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RUCNDT/USMISSION USUN NEW YORK 1788

UNCLAS SECTION 01 OF 14 TOKYO 002653 
 
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 09/25/08 
 
INDEX: 
 
(1) U.S. nuclear-powered carrier George Washington enters port of 
Yokosuka in first such deployment in Japan (Asahi) 
 
(2) Nuclear flattop deployment-Anxiety over safety (Part 2): Barrier 
to disaster contingency planning; Gulf unfilled over anticipated 
accidents (Tokyo Shimbun) 
 
(3) Three scenarios for Aso administration on timing for dissolving 
Lower House, according to progress in deliberations on extra budget 
bill, public support (Asahi) 
 
(4) Scanner column: Both ruling coalition, DPJ aiming to please 
public; Policy made without debate on revenue sources (Yomiuri) 
 
(5) Special contribution by Yukio Okamoto (Part C): Japan at 
crossroads to determine its future course (Sankei) 
 
(6) MSDF refueling mission a test for national interests (Sankei) 
 
(7) Japanese business circles concerned about China's new regulation 
on disclosure of secret information on IT equipment (Yomiuri) 
 
(8) U.S. financial crisis likely to change map of Japan's business 
world: Can Japanese banks make best use of lessons learnt from 
collapse of bubble economy? (Tokyo Shimbun) 
 
(9) Prime Minister's schedule, Sept. 24 & 25 (Nikkei) 
 
ARTICLES: 
 
(1) U.S. nuclear-powered carrier George Washington enters port of 
Yokosuka in first such deployment in Japan 
 
ASAHI (Top play) (Excerpts) 
Eve., September 25, 2008 
 
The U.S. Navy's nuclear-powered carrier George Washington (GW) 
entered the port of Yokosuka City in Kanagawa Prefecture this 
morning for deployment at the Yokosuka Naval Base. This is the first 
time since a U.S. Navy carrier was deployed to Japan in 1973 for a 
nuclear-powered carrier to be home ported in Japan. The U.S. armed 
forces are moving ahead with plans to make the Pacific a stronghold 
for the war on terror and other objectives, and this deployment is 
part of the strengthening of its military power (in the region). 
 
The new U.S. carrier being deployed to Japan is the fourth to be 
home ported at Yokosuka since the Midway. The GW replaced the Kitty 
Hawk, a conventionally-powered carrier, which will soon be retired. 
The vessel in May was damaged by fire, set off by seamen smoking 
cigarettes, and its arrival was delayed. The U.S. armed forces has 
in its arsenal 10 nuclear-powered carriers, but this is the first 
one to be deployed permanently overseas. A nuclear-powered carrier, 
which uses enriched uranium, has not need for being supplied with 
fuel. It can carry a high amount of ammunition and fuel used by its 
jets. For that reason, it has a combat capability of twice the time 
span of conventional carriers that operate on fuel oil. 
 
At the ceremony welcoming the arrival, U.S. Ambassador to Japan 
Schieffer said: "The United States does not have a more important 
alliance than the one with Japan. This vessel will heighten Japan's 
 
TOKYO 00002653  002 OF 014 
 
 
national security and increase the national security of the U.S., as 
well. Since its safe operation is guaranteed, it can operate to the 
extent of its capability." 
 
(2) Nuclear flattop deployment-Anxiety over safety (Part 2): Barrier 
to disaster contingency planning; Gulf unfilled over anticipated 
accidents 
 
TOKYO SHIMBUN (Page 26) (Full) 
September 25, 2008 
 
On Sept. 5, ahead of the arrival of the USS George Washington, a 
nuclear-powered aircraft carrier of the U.S. Navy, at the Yokosuka 
base, an executive from the All Japan Garrison Forces Labor Union 
(Zenchuro) was at the Defense Ministry in Ichigaya, Tokyo, where he 
vented his anger on a senior official of the ministry, who was 
hesitant about planning safety measures. 
 
"You may believe nuclear-powered warships are accident-free," the 
labor union leader told the official. "But," he went on, "you'd 
better change that way of thinking." He added, "You should take 
safety measures premised on accidents." 
 
The U.S. Navy's Yokosuka base has a dockyard called the Ship Repair 
Facility (SRF), where aircraft carriers and other warships undergo 
maintenance and repair. Japanese employees working there number 
about 1,800. Zenchuro has demanded that the base should have all 
Japanese workers there carry a compact dosimeter with them. However, 
the U.S. Navy will not grant the demand, explaining that Yokosuka 
also comes under U.S. safety standards. 
 
In the United States, only those who work within nuclear-powered 
warships' restricted areas near their reactors are required to carry 
dosimeters with them. Those working in other areas-both in and 
outside nuclear-powered warships-are not required to do so. There is 
no sign to indicate that the U.S. military will allow Japanese 
workers, who have no work to do within the restricted areas, to 
carry dosimeters. 
 
The U.S. Navy says there is no radiation leakage outside the 
restricted areas of its nuclear-powered warships. This account comes 
from the U.S. Navy's confidence in the structural safeguards of its 
nuclear-powered warships. However, the U.S. Navy has never 
substantiated its word about their safety, citing confidentiality as 
a reason. Due to such unaccountability, there are deep-seated 
concerns among the base workers about being exposed to radiation at 
work. They are also growing distrustful of the Defense Ministry for 
it does not seem to be working on the U.S. military to persuade it 
to let them carry dosimeters. 
 
A man working at the SRF for over 20 years lamented: "If we are 
exposed to radiation, we need to know when and where we were 
exposed. Otherwise, we will encounter troubled when we apply for 
workers' accident compensation insurance. If we carry dosimeters 
with us, we can also prove there is safety." 
 
There is also a deep gulf between Japan and the United States in 
their awareness of how to address nuclear disasters. 
 
In September 2006, the USS Honolulu, a nuclear-powered submarine, 
called at the Yokosuka base. After the Honolulu left port, a trace 
of radioactive substance was detected from seawater sampled near the 
 
TOKYO 00002653  003 OF 014 
 
 
Yokosuka base. Later on, it was brought to light that the USS 
Houston, also a nuclear-powered submarine, had leaked radiation. 
However, the U.S. Navy stressed that it was not an accident, denying 
its radiological effects on public health and the environment. 
 
Based on the actual results of operation over the past 50 years, the 
U.S. Navy says there can be no nuclear reactor accident. This year 
as well, Yokosuka City therefore could not make a scenario for its 
joint disaster drill with the U.S. Navy in anticipation of a nuclear 
reactor accident. 
 
Yokosuka City compromised so as to ensure that the U.S. Navy 
provides information without delay. However, there were strong calls 
from among the city's local residents for an evacuation drill 
anticipating a nuclear reactor accident. The city therefore had to 
plan it separately. 
 
The evacuation drill is without participation from the U.S. Navy, 
which is the party concerned. The anxieties of Yokosuka's 
base-neighboring residents cannot be dispelled. 
 
(3) Three scenarios for Aso administration on timing for dissolving 
Lower House, according to progress in deliberations on extra budget 
bill, public support 
 
ASAHI (Page 4) (Full) 
September 25, 2008 
 
The Aso administration, which was inaugurated yesterday, will have 
to soon decide on when to dissolve the House of Representatives and 
hold a general election. The administration will make a decision, 
reflecting progress in deliberations on the fiscal 2008 
supplementary budget bill and public support for the 
administration. 
 
¶1. Voting on Oct. 26 if talks between both camps collapse before 
start of deliberations 
 
If the new cabinet receives high public support and sees the 
Democratic Party of Japan (DPJ) and other opposition parties 
unwilling to cooperate in enacting the extra budget bill, the 
government would dissolve the Lower House at an early date. In this 
scenario, the prime minister would dissolve the Lower House on Oct. 
3 just after a representative interpellations session in the 
extraordinary Diet session. It would set the dates of official 
announcement and voting for the election at Oct. 14 and Oct. 26, 
respectively. This is the shortest course for the government to be 
able hold the election while public support for it is still high. 
 
Premised on this scenario, the ruling coalition has made 
preparations under the lead of Election Committee Chairman Makoto 
Koga. 
 
In the course of deliberations on the extra budget bill, however, 
the opposition bloc will inevitably step up attacks against the 
government over the pension record-keeping fiasco, illegal 
transactions in tainted rice, and other problems. A veteran New 
Komeito lawmaker voiced apprehension that in this case, gaffes will 
prove fatal to the ruling coalition. 
 
This scenario is also aimed at dissolving the Lower House before the 
DPJ finishes preparations for the election. 
 
TOKYO 00002653  004 OF 014 
 
 
 
¶2. Voting in early November if deliberations protracted in Upper 
House 
 
Prime Minister Aso, who gives priority to buoying up the economy, is 
eager to enact the second budget bill into law. Reflecting his wish, 
the ruling camp has begun looking into holding a Lower House Budget 
Committee session on Oct. 6, with no dissolution on Oct. 3. 
 
If the opposition side cooperates in enacting the extra budget bill 
and reaches an agreement with the ruling coalition in several days 
of deliberations, the government might dissolve the Lower House in 
early October and carry out the election on Nov. 2 or 9. Some 
suppose that if the date is set at Nov. 2, voter turnout might be 
low, advantageous to the ruling coalition, because Nov. 1, 2 &3 are 
holidays. 
 
Many ruling party members, however, expect the opposition bloc to 
resort to tactics to prolong deliberations in a move to prevent the 
bill from clearing the Diet in the opposition-controlled House of 
Councillors, as Aso said in a press conference yesterday, "We were 
often betrayed by the opposition bloc over its commitments." In 
actuality, DPJ Diet Affairs Committee Chairman Kenji Yamaoka 
proposed deciding through talks to dissolve the Lower House, but 
many in the opposition camp are still calling for thorough 
deliberations. 
 
If the opposition bloc continues to refuse voting on the bill in the 
Upper House, the prime minister might decide to dissolve the Lower 
House while emphasizing the opposition's uncooperative stance, 
before getting the bill through the Diet. In this case, the voting 
date is likely to be set at Nov. 2 or 9. On the 4th, the U.S. 
presidential election will take place. Many in the ruling camp, out 
of fear that momentum might gather for a change of government if 
Democratic candidate Barack Obama wins the election, are now calling 
for voting on the 2nd. 
 
The New Komeito and the Soka Gakkai initially envisioned voting on 
Nov. 9, but they have begun to say that voting on Oct. 26 is too 
early. They are now eyeing Nov. 2. 
 
¶3. Dissolution in November or later if priority given to enacting 
extra budget bill 
 
Meanwhile, some ruling members see the prime minister as aiming to 
get the extra budget bill through the Diet to the last. To have the 
bill enacted over the resistance of the opposition camp, it will be 
necessary to apply the article stipulating that if the Upper House 
fails to take final action within 30 days after the receipt of the 
budget bill passed by the Lower House, the decision of the Lower 
House shall be the decision of the Diet. In this case, Lower House 
dissolution will be put off to November or later. 
 
The New Komeito, backed by Soka Gakkai, does not want to see the 
voting date delayed to Nov. 9 or later. Ruling party members have 
begun preparations, setting up election offices. The more the day of 
Lower House dissolution is delayed, the more the risk of a drop in 
public support for the cabinet will increase. It will not be easy 
for the administration to decide to delay dissolution. 
 
(4) Scanner column: Both ruling coalition, DPJ aiming to please 
public; Policy made without debate on revenue sources 
 
TOKYO 00002653  005 OF 014 
 
 
 
YOMIURI (Page 3) (Full) 
September 24, 2008 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner 
New Komeito agreed yesterday on a set of policies to be pursued 
under a Taro Aso administration. With an eye on the looming House of 
Representatives election, most of the policies, including an income 
tax cut and review of the medical system for people aged 75 or 
older, are aimed to please the public. Ichiro Ozawa, president of 
the main opposition Democratic Party of Japan (DPJ), has come up 
with priority policy items, which would cost totaling 22 trillion 
yen, as his platform to take over the reins of government. However, 
neither the LDP nor the DPJ have clarified where they would find the 
revenue sources for implementing their policies. There remain many 
hurdles for them to overcome. 
 
LDP, New Komeito refers to increase on burden on public 
 
At a New Komeito convention yesterday in Tokyo, Aso delivered a 
speech, in which he stressed: "The financial crisis has begun to 
affect the economy. So, we will have to implement the emergency 
economic package, which was compiled by the LDP and New Komeito." 
Aso's speech was met by an explosion of applause. 
 
A main feature of the economic rescue package is a flat-sum tax cut 
in the income and residential taxes, which were requested by the New 
Komeito. Then LDP Secretary General Aso accepted the New Komeito's 
demand. A scale of 2 trillion yen is envisioned as the cut. 
 
The administrative agreement reached on Sept. 23 between the LDP and 
New Komeito specifies first the steady implementation of the 
economic package. It incorporates such items as lending money to 
small and medium-sized companies facing capital shortfall, improving 
measures for people receiving no pension benefits or small amounts, 
as well as looking into the possibility of providing free infant 
care, as the New Komeito has demanded. 
 
New Komeito leader Akihiro Ota stated in a press conference 
yesterday: 
 
"The New Komeito protests the daily lives of people. Which party can 
help people out of straitened circumstances would become a campaign 
issue for the next Lower House election." 
 
Aso has clarified a stance of giving priority to revitalizing the 
economy for a while, putting off fiscal reconstruction. In addition, 
he also said during his campaign for the LDP presidential race that 
he would review the medical system for people aged 75 or older. The 
sudden announcement of his decision appears to be aimed at reducing 
negative factors for his party going into the Lower House election. 
 
 
Although the ruling coalition has decided to implement the flat-sum 
tax cut in fiscal 2008, it has postponed a conclusion on those who 
would be subject to the flat-sum tax cut, the amount to be reduced, 
and how to secure necessary revenue sources. 
 
It is believed that a huge amount of public funds is required to 
reduce the sense of unfairness between those who pay taxes and the 
elderly, reviewing the health care system for the elderly. 
 
 
TOKYO 00002653  006 OF 014 
 
 
The ruling coalition's set of policies does not include any items 
aimed at boosting the public's burden. As to measures to secure 
revenue resources, the ruling camp says that the local branches of 
the government offices should be abolished or scaled down, and that 
wasted tax money should be cut by strictly reviewing general and 
special account budgets. 
 
A senior LDP member lamented, saying: "It seems that we are 
reviewing all policies that would be attacked by the DPJ. We should 
not take an obsequious attitude." 
 
Although the LDP has severely criticized the DPJ's 22 trillion yen 
platform as being pork-barrel largesse and having no revenue sources 
to back it, some in the LDP said that they could not criticize the 
DPJ. 
 
Regarding a review of the medical system for people aged 75 or 
older, one New Komeito member said: 
 
"Our supporters have finally understood the system by our scrupulous 
explanations. If we say the system would be reviewed, they will be 
confused. This could lead to our being attacked by the opposition." 
 
22 trillion yen of reserve funds insufficient for DPJ to implement 
policies 
 
The special feature of the platform presented on Sept. 21 by DPJ 
President Ozawa is that the priority policy items would be 
implemented in three stages. The aim is to make clear the image how 
the policies should be implemented. Ozawa has judged that it would 
be easier to secure funds if they are implemented gradually. He 
plans to decide this month on a roadmap to implement them and 
include the roadmap in the party's manifesto (set of campaign 
pledges) for the next general election. 
 
Deputy President Naoto Kan told reporters yesterday in Akita City: 
 
"We can calculate concrete costs for the platform for taking over 
political helm. For the first fiscal year, 6 to 10 trillion yen 
would be needed; and a little more would be increased for the second 
fiscal year, and a total of 22 trillion yen would be needed 
subsequently. " 
 
The DPJ's manifesto for last year's Upper House election specified a 
policy of allocating 15.3 trillion yen for such measures as support 
for child-rearing. Since the abolishment of provisional tax rates 
such as a gasoline tax is added to that manifesto, the amount of 
revenue sources necessary to implement the manifesto has ballooned 
to 22 trillion yen. The DPJ appears to be aiming at competing 
against the Aso government because Aso has now prioritized 
revitalizing the economy rather than structural reforms. 
 
The question is how to find the 22 trillion yen needed. Ozawa 
explained: "We will gradually shift 22 trillion yen, or 10 PERCENT 
of the 212 trillion yen of the government's general and special 
account budgets, to fund the implementing of the policies." 
 
The DPJ has said that budgets for projects and areas whose 
priorities are low would be reduced. However, if the budgets are 
actually slashed, lawmakers having close ties with those projects 
and areas will be certain to oppose the idea. 
 
 
TOKYO 00002653  007 OF 014 
 
 
Therefore, it is uncertain whether the DPJ can specify budget items 
in its manifesto. 
 
There is a view in the DPJ that reserve funds (maizoukin), including 
surpluses from the special account budgets, should be used for the 
time being. There are limits to the temporary use of the reserve 
funds because most of the DPJ's policies are permanent measures. 
Hiromitsu Ishi, president of the Open University of Japan, pointed 
out: 
 
"Under the present law, special account budgets are required to be 
used for specific purposes. So, they cannot be used freely. Since 
how the DPJ will secure the 22 trillion yen has yet to be made 
clear, it is hard to believe that the party will be able to 
implement its policies. If the DPJ aims to take over the reins of 
government, it should talk honestly about (the fiscal condition) to 
the public." 
 
(5) Special contribution by Yukio Okamoto (Part C): Japan at 
crossroads to determine its future course 
 
SANKEI (Pp. 1-3) (Abridged slightly) 
September 19, 2008 
 
Japan has excellent nongovernmental organization (NGO) members. In 
Afghanistan, NGO members have removed antipersonnel mines, taught 
agricultural methods, including irrigation, engaged in school 
education, and provided medical assistance. Without any governmental 
backing or high salaries like civic servants, they have worked only 
with a sense of mission. There are female members, as well. Several 
years ago when the Japanese government workers were not allowed to 
go out of the capital of Kabul, I saw several Japanese female 
members working hard in remote places like Herat. I saw similar 
scenes in Iraq, as well. 
 
Western governments have given careful protection and financial 
support to their own NGOs. They have given assistance to foreign 
NGOs, as well. Some Japanese NGOs have received more funds from the 
U.S. government than from the Japanese government. The Japanese 
government's support for NGOs is very small -- 0.2 PERCENT  of the 
official development assistance (ODA) budget. 
 
When American NGO workers are put in danger, a U.S. military 
helicopter would come to rescue them. The helicopter is boarded by 
American NGO workers and local workers in that order, so there would 
be no room for Japanese NGO workers. Japanese nationals would have 
to come up with evacuation methods independently. The government 
should enhance its support for NGOs fundamentally so that they can 
purchase vehicles and wireless applications to be used in time of an 
emergency and can step up their support activities throughout the 
world. 
 
? Heroic aid workers 
 
The war on terror in and around Afghanistan is a matter of great 
concern to the international community. Some 40 countries have sent 
troops, border guards, and police officers to Afghanistan in 
compliance with a request from President Hamid Karzai. They are now 
conducting activities to secure security, which is essential for 
national reconstruction. The International Security Assistance Force 
(ISAF) consists of 53,000 troops from countries around the world. 
 
 
TOKYO 00002653  008 OF 014 
 
 
Japan is not one of them. When asked by Afghan citizens why Japanese 
troops do not come, Japanese NGO members reportedly answer, "You got 
us instead." 
 
I met a brilliant young Japanese man in Phnom Penh in 1992. After 
speaking of his dream of bringing peace to Cambodia, the young man 
said: "Japan does not do anything, so we must work hard." His name 
was Atsuhito Nakata. Tanaka, who was working for peace-building in 
Cambodia as a UN volunteer, was shot to death by guerrillas in the 
following year. 
 
Japan boasted being the world's largest aid provider in the 1990s. 
Subsequently seeing a drop of 40 PERCENT  in the amount, Japan has 
been overtaken by major Western countries. One ODA project after 
another has been terminated. Such a situation may take a toll on 
front-line aid workers. Aren't workers from the Japan International 
Cooperation Agency (JICA) or Japan Overseas Cooperation Volunteers 
(JOCV), who extend technological cooperation free of charge, bearing 
greater burdens? 
 
The government's decision not to join peacekeeping operations or to 
back away from economic cooperation may spur the heroic sense of 
mission of thoughtful NGO and aid workers. Forcing governmental 
responsibility onto individual goodwill and courage is the state's 
negligence. 
 
? Not even monetary contribution 
 
The opposition bloc is trying to withdraw the refueler from the 
waters off Somalia in the Indian Ocean based on absurd logic. 
Withdrawal from the Indian Ocean means Japan's departure from the 
war on terror and the international mutual aid society, forcing its 
duty of protecting its own commercial vessels onto other countries. 
 
In 1991, Japan tried to contribute to the Gulf War by offering money 
alone. As a result, the country came under global criticism and 
ridicule. This time around, Japan has not even offered money. As I 
wrote for this newspaper on Nov. 28, 2007, there are many things 
Japan can do besides dispatching SDF vessels as long as there is a 
political will. But Japan has not done any of those things. 
 
Is Japan going to turn itself into a state that timidly hopes that 
its people and vessels will not be attacked by terrorists and 
pillagers? Is Japan going to become a state that continues praying 
that no evil will fall on it? Does Japan believe that the day will 
come when terrorists and pillagers say, after reading Article 9 of 
the Constitution, that they will stay away from Japan? 
 
Seeing NGO and JOCV workers making great achievements at various 
parts of the world, I do not think there is any need for Japan to 
become such a state. Japan has many young people with courage and a 
sense of mission. What kind of country should we hand over to them? 
 
We are probably at the most critical postwar crossroads to determine 
the future course of Japan. 
 
(6) MSDF refueling mission a test for national interests 
 
SANKEI (Page 9) (Abridged slightly) 
September 24, 2008 
 
By Satoshi Morimoto, professor, Takushoku University graduate 
 
TOKYO 00002653  009 OF 014 
 
 
school 
 
Still breeding ground for terrorists 
 
Although the political situation in Japan is chaotic, I want to see 
those responsible for state affairs fairly and squarely discuss what 
serves Japan's national interests in the international community. In 
order to maintain peace and stability, lawmakers must have sharp 
insights and the ability to think strategically about possible 
changes. Further, if the government fails to carry out what must be 
done, the country would not be able to pursue its national interests 
or win international credibility. The economy will not pick up, 
either. Achieving freedom and peace takes determination and efforts 
to defend them, even if it means risking some things and paying the 
due price. 
 
For instance, the government must stand firm against insurgents like 
those who killed Kazuya Ito, a Japanese aid worker, in Afghanistan 
recently. Still unable to maintain law and order independently, 
Afghanistan has become a breeding ground for terrorists, and the 
Taliban has now regained influence. That is why some 40 countries, 
including Western countries, are engaged in security operations in 
Afghanistan, the main battlefield in the war on terror. 
 
In order to maintain the security of the free world, Islamic 
terrorists in and around Afghanistan must be contained. That is why 
those countries are conducting the antiterrorism operations despite 
the fact that they have already lost over 900 lives. The United 
States is expected to strengthen the operations in Afghanistan 
regardless of who wins the presidency. Many European counties have 
also decided to send additional troops. 
 
Coalition vessels helped Japanese ships 
 
Many countries have deployed naval vessels to the Indian Ocean in 
order to prevent terrorists from taking opium out of this area to 
earn hard currency and from bringing arms and ammunition into this 
area. To support these maritime operations, Japan has deployed its 
vessels to the Indian Ocean for seven years. Japan has redeployed 
its vessels because the law for this mission was enacted in 
mid-January this year after extending two extraordinary Diet 
sessions. The Maritime Self-Defense Force has already refueled 
foreign naval vessels on over 40 occasions. Terrorists have learned 
that information, and the MSDF has not accomplished much over the 
last year when compared to earlier times. Still, the fact remains 
that the MSDF mission is vital for international peace and 
stability. 
 
Japan is a maritime state. The country also imports about 90 PERCENT 
 of its crude oil from the Middle East. Tanker routes in the Indian 
Ocean are a lifeline supporting our comfortable livelihood. Some 
Japanese ships have encountered pirates in this sea and have been 
helped by foreign naval vessels engaged in the Maritime Interdiction 
Operations. 
 
While the free world is conducting its antiterrorism activities in 
Iraq, Afghanistan, and the Indian Ocean, Japan is not allowed or 
should not even try to withdraw from them. It is crystal clear how 
the option of dropping out of the joint effort with countries 
sharing such values as freedom, peace, and democracy will undermine 
Japan's national interests. 
 
 
TOKYO 00002653  010 OF 014 
 
 
Lawmakers not thinking of the future of the country or the people's 
livelihood cannot be called true legislators. Political parties 
taking action irrespective of national interests cannot be called 
true political parties. If Japan failed to extend the Antiterrorism 
Special Measures Law, the MSDF's withdrawal from the Indian Ocean 
might coincide with the inauguration of the next U.S. president on 
Jan. 20, 2009. In view of the unclear future course of North Korea, 
the security of Japan in Eat Asia, and the Japan-U.S. alliance, it 
is impossible for Tokyo to opt for such an option, however. 
 
Options other than refueling 
 
Even if the activities in the Indian Ocean are to be continued, that 
does not mean Japan's cooperation and contribution is sufficient. 
International cooperation in Afghanistan serves Japan's national 
interest, and that requires a clear national strategy. Japan must 
realize that contributing to the people of Afghanistan is its 
responsibility as a member of the international community. 
 
There are many things Japan can do in Afghanistan. Dispatching C-130 
cargo aircrafts and transport helicopters for an airlift mission is 
one option. Forming a provincial reconstruction team (PRT) to extend 
military-civilian cooperation is another option. It is also 
conceivable to provide medical and logistical support. The question 
is, whether political leaders have the firm political will and 
whether they can win public support for the enactment of 
legislation. Whether or not they can endure the risks and price 
associated with the deployment of the SDF is also an important 
factor. 
 
Pursuing national interests involves some risks. A country averting 
risks without a strong resolve cannot win international respect or 
trust. This concerns the responsibility and dignity of a state. If 
Japan cannot extend the Antiterrorism Law, its future will be bleak, 
and it might endanger the Japan-U.S. alliance, as well. Getting the 
supplementary budget past the Diet is important, but Japan needs to 
realize that for its future, it is far more important to demonstrate 
to the rest of the world its resolve and its ability to continue the 
international cooperation. 
 
(7) Japanese business circles concerned about China's new regulation 
on disclosure of secret information on IT equipment 
 
YOMIURI (Page 11) (Abridged slightly) 
September 24, 2008 
 
Members of the Japan-China Economic Association's (JCEA, chaired by 
Fujio Cho, Toyota Motors chairman) delegation to China on September 
23 met with senior officials of the Ministry of Commerce. They 
conveyed a strong concern harbored by Japan's economic circles about 
China's plan to establish a new system that forces the disclosure of 
secret information regarding IT equipment. However, the Chinese side 
stood firm in their stance of introducing the new system in May 2009 
as planned. Japan, the U.S. and European countries are increasingly 
opposing the introduction of a system that is unprecedented in the 
world. Future talks are expected to face complications. 
 
Shigeji Ueshima, vice chairman of the JCEA and an advisor to Mitsui 
& Co. during the talks strongly asked the Chinese side to take a 
second look at the plan, noting: "Such a system could serve as a 
disturbing factor for bilateral cooperation for trade and investment 
in the high-tech area. It will also have an impact from the 
 
TOKYO 00002653  011 OF 014 
 
 
perspective of protecting intellectual property rights." 
 
However, the Commerce Ministry Asian Affairs Bureau Director General 
Lu Kejian directly confronted, replying: "The envisaged system is in 
line with international standards. It is also in compliance with 
regulations set by the World Trade Organization (WTO)." Regarding 
intellectual property rights, too, Lu said, "Our planned system also 
stipulates confidentiality regarding its application." The talks 
thus ended in failure. 
 
The IT regulation planned by China is aimed at the forcible 
disclosure of the source code, the design of software. This would 
threaten companies' intellectual property rights. There is also 
concern in security terms, because it means that the products of 
exporting companies are to be exposed completely under such a 
system. 
 
The exposure of the source code of Windows could give rise to a 
sharp increase in hackers and attacks by computer viruses. The new 
regulations have thus contents that could meet opposition from all 
over the world, as a top person in a leading precision equipment 
manufacturer said. 
 
Detailed rules on implementation 
 
Concerning the objective of the new system, the Chinese side during 
the talks explained that it is aimed at preventing scams and the 
circulation of harmful information. 
 
Many products subject to the system are related to the Internet and 
networks. China appears to aim to strengthen information control 
within the country with authorities obtaining the source codes of 
software. 
 
The immediate focus is on the details of the rules on the 
implementation of the system. That is because detailed rules will 
stipulate what products are subject to what rules. 
 
Detailed rules were at first supposed to be released in May. The 
timetable was, however, postponed due to growing opposition to the 
new system from Japan, the U.S. and Europe. The Ministry of Economy, 
Trade and Industry intends to press ahead with talks with China in 
an effort to prevent China from setting serious rules. 
 
Special treatment seen in past 
 
However, there have been cases in which China treated specific 
companies as exception to its regulations. For this reason, various 
countries intend to call on China to withdraw the planned system in 
a cooperative way. However, some countries are trying to hold 
bilateral talks in an effort to prevent their own countries' 
companies from being placed at a disadvantage. 
 
If the talks remain unsettled by the time when the system is put 
into practice -- May, 2009, Japan and other countries may file a 
complaint against China with the WTO on the charge of violating the 
WTO agreement. 
 
(8) U.S. financial crisis likely to change map of Japan's business 
world: Can Japanese banks make best use of lessons learnt from 
collapse of bubble economy? 
 
 
TOKYO 00002653  012 OF 014 
 
 
TOKYO SHIMBUN (Page 9) (Full) 
September 25, 2008 
 
The financial crisis that started in the United States is now 
redrawing the map of the financial world in both Japan and the U.S. 
Japanese financial institutions are moving ahead in a bid to boost 
their overseas operations, taking the advantage of worsening 
business conditions in America. However, in the past, Japanese 
financial institutions failed in their initial drive to advance into 
the overseas market, so it is unknown whether they can become 
international business players, taking advantage of the current 
financial crisis. 
 
Reporting on the Japanese banks' aggressive moves, the Wall Street 
Journal headlined, "The Japanese are back!" Japanese financial 
institutions were once saddled with massive amounts of bad loans, 
but they now want to advance into foreign countries or expand 
business operations by using as leverage their investments in or 
takeovers of faltering European and U.S. financial institutions. 
 
The Sumitomo Mitsui Financial Group (SMFG) on September 24 revealed 
their plan to invest in Goldman Sachs, a leading U.S. securities 
firm. The two companies had once capital ties. SMFG is aiming to 
build a footing for its mergers and acquisitions operations abroad 
through investment in Goldman Sachs. 
 
Mitsubishi UFJ Financial Group (MUFJG), which has decided to acquire 
a 900 billion yen stake in Morgan Stanley, also aims to strengthen 
its M&A operations. Among securities houses, Nomura Holdings has 
bought the Asian and European operations of Lehman Brothers. 
Nomura's operational bases in Asia and Europe will double in one 
shot. 
 
In the insurance industry, AIG, which is now under state control, 
could sell off its group companies in Japan to cut back on their 
business losses. Japanese life and non-life insurers are eager to 
buy those companies. 
 
However, Naoko Nemoto, an analyst at Standard and Poors, took a 
cautious stand, although she highly evaluated such opportunities: 
"If Japanese financial institutions do not invest now, they might 
never have a chance to catch up with the global restructuring going 
on." Leading U.S. securities firms which Japanese banks plan to bail 
out are still saddled with highly risky financial products. Nemoto 
pointed out, "There still remains risks of their going under." 
 
In the event those companies file for bankruptcy, the stocks 
Japanese companies obtained through investment will become no better 
than waste paper. Investing in such companies could become a yet 
another cause for concern for business management. 
 
The latter half of the 1980s, when the economic bubble was at peak, 
saw a wave of Japanese banks purchasing U.S. financial institutions. 
However, the local staff soon left the companies acquired by 
Japanese banks because they found it too difficult to adapt 
themselves to the Japanese-style management. As a result, most 
Japanese companies had to pull out of operations in the U.S., 
selling the recently acquired financial assets. 
 
Can Japanese companies make the best use of lessons they had learned 
in the past? That will be the key as to whether they can use their 
investments and takeovers as means to absorb the know-how from the 
 
TOKYO 00002653  013 OF 014 
 
 
acquired companies and their personnel. 
 
(9) Prime Minister's schedule, Sept. 24 & 25 
 
NIKKEI (Page 2) (Full) 
September 25, 2009 
 
Yasuo Fukuda 
 
08:56 
Met at Kantei with Chief Cabinet Secretary Machimura. 
 
09:02 
Attended cabinet meeting. 
 
10:25 
Met with Special Advisor Ito, followed by Deputy Chief Cabinet 
Secretary for Crisis Management Ito, Cabinet Public Relations 
Secretary Ogawa, Cabinet Intelligence Director Mitani, and followed 
by Deputy Chief Cabinet Secretary Futahashi. 
 
11:20 
Met with Futahashi, deputy chief cabinet secretaries Shionoya and 
Iwaki. 
 
11:52 
Met with Machimura, Shionoya, Iwaki and Futahashi. 
 
12:51 
Received bouquet from reprehensive of Kantei staff at front gate of 
Kantei. 
 
13:02 
Attended Lower House plenary session. 
 
13:46 
Arrived at Imperial Hotel. 
 
15:22 
Attended Lower House plenary session. 
 
15:34 
Arrived at Imperial Hotel. 
 
Taro Aso 
 
16:52 
Attended Lower House plenary session. 
 
16:55 
Named 92nd prime minister. Met with Fukuda, Machimura, LDP Secretary 
General Hosoda and Diet Affairs Committee Chairman Oshima. 
 
17:06 
Called on DPJ President Ozawa and other officials at their offices 
in the Diet building. 
 
17:49 
Met at Kantei Chief Cabinet Secretary Kawamura, and deputy chief 
cabinet secretaries Matsumoto and Konoike. 
 
18:17 
 
TOKYO 00002653  014 OF 014 
 
 
Met with New Komeito leader Ota, attended by Hosoda and New Komeito 
Secretary General Kitagawa. Set up headquarters to pick new cabinet 
lineup, along with six LDP executives, including Hosoda and Upper 
House Chairman Otsuji, and New Komeito's Ota and Kitagawa. 
 
18:35 
Held press conference. 
 
19:00 
Called new cabinet ministers in his office, attended by Hosoda, Ota 
and others. Hosoda remained. 
 
20:15 
Received call from U.S. President Bush. 
 
21:38 
Made informal report to the Emperor at the Imperial Palace. Invested 
with prime minister by the Emperor. Attended Imperial attestation 
ceremony. 
 
01:00 
Issued at Kantei assignments to positions. 
 
01:15 
Held first cabinet meeting. 
 
SCHIEFFER