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UNCLAS SECTION 01 OF 08 TOKYO 003180 
 
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 11/19/08 
 
Index: 
 
Defense and security affairs: 
1) Prime Minister Aso says he is considering an anti-piracy role for 
Maritime Self-Defense Force  (Yomiuri) 
2) Special measures law being considered that would allow dispatch 
of MSDF to waters off Somalia to protect commercial ships from 
pirates  (Nikkei) 
 
Diet agenda: 
3) Diet session likely to be extended to allow passage of the bill 
that extends the MSDF refueling mission in the Indian Ocean 
(Mainichi) 
4) 25-day extension being considered for the current extraordinary 
session of the Diet  (Tokyo Shimbun) 
5) Democratic Party of Japan (DPJ) breaks promise to allow passage 
of the refueling mission bill during the current Diet session 
(Nikkei) 
6) Second supplementary budget to be presented to the next regular 
Diet session, not the current on, says Diet Affairs Committee chair 
(Sankei) 
 
Aso diplomacy: 
7) Prime minister's policy course for next fiscal year aims at 
strengthening diplomacy, security  (Sankei) 
8) Aso gives up on possibility of meeting President-elect Obama 
prior to inauguration  (Nikkei) 
9) Aso's plan to hold the next G-20 meeting in Japan is shipwrecked 
(Tokyo Shimbun) 
10) High-level economic meeting between Japan and China is postponed 
 (Nikkei) 
 
11) Reporter's notebook: Is America removing the yoke of 9/11? 
(Mainichi) 
 
12) With tax revenues down 6 trillion yen due to the recession, 
government to increase issuance of deficit bonds to cover the gap 
(Mainichi) 
 
Articles: 
 
1) Aso eyes MSDF dispatch for antipiracy mission 
 
YOMIURI (Page 4) (Abridged) 
November 19, 2008 
 
Prime Minister Aso met with Masahiro Akiyama, a former vice defense 
minister and chairman of the Ocean Policy Research Foundation 
(OPRF), and others at his office yesterday and indicated that he 
would consider proposals from the OPRF and other bodies insisting on 
the necessity of sending Maritime Self-Defense Force ships for 
antipiracy operations in waters off the coast of Somalia in Africa. 
 
In the government, the Headquarters for Ocean Policy is now studying 
antipiracy measures, including the option of sending the 
Self-Defense Forces. However, the government also deems it difficult 
to send the SDF under the current law. "The SDF is to be engaged in 
maritime security operations for emergencies like when Japanese 
ships come under attack," a senior official of the Defense Ministry 
said, "and it's difficult to engage the SDF in maritime security 
operations for antipiracy operations for a long period of time." 
 
 
TOKYO 00003180  002 OF 008 
 
 
In the meeting, Akiyama handed a report of policy proposals to the 
prime minister, featuring such options as sending Maritime 
Self-Defense Force vessels for fact-finding purposes to provide 
information to foreign naval vessels about pirates and issuing an 
order for maritime security operations under the Self-Defense Forces 
Law if and when there was an act of piracy. Akiyama's proposal is to 
send the SDF under the current law. In the meeting with the prime 
minister were former Defense Agency Director General Gen Nakatani 
from the ruling Liberal Democratic Party and Akihisa Nagashima, 
deputy secretary general of the leading opposition Democratic Party 
of Japan (Minshuto), who are members of a nonpartisan parliamentary 
group of young lawmakers to establish a security system for the new 
century. 
 
2) Gov't mulls special law for MSDF antipiracy mission off Somalia 
 
NIKKEI (Page 1) (Abridged) 
November 19, 2008 
 
The government is considering special legislative measures to send 
Maritime Self-Defense Force vessels to waters off the coast of 
Somalia in order to guard commercial freighters against pirates. The 
MSDF's antipiracy operations would be limited to offshore areas near 
the Somalia coast. The MSDF would guard not only Japanese commercial 
ships but also foreign ships. The government will decide whether to 
present a bill to the Diet at its next ordinary session after seeing 
the attitude of the leading opposition Democratic Party of Japan 
(Minshuto). The planned legislation will likely be controversial due 
to such issues as the rules of engagement (ROE) or guidelines for 
the MSDF to use weapons. 
 
In addition to special legislation, the government is also looking 
into the feasibility of creating a general law allowing Japan to 
engage the MSDF in activities anywhere in international waters. 
Since coordination will take time, the government will likely 
present a special measures bill to the ordinary Diet session to 
fast-track it. 
 
The planned special antipiracy legislation is intended to engage the 
Self-Defense Forces in such activities as escorting tankers and 
other commercial ships off the coast of Somalia. The MSDF, when 
spotting pirate ships, will halt them in order to prevent commercial 
ships from being attacked. MSDF vessels, if and when they came under 
attack from pirate ships, will use armed force that is needed for 
legitimate self-defense. The government is also considering the 
option of dispatching P-3C patrol aircraft for over-the-water 
surveillance. 
 
There is also a plan to detain and prosecute pirates in Japan. 
However, the government will not incorporate this option in the 
planned special measures law. Instead, the government is considering 
incorporating it in a general law. MSDF destroyers dispatched under 
the special measures law will ask foreign naval vessels to crack 
down on pirates when spotting them. 
 
3) Diet extension until around Dec. 22 likely for refueling bill 
 
MAINICHI (Page 1) (Full) 
November 19, 2008 
 
The government and the ruling parties decided yesterday to extend 
the current extraordinary Diet session, which is set to end Nov. 30, 
 
TOKYO 00003180  003 OF 008 
 
 
in order to pass a government-introduced bill amending the new 
Antiterrorism Special Measures Law to extend the Maritime 
Self-Defense Force's refueling activities in the Indian Ocean. It is 
Dec. 20 when the bill can be passed by a majority of two-thirds or 
more in a second vote of the House of Representatives as stipulated 
in the Constitution. The day is weekend, so the ruling parties are 
likely to extend the Diet session until around Dec. 22. 
 
Meanwhile, the leading opposition Democratic Party of Japan 
(Minshuto) decided yesterday not to take a vote on the new 
antiterror legislation and a financial bill unless the government 
presents a second supplementary budget for fiscal 2008 to the Diet. 
An extraordinary Diet session can be extended twice, so the 
government and the ruling parties are also looking into the 
possibility of reextending the current extra Diet session until 
early January next year while seeing the DPJ's attitude toward the 
financial bill. 
 
4) Diet session to be extended; Government, ruling camp to 
coordinate views on extending it for 25 days 
 
TOKYO SHIMBUN (Page 1) (Abridged slightly) 
November 19, 2008 
 
The government and the ruling coalition decided yesterday to extend 
the current extraordinary Diet session beyond its Nov. 30 ending. 
The primary purpose is to enact the bill amending the New 
Antiterrorism Special Measures Law to extend the refueling mission 
in the Indian Ocean, now under deliberation at the House of 
Councillors, by a House of Representatives' overriding vote. They 
will coordinate views on extending the session for about 25 days and 
make a final decision while closely monitoring the major opposition 
Democratic Party of Japan's response. 
 
The decision to extend the session follows the DPJ's adoption of a 
policy course of refusing to take votes on bills amending the 
refueling law and the bank strengthening law at the Upper House 
unless the government presents a fiscal 2008 second supplementary 
budget. Prime Minister Taro Aso told reporters at his residential 
office last night: "These are extremely important bills. We 
naturally must deal with them properly by extending (the session), 
depending on how the other side moves." 
 
Even if the Upper House does not take a vote, the Lower House is 
allowed under the Constitution to readopt the refueling legislation 
by an overriding vote 60 days later by regarding the upper chamber's 
inaction as de facto rejection. The vote would come on Dec. 20 at 
the earliest. 
 
There is a view in the government and the ruling bloc that the 
session should be extended until Jan. 5 or later so that in case the 
DPJ refuses take a vote, the ruling camp would be able to use a 
two-thirds overriding vote in the Lower House to get the financial 
institutions strengthening legislation enacted at the same time 
under the 60-day rule. Moreover, because an extra Diet session can 
be extended twice, some are also calling for extending the session 
until late December and re-extending it later on. 
 
5) DPJ breaks off agreement on vote on refueling bill, evoking 
objections from even party members 
 
NIKKEI (Page 2) (Full) 
 
TOKYO 00003180  004 OF 008 
 
 
November 19, 2008 
 
The Democratic Party of Japan (DPJ) boycotted a planned vote on a 
bill to extend the Maritime Self-Defense Force's refueling mission 
in the Indian Ocean in a meeting of the House of Councillors' 
Foreign Affairs and Defense Committee yesterday. The main opposition 
party's attitude reflects its strong reaction to the fact that the 
Prime Minister Taro Aso did not promise in a meeting with DPJ 
President Ichiro Ozawa to submit a second extra budget bill to the 
current Diet session. In the DPJ, however, dissatisfaction is 
smoldering at the party's breach of an agreement reached with the 
ruling camp in an executive board meeting. In the party, the Upper 
and lower House caucuses have made different responses. 
 
A member of the DPJ Upper House Secretariat said that since an 
agreement at the executive board is unofficial, it is not rare for 
an agreement there to be overridden. But another member grumbled: 
"Agreements between the ruling and opposition parties could be 
broken off anytime." In a meeting of the Diet Affairs Committee 
chairmen of opposition parties yesterday, the Japanese Communist 
Party and the Social Democratic Party voiced criticism of the DPJ's 
strategy, one member assailed: "It is irrational to involve the 
second extra budget in its strategy." 
 
According to senior members in the ruling and opposition camps, 
Ozawa indicated in his meeting with Prime Minister Aso that the 
party would boycott all deliberations. Although the Upper House 
cancelled all committee meetings yesterday, the Lower House carried 
out deliberations. Complaining that the Lower House will not take 
the blame, the Upper House has decided to resume deliberations 
today. 
 
6) LDP Diet Affairs Committee chairman: Second extra budget bill 
should be submitted to ordinary Diet session 
 
SANKEI (Page 5) (Full) 
November 19, 2008 
 
In meeting with Executive Council Chairman Takashi Sasagawa and 
others in the Diet Building yesterday, Liberal Democratic Party's 
Diet Affairs Committee Chairman Tadamori Oshima indicated that the 
government should convene an ordinary Diet session in early January 
and submit to the session a second supplementary budget bill for 
fiscal 2008 to finance the government's additional economic 
measures: "It would be better to open the next ordinary Diet session 
early and submit the extra budget bill (with budget-related bills) 
in a package." A senior member of the New Komeito Diet Affairs 
Committee also expressed a similar view the same day. 
 
7) Prime minister plans to strengthen diplomacy and sense of 
security in compiling fiscal 2009 budget 
 
SANKEI (Page 5) (Abridged slightly) 
November 19, 2008 
 
Prime Minister Taro Aso, calling Finance Minister and Financial 
Services Minister Shoichi Nakagawa, Economic and Fiscal Policy 
Minister Kaoru Yosano, and Internal Affairs and Communications 
Minister Kunio Hatoyama to his office last evening, informed them of 
his policy approaches to the compilation of the fiscal 2009 state 
budget and the organization of civil servants and their management. 
 
 
TOKYO 00003180  005 OF 008 
 
 
Regarding the management of civil servants, the prime minister 
ordered them to increase personnel for agencies connected with the 
public's sense of reassurance, such as the planned Consumer Affairs 
Agency, as well as public safety and quarantine. He focused on the 
diplomatic area, including embassies, as well. 
 
After the meeting, Internal Affairs and Communications Minister 
Hatoyama revealed to reporters a plan to consider increasing the 
official development assistance (ODA) budget, saying: "The ODA 
budget has been reduced too much." 
 
In compiling the state budget, the prime minister pointed out the 
following as top priorities: (1) implementation of additional 
economic stimulus measures centering on local areas; (2) promotion 
of the strategic international cooperation initiative with financial 
crisis measures in mind; and 3) spending cuts and the promotion of 
bold reform. The prime minister also indicated that he would issue 
an additional order independently regarding the allocation of the 
330 billion-yen framework for promoting priority items. 
 
8) Aso gives up on meeting with Obama after APEC summit 
 
NIKKEI (Page 2) (Full) 
November 19, 2008 
 
The government planned to arrange a meeting between Prime Minister 
Taro Aso and President-elect Barack Obama after the Asia-Pacific 
Economic Cooperation (APEC) summit scheduled for Nov. 22-23 in Lima, 
Peru, but it decided yesterday to give up on the plan. The prime 
minister will make a stopover in the U.S. for the government plane 
to be refueled on his way back to Japan. The government hoped to 
arrange a meeting on that occasion. But a government source said: 
"There will not be a meeting because we have received no 
communication from the other side." The government will continue to 
seek an opportunity for an early meeting. 
 
9) Japan's bid to host next round of financial summit threatened 
with surfacing of Britain, next G-20 chair, as strong rival 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 19, 2008 
 
Prime Minister Aso is eager to host the second G-20 emergency 
financial summit. However, Japan's bid is now under a dark cloud, 
because Britain has surfaced as a strong rival. 
 
The prime minister while in Washington, where the first round of the 
financial summit was held, made a remark, "Japan is appropriate as a 
venue for the next financial summit." His thinking was that Japan, 
as the chair of the G-8 this year, could display leadership as a 
mediator between industrialized and emerging countries -- the reason 
being so that he could use the achievement to buoy up his 
administration's sagging popularity. He had thought that since Japan 
gave in to the U.S. regarding the venue for the first meeting, it 
would be easy for Japan to obtain understanding from various 
countries about its hosting the second G-20 summit. 
 
However, after the end of the first round, French President Sarkozy 
said, "Britain is a strong candidate for hosting the next meeting." 
The remark has cast a pall over Japan's bid. Twenty countries (G-20) 
-- G-8 plus emerging countries -- took part in the financial summit. 
Britain will chair the G-20 next year. Sarkozy's proposal is based 
 
TOKYO 00003180  006 OF 008 
 
 
on the thought that since the next financial summit will be held 
before April 30, Britain is the appropriate place to hold it. 
 
Finance Minister Shoichi Nakagawa rebutted Sarkozy's remark, saying, 
"Nothing has been set yet." However, a growing view in the 
government is that the situation is disadvantageous to Japan. 
 
The prime minister made a Diet reply at a plenary session of the 
Lower House on November 18, "I would like to promote cooperation 
with related countries, including where and when to hold the next 
round of the summit." This gave the impression that he has stepped 
back from his position. 
 
10) High-level Japan-China economic talks this year to be postponed 
 
NIKKEI (Page 2) (Full) 
November 19, 2008 
 
Major economic ministers from the governments of Japan and China 
planned to hold talks in December, but both sides have decided to 
give up on talks this year, according to government sources 
yesterday. The high-level talks, originally scheduled for late 
November, were rearranged to take place in early December. The 
Chinese government made the request for the postponement, citing the 
cabinet ministers' schedules as the main reason. But its desire to 
give priority to implementing economic stimulus measures worth 4 
trillion won (approximately 57 trillion yen) also seems to be behind 
the request. 
 
The two governments hope to bring about the high-level talks at an 
early date, so they will start coordination, eyeing early next 
year. 
 
11) Yoke of 9/11 
 
MAINICHI (Page 5) (Abridged slightly) 
November 19, 2008 
 
Takeshi Yamashina 
 
At the U.S. Embassy on the morning of Nov. 5, the U.S. presidential 
election day, I had an opportunity to talk to Victoria Becker (TN: 
phonetic), who works at a multinational corporation in Tokyo. 
"America's image has been damaged by the Iraq war," she said. She 
also indicated that during her travel to France and Italy after the 
opening of the Iraq war, some local people showed hatred toward her 
when they learned she was American. One even pointed at her with his 
fingers like a pistol. Ms. Becker added: "I became depressed because 
I like those countries. We should select a president who can lead 
the United States in a new, positive direction. Senator Obama is the 
appropriate choice." 
 
In the wake of the 9/11 terrorist attacks, the Bush administration 
focused its attention on waging a "war on terror" that led to wars 
in Afghanistan and Iraq. That policy course has ended up with 
Washington neglecting other issues in the foreign policy and 
economic areas. 
 
Japan, too, has taken part in the war on terror in the form of 
sending Ground Self-Defense Force troops to Iraq and refueling 
foreign naval vessels in the Indian Ocean. At one point, the issue 
of resuming U.S. beef imports in the wake of the outbreak of BSE 
 
TOKYO 00003180  007 OF 008 
 
 
could have resulted in friction between Japan and the United States. 
But Washington did not exhibit a hard-line stance. 
 
Former diplomat and Ritsumeikan University visiting professor 
Kunihiko Miyake noted: "Over the last eight years, America has paid 
little attention to Japan and Asia, and some ugly aspects of the 
Japan-U.S. relationship have been left to fester. The question is if 
that was really good. Policy toward Japan will change in the future, 
and diplomatic pressure will grow." Promising change, 
President-elect Barack Obama has released the United States from the 
yoke of 9/11. Change can be expected to occur in U.S. policy toward 
Japan, as well. 
 
12) More deficit-covering government bonds to be issued due to 6 
trillion yen drop in estimated tax revenues 
 
MAINICHI (Page 1) (Full) 
November 19, 2008 
 
Mainichi Shimbun learned on November 18 that general-account tax 
revenues for fiscal 2008 will drop more than 6 trillion yen from the 
originally estimated amount of 53.5 trillion yen. The major reason 
of the shortfall is a significant decline in corporate tax revenues, 
a main contributor to tax revenues, in the wake of a substantial 
slip in corporate performances resulting from the economic slump at 
home and abroad. The Finance Ministry intends to make up for the 
shortfall in tax revenues by increasing the issuance of 
deficit-covering government bonds. The decision will be incorporated 
into the fiscal 2008 supplementary budget bill now being drafted. 
 
This would be the first time in about six years -- fiscal 2002 -- 
when the country suffered serious deflation, for the government to 
issue deficit bonds in the middle of the fiscal year. There is 
concern, though, that state finances will worsen, when expenditures 
are increased for such reasons as the adoption of the flat-sum cash 
benefit program totaling 2 trillion yen, following the government's 
additional economic stimulus package. 
 
Chances are that the value of newly issued government bonds, 
including construction bonds, in fiscal 2008 will reach the 30 
trillion yen level for the first time in three years, largely 
exceeding the projection made at the stage of the initial budget 
(25.3 trillion yen). It now appears difficult for the government to 
achieve the goal of moving the primary balance into the black by 
fiscal 2011. 
 
Based on the economic conditions as of the end of last year, the 
Finance Ministry had estimated tax revenues for fiscal 2008 at 
53.554 trillion yen at the stage of compiling the initial budget. 
However, the financial crisis originating in the U.S. has become 
serious since early this year. As a result, the actual tax revenues 
for fiscal 2007, which serve as a premise for a projection for 
fiscal 2008 tax revenues, fell below the government's estimate by 
approximately 1.5 trillion yen. Since corporate performances are 
further deteriorating in fiscal 2008, the Finance Ministry will 
likely revise down the estimate for tax revenues to around 47 
trillion yen, down over 6 trillion yen from the projection made when 
the initial budget was compiled. 
 
Following an estimate for a substantial fall in tax revenues, the 
Finance Ministry will revise down a projection for tax revenues, 
coinciding with the compilation of the second supplementary budget. 
 
TOKYO 00003180  008 OF 008 
 
 
A drop in tax revenues appears unavoidable in the future as well 
because of the possibility of the domestic economy growing at a 
negative rate in fiscal 2008 and 2009. 
 
SCHIEFFER