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UNCLAS SECTION 01 OF 12 TOKYO 000374 
 
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 2/19/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
4) Aso Cabinet support rate now at only 13 PERCENT  in Kyodo poll 
(Tokyo Shimbun) 
 
Aso diplomacy: 
5) Sakhalin-2 project set to start, with natural-gas output bound 
for Japan  (Yomiuri) 
6) Meeting with Russian President Medvedev, Prime Minister Aso 
achieves no progress on the Northern Territories entry issue, though 
talks to continue  (Tokyo Shimbun) 
7) Text of exchanges between Aso and Medvedev  (Yomiuri) 
8) Aso's weak political base hampering his diplomacy  (Yomiuri) 
 
Politics and the budget: 
9) Ruling camp hopeful the fiscal 2009 budget bill will pass the 
Lower House prior to Prime Minister Aso's U.S. trip for a Feb. 24 
summit with President Obama  (Nikkei) 
10) Finance Minister Yosano at the Lower House Budget Committee 
worries whether the economy will be able to pull out of its deep 
slump  (Nikkei) 
11) Yosano will only hold two cabinet portfolios until the budget is 
passed  (Nikkei) 
12) Yosano will skip the ASEAN plus three meeting of finance 
ministers  (Asahi) 
 
Politics in disarray: 
13) At least 30 prefectural chapters of the LDP will go along with 
Aso at the helm in the upcoming Lower House election  (Asahi) 
14) But an increasing number of junior to mid-level LDP lawmakers do 
not want to go into the next election under Prime Minister Aso 
(Asahi) 
15) Former Prime Minister Koizumi in angry statement says he will 
absent himself should there be a Lower House override vote on the 
cash-handout package  (Yomiuri) 
16) LDP's Koichi Kato, a former friend of Koizumi, urges party 
members to distance themselves from the former prime minister's 
rebellious stand  (Asahi) 
17) Four opposition parties decide to pursue Aso's responsibility 
for appointing Shoichi Nakagawa, who has just resigned his finance 
minister's seat in disgrace  (Yomiuri) 
 
18) Whether the U.S' Big 3 automakers restructure or collapse will 
have a major impact on Japanese parts makers  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Local LDP executives found reluctantly supporting Aso in survey 
 
Mainichi: 
Clinical training period for new doctors may be shortened to a year 
from two years 
 
Yomiuri: 
Compulsory curricula for doctor training to be halved 
 
TOKYO 00000374  002 OF 012 
 
 
 
Nikkei: 
Housing plan could help up to 9 million households under U.S. 
measure 
 
Sankei: 
Spring labor-management wage negotiations start; Toyota management 
plans no pay-scale increase; Lowering wages a real possibility 
 
Tokyo Shimbun: 
Fixed asset taxes on 79 Kampo no Yado inns totaled 85.6 billion yen, 
seven times the book value 
 
Akahata: 
Prime minister held responsible for appointing Nakagawa, defending 
him, and Diet in turmoil 
 
2) EDITORIALS 
 
Asahi: 
(1) Japan-Russia summit: Maximize the opportunity 
(2) Trial of Pol Pot's torture begins: A big step toward national 
reconciliation 
 
Mainichi: 
(1) Japan-Russia summit: What does "creative approach" mean? 
(2) Explanation necessary about why Yosano has to concurrently serve 
as finance minister 
 
Yomiuri: 
(1) Japan-Russia summit: Set the stage for advancing territorial 
talks 
(2) Will U.S. President offer additional support to automakers' 
rebuilding plans? 
 
Nikkei: 
(1) Big Three's rebuilding efforts still in turmoil 
(2) What is creative approach for Japan and Russia? 
 
Sankei: 
(1) Aso-Medvedev talks: Return of four islands must remain as 
national principle 
(2) Truth about Kampo no Yado inn bidding process must be uncovered 
 
Tokyo Shimbun: 
(1) Wage hike demand in recession carries significance 
(2) Koto Ward murder trial: Consideration must be given to feelings 
of victim's family 
 
Akahata: 
(1) Education Rebuilding Council report: Change necessary over 
structural reform 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 18 
 
NIKKEI (Page 2) (Full) 
February 19, 2009 
 
07:21 
Left Haneda on ANA airplane. 
 
TOKYO 00000374  003 OF 012 
 
 
 
Morning 
 
(local time) 
Arrived at Yuzhno-Sakhalinsk airport in Russia. 
 
Arrived at Pacific Plaza Hotel in Yuzhno-Sakhalinsk City. 
 
Held meeting with Russia President Medvedev at Sakhalin Oblast 
Government Hall. 
 
Afternoon 
Attended opening ceremony for Russia's liquefied natural gas 
production plant in Prigorodnoye. Inspected LNG carrier. 
 
Evening 
Departed Yuzhno-Sakhalinsk on ANA airplane. 
 
18:20 
Arrived at Haneda. 
 
18:54 
Singed in at Imperial Palace to report his return. 
 
19:11 
Met with Chief Cabinet Secretary Kawamura at his official resident. 
 
 
4) Poll: Aso cabinet's support rate at 13 PERCENT 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
February 19, 2009 
 
The rate of public support for Prime Minister Taro Aso and his 
cabinet dropped 4.7 points from January to 13.4 PERCENT  in a 
telephone-based spot nationwide public opinion survey conducted by 
Kyodo News on Feb. 17-18. The figure is the second lowest level, 
following the all-time low of 6.5 PERCENT  for the Mori cabinet that 
stepped down in 2001. The nonsupport rate was 76.6 PERCENT , jumping 
5.7 points in only 10 days from the last poll. The support rate has 
fallen at an accelerated pace, and the Aso cabinet appears to be in 
its last stage. 
 
In the survey, respondents were asked when they would like the House 
of Representatives to be dissolved for a general election. To this 
question, the answer "right away" accounted for 32.0 PERCENT , and 
"around April after the budget for fiscal 2009 clears the Diet" was 
at 38.8 PERCENT . As seen from these figures, a total of 70.8 
PERCENT  want the Diet dissolved by April, up from 62.3 PERCENT  in 
the last poll. 
 
Asked about the desirable form of government, 53.4 PERCENT  chose a 
coalition government centering on the leading opposition Democratic 
Party of Japan (Minshuto), with 28.1 PERCENT  picking a coalition 
government centering on the ruling Liberal Democratic Party. In the 
public preference of political parties for proportional 
representation in the next election for the House of 
Representatives, the DPJ scored 40.2 PERCENT , followed by the LDP 
at 23.9 PERCENT . In the breakdown of public support for political 
parties as well, the DPJ stood at 33.6 PERCENT , with the LDP at 
27.2 PERCENT . 
 
 
TOKYO 00000374  004 OF 012 
 
 
Respondents were further asked to choose between Prime Minister Aso 
and DPJ President Ichiro Ozawa as more appropriate for prime 
minister. In this public choice, Ozawa marked 46.4 PERCENT , with 
Aso at 20.4 PERCENT . Ozawa outdistanced Aso with the widest gap 
under the Aso government. 
 
In the breakdown of public support for other political parties, the 
New Komeito was at 3.5 PERCENT , the Japanese Communist Party at 2.8 
PERCENT , the Social Democratic Party at 3.0 PERCENT , the Reform 
Club at 0.1 PERCENT , and "none" at 25.7 PERCENT . The New Party 
Nippon gained no support from respondents. 
 
5) Russian Sakhalin-2 plant starts operation for Japan-bound LNG 
 
YOMIURI (Page 1) (Full) 
February 19, 2009 
 
Yuzhno-Sakhalinsk, Daisuke Segawa 
 
With the start of operations of the Sakhalin-2 oil and natural gas 
exploration project off Sakhalin in the Russian Far East on February 
18, Russia's first ever liquefied natural gas (LNG) production has 
moved into full swing. Approximately 5 million tons, 50 PERCENT  of 
the annual output of 9.6 million tons, are bound for Japanese power 
and gas companies, such as TEPCO. The Sakhalin-2 project will serve 
as a new supply source of LNG, demand for which is expected to grow. 
Exports to Japan will likely start in March. 
 
Prime Minister Aso and Russian President Medvedev attended a 
ceremony to start the operation held the same day in Prigorodnoye in 
southern Sakhalin. Aso stated, "It was Japan's long-cherished dream 
(to procure energy from a neighboring country)." Medvedev also 
underscored his view that the nation's LNG production will 
contribute to global-scale energy security. 
 
6) Japan-Russia summit 
 
TOKYO SHIMBUN (Page 1) (Slightly abridged) 
February 19, 2009 
 
(Kei Sato, Yuzhno-Sakhalinsk) 
 
Prime Minister urged Russian President Dmitry Medvedev in their 
meeting on Feb. 18 to resolve the issue in which Japan canceled 
humanitarian aid as Russia has demanded that Japanese government 
officials on a humanitarian mission submit disembarkation cards 
before landing on one of the four northern islands. But he failed to 
solicit more than an agreement to continue working-level 
negotiations. 
 
Aso brought up this issue, with this remark: "This project is 
important from the viewpoint of fostering mutual trust. I want to 
confirm both countries' willingness to continue this project." 
Medvedev just replied: "I appreciate Japan's humanitarian 
assistance. I will instruct our officials to try to resolve the 
issue in a friendly and constructive manner." 
 
Japan is aiming to settle the issue by May, when a visa-free 
exchange visit program will be launched between Japanese citizens 
and current Russian residents of the Northern Territories.  If 
negotiations are prolonged, however, territorial negotiations will 
be inevitably affected. 
 
TOKYO 00000374  005 OF 012 
 
 
 
In their meeting, both leaders agreed to speed up negotiations on 
the territorial dispute "with a new, creative and flexible approach 
during our generation." Medvedev proposed "a creative approach." 
 
The two leaders agreed to realize a visit to Japan by Prime Minister 
Vladimir Putin. They also decided to push ahead with coordination 
for them to hold bilateral meetings at the second financial summit 
in London on April 2 and at Group of Eight (G-8) Summit in Italy in 
July. 
 
7) Gist of Japan-Russia summit 
 
YOMIURI (Page 4) (Full) 
February 19, 2009 
 
(Northern Territories issue) 
 
Prime Minister Aso: We should aim at reaching a final conclusion 
with a new, creative and flexible approach, based on our past 
agreements and documents. 
 
President Medvedev: We must continue efforts to reach an agreement 
acceptable to both sides. 
 
Both leaders: We will instruct our working-level officials to speed 
up practical work so that we can resolve the dispute during our 
generation. 
 
(E/D card issue) 
 
Aso: The (humanitarian aid) project is important for the two 
countries to build their mutual confidence. I would like to confirm 
that the project will be continued. 
 
Medvedev: I appreciate Japan's aid. I am determined to resolve the 
issue in a friendly and constructive manner. 
 
Both leaders: We will order our working-level officials to 
accelerate practical work. 
 
(Global economy) 
 
Aso: I am concerned about a rise of protectionism, against the 
backdrop of the ongoing global economic recession. I am apprehensive 
about the Russian government's plan to raise tariffs. 
 
Medvedev: We will make efforts in accordance with the agreement 
reached in the financial summit, but there will be exceptions. 
 
(Bilateral relations) 
 
Both leaders: Both countries will carry out coordination to set 
bilateral meetings on the sidelines of the financial summit in April 
and the Group of Eight (G-8) Summit in July, with the aim of 
reaching an agreement during Prime Minister Putin's visit to Japan 
in May. 
 
 (Far East Siberia development) 
 
Both leaders: The two countries will discuss new possible joint 
projects in the natural gas field. 
 
TOKYO 00000374  006 OF 012 
 
 
 
(Japan-Russia nuclear power cooperation accord) 
 
Both leaders: We welcome progress in negotiations and will 
accelerate them. 
 
8) Aso's weak political base might negatively affect Japan's 
position on diplomatic front 
 
YOMIURI (Page 4) (Full) 
February 19, 2009 
 
The key to the survivability of Prime Minister Aso may lie in 
whether he will be able to display his presence on the diplomatic 
front. Major events are on his schedule, including a summit meeting 
with U.S. President Obama, but some observers predict that as the 
Aso administration become politically weaker, its diplomacy, too, is 
likely to become weaker. 
 
Speaking before reporters after he held talks with Russian President 
Dmitry Medvedev on Feb. 18, Aso expressed his resolve to make 
efforts to resolve the Northern Territories issue. "It is 
undesirable to leave the issue completely up to bureaucrats," he 
said. 
 
Following his meeting with visiting U.S. Secretary of State Hillary 
Clinton on the night of the 17th, a number of important diplomatic 
events are on Aso's schedule, including a meeting with U.S. 
President Barack Obama on Feb. 24, a financial summit, a visit to 
Japan by Russian Prime Minister Vladimir Putin, and a Group of Eight 
(G-8) summit. An aide to the prime minister said: "I hope he will be 
able to turn the tables through these events." 
 
Clinton's Japan visit was a good opportunity for Aso to give a boost 
to his administration. His meeting with Obama set for the 24th will 
make Aso the first foreign leader to be invited by President Obama 
to the White House. However, this has been sullied already by 
Finance Minister Nakagawa's resignation for his awkward behavior 
during a press conference after the Group of Seven finance ministers 
and central bank governors' meeting. 
 
Chief Cabinet Secretary Kawamura had to say in a press briefing 
yesterday: "It was regrettable from the viewpoint of our national 
interests." 
 
In the upcoming diplomatic events, economic issues will surely take 
center stage. Some persons take the view that the change of an 
economic minister at this juncture is not a good message. 
 
Further, former Prime Minister Koizumi, who is currently visiting 
Russia, told reporters in Moscow on the 18th: "In diplomacy, it is 
very important for a nation to keep its political base stable. The 
political turmoil in Japan must be quelled as soon as possible." He 
thus expressed his concern that Prime Minister Aso might be treated 
lightly at diplomatic venues. 
 
As suggested by Koizumi, the Aso administration has already met 
disappointing views from overseas. 
 
A correspondent who accompanied Secretary Clinton on her visit to 
Japan asked a senior official of the U.S. State Department: "Why has 
the Obama administration invited Aso? His administration has been 
 
TOKYO 00000374  007 OF 012 
 
 
suffering low public support rates and is unlikely to last much 
longer." The senior official replied: "The president has invited him 
not personally but as the Japanese prime minister. It is not related 
to his popularity." But the Washington Post also reported that 
Clinton's meeting with Democratic Party of Japan President Ozawa 
reflected Washington's intention to diversify its risks. 
 
9) Focus to be on whether Lower House committee can take vote on 
fiscal 2009 budget before Aso visits Washington 
 
NIKKEI (Page 2) (Full) 
February 19, 2009 
 
Whether the House of Representatives Budget Committee will be able 
to take a vote on the fiscal 2009 budget before Feb. 24, when Prime 
Minister Taro Aso meets in Washington with President Barack Obama, 
has emerged as a new issue in maneuvering between the ruling and 
opposition parties. 
 
The Budget Committee decided yesterday on such schedules as holding 
on Feb. 19-20 a sub-committee session and intensive deliberations on 
the Aso cabinet policy line, as well as on social security policy. 
Aso will today apologize for the resignation of Finance Minister 
Shoichi Nakagawa. The ruling parties tried to pass the budget on the 
20th in the Lower House, but they had to change their original plan 
due to Nakagawa's resignation. 
 
The ruling Liberal Democratic Party (LDP) and New Komeito, the LDP's 
junior coalition partner, confirmed yesterday in a meeting of senior 
party members that they would make efforts for an early passage of 
the budget. The two parties also decided that instead of forging a 
vote before the end of the week, they would put the budget to a vote 
on the morning of the 23rd and have it passed by the Lower House in 
the afternoon,. 
 
A senior LDP member underscored: "It will be difficult to take a 
vote on the 20th, but we will get the budget (through the Lower 
House) on the 23rd." A senior New Komeito member added: "I hope the 
budget will be adopted (in the Lower House) by the night of the 23rd 
at the latest." 
 
As for the reason the ruling coalition is dwelling on passing the 
fiscal 2009 budget before Aso departs for Washington, a senior 
ruling coalition member close to the prime minister pointed out: 
"Under the current economic situation, it is not appropriate for the 
prime minister to meet with the President with empty hands." It is 
certain that if Aso holds a summit meeting before the budget is 
passed, his administration would suffer another blow. Such could 
result in exposing Aso's lack of leadership in Japan to the Obama 
administration. After the passage of the budget, the government and 
ruling coalition are looking into compiling additional economic 
stimulus measures. In order to improve the atmosphere conducive to 
accepting an additional economic stimulus package, Aso wants to pass 
the budget in the Lower House before he leaves for the United 
States. 
 
However, if the ruling camp rams the budget through the Lower House, 
chaos will reign in the Diet. The ruling coalition leaders intend to 
make a final decision on the timing of vote-taking after carefully 
watching what action the opposition bloc will take and public 
opinion. 
 
 
TOKYO 00000374  008 OF 012 
 
 
The opposition camp is expected to try to prevent the bill from 
clearing the Lower House before Aso visits the United States. There 
is a hard-line argument in the opposition that if the ruling camp 
takes a vote on the 23rd, the opposition will prevent it even by 
such means as submitting resolutions to dismiss relevant chairmen. 
 
10) Finance Minister Yosano concerned that economy will not come up 
from bottom 
 
NIKKEI (Page 2) (Full) 
February 19, 2009 
 
When asked in a Lower House Budget committee session yesterday about 
the gross domestic product (GDP) plummeting at annualized pace of 
12.7 percent in the October-December period, Kaoru Yosano, finance 
minister, state minister for financial services and for economic and 
fiscal policy, expressed strong concern, saying: "If this situation 
continues further, the Japanese economy not be able to come up from 
the bottom (soko-nuki)." 
 
Four opposition parties, including the Democratic Party of Japan, 
did not attend the session, demanding that Prime Minister Taro Aso 
show up in the session to explain his view for his responsibility of 
appointing Shoichi Nakagawa as finance minister. 
 
Yosano stressed in the session: 
 
"I will do my best to bring about economic recovery. In order to 
protect the livelihoods of the people by implementing necessary 
measures, an early enactment of the budget is important more than 
anything." 
 
He indicated that he would give top priority to an early passage of 
the fiscal 2009 budget and related bills. He also said that the 
basic direction toward sound public finance, as well as efforts for 
boost the economy should be maintained. Aso was replying to 
questions by Takashi Mitsubayashi, a member of the ruling Liberal 
Democratic Party (LDP). 
 
Chief Cabinet Secretary Takeo Kawamura apologized for the 
resignation of Finance Minister Shoichi Nakagawa, saying: "It is 
very regrettable that the minister in charge was replaced while the 
Diet is deliberating the budget." 
 
11) Chief cabinet secretary: Yosano will concurrently serve in three 
cabinet posts until budget clears Diet 
 
NIKKEI (Page 2) (Full) 
February 19, 2009 
 
At a press conference yesterday afternoon, Chief Cabinet Secretary 
Takeo Kawamura indicated that Prime Minister Taro Aso will let Kaoru 
Yosano serve in three cabinet posts -- finance minister, state 
minister for financial services, and state minister for economic and 
fiscal policy -- until the fiscal 2009 budget and related bills are 
enacted. He stated: "I understand that he will serve in the three 
posts for the time being." At a press conference yesterday morning, 
he stated that Yosano would serve in those posts until the budget 
and related bills cleared the Lower House. 
 
12) ASEAN plus 3: Yosano to stay away; Government to consider 
relieving him of burden of serving in two posts 
 
TOKYO 00000374  009 OF 012 
 
 
 
ASAHI (Page 4) (Abridged slightly) 
February 19, 2009 
 
State Minister for Fiscal, Financial and Economic Policy Yosano has 
decided to absent himself from a foreign ministerial meeting of the 
Association of Southeast Asian Nations, Japan, China and South Korea 
(ASEAN plus 3) to be held in Phuket, Thailand on February 22. The 
reason is because he will be occupied with Diet deliberations, 
according to the Finance Ministry. International conferences and 
Diet deliberations are expected to continue. It appears difficult 
for Yosano to serve in the three ministerial posts concurrently. 
 
For this reason, Chief Cabinet Secretary Kawamura during a press 
conference on the 18th indicated the idea of relieving Yosano of the 
burden of serving in three posts and appointing his successor. The 
most likely plan is that Yosano will serve as finance minister and 
state minister for financial services with his present post as state 
minister for economic and fiscal policy succeeded by somebody else. 
 
Participating countries will report the situation of their efforts 
to address the global financial crisis at the upcoming ASEAN plus 3. 
They will also confer on how to stem the impact of the crisis on the 
region. Finance Ministry Parliamentary Secretary Suematsu (Upper 
House member) will attend the meeting on behalf of Yosano. 
 
Yosano during a press briefing on the 17th said, "I must attend 
various international conferences as long as that will not disrupt 
the management of the Diet." 
 
Since the ASEAN plus 3 will take place soon after former Finance 
Minister Nakagawa committed a blunder during a press conference 
after a meeting of the Group of Seven finance ministers and central 
bank governors (G-7), the Japanese finance minister's words and 
action at an international conference is bound to draw attention of 
foreign countries. It is necessary for Japan to restore the lost 
confidence. However, it has already missed the chance. 
 
13) LDP's local chapters reluctantly support Aso 
 
ASAHI (Top play) (Abridged) 
February 19, 2009 
 
The Asahi Shimbun interviewed the ruling Liberal Democratic Party's 
local chapter executives in the nation's 47 prefectures, including 
Tokyo and Hokkaido, and asked them if they thought the LDP should 
fight in the next general election under Prime Minister Aso or 
otherwise under a new president and prime minister. In response to 
this question, 30 LDP prefectural federations, or about two thirds, 
preferred "Prime Minister Aso" in their answers. However, their 
support for Aso was reluctant. "It's the same whoever may become 
prime minister," said one local LDP leader in Tochigi Prefecture. 
The LDP's local organizations, which elected Aso in the party's 
presidential race with their overwhelming support for him, seem to 
be at a dead end because they cannot dump him even though they may 
want to. 
 
Shoichi Nakagawa, a 'sworn' friend of Aso, has now quit as finance 
minister. His resignation is spurring LDP lawmakers to distance 
themselves from Aso. Given such a situation, the Asahi Shimbun 
interviewed the LDP's prefectural federation secretaries general in 
principle. 
 
TOKYO 00000374  010 OF 012 
 
 
 
As a reason for preferring Aso, there was also a positive view in 
Tottori Prefecture, saying, "He is turning his eyes to localities as 
well, and he will prove his worth from now." However, other local 
leaders voiced reluctant views like "it's the same even if he's 
replaced now" (Kumamoto Prefecture) and "there's no other 
appropriate person to represent the party" (Nagano Prefecture). Aso 
is the third politician to have become prime minister without a 
general election. For this reason, there was also a view in 
Hiroshima Prefecture, saying, "If we have a fourth one, the image 
will go from bad to worse." 
 
14) Junior and mid-level LDP lawmakers: "We can't fight in the next 
election under Prime Minister Aso" 
 
ASAHI (Page 4) (Full) 
February 19, 2009 
 
Approximately ten junior and mid-level lawmakers from the ruling 
Liberal Democratic Party (LDP) who are critical of Prime Minister 
Aso held a meeting yesterday in Tokyo. One by one, the attending 
lawmakers expressed the view that they could not fight in the next 
election under Prime Minister Aso. According to one attendee, 
although all agreed to back the prime minister until the fiscal 2009 
budget is passed, many expressed the view that they did want him to 
be at the head of the party going into the next election, given his 
extraordinary lack of leadership. 
 
One participant told the press corps, "In the current wretched 
state, even if we give it our utmost effort, we feel it would all be 
useless." Another lawmaker said, "We probably have no choice but to 
move to back another person for prime minister." 
 
15) If second vote is to be taken on cash handout plan, Koizumi will 
absent himself from plenary session 
 
YOMIURI (Page 2) (Full) 
February 19, 2009 
 
Ken Makino, Moscow 
 
Former Prime Minister Junichiro Koizumi, who is visiting Russia, 
held a press conference in Moscow on Feb. 18. In it, touching on the 
option of the House of Representatives taking a second vote on bills 
related to the fiscal 2008 second supplementary budget, including a 
cash handout program, Koizumi said: "If the ruling bloc is to use a 
two-third majority in a plenary session, I will not attend it." 
Although Koizumi had shown a cautious stance about readopting the 
related bills, this is the first time that he has made it clear that 
he would absent himself from the session. 
 
Koizumi also said: "Prime Minister (Aso) and the party leadership do 
not understand well how the ruling parties won the seats they have 
today. Discussions should be carried out on whether there are other 
ways to spend 2 trillion yen of tax money and on differing views 
between the House of Representatives and the House of Councillors." 
The comment is designed to discourage (Prime Minister Aso) from 
easily using the two-thirds majority the ruling bloc won in the 2005 
Lower House election when Koizumi was serving as prime minister. 
 
Koizumi also indicated that he will not withdraw his plan to resign 
from politics. 
 
TOKYO 00000374  011 OF 012 
 
 
 
16) Former friend Koichi Kato urges LDP members to distance 
themselves from former Prime Minister Koizumi 
 
ASAHI (Page 4) (Excerpt) 
February 19, 2009 
 
Liberal Democratic Party (LDP) lawmaker Koichi Kato, a former party 
secretary general, in a recorded interview yesterday for Asahi 
NewsStar, commented on former Secretary General Hidenao Nakagawa 
having distanced himself from Prime Minister Aso: "He must not opt 
for a neo-liberal economy by always teaming together with former 
Prime Minister Koizumi." He criticized Koizumi and as a senior 
lawmaker who had ended his friendship with him, advised others to 
distance themselves from Koizumi. 
 
17) Nakagawa resignation: Four opposition parties to pursue prime 
minister's responsibility for appointing him as cabinet minister; 
DPJ to demand resignation en masse 
 
YOMIURI (Page 2) (Full) 
February 19, 2009 
 
In the wake of resignation of Shoichi Nakagawa as finance minister 
and financial services minister, the Diet affairs committee chiefs 
of four opposition parties -- the Democratic Party of Japan, 
Japanese Communist Party, Social Democratic Party, and the People's 
New Party -- met yesterday and agreed to intensely pursue Prime 
Minister Taro Aso's responsibility for appointing Nakagawa as a 
cabinet minister. 
 
The House of Representatives Budget Committee decided at its 
directors meeting yesterday to thoroughly discuss the matter on Feb. 
¶19. The DPJ plans to demand that the cabinet resign en masse by 
letting Deputy President Naoto Kan take the floor as the questioner. 
DPJ President Ichiro Ozawa held a press conference in Toyama City 
yesterday in which he said: "(Taro Aso) is no longer functioning as 
prime minister." 
 
Chief Cabinet Secretary Takeo Kawamura again apologized before the 
Lower House Budget Committee yesterday afternoon, saying: "We are 
deeply sorry for the changeover of the finance minister amid 
deliberations on bills related to the fiscal 2008 second 
supplementary budget and the fiscal 2009 budget." 
 
18) Will Big Three undergo restructuring or go under? Collapse of 
even one company will deal a blow to Japan's parts manufacturers 
 
YOMIURI (Page 3) (Excerpts) 
February 29, 2009 
 
General Motors and Chrysler on February 17 (early hours of the 18th, 
Japan time) submitted management reconstruction plans to the 
government. The management of both companies has further 
deteriorated due to the sluggish brand-new car market. The two 
companies made a request for fresh loans only two months after 
bridging loans by the U.S. government started. However, it is not 
known whether the two companies can be resuscitated, even if 
additional financial assistance is extended. President Obama will 
likely be pressed to make a difficult decision. 
 
If GM and Chrysler proceed with production cuts and plant closures, 
 
TOKYO 00000374  012 OF 012 
 
 
according to their management reconstruction plans, it will also 
deal a heavy blow to Japanese parts manufacturers operating in North 
America. Provided that even one company among the Big Three goes 
bankrupt, Japanese parts manufacturers' business performances would 
worsen. It will also have an adverse impact on Japanese automakers 
with the procurement of parts from manufacturers under the umbrella 
of the Big Three becoming stagnant, because they have increased the 
ratio of locally procured parts. There is also concern that it would 
lead to an increase in joblessness and a chain of bankruptcies of 
subcontractor parts manufacturers. 
 
According to the Japan Auto Parts Industries Association, 
approximately 300 Japanese auto parts manufacturers are operating in 
the U.S. Those companies' sales in North America stood at 3.4815 
trillion yen in fiscal 2007. Of that amount, the proportion of sales 
to the Big Three stood at between 12 PERCENT -13 PERCENT  on 
average. Such a ratio of some companies is reportedly even close to 
50 PERCENT . 
 
GM and Chrysler accounted for about 6 PERCENT  or 230 billion yen in 
the sales of Denso, the largest auto parts manufacturer. The company 
mainly sold them car air-conditioners and engine-related parts. 
Denso's sales to the two companies suffered a year-on-year drop of 
30 PERCENT  in the April-December period in 2008. A further decline 
is estimated for the January-March quarter in fiscal 2009. 
 
Many Japanese car makers, such as Honda Motors, which relies on the 
North American market for 50 PERCENT  of its sales on a consolidated 
basis, Toyota Motors -- between 30 PERCENT -40 PERCENT , and Nissan 
Motors, have boosted their business performances as the U.S. market 
expands. All the more for that reason, they are strongly concerned 
that the management crisis facing the Big Three could protract their 
sluggish sales performances. 
 
An executive of Toyota Motors noted, "(If even one of the Big Three 
goes under,) it will deal a blow not only to the auto industry but 
also to all industries, such as electronics and raw material 
manufacturers." He stressed that the restructuring of the Big Three 
is indispensable for the recovery of both domestic and foreign 
economies. 
 
ZUMWALT