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UNCLAS SECTION 01 OF 11 TOKYO 003441 
 
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 12/18/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Yomiuri-Gallup poll: 34 PERCENT  of Japanese feel U.S.-Japan 
relations are good, the lowest rate ever, but expectations are high 
for improved ties under Obama  (Yomiuri) 
 
Defense and security affairs: 
5) Japan ends Iraq assistance with final flight of ASDF cargo plane 
from Kuwait  (Nikkei) 
6) Government in final coordination on USFJ-related outlays of 70-80 
billion yen in the defense budget  (Nikkei) 
7) Government to allocate 60 billion yen for U.S. force realignment, 
including building a Marine headquarters on Guam  (Sankei) 
8) Japan, Australia agree to set up security committee for sharing 
of information on terrorism, natural disasters  (Nikkei) 
9) Assistant Secretary of State for Verification and Compliance 
Paula DeSutter in Sankei interview acknowledges DPRK possession of 
several nuclear weapons  (Sankei) 
 
Economies in crisis: 
10) U.S. Fed lowers interest rate to near zero: Japan feels this 
will help stabilize markets  (Yomiuri) 
11) Nissan to cut temporary workers to zero; Honda fiscally in the 
red  (Yomiuri) 
12) Foreign-affiliated financial institutions in Japan cut payroll 
by 3,100 employees  (Nikkei) 
13) New Komeito perplexed by LDP's tax policy program that calls for 
consumption tax hike in 2011  (Tokyo Shimbun) 
 
14) Prime Minister Aso seeks meeting with Democratic Party of Japan 
head Ozawa  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Tokyo Shimbun: 
Nissan to end all contracts with temporary workers by next March, 
with output cuts at three plants 
 
Mainichi: 
Internal Affairs Ministry to create new subsidies to support local 
governments' employment measures 
 
Yomiuri: 
Only 34 PERCENT  in Japan think Japan-U.S. relations are good 
 
Nikkei: 
Panasonic agree to buy each Sanyo share for 131 yen from three major 
shareholders 
 
Sankei: 
FRB cuts interest rates to record low of 0 PERCENT  to 0.25 PERCENT 
 
 
Akahata: 
Major Japanese firms increase reserves to 29 trillion yen over six 
months since April 
 
TOKYO 00003441  002 OF 011 
 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Zero rate in U.S.: Stem global deflation 
(2) Spring wage offensive for 2009: Top priority must be given to 
job security 
 
Mainichi: 
(1) U.S. zero rate: Implement drastic measure with studious care 
(2) 2009 spring wage offensive: Eagerness to protect non-regular 
workers lacking 
 
Yomiuri: 
(1) U.S. unusually cuts interest rate to zero 
(2) Withdrawal of SDF troops from Iraq: Japan must fully consider 
future options for international contributions 
 
Nikkei: 
(1) U.S. FRB shows bold posture to contain financial crisis 
(2) Difficult tasks facing new Thai premier 
 
Sankei: 
(1) Mid-term program: Speak of consumption tax more frankly 
(2) BOJ should decide to lower interest rate 
 
Tokyo Shimbun: 
(1) 30th anniversary of China's openness policy: Political reform 
unavoidable to continue economic development 
(2) New strains of influenza: Meticulous preparations needed 
 
Akahata: 
(1) Companies must give consideration to workers 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 17 
 
NIKKEI (Page 2) (Full) 
December 18, 2008 
 
08:01 
Had a walk around his private residence in Kamiyamacho. 
 
13:24 
Met National Association of Commercial Broadcasters in Japan 
Chairman Hirose, Association for Promotion of Digital Broadcasting 
Board Chairman Mabe and others. 
 
14:12 
Met Japan International Broadcasting President Takashima, followed 
by National Association of Towns and Villages Chairman Yamamoto. 
 
15:00 
Met LDP Fukuoka chapter chairman Shingu and others in the presence 
of Chief Deputy Secretary General Harada. Afterward met ruling bloc 
mid-term program project team leader Nukaga. 
 
16:02 
Met FIFA President Blatter, followed by Lower House member Seishiro 
Eto. Afterward met Deputy Chief Cabinet Secretary Konoike. 
 
 
TOKYO 00003441  003 OF 011 
 
 
16:33 
Met National Police Agency Director General Yoshimura, followed by 
Internal Affairs and Communications Minister Hatoyama and Vice 
Internal Affairs and Communications Minister Takino. 
 
18:08 
Attended a Tokyo Assembly LDP meeting held at a Japanese restaurant 
in Akashicho, with Senior Deputy Secretary General Ishihara, joined 
by Election Strategy Council Chairman Koga. 
 
19:11 
Met parliamentary secretaries of all ministries in the presence of 
Matsumoto and Konoike, joined by Chief Cabinet Secretary Kawamura. 
 
21:01 
Met at a Hotel New Otani bar with LDP president special assistant 
Shimamura, Public Relations Chairman Furuya and others. 
 
23:15 
Returned to his private residence. 
 
4) Yomiuri-Gallup poll: Low of 34 PERCENT  say Japan-U.S. relations 
in good shape 
 
YOMIURI (Top play) (Full) 
December 18, 2008 
 
The proportion of people in Japan who think the current bilateral 
relationship between Japan and the United States is in good shape 
dropped from 39 PERCENT  last year to 34 PERCENT , the lowest level 
since 2000, the Yomiuri Shimbun found from a joint public opinion 
survey conducted with the Gallup Organization, a U.S. pollster, in 
mid-November. In the United States, it rose from 46 PERCENT  to 53 
PERCENT . The figures show a perception gap between the two sides. 
 
In the survey, respondents were also asked if they trust each 
other's country. In Japan, the proportion of those who trust the 
United States was 32 PERCENT , down from 34 PERCENT  last year. In 
the United States, the proportion of those who trust Japan was 67 
PERCENT , up from 61 PERCENT . 
 
As seen from the figures, the Japanese public's attitude toward the 
United States has worsened. This can be taken as reflecting a gap 
between the two countries' respective policies toward North Korea 
and repercussions from the financial crisis in the United States. 
 
In response to a question asking if Japan and the United States have 
been able to cooperate with each other on North Korea, "yes" 
accounted for only 16 PERCENT  in Japan, with "no" reaching 77 
PERCENT . This implies the Japanese public's discontent with the 
United States for its delisting of North Korea as a state sponsor of 
terrorism with no concrete progress on the issue of Japanese 
nationals abducted to North Korea. 
 
Asked about the financial crisis, 83 PERCENT  answered that their 
faith in the U.S. economy has declined. The financial crisis seems 
to be a factor that lowered the degree of trust in the United 
States. 
 
In addition, respondents were further asked how they thought 
Japan-U.S. relations will change with President-elect Obama and his 
administration coming into office early next year. To this question, 
 
TOKYO 00003441  004 OF 011 
 
 
"improve" accounted for 28 PERCENT  in Japan, with "worsen" at 11 
PERCENT  and "no change" at 51 PERCENT . In the United States, 
"improve" accounted for 50 PERCENT , with "worsen" at 12 PERCENT . 
 
Asked whether Japan has contributed to the international community's 
war on terror, "yes" accounted for 49 PERCENT  in Japan, with "no" 
at 40 PERCENT . In the United States, "yes" was at 45 PERCENT  and 
"no" at 49 PERCENT . 
 
5) Iraq support activities end; Last cargo plane leaves Kuwait; SDF 
troops walked tightrope for five years 
 
NIKKEI (Page 2) (Abridged slightly) 
December 18, 2008 
 
Hirofumi Matsuo, Kuwait 
 
One of the Air Self-Defense Force's three C-130 transport planes -- 
the last one -- that have been on an airlift mission as part of 
Japan's reconstruction support for Iraq departed from Kuwait for 
Japan on December 17. Most of the some 200 ASDF troops there will 
also return to Japan by government plane before year's end. Five 
years of the SDF's reconstruction assistance in Iraq has now ended. 
 
Ahead of the aircraft's departure, a withdrawal ceremony was held at 
Ali Al Salem Air Base in Kuwait, at which Parliamentary Secretary of 
Defense Ryota Takeda said: "Owing to efforts by the SDF troops, the 
mission has been accomplished with no casualties and (Japan) has won 
international trust and praise." 
 
Constantly in danger of being attacked by armed forces, SDF troops 
were forced to walk a tightrope in carrying out reconstruction 
assistance in Iraq. The mission has also left many challenges, such 
as what to do with the legal grounds for dispatching troops overseas 
and the weapons-use criteria. 
 
Looking back on the mission, a senior ASDF officer said: "The 
temperature was 50 C, and you couldn't open your eyes in a 
sandstorm. You were always in fear of a ground-to-air missile flying 
at you. The atmosphere in the battlefield was tense." In the 
aircraft, the alarm sounded often to indicate danger. 
 
The Ground Self-Defense Force conducted water-supply activities and 
public facility restoration work in the Iraqi southern city of 
Samawah. Rockets landed near their camp, and gun battles between 
armed groups also occurred in its vicinity. 
 
UN Secretary General Ban Ki Moon has sent a letter to Prime Minister 
Taro Aso praising Japan's effort, reading: "I appreciate the 
Japanese government's important contributions. I hope Japan will 
continue to support the United Nations' efforts in Iraq by other 
means." But the reaction from among the Iraqi people has been mixed, 
with one saying, "Japan should come back with industry." 
 
Weapons of mass destruction, the basis for the Iraq war, have not 
been found. As seen from this fact, the Iraq mission has left many 
challenges for Japan. The legal grounds for dispatching the SDF 
overseas have also presented challenges. 
 
Regarding Baghdad as a combat area, the Nagoya High Court ruled the 
ASDF mission unconstitutional. The use of weapons is limited to 
justifiable defense and emergency evacuations. A former SDF member 
 
TOKYO 00003441  005 OF 011 
 
 
has raised questions about this rule. The idea of sending the SDF to 
waters off Somalia to combat piracy has emerged in the government. 
The question is how to make good use of the lessons learned in 
Iraq. 
 
6) Final coordination underway in government to incorporate 70-80 
billion yen of U.S. force realignment cost in fiscal 2009 budget 
 
NIKKEI (Page 2) (Excerpts) 
December 18, 2008 
 
The government has begun final coordination for incorporating in its 
fiscal 2009 budget 70 to 80 billion yen of the U.S. force 
realignment cost, including the U.S. base facilities cost, as was 
agreed upon by the Special Action Committee on Okinawa (SACO). The 
cost will be increased significantly in preparation for the 
relocation of 8,000 Marines from Okinawa to Guam that will move into 
full swing in fiscal 2009. Initially, the cost was expected to run 
up to 100 billion yen, but given the yen's appreciation, the 
government has reviewed the exchange rate. The government has also 
reduced its estimate on the improvement of facilities. 
 
About 35 billion yen will be earmarked for the construction of 
billets and other facilities for the Marines moving to Guam. Also 
included in the amount is the cost of relocating Futenma Air Station 
(to a new site in Okinawa) and carrier-borne aircraft to the Iwakuni 
base. 
 
7) FY2009 budget earmarks 60 billion yen for U.S. force realignment 
 
SANKEI (Page 2) (Abridged) 
December 18, 2008 
 
The government decided yesterday to earmark about 60 billion yen in 
its fiscal 2009 budget for the planned realignment of U.S. forces in 
Japan. Next fiscal year is the initial year to start realignment 
projects, and one of the projects is to construct facilities in Guam 
for U.S. Marines to be relocated from Okinawa. The budget size is 
about three times larger than 19.1 billion yen for the current 
fiscal year. 
 
In May 2006, the Japanese and U.S. governments agreed to realign the 
U.S. military presence in Japan. Specifically, the two governments 
have reached an agreement to relocate the U.S. Marine Corps' Futenma 
Air Station in Ginowan, Okinawa Prefecture, to Camp Schwab, a U.S. 
military base located in the island prefecture's northern coastal 
city of Nago. For this relocation of Futenma airfield, the Japanese 
government plans to build an alternative facility in a coastal area 
of Camp Schwab. Along with this relocation of Futenma airfield, the 
United States will move about 8,000 Marines from Okinawa to Guam. 
This Guam relocation is specified in the U.S. government's roadmap. 
 
According to the plan, realignment-related projects will start next 
fiscal year. One of them is to build such facilities as headquarters 
and billets in Guam. The government is now coordinating to 
appropriate approximately 40 billion yen from the budgetary estimate 
of 60 billion yen for Guam relocation. 
 
Meanwhile, the government plans to build an alternative facility in 
a coastal area of Camp Schwab for Futenma airfield. This 
construction is premised on an environmental assessment of the 
relocation site and its environs. However, this assessment is 
 
TOKYO 00003441  006 OF 011 
 
 
unlikely to be completed next fiscal year. The government will 
therefore not incorporate a budget estimate for full-fledged 
construction. However, the remaining budgetary estimate of around 20 
billion yen is expected to be appropriated for such purposes as 
dismantling billets at Camp Schwab and building hangars at the 
Iwakuni base for carrier-borne aircraft to be redeployed there. 
 
8) Japan, Australia to agree on information-sharing to combat 
terrorism and disasters at bilateral security meeting 
 
NIKKEI (Page 2) (Full) 
December 18, 2008 
 
The governments of Japan and Australia have now begun finalizing a 
plan to push ahead with information-sharing to deal with major 
disasters and the threat of terrorism. The two countries will begin 
discussions next year or later for formulating a treaty on 
protecting secrets between them. The two countries plan to specify 
it in a joint document showing new security and defense guidelines 
after reaching an agreement at their two-plus-two defense and 
foreign ministerial meeting to be held today in Tokyo. 
 
The two countries will also confirm a plan to expand the scope of 
joint training between Japan's Self-Defense Forces and the 
Australian military to be prepared for natural disasters in the 
Asia-Pacific, such as tsunamis and earthquakes. Australia has 
expressed a willing to take over part of Japan's energy aid to North 
Korea (equivalent to 950,000 tons of heavy fuel oil) in accordance 
with a six-party agreement. The two countries will search for ways 
to coordinate their North Korea policies, as well. 
 
9) U.S. Assistant Secretary of State DeSutter: North Korea possesses 
a number of nuclear weapons; No compromises on such matters as 
collecting test samples 
 
SANKEI (Page 6) (Abridged) 
December 18, 2008 
 
By Takeshi Arimoto in Washington 
 
U.S. Assistant Secretary of State for Verification and Compliance 
Paula DeSutter in an interview with the Sankei and other news 
organizations made this statement about North Korea's nuclear 
development program: "We don't know exactly how many they have, but 
North Korea possesses a number of nuclear weapons." She said that to 
resolve the nuclear issue, it was necessary to inspect the nuclear 
facilities, including the nuclear weapons plant. She took an 
uncompromising stance on such matters as collecting samples. She 
stressed the view that North Korea was not recognized as a nuclear 
power under the provisions of the Non-Proliferation Treaty (NPT). 
 
Ms. DeSutter judged as "extremely insufficient" North Korea's report 
in June of its nuclear programs. In addition, referring to the 
verification process when Libya scrapped its nuclear program as 
having been carried out sufficiently, she stressed, "Verification is 
not a hostile act." She argued that verification was indispensable 
for determining the veracity of the contents of the report. 
 
On the question of activities to spread nuclear weapons to other 
countries, as well as on the nuclear program to enrich uranium, she 
said, "Their hands are still not clean." She took the view that 
verification was also necessary regarding not only the nuclear 
 
TOKYO 00003441  007 OF 011 
 
 
program using plutonium, but also proliferation activities and 
uranium-enrichment activities as well. Moreover, she also stated, 
"There is a facility for making (nuclear) weapons," making her view 
clear that the nuclear weapons plant, too, should be subject to 
verification. 
 
Ms. DeSutter stated that "it was very important" for North Korea to 
quickly return to the NPT in order for the Six-Party Talks agreement 
to be implemented. "They are not recognized as being a nuclear 
power," she declared. 
 
10) U.S. adopts unprecedentedly drastic monetary measure -- rate cut 
to 0 PERCENT , monetary quantitative easing 
 
YOMIURI (Page 3) (Excerpts) 
December 18, 2008 
 
Challenged by the serious downturn in economy, the Federal Reserve 
Board (FRB) on December 16 adopted an unprecedented monetary policy 
of cutting its federal funds target rate, a benchmark for short-term 
interest rates, to nearly zero and strengthening its monetary 
quantitative easing policy. The world is keeping close tabs on 
whether the FRB can bail out the U.S. economy, which is on the brink 
of falling into deflationary economy, with the unusual financial 
policy, which Japan adopted during the economic slump after the 
collapse of asset-inflated bubble economy? 
 
Japan's case: Effective in stabilizing financial market 
 
The Bank of Japan (BOJ) in February 1999 introduced a 
zero-interest-rate policy in an effort to put an end to the 
deflationary economy. When the economy temporarily showed signs of 
picking up, the BOJ lifted the policy in August 2000. However, when 
concern about immediate adverse influences mounted once again, the 
BOJ adopted a monetary quantitative easing policy in March 2001. The 
zero-interest-rate policy was kept in place until July 2006 for five 
years and fourth months. 
 
Under Japan's quantitative easing policy, a massive amount of 
interest-free funds were supplied to financial institutions, with 
which the BOJ had a business connection, so as to raise the cash 
balance in their BOJ current accounts, instead of interest rates 
being hiked or lowered by the BOJ. The aim was to revitalize the 
economy, by increasing money supply to be used for loans to 
companies. 
 
However, many rated that policy produced only a small effect in 
terms of buoying up the economy, loans to companies did not increase 
much. The reason for that is since banks at the time were strapped 
with an enormous amount of bad loans, they could not afford to 
extend fresh loans. 
 
However, it is believed that the quantitative monetary easing policy 
was effective in stabilizing the financial system with the BOJ 
supporting leading banks' cash management. 
 
11) Nissan to end contracts with temporary workers: Honda to post 
190 billion yen deficit in second half of fiscal 2008 
 
YOMIURI (Page 2) (Full) 
December 18, 2008 
 
 
TOKYO 00003441  008 OF 011 
 
 
Nissan Motors on December 17 announced a plan to cut additional 
domestic production -- 78,000 units and end contracts with temporary 
workers at its domestic plants by the end of March 2009.This is the 
first time for any leading automaker to stop employing workers 
dispatched from employment agencies. Honda Motors the same day 
released a plan for an additional production cut by 54,000 units at 
its domestic plants and to slash contract workers by another 450. 
There seems to be no end to production and employment adjustment by 
leading automakers, following the slowdown in the global economy. 
 
Nissan had been employing approximately 2,000 dispatched workers. 
However, it released a plan in November to reduce the number to 500 
before year's end. It will also stop operations for several days in 
a month at four plants. This would reduce production in fiscal 2008 
by 225,000 units, a drop of about 16 PERCENT  from the target of 
1.388 million units in the initial production plan. 
 
Honda revealed an outlook that its group operating profit, which 
shows profits from the main line of business, will show a deficit of 
approximately 190 billion yen in the second half of fiscal 2008 
(October 2008-March 2009). This is the first time for the company to 
suffer an operational deficit in any half-year term since it adopted 
the current accounting system. It projects that an operational 
profit for the whole financial year ending in March 2009 would drop 
to 180 billion yen, down 81.1 PERCENT  from the preceding year. 
 
Honda will flatly cut managers' salaries by 10 PERCENT , starting in 
January 2009. 
 
12) Foreign financial institutions cut 3,100 jobs, more than 10 
PERCENT  of Japanese payrolls, since last August 
 
NIKKEI (Page 3) (Excerpts) 
December 18, 2008 
 
Hit by the ongoing financial crisis, foreign-affiliated financial 
institutions have accelerated moves to slash jobs in Japan. Since 
credit woes stemming from the U.S. subprime mortgage crisis became 
serious in August of last year through mid-December of this year, 
3,100 jobs have been cut. The cuts amount to 11 PERCENT  of the 
Japanese on their payrolls (about 28,000 persons). Foreign firms are 
expected to continue cutting jobs, and a total of 4,400 workers may 
be thrown out of work by the middle of 2009, according to a report 
produced by human resources consulting firm Executive Search 
Partners Co. yesterday. 
 
U.S. and European financial institutions began to step up 
retrenchments in Japan in the wake of the failure of major U.S. 
brokerage house Lehman Brothers Holdings Inc. in mid-September. With 
financial institutions saddled with massive losses stemming from 
turmoil in the markets, downsizing has spread from real estate and 
securitization to market trading, investment banking, asset 
management, and custodial services. 
 
Goldman Sachs Japan Co., whose U.S. parent company logged its first 
quarterly loss since it was listed in 1999, has cut nearly 150 jobs 
in its investment banking, equities, custodial, and other 
operations. Credit Suisse has axed more than 70 workers mainly in 
its investment banking division as of the end of last week. Job cuts 
at these two firms account for 10 PERCENT  of their total Japanese 
payrolls. 
 
 
TOKYO 00003441  009 OF 011 
 
 
Deutsche Securities Inc. has slashed nearly 60 jobs in 
securitization and other sections. Morgan Stanley Japan Securities 
Co. and Merrill Lynch Japan Securities Co. have also reduced their 
employees. 
 
The Bank of Japan, a leading U.S. bank, plans to cut back its 
workforce across the world by up to 35,000 over the next three 
years, with its business integration with Merrill Lynch. European 
financial institutions are also stepping up cutbacks. Executive 
Search estimates that a total of 4,400 jobs at foreign financial 
institutions could be eliminated by the middle of 2009. This figure 
accounts for 16 PERCENT  of their workforces in Japan. 
 
13) Scope column: New Komeito agonizing over what approach it should 
take to government's mid-term tax reform program 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 18, 2008 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner 
New Komeito held a first meeting of a project team to discuss a 
mid-term program for drastic reform of the tax code, which the 
government had drafted. The project team launched coordination in 
the ruling parties as to when to hike the consumption tax. The New 
Komeito, however, is opposed to Prime Minister Taro Aso's plan to 
include the phrase (about hiking the consumption tax) "three years 
from now" in the government-drafted mid-term program. The New 
Komeito, therefore, intends to press the government to modify that 
wording in its mid-term program. In order to avoid a rift in the 
ruling coalition from opening, the New Komeito is having 
difficulties deciding what response it should take to resolve the 
issue. 
 
In the project team's first meeting yesterday, the New Komeito 
frankly expressed displeasure with the government's mid-term program 
as presented on Dec. 16. One New Komeito official stated: "I wonder 
if it is good for the government to change the ruling coalition's 
large package of tax revisions, on which we spent a lot of time, by 
using a different expression." 
 
The government's mid-term program includes the phrase that drastic 
reform for the tax code, including the consumption tax, will be 
implemented from fiscal 2011 (three years from now). Meanwhile, 
after holding consultations from late at night on Dec. 11 until 
before dawn next day, the LDP and New Komeito finally agreed to 
their draft outline on reform of the tax code that stipulates the 
vague expression "by the mid-2010s." Therefore, the New Komeito is 
unhappy with the term "three years from now." 
 
After yesterday's 90-minute-meeting, former Health, Labor and 
Welfare Minister Chikara Sakaguchi, chair of the New Komeito side's 
project team, commented on the government's mid-term program in a 
cautious manner: "I want to pose questions, since it mentions such 
specifically." He did not react strongly to the government. 
 
Economic and Fiscal Policy Minister Kaoru Yosano has emphasized the 
Aso administration's responsibility for reform of the tax code, 
saying: "The government will lose its raison d'etre if it does as 
the ruling coalition parties say." The LDP has decided to go along 
with the prime minister's policy. Former Finance Minister Fukushiro 
Nukaga, who is not a senior member of the LDP Policy Research 
Council, chairs the LDP side's project-team. This proves that the 
 
TOKYO 00003441  010 OF 011 
 
 
LDP has already made its decision. 
 
In addition, strains are beginning to appear between the LDP and New 
Komeito due to LDP Election Strategy Council Chairman Makoto Koga's 
remarks on Dec. 14 that election cooperation between the two parties 
should be reviewed. As it stands, the New Komeito is unable to 
decide what approach it should take to the consumption tax issue. A 
senior New Komeito member said: "We cannot find a middle ground." 
 
14) DPJ President Ozawa to ask Prime Minister Aso for meeting 
 
ASAHI (Page 4) (Abridged slightly) 
December 18, 2008 
 
Four employment measures bills presented by three opposition parties 
-- the Democratic Party of Japan (DPJ), Social Democratic Party 
(SDP) and People's New Party (PNP) -- will be approved today by a 
majority of the opposition parties at the House of Councillors 
Committee on Health, Labor and Welfare. DPJ President Ichiro Ozawa 
intends immediately after the bills are adopted in the Upper House 
to request Prime Minister Taro Aso to hold a meeting between them in 
order to call for enacting the bills before the end of the current 
extraordinary Diet session, which will run until Dec. 25. 
 
The DPJ aims to play up its effort to tackle the employment 
situation, which has becoming more and more serious. The ruling 
parties, however, are strongly reacting to the DPJ's move. 
 
The Upper House's Health, Labor and Welfare Committee hold a 
directors meeting yesterday to discuss the four employment measures 
bills. In the meeting, the ruling and opposition camps agreed to 
initiate deliberations on Dec. 18, but the ruling coalition opposed 
the DPJ's call for taking a vote on the bills the same day. However, 
Committee Chairman Tsukasa Iwamoto, a DPJ member, decided by virtue 
of his office that the bills were approved. Therefore, the set of 
four bills is expected to be passed in an Upper House plenary 
session today. The ruling bloc does not plan to deliberate on them 
in the House of Representatives during the ongoing session. 
 
In an attempt to appeal its stance of aiming to pass the four bills 
during the current session, recognizing that the employment 
situation is facing imminent danger, the DPJ has insisted that the 
bills be put to a vote today in the committee. The JCP, SDP and PNP 
will likely side with the DPJ, while they are criticizing the DPJ's 
managing Diet affairs. 
 
The DPJ will today play up its effort to dealing with the employment 
issue, considering today's session the climax of the extended 
ongoing Diet session. The DPJ's scenario is this: It will this 
morning get together with the SDP and PNP to hold a rally calling 
for an early enactment of the four bills; Deputy President Naoto Kan 
and other leaders will deliver speeches there; the leaders of the 
three parties will hold this evening a meeting after a vote is taken 
on the bills; and it will then call on the LDP to hold a meeting 
between Aso and Ozawa. 
 
Meanwhile, the ruling coalition is strongly opposing to the 
opposition steamrolling a vote. The ruling parties will attend 
deliberations at the committee today but boycott a vote. LDP Upper 
House member Seiichi Eto told yesterday a DPJ lawmaker, who called 
on him: "What your party is doing is just a performance. That is 
extreme nonsense." 
 
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Moreover, regarding three of the four bills, the LDP's position is 
that they have already been resolved by the first supplementary 
budget for fiscal 2008, revisions to the ministerial ordinances 
before the end of the year, and notifications. In a party last 
night, Health, Labor and Welfare Minister Yoichi Masuzoe stressed: 
"I have already done what they say in the bills." 
 
ZUMWALT