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UNCLAS SECTION 01 OF 07 TOKYO 003388 
 
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 12/12/08-1 
 
INDEX: 
 
(1) Diet passes refueling legislation to extend activities for one 
year (Nikkei) 
 
(2) Defense minister issues ASDF Iraq withdrawal order (Tokyo 
Shimbun) 
 
(3) U.S. forces asked ASDF dispatched to Iraq to add regular flights 
from Baghdad to Ali, proving that mission was to transport troops 
(Tokyo Shimbun) 
 
(4) First Japan-China-ROK summit agrees to strengthen financial 
crisis cooperation (Asahi) 
 
(5) In summit with Chinese Premier Wen, Prime Minister Aso protests 
Chinese research ships' intrusion into Japanese waters (Nikkei) 
 
(6) Interview with Democratic Party of Japan (DPJ) Vice President 
Okada: Creating a foothold with the new U.S. administration (Asahi) 
 
 
(7) Government, ruling parties to scrap bill amending Antimonopoly 
Law, resubmit new one possibly next spring (Nikkei) 
 
(8) Aso announces emergency economic plan worth 23 trillion yen to 
create jobs, assist firms' fund-raising, including measure to create 
1 trillion yen fund (Nikkei) 
 
ARTICLES: 
 
(1) Diet passes refueling legislation to extend activities for one 
year 
 
NIKKEI (Page 2) (Abridged slightly) 
December 13, 2008 
 
A bill extending the refueling mission in the Indian Ocean was 
enacted on Dec. 12 after re-adopted in the House of Representatives 
plenary session by a two-thirds majority vote from the Liberal 
Democratic Party and New Komeito. The legislation is designed to 
extend the Maritime Self-Defense Force's refueling and water-supply 
activities, scheduled to expire on Jan. 15, for another one year. 
Defining the refueling operation as the country's "minimum 
requirement" for its contribution to the war on terrorism, the 
government aimed at the law's early enactment, but Diet 
deliberations exposed a number of future challenges. 
 
The Lower House's re-adoption of the bill followed the legislation's 
failure to clear the opposition-controlled House of Councillors in 
the morning. In the wake of the enactment, Prime Minister Taro Aso 
released a statement that read: "The war on terror is an effort that 
Japan, as well, must deal with. Japan will continue to assume its 
responsibility in the international community." 
 
Following the enactment, the government intends to continue proving 
fuel and water to naval vessels of eight countries, including the 
United States and Pakistan. Since 2001, Japan has provided fuel 859 
times, totaling some 500,000 kiloliters of oil. The frequency of 
refueling and the volume provided to those countries, including the 
United States, are on the decline. 
 
 
TOKYO 00003388  002 OF 007 
 
 
A senior Defense Ministry official commented: "The refueling mission 
is at a crossroads. What Japan should do next as part of its 
international contribution continues to be a challenge." 
 
The incoming Obama administration advocates a shift from Iraq to 
Afghanistan. It may press Japan even harder to dispatch SDF troops 
to Afghanistan. The government has decided to withdraw the Air 
Self-Defense Force from Iraq before year's end. Even so, it seems 
difficult to dispatch the SDF on a new overseas mission with the 
Diet. About sending troops to Afghanistan, Defense Minister Yasukazu 
Hamada simply said to the press corps: "The refueling law has just 
cleared the Diet, so the matter is still a clean slate situation. It 
needs earnest discussion." 
 
(2) Defense minister issues ASDF Iraq withdrawal order 
 
TOKYO SHIMBUN (Page 1) (Full) 
December 13, 2008 
 
Defense Minister Yasukazu Hamada issued on Dec. 12 an order to the 
Air Self-Force to wind up its airlift operations in Iraq under the 
Iraq Special Measures Law. Some 210 ASDF personnel and three C-130 
cargo planes will return home before year's end, putting an end to 
the five years of the Ground and Air Self-Defenses' missions in Iraq 
that started in January 2004. 
 
The ASDF has been stationed in Iraq. At its early stage, the ASDF 
airlifted GSDF troops. After the GSDF withdrew from Iraq in July 
2006, the ASDF shifted its weight to the U.S. military and expand 
its airlift mission to cover Iraq's capital of Bagdad, operating 
four regular weekly flights. 
 
The ASDF has made 821 flights to airlift 46,500 persons, including 
2,800 UN workers, and 673 tons of supplies. The ASDF is also 
believed to have airlifted over 30,000 U.S. troops. In April, the 
Nagoya High Court ruled lifting armed U.S. troops to Baghdad 
unconstitutional. A senior ASDF officer said: "The question is why 
this operation is necessary in overseas activities. A good cause is 
necessary. Public support is essential." 
 
(3) U.S. forces asked ASDF dispatched to Iraq to add regular flights 
from Baghdad to Ali, proving that mission was to transport troops 
 
TOKYO SHIMBUN (Page 27) (Full) 
December 14, 2008 
 
This newspaper has learned that the Air Self-Defense Force, which 
has been carrying out operations in Iraq, was asked by the 
multinational force that includes the United States to create new 
regular flights by C-130 transport planes linking the capital city 
of Baghdad to the southern part of Ali (formerly Tallil), and that 
beginning this year, the aircraft was making one flight a week 
there. 
 
Both locations are main strategic points for U.S. forces stationed 
in Iraq. According to an ASDF crewmember, many armed U.S. soldiers 
were ferried between the two bases. This underscores the situation 
of ASDF aircraft being under the control of the U.S. forces and 
bearing the responsibility for transporting some U.S. troops. 
 
Since the Ground Self-Defense Force withdrew from Iraq at the end of 
July in 2006, the ASDF has been carrying out four or five regular 
 
TOKYO 00003388  003 OF 007 
 
 
flights a week from Kuwait by three routes: the Ali flight, Baghdad 
flight, and the Erbil flight via Baghdad. A senior ASDF officer 
clarified the situation: "Even when flights were started to Baghdad, 
we flew irregularly between Ali and Baghdad, but (starting in 2007,) 
the flights regularized with the increase in U.S. troops." 
 
Flights other than those to Erbil were "all for the multinational 
force," according to a senior Self-Defense Forces officer, and the 
ASDF planes were called "taxis" by the U.S. forces. The same ASDF 
crewmember pointed out, "The ASDF plane were used by the U.S. 
military as it wished; we were only pieces on the board." 
 
The ASDF started transport flights to Iraq in March 2004, carrying 
out 821 flights altogether and transporting 46,500 personnel and 673 
tons of cargo. Among the personnel transported were approximately 
2,800 United Nations staff, and subtracting the SDF personnel 
transported, the remaining 30,000 personnel seems to have been U.S. 
troops. 
 
The Nagoya District Court in April ruled that the ASDF flights 
transporting armed U.S. troops to combat-torn Baghdad was 
unconstitutional. 
 
(4) First Japan-China-ROK summit agrees to strengthen financial 
crisis cooperation 
 
ASAHI (Top play) (Full) 
December 14, 2008 
 
A summit of Japanese Prime Minister Taro Aso, Chinese Premier Wen 
Jiabao and Republic of Korea (ROK) President Lee Myung Bak took 
place for the first time on Dec. 13 at the Kyushu National Museum in 
Dazaifu, Fukuoka Prefecture. The three leaders agreed that the three 
countries would closely cooperate in dealing with the global 
financial crisis and North Korean issues. They also agreed to hold a 
summit annually, holding it next year in China and the year next in 
the ROK. 
 
After the summit, the three leaders signed a joint statement on a 
trilateral partnership advocating future-oriented comprehensive 
cooperation. In addition, they announced an action plan, including 
trilateral cooperation in wide-ranging areas such as politics, the 
economy and environmental protection. They also agreed to cooperate 
on disaster prevention. 
 
Although a Japan-China-ROK summit has been held eight times since 
1999 on the sidelines of international conferences, this was the 
first formal summit of leaders of the three countries. Aso stated in 
a joint press conference: 
 
"It is the first time in history for the leaders of the three 
countries to meet independently. Holding a trilateral summit 
periodically in order to step up cooperation is epoch-making 
progress contributing not only to Asia but also to the world." 
 
The U.S.-originated financial crisis was high on the agenda at the 
summit. The three leaders agreed to intensify regional cooperation 
to stabilize the international financial market. Specifically, they 
agreed to step up the Chen Mai Initiative, a network of bilateral 
currency swap in the Asian region, as well as to increase funds of 
the Asia Development Bank. They welcomed the expansion of 
currency-swap limits by the central banks of the three countries. 
 
TOKYO 00003388  004 OF 007 
 
 
 
Aso, Wen and Lee confirmed the importance of making efforts to 
increase domestic demands and growth dynamic in managing the 
economy. In a joint statement on the international finance and 
economy, stipulated their determination that the three countries 
should play a more important role, since Asian countries are 
expected to play a role as a world growth center in an effort to 
deal with the current economic downturn. 
 
The three leaders shared the view that it was regrettable that the 
six-party talks had failed to codify a verification protocol on 
North Korea's nuclear declaration. They confirmed the need for 
boosting cooperation in the six-party talks. Aso sought the 
cooperation of Wen and Lee in resolving the issue of North Korea's 
abductions of Japanese nationals, as well as in promoting 
Japan-China relations. Wen and Lee expressed their understanding. 
They reportedly did not discuss the heavy oil aid to the North, 
which the United States has decided to suspend. 
 
(5) In summit with Chinese Premier Wen, Prime Minister Aso protests 
Chinese research ships' intrusion into Japanese waters 
 
NIKKEI (Page 2) (Full) 
December 14m, 2008 
 
Prime Minister Taro Aso met for about one hour with his Chinese 
counterpart Wen Jiabao on Dec. 13 at the Kyushu National Museum in 
Dazaifu, Fukuoka Prefecture. In the meeting, Aso lodged a protest 
about two Chinese research ships having intruded into Japanese 
waters near the Senkaku Islands, telling Wen: 
 
"It is extremely regrettable. Such will adversely effect bilateral 
relations, since the incident occurred at a time when our countries 
have been making efforts to build a strategic reciprocal 
relationship." 
 
Referring to the Senkaku Islands, Wen said: 
 
"Our country's position has been consistent that they are an 
integral part of our country. We would like to resolve the issue 
through talks so as not to negatively impact on favorable bilateral 
relations." 
 
Aso asked Wen to uncover the truth as quickly as possible about such 
food safety issues as the poisoned Chinese-made frozen dumplings. 
Wen just said: "We want to maintain communication with the Japanese 
side and cooperation in the future as well." 
 
Regarding response to the global financial crisis, Aso and Wen 
shared the view that it would be important for Japan, China and 
South Korea, while boosting domestic demands, to cooperate in order 
to overcome the financial crisis. 
 
Aso said that it was regrettable that the six-party talks on North 
Korea's nuclear ambitions ended without producing any progress. Aso 
sought cooperation from China, chair of the six-party talks, f on 
the issue of Japanese nationals abducted by the North. 
 
(6) Interview with Democratic Party of Japan (DPJ) Vice President 
Okada: Creating a foothold with the new U.S. administration 
 
ASAHI (Page 4) (Full) 
 
TOKYO 00003388  005 OF 007 
 
 
December 13, 2008 
 
DPJ Vice President Katsuya Okada returned to Japan after a visit to 
the United States in which he met over thirty persons in political 
and business circles. His aim in traveling to the U.S. this time was 
to prepare for a government change in Japan after the next Lower 
House election by laying down a strategy for rebuilding Japan-U.S. 
relations with the incoming Obama administration. 
 
Interviewed in New York by Hisanori (?) Arima 
 
-- What was your motive for visiting the U.S.? 
 
"This was the first step in building a relationship with the Obama 
administration and the U.S. Democratic Party to prepare for when 
there is a change of government in Japan and (the DPJ) is the party 
in power." 
 
 -- You met with think-tank researchers and others from the 
Democratic Party in Washington? 
 
"Although I could not meet anyone from the transition team of the 
new administration, I felt the high expectations toward Mr. Obama. 
At the same time, there was a fairly strong perception that Japan 
had supported the Republican administration. I transmitted that many 
Japanese were happy from the bottom of their hearts about the 
launching of the Obama administration." 
 
-- The DPJ has been against continuing the refueling mission in the 
Indian Ocean. Were you asked about what Japan would do to assist 
Afghanistan? 
 
"I proposed that Japan might be able to play a mediating role in 
bringing about conciliation (with the Taliban). Since Japan is not 
dispatching any troops, it could contribute in that way." 
 
-- Is Japan's DPJ giving any consideration to the Green New Deal 
initiative that Mr. Obama is promoting? 
 
"A number of us have discussed giving consideration based on linkage 
between the economic crisis and the global warming problem. I have 
said: 'This is a proper approach. Japan, too, has carrying out many 
public works projects but without effect.' So for Japan, too, it is 
of course essential." 
 
-- How do you plan to build ties to the Obama administration? 
 
"During the Bush-Koizumi era, the Japan-U.S. relationship relied on 
a very small number of Japan experts. There is a risk involved if 
exchanges are not broad in scope. I first would build a stable 
foothold by establishing ties with aides of persons playing 
important roles in the Obama administration. The party must 
accomplish this goal." 
 
(7) Government, ruling parties to scrap bill amending Antimonopoly 
Law, resubmit new one possibly next spring 
 
NIKKEI (Page 2) (Slightly abridged) 
December 14, 2008 
 
The government and the ruling parties decided yesterday to withdraw 
a bill amending the Antimonopoly Law now on the Diet agenda, instead 
 
TOKYO 00003388  006 OF 007 
 
 
of carrying it over to the next Diet session. The decision stems 
from the judgment that the bill, which including such key measures 
as an increase in surcharge payments, will unlikely be enacted in 
the next ordinary Diet session since opposition parties are against 
it. The government will rewrite some parts and submit a new bill to 
the Diet possibly next spring. 
 
The current bill proposes surcharges be raised 1.5 fold over the 
current levels on companies responsible for bid-rigging arrangements 
or forming cartels. It also calls for upgrading a system to reduce 
or exempt surcharge payments for self-whistle blowers. No progress 
has been made in negotiations on revising the draft amendment 
between the ruling camp and the Democratic Party of Japan, which has 
labeled as insufficient the measures proposed in the amendment to 
reform the current umpire system under which the Fair Trade 
Commission judges the appeals by companies against its punishment on 
them. Deliberations on the bill have been carried over from the 
ordinary Diet session this year. 
 
The introduction of the hikes in administrative surcharges is 
expected to be "delayed by about one year from the initially 
envisioned spring of next year," according to an executive ruling 
party member. 
 
(8) Aso announces emergency economic plan worth 23 trillion yen to 
create jobs, assist firms' fund-raising, including measure to create 
1 trillion yen fund 
 
NIKKEI (Top Play) (Excerpts) 
December 13, 2008 
 
Prime Minister Taro Aso announced at a press conference at the Prime 
Minister's Office yesterday a plan to draw up emergency measures to 
deal with the worsening job market and the recent economic turndown. 
The package will include a measure to create an economic emergency 
fund worth 1 trillion yen that the government can use on its 
discretion when the economic situation unexpectedly deteriorates. 
The total value of projects proposed in this emergency plan will be 
approximately 23 trillion yen, including those already in the 
earlier-announced additional economic package. Even while setting 
forth proactive fiscal disbursements, Aso expressed an intention to 
hike the consumption tax in fiscal 2011 if the economy turns around 
by that time. 
 
The new package, called "an emergency plan to protect people's 
livelihoods," includes measures to supplement the additional package 
(worth about 27 trillion yen) announced in late October to deal with 
the ongoing financial crisis. If duplicated projects are excluded, 
the total value of the projects in both packages will be about 44 
trillion yen. 
 
The new package features measures to improve the aggravating job 
market and to ease concerns growing among companies about procuring 
funds. Aso said in the press conference: "I will make utmost efforts 
so that Japan will be able to emerge from the recession the earliest 
among the industrialized countries." The government will map out 
specific measures later this year. 
 
The necessary revenue sources will be raised from the second 
supplementary budget for this fiscal year and the initial budget for 
next fiscal year. The government envisions the following projects 
that are viable even before the budget bill is enacted: (1) 
 
TOKYO 00003388  007 OF 007 
 
 
low-interest loans to medium to small-sized real estate dealers by 
Japan Housing Finance Agency; and (2) improved consultation and 
instruction services regarding cases of companies' cancellation of 
job offers. 
 
Aso indicated plans to use reserves in special accounts to cover a 
shortfall of fiscal sources. Keeping expected drops in corporate tax 
and other revenues under the current business recession, Aso hinted 
at issuing deficit-covering bonds, remarking: "We must consider 
various options from now." 
 
SCHIEFFER