VZCZCXRO6400
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3218/01 3260816
ZNR UUUUU ZZH
P 210816Z NOV 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8983
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 3463
RUEHFK/AMCONSUL FUKUOKA 1102
RUEHOK/AMCONSUL OSAKA KOBE 4892
RUEHNAG/AMCONSUL NAGOYA 9113
RUEHKSO/AMCONSUL SAPPORO 1673
RUEHBJ/AMEMBASSY BEIJING 6512
RUEHUL/AMEMBASSY SEOUL 2507
RUCNDT/USMISSION USUN NEW YORK 2645

UNCLAS SECTION 01 OF 06 TOKYO 003218 
 
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 11/21/08 
 
INDEX: 
 
(1) China's sovereign wealth fund negotiating with AIG to acquire 
stake in Alico at cost of up to one trillion yen (Nikkei) 
 
(2) Seiron column by Doshisha University Prof. Koji Murata: Japanese 
people, too, should stop always following U.S. footsteps (Sankei) 
 
(3) Economic Minister-Counselor to Japan Cekuta pursues the views of 
Hokkaido on the BSE issue and other matters (Hokkaido Shimbun) 
 
(4) TOP HEADLINES 
 
(5) EDITORIALS 
 
(6) Prime Minister's schedule, November 20 (Nikkei) 
 
ARTICLES: 
 
(1) China's sovereign wealth fund negotiating with AIG to acquire 
stake in Alico at cost of up to one trillion yen 
 
NIKKEI (Top Play) (Full) 
November 21, 2008 
 
China Investment Corp. (CIC), a Chinese sovereign wealth fund, has 
started negotiations with the struggling U.S. giant American 
International Group (AIG) on a planned massive investment in 
American Life Insurance Co., also known as Alico, which is under the 
wings of AIG. The Chinese entity is aiming to reach a deal by the 
end of the year on a plan to purchase a stake of up to 49 PERCENT 
in Alico. Alico are doing life insurance business in more than 55 
countries, including Japan. China, which sees the ongoing financial 
crisis as a good opportunity, has suddenly appeared on the main 
stage to reorganize the global insurance market. 
 
According to informed sources yesterday, a consortium, which CIC 
formed with Chinese insurers, has held preferential negotiations 
with AIG to purchase its shares in Alico, with the end of this year 
as their deadline. The Chinese side is expected to propose 500 
billion yen to one trillion yen as the amount paid for acquiring the 
stake of 49 PERCENT  in Alico. 
 
Citing AIG's future growth potential, AIG reportedly has set forth 
the condition that it will keep more than 50 PERCENT  of voting 
rights in Alico to maintain the right of management.  If both sides 
reach an agreement, this could open the way for future capital and 
business tie-ups between AIG and the Chinese investors. 
 
Alico Japan, a branch of U.S. firm Alico, accounts for 60-70 PERCENT 
 of the company's entire insurance premium revenue. If the 
investment plan is implemented, China will make an effective entry 
into the Japanese insurance market. China's entry could trigger a 
reorganization of the industry. Alico Japan's insurance policies are 
likely to be maintained even if the Chinese investors acquire Alico 
shares. 
 
AIG announced on Oct. 3 its decision to sell Japanese subsidiaries 
AIG Edison Life Insurance Co., AIG Star Life Insurance Co., and 
Alico Japan. AIG decided to sell AOG Edison and AIG Star in a 
package, but the possibility had appeared of selling Alico Japan 
separate from its other global businesses. But the company gave up 
 
TOKYO 00003218  002 OF 006 
 
 
on selling the global operations by the piece, based on the judgment 
that their values might fall. 
 
AIG rapidly fell in financially difficult in the fallouts of the 
credit woes stemming from the U.S. subprime mortgage crisis. AIG has 
undertaken large volumes of credit default swaps, a type of 
derivative that insures against defaults, so the U.S. government 
judged that a collapse of AIG will inevitably have a serious impact 
on the global financial market. Based on this judgment, the 
government came up with expanded assistance measures, such as the 
injection of public funds in AIG and easing loan terms. 
 
In accordance with the government's assistance decision, AIG intends 
to accelerate the sale of its assets, but its 
management-reconstruction plan has not advanced smoothly. Given 
this, many observers anticipated that if the reconstruction plan ran 
against a snag, the current financial crisis could become even more 
serious. The fate of AIG was a matter of concern for the global 
stock market. 
 
Observers speculate that China is aiming to pave the way to become a 
major player in the global insurance market by investing in Alico. 
China also seems to be aiming to learn advanced know-how on 
insurance services and make use of the know-how for its domestic 
business. Reportedly, though, CIC has latent losses in some share 
holdings, affected by the U.S.-triggered financial woes. Given this, 
negotiations on such conditions as the purchase price may have rough 
going. 
 
(2) Seiron column by Doshisha University Prof. Koji Murata: Japanese 
people, too, should stop always following U.S. footsteps 
 
SANKEI (Page 13) (Full) 
November 19, 2008 
 
Sen. Barack Obama (D-Illinois) was finally elected the next 
president of the United States. He won a landslide victory, topping 
a majority of 270 electors. The 47-year-old Obama will become the 
first black American president. 
 
Obama swept away the racial barrier in America, just as John F. 
Kennedy had broken the religious barrier. Obama is being called the 
"Black Kennedy" since he speaks as eloquently as Kennedy did and is 
young like Kennedy was when he became president. Aiming at pursuing 
dialogues in the international community, Obama has called for a 
unification of divided American public opinion. Obama, who is asking 
the American public to unify at a time of national crisis, is 
reminiscent of Abraham Lincoln in the Civil War era. Lincoln was 
tall and a native of Illinois. 
 
If there had not been a financial crisis, it would have been 
difficult for Obama to win the presidential election. Dealing with 
the global financial crisis is the biggest challenge for Obama for 
the time being. At this point, he appears similar to Franklin 
Roosevelt, who fought against the Great Depression by coming up with 
his New Deal program. 
 
If Obama fails to manage the financial crisis, he will lose 
popularity. As a result, he may have to leave the White House after 
his first term is over. If such happens, he would be following in 
the footsteps of Jimmy Carter and he might even be called the "Black 
Carter." 
 
TOKYO 00003218  003 OF 006 
 
 
 
Top priorities for Obama's foreign policy are restoring civil order 
in Afghanistan and resolving the issue of Iran's nuclear ambitions. 
Compared to these issues, the North Korean nuclear issue is not a 
high priority for the Obama administration. Japan-U.S. relations are 
in such circumstances. 
 
The Obama administration will probably ask Japan for further 
cooperation in assisting the reconstruction of Afghanistan. However, 
the Japanese government's position is that it cannot dispatch the 
Self-Defense Forces (SDF) to that country. How much Japan should 
cooperate is a matter of policy choice. We must seriously reconsider 
what kind of international involvements are necessary for Japan, 
which wants to win a permanent seat on the United Nations Security 
Council (UNSC). Less than 40 SDF personnel are now participating in 
UN peacekeeping operations (PKO). The government's official 
development assistance (ODA) budget has been on the decline. 
 
Japan should independently reconsider how to dissolve the issue of 
North Korea's abductions of Japanese nationals and what kind of 
methods and strategies should be taken. It should not just seek 
cooperation from the United States. Although Japan cannot resolve 
both the nuclear and abduction issues without Washington's 
involvement, it needs to have independence in its action and not 
just always seek cooperation from the United States. It is important 
for Japan to find the right balance between its own independent 
action and America's involvement. 
 
I recently am often questioned about what kind of impact the 
election of Obama will have on Japan-U.S. relations. However, I 
think there is a lack of independent ideas -- what Japan should do 
and what it wants to do with its relations with the United States -- 
in the questions I have received. The government's -- particularly 
the Foreign Ministry's -- policy of following the footsteps of the 
United States has long been criticized. I wonder if the media and 
public that criticize the government and the Foreign Ministry have 
followed in the footsteps of the United States in terms of coming up 
with new ideas. We live in a democratic society. If voters cannot 
conceive of not following in the footsteps of the United States, it 
is not surprising that the government and the Foreign Ministry 
follow them. 
 
Lastly, Obama is trying to change the international image of 
America. In order to improve its international image, Japan, too, 
needs to think and make more efforts. Attaching priority to 
improving the nation's international image and pursuing independent 
actions do not contradict each other. If Japan pursues the latter 
alone, ignoring the former, it will lapse into self-righteousness. 
If Japan is aware of the former alone, it will mean to follow the 
footsteps of the United States or play the hypocrite. 
 
The image of a Japan that does not reflect on its past conducts and 
of a Japan that does not make any apologies for the past are 
obviously incorrect. Although my ability is limited, I have had 
discussions on the matter with Americans, Europeans, and Chinese and 
South Korean people at international conferences. In order to 
correct the distortion in this image of Japan, a detailed study of 
history is necessary. No one will probably object to this view. 
 
Based on such a study of history, it is important for Japan to 
present its views persuasively in a calm manner. 
 
 
TOKYO 00003218  004 OF 006 
 
 
It is difficult for a narrow-minded view, namely, that one's own 
opinions about modern history form the only true and correct 
historical view, and calling those who reject it as anti-Japanese -- 
to get support and understanding not only from opponents in argument 
but also from third parties. It is time for both Japan and the 
United States to reconsider a strategy of improving their images in 
the international community. 
 
(3) Economic Minister-Counselor to Japan Cekuta pursues the views of 
Hokkaido on the BSE issue and other matters 
 
HOKKAIDO SHIMBUN (Page 4) (Full) 
November 20, 2008 
 
Robert Cekuta, minister-counselor for economic affairs at the U.S. 
Embassy in Japan, met Deputy Governor Noboru Arashida in the 
Hokkaido prefectural building to pursue the views of the prefectural 
government on the reason for continuing blanket inspection of cattle 
for BSE and other issues. The prefectural side, which assumed he was 
paying a formal courtesy call, ended up taking it as an unexpected 
application of gaiatsu or foreign pressure from the United States, 
which is seeking such concessions as the easing of restrictions on 
beef imports. 
 
On the blanket inspections for BSE, the minister-counselor stressed 
indirectly the safety of U.S.-produced beef. He said: "I have my 
doubts how much consumers understand about such things as the 
butchering method for meat. If they were to understand it, the need 
for such inspections would disappear." 
 
The deputy governor replied, "Inspections themselves provide 
consumers with a feeling of peace of mind." He indicated that the 
blanket inspections would continue. 
 
The minister-counselor also asked about the application of science 
and technology in the agricultural sector. The deputy governor 
stated, "Consumers still have an allergy to genetically-modified 
foods." He pointed out: "What are consumers afraid? It is too bad 
that Hokkaido cannot receive the benefits of science and 
technology." He hoped to be able to tackle the dissemination of GM 
products in Hokkaido. 
 
(4) TOP HEADLINES 
 
Asahi & Tokyo Shimbun: 
Ex-vice welfare minister's wife: Man carrying box stabbed her 
without speaking 
 
Mainichi: 
Wife says attacker was in 30s-40s, wearing work uniform 
 
Yomiuri: 
No fingerprints left at site of ex-vice minister, wife murder in 
Saitama 
 
Nikkei: 
China's sovereign wealth fund now engaged in negotiations with AIG 
to acquire big state in Alico 
 
Sankei: 
Violent incidents involving elementary school students on sharp 
rise 
 
TOKYO 00003218  005 OF 006 
 
 
 
Akahata: 
Isuzu Motors dismisses all non-regular employees 
 
(5) EDITORIALS 
 
Asahi: 
(1) Aso's words and government carry no weight 
(2) Judgment on development plan for dry beach of Awase in Okinawa a 
warning against wasteful projects 
 
Mainichi: 
(1) Aso controversial remark critical of doctors quite serious 
(2) Reflect survey results on children's problem deeds in specific 
measures 
 
Yomiuri: 
(1) Specify how to bear costs and pay benefits for social welfare 
(2) Can actual situation on bullying be grasped through survey? 
 
Nikkei: 
(1) Prime minister's statement on postal service encourages moves by 
anti-reformists 
(2) Slump in consumption casting shadow over U.S. stock market 
 
Sankei: 
(1) Return to policy of freeing up road tax revenues 
(2) Senior NPA officer arrested for drunk driving: Stricter measures 
needed 
 
Tokyo Shimbun: 
(1) Government must tackle issue of reviewing pension system 
(2) Survey finds bullying cases decreasing but ways becoming 
loathsome 
 
Akahata: 
(1) Possessing countries possessing should not act to preserve 
cluster bombs 
 
(6) Prime Minister's schedule, November 20 
 
NIKKEI (Page 2) (Full) 
November 21, 2008 
 
07:33 
Had a walk around his private residence in Kamiyamacho. 
 
10:02 
Met at the Kantei Japan-Bangladesh parliamentary league 
vice-chairman Kosuke Ito and others, followed by Vice Foreign 
Minister Yabunaka. 
 
11:14 
Met Internal and Communications Ministry Vice Minister for Policy 
Coordination Terasaki, Deputy Foreign Ministers Sasae and Kohno, 
METI Deputy Director General for Policy Coordination Ishige and 
others, joined in by Deputy Chief Cabinet Secretary Matsumoto. 
 
14:35 
Met Japan Medical Association Chairman Karasawa and Vice Chairman 
Takeshima in the presence of Upper House member Hidetoshi 
Nishijima. 
 
TOKYO 00003218  006 OF 006 
 
 
 
15:21 
Met advisor Yamaguchi, followed by Cabinet Intelligence Director 
Mitani. 
 
16:03 
Met Matsumoto, Sasae and Kohno, joined in by European Affairs Bureau 
Director-General Nishizaki and North American Affairs Bureau 
Director-General Nishimiya. 
 
16:55 
Met former Deputy Chief Cabinet Secretary Iwaki and others, followed 
by Regional Bloc System Committee Chairman Sugiura and his deputy 
Sata. 
 
17:29 
Met Finance Minister Nakagawa, Economic and Fiscal Policy Minister 
Yosano, Chief Cabinet Secretary Kawamura, Vice Finance Minister 
Sugimoto and others. Nakagawa stayed on. 
 
18:02 
Attended a Council on Economic and Fiscal Policy meeting. 
 
19:11 
Met National Police Agency Director-General Yoshimura. 
 
20:08 
Returned to his private residence. 
 
Prime Minister's schedule, November 21 
 
NIKKEI (Page 2) (Full) 
November 21, 2008 
 
00:08 
Departed from Haneda Airport on a government plane to attend the 
APEC summit. 
 
SCHIEFFER