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UNCLAS SECTION 01 OF 11 TOKYO 000135 
 
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 01/22/09 
 
INDEX: 
 
(1) Economy under Obama administration: Japan, U.S. searching for 
new dialogue on trade; Beef imports an outstanding issue (Mainichi) 
 
 
(2) Prime Minister Aso struggling for building honeymoon-like ties 
with new U.S. President Obama; Prime Minister's Office to increase 
staff members (Asahi) 
 
(3) Obama's America -- hopes and trials: Shift to multilateralism; 
Time for Japanese diplomacy to stop following in U.S. footsteps 
(Mainichi) 
 
(4) METI ready to take joint steps with Obama administration, but 
remains cautious about protectionist pressure (Asahi) 
 
(5) "Japan's political circles should be united," complains Nippon 
Keidanren chairman (Nikkei) 
 
(6) Government to propose at UN working group method for 
standardizing CO2 emissions measurement with aim of taking 
initiative in talks on sector-specific cuts (Nikkei) 
 
(7) TOP HEADLINES 
 
(8) EDITORIALS 
 
(9) Prime Minister's schedule, January 21 (Nikkei) 
 
(Corrected copy) Obama administration: Government wary of U.S. 
softening its stance toward North Korea; Hopes to hold summit 
meeting at early date (Yomiuri) 
 
ARTICLES: 
 
(1) Economy under Obama administration: Japan, U.S. searching for 
new dialogue on trade; Beef imports an outstanding issue 
 
MAINICHI (Page 11) (Excerpts) 
January 22, 2009 
 
With the launching of the administration of President Barack Obama, 
Japan-U.S. economic relations are likely to be pressed to change, as 
well. In his inaugural address on January 20, President Obama played 
up his stance to place high priority on international cooperation. 
How much Japan's trade policy can contribute to the structural 
reform of the global economy to, for instance, strike a balance 
between the environment and economic growth, will now be tested. 
Japan might also be pressed for greater efforts to expand domestic 
demand and to carry out policy coordination to bring stability to 
markets. 
 
A study is underway between the Japanese government and the Obama 
administration to set up the framework of a new Japan-U.S. economic 
dialogue to discuss trade issues. That is because how well the two 
countries can cooperate is considered to be key to pursuing economic 
growth and the environment at the same time, addressing energy 
issues, and liberalizing trade and investment. The government 
intends to quickly establish a close cooperative system with the 
Obama administration, with the framework of the new dialogue as the 
leverage. 
 
TOKYO 00000135  002 OF 011 
 
 
 
In markets, there is concern that the Obama administration might 
resort to protectionism. Even so, a senior Foreign Ministry official 
predicted: "There will be no change to (the Obama adminsitration's) 
cooperation-oriented basic stance." The government is watching 
closely how the new U.S. administration is going to rebuild the 
World Trade Organization (WTO) multilateral trade talks (Doha 
Round), which collapsed last year. 
 
There is one outstanding issue between Japan and the United States: 
the question of easing requirements for U.S. beef imports, triggered 
by the discovery of a case of BSE. At present, only U.S. beef from 
cattle aged 20 months or younger is allowed into Japan. The Bush 
administration urged Japan to abolish the age limit on the strength 
of a decision by the World Organization for Animal Health (OIE). 
President Obama also made a statement supporting this policy in May 
2008 (when he was a senator). 
 
(2) Prime Minister Aso struggling for building honeymoon-like ties 
with new U.S. President Obama; Prime Minister's Office to increase 
staff members 
 
ASAHI (Page 4) (Full) 
January 21, 2009 
 
Following the inauguration of the new U.S. administration of 
President Barack Obama backed by strong public support, Prime 
Minister Taro Aso aims to hold a meeting with President Obama in 
order to build a relationship of trust with him, prior to the 
upcoming G-20 financial summit. The Aso administration, which has 
suffered from its plummeting support rates in the polls, intends to 
boost its popularity by contributing to the global economy with its 
economic stimulus measures. However, assistance Japan can provide to 
Afghanistan is limited. We cannot help feeling that Japan's measures 
to prevent global warming have fallen behind those of European 
countries. 
 
Unable to come up with idea of overcoming financial crisis 
 
Referring to Hillary Clinton's testimony during a hearing at the 
Senate Foreign Relations Committee on Jan. 13, Aso stated 
yesterday: 
 
"Secretary of State-designate Hillary Clinton clearly said: 'The 
alliance with Japan is a cornerstone of U.S. policy toward Asia. I 
am looking forward to the (Obama) administration. I will make 
efforts to strengthen Japan-U.S. relations further." 
 
Aso was confident in enhancing the alliance. 
 
As if to match the inauguration of the Obama administration, the 
government appointed on Jan. 20 Shotaro Yachi as its representative 
(to engage in negotiations with other countries on important 
diplomatic issues). Yachi served as administrative vice foreign 
minister when Aso was foreign minister. "The appointment was aimed 
to increase reciprocal visits between the top leaders of the two 
countries," said a government official. Aso, who has communication 
channels to the Republican Party, is believed to have few personal 
connections to the Democratic Party. Aso's aides pin hopes on 
Yachi's diplomatic caliber. 
 
In his policy speech delivered last September, Aso set the policy of 
 
TOKYO 00000135  003 OF 011 
 
 
attaching importance to relations with the United States, stressing 
differences with Democratic Party of Japan's (DPJ) President Ichiro 
Ozawa, who has advocated UN-centered diplomacy. Aso stated in his 
policy speech: "The DPJ has accountability for clarifying to the 
Japanese public and the world to which -- the U.S.-Japan alliance or 
the United Nations -- it gives priority. 
 
The Obama administration has installed persons who have a detailed 
knowledge of Japan in key posts responsible for U.S. policy toward 
Japan, for example former Deputy Assistant Secretary of Defense 
Campbell, a Japan expert, as assistant secretary of state for East 
Asian and Pacific affairs. Aso has high expectations of the new U.S. 
government. He said: 
 
"In Japan there are many people who have known Mr. Timothy Geithner 
(who is expected to assume the post of secretary of the treasury) 
since he worked at the U.S. Embassy in Tokyo. I think he is capable 
of financial management." 
 
Yet, it is difficult for Aso to build honeymoon-like ties similar to 
the ones formed by then Prime Minister Koizumi and President Bush. 
Revitalizing the economy that Obama will immediately deal with is a 
pressing issue comparable to the war on terror the former Bush 
administration engaged in. Aso has focused on economic recovery, but 
there is no ideas for turning around the world economy. 
 
Japan announced last year its policy of financing the International 
Monetary Fund (IMF) up to 10 trillion yen for emerging and 
developing countries from its foreign-currency reserves. Although 
Tokyo expressed its eagerness to become a driving force, it is now 
busy with coming up with measures to increase domestic jobs due to 
the sharp deterioration of the economy. 
 
In the Prime Minister's Official Residence (Kantei), an aide to the 
prime minister said: "The financial crisis is no longer the biggest 
one for the United States; it is the possible collapse of the Big 
Three." 
 
In an attempt to support Obama, some in the Kantei are talking about 
dreams such as that: "Is it possible for Toyota Motor to buy out 
General Motors?" "How about splitting the cost between Japan and the 
United States?" However, the possibility is uncertain. 
 
Concerned about gaps in polity toward North Korea 
 
"It is important for Japan to present what it can do before it is 
asked by the United States," said a senior Foreign Ministry 
official. Therefore, the Japanese government is hurriedly working on 
preparations for a first summit between the top leaders of Japan and 
the United States. The government intends to come up with 
comprehensive measures to stabilize Afghanistan, which Obama sees as 
important in the war on terror. 
 
Nevertheless, it does not appear likely that the Self-Defense Forces 
(SDF) will be dispatched to Afghanistan, which needs a new law, due 
to the divided Diet. Since the government's budget for official 
development assistance (ODA) has been on the decrease, it is 
difficult to come up with new financial aid. 
 
The government, therefore, will wisely use for the time being the 
5.5 billion dollars (approximately 50 billion yen) in aid that it 
has already announced. The second supplementary budget for fiscal 
 
TOKYO 00000135  004 OF 011 
 
 
2008 includes a total of 30.1 billion yen to be used as expenditures 
for the presidential election slated for the fall, nurturing police 
officers and anti-drug measures, as well as food aid, including 
support for agriculture. From next fiscal year, a total of 10 
billion yen will be allocated for building infrastructure, such as 
schools and hospitals. The Japan International Cooperation Agency 
(JICA) has launched drafting a plan to rehabilitate Cable, the 
capital of Afghanistan. 
 
For Japan, however, the North Korea issue is a top concern its 
security. There is a view that under the Obama administration, the 
pressure on the North to abandon its nuclear programs might be 
lightened. A senior Foreign Ministry official is concerned about 
Clinton's remarks during the hearing at the Senate, in which she 
revealed the intention of placing importance on nuclear 
nonproliferation of North Korea and Iran. The ministry official 
said: "Her remarks can be taken as that (North Korea) already is a 
nuclear power." 
 
It is also unclear that to what extent Obama's interest in the 
abduction issue will rise. 
 
In order to move head with the North Korea issue, the government 
gives weight to cooperation with the United States and South Korea. 
In his meeting on Jan. 12 with South Korean President Lee Myung Bak, 
Aso said: 
 
"Following the inauguration of the new U.S. government, North Korea 
could try to divide the solidarity of Japan, South Korea and the 
United States. It is important for the three countries to closely 
cooperate." 
 
Aso and Lee affirmed cooperation between Tokyo and Seoul. 
 
The Japanese government expects to cooperate with the United States 
in promoting measures to prevent global warming. With the United 
Nations Climate Change Conference (COP15) in December in mind, the 
government is enthusiastic about playing a role in unison with the 
United States to press ahead with negotiations with China, a major 
emitter. 
 
However, Obama, who favors creating an emission trading market in 
the U.S., has already come up with medium- and long-term goals to 
cut greenhouse gas emissions. His method is similar to those of 
European countries, which have implemented measures under the lead 
of their governments. There is a growing concern that the 
possibility of rapprochement between the United States and Europe is 
stronger than that between Japan and the United States. 
 
(3) Obama's America -- hopes and trials: Shift to multilateralism; 
Time for Japanese diplomacy to stop following in U.S. footsteps 
 
MAINICHI (Page 2) (Slightly abridged) 
January 22, 2009 
 
Katsumi Kawakami 
 
In his inaugural address, President Barack Obama stated: "We will 
begin to responsibly leave Iraq to its people, and forge a 
hard-earned peace in Afghanistan." About six hours later, shortly 
before 9 o'clock on the morning of January 21, a senior Ministry of 
Foreign Affairs (MOFA) official grumbled: "Japan's assistance 
 
TOKYO 00000135  005 OF 011 
 
 
measures for Afghanistan must be clearly conveyed (to the United 
States)." 
 
The ministry regards Japan's response to Afghanistan as a test for 
the alliance with the United States, so officials are rushing to 
come up with contribution measures centering on official development 
assistance (ODA) and civilian dispatch. As if to echo America's 
excitement for the new administration, Administrative Vice-Foreign 
Minister Mitoji Yabunaka, too, energetically said on the morning of 
Jan. 21: "The question is not how Japan responds to U.S. requests. 
Japan must pursue diplomacy in a way that allows it to make 
independent proposals and address (issues) jointly (with the United 
States)." 
 
President Obama has shifted away from President Bush's unilateralism 
toward multilateralism. This provides a golden opportunity for Japan 
to stop blindly following in America's footsteps and rebuild the 
alliance with the United States to make it suitable for the new era. 
The view gaining ground in Tokyo is that is exactly what the United 
States wants of Japan. 
 
Breaking out of the long practice of following in America's 
footsteps will not be easy, however. 
 
Late last year, Deputy Chief Cabinet Secretary Jun Matsumoto 
received a message from the Obama transition team noting that the 
United States would join the International Renewable Energy Agency 
(IRENA) as an observer. IRENA is a new organization aiming to 
promote the use of wind power and other alternative energy sources. 
Led by Germany, some 40 countries are expected to join the body. 
Attended by approximately 100 countries, the founding conference for 
IRENA is scheduled to take place on Jan. 26 in Bonn. 
 
Japan initially intended to forgo attending the conference partly 
because the former Bush administration had ignored IRENA. 
 
Matsumoto asked the Foreign Ministry and the Economy, Trade and 
Industry Ministry: "The incoming U.S. administration will join 
(IRENA). Shouldn't Japan do so as well?" This led to the 
government's decision to dispatch MOFA Economic Affairs Bureau 
Deputy Director General Yasuo Tanabe and others, although Japan has 
opted to put off becoming a member of IRENA. 
 
Japan has stressed its official development assistance program and 
other means to help Afghanistan because the chances are extremely 
slim at this point for the government to establish a new law sending 
SDF troops to that country. A government official indicated that the 
Aso administration's weak political base resulting from dwindling 
support ratings has reduced the scope of its diplomatic efforts. 
 
In a press conference on Jan. 14, before his departure from post, 
U.S. Ambassador to Japan J. Thomas Schieffer offered this candid 
advice to Japan: "There has been a lot of negative debate about the 
role Japan can play in the world because of the domestic political 
situation that exists in Japan, but I am confident that Japan will 
figure out a way to overcome the political gridlock it now faces. I 
hope that Japan will not be shunted off into a corner in the 
international community in the meantime." 
 
President Obama declared that the United States would face "a new 
era of responsibility." How will Japan fulfill its responsibility? 
Sending messages on its own could reshape Japan's alliance with the 
 
TOKYO 00000135  006 OF 011 
 
 
United States in the new era. 
 
(4) METI ready to take joint steps with Obama administration, but 
remains cautious about protectionist pressure 
 
ASAHI (Page 6) (Full) 
January 22, 2009 
 
How will economic relations between Japan and the U.S. change under 
the new administration of President Barack Obama, the first 
Democratic government in eight years? The two countries were at 
loggerheads over auto imports and other issues during the Clinton 
administration years in the 1990s, but there are no signs of such 
trade friction at present. Even so, concern about a possible growth 
of protectionism in the U.S. will not go away, as the worldwide 
economic recession becomes more serious. 
 
In a press conference on Jan. 19, Vice Minister Harufumi Mochizuki 
of the Ministry of Economy, Trade and Industry (METI) was optimistic 
about the future of Japan-U.S. relations, saying: "I do not think 
(conflict) will take place over trade issues between the two 
countries." 
 
The U.S. Democratic Party, backed by labor unions, tends to adopt a 
trade policy that gives priority to protecting domestic industries. 
The Clinton administration, hinting that it would impose sanctions 
against goods imported from Japan, pressed Japan to open up its 
auto, insurance and other markets. As a result, bilateral trade 
conflict grew intense at the time. 
 
But the economic environment for Japan and U.S. has significantly 
changed since then. Japanese automakers, including Toyota and Honda, 
have expanded production in the U.S., contributing to creating jobs 
there. The main cause of trade friction is now China, driven by its 
remarkable economic growth. 
 
With no major pending economic issues between Japan and the U.S., 
the challenges facing President Obama, such as reviving the global 
economy by increased fiscal disbursements and strengthening the 
banking system, are also Japan's challenges. The government wishes 
to underscore a stance of cooperation between Japan and the U.S., 
using such occasions as meetings of the Group of Seven (G-7) finance 
ministers and central bank governors and the financial summit. A 
senior Finance Ministry official noted: "Japan and the U.S. share 
the view that unless the alliance is strengthened, they will not be 
able to overcome the economic crisis." 
 
But President Obama made protectionist remarks during the election 
campaign, like one criticizing the North American Free Trade 
Agreement (NAFTA), which is aimed to promote trade liberalization 
between the U.S. and its neighbors. A senior METI official said: "If 
the job market gets worse, the administration might make 
protectionist moves." 
 
Beef imports as source of trouble 
 
Countries must work together to contain the ongoing global economic 
crisis. 
 
According to an estimate by Nomura Financial and Economic Research 
Center, the economic stimulus package worth 775 billion dollars 
(about 70 trillion yen) set in motion by Obama will serve to push up 
 
TOKYO 00000135  007 OF 011 
 
 
Japan's gross domestic production (GDP) by about 2.2 PERCENT  over 
the next two years. Chief Economist Kiuchi commented: "The outcome 
of the U.S. economic package will have a major impact on the 
Japanese economy." 
 
Nippon Keidanren (the Japan Business Federation) Chairman Fujio 
Mitarai said in a press conference yesterday: "A recovery of the 
U.S. economy will give a chance for the global economy to get 
through the current critical situation. I expect the new 
administration to quickly take bold policy measures." 
 
The new round of World Trade Organization (WTO) global trade talks 
(Doha Round) has been at a standstill since the U.S. and emerging 
countries failed to find common ground last year. A senior Foreign 
Ministry official said: "Various countries are carefully observing 
an approach to be taken by the U.S." 
 
It is not true to say, though, that there is no source of trouble 
between Japan and the U.S. Japan has set a requirement of exporting 
only beef from cattle 20 months of age or younger as a 
BSE-prevention measure, and the U.S. has called on Japan to remove 
the requirement. There is a possibility that the Obama 
administration may ratchet up pressure on Japan in response to calls 
from livestock farmers. 
 
(5) "Japan's political circles should be united," complains Nippon 
Keidanren chairman 
 
NIKKEI (Page 3) (Full) 
January 22, 2009 
 
"Japan should also become united." Meeting the press in Nagoya after 
hearing U.S. President Obama's inauguration address, Nippon 
Keidanren (Japan Business Federation) Chairman Fujio Mitarai on 
January 21 made that comment. 
 
He pointed out that what impressed him is that after acknowledging a 
variety of values, President Obama called for solidarity, saying 
that America is one. He said with a wry smile, "I thought that the 
ruling and opposition parties should cooperate at times, instead of 
always confronting each other." 
 
Concerning the Obama administration's economic policy, Mitarai first 
said, "It is most important for it to create jobs." Underscoring 
that in order for the global economy to climb out of the crisis, 
there must be an economic turnaround in the U.S., he called on the 
Obama administration to implement large-scale policy measures in a 
speedy manner. 
 
(6) Government to propose at UN working group method for 
standardizing CO2 emissions measurement with aim of taking 
initiative in talks on sector-specific cuts 
 
NIKKEI (Page 3) (Full) 
January 22, 2009 
 
The government plans to propose at a UN taskforce meeting to be held 
in Bonn starting late March methods for standardizing measurement of 
carbon dioxide (CO2) emissions and energy consumption by main 
industries. The common methods would be adopted by all countries. 
Japan deems it impossible to now make a fair comparison of CO2 
emissions measured in various countries, since they adopt different 
 
TOKYO 00000135  008 OF 011 
 
 
methods, impeding discussions of CO2 emissions cuts. 
 
Talks on an international framework (post Kyoto Protocol) for 
curbing greenhouse gas emissions to be adopted in fiscal 2013 will 
soon move into high gear. The government hopes to take the 
initiative at the talks by proposing specific measurement 
guidelines, which are essential in comparing the amount of CO2 
emitted by each country. If a CO2 emissions measurement method is 
set in detail for each industry so that emissions by various 
countries can be compared fairly, it would become easier to tackle a 
sector-specific approach of expediting emissions cuts by industrial 
sector. 
 
At present, the International Energy Agency (IEA) and other 
international industrial organizations have their own guidelines. 
However, their guidelines have not yet reached some developing 
countries. Data-collecting methods thus vary widely among countries. 
In order to make a fair comparison of country-specific CO2 emissions 
and energy consumption, it is essential to specify operation 
processes subject to measurement. The government has determined that 
it would be necessary to set up internationally acknowledged 
standards. Before making the proposal, the government will launch 
discussion at the International Organization for Standardization 
(ISO) possibly this spring. The outlook is that it will take about 
two years for the proposal to be acknowledged as international 
standards. 
 
The government will first propose in cooperation with the Japan Iron 
and Steel Federation, guidelines for the steel sector, which 
estimatedly emits about 10 PERCENT  of total CO2 emissions in the 
world. To be precise, a proposal most likely to be adopted is 
targeting the industry's manufacturing process from the blast 
furnace-related work of extracting pig iron from iron ore to the 
rolling work of processing iron into plates. Since some foreign 
countries are ahead in the division of labor, the government will 
propose a method of measuring energy consumption and CO2 emissions 
in each process. It intends to increase target areas to cover 
aluminum, cement and power industries -- all heavy CO2. emitters. 
 
Japan takes the position that it is indispensable for emerging 
countries, such as China and India, which are currently not 
obligated to cut carbon emissions, to make a certain level of 
efforts for emissions cut under the post-Kyoto Protocol. If emerging 
countries are obliged to make such an effort, it would become easier 
to urge them to set goals for energy-saving, etc. However, whether 
Japan's proposal for CO2 emissions measurement system can be widely 
adopted by various countries is unclear. Some countries may stick to 
a measurement method that assesses their CO2 emissions at a level 
lower than the actual amount. 
 
(7) TOP HEADLINES 
 
Asahi: 
Female students prone to avoiding exercise 
 
Mainichi: 
Government to specify eradication of amakudari practice in roadmap 
for reforming national public servant system 
 
Yomiuri & Tokyo Shimbun: 
Obama to instruct Defense Department to work out plan to withdraw 
troops from Iraq 
 
TOKYO 00000135  009 OF 011 
 
 
 
Nikkei: 
SONY to consolidate domestic TV production to one factory, cutting 
over 2,000 regular workers 
 
Sankei: 
Obama speech underscores pragmatic policy approach more than 
"change" 
 
Akahata: 
Obama in speech vows to remake America 
 
(8) EDITORIALS 
 
Asahi: 
(1) World paying attention to Obama's diplomatic skills 
(2) China's Defense White Paper: Transparency needed 
 
Mainichi: 
(1) U.S. sets out on journey to change world under President Obama 
 
Yomiuri: 
(1) Obama's capability to be tested in reviving U.S. 
 
Nikkei: 
(1) Obama should try to revitalize U.S. economy from broad 
perspective 
 
Sankei: 
(1) Obama expected to revive strong America 
 
Tokyo Shimbun: 
(1) Obama ushers in era of dialogue, emerging from era of division 
 
Akahata: 
(1) How will Obama change America? 
 
(9) Prime Minister's schedule, January 21 
 
NIKKEI (Page 2) (Full) 
January 22, 2009 
 
07:34 
Took a walk around his official residence. 
 
10:17 
Attended the ceremony commemorating the 45th anniversary of the 
establishment of the law to protect the war injured and the 55th 
anniversary of the establishment of the Japanese Disabled Veterans 
Association, held at the Nippon Budokan on Kitanomaru Park. 
 
11:05 
Returned to his official residence. 
 
12:49 
Met at the Kantei LDP Policy Research Council Chairman Hori, his 
deputy Sonoda, Tax Commission sub-panel head Yanagisawa, mid-term 
program ruling bloc project team chair Nukaga, Chief Cabinet 
Secretary Kawamura, Finance Minister Nakagawa, and Economic and 
Fiscal Policy Minister Yosano. Hori, Yanagisawa, Nukaga and Yosano 
stayed on. 
 
 
TOKYO 00000135  010 OF 011 
 
 
14:50 
Met LDP president special assistant Shimamura, joined in by public 
relations department chief Furuya. 
 
15:54 
Met National Public Safety Commission Chairman Sato. 
 
16:25 
Met Chuma, standing advisers Eto and Ota, and civic servant system 
reform committee deputy chairman Hayashi, followed by special envoy 
for Middle East peace Arima and Middle Eastern and African Affairs 
Bureau Director General Suzuki. 
 
17:38 
Met public relations officer Ogawa. Afterward, had a message 
recorded for a Japan International Broadcasting program, in the 
presence of JIB President Takashima and Ogawa. 
 
19:18 
Met at his official residence advisor Yamaguchi, Upper House member 
Asano and Lower House ember   Inoue. 
 
(Corrected copy) Obama administration: Government wary of U.S. 
softening its stance toward North Korea; Hopes to hold summit 
meeting at early date 
 
YOMIURI (Page 4) (Full) 
January 22, 2009 
 
The Obama administration was inaugurated on January 20 (21st Japan 
time). Both Japan and the U.S. are geared up to continue to maintain 
the present solid state of the alliance. However, there are a number 
of challenges facing the bilateral relationship. 
 
Commenting on the inauguration ceremony of Barack Obama as the 
president of the United States, Foreign Minister Nakasone on the 
21st told reporters: "An awesome number of people turned out. I 
would like both of our countries to tackle the many challenges to 
peace and stability of the world that we face." 
 
President Obama has stressed that he will shift to multilateral 
cooperation, moving away from the Bush administration's 
unilateralism. However, some take the view that his basic approach 
to America's long-standing alliance ties with such countries as 
Japan would not change but basically continue, according to one 
Foreign Ministry official. 
 
The Japanese government is paying close attention to the Obama 
administration's approach to problems that created friction and 
gulfs between the two countries during the Bush administration, 
despite its having been termed a "honeymoon-like relationship." 
 
Regarding the issue of Japanese abducted by North Korea, according 
to a Japan specialist in the U.S. Democratic Party, "The new 
administration does not intend to repeat the mistake (the previous 
administration) made when it delisted North Korea as a state sponsor 
of terrorism, causing discord with Japan." There is a growing sense 
of alarm in Japan that President Obama, who attaches importance to 
dialogue, will soften Washington's stance toward Pyongyang. 
 
The President plans to call on European countries and other U.S. 
allies to boost their troop presence in Afghanistan. If Japan 
 
TOKYO 00000135  011 OF 011 
 
 
continues to avoid a dispatch of the Self-Defense Forces (SDF), 
Obama might ask Japan to assume a large financial burden, including 
funding troop presence in Afghanistan. 
 
The prevailing view regarding the plan to realign U.S. forces in 
Japan that includes the relocation of the Futenma Air Station and 
the issue of reform of the UN Security Council that includes Japan's 
bid for a permanent seat is that the Obama administration will 
continue the previous administration's stances. In such cases, 
Japan's actions and ideas for finding a breakthrough would be 
needed. 
 
Commenting on how Japan could make a good start in relations with 
the Obama administration, one U.S. government source pointed out: 
"Japan is expected to come up with specific proposals in such areas 
as dealing with climate change, which is Japan's strong point. In 
that case, the first bilateral summit meeting would be important." 
 
Prime Minister Aso has expressed a desire for an early visit to the 
U.S.  But with Diet deliberations on the second fiscal 2008 extra 
budget and the fiscal 2009 budget going on, a government source 
predicted that Aso's visit to the U.S. would likely be delayed until 
just prior to the financial summit on April 2. 
 
ZUMWALT