VZCZCXRO7654
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2890/01 2910300
ZNR UUUUU ZZH
P 170300Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7993
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 2770
RUEHFK/AMCONSUL FUKUOKA 0417
RUEHOK/AMCONSUL OSAKA KOBE 4163
RUEHNAG/AMCONSUL NAGOYA 8477
RUEHKSO/AMCONSUL SAPPORO 0990
RUEHBJ/AMEMBASSY BEIJING 5869
RUEHUL/AMEMBASSY SEOUL 1867
RUCNDT/USMISSION USUN NEW YORK 2121

UNCLAS SECTION 01 OF 08 TOKYO 002890 
 
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 10/17/08 
 
Index: 
 
Defense and security affairs: 
 
1) U.S. Ambassador to Japan Schieffer explains to families of 
abductees background of U.S. delisting of North Korea 
 
2) U.S. nuclear-powered submarine Ohio puts into Yokosuka amid local 
fears that it is equipped with nuclear-tipped missiles  (Tokyo 
Shimbun) 
3) Two Chinese subs detected in mid-October by MSDF in the E. China 
Sea; May have been trailing U.S. Navy carrier  (Sankei) 
 
Financial crisis: 
4) Prime Minister Aso, reacting to continuing plummets in stock 
market, says scope of U.S. capital infusion plan is insufficient 
(Mainichi) 
5) Narita Airport rumored as the site of an emergency G8 summit 
(Mainichi) 
6) Prime Minister Aso orders drafting of extra economic stimulus 
measures to meet the continuing financial emergency  (Asahi) 
 
7) Foreign Minister Nakasone to host a cabinet-level Middle 
East-North Africa conference  (Asahi) 
8) Japan pitted against Iran for the rotating non-permanent seat on 
the UN Security Council  (Nikkei) 
 
Political agenda: 
9) Prime Minister, while watching the economic situation, will make 
a decision to dissolve Diet at month's end  (Asahi) 
10) Everybody is talking now about a Nov. 30 Lower House election 
(Tokyo Shimbun) 
11) Former Land and Transport Minister Nakayama, who quit his post 
over controversial remarks, changes mind and will run for a seat in 
the Lower House  (Tokyo Shimbun) 
12) Consumer Affairs Minister Seiko Noda took political 
contributions in form of party tickets from shady outfit involved in 
pyramid schemes  (Tokyo Shimbun) 
13) Senior Vice Minister for Internal Affairs Kurata allegedly 
involved in scheme with NPO run by former secretary to bring bar 
hostesses into Japan  (Asahi) 
 
Articles: 
 
1) U.S. Ambassador to Japan Schieffer explains to families of 
abductees background of U.S. delisting of North Korea 
 
MAINICHI (Page 26) (Full) 
October 17, 2008 
 
Chairman of the Association of Families of Victims of North Korean 
Abductions Shigeo Iizuka and former chairman Shigeru Yokota met 
yesterday with U.S. Ambassador to Japan Thomas Schieffer at his 
official residence in Minato-ku, Tokyo. The Ambassador explained the 
background of the decision to remove North Korea from the list of 
state sponsors of terrorism. He said, "The United States supports 
the resolution of the abduction issue." In the 25-minute meeting, 
the Ambassador sought the understanding of the abductees' families 
on the delisting of North Korea, stating, "It is my personal 
opinion, but if the Six-Party Talks were to fail, resolution of the 
abduction issue would become difficult." 
 
 
TOKYO 00002890  002 OF 008 
 
 
2) U.S. nuclear-powered submarine Ohio makes first port call in 
Japan at Yokosuka base 
 
TOKYO SHIMBUN (Page 27) (Full) 
October 17, 2008 
 
The U.S. Navy's nuclear-powered submarine Ohio made yesterday a port 
call at the U.S. naval base in Yokosuka, Kanagawa Prefecture, mainly 
to allow its 155 crewmembers to rest. This is the first time for a 
submarine that can carry 150 cruise missiles and can dispatch 
special-operations troops to enter a Japanese port. 
 
The 18,750-ton Ohio was commissioned in 1981. It was re-commissioned 
in 2006 after undergoing remodeling due to the post-Cold War nuclear 
reduction and the U.S. military's strategic shift for the war on 
terror. 
 
It is difficult to distinguish the Ohio, which used to be a 
ballistic missile submarine for launching nuclear missiles, from a 
vessel carrying nuclear weapons. For this reason, there is concern 
that it will irritate neighboring counties. 
 
3) MSDF detected two Chinese submarines in East China Sea that aimed 
to threaten U.S. aircraft carrier 
 
SANKEI (Top play) (Excerpts) 
October 17, 2008 
 
It became clear yesterday that the Self-Defense Forces had detected 
earlier this month two Chinese submarines that were deployed in the 
East China Sea. One of them is believed to be the same model as the 
Han-class nuclear-powered attack submarine that intruded into 
Japanese waters in November 2004. Around that time (early October), 
the U.S. nuclear-powered aircraft carrier George Washington (GW), 
which has just been deployed to the U.S. naval base in Yokosuka, 
Kanagawa Prefecture, was cruising in the surrounding ocean area 
toward South Korea. The Maritime Self-Defense Force has strengthened 
surveillance activities involving P-3C patrol planes in the judgment 
that the Chinese submarines tried to collect GW data and threaten 
it. 
 
According to the Defense Ministry, the other vessel besides the 
Han-class submarine was a conventional submarine. The SDF detected 
the two submarines outside Japanese waters. They did not enter 
Japanese waters. 
 
The GW was deployed to the Yokosuka base on Sept. 25 as the 
replacement of the conventional aircraft carrier Kitty Hawk. The GW 
left the Yokosuka base on Oct. 1 to attend the South Korean Navy 
memorial event that was held off Busan on Oct. 7. 
 
China, which is building new models as part of its efforts to beef 
up its submarine capability, has been increasing the activities of 
its submarines. There have been many cases in which Chinese 
submarines conducted activities in the East China Sea in conjunction 
with U.S. naval vessels. On Sept. 14, an MSDF Aegis-equipped vessel 
spotted something like a submarine periscope of an unidentified 
foreign submarine in waters off Kochi Prefecture. Although there is 
a possibility that the MSDF vessel mistook a whale for a submarine 
periscope, it could have been a submarine from China or Russia. 
 
The two Chinese submarines detected earlier this month seem to have 
 
TOKYO 00002890  003 OF 008 
 
 
been collecting data on the GW, including sonic data, having waited 
for it, based on the projection that the U.S. vessel would cruise 
from Yokosuka to Pusan. 
 
4) Aso: Size of U.S. capital injection "insufficient;" Remark 
criticized as giving image of lack of unity among G-8 countries 
 
MAINICHI (Page 2) (Full) 
October 17, 2008 
 
Seeing the U.S. stock market reeling again, Prime Minister Taro Aso 
said in a meeting of the House of Councillors Budget Committee 
yesterday: "Since it (the size of public funds prepared by the U.S. 
to inject into the market) was insufficient, market players are 
dumping stocks." He replied to a question by Kohei Otsuka 
(Democratic Party of Japan). 
 
The U.S. has decided to pump 250 billion dollars in public funds 
into leading banks. Upon saying: "I think the measure has been 
appreciated to some extent," Aso indicated that the scale of capital 
to be injected was too small, remarking: "I understand that since it 
is insufficient, market players are responding this way." The prime 
minister's remark seems to have reflected his irritation at the 
steep fall in Japanese stock prices. But the Group of Eight (G-8) 
countries, including Japan, the U.S., and European countries, 
jointly issued on Oct. 16 an emergency statement designed to contain 
the ongoing global financial crisis in an effort to reiterate the 
need for international cooperation. In reaction to the remark made 
at such a time, a U.S. investment company member grumbled: "That is 
a gaffe that gives the image of a lack of unity among the G-8 
countries." 
 
5) Aso futilely planned emergency Narita G-8 summit 
 
MAINICHI (Page 5) (Full) 
October 17, 2008 
 
Prime Minister Taro Aso revealed in yesterday's Upper House Budget 
Committee meeting that he had considered at one point hosting an 
emergency G-8 summit at Narita to discuss a response to the 
financial crisis but gave it up. He explained that coordination with 
the countries concerned failed, saying: "We began (coordination), 
thinking it was pragmatic to gather together at Narita for only four 
hours. But some countries did not buy that idea." Aso was responding 
to a question from Hiroyuki Arai of the Reform Club. 
 
6) Aso issues instruction to draw up more economic measures later 
this month 
 
ASAHI (Page 1) (Full) 
October 17, 2008 
 
In response to the U.S.-triggered global financial crisis, Prime 
Minister Aso called a meeting of members of the government and the 
ruling camp at his official residence last evening. He instructed 
the participants to hammer out a package of additional economic 
measures focusing on people's livelihoods. Expressing his desire to 
announce the specific amount and financial resources for 
fixed-amount tax cuts, he instructed them to complete the package in 
the week starting on the 27th. Regarding financial resources, Aso 
said that the government will not depend on deficit-covering bonds 
as much as possible. 
 
TOKYO 00002890  004 OF 008 
 
 
 
Aso cited as the areas that should be addressed on a priority basis 
(1) people's livelihoods; (2) boosting the strength of the financial 
sector and small businesses; and (3) protecting local economies. He 
also instructed them to promptly map out a midterm plan on social 
security and ways of funding it, including drastic tax reform to 
secure necessary funds to raise the ratio of pension premium 
payments to be shouldered by the government under the basic pension 
program to half. He thus indicated his consideration to both 
economic expansion and fiscal discipline. 
 
State Minister in Charge of Economic and Fiscal Policy Yosano will 
take the lead in drawing up the plan. Following the prime minister's 
instruction, studies have already begun in the ruling camp on 
fixed-amount income and residential tax cuts; policy tax cuts, such 
as improvement in the securities preferential tax system and capital 
investment tax cuts; lowering expressway tolls; and encouraging 
financial institutions to extend loans to small businesses. 
 
7) Foreign minister to take part in Middle Eastern cabinet-level 
meeting 
 
ASAHI (Page 4) (Full) 
October 17, 2008 
 
Foreign Minister Nakasone will leave for Abu Dhabi, the capital of 
the UAE, to attend a cabinet-level meeting of the Forum for the 
Future designed for cooperation between countries in the Middle East 
and North Africa and the G-8 for economic development and reform. 
Japan, the G-8 chairman, and the UAE will jointly host the meeting 
this year. 
 
This forum was launched in response to the Greater Middle East 
Initiative, which the U.S. proposed and was agreed upon at the G-8 
in 2004. Giving consideration to charges that the Forum is intended 
to "impose democracy," it takes the form of the G-8 assisting those 
countries' voluntary reform efforts on the political, economic and 
social fronts. Non-governmental organizations will also take part in 
the meeting. 
 
8) Japan pitted against Iran for a United Nations Security Council 
chair with election for a non-permanent slot coming on Oct. 17 
 
NIKKEI (Page 8) (Excerpt) 
October 17, 2008 
 
The election of non-permanent members of the United Nations Security 
Council by the UN General Assembly will take place on Oct. 17. Japan 
is a candidate for the Asia seat, but it is pitted against Iran, a 
country that has been hit with a sanction resolution by the UNSC for 
its nuclear issue. Japan, which wants to become a permanent Council 
member in the future, is bent winning this seat, with a diplomatic 
source confiding, "Victory is assured. It will be decided in the 
first round." Although Japan is favored to win, since under the 
voting method used, the ballots are not signed, it will likely be a 
hold-your-breathe election to the end. 
 
9) Aso to decide whether to dissolve Lower House this month while 
watching economic conditions 
 
ASAHI (Page 1) (Excerpts) 
October 17, 2008 
 
TOKYO 00002890  005 OF 008 
 
 
 
Following the passage of a supplementary budget for fiscal 2008 that 
includes measures to buoy the economy, Prime Minister Aso started 
considering yesterday whether to dissolve the House of 
Representatives in November. He will come up with a final decision 
by the end of this month upon carefully looking at movements of the 
225-issue Nikkei Stock Average, which recorded the second steepest 
ever fall yesterday, global financial conditions, and election 
predictions. 
 
Aso told reporters at his official residence last night: "The 
current top priority task is to boost the economy. There also is no 
option of sidestepping discussion of terrorism (the bill to extend 
the law authorizing Japan's Indian Ocean refueling mission)." 
 
In a House of Councillors plenary session yesterday, the extra 
budget was enacted by a majority from the Liberal Democratic Party 
(LDP), the New Komeito, the main opposition Democratic Party of 
Japan (DPJ), and other smaller parties. The session also passed a 
bill designed to cover gasoline tax revenue shortfalls in local 
governments. Aso then instructed the government and the ruling 
coalition to lay out more economic measures. The package is likely 
to be completed in the week starting on the 27th. 
 
The DPJ agreed to take an early vote on the bill to extend the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean 
by another year, though it is against the bill, so the measure is 
now likely to clear the Diet by a two-thirds lower chamber 
overriding vote by Oct. 30. The stage for Lower House dissolution 
will thus be set by the end of this month. 
 
Many in the ruling camp, focusing on the importance of economic 
measures, insist that the government should not allow the election 
to slip into December so that the compilation of the budget later 
the year will not be impeded. In order to set the date of the 
election at sometime in mid-November, it will be necessary to 
dissolve the Lower House within this month. 
 
Aso is considering the possibility of delivering a street-corner 
speech in Akihabara, Tokyo, on Oct. 26. Aso assumed the LDP 
presidency in his fourth try. He was able to make himself better 
known in this district, so he is expected to pick it as the place 
for his first street-corner speech as prime minister in campaigning 
for the next general election. 
 
On the diplomatic front, Aso is scheduled to attend the Asia-Europe 
Meeting (ASEM) in Beijing on Oct. 24-25. Arrangements are being made 
for his meetings with Chinese and South Korean leaders on the 
sidelines of the ASEM. He has also a desire to underscore 
cooperation with the international community if an emergency Group 
of Eight (G-8) summit is held to work out measures to contain the 
global financial crisis 
 
10) Growing possibility of Lower House election on Nov. 30; Prime 
Minister Aso to make decision in late October 
 
TOKYO SHIMBUN (Top play) (Full) 
October 17, 2008 
 
With the passage of the fiscal 2008 supplementary budget that will 
allow the implementation of the government's economic stimulus 
package, Prime Minister Taro Aso yesterday started considering in 
 
TOKYO 00002890  006 OF 008 
 
 
earnest the timing of the dissolution of the House of 
Representatives that would be followed by a snap general election. 
There is a growing view in the government and ruling parties that 
after coming up with a second additional pump-priming package late 
this month, the Lower House should be dissolved, and that the 
official campaign should be kicked off on Nov 18 for a Nov. 30 snap 
election. Aso will attend the summit of the Asia-Europe Meeting to 
be held on Oct. 24-25 in Beijing. After that, he apparently will 
make a final decision on the timing of Lower House dissolution, 
after gauging the economic situation and how the Democratic Party of 
Japan (DPJ), the largest opposition party, will respond. 
 
Supplementary budget enacted 
 
The outlook is that the appointment of a Bank of Japan deputy 
governor, whose name the government presented to the Diet on Oct. 
15, will be approved by the both chambers of the Diet on the 24. A 
bill amending the new Antiterrorism Special Measures Law that allows 
the Maritime Self-Defense Force to continue its refueling mission in 
the Indian Ocean is also expected to be enacted late this month. 
 
The Lower House's national basic policy committee yesterday 
discussed a possible party-heads debate between the prime minister 
and DPJ President Ichiro Ozawa. Although the ruling camp proposed 
holding a debate on Oct. 29, the DPJ placed on hold its decision. As 
a result, the two sides agreed to continue consultations. 
 
The prevailing view in the ruling coalition is that an environment 
for Lower House dissolution will be prepared if contentious issues 
between it and the DPJ are clarified in a party-heads debate. This 
would come after the compilation of a second economic stimulus 
package, following the passage of the extra budget and the Indian 
Ocean refueling bill. If the prime minister does not dissolve the 
Lower House in late October, the event would be pushed back to the 
end of the year or early next year in a bid to avoid affecting the 
compilation of the fiscal 2009 budget. The fiscal 2008 extra budget 
worth 1.8081 trillion yen was enacted as it was adopted by a 
majority of lawmakers from the ruling parties, the DPJ, the People's 
New Party, the Reform Club, and others at a plenary session last 
evening of the House of Councillors. 
 
11) Nakayama retracts decision not to run in Lower House election 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 17, 2008 
 
It was learned yesterday that House of Representatives member 
Nariaki Nakayama had conveyed his intention to run in the next Lower 
House election to seek a seventh term, withdrawing his earlier 
remarks that he would not run for the race. He informed a senior 
official of the Liberal Democratic Party's (LDP) Miyazaki 
prefectural chapter. Nakayama resigned as minister of land, 
infrastructure and transport to take responsibility for his 
criticism of the Japan Teachers' Union, as well as for his other 
controversial remarks. 
 
However, strong criticism is being raised from within the Miyazaki 
chapter, which has pushed ahead with the work of selecting another 
candidate by advertising. Nakayama's move will likely become a new 
source of confusion. 
 
According to the senior Miyazaki chapter official, Nakayama said on 
 
TOKYO 00002890  007 OF 008 
 
 
the phone: "I have made up my mind as I was told by persons close to 
me that I should run in the election. I will ask party headquarters 
to endorse me. I will meet with party officials on the 17th." 
 
12) Multilevel marketing company purchased fund-raising party 
tickets for State Minister for Consumer Affairs Noda 
 
TOKYO SHIMBUN (Page 1) (Full) 
October 17, 2008 
 
State Minister for Consumer Affairs Seiko Noda on October 16 made a 
Diet question that can be taken as defending multilevel marketing. 
In this connection, she told the Kantei that though she did not 
receive any political donations or speech fees, she had a multilevel 
marketing company buy fund-raising party tickets three times worth 
140,000 since 2004. 
 
Regarding the company that bought the party tickets, Noda insisted, 
"It is a company that is operating legally." She intends to seek 
understanding regarding the matter, revealing the facts at a press 
conference after a cabinet meeting to be held on the morning of the 
17th. 
 
In the meantime, she admitted at the Upper House Budget Committee on 
the 16th that she met with the trader in question before raising 
that question in the Diet in order to talk about the Diet 
questioning. Regarding this, she said, "I asked what business they 
are actually engaging in, as I was supposed to ask that question." 
She stressed that she was not asked about anything related to the 
specifics of the question. 
 
13) Senior vice internal affairs minister Kurata allegedly asked for 
issuance of visa for Filipino women who worked as bar hostess; He 
denies involvement 
 
ASAHI (Top Play) (Excerpts) 
October 17, 2008 
 
The Shizuoka Prefectural Police in September raided an incorporated 
nonprofit organization (NPO) on suspicion of forcing Filipino women, 
who allegedly came to Japan to perform in charity concerts but 
without an entertaining visa, to work as hostesses in Philippine 
bars. Concerning applications for short-stay visas for these woman 
submitted by the NPO, several sources of the Justice Ministry and 
the Foreign Ministry, which are responsible for immigration control, 
charged in their replies to questions asked by Asahi Shimbun that 
Senior Vice Internal Affairs Minister Kurata (LDP member, elected 
from the Tokai proportional representation bloc), a Lower House 
member, asked them to expedite the issuance of visas to those women. 
The effective operator of this NPO is a former government-paid 
secretary to Kurata. This secretary also allegedly asked the two 
ministries to issue visas to them. 
 
In response, Kurata said, "I have never made such a request. I do 
not know why my name was mentioned. It is probably my former 
secretary who mentioned my name." The former secretary explained, 
"Mr. Kurata's supporter made that request. I was told by Mr. Kurata 
to see what we could do. I worked out an arrangement that does not 
infringe on law in consultation with relevant government offices. 
The incident this time occurred, because the bars in question did 
not observe the arrangement I had prepared." 
 
 
TOKYO 00002890  008 OF 008 
 
 
Philippine pubs in Japan have come under fire as a hotbed for human 
trafficking. The U.S. Department of State, for instance, placed 
Japan on the Tier 2 Watch List. In response, the Justice Ministry 
further tightened qualification for the issuance of an entertaining 
visa. As a result, the issuance of entertaining visas to Filipinos 
sharply dropped from 80,000 recorded in 2004 to the 5,000 range in 
¶2007. 
 
However, there were many cases in which Filipino women came to Japan 
on a short-stay visa in the name of taking part in charity concerts. 
Determining that there is a possibility of irregularities about this 
kind of entry into Japan, police and immigration authorities made 
secret inquiries throughout the nation. In September this year, the 
Shizuoka Prefectural Police raided the "Future, Charity Planning 
Committee," an organization that dispatched Filipino women to five 
pubs and "Mirai," an NPO -- both are located in Shizuoka Prefecture. 
They arrested the owner (47) of the Philippine pub "Class-Metz," 
which has deep connections with both organizations, on suspicion of 
violating the Entertainment Business Control Law (operation without 
license) and the Immigration Control and Refugee Recognition Law 
(encouraging illegal work). 
 
According to the investigation conducted thus far, the "Future, 
Charity Planning Committee" started applying for short-stay visas 
for many women from around the spring of 2007 for charity shows to 
support the reconstruction of Leyte Island, which was hit by 
landslides. Those women appeared in concerts hosted by the 
Philippine Embassy. In the meantime, they were also dispatched to 
five Philippine pubs in Hamamatsu City. 
 
According to the allegations given by sources familiar with the 
matter, Kurata worked on Foreign Ministry and Immigration 
authorities several times, saying, "Please see to the charity 
concerts." According to sources related to the NPO, Kurata's former 
government-paid secretary had been involved in the organization 
since its foundation and served as a point of contact from related 
government agencies to the NPO. He also allegedly made frequent 
inquiries about the issuance of visas. 
 
Kurata is an attorney. He was first elected in the 2000 Lower House 
election. He is now a third-term Lower House member. H once served 
as director of the LDP Judicial Affairs Division. 
 
SCHIEFFER