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UNCLAS SECTION 01 OF 11 TOKYO 002711 
 
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 09/30/08 
 
Index: 
 
Aso in action: 
1) Prime Minister Aso launches attack against the DPJ in policy 
speech opening the extra Diet session  (Yomiuri) 
2) Aso in Diet speech avoids mentioning "passage" of the bill 
extending the MSDF refueling operation in the Indian Ocean  (Asahi) 
 
 
Opposition responses: 
3) Democratic Party of Japan (DPJ) head Ozawa remains silent during 
Aso's speech attacking his party, waiting to make his play during 
the interpellations  (Tokyo Shimbun) 
4) In tomorrow's Diet interpellations, DPJ to counter Aso and the 
LDP with its own set of policy pledges  (Mainichi) 
5) DPJ's campaign pledges to answer ruling camp criticism by being 
quite specific as to where the fiscal resources will come from to 
pay for everything  (Asahi) 
6) Opposition camp indicates that it is willing to pass the 
supplemental budget  (Asahi) 
 
7) Former cabinet minister Nakayama, who just resigned due to 
gaffes, comes up with another howler: "DPJ administration would go 
bankrupt just like Osaka"  (Yomiuri) 
 
Global financial crisis: 
8) U.S., Japan, Europe cooperate to double supply of dollar funds, 
fearing global lost of liquidity  (Nikkei) 
9) In emergency press briefing, BOJ Governor Shirakawa expresses 
deep concern about the global crisis  (Yomiuri) 
10) Finance Minister Nakagawa: Future of the world economy is 
"Increasingly unclear"  (Mainichi) 
 
11) Government extends sanctions against North Korea for another 
half-year  (Mainichi) 
 
12) Foreign Ministry rebuts New York Times article that criticized 
Prime Minister Aso  (Mainichi) 
 
13) "Working poor" hits local government workers, as well, survey 
shows  (Tokyo Shimbun) 
 
14) High fuel costs linked to sagging number of foreign tourists in 
Japan  (Tokyo Shimbun) 
 
Articles: 
 
1) Premier preempts DPJ with cross-question over extra budget, 
refueling 
 
YOMIURI (Top play) (Abridged) 
September 30, 2008 
 
Prime Minister Aso delivered his inaugural policy speech before the 
House of Representatives and the House of Councillors in their 
respective plenary sittings yesterday. In the speech, Aso called for 
the leading opposition Democratic Party of Japan (Minshuto) to 
clarify whether it is for or against his policy proposals, such as 
implementing a supplementary budget for fiscal 2008 and continuing 
the Maritime Self-Defense Force's refueling activities in the Indian 
Ocean. With a snap election in mind, Aso made clear his showdown 
with the DPJ. This drew backlashes from the DPJ and all other 
 
TOKYO 00002711  002 OF 011 
 
 
opposition parties, however, 
 
In his Diet speech, Aso referred to the Diet's current divided 
situation, with the ruling coalition holding a majority of the seats 
in its lower chamber and the opposition camp controlling its upper 
chamber. In this regard, Aso hit the DPJ, claiming that the DPJ has 
made it a primary principle to create a chance for it to upset the 
political situation under such circumstances. He called for the DPJ 
to come up with its counterproposal and standpoint. As an urgent 
task, he insisted on the necessity of turning Japan's economy 
around. He said the DPJ, if it is against the fiscal 2008 
supplementary budget, should answer why in a session of 
representative interpellations starting tomorrow in the Diet. In 
addition, Aso also called for the DPJ to come up with its idea of 
ways and means for its counterproposal. This is aimed to question 
the efficacy of the DPJ's policy proposal to raise funds through 
administrative reform. 
 
"His speech made a fool of the people," DPJ Secretary General 
Hatoyama told reporters in the Diet yesterday. "We cannot remain 
silent since he was so rude like that," he added to criticize Aso. 
Concerning Aso's cross-question, Hatoyama noted that the 
supplementary budget is a matter that should be discussed in a 
question-and-answer session before the Budget Committee. DPJ 
President Ozawa and Hatoyama are expected to take the floor to 
interpellate Aso tomorrow, representing their party. Basically, 
however, Ozawa will not answer Aso's cross-question and is 
considering releasing his party's standpoint in its manifesto for 
the next House of Representatives election. 
 
"He thinks nothing of the people and minority opposition parties," 
Social Democratic Party President Fukushima rebutted. People's New 
Party Secretary General Hisaoki Kamei also told reporters: "I've 
never heard of it. It sounded like a campaign speech before an 
election for the House of Representatives. I'd like him to come to 
his senses a little bit." 
 
2) Aso noncommittal on passing refueling extension bill 
 
ASAHI (Page 4) (Full) 
September 30, 2008 
 
The government yesterday presented to the Diet a bill amending the 
Refueling Assistance Special Measures Law to extend the Maritime 
Self-Defense Force's refueling activities in the Indian Ocean for 
another year. Prime Minister Aso has recently addressed the United 
Nations General Assembly, where he made his diplomatic debut and 
expressed his resolve to fight terrorism. However, he has been only 
using careful wording so as not to be taken as committing himself to 
continuing the MSDF's refueling activities there. That is because 
the legislation cannot be expected to pass the Diet once he 
dissolves the House of Representatives. 
 
"We've done this (refueling in the Indian Ocean) for Japan in its 
national interests. Japan, which is a member of the international 
community, cannot choose to pull the plug on the refueling 
activities." Aso so emphasized in his policy speech before the Diet 
yesterday. However, he did not go so far as to say he would get the 
bill through the Diet. "Does the Democratic Party of Japan 
(Minshuto) think that's all right?" With this, he asked a 
cross-question. 
 
 
TOKYO 00002711  003 OF 011 
 
 
In his Sept. 25 UNGA speech, Aso stated that Japan would continue 
its proactive participation in the war on terror together with the 
international community. However, he did not directly promise to 
continue refueling. 
 
What lies behind such a cautious stance of Aso is apparently his 
reflection of the fact that each of his two successive predecessors, 
Prime Minister Abe and Prime Minister Fukuda, put his foot in his 
mouth by making international commitments to continue the refueling 
mission. 
 
In September last year, Abe vowed to grapple with the issue of 
continuing Japan's refueling activities at the risk of his position. 
Shortly thereafter, however, Abe resigned due to a health problem. 
In November that year, Fukuda met with U.S. President Bush and 
declared that he would make his utmost to have the previous 
refueling extension bill clear the Diet at an early date. To do so, 
however, Fukuda and his ruling coalition had to extend the Diet 
session twice into the new year. The legislation somehow passed the 
Diet with an overriding second vote in the House of 
Representatives. 
 
Japan's second pullout of the Indian Ocean is now becoming more 
likely. "Other countries from all over the world are reinforcing 
their troops in Afghanistan," a senior Foreign Ministry official 
said, adding: "If Japan stops even its refueling activities, our 
relationship with the next U.S. administration will start in a 
difficult situation." 
 
3) Ozawa takes stance of silence on Aso's policy speech; Plans to 
play up own policy vision in Diet interpellations 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
September 30, 2008 
 
By Yuji Nishikawa 
 
In his policy speech at the Diet yesterday, Prime Minister Taro Aso 
tossed many questions at the major opposition Democratic Party of 
Japan. The opposition bloc has reacted sharply to the questions 
posed in the speech, saying that the prime minister acted as if he 
were an opposition leader. DPJ President Ichiro Ozawa is scheduled 
to take the floor as the first questioner in a Lower House plenary 
session on Oct. 1. Ozawa intends to play up his party's ability to 
run the government rather than rebutting the questions from the 
prime minister. 
 
The DPJ held a Lower House members' meeting yesterday noon to hear 
news that the prime minister would deliver a policy speech that 
would throw questions at it, as if he were opposition leader. One 
lawmaker said cynically, "He is trying to lay the groundwork to 
become an opposition party." 
 
After the plenary session, DPJ Secretary General Yukio Hatoyama told 
reporters: "The prime minister's policy speech was designed chiefly 
to criticize the DPJ. It offered no national vision. He simply 
ignored the people." 
 
Japanese Communist Party Chairman Kazuo Shii commented: "The 
approach of posing questions unilaterally goes against the rules of 
the Diet." Social Democratic Party head Mizuho Fukushima noted: "By 
looking only at the DPJ, the prime minister ignored the general 
 
TOKYO 00002711  004 OF 011 
 
 
public and other opposition parties."  People's New Party Secretary 
General Hisaoki Kamei said: "It sounded like a campaign speech for 
the next Lower House election." They all criticized Aso's policy 
speech that seems to have in mind a coming showdown with the DPJ in 
the next Lower House election. 
 
The prime minister raised many questions about Ozawa's 
foreign-policy stance and the fiscal resources that would be needed 
if his policies were implemented. Ozawa has chosen not to pay any 
attention to the questions, according to an aide. Instead, the DPJ 
is calling for thorough deliberations at the Budget Committee. 
 
Ozawa's statements during interpellations are likely to center on 
his own political vision and the DPJ's policy manifesto for the next 
Lower House election. In other words, Ozawa will play up his own 
policy speech-like interpellations in contrast to the prime 
minister's question-dotted speech -- an unusual move for an 
opposition leader. "The main player has now completely shifted," 
Hatoyama commented. 
 
Asked by a reporter for his impression of the prime minister's 
policy speech, the DPJ's top adviser, Kozo Watanabe, said: "I highly 
value the speech that questioned the DPJ, thinking that he sees our 
party taking the reins of government." 
 
4) DPJ to show its manifesto in representative interpellations 
 
MAINICHI (Page 2) (Full) 
September 30, 2008 
 
Prime Minister Taro Aso in his policy speech yesterday posed a 
series of questions to the main opposition Democratic Party of Japan 
(DPJ). As a result, DPJ President Ichiro Ozawa has decided to unveil 
his party's manifesto (set of campaign pledges), including measures 
to secure fiscal resources, during representative interpellations in 
the Diet on Oct. 1. He aims to play it up as if it were "an Ozawa 
administration's policy speech," using Aso's strategy against him. 
However, since Aso's questions include whether the DPJ wants to stop 
the Maritime Self-Defense Force's refueling mission in the Indian 
Ocean and other ones that are difficult for the largest opposition 
party to deal with, Ozawa will likely have a hard time to answering 
them. 
 
DPJ Secretary General Yukio Hatoyama yesterday told reporters in the 
Diet building: "There is absolutely no reason for us to answer the 
prime minister's questions within time allocated us." He declared 
that Ozawa would deliver a policy speech during his questioning 
session. It has been the practice for each party's representative to 
question the prime minister about his policy speech in 
representative interpellations. Hatoyama made critical remarks, 
saying: "I think (the LDP) is getting ready to become the opposition 
party." 
 
Ozawa plans to show in his questioning session the manifesto that 
would specify a policy of implementing -- such measures as removing 
highway tolls, supporting farmers, and creating a child allowance 
system -- in four years after the DPJ gains control of the 
government. Regarding the fiscal resources worth 22 trillion yen, 
Ozawa intends to secure it by banning the amakudari practice of 
senior bureaucrats retiring early to join government-affiliated 
organizations as highly paid executives and by cutting civil 
servants' salaries. Aso demanded answers from the DPJ on which -- 
 
TOKYO 00002711  005 OF 011 
 
 
either the United States or the United Nations -- it gives priority 
and on whether it wants to stop the MSDF mission in the Indian 
Ocean. Regarding the two above issues, the views in the party are 
split. Some DPJ members are concerned that if the DPJ does not 
answer to the questions, it will be criticized for lacking the 
capability of assuming the reins of government. 
 
5) DPJ mentions funding resources to implement its policy proposals: 
6.5 trillion yen to be drawn from hidden slush funds; 1.1 trillion 
yen through downsizing 
 
ASAHI (Page 1) (Abridged slightly) 
September 30, 2008 
 
The implementation process (road map) of policies included in the 
DPJ's manifesto for the next general election has been revealed. The 
package mentions that a total of 20.5 trillion yen in funding 
resources will be secured from slush funds (6.5 trillion yen), such 
as reserve funds in the special accounts and through a downsizing of 
national government employees 20  PERCENT  (1.1 trillion yen). This 
would be accomplished over four years after the DPJ taking the reins 
of government, with funds appropriated for the implementation of key 
policy items. 
 
This is the first time for the main opposition party to come up with 
a summation of the fiscal resources needed and a target year for 
achieving its policies, and incorporate such in its manifesto. By 
indicating the fiscal resources it needs, the DPJ intends to stave 
off criticism that its policy proposals are not backed by funding 
resources. It can now pursue instead the ruling camp's funding 
resources issue involving the fixed-amount tax cut and a hike in 
state contribution to the basic pension in fiscal 2009. It wants to 
question the ruling parties' capability to run the government. The 
funding resource issue will likely become a major issue in the 
general election campaign. 
 
The implementation process has four principles: (1) implement key 
policies pledged to the public with a political will: (2) create new 
fiscal resources, correcting the current cycle of wasteful spending 
of taxpayers' money being perpetuated; (3) implement policies in the 
order of priority; and (4) use the economic effects achieved by the 
realization of policies for fiscal reconstruction. 
 
The road map, an annual program for the implementation process 
characterizes Lower House members' four-year term as the period for 
the implementation of the manifesto. This period is divided into 
three stages -- the first stage (fiscal 2009), the second stage 
(fiscal 2010-2011) and the third stage (fiscal 2012). Policies that 
can be implemented without legal preparations will be carried out in 
the initial year. Policies that will take time for the planning of 
systems or legislation work will be implemented in stages. For this 
reason, a budget needed in each stage will increase gradually -- 8.4 
trillion yen for the first stage, 14 trillion yen for the second 
stage and 20.5 trillion yen for the third stage. 
 
Resources to fund policy implementation will be squeezed out, mainly 
through an overall budgetary revision. In the first stage, a large 
portion of the 8.4 trillion yen will be covered with the use of 
slush funds. The implementation process notes that reserve funds 
(approximately 204 trillion yen) in the special account drawn from 
tax revenues and insurance premiums and yield on the investment of 
those reserve funds will be used to improve people's lives. To be 
 
TOKYO 00002711  006 OF 011 
 
 
precise, yield on the investment of special-account fiscal 
investment and loans the investment of special-account foreign 
exchange funds, and portions of funds with no intended use for the 
time being will be allocated for policy expenses. 
 
Reform of subsidies will be implemented in the second stage. Key 
policy items to be implemented in this stage are: (1) making the 
subsidy system more efficient, by abolishing, in principle, 
individual subsidies to local governments and granting subsidies in 
a lump sum without fixed usage, while implementing decentralization 
reform; (2) and drastically revising independent administrative 
agencies, special accounts and public-interest corporations and 
significantly cutting subsidies to them. In the third stage, the 
total amount of national government employees' personnel expenses 
will be cut by 20 PERCENT  in the end the idea being financial 
resources can be found in cuts in personnel expenditures as the 
reform of governing institutions, such as the government's outpost 
agencies, is expected to progress. 
 
Major funding resources proposed in DPJ manifesto 
 
(After fiscal 2009) 
? Use of slush funds (6.5 trillion yen) 
? Government asset disposal plan (0.7 trillion yen) 
? Strict budget screening, drastic review of special tax measures 
and review of the income tax deduction with the establishment of a 
child allowance system (4.8 trillion yen) 
 
(After fiscal 2010) 
? Abolish individual subsides to local governments and instead grant 
subsidies in a lump sum without specifying usage, drastically reform 
independent administrative agencies, special accounts and 
public-interest corporations and significantly cut subsidies to them 
(4.3 trillion yen) 
? Place a ban on the descent from heaven practice, reform the open 
public bidding system (1.8 trillion yen) 
? 50 PERCENT  cut in a budget for projects under direct control of 
the government (1.3 trillion yen) 
 
(After fiscal 2011) 
? 20 PERCENT  cut in the total amount of national government 
employee personnel expenditures (1.1 trillion yen) 
 
6) DPJ to accept passage of supplementary budget bill, making it a 
condition that budget committee meetings be held 
 
ASAHI (Page 1) (Full) 
September 30, 2008 
 
The Democratic Party of Japan (DPJ or Minshuto) on September 20 
decided to accept passage before the end of next week of a fiscal 
2008 supplementary budget bill  submitted by the government. It 
intends to call for deliberations on the bill for two days in the 
Lower and Upper Houses respectively starting on October 6 after 
interpellations by party representatives are over and dissolution of 
the Lower House right after its passage on October 9, instead of 
reaching a decision on the bill. However, many ruling party members 
are cautious about holding a budget committee meeting, where they 
will be exposed to the opposition parties' offensive. The prevailing 
view in the ruling camp is in favor of dissolution after the 
interpellations ended on the 3rd. 
 
 
TOKYO 00002711  007 OF 011 
 
 
Regarding the budget bill, since a priority is given to a decision 
reached by the Lower House under the Constitution, even if it is 
voted down on the 9th in the opposition party-controlled Upper 
House, the bill will be enacted the same day after going through the 
consultative councils of both chambers of the Diet. Some members of 
the DPJ leadership take the view that they do not necessarily have 
to oppose the supplementary budget bill, as Secretary General Yukio 
Hatoyama noted. Chances are, therefore, that the DPJ might support 
the supplementary budget bill. One senior DPJ member said on the 
29th, "There is a strong possibility of the bill securing Diet 
approval." 
 
7) Former Land, Infrastructure and Transport Minister Nakayama makes 
another gaffe: "A Democratic Party of Japan administration will 
bankrupt just like Osaka did" 
 
YOMIURI (Page 4) (Full) 
September 30, 2008 
 
Liberal Democratic Party Lower House member Nariaki Nakayama, who 
resigned from his post of land, infrastructure and transport 
minister to take responsibility for a series of gaffes, has 
continued to blast Nikkyoso, the national teachers' union, which his 
pet peeve. Appearing on a TBS television program, Nakayama said: "My 
next election is really in danger, but even if it means staking my 
political life on it, I have a responsibility to make my appeal to 
the people." 
 
Nakayama's verbal offenses also have targeted the Democratic Party 
of Japan (DPJ). He has made such remarks as: "If a DPJ 
administration were launched, all of Japan would become like Osaka 
municipality. It is on the verge of bankruptcy being in bed with the 
labor unions." 
 
In response to remarks like this from Nakayama, voices of alarm are 
coming out of the Machimura faction about the negative effect they 
will have on the upcoming Lower House election. As a result, former 
Prime Minister Mori, former Chief Cabinet Secretary Nobutaka 
Machimura, and LDP Secretary General Hosoda stayed behind in the 
Diet hall after Prime Minister Aso made his policy speech in order 
to discuss a response. They decide to ask Nakayama to constrain his 
remarks. 
 
Nakayama was scheduled to appear on a TV-Asahi program Sept. 30, but 
he cancelled his appearance on the 29th. The explanation given by 
Nakayama's office was that he had gone to a friend's funeral. 
 
8) Major central banks to pump 620 billion dollars (65 trillion yen) 
into money markets to contain global financial crisis 
 
NIKKEI (Top Play) (Excerpts) 
September 30, 2008 
 
Monetary authorities of Japan, the U.S. and Europe have begun to 
redouble their efforts to help ease a global credit crunch. With the 
U.S. financial crisis spreading to Europe and elsewhere, banks now 
find it more difficult to procure dollars. In response, the central 
banks of 10 key countries announced on Sept. 29 that they will 
significantly expand dollar supplies. In the U.S., the leading bank 
Citigroup Inc. announced a plan to buy troubled Wachovia banking 
operations with the support of the U.S. government. The U.S. 
government agreed with Congress to enact a bill to stabilize the 
 
TOKYO 00002711  008 OF 011 
 
 
paralyzed global financial system, but the U.S. and European stock 
markets continued to drop on Sept. 29. With risks remaining, 
monetary authorities of each country have been on the alert. 
 
The 10 key central banks of Japan, the U.S., and Europe outlined 
plans to supply more dollars into their home monetary markets. The 
total amount of dollars that each central bank will procure from the 
Federal Reserve Board (FRB) and inject into their home markets will 
increase from the current 290 billion dollars to 620 billion dollars 
(approximately 65.1 trillion yen). Their coordinated operation was 
initially to end at the end of January but will be extended to 
April. The Bank of Japan has also decided to double the amount 
supplied to the domestic market to 120 billion dollars. 
 
On the European monetary markets on the 29th, the 3-month U.S. 
dollar LIBOR inter-bank rate rose 0.12 PERCENT  over the previous 
week to 3.88 PERCENT  on growing fears about a funding squeeze among 
European financial institutions. The 3-month Euro LIBOR rate also 
jumped 0.08 PERCENT  to 5.22 PERCENT , marking the highest ever 
record since it was introduced. With a financial crisis triggered by 
the upheaval on Wall Street spreading to Europe, concerns about 
their business operations are growing among financial institutions 
in Europe as European governments have decided to nationalize 
commercial banks. Under this situation, private-sector financial 
institutions face difficulties procuring dollars. To ease a credit 
crunch, the central banks of major countries will strengthen their 
cooperative setup to stabilize the global financial system. 
 
The 10 central banks include the BOJ, the FRB, the European Central 
Bank, the Bank of England, and Sweden's central bank. These 10 banks 
issued a joint statement on the 29th reading: "We will continue to 
take joint steps and take appropriate measures if necessary." Japan, 
the U.S. and other major countries had reached currency swap 
agreements with the FRB during a period between Sept. 18 and the 
26th to provide a total of 290 billion dollars to their home 
markets. 
 
9) Major central banks to supply extra funds in response to global 
monetary crisis, which is becoming a reality; BOJ chief: "Dollar 
liquidity has become almost stagnant" 
 
YOMIURI (Page 9) (Excerpts) 
September 30, 2008 
 
The central banks of 10 key nations, including Japan, the U.S., and 
European countries, decided on Sept. 29 to significantly expand 
arrangements to boost U.S. dollar liquidity, given that a global 
financial crisis is now taking on a touch of reality with a 
succession of failures of U.S. and European financial institutions. 
But many observers take the view that money supplies alone will have 
a limited impact on easing a global credit crunch. The major central 
banks' redoubled effort could be just like a drop in a bucket. 
 
No reduction in interest rates 
 
Bank of Japan Governor Masaaki Shirakawa expressed a sense of crisis 
in a press conference after an emergency monetary policymaking 
meeting called urgently at midnight on the 29th: "U.S. dollar 
liquidity has become almost stagnant." He meant that foreign 
financial institutions have been in a difficult situation with the 
flow of money held back in short-term markets. 
 
 
TOKYO 00002711  009 OF 011 
 
 
The central banks of six countries, including Japan, the U.S., and 
European countries, decided on a coordinated effort on Sept. 18 to 
help ease a funding squeeze. Based on currency swap accords that the 
U.S. Federal Reserve Board (FRB) reached with key other countries' 
central banks, they secured up to 247 billion dollars in total to 
pump into global monetary markets. 
 
The FRB also signed similar deals with the four central banks of 
Australia, Sweden, Denmark, and Norway, raising the amount of funds 
to 290 billion dollars. 
 
The coordinated efforts, however, have produced no significant 
impact. The BOJ pumped 29.6 billion dollars into the short-term 
monetary market on Sept. 25, but there are no signs of a reduction 
in the interest rates of loans to foreign financial institutions. 
 
The BOJ also released a total of 18.4 trillion yen for nine business 
days in a row, but the interest rates of loans to foreign 
institutions have been at about 0.7 PERCENT , about 0.3 PERCENT 
higher than those for Japanese banks. 
 
10) Finance minister in speech refers to future of world economy as 
increasingly uncertain 
 
MAINICHI (Page 2) (Abridged slightly) 
September 30, 2008 
 
Finance and Fiscal Services Minister Shoichi Nakagawa delivered a 
speech in the plenary sessions of the two houses of the Diet 
yesterday afternoon. The minister described the future of the world 
economy as increasingly uncertain due to effects by slowing down in 
growth of emerging economies, tumbling international financial 
markets, and soaring prices of resources and food. He also called 
for cooperation for the enactment of the fiscal 2008 supplementary 
budget, saying that he will make the Japanese economy firmer by 
alleviating the pain and anxiety of the general public. 
 
He also indicated that the Japanese economy, being in a weak tone, 
is taking its toll on small businesses, which are finding it 
difficult to pass along rising costs to customers, and on employees 
who are suffering from no wage hikes. He said that the government 
will aim at reducing workers' concerns with an economic stimulus 
package including the government's continued step to assist the aged 
with their medical costs. The minister also vowed to take solid 
steps to improve cash flows for small businesses by, for instance, 
introducing a new guarantee system dealing with rising material 
costs. 
 
(08093004st) Back to Top 
 
 
 
11) Government to extend sanctions on North Korea for six months, 
given no progress on abduction issue 
 
MAINICHI (Page 5) (Excerpts) 
September 30, 2008 
 
The government decided yesterday to extend its own sanctions on 
North Korea, scheduled to expire on Oct. 13, for six months. The 
government will continue the sanctions because there has been no 
progress on the abduction issue despite the fact that an agreement 
 
TOKYO 00002711  010 OF 011 
 
 
was reached in bilateral working-level talks in August on a 
reinvestigation into the fate of Japanese abductees and on partially 
lifting Japan's sanctions. 
 
The government still upholds its policy of partially lifting the 
sanctions in the event the North begins the reinvestigation. Tokyo 
will reconsider its decision if Pyongyang begins the reinvestigation 
before Oct. 13. The government imposed the sanctions in October 2006 
chiefly banning port calls by North Korean vessels, including the 
ferry Man Gyong Bong-92. The sanctions have been extended every six 
months. It is going to be the fourth time for the government to 
extend them. The government plans to adopt its decision at a cabinet 
meeting in early October. 
 
12) Foreign Ministry rebuts New York Times editorial critical of 
Aso 
 
MAINICHI (Page 5) (Full) 
September 30, 2008 
 
On Sept. 25, the New York Times carried an editorial describing 
Prime Minister Taro Aso as a person who had soured relations with 
China and South Korea. Vice-Foreign Minister Mitoji Yabunaka, in a 
press conference yesterday, indicated that the Foreign Ministry has 
rebutted the editorial through the Consulate General in New York. 
Yabunaka said that the government has informed the newspaper once 
again that the prime minister's basic thinking is to strengthen 
relations with neighboring countries, such as China and South Korea, 
and to cooperate with them based on strengthening the Japan-U.S. 
alliance. In February 2006, the newspaper also carried an editorial 
critical of then Foreign Minister Taro Aso, saying that he had drawn 
strong protests from the peoples of Asia. In reaction, the Foreign 
Ministry also filed a rebuttal. 
 
13) Poll by Jichiro: 67 PERCENT  of non-regular local government 
employees earns less than 2 million yen annually; 
Government-initiated working poor? 
 
TOKYO SHIMBUN (Page 3) (Excerpts) 
September 30, 2008 
 
The All Japan Prefectural and Municipal Workers' Union (Jichiro) 
yesterday released the result of a survey on the situation of local 
government employees. The survey found that non-regular employees, 
including temporary workers and part-timers, accounted for 27.8 
PERCENT  of the entire local government workers. Jichiro assumes 
that at east 67.1 PERCENT  of the non-regular employees earn less 
than 2 million yen annually, making them essentially a part of the 
"working poor." 
 
Jichiro questioned local municipalities about the number of 
non-regular employees they hired and their wages as of June 1. It 
received answers from 23 prefectural governments and 963 
municipalities, which accounts for 53.1 PERCENT  of the all. Of a 
total of 1,071,496 employees, 297,571 were non-regular workers. 
Jichiro presumes that the number of non-regular employees would 
exceed 500,000 if the number of non-regular employees of local 
governments that have not yet to answer the questions is added. 
 
Regarding wages, 65.5 PERCENT  of the non-regular employees were 
paid under daily-wage or hourly-way systems. Of them, 71.8 PERCENT 
got less than 1,000 yen per hour, which would total 2 million yen 
 
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annually; and 58.3 PERCENT  of the remaining earned less than 
160,000 yen per month. Jichiro says that at least 67.1 PERCENT  of 
all employees earn less than 2 million yen. 
 
14) Foreign tourists drop in August 
 
TOKYO SHIMBUN (Page 3) (Full) 
September 30, 2008 
 
It was learned yesterday by a survey conducted by the Japan National 
Tourist Organization that the number of foreign travelers to Japan 
in August totaled 742,100, a 2.0 PERCENT  drop from the number in 
August of the previous year, and that the decrease was the first 
time in two years and six months since February 2006. 
 
The main reason for the drop was an increase in fuel surcharges due 
to the soaring oil prices. The number of foreign tourists in August 
this year was 15,400 less than last year's. 
 
By country and region, South Korean tourists dropped by 23,000 or 
8.6 PERCENT  due to the lower won and the slow economy. Chinese 
tourists also decreased by 6,300 or 6.3 PERCENT . 
 
SCHIEFFER