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UNCLAS SECTION 01 OF 10 TOKYO 000182 
 
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 1/27/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security: 
4) Government's defense panel focuses on President Obama's foreign 
and defense policies in discussing Japan's options  (Yomiuri) 
5) Vice Defense Minister Masuda critiques China's defense white 
paper as "insufficient"  (Yomiuri) 
 
Economic agenda: 
6) Second supplementary budget with stimulus package stalls in the 
Diet; joint upper and lower house committee to meet today to free 
logjam  (Mainichi) 
7) Economic effect of the second budget's stimulus package a long 
way off  (Mainichi) 
8) Views by two economists about the stimulus package of the Aso 
government  (Nikkei) 
9) Simulation shows the Aso stimulus package might sustain 160,000 
jobs  (Mainichi) 
 
Political agenda: 
10) Opposition-backed candidate's win in Yamagata gubernatorial race 
casts pall over ruling Liberal Democratic Party  (Asahi) 
11) Yamagata upset demonstrates the waning local political power of 
LDP's Koichi Kato  (Asahi) 
 
12) Only 14 PERCENT  of lawyers in Japan are women, compared to 30 
PERCENT  in the United States  (Asahi) 
 
13) IWC to allow coastal whaling, conditioned on scaling down 
"research" whaling  (Mainichi) 
 
14) Japan to send delegation to IRENA  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
15 prefectures go back to refraining from disclosing maximum tender 
price amid recession 
 
Mainichi, Yomiuri, Tokyo Shimbun & Akahata 
Diet passage of second extra budget delayed 
 
Nikkei: 
JAL, ANA to cut more routes in fiscal 2009, reflecting global 
economic stagnation 
 
Sankei: 
LDP panel eyes punishment on food falsifying origin 
 
Tokyo Shimbun: 
 
2) EDITORIALS 
 
Asahi: 
(1) Government urged to set persuasive mid-term goal to stem global 
warming 
 
TOKYO 00000182  002 OF 010 
 
 
(2) Yamagata gubernatorial election: "Warm policies" win public 
votes 
 
Mainichi: 
(1) Second extra budget: Aso, ruling camp will have to pay price for 
ignoring public opinion 
(2) Taxi regulations: Give to priority to improving service 
 
Yomiuri: 
(1) Take measures to secure personnel engaged in nursing care 
(2) Success in launch of H-2A rocket a new step toward space 
development 
 
Nikkei: 
(1) Aso administration to be still in distress after passage of 
second extra budget 
(2) Establish new age of Japan-Russia relations in Sakhalin 
 
Sankei: 
(1) Second supplementary budget: Upper House should swiftly start 
deliberations to prevent further economic tumble 
(2) Obama diplomacy should focus on both morality and antiterrorism 
efforts 
 
Tokyo Shimbun: 
(1) Outcome of Yamagata gubernatorial election show many voters' 
departure from LDP 
(2) Sales of pharmaceuticals: Ensuring safety must be prioritized 
 
Akahata: 
(1) Second extra budget includes measures to deteriorate economic 
conditions 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 26 
 
NIKKEI (Page 2) (Full) 
January 27, 2009 
 
8:52 
Met Upper House member Masahisa Sato in the Diet building. 
 
09:01 
Attended an Upper House Budget Committee session. 
 
13:01 
Attended an Upper House plenary session. 
 
14:28 
Attended a meeting of Lower House members. Afterward attended a 
Lower House plenary session. 
 
15:22 
Met at the Kantei Chief Cabinet Secretary Kawamura, joined in by 
Administrative Reform Minister Amari. 
 
16:02 
Met Lower House member Kosuke Ito. 
 
17:00 
Attended an LDP executive meeting in the Diet building. 
 
TOKYO 00000182  003 OF 010 
 
 
 
18:34 
Held a summit meeting with Bulgarian President Parvanov. 
 
19:33 
Hosted a dinner party. 
 
23:00 
Met Kawamura. 
 
23:14 
Returned to his official residence. 
 
4) Defense panel to watch Obama policy 
 
YOMIURI (Page 4) (Full) 
January 27, 2009 
 
A government advisory panel on security and defense met yesterday at 
the prime minister's office and exchanged views on the international 
security environment, with Tokyo Electric Power Co. Tsunehisa 
Katsumata presiding. In the meeting, the panel focused on the U.S. 
Obama administration's foreign and security policies. One of its 
members in the meeting noted: "President Obama said he would reduce 
nuclear weapons. We need to watch out for the impact of that change 
in their nuclear strategy on Japan's policy." Another said: "The 
question is whether the United States' Afghan policy will work well. 
That's important." The panel also suggested the need to analyze the 
impact of the global financial crisis on the external operations of 
Russia and China as well as the need to analyze China's military 
moves. 
 
5) China's defense white paper insufficient: vice defense minister 
 
YOMIURI (Page 4) (Full) 
January 27, 2009 
 
Administrative Vice Defense Minister Kohei Masuda, meeting the press 
yesterday, referred to China's recent release of a white paper 
entitled "China's National Defense in 2008" and indicated that China 
should further improve its transparency. Masuda said: "They have 
shown their own efforts to improve the transparency of their 
national defense. However, there are still something insufficient in 
its descriptions of defense spending, equipment quantities, and 
procurement plans. There is a considerable discrepancy from the 
level of our public announcement." 
 
6) Passage of second extra budget delayed 
 
MAINICHI (Top play) (Slightly abridged) 
January 27, 2009 
 
Members of the Upper and Lower Houses met last night and discussed 
what to do about the government's second supplementary budget bill 
for fiscal 2008 that features a controversial 2 trillion yen cash 
handout scheme. But a tug-of-war continued between the ruling and 
opposition camps from beginning to end, and no conclusion was 
reached. They will meet again at 1 p.m. today. Although there was no 
agreement yesterday, the government's bill will eventually be 
enacted into law today based on Article 60 of the Constitution. The 
article stipulates that if both chambers fail to agree on the 
passage of a budget in a joint committee, the decision of the more 
 
TOKYO 00000182  004 OF 010 
 
 
powerful Lower House takes precedence. 
 
Lower House Steering Committee Chairman Kenji Kosaka of the Liberal 
Democratic Party (LDP) yesterday decided on his authority to bring 
about four speeches, including a policy speech by Prime Minister 
Taro Aso, in a Lower House plenary session starting at 1 p.m. today. 
The Democratic Party of Japan (DPJ) has fiercely reacted to the 
ruling side's plan to hold the meeting of both Houses and four 
speeches simultaneously. 
 
The opposition camp prepared its own bill to remove the government's 
cash handout plan. The bill was adopted in a plenary session of the 
House of Councillors yesterday. A bill amending the government's 
budget passed the Upper House for the first time in postwar history. 
Since the two Houses came up with different budget bills, a joint 
committee of both Houses was formed in the afternoon. The committee 
is made of 20 members, with eight lawmakers from the LDP and two 
from the New Komeito, respectively, representing the Lower House in 
support of the government's bill, and eight from the DPJ, one from 
the Social Democratic Party, and one from the People's New Party 
representing the Upper House seeking to endorse the amendment bill. 
 
The joint meeting was scheduled to start a little past 4 p.m., but 
due to the opposition side's demand for recording the proceedings in 
the joint meeting and disclosing them, the meeting started nearly 
five hours behind the schedule. 
 
Toshimi Kitagawa, who chaired the joint meeting yesterday, adjourned 
the meeting at about 10:45 p.m., upon declaring: "Participants seem 
to have more opinions, so we will continue the discussion tomorrow." 
Joint meetings usually end in several dozen minutes, so it was 
unprecedented that the meeting was thrown into confusion. It was 
also the first time in 15 years, since the one on bills related to 
political reform in 1994, that a meeting of both Houses did not end 
in a day. Further, it was unprecedented in postwar history that 
discussion at the panel of the two chambers on a budget lasted for 
more than two days. 
 
Senior members of the DPJ, including President Ichiro Ozawa, met in 
the Diet building last night and conferred on what approach the 
party should take. The main opposition party presented to the ruling 
side a compromise plan that would allow four speeches on the 28th 
and also indicated the party would approve the enactment of the 
second supplementary budget today, but the ruling parties declined 
the proposals. 
 
The 4.7858-trillion-yen second extra budget bill includes the cash 
handout plan, and measures to lower expressway tolls, create jobs, 
and help small businesses raise funds. 
 
A vote on bills related to the second extra budget to ensure fiscal 
resources for the measures to invigorate the economy, including the 
cash handout, has been put on hold in the Upper House. If the DPJ 
delays the voting further, the distribution of cash may be delayed 
to the middle of March, at the earliest. 
 
7) Second extra budget still under tortuous negotiations; Economic 
effects unlikely anytime soon 
 
MAINICHI (Page 2) (Excerpts) 
January 27, 2009 
 
 
TOKYO 00000182  005 OF 010 
 
 
Keiji Yoshida, Ichiro Ikawa, Takanori Ishikawa 
 
The passage of a second supplementary budget for fiscal 2008 has 
been delayed. A cash handout plan and a plan to lower expressway 
tolls that are included in the budget bill cannot be implemented 
unless the budget-related bills are enacted. If the opposition camp, 
including the Democratic Party of Japan, does not take a vote on the 
related bills in the Upper House, the ruling camp would not be able 
to take a second vote in the Lower House to pass them until March 14 
or later. It will take some time for economic measures to create 
effects. 
 
Cash handout plan 
 
Municipal governments that will pay out cash benefits totaling 2 
trillion yen with the passage of the second extra budget will begin 
creating lists of recipients based on their respective basic 
resident registers and mailing out request forms. But unless the 
related bills to finance the cash handout plan are enacted, 
municipalities would probably not start paying cash benefits. 
 
Most municipalities are likely to wait until after the Golden Week 
holiday period in May. In order to begin paying out the benefits, 
each municipal assembly has to approve their supplementary budgets 
that include necessary expenses, in addition to the Diet approval of 
the second state supplementary budget. Municipal assemblies hold 
their meetings between mid-February and early March, so payments 
will not occur until after that. The Internal Affairs and 
Communications Ministry says it is possible for municipalities to 
mail out request forms before the related bills are enacted and to 
begin paying out benefits within the current fiscal year as soon as 
the related bills are enacted. But it is unknown how many 
municipalities will actually start complicated administrative work 
to begin disbursing the cash benefits before the end of the current 
fiscal year. 
 
Employment 
 
As a step to stop the deterioration of the employment situation, 
expenses to set up a 400-bullion-yen job-creating fund in 
prefectural governments is incorporated in the budget. The fund 
consists of two plans: an emergency job-creation project (150 
billion yen) to have unemployed workers engage in public works 
projects temporarily, such as road repairing; and special subsidies 
(250 billion yen) to reinvigorate local job markets resulting in the 
development of indigenous projects and the stabilization of 
employment. In addition, a system will begin to pay 1 million yen 
per person to small and mid-sized companies that employed part-time 
workers aged between 25 and 39 for over six months. 
 
Expectant mothers will also be able to take all 14 health checkups 
free of charge until fiscal 2010 and families with children aged 
between 3 and 5 can receive 36,000 yen in child-raring support 
allowance once for each child except for the first child. 
 
8) My view on economic stimulus measures 
 
NIKKEI (Page 2) (Full) 
January 27, 2009 
 
Takero Doi, Keio University Associate Professor: Eradicating 
anxieties about social security urged 
 
TOKYO 00000182  006 OF 010 
 
 
 
An increase in public spending by Japan is in no way inferior to 
that by other countries in terms of size. However, Japan's economic 
stimulus package lacks a vision for the future, compared with the 
package the U.S. Obama administration has come up with. I believe 
politics should indicate ideals and a goal for making an 
environment-friendly society or ideals. 
 
Unless the government makes efforts to redress a strong sense of 
anxiety people feel about social security, consumers will not loosen 
their purse strings, even if its hands out flat-sum cash benefits to 
them. In order to eradicate anxieties felt by people, it is 
necessary for it to show a future image of social security, 
including a hike in the sales tax. 
 
Hideo Kumano, senior economist at the Dai-Ichi Life Research 
Institute 
 
Among items in the economic stimulus package incorporated in the 
fiscal 2008 second extra budget, measures to help small- and 
medium-sized businesses manage their cash position may produce more 
effects than expected. However, the package also contains outmoded 
proposals, such as a cut in highway tolls. The flat-sum cash handout 
scheme costing 2 trillion yen would be more helpful, if the money is 
used for unemployment measures. 
 
It is necessary for the government to focus on areas that create new 
industries and services, such as the consolidation of infrastructure 
for electric vehicles, when it boosts public spending. Various 
countries are tackling environment-related investment. Japan should 
not fall behind. It should come up with measures to create demand 
and jobs. 
 
9) Research institute projects that second fiscal 2008 budget can 
create up to 160,000 jobs 
 
MAINICHI (Page 2) (Abridged slightly) 
January 27, 2009 
 
Kenji Shimizu 
 
How much can a second supplementary budget for fiscal 2008 underpin 
the rapidly deteriorating economy and employment? The Daiichi Life 
Insurance Economic Research Institute estimates that the extra 
budget, if it is fully used by local governments for emergency 
job-creation projects and other measures, can create up to 160,000 
jobs and push up real economic growth by 0.6 points. Specifically, 
the institute projects that a cash handout program can create 31,000 
jobs and lowering expressway tolls can generate 24,000 jobs. The 
institute concludes that the extra budget can generate up to 160,000 
jobs, including those plus other jobs that will be created by a 
school earthquake resistance project and local temporary employment 
measures. 
 
Nevertheless, related bills enabling the reserve funds in the Fiscal 
Investment and Loan Program Special Account ("buried treasures") to 
be used to finance most of those projects have yet to clear the 
Diet. For this reason, measures that can be implemented immediately 
are limited to support for small and mid-size companies to ease 
their cash-flow problems, school earthquake resistance projects, 
special subsidies to reinvigorate local job markets by utilizing the 
labor insurance special account, and others steps. As such, only up 
 
TOKYO 00000182  007 OF 010 
 
 
to 30,000 jobs are expected to be created for the foreseeable future 
and the economy will grow a mere 0.1 point. 
 
10) Dark clouds over LDP with its candidate losing Yamagata 
gubernatorial race 
 
ASAHI (Page 4) (Full) 
January 27, 2009 
 
Opposition-backed newcomer Mieko Yoshimura, 57, defeated incumbent 
Yamagata Gov. Hiroshi Saito, 51, in Sunday's gubernatorial election. 
Both candidates did not officially accept recommendations from any 
political parties. Prior to the next general election for the House 
of Representatives, however, the defeat of Saito, whom three Liberal 
Democratic Party (LDP) Lower House members strongly backed, gave the 
impression of a shadow falling on the LDP's strength, all the more 
because the election was held in Yamagata, which is a stronghold for 
conservatives. 
 
It is too early to strongly link the result of the Yamagata race 
with such issues related to national politics as the Aso cabinet's 
slump in the polls. There is no doubt that the primary reason for 
Saito's loss is that the prefectural people judged his four-year 
conduct of prefectural administration, for example a subsidy cut, as 
"cool" toward the residents. 
 
When analyzing the results of exit polls the Asahi Shimbun conducted 
in 60 places in the prefecture on Jan. 25, the LDP can see its 
negative aspects. 
 
Compared with the previous gubernatorial race conducted four years 
ago, the percentage of LDP supporters to respondents in the exit 
polls dropped from 46 PERCENT  to 40 PERCENT , while that of 
supporters of the main opposition Democratic Party of Japan (DPJ) 
increased to 26 PERCENT  from 18 PERCENT . Although part of the LDP 
backed Saito, 71 PERCENT  of the LDP supporters voted for him. Of 
the DPJ supporters, 80 PERCENT  voted for Yoshimura. It shows the 
trend that the LDP is not coherent with decreasing its supporters, 
while the DPJ is coherent with the increase of its backers. 
 
In the recent Asahi nationwide poll, as well, the approval rates for 
the LDP and DPJ were nearly equal. Asked which party they would vote 
for in the proportional representation segment race, the percentage 
of respondents favoring the DPJ topped that of the LDP. The decline 
in the LDP's momentum is probably seen in many parts of the 
country. 
 
It seems that the result of the local election has become a factor 
that makes Prime Minister Aso hesitate to dissolve the Lower House. 
 
11) LDP's Kato may lose political clout 
 
ASAHI (Page 4) (Full) 
January 27, 2009 
 
In Sunday's Yamagata gubernatorial election, the incumbent governor 
was defeated, even though the candidate was recommended by Koichi 
Kato, former secretary general of the ruling Liberal Democratic 
Party (LDP). Kato analyzed the reasons for the defeat, saying: 
"There was something like the unpopularity of the (Aso) 
administration and the LDP." However, the influence of Kato, who is 
aiming for a comeback to the central political stage by leading 
 
TOKYO 00000182  008 OF 010 
 
 
political realignment, will inevitably decline. 
 
Kato fielded Hiroshi Saito, a former Bank of Japan official, as a 
candidate for the previous gubernatorial race. As Saito won the 
race, defeating the incumbent governor, Kato was praised. However, 
the number of votes Saito obtained in the Lower House Yamagata No. 3 
district, which is Kato's home constituency, was about 10,000 votes 
fewer than the number of votes cast for the first-time candidate. 
 
Kato also envisages a liberal alliance with some members of the 
Democratic Party of Japan (DPJ), the largest opposition force. In 
addition to his abundant experience in politics, Kato has maintained 
his political clout with his strong electoral turf. He has won 
elections without relying on the LDP. However, Saito's defeat in the 
election has exposed the weakness of his political footing in his 
home constituency. 
 
Kato said: "If the defeat is due to the LDP's bad reputation, it 
will have an impact on the national election. We should be on our 
guard." He appears to be required to solidify his political footing 
before leading political realignment. He complained to his aides 
that the Yamagata election symbolized the difficulty of politics in 
the future. 
 
12) Only 14 PERCENT  of lawyers are women in Japan 
 
ASAHI (Page 1) (Full) 
Eve., January 26, 2009 
 
The proportion of female lawyers has been flat despite an increase 
in the number of lawyers with the reform of the judiciary system. As 
of the end of March 2008, there were about 25,000 lawyers, including 
3,599 women. Woman lawyers account for only 14 PERCENT , a far cry 
from Western countries. Although bar associations are backing female 
lawyers, they are falling behind in their efforts. Lawyers should be 
second to none among all occupations in honoring gender equality, 
yet they seem to be inattentive to their own business community. 
 
The Japan Federation of Bar Associations (JFBA) has released its 
2008 white paper, featuring the postwar advancement of female 
lawyers. In 1950, there were about 5,800 lawyers. Among them were 
six women, or 0.1 PERCENT . The number of women who were lawyers was 
over 100 in 1966 and over 1,000 in 1996. In 2008, the proportion of 
woman lawyers was more than double from 2000. In their proportion, 
however, Japan is far lower than Western countries, as seen from the 
fact that female lawyers account for 49 PERCENT  of the total in 
France and 30 PERCENT  in the United States. 
 
Tomoko Suganuma, a lawyer and a vice chair of the JFBA's committee 
on gender equality, says: "Our job needs a license from the start, 
so we have made it a principle to say there is no gender 
segregation. Besides, bar associations have been falling behind in 
their efforts." Actually, women account for 40 PERCENT  among 
corporate lawyers at business firms that make maternity leave 
available to their employees. 
 
"There is a lot of flexibility for our job," Suganuma said. "But," 
she added, "we have been responsible for conception, childbirth, and 
childcare." According to her account, woman lawyers have less income 
while they are growing up their children, but there is no 
compensation for these mothers. "There were also many women who 
could not pay membership dues to their bar associations and gave up 
 
TOKYO 00000182  009 OF 010 
 
 
on their registration," she said. 
 
The JFBA currently has a plan to push for gender equality. The plan, 
however, was created in March last year, about seven years after the 
government's gender equality plan was announced. The JFBA is now 
working to install women in all committees. 
 
Woman lawyers' proportion in major countries 
Japan (2008) 14.4 PERCENT 
U.S. (2007) 30.1 PERCENT 
U.K. (2007) 42.2 PERCENT 
Germany (2006) 29.3 PERCENT 
France (2006) 48.7 PERCENT 
¶S. Korea (2007) 10.7 
Source: 2008 JBFA white paper 
 
13) IWC chairman will likely approve coastal whaling: Compromise 
plan in return for curtailing down research whaling 
 
MAINICHI (Page 24) (Full) 
January 27, 2009 
 
The Mainichi Shimbun has learned that International Whaling 
Commission Chair Hogarth has compiled a compromise plan approving 
resumption of small-scale coastal whaling, which Japan is seeking, 
in return for curtailing Japan's research whaling in the Southern 
Ocean. The Washington Post reported this on Jan. 25. 
 
The IWC has come to a standstill due to the protracted confrontation 
between whaling countries, such as Japan, and anti-whaling 
countries, such as the U.S. and Britain, over resumption of 
commercial whaling, which has been suspended since 1986, and the 
propriety of research whaling. Japan is also seeking to resume 
small-scale coastal whaling, a traditional way of whaling adopted in 
Miyagi Prefecture and Wakayama Prefecture. However, the ban is still 
not expected to be lifted. 
 
The IWC at its annual meeting in 2008 decided to set up a taskforce 
for the normalization of the stalemated situation. Panel members 
discussed such issues as research whaling. Hogarth appears to aim at 
resolving the confrontation by formally presenting the compromise 
plan in February. However, what approach anti-whaling countries will 
make is unclear. 
 
Japan takes the position that research whaling aimed at 
scientifically studying the ecology of whales is a right 
acknowledged under the International Whale Fishing Control Treaty, 
which stipulates rules adopted by the IWC. Japan is expected to 
disapprove a proposal for a substantial reduction in research 
whaling. A Fisheries Agency official declined to make a comment on 
the matter. 
 
14) Establishment of IRENA: Japan dispatched delegate in turnaround 
from previous stance 
 
YOMIURI (Page 2) (Full) 
January 27, 2009 
 
A plenary session for the establishment of the International Agency 
for Renewable Energies (IRENA), which aims at expanding the use of 
solar light and wind power, was held in Bonn, Germany on January 26. 
The meeting was joined by representatives from about 120 countries, 
 
TOKYO 00000182  010 OF 010 
 
 
including both industrialized and developing countries. According to 
the German government, about 50 nations are expected to sign the 
agreement of the establishment of IRENA. The U.S. and Britain will 
not sign the accord. 
 
IRENA will facilitate technical transfers, fund procurement and 
information exchanges related to renewable energies in order to 
address global warming and the depletion of fossil fuel in the 
future. Unlike the International Energy Agency (IEA) comprising of 
28 countries centering on industrialized countries, IRENA will be 
joined by many more countries. As such, it is expected to play a 
role of encouraging developing countries to cut greenhouse gas 
emissions: developing countries are at present not obligated to do 
so. 
 
The Japanese government has decided not to join IRENA. However, it 
dispatched a delegation consisting of officials from four 
ministries, including the Foreign Ministry, to the plenary session. 
This is because concern is growing in the Diet that if Japan does 
not dispatch a delegation, it could be taken as backward-looking. 
The government will reach a final decision on whether it should or 
should not join the agency as decided previously, after determining 
the responses of various countries. 
 
Referring to Japan's participation in IRENA, Prime Minister Taro Aso 
at the Upper House Budget Committee meeting on January 26 simply 
said, "I would like to look into the issue, taking into 
consideration the merits and demerits of joining the agency." 
 
ZUMWALT