VZCZCXRO9805
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3051/01 3050817
ZNR UUUUU ZZH
P 310817Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8456
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 3086
RUEHFK/AMCONSUL FUKUOKA 0722
RUEHOK/AMCONSUL OSAKA KOBE 4505
RUEHNAG/AMCONSUL NAGOYA 8784
RUEHKSO/AMCONSUL SAPPORO 1295
RUEHBJ/AMEMBASSY BEIJING 6148
RUEHUL/AMEMBASSY SEOUL 2144
RUCNDT/USMISSION USUN NEW YORK 2362

UNCLAS SECTION 01 OF 10 TOKYO 003051 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 10/31/08 
 
INDEX: 
 
(1) Next possible timing for Lower House election: Second 
supplementary budget holds key; Prime minister also eyeing 
end-of-year period (Asahi) 
 
(2) Lawmakers in favor of early Diet dissolution, including Hosoda 
and Oshima, disappointed at Aso's decision (Asahi) 
 
(3) In interview DPJ Secretary General Hatoyama says, "DPJ makes 
frontal attack in Diet" (Yomiuri) 
 
(4) SOFA not an obstacle: Nakasone (Ryukyu Shimpo) 
 
(5) One week after crash of U.S. military light aircraft, 
uncertainty looming over investigations (Ryukyu Shimpo) 
 
(6) Former U.S. Ambassador to Japan Baker launches group of six 
experts to give advice to Japanese companies on business in U.S. 
(Nikkei) 
 
(7) Air cargo: ANA to tie up with UPS; Global reorganization 
underway following sluggish demand (Nikkei) 
 
(8) U.S. consulate general visits Obama City to inspect Obama fever, 
meets mayor, support group for U.S. presidential candidate Barack 
Obama (Fukui Shimbun) 
 
ARTICLES: 
 
(1) Next possible timing for Lower House election: Second 
supplementary budget holds key; Prime minister also eyeing 
end-of-year period 
 
ASAHI (Page 3) (Full) 
October 31, 2008 
 
How to handle the second supplementary budget for financing the 
implementation of the new set of economic stimulus measures holds 
the key to when the prime minister will dissolve the Lower House. 
 
The prime minister during a press conference on October 31 stressed: 
"It is necessary to address the anxieties felt by the public by 
realizing policies. This is the top priority." In order to make a 
public appeal regarding Aso's policy imprint, too, it is 
indispensable to pass the second supplementary budget. 
 
However, the DPJ is stepping up its confrontational stance, because 
the prime minister has delayed dissolution of the Lower House. Even 
if the supplementary budget secures Diet approval because of 
priority given to a decision by the Lower House, a revote must be 
taken in the Lower House if it is voted down in the opposition 
party-controlled Upper House. Great difficulties remain for the 
second supplementary budget. 
 
Chances are that the current extraordinary Diet session could be 
extended into the new year, because in order to enact the second 
supplementary budget bill during the extraordinary Diet session, it 
is necessary to significantly extend the session, which is to close 
at the end of November. The prime minister during the press 
conference on the 30th stated that if it becomes difficult to find a 
breakthrough in the confrontation with the DPJ, he would take into 
 
TOKYO 00003051  002 OF 010 
 
 
consideration the possibility of going to the people over the 
propriety of the economic package by dissolving the Lower House. As 
such, it is conceivable that the Lower House could be dissolved 
around the end of the year. 
 
What if the prime minister allowed to the extraordinary Diet session 
to adjourn and suspended the submission of the second supplementary 
budget bill until the regular Diet session is convened in January 
next year? Since the prime minister has a policy of attaching 
importance to the economy, passing the second supplementary budget 
and the fiscal 2009 budget will become his supreme tasks. The 
possibility is, therefore, strong that the Lower House will be 
dissolved in April or later after the fiscal 2009 budget is enacted. 
However, if the timing for Lower House dissolution is further 
delayed and New Komeito, which wants to focus on the Tokyo 
Metropolitan Government Assembly election in the summer, shows 
disapproval, the prime minister will likely find it impossible to 
dissolve the Lower House until the current term ends next 
September. 
 
As such, some take the view that the prime minister should not 
reveal when he will submit the second supplementary budget. This is 
an option that might strengthen the prime minister's power base. 
 
Former Finance Minister Bunmei Ibuki at noon of the 30th said at his 
faction meeting, "The prime minister must not say whether or not he 
will submit the supplementary budget to the extraordinary Diet 
session." As LDP secretary general during the previous Fukuda 
administration, Ibuki spearheaded the steering of the Diet up until 
the regular Diet session this year. He experienced travails over the 
selection of a Bank of Japan governor and budget-related bills 
because of the divided Diet. All the more for that reason, he 
believes that the prime minister should take the lead in steering 
the Diet by keeping to himself when he will submit the second 
supplementary budget bill to the Diet. 
 
As a matter of fact, Aso during the press briefing that day simply 
noted, "Whether the supplementary budget will secure Diet approval 
or not will affect the timing for dissolving the Lower House." He 
steered clear of mentioning when the budget bill would be submitted. 
He added: "When to dissolve the Lower House is closely related to 
the steering of the Diet. I cannot find an answer unless I determine 
whether I can obtain cooperation from the DPJ." 
 
(2) Lawmakers in favor of early Diet dissolution, including Hosoda 
and Oshima, disappointed at Aso's decision 
 
ASAHI (Page 4) (Full) 
October 30, 2008 
 
Prime Minister Taro Aso has decided to put off the general election 
planned for November. Following this decision, discord began to 
emerge in the ruling camp. Liberal Democratic Party (LDP) Secretary 
General Hiroyuki Hosoda and Diet Affairs Committee Chairman Tadamori 
Oshima, who used to stress the possibility of an early Diet 
dissolution, have been exposed to cold gazes in the political 
world. 
 
On the night of Oct. 25, Aso indicated in an Asia-Pacific Conference 
summit a willingness to put off the dissolution of the Diet, saying: 
"I think that the government should give priority to an 
international role over a domestic Diet dissolution." Around that 
 
TOKYO 00003051  003 OF 010 
 
 
time, Secretary General Hosoda found an old piano at a 
Japanese-style hotel in Matsue City, his electoral district, and 
began to play Beethoven's Piano Sonata No. 8. He might have begun to 
feel "his defeat." 
 
Hosoda had stressed in street-corner speeches that day: "It is 
desirable for Mr. Aso to win public confidence (in the election) 
first and then carry out various policy measures." But Aso had 
gradually inclined toward the idea of delaying the election, 
affected by persuasion by his friend, Finance Minister Nakagawa. 
 
Hosoda, who comes from the largest Machimura faction, is known as an 
expert on circumstances in constituencies. He analyzed that the LDP 
would stand more of a chance if the Lower House is dissolved 
quickly, rather than allowing confusion to be caused as a result of 
Diet dissolution delayed. Hosoda promptly set up his campaign office 
upon sensing the prime minister's eagerness for an early Lower House 
dissolution. 
 
Hosoda said on the 18th: "It is most desirable for the government to 
dissolve the Lower, win public confidence in an election, and then 
come up with economic pump-priming measures. On behalf of Mr. Aso, I 
dare to say that the Lower House will be soon dissolved." His words 
grew the mood of dissolution. 
 
But Aso repeatedly said: "I give priority to policy achievements 
over dissolving the Lower House," gradually making Hosoda feel that 
he struck out from others. Aso faction chairman Koki Chuma 
complained: "I wonder if it is proper for the secretary general to 
talk about a specific timetable." A member of the faction also 
criticized Hosoda, saying: "Many in the Machimura faction are 
calling on the government to quickly dissolve the Lower House. Their 
anticipation is reflected in his remarks that will increase the mood 
of dissolution." 
 
Many inside and outside the LDP now see Secretary General Hosoda 
have not fully communicated with the prime minister. Junior members 
who started preparations for the election in response to Hosoda's 
remarks have also expressed their discontent with him. 
 
Relations between Hosoda and Election Strategy Council Chairman 
Makoto Koga are subtle. Koga had initially advocated an early Diet 
dissolution but has begun to call for pushing it back to later time, 
exposing cracks appearing within the party executive. Koga proudly 
said to his aides on the night of Oct. 28, "It is now likely that 
the Lower House will be dissolved when the incumbent members' terms 
expire." 
 
Meanwhile, Diet Affairs Committee Chairman Oshima said in a campaign 
speech in his electoral district on the 18th: 
 
"The people must be feeling that the government should have a chance 
to listen to the people's voices, because three successive prime 
ministers assumed office in a row with no election. Based on the 
principle of popular sovereignty, the government should call an 
election. President Aso should make the decision in the not too 
distant future." 
 
In the political world, the argument for an early dissolution had 
toned down, but the remark by Oshima sparked such an argument back 
to life. Oshima is one of the closest aides to Aso, as admitted even 
by Nakagawa and other friends of Aso. 
 
TOKYO 00003051  004 OF 010 
 
 
 
Oshima, as Diet Affairs Committee chairman in the Abe and Fukuda 
cabinets, experienced difficulties in managing political affairs in 
the divided Diet since the LDP suffered a crushing defeat in the 
House of Councillors' election in the summer of last year. The 
Democratic Party of Japan has insisted on the need for the 
government to seek the popular will as the just cause for its call 
for an early Diet dissolution. To contain such an argument, Oshima 
thought there would be no other means but for the government to 
swiftly seek the people's confidence and to restore its legitimacy. 
 
Aso drew up this scenario with Oshima: He would ask DPJ President 
Ozawa questions in his policy speech at the outset of the 
extraordinary Diet session and announce his decision to dissolve the 
Lower House, citing the lack of clear-cut replies from Ozawa as the 
reason. 
 
When asked by the prime minister to assume the post of chief cabinet 
secretary, Oshima declined the offer, because he believed that 
nobody but he can explore an appropriate timing for dissolving the 
Diet through Diet management. Even after giving up dissolving the 
Diet at the outset of the ongoing extraordinary Diet session, Oshima 
continued to make efforts, urging the DPJ to respond to early 
deliberations, so that the government would be able to dissolve the 
Lower House in late October with the achievement of the 
supplementary budget. 
 
Seeing the prime minister remained undecided over the timing for the 
dissolution, Oshima had voiced concern to members of his support 
group. 
 
As feared by Oshima, Aso told him on the night of the 27th: "I am 
now determined to carry through the current Diet session." On the 
following day, Oshima told reporters: "No matter what the situation 
would be, it is my duty to produce a conclusion in the Diet." 
 
Oshima will become the longest serving LDP Diet Affairs Committee 
chairman in postwar Japan on Dec. 12. The New Komeito and even the 
DPJ viewed Oshima's words as indicating the timing for the 
dissolution of the Lower House. Given this, his credibility has been 
undermined. Former Secretary General Hidenao Nakagawa said: "Diet 
management is expected to become even more difficult than that in 
the Abe and Fukuda administrations" in the current Diet session. 
Oshima must be keenly feeling a rocky path lies ahead of him. 
 
(3) In interview DPJ Secretary General Hatoyama says, "DPJ makes 
frontal attack in Diet" 
 
YOMIURI (Page 4) (Full) 
October 30, 2008 
 
-- When do you think will the House of Representatives be 
dissolved? 
 
Hatoyama: A dissolution of the Lower House at the end of the current 
extraordinary session or at the outset of a regular session next 
year is most likely. 
 
-- How do you depict the process of a Lower House dissolution? 
 
Hatoyama: We initially tried to prevent useless prolongation of 
deliberations on the supplementary budget, predicting that Prime 
 
TOKYO 00003051  005 OF 010 
 
 
Minister Aso would dissolve the lower chamber earlier. We thought 
that we would be able to force a dissolution, since we have learned 
that the Prime Minister will necessarily dissolve the Lower House 
even if a no-confidence motion is adopted (in the Upper House). 
During a Diet debate, we will demonstrate that the DPJ is more 
attractive (than the ruling Liberal Democratic Party (LDP)). We will 
make a frontal attack gradually by indirect means. We will also take 
a tactic of forcing dissolution after completely beating down (Aso 
and the ruling coalition). 
 
-- Will the DPJ demand that former Komeito Chairman Junya Yano be 
called to testify before the Diet as an unsworn witness? 
 
Hatoyama: We will do it if there is enough time. It is unreasonable 
that the religious sect Soka Gakkai's facilities that enjoy tax-free 
status are used for election campaigns. I would like to hear Mr. 
Yano's experiences at the Diet. 
 
-- How will your party respond if a second supplementary budget is 
submitted to the Diet? 
 
Hatoyama: The situation is not that such a budget will easily clear 
the Diet. I see that a cash benefit payments scheme is legal 
election law violation and it is an idea of carrying out a general 
election by distributing public funds. We will have to seriously 
discuss whether a second extra budget is most appropriate economic 
stimulus measure. 
 
-- Do you think DPJ President Ichiro Ozawa will switch to another 
electoral district? 
 
Hatoyama: If (Ozawa) judges that the DPJ will win without switching 
to another district, he will not switch. However, when analyzing 
each electoral district, it is not that easy for our party to win. 
Time will come for Mr. Ozawa to make a decision for a political 
change. Switching to another district is the most visible way to 
show his determination. 
 
-- What is the goal of your party? 
 
Hatoyama: The minimum goal is to become the largest party. If the 
DPJ becomes the largest party in both chambers of the Diet, the LDP 
should fall into the opposition. If we fail to win the election, we 
may be caught up in a wave of political realignment. We believe that 
we should avoid political realignment. 
 
-- Even if the DPJ wins the next Lower House election, it does not 
have a single-handed majority in the Upper House. Which do you 
expect -- forming a coalition with the Social Democratic Party and 
the People's New Party, or the possibility of portion of the LDP 
members leaving from the party? 
 
Hatoyama: We envisage both options. If the DPJ wins, there will be a 
possibility of political realignment under which some LDP members 
would side with us. If we are defeated, the LDP will strengthen the 
momentum. As a result, there is a possibility that our party's Upper 
House position will be shaken. 
 
(4) SOFA not an obstacle: Nakasone 
 
RYUKYU SHIMPO (Page 2) (Full) 
October 31, 2008 
 
TOKYO 00003051  006 OF 010 
 
 
 
TOKYO-Foreign Minister Hirofumi Nakasone stated his views before the 
House of Councillors Foreign Affairs and Defense Committee yesterday 
afternoon regarding the recent crash of a U.S. military light 
aircraft (in Nago City, Okinawa Prefecture). Okinawa prefectural 
police sought to seize the crashed aircraft, but the U.S. military 
rejected the police request. "Japanese and U.S. authorities are 
inspecting the crash site and they are still investigating the 
accident in cooperation," Nakasone stated. He added, "I don't think 
the Japan-U.S. Status of Forces Agreement (SOFA) is an obstacle to 
the investigation." 
 
Regarding whether the aircraft crash is handled as an accident in 
the line of duty, Foreign Ministry North American Affairs Bureau 
Director General Shinichi Nishimiya indicated that the pilot was off 
duty when the crash took place. "Judging from the various 
circumstances," Nishimiya stated before the committee, "we cannot 
think the pilot was on duty." He added, "They have not issued a 
certificate of official duty so far." Nakasone and Nishimiya were 
both replying to questions asked by Tokushin Yamauchi from the 
Social Democratic Party. Meanwhile, the U.S. military will relocate 
Marines from Okinawa to Guam, and the Japanese government has agreed 
with the U.S. government to pay 6.09 billion dollars in sharing the 
burden of costs for the Marines' Guam relocation. In this regard, 
Defense Minister Yasukazu Hamada indicated that Japan would not 
comply even if there is a request from the United States for a 
further cost-sharing burden. "We will not change the ceiling (of 
Japan's burden sharing)," Hamada stated. 
 
In May 2006, the Japanese and U.S. governments finalized and 
released a report regarding their concurrence on the realignment of 
U.S. forces in Japan, estimating the total amount of costs for the 
Marines' Guam relocation at 10.27 billion dollars. Last month, 
however, the U.S. Government Accountability Office (GAO) released a 
report describing that the Guam relocation costs will add up to over 
15 billion dollars. Hamada was replying to a question asked by 
Satoshi Inoue from the Japanese Communist Party. 
 
The U.S. military is also reportedly planning to deploy the MV-22 
Osprey, a vertical takeoff and landing aircraft, to Okinawa. Asked 
about the possibility of its deployment to Okinawa, Hamada stated 
that the Japanese government has received no explanation from the 
U.S. government about the U.S. Marine Corps' aircraft plan for 2009. 
"There is a general plan to replace CH-46 and CH-53 helicopters 
based around the world with Ospreys, so I cannot rule out the 
possibility of their being deployed to Okinawa," Hamada added. He 
was replying to a question from Yamauchi. 
 
(5) One week after crash of U.S. military light aircraft, 
uncertainty looming over investigations 
 
RYUKYU SHIMPO (Page 24) (Full) 
October 31, 2008 
 
One week has passed since a U.S. military light aircraft 
crash-landed in Makiya, Nago City, Okinawa Prefecture, on the 
evening of Oct. 24. The prefectural police sought to seize the 
crashed plane, but the U.S. military, based on the Status of Forces 
Agreement (SOFA), rejected the police request and moved the plane to 
Kadena Air Base. The U.S. military had made the same response when a 
U.S. military helicopter crashed into the campus of Okinawa 
International University in 2004, which evoked strong reactions from 
 
TOKYO 00003051  007 OF 010 
 
 
residents of the prefecture. The case this time showed that the 
biased conditions in the SOFA have been left uncorrected. The U.S. 
military allowed the prefectural police to question one of the four 
U.S. servicemen aboard. If all the four members leave the prefecture 
and return home or to be transferred to other bases before the facts 
are found, it may become difficult to prosecute them. Japanese 
investigative authorities are required to swiftly take investigative 
procedures. 
 
In a meeting of the Okinawa Prefectural Assembly U.S. Military Base 
Special Committee on Oct. 27, three days after the accident, 
Kiyoharu Hidaka, head of the prefectural police's criminal 
investigation department, spoke of the situation in which the U.S. 
military has discretion over basic investigations, including the 
questioning of witnesses and the examining of aircraft. In response 
to a question in the meeting, Hidaka said: "We sought to take 
possession of the aircraft after a joint inspection is conducted at 
the crash site, but the U.S. rejected our request. We later made the 
same request in writing again, but we have not received a response. 
The fuselage has not been fully inspected." He then attributed the 
U.S. response to the SOFA. 
 
A minute on agreed matters concerning Article 17 of the SOFA and the 
special law on criminal matters do not allow Japan to confiscate 
U.S. property without the U.S. military's consent. 
 
Hidaka stressed his determination to prosecute the accident as a 
case violating the law against aviation dangerous acts, remarking: 
"We will strongly ask the U.S. to provide the results of its 
inspections of the fuselage and other matters." It is considered 
that the accident occurred because the plane ran out of fuel. But 
the prefectural police are willing to find out the cause of the 
crash by reexamining the fuselage and other matters. 
 
In this case, the U.S. allowed the prefectural police to inspect the 
fuselage and to question the pilot, although Japan was not allowed 
to do so in the 2004 accident. The accident occurred when the pilot 
was off duty. The case in 2004 was dropped in Japan because the U.S. 
military exercised primary jurisdiction, but in the case of the 
accident this time, Japan has the right to exercise jurisdiction, so 
it will be possible for Japan to establish a case. 
 
In the 2004 accident, it was impossible to prosecute the case 
because papers were sent with the name column left blank and for 
other reasons. In addition, all the four U.S. servicemen aboard were 
found to have returned home about two months after the incident. The 
SOFA has made it impossible for Japan to exercise its police 
authority and judicial power. 
 
But a senior official of the prefectural police eagerly said: "The 
law against aviation dangerous acts can be applied to aircraft 
crashes resulting in exposing others to danger. (In the latest case 
in which Japan has primary jurisdiction) the crash itself will 
enable us to prosecute the case, even if the four had arranged to 
tell the same story." Even so, the future of investigations is still 
uncertain because what happened in the 2004 case could occur this 
time. 
 
(6) Former U.S. Ambassador to Japan Baker launches group of six 
experts to give advice to Japanese companies on business in U.S. 
 
NIKKEI (Page 2) (Full) 
 
TOKYO 00003051  008 OF 010 
 
 
Evening, October 30, 2008 
 
A new effort by Japanese and U.S. experts to revitalize Japanese 
companies' business activities in the U.S. was launched in 
Washington on October 29. Former Ambassador to Japan Howard Baker 
started a new group "Japan-U.S. Strategic Advisory," which will 
broker business talks between Japan and the U.S. The group consists 
of six experts from political, bureaucratic and academic circles. 
Two experts, including former Vice Foreign Minister Shotaro Yachi, 
joined the group from Japan. 
 
The Japan-U.S. Strategic Advisory will serve as a consultant for 
Japanese companies that are considering making large-scale 
investment or taking a stake in U.S. companies or carrying out M&As 
in the U.S. To be precise, the group is assuming major demand in 
such areas as nuclear power generation, the environment, transport 
and nanotechnology. It plans to deal with wide-ranging business 
areas, including analyses of the investment environment, providing 
intermediate service and helping M&A negotiations. 
 
Baker acted as a broker when Toshiba decided to buy Westinghouse, a 
leading nuclear power generation company. The member of the group 
also includes former U.S. Senator Bennett and former Under Secretary 
of the U.S. Department of Energy John Tuck. 
 
(7) Air cargo: ANA to tie up with UPS; Global reorganization 
underway following sluggish demand 
 
NIKKEI (Page 3) (Full) 
October 30, 2008 
 
All Nippon Airways Co. will tie up with United Parcel Service Inc., 
a leading freight distribution company, for air cargo services. The 
two companies will fly with each other's air cargoes onboard to 
raise the cost efficiency of their flights. They also plan to launch 
code-sharing cargo flights. Demand for international freight 
services is declining due to the global economic slowdown triggered 
by the financial crisis. In their code sharing, ANA will concentrate 
its management resources in Asia and UPS on Europe- and U.S.-bound 
flights for more efficient operations. 
 
The two companies basically agreed to launch code-sharing flights in 
late March 2009. A tie-up between two major businesses, one in the 
airline business and the other in the distribution sector, is rare. 
International reorganization is underway in the passenger 
transportation industry. The tie-up between the two companies will 
likely trigger the grouping of air cargo companies with business 
partners in different industries. 
 
ANA and UPS have yet to boil down code-sharing flight routes and the 
number of such flights. In the joint operations, ANA is expected to 
undertake UPS air cargoes bound for China, South Korea and Thailand. 
UPS will carry ANA cargoes on its flights bound for European 
countries, the U.S. and the Philippines. Since the two companies' 
cargo planes have surplus capacity due to a fall in the volume of 
cargo transportation, it will be possible for them to rationalize 
their business by reducing the number of flights if their 
code-sharing flights increase. 
 
UPS is a leading distribution company standing abreast with FedEx of 
the U.S. and DHL of Germany. It flies about 600 cargo planes and has 
200 offices around the world. 
 
TOKYO 00003051  009 OF 010 
 
 
 
With its tie-up with ANA, UPS intends to capture some of 
distribution demand from Japanese automobile and electronic 
manufacturers. ANA currently has only six cargo planes. However, ANA 
characterizes air freight transportation as its key business area 
over the long term. It views that the tie-up with UPS would enable 
it to flexibly increase flights, when the economy picks up to boost 
air cargo volume. 
 
According to the International Air Transport Association (IATA), the 
global cargo transportation volume in September dropped 7.7 PERCENT 
from the same month in the preceding year, registering a 
year-on-year drop for the fourth consecutive month starting in June. 
The margin of the decline in September was the largest since 2001, 
when the terrorist attacks on the U.S. took place. A decline in the 
air cargo volume is particularly visible in the Asia-Pacific 
region. 
 
(8) U.S. consulate general visits Obama City to inspect Obama fever, 
meets mayor, support group for U.S. presidential candidate Barack 
Obama 
 
FUKUI SHIMBUN (Page 1) (Full) 
October 29, 2008 
 
U.S. Consul General at Osaka-Kobe Edward Dong paid a courtesy call 
to Obama City's Mayor Koji Matsuzaki at the city hall on Oct. 28, 
just one week before the U.S. presidential election. 
 
The U.S. Consulate General in Osaka-Kobe covers 17 prefectures in 
the Hokuriku, Kinki, Shikoku, and Chugoku regions. That day, after 
visiting the Maritime Self-Defense Force base in Maizuru City, Kyoto 
Prefecture, Dong visited Obama City, where U.S. Democratic 
presidential candidate Barack Obama is a hot topic of conversations 
among its residents. 
 
Matsuzaki told Dong: 
 
"The world is paying attention to our city because its name is also 
Obama. We would like to take advantage of this to boost tourism and 
other industries. So, we want Mr. Obama to win the election." 
 
Dong said in Japanese with a smile: "Whichever wins, there will be 
no change in U.S.-Japan relations." 
 
Asked by reporters about the local population's growing attention to 
the U.S presidential race, Dong said: 
 
"Since the United States has a great impact on the world, I am not 
surprised that the residents in Obama City are highly interested in 
the election. It is only natural for the presidential race to help 
promote tourism in Obama City." 
 
Asked about the possibility of Obama visiting Obama City, Dong said: 
"I have no idea." 
 
After the meeting, Matsuzaki presented a pair of Wakasa-lacquered 
chopsticks to Dong. Later in the day, Dong also met Secretary 
General Fujiwara of a group of local citizens cheering Obama on its 
own. Fujiwara told Dong that there are now more American tourists to 
Obama City. 
 
 
TOKYO 00003051  010 OF 010 
 
 
SCHIEFFER