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P 060132Z NOV 08
FM AMEMBASSY TOKYO
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RUEHUL/AMEMBASSY SEOUL 2215
RUCNDT/USMISSION USUN NEW YORK 2419

UNCLAS SECTION 01 OF 10 TOKYO 003088 
 
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 11/06/08 
 
Index: 
 
Reactions to Obama victory: 
1) Prime Minister Aso congratulates President-elect Obama and vows 
to strengthen the alliance  (Nikkei) 
2) U.S.-Japan alliance to be tested under the Obama presidency 
(Mainichi) 
3) Japanese business circles expect to see leadership asserted by 
the new U.S. president  (Yomiuri) 
4) Obama administration expected to keep the status quo in trade 
policy toward Japan  (Yomiuri) 
5) Japan worried that Obama administration might place more emphasis 
on China at expense of Japan  (Yomiuri) 
6) Democratic Party of Japan (DPJ) sees Obama win as a tailwind for 
its own drive to become the next administration  (Mainichi) 
7) LDP anxious to see a summit meeting with Obama as soon as 
possible  (Nikkei) 
8) Japan at the upcoming Financial Summit wants to show leadership, 
while cooperating with the United States  (Sankei) 
9) Aso-Bush meeting on the 14th  (Mainichi) 
 
Defense and security affairs: 
10) Upper House committee questions SDF units on Afghan assistance 
(Mainichi) 
11) DPJ willing to see bill extending the Indian Ocean refueling 
adopted in return for the summoning of former ASDF chief Tamogami to 
the Diet as a witness  (Mainichi) 
12) Tamogami to be summoned to testify in the Diet as early as next 
week  (Tokyo Shimbun) 
13) Double punch for the Defense Ministry: Tamogami fired for 
opposing government position and former defense vice minister 
sentenced for corruption  (Yomiuri) 
14) Some members of the ruling camp are incensed by Tamogami 
receiving lucrative pension (Mainichi) 
 
Diet affairs: 
15) Ruling camp seems to have no strategy for the last half of the 
current Diet session  (Mainichi) 
16) Important bill to strengthen financial system to pass the Lower 
House today  (Mainichi) 
 
Articles: 
 
1) Prime Minister Aso: I will maintain Japan-U.S. relations 
 
NKKEI (Page 1) (Full) 
November 6, 2008 
 
With the election of Barack Obama elected as president of the United 
States, Prime Minister Taro Aso stated yesterday: "It is most 
important for me to maintain with the new U.S. president the 
bilateral relationship between Japan and the United States that has 
been fostered for over 50 years." 
 
When asked about the possibility of a meeting with President-elect 
Obama, Aso said: 
 
"I don't think we have to meet immediately. President George W. Bush 
will be in office until Jan. 20, 2009. I think it will be possible 
for me to meet (Obama) after the new president is inaugurated." 
 
Aso released yesterday a statement that wrote: 
 
TOKYO 00003088  002 OF 010 
 
 
 
"Working together with President-elect Obama, I would like to make 
every effort to strengthen the Japan-U.S. alliance and to resolve 
such various challenges the international community faces when 
addressing issues such as the international economy, terrorism and 
the global environment." 
 
2) Japan-U.S. alliance to be tested; Possibility of Japan being 
asked to provide more assistance to fight the war on terror, as 
well 
 
MAINICHI (Page 3) (Abridged) 
November 6, 2008 
 
With the election of Barack Obama as U.S. president, Prime Minister 
Aso issued a statement that "the Japan-U.S. alliance is the 
cornerstone of Japan's diplomacy." The Japanese government, which 
has no direct channels to Mr. Obama, aims to construct a 
relationship with him based on the alliance, but the view is 
spreading that Japan will be asked to provide additional 
contributions on the security front, centered on the war on terror 
in Afghanistan. It seems likely that Japan will be tested as to how 
well it can line up with the international cooperation line that Mr. 
Obama has been espousing. 
 
The Prime Minister in his statement yesterday stressed: "Japan and 
the U.S. share values of freedom, democracy, respect for human 
rights, and the advancement of the market economy."  He also stated: 
"The Japan-U.S. alliance is the cornerstone of Japan's diplomacy and 
the foundation of peace and stability of the Asia-Pacific region." 
 
His reaffirmation of those principles reflect concern that the Obama 
administration could take a stance of placing emphasis on China in 
its Asia policy, and this could lead to the relative decline of 
Japan's ability to influence the U.S. Chief Cabinet Secretary 
Kawamura tried to wipe away such concerns in his news conference on 
the 5th, but for the U.S. government, relations with China have 
undeniably become increasingly important. 
 
In specific policy terms, Mr. Obama has clearly taken a policy 
stance of shifting the battle line in the war of terror to 
Afghanistan, so there is a possibility that Japan may be asked for 
new assistance measures in addition to continuing the refueling 
operation in the Indian Ocean. As each participating country 
increases their troop presence in Afghanistan, President Bush, too, 
has quietly sounded out Japan about dispatching Ground Self-Defense 
Force helicopters to mainland Afghanistan. The government probed 
that possibility by sending a survey team to the local area in June, 
but the judgment was that "it would be difficult due to the 
extremely bad public security." The situation as it stands it that 
Japan "lacks policy choices," according to a senior official in the 
Defense Ministry. In case Japan is asked to provide additional 
assistance, it is conceivable that Japan-U.S. relations could become 
awkward. 
 
On North Korea policy, Mr. Obama has referred to the possibility of 
direct dialogue with that country, and he even released a statement 
of not ruling out a military option in dealing with the threat. A 
senior Foreign Ministry official said, "It is unclear whether a hard 
or flexible line will emerge." 
 
3) President-elect Obama: Business circles pin hopes on his 
 
TOKYO 00003088  003 OF 010 
 
 
leadership 
 
YOMIURI (Page 10) (Full) 
November 6, 2008 
 
Following Barack Obama's victory in the U.S. presidential election, 
many Japanese business leaders and market insiders expressed 
expectations for his ability to tackle the financial crisis and help 
stabilize the global economy. 
 
Japan Business Federation (Nippon Keidanren) Chairman Fujio Mitarai 
told reporters, "I want Mr. Obama to display leadership in swiftly 
resolving economic and financial challenges." Chairman Tadashi 
Okamura of the Japan Chamber of Commerce and Industry released a 
comment, which went, "I hope the president-elect will participate in 
the financial summit on November 15 and take the initiative in the 
creation of a framework for preventing a global recession." 
 
Among market insiders, Takahide Kiuchi at the Nomura Securities 
Financial and Economic Research Center took the view: "Mr. Obama is 
positive about using public money in dealing with the financial 
crisis, albeit conditionally. This would raise expectations for his 
financial and economic countermeasures in the U.S., leading to a 
rise in stock prices and a lower yen and stronger dollar." 
 
Others, however, voiced concern about unstable movements in yen and 
dollar exchange rates with Masaki Fukui at Mizuho Corporate Bank 
saying, "If U.S. fiscal deficit worsens following increased public 
spending and the economy deteriorates further, the trend of moving 
away from the dollar will accelerate over the mid- to long term." 
 
The prevailing view is that once Obama administration is launched, 
the U.S. would switch to a positive approach to taking measures to 
address global warming. Chairman Hiromasa Yonekura of the Japan 
Chemical Industry Association noted, "I hope Mr. Obama will play a 
leading role in promoting a substantial cut in greenhouse gas 
emissions." 
 
4) U.S. trade policy with Japan likely to be maintained 
 
YOMIURI (Page 11) (Full) 
November 6, 2008 
 
The Japanese government is increasingly convinced that there will be 
no major change in Japan-U.S. economic relations, such as trade 
policy and cooperation on the financial crisis, under Obama. 
 
Democratic administrations have inclined toward protectionism with 
consideration given to trade unions, their support base. Bilateral 
trade friction was fierce during the Clinton administration. 
However, now that Japan's leading automakers are creating jobs at 
their expanded local operation bases, few are concerned about a 
possible reemergence of trade friction. 
 
Obama has indicated a stance of taking a second look at the trade 
policy promoted by the Bush administration, criticizing the North 
American Free Trade Agreement (NAFTA) as lacking a clause for 
protecting employment. Some domestic observers are concerned that if 
the employment issue becomes serious due to a recession, the U.S. 
would opt for protectionism, as one senior official of the Ministry 
of Economy, Trade and Industry noted. 
 
 
TOKYO 00003088  004 OF 010 
 
 
Japan, the U.S. and European countries are strengthening cooperation 
in dealing with the financial crisis. One senior Finance Ministry 
official projected that there would be no major policy change, 
noting, "Though there is a possibility of revisions to financial 
regulations, compared with the time during the Bush administration, 
they would be made with cooperation." Some, however, believe that 
former Treasury Secretary Summers could be brought back. Summers 
once strongly urged Japan to expand domestic demand and dispose of 
bad loans held by financial institutions. There is lingering concern 
that the U.S. might strengthen pressure on Japan on the 
macroeconomic policy front as well. 
 
5) Obama may shift emphasis toward China; Some concerned about weak 
ties between Japan and U.S. Democratic Party 
 
YOMIURI (Page 2) (Full) 
November 6, 2008 
 
In the wake of Democratic Senator Barack Obama's victory in the U.S. 
presidential election, the government, while closely monitoring his 
policy toward Japan, intends to strive to rebuild the kind of 
relationship with the United States that was referred to as the 
"golden age" under the administration of Republican President George 
¶W. Bush. 
 
U.S. Embassy Tokyo Public Affairs Minister-Counselor Ronald Post 
told the press corps in Tokyo yesterday: "The perception among 
American leaders is that U.S.-Japan relations are important. The 
change of administration will have no impact on that." But chances 
are high that President-elect Obama, who advocates change, will 
shift the policy focus held by the Bush administration. The 
Democratic Clinton administration (in the 1990s) tilted toward 
China. Many observers think that Obama, too, will shift policy 
weight toward China, with a senior Foreign Ministry official saying: 
"Successive presidents tended to totally repudiate the stances of 
their predecessors." LDP Secretary General Hosoda noted: "He does 
not know Japan very well." Some are concerned about weak connections 
between the U.S. Democratic Party and Japanese political circles. 
 
However, one senior Foreign Ministry official rebutted such views, 
saying: "America's Asia diplomacy will continue to be based on the 
alliance with Japan." That view comes from what Prime Minister Aso 
stated yesterday: "Japan and the United States share such values as 
freedom, democracy, basic human rights, and the promotion of the 
market economy." Another official source said: "In diplomacy, first 
impressions are important. If Japanese politics continues to remain 
in turmoil after Obama is sworn in as President next January, his 
eyes would turn to China." Some have also indicated that Obama's 
diplomacy would have an impact on the divided Diet. Immediately 
after taking office, the new President will have to face scores of 
challenges, including assistance to Afghanistan, the North Korean 
issue, and the realignment of U.S. forces. 
 
LDP Research Commission Chairman Taku Yamasaki predicted: "The 
United States will urge Japan to join security operations in 
Afghanistan, in addition to the Maritime Self-Defense Force's 
refueling mission in the Indian Ocean." Some are alarmed at possible 
discord over the North Korean abduction issue. 
 
6) With Obama victory in U.S. presidential election, DPJ expects 
tailwind to grab power 
 
 
TOKYO 00003088  005 OF 010 
 
 
MAINICHI (Page 5) (Full) 
November 6, 2008 
 
With the victory of Democratic Senator Barack Obama in the U.S. 
presidential election, the Democratic Party will return to power 
after a lapse of eight years. This election has already affected the 
Japanese political world, in which the ruling and opposition camps 
have continued horse-trading over the timing for the dissolution of 
the House of Representatives for a snap election. The Democratic 
Party of Japan (DPJ) defines the victory of Obama, who emphasized 
the need for change in the campaign, as a tailwind for the party to 
grab political power. In contrast, some ruling coalition members 
have voiced apprehension about its impact on the next Lower House 
election, with one remarking: "We may face a hard battle." Another 
said: "The government now finds it more difficult to dissolve the 
Diet." 
 
In a joint meeting of senior DPJ Diet Affairs Committee members in 
front of the posters of Obama and President Ichiro Ozawa, Diet 
Affairs Committee Chairman Kenji Yamaoka made this remark: "The 
appearance of the first black president on the stage marks a 
significant change that was inconceivable in U.S. history. Major 
force is also generating in Japan to topple the administration of 
the Liberal Democratic Party, which has lasted for the 60-year 
postwar period." Secretary General Yukio Hatoyama also expressed his 
expectations speaking before reporters: "Japanese people must be 
also seeking change in Japan." 
 
In the ruling coalition, many members appeared calm when asked for 
their views about whether Obama's victory will favorably work for 
the DPJ, with New Komeito President Akihiro Ota saying: "That is 
unrelated." But Hidehisa Otsuji, chairman of the LDP caucus in the 
House of Councillors told reporters in the Diet Building: "American 
people are seeking change because they are having a hard time. The 
same is true for Japanese people," adding: "The next election will 
undoubtedly be hard for the LDP." 
 
Former Senior Vice Foreign Minister Ichita Yamamoto also commented 
in an interview with the Mainichi Shimbun: "It is impossible for the 
government to dissolve the Diet under the current situation. The 
change of government in the U.S. will inevitably influence Japanese 
voters' state of mind." 
 
Even so, not all DPJ members necessarily welcomed the U.S. election 
outcome. Vice President Seiji Maehara pointed out: "The world 
economy next year is expected to become worse than this year. It is 
important for us to look at the situation from the medium- to 
long-term point of view, focusing on how Obama will be evaluated at 
the time of the dissolution of the Lower House and the general 
election." 
 
Japanese Communist Party President Kazuo Shii issued this comment: 
"The policies put forth by Obama include increasing U.S. troops in 
the Afghan war and asking U.S. allies to offer cooperation in the 
war. We will carefully watch how his reform policies will take 
shape." 
 
7) LDP secretary general: Japan-U.S. summit should be held soon 
 
NIKKEI (Page 2) (Full) 
November 6, 2008 
 
 
TOKYO 00003088  006 OF 010 
 
 
A series of statements yesterday came out of senior officials from 
the ruling and opposition camps on U.S. Sen. Barack Obama's victory 
in the presidential election. 
 
Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda 
stated: "It is said that (President-elect Obama) does not know Japan 
well. I hope he will deepen his understanding of Japan so that 
Japan-U.S. relations will be further improved." He then sought an 
early Japan-U.S. summit, saying: "I would like to (Mr. Obama) to 
meet with Prime Minister Taro Aso as early as possible." 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama 
said: "There should be political change in Japan, as well. I hope 
the Japanese people think Japan also needs a change." He expressed 
his hopes in his remarks that the U.S. Democratic Party's victory 
would become a driving force for the DPJ. 
 
8) Challenge for Japan is cooperation with U.S.: How will it take 
lead in financial summit? 
 
SANKEI (Page 9) (Abridged Slightly) 
November 6, 2008 
 
Democratic Senator Barack Obama has assumed the mantle of U.S. 
president-elect. A key diplomatic agenda item for the Japanese 
government is policy cooperation with the U.S. in dealing the 
financial crisis. In its Asia diplomacy, the U.S. is devoting its 
energy to expanding relations with China. Japan's presence is 
increasingly waning. All the more for that reason, it is imperative 
for it to display leadership at the emergency financial summit to be 
held in Washington on November 15, joined by leaders of 20 
industrialized countries and rapidly emerging countries. 
 
The U.S. has passed the Emergency Financial Stabilization Act to 
inject public money worth up to 700 billion dollars. Since the 
present administration conferred on the matter with Obama in the 
preparatory stage, Obama is expected to take specific financial 
measures based on that law. As such, one senior Finance Ministry 
official took the view that there would be no major change in U.S. 
financial measures under Obama. 
 
Japan at the financial summit wants to contribute to efforts to come 
up with measures to address the financial crisis, using its 
experience in the financial crisis of 1997, when Yamaichi Securities 
and Hokkaido Takushoku Bank went under. Prime Minister Taro Aso is 
expected to propose: (1) international cooperation on supervision 
and control of financial institutions; (2) regulation on 
credit-rating agencies; and (3) easing the current value accounting 
system. State Minister for Fiscal and Financial Policy Shoichi 
Nakagawa will also attend the financial summit. Japan as the host 
nation of the G-8 is expected to display leadership at the upcoming 
summit, which is to be joined by emerging countries, such as China 
and India, by coming up with a strong message for the stabilization 
of the financial market. 
 
Some government officials take the view that election pledges and 
the actual management of administration are different. When it comes 
to implementing specific measures, there would be a great change, 
depending on the lineup of the new administration. 
 
9) Japan-U.S. summit set for Nov. 14; Coordination to set up meeting 
with President-elect Obama 
 
TOKYO 00003088  007 OF 010 
 
 
 
MAINICHI (Page 3) (Full) 
November 6, 2008 
 
It was firmed up on Nov. 5 that, prior to the emergency financial 
summit to be held in Washington, Prime Minister Taro Aso will meet 
with President Bush on the 14th. The Prime Minister has expressed 
his desire to meet with President-elect Obama on the same day, and 
coordination is now going on. 
 
10) Upper House committee summons two organizations for questioning 
about Afghan aid 
 
MAINICHI (Page 2) (Full) 
November 6, 2008 
 
The House of Councillors' Foreign Affairs and Defense Committee 
yesterday summoned members from two organizations that have been 
engaged in reconstruction assistance in Afghanistan to ask about the 
security situation there. The Upper House committee is now 
deliberating on a bill amending the new Antiterrorism Special 
Measures Law designed to extend the Maritime Self-Defense Force's 
refueling operation in the Indian Ocean. 
 
Tetsu Nakamura of the Peshawar-kai, a non-governmental organization, 
pointed out: "Air strikes by foreign forces have accelerated 
deterioration of the security situation." Asked about his view on 
whether Japan should dispatch Self-Defense Forces personnel to 
Afghanistan, Nakamura stressed: "There would be no good and a lot of 
harm." 
 
Juro Chikaraishi, public relations officer of the Japan 
International Cooperation Agency, said: "(If SDF troops are 
dispatched to Afghanistan), they will not be welcomed." 
 
11) DPJ to vote refueling bill on condition of summoning ex-ASDF 
chief to Diet for testimony 
 
MAINICHI (Page 5) (Full) 
November 6, 2008 
 
The Democratic Party of Japan (DPJ) decided yesterday to agree to 
take a vote on a bill amending the New Antiterrorism Special 
Measures Law to extend the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean on the condition of summoning Toshio 
Tamogami to the Diet for testimony in a meeting of the House of 
Councillors Foreign Affairs and Defense Committee. Tamogami was 
dismissed as Air Self-Defense Force chief of staff over a 
controversial essay contradictory to the government's view on 
Japan's wartime history. The ruling coalition has also decided to 
approve the DPJ proposal to summon Tamogami to the Diet, so the 
amendment bill is expected to clear the Diet in mid-November. 
 
In order to swiftly submit bills related to a second extra budget 
for fiscal 2008 to the Diet, the government has judged it necessary 
to enact the refueling bill at an early date without delaying 
deliberations. Senior members of the DPJ caucus in the Upper House 
intend to take a vote today on the summoning of Tamogami to the Diet 
and summon him as early as Nov. 11. 
 
The ruling parties will oppose the summoning, but if it is approved, 
they will accept the decision. 
 
TOKYO 00003088  008 OF 010 
 
 
 
Once the opposition side votes down the refueling bill in the Upper 
House, the ruling camp will take an override vote in the House of 
Representatives to reinstate the bill in the current Diet session. 
 
12) Ex-ASDF chief of staff likely to be summoned next week; DPJ 
bases vote on refueling legislation on his summoning 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
November 6, 2008 
 
It has become likely that former Air Self-Defense Force Chief of 
Staff Toshio Tamogami, who has been dismissed from the post due to 
his essay justifying Japan's war of aggression, will be summoned to 
the House of Councillors Foreign Affairs and Defense Committee as 
early as next week. 
 
The major opposition Democratic Party of Japan decided yesterday to 
base a vote on a bill amending the New Antiterrorism Special 
Measures Law to continue the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean on the summoning of Tamogami. If the 
Upper House decides on Tamogami's testimony, the ruling camp, too, 
now seems likely to follow the decision. 
 
As a general rule, the summoning of a person to the Diet requires a 
unanimous decision. Even if the ruling parties oppose summoning 
Tamogami, the DPJ intends to decide on the matter by the rule of 
majority. The ruling bloc plans to oppose the summoning, insisting 
that priority be given to a vote on the refueling legislation. But 
an LDP Diet affairs officer said: "We don't intend to hide Mr. 
Tamogami or defend him. If the summoning is decided by the rule of 
majority, that cannot be helped." 
 
The DPJ's policy course has been decided through talks between Upper 
House Caucus Chairman Azuma Koshiishi and Foreign Affairs and 
Defense Committee principal director Keiichiro Asao and others. 
Tamogami is likely to be summoned either on Nov. 11 or 13 when the 
Upper House Foreign Affairs and Defense Committee regularly meets. 
 
Given Tamogami's positive stance about responding to the call for 
his Diet testimony, the DPJ is alarmed, with a Diet affairs officer 
saying, "He must not be used for propaganda." Asking for the 
attendance of Defense Minister Yasukazu Hamada, Chief Cabinet 
Secretary Takeo Kawamura, and Foreign Minister Hirofumi Nakasone, 
the DPJ plans to grill the government over the questions of 
Tamogami's retirement allowance and of oversight responsibility. 
 
13) Defense Ministry gets a double punch 
 
YOMIURI (Page 4) (Abridged slightly) 
November 6, 2008 
 
The dismissal of Toshio Tamogami as Air Self-Defense Force chief of 
staff over his essay on the Showa War that was at variance with the 
government's view continued to haunt the government yesterday. 
Contrary to the government's intent, there are no signs of an early 
end to the scandal. 
 
In a ruling bloc executive meeting yesterday, New Komeito Secretary 
General Kitagawa raised a question about the Defense Ministry's 
decision to retire Tamogami under the age limit, saying: "Is it 
appropriate to give him a hefty retirement allowance? Shouldn't he 
 
TOKYO 00003088  009 OF 010 
 
 
receive a dishonorable discharge?" LDP Diet Affairs Committee 
Chairman Tadamori Oshima also expressed a similar view. 
 
Also yesterday, the Tokyo District Court sentenced former 
Administrative Vice-Defense Minister Takemasa Moriya, who had been 
indicted in connection with a bribery case over defense equipment 
procurement, to a prison term. In handing down the decision, the 
presiding judge said: "It's astonishing that the top defense 
bureaucrat had such a weak awareness of public standards." 
 
Hit by two major scandals involving top defense officers, one in 
uniform and the other civilian, Defense Minister Yasukazu Hamada 
said to the press corps in a serious tone: "It is a fact that the 
public has feelings of distrust in the ministry. I will do my utmost 
to revamp the system." 
 
14) Objections emerging from senior ruling members to payment of 60 
million yen in retirement allowance to Tamogami 
 
MAINICHI (Page 5) (Full) 
November 6, 2008 
 
Objections emerged yesterday from among senior ruling party members 
to the Defense Ministry's approval of the retirement of Toshio 
Tamogami, ex-Air Self-Defense Force chief of staff, dated Nov. 3. 
New Komeito Secretary General Kazuo Kitagawa said in a meeting of 
the ruling parties' secretary generals and other senior members: "Is 
it alright to allow him to receive the retirement allowance? Is it 
proper for him not to be dismissed in disgrace?" 
 
Liberal Democratic Party Diet Affairs Committee Chairman Tadamori 
Oshima also said in a meeting of the party's Diet Affairs Committee 
chairman and vice chairmen: "The problem of retirement allowance for 
the ex-ASDF chief remains on our mind." The ministry will pay about 
60 million yen in retirement allowance to Tamogami unless he refuses 
to receive it. 
 
15) Ruling camp unable to chart strategy for latter half of Diet 
session 
 
MAINICHI (Page 5) (Full) 
November 6, 2008 
 
The Liberal Democratic Party (LDP) and the New Komeito discussed how 
to manage the latter half of the current Diet session in a meeting 
of their secretaries general and Diet affairs committee chairmen 
yesterday. Following a package of additional economic measures 
adopted recently, they agreed to push ahead with work to compile a 
second supplementary budget for fiscal 2008 to finance such extra 
measures, but they were unable to decide on the timing for 
submitting related bills. Prime Minister Taro Aso has decided to 
forgo the next House of Representatives election originally planned 
for sometime before the end of this year, while the opposition bloc 
has clearly demonstrated a confrontational stance. Under such a 
situation, the government and the ruling camp remain unable to chart 
a strategy for the latter half of the Diet session. 
 
Speaking before reporters in the Diet building yesterday, LDP Diet 
Affairs Committee Chairman Tadamori Oshima said: "The prime minister 
pledged to take such large-scale economic measures. I hope that a 
second extra budget will be compiled after details of the measures 
are closely examined." On the timing for related bills to be 
 
TOKYO 00003088  010 OF 010 
 
 
submitted to the Diet, however, Oshima just said: "Once compilation 
work is started, the timing should naturally come into sight." 
 
The current Diet session will be adjourned on Nov. 30. In order to 
have bills related to a second extra budget enacted, observers see 
it necessary to extend the session to late next January. Given this, 
many ruling party members are cautious about submitting related 
bills to the current Diet session, with a senior New Komeito member 
remarking: "The ongoing session should be closed at the end of this 
month. In December, we should start discussion on budget compilation 
and tax reform." 
 
Uncertainty is also looming over the fate of a bill amending the 
Financial Function Strengthening Law, on which the government and 
the ruling parties have placed importance. The bill is expected to 
clear the Lower House today, but the Democratic Party of Japan (DPJ) 
is poised to seek thorough deliberations, including talks on 
revising the bill in the House of Councillors. It now seems 
difficult to enact the bill by the financial summit on Nov. 15 as 
aimed at by the government and the ruling camp. 
 
The DPJ has prepared a strategy to conduct deliberations on second 
extra budget bills thoroughly, underscoring its confrontational 
stance, and then force the government to dissolve the Lower House 
late this year or early next year. To prevent a dissolution of the 
Lower House in line with the opposition camp's scenario, some ruling 
members have suggested that deliberations on the bills should be 
carried out only in the Lower House in the current Diet session. 
 
16) Financial functions strengthening bill to clear Lower House 
today 
 
MAINICHI (Page 2) (Full) 
November 6, 2008 
 
The House of Representatives Financial Affairs Committee yesterday 
adopted a ruling coalition-submitted revised bill on the Financial 
Functions Strengthening Law by a majority of the ruling Liberal 
Democratic Party (LDP), its coalition partner New Komeito, and the 
Democratic Party of Japan (DPJ), the largest opposition party. The 
bill will enable the government to inject public funds into regional 
financial institutions. The revised bill is expected to clear the 
Lower House today. 
 
In their prior consultations, the ruling coalition and the DPJ 
agreed to include in the revised bill such phrases as that 
management responsibility of financial institutions to which public 
founds would be injected should be made clear. However, since the 
ruling camp refused to accept the DPJ's demand that Diet approval be 
required when public funds are injected into Norinchukin Bank 
(agricultural cooperative bank) and that the ShinGinko Tokyo be 
excluded from the financial institutions subject to injecting public 
funds, the DPJ plans to vote against the revised bill in a Lower 
House plenary session today. 
 
SCHIEFFER