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UNCLAS SECTION 01 OF 11 TOKYO 000081 
 
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 1/15/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Ambassador Schieffer departs Tokyo: 
3) Ambassador Schieffer in last news conference before leaving post 
exhorts Japan to play more of a role in the international community 
(Sankei) 
4) Schieffer urges Japan to review interpretation of Constitution to 
allow use of right of collective self-defense  (Mainichi) 
5) Schieffer regrets abduction issue was not resolved during his 
tenure  (Asahi) 
 
6) Prime Minister Aso meets with Putin associate, discusses northern 
territories issue  (Tokyo Shimbun) 
 
Anti-piracy operation: 
7) Maritime Self-Defense (MSDF) likely to start protecting Japanese 
ships and cargo against pirates in Somalia's waters in April 
(Nikkei) 
8) MSDF to apply current law to the limit in dealing with pirates in 
waters off Somalia, but a grey zone remains  (Nikkei) 
 
Tax uproar: 
9) Cabinet Office simulation has primary balance in the black by 
fiscal 2018, premised on hike in consumption tax starting in fiscal 
2011  (Tokyo Shimbun) 
10) LDP split over increasing consumption tax, those against fearing 
such would lead to minus economic growth and be unacceptable to the 
public  (Yomiuri) 
 
Diet agenda: 
11) War of nerves in the Diet between ruling and opposition camps as 
supplementary and main budgets are deliberated in parallel sessions 
(Tokyo Shimbun) 
12) Government plans to submit 62 bills to the current Diet session, 
with 20 of them related to the state budget  (Mainichi) 
13) Prime Minister Aso aims to contain any party rebels, making the 
firing of Parliamentary Secretary Matsunami for vote abstention an 
example  (Mainichi) 
14) Former Administrative Reform Minister Yoshimi Watanabe leaves 
the LDP as an isolated figure, unable at this point to rally forces 
behind him  (Asahi) 
15) Democratic Party of Japan's Yukio Hatoyama demands the 
resignation of Deputy Chief Cabinet Secretary Konoike for reported 
sex scandal  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri and Tokyo Shimbun: 
Four former Nishimatsu executives, including vice president, 
arrested over smuggled cash in violation of Foreign Exchange and 
Foreign Trade Control Law 
 
Nikkei: 
U.S. December retail sales decline 2.7 PERCENT  from previous month 
 
Sankei: 
Chuo University professor fatally stabbed on campus 
 
TOKYO 00000081  002 OF 011 
 
 
 
Akahata: 
Labor unions demand large firms to stop firing temp workers, raise 
wages, and fulfill other responsibilities 
 
2) EDITORIALS 
 
Asahi: 
(1) New U.S. diplomacy: Shift from power to smart power 
(2) A gender-equal society 
 
Mainichi: 
(1) Former Nishimatsu vice president arrested: General contractors 
must get rid of their slush fund nature 
(2) Bankruptcies on rise: Greater assistance necessary for raising 
operating capital 
 
Yomiuri: 
(1) Japan Inc. must wean self from North American market 
(2) Nishimatsu's slush funds not a necessary evil 
 
Nikkei: 
(1) World and Japan waiting for President Obama 
 
Sankei: 
(1) Hillary Clinton diplomacy to attach importance to Japan 
(2) Death penalty criteria require thorough discussion under new lay 
judge system 
 
Tokyo Shimbun: 
(1) Nishimatsu scandal: Get rid of off-the-book funds 
(2) Natural gas dispute: Russia must not lose its trust 
 
Akahata: 
(1) Forced vote on second supplementary budget unacceptable 
 
3) Schieffer in last official press conference: Japan should assume 
a greater role 
 
SANKEI (Page 6) (Full) 
January 15, 2009 
 
Outgoing U.S. Ambassador to Japan Thomas Schieffer said yesterday 
that Japan should review its interpretation of the Constitution to 
allow the use of the right to collective self-defense. He also said 
that the role Japan has assumed in the Japan-U.S alliance is 
insufficient. In his last official press conference as ambassador at 
the Japan Press Club, Schieffer, in referring to international 
contributions, quoted U.S. President-elect Barack Obama's "Yes, we 
can" slogan and said, "Japan's response to the new president must 
not be, 'No, we can't'." 
 
Wrapping up his four-term term, Schieffer emphasized: "The U.S. 
wants an equal alliance with Japan. I mean that the two countries 
should assume an equal responsibility and burden. This has never 
happened before. Japan should assume a greater role." Specifically, 
he expressed concern that if Japan says that it cannot intercept a 
ballistic missile targeting the U.S., "the American people would not 
understand the value of the alliance." 
 
To strengthen the Japan-U.S. alliance to ensure smooth cooperation 
in missile defense (MD) and other matters, "I am not one who 
 
TOKYO 00000081  003 OF 011 
 
 
believes that Article 9 must be revised, but I think (the 
interpretation of) collective self-defense should be discussed," 
Schieffer said. In reference to international contributions, the 
ambassador urged Japan to be positively involved in the 
international efforts to help reconstruct Afghanistan and fight 
pirates, remarking that Japan, while its politics is at a 
standstill, may be left behind in the international community." 
 
Schieffer said: "I was able to contribute to deepening mutual 
understanding between Japan and the U.S.," but he added: "I feel 
regret that I was unable to help resolve the issue of Japanese 
nationals abducted by North Korea. I promise to continue rendering 
support in the future." 
 
Schieffer said that incoming President Obama, who was born in Hawaii 
and spent his childhood in Indonesia, will attach importance to Asia 
diplomacy. Although his successor has yet to be officially selected, 
he stressed that that person would not underestimate the 
significance of the Japan-U.S. alliance. He will leave Japan today. 
 
 
4) Schieffer ends term in Japan with call to review constitutional 
interpretation 
 
MAINICHI (Page 2) (Full) 
January 15, 2009 
 
U.S. Ambassador to Japan Schieffer, meeting the press yesterday in 
Tokyo before leaving his post in Japan, said Japan should reexamine 
its conventional interpretation of the Constitution with regard to 
the ban on exercising the right to collective self-defense. The 
Japanese government's constitutional interpretation is that Japan 
has the right to collective self-defense but is not allowed to 
exercise it. Referring to this constitutional constraint, Schieffer 
indicated that it is desirable to review the Japanese government's 
constitutional interpretation for expanded cooperation between Japan 
and the United States in the security area. 
 
Schieffer also urged Japan to do more in Afghanistan, saying Japan 
should be putting "boots on the ground" in Afghanistan by sending 
civilian personnel like doctors, engineers, and teachers. 
 
Meanwhile, citing U.S. President-elect Obama's motto, "Yes, we can," 
Schieffer said Japan's first response to the new U.S. administration 
must not be, "No, we can't." 
 
Schieffer arrived at his post in April 2005 and will return home 
today. 
 
5) Schieffer expresses regret that abduction issue has not been 
settled 
 
ASAHI (Page 4) (Full) 
January 15, 2009 
 
U.S. Ambassador to Japan J. Thomas Schieffer addressed the Japan 
National Press Club yesterday, his last press meeting before leaving 
his post. Expressing regret about the fact that abductions by North 
Korea have not been settled, the Ambassador said: "I will never 
forget walking with Mr. and Mrs. Yokota along the same path Megumi 
traveled on that fateful day when she was snatched from her family." 
He also indicated that he would continue to cooperate on resolving 
 
TOKYO 00000081  004 OF 011 
 
 
the abduction issue. 
 
Reflecting on his four-year tenure as ambassador to Japan, Schieffer 
said: "It has been a good run and I will miss it." Touching on the 
current situation in Japan, he said over Afghanistan and other 
issues, "There has been a lot of negative discussion about the role 
Japan can play in the world." With President-elect Barack Obama's 
slogan "Yes, we can!" in mind, the Ambassador noted: "Japan's first 
response to this new administration must not be, "No, we can't." He 
then expressed hopes for the dispatch of personnel other than 
Self-Defense Force troops, saying that sending doctors, engineers, 
and teachers to places like Afghanistan and Iraq could constitute 
putting boots on the ground. Touching on the future of the 
Japan-U.S. alliance, the Ambassador reiterated his call that Japan 
exercise its right to collective self-defense, saying, "The United 
States would welcome an alliance on equal footing (regarding 
responsibilities and shares)." 
 
6) Aso expresses eagerness for talk on territorial issue with Putin, 
in meeting with his aide 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 15, 2009 
 
Prime Minister Aso met Sergei Mironov, speaker of the Russian 
Federation Council, at the Prime Minister's Office last night and 
expressed his desire to hold substantive talks on the Northern 
Territorial issue with Prime Minister Putin if his planned visit is 
realized. Aso said: "It will be unfortunate if Japan and Russia, 
because of this issue, remain unable to move forward to work 
together in the Asia-Pacific region." 
 
Mironov stressed the need for the two countries to take a realistic 
response, saying: "I support President Medvedev's view that Japan 
and Russia should not leave the territorial issue to later 
generations and should depart from their respective extreme 
arguments." Mironov is said to be a close aide to Putin. 
 
7) MSDF escort set to start in April 
 
NIKKEI (Page 1) (Abridged) 
January 15, 2009 
 
The government is coordinating to finalize an action plan under the 
current law for antipiracy measures in waters off the eastern 
African coast of Somalia. The action plan, revealed yesterday, says 
the government will order the Maritime Self-Defense Force to conduct 
maritime security operations under the Self-Defense Forces Law in 
order to defend merchant and other ships. Based on the order, the 
MSDF will send destroyers. Meanwhile, the Japan Coast Guard will 
have its officials onboard the MSDF destroyers so those JCG sheriffs 
can arrest pirates and turn them over to neighboring countries. 
 
The ruling coalition of the Liberal Democratic Party and the New 
Komeito will hold a meeting of its project team today, where the 
government will come up with a specific plan. Prime Minister Taro 
Aso will shortly make a final decision, and Defense Minister 
Yasukazu Hamada will direct the MSDF possibly within the month to 
get readied. The government plans to have the MSDF start escort 
activities in April. The MSDF will protect Japanese ships, 
Japanese-chartered ships, and foreign ships carrying Japanese 
nationals or Japanese cargoes. MSDF destroyers will escort merchant 
 
TOKYO 00000081  005 OF 011 
 
 
ships at their request, but ships sailing under the flag of Japan 
will be the first on the list of vessels to be protected. 
 
The MSDF will be allowed to use weapons in waters off Somalia under 
a law that governs police officers in the line of duty, and its 
personnel's use of weapons against pirates will be limited to 
legitimate self-defense or emergency evacuation only. The MSDF is 
currently allowed to fire on target ships only within Japan's 
territorial waters in order to prevent criminals from fleeing. 
However, this counteraction will not be incorporated in the action 
plan for antipiracy operations off Somalia. 
 
Antipiracy measures under current law 
 
? The MSDF will escort Japanese ships first and will also protect 
foreign ships carrying Japanese nationals or Japanese cargoes. 
? JCG sheriffs-who are authorized to arrest, interrogate, and 
execute other judicial procedures-will be onboard MSDF destroyers. 
? The use of weapons will be limited to legitimate self-defense or 
emergency evacuation under the Police Officers Duty Performance 
Law. 
? The defense minister will direct the MSDF within the month to 
prepare for maritime security operations. 
 
8) Commentary: Gov't to optimize current law for antipiracy 
measures 
 
NIKKEI (Page 2) (Abridged) 
January 15, 2009 
 
The government's action plan, which was released yesterday for 
antipiracy measures off Somalia, is aimed at optimizing the 
Self-Defense Forces Law and taking full-fledged actions without 
having a new law. However, there is still a 'gray zone' when it 
comes to the government's weapons use guidelines. As it stands, the 
government will likely have to work it out in detail, given the 
actual moves of pirate ships. 
 
Chief Cabinet Secretary Takeo Kawamura, Foreign Minister Hirofumi 
Nakasone, and Defense Minister Yasukazu Hamada met yesterday at the 
prime minister's office to discuss the matter and coordinated 
antipiracy and other relevant measures. 
 
The focus is on the government's weapons use guidelines or the 
so-called rules of engagement (ROE). However, many take it that the 
use of weapons will have to be entrusted to the commanding officer's 
discretion. Under the current law, Self-Defense Forces personnel are 
allowed to use weapons for legitimate self-defense or emergency 
evacuation only. However, there are also such challenges as how to 
deal with pirates armed with weapons like rockets. "We want the 
government to take appropriate action so that the commanding officer 
and his people over there will not get troubled or will not have to 
hesitate over what to do there." This proposition came from MSDF 
Chief of Staff Keiji Akahoshi. 
 
Meanwhile, the MSDF is not allowed to protect foreign ships carrying 
no Japanese nationals or cargoes. One senior official of the Foreign 
Ministry is concerned that Japan may come under fire in the 
international community if the MSDF does not help a foreign ship 
being attacked. Defense Minister Hamada also raised a question from 
the perspective of international cooperation. 
 
 
TOKYO 00000081  006 OF 011 
 
 
9) Achieving surplus in primary balance likely to be delayed until 
fiscal 2018, according to Cabinet Office projection, premised on 
sales tax hike in fiscal 2011 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 15, 2009 
 
The Cabinet Office on January 14 presented at a plenary session of 
the Liberal Democratic Party (LDP) Policy Research Council a 
projection that reaching a surplus in the primary balance, the goal 
in recapitalizing the nation's fiscal base, will not be achieved 
before fiscal 2018, a significant delay from the official target 
year of fiscal 2011. However, the Policy Research Council did not 
approve the report, resenting that the estimate was made based only 
on a scenario of the sales tax being raised starting in fiscal 
¶2011. 
 
According to the Cabinet Office's main scenario, the global economy 
will smoothly pick up by 2010. The real growth rate will hover 
around 1.5 PERCENT  on average. The consumption tax will be raised 1 
PERCENT  a year starting in fiscal 2011 to 10 PERCENT  in fiscal 
¶2015. Even so, despite the goal of reaching a surplus in the 
original target year of 2011, the fiscal situation will still show a 
deficit of 15.2 trillion yen with a surplus only achieved by fiscal 
¶2018. 
 
In a scenario in which the global economy recovers quickly, the 
Cabinet Office estimated that the fiscal situation will move into 
the black in fiscal 2015. But in the event the economic turmoil and 
recession becomes protracted, the primary balance will not move into 
the black before fiscal 2018. 
 
The Cabinet Office made the estimates for both cases, based on 
automatically hiking the sales tax 1 PERCENT  a year starting in 
fiscal 2011. The mid-term program adopted at the end of last year is 
premised on a rebound in the economy. The Policy Research Council 
strongly opposed the precondition that the sales tax would be raised 
even if the economy remains dull. 
 
As such, the Cabinet Office on the afternoon of the 15th decided to 
make an estimate in the case of not hiking the consumption tax. The 
estimate is reference data to be attached to the Mid- to Long-Term 
Economic and Fiscal Policy and Vision for the Next 10 Years 
(tentative name), which the government will aim at adopting at a 
cabinet meeting before the end of this month. However, since the 
report will become the government's official view, it is imperative 
for it to secure approval from the ruling camp. 
 
10) Opposition to consumption tax hike growing in LDP with Hidenao 
Nakagawa saying, "Such would bring about negative growth," Yasuhisa 
Shiozaki stressing, "The proposal will never secure the public's 
understanding" 
 
YOMIURI (Page 4) (Excerpts) 
January 15, 2009 
 
Although Prime Minister Aso intends to increase the consumption tax 
starting in fiscal 2011, opposition to such a plan is growing in the 
Liberal Democratic Party (LDP). Behind that new development is 
concern that the tax-hike issue could get wrapped up in Lower House 
election campaign. The prime minister has not changed his stand on 
mentioning the hike in a clause attached to bills related to 
 
TOKYO 00000081  007 OF 011 
 
 
amendment of the tax code to be submitted to the Diet session on 
January 23. However, whether he can secure approval from his own 
party remains unclear. 
 
The Cabinet Office at a plenary meeting of the Liberal Democratic 
Party (LDP) Policy Research Council presented fiscal projections 
premised on an annual 1 PERCENT  hike in the sales tax starting in 
fiscal 2011 until it reaches 5 PERCENT . Former Secretary General 
Hidenao Nakagawa has criticized the government: "No countries raise 
taxes as an economic stimulus measure. Increasing the consumption 
tax will cause negative growth." Former Chief Cabinet Secretary 
Yasuhisa Shiozaki also pointed out: "A hike in the consumption tax 
must be tackled, linked with reform of the public servant system and 
administrative reform. Otherwise, people will not understand." Many 
other lawmakers participating in the meeting opposed a hike in the 
consumption tax. 
 
Later, Nakagawa at a party of Lower House members held in Tokyo took 
this view, "A consumption tax hike will become a political and 
policy issue." 
 
The government late last year adopted a mid-term program for 
reforming the tax code. The program incorporated a hike in the 
consumption tax starting in fiscal 2011, premised on recovery of the 
economy. The prime minister and State Minister for Economic and 
Fiscal Policy Yosano overcame objections by the New Komeito in 
making this decision. 
 
Nevertheless, opposition is arising from within the LDP, presumably 
because of concern about the next Lower House election. 
 
Shiozaki along with former State Minister for Administrative Reform 
have formed "The Group of Voluntary Lawmakers Seeking Immediate 
Realization of Policies," a parliamentarians' league critical of the 
prime minister. Shiozaki and members of the group have begun voicing 
vocal opposition to raising the consumption tax. Regarding that 
move, some lawmakers think the group is trying to raise opposition 
to a consumption tax hike as their new political banner. Nakagawa is 
also aiming at political realignment. He is keeping himself at arm's 
length with the prime minister. 
 
11) War of nerves expected between ruling, opposition parties over 
possible simultaneous deliberations on primary and second extra 
budget bills 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 15, 2009 
 
Sessions in the House of Representatives and the House of 
Councillors were stalled for a full day yesterday as the ruling and 
opposition camps clashed head-on over the passage of the second 
extra budget for fiscal 2008 in the Lower House. With an eye also on 
deliberations on the fiscal 2009 budget bill, both camps are 
expected to engage in a war of nerves. 
 
Upper House Diet Affairs Committee Chairman Seiji Suzuki of the 
Liberal Democratic Party (LDP) met his counterpart of the Democratic 
Party of Japan (DPJ), Susumu Yanase, in the Diet Building yesterday 
afternoon and requested that the DPJ respond to the ruling parties' 
call for early deliberations on the second supplementary budget 
bill. But Yanase rebutted: "The vote was forcibly taken in the Lower 
House without full deliberations." The DPJ intends not to respond to 
 
TOKYO 00000081  008 OF 011 
 
 
the call at least this week. 
 
In reaction, the ruling camp has indicated that if the chaotic 
situation continues for many days, it would hold a representatives 
interpellation session after Prime Minister Aso's policy speech in 
the Lower House and then start deliberations on the fiscal 2009 
budget bill on Jan. 19. The ruling side plans to unprecedentedly 
hold deliberations on the extra budget and the principle budget 
simultaneously. 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima emphasized in a 
speech in Tokyo yesterday: "It is almost certain" that the extra 
budget bill will be enacted into law with an override vote in the 
Lower House. He added: "The major matter of concern is what to do 
about the fiscal 2009 budget. We must be ready to work for 24 
hours." 
 
Oshima indicated that he would not mind even if they start a 
discussion on the fiscal 2009 budget bull at the Lower House Budget 
Committee at night after ending deliberations on the second extra 
budget in the Upper House Budget Committee by the evening. 
 
The opposition side naturally cannot respond to such an approach. 
DPJ Diet Affairs Committee Chairman Kenji Yamaoka claimed: "It 
should be proper to start deliberations on the main budget after 
ending deliberations on the second extra budget in the Upper House. 
If the Lower House does another thing when deliberations are 
underway in the Upper House, the two-chamber system will become 
meaningless." 
 
Even so, a senior Diet Affairs Committee member of the DPJ expressed 
concern that if the DPJ-controlled Upper House delays deliberations 
on the second extra budget forever, "that would give the ruling camp 
an excuse for simultaneous deliberations." The DPJ intends to grope 
for the timing for starting deliberations in the Upper House while 
watching moves regarding simultaneous deliberations. 
 
12) Government to submit 62 bills to current Diet session 
 
MAINICHI (Page 5) (Full) 
January 15, 2009 
 
The government presented to the ruling parties its plan to submit 62 
bills to the ongoing regular session of the Diet. Of the 62 bills, 
22 are those related to the budget for fiscal 2009. The 22 bills 
include one revising the Road Construction Revenues Special 
Exemption Law. Liberal Democratic Party (LDP) Diet Affairs Committee 
Chairman delivered a speech yesterday in Tokyo. In it, he indicated 
that the LDP would not hesitate to simultaneously carry out 
deliberations on the fiscal 2009 budget in the House of 
Representatives and on the second supplementary budget for fiscal 
2008 in the House of Councillors. 
 
Oshima categorically said: "The public is bristling at the 
difference in the speed between the economy and politics. We must 
deal with Diet affairs by resolving to work 24 hours a day if 
necessary." He revealed that following the submission of the budget 
for fiscal 2009 to the Diet, four government speeches, including a 
policy speech by Prime Minister Aso Taro, will be delivered on Jan. 
¶19. 
 
Oshima also clarified that the ruling coalition will initiate 
 
TOKYO 00000081  009 OF 011 
 
 
deliberations on a bill establishing a Consumer Agency in the Lower 
House if the opposition camp responds to early deliberations in the 
Upper House. 
 
13) Prime Minister Aso dismisses Matsunami to contain rebels 
 
MAINICHI (Page 5) (Excerpts) 
January 15, 2009 
 
Prime Minister Taro Aso yesterday dismissed Kenta Matsunami from his 
post as parliamentary secretary for the Cabinet Office, refusing to 
accept his resignation. Matsunami had walked out the plenary session 
on Tuesday of the House of Representatives before a Lower House vote 
on the second supplementary budget for fiscal 2008, which includes 
the cash-handout program. The aim of dismissing Matsunami is to 
tighten up the party by doling out strict punishment, since it is 
likely that bills related to the budget will have to be put to a 
second vote in the Lower House. Liberal Democratic Party (LDP) 
Secretary General Hiroyuki Hosoda also punished Matsunami by giving 
him a warning in order to bring the curtain down on the matter 
quickly. However, a defiant act by a parliamentary secretary 
attached to the Cabinet Office, an organization under the Prime 
Minister's Official Residence, is a setback for Aso since it gives 
the impression of disorder in the government and ruling camp over 
the cash-payout program. 
 
Aso told reporters yesterday: "It is extremely simple. Since he is a 
member of my cabinet, I want him to follow the decisions the 
government has made. So he deserves dismissal." 
 
Chief Cabinet Secretary Takeo Kawamura met in the evening of Jan. 13 
with Matsunami and accepted his resignation. After that, Kawamura, 
who is a member of the Ibuki faction to which Matsunami also 
belongs, asked Hosoda on the phone: "In the parliamentary 
secretary's resignation, he denied he had had any intention to make 
countermoves against the Aso administration. So I ask you for 
leniency." 
 
However, the situation was completely changed yesterday because Aso 
did not approve of his resignation and decided to dismiss him. Aso's 
aide underscored that it was necessary for the prime minister to 
take a strict position, saying: "If this kind of defiant act is 
allowed, everyone will act the same way" 
 
14) Watanabe has found himself adrift at sea in forming policy 
group 
 
ASAHI (Page 4) (Excerpts) 
January 15, 2009 
 
Yoshimi Watanabe, the former state minister for administrative 
reform who quit the ruling Liberal Democratic Party (LDP) over the 
government's second supplementary budget for fiscal 2008, is trying 
to form a policy group with the creation of a new party in mind, in 
cooperation with the heads of local governments. But at present 
there are few siding with him. Where Watanabe is going as he sets 
sail all alone cannot be seen. 
 
Appearing on a BS11 television program yesterday, Watanabe talked 
about what he calls a "people's movement" as follows: "For someone, 
I may be seen as Don Quixote. I have taken an indirect approach, Sun 
Tzu's Art of War." 
 
TOKYO 00000081  010 OF 011 
 
 
 
Watanabe's scenario for toppling the Aso cabinet hinges on proposing 
policies actively in cooperation with the heads of local governments 
and various experts. If he can secure supporters from within the 
LDP, a trend will be created for an early Lower House dissolution 
and that he will be able to take the lead in political realignment. 
 
 
Former Chief Cabinet Secretary Yasuhisa Shiozaki, who worked with 
Watanabe on reform of the civil servant system, sympathizes with 
him, saying: "I will continue to have the same feeling (toward Mr. 
Watanabe even after he left the party). I will act with him if 
necessary." Former Secretary General Tsutomu Takebe said in a 
meeting of his policy group New Breeze: "There is no change in our 
policy that we will continue to share our values with him and 
cooperate with him as we have in the past." 
 
Many junior and mid-level lawmakers have reacted coolly toward 
Watanabe's action. Lower House member Masahiko Shibayama said: "He 
might have found another way to realize his vision in the party." A 
junior lawmaker belonging to the Machimura faction made a critical 
comment: "He is just criticizing Aso. I don't know what he really 
wants to do." 
 
Meanwhile, Watanabe has failed to obtain cooperation from the heads 
of local governments. He showed the white feather yesterday, noting: 
"Incumbent heads of local municipalities are shackled by their 
assemblies. It is very difficult." 
 
Watanabe has been busy with calling on local leaders and experts to 
join him since before he left the LDP. On Jan. 11, he met for four 
hours with Osaka Gov. Toru Hashimoto. He asked him to join a 
"people's council (kokumin kaigi). But Hashimoto turned down his 
offer, saying: 
 
"I totally support your willingness to dismantle the bureaucracy 
(Kasumigaseki), your vision as a lawmaker and tactics. But I cannot 
join you immediately because of the relationship between the LDP and 
New Komeito." 
 
15) Hatoyama to demand Deputy Chief Cabinet Secretary Konoike's 
resignation due to report on his involvement with woman 
 
YOMIURI (Page 2) (Full) 
January 15, 2009 
 
Democratic Party of Japan Secretary General Yukio Hatoyama in the 
party's Next Cabinet meeting yesterday revealed that he plans to 
demand Deputy Chief Cabinet Secretary Yoshitada Konoike's 
resignation, saying that a scandal involving him has come to light. 
His charge is based on an article and pictures that will appear in 
the weekly magazine Shukan Shincho that will go on sale on Jan. 15 
reporting that Konoike spent (a night) with a married woman, his 
acquaintance, at his apartment at the Diet members' dormitory. 
 
The article says that Konoike and the woman entered Konoike's 
apartment separately after having a dinner in Tokyo on Jan. 6 and 
the woman stayed there until the following morning. The article also 
says that the woman in question used to go in and out of his 
apartment by using a card key and that she spent some nights there 
in December. 
 
 
TOKYO 00000081  011 OF 011 
 
 
Hatoyama said: "With this big scandal breaking out, he should not be 
allowed to get away with it. He should resign now." The DPJ plans to 
grill Konoike in the Diet. Meanwhile, Konoike, asked by a reporter 
in the Diet building yesterday about the possibility of the magazine 
report escalating to his resignation, said, "That won't happen." 
 
Prime Minister Taro Aso last night at his office told the press: "I 
don't know about it in detail. I don't think it's strange for 
someone to enter a lawmaker's apartment at the Diet members' 
dormitory." 
 
SCHIEFFER