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UNCLAS SECTION 01 OF 10 TOKYO 002824 
 
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 10/10/08 
 
Index: 
 
1) Japan to propose at G7 new IMF loans for newly emerging 
countries, using reserve funds of Japan, China, etc., and aimed at 
stemming global financial crisis  (Nikkei) 
 
War on terror: 
2) Ambassador Schieffer welcomes pending passage of Japan's bill 
extending the MSDF refueling mission in the Indian Ocean  (Asahi) 
3) PACOM Commander Adm. Keating stresses continuing importance of 
Japan's refueling mission in the Indian Ocean  (Nikkei) 
4) U.S. sounds out Japan on extra assistance for mainland 
Afghanistan, including funds for UN training, medical care 
(Yomiuri) 
5) Government having trouble responding to U.S. request for Japan to 
provide additional assistance to Afghanistan due to fiscal 
constraints  (Yomiuri) 
6) Anti-terrorist bill extending Indian Ocean mission to Jan. 2010 
could be enacted as early as Oct. 24  (Sankei) 
 
North Korea problem: 
7) U.S. sounds out Japan about going along with removal of North 
Korea from list of terrorist-sponsoring countries  (Nikkei) 
8) U.S. special envoy indicates that removal of North Korea from 
terror-backing list will not be rushed  (Yomiuri) 
9) Tokyo has feeling of impasse on the abduction issue, but will 
continue extending sanctions of North Korea  (Asahi) 
 
Election prospects: 
10) Yomiuri poll finds 58 PERCENT  of public willing to give the 
Democratic Party of Japan a chance to run the country  (Yomiuri) 
11) Prime Minister Aso setting the environment for a general 
election by instructing addition economic measures that might 
require issuance of deficit bonds  (Yomiuri) 
12) Aso keeps putting off decision on Diet dissolution until after 
October  (Tokyo Shimbun) 
 
13) Government plans to shelve plan to restrict foreign capital from 
investing in domestic airports  (Mainichi) 
 
Articles: 
 
1) Japan to propose at G-7 use of foreign reserves for IMF emergency 
loans to rapidly emerging countries 
 
NIKKEI (Top Play) (Excerpts) 
October 10, 2008 
 
The government will call on the International Monetary Fund (IMF) to 
establish an emergency lending program that taps the vast foreign 
currency reserves of Japan and other cash-rich countries to help 
emerging countries reeling from domestic financial turmoil. The aim 
is to contain the global financial crisis with the consolidation of 
a framework for international financial assistance to countries that 
need a large amount of fiscal funds to pump public money into their 
domestic financial institutions. Finance Minister and State Minister 
for Financial Policy Shoichi Nakagawa is to make the proposal at a 
meeting of the Group of Seven (G-7) finance ministers and central 
bankers to be held in Washington on October 10. He will also urge 
China and oil-producing Middle Eastern countries with ample foreign 
reserves to come on board. 
 
 
TOKYO 00002824  002 OF 010 
 
 
As the U.S. financial crisis spreads to Europe and emerging 
countries, a batch of smaller countries are being forced to bail out 
financial institutions that have assets that dwarf government 
coffers. 
 
Iceland, which has nationalized major domestic banks because of the 
financial meltdown, declaring an emergency situation, is a typical 
example of such a case. Its largest bank has assets that are six 
times Iceland's GDP, which stands at approximately 1.2 trillion yen. 
The second largest bank's assets are 3.7 times Iceland's economy. 
Since that nation needs massive funds beyond its economic 
capability, it is now undergoing talks with Russia to borrow 
approximately 550 billion yen. The Icelandic government has decided 
to guarantee all the deposits and bonds held by six domestic banks. 
The challenge now is to secure funds to finance the plan. 
 
Though the IMF allows member nations emergency access to funds 
equivalent to their contribution amounts, there is likely to be an 
increase in countries seeking way more than what they give. 
 
Japan's proposal would lend funds beyond the usual amount to small- 
and medium-size countries, whose management of the state could face 
a serious setback with their fiscal funds depleted due to the 
injection of massive amounts of money into financial institutions. 
G-7 members, such as the U.S. and European countries, will not be 
eligible for this assistance scheme. 
 
The envisaged facility would be set up by the IMF, which would ask 
borrower nations to submit a financial restructuring plan, including 
drastic measures to clean up bad loans. Financing would be extended 
upon approval of the IMF board. 
 
The emergency financing is to be funded by the approximately 200 
billion yen reserved for assistance to IMF member nations as well as 
from loans provided, where necessary, by Japan and other countries 
from their foreign currency reserves. Nakagawa will propose this 
government plan at such venues as the G-7 and IMF-related meetings. 
He will also seek cooperation from China and Middle Eastern oil 
nations. 
 
2) U.S. envoy welcomes refueling extension 
 
ASAHI (Page 4) (Full) 
October 10, 2008 
 
The Diet is now expected to pass a government-introduced bill 
amending a refueling assistance special measures law to extend the 
Maritime Self-Defense Force's refueling activities in the Indian 
Ocean. "We greatly welcome it," U.S. Ambassador to Japan Schieffer 
told the press, including the Asahi Shimbun, in an interview 
yesterday. "It may be difficult to dispatch troops (Self-Defense 
Forces) under the Constitution," Schieffer said. "But," he added, 
"we hope Japan will do something in Afghanistan, in addition to the 
activities in the Indian Ocean." With this, he expressed hope that 
Japan would take measures, including financial aid, to help 
stabilize Afghanistan. 
 
3) Refueling still important: U.S. commander 
 
NIKKEI (Page 2) (Full) 
October 10, 2008 
 
 
TOKYO 00002824  003 OF 010 
 
 
Defense Minister Yasukazu Hamada met with U.S. Pacific Command 
(PACOM) Commander Keating yesterday evening at the Defense Ministry. 
In the meeting, Keating requested Japan continue the Maritime 
Self-Defense Force's current refueling activities in the Indian 
Ocean. "It's still very important," Keating said. "We hope Japan 
will continue the activities," he added. Hamada said, "I want to 
make efforts so this can obtain Diet and public endorsement." 
Takashi Saito, chief of the Self-Defense Forces' Joint Staff Office, 
was also present at the meeting. 
 
4) U.S. unofficially asks Japan for aid to mainland Afghanistan, 
eyeing funds for training troops, medical services 
 
YOMIURI (Page 1) (Full) 
October 10, 2008 
 
The U.S. government has sounded out the Japanese government for 
financial assistance to improve Afghan troops' capabilities, 
extensive medical services, including the dispatch of doctors, and 
for aid to Provisional Reconstruction Team (PRT), according to 
government sources yesterday. 
 
U.S. Deputy Assistant Secretary of Defense Bobby Wilkes informed 
Japan of the U.S. government's request for Japan's contributions in 
the war against terror in Afghanistan when he visited Japan in late 
July. Japan has reserved consideration of the possibility, citing 
the need to make utmost efforts for domestic coordination to 
continue the Maritime Self-Defense Force's refueling mission in the 
Indian Ocean. 
 
According to the sources, the U.S. believes that the number of 
Afghan troops should be increased to about 130,000 to stabilize the 
security situation in the nation. Estimating that nearly 2 trillion 
yen would be needed to cover the troops' salaries and training 
expenses, as well as to improve their equipment, the U.S. conveyed 
to its allies its intention to ask them for more financial 
contributions. 
 
The planned medical assistance would cover entire Afghanistan, and 
the U.S. expects Japan to dispatch doctors and help improve medical 
facilities, such as hospitals. The bolstered medical services are 
believed to also cover the treatment of sick and injured soldiers of 
the International Security Assistance Force (ISAF). The Japanese 
government has already provided financial aid to some of the PRT. 
The U.S. government apparently hopes for Japan to make larger 
contributions to this program. 
 
5) Government worried over U.S. request for extra aid in 
Afghanistan, given the fiscal constraints 
 
YOMIURI (Page 2) (Excerpts) 
October 10, 2008 
 
The Japanese government is worried over what its contribution should 
be to fight the war on terror in Afghanistan. Although the U.S. 
government has unofficially asked Japan for extra contributions to 
that country, Japan cannot easily reach a decision, for it faces a 
number of problems such as making legal preparations, the security 
situation in that country, and Japan's severe fiscal situation. 
 
Chief Cabinet Secretary Kawamura said in a press conference 
yesterday: "It is true that the international community, including 
 
TOKYO 00002824  004 OF 010 
 
 
the U.S., hopes Japan will make more contributions to ongoing 
efforts in Afghanistan," adding: "The U.S. is aware that Japan 
should make a decision to provide assistance on its own." 
 
Japan has joined the war against terror in Afghanistan by offering 
refueling service by the Maritime Self-Defense Force in the Indian 
Ocean. To continue the service, it is necessary to get a bill 
amending the New Antiterrorism Special Measures Law through the 
Diet. Prospects are now in sight to enact the bill, as the 
Democratic Party of Japan, which gives priority to dissolving the 
House of Representatives, has taken a cooperative stance about the 
bill. A Foreign Ministry source said: "The refueling operation is 
safer and cheaper than personnel contributions on the ground of 
Afghanistan." 
 
In Afghanistan, however, a fight is intensifying between the Taliban 
and the multinational force and the International Security 
Assistance Force (ISAF), which are participating in Operation 
Enduring Freedom (OEF). When many countries have decided to send 
more troops to that nation, calls are growing for Japan to make 
contributions on the ground of the nation. 
 
Keeping such voices in mind, the Japanese government once looked 
into dispatching helicopters possessed by the Self-Defense Force to 
Afghanistan, but it had to give it up in the end because new 
legislation is needed to do so. Taking such circumstances of Japan 
into consideration, the U.S. has sounded out Japan on cooperation 
centering on financial aid as its possible contribution. 
 
6) Legislation to extend refueling mission until Jan. 2022 likely to 
pass Diet on Oct. 24, at earliest 
 
SANKEI (Page 2) (Excerpts) 
October 10, 2008 
 
A bill amending the New Antiterrorism Special Measures Law is likely 
to pass the Diet later this month. The bill is designed to extend 
the ongoing Maritime Self-Defense Force's refueling mission in the 
Indian Ocean beyond its January expiration. This development 
followed a suggestion yesterday by the Democratic Party of Japan 
(DPJ), which is opposed to the bill, to put the bill to the vote in 
a meeting of the House of Representatives Special Committee on Oct. 
¶20. The bill will be voted down in the opposition-controlled House 
of Councillors but will be reinstated by a two-thirds lower chamber 
overriding vote on the 24th, at the earliest. 
 
The legislation will make it possible for Japan to continue the 
refueling operation, which Japan has labeled as its main 
contribution in the war on terror, until January in 2022. 
 
The Lower House Antiterrorism Special Committee decided in its 
executive meeting yesterday to hold a session for explanations about 
the rationalization for the government-sponsored bill and a 
counterproposal by the DPJ today and deliberations on the bill on 
the 17th and the 20th. The DPJ proposed in the meeting taking a vote 
on the 20th. The bill is likely to be approved by a majority from 
the ruling camp and clear the Lower House on the 21st. 
 
The DPJ intends to vote the bill after few days of deliberations in 
the House of Councillors. After it is voted down in the Upper House 
on the 24th, at the earliest, the bill will be enacted by an 
override vote in a Lower House plenary session the same day. 
 
TOKYO 00002824  005 OF 010 
 
 
 
The refueling service was suspended last November but was resumed in 
February as the New Antiterrorism Special Measures Law was enacted 
by a revote in the Lower House this January with approval from the 
ruling camp. The said law is to expire on Jan. 15. 
 
7) U.S. sounds Japan out on delisting of North Korea as state 
sponsor of terrorism 
 
MAINICHI (Page 2) (Full) 
October 10, 2008 
 
It has been learned that U.S. special envoy to the six-party talks 
Sung Kim informally sounded Japan in his meeting on Oct. 8 with 
Foreign Ministry Asian and Oceanian Affairs Bureau Director General 
Akitaka Saiki Japan on the U.S. policy of delisting North Korea as a 
state sponsor of terrorism if the United States and North Korea 
agreed on the framework of verification of North Korea's nuclear 
report. The Bush administration has been motivated to find a 
breakthrough in the deadlocked situation in order to produce 
achievements on the U.S.-DPRK negotiations at its final stage prior 
to the presidential election in November. 
 
In the meeting on Oct. 8, special envoy Kim briefed Saiki on the 
details of the framework of verification discussed between 
Washington and Pyongyang. Saiki elaborated yesterday to Prime 
Minister Taro Aso. After closely studying the contents, the Japanese 
government plans to discuss anew with the United States and South 
Korea. 
 
8) Delisting not ready yet: U.S. envoy 
 
YOMIURI (Page 2) (Full) 
October 10, 2008 
 
Satoshi Ogawa 
 
WASHINGTON-Sung Kim, the U.S. Department of State's special envoy 
for the six-party talks over North Korea's nuclear programs, told 
reporters yesterday at an airport in the suburbs of Washington that 
the U.S. government has yet to decide whether to delist North Korea 
as a state sponsor of terrorism. "We haven't made that decision 
yet," Kim said. With this, he clearly denied some news reports 
saying the U.S. government has told the Japanese and South Korean 
governments that the United States would delist North Korea this 
month. Kim returned home after briefing the Japanese and South 
Korean governments on the results of the recent visit to North Korea 
of Assistant Secretary of State Christopher Hill, chief U.S. 
delegate to the six-party talks. 
 
The Foreign Ministry's Asian and Oceanian Affairs Bureau Director 
General Akitaka Saito, who represents the Japanese government at the 
six-party talks, reported to Prime Minister Aso yesterday at his 
office that the United States and North Korea have basically 
concurred on procedures to verify North Korea's nuclear declaration. 
The Japanese government will remind the U.S. government of Japan's 
standpoint. "There's also a question mark about the agreement," a 
government source said. 
 
9) Abduction issue: Sense of frustration in government; Sanctions to 
be extended against North Korea 
 
 
TOKYO 00002824  006 OF 010 
 
 
ASAHI (Page 4) (Full) 
October 10, 2008 
 
The government will decide in a cabinet meeting today to extend by 
six months its sanctions against North Korea, which will expire on 
Oct. 13. While the expectation is strong that the United States will 
delist North Korea as a state sponsor of terrorism, Japan has no 
choice but to deal with the abduction issue by using its independent 
sanctions against Pyongyang. Given that, a sense of impasse has 
emerged in the government. 
 
Tokyo invoked its sanctions on Pyongyang on October 2006, extending 
three times so far. The extension this time around is the forth one. 
Japan has banned the freighter Man Gyong Bong from entering Japanese 
ports, as well as imports from the North 
 
Japan and North Korea agreed in a working-level meeting of their 
foreign ministries in August that Japan would resume the travel of 
people between the two countries and the entry of chartered planes 
if the North set up an abduction investigation panel. Following the 
abrupt resignation of then Prime Minister Yasuo Fukuda, North Korea 
informed Tokyo of its decision to forgo the setting up of an 
investigation panel. The government of Prime Minister Taro Aso asked 
last week the North Korean side to fulfill its promise through its 
embassy in Beijing, but it has not yet received any response. 
 
Meanwhile, U.S. Assistant Secretary of State Christopher Hill 
visited Pyongyang last week and he and his North Korean counterpart 
seem to have reached a certain agreement. If the United States 
removes North Korea from its list of state sponsors of terrorism, 
Japan will lose a diplomatic bargaining card to use in negotiations 
with Pyongyang. 
 
10) Poll: 58 PERCENT  willing to let DPJ take office, but 47 PERCENT 
 see DPJ as lacking competence to run country 
 
YOMIURI (Page 2) (Full) 
October 10, 2008 
 
According to the Yomiuri Shimbun's Oct. 4-5 face-to-face nationwide 
public opinion survey, 58 PERCENT  were affirmative and 38 PERCENT 
negative when respondents were asked if they thought it would be all 
right to let the leading opposition Democratic Party of Japan 
(Minshuto) run the government at least once. In the survey, 
respondents were also asked about the governing competence of 
political parties. In response to this question, a total of 67 
PERCENT  answered "yes" for the ruling Liberal Democratic Party. 
When it came to the DPJ, however, public opinion was almost split, 
with "yes" at 46 PERCENT  and "no" at 47 PERCENT . The figures show 
the current mood among voters accepting a change of government 
between the ruling and opposition parties, irrespective of whether 
or not the DPJ is competent to take office. 
 
When asked if it is all right to leave the reins of government to 
the DPJ, affirmative answers accounted for a majority among men, 
women, and all age groups. Among DPJ supporters, "yes" reached 95 
PERCENT . Among floating voters with no particular party 
affiliation, "yes" accounted for 61 PERCENT . Even among LDP 
supporters, 38 PERCENT  were affirmative. 
 
However, the floating voters were also split about the DPJ's 
governing competence, with "yes" accounting for 46 PERCENT  and "no" 
 
TOKYO 00002824  007 OF 010 
 
 
at 44 PERCENT . Among those who said it is all right to leave the 
reins of government to the DPJ, 66 PERCENT  answered "yes" to the 
question asking if the DPJ is competent to take office, with 29 
PERCENT  saying "no." In the survey, respondents were also asked to 
give their impressions of Prime Minister Aso and DPJ President 
Ozawa. To this question, a "good impression" of the prime minister 
accounted for 57 PERCENT , with a "bad impression" at 36 PERCENT . 
The "good impression" of Ozawa was at 35 PERCENT , and the "bad 
impression" at 59 PERCENT . Even among those thinking it is all 
right to leave the reins of government to the DPJ, the "good 
impression" of Ozawa was at 49 PERCENT , with the "bad impression" 
at 45 PERCENT . 
 
The survey was conducted with a total of 3,000 persons chosen from 
among the nation's voting population. Answers were obtained from 
1,787 persons (59.6 PERCENT ). 
 
11) Prime Minister Aso laying groundwork for Lower House election 
 
YOMIURI (Page 4) (Abridged slightly) 
October 10, 2008 
 
Prime Minister Taro Aso yesterday instructed the ruling coalition of 
the Liberal Democratic Party and New Komeito to draw up an 
additional economic stimulus package in response to the global 
financial crisis. He also is laying the groundwork for dissolving 
the House of Representatives. In an attempt to appeal the 
government's efforts to the public, some ruling parties' members are 
saying that issuing deficit-covering government bonds is inevitable 
in order to compile a large-scale budget for the additional economic 
package. 
 
It is extremely rare for a prime minister to issue such an 
instruction while the Diet is deliberating on a supplementary budget 
bill. Aso last night told the press corps at the Prime Minister's 
Official Residence: 
 
"The (economic) situation has become severer. We are now in a 
situation to consider at least a pump-priming economic package and 
measures to extend financial help to small and midsize companies." 
 
The ruling camp is motivated to use the additional economic stimulus 
package as a tool to win the next Lower House election, with one 
official saying: "We will be able to campaign in the general 
election under the slogan of the ruling coalition attaching priority 
to economic recovery." The ruling bloc's scenario is that the 
economic package would be compiled in October and that the Lower 
House would be dissolved for a snap election in mid-November. 
 
Therefore, the ruling camp will now draw up a new economic package. 
The ruling camp's financial crisis taskforce plans to come up with 
highly-effective measures with an eye on the Lower House election. A 
person close to Aso said yesterday: 
 
"The extra budget, which is now being deliberated on at the Diet, 
was drawn up by the Fukuda administration. We would like to show 
Aso's political identity in the planned additional economic stimulus 
package." 
 
Regarding fixed amount income and residential tax cuts, which have 
been decided to implement before the end of this fiscal year, the 
amount of tax cuts per capita will be hammered out in the future. 
 
TOKYO 00002824  008 OF 010 
 
 
The New Komeito, which has strongly called for the implementation of 
the fixed amount tax cuts, has envisaged a 2 trillion scale tax cut. 
The additional economic package would include a further cut in 
expressway tolls, and tax reductions in housing loans and business 
investment. 
 
A senior LDP official said: "With the election drawing closer, we 
should not be stingy." Therefore, it is certain that the scale of 
the second extra budget will exceed 2 trillion yen. There is a view 
in the New Komeito that to cover the fixed amount tax cuts and tax 
reduction in housing loans, a 10 trillion yen scale extra budget 
should be drawn up to. 
 
12) Will expected October Diet dissolution be put off? Ruling camp 
to boil down date after supplementary budget passed, but end of the 
year timing could hurt economy 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
October 10, 2008 
 
With the heightening possibility of the economy slipping into 
recession, the timing of dissolving the Lower House for a snap 
election is becoming unclear. Prime Minister Aso has stressed that 
the state of the economy takes precedent over Diet dissolution, and 
calls are rising within the Liberal Democratic Party (LDP) for 
putting it off until the end of the year or the beginning of next 
year. However, when consideration is given to such factors as the 
compilation of the fiscal 2009 budget bill, there are some problems 
with and end of year, beginning of next year scenario for Diet 
dissolution. What choice will the Prime Minister take? We flip 
through the pages of a calendar leading the Lower House election 
that remains elusive. 
 
Deliberations in the Upper House Budget Committee on the fiscal 2008 
supplementary budget, which the Prime Minister has positioned as his 
top priority item, began yesterday. The budget bill is expected to 
pass the Diet on Oct. 16. 
 
On the other hand, the Prime Minister on Oct. 9 ordered the ruling 
camp to come up with additional measures to stimulate the economy. 
The outline of the new package is likely to be readied after the 
20th. With this, the goal of dissolving the Lower House immediately 
after passing the supplementary budget has disappeared. 
 
Passage of the bill amending the New Anti-Terrorism Special Measures 
Law that would continue the oil refueling operations in the Indian 
Ocean is expected late this month. If this bill, too, is considered, 
the Prime Minister's range of options for October dissolution has 
narrowed greatly. 
 
LDP Secretary General Hiroyuki Hosoda and New Komeito Secretary 
General Kazuo Kitagawa yesterday morning instructed the Diet Affairs 
Committee chairmen of the parties to aim at entering deliberation on 
bills related to creating a consumers affairs agency immediately 
after the refueling mission bill is passed. Since the Diet schedule 
after the ruling camp passes the supplementary budget is becoming 
filled with one bill after another, the timing of Diet dissolution 
is being put off, creating much speculation about what lies ahead. 
 
There is a strong view that if the second supplementary budget is 
presented to the Diet, it will likely be in early November at the 
earliest. In case Diet dissolution is postponed that far, the 
 
TOKYO 00002824  009 OF 010 
 
 
opposition camp will definitely react sharply. If consideration is 
given to deliberations in the Upper House, it is questionable 
whether the bill could be passed by the 30th of November, when the 
session ends. 
 
If the Prime Minister decides to dissolve the Diet after that, 
tackling tax reform in December and compiling the fiscal 2009 
national budget draft will have to be put off until early next year. 
 
 
Some lawmakers in the LDP are calling for dissolving the Diet at the 
start of the regular Diet session in January, but in this case, it 
would become impossible to pass the fiscal 2009 budget before the 
end of the fiscal year (end of March). This kind of concern surfaced 
in meetings of the party faction on the 9th. 
 
Since dissolution at the end of the year or beginning of next year 
would encounter such kinds of obstacles, the date of the Lower House 
election, according to former Finance Minister Ibuki, would create 
for the legislature turmoil in the economy unless it is set before 
mid November or after April next year. 
 
13) Government puts on hold plan to restrict foreign investment in 
airport operating companies 
 
MAINICHI (Page 1) (Full) 
October 10, 2008 
 
The government's study council on restricting the operations of 
airport-related companies (chaired by Chuo University Law School 
Professor Seiichi Ochiai) on October 9 reached agreement that 
restrictions on airport-operating companies should be premised on 
the principle of non-discrimination between domestic and foreign 
companies. Vice Transport Minister Ken Haruta indicated his 
ministry's stance of respecting this perception of the panel, 
saying, "We take the panel's decision seriously." 
 
A prevailing view heard during discussions by the panel was that 
both domestic and foreign investors are negative toward the idea of 
only regulating foreign investors. As such, the panel will now 
likely focus discussions on "large-lot restrictions," or setting a 
cap on the number of shares one investor can purchase whether 
domestic or foreign. Discussions also will include "conduct 
restrictions," in which cooperation would be sought to prevent 
terrorism and hijacks. The Transport Ministry plans to draft a 
restriction plan, based on the decision reached by the panel and 
submit a bill amending the Airport Law to the regular Diet session 
next year. 
 
Narita International Airport Corporation will soon to join the stock 
market. An Australian investment bank last fall took a 19.89 stake 
in Japan Airport Terminal Co., which controls and manages Haneda 
Airport. Such cases prompted the government to hold discussions to 
look into placing restrictions on foreign investment in airports. 
There has been a growing concern that a purchase of an airport by a 
foreign investor would damage national interests and cause security 
concerns. 
 
For this reason, the Transport Ministry at first tried to 
incorporate a regulation designed to constrain foreign companies' 
investment ratio in airport-related companies below one-third. 
However, it gave up on the plan for the time being with both the 
 
TOKYO 00002824  010 OF 010 
 
 
ruling camp and some cabinet ministers citing that it is against the 
national strategy of boosting investment in Japan. An export panel 
was then established in August under the jurisdiction of the chief 
cabinet secretary and the transport minister. The panel has been 
discussing the way such restrictions should be set. 
 
SCHIEFFER