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UNCLAS SECTION 01 OF 06 TOKYO 002620 
 
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 09/23/08 
 
INDEX: 
 
(1) SGI Chairman Ikeda meets U.S. Ambassador to Japan Schieffer 
(part 2): Japan should be a bridge between the U.S. and China 
(Seikyo Shimbun) 
 
(2) Editorial: Aso vs. Ozawa -- Now it's the people's turn to choose 
(Nikkei) 
 
(3) British, Australian newspapers reported that Aso Mining owned by 
Takakichi Aso, father of Taro Aso, had used Allied POWs for forced 
labor (Shukan Gendai) 
 
(4) TOP HEADLINES 
 
(5) EDITORIALS 
 
(6) Prime Minister's schedule, September 22 (Nikkei) 
 
ARTICLES: 
 
(1) SGI Chairman Ikeda meets U.S. Ambassador to Japan Schieffer 
(part 2): Japan should be a bridge between the U.S. and China 
 
SEIKYO SHIMBUN (Page 2) (Full) 
September 20, 2008 
 
Later in the meeting, the topic came up about what was important 
when thinking about the future course of Japan-U.S. relations. 
 
The Ambassador stressed that when thinking about the future of Asia 
over the next 20 to 30 years, it was inconceivable that there would 
be conflict between the interests of America and that of Japan. As 
the reason for this assertion, he said, "Japan and the United States 
share common values." He gave such examples as democracy, rule by 
law, freedom of expression, freedom of the press, and freedom of 
religion. 
 
In addition, he stated: "I believe that our countries together are 
seeking world peace through trade, education, and mutual 
understanding." He stressed that it was only natural for Japan and 
the U.S. to cooperate for the sake of the world. 
 
The SGI Chairman reminisced about his life and the friendships he 
had built with such figures as Secretary of State Kissinger in 
America and Senator Edward Kennedy, the brother of President 
Kennedy. He also mentioned that at the time when he issued in Sept. 
1968 a proposal for normalization of relations between Japan and 
China, there was a reference to peace and friendship between China 
and the U.S. He related his efforts as a private citizen to bring 
about friendly ties between Japan and China, as well as between the 
U.S. and China. 
 
The SGI Chairman also touched on the relations of the three 
countries today. He said that Japan must earnestly maintain a 
friendship with China at all times, and that China recognizes the 
importance of the U.S. He added that it was essential for the world 
in the future that Japan also should play a role as a bridge between 
the two countries to deepen the friendly ties between the U.S. and 
China. 
 
The Ambassador said that as long as Japan and America have a strong 
 
TOKYO 00002620  002 OF 006 
 
 
friendship, there would be stable development in Asia. 
 
In addition, when the SGI Chairman asked the Ambassador about his 
diplomatic philosophy, he replied as follows: "The best diplomacy is 
not just talking to the government; I think diplomacy is talking to 
the nation, to the people." When the SGI Chairman brought up the 
Kansai region, where he had deep memories of his youth, the 
Ambassador expressed his hopes: "The Kansai is a dynamic region, and 
it still has a great potential for further development. I think the 
appeal of the Kansai region should be broadcast to the world." 
 
The SGI Chairman then brought up something that the Ambassador had 
once said in the Kansai, namely, that Japan still has a largely 
untapped, splendid human resource: women. The two discussed that 
women's power and women's activities will sustain the new age. 
 
Attending the meeting were Gakkai Deputy Chairman Tanigawa and other 
dignitaries. Representatives from each department, including the 
Youth Department, were there to welcome the Ambassador. 
 
(2) Editorial: Aso vs. Ozawa -- Now it's the people's turn to 
choose 
 
NIKKEI (Page 2) (Full) 
September 23, 2008 
 
Now that Secretary General Taro Aso has won a landslide victory in 
the Liberal Democratic Party's (LDP) presidential election, as 
generally expected, the Liberal Democratic Party (LDP) led by 
newly-elected Aso will confront the Democratic Party of Japan (DPJ 
or Minshuto) led by Ichiro Ozawa in the next general election. It is 
now the people's turn to choose either the LDP or the DPJ. Both 
parties should seek the judgment of the voters by providing them 
with clear manifestos (campaign pledges). 
 
The reasons for Aso's overwhelming victory are clear. He has been 
enjoying overwhelming popularity in the polls as a candidate for the 
next prime minister. He is also supported by many LDP members as the 
key person to lead the party into the next election. No less 
important is the fact that with the economy entering a recessionary 
phase, hopes are pinned on Aso for economic pump-priming measures. 
 
The presidential election started with a fanfare with five LDP 
lawmakers declaring their candidacies. But it lost steam part way. 
People's interest in who might win the election weakened when Aso 
left the rest of the pack far behind. Policy debate did not draw 
much attention, because candidates' policies did not differ much. 
The campaign increasingly appeared to be a throwaway match, as 
people's interests were drawn toward the financial crisis in the 
U.S. and the tainted rice resale issue. 
 
Even so, a rough sketch of president-elect Aso's policy emerged 
during the campaign period. He made clear his stance of giving first 
consideration to economic stimulus measures, saying that it would 
take three years for the Japanese economy to recover its health. 
Specifically, he pledged the implementation of a fixed-rate tax cut, 
policy tax cuts and measures to help small and medium-size 
businesses. 
 
He indicated a stance of not adhering to the government's goal of 
moving the primary balance into the black by fiscal 2011. He also 
categorically noted that he would not raise the consumption tax for 
 
TOKYO 00002620  003 OF 006 
 
 
the next three years. He declared his intention to revise the public 
health insurance scheme for elderly people aged 75 or older, saying 
that the government policy of constraining a natural increase in 
social security expenses by 220 billion yen had reached its limit. 
He revealed a plan to finance an increase in the portion of state 
contribution to the basic pension with surpluses in the special 
account. 
 
Aso's taking office as the president of the LDP has made clear that 
there has been a shift from the previous Koizumi reform-policy line. 
The economy has taken a downward turn, and its future is beginning 
to become unclear due to the financial crisis that started in the 
U.S. While Aso should properly implement the necessary economic 
stimulus measures, he also should place emphasis on policies that 
will spur economic structural reform that leads to economic growth. 
 
It is not desirable to depend on the issuance of government bonds 
without carefully considering where the funding resources will come 
from. The need to implement administrative reform and eliminate 
wasteful spending is growing. Aso should come up with a reform 
vision that includes the consolidation and reorganization of the 
government's local branches. 
 
President Aso will be designated prime minister in the extraordinary 
Diet session to be convened on September 24 and then form a new 
cabinet. It has been three years since the previous general 
election. During this period, three prime ministers have stepped 
down. The next prime minister should immediately dissolve the Lower 
House and seek the judgment of the people. Given the country's harsh 
economic conditions, it is desirable to dissolve the Lower House 
after deliberations on the supplementary budget bill in the 
extraordinary Diet session. 
 
(3) British, Australian newspapers reported that Aso Mining owned by 
Takakichi Aso, father of Taro Aso, had used Allied POWs for forced 
labor 
 
SHUKAN GENDAI (Page 20&21) (Full) 
October 4, 2008 
 
It is well known that South Korea and China are wary of Taro Aso for 
his hawkish words and actions. It is not known, however, that Aso 
has some hidden "bombs" in his relations with Australia and Britain, 
which are former Allies. 
 
The so-called Aso Company Report is kept at the U.S. National 
Archives in Maryland. 
 
After World War II, the company report was submitted by Aso Mining 
Co. in Fukuoka Prefecture to Occupation authorities investigating 
war crimes against prisoners of war (POWs). 
 
Aso Mining was owned by Takakichi Aso, former Lower House member and 
the father of Taro Aso. Taro Aso himself had run Aso Cement Co. 
before he entered the political world. 
 
Since Aso Mining employed many Koreans during the war, the South 
Korean government in 2005 asked (Aso Cement) to submit detailed 
documents. But Koreans were not the only foreigners employed by Aso 
Mining. According to the Aso Company Report, Aso Mining employed 
also Allied POWs in its Yoshikuma mine in Fukuoka. 
 
 
TOKYO 00002620  004 OF 006 
 
 
William Underwood, a former lecturer at Kurume Institute of 
Technology, who researches postwar reparations by various countries, 
pointed out: 
 
"British and Australian newspapers covered this issue around April 
and May 2006 one after the other. I have confirmed that the Aso 
Company Report writes that Aso mining used 300 Australian, British 
and Dutch POWs as forced labor." 
 
This weekly magazine verified the fact. There are two company 
reports. One was a letter, dated on June 22, 1945, to the Japan War 
Ministry requesting the use of 300 Allied POWs for forced labor 
under a 12-hour shift system. 
 
The other was a report detailing how Aso Mining was treating POWs. 
The report dated Jan. 24, 1946, compiled by Aso Mining, was 
submitted to the Allied Occupation POW Information Bureau. The 
company report claims the Westerners were fed, clothed and housed 
better than Aso's Japanese workers. Underwood, however, questions 
this report, saying: 
 
"It's hardly possible that POWs were treated well. I interviewed an 
Australian POW employed in the Aso Yoshikuma mine. He told me that 
he had been forced to work under severe conditions." 
 
Let's examine the specifics. Although the company report writes that 
Allied POWs were dressed in military uniforms that were of superior 
quality than clothing for ordinary people, the Australian POW said: 
"We were down to absolute tatters by the end of the war. I don't 
think we had have seen it through another winter." The company 
report also claims that, soon after Japan's surrender, prisoners 
thanked Aso officials for their kind treatment by giving them gifts. 
But the Australian POW said: "There was no such thing. That's 
absolute rubbish." 
 
The company report writes that about one yen was paid and the higher 
wage was paid to those who had special skills. But the Australian 
POW said: "I was not paid at all." 
 
When the British and Australian newspapers covered this problem two 
years ago, Aso, then foreign minister, would not talk about his 
view, only rejecting the reports. Regarding Aso Mining's use of 
Koreans for forced labor, Aso was quoted in a Mainichi Shimbun 
article on Nov. 3, 2005, as saying: "I have no intention to explain. 
Basically, the issue was resolved under the Treaty on Basic 
Relations between Japan and the Republic of Korea." He avoided 
giving a specific answer. 
 
This magazine inquired about his intention, but he did not respond. 
Underwood said: 
 
"Of course, Mr. Aso was not involved in the forced labor. However, 
if he plans to take part in the international community as Japan's 
prime minister, he should reveal the historical facts about Aso 
Mining." 
 
(4) TOP HEADLINES 
 
Asahi & Nikkei: 
Mitsubishi UFJ Financial Group to take stake in Morgan Stanley 
 
Mainichi: 
 
TOKYO 00002620  005 OF 006 
 
 
Aso elected LDP president, garnering 70 PERCENT  of votes 
 
Yomiuri: 
Aso elected LDP president, collecting 67 PERCENT  of votes 
 
Sankei: 
Aso elected LDP president; to become new prime minister tomorrow 
 
Tokyo Shimbun & Akahata: 
Aso elected LDP president 
 
(5) EDITORIALS 
 
Asahi: 
(1) Aso elected new LDP president: Can the LDP survive? 
 
Mainichi: 
(1) Aso elected new LDP president without principle and policy 
 
Yomiuri: 
(1) New LDP President Aso must speak out about what he will do 
 
Nikkei: 
(1) Time for people to choose -- Aso or Ozawa -- in Lower House 
election 
(2) Revolutionary change in Wall Street 
 
Sankei: 
(1) New LDP President Aso must exercise leadership by sweeping away 
public distrust in politics 
 
Tokyo Shimbun: 
(1) Aso elected new LDP president: Does LDP have strength to face 
headwind? 
 
Akahata: 
(1) No hopes for Aso to end gridlock 
 
(6) Prime Minister's schedule, September 22 
 
NIKKEI (Page 2) (Full) 
September 23, 2008 
 
10:16 
Met at the Kantei with Consumer Administration Minister Noda, Senior 
Vice Cabinet Minister Masuhara, and Quality-of-Life Policy Bureau 
Director-General Tanaka, followed by Abduction Issue Minister 
Nakayama. Afterward met Deputy Chief Cabinet Secretary Futahashi. 
 
13:21 
Met Chief Cabinet Secretary Machimura and his deputy Shionoya. 
Machimura stayed on. 
 
14:00 
Attended the LDP presidential election at party headquarters. 
 
15:25 
Aso became new LDP president. 
 
15:44 
Met Futahashi at the Kantei. 
 
 
TOKYO 00002620  006 OF 006 
 
 
17:31 
Attended an Education Rebuilding Council meeting. 
 
19:11 
Returned to his official residence. 
 
SCHIEFFER