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UNCLAS SECTION 01 OF 13 TOKYO 002646 
 
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 09/25/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Aso Cabinet: 
3) President Bush congratulates Taro Aso by phone on his being 
elected prime minister  (Asahi) 
4) "Election cabinet" of Prime Minister Aso launched  (Asahi) 
5) Lower House election could be on either Nov. 2nd or 9th  (Nikkei) 
 
6) Aso Cabinet seen as a "one-man show" production, leaving his 
former chief cabinet secretary, Machimura, miffed  (Nikkei) 
7) Cabinet profile: Average age is four years younger than previous 
one; four members have no factional affiliation; and many hold 
"hereditary" Diet seats  (Tokyo Shimbun) 
8) Foreign Minister Nakasone, son of famous prime minister, known 
more for making dogged efforts than for having pluck  (Sankei) 
9) Defense Minister Hamada, son of notorious LDP lawmaker "Hamako", 
is a new breed of defense policy specialists  (Sankei) 
10) Finance Minister Shoichi Nakagawa, son of rightwing lawmaker, 
has reputation of being one of the LDP's toughest "hawks" 
(Mainichi) 
11) State Minister for Declining Birthrate Obuchi, daughter of the 
late Prime Minister Obuchi, is a mom and at 34, the youngest cabinet 
member  (Yomiuri) 
 
12) Head of abduction family association "shocked" that Kyoko 
Nakayama, abduction issue advocate, was not in the Aso Cabinet 
(Mainichi) 
13) Views of voters interviewed on the street include feeling that 
"they don't know the lives of us average people"  (Mainichi) 
 
Aso's challenges: 
14) Main points of Prime Minister Aso's press conference include 
pledge to continue oil refueling mission in the Indian Ocean 
(Asahi) 
15) Aso to make his immediate foreign policy debut at the UN General 
Assembly, leaving for New York today  (Sankei) 
16) Aso must find way to prevent sparks between Japan and U.S. over 
the MSDF refueling mission, whose future is now in doubt  (Nikkei) 
17) Secretary of Defense Gates' remarks about "those not sending 
troops to Afghanistan should provide funding" may refer to Japan 
(Yomiuri) 
 
18) Democratic Party of Japan finishes drafting its political 
manifesto for the upcoming general election  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Aso's "election-destined" cabinet launched: Announces cabinet lineup 
himself; Calls for deliberations on supplementary budget 
 
Mainichi: 
Aso cabinet launched: Stop-gap lineup with general election just 
ahead 
 
Yomiuri: 
Aso's "war-readiness" cabinet launched: Policy shift to give 
 
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priority to economic pump-priming measures 
 
Nikkei: 
Aso cabinet set sails: Strong impression of being caretaker 
government with Lower House election close at hand 
 
Sankei: 
Aso cabinet launched: Will dissolve Lower House, taking 
supplementary budget into account 
 
Tokyo Shimbun: 
Aso cabinet launched: General election to be set with focus on with 
Nov. 2 
 
Akahata: 
Extraordinary Diet session starts: War of words to correct 
root-cause of people's burden from the perspective of benefit of 
people urged 
 
2) EDITORIALS 
 
Asahi: 
(1) Aso's cabinet launched: What should be done before dissolution 
of Lower House 
(2) Realignment of financial institutions throughout world: Japanese 
banks should make best use of opportunity 
 
Mainichi: 
(1) Aso cabinet: Ripe time for voters to choose either LDP or DPJ; 
Clear information for making decision should be offered 
 
Yomiuri: 
(1) How to build a bright and strong country? 
 
Nikkei: 
(1) Can Aso cabinet convey its resolve to fight with its back to the 
wall? 
(2) Shockwave from suicide bombing in Pakistan 
 
Sankei: 
(1) Aso cabinet: Win confidence, overcoming present crisis: Contest 
general election with policies 
 
Tokyo Shimbun: 
(1) Aso "election-destined" cabinet launched: Lineup for decisive 
battle set 
 
Akahata: 
(1) Aso cabinet launched: Thorough discussion of state affairs 
indispensable 
 
3) Bush congratulates Aso 
 
ASAHI (Page 9) (Full) 
September 25, 2008 
 
NEW YORK-U.S. President Bush called Prime Minister Aso on the 
morning of Sept. 24 (on the evening of Sept. 24 Japan time) and 
congratulated him on his inauguration as prime minister. At the same 
time, Bush and Aso reaffirmed that the alliance between Japan and 
the United States remains rocksolid, according to National Security 
Council (NSC) Spokesman Johndroe from the White House. Bush was 
 
TOKYO 00002646  003 OF 013 
 
 
quoted as saying he was looking forward to seeing Aso when the 
Asia-Pacific Economic Cooperation (APEC) forum meets in November. 
 
4) Launch of Aso "election-management cabinet"; Aso announces 
cabinet lineup himself 
 
ASAHI (Top Play) (Excerpts) 
September 25, 2008 
 
Liberal Democratic Party (LDP) President Taro Aso was elected the 
nation's 92nd prime minister and launched his coalition government 
with the New Komeito yesterday. He appointed people who supported 
him in the presidential race to key posts, naming Shoichi Nakagawa 
as finance minister and state minister in charge of financial 
services, Kunio Hatoyama as internal affairs and communications 
minister, and Akira Amari as state minister in charge of 
administrative reform. He thus has demonstrated his own policy 
identity. The ruling coalition is making preparations to dissolve 
the House of Representatives in early October, making the new 
cabinet "an election management cabinet" in effect. 
 
In a press conference last night, Aso emphasized: "I will fight the 
election with these members. We will fight openly and squarely." 
While saying: "The supplementary budget bill should be deliberated 
on" in the extraordinary Diet session, Aso expressed his distrust in 
the Democratic Party of Japan (DPJ), remarking: "We were often 
betrayed over the past year." He indicated a willingness to decide 
on the dates of Lower House dissolution and general election upon 
ascertaining how the DPJ would respond to a call for deliberations 
on the extra budget bill. 
 
Aso instructed Secretary General Hiroyuki Hosoda, Policy Research 
Council Chairman Kosuke Hori, and other key members yesterday to 
speed up the formation of a policy manifesto for the Lower House 
election. They are expected to draw up the manifesto, based on Aso's 
campaign pledges in the party presidential election, including 
economic measures. 
 
Aso announced his cabinet lineup himself in a press conference, 
although the announcement is traditionally made by the chief cabinet 
secretary. Aso told his aides: "I would like to send a message that 
the prime minister who was indirectly elected by the people under 
the parliamentary cabinet system picked the cabinet members." 
 
While appointing lawmakers close to him as members of the cabinet, 
Aso also retained Kaoru Yosano as state minister in charge of 
economic and fiscal policy and former Defense Minister Shigeru 
Ishiba as agriculture, forestry and fisheries minister, both of whom 
ran against Aso. 
 
When former Prime Minister Fukuda launched his cabinet, he kept 15 
out of the 17 members of the reshuffled Abe cabinet in their posts. 
But Aso has kept only five members of the previous cabinet in his 
cabinet, including Environment Minister Tetsuo Saito of the New 
Komeito and State Minister in Charge of Consumer Affairs Seiko Noda. 
The new cabinet has five first-time appointees, including State 
Minister in Charge of Declining Birthrate Yuko Obuchi, who became 
the nation's youngest postwar cabinet member at 34. 
 
5) Wrangling over general election day to go into full swing between 
ruling, opposition camps; Nov. 2 or 9 likely in ruling parties 
 
 
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NIKKEI (Page 2) (Full) 
September 25, 2008 
 
Following the inauguration of the new cabinet of Prime Minister Taro 
Aso, haggling over when the next House of Representatives election 
should be officially announced and be held will go into full gear 
between the ruling and opposition camps. In the ruling coalition, 
two ideas are now likely: "official announcement on Oct. 21 and 
voting on Nov. 2" and "announcement on Oct. 28 and voting on Nov. 
9." Some have suggested setting the voting date at Nov. 3. In making 
a decision, the government will carefully observe what response the 
Democratic Party of Japan (DPJ) makes to a fiscal 2008 supplementary 
budget bill that includes financial resources for the government's 
comprehensive economic package. 
 
In a press conference yesterday, Prime Minister Aso emphasized that 
he will carefully watch what response the opposition bloc takes to 
the extra budget bill. 
 
The government might be criticized as irresponsible if it dissolves 
the Lower House without deliberations on a bill that earmarks 
expenses to fund assistance for small businesses and other economic 
stimulus measures when concerns about a global financial crisis are 
growing in the aftermath of the recent tumble of the U.S. monetary 
market. A senior Liberal Democratic Party member said last night: 
"Deliberations on the bill will start in the Lower House, but 
whether the bill is enacted or not will depend on the response by 
the opposition camp." 
 
Keeping early November in mind, the New Komeito is making 
preparations for the election. A senior party member told LDP 
lawmakers: "Voting on Nov. 9 is more desirable than voting on Nov. 
2." New Komeito President Akihiro Ota told reporters yesterday 
regarding the date of Lower House dissolution: "I would like to hold 
discussions after (Prime Minister Aso) returns home (from the United 
Nations' annual assembly)." 
 
6) Aso's one-man show in cabinet selection sets off waves; Strong 
reaction from factions for his giving special preference to friends 
in selection process; Machimura faction miffed 
 
NIKKEI (Page 2) (Excerpt) 
September 25, 2008 
 
The Aso Cabinet launched yesterday has little in the way of showcase 
appointments, but stood out instead as having been personally picked 
by Prime Minister Taro Aso. It was virtually a one-man show with 
appointments that gave special preference to Aso's friends. There 
have been sharp reactions from the factions, including the largest 
one, Machimura's, which had lined up in the camp of those favoring 
Aso. There has been no chance to make any revisions in the cabinet 
list from the start. Although there had been great expectations of 
the prime minister as the face of the party going into the election, 
the unity of his administration, depending on its ratings in the 
polls, is likely to unravel. 
 
7)Average age of Abe cabinet ministers is four years younger than 
Fukuda cabinet; Ministers belonging to no LDP faction form largest 
group 
 
TOKYO SHIMBUN (Page 3) (Full) 
September 25, 2008 
 
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Prime Minister Taro Aso has picked many of his friends to serve as 
cabinet ministers. More than 60 PERCENT  of the cabinet members are 
LDP lawmakers who succeeded to Diet seats held by their parents or 
grandparents. The average age of the Aso cabinet members is four 
years younger than the previous Fukuda cabinet. This newspaper has 
analyzed the profiles of all 18 cabinet ministers, including the 
prime minister. 
 
Faction 
 
Four of the ministers, including Health, Labor and Welfare Minister 
Yoichi Masuzoe and State Minister Economic and Fiscal Policy Kaoru 
Yosano, do not belong to any LDP factions, forming the largest 
group. Three cabinet posts were given to the Tsushima and Ibuki 
factions respectively. The Koga faction, the third-largest in the 
LDP, and the Yamasaki faction, the fourth-largest in the party, got 
one cabinet post respectively. However, the Yamasaki faction already 
received the party's deputy secretary general post. The Koga faction 
appears to have been treated unkindly. The Koumura faction did not 
get any post. Economy, Trade and Industry Minister Toshihiro Nikai 
is the only faction head to enter the Aso cabinet. 
 
Age, number of times elected to Diet 
 
The average age of the Aso cabinet ministers is 58.2, four years 
younger than the 62.0 of the previous Fukuda cabinet. The Cabinet 
Secretariat keeps the records of the cabinets since the second Sato 
cabinet in 1976. Accordingly, the average age of 58.2 makes Aso's 
the second-youngest cabinet on record, following the average age of 
57.6 of the second Koizumi cabinet. 
 
Heredity 
 
Of the Aso cabinet members, 11, including Aso, hold "hereditary" 
seats, being lawmakers who succeeded to Diet seats held by their 
fathers or other relatives. Four members had a grandfather or father 
who served as prime minister. 
 
Background and graduating school 
 
The only minister who is a former bureaucrat is Land, Infrastructure 
and Transport Minister Nariaki Nakayama, who once served in the 
Finance Ministry. Four ministers, including National Public Safety 
Commission Chairman Tsutomu Sato, are former prefectural assembly 
members. Five ministers each graduated from the University of Tokyo 
and Keio University. 
 
8) Foreign Minister Nakasone persistent rather than courageous 
 
SANKEI (Page 4) (Full) 
September 25, 2008 
 
The father of new Foreign Minister Hirofumi Nakasone is former Prime 
Minister Yasuhiro Nakasone. After graduating from Keio University, 
Nakasone worked at Asahi Kasei Co. When his father assumed the prime 
minister's post in 1983, he became his father's secretary. He was 
first elected to the Diet in the 1986 House of Councillors election. 
 
 
He has communication channels to South Korean prominent figures, 
including former President Chon Du Hwan, thanks to his father. He 
 
TOKYO 00002646  006 OF 013 
 
 
visited South Korea as the first Japanese education minister in the 
postwar period. The question is whether he can take advantage of the 
"Nakasone brand" in the international stage. 
 
He served as advisor on the education issue to then Prime Minister 
Yoshiro Mori. In the Mori cabinet, he pulled the strings in revising 
the Basic Education Law, as the responsible person for the national 
council on education reform. 
 
Although some have contended that he lacks gutsiness compared with 
his father and that his political presence is thin, he is said to 
have persistence as a politician. While supporting former Labor 
Minister Masakuni Murakami, who had influence over the Upper House, 
Nakasone often confronted Mikio Aoki, former chairman of the LDP 
caucus in the Upper House, who was Murakami's political rival. He 
gave up running in the 2004 LDP Upper House chairmanship election 
because Aoki strongly supported then Land, Infrastructure, and 
Transport Minister Chikage Ogi. 
 
Set off by his opposition to the postal privatization bill, many LDP 
members in the Upper House voted against the bill in August 2005. As 
a result, the bill was voted down in the Upper House. This led to 
dissolution of the Lower House and a general election. After that, 
he was unable to serve in any key post. 
 
It was the practice for an LDP Upper House member to serve in a 
cabinet post for only once. However, due to the decline of Aoki's 
influence, Nakasone is now serving his second term. 
 
He lives with his wife, son and daughter in the same house his 
father Yasuhiro Nakasone lives. He was raised under a strict 
discipline. He was a hockey player when he was a Keio University 
student and attended an Olympic training camp. 
 
9) Defense Minister Hamada, who loves music, is a member of the new 
national defense policy clique 
 
SANKEI (Page 4) (Full) 
September 25, 2008 
 
New appointed Defense Minister Yasukazu Hamada is the oldest son of 
former House of Representatives member Koichi Hamada, who was dubbed 
"a rough neck in the political world." Koichi never received any 
cabinet post. His son, Yasukazu, has served as deputy director 
general of the former Defense Agency, and director of the Liberal 
Democratic Party's National Defense Division. Along with Shigeru 
Ishiba and other LDP members, he is a member of a new breed of 
national defense advocates. Hamada as Defense Agency deputy director 
general gave a speech to Ground Self-Defense Force personnel 
deployed to Iraq, saying: "I want you as Self-Defense Force officers 
to show your samurai spirit." His remark caused a stir. 
 
Regarding reform of the Defense Ministry after a scandal involving a 
former administrative vice defense minister over the procurement of 
equipment, Hamada, as chairman of the LDP's Subcommittee on Reform 
of the Defense Ministry, put forth a set of recommendations, 
including the creation of ministerial assistant posts, demonstrating 
his capability for implementing policy. 
 
Contrary to his image of being a hardliner, he leads a band called 
"Gi ! nz." He is the vocal in the group. His predecessor Yoshimasa 
Hayashi is a member of the band. He and his wife have a son and a 
 
TOKYO 00002646  007 OF 013 
 
 
daughter. He enjoys playing golf and reading books. 
 
10) New Finance Minister and State Minister in Charge of Financial 
Services Shoichi Nakagawa (55): Known as a hawk in the party 
 
MAINICHI (Page 11) (Full) 
September 25, 2008 
 
Although he had held such posts as minister of the economy, trade 
and industry, agriculture minister, and party policy research 
chairman over a four year-period transcending the Koizumi and Abe 
administrations, since the Abe cabinet reshuffle last year, he has 
had no post. For the last year or so, he has headed a group he 
launched called the "True Conservative Policy Study Group," which is 
dedicated to continuing the policies of the former Abe Cabinet. 
Having also spent his time writing a book, he has had ample time to 
recharge his battery. 
 
Following the death of his father Ichiro Nakagawa, he ran for the 
Lower House of the Diet in 1983 and won his first seat at the age of 
¶30. He is known as the quintessential "hawk" in the party. As such, 
he has very close ties with Taro Aso and Shinzo Abe. 
 
11) Obuchi, 34, becomes state minister in charge of declining 
birthrate 
 
YOMIURI (Page 39) (Abridged) 
September 25, 2008 
 
Prime Minister Taro Aso announced the cabinet lineup himself in a 
press conference held yesterday afternoon at the Prime Minister's 
Official Residence (Kantei). Aso appointed Yuko Obuchi, 34, a mother 
of one child, to be state minister in charge of declining birthrate, 
making her the youngest cabinet minister in postwar history. Aso has 
also sent Shigeru Ishiba, 51, a tough debater who vied for the LDP 
presidency with Aso, to the Agriculture, Forestry, and Fisheries 
Ministry, which is being rocked by the tainted rice resale issue. 
With the establishment of the new cabinet, an election mode has 
gained momentum. 
 
Obuchi's son turns one today. He was born the day before former 
Prime Minister Yasuo Fukuda first formed his cabinet. Around 3 
o'clock yesterday afternoon, Obuchi received a telephone call 
notifying her that she was being appointed declining-birthrate 
minister. She was in her office in the Diet members' Office 
Building. 
 
"I just received a phone call from Prime Minister Aso himself," 
Obuchi said to reporters waiting outside her office. "I feel truly 
honored. I will work hard so that no one can tell me that I'm too 
young and have no experience." She also indicated that raising a 
child is no easy task and can be distressing. "I'd like to help 
create an environment where people with children can feel safe." 
 
Shortly after 6 o'clock in the afternoon, she was still watching the 
prime minister announce the cabinet lineup on television in her 
office. But when she received a call to report to the Kantei, she 
immediately left her office. 
 
She seemed somewhat tense at a press conference at the Kantei. Asked 
how she handles both being a lawmaker and a mother, she said: "It's 
not only me, other people are having a hard time, too. It's not 
 
TOKYO 00002646  008 OF 013 
 
 
something I can boast about. As minister in charge of declining 
birth rate, I want to integrate my own experiences into policy." 
 
Following the sudden death of her father, then Prime Minister Keizo 
Obuchi, Yuko Obuchi, who had never run for office, ran for his seat 
in June 2006 and won. She is now in her third term. In December 
2004, she married a producer at a commercial TV broadcaster. In the 
press conference, she expressed her aspirations while keeping her 
eyes on the script. At one point, she said about striking a balance 
between her job and childrearing, "I've been walking a tightrope." 
About the telephone call on her appointment, she said: "I was really 
surprised to receive the call from the prime minister himself." 
 
12) Abduction Minister Nakayama not reappointed; Abduction family 
group in shock 
 
MAINICHI (Page 28) (Abridged slightly) 
September 25, 2008 
 
By Kyoko Hirota 
 
Shigeo Iizuka, 70, chairman of the Association of the Families of 
Victims of Kidnapped by North Korea, met the press last night in 
front of his residence in Ageo City, Saitama Prefecture. Touching on 
the fact that Kyoko Nakayama was not reappointed as abduction issue 
minister, Iizuka said perplexedly: "We are shocked. Our group has 
put a lot of trust in her. We wonder who we should consult with in 
the future." 
 
Regarding the fact that the chief cabinet secretary is now 
concurrently responsible for the abduction issue, Iizuka said: "He 
is in a position to deal with a variety of issues. We are worried 
about whether he can advance the abduction issue as a top priority 
and if he can address the issue based on the government's position 
toward a settlement." 
 
Iizuka added: "The government has concluded that it will not forget 
the abduction issue, but that might be derailed by a Lower House 
dissolution for a snap general election. The situation has been 
changing so fast that we really don't know what to do. We just want 
the administration to deal with the matter appropriately." 
 
13) Voters think lawmakers don't understand how they live, skeptical 
about second-generation Diet members 
 
MAIHICHI (Page 28) (Abridged slightly) 
September 25, 2008 
 
What impression does the public have about the lineup of the Aso 
cabinet and what do they expect of the new cabinet ministers? The 
newspaper interviewed some voters in Shinbashi and Shinjuku. 
 
? Shinbashi 
 
Shoichi Yamamoto, the 51-year-old manager of a Japanese-style pub 
near JR Shinbashi Station, said: "Everything was decided behind the 
scenes." 
 
The dwindling economy has directly hit the pub. Visits to the pub by 
the average customer have declined from three times a week to twice, 
and the average sales-per-customer have dropped to the 1,000-yen 
level. "Serving dishes at low prices is our sales point, so we 
 
TOKYO 00002646  009 OF 013 
 
 
cannot raise prices," Yamamoto said. He also spoke on behalf of some 
salaried workers who were discussing politics there: "Their 
conversations usually center on their companies. They are all 
concerned about their livelihoods." Yamamoto quipped about the 
appointment of Yuko Obuchi as declining birthrate minister: "She was 
appointed to court public favor for the sake of the next election." 
 
Hideyuki Arai, 58, the owner of a trucking company in Minato Ward, 
who was shopping at a supermarket, took this view as he looked at 
such names as Hirofumi Nakasone, the new foreign minister, and 
Obuchi: "The lineup includes so many second-generation lawmakers. I 
wonder if the second- and third-generation Diet members, including 
Mr. Aso, understand how the general public lives. First of all, they 
have to do something about the economy." 
 
Eiko Asakawa, a 63-year old housewife in Shiki, Saitama Prefecture, 
on her way back from the hospital, noted about Obuchi: "She looks 
like the girl next door. The post should be given to a person with 
more experience." 
 
? Shinjuku 
 
A 33-year-old company employee from Mitaka, who was waiting for a 
friend in front of Shinjuku Station, said: "Because so many strings 
are attached to the LDP, the party cannot change politics no matter 
who becomes the prime minister. If an election was held now, I would 
vote for the DPJ. I want to see an Ozawa cabinet." 
 
Iyoko Kobayashi, 52, a shopper from Sano, Tochigi Prefecture, and 
the owner of a soba restaurant, said disapprovingly: "When using a 
car on business, I opt for self-serve gas stations in order to 
reduce costs. Politicians do not know the efforts of the general 
public." Recent cabinets were all short-lived. Kobayashi added: "You 
cannot remember the names of past prime ministers, can you? One 
cannot produce results unless he serves in the post as long as Mr. 
Koizumi did." 
 
"The Aso cabinet is a transitory government that will be in place 
until the next general election," a 40-year-old employee of a liquor 
maker from Saitama City noted. He also indicated that he cannot 
expect anything from the new cabinet. 
 
14) Main points from Prime Minister Aso's press remarks 
 
ASAHI (Page 4) (Full) 
September 25, 2008 
 
The following is a gist of Prime Minister Aso's remarks from 
yesterday's inaugural press conference. 
 
Opening remarks 
 
People are concerned about the nation's economy and their daily 
lives, and they are also distrustful of politics. As it stands, I'm 
taking a severe view of the fact that we are in a crisis. I will 
make Japan bright and strong. This is my task. I want to tell all 
cabinet ministers about the following points. We will push ahead 
with policy measures for the people. We will control the 
bureaucrats. We will devote ourselves to bettering our national 
interests. This is the best of all, I think 
 
Snap election 
 
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I will implement at least emergency economic stimulus measures for 
the current economic slump. Accordingly, I want the supplementary 
budget discussed. I will think about when to dissolve the Diet for a 
general election, after taking into consideration whether they (the 
opposition bench) will respond to deliberations on it. 
 
Maritime Self-Defense Force refueling in the Indian Ocean 
 
Nearly 90 PERCENT  of Japan's oil imports comes through the Indian 
Ocean. The world is fighting terrorism, and of course, as a member 
of the international community, we must resolutely fight terrorism. 
We'll have to carry out the refueling mission. The question is 
whether to use a second overriding vote with two-thirds in the House 
of Representatives, but I will make a decision after seeing how the 
Democratic Party of Japan (Minshuto) responds. 
 
End to fiscal, monetary segregation 
 
In the meeting of finance ministers from foreign countries, none of 
them would say they have nothing to do with monetary affairs. The 
finance minister should concurrently be in charge of monetary 
affairs. 
 
 
Raising state liability for basic pension fund and turning primary 
balance around 
 
We've promised (to raise state liability for the basic pension 
fund), so we will do that. Achieving the primary balance by 2011 was 
premised on an economic growth of 3 PERCENT . But now, our economic 
growth may be minus 3 PERCENT . The preconditions are now 
substantially upset, and we cannot ignore this. 
 
15) Aso cabinet sets sails: Diplomatic debut at UN General Assembly 
 
SANKEI (Page 5) (Abridged slightly) 
September 25, 2008 
 
The new Aso administration has gotten under way, but it is saddled 
with many challenges. Prime Minister Taro Aso will visit New York on 
September 25 to deliver a speech at the UN General Assembly. He 
leaves behind a mountain of pending issues including ones in the 
social security area that are closely related to the people's lives. 
How he will address those issues will likely have a major impact on 
the next Lower House election. 
 
This is the first time in three years for a Japanese prime minister 
to attend the fall session of the UN General Assembly, the last 
being Junichiro Koizumi. Prime Minister Aso will stress in his 
speech Japan's resolve to continue its participation in the war on 
terror, as well as to seek a permanent seat on the UN Security 
Council (UNSC). His schedule is very tight. He will leave New York 
in early hours of the 27th without staying there overnight. He wants 
to demonstrate a showy summit diplomacy, having in mind the effect 
on the snap election that will follow his dissolution of the Lower 
House just ahead. 
 
The UN General Assembly was also the venue for then Prime Minister 
Keizo Obuchi's first overseas trip in 1998. Aso will separately meet 
with UN Secretary General Ban Ki Moon and the prime ministers of 
Iraq and Australia during his 10-hour stay in New York. There will 
 
TOKYO 00002646  011 OF 013 
 
 
be no meeting with President Bush, because of a scheduling 
conflict. 
 
In a speech to be delivered at the UN General Assembly, Aso will 
stress Japan's resolve to continue to contribute to war on terror in 
such countries as Afghanistan, as well as seek support for Japan's 
entry into the UNSC. He is also expected to indicate his 
determination for Japan to take the lead in combating global 
warming, based on the achievements at the Hokkaido Lake Toya Summit 
(G-8) in July. 
 
The government sees the prime minister's first foreign trip as a 
chance for him to showcase his diplomatic plan, according to a 
Foreign Ministry source. Many Liberal Democratic Party (LDP) members 
pin high hopes on Aso's foreign trip, with one saying, "This will be 
an opportunity for us to sell the new prime minister to the 
international community and make our appeal to the public prior to 
the general election." 
 
However, whether the international community will seriously take the 
prime minister's resolve is premised on whether his administration's 
political base is solid or not. Aso is the fourth Japanese prime 
minister since the terrorist attack on the U.S. seven years ago. 
Whether Japan will continue refueling operations by the Maritime 
Self-Defense Force in the Indian Ocean, which expire in January 15, 
2009, remains unclear. 
 
In addition, it is conceivable that the LDP may fall into the 
opposition camp in the upcoming general election. One diplomatic 
source said, "The international community will not seriously listen 
to the Japanese prime minister's statement under the present 
conditions. Japan cannot loudly call for reforming the UNSC, 
either." 
 
16) Refueling issue likely to set off sparks between Japan, U.S. 
 
NIKKEI (Page 2) (Full) 
September 25, 2008 
 
One of the pressing diplomatic challenges for new Prime Minister 
Taro Aso will be steering Japan's strained relations with the United 
States over cooperation on antiterrorist operations in Afghanistan. 
The Maritime Self-Defense Force has been tasked with refueling 
activities in the Indian Ocean under a time-limited law that is set 
to expire in January. There is no prospect yet in sight, however, 
for the law to be extended. The United States also has urged Japan 
to make still greater contributions in such a form as sending 
Self-Defense Forces troops to Afghanistan. These bilateral issues 
continue to smolder. Prime Minister Aso, who has experience as 
foreign minister, will now be tested on whether he can find a way 
out of this predicament. 
 
Aso will depart this afternoon for New York to attend the United 
Nations General Assembly, where he will deliver a speech and clarify 
Japan's contributions to the war on terror. 
 
Meanwhile, the government has decided to withdraw Air Self-Defense 
Force troops from Iraq. As it stands, refueling will be the only 
form of contribution left in the SDF's antiterror cooperation. Aso 
will try to pass a bill amending the law to extend the MSDF's 
refueling mission. However, it will be difficult to do with a snap 
election for the House of Representatives close at hand. 
 
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17) Gates may have aimed remark at Japan: Those allies not 
dispatching troops to Afghanistan should provide funding 
 
YOMIURI (Page 7) (Full) 
September 25, 2008 
 
WASHINGTON-U.S. Secretary of Defense Gates testified yesterday 
before the Senate Committee on Armed Services about the situation in 
Afghanistan. "This is a good chance for those allies that have not 
sent combat troops to Afghanistan to provide the Afghan forces with 
financial assistance," Gates stated before the committee. He also 
clarified that the United States hopes for contributions from U.S. 
allies in Asia, so he is believed to be calling on Japan for 
additional funding. 
 
The United States is growing frustrated with the possibility that 
Japan may discontinue the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. On the other hand, Japan will likely 
find it difficult to respond if the United States is asking it to 
provide military assistance in the financial area. 
 
In his testimony, Gates referred to a plan for Afghanistan to double 
its 65,000-strong armed forces to 122,000 as a pillar of public 
security in that country. "To that end, they will need 2-2.5 billion 
dollars a year," Gates said. "But," he added, "the Afghan 
government's budget is only 700 million dollars." 
 
18) DPJ outlines roadmap for manifesto, calling for promptly 
abolishing provisional gasoline tax 
 
ASAHI (Page 1) (Full) 
September 25, 2008 
 
The Democratic Party of Japan (DPJ) has outlined a roadmap for its 
policy manifesto for the next House of Representatives election. The 
party classifies the four years from the year when it seizes 
political power until the expiration of its term into three stages: 
the initial year (fiscal 2009); the second term (fiscal 2010-2011); 
and the third term (fiscal 2012). It proposes abolishing the 
provisional gasoline tax in the initial year and implementing a plan 
to unify the current pension systems in the third term. 
 
The roadmap explains that 22 trillion yen needed to finance the 
priority policies proposed in the manifesto will be raised in the 
third term by revising the budget. The main opposition party plans 
to finalize by the end of this month its manifesto that specifies 
the scale of financial resources in each term in accordance with the 
roadmap. 
 
According to the roadmap, the DPJ would begin addressing the 
challenge of scrapping the provisional tax right after it grabs 
power. Emphasizing that this measure will immediately reduce 
gasoline prices by about 25 yen per liter and contribute to lower 
gas prices, the party is going to present the measure as "the fruit 
of the change of government." 
 
Regarding the pension-unification plan, it will take time for 
designing a system, so the DPJ has decided to start work in fiscal 
¶2012. 
 
In reforming the medical system, the party will aim at abolishing 
 
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the health insurance system for people aged 75 or older in the 
initial year and unifying the medical insurance systems in the 
second term or later. To create a subsidy system for individual 
farmers and a child-rearing support system, enacting related bills 
will become necessary, so the party intends to carry them out in the 
second term. The roadmap notes that the plan to waive expressway 
tolls should be partially started in the initial year. 
 
SCHIEFFER