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Viewing cable 08TOKYO2581, JAPANESE MORNING PRESS HIGHLIGHTS 09/19/08

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Reference ID Created Released Classification Origin
08TOKYO2581 2008-09-19 03:46 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6368
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2581/01 2630346
ZNR UUUUU ZZH
P 190346Z SEP 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7338
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 2282
RUEHFK/AMCONSUL FUKUOKA 9922
RUEHOK/AMCONSUL OSAKA KOBE 3663
RUEHNAG/AMCONSUL NAGOYA 8029
RUEHKSO/AMCONSUL SAPPORO 0498
RUEHBJ/AMEMBASSY BEIJING 5394
RUEHUL/AMEMBASSY SEOUL 1393
RUCNDT/USMISSION USUN NEW YORK 1694
UNCLAS SECTION 01 OF 10 TOKYO 002581 
 
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: JAPANESE MORNING PRESS HIGHLIGHTS 09/19/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Election politics: 
4) With 70 PERCENT  of local LDP chapters now backing him, Taro Aso 
is certain now to win the LDP presidential race  (Nikkei) 
5) Aso Cabinet to last only nine days, if he dissolves Diet as 
predicted, making it the shortest in postwar period  (Mainichi) 
6) Democratic Party of Japan (DPJ) wants toe-to-toe Aso vs. Ozawa 
challenge in a Tokyo election district  (Sankei) 
7) DPJ sending "assassin candidate" to take down former defense 
chief Kyuma in Nagasaki 2 district  (Sankei) 
8) DPJ and People's New Party heads to meet today, but some in the 
PNP have cold feet about a merger of the two parties  (Nikkei) 
9) Diet has shifted into an election mode, lawmakers readying to run 
in the Lower House race on Oct. 26  (Yomiuri) 
10) Lower House Speaker Yohei Kono gives his last press interview 
before retiring from politics  (Asahi) 
 
11) Massive U.S., Japanese, European currency swap in order to prop 
up dollar, alleviate global market tremors  (Asahi) 
 
12) Agricultural Ministry plans to temporarily halt minimum-access 
rice imports as means of stopping tainted rice from entering Japan's 
distribution network  (Asahi) 
 
13) USTR, METI object to China's requirement of foreign companies to 
reveal secret source codes on electronic products - a violation of 
intellectual property rights  (Yomiuri) 
 
14) Next prime minister will attend UNGA  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Yomiuri, Nikkei & Tokyo Shimbun: 
BOJ, jointly with U.S., Europe, to pump 180 billion dollars into 
global money markets to ease credit crunch 
 
Mainichi: 
Vice agriculture minister decides to resign, taking responsibility 
for rice scandal 
 
Sankei: 
Article by Yukio Okamoto: Don't run away from Afghanistan 
 
Akahata: 
Double responsibility for illegal rice sales lies with LDP farm 
policy 
 
2) EDITORIALS 
 
Asahi: 
(1) Take every possible measure to stabilize global financial 
markets 
(2) Tampered 69,000 pension records must be checked urgently 
 
Mainichi: 
 
TOKYO 00002581  002 OF 010 
 
 
(1) Financial crisis enters new phase 
(2) Promptly clarify online pension entries were tempered with by 
SIA and rescue victims 
 
Yomiuri: 
(1) Land price mini bubble beginning to burst 
(2) Though new Thai prime minister elected, political turmoil still 
continuing 
 
Nikkei: 
(1) Joint steps by Japan, U.S., Europe reflect expansion of 
financial crisis 
(2) Land prices dropping as money flows from overseas decline 
 
Sankei: 
(1) LDP presidential candidates expected to conduct heated debate to 
erase public distrust 
(2) Nationwide academic examination results should be publicized to 
improve children's academic abilities 
 
Tokyo Shimbun: 
(1) Farm Ministry must deal with tainted rice scandal with proper 
measures 
(2) Land price decline: Work out ways to resuscitate real estate 
investment 
 
Akahata: 
(1) Stop reforming day-care system 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 18 
 
NIKKEI (Page 2) (Full) 
September 19, 2008 
 
09:46 
Met Vice MEXT Minister Zeniya at the Kantei. 
 
11:51 
Met Chief Cabinet Secretary Machimura. 
 
13:05 
Met Deputy Chief Cabinet Secretary Futahashi. 
 
14:21 
Met Japan-ROK Friendship Association Central Committee Chairman Kim 
Su Han in the presence of Michio Ochi, the association's chief 
director. 
 
15:47 
Met China State Administration of Foreign Experts Affairs Director 
General Ji YunShi, Ambassador Cui Tiankai and others at the 
Keidanren Kaikan Hall at Otemachi, joined in by Keidanren Chairman 
Mitarai and METI Minister Nikai. 
 
16:05 
Attended a Japan-China business leaders' exchanges executive 
committee reception. 
 
16:57 
Met Cabinet Intelligence Director Mitani at the Kantei. 
 
TOKYO 00002581  003 OF 010 
 
 
 
17:55 
Met Machimura. 
 
18:16 
Returned to his official residence. 
 
4) Aso certain to win LDP race, having racked up 70 PERCENT  of 
local chapter vote 
 
NIKKEI (Page 1) (Abridged) 
September 19, 2008 
 
In the run-up to the ruling Liberal Democratic Party's presidential 
election, LDP Secretary General Taro Aso is now certain to win the 
race and become the successor to Prime Minister Yasuo Fukuda. Aso 
has now secured more than 60 PERCENT  of the votes allocated to the 
LDP's lawmakers in both houses of the Diet. In addition, he will 
also likely garner more than 70 PERCENT  of the votes from the LDP's 
local leaders. The LDP will hold a meeting of all its Diet members 
on Sept. 22 instead of holding a party convention to elect its new 
leader, where Aso will likely win more than half of their votes in 
the first ballot and is expected to be newly elected LDP president. 
 
In the LDP's presidential election, its lawmakers from the Diet's 
lower and upper chambers will cast their votes (386 as of Sept. 22) 
and its 47 prefectural federations across the nation will also cast 
their votes (141), totaling 527 votes. The LDP allocates three votes 
to each of its prefectural federations. Each LDP prefectural 
federation will hold a preliminary polling of party members and 
fraternity members to decide for which candidate it will cast its 
three votes. 
 
5) Diet dissolution possibly 9 days after cabinet formation: 
Shortest administration in postwar history 
 
MAINICHI (Page 3) (Full) 
September 19, 2008 
 
In considering how many days each newly inaugurated cabinet in the 
past was in office before the Diet was dissolved, the shortest was 
the first Hatoyama cabinet which lasted in 1954 for 45 days. This 
time, the Diet is expected to designate the prime minister on Sept. 
ΒΆ24. If the House of Representatives is dissolved on Oct. 3, nine 
days later, the shortest record will be broken. 
 
Against the backdrop of his popularity, Prime Minister Ichiro 
Hatoyama dissolved the House of Representatives for a general 
election, which was held in February 1955. His Democratic Party 
increased its seats from 124 to 185 and became the leading party. 
The second shortest was the first Mori cabinet that lasted 58 days. 
Prime Minister Yoshiro Mori, who took over after Prime Minister 
Keizo Obuchi passed away, dissolved the House of Representatives in 
June 2000 before the Kyushu-Okinawa summit. However, the ruling 
Liberal Democratic Party lost a substantial number of seats due to 
Mori's gaffes. Both cabinets were rather intended to manage an 
election from the start. LDP Secretary General Aso, who is now seen 
as the likely winner of the LDP's presidential election this time, 
is also expected to be the LDP's face for a general election. 
 
6) Notion being floated of "Aso vs. Ozawa" race in Tokyo district in 
Lower House election 
 
TOKYO 00002581  004 OF 010 
 
 
 
SANKEI (Page 5) (Abridged slightly) 
September 19, 2008 
 
Yoshihide Suga, deputy chairman of the Liberal Democratic Party 
(LDP) Election Strategy Council, delivered a speech yesterday in 
Yokohama. Referring in it to a rumor that Democratic Party of Japan 
(DPJ) President Ichiro Ozawa is now looking into the possibility of 
shifting to another electoral district (from his home constituency 
in Iwate Prefecture) when he runs in the next House of 
Representatives election, Suga said: "If Mr. Ozawa runs from Tokyo, 
we will have our new president contest with him in Tokyo. The 
Election Strategy Council is now considering it in a serious 
manner." All the more because Suga is a close aide to Secretary 
General Taro Aso, who is the strongest LDP presidential candidate, 
his remarks about a possible "Aso vs. Ozawa" contest will likely 
create a commotion. 
 
The largest opposition party revealed on Sept. 12 a list of its 
official candidates as the first batch for the Lower House election. 
The DPJ, however, forwent including Ozawa's name in the list as a 
candidate to run from the Iwate No. 4 constituency, from which he 
always has run. Secretary General Yukio Hatoyama, on a TV talk show 
on Sept. 14, said: "(Ozawa) will not run from Iwate." He implied the 
possibility of Ozawa running from the Tokyo No. 12 constituency, 
which is New Komeito leader Akihiro Ota's home constituency, saying: 
"It's one of the most likely options." 
 
On Sept. 15 Ozawa, however, tricked everyone by saying: "I have not 
made up my mind yet." If Ozawa runs from the Tokyo No. 12 electoral 
district, many conservative votes will go to him. As a result, Ota 
will inevitably face an uphill battle. 
 
Suga's remarks appear to be aimed at seeking to constrain the DPJ, 
which is now rocking the ruling coalition. However, the prevailing 
view in the LDP is that Suga must have received Aso's concurrence. A 
senior LDP member said: "The next Lower House election will become a 
decisive tattle between the LDP-New Komeito coalition and the DPJ" 
if both Aso and Ozawa run from the Tokyo No. 12 constituency. 
 
Chances are strong that should Aso run from the Tokyo No. 12 
constituency, Ota would be filed as a candidate for the proportional 
representation segment or the LDP would give him another electoral 
district and give him full support. If that happens, electoral 
cooperation between the LDP and its coalition partner New Komeito 
will be promoted in every constituency. An LDP source said: "Mr. 
Suga seems to have carefully calculated the various ripple 
effects." 
 
7) DPJ to file Fukuda as "assassin" candidate against Kyuma 
 
SANKEI (Page 5) (Full) 
September 19, 2008 
 
Ichiro Ozawa, president of the main opposition Democratic Party of 
Japan (DPJ), has continued to travel across the nation to gather 
candidates to file in the next House of Representatives election. 
 
Yesterday in Nagasaki City, Ozawa asked Eriko Fukuda, 27, a 
hepatitis C infected plaintiff, to run from the Nagasaki No. 2 
constituency as a candidate on the DPJ ticket and he received her 
consent. The Nagasaki No. 2 electoral district is the home 
 
TOKYO 00002581  005 OF 010 
 
 
constituency of former Defense Minister Fumio Kyuma, 67, who has 
close ties to Liberal Democratic Party (LDP) Secretary General Taro 
Aso. Ozawa appears to have filed Fukuda as an "assassin" candidate 
against Kyuma. 
 
Ozawa, who attended a press conference at which Fukuda announced her 
candidacy, stressed: 
 
"Drug-induced diseases are a symbolic problem caused by politics 
today. Ms. Fukuda must tell about her experience and background so 
that the public will understand the need for political change." 
 
Ozawa is expected to announce today that the DPJ will field Kazumi 
Ota, 27, an incumbent Lower House member, as its candidate for the 
Fukushima No. 2 constituency in the next general election. 
 
8) DPJ-PNP merger: Party head talks today; Coordination of views on 
what form merger should take likely to become difficult 
 
NIKKEI (Page 2) (Abridged slightly) 
September 19, 2008 
 
The Democratic Party of Japan (DPJ or Minshuto) at its executive 
board meeting on September 18 formally decided to move ahead with a 
merger with the People's New Party (PNP or Kokumin Shinto). 
President Ichiro Ozawa will meet with PNP President Tamisuke 
Watanuki today to formally propose a merger between the two parties 
and confer on the matter in concrete terms. Both parties want to 
reach a basic agreement by early next week. However, with some PNP 
members still remaining cautious about the proposal, coordination of 
views on the merger plan could encounter complications, if the DPJ 
insists on the form of the merger and keeping their party name. 
 
Secretary General Yukio Hatoyama at the DPJ executive board meeting 
asked participants: "We would like to make a merger proposal. Please 
leave talks with the PNP to the three executives." Vice President 
Katsuya Okada asked whether the party name will change. Hatoyama 
replied, "Basically, no." According to one participant, Hatoyama 
hinted that the planned merger will be a consolidation takeover with 
the PNP disbanding itself and being merged into the DPJ. 
 
Deputy President Naoto Kan after the meeting proposed holding a 
party head talks on the 19th to Deputy PNP President Shizuka Kamei 
on the phone. Kamei agreed. The DPJ will hold a general assembly of 
its lawmakers from both Diet chambers after the party head talks and 
discuss how to deal with the issue. 
 
Ozawa, who is taking the initiative on the issue, intends to make 
sure that the DPJ garners anti-postal privatization votes without 
fail. He appears to be motivated by the desire to expand the party 
to become the largest single party (in the Lower House). The PNP 
wants to avoid being shunted into the background. Kamei during a 
press conference stressed, "We must accept the proposal, even if 
there are some drawbacks in it." Watanuki hinted at his stance of 
accepting the merger proposal, if party members agree. He said, "I 
would like to consolidate the opinions of party members." 
 
9) Nagatacho moves into Lower House election mode 
 
YOMIURI (Page 4) (Excerpts) 
September 19, 2008 
 
 
TOKYO 00002581  006 OF 010 
 
 
The ruling and opposition parties have been actively readying 
themselves for an Oct. 26 Lower House election. Confrontation 
between the two camps is also intensifying over the fiscal 2008 
supplementary budget bill to be submitted to the next extraordinary 
Diet session that will open on Sept. 24. The capitol district of 
Nagatacho has fully shifted to a Lower House election mode. 
 
In a meeting of the LDP's Yamasaki faction yesterday, former LDP 
Vice President Taku Yamasaki said: "Let's make thorough preparations 
so that all of us can win seats in the upcoming election." 
 
The ruling bloc's strategy is to win the Lower House election by 
taking advantage of the momentum of the LDP presidential election. 
But some in the ruling bloc fear an early election, in part due to 
economic uncertainty in the country resulting from the collapse of a 
major U.S. securities house, Lehman Brothers. In fact, some 
lawmakers at the Yamasaki faction meeting were vocally pessimistic, 
one saying: "There are no winning factors. Dissolving the Lower 
House would be suicidal." 
 
Every lawmaker has begun making preparations for the next Lower 
House election, which seems certain to take place on Oct. 26. An LDP 
Tsushima faction executive said: "No one can stop this trend. Logic 
doesn't work in this world." 
 
LDP Election Strategy Council Chairman Makoto Koga yesterday met 
with Fukushima prefectural chapter executives at the party 
headquarters and told them that the party would no longer use the 
Costa Rica method in Fukushima constituencies No. 1 and No. 5. The 
LDP plans to field Yoshitami Kameoka, who won the previous election, 
in Constituency No. 1. The party also intends to undertake 
coordination for fielding Goji Sakamoto, who was on the proportional 
representation list in the previous race, in Constituency No. 5 and 
transferring Masayoshi Yoshino, who won Constituency No. 5, to 
Constituency No. 3. 
 
10) Yohei Kono holds retirement press conference 
 
ASAHI (Page 4) (Abridged slightly) 
September 19, 2008 
 
Lower House Speaker Yohei Kono, 71, held a press conference last 
night at a hotel in Hakone Town, Kanagawa Prefecture. In the 
meeting, Kono announced that he would retire from politics and not 
run in the next Lower House election. Kono, dubbed the last "dovish 
heavyweight" in the Liberal Democratic Party, made this request to 
junior lawmakers: "Although Hiroshima was a victim (of the atomic 
bombings), I want (young politicians) to also study the fact that 
Japan was an aggressor. I would like your to think earnestly about 
Japan's diplomacy toward South Korea and China, and when you face 
those countries, to see them with a correct attitude." 
 
In 1993, Kono issued a statement as chief cabinet secretary under 
the then Miyazawa cabinet expressing an apology and remorse by 
officially admitting that the military had forced the so-called 
"comfort women" into sexual slavery (during WWII). Looking back at 
the event, Kono said, "It was an extremely vital statement." 
Referring to moves to deny the statement that resulted from then 
Prime Minister Shinzo Abe's comment, "It is a fact that there was no 
evidence of the Japanese military forcing (comfort women) into 
(sexual slavery)," Kono said: "The denial of the statement created 
trouble for Japan in the United States, and it was taken up in Asia 
 
TOKYO 00002581  007 OF 010 
 
 
and the Netherlands, as well.  It was regrettable that doubts were 
raised about Japanese politics each time." 
 
As the reason for his retirement, Kono cited the fact that he had 
chaired the G-8 Lower House Speakers' summit held earlier this month 
in Hiroshima. He said: "It was my long-cherished dream. After 
hosting the event, I felt a great sense of accomplishment. My health 
is not necessarily in a perfect condition, either." In 2002, Kono 
received part of the liver of his son, Taro Kono, also a Lower House 
lawmaker, to treat liver cirrhosis because his hepatitis C had 
worsened. Kono also said: "I feel that I was given a new life. I 
cannot waste this life. With that in mind, I have served as Lower 
House speaker over the last six years and have done my very best in 
performing my job." 
 
In winding up his press conference, he touched on the divided Diet 
and emphatically said: "Japan must not lose its international 
credibility because of the divided Diet." 
 
11) Wise decision by Japan, U.S., Europe to jointly pump dollars 
into global money markets 
 
ASAHI (Page 2) (Excerpts) 
September 19, 2008 
 
The central banks of Japan, the U.S., and Europe have decided to 
pump dollars into global money markets in a joint effort to ease the 
credit crunch triggered by the upheaval on Wall Street. They made 
the decision, seeing desperate efforts by banks across the world to 
secure dollars amid growing fears of a global financial crisis due 
to major U.S. financial institutions having reached a deadlock. 
Views are divided on whether the new mechanism would be able to end 
the ongoing turmoil. 
 
Japan now lender 
 
The U.S. Federal Reserve Board (FRB) asked the Japan of Japan (BOJ) 
on Sept. 17 to join forces with other central banks to boost 
supplies of dollars in global financial markets. The request came 
just after a meeting to determine monetary policies was over. 
 
On the European market, which opened on the evening of Sept. 17, 
Japan time, dollar trading was quite thin, given the increasing 
financial instability in the U.S.. A sharp rise in interest rates 
has made some financial institutions unable to procure necessary 
dollars. Alarmed at the situation, the European Central Bank (ECB) 
urgently worked on the FRB to provide more dollar funds. 
 
A change has also been appearing on the Japanese short-term money 
market. Foreign financial institutions that remain unable to procure 
dollars in the U.S. and Europe have aggressively bought yen and 
changed the yen into dollars since the summer of last year. A senior 
BOJ officer said: "Japanese financial institutions are now valuable 
capital suppliers." 
 
The demise of Lehman Brothers has multiplied yen-dollar swap deals. 
Foreign financial institutions have begun to procure yen funds on 
the Tokyo market despite high interest rates. Even Japanese 
financial institutions now find it difficult to procure short-term 
funds. 
 
The BOJ has started open-market operations to specially provide huge 
 
TOKYO 00002581  008 OF 010 
 
 
funds since Sept. 16. Funds offered during the three days total 8 
trillion yen, the largest scale ever since the money supply was 
eased in March 2006. Despite this effort, the average short-term 
interest rate is 0.70 PERCENT , higher than the target rate of 0.5 
PERCENT  set by the BOJ in implementing monetary policies. 
 
BOJ Governor Masaaki Shirakawa decided to take joint steps with the 
central banks of the U.S. and Europe, saying: "If it becomes 
impossible to procure capital in dollar markets, a further burden 
will be imposed on yen markets." BOJ members hurriedly drew up an 
accord with the FRB and announced it in an extraordinary monetary 
policymaking meeting that started at 15:00 yesterday. 
 
12) Imports of minimum-access rice to be halted for time being as 
measure to address incident involving pesticide-contaminated rice 
 
ASAHI (Page 7) (Excerpts) 
September 19, 2008 
 
Following the revelation that rice contaminated with such substances 
as pesticide has been used for human consumption, the Ministry of 
Agriculture, Forestry and Fisheries (MAFF) has decided to suspend 
for the time being imports of minimum-access (MA) rice, which had 
become a supply source for the tainted rice. This is because the 
government has yet to coordinate views on what measures to take to 
prevent a recurrence. The decision could affect Japan being able to 
meet its obligation to import a certain amount of MA rice. 
 
Vice Agricultural Minister Shirasu revealed the decision at a press 
conference on September 18. Public bidding for 2.5 tons of 
minimum-access rice targeting trading houses, which handles imports 
of such rice, was planned for the 17th. However, the bidding has 
been postponed. Whether such bidding will be resumed has yet to be 
decided. 
 
MAFF Minister Ota on the 16th came up with a policy of returning or 
discarding tainted rice that has been determined in inspection 
carried out at ports as problematical in accordance with the Food 
Hygiene Law. This is a measure to prevent such rice from being 
allowed into the country. Japan has thus far imported tainted rice 
not for human consumption but for industrial use, such as for making 
glue. This rice was misused this time. 
 
However, specifics, such as who should shoulder the cost of 
returning or discarding such rice, have yet to be worked out. MAFF 
said that imports would be suspended until such concrete measures 
are adopted. 
 
How to address the issue of the cost of returning polluted rice 
topped the agenda of a meeting of the Upper House Agriculture, 
Forestry and Fisheries Committee held on the 18th. MAFF General Food 
Policy Bureau Director General Machida said, "Principally, importers 
would have to bear the cost. However, in order to prevent such, we 
will work on exporting countries to, for instance, strengthen 
hygienic efforts." 
 
Trading companies are increasingly becoming dismayed at the 
situation. An executive of a certain leading trading house said, "If 
we are forced to pick up the bill, no companies would take part in 
public bidding for minimum-access rice." There is no guarantee that 
exporting countries will agree to shoulder the cost without putting 
up resistance. 
 
TOKYO 00002581  009 OF 010 
 
 
 
13) China: Open IT product source code 
 
YOMIURI (Page 1) (Abridged) 
September 19, 2008 
 
The Chinese government has plans to introduce a new requirement in 
May 2009, under which foreign businesses will be ordered to disclose 
information to Chinese authorities about the core of digital 
appliances and other products, sources revealed yesterday. The 
subject products could include IC cards, digital copying machines, 
and flat-screen television. If foreign firms refuse to disclose the 
information, they would be banned from exporting any of their 
products to China and also prohibited from manufacturing and 
marketing their products in China. If that is the case, corporate 
intellectual properties may flow to Chinese firms. In addition, 
cryptographic technologies used for digital equipment would leak out 
to China. There are also such concerns for security reasons. The 
Ministry of Economy, Trade and Industry and the Office of the U.S. 
Trade Representative will strongly call for China to retract the 
planned system. This could develop into a serious trade issue. 
 
China says the newly planned protocol is "for the mandatory 
authorization of IT security products." Regarding the subject 
products, the new system will mandate foreign firms to open source 
code that is a design of software controlling digital appliances and 
other products. These products must pass a test based on their 
disclosed source code and must also pass a certification authority's 
inspection, or they cannot be marketed in China. The new system is 
internationally unprecedented. 
 
The new system is likely to target encrypted products, such as 
FeliCa, the contactless IC card technology developed by Sony 
Corporation. Among other likely targets are digital copying machines 
and computer servers. 
 
According to the Chinese government's account, the purpose of 
mandating foreign companies to open the source code of their 
products is to block computer viruses, which target software 
defects, and is also to prevent hackers. 
 
But there is no denying that disclosed information could leak out to 
Chinese firms through the Chinese government. Moreover, it is also 
easy to find out Japanese-made digital equipment's coding 
information. One says it may be exploited by China's espionage, for 
example. 
 
14) Machimura: Next prime minister will attend UNGA 
 
ASAHI (Page 4) (Full) 
September 19, 2008 
 
Chief Cabinet Secretary Nobutaka Machimura infirmed yesterday the 
Rules and Administration Committees of the two Diet chambers that 
the next prime minister to be elected on Sept. 24 would visit New 
York on Sept. 25-27 to attend the UN General Assembly. The Japanese 
prime minister skipped UNGA for the two consecutive years since then 
Prime Minister Junichiro Koizumi addressed UNGA in 2005. 
 
There is criticism in the Democratic Party of Japan that it is 
strange for the next prime minister to address the UN before 
delivering a policy speech before Japan's Diet. Machimura, touching 
 
TOKYO 00002581  010 OF 010 
 
 
on it in a press conference held later on, said: "Japan hosted this 
year's G-8 summit. DPJ President (Ozawa) has repeatedly indicated 
that the United Nations is important. I cannot understand why the 
DPJ is opposing it despite that." 
 
SCHIEFFER