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UNCLAS SECTION 01 OF 12 TOKYO 003023 
 
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 10/30/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Economic agenda: 
4) Five trillion yen shortfall in tax revenues expected this fiscal 
year; Government may have to break the 30 trillion yen ceiling in 
issuance of deficit bonds  (Asahi) 
5) Aso administration's additional economic package to be on the 
scale of 5 trillion yen in fiscal outlays and will involve large 
stock purchases  (Mainichi) 
6) Second supplementary budget could pass the current Diet session 
due to urgency of the economic situation  (Yomiuri) 
7) Prime Minister Aso's second supplementary budget aimed at 
containing the Democratic Party of Japan and other opposition 
parties  (Yomiuri) 
 
Political agenda: 
8) Aso still meeting secretly at hotels at night: Latest was an 
alleged dinner with his secretary that actually was with New Komeito 
leaders  (Mainichi) 
9) New Komeito accepts Aso's rationale for delaying Diet dissolution 
but a rift between that party and the Prime Minister is growing 
(Yomiuri) 
10) Liberal Democratic Party (LDP) in latest private election survey 
shocked to find out that the ruling camp would lose badly, and DPJ 
would win a sole majority  (Nikkei) 
 
11) LDP's Hidenao Nakagawa expects Lower House dissolution will not 
come until after the Tokyo assembly election next July  (Nikkei) 
12) In tactical shift, Japanese Communist Party approaching 
corporate managers and promoting job security  (Asahi) 
 
North Korea problem: 
13) Deputy Chief Cabinet Secretary Uruma says the government is 
considering adding more sanctions against North Korea  (Sankei) 
14) Six-Party Talks: U.S., Japanese delegates seek to repair the 
strains that have developed and then move on with the talks  (Asahi) 
 
 
Defense and security affairs: 
15) New anti-terrorist bill to allow refueling operations in the 
Indian Ocean unlikely to pass the Diet until November or later 
(Yomiuri) 
16) Outline of Defense Ministry's reform plan revealed  (Sankei) 
17) Nikkei editorial calls on government to hurriedly respond to 
piracy problem in waters off Somalia  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Tax revenue to fall more than 5 trillion yen 
 
Mainichi: 
Additional economic measures to include expansion of stock purchases 
by public institutions 
 
Yomiuri: 
 
TOKYO 00003023  002 OF 012 
 
 
Government eyeing 5 trillion yen boost for economy 
 
Nikkei: 
Second economic package aims to help economy via tax cuts for three 
years 
 
Sankei: 
Second supplementary budget to be submitted to current Diet session 
 
Tokyo Shimbun: 
Government announces today second economic package features cash 
benefits worth 2 trillion yen 
 
2) EDITORIALS 
 
Asahi: 
(1) Concern about possible expansion of special defense secrets 
leaking 
(2) Great expectations and concern about linear bullet train 
 
Mainichi: 
(1) Shortage of obstetrics and gynecology specialists urgent issue 
to be resolved 
 
Yomiuri: 
(1) Restoring public trust by teaching the teachers 
(2) Can Japan, China carry out reliable and speedy mutual assistance 
based on bilateral criminal treaty? 
 
Nikkei: 
(1) Economic slowdown testing solidarity of EU and euro 
(2) Anti-pirates measures off Somalia urgently needed 
 
Sankei: 
(1) Shinginko Tokyo Bank's illegal loan tip of the iceberg 
(2) Shortage of doctors should be resolved 
 
Tokyo Shimbun: 
(1) Lower House election postponement:  Are there any prospects 
without gaining the confidence? 
(2) Shinginko Tokyo Bank must put end to relying on tax money 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 29 
 
NIKKEI (Page 2) (Full) 
October 30, 2008 
 
07:34 
Took a walk around his private residence in Kamiyama-cho. 
 
11:09 
Met with Japan Finance Corporation President Yasui and Vice 
President Hosokawa at the Kantei. 
 
12:16 
Met with Finance Minister Nakagawa, followed by Land, Infrastructure 
and Transport Minister Kaneko. 
 
14:00 
Met with Vice Finance Minister for International Financial Affairs 
 
TOKYO 00003023  003 OF 012 
 
 
Shinohara and Foreign Ministry Economic Affairs Bureau Director 
General Otabe. Then met with the chairman of the Diet Members Caucus 
for Friendship between Indonesia and Japan. 
 
15:22 
Former LDP Tax System Research Commission Chairman Aizawa. 
 
16:22 
Met with State Minister for Economic and Financial Policy Yosano. 
 
17:15 
Met with Special Advisor Yamaguchi, followed by Secretary General 
Hosoda and Diet Affairs Committee Chairman Omori. Hosoda remained. 
 
18:56 
Met with Chief Cabinet Secretary Kawamura. 
 
19:33 
Met with Prince Charles and his wife, the Duchess of Cornwall, at 
Imperial Hotel together with his wife Chikako. 
 
20:22 
Dined with his family at Asada, a traditional Japanese restaurant in 
Akasaka. 
 
22:40 
Arrived at the private residence. 
 
4) Tax revenue for this fiscal year estimated to fall over 5 
trillion yen: Issuance of government bonds likely to top 30 trillion 
yen 
 
ASAHI (Top Play) (Full) 
October 30, 2008 
 
The likelihood is now tax revenue for the government's special 
account for fiscal 2008 will drop more than 5 trillion yen from the 
originally estimated 53.5 trillion yen. The reason is that corporate 
tax revenue will significantly drop with companies' business 
performance deteriorating in the wake of the financial crisis that 
started in the U.S. and the strong yen. The government finds it 
imperative to issue additional deficit-covering government bonds in 
order to make up for the fall in tax revenue. The amount of the 
issuance of government bonds will likely exceed 30 trillion yen for 
the first time in three years. 
 
The government has a goal of moving the primary balance into the 
black by fiscal 2011 to be achieved by holding down the issuance of 
new government bonds issued by that year at a level below the 
payment of interest on bonds issued in the past. If it issues 
additional deficit-covering government bonds in fiscal 2008, it 
would become very difficult to achieve the goal unless tax revenue 
jumps. 
 
The government had projected tax revenue for the general account in 
fiscal 2008, based on economic outlook and corporate performances as 
of December last year. It had estimated corporate tax revenue at 
16.7 trillion yen, approximately 30 PERCENT  of the total tax 
revenue. However, corporate tax revenue has markedly dropped this 
year due to the sharp rise in raw material prices and the slowdown 
in the U.S. economy. Corporate performance has further declined, 
compounded by the financial crisis and the strong yen. Valuation 
 
TOKYO 00003023  004 OF 012 
 
 
losses on companies' shareholdings due to a decline in stock prices 
are expanding. The cumulative total of corporate tax revenue for a 
period from April through August stood at 58 PERCENT  of the level 
of the same term in the previous year. The situation is so harsh 
that a significant drop in tax revenues would be inevitable even on 
a full-year basis. 
 
Sales tax revenue, which accounts for approximately 20 PERCENT  of 
tax revenue, is likely to fall with consumer spending remaining 
stagnant due to price rises. Plummeting stock prices are taking a 
toll on individual investors, causing concern over a negative effect 
on income tax revenue. 
 
As such, the Finance Ministry reviewed the estimate for fiscal 2008 
tax revenue. It now projects a shortfall of over 5 trillion yen. 
There is fear that if the economy continues to slow, tax revenue 
would further drop. It plans to submit a supplementary budget bill 
that incorporates revised-down tax revenue to the current 
extraordinary Diet session or the regular session to be convened 
next year. The plan is to make up for tax and other revenue 
shortfalls worth 25.3 trillion yen with the issuance of government 
bonds. In addition, it has already been set that additional 
construction bonds worth 400 billion yen would be issued to finance 
the first supplementary budget, which was approved in the 
extraordinary Diet session. One means of covering a tax revenue 
shortfall is to use reserves in the special account. However, since 
no major sum can be expected from the reserves, the government would 
find it unavoidable to issue additional government bonds. 
 
5) Additional economic pump-priming measures to feature stock 
purchase by Banks' Shareholdings Purchase Corporation: Unemployment 
insurance rate to be cut to 0.8 PERCENT 
 
MAINICHI (Top Play) (Excerpts) 
October 30, 2008 
 
The government and the ruling parties on October 29 finalized a 
package of additional economic pump-priming measures to deal with 
the deteriorating economy and the financial crisis. According to the 
plan, a total of 2 trillion yen will be paid out to individual 
households. The package will also incorporate a policy of 
considering large-scale stock purchases by public institutions as a 
fresh approach to undergird stock prices. The unemployment insurance 
rate will also be reduced 0.4 points from the current 1.2 PERCENT 
of employees' annual income, shouldered by employers and employees 
on a 50-50 basis, to 0.8 PERCENT  in fiscal 2009. Expressway tolls 
will also be cut. The government's fiscal disbursements will total 
about 5 trillion yen, significantly exceeding the size of the 
economic stimulus package (approximately 2 trillion yen), which the 
government adopted in late August. The project size will likely 
reach 20 billion yen. The package will mention that no 
deficit-covering government bonds will be issued to finance the 
package. 
 
Gist of government's additional economic pump-priming measures 
? A total of 2 trillion yen to be paid out to individual households 
without income restriction 
? Set up various funds as nursing-care, employment and low-birthrate 
measures. 
? Reduce the burden of both employers and employees by cutting 
employment insurance rate 
? Help irregular employees become regular employees 
 
TOKYO 00003023  005 OF 012 
 
 
? Largest-ever housing loan tax cut 
 
Financial and economic measures 
? Consider large-scale purchase of shares by public institutions, 
such as the Banks' Shareholdings Purchase Corporation 
? Revive the Financial Functions Early Strengthening Law, which 
enables the injection of public money into financial institutions 
for a preventive purpose 
? Far-reaching assistance to small- and medium-size businesses 
procuring funds to manage operating funds, by extensively expanding 
the credit guarantee system 
? Lowering the reduced tax rates applied to small- and medium-size 
businesses on a time-limited basis 
? Tax cut for the promotion of energy-saving investment. 
 
Revitalizing local areas 
? Allocating 1 trillion yen to local governments from special 
road-construction funds 
? Substantial cut in expressway tolls 
? Allocating special subsidies to local governments as a measure to 
promote regional economies 
 
Funding resources, etc. 
? Use reserves in the special account. Deficit-covering government 
bonds will not be issued. 
? Compile a mid-term tax system reform program, including the sales 
tax, with the aim of securing stable revenue sources for social 
security. 
 
6) Second supplementary budget may be submitted to current Diet 
session 
 
YOMIURI (Page 1) (Full) 
October 30, 2008 
 
A second economic stimulus package will be adopted this evening in a 
meeting of the government and ruling parties. Following this, Prime 
Minister Taro Aso will hold a meeting with New Komeito leader 
Akihiro Ota, who has called for an early dissolution of the House of 
Representatives, to seek again the New Komeito's understanding for 
his plan to push back a general election for the Lower House. After 
that, Aso will hold a press conference. 
 
The outlook is that the government will submit a second 
supplementary budget for fiscal 2008 in mid-November or later at the 
earliest to the current Diet session. In an effort to enact the 
second budget, the government and ruling coalition are looking into 
the possibility of extending the ongoing session, which will run 
until Nov. 30. 
 
7) Prime Minister Aso considering a second supplementary budget with 
aim of containing DPJ 
 
YOMIURI (Page 2) (Excerpts) 
October 30, 2008 
 
Prime Minister Taro Aso has begun looking into compiling a second 
supplementary budget for fiscal 2008. This is because there is a 
strong demand for additional economic measures from the public and 
because Aso has predicted that the main opposition Democratic Party 
(DPJ) will not be able to oppose emergency economic and financial 
measures. He appears to be trying to contain the DPJ's hard-line 
 
TOKYO 00003023  006 OF 012 
 
 
approach (demanding immediate Diet dissolution and a snap election) 
by putting forward the second extra budget to the current Diet 
session. 
 
Referring to fixed cash benefit payments worth 2 trillion yen, the 
key feature of the proposed second economic stimulus package, Aso 
told reporters last night: "There is a big difference in 
implementing the measures between before the end of the year and 
next year." He thus hinted at the possibility of submitting the 
second extra budget, including the cash benefit payment scheme, to 
the current Diet session. 
 
In a House of Councillors Budget Committee session on Oct. 15, Aso 
at the time expressed his intention to forgo the submission of a 
second supplementary budget to the ongoing session. He seemed to 
have judged that there would not then be enough time to pass a 
second budget during the current session because he had planned to 
dissolve the House of Representatives in October. The outlook is 
that if the government starts the work of compiling a second extra 
budget soon, the budget will be submitted to the Diet in mid to late 
November. There are only 2 weeks left until Nov. 30, when the 
session ends, for the Diet to deliberate on the new budget. If the 
DPJ cooperates on the passage of the budget as it did when the first 
supplementary budget was enacted, passage within two weeks would be 
possible. However, many lawmakers contend that a lengthy extension 
of the Diet would be needed in order to adopt the budget for 
certain. 
 
As a result, some government officials and ruling coalition members 
are cautious about the submission of a second extra budget, with one 
saying: "A lengthy extension of the current session would hinder the 
compilation in December of the national budget for fiscal 2009." 
 
A person close to Aso pointed out: "There are various options such 
as submitting it by extending the current session or submitting to 
the next regular session." 
 
Aso is trying to make the DPJ be actively involved in the economic 
and financial policy making of his government. He appears to be 
asking the DPJ for cooperation in case he submits a second extra 
budget. He seems to have assumed that it would be difficult for the 
DPJ, which is opposed to delaying Lower House dissolution, to now 
take a hard-line stance toward his Diet management for fear of 
public criticism. 
 
8) Aso secretly met with New Komeito leaders at hotel, contrary to 
official announcement that he had dined with secretary 
 
MAINICHI (Page 2) (Abridged slightly) 
October 30, 2008 
 
Prime Minister Taro Aso has been visiting hotels night after night. 
In many cases, those occasions have been used to hold secret 
meetings with government and ruling party members. 
 
The Prime Minister's Office had announced that the prime minister 
visited a hotel on the night of Oct. 28 to dine with his secretary. 
But it became clear later that he had a meeting with New Komeito 
Representative Akihiro Ota and others. Announcements different from 
the facts have resulted in a sense of distrust among the press 
corps. 
 
 
TOKYO 00003023  007 OF 012 
 
 
The prime minister's nighttime activities are conveyed to the press 
corps via the public relations secretary. According to the 
announcement, the prime minister dined with his secretary at the ANA 
Intercontinental Hotel, Akasaka, Tokyo, on the night of Oct. 28. 
 
The prime minister entered the hotel with his secretary at 8:04 p.m. 
Upon obtaining information that the prime minister would have talks 
with New Komeito leaders, the press corps searched all floors. 
Usually, police officers stand on guard at the elevator hall of the 
floor the prime minister is staying. They could not find even such 
police officers. 
 
The prime minister came out of the hotel about four hours later with 
his secretary. Ahead of that, a New Komeito source admitted a 
meeting with the prime minister. 
 
It has also become clear that the prime minister met with Finance 
Minister Shoichi Nakagawa and others on the night of Oct. 16 and 
with New Komeito Leader Ota and others on the 26th. About those two 
nights, the prime minister's secretary informed the press corps that 
the prime minister had dined with his secretaries. 
 
9) Even though New Komeito agrees to delay in Diet dissolution, rift 
remains with Prime Minister Aso 
 
YOMIURI (Page 4) (Excerpts) 
October 30, 2008 
 
Prime Minister Aso has made efforts to persuade the New Komeito to 
go along with the delay in dissolution of the Lower House. Although 
party executives are still insisting on an early dissolution, taking 
a hard look at the prime minister's decision, a mood has spread 
across the rest of the party accepting the delay. 
 
 Representative Ota, Secretary General Kitagawa and other Komeito 
executives had been assuming that at some point in the early part of 
Nov., Prime Minister Aso would announce that the election would be 
announced on Nov. 18 and held on Nov. 30. They were moving ahead 
with election preparations. The prime minister's tilt toward 
delaying the dissolution, citing the financial crisis, was 
unexpected. 
 
In the meeting on Oct. 26 of Aso, Ota, and Kitagawa, Ota reminded 
the prime minister that he had said he would hold an election on 
Nov. 30, and he urged that it be carried out as planned. But the 
prime minister repeatedly stated his thinking about giving priority 
to the economic stimulus package. At a second meeting of Aso, Ota, 
and Kitagawa in a hotel on the evening of the 28th, Ota and the 
others again pointed out the necessity of dissolving the Diet early, 
but the gulf between them and Aso remained wide. 
 
10) DPJ would win majority single-handedly, according to latest LDP 
internal polling 
 
NIKKEI (Page 2) (Full) 
October 30, 2008 
 
The Democratic Party of Japan (DPJ) would win a majority 
single-handedly, while the ruling camp would lose about 130 of the 
seats it now holds and wind up with just over 200 in the next 
general election, according to the Liberal Democratic Party's (LDP) 
latest internal survey. The survey results revealed yesterday are 
 
TOKYO 00003023  008 OF 012 
 
 
worse than those in its previous surveys, showing that the ruling 
coalition's crushing defeat will be unavoidable. These results have 
been conveyed to Prime Minister Taro Aso, apparently discouraging 
him from calling a Lower House at an early date. 
 
The LDP conducted four surveys by direct interview of 1,000 voters 
in each of 300 constituencies, asking which party they will vote for 
in the election. The first survey was conducted in late September, 
just after the Aso administration was launched, followed by a second 
and third carried by mid-October. This time, Secretary General 
Hiroyuki Hosoda picked about 120 priority constituencies. The 
results of the survey conducted on Oct. 24-26 were reported to only 
a few senior members, including the prime minister. 
 
The latest survey showed that candidates of the LDP and the New 
Komeito were in the lead in fewer than 120 of the 300 
constituencies, while the constituencies in which the DPJ candidates 
led totaled slightly less than 170. The number of seats expected in 
both single-seat constituencies and the proportional representation 
segment is about 180 for the LDP, around 25 for the New Komeito, and 
over 240 for the DPJ. 
 
In the first survey in late September, the expected number of seats 
for the ruling coalition was over 230. The prime minister has 
delayed a Lower House election, taking the survey results and the 
fallout from the global financial crisis into consideration, but the 
survey results showed that the situation surrounding the ruling camp 
became worse over the past month. 
 
11) Former Secretary General Nakagawa: Lower House dissolution is 
unlikely before Tokyo assembly election 
 
NIKKEI (Page 2) (Full) 
October 30, 2008 
 
Delivering a speech in Tokyo yesterday, Liberal Democratic Party's 
former Secretary General Hidenao Nakagawa indicated his view that 
the timing for the next House of Representatives election would be 
closer to the time when the incumbent Lower House members' terms 
expire next September. Nakagawa said: 
 
"We must have the bills related to next fiscal year's budget pass 
the Diet. The opposition camp is expected to demand thorough 
deliberations in the Diet, so we might have to resort to the 60-day 
rule. When considering this possibility, we might find it difficult 
to dissolve the Lower House before the Tokyo assembly election next 
summer." 
 
12) JCP approaching corporate managers to form new job rules 
 
ASAHI (Page 4) (Full) 
October 30, 2008 
 
The Japanese Communist Party (JCP) has put forth the rectification 
of differences in employment conditions as one of its main campaign 
issues for the next House of Representatives election. The party has 
been approaching corporate managers since they had responded 
favorably to its call for new employment rules in order to enhance 
the competitiveness of Japanese industry. The JCP is aiming at 
spreading sympathy from low-wage earners to employers. 
 
"The Japanese Communist Party aims for a harmonious relationship 
 
TOKYO 00003023  009 OF 012 
 
 
with large companies under a new democratic economic system," said 
Chairman Shii in a meeting sponsored by the economic information 
magazine BOSS in late September. Speaking before nearly 100 
corporate managers, Shii emphasized the need for rule-based 
capitalism and sought their understanding for the JCP's policy 
stance. 
 
Detailing the plight facing dispatched workers, Shii said: "If 
companies continue to take the 'throwaway' formula, there will be no 
future for Japanese society. ... Capitalism will develop for the 
first time if rules are set to contain desires to excessively pursue 
profits." Later, Shii commented: "The participants were earnestly 
listening to me throughout my speech, nodding their heads." 
 
Shii reiterated the need for regulations on companies to be 
tightened, focusing on the so-called working poor, in meetings in 
February and in October of the House of Representatives Budget 
Committee, evoking favorable responses from young people. A member 
of the public relations office said: "The site on questions and 
answers in the committee meetings has received more than 100,000 
hits." 
 
The next challenge for Shii is to spread such sympathy among 
corporate managers. Shii said: "I hear many considerate 
entrepreneurs saying that the current way of using and then 
discarding young workers must not be left unattended." A senior 
party member said: "Companies have lost a sense of direction with 
the end of new liberalism." The JCP intends to urge companies to 
change within themselves. 
 
13) Deputy Chief Cabinet Secretary Uruma calls for additional 
sanctions on North Korea 
 
SANKEI (Page 4) (Full) 
October 30, 2008 
 
Deputy Chief Cabinet Secretary Iwao Uruma in an abduction issue 
taskforce meeting yesterday revealed a view that the government 
should consider slapping additional sanctions on North Korea as one 
approach to resolve the issue of Japanese nationals abducted by the 
North. He said: "The question is whether or not we can put pressure 
on North Korea to drive it into a tight corner. We have to come up 
with an innovative idea." 
 
Uruma also underlined the importance of collecting information on 
the situation in North Korean, saying: "We won't be able to have a 
dialogue that can prompt the North to take action unless we develop 
a channel to a special body directly connected with (the Korean 
Workers Party) and the military in order to get the Japanese 
government's message across." 
 
14) Japan-U.S. relations repaired for time being through meeting of 
two countries' delegates to six-party talks 
 
ASAHI (Page 10) (Full) 
October 30, 2008 
 
Toru Tamagawa, Kei Ukai, Washington 
 
Dissolving hard feelings between Japan and the United States was one 
of the major goals for the meeting of the two countries' chief 
delegates to the six party talks, held for the first time since the 
 
TOKYO 00003023  010 OF 012 
 
 
United States removed North Korea from its list of 
terrorism-sponsoring countries. Foreign Affairs Asian and Oceanian 
Affairs Bureau Director-General Akitaka Saiki and U.S. Assistance 
Secretary of State Christopher Hill managed to restore the two 
countries' cooperative relationship for the time being through an 
effort to look for countries to assume Japan's share of energy aid 
to North Korea. But the two countries remain far apart on the 
verification process for North Korean nuclear programs. 
 
Receiving Saiki at the entrance to the State Department, Hill shook 
hands with him before the press corps. The two officials held talks 
for about an hour, followed by a dinner. Witnessing the unusually 
cordial reception, a Japanese negotiations source said, "I sensed 
acutely the United States was giving him consideration." State 
Department spokesman Sean McCormack, too, showed consideration to 
Japanese public opinion, saying in a press briefing ahead of the 
talks: "At the top of the agenda is to re-announce our support for 
Japan regarding the abduction issue." 
 
In the meeting, Hill briefed Saiki on the ongoing talks with 
Australia and other countries to let them take over Japan's share in 
energy aid to the North equivalent to 200,000 tons of heavy fuel. 
 
Although the planned end-of-October completion of the energy aid in 
return for the disablement of North Korean nuclear facilities is 
bound to be delayed Hill said, "The disablement has outpaced the 
aid." A failure to implement Japan's share might end up giving the 
North an excuse to suspend the disablement. 
 
With discontent toward Japan simmering among the other members of 
the six party talks, America's coordination effort was helpful for 
Japan. Chief Cabinet Secretary Takeo Kawamura in a press briefing 
yesterday indicated that Japan would welcome other countries taking 
over Japan's share, saying: "On the abduction issue as well, 
Australia will ask for progress." 
 
But the future warrants no optimism. In the next six-party talks, 
the focus would be whether or not what was agreed upon between the 
United States and North Korea can be put down in writing. Japan 
remains anxious, with the negotiations source saying, "The United 
States has delisted the North without any assurances." 
 
The U.S. government is set to finalize the specifics on the 
verification agreement at the working-level talks to be held in New 
York next week. But with a change of government slated to occur in 
January, the focus is already shifting to handing the matter to the 
next administration without jeopardizing the North Korean situation. 
To what extent Japan's assertion can be accepted remains unclear. 
 
15) Amended antiterror law will not be enacted until next month or 
later 
 
YOMIURI (Page 4) (Full) 
October 30, 2008 
 
The House of Councillors Foreign Affairs and Defense Committee 
decided in a meeting of its directors yesterday to continue 
deliberations on a bill amending the new Antiterrorism Special 
Measures Law extending the Maritime Self-Defense Force's refueling 
activities in the Indian Ocean. Committee directors from the 
opposition parties claimed that the legislation has yet to be fully 
discussed, so the ruling parties gave up on taking a vote on the 
 
TOKYO 00003023  011 OF 012 
 
 
bill today. Accordingly, the new antiterror legislation's enactment 
will slip into November. 
 
The opposition parties also demanded the committee summon witnesses 
to testify on the situation in Afghanistan. The ruling Liberal 
Democratic Party and the leading opposition Democratic Party of 
Japan (Minshuto) coordinated between their senior committee 
directors and then agreed to hold a hearing of witnesses on Nov. 5. 
The LDP and the DPJ will continue their consultations on when to 
take a vote on the legislation. However, the vote is expected to be 
on Nov. 6 or later. 
 
16) Defense Ministry reform: New bureau eyed for SDF manpower, 
hardware procurement planning 
 
SANKEI (Page 3) (Abridged) 
October 30, 2008 
 
The Defense Ministry has now drawn up a basic plan for its 
organizational reform. According to the draft plan unveiled 
yesterday, the Defense Ministry will create a new bureau for defense 
buildup planning, which is currently done by an existing bureau in 
the Defense Ministry and also by the Ground, Maritime, and Air 
Self-Defense Forces' respective staff offices. Based on this plan, 
the Defense Ministry will study restructuring its organization. The 
newly planned bureau will be tasked with working out blueprints for 
the SDF's manning level and mainstay equipment. SDF operational 
planning will be totally excluded from the scope of the Defense 
Ministry's internal bureau functions and will be entirely undertaken 
by the SDF Joint Staff Office. 
 
The Defense Ministry is expected to hold a meeting of its in-house 
restructuring taskforce today to make a decision on the reform plan. 
Meanwhile, the prime minister's office will enhance its functions 
and formulate Japan's security strategies. Given this, the basic 
plan also says the Defense Policy Bureau, one of the Defense 
Ministry's internal bureaus, will work out medium- and long-term 
defense strategies. 
 
The newly planned bureau, which will integrate the defense buildup 
planning functions of the Defense Ministry's internal bureaus and 
the GSDF, MSDF, and ASDF staff offices, will be vested with 
huge-scale budgetary authorization, as it will be endowed with such 
functions as: 1) compiling and executing each new fiscal year's 
budget; and 2) working out blueprints for SDF manpower and 
equipment, research and development, manning levels for the three 
SDF branches. The three SDF staff offices' remaining functions will 
be limited to those closely related to the SDF like clothing and 
food purchases. 
 
17) Editorial: Japan must hurry up on Somalia offing antipiracy 
counteractions 
 
NIKKEI (Page 2) (Full) 
October 30, 2008 
 
The Red Sea is strategically important for the sea lanes connecting 
Asia and Europe, and ocean liners enter there through the waters off 
Somalia. This offing-particularly the Gulf of Aden-is where pirates 
are rampant, hijacking ships and taking hostages. The United Nations 
and the North Atlantic Treaty Organization (NATO) have now set about 
taking counteractions. Japan also should consider proactive 
 
TOKYO 00003023  012 OF 012 
 
 
contributions. 
 
The International Maritime Bureau (IMB), which works for sea 
security and environmental protection, says there were 63 acts of 
piracy in the waters off Somalia between January and September this 
year, several times more than in the preceding year. Those incidents 
include 26 hijackings with a total of 537 hostages. At present, 12 
ships and 250 persons are still under the control of pirates. This 
year, two Japanese ships were also attacked there. 
 
In September, a Ukrainian freighter loaded with 33 tanks was 
hijacked. The ship and hostages have yet to be released. 
 
Those pirates are based in Somalia, and they reportedly number 1,000 
or 1,200. The pirates there have large weapons, and their hijacking 
activities are organized. They have been making big money, including 
ransoms. 
 
Somalia has been in a state of anarchy since 1991 due to a civil 
war. Its authorities therefore cannot be expected to crack down on 
the pirates. 
 
The Gulf of Aden leads to the Suez Canal and is a sea corridor for 
an annual total of more than 20,000 ships. According to the Japanese 
Shipowners' Association (JSA), about 10 PERCENT  or a little over 
2,000 ships among Japanese shipping companies' ships pass through 
the Gulf of Aden. 
 
Many countries and international organizations are concerned about 
the problem in this sea area. In early October, the U.N. Security 
Council passed a resolution calling on all interested countries to 
send naval ships and military aircrafts there. 
 
On Oct. 27, NATO vessels were sent to the offing of Somalia for the 
first time against pirates. They are said to escort ships carrying 
international relief goods. 
 
Japan also cannot be indifferent to this problem. JSA Chairman 
Hiroyuki Maekawa has asked Land and Transport Minister Kazuyoshi 
Kaneko to take countermeasures immediately, and Prime Minister Taro 
Aso has ordered government officials to look into the possibility of 
sending the Maritime Self-Defense Force. The security of sea lanes 
is indispensable for Japan's economic security, so the government 
should positively consider taking countermeasures. 
 
Several years ago, pirates in the Straits of Malacca became a 
problem. Nowadays, in this sea area, coastal countries' cooperation 
is well under way, with the number of acts of piracy having 
decreased sharply. International cooperation is needed for 
escorting, warning, and information sharing in the offing of Somalia 
as well. 
 
SCHIEFFER