VZCZCXRO5641
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0185/01 0270803
ZNR UUUUU ZZH
P 270803Z JAN 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0300
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 4416
RUEHFK/AMCONSUL FUKUOKA 2069
RUEHOK/AMCONSUL OSAKA KOBE 5857
RUEHNAG/AMCONSUL NAGOYA 9955
RUEHKSO/AMCONSUL SAPPORO 2628
RUEHBJ/AMEMBASSY BEIJING 7414
RUEHUL/AMEMBASSY SEOUL 3451
RUCNDT/USMISSION USUN NEW YORK 3445

UNCLAS SECTION 01 OF 12 TOKYO 000185 
 
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 01/27/09 
 
INDEX: 
 
(1) Government gearing up for dispatching MSDF to pirate-infested 
waters off Somalia (Mainichi) 
 
(2) DPJ's Maehara: Japan-U.S. alliance is linchpin of Japan's 
diplomacy (Sankei) 
 
(3) Poll on Aso cabinet, political parties (Nikkei) 
 
(4) Poll on Aso cabinet, political parties (Mainichi) 
 
(5) Prime Minister Aso's unwavering insights (Sankei) 
 
(6) Second extra budget to be enacted possibly today: A little 
closer to compiling economic stimulus package; Diet approval for 
bills aimed at securing 4 trillion yen in financial resources not 
yet in sight; Discussion on additional measures behind timetable 
(Nikkei) 
 
(7) Autobiography of former Ambassador Howard Baker: I took oath of 
office, feeling expectations based on Bush's stance of prioritizing 
Japan (Nikkei) 
 
 ARTICLES: 
 
(1) Government gearing up for dispatching MSDF to pirate-infested 
waters off Somalia 
 
MAINICHI (Page 1) (Excerpts) 
January 25, 2009 
 
Japan won't let China beat it 
 
In a ministerial meeting of the UN Security Council held on Dec. 16 
in the UN headquarters in New York, Yasutoshi Nishimura of the 
Liberal Democratic Party, a parliamentary official of the Foreign 
Ministry, was expectantly waiting for his turn to deliver a speech. 
In it, he was going to express Japan's willingness to prepare new 
legislation that would authorize Japan's anti-piracy operations and 
to urgently work out effective anti-piracy measures possible under 
the existing law. He attended the meeting on behalf of Foreign 
Minister Yasuhiro Nakasone. Prior to the conference, Nishimura had 
received the words "excellent" when he told then Secretary of State 
Condoleezza Rice: "Japan is considering the possibility of 
dispatching Maritime Self-Defense Force (MSDF) troops." 
 
Only Japan among the Group of Eight (G-8) countries has yet to 
deploy warships to the waters off Somalia. Nishimura was hopeful of 
obtaining understanding from the audience in the UN meeting for 
Japan's position with an explanation about the Japanese government's 
two-stage dispatch plan by employing the existing law first and then 
applying the new law. 
 
But when China's Vice Foreign Minister He Yafei stressed in his 
speech, "China is actively considering dispatching a naval force," 
there was a general stir that swept across the audience. Last year, 
seven Chinese commercial ships were hijacked by pirates. China's 
dispatch plan took everyone by surprise because it had not been 
announced. It weakened the impact of Nishimura's declaration, which 
came long after the Chinese official's speech. 
 
 
TOKYO 00000185  002 OF 012 
 
 
The UNSC adopted in its meeting on Dec. 16 Resolution 1851, which 
allows military attacks on pirates' ground bases and designates the 
waters off Somalia as an area for international cooperation. 
 
China's moves upset the Japanese government. Unlike Japan, which 
finds it difficult to dispatch SDF troops overseas, China has been 
proactive about having its troops join UN peacekeeping and other 
international cooperative operations, resulting in increasing its 
influence. A senior government official of the Cabinet Secretariat 
advised Prime Minister Aso, "Japan should not let China beat it," 
and Aso reportedly replied: "You are right." 
 
In response to a question of whether Japan would dispatch SDF troops 
to Somalia, Chief Cabinet Secretary Takeo Kawamura -- even though 
there had been no reference to China in the question -- said: "China 
reportedly will soon be dispatching its warships to the area, so 
Japan also needs to take measures swiftly." 
 
Aides to the prime minister, giving consideration to the New 
Komeito's cautious view, intended to disclose early this year 
Japan's decision to dispatch the MSDF that involved issuing an order 
for maritime policing action. But Aso said before reporters on the 
night of Dec. 25: "Urgent action should be taken. Although the 
government should think about new legislation, it will take time 
until the process is completed, so Japan will cope with the 
situation by invoking the policing provision for the time being." 
 
On Dec. 26, China dispatched two destroyers and a supply ship to the 
Gulf of Aden. 
 
Shelving of discussion on new legislation concerned 
 
The government has invoked the policing provision only twice: first, 
when an unidentified North Korean boat was spotted in 1999, and 
second, when a Chinese nuclear submarine intruded into Japanese 
territorial waters in 2004. The provision authorizes the government 
to mobilize SDF troops to cope with a situation that demands higher 
capability than the Japan Coast Guard can offer. It does not assume 
operations in waters far from Japan. Given this, the focus of 
discussion in the government was on the need for a dispatch and 
legal grounds. 
 
Important sea lanes run through the Gulf of Aden, which is located 
between Somalia, a country in a state of anarchy, and Yemen. About 
20,000 ships, including 2,300 operated by Japanese companies, pass 
annually through the gulf. 
 
The first attack by pirates in the Somalia waters against a Japanese 
ship occurred on Oct. 28, 2007. On April 21 of last year, a 
high-speed boat attacked and bombed a Japanese oil tanker. On Nov. 
14, a Chinese fishing boat was hijacked off Kenya. The Japanese 
captain has been held by the pirates since then. 
 
The idea of dispatching the SDF to the waters off Somalia came up as 
a political topic during a meeting of the House of Representatives' 
special committee on antiterrorism measures on Oct. 17 of last year. 
In response to a question about the possibility by Democratic Party 
of Japan member Akihisa Nagashima, Aso said: "I think that is very 
significant as a maritime policing action." 
 
But many government officials remained unresponsive to the idea. 
Japan Coast Guard Director Teiji Iwasaki said in the Diet last 
 
TOKYO 00000185  003 OF 012 
 
 
October: "It would be difficult to mobilize (JCG) patrol ships, all 
things considered." Defense Minister Yasukazu Hamada has also 
expressed a cautious view about the dispatch plan, based on the view 
that the dispatch under the policing clause would fall under the 
"evasion of law," according to a government source. 
 
Upon learning China's plan to mobilize its naval vessels, Land, 
Infrastructure, Transport & Tourism Minister Kazuyoshi Kaneko urged 
the Defense Ministry in a ministerial meeting on Dec. 24 to take 
necessary action, saying: "It is necessary to deal with this issue 
swiftly." But Hamada remained silent with a discontented look. 
Former Defense Minister and currently Agriculture, Forestry and 
Fisheries Minister Shigeru Ishiba spoke for Hamada: "Although there 
are no constitutional problems, the policing clause does not assume 
that the order will be kept in place." 
 
Hamada wants to see MSDF troops dispatched after the nation's 
weapon-use standards are eased in a new law. He fears that the 
discussion on new legislation would be put on hold. 
 
Weapon-use standards left to SDF judgments 
 
The ruling coalition's project team on anti-piracy measures held its 
first meeting on Jan. 9, focusing on rules for the MSDF to use 
weapons during anti-piracy operations. 
 
Taken up in its meeting on the 13th was a case in which the Indian 
Navy mistakenly sank a fishing boat hijacked by pirates, eventually 
killing hostages. 
 
Dispatched SDF members are allowed to launch a damaging attack if it 
is for legitimate self-defense and averting imminent danger. But the 
question is to what extent self-defense and avoiding imminent danger 
are applied in the event that SDF members kill or wound pirates or 
private citizens. Defense Ministry's Operations and Planning Bureau 
Director General Hideshi Tokuchi insisted in the meeting on the need 
to set weapon-use standards in accordance with the actual situation, 
saying: "In shooting at a ship, if troops kill or injure 
crewmembers, commanding officers may be prosecuted." 
 
Ahead of the Obama administration's inauguration, the Prime 
Minister's Office and the Foreign Ministry judged it undesirable for 
Japan to take slow action in international cooperation. In the 
ruling camp, many members thought it would be difficult to enact new 
legislation, not knowing the response of the Democratic Party of 
Japan, which controls the House of Councillors. Given such 
circumstances, the view that the SDF should be quickly dispatched 
under the existing law gained influence. 
 
In a meeting of the panel on the 20th, when how MSDF warships should 
escort commercial freighters and other ships, even Lower House 
member Masao Akamatsu of the New Komeito said: "We should not be 
engaged in this kind of discussion. It is important to take quick 
action." 
 
Regarding weapon-use standards, the interim report released the 
project team on the 22nd entrusted most of the decision-making to 
SDF operational rules, noting: "The Defense Ministry will take the 
lead in setting specific standards." A senior uniformed member from 
the SDF staff offices grumbled: "The report requires SDF members to 
make a judgment on a key part of the mission. We would be scolded if 
we went too far or if we did too little." 
 
TOKYO 00000185  004 OF 012 
 
 
 
In December of last year, Upper House member Masahisa Sato of the 
Liberal Democratic Party, former commander of the 1st Iraqi 
Reconstruction Group, visited Djibouti, the base of the French 
Military's anti-piracy operation. After returning home, he reported: 
"It is all each country can do to protect their ships. Coordination 
in the Japanese government has not gone smoothly." The Foreign 
Ministry has viewed that China's deployment of its warships to the 
Somalia waters is also aimed at protecting its ships. 
 
(2) DPJ's Maehara: Japan-U.S. alliance is linchpin of Japan's 
diplomacy 
 
SANKEI (Page 5) (Full) 
January 24, 2009 
 
Seiji Maehara, former president of the Democratic Party of Japan 
(DPJ) stated in an interview to the Sankei Shimbun: "The cornerstone 
of Japan's foreign policy is its alliance with the United States." 
The main points of his interview are as follows: 
 
In the wake of Aso cabinet's support rate dropping below 20 PERCENT 
, there is an atmosphere in the ruling Liberal Democratic Party 
(LDP) that the party will not be able to win an election under the 
lead of Prime Minister Taro Aso. 
 
However, the DPJ should act as if nothing has happened. It is 
important for our party to urge the prime minister to dissolve the 
House of Representatives and call a snap election as early as 
possible, in order to bring about a change in government. I think 
that if our party fails to gain a sole majority in the next Lower 
House election, the notion of forming a coalition government will 
arise. Even if the party secures a majority of the Lower House 
seats, it does not command a majority of seats in the House of 
Councillors without the cooperation of the Social Democratic Party 
(SDP) and People's New Party (PNP). After the general election, it 
is necessary to find ways for cooperation with other parties in a 
variety of ways. 
 
I highly value President Ichiro Ozawa's political skill of putting 
forward a policy of confronting the LDP because political change is 
just around the corner. 
 
However, if a two-party system takes hold, a divided Diet, under 
which each of the two Diet chambers is controlled by different 
parties, could occur in the future as well. Should the government be 
unable to implement policy measures due to turmoil in the Diet, it 
will have a negative impact on Japan's development. 
 
The ruling and opposition parties will likely find ways to act as a 
mature democracy under which the two sides reach a conclusion 
through in-depth discussions. In the future, I want to ask President 
Ozawa to make efforts for bringing together views in the party. 
 
The Japan-U.S. alliance is the linchpin of Japan's foreign policy. 
Secretary of State Hillary Clinton stated: "The U.S. relations with 
Japan is absolutely essential to maintain peace and prosperity in 
the Asia-Pacific region, a cornerstone of American policy in Asia." 
I think there will be no big change in Japan-U.S. relations under 
the Obama administration. 
 
In last year's extraordinary Diet session, the DPJ opposed the bill 
 
TOKYO 00000185  005 OF 012 
 
 
amending the new Antiterrorism Special Measures Law to extend by one 
year the Maritime Self-Defense Force's (MSDF) refueling operation. 
Therefore, if a DPJ-led government is inaugurated, the MSDF's 
refueling mission will be suspended. However, since stability in 
Afghanistan and in the entire Middle East will lead to stable oil 
prices, Japan should commit itself in some fashion (to stabilizing 
Afghanistan). 
 
Specifically, Japan should take part in the International Security 
Assistance Force in Afghanistan (ISAF) and start providing 
assistance in such civilian areas as agriculture, police and medical 
service as a responsible member of the Provincial Reconstruction 
Team (PRT). Since maintaining security is needed for carrying out 
aid activities, weapons-use standards should be flexible. 
 
The UN-centered diplomacy Mr. Ozawa has advocated is not bad in the 
sense that each country will do its best to raise the status of the 
United Nations. In order for its security and international 
contribution, it is essential for Japan to balance the United 
Nations and the Japan-U.S. alliance. Japan should not regard the 
United Nations alone as supreme. 
 
(3) Poll on Aso cabinet, political parties 
 
NIKKEI (Page 2) (Full) 
January 26, 2009 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote findings from the 
last survey conducted in December last year.) 
 
Q: Do you support the Aso cabinet? 
 
Yes 19 (21) 
No 76 (73) 
Can't say (C/S) + don't know (D/K) 5 (6) 
 
Q: Which political party do you support or like? 
 
Liberal Democratic Party (LDP) 29 (35) 
Democratic Party of Japan (DPJ or Minshuto) 37 (33) 
New Komeito (NK) 3 (4) 
Japanese Communist Party (JCP) 5 (5) 
Social Democratic Party (SDP or Shaminto) 1 (2) 
People's New Party (PNP or Kokumin Shinto) 0 (0) 
Reform Club (RC or Kaikaku Kurabu) 0 (0) 
New Party Nippon (NPN or Shinto Nippon) 0 (1) 
Other political parties 1 (1) 
None 16 (16) 
C/S+D/K 6 (4) 
 
Q: When do you think the House of Representatives should be 
dissolved for a general election? 
 
As early as possible 42 
After the budget's passage this spring 24 
Late in the current ordinary Diet session 6 
No need to hurry 19 
Other answers + C/S + D/K 9 
 
(Note) The total percentage does not become 100 PERCENT  in some 
cases due to rounding 
 
TOKYO 00000185  006 OF 012 
 
 
 
Polling methodology: The survey was taken Jan. 23-25 by Nikkei 
Research Inc. by telephone on a random digit dialing (RDD) basis. 
For the survey, samples were chosen from among men and women aged 20 
and over across the nation. A total of 1,516 households with one or 
more eligible voters were sampled, and answers were obtained from 
931 persons (61.4 PERCENT ). 
 
(4) Poll on Aso cabinet, political parties 
 
MAINICHI (Page 2) (Full) 
January 26, 2009 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: Do you support the Aso cabinet? 
 
 T P M F 
Yes 19 (21) 20 18 
No 65 (58) 67 62 
Not interested 15 (19) 11 18 
 
Q: (Only for those who answered "yes" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 29 
(26) 28 31 
Because something can be expected of the prime minister's leadership 
12 (19) 13 11 
Because there's something friendly about the prime minister 26 (21) 
27 24 
Because something can be expected of the prime minister's policy 
measures 18 (15) 15 22 
 
Q: (Only for those who answered "no" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 6 
(6) 7 5 
Because nothing can be expected of the prime minister's leadership 
33 (27) 31 35 
Because there's something imprudent about the prime minister 14 (20) 
13 15 
Because nothing can be expected of the prime minister's policy 
measures 45 (37) 48 41 
 
Q: Which political party do you support? 
 
 T P M F 
Liberal Democratic Party (LDP) 20 (23) 20 19 
Democratic Party of Japan (DPJ or Minshuto) 26 (24) 33 18 
New Komeito (NK) 5 (5) 3 6 
Japanese Communist Party (JCP) 3 (3) 3 4 
Social Democratic Party (SDP or Shaminto) 1 (1) 1 2 
People's New Party (PNP or Kokumin Shinto) 0 (1) 1 -- 
Reform Club (RC or Kaikaku Kurabu) 0 (--) -- 0 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 0 -- 
Other political parties 1 (1) 1 2 
None 42 (37) 37 47 
 
Q: Who do you think is more appropriate for prime minister between 
 
TOKYO 00000185  007 OF 012 
 
 
Prime Minister Aso and DPJ President Ozawa? 
 
 T P M F 
Prime Minister Aso 16 (19) 16 16 
DPJ President Ozawa 25 (21) 29 20 
Neither is appropriate 55 (54) 52 59 
 
Q: Which party between the LDP and the DPJ would you like to see win 
in the next election for the House of Representatives? 
 
 T P M F 
LDP 27 (29) 25 30 
DPJ 50 (46) 57 42 
Other political parties 16 (16) 12 20 
 
Q: The government and the ruling parties plan to hand out a per 
capita benefit of 12,000 yen. Do you appreciate this cash payout? 
 
 T P M F 
Yes 22 (21) 21 22 
No 74 (70) 76 71 
 
Q: Prime Minister Aso has indicated that he would not dissolve the 
House of Representatives for a general election at least until the 
budget for next fiscal year clear the Diet. Do you appreciate this 
stance? 
 
 T P M F 
Yes 32  34 31 
No 61  62 60 
 
Q: Prime Minister Aso has indicated that the government would raise 
the consumption tax in three years if the economic situation changes 
for the better. Do you support this policy? 
 
 T P M F 
Yes 27  31 23 
No 67  65 69 
 
Q: Which form of government do you think is desirable? 
 
 T P M F 
The current LDP-NK coalition 8  8 9 
An LDP-DPJ grand coalition 34  30 38 
The LDP's single-party government 6  6 6 
An LDP-led coalition government 24  30 18 
The DPJ's single-party government 9  11 8 
A non-LDP, non-DPJ coalition government 8  7 9 
 
(Note) Figures shown in percentage, rounded off. "0" indicates that 
the figure was below 0.5 PERCENT . "--" denotes that no respondents 
answered. "No answer" omitted. Figures in parentheses denote the 
results of the last survey conducted Dec. 6-7. 
 
Polling methodology: The survey was conducted Jan. 24-25 over the 
telephone across the nation on a computer-aided random digit 
sampling (RDS) basis. A total of 1,591 households with one or more 
eligible voters were sampled. Answers were obtained from 1,046 
persons (66 PERCENT ). 
 
(5) Prime Minister Aso's unwavering insights 
 
 
TOKYO 00000185  008 OF 012 
 
 
SANKEI (Page 13) (Full) 
January 22, 2009 
 
By Hisahiko Okazaki, former ambassador to Thailand 
 
Two requests to Mr. Koizumi 
 
Please allow me to cite a private conversation with former Prime 
Minister Junichiro Koizumi. I will cite of course only what I said. 
 
It was around the summer of 2004, after the House of Councillors 
election had been held in July and before the cabinet was shuffled 
in September. Ahead of the shuffle of the cabinet, I made two 
requests: altering the government's interpretation of the right to 
collective self-defense and raising the consumption tax rate. In the 
end, (the Koizumi cabinet) seemed unable to do anything about (my 
requests) for altering the interpretation of the right to collective 
self-defense and hiking the consumption tax. So I asked the prime 
minister never to say, "I will not do such during the tenure of this 
cabinet." 
 
That was because it was a standard approach for the media and 
opposition parties to ask the prime minister's views on important 
issues in press conferences and question-and-answer sessions in the 
Diet and eventually tie the hands of the cabinet with his replies. 
 
Prime Minister Koizumi is a person who rarely listens to the 
opinions of others, so I do not know how much he embraced my views. 
But as far as I know, he never made statements dismissive of my 
proposals until his tenure ended. 
 
The two matters have something in common. It is common knowledge 
that when thinking of Japan's future, they are unavoidable matters. 
But from a common-sense standpoint of conventional politics, it is 
politically disadvantageous to mention them and it is safe to 
postpone them, saying, "I will not do such during the term of this 
cabinet." 
 
Consumption tax and right to collective self-defense 
 
Shortly before his administration was launched, Prime Minister 
Koizumi referred on television to the need to alter the 
interpretation of the right to collective self-defense. Then 9/11 
occurred. As a result, priority was given to taking a string of 
defense-related legislative measures, and the subject faded away. 
The statement "during the tenure of this cabinet" was made in 
launching the shuffled cabinet. 
 
And so I made the aforementioned requests so as not to blow up the 
last chance. 
 
What is common between the two subjects is that Japan is really 
strange internationally when compared to other industrialized 
countries and that lawmakers have invented ostensibly good excuses 
to avoid facing up to this fact. 
 
Japan's consumption tax rate is exceptionally low among 
industrialized countries. According to Iwao Nakatani's analysis, 
this is reflected in the fact that social disparity in Japan is the 
second largest after that in the United States. 
 
Although Japan's poverty rate is not very different from that of 
 
TOKYO 00000185  009 OF 012 
 
 
other countries, the figure after income is redistributed, that is, 
after receiving social security and other benefits, is markedly 
high. Other industrialized countries with high consumption tax rates 
have welfare policies that assume a major burden. 
 
When thinking of bringing state finances into balance, a cabinet 
naturally comes upon this matter. It can be dodged, however, by 
advocating reform that reduces unnecessary expenses. 
 
The appropriate way to avoid the issue of the use of the right to 
collective self-defense is to amend the Constitution rather than to 
taking a stopgap measure of altering the interpretation. 
 
Public reputation is like garbage 
 
To begin with, if a cabinet is aware of harmful effects of 
restrictions on the use of the collective self-defense right on 
Japan's national interests, a means to correct it should not have to 
be an either-or choice. Doing everything possible is the right 
approach. Treating a matter like amending the Constitution, which 
nobody thinks can be achieved easily, as a condition is nothing but 
an act of sabotage. 
 
Prime Minister Taro Aso has often been criticized lately. Such a 
public view is like floating grass. I was impressed by two points. 
One is that he remains uncompromising when it comes to his plan to 
hike the consumption tax rate in three years' time. Such is not 
possible without a firm insight about Japan's finances and economy. 
 
 
Former Prime Minister Noboru Takeshita visited Thailand shortly 
before his resignation due to a sharp drop in his support ratings 
from the introduction of the consumption tax, followed by the 
suicide of his secretary. During that period, Prime Minister 
Takeshita told me that the consumption tax was the only achievement 
that could be handed down to posterity. I remember that I was deeply 
impressed by his insight for the country. 
 
Another is that Prime Minister Aso has nonchalantly stated: "I have 
said all along that the interpretation of the right to collective 
self-defense must be changed." 
 
I would like to see him continue voicing this view. 
 
The rumor has it that the Cabinet Legislation Bureau has been doing 
the spadework to prevent the prime minister from repeating this 
view. The Cabinet Legislation Bureau is tasked with offering advice 
in response to the government's requests. It is not appropriate for 
the bureau to do the spadework in the government to maintain its own 
view. There is a need to find out whether the rumor is true or not, 
and if it turns out to be true, the bureau must be condemned. 
 
By just continuing to present unyielding views on the two matters, 
Taro Aso merits high assessment as the prime minister who has stood 
by his beliefs without making any easy compromises. 
 
The bottom line is to protect national interests, and public opinion 
must be regarded as garbage. 
 
(6) Second extra budget to be enacted possibly today: A little 
closer to compiling economic stimulus package; Diet approval for 
bills aimed at securing 4 trillion yen in financial resources not 
 
TOKYO 00000185  010 OF 012 
 
 
yet in sight; Discussion on additional measures behind timetable 
 
NIKKEI (Page 3) (Abridged Slightly) 
January 27, 2009 
 
Once the fiscal 2008 second extra budget is enacted, portions of 
measures designed to help companies manage their cash position and 
employment measures will at last get under way. However, there is no 
prospect for bills aimed at securing "hidden funds" (maizokin) from 
the special account to finance those measures being enacted. As 
such, policies that can be implemented right now are limited. The 
government and the ruling parties are making all-out efforts for the 
enactment of the fiscal 2009 budget. However, given the present 
state, in which the Japanese economy is rapidly worsening, the 
government's response is dubious in terms of specifics and speed. 
 
The Aso administration made a public appeal on government efforts 
with one minister terming the first extra budget enacted in October 
2008, the second extra budget and the fiscal 2009 budget a 
three-stage rocket. Fiscal disbursements incorporated in those bills 
as economic stimulus measures total 12 trillion yen. The amount in 
terms of project size comes to 75 trillion yen. The government 
maintains that Japan's economic stimulus package is in no way 
inferior to packages other leading countries have adopted. 
 
Delay likely in cash handouts 
 
The first extra budget has a strong flavor of being a measure to 
address the sharp rise in gas prices. Measures to address the 
financial crisis, which started last fall, and the resultant decline 
in the real economy will be fully readied with passage of the second 
extra budget. The second extra budget incorporates a 250 billion yen 
fund to be established for employment measures taken by local 
governments and expansion of a framework for the injection of public 
money into financial institutions. An emergency credit guarantee 
framework provided by credit guarantee corporations as a measure to 
help small- and medium-size businesses manage their cash position 
and a loan framework provided by government-affiliated financial 
institutions will be expanded to 30 trillion yen. 
 
However, the implementation of the flat-sum cash handout scheme 
totaling 2 trillion yen will likely be delayed. This is because the 
Democratic Party of Japan (DPJ), which is opposing the cash handout 
scheme, is refusing to hold a vote on special exemption bills aimed 
at procuring fiscal resources by such means as to draw funds from a 
reserve in the special account for the fiscal investment and loans 
program. If the DPJ delays debate to the longest possible extent, 
the payment would be impossible by mid-March, when a revote on the 
bill in the Lower House becomes possible. 
 
20 PERCENT  of fiscal disbursements 
 
Even if the second extra budget secures Diet approval, fiscal 
resources that are immediately available would be roughly 800 
billion yen out of 4.8 trillion yen. Only about 20 PERCENT  of the 
overall fiscal disbursements based on the three-stage rocket budget 
formula will thus be immediately available, even if 1.8 trillion yen 
from the first extra budget is included. This is only about 50 
PERCENT -60 PERCENT  of the project size costing 75 trillion yen. 
 
Diet deliberations on the fiscal 2009 budget will move into full 
swing after the enactment of the second supplementary budget. Main 
 
TOKYO 00000185  011 OF 012 
 
 
pillars of economic stimulus measures in that budget include an 
emergency reserve worth 1 trillion yen intended to address a 
possible sudden change in the economy, as well as a 1 trillion yen 
tax break, including a housing loan tax cut and a cut in the 
corporate tax imposed on small- and medium-sized businesses. 
 
However, it is unclear whether it is possible to underpin the 
Japanese economy, which is rapidly losing steam since late last 
year, with the "three-stage rocket" alone. Yuji Shimanaka of the 
Mitsubishi UFJ Securities Economic Cycle Research Institute 
underscored the need to take additional economic stimulus measures, 
saying, "Now is the time to create demand artificially." 
 
Voices calling for deregulation 
 
To be precise, voices hoping for the strategic consolidation of 
infrastructure, such as the re-expansion of Haneda Airport and 
intensive investment in environment-related areas, are deep-seated. 
Some are calling for deregulation, as Ryutaro Kono of BNP Pariba 
Securities said, "There is a major growth potential in Japan's 
strongly regulated medical services and nursing-care areas in terms 
of productivity. 
 
Views calling for the compilation of a second fiscal 2009 budget 
after passage of the fiscal 2009 budget have surfaced in the ruling 
camp. The Liberal Democratic Party's (LDP) project team has begun 
looking into a new set of employment measures. 
 
However, if the government and the ruling parties are to materialize 
additional economic stimulus package during a Diet deliberations on 
the fiscal 2009 budget, the opposition camp is bound to oppose the 
move, insisting that the fiscal 2009 budget should be resubmitted, 
instead." The situation is such that the government and the ruling 
camp have no other choice but to pour their energy into Diet 
deliberations for the time being, according to a senior ruling party 
official. 
 
(7) Autobiography of former Ambassador Howard Baker: I took oath of 
office, feeling expectations based on Bush's stance of prioritizing 
Japan 
 
NIKKEI (Page 36) (Full) 
January 26, 2009 
 
George W. Bush, who became the 43rd U.S. president in 2000, included 
many persons knowledgeable about Japan in his administration, in an 
attempt to demonstrate his stance of placing emphasis on Japan. 
 
In early spring of 2001, Chief of Staff to President Bush Andy Card 
called me under President Bush's instruction. He said on the phone: 
"The president wants you to assume the ambassadorship in Japan." I 
did not make a definite reply at that time. Several days later, I 
attended a dinner party hosted by Catherine Graham, owner of 
Washington Post Company, where I met President Bush. 
 
President Bush found me during the party, and I was beckoned and 
went over to him, leaving my wife, Nancy. Bush said with a sober 
look: "Howard, I am serious. I want you to become ambassador to 
Japan by all means." I replied: "If you really want me to, I will 
undertake the post." 
 
I heard this afterward, but Colin Powell, who assumed office as 
 
TOKYO 00000185  012 OF 012 
 
 
secretary of state, had recommended me for the ambassadorship in 
Japan. Richard Armitage, who is a close friend of Powell and became 
deputy secretary of state, also promptly agreed to Powell's idea. 
Powell then conveyed his idea to President Bush, and Bush gave 
approval. 
 
Ahead of the 50th anniversary of the signing of the San Francisco 
Peace Treaty in September 2001, Japan-U.S. relations became strained 
due to the collision between a U.S. Navy submarine and the Japanese 
fishing training ship "Ehime Maru," as well as incidents involving 
U.S. military personnel. 
 
After asked by Bush to assume office as ambassador to Japan, I 
sought Nancy's view. She said: "You have been given a new chance in 
your life." I was 75 years old at that time, and I was worried about 
my age. However, I decided to take the position, based on the 
judgment there would be no problem if I served only one term (four 
years). 
 
On March 26, President Bush officially announced his decision to 
nominate me as ambassador to Japan. In his statement, Bush said: 
"Mr. Baker is a real statesman (politician). The designation of Mr. 
Baker, who is rich in experience and has a wealth of expert 
knowledge, to the ambassadorship represents my stance of placing 
emphasis on relations with Japan." He expressed his hopes that this 
appointment would send a strong message of his emphasis on relations 
with Japan. 
 
Mike Mansfield, who was my senior as Senate majority leader and was 
a prominent ambassador to Japan, used to say: "U.S.-Japan relations 
are the most important bilateral relationship in the world." 
 
When Mansfield decided at the end of 1988 to resign after 11 years 
as ambassador to Japan, some in Japan voiced hopes that I would 
become his successor. I recalled that when I later assumed office as 
ambassador. 
 
On June 26, three months after the official announcement, I took an 
oath of office with President Bush and Nancy in attendance. An 
inauguration is usually held in the President Office in a 
businesslike manner, but as many as 350 persons attended my swearing 
in. Successive ambassadors to Japan stood behind me, including the 
98-year-old Mansfield, Mondale, Armacost, and Foley. 
 
President Bush in a merry mood introduced the successive 
ambassadors, including me, as "oomono (heavyweights)" in Japanese. 
In delivering my speech, I felt the great expectation and 
responsibility that was being placed on my shoulders. I expressed my 
determination to make utmost efforts in performing my last official 
mission, saying: "There is a special relationship between Japan and 
the U.S." 
 
ZUMWALT