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UNCLAS SECTION 01 OF 09 TOKYO 000292 
 
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 02/06/09 
 
INDEX: 
 
(1) DPJ's Ozawa gets started for an April general election 
(Mainichi) 
 
(2) Machimura becomes faction head; Mori distrusts Nakagawa 
(Mainichi) 
 
(3) Analyzing the crisis: Shift away from market fundamentalism 
(Mainichi) 
 
(4) Editorial: Obama must not allow chain reaction of protectionism 
triggered by U.S. (Nikkei) 
 
(5) Editorial: Trilateral unity should be solidified (Sankei) 
 
(6) Local residents voice anger at U.S. military against live-fire 
training (Okinawa Times) 
 
(7) Fierce race underway for top post of nuclear watchdog; Japan 
making every effort to get Amano elected as new IAEA director 
general (Asahi) 
 
ARTICLES: 
 
(1) DPJ's Ozawa gets started for an April general election 
 
MAINICHI (Page 5) (Full) 
February 6, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa recently 
stated that the next Lower House election would take place in April. 
He has now begun to make genuine efforts to prepare for the 
election, kicking off a stumping tour. Yesterday, he stressed his 
view in the form of falling in line with an argument in the ruling 
camp that the Lower House should be dissolved immediately after the 
passage of the fiscal 2009 budget bill. However, with the Diet being 
in the middle of a fierce battle between the ruling and opposition 
parties, there seems no way in sight for the enactment of the budget 
bill, which is a condition for Lower House dissolution. The dominant 
view in the DPJ is that Ozawa aims to boost morale, according to a 
mid-level lawmaker. 
 
When asked by reporters about his grounds for an April general 
election, Ozawa said yesterday: 
 
"Since there is a time-lag between the passage and implementation of 
the budget, if the election is held sometime during that period, 
there will be little negative impact on the livelihoods of the 
people." 
 
He added: "I believe that ordinary LDP and New Komeito members 
probably think so, but I don't know how Mr. Aso thinks." 
 
In a meeting on Jan. 31 of postmasters, Ozawa stated: "The Lower 
House will be dissolved in March and the general election will be 
called in April." He has reiterated similar remarks since then. He 
called yesterday without prior notice at the office of a DPJ 
candidate in Machida City, Tokyo. He also instructed the candidate 
to be ready for an April election. 
 
(2) Machimura becomes faction head; Mori distrusts Nakagawa 
 
TOKYO 00000292  002 OF 009 
 
 
 
MAINICHI (Page 5) (Full) 
February 6, 2009 
 
Internal conflict in the Machimura faction of the ruling Liberal 
Democratic Party (LDP), has now been settled with decisions being 
made in a meeting yesterday that former Chief Cabinet Secretary 
Nobutaka Machimura would be promoted to be faction chairman and that 
former LDP Secretary General Hidenao Nakagawa would be demoted in 
effect. However, in the meeting that lasted more then two hours, 
many junior and mid-level lawmakers took a cautious stance toward 
the leadership shift. As such, the gulf in the LDP's largest faction 
has further widened. A senior faction member with close ties to 
former Prime Minister Yoshiro Mori, the faction's supreme adviser 
who forced through the leadership change, said: "If he doesn't want 
to follow the faction's policy, he should leave." There are still 
sources for a breakup of the faction. 
 
"Criticism of the government by a person who has served as secretary 
general will cause trouble for the party," said Mori, criticizing 
Nakagawa in a strong tone at the meeting. Mori's strong distrust of 
Nakagawa was the biggest reason behind his sharp words. In the LDP 
presidential election last September, Nakagawa threw his support 
behind former Defense Minister Yuriko Koike. He has distanced 
himself from the Aso administration, while criticizing Prime 
Minister Taro Aso's policy, particularly the proposed consumption 
tax hike, ever since the administration was launched. Mori adamantly 
told Nakagawa, who favors political realignment: "I will never allow 
a subgroup of the faction to exist." 
 
However, Nakagawa only went so far as to say: "I have worked hard 
for the faction." Junior to mid-level lawmakers, including Upper 
House member Ichita Yamamoto, rebutted him, with one saying: "Chaos 
should not be created in the faction just before the Lower House 
election." Another said: "More time should be taken for discussion." 
There was a scene in which Mori scolded Nakagawa sharply, saying: 
"If you are unhappy with Mr. Machimura, you should directly tell 
him." 
 
Former Prime Minister Shinzo Abe, an advisor to the faction, urged 
an early settlement in the meeting, saying: "Unless the issue is 
resolved, a power struggle will start. That should be avoided." 
 
After the meeting, although Machimura asked Nakagawa for a meeting, 
Nakagawa refused the request, saying: "I don't have time." Faction 
members are wondering if Nakagawa may leave the faction in the end. 
 
 
Nakagawa met last night with about 10 first-term lawmakers from the 
faction at a Japanese restaurant in Tokyo. He was ostensibly calm 
when he said: "It is important to hold on to your own beliefs. Since 
Japan is in the difficult situation, we need to implement policy 
measures we believe in. Compared with that, the faction's problem is 
not a big deal." 
 
(3) Analyzing the crisis: Shift away from market fundamentalism 
 
MAINICHI (Page 2) (Full) 
February 6, 2009 
 
Interview with economist Hirofumi Uzawa 
 
 
TOKYO 00000292  003 OF 009 
 
 
-- How do you see the nature of the ongoing financial crisis? 
 
"The ongoing financial crisis indicates that market fundamentalism 
has collapsed. Market fundamentalism has been the mainstream 
thinking since economic reforms by the Reagan administration in the 
U.S. and the Thatcher administration in Britain in the 1980s. The 
Bush administration has also promoted it. As a result, the thinking 
that if there is an opportunity to make money, one can do anything 
to earn money has become rampant. The current crisis is the 
consequence of such market fundamentalism. It has destroyed the 
global economy. The blow dealt is immeasurable." 
 
-- During the Great Depression of the 1930s, Franklin Roosevelt 
served as the president of the U.S. 
 
"President Roosevelt separated the role of banks from that of 
securities houses under the Glass-Steagall Act in 1933. The nature 
of banks, which extensively collect deposits, and securities houses, 
which earn money with stocks, is totally different. Banks have 
intensified the bubble economy. However, banks and securities houses 
are essentially common social capital that plays a key role in order 
for economic activities to function smoothly and for people to lead 
stable lives. They must not be used for speculative purposes. The 
New Deal program clarified this principle. That had great meaning in 
the history of capitalism. 
 
-- Nevertheless, the U.S. again tilted toward speculation. 
 
"Deregulation has been promoted, based on market fundamentalism. As 
a result, the management of banks has become sloppy. The current 
financial crisis is the outcome of banks selling housing loans to 
those with low repayment capability and spreading financial products 
containing housing loan bonds, pretending that they were safe 
products. 
 
-- There is a deep-seated view that it is necessary to ensure free 
economic activities, by scrapping regulations. 
 
"Freedom has two meanings -- freedom of market fundamentalism, 
liberty to make society in which citizens' basic rights are 
respected and they can enjoy their freedom to the maximum extent. 
Market fundamentalism exploits poor people or people who are 
suffering. Japan has introduced competition principles. As a result, 
its medical services and education system have become run down." 
 
-- The Bush administration was negative toward measures to curb 
greenhouse gas emissions. 
 
"That administration's logic was to pursue economic growth of its 
own country and had no regard for other countries' suffering. This 
is the notion of market fundamentalism, which gives priority to 
making profits. The unilateralism of the U.S., including the Iraq 
War, was awful. Its unilateralism has rebounded against itself in 
the form of a financial crisis. The unipolar world centered around 
the U.S. is coming to an end, with the financial crisis as the 
occasion." 
 
-- President Obama's economic policy is called the new New Deal 
program. 
 
"Mr. Obama aims high. He is a wonderful person. I would like him to 
make a fundamental shift from market fundamentalism and display 
 
TOKYO 00000292  004 OF 009 
 
 
leadership in rebuilding a framework for new international 
cooperation. However, his economic team includes members who 
advocate an economic policy close to market fundamentalism. I do not 
know to what extent we can pin our hopes on President Obama." 
 
Hirofumi Uzawa: Graduated from the Tokyo University Faculty of 
Science. Served as the dean of the Tokyo University Department of 
Economics. Worldwide economist, who led the development of 
neoclassical theory. His works include "Social Cost of Automobiles," 
Economics of Global Warming," and "Common Social Capital." 80 years 
old. 
 
(4) Editorial: Obama must not allow chain reaction of protectionism 
triggered by U.S. 
 
NIKKEI (Page 2) (Full) 
February 6, 2009 
 
Given the ongoing global economic recession, protectionist moves 
have reared up in the United States. A "Buy American" provision was 
included in the economic stimulus bill that passed the House of 
Representatives last week. If the bill is enacted as is, a domino 
effect would begin and protectionism would spread across the world. 
 
The Buy American provision requires the U.S. government to use only 
U.S.-made steel, iron or clothing materials for public works 
projects, shutting out foreign products.  President Barack Obama 
should urge Congress in a resolute manner to revise the bill. 
 
The rest of the world is paying close attention to what trade policy 
the Obama administration will take. Obama said that the provision 
should be reviewed, but he has yet to refer to the possibility of 
using his veto power. Some observers point out that he fears a 
showdown with the Congress. 
 
In an attempt to include the provision in the stimulus package, 
Democratic Party lawmakers from steel-producing states played a 
leading role. They reacted apparently in response to strong pressure 
from domestic steel companies and their workers who have seen demand 
sharply plunging as a result of the recession. 
 
The House, at the proposal of a new member from the Democratic 
Party, also added to the bill a clause that would limits the 
uniforms worn by baggage inspectors at airports and other textile 
products at airports to U.S.-made ones. Meanwhile, the Senate is now 
discussing a bill that would expand the scope of obligatory 
procurement to include all industrial products, not limited to steel 
and iron products. 
 
In recent U.S. political circles, lawmakers have made moves 
apparently aimed to court the public's favor. It is certain that 
American firms' deteriorating business performance and employment 
uncertainty have invited the Congress to opt for protectionism. 
 
Given shrinking demand due to the global financial crisis, many 
countries have begun to incline toward protecting their own domestic 
industries. Russia has raised tariffs on automobiles from the 
current 25 PERCENT  to 30 PERCENT . India has also increased tariffs 
on steel and some food products. This trend is observed in Latin 
American countries, as well. 
 
More countries, once they judge that Washington has inclined toward 
 
TOKYO 00000292  005 OF 009 
 
 
protectionism, may raise tariffs, following on the heels of the U.S. 
The Buy American provision contains the danger of triggering a 
negative chain reaction. 
 
The Senate's bill added this wording: "(the provision) be applied in 
a manner consistent with U.S. obligations under international 
agreements." But the substance of the bill itself remains unchanged. 
If the bill passes the Senate, a final decision will be entrusted to 
the hands of President Obama. Obama should not make a compromise in 
a move to enact the stimulus bill in a rush. 
 
President Obama, who appeared on the stage while shouldering the 
burden of the world's expectations, has the responsibility to 
persuade domestic protectionists to change their stance. We expected 
the new U.S. president to demonstrate powerful leadership. 
 
(5) Editorial: Trilateral unity should be solidified 
 
SANKEI (Page 2) (Full) 
February 5, 2009 
 
North Korea is now preparing to launch long-range ballistic 
missiles, including a Taepodong-2 missile that can reach U.S. 
territory. If North Korea should launch a missile after an interval 
of three years, tensions will run high on the Korean Peninsula, 
involving the Obama administration right after its inauguration. 
 
According to U.S. reconnaissance satellite and South Korean 
intelligence, cargoes are being trucked or carried on a train to a 
missile launch site in North Korea's northern part. Those 
containerized objects, judging from the shape of their containers, 
are reportedly presumed to be for a Taepodong-2 missile or a larger 
one. 
 
In July 2006, North Korea launched missiles. At that time, the 
Taepodong-2 broke up in the air and its launch ended in failure. 
Even so, the Taepodong-2's range is estimated at 6,000 kilometers, 
which covers Alaska. Its enhanced type-ranging 12,000 kilometers-can 
reach the West Coast of the U.S. mainland, meaning a new threat to 
the United States. This is a serious problem also for Japan, which 
is seeking a comprehensive settlement of the nuclear, missile, and 
abduction issues. North Korea must never be allowed to launch 
missiles. 
 
At this point of time, North Korea made such an ostentatious move to 
show off. This move can be taken to mean that the new U.S. 
administration's inauguration was in Pyongyang's mind. The Obama 
administration has now set about tackling the Middle East and 
Afghanistan issues. When it comes to the North Korea problem, 
however, the Obama administration is now examining the past 
negotiations, according to Secretary of State Clinton. Basically, 
the Obama administration will continue the six-party talks that 
started under the Bush administration. 
 
On the other hand, North Korea, as a nuclear power, is demanding a 
new round of nuclear disarmament talks. North Korea possibly 
intended to make the most of its threat, aiming as usual to hold 
talks to its advantage. 
 
Granting that the move is intended to intimidate the U.S. 
government, however, we must say it is an irresponsible conduct to 
heighten tensions on the Korean Peninsula. In 2005, the six-party 
 
TOKYO 00000292  006 OF 009 
 
 
talks reached an agreement. On that occasion, North Korea promised 
to abandon its nuclear ambitions. Nevertheless, North Korea has 
refused nuclear inspections to date in spite of its removal from the 
terrorist blacklist and its fuel oil acquisition for nothing. 
 
Secretary Clinton will visit Japan, China, and South Korea in 
mid-February. President Obama had a telephone conversation with the 
leader of each country and agreed to attain the Korean Peninsula's 
denuclearization in the six-party talks. This month, Japan will 
preside over the United Nations Security Council. North Korea's 
bluff diplomacy will only strengthen the unity and cooperation of 
Japan, the United States, South Korea, and China. 
 
North Korea should return to the starting point of the six-party 
talks and then should sincerely deliver on its agreement to accept 
nuclear inspections and abandon its nuclear programs. Reckless 
behavior will bring nothing productive. North Korea should realize 
that it will be further isolated. 
 
(6) Local residents voice anger at U.S. military against live-fire 
training 
 
OKINAWA TIMES (Page 31) (Full) 
February 6, 2009 
 
"The U.S. military should own up to its responsibility." With this, 
a resident of Kin Town voiced anger as Okinawa prefectural police 
announced findings from their investigation of a recent incident in 
which a stray bullet hit a local resident's vehicle parked in the 
town's Igei district. It has been 54 days since the bullet was 
discovered. The police have yet to find out why such an incident 
occurred. However, the U.S. military is carrying out live-fire 
training at Camp Hansen, a U.S. military base contiguous to the 
town. Local residents claimed that the U.S. military should stop 
such live-fire training at once since the police have now found that 
the discovered bullet is the same as the U.S. military's. 
 
"The U.S. military uses that kind of bullet at Camp Hansen, so the 
bullet came flying. I can't think of any other reason. That bullet 
is not used in private areas, is it?" This comment came from Mitsu 
Tamaki, 70, who learned of the prefectural police's announcement 
when she was interviewed by the Okinawa Times. Tamaki saw white 
smoke spreading at her house's parking space. She looked into the 
police statement. "I don't know well from this alone," she said. She 
asked, "I want them to tell us more exactly if there is something 
relevant between the incident and Camp Hansen." 
 
"This is the same as what the local residents have said," Masafumi 
Ikehara, who represents the Igei district, said. "The U.S. military 
should stop the live-fire training right away, and I want the 
prefectural government to take strong action," Ikehara added. 
 
Kin Mayor Tsuyoshi Gibu was upset, saying: "The bullet is the same 
as the sample given by the U.S. military. This means the bullet came 
flying from the U.S. military's training ground. That's my 
impression. We have noted that the training is dangerous. 
Nevertheless, they continued the live-fire training. I feel angry 
about this fact." The town will hold a meeting of the Igei 
district's representative and the town's assembly members to discuss 
what to do from now on. 
 
The town's assembly will hold a meeting of its special committee on 
 
TOKYO 00000292  007 OF 009 
 
 
U.S. military bases. Its chairman, Masanobu (or Shoshin) Nakama, 
elected from the Igei district, was upset, saying: "Judging from the 
circumstantial evidence, it's clear that the bullet came from Camp 
Hansen. That's a defective training ground. We will discuss what to 
do, including our request to remove the base." The committee will 
meet this afternoon. 
 
Katsuhiro Yoshida, an Okinawa prefectural assembly member elected 
from the town of Kin, said: "We have confirmed that the U.S. 
military was carrying out training at Range 7 when the incident took 
place that day. This problem will affect the lives of people in the 
prefecture, so the prefectural police should ask the U.S. military 
to provide information in order to clear up the facts about the 
incident, including what they did in the training that day, as well 
as the training unit's name and the guns they used." He added: "We 
must not leave this matter unsettled with the prefectural police's 
findings. The U.S. military's fact-finding team could come up with a 
conclusion for the U.S. military. The Foreign Ministry and the 
Defense Ministry also should cooperate with the Okinawa prefectural 
police and should call for the U.S. military to disclose even more 
information." 
 
(7) Fierce race underway for top post of nuclear watchdog; Japan 
making every effort to get Amano elected as new IAEA director 
general 
 
ASAHI (Page 3) (Abridged slightly) 
February 6, 2009 
 
Atsuko Niuchi, Vienna 
 
The Japanese government has begun making serious efforts for 
obtaining the post of the director general of the International 
Atomic Energy Agency (IAEA), the UN nuclear watchdog. Japan has 
nominated ambassador to the International Organizations in Vienna 
Yukiya Amano, 61, as a candidate to succeed Mohamed ElBaradei. With 
an eye on a vote in March, a fierce competition is underway with the 
South African candidate. 
 
A Foreign Ministry official in charge described the upcoming 
election as a national project. He said: "From the prime minister, 
administrative vice-ministers, lawmakers, and to administrative 
officials of relevant ministries and agencies, our country has been 
calling for support for (Amano) by using every possible means." 
 
Amano's nomination was announced in the speech delivered last 
September by Prime Minister Taro Aso before the UN General Assembly. 
The Assembly was immediately followed by an IAEA general conference 
in which former Science and Technology Policy Minister Iwao Matsuda 
representing Japan delivered a speech and repeated "Yukiya Amano" 
eight times. In closing his speech, Matsuda introduced Amano in 
person to the assembly. 
 
In order to be appointed, a candidate must secure a two-thirds vote 
of the 35-member IAEA board of governors. The Foreign Ministry has 
set up the election campaign headquarters headed by Foreign Minister 
Hirofumi Nakasone. The members meet once a week to discuss 
strategies. The ministry has printed some 3,000 copies of an 
English-language pamphlet describing Hamano as a person of strong 
leadership with deep experience in order to distribute them to IAEA 
board members and others. 
 
 
TOKYO 00000292  008 OF 009 
 
 
Amano himself has visited many IAEA board member countries to sell 
himself. 
 
Amano's rival is Abdul Minty, 69, South African ambassador to the 
IAEA. According to an IAEA diplomatic source, Minty has won the 
support of the African Union (AU) in return for handing over the 
chair of the IAEA board of governors to another African country. 
 
Both Japan and South Africa have frequently held luncheon meetings 
and receptions at various parts of the world, including Vienna where 
the IAEA headquarters is located. As seen in lavish business 
entertainment and trade in international organization posts, 
anything goes mentality is evident. 
 
Key position with eye on North Korea 
 
There are reasons why Japan is eager to get the top IAEA position. 
One is because except for the UN Security Council, there is no 
international framework that carries more political weight than the 
AIEA, as a senior Foreign Ministry official put it. The IAEA and its 
Director General ElBaradei won the 2005 Nobel Peace Prize. 
 
The IAEA plays a major role in inspections of nuclear programs in 
North Korea and Iran. Chances and the number of countries subject to 
nuclear inspection are expected to grow with an increase in the use 
of nuclear energy due to measures to combat global warming and 
soaring fossil fuel prices. The government thinks the secretary 
general's post will significantly help increase the ability to 
gather information. 
 
In the election campaign, Japan as the only country to have suffered 
atomic bombs has played up the unique role it can play as a country 
that has used nuclear power peacefully over the last half century. A 
senior Foreign Ministry official said: "Japan has developed 
inspection technologies in cooperation with the IAEA. If Mr. Amano 
becomes IAEA director general, we can expand the use of nuclear 
energy while preventing such technologies from being used 
militarily." 
 
The other reason is that Japan might not have any top post of major 
international organizations after Koichiro Matsuura resigns as 
UNESCO director general this fall. 
 
The Japanese candidates were defeated in the race for the top 
position of the Organization for Economic Cooperation and 
Development (OECD) in 2005 and the race for the World Health 
Organization (WTO) in 2006. Contributions to international 
organizations and the government's official development assistance 
(ODA) budget are also dropping. Japan is strongly alarmed at a 
further decline in its presence in the international community. 
 
South Africa remains upbeat 
 
Chair of the board of governors Taous Feroukhi of Algeria is looking 
for ways to come up with single candidate through talks. But Amano 
and Minty are set to clash head on. Chances are high that a vote 
will take place in the regular board of governors' conference slated 
to open on March 2. 
 
Up to three secret ballots can be cast, and if the winner is still 
not determined, the propriety of each candidate will be questioned 
in the next vote. If that does not do the trick, the race will go 
 
TOKYO 00000292  009 OF 009 
 
 
back to the drawing board. Candidates can run again, but chances are 
a third candidate will come forward. "Obtaining two-thirds approval 
will not be that easy," a source connected with the Foreign Ministry 
said. 
 
According to a Vienna diplomatic source, about half of the 35 
countries have yet to determine their attitudes. 
 
In each case in the last two elections, the ones who came first did 
not clear the two-thirds requirement and the one who came late won 
the position. 
 
This time around, besides Amano and Minty, such names as former 
Mexican President Ernesto Zedillo and former Organization for the 
Prohibition of Chemical Weapons Director-General Rogelio Pfirter are 
being bandied as possible candidates for the job. A certain diplomat 
took this view: "Some are hoping for a third candidate. The fact 
that a large number of countries remain undecided might reflect such 
an atmosphere." 
 
Listening to Yukiya Amano -- Japan fit for the position 
 
Armed with its foreign policy centering on disarmament and 
nonproliferation, Japan has pursued the peaceful use of atomic 
energy as the only atomic-bombed country. Proactively extending 
technological cooperation, Japan is fit to produce the next IAEA 
director general. 
 
I have spent 36 years in the field of diplomacy. I have 15 years of 
experience in disarmament and nonproliferation and nuclear energy. I 
have also managed international organizations. I believe those 
experiences are helpful in guiding the IAEA. 
 
As seen in such issues as global warming, the nuclear issues of 
North Korea and Iran, and nuclear terrorism, challenges shift with 
the times. Priorities must be set straight under the limited 
budget. 
 
I am determined to streamline the IAEA further for an expanded use 
of nuclear energy and for strengthening security measures. 
 
ZUMWALT