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RUCNDT/USMISSION USUN NEW YORK 2009

UNCLAS SECTION 01 OF 11 TOKYO 002813 
 
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 10/09/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Financial panic: 
4) TSE plummets 952 points; yen at one time was 98 to the dollar 
(Nikkei) 
5) Tokyo Stock Exchange's dependence on foreign investors 
underscored by yesterday's nosedive  (Tokyo Shimbun) 
6) Damage heavy to auto and electronics exports due to sudden yen 
appreciation  (Tokyo Shimbun) 
 
War on terror: 
7) Aso government clearing way for Diet approval of bill extending 
the MSDF's refueling mission in the Indian Ocean  (Asahi) 
8) Bill extending the Indian Ocean refueling bill likely to pass the 
Diet this month, but specific issues regarding the mission would 
still remain  (Nikkei) 
 
Defense issues: 
9) Interfax: ASDF chased Russian bombers over Sea of Japan 
(Yomiuri) 
10) Tokyo Foundation wants Japan to possess an second-strike 
capability to retaliate against ballistic missiles  (Yomiuri) 
 
North Korea problem: 
11) Senior Foreign Ministry officials, briefed by U.S. envoy on 
recent U.S.-DPRK agreement, reserve judgment  (Sankei) 
12) U.S. tells Japan that removing North Korea from the 
terror-supporting list is a prearranged policy line  (Asahi) 
13) Japan will support a framework agreement between the U.S. and 
North Korea  (Tokyo Shimbun) 
 
14) Prime Minister Aso to attend ASEM Oct. 24-25 at which the 
financial crisis will lead the agenda  (Asahi) 
 
Diet affairs: 
15) Supplementary budget passes Lower House, opening the way for 
possible Lower House election after Nov. 16  (Nikkei) 
16) Diet sees a kind of reversal of positions of Liberal Democratic 
Party and Democratic Party of Japan  (Tokyo Shimbun) 
17) DPJ head Ozawa leaves hospital bed to return to the Diet masked 
and muffled  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, and Tokyo Shimbun: 
Shimomura wins Nobel Prize in chemistry 
 
Nikkei: 
10 central banks cut interest rates at same time to ease market 
turmoil 
 
Akahata: 
DPJ approves vote on new antiterrorism bill 
 
2) EDITORIALS 
 
 
TOKYO 00002813  002 OF 011 
 
 
Asahi: 
(1) Worldwide stock plunge: Capital injection necessary 
(2) Shimomura wins Nobel Prize in Chemistry 
 
Mainichi: 
(1) Nobel Prize in Chemistry awarded to Shimomura for discovering 
revolutionary tool to explore life phenomena 
(2) Extension of refueling mission must not be used for Lower House 
dissolution 
 
Yomiuri: 
(1) Extra measures needed to prop up economy 
(2) Nobel Prize: Prominent Japanese scientists overseas offer ample 
lessons 
 
Nikkei: 
(1) U.S., European countries must inject capital into markets 
following coordinated rate cuts 
(2) Japan invigorated by four scientists who won Nobel Prizes 
 
Sankei: 
(1) Supplementary budget clears Lower House: DPJ must demonstrate 
pragmatism in policy 
(2) Nobel Prize in Chemistry: Creative research essential 
 
Tokyo Shimbun: 
(1) Extra budget to be enacted: Time to dissolve Lower House 
(2) Young researchers urged to follow Nobel Prize winners 
 
Akahata: 
(1) Seven years of Afghan war: Time to make serious efforts for 
peace 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 8 
 
NIKKEI (Page 2) (Full) 
October 9, 2008 
 
08:03 
Met at Kantei with Deputy Chief Cabinet Secretary Matsumoto. 
 
08:50 
Met with Environment Minister Saito, followed by Welfare Minister 
Masuzoe in the Diet building. 
 
09:00 
Attended Lower House Budget Committee session. 
 
12:09 
Met at Kantei with Chief Cabinet Secretary Kawamura. 
 
12: 32 
Called Yoichiro Nambu, who won the 2008 Novel Prize in Physics. Met 
afterwards with LDP Upper House Diet Affairs Committee Chairman 
Suzuki and Deputy Chief Cabinet Secretary Konoike. 
 
13:00 
Attended Lower House Budget Committee session. 
 
14:50 
 
TOKYO 00002813  003 OF 011 
 
 
Had a catch with Justice Minister Mori. 
 
15:19 
Met at Kantei with LDP Upper House Chairman Otsuji. 
 
15:45 
Met with Argentina's Communications Agency chief Salasu (TN: 
phonetic), attended by Deputy Chief Cabinet Secretary Hayashi. . 
 
16:24 
Met with Foreign Ministry Foreign Policy Bureau chief Bessho. 
 
17:02 
Met with Economic and Fiscal Policy Minister Yosano. 
 
17:32 
Attended Lower House plenary session. 
 
18:39 
Met at Kantei with Bahrain's Prince Salman. 
 
20:47 
Met with Matsumoto at the Bar "Golden Lion" in Imperial Hotel. 
 
23:10 
Returned to his private residence in Kamiyama-cho. 
 
4) Nikkei Stock Average plummets 952 points to close at 9,203, 
raising worries about market turmoil; Yen temporarily tests 98 
against dollar 
 
NIKKEI (Page 1) (Excerpt) 
October 9, 2008 
 
The benchmark Nikkei Stock Average on October 8 fell for five 
consecutive days to close at 9,203.32, down 9.38 PERCENT  or 952.58 
points from the previous day. It was the lowest level in five years 
and three months and the third-sharpest percentage fall ever. The 
dollar and the euro sharply dropped against the yen with the yen 
temporarily going below 100 against the dollar for the first time in 
six months. A sense of alarm about a decline in the global economy 
is further growing due to the financial crisis in the U.S. and 
Europe. 
 
5) TSE plunges, exposing Japan's dependence on foreign capital 
 
TOKYO SHIMBUN (Page 9) (Full) 
October 9, 2008 
 
In the wake of the deepening U.S. financial crisis, Tokyo stocks 
continued to fall yesterday, October 8, with the benchmark Nikkei 
Stock Average sliding to the third lowest level in the postwar 
period. The margin of the dive of Japanese shares is larger than 
that of the U.S., where the financial crisis started, exposing that 
the Japanese market largely depends on foreign capital. 
 
Stock markets in South Korea and Hong Kong also plummeted yesterday. 
The Indonesian market suspended trading. Asian markets have thus all 
collapsed. 
 
The U.S., which has accepted investment funds from all over the 
world and put them into the markets and economies of various 
 
TOKYO 00002813  004 OF 011 
 
 
countries, has been serving as the heart of the global economy. 
 
However, the global economy is in a moribund state with the U.S. 
financial system becoming dysfunctional. Market instability is 
mounting to the maximum, because various countries are stalled in 
taking countermeasures. 
 
The fall of the Japanese market is particularly noticeable. The 
closing price of the Nikkei Stock Average index yesterday dropped 
49.6 PERCENT  from the latest high of 18,261.98 en marked in July 9, 
¶2007. In contrast, the closing quotation of the Dow-Jones average 
index on the 7th was down only 33.3 PERCENT , compared with the 
latest high. 
 
Commenting on the large fall of stocks in Japan, which is not 
supposed to be facing a serious financial crisis, Yutaka Miura, a 
senior technical analyst at Shinko Securities noted, "The trend 
indicates that Japan highly depends on foreign capital." 
 
According to the TSE, foreign investors commanded about 60 PERCENT 
of trading value in 2007. Foreign investors' share holding ratio on 
major stock markets in Japan increased to approximately 28 PERCENT 
in fiscal 2007 from 14 PERCENT  in fiscal 1998. 
 
An analyst at a certain leading securities house said that Japan is 
subject to foreign capital with foreign banks and hedge funds, which 
are hard-pressed for capital, unloading Japanese shares. 
 
Japan has neglected to take measures to boost domestic demand 
following the government's deregulation policy and address the 
effect of the declining birthrate even after it settled the bad loan 
problem. Its vulnerability has apparently been exposed suddenly due 
to the financial crisis. 
 
6) Strong yen hits auto, electronics industries 
 
TOKYO SHIMBUN (Page 9) (Lead para.) 
October 9, 2008 
 
The yen's buoyancy is accelerating, testing 100 yen on the Tokyo 
foreign exchange market on October 8. The sharp rise in the value of 
the yen is bound to affect exports, which support the backbone of 
the Japanese economy. Auto and electronics industries, whose export 
ratio is high, will inevitably face a decline in business 
performance, compounded by sluggish sales in the wake of the ailing 
economy. There is a strong possibility of the situation dealing a 
further blow to the Japanese economy. 
 
7) Japan to extend refueling mission, clearing the "demon's gate" 
for the Aso administration 
 
ASAHI (Page 4) (Excerpts) 
October 9, 2008 
 
By Keiichi Kaneko, Atsuko Niuchi 
 
It has now become likely that a bill amending the refueling 
assistance special measures law to continue the Maritime 
Self-Defense Force's refueling mission in the Indian Ocean will 
obtain Diet approval in the current session. Clearing the "demon's 
gate" that has baffled the former Abe and Fukuda cabinets, Prime 
Minister Taro Aso is now likely to preserve his face by keeping his 
 
TOKYO 00002813  005 OF 011 
 
 
international pledge of Japan remaining committed to the war on 
terror. 
 
Chief Cabinet Secretary Takeo Kawamura in yesterday's press briefing 
gave a positive assessment to the DPJ's decision to take an early 
vote on the refueling bill, saying: "We expect that an additional 
supplementary budget will be the next bill. Such a development 
should be welcomed." He also emphasized the significance of the 
continuation of the refueling mission by referring to it as one of 
Japan's showcase contributions to the international community. 
 
The government has defined the refueling mission in the Indian Ocean 
and the airlift operation in Iraq as pillars of Japan's 
contributions to the U.S.-led war on terror. The government, 
however, plans to withdraw before the end of the year the Air 
Self-Defense Force that has been engaged in the airlift mission, so 
continuing the refueling mission is the least Japan can do, 
according to Foreign Minister Nakasone. 
 
Regardless of which candidate, Republican or Democratic, wins the 
presidential election next month, the United States is certain to 
shift its focus from Iraq to Afghanistan in the war on terror. There 
has been strong concern in the government, with a senior Foreign 
Ministry official saying: "Many countries have sent additional 
troops to Afghanistan. If Japan fails to extend the refueling 
mission, Japan's relations with a new U.S. administration would be 
less than desirable." 
 
A high-ranking government official also noted: "If we end the ocean 
refueling mission, we would encounter a higher hurdle: a request for 
the dispatch of the SDF to mainland Afghanistan." 
 
The U.S. side has recently strongly called Japanese government 
officials and ruling party executives for the enactment of the 
legislation. The continuation of the refueling mission, along with 
economic stimulus measures, is paramount for Prime Minister Aso, who 
has given top priority in his foreign policy agenda to strengthening 
the Japan-U.S. alliance. In fact, in his Sept. 25 UN General 
Assembly speech, the prime minister declared: "Japan will continue 
to participate proactively in the war on terror." 
 
Under the divided Diet, the continuation of the refueling mission 
has been a weighty challenge to successive administrations. Former 
Prime Minister Shinzo Abe announced his resignation from office 
three days after indicating that he would stake his job on the 
extension of the refueling mission. His successor, Yasuo Fukuda, 
managed to enact the refueling assistance special measures law by 
using a two-third House of Representatives override vote, after 
extending the extraordinary Diet session twice. 
 
But even after extending the refueling mission, the government is 
likely to remain under pressure for additional contributions. A U.S. 
Defense Department official, who visited Japan in July as the U.S. 
presidential envoy, asked Japanese government officials for 
assistance in addition to the refueling operation. Included in the 
request seemed to be additional funds for strengthening the 
Afghanistan national army. 
 
A Foreign Ministry official said: "International expectations for 
Japan will not drop. The United States, too, pins high hopes on 
Japan." 
 
 
TOKYO 00002813  006 OF 011 
 
 
8) Bill to extend refueling mission likely to pass Diet this month, 
but problems are left 
 
NIKKEI (Page 2) (Full) 
October 9, 2008 
 
With the Democratic Party of Japan's (DPJ) decision yesterday to 
approve a quick taking of a vote on a bill amending the New 
Antiterrorism Special Measures Law, prospects are now in sight for 
Japan to be able to continue the Maritime Self-Defense Force's 
refueling mission in the Indian Ocean beyond its expiration in 
January. But the U.S. has unofficially asked Japan to pay up to 20 
billion dollars (about 2 trillion yen) as part of Afghan war costs. 
The nation's cooperation in the war on terror has brought with it 
many challenges to face. 
 
With the refueling bill likely to pass the Diet by the end of this 
month, government officials are relieved at the development. One 
official said: "We can probably manage to avoid a worst-case 
scenario." The rationalization for the bill will be explained in a 
meeting of the House of Representatives Antiterrorism Special 
Committee tomorrow, and deliberations will start after the 
supplementary budget bill clears the Diet. 
 
Japan has decided to withdraw Self-Defense Force troops from Iraq 
later this year. Given this, the refueling service in the Indian 
Ocean will be Japan's sole "visible contribution" to the war on 
terror, in which the international community is taking part. A 
senior Foreign Ministry official voiced concern that a suspension of 
the refueling operation would not only throw ice on the Japan-U.S. 
relationship but lower Japan's status in the international 
community. 
 
The refueling mission, though, is just the beginning of Japan's 
cooperation in the war on terror. Excluding Japan and Russia, the 
other Group of Eight (G-8) member countries have dispatched troops 
for operations on the ground of Afghanistan. Under the worsening 
security situation in the nation, victims and war costs have been 
increasing. 
 
Under such circumstances, the U.S. has unofficially asked Japan to 
pick up a portion of Afghan war costs. U.S. Deputy Assistant 
Secretary of Defense Bobby Wilkes, when he visited Japan in late 
July, expressed hopes for Japan's payment of up to 20 billion 
dollars as part of war expenses over five years, if it is difficult 
to send SDF troops to Afghanistan. It is likely that the Aso cabinet 
will be sought to offer more than just the refueling service. 
 
9) Interfax: ASDF chased Russian bombers over Sea of Japan 
 
YOMIURI (Page 2) (Full) 
October 9, 2008 
 
Toshikazu Seguchi, Moscow 
 
The Interfax reported on Oct. 8 on a Russian Air Force official's 
account that two Russian strategic bombers had been chased by Japan 
Air Self-Defense Force F-15 fighters twice while on a training 
flight over the Sea of Japan and that two Sukhoi-27 fighters 
scrambled to defend the bombers. The Russian military claimed that 
the bombers in question were flying over the high seas and that they 
did not violate Japan's territorial airspace. 
 
TOKYO 00002813  007 OF 011 
 
 
 
The chases occurred between 1:00 and 2:30 p.m. Oct. 8, Japan time. 
According to the report, two Tu-22M3 supersonic bombers from a 
Russian coastal area were chased by two ASDF F-15 fighters from 
Hokkaido's Chitose Base for about 30 minutes. Later, they were also 
chased for four minutes by two different F-15s from the Hyakuri Base 
in Ibaraki Prefecture. 
 
10) Tokyo Foundation calls for Japan to possess second-strike 
capability in dealing with ballistic missile attacks 
 
YOMIURI (Page 4) (Full) 
October 9, 2008 
 
The Tokyo Foundation, a policy study institute, released a report 
calling on Japan to possess a second-strike capability against enemy 
bases in order to retaliate against ballistic missile attacks and to 
change the government's interpretation of the Constitution regarding 
the right to collective self-defense. The report "A New Japanese 
Security Strategy," which was produced under the lead of Tokyo 
University professors Akihiko Tanaka and Shinichi Kitaoka, will soon 
be posted on its website. 
 
Defining the possession of capabilities to counter a ballistic 
missile attack as one of the priority agenda items for Japanese 
security, the report specifies that Japan and the U.S. should 
possess a second-strike capability against enemy bases. The report 
points out the need to convince the opponent of its capability to 
take retaliation measures against a first strike threat. To this 
end, the report suggests Japan should take these specific measures: 
(1) improve the missile defense (MD) system; (2) introduce the 
Tomahawk Land Attack Missile; and (3) have fighters that possess 
attack capabilities. 
 
11) Japan reserves judgment on U.S.-N. Korea deal 
 
SANKEI (Page 4) (Abridged) 
October 9, 2008 
 
Sung Kim, U.S. envoy for the six-party talks over North Korea's 
nuclear programs, called at the Foreign Ministry yesterday to meet 
with Asian and Oceanian Affairs Bureau Director General Akitaka 
Saiki, Japan's chief delegate to the six-party talks. In the 
meeting, Kim gave detailed explanations about the basic agreement 
that was reached between the United States and North Korea during 
his Oct. 1-3 visit to North Korea with Assistant Secretary of State 
Hill, chief U.S. delegate to the six-party talks, on specifics about 
the agreement, including how to verify North Korea's nuclear 
facilities. U.S. Ambassador to Japan Schieffer was also present at 
the meeting. 
 
Meanwhile, North Korea recently threatened to resume its Yongbyon 
nuclear facilities' operation. In response to that move, the United 
States has given North Korea such concessions as the need to acquire 
North Korea's concurrence when inspecting its nuclear facilities. 
Kim is believed to have explained this agreement. The United States 
has so far demanded spot inspections over North Korea's declaration 
of its nuclear programs. 
 
The basic agreement between the United States and North Korea, if 
approved by the four other members of the six-party talks, will 
become formal. However, a senior official of the Foreign Ministry 
 
TOKYO 00002813  008 OF 011 
 
 
says yesterday evening: "We just heard about this today, so we 
cannot say right away that we agree. This is the stage where we just 
want to say 'let us consider it for a while,' and (nuclear) experts 
also need to check it." 
 
12) N. Korea delisting an established policy: Japan after being 
briefed by U.S. envoy 
 
ASAHI (Page 9) (Full) 
October 9, 2008 
 
Sung Kim, U.S. envoy for the six-party talks on North Korea's 
nuclear programs, called at the Foreign Ministry yesterday to brief 
Asian and Oceanian Affairs Bureau Director General Akitaka Saiki and 
other officials on U.S. Assistant Secretary of State Hill's meeting 
with his North Korean counterparts during his visit to North Korea 
last week. In response to the briefing, a Japanese government source 
connected to the six-party talks said the United States' delisting 
of North Korea as a state sponsor of terrorism is "an established 
course of action" and "it cannot be helped." 
 
Hill appears to have concurred during his visit to North Korea that 
the United States would delist North Korea as a state sponsor of 
terrorism if North Korea comes up with a plan to verify its Yongbyon 
nuclear facilities and other relevant facilities. In addition, the 
United States seems to have forgone verifying uranium enrichment 
activities and nuclear proliferation to other countries. 
 
"It's close enough," a senior official of the Foreign Ministry said 
after the meeting. The official added, "Japan won't end up pouring 
water on what the United States has worked so hard to do." 
 
"In time, they will have to verify uranium enrichment and nuclear 
proliferation, even if there are delays, but this must be confirmed 
in written form, or we cannot accept it." So saying, a Japanese 
government source for the six-party talks explained Japan's 
position. Japan is concerned that the United States, with the 
current administration at its last stage, may make "easygoing 
concessions," according to the source. In the meeting yesterday, 
Japanese government officials therefore avoided giving a ready 
answer to Kim. Instead, Saiki told Kim that the Japanese government 
would convey its judgment to the U.S. government after experts have 
analyzed Kim's brief on the agreed plan. However, the Japanese 
government will likely accept it, with its officials seeing no major 
problem. If other six-party members also accept the agreement 
reached between the United States and North Korea, the six-party 
talks could be resumed. 
 
13) Japan basically supports U.S., N. Korea agreement on framework 
for nuke verification 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 9, 2008 
 
The United States and North Korea have concurred on a framework for 
nuclear verification over North Korea's nuclear programs, Sung Kim, 
the U.S. envoy for the six-party talks, revealed in his meeting 
yesterday evening with the Foreign Ministry's Asian and Oceanian 
Affairs Bureau Director General Akitaka Saiki. 
 
Kim visited North Korea for three days from Oct. 1 with Assistant 
Secretary of State for East Asian and Pacific Affairs Hill. In North 
 
TOKYO 00002813  009 OF 011 
 
 
Korea, they met with Vice Foreign Minister Kim Kye Gwan and other 
North Korean counterparts to work out a plan for specific procedures 
to verify North Korea's declaration of its nuclear programs. 
According to a senior Foreign Ministry official, the agreed plan 
does include any wording for the United States to delist North Korea 
as a state sponsor of terrorism. "The plan sounds good," the 
official said. 
 
"We appreciate the efforts you've made to move the six-party talks 
forward," Saiki told Kim in the meeting, indicating that the 
Japanese government will basically support the framework plan. 
 
14) Aso to attend Beijing ASEM summit on Oct. 24-25 to discuss 
global financial crisis 
 
ASAHI (Page 4) (Full) 
October 9, 2008 
 
Prime Minister Aso has decided to attend the Asia-Europe Meeting 
(ASEM) Summit in Beijing on Oct. 24-25, in which the U.S.-triggered 
financial crisis will be high on the agenda. Aso is expected to 
discuss remedial measures with the leaders of Asian and European 
countries, with the aim of easing anxiety in the domestic market. 
Coordination is also underway to set his first meetings with Chinese 
leaders. 
 
Aso has a strong sense of alarm about the current economic 
situation, calling it "as serious as (the Great Depression in) 
1929." He intends to seek ways to cooperate with China, which is 
becoming more influential in financial markets, in dealing with the 
crisis. 
 
When global stock markets are tumbling, the government may propose 
to set up a new forum to discuss financial issues, setting aside 
from the ASEM framework, as Chief Cabinet Secretary Kawamura said: 
"How should Japan cooperate with Asia? Japan as an economic power 
must play a central part." 
 
Arrangements are being made for Aso to hold meetings with President 
Hu Jintao and Premier Wen Jiabao. He is also expected to attend the 
ceremony in commemoration of the 30th anniversary of the conclusion 
of the Treaty of Peace and Friendship between Japan and China. 
Taking into consideration the widespread impression of him as 
hawkish, Aso is willing to underscore his willingness to take joint 
steps with China, South Korea, and other Asian countries. 
 
With the decision on the prime minister's China visit, the 
government will find the most appropriate timing for House of 
Representatives dissolution while taking into consideration the 
economic situation and other factors after his return to Japan. 
 
15) Extra budget clears Lower House; Lower House election after Nov. 
16? 
 
NIKKEI (Page 1) (Full) 
October 9, 2008 
 
A supplementary budget for fiscal 2008 worth 1.8081 trillion yen to 
finance the government-drafted emergency economic package was 
approved last evening in a plenary session of the House of 
Representatives by a majority of lawmakers from the ruling parties, 
the opposition Democratic Party of Japan (DPJ), and others. The 
 
TOKYO 00002813  010 OF 011 
 
 
extra budget bill was then sent to the House of Councillors. Since 
the DPJ intends to approve the bill in the Upper House, as well, the 
legislation is expected to clear the Diet next week. With the 
outlook that a bill extending Japan's refueling mission in the 
Indian Ocean beyond next January will be enacted before the end of 
October, the prevailing view is that a Lower House election will be 
held after Nov. 16. 
 
Prime Minister Taro Aso last night expressed strong desire for 
passage of the refueling bill, telling reporters at the Prime 
Minister's Official Residence: "There is no option for Japan to 
withdraw from Afghanistan, abandoning the war on terror." 
 
The ruling coalition and the DPJ yesterday agreed to launch 
deliberations on the bill after enacting the extra budget next week. 
Therefore, the legislation will likely clear the Diet late next 
month. Since prospects for the two important bills are in sight, Aso 
will launch full-fledged coordination on a timetable for Lower House 
dissolution and a snap election. The worsening of the 
U.S.-originated financial crisis may affect the timing of Lower 
House election. 
 
Aso plans to draw up an additional economic stimulus package to 
expand domestic demand after the extra budget clear the Diet. If he 
wants to have a second extra budget passed during the ongoing Diet 
session, the Lower House election will be pushed back to the end of 
the year. However, no sign of an agreement is yet in sight because 
the New Komeito, the coalition partner of the ruling Liberal 
Democratic Party, has called for an early Lower House election. 
 
16) LDP, DPJ trading positions, with LDP cautious about Diet 
dissolution, unhurried about vote-taking, and DPJ critical about 
extending deliberations 
 
TOKYO SHIMBUN (Page 2) (Excerpt) 
October 9, 2008 
 
The Indian Ocean refueling operations that had been considered 
difficult to continue suddenly are looking like becoming a real 
possibility. The Democratic Party of Japan (DPJ) in order to speed 
up dissolution of the Lower House has agreed to an early vote on a 
bill amending the new refueling law. On the other hand, the Liberal 
Democratic Party (LDP), which has grown increasingly cautious about 
an early dissolution, has been calling for full deliberations on the 
bill. An unusual development has occurred in which the positions of 
the ruling and opposition camps, including their intentions about 
Diet dissolution, have been reversed. 
 
17) Ozawa, desperate to put cap on bad-health rumor, attends Diet 
wearing mask and muffler 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 9, 2008 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa, who has been 
hospitalized after developing complications from a cold, attended 
last evening's plenary session of the House of Representatives. The 
DPJ is desperately trying to cap the rumor that Ozawa is in bad 
health. 
 
At the plenary hall, Ozawa chatted pleasantly as usual with Deputy 
President Naoto Kan and Secretary General Yukio Hatoyama, who both 
 
TOKYO 00002813  011 OF 011 
 
 
sat next to him. 
 
After the plenary session, however, Ozawa entered the party's 
executive office, wearing a mask and muffler. 
 
Ozawa caught a cold from fatigue from his tight schedule, including 
his nationwide political tour in September. His voice is hoarse. He 
entered hospital on the evening of Oct. 6, but he then attended a 
meeting on the evening of the 7th, leaving the hospital. He is 
scheduled to be hospitalized for a couple of days to continue to be 
put on an IV drip. 
 
He cancelled press conferences and other events because he fell sick 
on voting day of last year's House of Councillors election. Feeling 
symptoms of angina, he was admitted to a hospital for ten days after 
being reelected as president of the LDP at a party convention in 
September 2006. 
 
The lingering rumor that he is in bad health is a negative factor 
for a prime ministerial candidate. DPJ Diet Affairs Committee 
members had asked him to attend the Lower House plenary session 
yesterday. Ozawa's aide stressed that he had checked in to a 
hospital for a rest, saying: "He is taking a rest at hospital as 
usual. It's good for him to take a rest before the upcoming Lower 
House election." 
 
SCHIEFFER