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UNCLAS SECTION 01 OF 12 TOKYO 000106 
 
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 1/20/09 
 
Index: 
 
U.S.-Japan relations: 
1) President Bush makes final telephone call to Prime Minister Aso 
(Asahi) 
2) Government coordinating end of March summit meeting between Prime 
Minister Aso, President Obama  (Yomiuri) 
3) Government will propose to Obama administration regular bilateral 
talks on environmental, economic and trade issues  (Nikkei) 
4) Joint Yomiuri-BBC 17-nation poll on Obama administration finds 
Japan second from bottom with 48 PERCENT  in expecting U.S.' 
external relations to improve  (Yomiuri) 
 
Aso and the pirates: 
5) Prime Minister Aso in Diet policy speech to vow full efforts to 
deal with the piracy issue  (Yomiuri) 
6) Government plans to speed up process so that MSDF anti-piracy 
dispatch to waters of Somalia under maritime policing action could 
happen in March  (Asahi) 
7) Prospect for an early passage of legislation to authorize MSDF 
dispatch for anti-piracy mission with broader powers is still not in 
sight  (Mainichi) 
8) Dispatch of MSDF to deal with pirates off Somalia will occur 
before the key policy players are fully on board  (Mainichi) 
9) Government struggling with a mountain of unresolved issues in 
dispatching MSDF to waters off Somalia to deal with piracy  (Tokyo 
Shimbun) 
 
10) Special MSDF unit envisioned to rescue ships attacked by pirates 
on the open sea  (Tokyo Shimbun) 
11) Rules of engagement for MSDF engaged in anti-piracy mission will 
not be disclosed  (Asahi) 
 
12) Defense Ministry is planning to develop early-warning satellites 
under new space law  (Sankei) 
 
Diet affairs: 
13) Showdown in the Diet over the passage of the controversial 
second supplementary budget bill to come on Jan. 23  (Nikkei) 
14) Prime Minister Aso in Diet speech to promise to create 1.6 
million jobs over three years  (Nikkei) 
15) Aso to promise to raise consumption tax in his Diet policy 
speech  (Yomiuri) 
16) LDP big-wig Hidenao Nakagawa may be the next "rebel" to defy 
party on Aso's promise to hike consumption tax  (Tokyo Shimbun) 
 
Articles: 
 
1) Bush says good-bye to Aso 
 
ASAHI (Page 4) (Full) 
January 20, 2009 
 
"I will hand over the presidency to Mr. Obama tomorrow," U.S. 
President Bush, whose term is to end today, told Prime Minister Aso 
yesterday evening over the telephone. "I'm glad that our two 
countries have been able to work together over the past eight years 
to deal with various challenges facing the international community," 
Bush said. 
 
Bush proposed the telephone call, and Aso responded at his official 
residence. Aso told Bush, "I will never forget your encouraging 
 
TOKYO 00000106  002 OF 012 
 
 
support of Japan on the abductions and other bilateral issues with 
North Korea." Aso was also quoted as saying, "Over the past eight 
years, the Japan-U.S. alliance has greatly deepened in the security 
area." 
 
2) Japan-U.S. summit by late March: gov't 
 
YOMIURI (Page 2) (Full) 
January 20, 2009 
 
The government has entered into coordination with the U.S. 
government for Prime Minister Aso to visit the United States before 
the second financial summit, which is scheduled to be held in London 
on April 2, for a summit meeting with incoming U.S. President Obama, 
government sources revealed yesterday. 
 
The summit meeting is expected to focus on the current financial 
crisis and other economic issues. Aso and Obama will also reconfirm 
the Japan-U.S. alliance and its importance. In addition, the two 
leaders will also confirm that Japan and the United States will work 
together to meet climate change and fight terrorism. Aso will ask 
Obama for cooperation over North Korea's nuclear programs and 
Japanese nationals abducted to North Korea. 
 
Meanwhile, Aso had a telephone conversation with outgoing U.S. 
President Bush yesterday evening. Aso expressed his gratitude to 
Bush, saying: "I would like to express my respect again for your 
heavy responsibility you have fulfilled as the world leader. I will 
never forget your encouraging support of Japan over bilateral issues 
with North Korea, including the abduction issue. The alliance 
between Japan and the United States has significantly deepened 
(during Bush's terms) over the past eight years." 
 
Bush told Aso, "I am glad that the United States and Japan have been 
able to work together to meet various challenges facing the 
international community." The telephone conversation was held at 
Bush's proposal. 
 
3) Government to cooperate with Obama administration on environment, 
trade, proposing complete overhaul of regular bilateral dialogues 
 
NIKKEI (Page 1) (Full) 
January 17, 2009 
 
Following the inauguration of President Barack Obama on Jan. 20, the 
Japanese government will enter into consultations with Washington on 
creating a new economic dialogue to be carried out at regular 
intervals. In addition to bilateral issues, the proposal will likely 
include the setting up of several forums for dialogue on such 
global-scale problems as the world economy. Particularly on the 
global-warming issue, since the Obama administration is expected to 
change to a more pro-active stance than the Bush administration, 
Tokyo's thinking is for Japan to take the initiative in 
international negotiations that will start in earnest through the 
accumulation of close consultations with the U.S. 
 
Currently, there are regular talks with the Bush administration 
called, U.S.-Japan Partnership for Growth, with meetings held on 
such specific themes as regulatory reform and trade. Taking 
advantage of the launching of the Obama administration, the 
government would revamp these talks. Because it has been eight years 
since there was a Democratic Party administration in Washington, the 
 
TOKYO 00000106  003 OF 012 
 
 
judgment was that it was important to build up a multilayered 
relationship by installing a fixed framework to enable the carrying 
out of a dialogue on several fronts. 
 
After the Obama administration is launched, the government is 
thinking of reaching agreement as early as spring based on talks. 
Specifically, other than global environment problems, the plan is to 
create several forums for tackling such broad topics as regulatory 
reform, investment, trade, and fiscal policy. There is also a 
conceptual plan for the creation of an additional forum for 
private-sector business and knowledgeable persons to exchange views. 
As for the dialogue, consideration is being given to have 
vice-minister level meetings more than once a year from the various 
relevant ministries and agencies such as the Foreign Ministry and 
Ministry of Economy, Trade, and Industry. The name for the dialogue 
will be nailed down later when the next U.S. administration is in 
place. 
 
4) Poll: Majority in 17 countries sees U.S. foreign relations as 
changing for the better with Obama administration 
 
YOMIURI (Page 2) (Full) 
January 20, 2009 
 
The Yomiuri Shimbun conducted a joint opinion poll with British 
Broadcasting Corporation (BBC) in 17 countries, including the United 
States and countries in Europe and Asia. In the survey, respondents 
were asked if they thought the United States' foreign relations 
would improve with President-elect Obama and his incoming 
administration. To this question, "yes" accounted for a majority in 
all countries. Obama's advocacy of switching from the Bush 
administration's unilateralism to multilateral cooperation seems to 
have led to public expectations for better relations. 
 
In Japan, "yes" accounted for 48 PERCENT , the second lowest level 
among all 17 countries. Meanwhile, "no change" reached 37 PERCENT , 
the highest figure among the 17 countries. Among other countries, 
"yes" accounted for 78 PERCENT  in Germany and 76 PERCENT  in 
France. As seen from these results, the figure was high in European 
countries that were at odds with the United States over its war in 
Iraq under the Bush administration. 
 
Respondents were further asked how they thought Obama should respond 
to the current international challenges. To this question, a 
majority in all 17 countries answered that the financial crisis 
should top the agenda. The figure reached 93 PERCENT  in China, 77 
PERCENT  in Japan, and 75 PERCENT  in the United States. 
 
The survey was initiated by BBC and conducted from November last 
year through January this year in a total of 17 countries, including 
the United States, France, Germany, and Russia. There were answers 
from 17,356 persons. The Yomiuri Shimbun was in charge of polling in 
Japan. 
 
5) Aso to vow in policy speech full anti-piracy efforts 
 
YOMIURI (Page 2) (Full) 
January 17, 2009 
 
Prime Minister Aso decided yesterday to vow in a policy speech in 
the Diet that the government will make utmost efforts to deal with 
piracy. He intends to announce a plan to dispatch Maritime 
 
TOKYO 00000106  004 OF 012 
 
 
Self-Defense Force (MSDF) vessels to waters off Somalia, Africa, by 
issuing an order for maritime security operations under the 
Self-Defense Forces Law while making utmost efforts to enact new 
legislation against pirates. 
 
In the speech, Aso will emphasize that the rampant piracy in waters 
off Somalia is "a threat to the international community, including 
Japan, and a challenge that must be handled immediately." He will 
also state: "Japan, as a seafaring country, should promptly map out 
feasible measures in cooperation with other countries and look into 
preparing new legislation." He will express his resolve to enact "a 
law to punish and crack down on pirates" while invoking a provision 
for maritime policing action. The government and the ruling 
coalition hope to set the prime minister's policy speech for Jan. 26 
after seeing progress in deliberations on the second supplementary 
budget bill for fiscal 2008 in the House of Councillors. 
 
6) Government to dispatch MSDF vessels to Somalia to protect 
Japan-related ships from pirates possibly in March 
 
ASAHI (Page 1) (Full) 
January 17, 2009 
 
The government has decided to issue an order for maritime policing 
action based on the Self-Defense Forces Law possibly in March to 
dispatch Maritime Self-Defense Force (MSDF) vessels to waters off 
Somalia, the eastern part of Africa, to prevent possible attacks by 
pirates. Defense Minister Hamada will instruct the MSDF later this 
month to launch preparations. The government and the ruling camp 
intend to submit related a new anti-piracy bill to the Diet by early 
March. However, since it will take time for such legislation to pass 
through the Diet, they have decided to temporarily resort to the 
provision pertaining to maritime policing action. 
 
The ruling camp's project team has decided to set guidelines for 
MSDF operations on Jan. 20. Prime Minister Aso told reporters at the 
Prime Minister's Office yesterday: "As soon as the team prepares 
guidelines, the government will swiftly take action. Immediate 
action is needed." The defense minister will instruct the MSDF to 
start preparations in response to the prime minister's intension 
after the necessary procedures in the Liberal Democratic Party and 
the New Komeito are completed. The period of preparations is said to 
be one to two months, so the government expects to start MSDF 
operations off Somalia in March or later. 
 
The government and the ruling camp have decided to have the MSDF 
also provide protection to foreign vessels carrying Japanese people 
or goods, in addition to Japan-related ships. Troops will be allowed 
to use weapons during anti-piracy operations only in the cases of 
legitimate self-defense and averting imminent danger under the 
Policemen's Duty Performance Law. After a basic plan is adopted in a 
cabinet meeting, the government will detail it in a Diet session. 
 
Given that the provision does not assume the dispatch of MSDF 
vessels to the open sea, some critics point out the unclarity of 
weapon-use standards. To make it clear that the invoking of the 
provision is a stopgap measure by the time of the passage of new 
legislation, the government intends to issue an order when new 
legislation is endorsed in a cabinet meeting. 
 
According to a report revealed on Jan. 16 by the International 
Maritime Bureau (based in London), the number of piracy cases that 
 
TOKYO 00000106  005 OF 012 
 
 
occurred off Somalia in 2008 doubled that in the previous year to 
111, accounting for slightly less than 40 PERCENT  of the 293 cases 
across the world. 
 
7) Government decides to dispatch MSDF vessels to Somalia waters; 
Weapons use yet to be fully discussed 
 
MAINICHI (Page 5) (Full) 
January 17, 2009 
 
Prime Minister Taro Aso has decided to issue an order to the 
Maritime Self-Defense Force (MSDF) for maritime security operations 
in support of international anti-piracy efforts in waters off 
Somalia. This decision reflects his desire to prevent Japan from 
falling behind the U.S., European countries and China, which have 
already sent vessels into the pirate-infested waters. The government 
intends to deploy MSDF vessels to the waters under a provision in 
the Self-Defense Forces Law for maritime security operations, but 
since it assumes operations in Japanese waters, there are a number 
of legal problems, such as standards for the use of weapons. 
Further, no prospects are in sight for new anti-piracy legislation 
to clear the Diet as aimed at by the government and the ruling camp, 
either. British and Indian naval forces reportedly killed or wounded 
pirates and civilians in that area. The government is set to issue 
the order before fully discussing the SDF's risk of using weapons 
overseas for the first time. The political decision came before such 
a discussion. 
 
A member of the ruling parties' project team tasked with working out 
anti-piracy measures said: "Destroyers should be sent out anyhow. 
There is no need to think about anything difficult." The team, which 
was launched on Jan. 9, is eager, in a sense, to persuade Defense 
Minister Yasukazu Hamada and others who are cautious about issuing 
an order for maritime security operations. 
 
The MSDF, however, will not be allowed to use weapons unless it is 
for legitimate self-defense or avoiding imminent danger. The 
government invoked the provision for maritime policing action twice 
in the past against an unidentified ship violating Japanese waters 
and in another case. The provision does not assume an escort mission 
in the open sea. 
 
A senior Defense Ministry official grumbled: "The government will 
not be able to hold out if the MSDF does not extend a helping hand 
to foreign ships or kill or wound pirates as a result of excessive 
self-defense." The prime minister will leave a serious judgment to 
the commander in the region. This decision may become a turning 
point for SDF missions overseas. 
 
8) Government likely to dispatch MSDF on Somalia anti-piracy mission 
by jumping gun; Some are tolerant of allowing MSDF to sink pirate 
ships on unexpected high-seas mission 
 
MAINICHI (Page 2) (Abridged slightly) 
January 18, 2009 
 
Ryo Matsuo 
 
The government has decided to dispatch the Maritime Self-Defense 
Force to conduct anti-piracy operations in waters off Somalia, East 
Africa, by invoking the maritime policing activity clause. It will 
be the country's third case of maritime policing activities. In the 
 
TOKYO 00000106  006 OF 012 
 
 
two previous cases, the MSDF was mobilized to deal with certain 
submarines that entered into Japanese territorial waters. This time 
round, the MSDF will be on a long-term high-seas mission to protect 
merchant ships from pirates. With the envisioned MSDF mission only 
discussed in outline by the government and the ruling bloc, there 
still remain many challenges. The government is likely to dispatch 
the MSDF by jumping the gun. 
 
Geographical restrictions are not specified under Article 82 of the 
SDF Law that stipulates maritime policing activities. There is a 
view in the Defense Ministry that has envisaged only responses to 
intrusions into Japanese waters by such countries as North Korea and 
China that it is insufficient to dispatch the MSDF on a long-term 
pelagic mission under Article 82. 
 
At the same time, there is a sense of alarm about the government and 
ruling bloc that have yet to deepen their discussion on the 
envisaged anti-piracy mission that would force the MSDF to undertake 
unprecedented duties, such as escorting (commercial vessels) and 
dealing with heavily armed pirates. 
 
Last year, an incident occurred in which hostages died because the 
Indian Navy sank a fishing boat on which pirates boarded. Based on 
this case, the ruling bloc's project team temporarily tilted toward 
the idea that such was possible for the MSDF, as well. Fearing MSDF 
members being charged for excessive self-defense, the Defense 
Ministry revise the course. 
 
Such was probably because the optimistic view has been prevalent 
that no pirates would attack destroyers. But as seen in Defense 
Minister Yasukazu Hamada's comment, "In view of every possible 
situation, we cannot discuss (the anti-piracy mission) so easily," 
the ministry is calling for a cautious setup. 
 
Meanwhile, in performing maritime policing activities, the use of 
weapons is limited to legitimate self-defense and emergency 
evacuations under the Police Duties Execution Law. An order for 
maritime policing activities was issued for the first time in 1999 
in reaction to an intrusion into waters off the Noto Peninsula by a 
suspicious boat. In this incident, the boat moved out of Japanese 
waters toward North Korea as an MSDF destroyer fired warning shots 
at it and a P3C dropped a bomb close to it. In 2004, the MSDF 
stopped short of firing shots as an order was issued after a Chinese 
nuclear-powered submarine left Japanese territorial waters. 
 
In December 2001, a Japan Coast Guard patrol boat fired at a 
suspicious vessel in the East China Sea after it was attacked by a 
rocket bomb. At the time, an order for maritime policing activities 
was not issued. 
 
9) Numerous challenges to dispatching MSDF to waters off Somalia 
troubling government 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
January 19, 2009 
 
The government is moving ahead with preparations to dispatch the 
Maritime Self-Defense Force (MSDF) for anti-piracy operations in the 
waters off Somalia in Africa. With the emphasis being on speed, 
there has been no time to prepare new legislation, but the dispatch 
based on the maritime policing action provision of the Self-Defense 
Forces Law leaves many problems unanswered. 
 
TOKYO 00000106  007 OF 012 
 
 
 
After the ruling parties' project team on anti-piracy measures 
formally approves the dispatch of MSDF vessels on or around Jan. 20, 
Prime Minister Aso will instruct Defense Minister Hamada to prepare 
the dispatch. It will take approximately a month for the MSDF to get 
ready to sail, so the outlook is that the operation will begin in 
the area around Somalia in March or later. The government is rushing 
the dispatch because of the request for such from the maritime 
shipping industry. While European, U.S. and even China are sending 
warships, Japan is afraid it is being left behind. 
 
However, the maritime policing action is a provision that assumes 
criminal intrusion into Japanese waters such as by a suspicious 
vessel. It was set up to handle situations in waters near Japan. 
 
The government argues that there is no geographical limit citing 
language in the SDF law that allows the "protection of lives and 
property at sea." However, such a broad interpretation is likely to 
be pursued by the opposition parties. The use of weapons applies the 
standard set by the Police Law. It is limited to proper self-defense 
and emergency evacuation, allowing warning shots and firing at a 
threat. 
 
However, it is difficult when at the local site the judge in an 
instance what firing is possible. At a meeting of the project team 
on the 15th, the chief cabinet secretary took the view that it was 
possible to fire at the pirate ships, but the Defense Ministry is 
reluctant to take such steps, so re-coordination is going on. If a 
foreign ship is attacked by pirates, the MSDF can only look on. The 
only recourse it has is to report the incident to the warships of 
another country. 
 
10) Measures against piracy in waters off Somalia: Defense Ministry 
mulling dispatching special unit to rescue vessels; Possibility of 
using weapons to increase 
 
TOKYO SHIMBUN (Top Play) (Full) 
January 17, 2009 
 
Tokyo Shimbun learned on January 16 that the Defense Ministry, which 
now finds it imperative to come up with measures, are mulling 
dispatching the Maritime Self-Defense Force's (MSDF) special unit 
"Special Security Guard" along with an escort ship, envisaging the 
rescue of a captured vessel. The dispatch of a special unit will 
enhance the efficacy of measures against piracy. It will also 
increase the possibility of the use of weapons. 
 
The Special Security Guard was formed at the MSDF's Edajima Base in 
Hiroshima Prefecture in March 2001 with North Korea's spy ship 
incident occurred off the Noto Peninsula as the occasion. It 
consists of three platoons with about 80 personnel. Their duty is to 
get aboard a spy ship, using a high-speed boat and a helicopter, and 
put down pirates by force. 
 
The government plans to adopt an escort system of an escort ship 
leading Japanese ships. However, there is the possibility of a ship 
that deviated from the convoy or a ship that is navigating on its 
own being attacked. A plan to use the Special Security Guard 
surfaced, because it would be unforgivable to say "we could not do 
anything at that point," as a Defense Ministry source said. 
 
According to the Defense Ministry's plan, one platoon consisting of 
 
TOKYO 00000106  008 OF 012 
 
 
over 20 personnel from the Special Security Guard will be on board 
an escort ship. The ship will be fitted with a high-speed boat. A 
helicopter fitted to the escort ship will also be used. 
 
The government intends to dispatch the MSDF, announcing maritime 
security guard activities stipulated under the Self-Defense Forces 
(SDF) Law. The use of weapons will be allowed only for self defense 
or emergency evacuation. 
 
Even so, in the event the enemy was a country or an equivalent 
organization, if the Special Security Guard goes off to rescue a 
captured ship, the action would constitute an emergency escort 
(kaketsuke keigo), the use of armed force, which Article 9 of the 
Constitution bans. The government's position is that since 
international law stipulates pirates as civilians, emergency escort 
does not fall under the use of armed force. 
 
However, some Defense Ministry officials are cautious about the 
plan, with one saying, "We should not consider anti-piracy measures 
casually, because if a rescue operation brings about many 
casualties, public opinion could come to a pitch of excitement, 
resulting in the downfall of the Aso cabinet. 
 
Prime Minister to order preparation for dispatch of MSDF vessel 
possibly next week 
 
Referring to the dispatch of an MSDF vessel as a measure against 
piracy in the waters off Somalia, Prime Minister Taro Aso on the 
evening of the 16th noted, "Once the ruling parties' project team 
reaches a decision, the government will take an action 
immediately." 
 
Aso thus indicated his intention to order Defense Minister Yasukazu 
Hamada to prepare the dispatch of an MSDF ship immediately, once the 
ruling parties' project team at a meeting to be held on the 20 
approves such a dispatch, based on the announcement of maritime 
security activities under the SDF Law. 
 
Aso late last year ordered the ruling parties and Hamada consider 
establishing a new law on the dispatch of an MSDF vessel for 
maritime security activities and anti-piracy measures. He thus 
indicated his intention to dispatch an MSDF ship, by ending 
coordination of views among the government and the ruling parties 
quckly. 
 
11) Gov't, ruling coalition not to open guidelines for fighting back 
against pirates 
 
ASAHI (Page 4) (Full) 
January 20, 2009 
 
The government and the ruling parties have decided not to open 
weapons use guidelines or the so-called rules of engagement (ROE) 
for the Maritime Self-Defense Force's maritime security operations 
against pirates in waters off Somalia. MSDF personnel will be 
allowed to use weapons under a law that governs police officers in 
the line of duty, and their use of weapons is limited to legitimate 
self-defense or emergency evacuation only. However, the government 
will not disclose any specific cases about their use of weapons. 
 
The ROE is what prescribes conditions to allow weapons use and sets 
procedures to fight back. The armed forces of foreign countries have 
 
TOKYO 00000106  009 OF 012 
 
 
their own guidelines that are usually confidential. The ruling 
Liberal Democratic Party and its coalition partner, the New Komeito, 
will hold a meeting of their antipiracy project team today to 
discuss antipiracy measures, focusing on weapons use. In the 
meeting, the project team is expected to approve the government's 
weapons use guidelines based on the Police Officers Duty Performance 
Law and will allow weapons use specifically in conformity with the 
ROE, which will be determined by the Defense Ministry in 
consultations with the Justice Ministry and the National Police 
Agency. 
 
Concerning the use of weapons in maritime security operations, the 
ruling coalition's project team has referred to British and Indian 
naval vessels' recent shootouts against pirates as actions within 
the scope of legitimate self-defense and emergency evacuation. 
However, the Defense Ministry remains reluctant to nod. 
 
12) Defense Ministry to develop early warning satellite in wake of 
enactment of space law 
 
SANKEI (Page 2) (Abridged slightly) 
January 17, 2009 
 
The Defense Ministry on Jan. 16 formulated the basic policy for the 
development and use of space, following the enactment of the basic 
law on the use of space that lifted the ban on using space for 
defense purposes. As future steps, the policy lists the development 
of an early warning satellite that can detect a ballistic missile 
soon after it is launched and a study on electric wave gathering 
satellite to monitor military radio communications. Also in the 
policy is a study on a system to launch small satellites using 
aircrafts. 
 
In the world, only the United States and Russia possess early 
warning satellites. The introduction of such would be a focus in 
formulating the new National Defense Program Guidelines (NDPG) and 
the Midterm Defense Buildup Program (fiscal 2010 - 2014) by the end 
of the year. If the introduction of early warning satellites is 
incorporated in the NDPG and the midterm buildup program, the 
ministry plans to launch on a priority basis the study and 
development of a highly sensitive infrared sensor capable of 
detecting ground-launched missiles from satellites. 
 
The current ballistic missile defense (MBD) system is designed for 
ground- and ship-based radars to detect and track a ballistic 
missile flying to Japan and for sea-based MS-3 missiles to intercept 
it. Missile launch information can be detected only by U.S. early 
warning satellites, and the Self-Defense Forces receive such 
information from the United States. Further, the 
information-gathering satellites now in operation can take imagery 
that is on a commercial level in resolution. 
 
Because the envisaged satellite can be used for multiple purposes, 
such as disaster monitoring, the government plans to study it with 
the involvement of it all government offices. At the same time, the 
Defense Ministry plans to study the development of a satellite 
picking military radio communications and electric waves over Japan. 
Nevertheless, it has already been five years since a project was 
launched for the development of intelligence-gathering satellites to 
be operated by the Cabinet Satellite Intelligence Center. "Putting 
such satellites to practical use would be a mid- to long-term 
project," a senior Defense Ministry official noted. 
 
TOKYO 00000106  010 OF 012 
 
 
 
13) Battle between ruling, opposition camps over whether to take 
vote on second extra budget on Jan. 23 
 
NIKKEI (Page 2) (Full) 
January 19, 2009 
 
The Diet will start deliberations on the second supplementary budget 
for fiscal 2008, including the 2 trillion yen cash-handout program, 
in the House of Councillors committee. The ruling parties aim to 
take a vote on the fiscal 2008 second budget and related bills and 
enact them by Jan. 23. The ruling coalition is also considering 
launching deliberations on the state budget for fiscal 2009 before 
submitting a stopgap bill to maintain the current provisional rates 
for gasoline and other road-related taxes. 
 
Appearing on an NHK talk show on Sunday, Tadamori Oshima, chairman 
of the ruling Liberal Democratic Party's (LDP) Diet Affairs 
Committee, urged the Democratic Party of Japan (DPJ), the largest 
party in the House of Councillors, to cooperate to enact the second 
supplementary budget before the end of this week. DPJ Diet Affairs 
Committee Chairman Kenji Yamaoka, however, categorically said on the 
talk show: "(Enacting on Jan. 23) is not our party's decision." He 
then asserted the need for thorough deliberations, arguing: "There 
are many themes such as the consumption issue and the issue of 
'watari' practice (in which retired bureaucrats are allowed to 
switch one cushy job to another multiple times)" 
 
In consideration of possible negative effects on the livelihoods of 
the people should the budget for fiscal 2009 and related bills fail 
to clear the Diet before the end of March, the ruling coalition is 
considering submitting a stopgap bill to extend the current 
provisional rates for gasoline and other road-related taxes beyond 
their expiration at the end of March. The ruling camp will make a 
decision as early as this week on whether to present the bill after 
ascertaining how the opposition will act. 
 
14) Prime Minister Aso to promise in draft policy speech to increase 
1.6 million jobs over three years 
 
NIKKEI (Page 2) (Full) 
January 19, 2009 
 
The contents of a draft policy speech Prime Minister Taro Aso will 
deliver at the Diet were revealed on Jan. 18. In the wake of the 
sudden worsening of the employment situation, Aso promises in the 
draft policy speech to establish a foundation with the worth of 400 
billion yen in regional areas, as well as to create 1.6 million jobs 
over the next three years by supporting medical and nursing-care 
services. 
 
Aso also pledges to give priority to stimulating the economy for the 
time being. He stresses that he aims to have Japan overcome the 
economic slump at first in the world, after enacting the fiscal 2008 
second supplementary budget and fiscal 2009 budget as early as 
possible. 
 
Regarding the medium- and long-term economic and fiscal management, 
Aso promises to come up with legal measures necessary for 
implementing in fiscal 2011 tax reforms, including the consumption 
tax. 
 
 
TOKYO 00000106  011 OF 012 
 
 
15) Premier to stress in policy speech consumption tax hike in 
fiscal 2011 
 
YOMIURI (Top play) (Almost full) 
January 18, 2009 
 
The full text of a draft policy speech Prime Minister Aso will 
deliver in the current Diet session was revealed on Jan. 17. The 
draft underscores a hike in the consumption tax in fiscal 2011, 
premised on an economic turnaround. Following the sharp 
deterioration of the employment situation, it also notes a 
government plan to implement an employment measure that will create 
1.6 million jobs. Another feature of the speech is that it clarifies 
Aso's stance of moving way from the structural reform policy 
propelled by former Prime Minister Koizumi. 
 
The government and the ruing parties aim at having the prime 
minister deliver a policy speech on the 26th. The speech places 
emphasis on making an appeal on the prime minister's ideas and 
implementation policy to the people. The speech at the outset 
mentions a society that should be aimed at, followed by main agenda 
items, instead of a mere list of policies of each government agency. 
As a result, the text is the shortest with 8,300 letters since the 
one delivered by former Prime Minister Koizumi in 2006. 
 
The draft stresses the prime minister's determination to hurriedly 
implement economic stimulus measures so that the economy will emerge 
from the global recession. It also shows his eagerness to raise the 
sales tax in fiscal 2011, noting that if public spending is to be 
increased, responsibility for the fiscal side must be clarified. In 
order to realize a sustainable social security system, the draft 
proposes taking necessary legal measures beforehand so that a 
drastic reform of the tax code, including the consumption tax, can 
be implemented in fiscal 2011, once the economy recovers, to be 
lasted in stages by the middle of the 2010s. 
 
The package of additional employment measures adopted in December 
last year incorporated a goal of creating 1.4 million jobs over 
three years to deal with the serious employment situation. The draft 
speech puts up a policy of creating 1.6 million jobs over three 
years. This figure is the upgraded version of the goal incorporated 
in the package of employment measures under an Employment New Deal 
program (tentative name), which the government will compile 
shortly. 
 
Regarding the role of the government, the draft indicates Aso's 
stance of moving away from the structural reform policy, pointing 
out that it is not possible to envision the social and economic form 
Japan should take, based only on such slogans, 'from the government 
to the private sector,' or 'a big government or a small government,' 
and that leaving matters to the market will not necessarily improve 
everything. 
 
As to measures to deal with piracy in the waters off Somalia, the 
draft notes that the government will consider establishing a new 
law, by promptly adopting implementable measures. It thus indicates 
Aso's determination to dispatch the MSDF, based on the announcement 
of maritime security activities under the existing law and to 
establish a pirate punishment and control law. 
 
16) Hidenao Nakagawa hints at possibility of defying Aso's 
consumption tax proposal 
 
TOKYO 00000106  012 OF 012 
 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
Evening, January 19, 2009 
 
Hidenao Nakagawa, former secretary general of the ruling Liberal 
Democratic Party (LDP), asked on a TBS program on the morning of 
Jan. 19 how he would respond if the timing for increasing the 
consumption tax was written in an additional clause to a fiscal 2009 
tax reform bill, said: "I will make a decision at that time." He 
hinted at the possibility of not voting in favor of the fiscal 2009 
tax reform bill. 
 
He explained the reason for his opposition to the consumption tax 
hike proposal: "The LDP did not pledge in the 2005 general election 
campaign to create a law to raise the consumption tax during the 
current term of the Lower House." 
 
Asked about Prime Minister Taro Aso's eagerness for stipulating the 
timing of a consumption tax hike in the bill, Nakagawa said: "Making 
a bold decision for the sake of the people is not a policy 
flip-flop." He urged Aso to shift his policy. 
 
ZUMWALT