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UNCLAS SECTION 01 OF 10 TOKYO 003453 
 
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 12/19/08 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Government considering options for Iraq following troop pullout, 
including indirect PKO assistance, with future SDF dispatches ruled 
out  (Nikkei) 
5) GSDF lost secret document about VIP transport schedule at July 
G-8 summit in Hokkaido  (Yomiuri) 
6) Defense Ministry in second supplementary budget request plans to 
seek funding for alternate weapon to replace cluster munitions 
(Asahi) 
7) Defense Ministry balks at opposition call for allowing senior 
staff officers to testify in Diet about Tamogami incident  (Asahi) 
8) Agreement at Japan-Australia 2-plus-2 meeting to share classified 
information  (Mainichi) 
 
9) Document proves former Aso Mining Co. forced foreign POWs during 
WWII to work in its coal mines  (Asahi) 
 
10) Government to accept 30 Burmese refugees  (Mainichi) 
 
11) Bank of Japan ready to implement easing of quantitative monetary 
restrictions, including purchasing of commercial paper (CP) 
(Yomiuri) 
 
Political frenzy: 
12) Diet in turmoil as Democratic Party of Japan (DPJ) steamrolls 
labor legislation through Upper House  (Mainichi) 
13) Ruling camp refuses party heads meeting fearing it would turn 
into an attack on its labor policy  (Yomiuri) 
14) New Komeito showing signs of flexibility in battle with LDP over 
tax program  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Komazawa University head director dismissed over massive investment 
losses 
 
Mainichi: 
DPJ throws Diet into turmoil as it forces employment bills through 
Upper House 
 
Yomiuri: 
BOJ mulls monetary-easing policy, including purchase of CP 
 
Nikkei: 
Individual investors to be net buyers of Japanese stocks in 2008 for 
first time in 18 years 
 
Sankei: 
Prime minister willing to designate education as national strategy 
to create new domestic demand 
 
Tokyo Shimbun: 
Toyota likely to post deficit for first time in about 50 years 
 
TOKYO 00003453  002 OF 010 
 
 
 
Akahata: 
JCP Chairman Shii calls on Keidanren to urge leading companies to 
stop or withdraw mass dismissal 
 
2) EDITORIALS 
 
Asahi: 
(1) Switch to omni-directional diplomacy, set off by SDF withdrawal 
from Iraq 
(2) 30th anniversary of openness policy in China: Political reform 
urged for 
 
Mainichi: 
(1) Collapse of job market: Government doing nothing 
(2) Restrictions on child pornography: Strengthen crackdown by 
police 
 
Yomiuri: 
(1) Improvement in school textbooks: Teachers also should hone 
skills 
(2) Deepen security cooperation between Japan and Australia 
 
Nikkei: 
(1) Take every possible measure to improve job market 
(2) Large-scale output reduction reflects oil-producing countries' 
irritation 
 
Sankei: 
(1) Nanjing Massacre Memorial Hall: Removal of photos in question 
result of diplomatic efforts 
(2) Shortage of doctors: Take more measures, besides review of 
training system 
 
Tokyo Shimbun: 
(1) Political parties must implement employment measures by year's 
end, instead of criticizing each other 
(2) OPEC policy of output cuts: Japan should continue to pursue 
alternative energy 
 
Akahata: 
(1) Government must urge U.S. to discontinue low-altitude flights 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 18 
 
NIKKEI (Page 2) (Full) 
December 19, 2008 
 
09:01 
Attended an Education Rebuilding Council meeting at the Kantei. 
Afterward met LDP Election Strategy Council Deputy Chairman Suga. 
 
10:30 
Met Consumer Affairs Minister Noda, followed by Vice Foreign 
Minister Yabunaka. 
 
12:47 
Met National Association of City Assemblies Chairman Fujita and 
National Association of Chairmen of Town and Village Assemblies 
Chairman Hara. 
 
TOKYO 00003453  003 OF 010 
 
 
 
13:16 
Met Osaka Gov. Hashimoto and Kansai Economic Federation Chairman 
Shimotsuma in the presence of Lower House member Chuma. 
 
14:07 
Met Australian Foreign Minister Smith and Defense Minister 
Fitzgibbon in the presence of Assistant Chief Cabinet Secretary 
Hayashi and others, followed by Assistant Chief Cabinet Secretary 
Fukuda. Afterward met Vice Finance Minister Sugimoto. 
 
15:10 
Met Science and Technology Minister Noda and biotechnology strategy 
promotion government-private council chairman Honsho and others. 
 
16:03 
Met UNHCR Guterres in the presence of Hayashi. Afterward met Cabinet 
Intelligence Director Mitsuya. 
 
17:07 
Met Internal Affairs and Communications Minister Hatoyama and 
Internal Affairs and Communications Ministry Administrative 
Management Bureau Director General Hashiguchi. Afterward met ruling 
party financial market trend project team chairmen   Yanagisawa and 
Ueda, followed by Economic and Fiscal Policy Minister Yosano and 
Fukuda. 
 
17:59 
Met Foreign Ministry North American Affairs Bureau Director General 
Nishimina. 
 
18:30 
Had a telephone conversation with Israeli Prime Minister Olmert in 
the presence of Foreign Ministry Middle Eastern and African Affairs 
Bureau Director General Suzuki and others. 
 
19:29 
Met at an Akasaka Japanese restaurant with LDP Election Strategy 
Council Chairman Koga, former METI Minister Hiranuma, former Foreign 
Minister Koumura, and former defense chief Kyuma. Talked to his 
secretary. 
 
22:58 
Returned to his private residence in Kamiyamacho. 
 
4) Gov't mulls indirect support for PKOs, groping for post-Iraq 
role 
 
NIKKEI (Page 2) (Abridged) 
December 19, 2008 
 
Following the Air Self-Defense Force's pullout from Iraq, the 
government is now coordinating to expand Japan's support for the 
roles of developing countries in United Nations peacekeeping 
operations as a new plan for its international contributions. 
However, the Diet is divided with the ruling parties holding a 
majority of seats in its lower chamber and the opposition parties 
dominating its upper chamber. As it stands, it will be difficult to 
send the Self-Defense Forces right away on a new overseas mission 
since that will require a new law. The government is still groping 
for a post-Iraq role. 
 
 
TOKYO 00003453  004 OF 010 
 
 
The government is planning to expand its backup of developing 
countries to help with their PKO personnel training programs. Last 
year, Japan began its financial support to PKO training centers in 
six countries, including Egypt and Malaysia. The government is going 
to expand its financial support of the PKO centers in a total of 8-9 
countries next fiscal year. 
 
Japan has been providing funds to PKO centers overseas through an 
international organization to help improve their PKO competence. 
This can be called indirect support to areas where Japan cannot send 
SDF troops due to its five principles of PKO participation. 
 
In addition, the government will also expand its training programs 
for Japanese nationals who will work in post-conflict countries to 
help with their reconstruction. They are professionals mainly in 
medical, educational, and administrative areas. They are in their 
20s and 30s, but the government will consider those in their 50s and 
60s as well. The government will recruit 10 older people next fiscal 
year, who will receive training at a facility in Japan. 
 
The government will now focus on such assistance due to Japan's own 
circumstances. The United Nations hopes that Japan will send SDF 
troops for full-fledged participation in PKO missions. However, 
there are no prospects for that. 
 
In October, Japan sent two SDF officers to the headquarters of the 
United Nations Mission in Sudan (UNMIS) in the southern part of 
Sudan. So far, however, Japan has sent a total of 30 persons, 
including those in the Golan Heights and in Nepal. Japan ranks 79th 
in the world and is lowest among the Group of Eight (G-8). 
 
In addition to PKOs, Japan will continue its refueling activities in 
the Indian Ocean. However, Western countries are now focusing their 
attention on operations to mop up terrorist groups in Afghanistan. A 
senior official of the Foreign Ministry sees Japan's refueling 
mission there as the "minimum requirement." The Foreign Ministry 
thinks that the refueling activities alone are a far cry from being 
enough. "We will have to do something for Afghanistan," one of the 
ministry's officials said. 
 
What is additionally on the agenda is dispatching SDF troops to 
Afghanistan and sending Maritime Self-Defense Force vessels to crack 
down on pirates off Somalia. 
 
In June, the government sent a fact-finding team to Afghanistan. The 
government produced a report on its team's findings there. However, 
the government gave up on the option of sending SDF troops to 
Afghanistan due to the deterioration of public security in that 
country. Meanwhile, the government, as well as the ruling and 
opposition parties, is studying antipiracy measures. However, it 
will not be easy to get new legislation through the Diet that is 
divided. 
 
5) GSDF lost classified Lake Toya VIP transport documents 
 
YOMIURI (Page 39) (Full) 
December 19, 2008 
 
Two Ground Self-Defense Force helicopter unit members lost during 
the July Lake Toya Summit some secret summit documents, including 
VIP transport lists, it has been learned. The loss of the documents 
came to light after the summit. The documents were found in the two 
 
TOKYO 00003453  005 OF 010 
 
 
members' lockers through a search. The Defense Ministry will take 
punitive measures against the two members before long. 
 
To be punished are a 44-year-old captain and a 35-year-old sergeant 
1st class of the 12th helicopter unit of GSDF Camp Soumagahara 
(Shinto Village, Gunma Prefecture) who where involved in drafting 
the documents. They are expected to be punished with a one-month pay 
cut. 
 
According to a GSDF source, the loss of the documents became clear 
in late July. Becoming aware that the retention period for the 
documents was over, the helicopter unit asked that the 1st 
helicopter group at Camp Kisarazu (Kisarazu, Chiba Prefecture) that 
took charge of the VIP transport return the documents in question so 
that the unit could begin a set of procedures to discard the 
document. But the 1st helicopter group was not able to find the 
documents or records showing that it had received them from the 
helicopter unit. 
 
The GSDF conducted a search, and found them in a sealed envelope in 
the locker of the 35-year-old sergeant 1st class in early August. 
The 44-year-old captain was supposed to directly hand the documents 
to the 1st helicopter group. But instead, he asked the sergeant 1st 
class to do so, and the sergeant 1st class never handed them to the 
1st helicopter group. 
 
6) Defense Ministry to request cluster alternatives in 2nd extra 
budget 
 
ASAHI (Page 4) (Full) 
December 19, 2008 
 
In the wake of the government's signing of a treaty banning cluster 
munitions that scatter numerous smaller submunitions or bomblets, 
the Defense Ministry decided yesterday to earmark alternative 
weapons in its second supplementary budget request for the current 
fiscal year (through March next year). The ministry had initially 
planned to incorporate alternative weapons in its budget estimate 
for next fiscal year. The second extra budget request for such 
weapons is estimated at around 4.9 billion yen. 
 
7) Defense Ministry refuses to summon SDF brass hats 
 
ASAHI (Page 4) (Full) 
December 19, 2008 
 
The Defense Ministry yesterday gave reasons in written form to the 
House of Councillors Foreign Affairs and Defense Committee for its 
refusal to comply with the opposition bench's demand to summon the 
Self-Defense Forces' Joint Staff Office Chief Takashi Saito and 
other SDF echelon officers to the Diet. The opposition parties have 
called for their summons due to former Air Self-Defense Force Chief 
of Staff Toshio Tamogami's publication of a controversial essay. 
 
The Defense Ministry reasons: 1) SDF staff officers will have to be 
occupied in doing Diet affairs and the SDF's daily operations could 
be troubled; 2) military issues involve confidentiality, and they 
cannot give adequate replies without sufficient security; and 3) SDF 
members, when hearing SDF staff officers' replies before the Diet, 
may not be able to fully understand what their commanding officers' 
parliamentary replies mean, which could become a problem from the 
aspect of commanding. 
 
TOKYO 00003453  006 OF 010 
 
 
 
8) Japan-Australia 2-plus-2: Agreement reached on indirect support 
for Obama and holding talks on sharing classified information 
 
MAINICHI (Page 2) (Abridged slightly) 
December 19, 2008 
 
The governments of Japan and Australia held yesterday their foreign 
and defense ministers meeting (two plus two) at the Foreign 
Ministry's Iikura Guesthouse. In view of advanced international 
cooperation, the two countries agreed to conduct full-fledged 
discussions on sharing classified information on the threat of 
terrorism and disaster relief. They also shared the importance of 
keeping the dialogue between Japan, the United States and Australia 
in the Asia-Pacific regions, with the incoming Obama administration 
in mind. 
 
Except for the United States, Australia is the only country with 
which Japan takes a two-plus-two from in discussing matters. This is 
the second two-plus-two between Japan and Australia following the 
one in June last year. From Japan, Foreign Minister Hirofumi 
Nakasone and Defense Minister Yasukazu Hamada attended the meeting. 
The meeting was intended to play up the two countries' stance as 
U.S. allies to indirectly support President-elect Obama, who has 
announced to increase the troop level in Afghanistan and to urge the 
Untied States to maintain strong influence over East Asia, including 
the North Korean issue. 
 
After the meeting, the two countries released a joint statement and 
a memorandum of understanding by defense authorities that included: 
(1) begin talks in 2009 on establishing a legal framework to share 
classified information; and (2) mutual visits by naval vessels and 
patrol planes. 
 
9) Presence of 300 POWs at former Aso Kogyo mentioned in MHLW 
wartime documents 
 
ASAHI (Page 37) (Abridges slightly) 
December 19, 2008 
 
During the war, there were some 300 foreign POWs at a coal mine of 
the former Aso Kogyo (Fukuoka Prefecture) run by a relative of Prime 
Minister Taro Aso, it became clear yesterday through documents kept 
at the Health, Labor and Welfare Ministry. In response to foreign 
media reports on the existence of POWs at the coal mine, the prime 
minister has said: "The facts have not been confirmed." But now that 
the government documents have been found, his accountability will be 
called into question once again. 
 
The documents, dated August 15, 1945, note that at Aso Kogyo's 
Yoshikuma mine prison camp, there were 197 Australian, 101 British, 
and two Dutch soldiers, and that two of the Australians died in July 
¶1945. The documents have been kept at the MHLW. The ministry offered 
the reply in response to an inquiry from Yukihisa Fujita of the 
Democratic Party of Japan. 
 
The question of POWs at Aso Kogyo was taken up by the New York Times 
in November 2006. Using the website of its Consulate General in New 
York, the Foreign Ministry has rebutted the report, but the rebuttal 
was deleted on Dec. 17, saying that the situation has now changed. 
Aso Kogyo eventually became Aso Cement, where Prime Minister Aso 
served as president. 
 
TOKYO 00003453  007 OF 010 
 
 
 
10) Japan to accept Burmese refugees starting in fiscal 2010 
 
MAINICHI (Page 2) (Full) 
December 19, 2008 
 
The government has decided to accept about 30 Burmese refugees who 
currently are being sheltered in Thailand, under a recent agreement 
to introduce the so-called third-country refugee resettlement 
program. It will select refugees to be accepted before the end of 
fiscal 2009 in cooperation with the Office of the United Nations 
High Commissioner for Refugees (UNHCR). Japan is the first Asian 
country that accepts refugees under the third-country refugee 
resettlement program. The plan will be formally adopted at a refugee 
measures liaison and coordination meeting to be held on December 19, 
joined by representatives from 11 government agencies. 
 
Unlike the Immigration Control Law, under which screening for 
recognizing refugees can be held only in Japan, the third-country 
refugee resettlement program allows screening interviews to be held 
in countries where refugees are sheltering. 
 
The government will accept families of refugees whom the UNHCR 
interviewed in advance and recommended as being capable of adapting 
themselves to life in Japan. It will provide Japanese language 
training, job training and referral services as assistance for 
refugees to settle in Japan. It intends to accept more, while 
determining the situation. It appears that the government has 
decided to accept Burmese refugees, because about 60 PERCENT  of 
applicants for refugee recognition were Burmese. 
 
According to the UNHCR, the number of refugees accepted under the 
agreement in 2007 is 75,300. Fourteen countries accepted them. The 
U.S. accepted 48,300. Refugees are mainly from such countries as 
Burma and Somalia. 
 
11) BOJ to introduce quantitative monetary easing, including CP 
purchases 
 
YOMIURI (Top Play) (Almost full) 
December 19 2008 
 
The Bank of Japan (BOJ) at its policy-setting meeting on December 18 
entered final coordination on the possibility of introducing de 
facto quantitative monetary easing. It appears that as part of 
assistance for companies' cash management, it is looking into 
various measures, including purchases of commercial papers, which 
companies issue for short-term fund procurement. Following the rapid 
deterioration of the domestic economy, the BOJ will introduce 
measures to further ease the money supply, switching its focus from 
the interest rate level to the monetary supply quantity. In the 
meantime, it will confer on the possibility of lowering the policy 
interest rate, which it is guiding on the very low level of 0.3 
PERCENT  a year. 
 
Rate cut also considered 
 
The BOJ will reach a final decision at its policy-settling meeting 
to be held on the 19th, following the one on the 18th. The U.S. 
Federal Reserve Board (FRB) on the 16th came up with a monetary 
quantitative easing policy in the form of purchasing housing loan 
claims. The BOJ's policy will likely be similar to that. 
 
TOKYO 00003453  008 OF 010 
 
 
 
The BOJ is mulling a plan to purchase asset backed securities, which 
companies issue, secured on CP's and assets, from financial 
institutions. Its aim is to directly help companies' cash 
management. 
 
The Development Bank of Japan (DBJ) will start purchasing CP's from 
next week. Following the move, the BOJ will extend loans to the DBJ, 
taking those CP's as collateral, thereby assisting cash management 
by companies. 
 
A plan to significantly boosting the purchases of long-term 
government bonds held by banks from the current 1.2 trillion yen a 
month has also surfaced. It can be expected that the bulk purchases 
of long-term government bonds by the BOJ will weaken upward pressure 
on long-term interest rate, thereby producing the effect of 
encouraging companies to make investment, procuring long-term funds. 
 
 
In the meantime, many BOJ officials are negative toward a rate cut 
with one noting, "A further rate cut will undermine the functions of 
the monetary market." However, long-term interest rates are already 
declining on the market with a rate cut by the BOJ already factored 
in. The BOJ will reach a decision on the 19th in a cautious manner. 
 
12) DPJ throws Diet into turmoil as it rams job bills through Upper 
House 
 
MAINICHI (Top Play) (Excerpts) 
December 19, 2008 
 
The House of Representatives' Committee on Health, Welfare and Labor 
passed job-creation bills jointly submitted by the Democratic Party 
of Japan (DPJ), the Social Democratic Party and the People's New 
Party yesterday. The Japanese Communist Party voted down the bills. 
While ruling party members were making a protest to committee 
chairman Tsukasa Iwamoto (of the DPJ), the DPJ rammed them through 
the opposition-controlled Upper House. In reaction to the forced 
passage of the bills, the ruling coalition submitted a resolution 
calling for dismissing Standing Committee for House Management Takeo 
Nishioka (DPJ) and Iwamoto. 
 
After the Upper House passes the bills at its plenary session today, 
they will be sent to the House of Representatives. The ruling 
parties, however, intend to kill them, with time running out. The 
standoff between the ruling and opposition camps is expected to 
intensify. 
 
The three opposition parties submitted the bills to the Upper House 
on the 15th. Both camps agreed on holding deliberations yesterday, 
but the ruling side was opposed to taking a vote the same day. But 
Iwamoto decided on the date for voting on his authority as chairman 
and steamrolled the bills through the Upper House, with 
unprecedentedly holding a briefing and deliberations and then 
putting them to the vote only in a day. 
 
The bills contain these measures: (1) rules on job offer 
withdrawals; (2) expanding the scope of employment adjustment 
subsidies to cover temporary workers who worked for more than two 
months; and (3) accommodation and welfare support for dismissed 
temporary workers. Some of the measures in the bills are also listed 
in the employment package the government plans to include in the 
 
TOKYO 00003453  009 OF 010 
 
 
fiscal 2008 second supplementary budget bill. The government has 
decided to submit the budget bill to the next ordinary Diet session, 
which starts in January. 
 
13) Ruling coalition refuses Aso-Ozawa meeting on employment bills 
 
YOMIURI (Page 4) (Excerpts) 
December 19, 2008 
 
Four employment measures bills, proposed jointly by the Democratic 
Party of Japan (DPJ), the main opposition force, the Social 
Democratic Party (SDP) and the People's New Party (PNP), were 
approved yesterday by the House of Councillors Committee on Health, 
Labor and Welfare. Immediately after the approval of the bills by 
the Upper House panel, the DPJ asked the ruling Liberal Democratic 
Party-New Komeito ruling camp for talks on the bills between Prime 
Minister Taro Aso, president of the LDP, and DPJ President Ichiro 
Ozawa. The DPJ's aim is to play up its stance of placing priority on 
dealing with the employment problem, with job uncertainty growing 
among the public. In order to avoid stepping into the ring with the 
DPJ, the ruling bloc refused to accept the DPJ's request. In an 
attempt to evade from falling into the DPJ's trap, the ruling 
coalition is now desperately setting up a defense arm. 
 
Committee members from the ruling parties surrounded Chairman 
Tsukasa Iwamoto, a DPJ member, who declared the end of a 
question-and-answer session, with one member saying: "We cannot 
accept such a reckless act that the panel took a forced vote when we 
only spent 150 minutes in deliberations. That's invalid." 
 
The DPJ's scenario is to send the bills to the House of 
Representatives after they are approved in an Upper House plenary 
session today, and to urge the government and ruling parties to 
enact the bills during the current Diet session. The DPJ therefore 
hastened the vote on the bills yesterday. A senior DPJ member said: 
"The ruling camp cannot approve the bills. However, they could have 
difficulties deciding what approaches they should take in order to 
show their positive stance for employment measures." 
 
However, some opposition members are criticizing the DPJ's strategy. 
The DPJ initially had planned to ask the ruling coalition for a 
meeting with Aso after holding a meeting of the leaders of the DPJ, 
SDP and PNP. However, the party-heads meeting plan was changed to a 
meeting of the secretaries general, since the PNP said that the 
party did not want to join a "useless performance." 
 
14) Coordination underway in ruling camp on mid-term program 
 
MAINICHI (Page 5) (Full) 
December 19, 2008 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner 
New Komeito discussed yesterday what approach they should take to 
the government-drafted mid-term program for reform of the tax code, 
which states as the government's policy the raising of the 
consumption tax in fiscal 2011. Although the New Komeito is still 
opposed to stipulating when to hike the consumption tax in the 
program, the party seems to be showing signs of softening its 
position, with one member of the ruling camp's project team saying: 
"We have no intention to take up too much time." The New Komeito 
intends to present its proposals to the second meeting today of the 
project team. 
 
TOKYO 00003453  010 OF 010 
 
 
 
Former Finance Minister Fukushiro Nukaga, chair of the ruling 
coalition's project team, met yesterday with New Komeito's Chikara 
Sakaguchi, a project team member and former health, labor and 
welfare minister. In the meeting, Sakaguchi seems to have conveyed 
his party's policy of aiming at an early settlement to Nukaga. 
Therefore, the LDP and New Komeito have now focused on the wording 
in the government's mid-term program. 
 
In this connection, New Komeito Secretary General Kazuo Kitagawa 
indicated the possibility that the New Komeito would make 
concessions. He stated in a press conference yesterday: "It would be 
better to use expressions that show our efforts to recover the 
economy. I don't think there is a big difference (in the views of 
the government and New Komeito)." Appearing on BS11 digital program, 
former LDP Secretary General Bunmei Ibuki pointed out: "Since the 
New Komeito has remained in the ruling camp for a long time, it 
understands well." 
 
ZUMWALT