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RUCNDT/USMISSION USUN NEW YORK 1969

UNCLAS SECTION 01 OF 08 TOKYO 002785 
 
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 10/07/08 
 
Index: 
 
Diplomatic scene: 
1) A/S Hill's report to Secretary Rice indicates agreement on steps 
to verify DPRK nuclear facilities; North Korea may be removed from 
terror list  (Sankei) 
2) Summit meeting between Prime Minister Aso and Chinese President 
Hu set for either Oct. 24 or 25 at ASEM conference''  (Mainichi) 
3) Diplomatic schedule could throw Diet timetable off  (Nikkei) 
4) New anti-terrorism bill that would allow an extension of the MSDF 
refueling mission to be deliberated on starting Oct. 9  (Sankei) 
5) Environmental group under ASEM seek to release statement calling 
for reduction by half of greenhouse gas emissions, but India is 
balking  (Asahi) 
 
Political scene: 
6) Democratic Party of Japan (DPJ) attacking the ruling parties in 
the Diet with three issues: document disclosure, pension fiasco, and 
golden parachute system  (Nikkei) 
7) Budget Committee: LDP clashes with DPJ on where that party would 
find the 22 trillion yen in resources to fund their policy agenda 
(Yomiuri) 
8) Aso positive about a second supplementary budget due to the 
worsening international financial crisis  (Mainichi) 
9) Supplementary budget expected to pass the Lower House on Oct. 8 
(Mainichi) 
10) Diet dissolution likely after the supplementary budget passes, 
with Lower House election in mid to late November  (Asahi) 
 
Articles: 
 
1) U.S. may delist N. Korea 
 
SANKEI (Page 7) (Full) 
October 7, 2008 
 
Takashi Arimoto 
 
WASHINGTON-Assistant Secretary of State for East Asian and Pacific 
Affairs Hill, chief U.S. delegate to the six-party talks over North 
Korea's nuclear weapons program, met Secretary of State Rice on Oct. 
6 to report the results of his talks with North Korea early this 
month. A source from the talks revealed that Hill has basically 
agreed with his North Korean counterpart on such matters as how to 
verify North Korea's nuclear facilities. The agreement, if approved 
by Rice, will be conveyed to Japan and other six-party members. 
Details have yet to be unveiled about the agreement. However, a U.S. 
government official has indicated that the U.S. government would 
delist North Korea as a state sponsor of terrorism for the time 
being if North Korea submits its verification plan to China, which 
presides over the six-party talks. Given this, the United States 
will likely take action to remove North Korea from its terrorism 
blacklist. 
 
State Department Deputy Spokesman Wood, meeting the press on Oct. 6, 
revealed that Hill had a brief conversation with Rice on the morning 
of Oct. 6 (on the evening of Oct. 6 Japan time). At the same time, 
Wood explained that Hill would report details on the afternoon of 
Oct. 6 (early on Oct. 6 Japan time). 
 
Sung Kim, special envoy for the six-party talks, is now staying in 
Seoul, and he is expected to convey the agreement to Japan and South 
 
TOKYO 00002785  002 OF 008 
 
 
Korea. According to the deputy spokesman, the special envoy has no 
plans to visit North Korea again. 
 
Hill visited North Korea on Oct. 1 because North Korea had stopped 
disabling its Yongbyon nuclear facility for resuming its operation. 
In Pyongyang, Hill met with Foreign Minister Pak Ui Chun and Vice 
Foreign Minister Kim Kye Gwan, chief delegate to the six-party 
talks. 
 
Hill returned to Seoul on Oct. 3 and met with the Japanese and South 
Korea chief delegates. On Oct. 4, Hill flew to Beijing to convey the 
results of his talks with North Korea to China and Russia. According 
to a source from the talks, Hill told them that he has reached an 
agreement with North Korea. However, he made no mention of details 
about the agreement, saying he would detail it after obtaining 
Rice's approval. 
 
Wood had expressed the U.S. government's "strong concern" about 
North Korea's move to resume its nuclear facilities' suspended 
operation, and Hill visited North Korea at Rice's instruction. 
President Bush's term of office is to end in January next year. 
Meanwhile, North Korea's nuclear facilities can now hardly be 
disabled. A pundit on North Korea said, "The United States seems to 
be impatient." The U.S. government therefore considered taking a 
flexible stance, such as tentatively delisting North Korea as a 
state sponsor of terrorism, when North Korea presented its 
verification plan to China. 
 
Concerned about the visit of Hill to North Korea, one U.S. expert 
said it was an "overreaction" to North Korea's brinkmanship. "If he 
had exchanged an agreement in written form at the request of North 
Korea," the expert added, "we should take it that he has made 
concessions like delisting that country as a state sponsor of 
terrorism." 
 
2) Japan-China summit to be held on sidelines of Oct. 24-25 ASEM 
 
MAINICHI (Page 2) (Abridged) 
October 7, 2008 
 
By Takashi Suto 
 
Prime Minister Taro Aso has begun coordination to attend the 
Asia-Europe Meeting (ASEM) to be held in Beijing on Oct. 24-25 and 
there hold his first summit meetings with President Hu Jintao and 
Premier Wen Jiabao on the sidelines. The prime minister intends to 
play up his diplomatic policy that gives priority to Asia by 
attending the meeting following the UN General Assembly. 
 
ASEM consists of 45 Asian and European countries and organizations. 
The 1998 ASEM summit meeting released a statement on the Asian 
currency crisis. This time around, the U.S.-originated financial 
crisis has emerged as a major agenda item. 
 
In his UNGA speech, the prime minister played up Japan's role in 
overcoming the financial crisis. He seems eager to demonstrate 
Japan's leadership in the upcoming ASEM summit, as well. 
 
A U.S. newspaper described Aso as a person who had soured relations 
with China and South Korea. Some are concerned about his Asia 
diplomacy. Aware of such concerns, Aso aims to showcase his 
Asia-oriented foreign policy by visiting China at an early date. 
 
TOKYO 00002785  003 OF 008 
 
 
 
In the upcoming Japan-China summit talks, Aso intends to present a 
plan to strengthen the strategically and mutually beneficial 
relations between the two countries by following the former Fukuda 
administration's policy course. Aso is also scheduled to attend a 
ceremony commemorating the 30th anniversary of the signing of the 
Japan-China Peace and Friendship Treaty. 
 
3) Uncertain Lower House election casts shadow over diplomatic 
timetable 
 
NIKKEI (Page 2) (Abridged slightly) 
October 7, 2008 
 
The fluid timetable for the next Lower House election has begun 
casting a pall over foreign affairs. The diplomatic timetable is 
packed with events toward the end of the year. Chief Cabinet 
Secretary Takeo Kawamura indicated in a press briefing yesterday 
that the prime minister must attend the events that must be attended 
by the prime minister as Japan's representative. But the current 
situation makes it difficult for the prime minister to determine his 
responses. 
 
At the top of the prime minister's diplomatic timetable is the 
Asia-Europe Meeting (ASEM) summit to be held on Oct. 24-25 in 
Beijing. China has also invited him to an event commemorating the 
30th anniversary of the signing of the Japan-China Peace and 
Friendship Treaty. This year's Asia-Pacific Economic Cooperation 
(APEC) summit meeting is also scheduled to take place in the 
Peruvian capital of Lima on Nov. 22-23. "If the Lower House election 
were to be held on Nov. 23, we would be able to convey the prime 
minister's good performance (to the APEC forum)," a senior LDP 
lawmaker said. But in reality, it is unthinkable for the prime 
minister to be absent on the election day. 
 
In December, the East Asia Summit and Association of Southeast Asian 
Nations (ASEAN) Plus Three (Japan, China, South Korea) summit are 
scheduled to take place. Coordination is also underway to hold a 
Japan-China-South Korea summit before the end of the year. It is 
time to nail down the diplomatic timetable. 
 
4) Antiterror bill to enter into deliberations on Oct. 9 
 
SANKEI (Page 5) (Full) 
October 7, 2008 
 
The ruling coalition of the Liberal Democratic Party and the New 
Komeito decided yesterday to deliberate in the Diet on a 
government-introduced bill amending the new Antiterrorism Special 
Measures Law to extend the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean for another year, following an 
explanation of the proposed legislation in a plenary sitting of the 
House of Representatives on Oct. 9. The ruling parties will propose 
the deliberation schedule to the opposition parties in a meeting 
today of directors on the House of Representatives Rules and 
Administration Committee. 
 
Prime Minister Taro Aso is willing to start deliberations on the 
legislation before dissolving the House of Representatives. LDP Diet 
Affairs Committee Chairman Tadamori Oshima also said in a TV program 
on Oct. 5, "We should make clear the point at issue in the election 
for the House of Representatives, and we'll also need to handle the 
 
TOKYO 00002785  004 OF 008 
 
 
new antiterror legislation after passing the supplementary budget." 
Meanwhile, Democratic Party of Japan (Minshuto) Diet Affairs 
Committee Chairman Kenji Yamaoka said, "A full-fledged 
administration should handle all the issues but the extra budget." 
With this, Yamaoka called for dissolving the Diet at an early date 
before entering into deliberations on the antiterror bill. 
 
The ruling parties are aiming to explore timing for dissolving the 
House of Representatives by highlighting a point of contention 
between the ruling and opposition parties after starting 
deliberations on the antiterror bill, to which the DPJ and other 
opposition parties are opposed. 
 
5) East Asia Summit's environment ministerial: Draft statement 
includes target of halving greenhouse gas emissions, but India 
expressing opposition 
 
ASAHI (Page 6) (Full) 
October 7, 2008 
 
In the first East Asia Summit's environment ministerial meeting to 
be held in Hanoi on Oct. 9, a joint statement will be adopted. The 
revealed draft of the statement specifies that participants confirm 
the need to adopt a long-term target of reducing global greenhouse 
gas emissions at least by half by 2050. But India and other emerging 
countries will inevitably raise objections. Under the current 
situation, it may be difficult to reach an agreement in the 
meeting. 
 
Japan took the lead in drawing up the draft. It expresses concern 
about the negative effects of global warming from short- and 
long-term perspectives. The draft then emphasizes the need to 
construct an impartial and effective post-Kyoto Protocol framework. 
The draft also positively evaluates a sector-specific approach on 
reducing gas emissions as "effective in promoting emission cuts from 
developing countries," but it is uncertain whether developing 
countries will show understanding on this approach. 
 
Japan is going to stress the necessity to set reduction targets, 
based on an agreement reached in the July Hokkaido Toyako Summit for 
each country to share common long-term goals. But India and other 
countries reportedly have already expressed opposition to the idea 
of including mandatory reduction targets in the joint statement. 
 
Given that such environmental problems as air pollution, water 
shortages, and traffic congestion are becoming serious as a result 
of rapid urbanization in major cities in Asia, the draft statement 
proposes that urban problems should be tackled on a priority basis, 
noting: "Cooperation will be advanced to create environmentally 
sustainable urban areas." Specifically, the draft reveals plans to 
take effective measures to reduce greenhouse gas emissions, such as 
promoting regional cooperation in waste management, effective use of 
water resources, and urban afforestation, as well as countering air 
and water pollution and introducing public transport facilities. 
 
The meeting will bring together 16 countries, including Japan, 
China, India, Australia, and Association of Southeast Asian Nations 
(ASEAN) members. Vietnam proposed holding an environmental 
ministerial, with the aim of translating into action the measures in 
the Singapore Declaration that was adopted in the East Asia Summit 
last November and took up the global warming issue for the first 
time. The ministerial is likely to be made an annual meeting. 
 
TOKYO 00002785  005 OF 008 
 
 
 
6) DPJ grills government over set of three issues -- data prior 
consultations, falsified pension benefits, and amakudari 
 
NIKKEI (Page 2) (Abridged slightly) 
October 7, 2008 
 
In yesterday's Lower House Budget Committee session, Democratic 
Party of Japan Policy Research Committee Vice Chairman Akira 
Nagatsuma took the floor as the first questioner. Nagatsuma grilled 
the government over a set of three issues: the LDP's order to all 
government offices for prior consultations about opposition parties' 
requests for data; government agencies' mediation to help retiring 
officials find reemployment (amakudari); and falsified pension 
records by the Social Insurance Agency. 
 
Prime Minister Taro Aso: "Under a parliamentary system, there is no 
special problem to provide information in compliance with the ruling 
camp's request." 
 
Nagatsuma: "Obtaining data might become more difficult than 
before." 
 
The prior consultation issue was triggered by the Agriculture, 
Forestry and Fisheries Ministry's internal document obtained by the 
DPJ. The document was produced under the date of Sept. 12 in 
compliance with an instruction by LDP Diet Affairs Committee Vice 
Chairman Yoshitaka Murata. The document reads: "Government agencies 
must refrain from presenting data at their own judgments in response 
to requests from opposition parties." It also became clear that 
Murata had ordered all government agencies for prior consultation 
via the Cabinet Affairs Office. 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima explained: "We 
did not tell (government agencies) not to present data. It was part 
of an effort to make rules." The LDP also contended that given an 
increase in administrative work resulting from growing requests for 
data by opposition parties, prior consultations were necessary to 
grasp the actual situation. 
 
As of Oct. 5, MAFF expunged from its internal document the part 
reading: "Data not allowed (by the LDP) for presentation shall be 
revised into data allowed for presentation." But the ministry still 
intends to continue prior consolations on data requested. 
 
There was also a huge gap in views between Nagatsuma and the 
government over the question of falsified standard monthly pension 
benefits by the Health, Labor and Welfare Ministry. Nagatsuma 
repeatedly demanded a sample survey on records that might have been 
tampered with. MHLW Minister Yoichi Masuzoe rejected Nagatsuma's 
demand, saying: "What we are doing is the correct way." Nagatsuma 
also demanded the deadline for cross-checking pension records in 
connection with unidentified pension accounts. In response, the 
prime minister repeatedly said that no one could tell exactly when 
that would end. 
 
Nagatsuma also demanded the government agencies immediately stop 
helping retiring government officials find reemployment. The prime 
minister again stopped short of offering a clear answer. After the 
budget committee session, Nagatsuma expressed his disappointment to 
reporters. 
 
 
TOKYO 00002785  006 OF 008 
 
 
7) Diet debate kicks off on economic policies, focusing on fiscal 
resources to fund policy pledges 
 
YOMIURI (Page 9) (Full) 
October 7, 2008 
 
A full-scale debate over economic policies kicked off between the 
ruling and opposition camps in a meeting of the House of 
Representatives' Budget Committee yesterday. With an eye to the next 
Lower House election for a snap election, both the Liberal 
Democratic Party (LDP) and the Democratic Party of Japan (DPJ) 
criticized as insufficient the other side's explanation about where 
to find the resources to finance policy pledges. 
 
Citing the DPJ's earlier announcement about a plan to raise 
approximately 22 trillion yen by cutting 10 PERCENT  the current 
212-trillion-yen spending in the government's general account and 
special accounts, LDP Policy Research Council Acting Chairman 
Hiroyuki Sonoda said: "What the DPJ says is contradictory," pointing 
out that the accounts contain many items where cuts would be 
difficult. Finance Minister and State Minister in Charge of 
Financial Services Nakagawa also commented in doubt: "If 22 trillion 
yen is tapped out of the 30 trillion yen worked out by subtracting 
expenditures for government bonds and social security outlays (from 
the 212 trillion yen), the people's livelihood will be serious 
affected." 
 
In response, DPJ Policy Research Council Acting Chairman Akimasa 
Nagatsuma retorted: "The DPJ outlined its policy manifesto. Will the 
LDP come up with a manifesto that clarifies from where the fiscal 
resources will come?" 
 
But Prime Minister Aso stopped short of mentioning details about 
fiscal resources, just saying: "A policy manifesto must explain as 
much as possible from where the fiscal resources for policy pledges 
will come." 
 
Aso indicated a willingness to hammer out additional economic 
measures to deal with the U.S. financial crisis and the nation's 
economic slump. A senior Finance Ministry official, though, said: 
"It is difficult to come up with extra measures without issuing 
deficit-covering bonds when tax revenues have declined." On this 
point, too, heated discussion is likely to continue. 
 
8) Prime Minister Aso positive about additional economic package 
 
MAINICHI (Page 2) (Full) 
October 7, 2008 
 
Prime Minister Taro Aso, referring to the plunges in Tokyo stock 
prices at a Lower House Budget Committee session yesterday, stated: 
"Voters are really feeling that the situation is very serious." 
 
Asked by New Komeito Secretary General Kazuo Kitagawa whether he was 
considering forming an additional economic package, Aso said: "If 
there is a judgment that appropriate measures are needed, I will 
take action as a matter of course." He took a forward-looking stance 
toward compiling an additional economic stimulus package. 
 
In this regard, Aso said last night: "I think the stock prices would 
have dropped further (if the United States did not pass a financial 
stabilization law). I will keep close watch on effects on (Japan's) 
 
TOKYO 00002785  007 OF 008 
 
 
real economy." 
 
9) Supplementary budget to clear Lower House as early as Oct. 8 
 
MAINICHI (Page 2) (Full) 
October 7, 2008 
 
The main opposition Democratic Party of Japan (DPJ) decided 
yesterday to accept a plan to take a vote on the fiscal 2008 
supplementary budget bill on Oct. 8 at a plenary session of the 
House of Representatives. A senior DPJ member last night said: "We 
will accept the Oct. 8 voting plan." The largest opposition, 
meanwhile, has demanded concentrated deliberations on such issues as 
the pension-record mess at the Lower House Budget Committee. The 
ruling camp intends to accept the DPJ's demand. A senior ruling 
coalition member revealed the outlook, saying: "It is not sure 
whether the bill will be put to a vote on the 8th but it is certain 
to take a vote on the 9th." As it stands, the supplementary budget 
bill is certain to clear the Lower House before the end of the week. 
 
 
The government and ruling parties intend to enact the supplementary 
budget after holding deliberations for three to four days from Oct. 
14 in the House of Councillors, after it is passed by the Lower 
House. With the DPJ's acceptance of the idea of passing the budget 
bill through the Lower House in the week, the prevailing view in the 
ruling camp is that deliberations in the opposition-controlled Upper 
House will smoothly move forward. 
 
However, the DPJ has put off a conclusion on whether to approve the 
additional budget, since the party executives have entrusted 
President Ichiro Ozawa with a final decision. 
 
10) Growing possibility of Lower House being dissolved after passage 
of supplementary budget; Government, ruling coalition envisage Lower 
House election in mid-November or later 
 
ASAHI (Page 1) (Slightly abridged) 
October 7, 2008 
 
The government and ruling parties yesterday launched deliberations 
on the fiscal 2008 supplementary budget bill at the House of 
Representatives Budget Committee. With an eye to dissolving the 
Lower House and calling a general election, the government and 
ruling coalition began coordination on the idea of formulating a 
second economic stimulus package after the passage of the 
supplementary budget. They are envisaging holding the snap election 
in mid-November or later. However, they may put it off if the 
cabinet support ratings drop. Prime Minister Taro Aso will make a 
final decision after gauging the political and economic situations. 
 
At the Lower House Budget Committee session yesterday, Aso indicated 
that he would place priority on the passage of the supplementary 
budget rather than on Lower House dissolution. He stated: "The 
future of the economy is the main public concern. It is my top 
priority to gain Diet approval of the supplementary budget after 
deliberating on it." 
 
The ruling Liberal Democratic Party had looked into the possibility 
of dissolving the Lower House on Oct. 26 for a Nov. 2 general 
election, taking advantage of the momentum gain through its 
presidential race. However, several factors may have changed the 
 
TOKYO 00002785  008 OF 008 
 
 
LDP's position, among them the global financial crisis, the Aso 
cabinet's starting approval rates were lower than those of the 
Fukuda cabinet, and the embarrassing resignation of transport 
minister Nariaki Nakayama to take responsibility for his careless 
remarks. In addition, the results of the LDP's own pre-election 
survey in late September were reportedly unfavorable, and even 
hinted that the ruling coalition would fail to gain a majority in 
the Lower House. 
 
In a bid to achieve results that can be used for the campaign of a 
general election, the LDP is now looking into the possibility of 
formulating a second supplementary budget, which would include 
concrete measures to stimulate domestic demand. The party plans to 
announce it after the supplementary budget clears the Diet. 
 
SCHIEFFER