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UNCLAS SECTION 01 OF 09 TOKYO 002601 
 
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 09/22/08 
 
TOKYO 00002601  001.2 OF 009 
 
 
Index: 
 
Defense and security affairs: 
1) No prospects in sight for Japan extending its MSDF oil-refueling 
mission in the Indian Ocean  (Yomiuri) 
2) Ruling parties to attack the DPJ in the general election campaign 
for its blocking of the MSDF refueling issue  (Asahi) 
3) No prospects in sight for Japan to send peacekeeping troops to 
Sudan  (Asahi) 
 
LDP election season: 
4) Taro Aso to be elected LDP president today; Oshima reportedly 
picked as his chief cabinet secretary  (Asahi) 
5) LDP secretary general's post under Aso administration likely to 
be awarded to Hosoda, former chief cabinet secretary  (Sankei) 
6) What was Prime Minister Fukuda's real intention behind his 
resignation?  (Tokyo Shimbun) 
 
DPJ election fever: 
7) Ichiro Ozawa reelected president of the Democratic Party of 
Japan, promises three-step implementation of his campaign promises 
(Asahi) 
8) Foreign and security affairs get only slight mention in the 
campaign material of the DPJ  (Mainichi) 
9) DPJ wants early deliberation and Diet action on the supplementary 
budget bill  (Tokyo Shimbun) 
 
U.S. tackles financial crisis: 
10) Secretary Paulsen urges Japan, Europe to cooperate in 
non-performing loan buy ups under Treasury-Fed rescue scheme 
(Nikkei) 
11) State Minister for Financial Services Motegi welcomes swift U.S. 
response to deal with financial crisis  (Asahi) 
12) Financial Services Agency says not asked by U.S. government yet 
to buy up some of the U.S.' bad assets  (Nikkei) 
 
Articles: 
 
1) No prospects for continuing MSDF refueling mission 
 
YOMIURI (Page 4) (Abridged) 
September 20, 2008 
 
The government made a cabinet decision yesterday on a bill amending 
the new Antiterrorism Special Measures Law to extend the Maritime 
Self-Defense Force's current refueling activities in the Indian 
Ocean for another year. However, the bill will likely be scrapped in 
this fall's extraordinary Diet session when the House of 
Representatives is dissolved. As it stands, there are no prospects 
for continuing the MSDF's refueling mission. The government is now 
making a strong appeal to the public on the necessity of continuing 
the MSDF's refueling activities in the Indian Ocean, maintaining 
that Japan's withdrawal from activities backing up multinational 
naval forces operating at sea to block terrorists from Afghanistan 
and other countries may adversely affect Japan's place in the 
international community and its alliance with the United States. 
 
"Japan will play a responsible role, and it's important to secure 
sea-lanes. This will not change under any political situation." With 
this, Defense Minister Hayashi stressed his view to the press 
yesterday. 
 
 
TOKYO 00002601  002.2 OF 009 
 
 
In June, Japan sent a fact-finding team to Afghanistan in order for 
the government to explore what Japan can do in its personnel 
contributions to that country. However, the government deemed it 
difficult to pass necessary legislation since the Diet is currently 
divided. In the end, the government gave up on its dispatch plan. 
Japan's aid through its official development assistance (ODA) is 
also less than that announced by the United States (approximately 32 
billion dollars) and of Britain (approximately 3.3 billion dollars). 
Japan is on a par with Canada (about 1.9 billion dollars). 
Meanwhile, the Air Self-Defense Force, which has been tasked with 
airlift assistance activities in Iraq, will be recalled within the 
year. The MSDF's refueling mission in the Indian Ocean is therefore 
Japan's most visible contribution in the war on terror. 
 
There are also some people who are playing up the MSDF's activities 
in the Indian Ocean while noting that the presence of multinational 
naval forces in the Indian Ocean is helpful in securing oil 
shipments from the Middle East to Japan. Liberal Democratic Party 
Secretary General Aso, now the leading candidate in the LDP's race 
for its presidency, has proposed having MSDF vessels escort Japanese 
tankers in the Indian Ocean. 
 
The MSDF refueled foreign naval vessels from a total of 11 countries 
with approximately 490,000 kiloliters from December 2001 through the 
end of August this year. The MSDF's fuel supply to U.S. naval 
vessels once came to about 40,000 kiloliters per month. In November 
last year, however, the law for the MSDF's refueling mission in the 
Indian Ocean ended due to opposition from the Democratic Party of 
Japan (Minshuto). In February this year, the MSDF resumed its 
refueling activities there. Since then in the seven months through 
the end of August, the MSDF's fuel supply to U.S. vessels was down 
to a total of about 800 kiloliters. 
 
On Sept. 8, former U.S. Deputy Assistant Secretary of Defense Kurt 
Campbell and former National Security Council Senior Director for 
Asian Affairs Michael Green met with Administrative Vice Foreign 
Minister Mitoji Yabunaka at the Foreign Ministry. In that meeting, 
they told Yabunaka that Afghanistan will be important for the next 
U.S. administration, adding that Japan will be in trouble if it does 
nothing. 
 
Campbell will reportedly have a lot of clout on the new U.S. 
administration's policy toward Japan if the Democratic Party's 
candidate wins the U.S. presidential election, and Green is also 
expected to be influential if the Republican Party's candidate wins. 
The future course of Japan's refueling activities is likely to 
affect the Japan-U.S. alliance. 
 
2) Ruling coalition in general election campaign to attack DPJ for 
blocking MSDF refueling 
 
ASAHI (Page 4) (Abridged) 
September 20, 2008 
 
The government made a cabinet decision yesterday adopting 
legislation amending the Antiterrorism Special Measures Law to 
extend the Maritime Self-Defense Force's current refueling 
activities in the Indian Ocean for another year. The decision shows 
that Prime Minister Fukuda wants to pave the way for the bill before 
leaving office. However, the legislation cannot be expected to clear 
the Diet since the Lower House will likely be dissolved soon for a 
general election. The ruling coalition wants to take the offensive 
 
TOKYO 00002601  003 OF 009 
 
 
against the leading opposition Democratic Party of Japan (Minshuto) 
by focusing on the issue of continuing the MSDF's refueling mission 
in the election campaign. 
 
All the five candidates running in the ruling Liberal Democratic 
Party's presidential election are referring to the necessity of 
continuing the MSDF's refueling activities. LDP Secretary General 
Taro Aso, now leading the other candidates, has also declared that 
it is inconceivable that only Japan will pull out. 
 
The New Komeito, which was reluctant to pass the MSDF extension bill 
at this fall's extraordinary Diet session, has also apparently 
changed its attitude since Fukuda's announcement of his 
resignation. 
 
"We should seek the people's judgment on what role Japan should 
fulfill against terrorism," New Komeito Secretary General Kazuo 
Kitagawa said in a press conference on Sept. 18, indicating that the 
MSDF bill should be a campaign issue in the general election. This 
is not only because the ruling coalition wants to impress the public 
with an image of "the DPJ as a party reluctant to fight terrorism." 
If the MSDF's refueling mission is kept before the public eye, the 
ruling coalition, should it remain in office with a majority of the 
seats in the House of Representatives after the election, can press 
the DPJ to take a flexible response on the strength of the public 
having reached a consensus. 
 
However, the DPJ has proposed discontinuing the MSDF's refueling 
activities, while laying emphasis on its standpoint of sending 
personnel to Afghanistan to assist with its reconstruction. DPJ 
President Ozawa has indicated his intention to send the Self-Defense 
Forces to Afghanistan after taking office. However, the security 
situation in Afghanistan has been deteriorating. As it stands, it is 
difficult to expand Japan's civilian assistance in Afghanistan as 
well as send SDF troops to that country. 
 
3) No prospects for PKO participation in Sudan 
 
ASAHI (Page 4) (Full) 
September 20, 2008 
 
Prime Minister Fukuda can no longer translate into action his avowed 
plan to dispatch the Self-Defense Forces to Sudan for United Nations 
peacekeeping operations in that country's southern region. 
Government officials are preparing an implementing plan so the 
government can make a cabinet decision on it by early October. 
However, the PKO plan is not feasible since the Diet will likely be 
dissolved. 
 
When Fukuda met with U.N. Secretary General Ban Ki Moon in late 
June, he told Ban that Japan would send SDF personnel to Sudan. The 
government deemed it difficult to send SDF troops to Afghanistan for 
assistance. Under such a situation, the government sent a 
fact-finding survey team to Sudan in late July for Japan's role in 
international peace cooperation. Although the government cannot move 
on the implementing plan under Fukuda, it is still coordinating to 
send two SDF officers to the headquarters of the United Nations 
Mission in Sudan (UNMIS) for database construction and supply 
management. 
 
4) Aso expected to become LDP president today; Oshima may become new 
chief cabinet secretary 
 
TOKYO 00002601  004 OF 009 
 
 
 
ASAHI (Page 1) (Excerpts) 
September 22, 2008 
 
Liberal Democratic Party Secretary General Taro Aso is expected to 
become the 23rd LDP president after winning a majority of votes in 
the first ballot in the LDP presidential election today. Aso intends 
to determine a new lineup of the four top LDP executives later 
today. Policy Research Council Chairman Kosuke Hori, General Council 
Chairman Takashi Sasagawa, and Election Strategy Council Chairman 
Makoto Koga are likely to stay on in their respective posts. Aso is 
expected to be named as the next prime minister in an extraordinary 
Diet session to be convened on Sept. 24. Final coordination is 
underway to appoint Diet Affairs Committee Chairman Tadamori Oshima 
as chief cabinet secretary. 
 
Aso is expected to reappoint most of the LDP executives because he 
thinks it is advisable to maintain the current system, including 
election chief Koga, for the next general election, which is 
expected soon. Senior Deputy Secretary-General Hiroyuki Hosoda is 
being mentioned as secretary general to replace Aso. Oshima, who may 
become the new chief cabinet secretary, is a member of the Koumura 
faction. Oshima has faithfully backed Aso in past LDP presidential 
races. Aso apparently highly values Oshima's skill at dealing with 
the opposition parties in the divided Diet. 
 
On an NHK television program yesterday, Aso indicated that he would 
draw on the entire party to form his cabinet and the party executive 
lineup with the next general election in mind, saying: "I think the 
next election will be fought under the lineup of the next cabinet. 
Forming a broad-based cabinet is important." 
 
5) Aso to be elected as new LDP president; Sonoda likely to be 
picked secretary general 
 
SANKEI (Page 1) (Full) 
September 22, 2008 
 
The ruling Liberal Democratic Party (LDP) presidential election to 
choose a successor to Prime Minister Yasuo Fukuda will take place 
today at party headquarters in a general meeting of its lawmakers 
from the two chambers of the Diet. It is now certain that Secretary 
General Taro Aso, 68, will be elected as the 23rd LDP president in 
the first round of voting, since he has garnered 60 PERCENT  of the 
386 Diet member votes and nearly 90 of the 141 votes allocated to 
the 47 prefectural chapters. Aso has decided to appoint Hiroyuki 
Hosoda, currently his deputy, as the new party secretary general. 
 
Aso plans to retain Election Strategy Council Chairman Makoto Koga, 
Policy Research Council Chairman Kosuke Hori, General Council 
Chairman Takashi Sasagawa, and Diet Affairs Committee Chairman 
Tadamori Oshima, in their respective posts. It is regarded as more 
likely that former policy chief Nobuteru Ishihara will be picked 
deputy secretary general. The expectation is that former Prime 
Minister Yoshiro Mori will serve as special advisor. An idea is also 
being floated that multiple faction heads will be picked to assist 
the secretary general. With an eye on an early Lower House 
dissolution and general election, Aso gives top priority to building 
a unanimous party arrangement by minimizing the shakeup of key party 
posts. 
 
Aso will inaugurate the new party leadership soon after the general 
 
TOKYO 00002601  005 OF 009 
 
 
meeting. He will meet tomorrow with New Komeito leader Akihiro Ota 
to confirm the continuation of the coalition between their parties. 
On Sept. 24, when the extraordinary Diet session is convened, the 
Diet vote on the prime minister will take place in both Diet 
chambers and the 92nd prime minister will be named. Aso is expected 
to launch his cabinet on Sept. 24. He will visit the United States 
on Sept. 25. On Sept. 29 he will deliver a policy speech and each 
party's representative interpellations will be held on Oct. 1-3 in 
both chambers of the Diet. 
 
Aso intends to dissolve the Lower House if he fails to negotiate 
with the opposition camp on the supplementary budget. Chances are 
high that the Lower House will be dissolved on Oct. 3 at the 
earliest and that the official campaign will kick off on Oct. 14 for 
an Oct. 26 general election. 
 
Rank and file LDP members in 32 prefectural chapters (96votes) cast 
their vote as of Sept. 21. Aso has garnered 90 votes -- three votes 
from 28 prefectures and two votes from Nara, Shimane and Tokushima 
prefectures. He appears to have obtained more than 230 votes from 
the Diet members. 
 
6) Reporter's notebook: Was prime minister's sudden resignation an 
act of stupidity or a bold decision? 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 22, 2008 
 
Taro Aso today will be elected as the 23rd president of the ruling 
Liberal Democratic Party (LDP), succeeding Prime Minister Yasuo 
Fukuda, who announced his resignation on Sept. 1. 
 
Many observers believe that Fukuda suddenly decided to abandon his 
administration in despair after a run-in with the New Komeito, the 
LDP's junior coalition partner, as well as due to the gridlock in 
the Diet with the Democratic Party of Japan (DPJ), the largest 
opposition party. Others, however, think that it was a calculated 
move by Fukuda. 
 
On Aug. 22, DPJ President Ichiro Ozawa already was reassured 
reelection for a third term. On Aug. 29, the Fukuda administration 
drafted a package of economic stimulus measures. Fukuda had planned 
to decide in a cabinet meeting on Sept. 2 to convene the next 
extraordinary Diet session on Sept. 12. 
 
Many LDP lawmakers believe that Fukuda had his own plan, namely, 
that the LDP would be able to win the next House of Representatives 
election by playing up the economic stimulus package and enjoying a 
boost in popularity under a new prime minister and cabinet. 
Moreover, if the opening of the extra session was delayed, Fukuda 
felt dissolution of the Lower House during the session could be 
avoided. And finally, if the LDP leadership race featured several 
contending candidates, his party would be able to attack the DPJ as 
having a closed nature (for reelecting Ozawa without a rival 
candidate). 
 
In fact, the LDP's support rates increased after Fukuda's 
announcement of his resignation. The DPJ then felt strongly that it 
might be shunted into the background by the LDP. Some LDP members 
even said that Fukuda's decision to resign saved their party. 
 
Although the LDP presidential race at first appeared to have 
 
TOKYO 00002601  006 OF 009 
 
 
gathered momentum, it suffered a setback after Aso's massive lead in 
the race was learned. The DPJ is now strongly criticizing the LDP 
for creating a political vacuum amid the growing financial crisis 
and the tainted rice problem. 
 
Whether Fukuda's resignation announcement was a stupid or wise 
decision will be decided by the voters in the general election that 
is still looming ahead. 
 
7) Ozawa, winning third term as DPJ president, says party will 
implement campaign pledges in three stages 
 
ASAHI (Top play) (Excerpts) 
September 22, 2008 
 
The major opposition Democratic Party of Japan held a special party 
convention at a Tokyo hotel yesterday and formally elected Ichiro 
Ozawa as party president unopposed, giving him a third two-year 
term. Ozawa then delivered an acceptance speech defined as his 
"policy speech" in which he explained that the party would 
dramatically change its budget for financing its policies. He also 
announced that the procedures for implementing his party's policies 
will be shown in three stages in its manifesto (set of campaign 
pledges) to be compiled later this month. 
 
Ozawa's term will run through the end of September 2010. Giving top 
priority to measures for the next general election, Ozawa indicated 
that he would keep all the party executives in principle. At the 
same time, he said regarding the shadow cabinet: "National interest 
in and expectations for a DPJ administration are growing. I want to 
present the public at the earliest possible time with a lineup of 
major members who will be the core of the next cabinet and to face 
the next general election with it." 
 
He also expressed his determination to take over the reins of 
government, saying: "As a politician looking to lead state affairs, 
(the next general election) will be the last big event both mentally 
and physically. A politician must have firm resolve to undertake 
state affairs." He thus revealed his determination to become prime 
minister. Regarding the next general election, Ozawa said: "Staking 
my political life, I will giVQQdRuilding a 
Japanese-style safety net. He said: "We will drastically reform the 
bureaucracy-led governing structure that has existed since the Meiji 
era. That reform will provide us with sufficient financial sources 
to create a safety net." 
 
Discussing financial resources, Ozawa said: "How taxes are used must 
be fundamentally revised, and the fiscal structure must be changed 
drastically. Based on the idea of drastically changing the budgets 
and of compiling budgets by the hand of the general public, we will 
gradually shift 22 trillion yen, or about 10 PERCENT  of the 212 
trillion yen of the government's spending in the combined general 
and special account budgets, for gradually implementing major 
policies." 
 
Ozawa explained that the party's manifesto will spell out the 
implementation procedures in three stages: (1) those that will be 
 
TOKYO 00002601  007 OF 009 
 
 
implemented in the fiscal 2009 budget; (2) related bills that will 
be enacted in the next regular Diet session to be implemented within 
two years; and (3) those that will be implemented before the term 
(of the Lower House lawmakers) ends four years from now. 
 
8) DPJ vision for its administration 
 
MAINICHI (Page 3) (Excerpts) 
September 22, 2008 
 
By Tanaka, Nobuchi, Koyama 
 
Democratic Party of Japan President Ichiro Ozawa, after winning his 
third term, delivered a policy speech yesterday in which he set 
forth the party's nine-item vision for his administration. He also 
expressed his determination to take over the reins of government, 
describing the next Lower House election as a showdown and his last 
chance. In his speech, Ozawa highlighted the need to create a 
Japanese-style safety net, while promising to change the 
bureaucracy-led system of governance. At the same time, where he 
would squeeze out the 22 trillion yen necessary for his diplomatic 
and securities polities remained unclear. The party needs to spell 
out specifics to implement its policies. 
 
Only international contributions mentioned 
 
Foreign and security policies 
 
In his policy speech, Ozawa hardly touched on foreign and security 
policies. He simply said: "Japan will make efforts to enhance peace 
in the international community." Foreign policy also came in last in 
the DPJ's basic policy plan, presented on Sept. 8. In the basic 
policy plan, foreign policy is discussed abstractly: "The party will 
establish firm Japan-U.S. relations based on equality and relations 
of trust with other Asian countries. (Japan) will actively join UN 
peace-building activities and promote UN reform." 
 
If the DPJ takes the reins of government before the end of the year, 
the party would be pressed immediately to deal with the question of 
extending the New Antiterrorism Special Measures Law, scheduled to 
expire in January 2009. Although the party is still committed to 
oppose it, the matter is expected to ignite fiercer controversy than 
last year in view of the expected impact on Japan-U.S. relations. 
 
Based on his UN-centered thinking, Ozawa would rule out the use of 
force since it is not allowed under the government's interpretation 
of the Constitution -- unless there were an UN resolution. Last 
October, Ozawa even said: "Once we take the reins of government, I 
would like to realize Japan's participation in the International 
Security Assistance Force (ISAF) in Afghanistan." But his view 
opposing the refueling mission (in the Indian Ocean) while approving 
the use of force (in Afghanistan) was criticized as absurd. 
 
As a counter proposal, Ozawa called for assistance to the civilian 
sector, but that option has become difficult, given the 
deteriorating security situation in the country. Vice President 
Seiji Maehara has called for making changes to the counter proposal: 
"A political decision must not be made to provide assistance to the 
civilian sector." 
 
Regarding assistance for Afghanistan, Ozawa said in a press 
conference on Sept. 1: "How should world peace be maintained? There 
 
TOKYO 00002601  008 OF 009 
 
 
shouldn't be any discrepancy with our basic vision." But discussion 
still continues in the party. 
 
9) DPJ will not delay deliberations on supplementary budget: DPJ 
deputy head Kan 
 
TOKYO SHIMBUN (Page 1) (Full) 
September 22, 2008 
 
When asked on an NHK talk show yesterday how his party would respond 
to Liberal Democratic Party (LDP) Secretary General Taro Aso's plan 
to pass the supplementary budget through the Diet as quickly as 
possible, Naoto Kan, deputy president of the main opposition 
Democratic Party of Japan (DPJ), stated: "I can promise that our 
party will not to use the budget as a tool to delay (deliberations) 
and conclude the deliberations for a certain period of time." 
 
In order to secure enough time to pursue the government and ruling 
coalition prior to the next Lower House election, Kan took a 
positive stance for cooperation with the ruling camp in adopting the 
budget at an early date, not delaying deliberations. 
 
10) Bad loan purchases: U.S. treasury secretary presents measure on 
financial crisis to Congress: Will also seek cooperation from Japan, 
Europe to set up similar system 
 
NIKKEI (Page 1) (Full) 
September 22, 2008 
 
The U.S. Department of the Treasury on September 20 announced that 
it presented a bill proposing purchases of bad mortgage-related 
assets with public money. The planned purchasing amount is up to 700 
billion dollars or approximately 75 trillion yen. This will serve as 
a pillar in the government effort to stabilize the financial system. 
Treasury Secretary Paulson on the 21st revealed a policy of calling 
on Japan and European countries to set up a similar system. The U.S. 
government aims at getting the bill done before the end of the week. 
Calls for expanding assistance to strapped borrowers have also 
surfaced in Congress. 
 
The Treasury Department has amended the original bill, which limited 
banks eligible for the government's bad loan purchasing plan to 
domestic institutions. The amended bill has extended the targets, 
including banks that are operating in the U.S. to a considerable 
degree. Paulson on an ABC TV program explained, "Foreign banks 
operating in the U.S. will have an impact on U.S. citizens similar 
to that of domestic banks." 
 
According to the Treasury Department's proposal, the purchasing 
period will be two years. The target items include housing loans and 
related securitized products. Asset purchasing prices will be 
determined based not on book value but on public bidding. Bad loans 
will be purchased from banks in order of lowest price offerers 
regarding designated assets. Seven hundred billion dollars is 
equivalent to 5 PERCENT  of the U.S. GDP. 
 
Congress is likely to approve the plan, giving consideration to the 
impact of the financial crisis gripping the U.S. 
 
11) State Minister for Financial Policy Motegi welcomes U.S. 
financial bailout 
 
 
TOKYO 00002601  009 OF 009 
 
 
ASAHI (Page 5) (Full) 
September 22, 2008 
 
Referring to the U.S. government's measures to head off the 
financial crisis that nation is facing, State Minister for Financial 
Policy Motegi during a TV talks show on September 21 welcomed the 
U.S. government's decision. He said, "Moves to remove the root cause 
of the problem are now under way." He also pointed out, "The U.S. 
government may find it necessary to inject taxpayers' money" because 
there is a strong possibility of banks' net worth shrinking, 
depending on the bad-loan purchasing prices. 
 
Motegi pointed out that the injection of massive funds by central 
banks of various countries and the bailout of individual beleaguered 
banks would only serve as a stopgap measure. He noted that behind 
the protracted financial crisis is the fact that no offers have been 
made for related securitized products due to the sluggish U.S. real 
estate market." He then gave high marks to the steps the U.S. 
government has just adopted, noting, "I would like to welcome the 
measures, since they are intended to dig into the very essence of 
the problem." 
 
Concerning the criticism of the credit crunch of domestic banks 
linked to the U.S. financial crisis, Motegi called for a smooth 
money supply. He also pledged to take a second look at the bank 
inspection system, saying, "I will press home to inspectors that 
they should not prevent banks from extending proper loans." 
 
12) Purchases of bad loans: We have not received such a request, 
says Financial Services Agency 
 
NIKKEI (Page 3) (Full) 
September 22, 2008 
 
U.S. Treasury Secretary Paulson on September 21 indicated a policy 
of asking Japan and European countries to set up a bad-loan 
purchasing system. Commenting on this, the Financial Services Agency 
(FSA) said that it had not received any specific request for such. 
The FSA thus stands firm on its posture that since the blow Japanese 
banks have suffered from the subprime mortgage crisis is less 
serious compared with U.S. and European financial institutions, each 
bank should move ahead with the disposal of nonperforming loans 
within the scope of its net worth and profits on its own. Its stance 
is that there is no need for Japan to take measures designed to 
restore fiscal health using public money even if it receives a 
request from the U.S. government. 
 
The FSA believes that it would be difficult for the Japanese 
government to extend fund assistance for the U.S. government's 
bad-loan purchasing plan. Its judgment is that the present financial 
crisis mainly originated in the U.S., and it would be difficult to 
have Japanese taxpayers bear the burden. The government has, 
however, confirmed at such venues as the Council of Economic and 
Fiscal Policy its stance of closely cooperating with the governments 
of various countries in order to prevent the U.S.-induced financial 
crisis from spilling over to other countries. The FSA intends to 
continue to closely share information with monetary officials of 
other countries. 
 
SCHIEFFER