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UNCLAS SECTION 01 OF 13 TOKYO 000111 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 01/20/09 
 
INDEX: 
 
(1) Japan should be prepared for "Obama shock" of deepening ties 
with China; A bipolar world must also be envisaged (Mainichi) 
 
(2) President Obama: Hope for revival of American dream (Asahi) 
 
(3) Expert panel to prepare law specifying cases subject to civil 
lawsuit against foreign governments (Asahi) 
 
(4) Foreign Ministry has left contributions to UN totaling 800 
million yen unattended for two to eight years (Yomiuri) 
 
(5) Jiji opinion poll finds 37 PERCENT  of public would favor DPJ, 
21 PERCENT  the LDP when voting in the proportional representation 
portion of the Lower House election (Tokyo Shimbun) 
 
(6) Sankei-FNN poll on Aso cabinet, political parties (Sankei) 
 
(7) Scope column: Confrontation between Aso and Nakagawa 
intensifying over whether to mention consumption tax hike in 
additional clause (Tokyo Shimbun) 
 
(8) TOP HEADLINES 
 
(9) EDITORIALS 
 
(10) Prime Minister's schedule, January 19 (Nikkei) 
 
ARTICLES: 
 
(1) Japan should be prepared for "Obama shock" of deepening ties 
with China; A bipolar world must also be envisaged 
 
MAINICHI (Page 6) (Abridged slightly) 
January 20, 2009 
 
Toshihiko Kasahara, foreign news desk 
 
Has the world ever pinned such strong hopes on the inauguration of 
one leader? I am talking about U.S. President-elect Barack Obama, 
who will be sworn in on January 20. Japan's circumstances are 
somewhat different (from the rest of the world), however. Japan 
fears that China will steal America's heart. I boldly predict that 
Japan's concern will become reality, that Japanese diplomacy will be 
hit by a moderate "Obama shock," and that it will mark a watershed 
for the Japan-U.S. alliance. 
 
In predicting Obama diplomacy, I would like to introduce to readers 
a suggestive anecdote, which I learned from an American acquaintance 
who is certain to join the new Obama administration as a senior 
official responsible for Asian diplomacy. 
 
In March 2008, in the middle of the Democratic presidential 
nomination race, some 40 foreign-policy staffers of the Obama and 
Hillary Clinton camps assembled at a Florida hotel. They were all 
prospective candidates for senior diplomatic posts under the next 
administration. The purpose was to consolidate foreign policies 
ahead of the launching of a Democratic administration. 
 
Several days of their seminar was focused on policies toward China, 
Russia and India. The three countries were singled out because they 
 
TOKYO 00000111  002 OF 013 
 
 
would impact on the future of the international order. Japan was 
discussed only from the context of debating China policy, according 
to my acquaintance. 
 
I have no intention of discussing America's propensity to slight 
Japan based on this event. Japan is important for the United States. 
But the meaning of "important" must be taken relative to America's 
global strategy. 
 
I drew up the following Japan-U.S. relations diagram as I watched 
foreign leaders constantly visiting the White House during my stint 
in Washington until last spring. 
 
America is a popular guy who is drawing attention from all over the 
world. This hot-blooded guy has a hard time dealing with all sorts 
of women from beautiful ones to stalkers. He has many girlfriends 
(allies), as well. Japan is a truly devoted woman. America just 
whispers in Japan's ear, "You are important," and it obediently 
walks three steps behind him. 
 
This is not a joke. Let us recall a sequence of events leading up to 
America's delisting of North Korea last October as a state sponsor 
of terrorism. Japan had repeatedly asked the United States not to 
delist the North, and President George W. Bush said that he would 
not forget the issue of Japanese nationals abducted by that country. 
Despite all that, the United States went ahead and removed the North 
from its list of state sponsors of terrorism. Japan is still calling 
for strengthening relations with the United States like someone 
under a spell. 
 
The Obama administration is so popular -- -- it may enter the 
Guinness Book of Records that Japan may become jealous. The 
international community's high expectations for Obama are a reversal 
of the dislike for the enormous power the United States had 
demonstrated under the Bush administration. But the picture of an 
end to unilateral control by the United States and a multi-polarized 
world is not necessarily correct. 
 
In reality, budding power centers are dispersed among European 
powers, Russia, China, and India, centering on the United States, 
the sole superpower in the world. With its potential national power, 
China is growing into a pole in itself, comparable to the United 
States. 
 
The Newsweek New Year issue carries an op-ed by Richard Haass, 
president of the Council on Foreign Relations, which argued: "The 
single most important challenge for the new administration-one with 
the potential to shape the 21st century-is China." 
 
From the denuclearization of North Korean to the energy crisis, the 
world is faced with scores of issues that are difficult to resolve 
without the cooperation of China. 
 
Naoki Tanaka, president of the Center for International Public 
Policy Studies, contributed an essay to the Chuo Koron December 2008 
issue that went: "Today, the United States naturally and clearly 
devotes its energy to policy toward China. In such an age, Japan can 
no longer secure an important position by just calling for the 
maintenance of the security alliance with the United States." 
 
After the end of WWII, Japan has been able to become the world's 
second largest economy owing to the alliance with the Untied States. 
 
TOKYO 00000111  003 OF 013 
 
 
But because of its excessive reliance (on the United States), Japan 
has not been to turn its economic power into political and 
diplomatic power. If Japan continues clinging to its foreign policy 
based on its worldview centering on the alliance with the United 
States, the country's international position would dramatically 
decline. 
 
Japan should proactively pursue multi-polar diplomacy in dealing 
with Asia and international organs while based on coordination with 
the United States. In doing so, it is essential to think 
strategically how to secure national interests with a future 
U.S.-China bipolar world in mind. 
 
Japan, for example, could take the initiative in an effort to launch 
a regular Japan-U.S.-China summit and proactively make proposals in 
areas it takes pride, such as the environment and African issues. 
This should be one option for Japan to increase its influence on the 
United States and China. 
 
(2) President Obama: Hope for revival of American dream 
 
ASAHI (Page 15) (Full) 
January 15, 2009 
 
Barack Obama will assume the presidency of the United States on 
January 20. 
 
I interviewed him when he was an Illinois senator. I visited his law 
firm in downtown Chicago on August 30, 2002. It was part of a 
project to hear and record throughout the U.S. what had happened 
after the civil rights movement in the 1960s. 
 
He is known as a person of eloquence and a good speaker. However, 
what impressed me during the interview was both his gentle manner 
and his inner intensity. Since he was a busy person, he spared me 30 
minutes for the interview. However, the interview in the end lasted 
one hour. This made me feel that he was a warmhearted person. At 
that time, I never expected he would be nominated as a presidential 
candidate, let alone become president. 
 
Mr. Obama openly criticized conventional-type black politicians. In 
Illinois, the first black mayor was elected Chicago in the 1980s. A 
black senator was also elected after that. However, he noted that 
such had not brought about any major change to people's lives. He 
said, "De facto racial segregation centering on residential areas 
will continue for another 50 or even 100 years. The issue will not 
be settled so easily." 
 
I had interviewed more than 80 sources. But none of them made such a 
clear-cut comment. I thought he was a totally new type of black 
politician who advocated a set of ideals for building the nation 
that could serve as a model for the world, while looking at the 
reality of situations in a cool-headed manner. 
 
The poor, densely populated districts of Chicago occupied by black 
residents, with whom Obama has built deep relations extending nearly 
20 years, were not his only power base. I took notice of the fact 
that he was widely supported in the Lake Michigan area, as well, 
which is inhabited by many wealthy white liberals with high 
educational backgrounds. 
 
As far as I could see, while wealthy people, including black 
 
TOKYO 00000111  004 OF 013 
 
 
politicians, live in pleasant residential areas, poor people living 
in crime-ridden areas have been subject to day-to-day threats. 
Immigrants from Latin America and Asia have been sharply increasing. 
A new solidarity that transcended the racial framework had to be 
sought. Obama not only understood this but also was even then trying 
to realize that. He said: "I would like to find common challenges in 
the economic, housing and education areas and build a new political 
coalition with a view to the future, where diversification will have 
made headway." 
 
Even now, the war on poverty in the U.S. is still left unattended, 
even though America has become the most powerful nation in the 
world. 
 
The current serious economic turmoil has given many white voters the 
push to overcome their racial prejudice. The long-standing 
"small-government" policy has widened the social fissure. As a long- 
to mid-term public policy to correct this, a public education 
system, in particular, expansion of public subsidies for preschool 
education, is drawing attention. Obama is characterizing that as a 
desirable strategic public investment for the future, along with the 
nurturing of environmentally-friendly new industries. 
 
This reminds me of another lineage of American values, which has 
created a dilemma for the U.S. to try to settle dilemma, namely, the 
question of whether to have "freedom" or "equality" in the effort to 
provide equal opportunities that will satisfy all people. 
 
In a victory speech delivered in Chicago on November 4 last year, 
Obama expressed his resolve to get to the Promised Land, a goal that 
Martin Luther King Jr., the civil-rights leader, could not achieve 
40 years ago for his people. "I have never been more hopeful than I 
am tonight that we will get there," Obama said. 
 
I am hoping to see President Obama try to revive and systematize 
American values that can be accepted by all peoples in the world 
with respect. 
 
(3) Expert panel to prepare law specifying cases subject to civil 
lawsuit against foreign governments 
 
ASAHI (Page 30) (Full) 
January 17, 2009 
 
An expert panel of the Legislative Council (an advisory panel to the 
justice minister) has drawn up draft legislation that would specify 
the scope of cases subject to civil suits filed in Japan against 
foreign governments. In 2006, the Supreme Court acknowledged Japan's 
jurisdiction regarding commercial transactions and other matters, 
but the new legislation would list specific cases subject to civil 
suits in Japan. 
 
Given that cross-border legal disputes have been growing with the 
globalization of business activities, the envisioned law would make 
it easy for companies doing business with foreign governments to 
predict whether trouble with them could be legally settled. 
 
The draft bill is called "a law on our nation's civil jurisdiction 
against foreign countries, etc." (tentative name). In response to 
the panel's recommendations, the Justice Ministry is planning to 
submit the bill to the Diet in February. It has been customary in 
the international community that foreign governments are exempted 
 
TOKYO 00000111  005 OF 013 
 
 
from another country's civil jurisdiction on the grounds that 
holding a trial in another country could infringe on their 
sovereignty.  But Japan, ahead of Britain, the U.S., Australia and 
other countries, aims to prepare legislation to enable civil suits 
against foreign governments. Since the order was rendered by 
Daishin'in (the Supreme Court) in 1928, Japan had long adopted the 
legal interpretation that foreign governments should have immunity, 
but the Supreme Court handed down an unprecedented judgment in 2006 
acknowledging Japanese jurisdiction. 
 
The UN also adopted a treaty regarding civil jurisdiction against 
foreign governments in 2004, and the Japanese government signed it 
in 2007. In line with the contents of the treaty, Japan will enable 
Japanese companies and individuals under the new legislation to file 
a civil suit against the relevant foreign government over ordinary 
commercial transactions, trouble over labor contracts, real estate 
transactions and intellectual property rights, as well as physical 
and asset damages. But U.S. military personnel and individual 
diplomats will continue to be granted immunity from civil suits. 
 
(4) Foreign Ministry has left contributions to UN totaling 800 
million yen unattended for two to eight years 
 
YOMIURI (Page 2) (Full) 
Evening, January 19, 2009 
 
The Foreign Ministry (MOFA) contributes to UN funds for assistance 
to developing countries. In this connection, The Yomiuri Shimbun has 
learned that approximately 816 million yen for 10 funds has been 
left unattended for two to eight years, because those funds  have 
been either closed or suspended. MOFA received notifications on the 
return of contributed money from the UN. However, it failed to take 
procedures for the receipt of such money. MOFA's sloppy 
administrative system will likely be called into question. 
 
The case was revealed through the data MOFA submitted to the Lower 
House Foreign Affairs Committee. The Board of Audit (BOA) last 
November pointed out the contribution problem involving 
approximately 397.5 million yen. A further investigation by MOFA 
found that the amount topping the scale pointed out by the BOA was 
left unheeded. 
 
Activities by the Trust Fund for a Peaceful Settlement of East 
Timor, to which MOFA contributed funds for assistance for a team 
monitoring elections in East Timor, were ended in 2002 at the 
latest. However, 412 million yen in remaining funds that were 
supposed to be contributed to that fund have been left unattended. 
MOFA did not realize until 2008 that the fund had ended. 
 
Activities of the Cambodia Trust Fund for humanitarian assistance to 
Cambodian people have been suspended since 2000. However, MOFA has 
left the remaining funds worth approximately 63.9 million yen as is 
until the UN inquired about it in July 2008. Concerning the Trust 
Fund for Activities by the International Verification Committee 
intended to promote the return and settlement of members of 
Nicaraguan armed groups, too, the UN Secretariat notified MOFA about 
a check to return approximately 970,000 yen. However, MOFA did not 
respond for more than three years. 
 
MOFA explained that its internal checking system was insufficient. 
It is now hurriedly taking measures for most of remaining funds as 
of the end of December 2008, by taking procedures for their return 
 
TOKYO 00000111  006 OF 013 
 
 
or diverting them to other UN funds. 
 
(5) Jiji opinion poll finds 37 PERCENT  of public would favor DPJ, 
21 PERCENT  the LDP when voting in the proportional representation 
portion of the Lower House election 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 17, 2009 
 
According to the January opinion poll carried out by Jiji Press from 
the 9th through the 12th of this month, the support rate of the Aso 
Cabinet rose 1.1 points from last month to 17.8 PERCENT . This is 
the second month in row for the support rate to be below 20 PERCENT 
. The non-support rate dropped 0.7 point to 64.0 PERCENT . Asked 
about which party they would vote for in the proportional 
representation portion of the House of Representatives election, 
37.1 PERCENT  of the public picked the Democratic Party of Japan 
(DPJ). This was almost double the 21.7 PERCENT  who choice the 
Liberal Democratic Party (LDP). 
 
There seems to be connection between the loss of public confidence 
in the Aso Cabinet and the LDP and such incidents as the unclear 
statements of Prime Minister Aso regarding the cash-handout program 
and former Administrative Reform Minister Yoshimi Watanabe leaving 
the LDP. The poll results are likely to have an impact on the Prime 
Minister's managing his administration, including the timing of Diet 
dissolution. 
 
The survey was carried out by face-to-face interviews targeting 
2,000 men and women. The effective response rate was 66.1 PERCENT . 
 
(6) Sankei-FNN poll on Aso cabinet, political parties 
 
SANKEI (Page 5) (Full) 
January 13, 2009 
 
Questions & Answers 
 
(Note) Figures shown in percentage. Figures in parentheses denote 
findings from a previous Sankei-FNN survey conducted Nov. 29-30 last 
year. 
 
Q: Do you support the Aso cabinet? 
 
Yes 18.2 (27.5) 
No 71.4 (58.3) 
Don't know (D/K) 10.4 (14.2) 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 23.4 (26.7) 
Democratic Party of Japan (DPJ or Minshuto) 26.6 (23.6) 
New Komeito (NK) 4.9 (4.1) 
Japanese Communist Party (JCP) 2.9 (2.6) 
Social Democratic Party (SDP or Shaminto) 1.3 (1.9) 
People's New Party (PNP or Kokumin Shinto) 0.5 (0.4) 
Reform Club (RC or Kaikaku Kurabu) 0.2 (0) 
New Party Nippon (NPN or Shinto Nippon) 0.1 (0.1) 
Other political parties 1.2 (0.4) 
None 37.7 (38.4) 
D/K 1.2 (1.8) 
 
 
TOKYO 00000111  007 OF 013 
 
 
Q: Do you appreciate Prime Minister Aso and his cabinet on the 
following points? 
 
Prime Minister Aso's personal character 
Yes 29.4 
No 64.3 
D/K 6.3 
 
 
Prime Minister Aso's leadership 
Yes 10.1 
No 85.1 
D/K 4.8 
 
Economic policy 
Yes 12.0 
No 80.3 
D/K 7.7 
 
Foreign policy 
Yes 19.5 
No 59.3 
D/K 21.2 
 
Plan to hand out cash benefits 
Yes 16.6 
No 77.9 
D/K 5.5 
 
Q: The second supplementary budget for fiscal 2008 includes a plan 
to hand out cash benefits to each and every household. Do you think 
this cash handout plan is a dole-out policy and not desirable? 
 
Yes 75.1 
No 21.4 
D/K 3.5 
 
Q: Do you think the Dietmembers also should receive cash benefits to 
expand consumption? 
 
Yes 26.2 
No 68.0 
D/K 5.8 
 
Q: Who do you think is most appropriate now for Japan's prime 
minister among the following politicians in the ruling and 
opposition parties? 
 
Taro Aso 5.9 (8.8) 
Nobuteru Ishihara 5.1 (5.4) 
Yuriko Koike 4.3 (4.7) 
Junichiro Koizumi 9.9 (11.5) 
Kaoru Yosano 2.6 (2.9) 
Yoshimi Watanabe 8.3 (---) 
Yoichi Masuzoe 5.5 (---) 
Other ruling party lawmakers 1.9 (4.1) 
Ichiro Ozawa 13.2 (11.4) 
Naoto Kan 4.8 (3.7) 
Yukio Hatoyama 1.9 (3.4) 
Katsuya Okada 3.8 (3.3) 
Other opposition party lawmakers 2.9 (2.4) 
None 25.7 (29.2) 
 
TOKYO 00000111  008 OF 013 
 
 
D/K 4.2 (3.6) 
 
Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do 
you think is trustworthier? 
 
Prime Minister Aso 33.4 
DPJ President Ozawa 44.8 
D/K 21.8 
 
Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do 
you think is better in terms of policies? 
 
Prime Minister Aso 24.4 
DPJ President Ozawa 50.5 
D/K 25.1 
 
Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do 
you think is more appealing in election campaigning? 
 
Prime Minister Aso 35.7 
DPJ President Ozawa 40.3 
D/K 24.0 
 
Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do 
you think is more appropriate for prime minister? 
 
Prime Minister Aso 25.2 
DPJ President Ozawa 41.0 
D/K 33.8 
 
 
Q: What do you think is most responsible for the current state of 
job uncertainty? 
 
Global economic situation 47.9 
Japanese government 31.5 
Business managers 12.3 
D/K 2.6 
 
Q: Do you now feel you are affected by the job uncertainty? 
 
Yes 37.8 
No 60.8 
D/K 1.4 
 
Q: The government and the ruling parties have decided to raise the 
consumption tax rate in fiscal 2011, premised on an economic 
turnaround. What do you think about this decision? 
 
I can appreciate it as specifying financial resources 24.3 
I can understand the necessity of raising it in the future, but this 
is not the time to say about it 51.5 
The consumption tax rate should not be raised even in the future 
21.5 
D/K 2.7 
 
Q: Prime Minister Aso has decided to send the Maritime Self-Defense 
Force against pirates in waters off Somalia under the Self-Defense 
Forces Law. What do you think about this decision? 
 
I support the decision as an emergency measure 23.7 
The SDF dispatch should be after creating a new law 47.2 
 
TOKYO 00000111  009 OF 013 
 
 
The SDF should not be sent there 26.2 
D/K 2.9 
 
 
Q: The Diet is currently divided with the ruling parties holding a 
majority of the seats in its lower chamber and the opposition 
parties dominating its upper chamber. What kind of political 
realignment would you like to see as a breakthrough? 
 
Move to form a grand coalition of political parties involving the 
Liberal Democratic Party and the Democratic Party of Japan before 
the next election for the House of Representatives 
Yes 30.0 
No 62.1 
D/K 7.9 
 
Move to form a new party involving some in the LDP and the DPJ 
before the next election for the House of Representatives 
Yes 37.5 
No 55.7 
D/K 6.8 
 
Move to break through the situation through talks within the current 
framework of political parties 
Yes 46.0 
No 48.2 
D/K 5.8 
 
Move to form a new coalition or a new party after the next election 
for the House of Representatives 
Yes 42.9 
No 48.8 
D/K 8.3 
 
Yoshimi Watanabe's move in the LDP to leave the party 
Yes 48.7 
No 43.0 
D/K 8.3 
 
Hidenao Nakagawa's move in the LDP to form a supraparty group of 
lawmakers 
Yes 41.2 
No 47.1 
D/K 11.7 
 
The LDP's Koichi Kato and Taku Yamasaki seeking to rally with 
opposition party lawmakers 
Yes 26.0 
No 65.0 
D/K 9.0 
 
Q: Prime Minister Aso's term as LDP president is up until this fall. 
How long do you think his government will continue? 
 
Replaced before the next election for the House of Representatives 
25.7 
Replaced after the next election for the House of Representatives 
47.4 
Replaced upon his term's expiry this fall 20.1 
Continue even after this fall 5.0 
D/K 1.8 
 
 
TOKYO 00000111  010 OF 013 
 
 
Q: Which political party would you like to vote for in the next 
election for the House of Representatives in you proportional 
representation bloc? 
 
LDP 29.0 
DPJ 41.5 
NK 5.5 
JCP 4.6 
SDP 1.6 
PNP 1.2 
RC 0 
NPN 0.2 
Other answers 7.4 
D/K 9.0 
 
Polling methodology: The survey was conducted Jan. 10-11 by the 
Sankei Shimbun and Fuji News Network (FNN) over the telephone on a 
computer-aided random digit dialing (RDD) basis. For the survey, a 
total of 1,000 persons were sampled from among men and women, aged 
20 and over, across the nation. 
 
(7) Scope column: Confrontation between Aso and Nakagawa 
intensifying over whether to mention consumption tax hike in 
additional clause 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 20, 2009 
 
The ruling Liberal Democratic Party (LDP) yesterday undertook 
full-fledged coordination on the question of whether to make 
specific the timing of a hike in the consumption tax in a clause 
attached to a fiscal 2009 tax reform bill. The LDP is now seeing a 
clash between Prime Minister Taro Aso, who wants to play up the 
responsibility of his party by mentioning the consumption tax hike 
in fiscal 2011 as mentioned in the government-drafted mid-term 
program for drastic reform of the tax code, and former LDP Secretary 
General Hidenao Nakagawa, who opposes such an idea. The party 
leadership is fretting over finding some kind of compromise. There 
appears to be a possibility that the cabinet will put off adopting 
the tax reform bill, although it still plans to do so on Jan. 23. 
 
Aso stated yesterday in a session of the House of Councillors Budget 
Committee: 
 
"I will aim for a 'moderate' level of welfare with a 'moderate' tax 
burden after rebuilding the economy before fiscal 2011, implementing 
administrative reform and eliminating wasteful spending. I have no 
intention to forcibly raise the consumption tax alone." 
 
Having in mind the calls of Nakagawa and other LDP members for 
thorough administrative reforms, Aso without a doubt wanted to 
underscore more than ever that administrative reform was a condition 
for the consumption tax hike. If he fails to mention the tax hike in 
the bill, he could be faulted for a policy flip-flop. He is exuding 
a desire to obtain understanding from Nakagawa toward his proposal 
to mention the timing of the tax hike. 
 
Appearing on a television program yesterday, however, Nakagawa 
hinted at the possibility of not voting for the government-proposed 
tax reform bill, saying: "I will make a decision at that time" if 
the phrase that the consumption tax will be increased in fiscal 2011 
is written in the additional clause. 
 
TOKYO 00000111  011 OF 013 
 
 
 
Nakagawa met last night with former Prime Minister Junichiro Koizumi 
and former LDP Secretary General Tsutomu Takebe. The three agreed to 
oppose the government's policy line of mentioning when to raise the 
consumption tax in the additional clause. 
 
Six junior and mid-level lawmakers, including Upper House member 
Ichita Yamamoto, held a meeting last night, as well. They also 
confirmed that they would oppose the government's idea, for the 
reason that such will impact adversary on the economy. Argument 
opposing the government plan is spreading in the LDP. 
 
Should 16 ruling coalition members rebel, the government-drafted 
bill will not be put to a second vote in the Lower House. 
 
One LDP executive member pointed out: "If we fail to readopt the tax 
reform bill, it will be an end to the Aso cabinet. Since the Aso 
cabinet's support rate dropping to below 20 PERCENT  in the polls, 
there is a possibility that anti-Aso magma will erupt at once. 
 
 
In order to prevent conflict between the two sides from intensifying 
further, some members in the LDP have started finding ways to common 
ground. 
 
Policy Research Council Chairman Kosuke Hori, Tax System Research 
Sub-committee Chairman Hakuo Yanagisawa and former Finance Minister 
Fukushiro Nukaga, who heads the ruling coalition's project team, 
which compiled the mid-term program, decided yesterday to hear views 
on the matter from party members for the time being. 
 
In the LDP, a former cabinet minister said: "Unless the description 
in the additional clause is changed, the tax system reform bill 
might clear the Diet." 
 
"As a result of debate, if some words are corrected, we will have to 
discuss them with the New Komeito," said a senior LDP member. The 
senior LDP member took a position that the party would not dwell on 
the expression as was described in the mid-term program if there 
remains a possibility of the consumption tax to be raised in fiscal 
¶2011. 
 
(Gist of) parts related to the consumption tax in the mid-term 
program 
 
In order to implement a drastic reform of the tax code in fiscal 
2011, necessary legal measures should be taken beforehand and a 
sustainable fiscal system should be gradually established by the 
early 2010s. 
 
The economy should be boosted by concentrated efforts, including 
drastic tax system reform, for an economic turnaround within three 
years, including the current fiscal year. 
 
(8) TOP HEADLINES 
 
Asahi: 
Convenience store sales surpass those at department stores in 2008 
 
Mainichi: 
Obama presidential inauguration scheduled tomorrow 
 
 
TOKYO 00000111  012 OF 013 
 
 
Yomiuri: 
Toyota mulls dismissing all seasonal workers 
 
Nikkei: 
Furukawa Electric, Showa Denko in talks on merging aluminum 
operations 
 
Sankei: 
Many city assemblies support cash handout plan 
 
Tokyo Shimbun: 
Cabinet food safety commission determines cloned beef as safe 
 
Akahata: 
JCP Fukushima chapter responds speedily to report on firing 
non-permanent workers 
 
(9) EDITORIALS 
 
Asahi: 
(1) What was wrong with war on terror? 
(2) Make preparations for full-fledged outbreak of influenza 
 
Mainichi: 
(1) Transfer of Kampo no Yado inns: Ruing bloc's privatization 
stance raises questions 
(2) Obama era: Japan must make strategic use of its technology 
 
Yomiuri: 
(1) Parties must discuss consumption tax hike 
(2) National Defense Program Guidelines: Aim at enhanced 
international peace-building activities 
 
Nikkei: 
(1) Ceasefire must result in resumed Middle East peace talks 
(2) Testing time for 10-year-old euro 
 
Sankei: 
(1) Middle East peace must follow Gaza ceasefire 
(2) Influenza outbreak at Machida hospital 
 
Tokyo Shimbun: 
(1) Gaza crisis: Explore ways for permanent peace 
(2) Nuclear disarmament: U.S., Russia must cooperate this year 
 
Akahata: 
(1) General constructor's slush funds: Put end to collusive ties 
among politics, bureaucracy and business 
 
(10) Prime Minister's schedule, January 19 
 
NIKKEI (Page 2) (Full) 
January 20, 2009 
 
08:16 
Attended extraordinary cabinet meeting in Diet building. Met 
afterwards with Chief Cabinet Secretary Kawamura. 
 
08:47 
Attended Upper House Budget Committee session. Talked with Upper 
House Budget Committee chief director Iwanaga. 
 
 
TOKYO 00000111  013 OF 013 
 
 
12:02 
Arrived at Kantei. 
 
13:00 
Attended Upper House Budget Committee session. Talked with DPJ Upper 
House member Renho. 
 
17:06 
Attended LDP executive meeting. 
 
17:49 
Arrived at Kantei. 
 
18:22 
Returned to official residence. 
 
18:37 
Met with LDP Diet Affairs Committee Chairman Oshima, joined by 
Kawamura and LDP Secretary General Hosoda. 
 
20:03 
Arrived at his private office in Nagata-cho. 
 
21:36 
Returned to official residence. 
 
22:55 
Received telephone call from U.S. President Bush, attended by 
Assistant Deputy Chief Cabinet Secretary Hayashi and Foreign 
Ministry North American Affairs Bureau Director General Umemoto. 
 
ZUMWALT