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P 060104Z JAN 09
FM AMEMBASSY TOKYO
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RUCNDT/USMISSION USUN NEW YORK 3135

UNCLAS SECTION 01 OF 05 TOKYO 000015 
 
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 1/06/09 
 
Index: 
 
Foreign affairs: 
1) Visibility ahead is bad for Aso diplomacy: Unable to even fix 
date for first meeting with new U.S. President Obama  (Mainichi) 
2) Dispute with China continues to fester of its independent 
development of gas fields in E. China Sea, despite agreement for 
joint efforts with Japan  (Nikkei) 
 
Security affairs: 
3) Anti-piracy measures: Prime Minister Aso wants the study of the 
MSDF dispatch to waters off Somalia speeded up  (Nikkei) 
4) Afghan assistance: Japan to provide $500 million to help 
democratization process, mulling civilian dispatch  (Nikkei) 
5) Leading opposition party, Democratic Party of Japan (DPJ), to 
send fact-finding team to Afghanistan  (Asahi) 
 
Political agenda: 
6) Regular Diet session opens to immediate clash between ruling and 
opposition camps over economic recovery and job policy  (Mainichi) 
7) DPJ to present to Diet revision of second supplementary budget 
removing controversial cash-handout package  (Asahi) 
8) LDP rebel Yoshimi Watanabe to leave the party this week over 
policy differences, including cash-payment plan  (Yomiuri) 
9) LDP group under Ichita Yamamoto defies Aso by demanding that 
consumption tax hike wording be taken out of the mid-term tax 
program  (Mainichi) 
 
Articles: 
 
1) Date not set for Aso-Obama meeting 
 
MAINICHI (Page 5) (Full) 
January 6, 2009 
 
Katsumi Kawakami 
 
Lining up diplomatic events for Prime Minister Taro Aso seems 
difficult. The reason is because he has to make utmost efforts for 
the swift enactment of the fiscal 2009 state budget although he 
wants to play up his presence via economic diplomacy amid the global 
financial crisis. The prime minister wants to hold talks with 
President-elect Barack Obama at the earliest possible time. But in 
reality, setting a date for the event is difficult, according to a 
senior Foreign Ministry official. 
 
Given the tense Palestinian situation, the prime minister had a 
telephone conversation with Israeli Prime Minister Ehud Olmert on 
Dec. 31. On Jan. 3, Aso told Palestinian leader Mahmud Abbas over 
the phone that Japan would extend humanitarian support worth 10 
million dollars (approximately 900 million yen) apparently in an 
effort to demonstrate his eagerness on the diplomatic front. 
 
An expected clash between the ruling and opposition blocs at the 
just-convened Diet would be the biggest challenge for the prime 
minister. The unclear future of Diet deliberations makes it 
difficult to set up diplomatic events for the prime minister. The 
only diplomatic event set at present is a Japan-South Korea summit 
to be held on Jan. 11-12 in Seoul. The event has been carried over 
to this year from late last year. 
 
A dialogue with the Obama administration to be launched on Jan. 20 
 
TOKYO 00000015  002 OF 005 
 
 
is also vital for the prime minister. But he simply said about 
prospects for a meeting with Present Obama: "I believe we will begin 
coordination once (the new administration) is launched." 
 
"Depending on how Diet deliberations turn out, (Aso-Obama talks) 
might be postponed until the April 2 financial summit," a senior 
Foreign Ministry official said. 
 
2) Discord reemerges between Japan and China due to China's 
continuous independent development of gas field 
 
NIKKEI (Page 2) (Excerpts) 
January 6, 2009 
 
Discord between Japan and China is growing over the development of 
gas fields in the East China Sea. It has become clear that China has 
independently been developing gas fields in the waters on which an 
agreement was reached last June to continue talks. Japan has 
demanded an immediate end to the development. The gas field issue is 
expected to be taken up in a Japan-China sub-cabinet-level strategic 
dialogue to be held in Tokyo on Jan. 9. But there are no prospects 
for compromise on the joint development issue 
 
Foreign Minister Hirofumi Nakasone in a press conference yesterday 
indicated that Japan cannot accept the development of gas field 
Kashi (Tianwaitian in Chinese), now in question. He said: "Our view 
is that the matter requires continuous talks and that it is still at 
a clean state." Meanwhile, China released a statement on Jan. 4 
saying that the country will develop (Kashi and other gas fields) by 
exercising its own sovereignty. The standpoints of Japan and China 
are wide apart. 
 
Japan tried to include gas fields Kashi and Kusu (Duanqiao in 
Chinese), which were under development by China, in the bilateral 
agreement reached last June. But China refused it, leading talks 
being continued. China is continuing to develop the gas field by 
taking advantage of the gap in the agreement. A Japanese government 
official said: "Although Kashi is not subject to joint development, 
the act ignores the spirit of the agreement." 
 
3) Prime minister tells shipowners' association president that 
government will swiftly study dispatch of MSDF to waters off 
Somalia 
 
NIKKEI (Page 2) (Full) 
January 6, 2009 
 
Prime Minister Taro Aso had a meeting yesterday at his office with 
Hiroyuki Maekawa, president of the Japanese Shipowners' Association 
and president of Kawasaki Kisen Kaisha Ltd. In the session, Maekawa 
called for a maritime security operations order to dispatch the 
Self-Defense Force to waters near Somalia to deal with growing 
piracy there. Maekawa said: "We believe escorts by SDF ships in the 
waters alone will have a strong deterrent effect on piracy." In 
response, the prime minister said: "The matter is separate from the 
question of the right to collective self-defense. The presence of 
police officers can prevent thefts. We will study the matter in an 
expeditious manner." 
 
Chief Cabinet Secretary Takeo Kawamura in a press briefing yesterday 
also made this comment about the deployment of the Maritime 
Self-Defense Force: "I would like to see the ruling bloc set up a 
 
TOKYO 00000015  003 OF 005 
 
 
project team to thoroughly discuss what steps are possible and the 
government come up with a policy direction at the earliest possible 
time." 
 
4) Assistance to Afghanistan: Government proposes 500 million 
dollars to strengthen assistance for livelihood-connected sector 
 
MAINICHI (Page 1) (Excerpts) 
January 6, 2009 
 
As additional assistance to Afghanistan, the government on January 5 
independently compiled a new package totaling approximately 500 
million dollars or about 46.5 billion yen. The package features 
dispatching civilians instead of Self-Defense Forces personnel the 
aim being to strengthen assistance for the livelihood-connected 
sector. The government wants to release the package at an early date 
after the launching of the new Obama administration in the U.S. on 
the 20th. 
 
The showcase of the assistance measures include: (1) consolidating a 
security set-up, including the deployment of bulletproof vehicles, 
in five cities, such as Kabul, Jalalabad, Herat, Mazari Sharif and 
Bamiyan, and increase experts who will be in charge of providing 
assistance on the education front, including the construction of 
schools, and giving agricultural advice in farming villages; (2) 
reinforcing government officials who will be responsible as liaison 
officers as non-reimbursable fund cooperation for the NATO 
Provincial Reconstruction Teams' (PRT) assistance to the 
livelihood-connected sector; (3) considering the dispatch of 
civilian experts, such as former SDF members, to the 
livelihood-connected section of the PRT in the future, etc. 
 
The government intends to allocate about 500 million dollars for the 
package. Apart from this, it will also contribute funds to an 
Afghanistan assistance fund to be established at NATO's initiative 
for the strengthening of the Afghan National Army. 
 
5) DPJ's Inuzuka visits Afghanistan 
 
ASAHI (Page 4) (Full) 
January 6, 2009 
 
Tadashi Inuzuka, senior vice foreign minister of the major 
opposition Democratic Party of Japan's (DPJ) "Next Cabinet," visited 
Afghanistan, Pakistan and Saudi Arabia for 18 days until yesterday. 
The DPJ's purpose of sending Inuzuka to the three countries was to 
come up with concrete measures for Afghan assistant because its 
policy of making an agreement on suspension of conflict as a 
condition for dispatching the Self-Defense Forces (SDF) to that 
country had been criticized by the ruling coalition as unfeasible. 
Inuzuka discussed the matter with government officials of the three 
countries, as well as with officials from the United Nations and the 
International Security Assistance Force in Afghanistan (ISAF). 
 
6) Regular Diet session opens: Ruling, opposition camps expected to 
confront over economy, employment; Opposition parties demand 
separation of cash handouts 
 
MAINICHI (Page 2) (Excerpts) 
January 6, 2009 
 
The Diet convened on January 5 for a regular 150-day session, where 
 
TOKYO 00000015  004 OF 005 
 
 
the ruling and opposition parties are expected to confront each 
other with an eye on the Lower House election to be called by this 
fall. A confrontational mood is already permeating the session. The 
opposition camp formally asked the ruling camp to separate the 
flat-sum cash benefit program from the fiscal 2008 second 
supplementary budget. The Democratic Party of Japan (DPJ) at the 
Lower House Budget Committee board meeting demanded the summoning of 
Japan Business Federation (Nippon Keidanren) Chairman Fujio Mitarai 
as an unsworn witness. It has thus become clear that the cash 
benefit program and the employment issue will become points of 
contention. The government and the ruling parties are seeking early 
passage of the second supplementary budget bill and the fiscal 2009 
budget bill. The battle between the two camps is bound to heat up. 
 
Regarding the second supplementary budget bill, a 
question-and-answer session in connection with Finance Minister and 
State Minister for Financial Services Shoichi Nakagawa will be held 
respectively on the 6th and 7th in a full session of the Lower and 
Upper Houses. Full-fledged debate will start at the Lower House 
Budget Committee on the 8th. 
 
Prime Minister Taro Aso during the general assembly of Liberal 
Democratic Party (LDP) lawmakers from both Diet chambers held on the 
5th underscored his stance of confronting the DPJ, noting, "The 
major economic stimulus measure is to have the second supplementary 
budget bill and the fiscal 2009 budget bill enacted at the earliest 
possible date." DPJ President Ichiro Ozawa on the first work day of 
the new year at the party headquarters expressed his desire to see a 
change in government, saying, "This year will become a historic one. 
This year, we must obtain people's support in the Lower House 
election, by putting up a major goal of giving priority to the 
public good, and reflect that goal in actual politics and 
administration." 
 
7) DPJ to submit today revision bill for FY2008 second extra budget 
 
ASAHI (Page 4) (Full) 
January 6, 2009 
 
The Democratic Party of Japan (DPJ), the largest opposition force, 
yesterday compiled a revision bill extracting the 2 trillion yen 
cash-payout program from the fiscal 2008 second supplementary 
budget. The DPJ will present the revision bill today to the House of 
Representatives. Behind the DPJ's decision is the public's strong 
reaction against the flat-sum cash-benefit program using reserve 
funds (or buried funds) from special accounts. The DPJ has 
intensified criticism, with Deputy President Naoto Kan saying: 
"That's pork-barreling aimed at the election." The party has set the 
revision bill as the main issue at the outset of the regular Diet 
session, contemplating that some in the ruling Liberal Democratic 
Party (LDP) may support the revision bill. 
 
The revision bill calling on scrapping 2 trillion yen allocated for 
the cash-payout plan from the revenues and expenditures of the 
second extra budget for fiscal 2008. Regarding bills related to the 
use of reserve funds for the flat-sum cash-benefit program, the DPJ 
is looking into a revision bill designed to separate a portion 
related to the flat-sum payout plan. 
 
8) Watanabe to leave LDP as early as this week as Aso refuses to 
accept his request of scrapping cash-payout plan 
 
 
TOKYO 00000015  005 OF 005 
 
 
YOMIURI (Page 4) (Abridged slightly) 
January 6, 2009 
 
Yoshimi Watanabe, former state minister in charge of administrative 
reform, yesterday handed over to Liberal Democratic Party (LDP) 
Senior Deputy Secretary General Nobuteru Ishihara a list of 
proposals calling on Prime Minister Aso to dissolve the House of 
Representatives quickly and to retract a flat-sum cash-payment plan. 
Watanabe wrote: "If the prime minister does not consider my 
recommendations swiftly and sincerely, I will quit the party." Aso, 
however, does not intend to accept Watanabe's demands. The outlook 
is that Watanabe will quit the LDP possibly later this week. 
 
Watanabe included seven requests in the list such as 1) a 20 PERCENT 
 cut in the labor cost of the national civil servants from fiscal 
2009, and 2) abolishment of the system under which the prime 
minister approves each ministry's mediation of reemployment for 
civil servants. Aso, however, categorically told reporters last 
night at his office: "I have said that implementing policy measures 
is more important than dissolving the Lower House. I have no 
intention to scrap the flat-sum cash-payout plan." 
 
Watanabe is expected to oppose the second supplementary budget for 
fiscal 2008, which contains the 2 trillion yen cash-payment program. 
Watanabe is aiming at bolting the LDP in mid-January, according to 
persons close to him. 
 
Many LDP members take an icy view toward Watanabe, with one saying: 
"He trying to play the hero." The view that nobody will follow him 
has been voiced in succession from even junior and mid-level 
lawmakers critical of Aso. Therefore, the LDP executives predict 
that there will be no expansion of the drive to leave the party. 
 
9) LDP member Ichita Yamamoto to launch study group, seeking 
retraction of sales tax hike 
 
MAINICHI (Page 2) (Full) 
January 6, 2008 
 
Eight Liberal Democratic Party (LDP) lawmakers from both Diet 
chambers, including Upper House member Ichita Yamamoto, will launch 
a study group in pursuit of Prime Minister Aso retracting his policy 
of hiking the sales tax three year's later. The panel will also be 
joined by Kenichi Mizuno, who is seeking the government to withdraw 
its decision to reallocate tax revenues for road construction for 
other purposes, Lower House member Masahiko Shibayama and others. 
They are all keeping themselves at arm's length with Aso. Some take 
the view that yet another anti-Aso study meeting will be launched at 
a time when former State Minister for Administrative Reform Yoshimi 
Watanabe has effectively announced his decision to secede from the 
LDP. 
 
The prime minister during the New Year's press conference cited a 
hike in the consumption tax as one campaign issue for the next Lower 
House election. Members of the envisaged study meeting will urge the 
prime minister to rethink the plan, arguing that a hike in the sales 
tax at this point, when business conditions are severe, will spoil 
the effects of the economic stimulus measures. They will also call 
for cutting the number of lawmakers and setting a numerical target 
for administrative reform. 
 
SCHIEFFER