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UNCLAS SECTION 01 OF 10 TOKYO 000053 
 
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 1/9/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Joseph Nye appointment as ambassador demonstrates importance that 
incoming Obama administration attaches to Japan  (Mainichi) 
 
Defense and security affairs: 
5) As Afghan war with terrorists bogs down, Japan will contribute 
only by providing official development assistance (ODA)  (Mainichi) 
 
6) Government to assist ISAF in Afghanistan by donating 400 million 
yen for helicopter repair  (Yomiuri) 
7) Aso government's project team starts discussions of new 
anti-piracy law that would have relaxed use-of-weapons rules 
(Sankei) 
 
8) Japan-South Korea future-oriented joint research project will 
start this month  (Tokyo Shimbun) 
 
Political scene: 
9) Clashes in the Lower House Budget Committee between ruling and 
opposition camps over cash-handout scheme, jobs  (Nikkei) 
10) Prime Minister Aso admits it will be difficult to disburse the 
proposed cash handouts to the public this fiscal year  (Tokyo 
Shimbun) 
11) Prime Minister Aso announces scrapping in principle the system 
of watari or retired bureaucrats hopping from one organization to 
another, collecting pensions  (Nikkei) 
12) LDP administrative reform task force regrets Aso's decision on 
watari that leaves a loophole in the system bureaucrats could take 
advantage of  (Mainichi) 
13) Rebel lawmaker Yoshimi Watanabe, former administrative reform 
minister turned sour on Aso, will leave the LDP most likely on Jan. 
13  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Personal data of all students of Kanagawa prefectural high schools 
leaks into Internet via file-sharing software 
 
Mainichi: 
Agriculture Ministry plans project to send workers from urban to 
rural areas 
 
Yomiuri: 
Rockets from Lebanon strike Israel 
 
Nikkei: 
Akio Toyoda to become new Toyota Motor president 
 
Sankei: 
Spring offensive to focus on work-sharing 
 
Tokyo Shimbun: 
Implementing cash benefit program within current fiscal year 
difficult: Aso 
 
TOKYO 00000053  002 OF 010 
 
 
 
Akahata: 
Canon implements massive layoffs despite receiving 5.7 billion yen 
in subsidies 
 
2) EDITORIALS 
 
Asahi: 
(1) Expansion of firing of non-permanent workers: Time to rebuild 
employment system 
 
Mainichi: 
(1) Diet debate: Deepening contradictions of flat-sum cash-payout 
plan 
(2) Suspension of gas supply: Russia should refrain from taking 
strong-armed measures 
 
Yomiuri: 
(1) DPJ should present alternative budget plan 
(2) Russia's suspension of gas exports exposes vulnerability of 
Europe 
 
Nikkei: 
(1) Urge early settlement for gas strife shaking Europe 
(2) Objection to communication minister's order to hold on selling 
Japan Post's accommodation facilities to ORIX 
 
Sankei: 
(1) Doctor Akahane freed: Government urged to strengthen safety of 
private citizens 
(2) Russia's suspension of gas supply to Europe: Russia must fulfill 
responsibility as a supplier 
 
Tokyo Shimbun: 
(1) Cash-benefit program: Prime Minister Aso's answers utterly 
incoherent 
(2) Don't destroy Japanese manufacturers 
 
Akahata: 
(1) The year to revitalize agriculture 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 8 
 
NIKKEI (Page 2) (Full) 
January 9, 2009 
 
06:58 
Met with Deputy Chief Cabinet Secretary Matsumoto at the Kantei. 
 
09:00 
Lower House Budget Committee meeting. 
 
12:05 
Arrived at the Kantei. 
 
13:00 
Lower House Budget Committee meeting. 
 
18:00 
Met with Vice Foreign Minister Yabunaka at the Kantei. 
 
TOKYO 00000053  003 OF 010 
 
 
 
19:09 
Met with Matsumoto at a ban in Roppongi. 
 
21:35 
Arrived at the private residence in Kamiyama-cho. 
 
4) Nye tapped ambassador to Japan; Attachment of importance to Japan 
shown by personnel appointments; Establishment of North Korea post 
also under study 
 
NIKKEI (Page 3) (Almost full) 
January 9, 2009 
 
Kaku Oishi, Washington 
 
The incoming Barack Obama's administration has informally picked a 
number of officials who will be responsible for foreign affairs. It 
has tapped Harvard University Professor Joseph Nye to become 
ambassador to Japan. In addition, it has informally decided to make 
former Deputy Assistant Secretary of Defense Kurt Campbell the 
successor to Assistant Secretary of State (for East Asian and 
Pacific Affairs) Christopher Hill. What makes this lineup unique is 
that posts associated Japan will be filled by Japan hands. The 
administration has made clear the importance of Japan through such 
appointments so as not to worsen relations with Japan, which have 
somewhat strained due to the delisting of North Korea as a state 
sponsor of terrorism and over issues. 
 
The establishment of ambassadorial posts for disputed areas is also 
being studied. Former Middle East envoy Dennis Ross is being 
mentioned as possible ambassador for the Middle East and former UN 
Ambassador Richard Holbrooke as special envoy for India and 
Pakistan. 
 
It is unprecedented that so many major members of the foreign policy 
team have been determined before an administration is launched. The 
steps reflect the administration's wishes not only to set forth 
economic policies to overcome the financial crisis but also to 
swiftly establish an Obama diplomacy that will flesh out his 
international cooperation policy line. 
 
Both Harvard University Prof. Nye and Campbell, who is likely to 
become an assistant secretary of state, are Japan experts. They 
played major roles in the Nye Initiative that redefined the 
Japan-U.S. alliance during the Clinton administration. 
 
Having long been associated with Senator Hillary Clinton, who is 
expected to become the new Secretary of State, the two experts are 
likely to form a good team with her. 
 
Jeffrey Bader, a China expert, has also been informally nominated as 
Senior Asia Director at the National Security Council (NSC). Some in 
Japan have begun expressing concern over possible "Japan passing." 
The appointment of Campbell seems to be aimed at sweeping away such 
concern. 
 
Many times, the post of ambassador to Japan has been filled by 
congressional heavyweights, such as former Vice President Walter 
Mondale, former Senate majority leaders Mike Mansfield and Howard 
Baker, and former House Speaker Thomas Foley. 
 
 
TOKYO 00000053  004 OF 010 
 
 
In the last elections, the Democratic Party won both the Senate and 
House owning to the Obama boom. It has already been decided that 
Senator Daniel Inouye of Japanese origin would head the 
Appropriations Committee. The absence of persons desiring to take on 
the ambassadorial post is reportedly giving a boost to the planned 
appointment of the Japan expert. 
 
In the event Nye declines the offer, it is rumored that the post 
would go to someone like former Secretary of Transportation Norman 
Mineta, a Japanese-American who held cabinet posts both under the 
Clinton and Bush administrations. 
 
Consideration has been given to the criticism in Japan that 
Assistant Secretary of State Hill has slighted the abduction issue 
as a result of devoting himself to talks with North Korea. Campbell 
is expected to pay attention to overall East Asian affairs, 
including China and Japan. Whether he will succeed Hill as chief 
negotiator to the six-party talks is undecided. 
 
As such, a post responsible for North Korean affairs, including 
talks with that country, will be established. The administration is 
considering giving the post to Wendy Sherman, a Clinton-era special 
advisor to the president, or to Hill. 
 
Ambassador Schieffer, who has already announced his resignation, is 
scheduled to return to the United States before the Jan. 20 
presidential inauguration. 
 
5) Concern that war on terror in Afghanistan has bogged down 
 
MAINICHI (Page 3) (Excerpts) 
January 9, 2009 
 
President-elect Obama, who will be inaugurated on January 20, places 
the war on terror in Afghanistan as his major challenge on the 
diplomatic and security front. The Department of Defense last month 
announced a policy of doubling the number of U.S. military personnel 
stationed in that nation, boosting the number by another 30,000 
troops. Obama, whose stresses dialogue even with enemies in his 
foreign policy, is expected to pursue Afghan policy with a 
carrot-and-stick approach. However, he is bound to be forced in 
managing the war on terror in Afghanistan to exercise caution so 
that it will not bog down. Whether he will succeed in his approach 
will likely have a major impact on the international situation. 
 
Japan's contribution mainly through ODA; Dispatch of SDF personnel 
impossible at present; Government having difficulty deciding what 
approach to take 
 
Following the Bush Administration's sounding out the Japanese 
government on what new contribution it might make, Tokyo dispatched 
a fact-finding mission to Afghanistan. However, the government later 
decided that it would be difficult to dispatch Self-Defense Forces 
personnel due to the deteriorating security situation. Once Barack 
Obama, who characterizes Afghanistan as the main battlefield for the 
war on terror, takes office as president, it is certain that Japan 
will be asked to make a new contribution to assist Afghanistan. The 
government is having difficulty deciding what approach it should 
make. 
 
For this reason, the government intends to obtain understanding of 
the U.S. by proactively making contributions in the security and 
 
TOKYO 00000053  005 OF 010 
 
 
civilian sectors with  a focus on official development assistance 
(ODA). 
 
It has already made contact with persons involved in the new Obama 
administration. It is now making efforts to obtain their 
understanding, by underscoring Japan's achievements in extending 
assistance for the rebuilding of that nation, providing funds worth 
approximately 160 billion yen from September 2001 through September 
¶2008. 
 
6) Government to disburse 400 million yen as expenses to repair ISAF 
copters 
 
YOMIURI (Page 2) (Full) 
January 9, 2009 
 
The government has decided to disburse 3 million euro (about 400 
million yen) to a trust fund set up in the North Atlantic Treaty 
Organization (NATO) as expenses to repair transport helicopters of 
the International Security Assistance Force (ISAF). The U.S. 
government has asked Japan to dispatch Self Defense Force's 
large-size transport planes as a contribution to the war on terror 
in Afghanistan, but the government hopes to obtain understanding 
about the alternative assistance from the international community. 
 
The money from Japan will be used for overhauls to increase engine 
output, cope with dust, and to install telecommunication equipment 
and defensive shields to provide against possible attacks from the 
ground. According to the Foreign Ministry, the government will 
strictly check how the money will be used so that the funds will not 
be spent to support military operations and will be used only to 
repair helicopters. 
 
The trust fund was set up in NATO last April at the proposal of 
Britain and other countries to collect funds to overhaul helicopters 
of the countries participating in ISAF. In Afghanistan, there are 
many mountainous regions, and land routes are dangerous due to the 
worsening security situation. Given this, helicopters are much in 
demand to transport goods and to ensure security. But many of them 
are old types that cannot be used depending on weather conditions. 
 
7) Government sets policy principles for bill to crack down on 
piracy: No police authorities to MSDF; weapons-use standards to be 
eased 
 
SANKEI (Page 2) (Excerpts) 
January 9, 2009 
 
The government yesterday set the principles it will use in 
considering new legislation to deal punitively with acts of piracy 
in order to counter the harm to shipping being caused by pirates 
operating in the waters off Somalia and other places. A ruling 
parties' project team chaired by LDP lawmaker Gen Nakatani will hold 
its first meeting on Jan. 9 to start discussions, based on the set 
of policy principles. The policy principles are titled, "Basic 
Thinking on legislation to deal with acts of piracy, etc." The 
premises involved include not giving to the Maritime Self-Defense 
Force (MSDF) police enforcement authority to arrest and charge 
pirates and stationing Japan Coast Guard officers on board MSDF 
vessels.  The project team will consider the easing of weapons-use 
standards that would allow shots to be fired at the pirate's vessel 
in a situation where the pirates have boarded a private ship. 
 
TOKYO 00000053  006 OF 010 
 
 
 
Gist of policy principles under consideration for the new law to 
deal with piracy: 
 
Overview: 
--The government's comprehensive maritime policy headquarters will 
set the basic policy course for dealing with piracy, and the MSDF, 
JCG, etc., will deal with this problem. 
-- Based on the definition of piracy set by the United Nations Law 
of the Sea, pursuit of this crime will be enforced under Japanese 
law. 
 
Weapons-use standards: 
-- The Ministry of Defense has requested that since the (severely 
limited) use of weapons under article 7 of the rules for police 
enforcement are insufficient, the use of weapons should include 
firing shots to inflict harm when such conditions exist as pirates 
having boarded a commercial vessel. This should be considered with 
full caution. 
 
Anti-piracy operations: 
-- Under the new law, it seems appropriate to include a provision 
allowing the dispatch of the Maritime Self-Defense Force by a 
cabinet decision or the like. 
-- There is a request from the Defense Ministry to give prior 
authority to the unit commander to handle the situation, but this 
request faces many challenges. 
 
The authority of self-defense officials and JCG's burden-sharing 
role: 
-- Self-defense officials are not police officers. It is appropriate 
to have the JCG officers on board MSDF vessels to have the authority 
for police enforcement. 
-- Preparations should be worked to enforce authority, such as 
detaining the pirates, taking away their weapons, etc., and handing 
them over to be prosecuted for the crime of piracy. 
 
Other issues: 
-- Operations in the territorial waters of other countries should be 
studied carefully, based on the UN resolution. 
-- In tandem with preparing the law, it is important for the central 
government to fully provide information to the private sector. 
 
8) Japan-ROK future-oriented joint research project to be launched 
this month 
 
TOKYO SHIMBUN (Page 1) (Slightly abridged) 
January 9, 2009 
 
Eiji Chukuza, Seoul 
 
A Japan-ROK future-oriented joint research project will be launched 
with a preparatory meeting this month, according to several Japanese 
and South Korean government sources. The project is designed for 
their experts to jointly study how to deal with international 
issues. Prime Minister Taro Aso will visit South Korea on Jan. 11 to 
meet with President Lee Myung-bak. During the meeting, the two 
leaders are expected to agree on the project. 
 
Then Prime Minister Yasuo Fukuda and President Lee agreed in their 
meeting last April to start the joint research project, but the 
project had been up in the air since South Korea fiercely reacted to 
 
TOKYO 00000053  007 OF 010 
 
 
the Japanese government's designation of the Takeshima/Dokdo islets 
as Japan's territory in a teaching manual for middle schools. The 
start of the project marks the start of stable bilateral exchanges 
in a new age for Japan-ROK relations. 
 
In the project, researchers of Japan and South Korea discuss a 
future vision for Japan-ROK relations. Keio University Professor 
Masao Okonogi will chair the Japanese group, while Seoul University 
Professor Ha Yong-son will be the chair of the Korean side. 
 
9) Lower House Budget Committee meeting: Deepening gap over cash 
benefits with DPJ calling for scrapping the scheme, and prime 
minister insisting they are an economic stimulus measure; Ruling, 
opposition camps at odds over jobs, as well 
 
NIKKEI (Page 2) (Excerpts) 
January 9, 2009 
 
Full-fledged debate on the economy and employment kicked off at a 
Lower House Budget Committee meeting on January 8. The Democratic 
Party of Japan criticized the government for its delay in taking 
measures to address the worsening jobs situation and denounced the 
flat-sum cash handout program. Prime Minister Aso reiterated the 
effectiveness of handing out flat-sum cash benefits as a measure to 
stimulate the economy. He also hinted at a possibility of further 
revising the regulation on the dispatch of temporary workers. 
However, the deep gap between the two sides could be seen in the 
acrimonious exchanges of criticism, all aimed at the next Lower 
House election. 
 
The DPJ first made the fixed-sum cash benefit program costing 2 
trillion yen a target for criticism. In view of erratic struggles by 
the government and the ruling parties over the program, DPJ 
President Naoto Kan pressed the prime minister, saying, "Why don't 
you remove the 2 trillion yen from the fiscal 2008 second 
supplementary budget draft and use that fund to create jobs, secure 
nursing-care personnel and make school buildings 
earthquake-resistant?" 
 
However, the prime minister turned down Kan's demand for the 
retraction of the cash benefit program, saying, "It is an effective 
measure to trigger sustainable growth." When asked whether he will 
receive such benefits, Aso simply said, "The supplementary budget 
bill has yet to secure Diet approval. I will make up my mind when it 
is enacted." Concerning high income earners becoming beneficiaries, 
the prime minister stressed that their receiving benefits will lead 
to expanded consumption. He said, "It is correct to have high income 
earners to spend the benefits handsomely." 
 
New Komeito Secretary General Kazuo Kitagawa, who spearheaded the 
effort to adopt the program, during a question session by the ruling 
parties stood behind the prime minister, saying, "The government 
wants to shore up the economy, by generating personal consumption, a 
main pillar of domestic demand." 
 
The prime minister, however, had to touch on a possible delay in the 
actual handout of the benefits due to slow preparations. He said, "I 
would like to deliver the benefits before the end of the fiscal 
year. However, it is questionable whether all municipalities can do 
so without fail." 
 
Another point at issue was employment. Kan questioned the prime 
 
TOKYO 00000053  008 OF 010 
 
 
minister: "An overwhelming proportion of those whose employment 
contracts were terminated are from the manufacturing sector. They 
lost jobs without a safety net. Was it a right decision to approve 
the dispatch of temporary workers to the manufacturing sector?" 
 
Following the sharp decline in the employment situation mainly among 
nonpermanent workers, the prime minister hinted at looking into 
revising the regulation on the dispatch of nonpermanent workers to 
the manufacturing sector in the future. 
 
A bill amending the Worker Dispatch Law, which, in principle, bans 
the dispatch of day workers, was submitted to the previous 
extraordinary Diet session and has been carried over to the next 
session. It is a custom for the government not to refer to a further 
amendment before the bill is enacted. Though Aso steered clear of 
mentioning a specific measure, he ventured to make that comment as 
his personal viewpoint. 
 
10) Aso: Cash handouts within this fiscal year difficult 
 
TOKYO SHIMBUN (Top Play) (Slightly abridged) 
January 9, 2009 
 
Prime Minister Taro Aso indicated yesterday that it would be 
difficult to implement this fiscal year the cash handout plan that 
is included in a second supplementary budget for fiscal 2008. Aso 
said during a question-and-answer session of the House of 
Representatives Budget Committee: "Although I hope cash benefits 
will be handed out within this fiscal year, it is questionable 
whether all local governments will be able to distribute the cash to 
all qualified recipients." 
 
Asked about whether high-income earners should receive the benefits, 
Aso replied: "That will be left to the judgment of the individual. I 
expect those who receive the cash to freely spend money." To a 
question about whether he would accept the cash, he just answered: 
"I will make a decision in the future." 
 
Regarding the opposition camp's request for regulations on the 
dispatch of workers to manufacturers, Aso stated: "The form of 
regular employment is desirable for the manufacturing industry. 
There are various arguments, so it is necessary to discuss the 
issue." 
 
But he added: "There are 460,000 temporary workers in the 
manufacturing industry. An immediate introduction of regulations 
under this situation will inevitably have a great influence on 
them." He took a cautious view about a rapid response. 
 
When asked about the practice of bureaucrats who moved to a 
quasi-government or private firm after retirement and then left the 
company with a retirement allowance for another lucrative job in 
different organization, Aso said the government will not allow 
government agencies to help retired officials to find jobs, 
remarking: "A decision has been made to ban the practice in 
principle." On the proposed removal of a government ordinance that 
"allows such a practice if absolutely necessary," he expressed a 
cautious view. 
 
11) Prime minister announces ban in principle retired senior 
bureaucrats switching from one organization to another 
 
 
TOKYO 00000053  009 OF 010 
 
 
NIKKEI (Page 2) (Full) 
January 9, 2009 
 
Referring to retired bureaucrats switching from one organization to 
another and gaining large amounts of retirement benefits, Prime 
Minister Taro Aso at a Lower House Budget Committee meeting on 
January 8 noted that the government intends to abolish, in 
principle, a regulation allowing such a practice. He stressed that 
the government would adopt a strict stance when approving the 
outplacement of retired bureaucrats by their ministries or agencies. 
He made this reply in response to a question asked by Democratic 
Party of Japan member Yoshito Sengoku. 
 
Sengoku made an issue of the government ordinance allowing 
job-placement service over and over, as adopted at a cabinet meeting 
late last year, Sengoku sought the scrapping of that ordinance. The 
prime minister turned down his request, saying, "I have no intention 
of abolishing it immediately." He asked for cooperation from the DPJ 
over the Diet-approval-requiring appointments of members of the 
Reemployment, Etc., Monitoring Committee tasked with monitoring 
golden parachute practices by retired bureaucrats. 
 
12) LDP administrative reform panel to convey regret for approval of 
watari to government 
 
MAINICHI (Page 5) (Full) 
January 9, 2009 
 
In a meeting yesterday of the ruling Liberal Democratic Party's 
(LDP) Administrative Reform Promotion Headquarters, views were 
presented in succession that the government ordinance that allows 
the prime minister to approve the practice of ministries and 
agencies arranging watari for retired bureaucrats -- the practice of 
switching from one cushy job to another at government-affiliated 
agencies and private-sector companies over which the former 
officials had oversight responsibilities -- should be scrapped. The 
panel, chaired by Koki Chuma, former state minister in charge of 
administrative reform, decided to convey its regret to government. 
 
In the meeting, former Administrative Reform Minister Yoshimi 
Watanabe asserted: "The ordinance that allows watari is 
unacceptable." Senior Deputy Secretary General Nobuteru Ishihara 
sided with him, saying: "It is regrettable that such an important 
ordinance was adopted without going through the party's procedures. 
I will convey our regret to the government." 
 
13) Watanabe likely to leave LDP on Jan. 13 
 
SANKEI (Page 5) (Full) 
January 9, 2009 
 
Yoshimi Watanabe, former state minister in charge of administrative 
reform, told reporters yesterday: "It is difficult for Prime 
Minister Taro Aso to get rid of the amakudari (golden parachute) 
practice. I will consider today the timing for my resignation from 
the party." He may be leaving the Liberal Democratic Party (LDP) as 
early as Jan. 13. Watanabe will submit to the prime minister demands 
for: 1) the complete abolition of the practice of ministries or 
agencies arranging watari for retired bureaucrats -- the practice of 
switching from one cushy position to another in the private sector; 
and 2) the cancellation of the government ordinance that allows the 
prime minister to approve the practice of ministries and agencies 
 
TOKYO 00000053  010 OF 010 
 
 
arranging amakudari for retiring senior bureaucrats. 
 
When asked by reporters about how he would respond to the fiscal 
2008 second supplementary budget when the budget bill would be put 
to a vote in a plenary session of the House of Representatives 
slated for Jan. 13, Watanabe just said: "I haven't decided yet." 
 
Yesterday Watanabe suddenly sat in a House of Representatives Budget 
Committee meeting. Referring to Aso's reply to a question about 
reform of the national civil servant system, Watanabe told the press 
corps: 
 
"I now realize that it will be difficult for Mr. Aso to get rid of 
amakudari. I have made efforts on behalf of the LDP but I wonder 
what the prime minister is doing. His replies are the same as those 
by bureaucrats. He is giving a helping hand to bureaucratic tyranny. 
I have no choice but to raise my hands in surrender." 
 
Watanabe previously presented to Aso a list of seven requests, 
including one calling for scrapping the system allowing the prime 
minister to approve the practice of ministries and agencies 
arranging reemployment for retiring bureaucrats. He has said: "If my 
requests are not considered swiftly and sincerely, I will quit the 
party." 
 
SCHIEFFER