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UNCLAS SECTION 01 OF 09 TOKYO 002869 
 
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 10/15/08 
 
1) Asahi poll: Aso Cabinet support rate rises a point to 42 PERCENT 
, with non-support rate at 38 PERCENT   (Asahi) 
 
North Korea problem: 
2) Prime Minister Aso in Upper House Budget Committee exchange 
expresses dissatisfaction with U.S. removing North Korea from terror 
blacklist  (Yomiuri) 
3) Main exchanges on North Korea issues in the Upper House Budget 
Committee  (Tokyo Shimbun) 
4) Senior Foreign Ministry official in Washington to explain Japan's 
position of not providing energy aid to North Korea  (Mainichi) 
 
5) Japan-South Korea summit meeting to take place on the sidelines 
of ASEM in Beijing  (Tokyo Shimbun) 
 
Diet in session: 
6) Amended anti-terror bill allowing continued MSDF refueling 
service in Indian Ocean to pass the Diet at the end of the month 
(Mainichi) 
7) LDP secretary general hints at late November general election 
(Asahi) 
8) Name of candidate for deputy governor of Bank of Japan to finally 
be presented to the Diet today  (Nikkei) 
9) Democratic Party of Japan (DPJ) continues to take a flexible 
policy line in the Diet  (Nikkei) 
 
10) DPJ strengthening argument for early dissolution of the Diet, 
now that the stock market is recovering  (Tokyo Shimbun) 
11) DPJ head Ozawa returns to the Diet from hospital ready to start 
pushing for Diet dissolution again  (Asahi) 
12) Ozawa calls DPJ lawmaker Maeda's acceptance of large 
contributions from pyramid scheme outfit "inappropriate"  (Tokyo 
Shimbun) 
 
Economic measures: 
13) Aso hints at issuing deficit bonds in order to fund part of 
proposed second supplementary budget to stimulate economy  (Yomiuri) 
 
14) Bill that would strengthen the financial system expected to pass 
the Diet this month  (Nikkei) 
 
Articles: 
 
1) Poll: 42 PERCENT  support rate for Aso cabinet, with 38 PERCENT 
non-support; 56 PERCENT  oppose issuing deficit-covering government 
bonds 
 
ASAHI (Page 4) (Full) 
October 15, 2008 
 
The Asahi Shimbun conducted a telephone-based opinion survey on Oct. 
11-12, following the latest one on Oct. 4-5. The Asahi poll found 
that 42 PERCENT  of respondents support the cabinet of Prime 
Minister Taro Aso, about the same level as the 41 PERCENT  in the 
previous poll. The disapproval rate for the Aso cabinet slightly 
dropped to 38 PERCENT  from the previous 42 PERCENT . 
 
People were asked their opinion about the issuance of 
deficit-covering government bonds to fund a large-scale 
supplementary budget containing an economic stimulus package. Only 
24 PERCENT  supported such an issuance, while 56 PERCENT  opposed 
it. 
 
TOKYO 00002869  002 OF 009 
 
 
 
When the Asahi asked in an August poll, before the global financial 
crisis became serious, about the issuance of deficit government 
bonds to stimulate the economy, 15 PERCENT  approved, while 67 
PERCENT  disapproved. 
 
Asked about whether to continue the Maritime Self-Defense Force's 
(MSDF) mission to refuel ships of the United States and other 
countries, 42 PERCENT  said that it was necessary and another 42 
PERCENT  called it unnecessary. 
 
Regarding which party to vote for if an election were held now, 32 
PERCENT  of respondents (33 PERCENT  in the previous poll) said they 
would vote for the ruling Liberal Democratic Party (LDP) and 32 
PERCENT  (34 PERCENT  in the previous poll) answered they would vote 
for the Democratic Party of Japan (DPJ). 
 
Asked about what was the priority issue when choosing the party to 
vote for, 90 PERCENT  said measures to stimulate the economy, 76 
PERCENT  picked the health insurance system for people aged 75 and 
older, and 75 PERCENT  pointed to the pension-record mess. The 
percentages of the respondents who would vote for the LDP and DPJ 
were even. 
 
2) Prime minister expresses dissatisfaction about U.S. removing 
North Korea from terrorism blacklist 
 
YOMIURI (Page 2) (Full) 
October 15, 2008 
 
Prime Minister Taro Aso in yesterday's Upper House Budget Committee 
session made this comment regarding the delisting by the United 
States of North Korea as a state sponsor of terrorism: "The U.S. 
assertion to move the nuclear issue forward is understandable to 
some extent. But we have three problems: (abduction), nuclear 
programs, and missiles. We have clearly told (the United States) 
that we are dissatisfied with the delisting of North Korea as a 
state sponsor of terrorism." 
 
Touching on Japan's policy toward the six-party talks that are 
expected to resume later this month, the prime minister also said: 
"We will naturally continue to strongly ask for the resolution of 
the abduction issue." Regarding energy aid to North Korea, he 
declared: "We will not respond to calls unless there is (progress) 
on the abduction issue." 
 
3) Main questions and answers on North Korea in Upper House Budget 
Committee session on Oct. 14 
 
TOKYO SHIMBUN (Page 6) (Excerpts) 
October 15, 2008 
 
Gotaro Yoshimura of the Liberal Democratic Party: I am not convinced 
by the U.S. decision to delist North Korea as a state sponsor of 
terrorism. 
 
Chief Cabinet Secretary Takeo Kawamura: We will strongly call for 
the establishment of a research committee with authority (a 
committee on reinvestigation into the victims of kidnapped by North 
Korea). 
 
Prime Minister Taro Aso: We will call for the launching of a 
 
TOKYO 00002869  003 OF 009 
 
 
comprehensive investigation at an early date that would deliver 
results leading to the return of all existing abducted Japanese. I 
want to continue upholding the basic policy of normalizing 
diplomatic ties (between Japan and North Korea) after 
comprehensively resolving the abduction, nuclear, and missile issues 
and settling issues of the unfortunate past. 
 
Seiichi Eto of the Liberal Democratic Party: What is your view of 
energy aid (to North Korea)? 
 
Prime Minister: There will be no change in the government's policy 
of not taking part in economic and energy assistance programs under 
the six-party talks unless progress is made in Japan-DPRK relations, 
including the abduction issue. 
 
Masayuki Naoshima of the Democratic Party of Japan: Does Japan 
simply have to accept the United States' decision to delist North 
Korea as a state sponsor of terrorism? 
 
Prime Minister: The U.S. decision is understandable to some extent 
as a means to move the nuclear issue forward. We have told them 
clearly that we are dissatisfied with the delisting. It is Japan 
that will be most affected by (the North's) nuclear programs. 
Whether (the North's nuclear facilities) can be verified properly is 
a big question. 
 
Naoshima: We will no longer be able to seek progress on the 
abduction issue by using the delisting as a bargaining chip. 
 
Prime Minister: The six countries are expected to conduct a variety 
of talks. We will naturally continue strongly proposing talks on the 
abduction issue on those occasions. 
 
Naoshima: I believe the verification of undeclared facilities is not 
possible without the North's consent. 
 
Prime Minister: There seems to be a gap in views between the United 
States and North Korea on (how verification should be conducted). 
Obtaining assurance is essential. For the documentation of the 
process, it is important to carry out six-party talks. 
 
Naoshima: What if (economic assistance by other countries) moves 
forward while leaving the question of undeclared facilities 
unresolved? 
 
Prime Minister: I do not rule out the possibility of such a 
development. Even if Japan is asked (by other countries to expend 
money) and extend assistance, we will not go along with them. 
 
4) In sub-cabinet-level meeting with U.S. and South Korea, Sasae 
explains that it is difficult for Japan to extend assistance to 
North Korea 
 
MAINICHI (Page 2) (Full) 
October 15, 2008 
 
Kazuhiko Kusano, Washington 
 
A Japan-U.S.-South Korea sub-cabinet-level meeting was held on Oct. 
14 at the U.S. State Department to discuss a framework to verify the 
nuclear facilities declared by North Korea. Touching on Japan's 
energy assistance to North Korea, Deputy Foreign Minister Kenichiro 
 
TOKYO 00002869  004 OF 009 
 
 
Sasae explained Japan's position, saying: "Since there has been no 
progress on the issue of Japanese nationals abducted (by North 
Korea), (extending assistance) is difficult." The United States and 
South Korea showed understanding toward Japan's thinking, according 
to Sasae. 
 
5) Japan-South Korea summit in Beijing envisioned 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 15, 2008 
The government started arrangements yesterday for the first meeting 
between Prime Minister Aso and South Korean President Lee Myung-bak 
on the sidelines of the Asia-Europe Meeting (ASEM) in Beijing on 
Oct. 24-25. This will be the first Japan-South Korean summit since 
President Lee visited Japan in April. The two leaders, having 
repaired bilateral ties strained by such issues as territorial 
claims to the Takeshima / Dokdo islets, are expected to confirm the 
need for the two countries' cooperation in dealing with the 
U.S.-triggered financial crisis. 
 
Under the Fukuda administration, Japan and South Korea introduced a 
program of reciprocal visits by Fukuda and Lee on a regular basis, 
but the program has been suspended since South Korea reacted 
fiercely to the inclusion of a passage stating that Takeshima was 
Japan's territory in a teaching manual for school curriculum 
guidelines for middle schools in July. 
 
Japan has been seeking a chance to swiftly improve the bilateral 
relationship, based on the judgment that "it is indispensable for 
Japan, South Korea, and China to send joint messages" over how to 
deal with North Korea's nuclear problem or the ongoing financial 
crisis, according to a senior Foreign Ministry official. 
 
In the envisioned Japan-South Korea summit, the two leaders are 
expected to discuss the possibility of resuming talks on concluding 
a bilateral economic partnership agreement (EPA) to realize the 
Fukuda-proposed initiative of building a new era in Japan-South 
Korea relations. No EPA talks have been held since June. 
 
6) Passage of new anti-terror bill expected at end of month 
 
MAINICHI (Page 2) (Excerpts) 
October 15, 2008 
 
The possibility has become strong that the bill amending the new 
anti-terrorism special measures law that would continue refueling 
operations in the Indian Ocean will pass the Diet at the end of this 
month. The reason lies with the opposition camp's coming up with the 
view of seeking thorough debate of the bill in the Upper House. As a 
result, the view in the government and ruling camp has spread that 
it would be difficult from a timing standpoint to dissolve the Diet 
and call for a snap election in mid-November. 
 
The Democratic Party of Japan (DPJ) at first had taken a stance of 
going along with an early passage of the amended new anti-terror 
special measures law. On the 14th, as well, party leaders and senior 
members confirmed that they would agree to the bill passing a 
plenary session of the Lower House of the Diet on Oct. 21. At that 
point, the ruling camp initially assumed that the Upper House would 
reject the bill on Oct. 24 and the bill would then be passed by a 
Lower House override vote. 
 
 
TOKYO 00002869  005 OF 009 
 
 
However, the DPJ was criticized by the other opposition parties that 
wanted thorough debate of the bill, so it switched its position to 
one of not making a definite promise in the Upper House of passage 
of the legislation. As a result, the Diet affairs departments in the 
ruling parties judged that although the bill would be adopted by the 
Lower House, the outlook for the Upper House was not good. The 
ruling camp officials saw passage of the bill late in the month, at 
the earliest. 
 
If a general election is called, this would make the possibility of 
it occurring in mid-November slim. The growing outlook in the ruling 
camp is that the election will be held either on Nov. 23, with Diet 
dissolution at the end of October, or on Nov. 30, with dissolution 
in early November. However, Prime Minister Taro Aso on Nov. 22-23 
will likely be attending the APEC meeting in Peru. It is hardly 
conceivable that an election would be held on day that the Prime 
Minister is absent from the country. 
 
7) LDP Secretary General Hosoda hints at general election in late 
November 
 
ASAHI (Page 1) (Full) 
October 15, 2008 
 
Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda 
held a news conference at the Foreign Correspondents' Club of Japan, 
in which he hinted at the possibility of a general election taking 
place in late November. The government and ruling parties plan to 
present a nominee for Bank of Japan deputy governor to the meetings 
today of party representatives in the two chambers of the Diet, 
taking preparatory steps for dealing with the financial crisis, as 
well as for an early dissolution of the House of Representatives. 
 
In the government, Eiji Hirano, a director of Toyota Financial 
Services Group and former BOJ Policy Board member, has been floated 
a possible candidate for BOJ deputy governor. Prime Minister Taro 
Aso will make a decision late this month on when to dissolve the 
Lower House after closely watching the situation. 
 
Hosoda said at the FCCJ: 
 
"I have heard from Prime Minister Aso that the dissolution of the 
Lower House for a snap election at an early date is the best way to 
break the political deadlock (created by the divided Diet)." 
 
Hosoda clearly stated that there was no change in Aso's intention to 
dissolve the Lower House as early as possible. Asked whether the 
snap election would be held the last week of November, he said: "I 
think there are many similarities between media speculation and my 
thinking." He hinted that there could be a general election in late 
November. 
 
8) Government to present nominee for deputy BOJ governor today: 
Urges DPJ to cooperate 
 
NIKKEI (Page 2) (Excerpts) 
October 15, 2008 
 
In order to help address the global financial crisis, the government 
will present to the Diet today the name of a candidate to fill one 
of the two deputy governor positions at the Bank of Japan, a post 
that has long been vacant and requires Diet approval. It will also 
 
TOKYO 00002869  006 OF 009 
 
 
aim at securing Diet approval before the end of the month for a bill 
amending the Financial Function Early Strengthening Law designed to 
reinstate the injection of public money into regional financial 
institutions. With an eye on an early dissolution of the Lower House 
and a snap election, the government and the ruling camp want to take 
the initiative in addressing the financial crisis that started in 
the U.S. by urging the DPJ to cooperate in passing several important 
pieces of legislation. 
 
Chief Cabinet Secretary Takeo Kawamura will present the proposal for 
deputy BOJ governor at a joint meeting of representatives of the 
Diet Steering Committees of the Upper and Lower Houses to be held at 
noon on the 15th. LDP Diet Affairs Committee Chairman Tadamori 
Oshima on the evening of the 14th met with his DPJ counterpart Kenji 
Yamaoka and asked him to consider the proposal immediately and give 
a nod to it. 
 
Prime Minister Taro Aso on the evening of the 14th met with BOJ 
Governor Masaaki Shirakawa alone at the Katei. Emerging from the 
meeting, Aso told reporters, "The timing is good. I do not think 
that the DPJ will oppose the government's proposal, because they are 
well aware of the current financial situation." More than one 
government source said, "The Prime Minister wants the BOJ to 
nominate one of its officials." 
 
Oshima during a meeting of chairmen of the Diet Affairs Committee of 
the ruling parties on the 14th gave this outlook, "The DPJ has never 
opposed the selection of a deputy BOJ governor. The government 
proposal will be approved without problems." One government source 
took this view: "A person other than a former Finance Ministry 
official will be picked. The government cannot possibly present a 
controversial personnel proposal." 
 
9) DPJ likely to continue its flexible policy 
 
NIKKEI (Page 2) (Excerpts) 
October 15, 2008 
 
DPJ President Ichiro Ozawa on October 14 held a meeting at the party 
headquarters with senior officials, such as Secretary General Yukio 
Hatoyama, Azuma Koshiishi, head of the DPJ caucus in the Upper 
House, and others. Participants confirmed a policy of once gain 
discussing how to respond to government proposals for the selection 
of deputy Bank of Japan governor and measures to address the 
financial crisis. There is a strong possibility of the party 
continuing its flexible approach without taking a resistance 
tactics, including prolonging Diet deliberations, with the 
determination that dissolution of the Lower House for a snap 
election must not be delayed. 
 
Hatoyama at a meeting of DPJ members held in Tokyo on the evening of 
the 14th said, "We would like to deal with issues which the public 
wants to see handled urgently in an adult-like manner." 
 
10) With stock market recovering, calls growing in DPJ for 
confrontational stance to force early Lower House dissolution 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
October 15, 2008 
 
A growing view in the Democratic Party of Japan (DPJ) is for the 
party to switch policy gears and take a confrontational stance 
 
TOKYO 00002869  007 OF 009 
 
 
against the ruling coalition after Oct. 21, when a bill amending the 
New Antiterrorism Special Measures Law is expected to clear the 
House of Representatives. Behind such calls is the desire to force 
Prime Minister Aso to dissolve the Lower House for a snap election 
at an early date. Seeing that Tokyo stock market rebounded sharply 
yesterday, party members now judge there would be no major obstacle 
to such, even if additional economic stimulus measures being planned 
by the prime minister are worked out as emergency measures to ease 
financial unrest. 
 
President Ichiro Ozawa, Deputy President Naoto Kan, Secretary 
General Yukio Hatoyama, and other executive members met last evening 
and decided to reach a conclusion quickly on what approach they 
should take in the Diet once the amended anti-terror law passes the 
Lower House. 
 
11) No change in Ozawa's strategy of forcing early Lower House 
election in Upper House 
 
ASAHI (Page 4) (Full) 
October 15, 2008 
 
Despite deep concerns about the impact of the global financial 
crisis on Japan's real economy, Democratic Party of Japan (DPJ) 
President Ichiro Ozawa intends to seek an early dissolution of the 
House of Representatives, arguing that political change is the best 
way to stimulate the economy. The DPJ plans to strengthen 
"dissolution pressure" at the House of Councillors Budget Committee, 
which started deliberations yesterday, so as not to be affected by 
the prevailing view in the Liberal Democratic Party (LDP) for 
pushing back Lower House dissolution. 
 
At a press conference yesterday, Ozawa revealed his prediction that 
the Lower House would be dissolved soon, saying: 
 
"I think the public probably would not accept the LDP holding a 
general election for its own convenience. The election is just 
around the corner. I want our party members to do their best with 
that in mind." 
 
Ozawa criticized Prime Minister Taro Aso's article that hinted at 
Lower House dissolution at the outset of the extraordinary Diet 
session. He stated: "For a person who sits in the seat of power, his 
words are too casual." 
 
After checking out of the hospital yesterday afternoon, Ozawa went 
to party headquarters to coordinate candidates in electoral 
districts, meeting with candidates-to-be. Even while he was in 
hospital (for a bad cold), he analyzed the results of the 
pre-election poll by the DPJ and he also urged by phone secretaries 
being sent all over the country to do their best. 
 
12) Ozawa calls DPJ member Maeda's receipt of donations from pyramid 
scheme operators "inappropriate" 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 15, 2008 
 
It has been revealed that two political organizations that support 
Yukichi Maeda, a lawmaker of the Democratic Party of Japan (DPJ), 
received a huge amount of money as Maeda's lecture fees and 
political donations from pyramid scheme operators and another group. 
 
TOKYO 00002869  008 OF 009 
 
 
President Ichiro Ozawa commented on this problem in a press 
conference yesterday: "It is quite inappropriate that he received 
money (lecture fees) from a company that was ordered to suspend 
business." Maeda is a House of Representatives member elected in the 
Tokai region proportional representation block. 
 
Ozawa will ask Maeda today about the details of the case. In the 
press conference, Ozawa said: "Upon hearing Mr. Maeda's explanation, 
we would like to determine as soon as possible what our party should 
take to secure (public) trust." 
 
13) Prime Minister Aso hints at increasing issuance of deficit bonds 
in second supplementary budget; Reduction in corporate tax revenues 
expected 
 
YOMIURI (Page 2) (Excerpt) 
October 15, 2008 
 
Prime Minister Aso in the Upper House Budget Committee yesterday 
hinted at the possibility of increasing the issuance of deficit 
bonds in the second supplementary budget to supplement an expected 
reduction in corporate tax revenues. He gave this outlook regarding 
the impact of the financial crisis that started in the United 
States: "Revenues from the corporate tax will drop severely." 
However, he stressed "I basically do not want to issue deficit 
bonds" to fund the additional economic stimulus package that will 
form the pillar of the second supplementary budget. 
 
14) Government expects DPJ to cooperate on passage of amendment to 
Financial Function Early Strengthening Law 
 
NIKKEI (Page 2) (Almost full) 
October 15, 2008 
 
The government and the ruling parties will likely adopt an amendment 
to the Financial Function Early Strengthening Law after the summit 
of the Asia-Europe Meeting (ASEM) to be held in Beijing on October 
24-25. They intend to ask for cooperation from the DPJ in the hope 
that Diet deliberations will start right after the summit and the 
bill will be enacted before the end of the month. 
 
With the acceleration of efforts to put on a package of additional 
economic stimulus measures to address the global financial turmoil, 
the focus is now shifting to tax-cut measures. 
 
LDP Policy Research Council Chairman Kosuke Hori and Hakuo 
Yanagisawa, president of the Financial Crisis Addressing Project 
Team, on the afternoon of the 14th met with Tax System Research 
Commission Chairman Yuji Tsushima. They agreed to incorporate into 
the package a policy of looking into the following measures during 
an annual tax code revision at the end of the year: (1) Extending 
the current preferential tax system for securities; (2) expanding 
the housing loan tax cut; and (3) expanding items eligible for the 
capital investment tax cuts. 
 
The bill on a supplementary budget, which will finance the 
comprehensive economic stimulus package, was enacted on the 16th. A 
bill aimed at extending Japan's refueling operations in the India 
Ocean will likely clear the Lower House on the 21st. What approach 
the DPJ will make during Upper House deliberations is unclear. 
However, there is the possibility that the bill will be enacted as 
early as the 29th. Prospect now look brighter for the top priority 
 
TOKYO 00002869  009 OF 009 
 
 
issue in the extraordinary Diet session. 
 
The view is strong that once specifics of additional economic 
stimulus measures are fixed, the environment for the prime minister 
to reach a final decision on when to dissolve the Lower House for a 
snap election will be readied. 
 
One senior official of the LDP Policy Research Council took this 
view: "The prime minister told me that the compilation of the 
package of additional economic stimulus measures can wait until the 
final week of October. If the Lower House is dissolved in late 
October, the additional stimulus measures will serve as a manifesto 
for the Lower House election." 
 
SCHIEFFER