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UNCLAS SECTION 01 OF 10 TOKYO 003279 
 
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 12/02/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Political agenda: 
4) Public turns cold eyes on Prime Minister Aso in Fuji-Sankei poll: 
Cabinet support plunges 17 points to 27.5 PERCENT , entering "danger 
zone"  (Sankei) 
5) Aso on poor ratings in polls: I take it humbly  (Nikkei) 
6) Liberal Democratic Party (LDP) support for Prime Minister Aso 
also cooling down  (Tokyo Shimbun) 
7) LDP senior members one after the other criticize Aso  (Yomiuri) 
8) Democratic Party of Japan President Ozawa: Aso administration 
won't last too much longer  (Tokyo Shimbun) 
9) LDP set to adopt bill revising postal privatization  (Yomiuri) 
 
10) ASEAN-Japan EPA goes into effect today, designed to accelerate 
an international division of labor among the countries  (Yomiuri) 
 
U.S.-Japan ties: 
11) President-elect Obama announces foreign-policy team, ushering in 
period of review of U.S. relations with Japan  (Mainichi) 
12) Senator Daniel Inouye, who recently visited Japan, could serve 
as a channel to the Obama administration  (Yomiuri) 
 
13) Following arrival in Yokosuka of the nuclear-powered carrier USS 
George Washington, market developing quietly for 
radiation-protection materials  (Tokyo Shimbun) 
 
14) G-8 ministerial meetings called off one after another; Japanese 
diplomacy affected by conflict between Russia and U.S., European 
countries (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: 
Japanese auto sales plunge 27.3 PERCENT  to hit 39-year low in 
November: Margin of decline twice that of last month 
 
Nikkei: 
Domestic credit markets tighten as interbank rates soar, offsetting 
effects of rate cut 
 
Sankei: 
Cabinet approval rating drops to 27.5 PERCENT , according to joint 
poll by Sankei and FNN 
 
Tokyo Shimbun: 
Health Ministry to take comprehensive measures for juvenile 
dementia, starting next fiscal year 
 
Akahata: 
Scrap law to help physically handicapped people become financially 
independent and set up new law 
 
2) EDITORIALS 
 
Asahi: 
 
TOKYO 00003279  002 OF 010 
 
 
(1) Welfare annuity data manipulation: All-out effort to bail out 
victims needed 
(2) New strains of flue: How can pandemic outbreak be constrained? 
 
Mainichi: 
(1) UN climate talks open in Poland: Deepen discussion in run-up to 
final negotiations 
(2) Delay in reform of Cabinet Personnel Bureau unavoidable 
 
Yomiuri: 
(1) Participation of victims in trials: New system should help shed 
light on truth 
(2) It is important to manage employment system in flexible manner 
 
Nikkei: 
(1) COP14 kicks off in Poland: We hope to see progress 
(2) South Korea should not change its North Korea policy 
 
Sankei: 
(1) Decline in cabinet support ratings: Reconfirm responsibility of 
administration 
(2) Occupation of Thai airport: Reconciliation befitting country of 
smiles urged 
 
Tokyo Shimbun: 
(1) Meeting to combat global warming: Signs of turnaround in sight 
(2) Employment anxiety spreading: Hurry to take measures for 
nonpermanent workers 
 
Akahata: 
(1) Iraq and Afghanistan: We urge review of war on terror 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 1 
 
NIKKEI (Page 2) (Full) 
December 2, 2008 
 
07:33 
Took a walk around his private residence in Kamiyama-cho. 
 
10:13 
Attended a meeting commemorating the beginning of digital broadcasts 
at Keio Plaza Hotel in Nishi-Shinjuku. 
 
11:02 
Visited the general store Shibuya Loft. 
 
12:21 
Held an informal meeting with reporters at the Kantei. 
 
13:35 
Met U.S. Senator Daniel Inouye and others. 
 
14:39 
Met UNESCO Executive Director Matsuura and Permanent Mission of 
Japan Yamamoto. 
 
15:18 
Met METI Economic and Industry Policy Bureau Director General 
Matsunaga. Later, met Administrative Expenditures Checkup Committee 
 
TOKYO 00003279  003 OF 010 
 
 
Chairman Motegi. 
 
16:05 
Met Nemuro Mayor Hasegawa and other members of the group calling for 
return of the Northern Territories. 
 
16:40 
Met at the Imperial Hotel with Economy, Trade and Industry Minister 
Nikai, Japan Business Federation Chairman Mitarai, and others. 
Attended a ceremony commemorating the 150th anniversary of the 
establishment of the modern steel industry. 
 
17:09 
Met Lower House member Yoshinobu Shimamura in the Diet Building. 
Later, attended an LDP executive meeting. 
 
18:01 
Met at the Kantei with Mitarai, Japan Chamber of Commerce and 
Industry Chairman Okamura, and others, with Health, Labor and 
Welfare Minister Masuzoe, Nikai and others. 
 
19:12 
Met Secretary General Hosoda and deputy secretaries general Ishihara 
and Hayashi at his official residence. 
 
20:56 
Returned to his private residence. 
 
4) Poll: Cabinet support down to 27.5 PERCENT 
 
SANKEI (Top play) (Abridged) 
December 2, 2008 
 
The rate of public support for Prime Minister Taro Aso's cabinet 
fell below 30 PERCENT , the Sankei Shimbun found yesterday from its 
joint poll with Fuji News Network (FNN). The Aso cabinet's approval 
rating was 27.5 PERCENT , showing a drop of more than 17 percentage 
points from its inaugural 44.6 PERCENT  rating in late September. 
The disapproval rating rose to 58.3 PERCENT , topping the approval 
rating. The survey clearly shows the public's severe eye toward the 
prime minister. 
 
In the survey, respondents were asked if they appreciated the Aso 
cabinet. To this question, 71.9 PERCENT  answered "no" when they 
were about leadership. When it comes to what the prime minister says 
and does, 78.4 PERCENT  gave negative answers. When asked about 
economic measures and foreign policy, affirmative answers accounted 
for only 20 PERCENT  to 30 PERCENT . In addition, respondents were 
also asked if they thought Aso's advocacy of cash payouts would be 
appropriate as an economic stimulus. To this question, "yes" 
accounted for only 18.3 PERCENT , with "no" reaching 76.9 PERCENT . 
 
Respondents were further asked which one between Aso and Democratic 
Party of Japan (Minshuto) President Ichiro Ozawa they thought was 
more appropriate for prime minister. Ozawa, who was overwhelmed by 
Aso in the past polls, stood at 32.5 PERCENT , 1 point higher than 
Aso. 
 
The survey was conducted across the nation on Nov. 29-30 after the 
Nov. 28 Diet debate between Aso and Ozawa. Answers were obtained 
from a total of 1,000 persons, who were chosen from among men and 
women aged 20 and over. 
 
TOKYO 00003279  004 OF 010 
 
 
 
5) Prime Minister Aso on poor ratings in polls: I take it humbly 
 
NIKKEI (Page 2) (Full) 
December 2, 2008 
 
Yesterday many in the ruling and opposition parties reacted to the 
sharp plunge in the support rate for Prime Minister Taro Aso's 
cabinet in a poll jointly conducted by the Nihon Keizai Shimbun and 
TV Tokyo. Aso told the press corps at the Prime Minister's Official 
Residence (Kantei): "I have to humbly take the public's criticism." 
Hidehisa Otsuji, chairman of the Liberal Democratic Party's caucus 
in the House of Councillors, said in a strong tone: "The figure is 
serious. The Kantei and the ruling coalition should support the 
prime minister so that he will be able to display his real value." 
 
Meanwhile, former LDP Secretary General Hidenao Nakagawa commented: 
 
"Conversely, 60 PERCENT  to 70 PERCENT  urged him to live up to 
public expectations. I don't mean to drag him down, but I want him 
as the representative of the people to carry out politics with 
plunk, zeal and readiness." 
 
A senior New Komeito official made a specific request of the prime 
minister, saying: "Rather than going on the defensive, Mr. Aso 
should show his true character." 
 
DPJ Diet Affairs Committee Chairman Kenji Yamaoka took the view that 
the Aso administration would reach a dead end. He said: "I assume 
that some LDP lawmakers might leave the party at around the end of 
the year." 
 
6) Scope column: LDP support for Aso cooling down; Hidenao Nakagawa 
to form parliamentary group 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
December 2, 2008 
 
The unity of the ruling Liberal Democratic Party (LDP) has been 
weakening due to dissatisfaction toward Prime Minister Taro Aso's 
careless remarks and his management of economic measures. While 
junior and mid-level lawmakers' pressure on Aso is growing stronger, 
some senior LDP members are criticizing such a move. LDP lawmakers' 
support for Aso is now cooling down although he only took office two 
months ago. Conflict is intensifying in the LDP. 
 
A group of junior and mid-level lawmakers, including former Chief 
Cabinet Secretary Yasuhisa Shiozaki, who called on the government to 
submit a second supplementary budget for fiscal 2008 to the current 
Diet session, has been actively making its own independent move. 
 
Shiozaki and former administrative reform ministers Yoshimi Watanabe 
and Toshimitsu Motegi held a meeting also on the night of Nov. 26, 
and the three agreed to continue to propose Aso policy measures for 
economic and social security issues. On Nov. 21 when the group 
called on the Prime Minister to submit the second extra budget to 
the ongoing session, the number of the members was 24. After that, 
about 10 lawmakers reportedly asked to join the group, according to 
group members. 
 
Former LDP Secretary General Hidenao Nakagawa, who draws a line with 
Aso regarding economic policy, will form a parliamentarian group on 
 
TOKYO 00003279  005 OF 010 
 
 
Dec. 5. Watanabe and former Defense Minister Yuriko Koike are 
expected to join the group. 
 
On his website, Nakagawa expressed his opposition to a policy of 
curbing the natural increase in social security costs by 220 billion 
yen. Although he emphasizes priority on policy over politics, there 
seems to be no doubt that his motives are suspicious. 
 
However, a senior LDP official, who has close ties to Aso, has 
strongly criticized anti-Aso moves, arguing: "In the presidential 
election, a majority of the LDP lawmakers supported Mr. Aso, and the 
Aso cabinet was inaugurated. They should be aware of what they 
should or should not do." Aso's aide is alarmed by Nakagawa's move, 
saying: "It's an odd parliamentary group." 
 
7) LDP leadership alarmed at spread of criticism against Aso, seeing 
lawmakers forming new groups 
 
YOMIURI (Page 4) (Excerpts) 
December 2, 2008 
 
Aides to Prime Minister Aso and Liberal Democratic Party (LDP) 
executives are now worrying about a spread of moves against Aso 
within the party. Aso was expected to be a "face" of the next House 
of Representatives election because of his popularity among the 
general public, but an increasing number of mid-ranking and junior 
party members have become critical of the prime minister due to his 
series of gaffes. Meanwhile, some lawmakers have reacted to such 
criticism of the administration. An awkward atmosphere is thus 
sweeping across the party. 
 
Public support for Prime Minister Aso dropped 17 percentage points 
from the previous poll in late October to 31 PERCENT  in an opinion 
survey conducted by the Nikkei and TV Tokyo. Asked about this poor 
result last night, Aso told reporters at the Prime Minister's 
Office: "I think we should accept public criticism with humility." 
 
But former State Minister in Charge of Administrative Reform Yoshimi 
Watanabe, a leading critic of Aso, said before reporters in Tokyo 
last night: "(The prime minister) has lost (political ground). 
People are now feeling uneasy. It would be the best way for the 
government to hold a general election at an early date and form a 
crisis-management cabinet." 
 
The party leadership has been alarmed at moves by "a group of 
like-minded lawmakers to seek the smooth implementation of policy 
measures" established last month and composed of 24 mid-ranking and 
junior party members, including Watanabe and former Chief Cabinet 
Secretary Yasuhisa Shiozaki. The group proposed to the prime 
minister that a fiscal 2008 second supplementary budget bill be 
submitted to the current Diet session, but their request was 
rejected. The group intends to proactively make policy proposals. 
 
Former Secretary General Hidenao Nakagawa, who distances himself 
from Aso, also plans to launch a parliamentary league on reforming 
the nation's social security system on Dec. 5. Since Watanabe and 
former Defense Minister Yuriko Koike, who is close to Nakagawa, have 
decided to join the new group, observers have seen it as an anti-Aso 
group. 
 
8) DPJ President Ozawa: Aso administration will not last long 
 
 
TOKYO 00003279  006 OF 010 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 2, 2008 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa told 
reporters yesterday in Kumagaya City, Saitama Prefecture: "I wonder 
how long the Aso administration will exist as is. I don't think it 
will last long." He took the view that Prime Minister Taro Aso would 
be forced to carry out an early dissolution of the House of 
Representatives or to resign en masse with his cabinet. 
 
Ozawa also said: 
 
"If the Aso cabinet resigns en masse, it will be impossible for the 
Liberal Democratic Party and New Komeito to take the reins of 
government again. If the next cabinet conducts a general election, 
many parties (including the LDP and New Komeito) will be able to 
reach an agreement." 
 
9) LDP to vote on bill on reexamining postal privatization, aiming 
at enactment of financial bill 
 
YOMIURI (Page 4) (Excerpts) 
December 2, 2008 
 
A vote is now likely to be taken in the current Diet session on a 
bill to reexamine postal privatization submitted by the Democratic 
Party of Japan (DPJ), the Social Democratic Party, and the People's 
New Party (PNP). The bill proposes freezing the sale of 
government-held shares in Japan Post group companies. It was adopted 
in the House of Councillors in December of last year, but no 
conclusion has been reached in the House of Representatives. 
 
Liberal Democratic Party Diet Affairs Committee Chairman Tadamori 
Oshima met with his counterparts Kenji Yamaoka of the DPJ and 
Masaaki Itokawa of the PNP in the Diet Building yesterday and 
indicated that the LDP would agree to take a vote on the bill in the 
ongoing Diet session. He said: "We will not take a strategy to kill 
the bill by means of carrying deliberations over to the next session 
or reaching no conclusion at the Diet Affairs Committee." The LDP is 
aiming to pave the way for a vote on a bill amending the Law for 
Strengthening Financial Functions. But Oshima stopped short of 
referring to when the bill would be voted on, just saying: 
"Consultation is now underway in the LDP." 
 
Taking into consideration the PNP's insistence on a vote on the said 
bill during the current session, the DPJ has asked the ruling camp 
to vote on the bill prior to a vote on the financial bill. 
 
10) EPA with ASEAN goes into effect: Pact to boost division of labor 
in region; Challenge is enactment of EPA in entire region at early 
date 
 
YOMIURI (Page 9) (Full) 
December 2, 2008 
 
The Economic Partnership Agreement with the Association of Southeast 
Asian Nations (ASEAN) went into effect on December 2. The pact is 
expected to boost Japan's auto parts exports and make the division 
of labor in the region easier. However, in the initial phase, the 
agreement has been enacted only with Singapore, Vietnam, Laos and 
Burma. In order for the multilateral pact to function, it is 
essential for agreements with the remaining six countries, including 
 
TOKYO 00003279  007 OF 010 
 
 
Thailand and Malaysia, to be enacted at an early date. 
 
This is the first enactment of a multilateral EPA for Japan. The EPA 
with all ASEAN members will serve to complement bilateral EPAs. 
Under the agreement, Japan will scrap within 10 years 93 PERCENT  of 
tariffs imposed on the total value of imports, such as shrimp and 
tropical fruits, except for rice and dairy products. ASEAN will make 
91 PERCENT  of tariffs on the total value of imports, such as auto 
parts, duty-free. 
 
For instance, the duty-free system or low tariff rates will be 
applied to a case in which Japan exports liquid crystal panels to 
Malaysia to be assembled there and exports the finished products to 
Thailand. Japanese companies would find it easier to set up a 
labor-division system in the region, including building assembly 
plants there. 
 
Among 10 ASEAN members, bilateral EPAs with five countries, 
including Malaysia, Thailand and Indonesia, have already been 
enacted. Japan has signed an EPA with the Philippines. A basic 
agreement has been reached with Vietnam. 
 
However, apart from bilateral EPAs, it is necessary for each country 
to go through procedures for the enactment of the EPA involving all 
ASEAN members. All member nations have already signed the EPA. 
However, procedures for enactment are way behind due to each 
member's domestic situation. 
 
The likelihood is that the EPA with all ASEAN members will be not 
enacted until at least next year due to the impact of the unstable 
political situation in Thailand. 
 
Japanese companies will not be able to receive full benefits of the 
pact until it goes into effect in Thailand, Malaysia and Indonesia, 
where Japanese companies' auto and home electronics plants are 
centered. 
 
Given the situation in which it is already possible to distribute 
some products, such as LCDs, duty free in ASEAN, where deregulation 
is being promoted, what effect the EPA will bring about is unclear 
under the present circumstance, as chief researcher Junici Sugawara 
at the Mizuho Research Institute noted. 
 
11) Obama's foreign policy team announced; Time for review of 
Japan-U.S. relations 
 
MAINICHI (Page 2) (Abridged slightly) 
December 2, 2008 
 
Katsumi Kawakami, Ryo Matsuo 
 
In reaction to the announcement of the lineup of the foreign policy 
team for the administration of U.S. President-elect Barack Obama, 
the Japanese government intends to convey its concern for the 
possible deterioration of Japan-U.S. relations to the new U.S. 
administration at an early stage, according to Administrative 
Vice-Foreign Minister Mitoji Yabunaka. Looming in the backdrop is 
Tokyo's alarm at the assumption of the post of secretary of state by 
Hillary Clinton, who seems to be placing high priority on China in 
Asian diplomacy. At the same time, it is a fact that Japan-U.S. 
relations which have relied heavily on the Koizumi-Bush personal 
relationship require a review at this point in time. Japan's 
 
TOKYO 00003279  008 OF 010 
 
 
capability to build new cooperative relations centering on the 
environment, energy and other areas will be tested. 
 
A senior government official who recently visited the United States 
said: "The United States' interest is centered on the rise of 
fundamentalist Muslim forces, such as India, and Russia." East Asia, 
including Japan, is faced with unstable factors, such as the North 
Korean nuclear issue and China's growing defense spending. The 
Japanese government is strongly alarmed that a drop in the United 
States' interest in East Asia might end up destabilizing the 
region. 
 
Prime Minister Taro Aso had a telephone conversation with 
President-elect Obama on Nov. 7 in which the two leaders agreed to 
strengthen the Japan-U.S. alliance. Obama also expressed his 
eagerness to build personal relations of trust. Democratic Senator 
Daniel Inouye, who is of Japanese descent, met with Prime Minister 
Aso yesterday, and noted: "Mr. Obama will continue friendly 
U.S.-Japan relations." 
 
Dealing with President Obama will not be so easy, however. Prime 
Minister Aso's wish to meet with him in November did not 
materialize. Compared with the Republican administration, the new 
administration might be less intimate with Japan. 
 
Moreover, Hillary Clinton, who will become the new secretary of 
state, clearly places high priority on China. Japan is alarmed at a 
possible repeat of the so-called Japan- passing syndrome it had 
experienced during the Clinton administration (1993-2001). 
 
Vice-Foreign Minister Yabunaka in a press conference yesterday 
strongly denied the view that the next U.S. administration would 
slight Japan, saying: "The United States thinks the alliance and 
cooperation with Japan is important. Whoever becomes the new 
secretary of state, there is no concern that (the United States) 
will bypass Japan." 
 
At the same time, the Aso administration is quickly losing momentum 
in the ruling camp. It is questionable if the Aso administration can 
immediately respond to pressing issues, such as the financial 
crisis, in concert with the new U.S. administration due to be 
launched in January. Given the likelihood that the United States 
will lean toward China, a government official has begun taking a 
precaution, saying: "It is desirable for Japan, as well, for the 
United States to strengthen relations with China." 
 
Further, there is a possibility that Secretary of Defense Robert 
Gates, who will retain his post, will ask Japan for new cooperation 
other than the refueling mission in the Indian Ocean. 
 
12) Presence of Senator Inouye to become increasingly important as 
"go-between" for Japan 
 
YOMIURI (Page 4) (Full) 
December 2, 2008 
 
Visiting Senator Daniel Inouye of the U.S. Democratic Party met with 
Prime Minister Aso at the Prime Minister's Office yesterday 
afternoon. The Japanese-American senator is a Democratic heavyweight 
and is known as one of the foremost pro-Japanese members in U.S. 
Congress. His Japan visit is aimed to exchange views with Japanese 
leading figures prior to the launch of an Obama administration. 
 
TOKYO 00003279  009 OF 010 
 
 
 
In meeting with Aso, Inouye emphasized: "Japan-U.S. relations will 
remain firm under the Obama administration." Aso replied: 
"President-elect Obama fully knows of Asian affairs. I hope my 
administration and the next U.S. administration will strengthen 
Japan-U.S. relations." 
 
As a Liberal Democratic Party member said: "Japan has few 
connections with U.S. Congress, in particular, with the Democratic 
Party," establishing a network of personnel ties with the Obama 
administration is one of Japan's top priority tasks. The presence of 
Inouye, who is expected to assume in January the chairmanship of the 
Appropriations Committee with enormous authority in budgetary 
deliberations in the U.S. Senate, will become increasingly important 
for Japan. 
 
13) Radiation preventive drugs in Yokosuka stores 
 
TOKYO SHIMBUN (Top play) (Abridged) 
Eve., December 1, 2008 
 
In Kanagawa Prefecture's Yokosuka City, where the USS George 
Washington, a nuclear-powered aircraft carrier of the U.S. Navy, is 
based, stable iodine tablets, which are said to be effective to 
prevent radiation in nuclear disasters, have been sold since October 
this year after the carrier's arrival. Yokosuka City stores stable 
iodine tablets in preparation for nuclear disasters. However, the 
Health and Welfare Ministry bans them from being advertised. As it 
stands, the city remains unable to inform its residents of the 
tablets in stores. 
 
Yokosuka City, which stores about 300,000 stable iodine tablets, is 
prepared to distribute them to its residents at refuges should a 
disaster occur in a nuclear-powered ship's accident. However, the 
Nuclear Safety Commission of the government notes that the efficacy 
of stable iodine tablets will decrease six hours after taking them. 
A group of local residents therefore persuaded local drugstores to 
stock stable iodine tablets, emphasizing the need for local people 
to keep them at their homes. Several stores agreed and began selling 
the tablets. 
 
But the Health and Welfare Ministry classifies stable iodine tablets 
as medicine for hospital use. The ministry allows drugstores to sell 
the tablets to a minimum necessary extent through a pharmacist over 
the counter. In addition, the ministry prohibits advertisements. 
"We're not allowed to advertise, so we have no choice but to wait 
until people who know this to come," said a pharmacist at a 
drugstore that has started selling the tablets. 
 
Municipalities with nuclear power plants store stable iodine 
tablets, based on the Nuclear Safety Commission's disaster 
prevention guidelines for nuclear facilities. Some municipalities 
act as go betweens for drugstores and residents. 
 
14) G-8 ministerial meetings called off one after another; Japanese 
diplomacy affected by conflict between Russia and U.S., European 
countries 
 
NIKKEI (Page 2) (Abridged slightly) 
December 2, 2008 
 
As the chair of this year's Group of Eight (G-8) Summit, Japan was 
 
TOKYO 00003279  010 OF 010 
 
 
scheduled to host many G-8 ministerial meetings before the end of 
the year. But they have been effectively called off one after 
another. Although the government cited the global financial crisis 
and other factors, the cancellations are in fact ascribable to the 
reluctance of the United States and some European countries that 
have been increasingly at odds with Russia since the Georgia 
conflict. The conflict between the two sides has taken a toll on 
Japanese diplomacy. 
 
Japan was scheduled to host a G-8 energy forum and a G-8 
agricultural ministerial before year's end based on an agreement 
reached at the Lake Toya Summit in July. But the government has 
decided to postpone them for the time being. The chair of the summit 
will shift to Italy in January. As such, even if the timetables are 
worked out, it would be difficult for Japan to host those events. 
 
A government official explained why it has given up hosting the 
events: "Many cabinet ministers would not be able to attend them due 
to the drastically changed global economy triggered by the financial 
crisis and the international political situation." 
 
According to some government sources, however, the United States and 
some European countries have asked Japan to put off those events 
with an eye on the conflict with Russia over Georgia and other 
matters. They also indicated that France, the chair of the European 
Union (EU), and UK were also reluctant to attend the events. 
 
SCHIEFFER