratic power 
 
NIKKEI (Page 1) (Full) 
September 9, 2009 
 
Lower House dissolution in October eyed 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday was 
reelected to a third term unopposed. He immediately sent out a 
signal to take over the reins of government from the ruling 
coalition. In the ruling Liberal Democratic Party (LDP), meanwhile, 
policy debate is now moving into full swing among candidates for the 
party's presidential election. Both the LDP and DPJ are eyeing a 
dissolution of the House of Representatives in October and a general 
election in November. How will the ruling and opposition parties put 
an end to the politically divided Diet? 
 
Ozawa's press conference on Sept. 8 lasted for about 40 minutes, 
twice the length of his regular press meeting. In it, Ozawa stressed 
the need for shifting the center of gravity of the government from 
bureaucrats to politicians. He said: "No matter who assumes its 
presidency, the LDP does what it is told to do by the bureaucrats." 
He tried to say that smoldering frustration among the public over 
pensions, medical services and jobs have resulted from the "nature" 
of the LDP and the bureaucracy at Kasumigaseki. 
 
 
TOKYO 00002495  003 OF 009 
 
 
Ozawa, who left the LDP 15 years ago, underscored that he would risk 
his political life to take over the reins of government. He 
announced on Sept. 8 a set of basic policies, in which he expressed 
his determination to create a government system, which would be 
controlled by politicians, by increasing the number of senior vice 
ministers and parliamentary secretaries. 
 
Regarding the prospect for the next Lower House election, Ozawa 
said: "The situation is      tough." In consideration of such a 
situation, the package of basic policies includes measures that may 
be criticized for pork-barrel largesse. The measures include: 
creating a child-rearing support system under which the government 
would pay 26,000 yen per child per month; and abolishing provisional 
gasoline-related taxes; and income support for individual fishermen. 
It is believed that the package needs fiscal resources worth over 18 
trillion yen. 
 
Ozawa's argument is that cozy relations between the LDP and 
Kasumigaseki have created the wasteful use of tax revenues. Ozawa, 
therefore, believes that fiscal resources would be secured by 
political change. He has said that he will explain how to secure 
fiscal resources soon or later. However, it is uncertain when he 
will present a roadmap, including the date for implementing the 
measures. If the package is a copy of the party's manifesto for last 
July's House of Councillors election, which estimated the necessary 
amount of fiscal resources at 15.3 trillion yen, it will lack 
persuasiveness. 
 
How about the policies of the LDP presidential candidates? Secretary 
General Taro Aso, the front-runner, takes a clear stance. He said in 
a meeting of freshman lawmakers from the two Diet chambers: "It is 
no good to implement fiscal reconstruction based on 
fundamentalism." 
 
In the background, Aso is concerned about the general election. 
Since the LDP was defeated by the DPJ in last year's the Upper House 
election, LDP prefectural chapters have called on party headquarters 
to carry out warm-hearted politics for provisional areas, which have 
been impoverished due to structural reforms. Aso has repeatedly 
visited rural areas since he stepped down as secretary general in 
the Abe administration. So, it may be only natural for Aso to 
advocate the need for aggressive fiscal spending. On Sept. 8 
Economic and Fiscal Policy Minister Kaoru Yosano, who places 
priority on fiscal reconstruction, and former Defense Minister 
Yuriko Koike, who attaches importance to economic growth, formally 
announced their candidacies for the presidential race. They are 
expected to hold heated policy debate. The question is how much of 
their policies will be reflected in the party's manifesto for the 
Lower House election. Some lawmakers have sought to constrain 
Yosano, with one saying: "If we say we will hike the consumption 
tax, we won't be able to win the election." 
 
Aso and New Komeito Secretary General Kazuo Kitagawa held a meeting 
on the night of Sept. 8 at a Tokyo hotel. The meeting was also 
attended by LDP Election Strategy Council Chairman Makoto Koga and 
New Komeito Electoral Policy Committee Chairman Yoshihisa Inoue. No 
matter who becomes LDP president, it seems unavoidable that the New 
Komeito's demand for a fixed tax reduction worth several trillion 
yen will be included in the ruling coalition's platform. 
 
The will of voters that will be shown in the next Lower House 
election will make clear which party becomes the axis of government. 
 
TOKYO 00002495  004 OF 009 
 
 
Voters need elaborative manifestos to judge for which party they 
should vote. How the debate will turn out cannot be predicted. 
 
(3) I Corps will not move to Zama: U.S. commander 
 
YOMIURI (Page 31) (Full) 
September 10, 2008 
 
U.S. Army Japan (USARJ) Commander Francis Wiercinski, meeting the 
press yesterday, said the U.S. Army 1st Corps' headquarters, 
currently located in the U.S. mainland state of Washington, and its 
forward-deployed command established at Camp Zama, a U.S. Army base 
straddling the cities of Sagamihara and Zama in Kanagawa Prefecture, 
are "quite different organizations." The commander indicated that 
the 1st Corps will not relocate its headquarters to Camp Zama. 
 
A reporter asked, "Local residents are worried that the First Corps' 
headquarters may come to Camp Zama." Commander Wiercinski admitted 
that the 1st Corps sent troops, but he denied its involvement. He 
added, "The forward-deployed command is an on-site organization 
prepared for emergencies in the Far East." With this, he stressed 
the difference between the two organizations. 
 
The forward-deployed command was set up at Camp Zama last December 
as part of the U.S. military's realignment intended to enhance its 
readiness against terrorism and other eventualities. Local residents 
were concerned about the forward-deployed command's establishment. 
"In the future," one local resident said, "it may be integrated with 
the First Corps and the base's functions may be reinforced." 
 
The commander also referred to a plan on building a command exercise 
facility (simulation center) on the premises of the U.S. Army's 
Sagami Depot in the city of Sagamihara. "We want to have it built as 
early as possible," he said. The facility's design is now in the 
finishing touches. Construction work will start before the summer of 
2009 and is planned to be completed in the fall of 2010, the 
commander said. 
 
(4) Editorial: Seven years since 9/11 -- Let's create new common 
ground 
 
ASAHI (Page 3) (Full) 
September 10, 2008 
 
In the wake of the 9/11 attacks, many people from around the world 
expressed support for the determination of the United States to 
confront terrorism. Sharing the sorrow, shock, and anger with the 
United States, people in many countries felt compelled to eradicate 
terrorism. 
 
Every country must work hard so as not to allow international 
terrorist groups to repeat barbarous acts. Such a sense of unity was 
prevalent. There was clearly an atmosphere to consider steps to 
combat terrorism based on a common ground. 
 
Solidarity weakening 
 
Seven years will have passed tomorrow since then. 
 
Antiterrorism operations started in Afghanistan and Iraq under the 
leadership of the United States, and the subsequent military 
control, still continue. There has been no major terrorist attack on 
 
TOKYO 00002495  005 OF 009 
 
 
the United States (since 2001). President George W. Bush boasts that 
the country's security has been defended because of the war on 
terror being waged outside the country. But there no longer exists 
the sense of unity that was shared by many people across the globe. 
 
What happened? The bond between the United States and its 
traditional allies was strained, and such phrases as "old Europe, 
new Europe" and the "coalition of the willing" were used often. The 
bond between the United States and its European allies was strained 
over the Iraq war, and the countries are still out of step with each 
other in rebuilding Iraq. 
 
Although Afghanistan is supposed to be headed for democracy, the 
security situation in that country is deteriorating because the 
Taliban has regained influence over the last two to three years. 
Osama bin Laden has yet to be caught. The United States has asked 
its allies to send more troops to Afghanistan, but most of them are 
reluctant to do in view of its price and poor prospects. 
 
In Pakistan, President Perves Musharraf, who had been cooperative in 
the U.S.-led war on terror, has been forced to resign, and the 
country's political situation is still unstable. 
 
Foreign Affairs (July/August issue) carried Secretary of State 
Condoleezza Rice's essay that read: "Al Qaeda's theory of victory is 
to hijack the legitimate local and national grievances of Muslim 
societies and twist them into an ideological narrative of endless 
struggle against Western, especially U.S., oppression." Although the 
United States was aware of such theory, it has been at a loss what 
to do with the anti-American sentiment that has spread in Muslim 
societies over the last seven years. 
 
The Iranian president's pursuit of an uranium enrichment program, 
instigated by anti-American sentiment, is probably not totally 
divorced from that. 
 
Theory of defeating terrorism 
 
Former Russian President Vladimir Putin once said: "We are with the 
people of the United States." Russia has recently shown a stance of 
challenging the United States on the strength of its economic might 
backed by its petro-money. 
 
Where has that sense of unity gone? 
 
The Bush administration "with-us-or-against-us" theory is to blame. 
Behind terrorism lies a variety of factors, such as history and 
ethnicity. U.S. allies have their own circumstances. To begin with, 
Muslim countries were distrustful of the United States that 
constantly supported Israel. 
 
The Bush administration has lost global trust and influence because 
it excessively tilted toward war on "American grounds," so to speak. 
The common ground seems to have eroded as a result. 
 
What are the plans of U.S. presidential candidates, Barack Obama and 
John McCain, to revamp the war on terror? They have unveiled their 
own strategies. One candidate would withdraw from Iraq and the other 
would continue the present military operation. The basic question, 
though, is how to rebuild the common ground. 
 
How to create a ground that can be accepted by many Moslem 
 
TOKYO 00002495  006 OF 009 
 
 
countries, Russia and China, not to mention Japan and European 
nations? 
 
Although armed strength is necessary, how military might is used 
must be reexamined. To eliminate the breeding ground for terrorism, 
we must extend enhanced support that can help each country 
demonstrate its own capabilities. 
 
Secretary Rice explained "our theory of victory" this way: To offer 
Muslim peoples a democratic path to advance their interests 
peacefully -- to develop their talents, to redress injustices, and 
to live in freedom and dignity. 
 
We cannot agree more. We must recreate the ground where the 
countries around the world can combine efforts for this theory. 
 
Japan, too, must explore an accord 
 
Japan has constantly struggled to cooperate with the United States. 
The dispatch of the Self-Defense Force to Iraq under the former 
Koizumi administration is a prime example. Thanks to that, relations 
with the Bush administration have been good. But how should Japan be 
involved in the international effort to eliminate terrorism? Japan 
has yet to determine its direction. 
 
Over the question of continuing the refueling mission in the Indian 
Ocean, the Liberal Democratic Party asks if Japan alone should be 
allowed to drop out of the war on terror. The Democratic Party of 
Japan opposes it, calling the refueling mission unconstitutional. 
 
The propriety of the refueling mission must be examined from the 
viewpoint of the stability of Afghanistan. Are there any other ways 
for Japan to contribute under its military constraints? The two 
parties are responsible to build a common ground in Japan to address 
common international issues. 
 
President Bush's tenure of eight years will come to an end shortly. 
The next U.S. leader will bear enormously heavy responsibility to 
restore international solidarity. At the same time, how should 
Japan's next leader take and support it? The season of election to 
answer that question has rolled in. 
 
(5) METI's new economic strategy calls for increasing resilience to 
soaring resource prices 
 
NIKKEI (Page 5) (Full) 
September 9, 2008 
 
The Ministry of Economy, Trade and Industry (METI) has drafted a new 
economic growth strategy to increase the Japanese economy's growth 
potential from the medium- to long-term perspective. The draft 
stresses the need to increase resilience to soaring oil and other 
resource prices, as well as to promote exports and investment in 
emerging countries. The draft incorporates specific measures aimed 
to expedite energy conservation by lowering taxes on capital 
investment and other specific measures. The new strategy estimates 
that the country would realize real annual growth of 2.4 PERCENT  in 
gross national income (GNI) by fiscal 2015. 
 
Focus on attracting overseas funds; Regulatory reform insufficient 
 
METI Minister Toshihiro Nikai will announce the new strategy today. 
 
TOKYO 00002495  007 OF 009 
 
 
In 2006, the government released the New Economic Growth Strategy, 
as its first policy guidelines to realize an over 2 PERCENT 
economic growth in real terms despite the nation's declining and 
aging population. Given recent soaring oil prices, structural 
changes in the global economy, as well as global warming, the 
ministry decided to significantly review the original report. 
 
Because Japan has few natural resources, it largely relies on 
imports. Accordingly, huge income has flown out of Japan due to 
skyrocketing oil prices. Income outflows to foreign countries in 
fiscal 2007 registered a record high of about 21 trillion yen. In 
the nation, deteriorating corporate profits and stagnant personal 
consumption have pushed the economy into a recessionary phase. 
 
In accordance with its subtitle, "Change this critical situation 
into a good opportunity," the latest strategy suggests: (1) 
radically improving productivity to wring out even more from the 
nation's few natural resources; and (2) fully promoting 
globalization in order to maximize the benefits of rapid economic 
growth in the Middle East, Russia, Australia, and other countries. 
 
The proposed specific measures to conserve resources include 
promoting intensive investment by lowering taxes on capital 
investment. For instance, a group of companies at an oil complex 
would get tax breaks if they jointly replaced old boilers with poor 
thermal efficiency with start-of-the-art equipment with superior 
thermal efficiency. 
 
Tax preferential measures for energy conservation usually target 
efforts by a single company for a single facility. But the new 
strategy support joint efforts by multiple companies. 
 
The report also proposes measures to help install solar power 
generation systems, to improve distribution efficiencies by having 
container terminals operate around the clock and other steps. 
Further, the report unprecedentedly calls for large companies to 
raise wages, focusing on rising consumer prices and the falling 
purchasing power of households amid stagnant income growth. 
 
In terms of globalization, the report stresses the need not only to 
boost exports to resource-rich countries and emerging countries but 
even to attract overseas funds and to bringing back the overseas 
income of Japanese companies. 
 
The report proposes measures to introduce a fund tax system to 
facilitate foreign capital to invest in Japanese firms through funds 
set up in Japan. It also calls for expediting the signing of 
investment pacts to facilitate domestic companies to invest in risky 
resource-rich and emerging countries. Small businesses are also 
encouraged to expand overseas. 
 
The new strategy mainly focuses on tax and fiscal measures, so it 
has not fully stepped into regulatory reform in medical and other 
areas. Additional regulatory-reform measures are also necessary to 
buoy up the nation's economy, besides tax and fiscal measures. 
 
Keidanren Chairman stresses firm support for extending refueling 
mission 
 
In a press conference yesterday, Japan Business Federation (Nippon 
Keidanren) Chairman Fujio Mitarai said regarding the Maritime 
Self-Defense Force's ongoing refueling mission in the Indian Ocean: 
 
TOKYO 00002495  008 OF 009 
 
 
 
"I firmly support a plan to extend the mission. If the maritime 
operation is suspended, it may become impossible for Japan to obtain 
support for Japanese vessels' safe navigations from other countries. 
What is worse, a rift may occur in the Japan-U.S. alliance, the 
bedrock of Japan's diplomacy." 
 
Mitarai pointed out: "Japanese oil tankers and other vessels are 
continuing their voyages in the grip of an attack by pirates or 
terrorists." In connection with policy debate in the Liberal 
Democratic Party presidential election, he said: "I firmly back 
Japan's continued involvement in the war on terrorism." 
 
Asked about the presidential election campaign, Mitarai commented: 
"I would like the candidates to conduct active policy debate." He 
said that the focus will be on how to promote economic stimulus 
measures, a big-boned economic growth strategy, and reforming the 
tax, fiscal and social security systems in a package." He added: "I 
hope that the new government will continue to pursue the goal of 
returning the nation's primary balance to the black in fiscal 2011 
as a measure to reconstruct the nation's financial system." 
 
(6) TOP HEADLINES 
 
Asahi: 
70 PERCENT  of coral lost in past five years in Sekisei reef lagoon 
off Okinawa 
 
Mainichi: 
Official campaigning to begin today for LDP presidential election 
amid expectation of general election 
 
Yomiuri: 
40 PERCENT  of LDP lawmakers likely to vote for Aso in LDP 
presidential election 
 
Nikkei: 
Economic, fiscal policies major issues in LDP presidential election 
 
Sankei: 
National livelihood poll: 57 PERCENT  of families feeling financial 
pain 
 
Tokyo Shimbun: 
Tainted rice sold to 36 confectioners 
 
Akahata: 
JCP chairman delivers roadside speech in Shibuya 
 
(7) EDITORIALS 
 
Asahi: 
(1) Seven years since 9/11: Create new cooperation system 
 
Mainichi: 
(1) Pension records falsified by SIA officials 
(2) JR must make greater efforts for safety and public trust 
 
Yomiuri: 
(1) A waiver that shakes NPT to its core 
(2) Injection of public funds into two U.S. mortgage financing 
giants not enough 
 
TOKYO 00002495  009 OF 009 
 
 
 
Nikkei: 
(1) Tainted rice exposes low awareness of food safety 
(2) Can Japan Sumo Association make fresh start? 
 
Sankei: 
(1) Georgia agreement pleases only Russia 
(2) Sumo needs bold reform 
 
Tokyo Shimbun: 
(1) Falsified pension records require thorough investigation 
(2) Sale of tainted rice no accident 
 
Akahata: 
(1) Minimum-access rice-import system no longer working properly 
 
(8) Prime Minister's schedule, September 9 
 
NIKKEI (Page 2) (Full) 
September 10, 2008 
 
08:41 
Attended meeting of four cabinet ministers to discuss global 
warming. 
 
09:30 
Attended meeting of ministers related to pension-record issue. Met 
later with Finance Minister Ibuki. 
 
10:01 
Attended cabinet meeting. 
 
12:54 
Met with Chief Cabinet Secretary Machimura. 
 
14:47 
Met U.N. Association of Japan President Genshitsu Sen. 
 
17:00 
Attended the cabinet-hosted international consumer symposium held at 
Mita Kaigisho. 
 
17:29 
Met at Kantei with Deputy Chief Cabinet Secretary Futahashi. 
 
18:37 
Attended symposium hosted by the national council to establish 
consumers-centered administrative body held at Shinagawa Grand 
Central Tower. Chatted with Upper House member Masako Mori. 
 
19:37 
Attended funeral for the late writer Daikichi Terauchi at Zojoji 
Temple. 
 
19:54 
Attended "African Day Reception" at Roppongi Hills. 
 
20:21 
Returned to his official residence. 
 
ZUMWALT