VZCZCXRO6178
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3211/01 3250120
ZNR UUUUU ZZH
P 200120Z NOV 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8966
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 3448
RUEHFK/AMCONSUL FUKUOKA 1089
RUEHOK/AMCONSUL OSAKA KOBE 4879
RUEHNAG/AMCONSUL NAGOYA 9102
RUEHKSO/AMCONSUL SAPPORO 1660
RUEHBJ/AMEMBASSY BEIJING 6500
RUEHUL/AMEMBASSY SEOUL 2495
RUCNDT/USMISSION USUN NEW YORK 2635

UNCLAS SECTION 01 OF 08 TOKYO 003211 
 
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 11/21/08 
 
Index: 
 
1) Videoconference of American and Japanese students at U.S. 
Embassy: U.S. hot on politics; Japan not  (Asahi) 
 
Defense and security affairs: 
2) Suprapartisan group of lawmakers sponsoring special law to 
dispatch MSDF to waters off Somalia to deal with pirate problem 
(Yomiuri) 
3) Special measures law to allow MSDF dispatch to cope with pirates 
in waters off Somalia will allow relaxed use of weapons rules 
(Sankei) 
4) SDF failure to intercept missile in MD test analyzed  (Nikkei) 
5) Former Defense Minister Hayashi calls for redefinition of the 
U.S.-Japan alliance  (Mainichi) 
6) Chief Cabinet Secretary Kawamura lax about possible territorial 
violation on Tsushima Island: If something specific happens, will do 
something about it  (Sankei) 
 
Political agenda: 
7) Coordination has started to extend the current Diet session by 25 
days  (Asahi) 
8) Liberal Democrat Party (LDP) junior and mid-level lawmakers 
oppose Prime Minister Aso's position of not submitting second extra 
budget to current session  (Mainichi) 
9) Aso apologizes again to Japan Medical Association for saying that 
most Japanese doctors "lack common sense"  (Mainichi) 
 
10) Yohei Kono sets a record as longest running speaker of the Lower 
House, logging 1,786 days so far  (Asahi) 
11) Democratic Party of Japan is at it again: Opposes government's 
appointments of nine officials in three organizations, including 
Fair Trade Commission  (Yomiuri) 
 
12) Government's tax commission proposes measure to make it easier 
for companies overseas to repatriate profits  (Nikkei) 
 
13) Financial crisis prompts WTO to act  (Asahi) 
 
Articles: 
 
1) Video conference held between Japanese and American college 
students 
 
ASAHI (Page 4) (Abridged slightly) 
November 21, 2008 
 
Hideo Matsushita 
 
A video conference was held yesterday between college students of 
Japan and the United States. The event clearly exposed the 
difference between Japanese students, who have few hopes of 
politics, and their American counterparts, who have strong 
expectations for change. Some Japanese students reacted enviously to 
U.S. participants who repeatedly said that with participation, 
politics can be changed. 
 
The U.S. Embassy in Tokyo hosted the event. Some 170 Japanese and 
American students in Tokyo, Nagoya, Fukuoka, Naha, and Washington 
discussed "youths and politics." 
 
In reaction to a report that Japanese youths have little interest in 
 
TOKYO 00003211  002 OF 008 
 
 
politics and that they tend to regard lawmakers as "uncool," an 
American student asked, "Why do you feel politicians are not cool?" 
 
Included in the U.S. side were a number of students who worked as 
volunteers in the U.S. presidential election. One Japanese 
participant asked: "If a candidate who has no vision for the country 
and is a poor speaker runs in the next presidential election, do you 
still think you will participate in politics?" The question was 
raised as if to ask, what would you do if you were placed in the 
position of Japanese youths? 
 
An American student said: "Many young people were moved by the 
speeches of President-elect Obama and began to realize that we can 
make change if we take part in politics. I think we will remain 
engaged in politics to change the situation even if the next 
candidate is not attractive." 
 
2) Diet group eyes special law for MSDF antipiracy mission 
 
YOMIURI (Page 2) (Abridged) 
November 21, 2008 
 
A nonpartisan parliamentary group of junior lawmakers, aiming to 
refurbish Japan's security system for the new century, held an 
executive meeting yesterday and decided to sponsor a special 
measures law intended to send the Self-Defense Forces for antipiracy 
operations in waters off the coast of Somalia in Africa. The Diet 
group is co-represented by former Defense Agency Director General 
Gen Nakatani from the ruling Liberal Democratic Party, Seiji 
Maehara, deputy president of the leading opposition Democratic Party 
of Japan (Minshuto), and Isamu Ueda, vice chairman of the New 
Komeito, the LDP's coalition partner. 
 
The group's proposal of special legislation is expected to feature 
such measures as sending Maritime Self-Defense Force destroyers and 
P-3C patrol aircraft to offshore areas near the Somalia coast to 
escort (Japanese) tankers and foreign merchant ships. In addition, 
the group's legislative proposal is expected stipulate that the MSDF 
will watch out for pirate ships and chase and halt them as needed. 
It would also allow the MSDF to use weapons if and when commercial 
ships come under attack. 
 
3) Weapons use eyed for self-defense against pirates 
 
SANKEI (Page 5) (Full) 
November 21, 2008 
 
The government yesterday drew up a bill for antipiracy special 
measures to send Maritime Self-Defense Force destroyers to waters 
off the coast of Somalia in Africa. The bill allows the MSDF to use 
weapons if and when the MSDF needs to do so in legitimate 
self-defense or if and when pirates use weapons. The MSDF is also 
expected to escort foreign ships. 
 
The government plans to present the bill to the Diet at its ordinary 
session next year. 
 
The draft bill is intended to secure tankers and other commercial 
ships. It is based on a resolution adopted by the United Nations in 
June this year for antipiracy counteractions. 
 
The bill stipulates that the MSDF will operate in Japan's 
 
TOKYO 00003211  003 OF 008 
 
 
territorial waters and in waters off the coast of Somalia. For 
example, the MSDF will watch and escort ships there and will halt 
and inspect pirate ships. If and when there is a battle nearby, the 
MSDF will discontinue its operations there and evacuate. 
 
4) Missile test failure: Accuracy improvement a major challenge 
 
NIKKEI (Page 2) (Abridged) 
November 21, 2008 
 
The Defense Ministry announced yesterday that the Maritime 
Self-Defense Force conducted a second test in waters off Hawaii of 
its sea-based Standard Missile 3 (SM-3) system, which is designed to 
shoot down ballistic missiles flying to Japan. However, the SM-3 
failed to intercept a mock ballistic missile, ministry officials 
said. The MSDF lost sight of the target missile several seconds 
before intercept. The ministry is now working together with the U.S. 
military to probe the cause of the failure. 
 
The missile test was intended to check the MSDF Aegis destroyer 
Chokai's performance, and its cost was 6.2 billion yen. The U.S. 
military launched a mock missile as a target from Kauai, Hawaii. The 
Chokai was to detect the target missile several hundred kilometers 
away and launch an SM-3 missile to shoot it down. 
 
In a previous test that was carried out in December last year, the 
MSDF successfully shot down a mock missile with an interceptor 
launched from its Aegis destroyer Kongo. Unlike that test, the test 
this time was conducted with a scenario that was even more like an 
actual war with no information given in advance about what time the 
mock missile would be launched. 
 
Japan and the United States will probe the cause of the test's 
failure and would like to release findings from their analyses. The 
SM-3 is designed to catch a source of heat with an infrared sensor 
in its warhead. There is a view that there was something wrong with 
the SM-3 missile's warhead. 
 
"We went well with detecting, tracking, and launching," Takashi 
Saito, chief of the Self-Defense Forces' Joint Staff Office, told a 
press conference yesterday. He added: "The system was normal. We 
failed in the important phase. But we got a passing mark." Vice 
Defense Minister Kohei Masuda also stressed, "It will not affect the 
scheduled networking of missile defense systems." 
 
Japan and the United States have so far conducted a total of 16 SM-3 
tests and have been successful in 13. A senior Defense Ministry 
official also admits, "We cannot say we will never miss the target." 
However, it is a categorical imperative to improve the accuracy of 
interception. The failure this time has left a major challenge. 
 
5) Former defense minister calls for redefinition of Japan-U.S. 
alliance 
 
MAINICHI (Page 5) (Full) 
November 21, 2008 
 
Appearing on a BS11 digital television broadcast, former Defense 
Minister Yoshimasa Hayashi of the Liberal Democratic Party commented 
on the challenges for Japan-U.S. relations after the inauguration of 
President-elect Obama. He stressed: "Mutual frustration is mounting 
on the security front, which is the foundation of the relationship. 
 
TOKYO 00003211  004 OF 008 
 
 
The international situation also has changed. The time has come for 
a redefinition of our security ties from a mid to long-term 
perspective." 
 
6) Tsushima in danger: Kawamura indicates that government will 
consider countermeasures when something happens 
 
SANKEI (Page 3) (Abridged slightly) 
November 21, 2008 
 
South Korean capital has been purchasing real estate in Tsushima 
City (a set of islands), Nagasaki Prefecture. Commenting on this 
issue, Chief Cabinet Secretary Takeo Kawamura told the House of 
Councillors Cabinet Committee yesterday: "We will consider 
(countermeasures) when something specific happens." This comment can 
be taken to mean that the matter would be left unaddressed until 
national defense is in danger. Kawamura was responding to a question 
from Upper House member Eriko Yamatani of the Liberal Democratic 
Party. The statement is likely to draw criticism as an imprudent 
observation lacking a national interest perspective on security and 
territorial issues and slighting the safety of the islanders. 
 
Yamatani asked about the Tsushima issue at the start of the meeting. 
In a press conference on Oct. 21, Kawamura suggested the possibility 
of reviewing security problems, saying, "Naturally, there is a need 
for the state to consider the matter from a perspective of the 
security of Japan." Referring to this statement, Yamatani asked: "Is 
the government going to conduct a fact-finding survey in the 
future?" 
 
In response, Kawamura, backing off from his initial position, 
indicated that there was no such plan, saying: "The Self-Defense 
Forces, including the security of their bases, have been managed 
properly." 
 
Yamatani again asked the true intention of Kawamura's statement made 
in the Oct. 21 press conference. Kawamura replied: "We must consider 
(countermeasures) when concrete action affecting out country's 
security is taken." This can be taken to mean that the government 
would leave the situation unaddressed until harm comes to the SDF or 
islanders. Hearing this, a lawmaker said: "There have been concrete 
moves (such as buying plots of land around the Maritime Self-Defense 
Force base). The government should conduct a survey." 
 
Yamatani added: "I am asking you questions because if there is 
something concrete, it might be too late to do anything about it." 
Yamatani also called for a fact-finding survey, including hearings 
from islanders and SDF personnel. Citing such countries as South 
Korea and Mexico where foreigners are restricted from purchasing 
lands near the borders under their constitutions or law, Yamatani 
underscored the need to establish a similar law or a system 
restricting the purchase of plots of land necessary in light of 
security. 
 
In the series of replies, Kawamura said, "There is no need to 
restrict (the purchase of land) at this point in time," while 
indicating, "We must keep in mind the importance of the Tsushima 
islands." 
 
7) Coordination on 25-day Diet extension underway 
 
ASAHI (Page 1) (Full) 
 
TOKYO 00003211  005 OF 008 
 
 
November 21, 2008 
 
The ruling parties yesterday began coordination on a plan to extend 
the current extraordinary Diet session by about 25 days until around 
Dec. 25. The ongoing session is expected to end on Nov. 30. 
 
This is because even if the main opposition Democratic Party of 
Japan (DPJ) delays a vote on a bill amending the new Antiterrorism 
Special Measures Law, which has already been sent to the House of 
Councillors after the House of Representatives approved it, it will 
be possible for the Lower House to hold a second vote on the bill 
based on the constitutional rule that if the Upper House does not 
take a vote on a bill within 60 days after it receives the bill, it 
is regarded that the upper chamber voted down the bill. Given the 
number of weekends and national holidays, the current Diet session 
is most likely to be extended until about Dec. 25. 
 
The ruling coalition is also considering extending again the ongoing 
Diet session because it will be possible for a bill revising the 
Financial Functions Strengthening Law, another priority issue, to be 
put to a second vote in the Lower House after Jan. 5. 
 
It is allowed to extend an extraordinary session twice. However, 
since there is a view in the ruling coalition that the current 
session should be extended by early January, a final decision will 
be made after Prime Minister Taro Aso and senior ruling coalition 
officials discuss the matter early next week. 
 
8) Junior, mid-level LDP lawmakers to urge government to submit 
second extra budget to Diet 
 
MAINICHI (Page 2) (Full) 
November 21, 2008 
 
About 20 junior and mid-level Liberal Democratic Party lawmakers, 
including former State Minister for Financial Affairs Toshimitsu 
Motegi, former State Minister for Administrative Reform Yoshimi 
Watanabe and former Chief Cabinet Secretary Yasuhisa Shiozaki, held 
a meeting yesterday in the Diet building, and agreed to submit soon 
to the government a letter calling for the submission of a fiscal 
2008 second supplementary budget for additional economic measures to 
the Diet in the current session. 
 
Prime Minister Taro Aso has decided to forgo submitting a second 
extra budget to the Diet in the ongoing session. In the meeting 
yesterday, however, many participants said that it was necessary to 
implement economic stimulus measures as quickly as possible. 
However, some thought that the meeting was actually intended to form 
a group critical of the prime minister, and not just to urge the 
government to present the second extra budget to the Diet. 
 
9) Aso apologizes to Japan Medical Association for remark critical 
of doctors 
 
MAINICHI (Page 2) (Full) 
November 21, 2008 
 
Prime Minister Taro Aso yesterday retracted his earlier remark that 
"there are many doctors who lack common sense" and apologized to the 
Japan Medical Association (JMA) Chairman Yoshihito Karasawa, who 
visited the Prime Minister's Office to make a protest, saying, "I 
used improper words." 
 
TOKYO 00003211  006 OF 008 
 
 
 
According to JMA Vice Chairman Yasuhiro Takeshima, who also met Aso 
with Karasawa, the chairman read a letter of protest and handed it 
to the prime minister. The letter read: "He pointed his finger at a 
certain occupation and discriminated against it without any 
foundation. I am furious (at his remark)." According to Takeshima, 
Aso replied: "I improperly used the expression 'lack of common 
sense' in stressing that doctors' values are different (from 
ordinary people). I retract my words and make an apology." 
 
In the JMA, a political group of the Ibaraki JMA, in reaction to the 
health insurance system for people aged 75 or older, has decided to 
support the candidate of the Democratic Party of Japan in the next 
House of Representatives election. The controversial remark by the 
prime minister reportedly has drawn a number of complaints by 
e-mails from JMA members across the nation. 
 
Asked in a press conference about the impact of the Aso remark on 
the Lower House election, JMA executive director Toshio Nakagawa 
said: "He made the remark that tramples down our feelings. I think 
there will be a substantial impact." 
 
10) Kono becomes longest-serving Lower House speaker 
 
ASAHI (Page 4) (Abridged slightly) 
November 21, 2008 
 
Yohei Kono, 71, became the longest-serving speaker of the House of 
Representatives yesterday since the Imperial Diet of the Meiji Era, 
serving 1,786 days in office. Kono in a press conference in the Diet 
building yesterday commented: "During this period, I have worried 
that calls for a review of the postwar regime and for returning to 
the prewar era might grow louder." 
 
As a memorable event, Kono cited controversial visits to Yasukuni 
Shrine by former Prime Minister Junichiro Koizumi. Assembling former 
prime ministers to his official residence in June 2005, Kono managed 
to come up the common view that the prime minister should think 
twice before visiting Yasukuni Shrine. Armed with this view, Kono 
pressed Koizumi for self-restraint. Looking back at those days, Kono 
said: "Some criticized my conduct, saying I should not do such a 
thing as the Lower House speaker. The matter was important for the 
state, and I still don't think offering advice reflecting elders' 
views is bad." 
 
Peace and disarmament have been his lifework. Kono became Lower 
House speaker in November 2003 and was reappointed in 2005. In 
September this year, he announced that he would not run in the next 
Lower House election and would retire from politics. 
 
11) DPJ again disapproves of government's nominations 
 
YOMIURI (Page 4) (Abridged slightly) 
November 21, 2008 
 
To fill positions in seven organizations, the government has 
nominated 20 candidates. The main opposition Democratic Party of 
Japan (DPJ), however, decided yesterday to disapprove of three 
nominees to sit on the NHK (Japan Broadcasting Corporation) 
Management Committee, another slated for membership on the Fair 
Trade Commission, and four to become Reemployment Oversight 
Commission members. 
 
TOKYO 00003211  007 OF 008 
 
 
 
Of the government's four nominees for NHK Management Committee 
members, the DPJ decided to oppose the nomination of Mizuho 
Financial Group President Terunobu Maeda, arguing that since Mizuho 
is NHK's designated bank, the appointment would raise eyebrows. The 
largest opposition party decided to disapprove also the 
reappointment of two committee members. Diet Affairs Committee 
Deputy Committee Chairman Jun Azumi said: "Those two have not come 
up with ideas that would improve the quality of NHK." 
 
Meanwhile, the DPJ decided to support the nomination of Izumi 
Kuwano, president of the Japanese inn Tamo no Yu (Yufu City in Oita 
Prefecture), for a NHK Management Committee member, although it had 
decided to disapprove it in a meeting of the previous day. The 
reason was that Kuwano had served in earnest as a member of the NHK 
Council for Broadcast Programs. 
 
The DPJ decided to disapprove the nomination of Hitotsubashi 
University Prof. Akinori Uesugi to be a FTC member. Yoshito Sengoku, 
chair of the party's subcommittee to look into appointments, said: 
"He once contributed an essay to a monthly magazine under the name 
of a fictional lawyer, even though he is not a lawyer." The main 
opposition party also decided to reject the nominations for 
Reemployment Oversight Commission memberships, citing that the 
commission itself has yet to agree to them. 
 
12) Tax panel to propose measure to encourage corporate profits 
overseas to be brought back to Japan 
 
NIKKEI (Page 1) (Full) 
November 21, 2008 
 
The government's Tax Commission, an advisory panel to the prime 
minister, will propose creating a tax system to facilitate corporate 
profits earned overseas to be brought back to Japan. The panel will 
include this proposal in its package of recommendations for tax 
system revisions for fiscal 2009, according to a draft package 
unveiled yesterday. Regarding the consumption tax, the report 
specifies the need to raise the tax rate to finance increasing 
social security expenses, as was in the report of last year. The 
package also positively evaluates the decision by the government and 
the ruling camp to form a mid-term program on tax reform, including 
the consumption tax. 
 
Under the nation's current corporate tax system, companies are taxed 
on their global income. When companies distribute profits from 
overseas as dividends in Japan, the highest effective corporate tax 
rate of about 40 PERCENT  is imposed on the payouts. Due to this tax 
system, Japanese companies' overseas units have near-record levels 
of retained earnings. Given this, the panel proposes making such 
dividends from overseas units to their parents in Japan tax-free. 
 
Although the report recommends raising the consumption tax, there is 
no reference to the timing and the margin of rise. 
 
13) Financial crisis prompts WTO to act 
 
ASAHI (Page 7) (Excerpts) 
November 21, 2008 
 
The new round of World Trade Organization (WTO) global trade talks 
(Doha Round) has begun to get into motion. A declaration issued at 
 
TOKYO 00003211  008 OF 008 
 
 
the financial summit (G-20 summit) held in Washington pledged to 
make efforts to reach a broad agreement by the end of this year. A 
statement to be issued at the Asia-Pacific Economic Cooperation 
(APEC) annual meeting in Peru is also expected to express support 
for an agreement. Behind the moves to strike a WTO agreement is a 
sense of alarm about a rise of protectionism when the global economy 
is sinking deeper into recession. 
 
Japan anxious about unexpected development 
 
The development of WTO talks heading toward an agreement has 
surprised Japanese government officials, who had thought until very 
recently that it would be difficult to see significant progress 
soon. 
 
A senior Foreign Ministry official who accompanied Prime Minister 
Aso on his visit to Washington for the financial summit said: "The 
leaders of participant countries were so enthusiastic that moves to 
push ahead with negotiations gained momentum." 
 
In WTO ministerial talks, personal relations among the participants 
greatly affect whether an agreement will be reached on key items. In 
Japan, the agriculture, forestry and fisheries minister and the 
economy, trade and industry minister were replaced after the 
previous ministerial held in July. Given this, Japan has begun to 
move in haste in order to make preparations for the next round of 
negotiations. 
 
Agriculture, Forestry and Fisheries Minister Ishiba is scheduled to 
leave for Geneva on Nov. 23. Coordination is now underway for him to 
meet WTO Director General Pascal Lamy and farm talks chairman 
Crawford Falconer. Ishiba intends to renew Japan's call in possible 
meetings for keeping the tariff on "sensitive agricultural products" 
at 8 PERCENT . The Ministry of Economy, Trade and Industry will 
dispatch the official participating in the APEC meeting to Geneva, 
in which WTO headquarters is located, after the APEC meeting. 
 
If negotiators move closer toward reaching a broad agreement, Japan 
will likely be pressured to make concessions in the agricultural 
area. The Central Union of Agricultural Cooperatives is planning to 
hold a nationwide rally to call on the government to protect the 
farm industry in the run-up to the next round of WTO talks. 
 
SCHIEFFER