VZCZCXRO3622
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0351/01 0472300
ZNR UUUUU ZZH
P 162300Z FEB 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0794
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 4783
RUEHFK/AMCONSUL FUKUOKA 2439
RUEHOK/AMCONSUL OSAKA KOBE 6226
RUEHNAG/AMCONSUL NAGOYA 0265
RUEHKSO/AMCONSUL SAPPORO 2990
RUEHBJ/AMEMBASSY BEIJING 7737
RUEHUL/AMEMBASSY SEOUL 3760
RUCNDT/USMISSION USUN NEW YORK 3723

UNCLAS SECTION 01 OF 19 TOKYO 000351 
 
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:  SPECIAL HOLIDAY EDITION OF THE DAILY SUMMARY OF JAPANESE 
PRESS 02/16/09 
 
INDEX: 
 
1) Secretary Clinton arrives in Japan today (Tokyo Shimbun) 
 
2) During Japan visit, Secretary of State to stress stance of 
placing priority on the U.S.-Japan alliance (Asahi) 
 
3) Secretary Clinton to formally propose to China comprehensive 
strategic dialogue (Yomiuri) 
 
4) In New York speech, Secretary Clinton says that U.S. is willing 
to normalize ties if North Korea scraps all nuclear programs (Tokyo 
Shimbun) 
 
5) "Hillary-style diplomacy": Secretary in Asia stops to engage in 
direct dialogues with average citizens (Yomiuri) 
 
6) Secretary Clinton to meet abductee families "as one mother to 
another" (Sankei) 
 
7) Democratic Party of Japan President Ozawa agrees to meet 
Secretary Clinton but denies it will be substantive (Mainichi) 
 
8) Secretary Clinton's visit to Japan an opportunity to solidify 
Japan, U.S., South Korea strategy toward North Korea (Sankei) 
 
9) The significance of a meeting between Secretary Clinton and DPJ 
President Ozawa (Nikkei) 
 
10) Foreign Minister Nakasone in meeting with Secretary Clinton to 
express willingness of Japan to host donor's conference to assist 
Pakistan (Mainichi) 
 
11) Editorial: We would like Japan to expand funding and personnel 
to assist Afghanistan (Yomiuri) 
 
12) Japan's share of cost of relocating Okinawa Marines to Guam to 
include building facilities for Air Force and Navy personnel there 
as well (Asahi) 
 
13) Plan laid out for escort of commercial ships by MSDF vessels in 
pirate-infested waters off Somalia (Sankei) 
 
14) Defense Ministry boosting information gathering and analysis of 
African situation (Nikkei) 
 
15) U.S. forces in Okinawa deploying missile detection equipment to 
catch possible launching by North Korea of Taepodong 2  (Sankei) 
 
16) U.S. Air Force deploys reconnaissance planes to Okinawa on alert 
North Korea (Yomiuri) 
 
17) U.S. Navy Aegis vessel bumps into sport fishing boat in Yokosuka 
Port but no one is hurt (Mainichi) 
 
18) North Korea approaching Japanese officials and lawmakers 
recently regarding the abduction issue (Tokyo Shimbun) 
 
19) Prime Minister Aso's popularity drops below the 10 PERCENT  line 
in NTV opinion poll (Sankei) 
 
 
TOKYO 00000351  002 OF 019 
 
 
20) Ruling camp to propose large scale FY 09 supplementary budget 
(Nikkei) 
 
21) Finance Minister Shoichi Nakagawa's strange behavior at news 
conference following G-7 meeting (Mainichi) 
 
22) In bilateral meeting at G-7, Treasury Secretary Geithner, 
Finance Minister Nakagawa stress prevention of protection but skirt 
"Buy American" issue (Nikkei) 
 
23) Geithner, Nakagawa agree to eliminate protectionist moves and 
restructure respective economies (Nikkei) 
 
24) Bittersweet debut for Geithner at the G-7 (Mainichi) 
 
Articles: 
 
CLINTON DIPLOMACY LAUNCHES IN ASIA 
 
1) State Secretary Clinton to arrive in Japan today 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 16, 2009 
 
United States Secretary of State Hillary Clinton will be arriving in 
Japan tonight. This will be the first Japan visit by a ranking 
official of the administration of President Barack Obama, as well as 
the first overseas trip by Clinton in her new role. She is scheduled 
to meet separately with Prime Minister Taro Aso and Foreign Minister 
Hirofumi Nakasone tomorrow. They are expected to confirm the 
importance of strengthening the Japan-U.S. alliance.  With an eye on 
a change of government in Japan, Clinton is also slated to meet 
Democratic Party of Japan President Ichiro Ozawa. 
 
Clinton is expected to ask the Japanese side to cooperate in the war 
on terrorism in Afghanistan, while Nakasone is likely to seek the 
cooperation of the U.S. to resolve the issue of past abductions of 
Japanese nationals by North Korean agents. In addition, they are 
expected to exchange views on how to deal with the North Korean 
nuclear development issue and the global financial crisis. Clinton 
and Nakasone will sign an accord on a plan to transfer U.S. Marines 
in Okinawa to Guam. 
 
Clinton and Aso in their meeting are likely to take up a timetable 
for a meeting between President Obama and Aso. 
 
Clinton is also scheduled to meet family members of abduction 
victims. She will leave Japan on the morning of the 18th. 
 
2) State Secretary Clinton to visit Japan today, ready to underscore 
stance of placing emphasis on Japan-U.S. alliance 
 
ASAHI (Page 4) (Full) 
February 16, 2009 
 
United States Secretary of State Hillary Clinton will arrive in 
Japan today on her first overseas trip in her new role. Clinton will 
make a round of visits to Indonesia, South Korea, and China by Feb. 
22 and underscore the importance that the administration of 
President Barack Obama places on relations with Asia, taking 
advantage of her name recognition in the region and strong presence 
 
TOKYO 00000351  003 OF 019 
 
 
in the administration. 
 
Clinton specifies the upcoming visits to the Asian countries as "a 
sign of the new administration's willingness to take the time and 
effort to cooperate with its partners in Asia." 
 
Personnel appointments for key posts in the State Department have 
yet to be determined. The new administration's policies have not 
been set, either. Clinton's visit to Asia before these arrangements 
are made is aimed to demonstrate to those countries the new 
administration's stance of placing emphasis on relations with them. 
She is also hoping to build ties with their top officials, rather 
than to produce actual results. 
 
Clinton, during her stay in Japan until the 18th, will reconfirm the 
importance of the Japan-U.S. alliance, which she defines as a 
cornerstone of U.S. diplomacy toward Asia. She will meet Prime 
Minister Aso and Foreign Minister Nakasone. In addition, she is 
scheduled to meet Democratic Party of Japan President Ozawa, with an 
eye on a possible change of government in the near future. 
 
North Korea's nuclear issue is likely to take center stage when she 
meets with leading Japanese officials. Arrangements have also been 
made for Clinton to meet with family members of Japanese abducted by 
North Korea. Clinton has said: "I would like to meet them not as the 
Secretary of State but as a wife, mother, daughter, and sister." 
 
She is scheduled to visit Indonesia, which has the largest Islamic 
population in the world, on Feb. 18-19. She is expected to call 
there for a dialogue with Islamic society, as the Obama 
administration has advocated. During the visit to South Korea on the 
19th and 20th, she will meet with President Lee Myung-bak and 
others. In the meeting, they are likely to confirm the need to 
improve South-North relations. 
 
While in China from the 20th through the 22nd, Clinton will meet 
with President Hu Jintao, Premier Wen Jiabao, and Foreign Minister 
Yang Jiechi. Clinton has recognized favorable U.S.-China relations 
as indispensable for global peace and prosperity. Based on this 
view, she will call on the Chinese side to build bilateral ties that 
are based not on competition but on cooperation. 
 
The Bush administration in its second term established a cooperative 
mechanism with China through strategic economic talks under the lead 
of the secretary of the treasury. Clinton, though, considers it is 
necessary to set up a mechanism for wider-ranging talks. In the 
meetings with the Chinese leaders, she will group for ways to 
strengthen forms of dialogues with China. 
 
Special Envoy for Climate Change Todd Stern will accompany Clinton 
on her Asia tour. Cooperation between the two countries in 
containing global warming is likely to be another main topic in the 
meeting with the Chinese government officials. 
 
3) Clinton to formally propose to China holding comprehensive 
strategic dialogue 
 
YOMIURI (Page 2) (Full) 
February 15, 2009 
 
Satoshi Ogawa, Washington 
 
TOKYO 00000351  004 OF 019 
 
 
 
In a speech delivered in New York on Feb. 13, Secretary of State 
Hillary Clinton indicated the intention to propose to China the U.S. 
government's idea of initiating a top-level comprehensive strategic 
dialogue on politics, the economy and security. She said: "I want to 
consult with the Chinese leadership next week as to how to organize 
a bilateral dialogue that would be conducted by the State Department 
and Department of the Treasury." 
 
According to U.S. diplomatic sources, the U.S. administration is 
considering setting up the framework of a regular dialogue between 
Vice President Joe Biden and Chinese Premier Wen Jiabao, because 
past low-level consultations failed to achieve sufficient results. 
Clinton will also discuss with Chinese leaders how she and Treasury 
Secretary Timothy Geithner would be involved in bilateral 
consultations. 
 
4) Secretary Clinton in speech says U.S. willing to normalize 
relations with North Korea in return for its scrapping nuclear 
program; Announces meeting with families of abductees 
 
TOKYO (Page 1) (Full) 
Eve., February 14, 2009 
 
By Nakahiro Iwata in New York 
 
Prior to her trip to Asia, U.S. Secretary of State Clinton on Feb. 
13 gave a speech at the Asia Society in New York. In it, she took a 
stance of being willing to normalize relations with North Korea, 
saying, "If North Korea is genuinely prepared to completely and 
verifiably eliminate its nuclear weapons program, the Obama 
administration would be willing to normalize bilateral relations, 
and replace the (Korean war) armistice agreement with a permanent 
peace treaty." 
 
Secretary Clinton at the same time stressed that "it is North 
Korea's choice (on normalizing relations)." With signs of moves that 
North Korea is preparing to launch a Taepodong-2 long-range 
ballistic missile, she sought to constrain that country by saying, 
"It is incumbent on North Korea to avoid any provocative action." 
 
In addition, she touched on the issue of Japanese abducted by North 
Korea, saying, "We will not forget the families of the abductees." 
She stated that during her visit to Japan, she would be meeting with 
the families of the abductee victims. 
 
Clinton in mentioning the Japan-U.S. alliance stressed: "It will 
continue to be unshakable." She also praised the Japanese 
government's economic assistance to Pakistan and other 
contributions. 
 
5) Secretary Clinton to hold direct dialogue with citizens in Asian 
countries 
 
YOMIURI (Page 2) (Full) 
February 15, 2009 
 
Keiichi Honma, Washington 
 
Setting up occasions to hold dialogues with college students and 
women's groups during her four-nation tour of Asian, U.S. Secretary 
 
TOKYO 00000351  005 OF 019 
 
 
of State Hillary Clinton will proactively carry out public 
diplomacy. Clinton herself hoped for direct exchanges with general 
citizens in the four Asian countries. It is reportedly said that 
Clinton will conduct her own style in carrying out U.S. foreign 
policy. 
 
According to the Department of State, the Secretary will hold 
dialogue in the University of Tokyo on Feb. 17; and on the 20th in 
the Ewha Woman's University, one of the best-known universities in 
South Korea. She is also expected to hold a meeting with leaders of 
women's and civic groups on the 22nd in Beijing. "The Secretary will 
build partnerships with persons outside of the governments," a 
government official said. 
 
6) U.S. Secretary of State Clinton to meet abductee families: "I 
will meet them as a mother" 
 
SANKEI (Page 2) (Excerpts) 
February 15, 2009 
 
By Masako Nagato in New York and Takashi Arimoto in Washington 
 
U.S. Secretary of State Hillary Clinton on Feb. 13 gave a speech in 
New York City in which she revealed that during her visit to Japan, 
she would be meeting with the families of Japanese abducted by North 
Korea. The Secretary, in a press interview by telephone after the 
speech, stated, "Rather than in my role as Secretary of State, I 
would like to meet the families as a wife, mother, daughter and 
sister." He took a stance of facing the abduction issue on a 
personal basis. 
 
This will be the first opportunity for Secretary Clinton to meet 
with the abductee families. In the interview, she indicated her 
sympathy for the families, saying, "I cannot imagine the feeling of 
parents whose child has disappeared and there has been no word about 
that person for many long years." She stressed, "It is important 
that we do not forget the extremely painful feelings those parents 
experienced." 
 
7) DPJ's Ozawa to meet Secretary Clinton just for "introducing each 
other" 
 
MAINICHI (Page 2) (Full) 
February 16, 2009 
 
When asked by reporters yesterday in Wakayama City about the planned 
meeting tomorrow between U.S. Secretary of State Hillary Clinton and 
him, Ichiro Ozawa, president of the main opposition Democratic Party 
of Japan (DPJ), said: "Since there is no particular agenda, I think 
the purpose of the meeting is probably just to introduce each 
other." He indicated in his remarks that such specific issues as the 
relocation of U.S. Marine Corps' Futenma Air Station would not be 
taken up as agenda items. 
 
Ozawa strongly criticized the government's idea of considering a 
supplementary budget for fiscal 2009, saying: "I think the judgment 
is a disgrace. The government should change or revise the budget for 
fiscal 2009. It appears to have admitted that the fiscal 2009 budget 
is a blemish." 
 
EDITORIALS ON THE SECRETARY'S VISIT 
 
TOKYO 00000351  006 OF 019 
 
 
 
8) Editorial: Secretary Clinton to Japan - Time for Japan, U.S., 
South Korea to solidify on North Korea 
 
SANKEI (Page 2) (Full) 
February 15, 2009 
 
U.S. Secretary of State Hillary Clinton arrives in Japan on Feb. 16 
on the first leg of her Asia trip that also includes Indonesia, 
South Korea, and China. The aim in making Japan her first overseas 
stop since her appointment is to demonstrate to international 
audiences the priority the United States gives to its alliance with 
Japan. 
 
In a speech prior to her overseas tour, Secretary Clinton said, "Our 
alliance with Japan has been and must remain unshakable." She 
continued, "We have not forgotten the families of Japanese citizens 
abducted to North Korea." She will meet with Prime Minister Aso on 
Feb. 17 and then with the families of the abductees. Reportedly, the 
Secretary also will meet with Democratic Party of Japan President 
Ichiro Ozawa. 
 
Under the Bush administration, the alliance relationship that 
Ambassador to Japan Schieffer used to call "stronger than ever" 
continued to develop. We welcome the expression of intent by the 
Obama administration to deepen alliance ties. 
 
There are numerous issues of concern between Japan and the United 
States on the security front, such as the realignment of U.S. forces 
in Japan that includes the relocation of Futenma Air Station, and 
Japan's contributions to Afghanistan and other countries. Among the 
most worrisome and urgent challenges is the North Korea problem. 
North Korea has shown signs of preparing to launch a long-distance 
ballistic missile, and its officials have hinted to U.S. experts 
visiting that country it is building nuclear warheads to be mounted 
on such missiles. There are strong suspicions that the North is 
secretly enriching uranium. 
 
Under the previous U.S. administration, Six Party Talks centered on 
the North Korea nuclear issue failed to confirm a nuclear 
verification regime. The talks ended up going nowhere, with the 
North taking for free such benefits as heavy-fuel assistance. The 
U.S., by removing the DPRK from its list of terrorist-sponsoring 
states, damaged Japan's trust in it, leading to the danger that the 
alliance would exist in name only. North Korea even took a stance of 
demanding that the U.S. negotiate with it as a nuclear power under a 
separate framework for talks. Such posturing by Pyongyang is 
unacceptable. 
 
In order to avoid repeating such past failures, there needs to be a 
reconfirmation under the Obama administration of the solidarity and 
cooperation of Japan, the U.S., and the Republic of Korea (ROK), and 
a proper re-adjustment of the negotiating strategy toward North 
Korea. Fortunately, under the South Korean administration of 
President Lee Myung-bak, a new cooperative relationship is growing 
between Japan and the ROK. Ties between China and Russia also are 
strengthening. This chance to revamp the Six-Party Talks will never 
come again. 
 
The Japanese government aims to resolve comprehensively the issues 
of the abductions, nuclear weapons, and missiles. We would like 
 
TOKYO 00000351  007 OF 019 
 
 
Secretary Clinton, who has strong interest in humanitarian and 
human-rights issues, to gain a sense of the seriousness of the 
abduction issue from the families of the victims. Moreover, it is 
essential to work simultaneously on the nuclear and missile issues. 
 
Japan and the United States have long-range tasks that include 
building a strategic relationship with China. It is only natural 
that we urge the U.S. to pursue constant dialogue and consultations 
with Japan so that the alliance will not become a hollow shell. 
 
9) Editorial: Meaning of Ozawa-Clinton meeting 
 
NIKKEI (Page 2) (Full) 
February 13, 2009 
 
U.S. Secretary of State Hillary Clinton has sounded out Ichiro 
Ozawa, leader of the main opposition Democratic Party of Japan 
(DPJ), about holding a meeting during her visit to Japan. Clinton's 
request for a meeting with Ozawa probably stems from two concerns: 
One being anxiety about the administration of Prime Minister Taro 
Aso itself and the other being worry about an Ozawa administration, 
should the DPJ wrest power from the ruling Liberal Democratic Party. 
If Ozawa rejects the request, the U.S. government would deepen its 
concern about he and his party even more. (TN: The meeting has since 
been scheduled for Feb. 17.) 
 
It is only natural that the international community is not 
optimistic about the future of the Aso cabinet, whose support rates 
have plunged to the 10 percent level in the polls. IN particular, 
Aso's flip-flopping on the postal-privatization process could result 
in damaging international confidence in his administration as other 
countries question the weight of the Japanese government's 
decisions. 
 
Whenever successive U.S. presidents and secretaries of state have 
visited the former Soviet Union and China, they have often met with 
dissident intellectuals. Since President Barack Obama has said his 
administration stresses the importance of U.S. relations with Japan, 
it is only natural politically for Secretary Clinton to ask for a 
meeting with Ozawa during her Japan visit, since there is a 
possibility of the DPJ taking over the reins of government in the 
next Lower House election that must be held by the fall. It may be 
diplomatically unusual but there are precedents for such in Tokyo. 
 
When then President Bill Clinton visited Japan in July 1993 to 
attend the Tokyo summit, he held an informal meeting with Social 
Democratic Party Chairman Sadao Yamahana, Japan Renewal Party leader 
Tsutomu Hata and Japan New Party head Morihiro Hosokawa. The visit 
came just before a Lower House election. As a result of the 
election, a coalition government led by Hosokawa as prime minister 
was inaugurated. Yamahana and Hata joined the Hosokawa cabinet. 
 
An Ozawa-Clinton meeting reminds us of a meeting in August 2007 
between Ozawa and U.S. Ambassador to Japan Thomas Schieffer, which 
was opened to the media. The U.S. Embassy was perplexed at the 
meeting since such was diplomatically unusual. This time, Clinton 
has sought out Ozawa for a meeting in order to question him about 
his foreign policy. 
 
The Ozawa-led DPJ has opposed Japan's refueling mission in the 
Indian Ocean and Japan's host nation support for stationing U.S. 
 
TOKYO 00000351  008 OF 019 
 
 
forces in Japan. The DPJ has called for relocating the U.S. Marine 
Corps' Futenma Air Station out of Okinawa to someplace overseas, as 
well as for a revision of the Japan-U.S. Status of Forces Agreement 
(SOFA). If there is no change in the DPJ's policy, friction will 
surely arise between the DPJ and the Obama administration. U.S. 
Democratic Party officials who visited Japan last December have 
already informed the Obama administration of their concern about the 
DPJ. 
 
Will Ozawa accept Clinton's request for a meeting? Will he disclose 
the meeting to the press if he accepts as he did so when he had a 
meeting with Schiffer? This will serve as a tool to divine Ozawa's 
foreign policy. 
 
JAPAN'S INTERNATIONAL CONTRIBUTIONS 
 
10) Foreign Minister Nakasone to propose in meeting with Secretary 
Clinton holding international conference in Japan to support 
Pakistan 
 
MAINICHI (Page 2) (Full) 
February 16, 2009 
 
During his meeting tomorrow with U.S. Secretary of State Hillary 
Clinton, Foreign Minister Hirofumi Nakasone has decided to propose a 
Japan initiative of holding an international conference in Tokyo to 
discuss assistance measures for Pakistan. Some analysts contend that 
Pakistan is now in danger of collapse due to the global financial 
crisis, and see the security in that country deteriorating. Japan 
intends to indirectly support the efforts of the administration of 
U.S. President Barack Obama, which has advocated a policy of giving 
priority to the war on terror in Afghanistan, by leading efforts to 
build an international framework to assist Pakistan. 
 
Clinton will arrive in Tokyo tonight. She is expected to meet 
tomorrow morning with Nakasone. After the meeting, the two will hold 
a joint press conference in the afternoon. 
 
In order to assist Pakistan, a meeting of the "friends" of that 
country was held last September in New York under the initiative of 
the United States and Britain. A total of 14 countries and 
organizations, including Japan, China and the United Nations, took 
part in the international conference. With the further deterioration 
of Pakistan's economic and security situations, the Japanese 
government looked into the possibility of hosting a new conference 
in a bid to speed up efforts to strengthen assistance toward 
Pakistan. A Foreign Ministry official said that during bilateral 
talks between Tokyo and Washington, "The U.S. government has 
welcomed," the idea of holding an international conference in Japan. 
In order to hold such a meeting this spring, the Japanese government 
is expected to quickly obtain approval from Pakistan, the European 
Union (EU), China, and other countries. Japan wants to hold a 
cabinet-level meeting. 
 
At the meeting tomorrow, Nakasone and Secretary Clinton will sign an 
agreement on the relocation of U.S. Marine Corps in Okinawa to Guam. 
The accord will stipulate that Japan's financial burden should be up 
to 2.8 billion dollars and that the money should be used only for 
the original purposes. 
 
Clinton will meet also on the 17th with Defense Minister Hirokazu 
 
TOKYO 00000351  009 OF 019 
 
 
Hamada. She will next attend a tea party hosted by the Empress at 
the Imperial Palace. She will meet tomorrow night with Prime 
Minister Taro Aso and attend a dinner party he will host. After 
that, she will meet with Ichiro Ozawa, leader of the main opposition 
Democratic Party of Japan. She will leave Japan on the morning of 
the 18th. 
 
11) Editorial: We would like to see expanded funds and human 
contributions to assist Afghanistan 
 
YOMIURI (Page 3) (Full) 
February 16, 2009 
 
How can Afghanistan, which stands on the front line of the war on 
terror, be stabilized? Japan must now put in every effort to tackle 
this difficult challenge that for the next several years will 
continue to be a most important issue for the international 
community. The government has allocated in this year's second 
supplementary budget 30.1 billion yen in outlays to assist 
Afghanistan. The funds center on providing financial cooperation for 
police reforms and for the presidential election in the summer. 
 
As Foreign Minister Nakasone pointed out to Afghan Foreign Minister 
Spanta during a telephone conversation, "This year will hold the key 
to stabilizing and bringing about the recovery of Afghanistan." 
There is no other common perception in the international community. 
 
President Obama has raised the banner of giving priority to 
Afghanistan, and in order to deal with deteriorating law and order, 
he is considering a large increase - approximately 34,000 -- in U.S. 
troops stationed in that country. The countries of Europe, as well, 
are beefing up ISAF participation and tackling the nurturing of the 
Afghan military. 
 
Lowering the threat of international terrorism through stabilizing 
Afghanistan will lead to peace and stability of Japan itself. 
Although there is no room for optimism about Afghanistan's future, 
Japan, too, must make every effort to enhance its assistance to that 
country. 
 
Japan has announced assistance worth 2 billion dollars, ranking it 
next to the U.S. and Britain. Of this, 1.5 billion dollars has been 
disbursed. The funds are all for reconstruction efforts in different 
areas, such as public security, infrastructure building, education, 
insurance, and agriculture. We would like to see Japan use its 
brains to come up with even more effective projects. 
 
The Foreign Ministry in April plans to send to the mid-portion of 
Afghanistan two or three employees. They will link up with a PRT 
(provincial reconstruction team) of Lithuanian troops deployed to 
that region and carry out non-reimbursable projects there such as 
construction of schools and clinics, professional training, and 
teaching children to write. 
 
Although only a few personnel will be sent, there is great meaning 
in expanding the framework for Japan's human assistance framework 
that goes beyond simple financial aid. We would like to assistance 
projects proactively conceived that will be helpful to the local 
inhabitants. 
 
The government is coordinating to sponsor in Tokyo a cabinet-level 
 
TOKYO 00000351  010 OF 019 
 
 
conference as early as next month to assist Pakistan. As long as the 
international terrorist organization Al-Qaeda maintains a stronghold 
in border region of Pakistan adjacent to Afghanistan, there can be 
no hope for Afghanistan recovering its public security. 
 
Large scale official development assistance (ODA) will help support 
the Pakistani government. It can be strategically applied to induce 
tribes in the border regions to separate from Al-Qaeda. 
 
From the point of view of expanding human assistance, the option of 
dispatching the Self-Defense Forces to Afghanistan should not be 
ruled out. Under the current Diet situation, even though it is 
impractical to draft a new law for dispatching the SDF, after the 
Lower House election, basic consideration should be given to such 
contributions as sending Ground Self-Defense Force transport 
helicopters to that country. 
 
ALLIANCE AFFAIRS 
 
12) Contrary to government's explanation, 20.2 billion yen in 
Japan's contribution to Guam relocation to be used for building U.S. 
Navy, Air Force facilities 
 
ASAHI (Top play) (Abridged slightly) 
February 16, 2009 
 
Takaki Doi 
 
The government has produced a budget bill for fiscal 2009 that 
includes 34.6 billion yen as Japan's contribution to the planned 
relocation of U.S. Marines from Okinawa to Guam. It has become clear 
that of that amount, 20.2 billion yen would be appropriated for 
improving infrastructure, such as facilities of the U.S. Navy and 
Air Force on Guam. The government had earlier explained that Japan's 
contribution would be spent on building a command office and other 
facilities that would be necessary due to the relocation of the 
Marines. But Japan's contribution would be expanded to cover 
facilities that are not directly connected with the relocation. 
 
In their talks on Feb. 17, Foreign Minister Hirofumi Nakasone and 
U.S. Secretary of State Hillary Clinton are expected to reach a 
formal agreement on the Guam relocation that includes items 
prohibiting (the United States) from using Japan's fund 
contributions for other purposes. The Defense Ministry's view is 
that the appropriations for Navy and Air Force facilities are 
connected with the relocation of the Marines. Nevertheless, the 
government's unclear explanation about the scope of expenses for 
infrastructure required for the Marines' relocation from Okinawa is 
likely to raise questions. 
 
In its fiscal 2009 budget, the government has appropriated 34.6 
billion yen as Japan's contribution to the Guam relocation. It has 
become clear through our interviews with the Defense Ministry that 
of that amount, 17.4 billion yen would be spent on the improvement 
of infrastructure in Guam's Apra Harbor in the U.S. Navy base and 
2.8 billion yen on improving infrastructure on Andersen Air Force 
Base, such as land formation and a water and sewage project. 
 
A Defense Ministry source referred to Japan bearing the cost of 
improving Navy and Air Force facilities as an approach that would 
facilitate the relocation most effectively and smoothly. Part of 
 
TOKYO 00000351  011 OF 019 
 
 
Apra Harbor would be improved for building the command office of the 
Marines port operating unit that would be relocated from Okinawa. 
Further, the port would be improved for visits by the assault force 
of the U.S. Sasebo base (Nagasaki Prefecture) that would be jointly 
operated with the Marines, according to the Defense Ministry. 
 
On Andersen Air Force Base, an area will be improved for the 
construction of a Marines facility complex including the office 
building of the helicopter operation and control unit. For this 
reason, the government insists that it is part of the Marines 
relocation cost. 
 
But according to a senior Defense Ministry official, the site for 
building the command office has yet to be determined at Apra Harbor. 
He also indicated that the project is not directly connected with 
the Marines relocation from Okinawa because operated at Andersen Air 
Force Base would be helicopters from bases other than Okinawa, such 
as Iwakuni Air Station in Yamaguchi Prefecture. 
 
In line with the U.S. global strategy, there is a plan to relocate a 
variety of forces of the Army, Navy, Air Force, and Marine Corps to 
Guam from the continental United States. The relocation of U.S. 
Marines from Okinawa is only part of it, and one expert said, "It is 
difficult to clearly determine what are the facilities and 
infrastructure for the relocation from Okinawa." like this time, if 
the government approves disbursements that are unclearly connected 
with the Marines relocation, the scope of Japan's contributions 
might endlessly expand. 
 
In 2006, an agreement was reached between Tokyo and Washington for 
Japan to contribute up to 2.8 billion dollars for building the 
command office and billets. On April 18, 2008, then Defense Minister 
Shigeru Ishiba told the House of Councillors Audit Committee: 
"Taxpayers' money will be used. Japan will pay strictly for the 
relocation of U.S. Marines from Okinawa to Guam." Even for an ally, 
it is extremely rare to use taxes for the improvement of a foreign 
base outside the country. 
 
13) MSDF to convoy mercantile fleets in Somalia waters 
 
SANKEI (Top play) (Full) 
February 16, 2009 
 
The Defense Ministry is planning to send the Maritime Self-Defense 
Force for an antipiracy mission in waters off the eastern African 
coast of Somalia, and the ministry revealed an outline of the 
mission yesterday. The MSDF will send out two destroyers in order to 
escort merchant ships on the front and in the rear. SH-60 patrol 
helicopters onboard the MSDF destroyers will watch out in flight 
over neighboring waters. The ministry estimates that it will take 
two days to pass through the 900-kilometer Gulf of Aden from one end 
to the other. Accordingly, the MSDF's convoy of mercantile fleets 
will be limited to the pace of once in four days at most. 
 
The Defense Ministry will dispatch two MSDF destroyers in early 
March from the MSDF's Escort Flotilla 4, which is headquartered at 
the MSDF's Kure base, by invoking an action for maritime security 
operations under the Self-Defense Forces' Article 82. One of the two 
MSDF destroyers is the Sazanami (4,650 tons) and the Samidare (4550 
tons). Each of the two destroyers can house two patrol helicopters 
in its hangar. However, the two destroyers' hangars cannot be used 
 
TOKYO 00000351  012 OF 019 
 
 
because an MSDF special security taskforce will use each destroyer's 
hangar for its special crafts. For this reason, each destroyer will 
have only one helicopter on board. 
 
In maritime security operations, the MSDF's use of weapons will be 
limited to legitimate self-defense or emergency evacuation only. Due 
to this legal constraint, the MSDF destroyers-when deployed to 
waters off Somalia-will need to spot pirate ships before the pirates 
come close to merchant ships they escort, and the MSDF-convoyed 
fleet will change course. Then, how soon to turn around will be in 
focus. The MSDF destroyers' surface radar can cover only dozen 
kilometers, so the SH-60 patrol helicopter, which an MSDF source 
says can cover 300 kilometers away depending on its flying altitude, 
will have to undertake the critical role. 
 
Each of the two SH-60 helicopters will be loaded with a 7.62-mm 
machinegun. If the spotted pirate ship refuses orders to stop, the 
SH-60 may fire warning shots in waters away from the MSDF-convoyed 
fleet to stop the pirates. 
 
A senior Defense Ministry official explains that the MSDF destroyers 
need at least two SH-60 patrol helicopters, including a backup, to 
provide for trouble or emergency reporting to naval ships from other 
countries. The Defense Ministry has now decided to have two MSDF 
destroyers acting in tandem with each other. 
 
There are about six Japanese-registered and Japanese-related 
commercial ships passing daily through the Gulf of Aden. However, a 
pair of MSDF destroyers-when acting in tandem to escort a mercantile 
fleet-can only escort once or so in four days. Given this pace, a 
lawmaker of the ruling Liberal Democratic Party fears that there 
will be considerably many commercial ships that cannot be escorted. 
In addition, the Defense Ministry also deems it necessary for the 
MSDF destroyers to make a port call in Djibouti after every two 
shuttles. Including the mission's suspension for refueling purposes, 
the MSDF destroyers may have to reduce the pace of their escorting 
to once a week or so. 
 
However, an MSDF source says only one MSDF destroyer can be enough 
to escort commercial ships if P-3C patrol aircraft is tasked with 
warning and surveillance to spot pirate ships. The Defense Ministry 
will therefore review how to have the two MSDF destroyers escort 
mercantile fleets after the P-3C's dispatch that is expected to be 
several months after the MSDF destroyers have been sent out. 
 
14) Defense Ministry to add Africa analysts in order to expand 
information-collecting program 
 
NIKKEI (Page 2) (Full) 
February 14, 2009 
 
With the expansion of the overseas role of the Self-Defense Forces 
(SDF), including overseas dispatching of troops for peacekeeping 
operations (PKO), the Ministry of Defense will expand its 
information gathering program starting in fiscal 2009 Given the 
increased opportunities for dispatches to Sudan and to the waters 
off Somalia for anti-piracy operations, the Ministry will increase 
intelligence analysts responsible for the African region, where the 
information grasped so far has been thin. It will establish next 
fiscal year within the Ground Self-Defense Force an occupational 
category of intelligence specialists who gather and analyze such 
 
TOKYO 00000351  013 OF 019 
 
 
information. The purpose in addition to being able to prepare for an 
emergency situation in the area surrounding Japan is also to be able 
to respond rapidly to requests for dispatches of the SDF overseas. 
 
In strengthening intelligence analysis, an additional three SDF 
personnel will be posted from April to serve at the intelligence 
headquarters that is directly under the Defense Minister. The team 
will work to grasp the public security situation in each African 
country, as well as the living, sanitary, and environmental 
conditions, and the needs of the SDF being dispatched. 
 
The government is searching for a new international contribution 
following the withdrawal of the Air Self-Defense Force from Iraq, 
from a strategic diplomacy perspective aimed at Japan gaining a 
permanent seat on the United Nations Security Council. The 
government is considering dispatching the SDF to Africa for 
anti-piracy operations, to Sudan to join UNMIS, to the PKO Center in 
Egypt and other PKO centers. 
 
15) U.S. sends RC-135S aircraft to Okinawa to 'prevent' DPRK missile 
launch 
 
SANKEI (Page 1) (Abridged) 
February 15, 2009 
(OSC translation) 
 
In the wake of North Korea's preparation for launching the 
long-range ballistic missile "Taepodong-2 (Taepo Dong-2)," it was 
learned on 14 February that the US military has deployed ballistic 
missile tracking aircraft "RC-135S" (Cobra Ball) to Kadena Air Base 
(KAB) in Okinawa Prefecture. With US Secretary of State Hillary 
Clinton, who has been critical of North Korea, arriving in Japan on 
16 February, the United States apparently aims to strongly constrain 
took the military approach to coincide with the visit with an eye to 
strongly constrain North Korea from firing the missile.  Meanwhile, 
the Self-Defense Force (SDF) has firmed up a plan to reinforce 
information gathering activities by electronic reconnaissance 
planes. 
 
In the run-up to North Korea's firing of seven ballistic missiles 
including 
Taepodong-2 on 5 July 2006, the US military deployed a Cobra Ball 
aircraft to KAB beginning late May, or more than a month before the 
firing.  Day after day, the aircraft carried out flights lasting 
many hours, and on the day when the missiles were launched, the 
aircraft was conducting a surveillance flight. 
 
(Passage omitted on the main features of RC-135C) 
 
This time round, the US military deployed two Cobra Ball aircraft at 
KAB, and the planes arrived successively from mainland United States 
on the night of 13 February.  Although North Korea is not preparing 
for the (rumored) missile firing in a hurried manner, it is expected 
that the two planes will remain at KAB to constantly carry out 
reconnaissance flights related to Taepodong-2 missiles. 
 
The US military possesses a total of three Cobra Ball aircraft. 
Some are taking the view that the US side deployed two of the three 
planes to KAB as a strong military demonstration to counter North 
Korea, which has been putting pressure on the Obama administration 
since immediately after the inauguration. 
 
TOKYO 00000351  014 OF 019 
 
 
 
North Korea has been preparing a missile launch at a Musudan-ri base 
in North Hamgyo'ng Province, the same base where North Korea fired a 
Taepodong-2 missile in 2006.  North Korea began the preparation 
around late January, and it is said that a train carrying a freight 
of a cylindrical shape arrived in Musudan-ri in early February. 
South Korea's Yonhap news agency reported on 11 February that 
equipment necessary for a missile launch has been transported by 
vehicles. 
 
In addition to these reports, it was learned on 12 February that a 
reconnaissance satellite discovered a convoy of vehicles heading to 
the base, but later the vehicles that made up the convoy could not 
be seen around the base.  Some are taking the view that the vehicles 
are remaining inside a garage inside the base, and the personnel 
have been assembling a missile and carrying out other work to 
prepare for a missile launch. 
 
In the wake of the preparation being advanced, the SDF will step up 
a watch by electronic reconnaissance planes.  In particular, the 
Maritime SDF's "EP-3" and the Air SDF's "YS-11E," both of which 
collect signals from communications/electronic equipment, will carry 
out flights with more emphasis on the North Korean situation. 
 
16) U.S. Air Force deploys reconnaissance planes to Okinawa on alert 
North Korea 
 
YOMIURI (Page 2) (Full) 
February 15, 2009 
 
According to what the Defense Ministry has been informed, the U.S. 
Air Force urgently deployed on the night of Feb. 13 two RC-135S 
Cobra Ball aircraft to its Kadena Air Base in Okinawa Prefecture, in 
order to prepare for ballistic missile launch by North Korea. 
 
According to media reports, North Korea reportedly appears to be 
preparing to test-launch its Taepodong-2 long-rang ballistic missile 
capable of carrying nuclear weapons at a launch base in its 
northeast. The deployment of Cobra Ball aircraft to Japan is the 
first time since July 2006 when North Korea launched seven ballistic 
missiles toward the Seat of Japan. Cobra Ball aircraft enable to 
observe the tracks of ballistic missiles and identify the efficiency 
of on-target impacts of missiles, by recording radio signals from 
missiles. 
 
Reformed Taepondong-2 missiles with range of 10,000 km or longer are 
reportedly designed to reach the U.S. West Coast. Of the three Cobra 
Ball aircraft, the U.S. Air Force, are now deploying two aircraft to 
gather information. 
 
17) U.S. Aegis ship collides with fishing boat 
 
MAINICHI (Page 2) (Full) 
February 16, 2009 
 
The USS Lassen, a Yokosuka-based 9,200-ton Aegis-equipped destroyer 
of the U.S. Navy with an overall length of 155 meters, collided with 
the Sumomo II, a 14-ton fishing boat, in the port of Yokosuka off 
Natsushimacho, Yokosuka City, Kanagawa Prefecture, yesterday at 
around 12:25 p.m. The 43-year-old Sumomo II skipper, Seishi Hotoda, 
of Edogawa-ku, Tokyo, reported the collision to the Japan Coast 
 
TOKYO 00000351  015 OF 019 
 
 
Guard's 3rd Regional Coast Guard Headquarters. The fishing boat was 
damaged on the bow but returned to port on its own. The Lassen 
entered port. No injuries were reported. The JCG Yokosuka division 
is investigating the incident on suspicion of professional 
negligence resulting in dangerous traffic. 
 
According to the JCG Yokosuka division, Hotoda was fishing for kisu 
(sillaginoid) with three friends after dropping anchor at a point in 
waters about 1.7 kilometers north of the U.S. Navy's Yokosuka base. 
The Lassen came near from the right rear and brushed against the 
fishing boat on the front starboard. The Lassen has two gouges, one 
to two meters long, near its middle portion on the port side and 
another scratch of around 30 centimeters on the stern. "They 
suddenly hit my boat," Hotoda was quoted as telling JCG officials. 
 
The headquarters of U.S. Naval Forces Japan has released a comment, 
saying: "The USS Lassen stopped to check the boat's damage, and then 
entered the base in order to avoid standing in the way of other 
ships." 
 
18) Pyongyang increasing contacts with Japan possibly with eye on 
dialogue with Japan 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
February 14, 2009 
 
North Korea has been actively making contacts with sources connected 
with the Japanese government and several lawmakers regarding 
Japan-DPRK talks on the issue of Japanese nationals abducted and 
other matters, it was learned yesterday. 
 
According to a source connected with the government, North Korea has 
contacted persons connected with the Japanese government and 
lawmakers since late last year through a variety of channels. The 
North has asked about Japan's political situation over policy toward 
the DPRK. 
 
In working-level talks last August, Tokyo and Pyongyang agreed to 
set up an authoritative investigative committee on the abduction 
issue to produce result by fall. But following Prime Minister Yasuo 
Fukuda's resignation, the North has forgone a plan to reinvestigate 
(the fate of Japanese abductees), saying that it would watch the new 
Japanese administration's thinking. 
 
Now that the administration of President Barack Obama, who advocates 
a dialogue policy course, has been launched, there is a possibility 
that the North has begun looking for a chance to dialogue with Japan 
as well, thinking that U.S.-DPRK talks and the six-party talks would 
again move forward. 
 
But a government official remains pessimistic about the recent 
contacts bringing about progress right away, saying, "This seems to 
be the usual way for North Korea to shake things up." 
 
POLITICAL AND ECONOMIC DEVELOPMENTS 
 
19) Poll: Cabinet support falls below 10 PERCENT 
 
SANKEI (Page 5) (Full) 
February 16, 2009 
 
 
TOKYO 00000351  016 OF 019 
 
 
The support rate for the Aso cabinet has now dropped to 9.7 PERCENT 
, according to findings from a Nippon Television (NTV) poll released 
yesterday. The Aso cabinet's support rate has been on the decline 
due in part to Prime Minister Taro Aso's remarks over the 
privatization of postal services. However, this is the first time 
that the Aso cabinet's support rate has fallen below 10 PERCENT  in 
a major news organization. 
 
20) Major fiscal 2009 supplementary budget plan surfaces in ruling 
parties: "The scale would be 20-30 trillion yen," says senior LDP 
member 
 
NIKKEI (Page 1) (Abridged slightly) 
February 16, 2009 
 
A plan to compile a large-size fiscal 2009 extra budget for the 
implementation of additional economic stimulus measures suddenly 
surfaced in the ruling parties on February 15. This is because it is 
viewed that the preliminary figure for the gross domestic product 
(GDP) in real terms for the 2008 October-December quarter, which the 
government will release on the 16th, will be significantly worse. 
Referring to the size of the proposed fiscal 2009 supplementary 
budget, Vice Chairman Yoshihide Suga of the Liberal Democratic Party 
(LDP) Election Committee told reporters in Tokyo, "20-30 trillion 
yen would be necessary." 
 
Commenting on an additional economic stimulus package and a 
supplementary budget, Suga during a TV Asahi talk show said, "We 
must go in that direction, if the released (economic) figures 
significantly deteriorate." He then noted, "The size (of the 
supplementary budget) must by fairly drastic." Deputy LDP Secretary 
General Nobuteru Ishihara during an NHK TV talk show also said, "We 
will compile a maximum scale supplementary budget through joint 
efforts by the ruling and opposition camps. The envisaged 
supplementary budget needs dynamism." 
 
State Minister for Economic and Fiscal Policy Kaoru Yosano in a 
speech given in Nankoku City, Kochi Prefecture, said, "The fate of 
the Japanese economy will become clear in numerical terms tomorrow 
(16th)." 
 
One government source stressed, "Given the sharp deterioration in 
the economic situation, it is only natural for the government to 
compile a large scale extra budget." An aide to the prime minister 
said: "The nature of additional stimulus measures would change, 
depending on whether such measures are a simple economic stimulus 
package or a package with focus on employment and improving people's 
lives. The prime minister will make the final decision, based on 
discussions pursued by the ruling parties." 
 
The size of projects in the economic stimulus package, including the 
flat-sum cash handout scheme compiled by the Aso cabinet last 
October, is roughly 27 trillion yen. Fiscal spending in real terms 
(real spending) is approximately 5 trillion yen with financial 
resources drawn from the fiscal 2008 second extra budget. Fiscal 
resources for the fresh economic stimulus package will likely be 
financed with a supplementary budget. The compilation of the 
supplementary budget will be looked into with an eye on a maximum 
scale. 
 
G-7 MEETING 
 
TOKYO 00000351  017 OF 019 
 
 
 
21) Finance Minister Nakagawa slurs his words at G-7 press 
conference 
 
MAINICHI (Page 2) (Full) 
February 16, 2009 
 
Akio Fujiwara, Rome 
 
Following the Group of Seven meeting of finance ministers and 
central governors that ended on the afternoon of Feb. 14 in Rome, 
Finance Minister and Financial Services Minister Shoichi Nakagawa 
attended a press conference. But apparently in bad shape, he slurred 
his words repeatedly in the press meeting. The cause -- jet lag, 
fatigue, or something else -- is unknown. "What's wrong with him?" 
even an Italian government official said. 
 
Nakagawa attend the press conference along with Bank of Japan 
Governor Masaaki Shirakawa and others. At one point, he cut in on a 
journalist's question to Shirakawa, saying, "What? Say it again." At 
another point, he tried to confirm the position of a reporter, 
asking him, "Where are you?" Nakagawa's awkward behavior stood out. 
 
There was a scene in which he said with difficulty: "We were ... we 
were briefed by ... briefed by the United States ... on its 
measures." 
 
22) U.S. Secretary of Treasury makes his debut on international 
stage - G-7: Held talks with finance ministers of various countries 
before meeting; Busy explaining Buy American clause, while stressing 
need to prevent protectionism 
 
NIKKEI (Page 3) (Full) 
Evening, February 14, 2009 
 
Prior to the meeting of the Group of Seven (G-7) finance ministers 
and central bankers, U.S. Secretary of the Treasury Geithner on 
February 13 vigorously met separately with the finance ministers of 
various countries at a hotel in Rome. During those meetings, 
Secretary Geithner explained how the U.S. was tackling its economic 
stimulus bill, now being deliberated by the Congress, and its 
financial stabilization package that includes purchasing soar loans 
by a government-private sector joint fund. With growing 
international concern about the stimulus package's Buy American 
clause, which mandates the use of U.S.-made products in implementing 
stimulus measures, Geithner reiterated the U.S. administration's 
stance of preventing the emergence of protectionism. 
 
The G-7 meet was the first international financial conference since 
the inauguration of the Obama administration. Secretary Geithner 
makes his debut on the international stage with this event. The 
series of meetings which included a luncheon, allowed Geithner to 
actively exchange views finance ministers of various countries on 
U.S. measures to stabilize the financial market and ways to prevent 
the emergence of protectionism. 
 
According to the U.S. Department of the Treasury, Geithner met with 
finance ministers of Japan, Germany, Britain and Russia. With the 
U.S. stimulus measures and financial stabilization in mind, he had 
intended to seek a bold action from those countries in cooperating 
with the U.S. However, following rapidly growing concern about the 
 
TOKYO 00000351  018 OF 019 
 
 
U.S. leaning toward protectionism, Geithner found himself busy 
explaining the Buy American clause. 
 
He did not speak Japanese at all during the talks with Finance 
Minister Shoichi Nakagawa. He reportedly made no special requests to 
Japan regarding the analysis of the present state of the Japanese 
economy or Japan's management of its economic policies. 
 
23) Japan-U.S. finance ministerial: Agreement on eliminating 
protectionism; Cooperation or rebuilding economies 
 
NIKKEI (Page 1) (Full) 
Evening, February 14, 2009 
 
Takeshi Kawanami, Rome 
 
Finance Minister Shoichi Nakagawa on the evening of February 13 
(early hours of the 14th, Japan time) met with U.S. Secretary of the 
Treasury Geithner ahead of the G-7 meeting. Both agreed to eliminate 
protectionist measures in global trade, which will impede free 
trade. They also took a stance of closely cooperating with each 
other to rebuild financial markets and economies, expressing a sense 
of alarm about the rapidly worsening the economic situation. 
 
This was the first direct meeting between the finance ministers of 
Japan and the U.S. since the inauguration of the U.S. Obama 
administration. During the meeting, Nakagawa, referring to a "Buy 
American" clause in the U.S. stimulus bill, pointed out, "Not only 
Japan but also other countries are worried about the proposed 
clause." He said, "We must confront protectionism with a firm 
determination, applying our self-refection on the Great Depression 
(in the 1930's)." Secretary Geithner expressed his determination to 
cooperate to eliminate protectionism, noting, "I definitely agree 
with you. President Obama shares this stance." 
 
Referring to the "Buy American" clause, Nakagawa during a press 
briefing held after the 30-minute meeting with Geithner said, "The 
secretary said that the U.S. will act in compliance with rules under 
the World Trade Organization (WTO). I would like to pay close 
attention to U.S. moves." 
 
Nakagawa explained the situation in the domestic economy, saying, 
"The economic situation in Japan is rapidly becoming severe." 
Geithner also indicated his perception of the U.S. economy: "The 
financial system is in deep trouble. The production sector is also 
deteriorating." 
 
Explaining the financial stabilization package, which incorporates 
the purchases of non-performing loans by a government-private sector 
joint fund, Geithner said, "It is important to use private sector 
know-how." He also underscored, "We will also discuss measures to 
recapitalize our financial base with an eye on 5-10 years ahead." 
 
24) Treasury Secretary Geithner makes a bittersweet debut at G-7 
meeting 
 
MAINICHI (Page 7) (Full) 
February 15, 2009 
 
Yotaro, Fujiyoshi, Rome 
 
 
TOKYO 00000351  019 OF 019 
 
 
U.S. Secretary of the Treasury Timothy Geithner attended a meeting 
of Group of Seven (G-7) finance ministers and central bank 
governors. He energetically held bilateral talks, but he was hounded 
for an explanation about protectionist moves by the U.S. Congress. 
He made a bittersweet debut on the international stage. 
 
Geithner assumed office when the administration of President Barack 
Obama was launched in January. He intended to call on the 
participants in the G-7 meeting to cooperate in containing the 
ongoing global financial, bringing in the measures to stabilize the 
U.S. financial market and the large-scale economic stimulus package 
he had announced himself as a present. 
 
However, the market responded severely to the financial 
stabilization package, criticizing it as containing few specific 
measures. In the G-7 meeting, too, French Finance and Economy 
Minister Christine Lagarde insisted: "Detailed contents and the 
timing for implementing them should be clearly mentioned in the 
package." 
 
Over the "Buy American" provision inserted in the stimulus package 
by Congress, as well, Japanese Finance Minister and State Minister 
for Financial Services Shoichi Nakagawa and others voiced concern 
when they met Geithner separately. Geithner was defensive, replying: 
"The President and I share the view that (the provision) is a 
problem." 
 
ZUMWALT