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UNCLAS SECTION 01 OF 10 TOKYO 003427 
 
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 12/17/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Senior State Department official expresses hope that Japan will 
contribute to Afghan reconstruction by sending civilians to assist 
(Mainichi) 
5) MSDF Aegis ship approved for being mounted with MD intercept 
equipment, despite recent test failure  (Nikkei) 
6) Under unofficial ROE, ASDF assigned to Iraq were allowed to 
return fire if C-130 had emergency landing and was in danger  (Tokyo 
Shimbun) 
7) Government view that use of weapons by SDF against pirates in 
waters off Somalia would be constitutional  (Asahi) 
 
8) ESTA: Despite visa waiver, Japanese traveling to U.S. would be 
rejected unless prior approval obtained by Internet  (Sankei) 
 
Economy: 
9) Mid-term tax program draft will contain mention of consumption 
tax hike in 2011 as Prime Minister Aso wanted  (Yomiuri) 
10) New Komeito objects to inclusion of consumption tax hike mention 
in tax program  (Mainichi) 
 
Political agenda: 
11) Last days of the current Diet session finds atmosphere tense 
between ruling and opposition camps  (Tokyo Shimbun) 
12) Democratic Party of Japan decides to put off planned filing of 
censure motion against the prime minister  (Tokyo Shimbun) 
13) Cabinet minister Amari in interview sees possibility of early 
cabinet shuffle  (Tokyo Shimbun) 
14) New Komeito unhappy with surprising remark by LDP election chief 
Koga seen as rejecting election cooperation between the two parties 
(Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Mainichi: 
Keidanren reluctant to hike wages, weakens job-security policy 
 
Yomiuri & Sankei 
Government's mid-term program specifies consumption tax hike in 
fiscal 2011 
 
Nikkei: 
Government to curb social security spending by 20 billion yen in 
real terms as result of reduced amount covered by reserves 
 
Tokyo Shimbun: 
Rules of engagement for ASDF operations in Iraq specify weapons-use 
procedures on assumption of emergency landing 
 
2) EDITORIALS 
 
Asahi: 
(1) Enact employment bills in current Diet session 
(2) Countries must make efforts to move WTO negotiations forward 
 
TOKYO 00003427  002 OF 010 
 
 
 
Mainichi: 
(1) Tax reform: Concealing tax increases an act deception 
(2) Introduction of compensation system for obstetric patients a 
step forward but contains many problems 
 
Yomiuri: 
(1) Deepen debate on making 18 the age of majority 
(2) Policy on spring wage offensive: Labor and management should try 
to overcome difficult situation 
 
Nikkei: 
(1) Labor and management should step up efforts to improve labor 
market 
(2) Discuss safety net in the event 18 is made age of majority 
 
Sankei: 
(1) Spring wage offensive: Labor and management must cooperate for 
job security 
(2) Take steps to upgrade moral education 
 
Tokyo Shimbun: 
(1) Keidanren's reluctant stance about hiking wages unhelpful 
(2) New Thai government urged to settle conflict among people 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 16 
 
NIKKEI (Page 2) (Full) 
December 17, 2008 
 
09:01 
Attended a cabinet meeting. METI Minister Nikai stayed on. 
 
10:57 
Met at the Kantei LDP Policy Research Council Chairman Hori, his 
deputy Sonoda, road-related revenues general spending project team 
chair Tanigaki, and MLIT Minister Kaneko. 
 
11:56 
Had a lunch with LDP first-term lawmakers in the presence of Deputy 
Chief Cabinet Secretary Matsumoto. Chief Cabinet Secretary Kawamura 
joined in. 
 
13:11 
Met High Energy Acceleration Research Organization Professor 
Emeritus Makoto Kobayashi in the presence of MEXT Minister Shionoya. 
Afterward met Japan Association of National Universities Chairman 
Komiyama and Federation of Japanese Private Colleges and 
Universities Associations Chair man Anzai. 
 
13:58 
Met Economic and Fiscal Policy Minister Yosano and Assistant Chief 
Cabinet Secretary Fukuda. 
 
15:01 
Met Ocean Policy Research Foundation President Akiyama, followed by 
Cabinet Councilor Toyoda, in the presence of Vice-Foreign Minister 
Yabunaka, Vice METI Minister Mochizuki, in the presence of Deputy 
Vice-Minister Ishige. 
 
 
TOKYO 00003427  003 OF 010 
 
 
16:03 
Met Reform Club Representative Watanabe and others, followed by 
Moroccan Ambassador to Japan Lecheheb in the presence of MHLW 
Minister Masuzoe. Afterward, met Kawamura. 
 
17:01 
Attended a Council on Economic and Fiscal Policy meeting. 
 
17:34 
Met Kawamura, followed by Finance Minister Nakagawa, Vice Finance 
Minister Sugimoto and Budget Bureau Director General Tango. 
 
18:33 
Met Defense Parliamentary Secretary Takeda and others. 
 
19:08 
Met senior vice ministers in the presence of Kawamura, Matsumoto and 
Konoike. 
 
20:59 
Met Matsumoto at an Imperial Hotel bar. 
 
23:33 
Returned to his private residence in Kamiyamacho. 
 
4) Senior U.S. official expresses hope for Japan's civilian 
contributions to Afghanistan 
 
MAINICHI (Page 2) (Abridged slightly) 
December 17, 2008 
 
Masaya Oikawa, Washington 
 
Department of State Japan Desk Director Daniel Russel held a press 
conference at the Foreign Correspondents' Club in Washington on Dec. 
¶15. Touching on Japan's contributions to Afghanistan, he expressed 
hope for the dispatch of civilians in such areas as police, 
construction, education, and medical services. Given the incoming 
Obama administration's clear indication that it will put high 
priority on Afghanistan, there is a possibility that further 
contributions from Japan will become a focal point. 
 
Regarding Japan's future contributions, Director Russel said: "The 
United States and Japan are continuously discussing the matter. What 
is necessary depends on Afghanistan's needs rather than what is 
requested by the United States." He also indicated that the dispatch 
of civilians in a wide range of fields must be discussed, citing 
police officers, construction workers, teachers and nurses as 
specialists needed in Afghanistan. 
 
5) MSDF authorizes Aegis intercept system 
 
NIKKEI (Page 2) (Full) 
December 17, 2008 
 
The Maritime Self-Defense Force has now authorized an intercept 
system with the Standard Missile 3 (SM-3) mounted on its 
Aegis-equipped destroyer Chokai, MSDF Chief of Staff Keiji Akahoshi 
told a press conference yesterday. In November, the MSDF failed in 
an intercept test off Hawaii. "There was no problem with the ship's 
system," Akahoshi said. 
 
 
TOKYO 00003427  004 OF 010 
 
 
6) ASDF anticipated returning fire after emergency landing 
 
TOKYO SHIMBUN (Top play) (Full) 
December 17, 2008 
 
The Air Self-Defense Force, which conducted airlift activities in 
Iraq under a law for special measures to assist with Iraq's 
reconstruction, had set weapons use guidelines in its rules of 
engagement (ROE), sources revealed yesterday. In other words, the 
ASDF had anticipated case where its cargo planes, which are supposed 
to have flown in 'noncombat areas,' were shot down and could no 
longer fly. This shows a discrepancy between the law and the actual 
activities. 
 
The ROE were laid down in November 2003 before the Self-Defense 
Forces' Iraq dispatch. It stipulated what to do after a C-130 
transport plane's emergency landing, anticipating a case where the 
plane is surrounded or plundered. 
 
In the case of an emergency landing, ASDF crew members are not 
allowed to use weapons if they are only surrounded. The ROE allows 
them to use weapons if and when they or their aircraft is endangered 
and they have no choice but to break through the encirclement. In 
the case of pillage after an emergency landing, the ROE allows ASDF 
members to use weapons when they feel endangered even if the enemy 
has no weapons. 
 
The ROE also anticipate a case where ASDF members find it impossible 
to defend their aircraft even by returning fire. In this case, the 
ROE stipulate that the ASDF crew should give up their cargo plane 
and evacuate. 
 
The Iraq Special Measures Law stipulates SDF activities in 
"noncombat areas." Regarding airlift activities in Iraq, the 
government has explained that air routes and airports are noncombat 
areas. However, the ROE go so far as to anticipate even a case where 
an ASDF C-130 transport is downed and comes under attack after its 
emergency landing. 
 
In the ASDF's actual airlift activities in Iraq, the C-130's alarm 
was often activated against potential attacks from shoulder-launched 
missiles over Baghdad. 
 
Former ASDF Chief of Staff Tadashi Yoshida told the Tokyo Shimbun 
after his retirement: "If you can show the noncombat area on a map, 
that's all right. But we don't know which part is a noncombat area 
and which part is not. That doesn't go with the world of pilots." 
With this, Yoshida showed a gap with the government's account. 
 
7) Weapons use against pirates constitutional: gov't 
 
ASAHI (Page 4) (Full) 
December 17, 2008 
 
The government, now studying measures (to protect Japanese tankers 
and other commercial ships) against pirates that are rampant in 
waters off the coast of Somalia, has released a view allowing the 
Self-Defense Forces to use weapons in order to crack down on pirates 
there. The government says the SDF's use of weapons for that purpose 
does not fall under the constitutional prohibition of Japan from 
using armed force overseas. However, the pirates in the offing of 
Somalia are armed with rockets and other weapons. Moreover, the 
 
TOKYO 00003427  005 OF 010 
 
 
pirates are organized. The SDF's use of weapons against armed 
pirates will therefore likely result in a full-fledged battle with 
them. There are many challenges in store, such as what to do about 
guidelines for weapons use or the rules of engagement (ROE). 
 
In a meeting yesterday of the House of Representatives Security 
Affairs Committee, former Defense Agency Director General Gen 
Nakatani, a House of Representatives member of the ruling Liberal 
Democratic Party, interpellated the government about constitutional 
problems. Tsuneyuki Yamamoto, director general of the Cabinet 
Legislation Bureau First Department, replied: "In case an order has 
been issued for maritime security operations, SDF personnel's use of 
weapons within the bounds of the Policemen's Duty Performance Law 
does not conflict with Article 9 of the Constitution." The 
government's interpretation is that launching an attack against "a 
state or a state-like organization" falls under the constitutionally 
prohibited use of armed force but the SDF's use of weapons against a 
private group of pirates cannot be called unconstitutional. In case 
the defense minister issued an order for maritime security 
operations, SDF personnel-as well as police officers-are allowed to 
use weapons if and when those believed to be vicious criminals 
resist. 
 
However, the current maritime security operations are to be 
conducted in order to protect the lives and assets of Japanese 
nationals. The Defense Ministry deems it difficult to conduct 
maritime security operations against pirates that attack foreign 
vessels. The government and a nonpartisan group of lawmakers are 
therefore looking into the option of creating a special measures law 
for antipiracy activities off Somalia or a permanent law to crack 
down on piracy. 
 
8) New ESTA system requires visa-waiver visitors to obtain online 
pre-approvals starting next month 
 
SANKEI (Page 3) (Excerpts) 
December 17, 2008 
 
The U.S. government will require Visa Waiver Program visitors coming 
to the U.S. to register online before entering the U.S. Those 
without the pre-approval document are likely to be refused entry 
into the country. But many Japanese tourists seem to be still 
unfamiliar with the introduction of the new program, although only 
less than one month is left before it will be launched. The 
Scheduled Airlines Association of Japan, composed of domestic 
airlines, is trying to spread the information. 
 
The U.S. will introduce the Electronic System for Travel 
Authorization (ESTA) as part of measures to prevent terrorists from 
entering the nation. The Visa Waiver Program has allowed Japanese 
visitors to go to the U.S. for tourism or business purposes for up 
to 90 days without a visa. But the new system will require such 
visitors to get pre-approval through online procedures. 
 
Domestic airlines intend not to let passengers with no pre-approval 
document board a plane once the new program is launched. This is in 
order to avoid any trouble after the passengers arrive in the U.S. 
 
In principle, visitors should comply with online procedures on their 
own. They are required to enter such details as their name, passport 
number, and whether or not they have a criminal record. The 
application should be submitted at least 72 hours before departure. 
 
TOKYO 00003427  006 OF 010 
 
 
 
9) Sales tax hike in fiscal 2011 stipulated in mid-term government 
program 
 
YOMIURI (Top Play) (Excerpts) 
December 17, 2008 
 
The government on December 16 presented to the Council on Economic 
and Fiscal Policy, chaired by Prime Minister Aso, a mid-term program 
for drastic reform of the tax code, which stipulates its policy of 
raising the consumption tax in fiscal 2011. The panel unanimously 
approved the proposal. The program mentions that drastic reform of 
the tax code, including the consumption tax, will be implemented in 
stages between fiscal 2011 and fiscal 2015 for the establishment of 
a sustainable fiscal structure. The government will aim at having 
the program adopted at a cabinet meeting by the 24th, when a 
government plan for the fiscal 2009 budget is slated to be approved. 
However, coordination of views with the ruling parties, which are 
strongly opposing the idea of mentioning the timetable for raising 
the tax rate, is bound to encounter complications. 
 
The government plan stresses its intention to use increased tax 
revenues as stable funding resources for social security spending. 
It also stipulates the timetable for the proposed hike, with 
economic recovery as the premise. The program also notes that 
legislative measures needed to hike the consumption tax will be 
taken in 2010. 
 
Gist of mid-term government program 
 
? Implement in stages drastic reform of the tax code, including the 
consumption tax, between fiscal 2011 and fiscal 2015. 
? Make a comprehensive approach, including consideration into 
multiple tax rates. 
? Take legislative measures in 2010 
? Use increased revenues for social security benefits and measures 
for the declining birthrate 
? Revise the structure of the income tax system from the perspective 
of correcting the social disparities 
? Lower the corporate tax in order to strengthen companies' 
international competitiveness 
? Secure stable funding sources in fiscal 2011 to finance a hike in 
the state contribution to the basic pension to 50 PERCENT  and make 
it a permanent measure. 
 
10) New Komeito certain to object to government's medium-term 
program; LDP likely to be caught between government and New Komeito; 
Ruling bloc's project team to meet today; Prime minister might lose 
his grip on ruling parties 
 
NIKKEI (Page 2) (Abridged slightly) 
December 17, 2008 
 
The government has presented a medium-term fundamental tax reform 
program with a consumption tax hike in fiscal 2011 in mind. 
Following this development, the ruling bloc will hold the first 
meeting today of its project team (PT) to study the medium-term 
program. The program is certain to draw fire from the New Komeito, 
which is concerned about the program's possible negative impact on 
the next Lower House election. The Liberal Democratic Party will 
likely be torn between the government and the New Komeito. 
Difficulties in coordinating views could further reduce Prime 
 
TOKYO 00003427  007 OF 010 
 
 
Minister Taro Aso's grip on power. 
 
Doubts about Yosano 
 
LDP Policy Research Council Chairman Kosuke Hori around noon 
yesterday asked former Finance Minister Fukushiro Nukaga to chair 
the PT. Nukaga agreed to assume the post on the condition he be 
given full initiative in running the PT, saying, "Someone has to do 
it." 
 
The PT consists of about eight persons, including tax and social 
security policy officers of the LDP and New Komeito. The PT 
chairman's post has been declined by a number of senior LDP Tax 
Commission members. They apparently did not want to have "pull the 
chestnut out of the fire" in the expected clash between the 
government and the New Komeito. 
 
The ruling parties have unveiled a tax reform outline for fiscal 
2009 that did not specify the timing to raise the consumption tax 
rate. But the prime minister still publicly declared that the 
government would hike the sales tax in fiscal 2011. Economic and 
Fiscal Policy Minister Kaoru Yosano, who has reportedly given Aso a 
positive push, telephoned PT members after yesterday's Council on 
Economic and Fiscal Policy meeting to tell them, "Although the 
contents is the same as the ruling bloc's outline, new figures have 
been added." In a press conference as well, Yosano explained, "There 
is nothing that runs counter to the spirit of the outline." 
 
But the path to fundamental tax reform mentioned in the government's 
plan is the same expression as that presented by the LDP in a ruling 
bloc tax reform council meeting that failed to obtain the New 
Komeito's endorsement. "Is there any guarantee that the economy will 
pick up in fiscal 2011?" a senior New Komeito member said. In the 
party, there are doubts about Yosano, with one saying: "Mr. Yosano 
plans to cause a crack to open between the LDP and New Komeito over 
the medium-term program that could lead to a grand alliance between 
the LDP and the (opposition) Democratic Party of Japan." 
 
Party-head talks 
 
Criticism is simmering in the LDP, with former Secretary General 
Hidenao Nakagawa saying: "It is irresponsible to speak only of a tax 
hike without presenting what should be done, such as turning around 
the economy and cutting salaries of civil servants." At the same 
time, there is a view in the party that if the prime minister's 
leadership suffers another setback, it would take a devastating toll 
on the party in next Lower House election. 
 
New Komeito Chief Representative Akihiro Ota said in a press 
conference yesterday: "Given the prime minister's statement, it is 
important for the ruling parties to discuss the matter thoroughly to 
arrive at a smooth conclusion." One senior LDP member noted: "There 
is no other option but to settle the matter in the end through 
party-head talks." 
 
11) Administrative Reform Minister Amari: Cabinet shuffle a possible 
choice to boost Aso administration's popularity 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 17, 2008 
 
In an interview to the Tokyo Shimbun, Minister of State for 
 
TOKYO 00003427  008 OF 010 
 
 
Administrative Reform Akira Amari stated: A shuffle of the cabinet 
of Prime Minister Aso and the lineup of the Liberal Democratic Party 
executives "is one of the choices to boost the Aso administration's 
popularity. I think there should be a dream team that would tackle 
the difficult situation of a century by appointing bigwigs who are 
policy experts to a new cabinet." 
 
Amari talked about the current cabinet lineup: "The cabinet was 
formed based on the premise of a dissolution of the House of 
Representatives. It is not a full-scale cabinet for making 
policies." 
 
However, he admitted that that Prime Minister Aso probably had no 
intention to shuffle his cabinet and the LDP leadership. 
 
12) DPJ forgoes filing censure motion against Prime Minister Aso 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 17, 2008 
 
The Democratic Party of Japan (DPJ), the largest opposition party, 
decided yesterday to forgo submission of a censure motion against 
Prime Minister Taro Aso to the current extraordinary session of the 
Diet. The decision was revealed by a senior DPJ Upper House member. 
 
The DPJ has judged that rather than to boycott deliberations on the 
budget bill, it would be wiser for it to pursue contradictions in 
the fiscal 2008 second supplementary budget during the next regular 
Diet session, which is scheduled to be convened on Jan. 5. This 
decision takes into consideration the low support ratings of the Aso 
cabinet in the polls. 
 
13) Final stage of current Diet session in tense situation; 
Opposition camp intends to steamroll vote on employment bills, 
ruling coalition desperate to cap criticism for inability to devise 
new measures 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 17, 2008 
 
The ruling coalition is reacting strongly against the main 
opposition Democratic Party of Japan's (DPJ) stance of not 
hesitating to steamroll a vote on Dec. 18 in the House of 
Councillors Committee on Health, Labor and Welfare on a set of four 
employment measures bills. The DPJ, the Social Democratic Party 
(SDP) and People's New Party (PNP) jointly submitted the bills to 
the Upper House. With the closing day of the ongoing Diet session 
approaching, maneuvering between the ruling and opposition camps is 
now intensifying. 
 
Referring in an executive meeting yesterday to the bills, DPJ Diet 
Affairs Committee Chairman Kenji Yamaoka said: "We will not hesitate 
to take a forced vote for the sake of the people." 
 
The DPJ is expected to hold on Dec. 18 a rally together with the SDP 
and PNP calling for an early passage of the bills. The party also 
plans to hold a meeting of the leaders of the three parties in order 
to play up their solidarity. 
 
At a press meeting yesterday, Liberal Democratic Party (LDP) Upper 
House Diet Affairs Committee Chairman Seiji Suzuki expressed his 
anger at the opposition's such moves, arguing: "I think the Upper 
 
TOKYO 00003427  009 OF 010 
 
 
House may change from the chamber of wisdom to the seat of darkness. 
I feel the Upper House is in danger." 
 
The opposition camp submitted the bills to the Upper House on Dec. 
15, only ten days before the end of the ongoing Diet session and 
then referred them to the committee just two hours after that. 
 
The ruling bloc is angry because the opposition forced the taking of 
a vote on the measures in the committee on Dec. 18 without giving 
any explanations of them (according to Suzuki). 
 
However, the ruling bloc gave the opposition a chance to criticize 
the government for being unable to devise any appropriate measures 
to cope with the situation, even putting off submitting a second 
supplementary budget for fiscal 2008. 
 
As such, LDP decided yesterday in a liaison meeting to bolster a 
public relations campaign on the government's emergency employment 
measures, with Secretary General Hiroyuki Hosoda saying: "We will 
carry out a public relations activity to explain the public the 
contents of the emergency package." The LDP is now desperately 
trying to cap the criticism that the government is unable to come up 
with any appropriate measures. 
 
14) New Komeito shows displeasure with Koga statement: Could become 
yet another source of friction 
 
MAINICHI (Page 5) (Excerpts) 
December 17, 2008 
 
Liberal Democratic Party (LDP) Election Committee Chairman Makoto 
Koga's statement referring to a possible revision of the party's 
election cooperation with New Komeito on December 16 has created a 
stir in the ruling camp. Many members of the New Komeito and Soka 
Gakkai, the party's power base, expressed displeasure. One senior 
member even telephoned Koga to ask what he meant. Secretary General 
Hiroyuki Hosoda hurriedly tried to put the uproar to rest, saying, 
"He just stated his own view." However, Koga's statement could 
become yet another source of friction between the LDP and the New 
Komeito. 
 
Koga on December 15 suggested that the LDP might rethink its current 
election cooperation setup with the New Komeito, under which LDP 
candidates cooperate with New Komeito in proportional representation 
in return for their receiving support from New Komeito in 
single-seat constituencies. Referring to his statement, Koga on the 
16th told reporters: "The LDP must do its best in the proportional 
representation system as well. It is important both for the LDP and 
the New Komeito to garner more votes." 
 
Behind Koga's statement is a sense of alarm at the present state the 
LDP is facing, including a sharp decline in public approval ratings 
for the Aso cabinet. One senior party official said, "In recent 
national elections, 20 PERCENT -30 PERCENT  of LDP supporters did 
not vote for candidates endorsed by the LDP." Few believe that the 
Koga statement will accelerate moves to rethink cooperation with the 
New Komeito. However, he certainly voiced the true feelings of many 
LDP members -- they want cooperation from the New Komeito, but there 
is no room for them to hand over votes in proportional 
representation. 
 
Prime Minister Taro Aso at a meeting with senior vice ministers from 
 
TOKYO 00003427  010 OF 010 
 
 
each government agency on the evening of the 16th said, "I heard 
that Mr. Koga said that the LDP can win the election if it cuts ties 
with the New Komeito." Two senior vice ministers of the New Komeito 
were present at the meeting, but they kept silent. 
 
Many New Komeito members were perplexed at the Koga statement with 
one noting, "Soka Gakkai members, who have thus far supported LDP 
candidates because they had no choice but to do so, may say that 
they will not support the LDP any more." A senior Soka Gakkai member 
expressed displeasure: "An appropriate person in the LDP must 
properly reject the Koga statement." 
 
SCHIEFFER