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UNCLAS SECTION 01 OF 13 TOKYO 000363 
 
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 2/18/09 
 
Index: 
 
Secretary Clinton's visit to Japan: 
1) Secretary Clinton, Prime Minister Aso in meeting agree to 
cooperate on the economic crisis  (Asahi) 
2) As the U.S. reviews its Afghanistan strategy, Secretary Clinton 
seeks Japan's participation and lauds its civilian assistance for 
Afghan reconstruction  (Mainichi) 
3) Interviewed by Yomiuri, Secretary Clinton stresses the importance 
of the Six-Party Talks to address the North Korean missile problem 
(Yomiuri) 
4) Interviewed by the Asahi, Clinton says the U.S. will seek talks 
with China on nuclear-arms reduction  (Asahi) 
5) Democratic Party of Japan President Ozawa tells Secretary Clinton 
in meeting that he seeks an equal partnership with the U.S. and aims 
to win the election  (Sankei) 
6) Text of Clinton-Aso meeting  (Mainichi) 
7) Text of Clinton-Ozawa meeting  (Mainichi) 
8) Text of Clinton meeting with Defense Minister Hamada  (Mainichi) 
 
9) Agreement on an Aso-Obama summit on Feb. 24, requiring the prime 
minister to work around the tight Diet schedule  (Nikkei) 
10) Secretary Clinton meets the families of Japanese abducted by 
North Korea   (Sankei) 
11) Clinton has a happy reunion with the Empress  (Yomiuri) 
 
12) Secretary impresses Tokyo University students in town meeting 
(Asahi) 
13) If Japan cannot implement what it promises to the U.S., another 
period of "Japan passing" might begin says Washington observer 
(Sankei) 
 
Political meltdown: 
14) Finance Minister Shoichi Nakagawa resigns over G-7 incident, 
succeeded by Yosano, but Aso government may be on verge of collapse 
(Asahi) 
15) State of budget deliberations in disarray following sudden 
resignation of Nakagawa  (Mainichi) 
16) Aso administration is in great danger with resignation in 
disgrace of key cabinet minister  (Tokyo Shimbun) 
17) Ruling parties plan to pursue Aso for responsibility in choosing 
Nakagawa for cabinet  (Nikkei) 
 
Articles: 
 
1) Aso, Clinton agree on cooperation in addressing economic crisis 
 
ASAHI (Page 1) (Abridged slightly) 
February 18, 2009 
 
Prime Minister Taro Aso held talks with U.S. Secretary of State 
Hillary Clinton at his office on the night of Feb. 17 in which they 
confirmed that Aso would meet with President Barack Obama in 
Washington on Feb. 24. The two leaders agreed to strengthen the 
Japan-U.S. alliance and combine efforts in addressing the global 
financial crisis. They also agreed to work together to make North 
Korea abandon its nuclear programs and settle the abduction issue. 
 
The prime minister welcomed Secretary Clinton's visit to Japan, 
saying: "It shows that the Obama administration attaches importance 
to Japan." Aso also expressed his gratitude for the invitation from 
President Obama. Secretary Clinton replied: "The President wants to 
 
TOKYO 00000363  002 OF 013 
 
 
hold talks with the prime minister as early as possible." 
 
The prime minister also asked for U.S. cooperation for an early 
settlement of the abduction issue, while indicating that the 
abduction, nuclear and missile issues must be settled 
comprehensively. Meanwhile, Clinton, touching on her meeting with 
families of abduction victims, played up the importance of 
cooperation between Japan and the United States. Expressing hopes 
that China will play a constructive role in the international 
community, the two leaders shared the view that getting China 
involved in the global warming issue would benefit both Japan and 
the United States. 
 
After the meeting with Aso, Secretary Clinton held talks with 
Democratic Party of Japan President Ichiro Ozawa at a Tokyo hotel. 
It is rare for a U.S. Secretary of State to meet with a Japanese 
opposition party leader. According to Ozawa, he indicated that in 
the Japan-U.S. alliance, one side should not be subservient to the 
other. He also said that he told Secretary Clinton: "China will 
become a major challenge for Japan and the United States. How to 
guide China's democratization to a soft landing will be the most 
difficult task for the two countries." In response, Clinton said: 
"That's an extremely important insight. A triangular 
U.S.-Japan-China relationship is important." 
 
Clinton also met with Defense Minister Yasukazu Hamada yesterday. 
Highly evaluating the decision to dispatch the Maritime Self-Defense 
Force on an anti-piracy mission in waters off Somalia, the Secretary 
also requested Japan to consider protecting vessels that are not 
Japanese. She also called for Japan's active participation in UN 
peacekeeping operations. 
 
2) Clinton asks Japan to join U.S. Afghan strategy review 
 
MAINICHI (Page 6) (Full) 
February 18, 2009 
 
U.S. Secretary of State Clinton in a joint press conference with 
Foreign Minister Hirofumi Nakasone yesterday revealed that she 
expressed her appreciation for Japan's contribution to Afghanistan's 
reconstruction and asked Japan to participate in the process of 
reviewing the United States' Afghan strategy. Clinton is expected to 
make a similar request during her visit to South Korea from 
tomorrow. This can be taken as a move symbolizing the Obama 
administration's diplomatic stance of dealing with pending issues 
through strengthened cooperation with allies. 
 
In her press remarks, Clinton said she would like to express 
appreciation to Japan for its reconstruction assistance. Citing 
school and airport construction, she said the United States wants to 
consider Japan's experience. 
 
The Obama administration is now reviewing the United States' Afghan 
strategy with former senior Central Intelligence Agency (CIA) 
officials, who are experts on Southwest Asian or other regional 
affairs. The United States will ask its allies to provide military 
backing and contribute to developing Afghanistan's military and 
police and providing reconstruction and civilian assistance. 
 
Meanwhile, U.S. Special Envoy to Afghanistan and Pakistan Holbrook 
has already obtained an agreement from Afghanistan and Pakistan as 
well to participate in this review process. According to a U.S. 
 
TOKYO 00000363  003 OF 013 
 
 
State Department official, Clinton has told Nakasone that the U.S. 
government would like to finish reviewing the strategy by the end of 
March at the latest. 
 
3) North Korean missile issue should be part of six-party talks, 
says Clinton in interview with Yomiuri Shimbun 
 
YOMIURI (Page 1) (Abridged slightly) 
February 18, 2009 
 
U.S. Secretary of State Hillary Clinton, 61, gave an exclusive 
interview to the Yomiuri Shimbun at a Tokyo hotel on Feb. 17. In it, 
the Secretary strongly criticized North Korea's preparations for 
launching a Taepodong 2 long-range ballistic missile (with a range 
of 4,300 - 6,000 kilometers) as "provocative and unhelpful." She 
also made it clear that the United States would deter any attacks on 
Japan, saying, "We will defend Japan." 
 
Secretary Clinton articulately said: "We will continue to seek ways 
to discourage them from launching a missile for any purpose." She 
also expressed her eagerness to discuss the missile issue, which has 
not been taken up in the six party talks, in the multilateral 
framework to settle North Korea-related issues comprehensively, 
including the abduction issue. 
 
Referring to the fact that the main opposition Democratic Party of 
Japan is calling for a review of a bilateral agreement on the 
realignment of U.S. forces in Japan, the Secretary said: "A 
responsible nation follows the agreements that have been entered 
into." She thus called for the implementation of the agreement and 
applied pressure on the DPJ's call. 
 
As for Japan-U.S. relations, she categorically said: "It is hard to 
imagine succeeding without a strong U.S.-Japan partnership." At the 
same time, the Secretary presented a policy course to maintain 
cooperative relations even if there is change in Japanese politics, 
saying: "It is for the Japanese people to determine by whom they 
wish to be governed. We look forward to deepening and broadening our 
partnership, no matter what the political future might be." 
 
Further, referring to Japan as a "responsible actor in the world," 
Secretary Clinton expressed her expectations for Japan to work 
together in addressing such international issues as climate change 
and the Middle East situation. She also demonstrated a stance to 
jointly deal with the financial crisis, saying: "We have some very 
significant responsibilities to try to work our way through this 
current economic crisis." 
 
4) U.S. will discuss nuclear arms reduction with China, says Clinton 
in interview with Asahi Shimbun 
 
ASAHI (Page 1) (Abridged slightly) 
February 18, 2009 
 
U.S. Secretary of State Hillary Clinton, who is visiting Japan, gave 
an interview to Asahi Shimbun Editor-in-Chief Yoichi Funabashi at a 
Tokyo hotel on Feb. 17. Regarding the nuclear nonproliferation and 
arms control issues, the Secretary revealed a plan to hold talks 
with China to find out during her upcoming visit to Beijing if it is 
possible to enter into continued negotiations, like those with the 
Soviet Union during the Cold War. She said: "There is an important 
role China must play." 
 
TOKYO 00000363  004 OF 013 
 
 
 
She indicated that nuclear nonproliferation and arms reduction were 
issues she was planning to discuss with China during her visit to 
Beijing. She also explained that Washington thinks that such talks 
could lead to a continued negotiation process, like the one between 
the United States and Soviet Union in the past. 
 
The United States is already in accord with Russia to establish a 
new nuclear disarmament pact replacing the Strategic Arms Reduction 
Talks 1 (START 1) treaty that will expire at the end of this year. 
The Obama administration has made it clear that it would aim at the 
ratification of the Comprehensive Nuclear-Test Ban Treaty (CTBT), in 
addition to the envisaged new treaty. Secretary Clinton apparently 
made these comments in an effort to urge China to join a series of 
efforts to reduce the level of dependence on nuclear weapons. 
 
She also indicated that Japan, the United States, and China should 
proactively address global warming, describing the approach as an 
idea worth exploring. With the establishment of trilateral summit 
talks in mind, the Secretary also showed strong interest in building 
cooperative relations benefiting each country in such policy 
challenges as improving energy efficiency and developing 
clean-energy technologies. 
 
As for the North Korean nuclear issue, the Secretary explained a 
plan to pursue a direct dialogue with Pyongyang at the same time 
based on the notion that the six-party talks are a beneficial venue 
for negotiations. 
 
Regarding the increasingly uncertain Japanese political conditions 
in the wake of Shoichi Nakagawa's announcement to resign as finance 
minister, Secretary Clinton showed consideration to the Aso 
administration by simply saying: "The alliance is firm and will 
continue regardless of who is in power in the United States and 
Japan." 
 
5) Unusual meeting: "We will win the election," says Ozawa 
 
SANKEI (Page 5) (Full) 
February 18, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa on the 
evening of February 17 met with visiting U.S. Secretary of State 
Clinton for about 30 minutes at a Tokyo hotel. Both agreed that 
Japan and the U.S. make efforts to strengthen their bilateral 
alliance. The Ozawa side had indicated an outlook before the meeting 
that it would be just to introduce each other, avoiding in-depth 
discussion. However, it is viewed that Ozawa concentrated his 
efforts on wiping way anxieties felt by the U.S. over himself, by 
revealing his pet argument, including his view on the China issue. 
 
Ozawa during the meeting said, "I am one of those who advocated from 
the beginning that the Japan-U.S. alliance is important above all 
things." He also pointed out: "Our alliance should not be a 
relationship in which one side is subservient to the other. Our 
relationship must be such in which the two countries exchange views 
and abide by decisions reached through discussion." 
 
Regarding the U.S. force realignment, Ozawa said: "It is important 
for our two countries to discuss a global strategy as real allies 
and deal with individual issues, based on agreements. It has been a 
problem that our country's government has been avoiding giving its 
 
TOKYO 00000363  005 OF 013 
 
 
views in a proper way." 
 
Furthermore, regarding China, he stated: "Market fundamentalism and 
communism are incompatible in principle. Discrepancies are bound to 
surface. The major theme for Japan, the U.S. and the world is how 
China will make a soft landing in its democratization. A 
communist-dictated China is troublesome." In response, Clinton said, 
"It is a very important insight. The U.S. will increasingly commit 
itself to China on the political, business and military fronts. The 
Japan-U.S.-China triangle is a very important relationship." 
 
Lastly, Ozawa conveyed his resolve to take over the reins of 
government, saying, "We will do our utmost to win the election so 
that I can continue to have talks like this with the secretary of 
state." 
 
It is unusual for a U.S. secretary of state to hold separate talks 
with an opposition party leader. According to a person who was 
present at the meeting, the amount of time in which Ozawa spoke was 
longer than the length of Clinton's remarks. 
 
Ozawa also touched on the North Korea issue, noting, "I do not think 
that North Korea will abandon the nuclear card." 
 
Ozawa had earlier rebuffed a meeting with Clinton. However, it was 
realized with Diet Affairs Committee Chairman Kenji Yamaoka, his 
close aide, working for its materialization. 
 
6) Clinton-Aso meeting 
 
MAINICHI (Page 6) (Full) 
February 18, 2009 
 
Japan-U.S. alliance 
 
Prime Minister Taro Aso: Your visit to Japan this time demonstrates 
the Obama administration's stance of placing emphasis on Japan, and 
I welcome it. Our bilateral alliance with the United States is the 
axle of Japan's diplomacy, and I would like to further strengthen 
the alliance, while joining hands with President Obama and you. 
 
Secretary of State Clinton: Our bilateral alliance is a cornerstone 
for peace and prosperity in the Asia-Pacific region. We want to 
strengthen the alliance further. 
 
Japan-U.S. summit 
 
Aso: I appreciate President Obama's invitation (to the White House 
for a Feb. 24 summit meeting). Let me ask you to tell the president 
that after going through domestic procedures, I will visit the 
United States and then I would like to hold a summit meeting with 
him. 
 
Clinton: The president also would like to meet with the prime 
minister as soon as possible. 
 
Regional situation 
 
Aso: It is in the interests of both Japan and the United States, and 
it is also the responsibility of our countries to see that universal 
values take root in the Asia-Pacific region and to build a free, 
prosperous, stable, and foreseeable region. 
 
TOKYO 00000363  006 OF 013 
 
 
 
Aso, Clinton: We confirm that Japan and the United States, based on 
their alliance, will deal with various challenges in East Asia. We 
share expectations of China to play a constructive role in the 
international community. 
 
North Korea problem 
 
Aso: It's important to work out a comprehensive solution to the 
various pending issues like abductions, nuclear programs, and 
missiles. I would like to have the continued cooperation of the 
United States in order to resolve the abduction issue at an early 
date. 
 
Clinton: I met with the families of abductees. Bilateral cooperation 
is important. 
 
Sakhalin visit 
 
Aso: I will visit Sakhalin, Russia, on February 18 to hold a 
Japan-Russia summit meeting. 
 
Climate change 
 
Aso, Clinton: We agree to cooperate on such global issues as climate 
change, energy resources, and international healthcare. We will 
closely consult on climate change in particular. 
 
7) Clinton-Ozawa meeting 
 
MAINICHI (Page 6) (Full) 
February 18, 2009 
 
Democratic Party of Japan (Minshuto) President Ichiro Ozawa: I'd 
like to say thank you for visiting Japan first. I appreciate you for 
considering my schedule so that I can meet with you during an hour 
like this. 
 
Secretary of State Clinton: Next year will mark the 50th anniversary 
of our bilateral alliance. The alliance between Japan and the United 
States has brought good results in all senses not only for our two 
countries but also for Asia. In the next 50 years as well, let us 
make efforts to further solidify our bilateral alliance. 
 
Ozawa: I totally agree. Concerning what I've recently said, I had 
advice from an American friend, and I was told that I am being 
misunderstood. However, I am one of those who have said that the 
Japan-U.S. alliance is of paramount importance. But an alliance must 
not be a relationship for one country to be subordinate to the other 
country. We should exchange views about our respective standpoints 
and discuss and reach a better conclusion. We should follow that 
conclusion and we should have an equal partnership. That can be 
called an alliance for the first time. 
 
Clinton: It's important to utilize our bilateral alliance and 
friendship in various areas, based on our partnership. Today, we 
signed the agreement to relocate the U.S. Marines in Okinawa to 
Guam. We can make further contributions to the modernization of 
troops in the Pacific region and the maintenance of deterrence in 
the region and the defense of Japan. 
 
Ozawa: Concerning the realignment of U.S. forces in Japan, Japan and 
 
TOKYO 00000363  007 OF 013 
 
 
the United States should discuss global strategies, and based on a 
bilateral agreement, the two countries should deal with each issue. 
That's important. The Japanese government has failed to insist on 
its standpoint. That's where the problem is. I think that the reason 
for that is because the Japanese people have not been prepared to 
fulfill responsibilities while sharing roles even in the face of 
difficulties. It does not seem to me that North Korea will give up 
its nuclear card. China is a still bigger problem. China has 
introduced market mechanisms for its growth. That's significant. 
However, market mechanism and communism are incompatible with each 
other like a double-edged sword. Contradictions will come out. China 
is the biggest problem in the world. How to democratize China is the 
biggest task for Japan and the United States. 
 
Clinton: I think that's a very important insight. The triangular 
relationship of Japan, the United States, and China is important. 
I'd like to continue to talk with you, Mr. Ozawa. 
 
Ozawa: We will do our best in the next election so I can talk with 
you and other U.S. leaders. 
 
8) Clinton-Hamada meeting 
 
MAINICHI (Page 6) (Full) 
February 18, 2009 
 
U.S. Secretary of State Clinton: I strongly believe that the 
alliance between our two countries is one of the most important 
relationships in the world. I'd like to make efforts to move the 
alliance forward. 
 
Defense Minister Yasukazu Hamada: The realignment of U.S. forces in 
Japan is now in a new phase. This is a good opportunity to review 
the significance of the bilateral alliance in its entirety and the 
way it should be. 
 
Clinton: Japan is playing very important roles. The first role is 
providing assistance to Iraq. The second one is refueling in the 
Indian Ocean concerning Afghanistan, and the third one is sending 
out ships (to waters off the eastern African coast of Somalia) 
against pirates. I think the Diet will discuss antipiracy measures, 
but we'd appreciate it if Japan will also consider being able to 
protect other countries' ships during emergencies. 
 
Hamada: I'm aware of that issue. We're looking into the feasibility 
of enacting a new law. 
 
9) Japan, U.S. agree to hold bilateral summit on the 24th: Diet 
schedule adjustment to require juggling act; Nakagawa's resignation 
unanticipated 
 
NIKKEI (Page 3) (Full) 
February 18, 2009 
 
The Japan-U.S. foreign ministerial meeting, held on February 17, 
produced a major result with agreement reached to hold the first 
summit meeting between Prime Minister Taro Aso and U.S. President 
Obama on February 24. In view of Diet deliberations, however, 
adjusting the Diet schedule might require a juggling act. 
 
According to the Japanese side, the policy direction for holding the 
summit on the 24 was finally set on the 16th, the day before the 
 
TOKYO 00000363  008 OF 013 
 
 
foreign ministerial meeting. The Japanese side had been searching 
for a timetable for holding the summit before the financial summit 
on April 2. Nobody at first had expected that the bilateral summit 
would be realized for later this month. 
 
Late February is a delicate timing in relation to the fiscal 2009 
budget bill. The Group of Seven finance ministers and central 
bankers meeting (G-7) has just agreed to disburse funds ahead of 
schedule to address the global recession. The prime minister's side 
wants to appeal his stance of tackling an economic stimulus package, 
by having the budget bill approved by the Lower House before his 
U.S. visit. 
 
The ruling parties had originally aimed at having the bill approved 
by the Lower House on the 20th. After being sounded out about 
holding a summit meeting by the U.S., the prime minister presumably 
determined that it would be possible for the bill to clear the Lower 
House by the 23rd, while turning down demands for the resignation of 
Nakagawa. 
 
Nakagawa's resignation must have been beyond the scope of the 
assumption for the prime minister. Nakagawa announced his 
resignation at a press conference around the same time when the 
foreign ministerial meeting, where the date for the summit was set, 
ended. Nakagawa's announcement seemed to be a bolt out of the blue 
for the U.S. side, as well. Some in the government and the ruling 
parties take the view that if Nakagawa had announced his resignation 
a day earlier, it would be an open question whether the decision to 
hold the summit on the 24th would have been reached or not. 
 
Since Nakagawa quit on the 17th, a situation in which the submission 
of a censure motion stalls Diet deliberations completely has been 
avoided. However, whether the budget bill can secure approval of the 
Lower House is still unclear. It is possible for the ruling 
party-dominated Lower House to railroad the bill, citing the 
importance of the economic stimulus package. However, should that 
occur, the opposition parties are bound to object even more 
strongly. 
 
For the U.S., the 24th is the key day, because President Obama will 
deliver a speech at a joint plenary meeting of the House of 
Representatives and the Senate on his future policy management. The 
prime minister will likely be forced to make an ultimate decision 
with U.S. side's consideration going straight to his heart. 
 
10) Secretary Clinton to abductees' families: Abduction issue a 
priority for U.S. 
 
SANKEI (Page 2) (Full) 
February 18, 2009 
 
The family members of Japanese abducted by North Korea met yesterday 
with visiting Secretary of State Hillary Clinton at the U.S. Embassy 
in Minato Ward, Tokyo. Those who met Clinton include Shigeo Iizuka, 
brother of abductee Yaeko Taguchi and representative of the 
Association of the Families of Victims Kidnapped by North Korea, and 
Shigeru and Sakie Yokota, the parents of abductee Megumi Yokota. 
 
According to the association, Clinton told the three family 
representatives that she understands that the abduction issue should 
be a priority for the United States, as well, and that she would 
like to look into how pressure should be applied to resolve the 
 
TOKYO 00000363  009 OF 013 
 
 
issue. When the abductees' families called for listing North Korea 
again as a state sponsor of terrorism, Clinton was quoted as saying: 
"I will take action after fully looking into it." 
 
During the 30-minute meeting, Clinton showed strong interest in the 
abduction issue, saying: "North Korea is an inhumane country, with 
conditions there cannot be understood. I have long been concerned 
about this issue and have studied it from various aspects." 
 
Showing the pictures of Taguchi and Megumi, Iizuka and the Yokotas 
stressed that U.S. cooperation was indispensable. Clinton reportedly 
encouraged them by saying: "I believe it has been difficult for you 
to have carried out activities for more than 30 years. But I want 
you to continue to do so." 
 
11) Empress delighted to meet Clinton again 
 
YOMIURI (Page 30) (Full) 
February 18, 2009 
 
U.S. Secretary of State Hillary Clinton was invited to a tea party 
yesterday by the Empress at the Imperial Palace. The Empress greeted 
Clinton at the entrance soon before 3:00 p.m.  The two women 
embraced and they took each other's hands. The Empress was pleased 
to meet Clinton again. 
 
According to the Imperial Household Agency, the Empress and Clinton 
have met three times so far, including one when the Emperor and 
Empress visited the United States in 1994. 
 
Clinton had requested a meeting with the Empress during her visit to 
Japan and she was invited to the palace in her capacity as a former 
first lady, the agency said. 
 
12) Secretary Clinton holds town meeting at Tokyo University: The 
U.S., which did not used to listen, has changed and is listening 
now 
 
ASAHI (Page 8) (Excerpt) 
February 18, 2009 
 
U.S. Secretary of State Clinton, who is visiting Japan for the first 
time since assuming her office, gave a speech last evening at a town 
meeting with students and others at Tokyo University. She stressed 
that she was taking a stance of giving priority to dialogue, saying: 
"Until recently, the United States did not easily turn its ears to 
differing views of the peoples of the world. The Obama 
administration is changing all that." 
 
After she spoke for about 15 minutes to the assembly of 
approximately 270 students and others, she took questions from eight 
students. 
 
13) Concerns in Washington about Tokyo's policy implementation 
capability; Will there be another "Japan passing" phase? 
 
SANKEI (Page 6) (Excerpt) 
February 18, 2009 
 
Takashi Arimoto in Washington 
 
During her meetings with the foreign minister and others on Feb. 17, 
 
TOKYO 00000363  010 OF 013 
 
 
Secretary of State Clinton stressed the importance of even closer 
cooperation between Japan and United States. For the Obama 
administration, which has criticized the Bush administration for its 
unilateralism and vows to cooperate with every country on such 
global issues as climate change and the financial crisis, the 
presence of Japan as its ally is indispensable. However, with Japan 
now unable to swiftly respond due to its political turmoil, there 
are voices of concern already rising on the U.S. side, with one U.S. 
government responsible official saying, "'Japan passing' may become 
inevitable." 
 
14) Nakagawa's resignation accelerating departure from Aso in ruling 
camp; Resignation after passage of budget bills now seems possible 
 
ASAHI (Top Play) (Excerpts) 
February 18, 2009 
 
Finance Minister and State Minister for Financial Services Shoichi 
Nakagawa submitted a letter of resignation to Prime Minister Aso 
last night to take responsibility for causing controversy by 
appearing to be dazed during a press conference after the Group of 
Seven (G-7) finance ministers and central bank governors' meeting in 
Rome. Shortly after noon yesterday, he announced his intent to 
resign after the fiscal 2009 budget and related bills pass through 
the House of Representatives. But since the opposition camp later 
submitted a censure motion against Nakagawa to the House of 
Councillors in the afternoon, Nakagawa decided to resign immediately 
in order to avoid Diet deliberations from falling into chaos. State 
Minister in Charge of Economic and Fiscal Policy Kaoru Yosano will 
take over Nakagawa's post. A series of blunders by the Aso 
administration has accelerated the exodus away from Aso in the 
ruling camp. The possibility of his resignation after the budget 
bills clear the Diet is now taking on a reality touch. 
 
Aso administration already in collapse process 
 
Although Prime Minister Aso instructed him to stay on, Nakagawa, 
Aso's close friend, was driven to step down. This fact shows that 
the Aso administration is losing his leadership and has begun to 
slowly collapse. Many members of the ruling parties now think they 
will not be able to win the next general election under Prime 
Minister Aso. Under this situation, there is a strong possibility 
that Aso will step down after the fiscal 2009 budget and related 
bills are enacted in the Diet. 
 
Aso appointed Nakagawa as finance minister to have him engage in 
tackling the prime minister's biggest challenge of unifying the 
fiscal and financial systems, but many critics were questioning his 
credentials to assume the post from the beginning because he is 
notorious for turning nasty when drunk. Although Nakagawa was "a 
mental support" for the prime minister, as said by his aide, the 
appointment of his friend has ended in failure. 
 
It is unprecedented for a finance minister to resign while budget 
bills are under deliberation. In this case, it was because of his 
questionable behavior in a press conference. What is worse, Aso 
announced he would keep Nakagawa in his post, but the following day, 
Nakagawa announce his intention to step down. As for the timing, as 
well, "only after the budget bills clear the Lower House" was 
changed to "immediately." This signifies that the prime minister has 
completely lost his grip on the ruling parties. 
 
 
TOKYO 00000363  011 OF 013 
 
 
Aso is scheduled to meet U.S. President Barack Obama on the 24th and 
also to hold talks with Russian President Dmitry Medvedev on the 
18th. But it is unlikely that Aso, who is losing political ground, 
will be able to turn the tables through these diplomatic events. He 
is considering a plan to compile a supplementary budget bill after 
the fiscal 2009 budget is enacted, but even bills related to the 
fiscal 2008 second extra budget are still on the table. 
 
His remark, "I did not support the postal privatization plan," 
further weakened his survivability. The dominant view in the ruling 
camp is that Nakagawa's resignation just after this controversy has 
completely upset the prime minister's scenario of retaining 
leadership by recovering his popularity and growing the economy. 
Given that there is no potential successor to Aso, many LDP members 
have so far refrained from calling for a change of prime minister. 
But attention in the party has now shifted to when Aso will resign. 
 
15) Nakagawa's resignation: When deliberations on budget will start 
unclear 
 
MAINICHI (Page 5) (Excerpts) 
February 18, 2009 
 
The Diet was out of session yesterday due to the resignation of 
Shoichi Nakagawa, finance minister and state minister for financial 
services. With Nakagawa's resignation, a minimum condition has been 
prepared for the opposition camp to return to the Diet. However, it 
is true that the uncertainty is looming over how deliberations on 
the state budget will turn out. It is uncertain whether the fiscal 
2009 will quickly clear the Lower House and whether the second 
supplementary budget for fiscal 2008 will be enacted. 
 
The Lower House Budget Committee yesterday took a break from meeting 
immediately after the opening of the session because the opposition 
parties did not attend it. Therefore, Prime Minister Taro Aso and 
Nakagawa were forced to stand by in the committee's reception room 
for about two and a half hours intermittently. Media cameras 
continued focusing on boot-faced Aso and Nakagawa. 
 
"I apologize for acting disgracefully. I also apologize for failing 
to convey before the press conference (at noon I announced my 
resignation)," Nakagawa said and bowed on his knees a meeting of the 
budget committee directors, which started at 2:00 p.m. After 
Nakagawa had walked out of the session, the ruling coalition called 
for the initiation of deliberations, but Yukio Edano of the main 
opposition Democratic Party of Japan (DPJ) talked fast and furious: 
"The finance minister is a person who presented the budget and who 
will implement it. Since he has decided to quit his post, he should 
not have made responsible replies." 
 
What made the matter complicated was that Nakagawa had said at the 
press conference at noon that he would resign after the fiscal 2009 
budget and related bills cleared the Lower House. Nakagawa's 
statement gave the opposition an excuse to boycott deliberations. 
 
16) Aso administration facing most serious crisis 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 18, 2009 
 
Shoichi Nakagawa, Prime Minister Taro Aso's close friend and a 
pivotal member of his cabinet, resigned as finance minister 
 
TOKYO 00000363  012 OF 013 
 
 
yesterday. His resignation has driven the Aso administration into 
its most serious crisis since it was inauguration. Fearing that the 
Nakagawa debacle might act as the trigger to bring down the 
administration, which has been suffering low popularity, many 
members in the ruling camp have begun to openly call for replacing 
Prime Minister Aso. 
 
Liberal Democratic Party (LDP) Diet Affairs Committee Chairman 
Tadamori Oshima said of the finance minister's resignation 
yesterday, "There will be damage," but many party members do not 
take such an optimistic view, probably focusing on Aso's mistake 
this time, too. After the questionable press conference, the 
dominant view in the party was that the prime minister should let 
Nakagawa out of the post immediately, but Aso decided yesterday to 
retain Nakagawa in his post for a while. 
 
On the 17th, Nakagawa announced he would step down after the fiscal 
2009 budget and related bills clear the House of Representatives but 
submitted a letter of resignation under heavy fire last night. 
 
Repeated changes in Aso's remarks on such issues as cash handouts 
and a review of the postal privatization plan disappointed the 
public, weakening his survivability. 
 
Nakagawa's resignation under such a severe environment for the Aso 
administration is upsetting many LDP members. In particular, some 
mid-ranking and junior members have severely criticized the prime 
minister. Voices questioning his appointment of Nakagawa as finance 
minister, despite his alleged alcohol problem, are growing. The 
debacle this time has made party members more concerned about the 
next general election under the Aso administration. House of 
Councillors member Ichita Yamamoto commented: "Most of those around 
me have said they would not be able to win the next election under 
the current situation." A mid-ranking lawmaker said: "It is 
impossible for the prime minister with public support at the 10 
PERCENT  level to dissolve the House of Representatives." An 
atmosphere hoping for a change of prime minister is permeating in 
the LDP. 
 
Junior and mid-ranking party members insisted yesterday on the need 
to review the party rules on a public election system for the 
premiership to facilitate junior members to field their candidacies 
in an LDP presidential election. As it stands, moves with an eye on 
the post of Aso's successor are gathering momentum. 
 
17) Opposition parties to pursue prime minister's responsibility for 
appointing Shoichi Nakagawa as finance minister 
 
NIKKEI (Page 2) (Full) 
February 2, 2009 
 
The opposition camp intends to call for intense Diet deliberations 
on such issues as the fiscal 2009 budget bill and related bills. In 
the deliberations, it will harshly pursue Prime Minister Taro Aso's 
responsibility for appointing Shoichi Nakagawa as finance minister, 
who has stepped down over the his behavior at the G-7 meeting. The 
opposition parties intend to prevent passage of the budget and 
related bills prior to the Japan-U.S. summit slated for the 24th. 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama on 
the evening of February 17 told reporters in Tokyo, "The prime 
minister bears heavy responsibility for appointing (Mr. Nakagawa)." 
 
TOKYO 00000363  013 OF 013 
 
 
He played up the DPJ's achievement, saying, "We gave the prime 
minister our final word when we submitted a censure motion against 
the finance minister." He then revealed the party's decision to 
retract the censure motion on the 18th. 
 
Tadayoshi Ichida, head of the Secretariat of the Japanese Communist 
Party (JCP), during a press conference criticized Nakagawa, "It is 
only natural for him to resign. He does not know when to give up." 
Social Democratic Party President Mizuho Fukushima said, "The Aso 
cabinet should dissolve the Lower House and go to the people." 
People's New Party Secretary General Hisaoki Kamei pointed out in 
the Diet building, "His resignation is a natural consequence." 
 
The opposition parties had indicated a stance of boycotting a Lower 
House Budget Committee meeting on the 18th. However, following the 
resignation of Nakagawa, they have decided to attend it. They intend 
to pursue State Minister for Economic and Fiscal Policy Kaoru 
Yosano, who is doubling as finance minister having succeeded 
Nakagawa, with Hatoyama saying, "I wonder Mr. Yosano can physically 
manage it if he serves concurrently in three posts." 
 
ZUMWALT