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Viewing cable 08TOKYO2613, DAILY SUMMARY OF JAPANESE PRESS 09/22/08

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Reference ID Created Released Classification Origin
08TOKYO2613 2008-09-22 22:53 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO8812
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2613/01 2662253
ZNR UUUUU ZZH
P 222253Z SEP 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7391
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 2317
RUEHFK/AMCONSUL FUKUOKA 9957
RUEHOK/AMCONSUL OSAKA KOBE 3700
RUEHNAG/AMCONSUL NAGOYA 8061
RUEHKSO/AMCONSUL SAPPORO 0533
RUEHBJ/AMEMBASSY BEIJING 5429
RUEHUL/AMEMBASSY SEOUL 1425
RUCNDT/USMISSION USUN NEW YORK 1723
UNCLAS SECTION 01 OF 12 TOKYO 002613 
 
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 09/22/08 
 
INDEX: 
 
(1) SGI Chairman Ikeda meets Ambassador to the U.S. Schieffer: 
Transmitting the spirit of a mother's love of humankind to the world 
(Seikyo Shimbun) 
 
(2) Lower House election may delay; Aso eager to enact supplementary 
budget; New Komeito calls for election on Nov. 2 (Yomiuri) 
 
(3) Poll: DPJ tops in voter preference for proportional 
representation (Tokyo Shimbun) 
 
(4) Interview with former DPJ President Seiji Maehara on LDP 
presidential race: New LDP president should verify Koizumi-Takenaka 
policy line (Asahi) 
 
(5) Fear of PNP losing political identity explains cancellation of 
merger with DPJ (Asahi) 
 
(6) Special contribution by Yukio Okamoto (Part A): Japan must not 
flee from Afghanistan (Sankei) 
 
(7) Sub intrusion: Spotting, tracking ability must be improved 
(Yomiuri) 
 
(8) U.S. financial system on verge of collapse - part 1: U.S. makes 
miscalculation, underestimating market (Tokyo Shimbun) 
 
(9) TOP HEADLINES 
 
(10) EDITORIALS 
 
ARTICLES: 
 
(1) SGI Chairman Ikeda meets Ambassador to the U.S. Schieffer: 
Transmitting the spirit of a mother's love of humankind to the 
world 
 
Ambassador: Japan and the U.S. share common values, such as 
democracy, freedom of religion, and freedom of expression; SGI 
Chairman: The friendship of the U.S., China, and Japan can form a 
foundation for peace; Winning in education opens the way to the 
future 
 
Photograph shows SGI Chairman saying, "Sincere efforts have 
continued to be made to promote friendship between Japan and China 
and between the U.S. and China; Ambassador Schieffer responding, "I 
fully realize the strength that the SGI Chairman exerts to make a 
better world." 
 
SEIKYO SHIMBUN (Top play, p. 2) (Full) 
September 20, 2008 
 
SGI (Soka Gakkai International) Chairman Ikeda welcomed U.S. 
Ambassador to Japan Thomas Schieffer to the main office of the daily 
Seikyo Shimbun in Shinano-machi at 2:00 pm on Sept. 19. The two then 
exchanged views on various topics, starting with the lessons the 
Ambassador had learned from his mother, education, foreign 
relations, and friendship. In their amicable conversation, which 
continued for an hour and forty minutes, the two foresaw peace and 
prosperity in the Asia-Pacific region, with Japan, America and China 
at the core. Also attending the meeting were Soka Gakkai Chairman 
 
TOKYO 00002613  002 OF 012 
 
 
Harada and Deputy Chief of Mission from the Embassy James P. 
Zumwalt. 
 
SGI Chairman Ikeda welcomed the Ambassador with the words: "I am 
honored to be able to meet the busiest American ambassador in the 
world. Thank you taking time out from your hard schedule to come 
over!" 
 
Ambassador Schieffer said with a broad smile: "It is a great honor 
to be able to come here." Their first meeting began with an exchange 
of mutual pleasantries and a firm handshake. 
 
Ambassador Schieffer has been praised for "always having a smile on 
his face," being a "gentleman who is intelligent and bright, earnest 
and good-natured"; and "as a modest person who always listens to the 
other person." 
 
He was born on Oct. 4, 1947, and he will be 61 next month. Born in 
the State of Texas, he has a master's degree in international 
relations from the graduate school of the University of Texas. 
 
In 1972, when he was 25, he was elected to the lower chamber of the 
Texas State Assembly. After that, he passed the bar exam to become a 
lawyer. He also was active as a businessman. In 2001, he was 
appointed ambassador to Australia, and since April 2005, he has 
served as the U.S. ambassador to Japan. 
 
The SGI Chairman praised the Ambassador for having exerted himself 
in his career through education, saying, "Those with an education in 
your country America always win. Talented persons win." At this 
point, the SGI Chairman extended an invitation to the Ambassador: 
"You must give a speech at the Soka Gakkai in the future." To this, 
the Ambassador willingly consented. 
 
Ambassador Schieffer then stated: I am very happy to be able to get 
to know everyone today at the Soka Gakkai. I have deep respect for 
the philosophy and principles of the SGI Chairman that spread peace 
and justice.  The conversation then deepened, centered on the 
Ambassador's recollection of his mother. The Ambassador had lost his 
father when he was a child. His mother raised three children on her 
own until they all successfully graduated from college. The lessons 
he learned from his mother included the following: Rather than going 
to the airport late, always get there early; always sport a smile 
and shiny shoes, for that is the secret of success. His mother also 
told him that it was no excuse to be beaten just because the other 
was bigger than you. 
 
The Ambassador also spoke about his mother's faith. "My mother 
believed that there was humanness inherent in all people. Although 
there was racial discrimination in the south, where I grew up, my 
mother was strongly against it. She believed that there should be 
respect for all people and for the work that they do." 
 
SGI Chairman Ikeda has written poems and the like about his respect 
for his own mother and her greatness. He stated that from the words 
of Ambassador Schieffer he felt the most noble, true heart of a 
mother. Mothers are most precious, and a mother's love of mankind 
can move one to want to spread that spirit across the world. 
 
(2) Lower House election may delay; Aso eager to enact supplementary 
budget; New Komeito calls for election on Nov. 2 
 
 
TOKYO 00002613  003 OF 012 
 
 
YOMIURI (Page 4) (Abridged slightly) 
September 22, 2008 
 
The ruling bloc has coordinated views for kicking off the official 
campaign on Oct. 14 for the next general election on Oct. 26. But 
chances have risen that such a timetable will be put off. The reason 
is that LDP Secretary General Taro Aso, who is certain to become the 
next prime minister, is eager to enact the fiscal 2008 supplementary 
budget. Another factor is that the New Komeito and its support base 
Soka Gakkai are still strongly calling for an election on November 
ΒΆ2. 
 
Gap in views between LDP and New Komeito 
 
Appearing on a commercial television program yesterday, Aso said: "I 
think the supplementary budget, including a package of economic 
stimulus measures, should absolutely be enacted." 
 
The ruling parties have coordinated views for dissolving the Lower 
House on Oct. 3 after the representative interpellations and before 
Diet deliberations on the FY2008 supplementary budget. But a gap has 
emerged in views between the LDP and New Komeito over the date of 
the election. 
 
Initially there was a tacit understanding between the two parties' 
election strategy officers on Nov. 9. But the LDP explored ways to 
carry out the election on Oct. 26 based on its thinking that the 
next election should take place early while the LDP has momentum 
from its presidential election. The party began coordinating views 
with the New Komeito after receiving an informal notice from the 
Internal and Communications Ministry that an election on Oct. 26 was 
feasible. 
 
The LDP's plan drew objections from the New Komeito and Soka Gakkai, 
with a Soka Gakkai-affiliated member complaining: "The preparatory 
period would be too short for an election on Oct. 26. We would lose 
three seats." Over the last several days, the New Komeito has 
proposed that if the election is to be moved up, it should be held 
on Nov. 2. 
 
November 2 will be in the middle of a three-day weekend. As such, 
the LDP opposed the New Komeito's proposal, saying that the ruling 
coalition would be criticized as deliberately setting the date then 
in hope of low voter turnout. 
 
A double-edged sword 
 
Aso's enthusiasm to enact the supplementary budget is also closely 
associated with the election timetable. Aso and his aides want to 
use the supplementary budget to play up his eagerness to revitalize 
the economy. 
 
When Democratic Party of Japan Diet Affairs Committee Chairman Kenji 
Yamaoka proposed a Lower House dissolution through talks, he 
presented the LDP with a plan to hold a Lower House Budget Committee 
session on Oct. 6-7 and an Upper House budget session on Oct. 8-9. 
If the supplementary budget clears the Diet immediately after that, 
the official election campaign could start on Oct. 21 for an 
election on Nov. 2, at the earliest, in view of the time necessary 
before the official announcement. An idea is also circulating to 
carry out the election on Nov. 3, the last day of the three-day 
weekend. 
 
TOKYO 00002613  004 OF 012 
 
 
 
Aso is also reportedly dismissive of newspapers' reports on a 
possible election on Oct. 26. 
 
Beginning deliberating on a supplementary budget could be a 
double-edged sword for the ruling coalition, however. That might end 
up giving the opposition bloc a golden opportunity to grill the 
government over the issue of tainted rice that has been used for 
human consumption and the issue of pension records that have been 
altered by Social Insurance Agency workers. 
 
As if to lure the LDP into Diet deliberations, DPJ Deputy President 
Naoto Kan expressed on an NHK program yesterday a willingness to 
dissolve the Lower House through talks, saying, "We can promise to 
reach a settlement line at a certain point without protracting 
budget deliberations." 
 
If the DPJ tries to prolong the deliberations, Aso intends to attack 
the DPJ as a party putting its own interests ahead of the national 
livelihood. But a Tsushima faction member warned: "Once budget 
deliberations begin, stormy developments will unfold, putting the 
DPJ at an advantage. The Lower House should be dissolved at the 
earliest possible time." 
 
Future political events 
 
September 22 (Mon) LDP presidential election 
September 24 (Wed) Extraordinary Diet session opens 
Prime ministerial election, formation of a new cabinet 
September 29 (Mon) 
The prime minister's policy speeches 
October 1 (Wed) 
Interpellations by party representatives (through Oct. 3) 
October 3 (Fri) 
Lower House dissolved (or October 9) 
October 6 (Mon) 
Lower House Budget Committee session (through Oct. 7?) 
October 7 (Tue) 
FY2008 supplementary budget clears the Lower House? 
October 8 (Wed) 
Upper House Budget Committee session begins? 
October 9 (Thur) 
Lower House dissolved? 
 
October 14 (Tue) 
Official election campaign begins (or October 21) 
October 21 (Tue) 
Official election campaign begins? 
October 26 (Sun) 
Lower House election (or November 2) 
November 1 (Sat) 
 
November 2 (Sun) 
Lower House election? 
November 3 (Mon) 
 
 (3) Poll: DPJ tops in voter preference for proportional 
representation 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 21, 2008 
 
 
TOKYO 00002613  005 OF 012 
 
 
The public approval rating for Prime Minister Yasuo Fukuda's cabinet 
was 15.6 PERCENT , the lowest since it came into office in September 
last year, according to an opinion poll conducted by Jiji Press on 
Sept. 12-15. The figure is down 8.0 percentage points from last 
month's poll taken after his cabinet shuffle. The disapproval rating 
was 65.3 PERCENT , up 10.7 points from last month. The Fukuda 
cabinet's average support rate is 29.9 PERCENT , which is in 16th 
place among the 21 cabinets from the Ikeda cabinet. 
 
The average support rate fell below 30 PERCENT  for Fukuda's father, 
Takeo Fukuda, and for Yoshiro Mori. Fukuda is the seventh. 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party stood at 20.9 PERCENT , up 0.2 points from 
the preceding month. The leading opposition Democratic Party of 
Japan (Minshuto) was at 12.8 PERCENT , down 2.2 points from the 
preceding month. Among other political parties, the New Komeito, the 
LDP's coalition partner, was at 3.2 PERCENT , with the Japanese 
Communist Party at 2.2 PERCENT  and the Social Democratic Party at 
0.5 PERCENT . The People's New Party and the New Party Nippon were 
respectively at 0.1 PERCENT . "None" accounted for 56.9 PERCENT . 
 
In the survey, respondents were also asked to pick a political party 
they would like to vote for under the proportional representation 
system in the next election for the House of Representatives. In 
this voter preference, the DPJ marked 31.3 PERCENT , 2.5 points 
higher than the 28.8 PERCENT  for the LDP. The New Komeito was at 
3.7 PERCENT , the JCP at 2.5 PERCENT , and the SDP at 1.6 PERCENT . 
 
The survey was conducted across the nation on a face-to-face basis 
with a total of 2,000 persons chosen from among men and women aged 
20 and over. The response rate was 66.7 PERCENT . 
 
(4) Interview with former DPJ President Seiji Maehara on LDP 
presidential race: New LDP president should verify Koizumi-Takenaka 
policy line 
 
ASAHI (Page 4) (Full) 
September 22, 2008 
 
Question: Whether the Koizumi structural reform initiative should be 
continued or not is being debated during the campaigning for the 
ruling Liberal Democratic Party (LDP) presidential election. 
 
Maehara: Japan definitely needs "real" structural reforms, but it is 
meaningless that debate is being without reference to the 
Koizumi-Takenaka policy line. I am talking about moving from 
centralization of power to decentralization, and how to destroy the 
paradise that bureaucrats enjoy as handlers of special account 
budgets and beneficiaries of the practice of amakudari (placing 
retired bureaucrats into high paying posts at private firms). 
Excessive public works projects should be discontinued. Drastic tax 
system reform and growth strategies in Japan's strongest areas are 
necessary. With the looming Lower House election in mind, however, 
the five LDP presidential candidates are mostly talking about things 
that please the public. 
 
Question: It is said that Taro Aso is popular in the country. 
 
Maehara: In consideration of the present situation of Japan, debates 
on how Japan would change if the DPJ took over political helm and on 
how the LDP would change under the leadership of Mr. Aso, are more 
 
TOKYO 00002613  006 OF 012 
 
 
important than the popularity of individuals such as Mr. Ozawa and 
Mr. Aso. 
 
Question: Advocating the continuation of the structural reform 
initiative, former LDP Secretary General Hidenao Nakagawa is 
supporting Ms. Yuriko Koike. Do you think from the standpoint of 
promoting reforms can you cooperate with Nakagawa and Koike in the 
future? 
 
Maehara: The question is the contents of their reforms. The Koizumi 
reform initiative failed to live up to expectations in implementing 
the trinity reform and reform of the Japan Highway Public 
Corporation. If the LDP calls such reforms, I would say "no." 
 
Question: Do you think there is a possibility of political 
realignment after the general election? 
 
Maehara: The major premise is that the DPJ can take over the reins 
of government and a government led by the DPJ can implement "real 
structural reforms," which it will pledge in the Lower House 
election. 
 
(08092207kn) Back to Top 
 
 
(5) Fear of PNP losing political identity explains cancellation of 
merger with DPJ 
 
ASAHI (Page 4) (Full) 
September 22, 2008 
 
Negotiations broke down yesterday between the main opposition 
Democratic Party of Japan (DPJ) and People's New Party (PNP) over 
the idea of a merger, since the PNP had set a high hurdle. If things 
stand as they are, it will be nearly impossible for the PNP to 
expand its strength in the next House of Representatives election. 
 
PNP leader Tamisuke Watanuki insisted at a press conference on Sept. 
19 that Upper House member Norimasa Hasegawa would not be able to 
join the DPJ from a legal standpoint. He stated: 
 
"There are as many as 200,000 special postmasters backing Mr. 
Hasegawa, who is a key advocate for maintaining the postal services. 
We have learned that Mr. Hasegawa, who won his Diet seat by 
criticizing the Liberal Democratic Party (LDP), will lose his seat 
if the two parties are merged." 
 
Watanuki continued: "I wonder whether we can incorporate this issue 
into a set of conditions for a possible merger, after careful 
examination." 
 
Small parties have been dumped into the dustbin whenever a general 
election has taken place, due to the trend toward a two-party 
system. The now defunct Conservative New Party (Hoshu-Shinto) was 
dissolved immediately after the 2003 Lower House election. The PNP 
was able to keep its seats in the 2005 general election, which was 
conducted soon after the party was founded. However, the party may 
find itself with less seats after the next Lower House race. 
 
According to a senior member of the largest opposition party, the 
DPJ had sent out "love calls" to the PNP with the idea of merging 
the two parties. The DPJ argued that the biggest advantage for the 
 
TOKYO 00002613  007 OF 012 
 
 
two parties would be that they would be able to find the middle 
ground on such issues as coordination of candidates in electoral 
districts. With the general election drawing closer, the DPJ 
expected that a merger of the two opposition parties would be more 
effective than simply adding up numbers. 
 
The relations between the DPJ and PNP will return to a framework of 
a conventional coalition of opposition parties. A senior PNP 
lawmaker, who was reluctant to accept a merger, told reporters 
yesterday: "There was no fault on the DPJ's part. It would be the 
worst thing if our relationship of trust is damaged." The PNP 
intends to make efforts to eliminate the bad blood the between the 
two parties. 
 
 (6) Special contribution by Yukio Okamoto (Part A): Japan must not 
flee from Afghanistan 
 
SANKEI (Pp. 1-3) (Abridged) 
September 19, 2008 
 
? Something is wrong 
 
Around midnight April 24, 2004, three suicide boats crashed into an 
oil terminal off Basra, Iraq. The 280,000-ton Takasuzu loaded with 
crude oil was one of the tankers docked at Basra when the 
explosives-laden boats blew up nearby. Two boats were blown up by 
the U.S.-led coalition forces in the nick of time, causing minor 
damage to the Takasuzu. 
 
The attempt to block another boat claimed the lives of three U.S. 
service members: Navy Petty Officer 1st Class Michael J. Pernaselli, 
24; Navy Petty Officer 2nd Class Christopher E. Watts, 28; and Coast 
Guard Petty Officer 3rd Class Nathan B. Bruckenthal, 24. The three 
had small children back in the United States. An Al-Qaeda-affiliated 
group claimed the responsibility two days later. 
 
On August 27, 2008, the body of Kazuya Ito, an aid worker of the 
nongovernmental organization Peshawar-kai, was found in Afghanistan. 
Ito had taught many farmers agricultural methods in the vicinity of 
Jalalabad. He was loved by local residents. The incident was 
reported on a nightly TV program in which the popular newscaster 
said: "The horror of the war on terror ... This might make one 
wonder what this is all about." He did not say the terrorist attack 
that killed Ito was horrible. He said the war on terror was terrible 
because Ito had been killed due to accidental bombings by the U.S. 
military and other matters. 
 
Will this newscaster tell the children who lost their fathers in the 
line of duty in Basra that their fathers did a dreadful thing? Which 
side -- the side that maintains order and the side that destroys 
order -- do some news companies regard as the victim and as the 
perpetrator? Something is wrong. 
 
The New Antiterrorism Special Measures Law authorizing to send the 
Maritime Self-Defense Force's refueler to the Indian Ocean is about 
to expire. There are no prospects for the enactment of a bill 
amending the law. 
 
? Attackers 
 
The MSDF refueler is tasked with providing fuel to coalition force 
vessels deployed off Somalia in the Indian Ocean. Vessels owned or 
 
TOKYO 00002613  008 OF 012 
 
 
managed by Japanese shipping firms have frequently been attacked in 
waters off Somalia. The large tanker Takayama was attacked on April 
21, 2008. 
 
Shortly after 4 o'clock that afternoon, a suspicious boat appeared 4 
kilometers ahead of the Takayama, which was cruising toward the west 
coast of Saudi Arabia. The suspicious boat then persistently 
attempted to align itself with the Takayama while firing rocket 
bombs and machineguns at it. Catching radio distress signals from 
the Takayama, the Emden, a German frigate deployed nearby waters, 
immediately headed for the Japanese tanker to rescue it while 
exchanging signals with it. 
 
The attackers, who were constantly monitoring the signals of the 
coalition forces, fled the scene an hour later. 
 
On Aug. 23, a suspicious vessel approached the cargo ship Aizu and 
unloaded two high-speed crafts 6 kilometers ahead of it and began 
attacking it. The Aizu continued to send emergency signals to the 
U.S.-led coalition fleet while being attacked and the mother ship of 
the attack boats kept jamming the Aizu's signals. The suspicious 
boats left the scene in about one hour. It took an average one hour 
for coalition vessels, including helicopters, to come to the Aizu's 
rescue. 
 
In addition, such chemical tankers and cargo vessels as the Golden 
Nori, Stella Maris, and Irene have been attacked since last October, 
though no details on them have been made public. Some are still 
under seige. 
 
The vessels mentioned above are all connected with Japan. As a 
whole, a large number of ships have been attacked. This year alone, 
a total of 18 vessels have been seized by attackers, though they 
have not been reported. Over 130 seamen are still in captivity. 
 
(7) Sub intrusion: Spotting, tracking ability must be improved 
 
YOMIURI (Page 13) (Full) 
September 18, 2008 
 
Hidemichi Katsumata, senior writer 
 
On Sept. 16, the Maritime Self-Defense Force discontinued its search 
for a submarine of unknown nationality that violated Japan's 
territorial waters off the island of Shikoku. The MSDF should be 
specialized in antisubmarine operations from detecting to tracking 
and attacking. 
 
"Isn't that a periscope?" At 6:56 p.m., on Sept. 14, the captain of 
the MSDF Aegis-equipped destroyer Atago, who was on the port-side 
deck, pointed his forefinger right at what he was seeing. The 
captain and his colleagues on the deck fixed their eyes on it. 
Indeed, they could see something that appeared to be a periscope on 
the waves about one kilometer away. The captain confirmed that the 
Atago was within the bounds of Japan's territorial waters about 20 
kilometers southwest of Kochi Prefecture. He then ran up to the 
bridge and steered his ship in a direction where the periscope was 
in sight. He activated active sonar, which emits sound waves to pick 
up the target. 
 
The sonar's waves hit the target and bounced back with pinging 
sounds. The underwater target was moving southward. After 7 a.m., 
 
TOKYO 00002613  009 OF 012 
 
 
the Atago contacted the headquarters of Escort Flotilla 3 in 
Maizuru, Kyoto Prefecture, where she is based. The Atago reported 
that the target was highly likely a submarine. However, the sonar 
reverberations gradually went down. At 8:39 a.m., about 1 hour and 
30 minutes after spotting the submarine, the Atago lost the target. 
After that, P-3C patrol aircraft continued the search for over 50 
hours but failed to pick up the target again. 
 
Unfortunately, the Atago was an Aegis vessel without a helicopter. 
Her own engine sounds offset the target's propeller cavitations, so 
active sonar was the only means available to track the target. A 
helicopter destroyer will have its helicopter take off right away 
and drop sonobuoys. If the target was a submarine, that destroyer 
could have monitored its inherent propeller cavitations and 
identified its type. 
 
With that alone, off course, it is difficult to keep tracking. In 
the sea, sounds go quite differently depending on the salt level, 
ocean floor configuration, and water temperature. In its 
antisubmarine warfare operations, the MSDF has a fleet of eight 
helicopters and eight destroyers and flies P-3C patrol planes to 
carry out a multilayered search. There was something unfortunate, 
but there is also no denying that the MSDF failed to take action at 
once. 
 
The Atago failed to track the submarine and could not even collect 
its propeller cavitations. "Was it really a submarine?" Such a 
question came from within the Defense Ministry. At 10 a.m., right 
after the Atago lost the submarine, P-3C patrol aircraft began 
searching the area. Judging from the submarine's speed, its 
underwater area of operation is not so large. Nevertheless, the 
Atago was unable to detect the submarine. In addition to the MSDF, 
the U.S. Navy is also watching out for the movements of submarines 
from neighboring countries in various ways. This time, however, 
there were no signs. This was also one of the reasons for that 
question. 
 
However, it is especially vital for Japan to heighten its ability to 
spot and track submarines since Japan is surrounded by the seas. 
"Many submarines have been spotted in waters around Japan, whether 
they are identified or not," said MSDF Chief of Staff Keiji 
Akahoshi. "Submarines-if they're capable-can be anywhere," he 
added. 
 
The MSDF is now testing the P-1, which is a faster jet patrol 
aircraft and a follow-on model to replace the P-3C. Submarines are 
also quieter than ever so that they will not be detected. The MSDF 
must train its personnel and introduce new equipment that is even 
more capable of detecting and identifying submarines. 
 
Furthermore, the MSDF has to prepare for such eventualities as sub 
intrusions into Japanese waters and terrorist attacks in an attempt 
to destroy vital facilities. The current law should be rectified, as 
it only allows the MSDF to order an unidentified submarine to 
surface even after maritime security action is invoked. 
 
The MSDF will be able to take uncompromising counteractions in 
dealing with submarines violating Japan's territorial waters only 
when the MSDF improves its antisubmarine capabilities and the law is 
amended. 
 
(8) U.S. financial system on verge of collapse - part 1: U.S. makes 
 
TOKYO 00002613  010 OF 012 
 
 
miscalculation, underestimating market 
 
TOKYO SHIMBUN (Page 9) (Full) 
September 20, 2008 
 
The global economy is being buffeted by the financial crisis caused 
by the United States. Financial instability has occurred against the 
backdrop of the economies of various countries being closely linked 
together to an unprecedented degree. What impact will the crisis 
have on the global economy? What should be done in order to prevent 
it from spreading? The Mainichi Shimbun has interviewed experts on 
the international economy and the financial situation. 
 
Interview with Takahiro Mitani, former Bank of Japan director 
 
-- The central banks of Japan, the U.S. and European countries on 
September 18 announced their decision to provide up to 180 billion 
dollars or approximately 19 trillion yen to help the management of 
funds by U.S. financial institutions. What is the background of 
their decision? 
 
"Banks became beset with doubts and fears regarding transactions on 
the call market, a venue for them to mutually accommodate with 
loans. As a result, the market has become paralyzed. What is 
happening now reminds me of the 1990s in Japan. At that time, high 
premiums were imposed on Japanese banks when they procured funds on 
the global market. 
 
"In Japan, Sanyo Securities failed in November 1997. Banks fell into 
a state of mutual distrust, triggered by loans worth hundreds of 
millions of yen turning sour on the short-term market. As a result, 
Hokkaido Takushoku Bank and Yamaichi Securities successively went 
down. The U.S. government bailed out Bear Sterns this March. It had 
been thought that it would also bail out Lehman Brothers, a leading 
securities firm. However, it did not, which fueled anxieties 
immediately. The U.S. government then hastily bailed out AIG, a 
leading insurance company. However, the action came too late. Since 
any financial bank could collapse at any time, money is now fleeing 
the call market. This is the result of the mistake the U.S. 
government has made, by underestimating the market. It must be feel 
regret now." 
 
-- Stock prices are rising due to the dollar-supplying measure. Do 
you think that the market will settle down? 
 
"The fund-supplying measure is only a stopgap measure for banks. It 
is essential for the government to introduce a system of dealing 
with debt-ridden banks, while bailing out creditors with public 
money. Making such a political decision may be difficult with the 
presidential election just at hand in November. However, the market 
moves fast. It will not wait until November. It took many years for 
Japan to fully inject public money. Consequently, the chaotic 
financial situation and the credit crunch of banks became serious. 
Since U.S. financial institutions have many operating bases 
throughout the world, including Japan, if the U.S. government 
stumbles over this issue, the result would be enormous. Since the 
effect of the income tax cut implemented in the first half of this 
year is wearing off, it is necessary to take economic pump-priming 
measures." 
 
-- What impact will the U.S. financial crisis have on Japan? 
 
 
TOKYO 00002613  011 OF 012 
 
 
"Many took the view that the U.S. housing market would recover in 
the latter half of next year. However, the slump has become drawn 
out. The situation in Japan will continue to be harsh. Exports are 
expected to drop. However, unlike the Great Depression in 1929, when 
the plummeting U.S. stock market spilled over to affect the whole 
world, there is a mechanism for international cooperation. The worst 
situation could be avoided." 
 
-- What has made the situation worsen to this extent? 
 
"All involved sources succumbed to moral hazard. The business of 
securitizing loan claims has amplified the irresponsibility of money 
lenders, spreading losses throughout the world. When the economy was 
booming, all made profits. But once the market begins reversing 
itself, it becomes scary." 
 
(9) TOP HEADLINES 
 
Asahi: 
DPJ President Ozawa says he will implement pledged policies in 3 
stages 
 
Mainichi: 
Ozawa to place priority on policies related to agriculture, 
child-rearing 
 
Yomiuri: 
Aso to be elected LDP president; Yosano, Ishiba to enter new 
cabinet 
 
Nikkei: 
Major construction firms passing higher steel prices on through 
construction fees 
 
Sankei, Tokyo Shimbun: 
Five-year-old girl found dead on street in Chiba 
 
Akahata: 
JCP chairman: Two political evils -- bureaucracy-centered 
administration and America-following -- should be corrected 
 
(10) EDITORIALS 
 
Asahi: 
(1) Ozawa's DPJ must show persuasive administrative roadmap 
(2) Drop in land prices: Policies that would raise utility value 
necessary 
 
Mainichi: 
(1) DPJ must show determination through policies 
(2) Reconsideration of war on terror urged 
 
Yomiuri: 
(1) Ozawa should speak up on funding for implementing pledges 
(2) Missile defense: ASDF succeeds in intercepting missiles 
 
Nikkei: 
(1) DPJ President Ozawa should show persuasive policy platform 
(2) Can financial crisis change Russia? 
 
Sankei: 
(1) Need to closely examine whether DPJ can take the reins of 
 
TOKYO 00002613  012 OF 012 
 
 
government 
(2) Japan must take firm attitude against China regarding 
melamine-tainted milk 
 
Tokyo Shimbun: 
(1) Ozawa needs to turn platform into concrete arrangements 
(2) High school boy struck by lightning: When you hear thunder, seek 
shelter 
 
Akahata: 
(1) Oct. 5 youth convention: Politics should stop disposing of young 
workers 
 
SCHIEFFER