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FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
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RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 2579
RUEHFK/AMCONSUL FUKUOKA 0223
RUEHOK/AMCONSUL OSAKA KOBE 3968
RUEHNAG/AMCONSUL NAGOYA 8305
RUEHKSO/AMCONSUL SAPPORO 0799
RUEHBJ/AMEMBASSY BEIJING 5690
RUEHUL/AMEMBASSY SEOUL 1685
RUCNDT/USMISSION USUN NEW YORK 1957

UNCLAS SECTION 01 OF 10 TOKYO 002779 
 
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 10/06/08 
 
INDEX: 
 
(1) Zumwalt says next U.S. administration also to uphold U.S. 
military realignment, frowns on Futenma revision (Okinawa Times) 
 
(2) Commentary: DCM Zumwalt gives 'zero answer' to proposal for 
Futenma replacement facility's offshore move, a big barrier to 
Futenma relocation (Okinawa Times) 
 
(3) Yokohama hit-and-run incident: U.S. service member apprehended 
at Yokosuka base (Mainichi) 
 
(4) Two U.S. Marines arrested for stealing taxi and for having minor 
accidents (Mainichi) 
 
(5) Fund-raising body headed by Foreign Minister Nakasone found to 
have received donations from companies caught bid-rigging (Akahata) 
 
 
(6) Japanese firms' overseas M&As in Jan-Sept period reach record 
high in value (Sankei) 
 
(7) Interview with JICA President Sadako Ogata (Asahi) 
 
(8)TOP HEADLINES 
 
(9) EDITORIALS 
 
(10) Prime Minister's schedule, October 3 (Nikkei) 
 
ARTICLES: 
 
(1) Zumwalt says next U.S. administration also to uphold U.S. 
military realignment, frowns on Futenma revision 
 
OKINAWA TIMES (Page 1) (Full) 
October 5, 2008 
 
James Zumwalt, deputy chief of mission at the U.S. Embassy in Japan, 
outlined his views yesterday in an Okinawa Times interview. He 
indicated that the next U.S. president coming into office after this 
November's presidential election would take over the Bush 
administration's current policy toward Japan. "Both the Democratic 
and Republican parties attach importance to Asia, and in particular, 
give high consideration to U.S.-Japan relations," Zumwalt said. 
"There will be no major changes," he added. 
 
Concerning the planned relocation of the U.S. military's Futenma 
airfield, Okinawa Prefecture has been calling for the construction 
site of an alternative facility to be moved into the sea. Zumwalt 
frowned on the proposal, saying: "The Japanese and U.S. governments 
made the decision after very difficult negotiations from the 
perspective of the environment, noise, safety, and other factors. It 
would not be wise for the U.S. government to renegotiate." With 
this, Zumwalt indicated that the U.S. government does not want to 
impede the implementation of the agreement on the realignment of 
U.S. forces in Japan for the next administration. 
 
In addition, Zumwalt also pointed out elections to be held along 
with the U.S. presidential election for one third of the seats in 
the Senate and all seats in the House of Representatives. "I think 
there will be various changes (in the U.S.), but there will be no 
 
TOKYO 00002779  002 OF 010 
 
 
change in U.S.-Japan relations. The United States' interests will 
remain unchanged, because Japan and the United States share common 
values." 
 
Another pending issue is to remove the danger of Futenma airfield. 
In this regard, Okinawa Prefecture has been calling for the U.S. 
military to take appropriate measures from the perspective of flight 
operations. "The most important thing is to quickly relocate Futenma 
airfield," Zumwalt said. "But," he added, "we want to make efforts 
for Futenma's safe use." So saying, he declined to clarify whether 
the U.S. military will respond to the local call. 
 
There has been an increase in the number of U.S. nuclear-powered 
submarine port calls at White Beach. Asked why, Zumwalt went no 
further than to say: "Submarines must operate under various 
circumstances in the world. Their presence in the Far East and Asia 
serves as a deterrent." 
 
Zumwalt arrived in Okinawa on Oct. 1. He exchanged views with 
Okinawa Gov. Hirokazu Nakaima, Nago Mayor Yoshikazu Shimabukuro, 
Ginowan Mayor Yoichi Iha, and the heads of other base-hosting 
municipalities. In addition, he visited Camp Schwab. 
 
(2) Commentary: DCM Zumwalt gives 'zero answer' to proposal for 
Futenma replacement facility's offshore move, a big barrier to 
Futenma relocation 
 
OKINAWA TIMES (Page 2) (Full) 
October 5, 2008 
 
Concerning the issue of relocating the U.S. military's Futenma 
airfield, Deputy Chief of Mission Zumwalt from the U.S. Embassy in 
Japan gave a 'zero answer' to Okinawa Gov. Hirokazu Nakaima's 
proposal to move the construction site of an alternative facility 
out into the sea and remove its danger. 
 
The deputy chief of mission is a key post ranking next to Ambassador 
Schieffer. Zumwalt was director for Japanese affairs (Japan Desk) at 
the Department of State before assuming his current post. The 
high-ranking U.S. government official, who will be at the center of 
U.S. policy toward Japan following the change of administration, has 
indicated that the U.S. government would not agree to move the site 
of the Futenma alternative facility offshore. This will be a major 
barrier to Okinawa Prefecture and Nago City, which are pushing for 
Futenma's relocation. That is because Nobutaka Machimura, who has 
shown understanding for Okinawa Prefecture's standpoint, is no 
longer in the cabinet post of chief cabinet secretary and thus no 
longer in charge of the issue. Okinawa has high hopes for the 
government's negotiations with the United States. However, the 
government itself has fallen into a difficult situation. 
 
Meanwhile, Zumwalt indicated that one of the goals of realigning the 
U.S. military presence in Japan is to mitigate the burden of 
base-hosting localities while strengthening the Japan-U.S. 
alliance's deterrence. "The alliance cannot be continued for a long 
time without the Japanese people's support," he said. 
 
The Okinawa prefectural assembly has unanimously adopted a 
resolution against building a new base in a coastal area of Henoko 
in Nago City (as a replacement for Futenma airfield). Outside 
Okinawa, however, discussions of the U.S. military's realignment 
involving Futenma have grown cold. Zumwalt has his eye on public 
 
TOKYO 00002779  003 OF 010 
 
 
opinion in Japan in making his remarks, so the Okinawa prefectural 
government and assembly, which take different positions, must find a 
way to arouse public opinion in Japan given the fluidity of the 
domestic political situation. 
 
(3) Yokohama hit-and-run incident: U.S. service member apprehended 
at Yokosuka base 
 
MAINICHI NET (Full) 
1:11 p.m., October 6, 2008 
 
By Masaru Yoshida 
 
A 32-year-old male salaried worker from Yokosuka City, Kanagawa 
Prefecture, was run over by a vehicle with a Y-number plate on the 
night of Oct. 3 at the Metropolitan Expressway Daikoku Parking Area 
in Tsurumi Ward, Yokohama City. U.S. Yokosuka Naval Base on Oct. 5 
detained on suspicion of attempted murder a male seaman attached to 
the base who is believed to have fled from the crime scene. 
 
Y-number plates are issued to vehicles owned by U.S. military 
personnel, civilian employees of the U.S. armed forces, and their 
families. The man in question was identified as belonging to the 
U.S. military, based on the Y-number plate in a joint investigation 
by the Tsurumi Police Station and the U.S. Naval Criminal 
Investigation Service (NCIS). The NCIS has detained the sailor after 
questioning him on the base. The U.S. military reportedly 
interviewed a fellow U.S. service member who was at the crime scene, 
as well. 
 
According to the investigation, the male salaried worker seems to 
have known the sailor. Reportedly, the two got into a quarrel 
shortly before 10:55 p.m., at which point, jus when the U.S. sailor 
got into his car, the company employee stood in its way. 
 
(4) Two U.S. Marines arrested for stealing taxi and for having minor 
accidents 
 
MAINICHI ONLINE (Full) 
October 6, 2008 
 
Okinawa Police arrested last night Mathew Eckerson (TN: Phonetic), a 
21-year-old lance corporal based at the U.S. Marine Corps' Camp 
Zukeran, and Shane Stodghill (Phonetic), a 20-year-old lance 
corporal based at Camp Courtney, on charges of theft. 
 
According to the police, the two Marines were arrested on suspicion 
of stealing a taxi at around 6:45 p.m., while the driver was going 
to the toilet. The incident occurred on a street in Mihama, 
Chatan-cho, Okinawa Prefecture. The two have admitted to the 
charges. 
 
About 20 minutes later, Eckerson, who drove the taxi, scraped five 
cars one after the other when he tried to pass vehicles waiting for 
the traffic lights to change at the Isa intersection on Route 58 in 
Ginowan City. The two Marines were subdued by persons on the scene 
and handed over to the police. 
 
The two reportedly were drunk. 
 
(5) Fund-raising body headed by Foreign Minister Nakasone found to 
have received donations from companies caught bid-rigging 
 
TOKYO 00002779  004 OF 010 
 
 
 
AKAHATA (Page 15) (Full) 
October 6, 2008 
 
It has been learned that the Liberal Democratic Party (LDP) Gunma 
Prefectural Upper House First Chapter, which is headed by Foreign 
Minister Hirofumi Nakasone, received 1.6 million yen in donations 
from companies that were warned by the Japan Fair Trade Commission 
to cease and desist all activities in violation of the Antimonopoly 
Law. The companies in question are Nissaku Corp., a construction 
company in Saitama City, and Tonets Corp. in Chuo Ward, Tokyo. 
 
The Japan Fair Trade Commission issued to Nissaku a warning in May 
2002 to end a bid-rigging practice in a project ordered by Kanagawa 
Prefecture, and another warning in November 2004 to cease 
bid-rigging in a project ordered by Ehima Prefecture. 
 
In March 2006, Tonets was excluded from the list of companies 
designated for competitive bidding on suspicion of being involved in 
an illegal bid-rigging scheme involving the Defense Facilities 
Administration Agency. 
 
According to the Upper House Gunma Prefectural First Chapter's 
political funds report, Nissaku contributed a total of 1.25 million 
yen over five years since 2003 through 2007; and Tonets donated 
totaling 410,000 yen for three years from 2004 to 2007. 
 
Regarding the donations from Nissaku, Nakasone said yesterday: "I 
didn't know that we received political donations from any company 
that was ordered to cease such activities. I want to consider a 
response after checking the specifics." 
 
It has been discovered that LDP regional chapters headed by Prime 
Minister Taro Aso, Chief Cabinet Secretary Takeo Kawamura and 
Finance Minister and State Minister in Charge of Financial Services 
Shoichi Nakagawa, received donations from controversial firms. 
 
(6) Japanese firms' overseas M&As in Jan-Sept period reach record 
high in value 
 
SANKEI (Page 10) (Full) 
October 4, 2008 
 
Japanese firms have been on a mergers and acquisitions (M&A) spree 
overseas. According to M&A consultancy Recof Corp., the value of 
M&As of foreign firms by Japanese companies in the January-September 
period reached a record high of 6.0234 trillion yen, 3.54 times 
larger than the same period a year ago. Meanwhile, M&As of Japanese 
companies by foreign firms sharply decreased. With a sidelong glance 
at a number of foreign-buyout funds becoming unable to procure 
capital in the aftermath of the U.S. financial crisis, Japanese 
companies, armed with ample cash, are enhancing their presence in 
the M&A market. 
 
The number of M&A cases in the January-September period was 1,825, 
down 9.1 PERCENT  below the same period a year ago. Of these, 
Japanese firms' M&A overseas totaled 270, up 1.5 PERCENT . In the 
meantime, the total value of all M&A cases increased 4.5 PERCENT  to 
9.3635 trillion yen, of which those involving Japanese firms 
accounted for 64 PERCENT , showing that the scale of each case is 
becoming larger. In September, too, large-sized M&As and 
capital-participation cases were reported, involving a consortium of 
 
TOKYO 00002779  005 OF 010 
 
 
Marubeni Corp and Kansai Electric Power Co., and by Shionogi & Co. 
and the Mitsubishi-UFJ Financial Group. 
 
A number of industries that cater to domestic demand, including 
financial institutions such as non-life insurers and banks, and drug 
makers, have taken the lead in the boom of Japanese firms' M&A 
overseas this year. Recent sharp drops in global stock markets have 
also encouraged Japanese companies to move for M&As overseas. 
 
During the bubble years at home, Japanese corporations proactively 
purchased properties overseas, such as hotels and commercial 
buildings. But this year, most are cases in which companies purchase 
foreign firms of the same line of business or related business. An 
industry participant commented: "Many corporations are trying to 
explore overseas markets in earnest." 
 
M&A cases involving Japanese firms by foreign companies dropped 32.5 
PERCENT  to 158 cases and 79.9 PERCENT  to 506.7 billion yen in 
value terms, though the value in 2007 exceeded 3 trillion yen. 
 
The drop is attributable to the financial woes originating in the 
U.S. Foreign companies are having difficulties procuring capital 
from money markets that are being dogged by credit uncertainty, as 
shown by the U.S. General Electric's (GE) request to investor Warren 
Edward Buffett for financial aid. 
 
Stock prices on the Japanese market also remain weak, but foreign 
firms, such as buyout funds, find it far more difficult than 
Japanese companies to procure funds. They cannot afford to invest in 
Japanese companies. 
 
(7) Interview with JICA President Sadako Ogata 
 
ASAHI (Page 3) (Full) 
September 30, 2008 
 
The International Cooperation Agency (JICA) will merge with the yen 
loan operations of the Japan Bank for International Cooperation 
(JBIC) on Oct. 1. Prior to the launch of a revamped organization, 
JICA President Sadako Ogata, 81, responded to an interview with the 
Asahi Shimbun on Sept. 29, in which she expressed concern about the 
nation's shrinking official development aid (ODA) budget and pointed 
out the need for changing the emphasis of assistance toward 
contributions to help build political stability. Ogata also 
indicated that Japan should be proactively involved in peace 
building by stationing Japanese staff in Iraq and taking other 
measures. 
 
-- The overhauled JICA will become the world's largest aid 
organization in terms of project scale. What feeling do you have 
about the integration? 
 
Since I assumed the presidency, five years have passed, but I have 
remained in office, based on the view that I should not give up on 
the integration scheme halfway though and must ascertain its 
outcome. The reorganized JICA will be an agency that brings together 
the programs of yen loans, grant aid, and technical assistance. It 
is easier for developing countries to receive different types of aid 
from a single organization. 
 
We can expect chances to expand in the future. For instance, if 
waterworks engineers are trained, an organization (such as the 
 
TOKYO 00002779  006 OF 010 
 
 
waterworks bureau) will become necessary. So it will become possible 
to establish a system under the reorganized JICA. 
 
-- The words, "development that will benefit everybody," are 
inserted in the vision of the revamped JICA, aren't they? 
 
Discrepancies are expanding in developing countries as a result of 
their economies rapidly growing and globalization advancing. 
Discrepancies bring about negative effects, so it is necessary to 
help develop economics without creating discrepancies. We would also 
like to give priority to efficiency and effect, such as a way of 
offering a lot of funds to areas in need. 
 
-- We hear your own research institute will also be revamped and 
will give priority to not only economic development but political 
development, as well. 
 
Even if we promote economic development in earnest, such problems as 
instability in politics are left. In offering aid to help build 
peace in countries in dispute, as well, we must carefully watch what 
is obstructing the peace there. In a considerably early stage in 
some cases, JICA has dispatched personnel to places to which 
conventional aid agencies have not. 
 
-- About 40 staff members have been stationed in Afghanistan despite 
the deteriorating security situation. What plan do you have in mind 
about them? 
 
I have no intention to withdraw them. When I visited Afghanistan 
last December, I saw many of them tackling such challenges as human 
resource development, assisting the medical sector, and helping farm 
villages. We are employing ingenuity, for instance, purchasing 
bulletproof vehicles and hiring local officials in charge of 
security management. 
 
We have started a grand project to construct a Kabul Metropolitan 
area. We have also prepared a detailed master plan. Since this is an 
important project, we would like to keep the current number of 
employees. There used to be 60 members in Afghanistan, so we would 
like to increase the number if security is ensured there. 
 
A police organization is needed, besides the military, to bring 
about stability into Afghanistan. Such a duty is not included among 
the duties of the Self-Defense Force (SDF), so there will be no 
other way but (for Japan) to depend on civilians for this duty. 
 
-- Japan has provided Iraq with non-reimbursable aid to Iraq under a 
remote-control system and also plans to offer yen loans on a full 
scale. 
 
We would like to provide the nation with 3.5 billion dollars in yen 
loans. A responsible team has been stationed in Jordan, but it is 
necessary to station the team in Iraq in order to render 
satisfactory aid. Since the security situation in the Kurdish region 
has considerably stabilized, we want to prepare to set our office in 
Arbil (in northern Iraq) and send staff by the end of the year. 
 
-- Japan ranked at the top among donors of ODA in the world in 2000, 
but the nation tumbled to fifth place in 2007. 
 
The ratio of ODA disbursements to the nation's economic scale is now 
the lowest among the industrialized countries and is lower than its 
 
TOKYO 00002779  007 OF 010 
 
 
appropriate level. Although Japan has benefited from global peace 
and stability, it has little awareness that it must do something. 
Around the time when I was assigned to the United Nations in 1991, 
the words "international contributions" were being mentioned more 
often. 
 
Defense expenditures are far larger than ODA disbursements. I wonder 
spending cuts were properly carried out in the process of fiscal 
reconstruction. How does the second largest economic power recognize 
this (imbalanced budgetary allocations) and rectify them? This is a 
political issue, and political leaders must take the lead in dealing 
with it. 
 
-- ODA is said to be a diplomatic tool. 
 
ODA is more than just a tool. ODA plays an important role for Japan 
to fulfill an international role and to aim at co-existence and 
co-prosperity with the rest of the world. I think JICA is an 
organization existing for that purpose. 
 
(8)TOP HEADLINES 
 
Asahi: 
Firm in Ishikawa Prefecture abused mail rate discount for disabled 
people 
 
Mainichi: 
British, German, French, Italian leaders agree to set up EU bank 
surveillance body 
 
Yomiuri: 
150 hospitals in Japan have emergency rooms 
 
Nikkei: 
94 PERCENT  of surveyed corporate heads say nation's economy is 
deteriorating 
 
Sankei: 
Nishimatsu Construction vice president interviewed by Tokyo 
prosecutors over shady money worth 100 million yen 
 
Tokyo Shimbun: 
Four European leaders fail to come up with substantial financial 
measures 
 
Akahata: 
4,600 young people assemble in Meiji Park 
 
(9) EDITORIALS 
 
Asahi: 
(1) Global warming and general election: "Environment" should be 
taken campaign issue 
 
Mainichi: 
(1) Authorities concerned must not prey on newly established Japan 
Finance Co. 
(2) Revisions to Worker Dispatch Law insufficient to protect 
workers 
 
Yomiuri: 
(1) Excessive postgraduate law faculties must be decreased 
 
TOKYO 00002779  008 OF 010 
 
 
(2) Japan should deepen debate on policy of accepting 300,000 
foreign students 
 
Nikkei: 
(1) Europe must show real achievements of cooperation to prevent 
financial crisis 
(2) Punishment of self-defense official damages right to know 
 
Sankei: 
(1) EU observer mission in Georgia: Russia not allowed to let 
present situation continue 
(2) Survival rates of cancer patients: Number of hospitals that 
disclose data should be increased 
 
Tokyo Shimbun: 
(1) Financial stabilization: U.S. facing critical juncture 
(2) Osaka Gov. Hashimoto loses case: TV commentators should be 
careful about making comments 
 
Akahata: 
(1) Military use of space: Japan must stop preparing for an overseas 
war 
 
(10) Prime Minister's schedule, October 3 
 
NIKKEI (Page 2) (Full) 
October 4, 2008 
 
08:18 
Met Deputy Chief Cabinet Secretary Konoike at the Kantei. 
 
09:00 
Attended a cabinet meeting. 
 
09:10 
Met Konoike. 
 
10:00 
Met Chief Cabinet Secretary Kawamura at the Kantei. 
 
13:01 
Attended an Upper House plenary session. 
 
15:26 
Met Cabinet Intelligence Director Mitani at the Kantei. 
 
16:01 
Met representatives of six local organizations, including Fukuoka 
Gov. and National Governors Association Chairman Aso. 
 
16:17 
Met Vice Education Minister Zeniya, followed by Cabinet Office Vice 
Minister Yamamoto and Decoration Bureau Director General Fukushita. 
Afterward met Deputy Chief Cabinet Secretary Uruma. 
 
17:11 
Met Vice METI Minister Mochizuki and Economic and Industry Policy 
Bureau Director General Matsunaga, followed by LDP Policy Research 
Council Chairman Hori and his deputy Sonoda. 
 
17:59 
Met Economic and Fiscal Policy Minister Yosano, followed by 
 
TOKYO 00002779  009 OF 010 
 
 
Mochizuki and Matsunaga. 
 
18:41 
Attended a Kaho Middle and High School reunion held at the Toranomon 
Pastral. 
 
19:18 
Met a secretary at an Imperial Hotel bar. 
 
22:54 
Returned to his private residence in Kamiyama. 
 
Prime Minister's schedule, October 4 
 
NIKKEI (Page 2) (Full) 
 
October 5, 2008 
 
10:58 
Took a walk around his private residence in Kamiyama. 
 
13:44 
Visited a golf driving range in Hodogaya Ward, Yokohama. 
 
15:59 
Returned to his private residence. 
 
16:23 
Received acupuncture and moxibustion treatment at a clinic in 
Kita-aoyama. 
 
18:39 
Returned to his private residence. 
 
19:29 
Dined at a French restaurant in Ginza with his family, including 
wife Chikako. 
 
22:08 
Returned to his private residence. 
 
Prime Minister's schedule, October 5, 2008 
 
NIKKEI (Page 2) (Full) 
 
October 6, 2008 
 
10:46 
Took a walk around his private residence in Kamiyama. 
 
13:35 
Met Deputy Chief Cabinet Secretary Matsumoto at his private 
residence. 
 
17:08 
Met family, including wife Chikako, at the Hotel Okura. 
 
19:02 
Met a secretary at the Imperial Hotel. 
 
22:22 
Returned to his private residence. 
 
TOKYO 00002779  010 OF 010 
 
 
 
SCHIEFFER