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RUCNDT/USMISSION USUN NEW YORK 2463

UNCLAS SECTION 01 OF 10 TOKYO 003109 
 
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 11/10/08 
 
INDEX: 
 
(1) About 10 years needed for U.S. military realignment in Okinawa: 
U.S. PACOM commander (Asahi) 
 
(2) Guam relocation in 2015 or later (Yomiuri) 
 
(3) New ASDF Chief of Staff Hokazono apologizes for damaging public 
trust (Nikkei) 
 
(4) DPJ to pursue Tamogami essay blunder as "problem of civilian 
control" in summoning him to Diet for testimony (Yomiuri) 
 
(5) Tamogami essay scandal: Additional ASDF members found to have 
sent essays, bringing total to 94 (Nikkei) 
 
(6) Refueling bill likely to pass Diet in a week (Nikkei) 
 
(7) Japanese, Chinese chief delegates to six-party talks agree on 
need to codify nuclear-verification accord (Yomiuri) 
 
(8) Prime minister jumps on bandwagon of Obama popularity (Tokyo 
Shimbun) 
 
(9) DPJ head Ozawa sends letter to U.S. President-elect Obama 
(Asahi) 
 
(10) DPJ President Ozawa criticizes Prime Minister Aso as 
good-for-nothing (Asahi) 
 
(11) DPJ Secretary General Hatoyama calls for Prime Minister Aso's 
resignation (Asahi) 
 
(12) Financial crisis a boost to trading companies: Survive with 
M&As targeting overseas companies (Tokyo Shimbun) 
 
(13) Bidding for imported rice fails with traders avoiding impact of 
tainted rice incident (Mainichi) 
 
(14) Vice Agricultural Minister Ide expects next U.S. administration 
to take even tougher line in beef negotiations, Japan to base 
response of scientific knowledge (Nihon Nogyo Shimbun) 
 
ARTICLES: 
 
(1) About 10 years needed for U.S. military realignment in Okinawa: 
U.S. PACOM commander 
 
ASAHI (Page 2) (Full) 
November 8, 2008 
 
Toshiya Umehara 
 
WASHINGTON-Japan and the United States agreed in 2006 to build an 
alternative facility for the U.S. Marine Corps' Futenma Air Station 
in Okinawa by 2014 and relocate U.S. Marines from Okinawa to Guam in 
that process. However, U.S. Pacific Command (PACOM) Commander 
Keating recently indicated that it would be difficult to do so by 
that year. "Depending on circumstances, it would be difficult to do 
so even by 2015, and it would take another 10 years or so to 
implement the realignment plan," Keating said in a meeting held in 
New York on Nov. 5. The issue of relocating Futenma airfield has 
 
TOKYO 00003109  002 OF 010 
 
 
been at a deadlock. As it stands, some officials have noted that it 
would be difficult to carry out the U.S. military realignment as 
scheduled. However, this is the first time that a U.S. government 
official has formally admitted to a possible delay in the 
realignment schedule. 
 
(2) Guam relocation in 2015 or later 
 
YOMIURI (Page 1) (Full) 
Eve., November 8, 2008 
 
WASHINGTON-Japan and the United States have agreed to move 8,000 
U.S. Marines from Okinawa to Guam by 2014 in the process of 
realigning U.S. forces in Japan. However, this Guam relocation would 
not take place until after 2015, and its cost is also highly likely 
to swell. According to sources, the United States is now certain to 
cut its defense budget for fiscal 2010 (from October 2009) due to 
the current financial crisis in the United States. As it stands, the 
U.S. government deems it difficult to secure the budget to an extent 
that is needed for the Guam relocation to be completed as scheduled, 
the sources said. 
 
The U.S. government has informally transmitted such an outlook to 
the Japanese government. 
 
The relocation of U.S. Marines from Okinawa to Guam is estimated to 
cost a total of 10.27 billion dollars. The Marines' Guam relocation 
is planned to be completed in 2014 along with the relocation of the 
U.S. Marine Corps' Futenma Air Station to a coastal area of Camp 
Schwab in Okinawa Prefecture. In May, however, the U.S. Government 
Accountability Office (GAO) of the U.S. Congress noted that the Guam 
relocation plan was "too optimistic." There was also a view pointing 
out the necessity of infrastructure construction in Guam. 
 
If the planned relocation of Marines from Okinawa to Guam is delayed 
due to circumstances in the United States, it will likely affect 
Futenma relocation that has been falling behind schedule due to 
Japan's own circumstances. 
 
In addition, Japan is to pay 6.09 billion dollars-approximately 60 
PERCENT  of the total cost-in its burden sharing of the Guam 
relocation. In this regard, the United States is even likely to ask 
Japan for an additional burden in its share of the relocation cost. 
 
(3) New ASDF Chief of Staff Hokazono apologizes for damaging public 
trust 
 
NIKKEI (Page 2) (Abridged slightly) 
November 8, 2008 
 
Kenichiro Hokazono, who has become new Air Self-Defense Force chief 
of staff, held his first press conference on the afternoon of July 
¶7. In the session, touching on the assertion of his predecessor, 
Toshio Tamogami, who has been removed from the post due to his essay 
running counter to the government's view, Hokazono said: "Reflecting 
earnestly the fact that the inappropriate act has damaged public 
trust, I offer my deepest apology." 
 
Hokazono also said about Tamogami's essay, "I read it and I felt it 
was inappropriate." Touching on the fact that Tamogami's essay also 
refers to the right to collective self-defense, the new ASDF chief 
criticized it, saying: "It contains some problems in connection with 
 
TOKYO 00003109  003 OF 010 
 
 
the Constitution, and it is inappropriate from a viewpoint of 
civilian control." 
 
Hokazono added that his view on history was the same as the 
government's view. He also explained that although he has 
contributed a paper on integrated operations to the ASDF journal, he 
has not released any essays outside the SDF. 
 
Ahead of the press conference, Defense Minister Yasukazu Hamada 
issued a letter of appointment to Hokazono. Hamada encouraged 
Hokazono, saying, "The environment is severe, but I expect that you 
will fulfill your duties." In taking on the post, Hokazono declared 
that he would abide by the Constitution and laws and would not 
become involved in political activities. Hokazono's post, Defense 
Intelligence Headquarters chief, has been filled by ASDF Deputy 
Chief of Staff Koji Shimohira. 
 
(4) DPJ to pursue Tamogami essay blunder as "problem of civilian 
control" in summoning him to Diet for testimony 
 
YOMIURI (Page 4) (Slightly abridged) 
November 8, 2008 
 
Toshio Tamogami, who was dismissed over his essay contradictory to 
the government's view about Japan's wartime aggression in Asia, will 
appear as an unsworn witness before the House of Councillors Foreign 
Affairs and Defense Committee on Nov. 11. The focus of deliberations 
there is expected to be on whether the Air Self-Defense Force (ASDF) 
was systematically involved in an essay contest in which Tamogami's 
essay won a prize, as well as on future options for civilian 
control. 
 
Total of 94 ASDF officers submitted essays 
 
In his first press conference as ASDF chief of staff, Kenichiro 
Hokasono, the successor to Tamogami, said: "I deeply apologize for 
this problem that undermined public confidence (in the ASDF)." He 
then revealed that a total of 94 ASDF members had submitted essays 
to the contest organized by the Tokyo-based condominium developer 
APA Group. 
 
It has been revealed that the Air Staff Office's Education Division 
had faxed a paper outlining how to enter the competition to SDF 
troops across the nation. A member of the Air Staff Office said: "We 
thought writing an essay would help their training." But it is 
unusual for the office to let its members know about an essay 
contest organized by a private firm. Tamogami reportedly became 
acquainted with APA Group President Toshio Motoya when he commanded 
an ASDF unit at Komatsu base in Ishikawa Prefecture. Focusing on 
this fact, the Democratic Party of Japan intends to question whether 
the ASDF had systematically encouraged applications for the essay 
contest, with one member saying: "It is conceivable that Tamogami, 
reflecting his personal relationship with Motoya, urged members to 
submit essays." 
 
Allowance of retirement criticized 
 
Tamogami verbally conveyed the application of his essay to Kimito 
Nakae, director general of the Defense Ministry's Secretariat, but 
failed to submit a report in violation of a ministry rule. 
 
Defense Minister Hamada yesterday indicated that the ministry will 
 
TOKYO 00003109  004 OF 010 
 
 
consider strengthening the system to check when Self-Defense Forces 
members plan to express opinions in public. The opposition bloc, 
however, has criticized this case as a problem of civilian control 
over ranking SDF officers. The opposition has also lashed out at the 
Defense Ministry for having chosen the option of mandatory 
retirement for Tamogami, which will allow him to receive about 60 
million yen in retirement pay, instead of dismissing him. The 
defense minister hopes to ward off the criticism by letting Tamogami 
return the retirement benefit voluntarily. But many observers expect 
that Tamogami is unlikely to do so. 
 
In 1978, Chairman of the Joint Chiefs of Staff Hiroomi Kurisu was 
dismissed from his post for a controversial remark and agreed to 
retire early. Kurisu said: "Even if Japan were to encounter a 
surprise raid, it might not be able to respond to the attack legally 
in some cases. In such cases, Japan would take extralegal action." 
 
A senior Defense Ministry official, however, commented: "Mr. Kurisu 
spoke of the operation of the SDF, so the problem of civilian 
control was pointed out. In the case of Mr. Tamogami, though, it is 
difficult to fire him, because he just expressed his view about 
Japan's war role. Since he did not voluntarily offer to retire, we 
had to opt for retirement." 
 
Unanimous decision for Tamogami's essay 
 
Five judges examined the essays submitted to the contest while 
covering the names of writers. An APA group member said: "Mr. 
Tamogami's work was unanimously chosen to win first prize," but one 
judge remarked: "I felt Mr. Tamogami's essay was radical in content, 
so I gave it a zero." 
 
(5) Tamogami essay scandal: Additional ASDF members found to have 
sent essays, bringing total to 94 
 
NIKKEI (Page 2) (Abridged slightly) 
November 8, 2008 
 
It was learned yesterday that an additional 16 Air Self-Defense 
Force (ASDF) members had submitted essays to the contest to which 
former ASDF Chief of Staff Toshio Tamogami also sent an essay on 
history that was at variance with the government's view. This brings 
the total to 94 ASDF personnel. Those who are newly found to have 
sent essays are based at rescue teams or other units across Japan. 
They reportedly followed a set of required procedures, such as 
reporting their actions to their superiors. 
 
Kenichiro Hokazono, who became new ASDF Chief of Staff on Nov. 7, 
revealed the information in a press conference. He indicated that 
the Air Support Command and other units were conducting surveys when 
an announcement was made on Nov. 6. The contest collected a total of 
235 essays, of which 40 PERCENT  came from SDF members. 
 
Hokazono also indicated that the ASDF Personnel and Training 
Department director has said that he had informed ASDF troops across 
Japan of the essay contest run by the condominium and hotel 
developer APA Group at his own decision, denying Tamogami's 
involvement. Tamogami in a press conference on Nov. 3 indicated that 
he had introduced the contest to his subordinates, adding that he 
did not coerce them to send essays. 
 
The ASDF Personnel and Training Department faxed messages on how to 
 
TOKYO 00003109  005 OF 010 
 
 
enter the essay contest to units nationwide on May 20. The ASDF has 
not been able to confirm a case in which its chief of staff had 
introduced an essay contest in the past, Hokazono said. General 
affairs officials assisting the ASDF chief of staff had been aware 
of Tamogami's essay before it came to light. 
 
Tamogami wrote in his essay: "It is certainly a false accusation 
that our country was an aggressor nation." He was dismissed from the 
post on Oct. 31 and was allowed to retire from the SDF on Nov. 3. He 
is scheduled to appear before the Upper House Foreign Affairs and 
Defense Committee as an unsworn witness on Nov. 11. 
 
(6) Refueling bill likely to pass Diet in a week 
 
NIKKEI (Page 2) (Abridged) 
November 9, 2008 
 
Early in the week, the Diet will enter the final phase of 
deliberations between the ruling and opposition camps on a 
government-introduced bill extending the Maritime Self-Defense 
Force's refueling mission in the Indian Ocean. The leading 
opposition Democratic Party of Japan (Minshuto), which holds a 
majority of the seats in the House of Councillors, will pursue the 
issue of former Air Self-Defense Force Chief of Staff Toshio 
Tamogami's controversial essay that ran counter to the government's 
view. However, the DPJ will not delay taking a vote on the bill. The 
bill is therefore expected to clear the Diet within a week. 
 
The House of Councillors Foreign Affairs and Defense Committee will 
summon Tamogami on the morning of Nov. 11 as an unsworn witness, 
with relevant cabinet ministers attending. The DPJ will pursue the 
government's responsibility for the appointment of Tamogami to the 
post of ASDF chief of staff and the propriety of his taking ordinary 
retirement. 
 
Meanwhile, the DPJ, after the summons of Tamogami, will respond to 
set a date for taking a vote on the bill. The DPJ is wary of 
criticism that could come from the public in case the party delays 
deliberations. In addition, the DPJ is also concerned that the 
Tamogami issue may be put to an end after the refueling bill 
deliberations. The DPJ will therefore handle these two matters 
separately. "The refueling bill is now highly likely to pass the 
Diet by Nov. 14," Masashi Waki, vice chair of the ruling Liberal 
Democratic Party's Diet Affairs Committee in the House of 
Councillors, said in an executive meeting of the committee on Nov. 
¶7. 
 
(7) Japanese, Chinese chief delegates to six-party talks agree on 
need to codify nuclear-verification accord 
 
YOMIURI (Page 2) (Full) 
November 8, 2008 
 
Foreign Ministry Asian and Oceanian Affairs Bureau Director General 
Akitaka Saiki and Chinese Vice Minister Wu Dawei, both of whom 
represent their respective countries' missions to the six-party 
talks on the North Korean nuclear issue, held a meeting at the 
Chinese Foreign Ministry in Beijing on Nov. 7. They agreed on the 
need to codify the contents of an agreement on nuclear verification 
procedures in written form. 
 
Saiki explained that Japan will not join the program of economic and 
 
TOKYO 00003109  006 OF 010 
 
 
energy aid under the six-party-talk framework in exchange for North 
Korea's denuclearization unless progress is made on the issue of 
North Korea's past abductions of Japanese nationals. Wu said: "The 
aid program is an important issue in the process of the six-party 
talks." 
 
After the meeting, Saiki told reporters: "There are difficult points 
in putting an accord into writing. It is important for the countries 
to cooperate with each other." Asked about the timing for the next 
six-party session, Saiki replied: "The Chinese side said that no 
specific timetable has been set yet." 
 
(8) Prime minister jumps on bandwagon of Obama popularity 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
November 8, 2008 
 
By Akihiro Ikushima 
 
Prime Minister Taro Aso is showing eagerness to meet with U.S. 
President-elect Barack Obama at an early date. Building a 
relationship of trust between the two leaders will be essential for 
strengthening the Japan-U.S. alliance. Besides such an ostensible 
reason, the prime minister apparently wants to use the occasion to 
boost his cabinet's support ratings, which have been dropping. 
 
Prime Minister Aso received a telephone call from President-elect 
Obama shortly after seven o'clock on the morning of July 7 at the 
Prime Minister's Office (Kantei). Aso congratulated Obama in 
English, saying: "Congratulations! I have become the prime minister 
of Japan on my fourth attempt but you have won the presidency on 
your first bid." 
 
The telephone conversation ended in less than ten minutes. The prime 
minister requested close cooperation, citing such issues as the 
financial crisis, the war on terror, and the North Korean issue. The 
prime minister also directly expressed his eagerness to meet Obama, 
saying, "I earnestly want to meet with you." 
 
Aides to the prime minister have been looking for ways for the prime 
minister to meet with President-elect Obama by using such occasions 
as the emergency summit (financial summit) to be held in Washington 
on Nov. 15 and the Asia-Pacific Economic Cooperation (APEC) forum to 
be held in Peru starting on Nov. 22. 
 
Some government officials think that from a commonsense viewpoint, 
the prime minister should meet with Obama after he is sworn in on 
January 20. But the prime minister has judged that in order to 
address pressing issues, such as the financial crisis, the two 
leaders should meet with each other at an early date. 
 
A Kantei source also expressed hope that the meeting will help buoy 
up the Aso administration, saying: "A handshake with Mr. Obama would 
result in immeasurable advertising effects." The move is also aimed 
to counter the major opposition Democratic Party of Japan, which is 
trying to enliven the mood of a change of government by taking 
advantage of the victory of Obama, who advocates change. 
 
However, President-elect Obama will be extremely busy making 
preparations for taking over the helm of government. Chief Cabinet 
Secretary Takeo Kawamura in a press briefing still showed confidence 
in realizing an Aso-Obama meeting, saying: "The reaction on that 
 
TOKYO 00003109  007 OF 010 
 
 
side was not dismissive, and I have an impression that (an Aso-Obama 
meeting) depends on coordination." Whether a concrete timetable can 
be worked out remains unclear. 
 
(9) DPJ head Ozawa sends letter to U.S. President-elect Obama 
 
ASAHI (Page 4) (Full) 
November 8, 2008 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama 
revealed in a press conference on Nov. 7 that DPJ President Ichiro 
Ozawa had sent on Nov. 6 a letter to U.S. President-elect Barack 
Obama. According to Hatoyama, Ozawa expressed in the letter his 
determination to take over the reins of government, saying: "Japan's 
DPJ want to realize political change in a general election, which 
will hopefully be held soon. I believe that we can bring about 
change in Japan, as well." 
 
In the letter Ozawa offered his congratulations for Obama's victory 
in the presidential election, saying: 
 
"I respect that you have attained your aim after overcoming various 
difficulties. I would like to work with you for peace and stability 
in the Asia-Pacific region. I am looking forward to seeing you 
soon." 
 
(10) DPJ President Ozawa criticizes Prime Minister Aso as 
good-for-nothing 
 
ASAHI (Page 4) (Full) 
November 8, 2008 
 
During a meeting on Nov. 7 in Sapporo City, Democratic Party of 
Japan (DPJ) President Ichiro Ozawa stated: 
 
"Mr. Aso is a good-for-nothing. The fact is that he will not be able 
to surmount the difficulties he will encounter during the current 
Diet session. There is a strong possibility that he will have to 
dissolve the House of Representatives before the next regular 
session for a snap election, no matter how he tries to avoid it." 
 
Ozawa then pointed out: 
 
"Even if a second supplementary (budget) is compiled this month 
after much debate, it would not be submitted to the Diet until next 
month. Because some kind of special account budget would have to be 
used (to secure resources), it will be necessary to come up with 
budget-related bills. Anybody with even a little knowledge would 
realize that it will be difficult to compile a state budget (for 
fiscal 2009) no matter how earnestly one tries. The government, 
which has tried to avoid an election, repeatedly saying that the 
priority is on the economy, will find itself in an impossible 
situation." 
 
He then said: 
 
"The economic situation is deteriorating. The view that a 
government, which obtains the public support in an election, should 
implement a drastic policy will spread among the public. The prime 
minister will have to dissolve the Lower House and call a general 
election no matter he tries to pass the buck." 
 
 
TOKYO 00003109  008 OF 010 
 
 
(11) DPJ Secretary General Hatoyama calls for Prime Minister Aso's 
resignation 
 
ASAHI (Page 4) (Full) 
November 8, 2008 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama, in 
a press conference on Nov. 7, stated: "I often see too much 
fuzziness in Prime Minister Taro Aso's remarks. He does not at all 
understand the significance of his remarks. The public is perplexed 
at them." He then said: "I would like him to step down from his post 
as quickly as possible." 
 
Hatoyama criticized Aso's remarks one after the other. Regarding 
Aso's remarks on a consumption tax hike, Hatoyama said: 
 
"Even though he had said the consumption tax would be raised in 
three years, the said a tax hike should be implemented after 
economic recovery. Who said that the economy would recover in three 
years? His remarks are inconsistent." 
 
Referring to Aso's remarks on a fixed cash benefit payments plan, 
Hatoyama said: 
 
"He initially said that cash incentive would be provided to all 
households across the nation. But immediately after he made the 
remark, the view is being floated that income limitation should be 
set. The prime minister's remarks are all over the place." 
 
Hatoyama also commented on a second additional budget for fiscal 
2008: "Since the prime minister announced an economic stimulus 
package in a high-handed manner, he should submit it to the ongoing 
extraordinary Diet session." 
 
(12) Financial crisis a boost to trading companies: Survive with 
M&As targeting overseas companies 
 
TOKYO SHIMBUN (Top Play) (Full) 
November 9, 2008 
 
The total value of Japanese companies' M&As involving foreign 
companies in the January-October period reached a record high of 
approximately 6.67 trillion yen, 3.7 times larger than the amount of 
the same period in the preceding year, according to a survey 
conducted by Recof, an M&A consulting company, as of November 8. 
 
All-time high of 6.6 trillion yen marked in January-October period 
 
While European and U.S. investment funds, which have been the 
leading players in corporate acquisitions, are now cutting back on 
their operations due to the financial crisis, Japanese companies are 
stepping up their moves to purchase foreign companies, receiving a 
boost from the global stock plunges and the strong yen. 
 
Domestic manufacturers are suffering from the decline in foreign 
markets. However, leading trading houses, which are profiting from 
the sharp rise in resources prices, see the present situation as a 
good opportunity, as Marubeni Corporation President Teruo Asada 
noted. Financial institutions and food manufacturers, which have 
been lagging behind their competitors in Europe and the U.S., will 
likely strengthen their corporate acquisition strategies. 
 
 
TOKYO 00003109  009 OF 010 
 
 
According to Recof, the record of M&As involving foreign companies 
in annual terms was registered in 2006 with about 8.61 trillion yen. 
However, the figure achieved as of the end of October this year has 
already topped the figures from the comparable period in 2006. 
 
The largest M&A this year was the investment of about 900 billion 
yen into Morgan Stanley, a leading U.S. securities firm, by 
Mitsubishi-UFJ Financial Group, followed by Takeda Pharmaceutical 
Company's investment of approximately 890 billion yen into 
Millennium Pharmaceuticals, a U.S. biotechnology-based drug 
manufacturer. 
 
Foreign companies are finding it difficult to procure funds. On the 
other hand, Sumitomo Corp. can reportedly use funds totaling 
approximately 1 trillion yen drawing from its current bank deposits 
and bank loans. Vice President Noriaki Shimazaki made a bullish 
remark, "We still have more room for investment." 
 
In the face of the financial crisis, the major aim of corporate 
acquisition has shifted from money games for investment's sake to 
surviving the harsh business environment. Mitsui Bussan Vice 
President Junichi Matsumoto said, "The role of Japanese trading 
companies, which have real work, will increase." 
 
Anticipating contraction of the domestic market, food manufacturers 
have successively bought foreign companies. Suntory has set up a 
section exclusively dealing with M&As. As the first M&A, the company 
has decided to purchase a leading New Zealand soft drink company for 
about 75 billion yen. Daiwa Institute of Research senior analyst 
Masami Hamaguchi expects that moves by Japanese companies, centered 
on food and pharmaceutical manufacturers, which have relatively 
ample funds available, to buy foreign companies will continue for 
some time. 
 
(13) Bidding for imported rice fails with traders avoiding impact of 
tainted rice incident 
 
MAINICHI (Page 2) (Full) 
November 8, 2008 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) on 
November 7 said that no contracts were concluded in public bidding 
for imported rice, which took place for the first time in about two 
month. Tenderers were invited for three brands. However, the three 
brands received either no bids or only one bid from traders. Since 
MAFF included among contract conditions a ban on the sale of tainted 
rice even for emergency use, importers apparently shied away from 
signing a contract. 
 
Japan is obligated to import approximately 770,000 tons of minimum 
access rice under the World Trade Organization (WTO) agreement. 
Bidding is held to sell such rice. The government had suspended 
bidding since early September following the revelation of the 
illegal sale of tainted rice. 
 
Tenderers were invited for open bidding for three brands of rice 
totaling 51,000 tons. Two brands, including Thai rice, received one 
bid respectively. U.S. rice received no bids. Since the bidding 
requires participation by more than two companies, it ended in 
failure. There will be another round of bidding. 
 
Before the tainted rice incident was discovered, importers were 
 
TOKYO 00003109  010 OF 010 
 
 
allowed to sell tainted rice discovered in quarantine for industrial 
use. Commenting on the failure of the bidding, one official at the 
MAFF grain trade division said, "Traders were presumably unable to 
make preparations, such as concluding insurance contracts in 
readiness for an event that necessitates them to dispose of 
purchased rice, in time." 
 
(14) Vice Agricultural Minister Ide expects next U.S. administration 
to take even tougher line in beef negotiations, Japan to base 
response of scientific knowledge 
 
NIHON NOGYO SHIMBUN (Page 3) (Full) 
November 7, 2008 
 
Ministry of Agriculture, Forestry, and Fisheries (MAFF) Vice 
Minister Michio Ide on Nov. 6 expressed his views to the press corps 
on the issue of import conditions for U.S. beef, now that Senator 
Obama has been elected president. "Until now, the U.S. has been 
hard-lined, and that won't change," he said. He then added, "Our 
major premise is food safety and the securing of consumer 
confidence. He will handle the issue not based on political 
decisions but based on scientific knowledge." 
 
On trade policy, such as the World Trade Organization (WTO) 
negotiations, Ide pointed out: "From the statements made in the 
election campaign by candidate Obama, we cannot see a clear 
direction." He said it was first necessary to pay attention to the 
cabinet lineup, including who becomes U.S. Trade Representative 
(USTR). 
 
SCHIEFFER