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UNCLAS SECTION 01 OF 10 TOKYO 000487 
 
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 03/05/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Ozawa in deep trouble: 
4) Top aide to Democratic Party of Japan (DPJ) President Ozawa 
arrested for taking illegal donations from shady construction 
company  (Yomiuri) 
5) Ozawa on his first secretary's arrest for accepting illegal 
donations: "No problem"  (Mainichi) 
6) Calls begin for Ozawa to resign his post as DPJ president 
(Yomiuri) 
7) DPJ in state of shock by news of Ozawa's secretary having been 
arrested to taking illegal political donations  (Sankei) 
8) Other opposition parties shaken by the arrest of Ozawa aide, may 
rethink cooperation with DPJ  (Mainichi) 
9) Ozawa's troubles may weaken calls in the Liberal Democratic Party 
to replace Prime Minister Aso, affect timing of an early dissolution 
of the Lower House  (Tokyo Shimbun) 
 
Defense and security affairs: 
10) Government ready to shoot down any rockets fired at Japan by 
North Korea  (Yomiuri) 
11) MSDF special forces unit to be dispatched on board destroyers 
for anti-piracy mission off Somalia  (Yomiuri) 
 
12) Prime Minister Aso's trip to Okinawa has been postponed 
(Mainichi) 
13) Dispatch of six SDF officers to Nepal for peacekeeping effort 
has been extended  (Yomiuri) 
 
14) Representative of families of Japanese abducted by North Korea 
calls for "dialogue" with that country to get remaining abductees 
back  (Nikkei) 
 
Economy: 
15) Revote on stimulus bills that include cash handout plan will 
occur today  (Yomiuri) 
16) JBIC to make $5 billion available as loans to Japanese companies 
doing business overseas  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun 
DPJ President Ozawa's secretary arrested on suspicion of hiding 
illegal donations made by Nishimura Construction Co. 
 
Nikkei: 
Pubic funds pumped into financial institutions around world nearing 
100 trillion yen: Losses still continuing to expand 
 
Akahata: 
Source of vitality of Japanese Communist Party, Chair Shii delivers 
speech at Foreign Correspondents' Club 
 
2) EDITORIALS 
 
Asahi: 
 
TOKYO 00000487  002 OF 010 
 
 
(1) Arrest of DPJ President Ozawa's state-funded secretary: We want 
Ozawa to provide an explanation 
(2) Global financial crisis accelerating: U.S. should not follow in 
footsteps of Japan 
 
Mainichi: 
(1) DPJ President Ozawa should clarify his responsibility 
(2) Council on assistance for reconstruction of Gaza Strip: 
Assistance should be provide in manner of meeting wishes of the 
weak 
 
Yomiuri: 
(1) Illegal donations by Nishimura Construction: DPJ President Ozawa 
should fulfill his accountability 
(2) Global stock plunges: Do the best to avert March crisis 
 
Nikkei: 
(1) Ozawa's secretary arrested over suspicion of receiving illegal 
donations: Ozawa urged to offer full account 
(2) ASEAN declaration reflects sense of alert 
 
Sankei: 
(1) Arrest over illegal donations by Nishimura Construction: Ozawa's 
responsibility is clear; Prime Minister should devote himself to 
settling pending issues 
 
Tokyo Shimbun: 
(1) Arrest of DPJ president Ozawa's state-funded secretary: Ozawa 
should give detailed explanations 
(2) Escalation of financial woes: U.S. should take thoroughgoing 
measures 
 
Akahata: 
(1) Rising Sun flag and national anthem: Go back to days when there 
was no forced exercise 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 3 
 
NIKKEI (Page 2) (Full) 
March 4, 2009 
 
09:30 
Attended a cabinet meeting in the Diet Building. 
 
10:06 
Met at the Kantei with participants in the program to invite 
Japanese leaders living in the U.S. Later, met assistant deputy 
chief cabinet secretaries Fukuda and Hayashi. 
 
12:54 
Met Foreign Minister Nakasone and Foreign Ministry's Asian and 
Oceanian Affairs Director General Saiki. 
 
13:31 
Met deputy chief cabinet secretaries Matsumoto and Konoike. 
Matsumoto stayed behind. 
 
14:45 
Attended a meeting of the Upper House Fiscal and Financial 
Committee. 
 
TOKYO 00000487  003 OF 010 
 
 
 
16:52 
Met LDP Youth Section Head Inoue at the Kantei. 
 
17:23 
Met Chief Cabinet Secretary Kawamura. Attended a meeting of the 
Council on Economic and Fiscal Policy. 
 
19:00 
Met Deputy Chief Cabinet Secretary Uruma. 
 
19:25 
Met second-term LDP lawmakers at his official residence, with 
Matsumoto. Matsumoto stayed behind. 
 
4) Ozawa's first secretary arrested on suspicion of receiving 
illegal donations from Nishimatsu; Secretary is also chief 
accountant of Ozawa's fund-management organization 
 
YOMIURI (Top play) (Excerpts) 
March 4, 2009 
 
The special investigation squad of the Tokyo District Public 
Prosecutors Office arrested yesterday Takanori Okubo, 47 -- the 
first state-funded secretary to Democratic Party of Japan President 
Ichiro Ozawa and the chief accountant of Ozawa's fund-management 
organization Rikuzankai -- on suspicion of violating the Political 
Funds Control Law in connection with a case in which Nishimatsu 
Construction Co., a second-tier general contractor headquartered in 
Tokyo's Minato Ward, made donations to lawmakers and others in the 
name of two political bodies headed by former Nishimatsu executives. 
The prosecutors' office also arrested a former Nishimatsu president, 
Mikio Kunisawa, 70, who has been indicted on violation of the 
Foreign Exchange and Foreign Trade Law, and two others on suspicion 
of violating the Political Funds Control Law. Nishimatsu's 
allegation that has come to light from the practice of bringing its 
off-the-book funds into Japan from overseas has now developed into a 
scandal involving the political community. 
 
Also arrested was Akifumi Okazaki, 67, a former Nishimatsu general 
affairs department chief. Prosecutors searched yesterday afternoon 
the office of Rikuzankai, the fund-management organization in Minato 
Ward headed by Ozawa. Okubo has denied the charges. 
 
Rikuzankai received donations from two political groups -- Shin 
Seiji Mondai Kenkyu-kai and Mirai Sangyo Kenkyu-kai -- which were 
established by Nishimatsu in 1995 and in 1998, respectively. The two 
groups headed by different former Nishimatsu executives were 
disbanded in 2006. 
 
According to what was made public, Okubo received a total of 21 
million yen in donation from the two groups between 2003 and 2006. 
He is suspected to have falsified the Rikuzankai's political funds 
reports in the knowledge that the donations were actually from 
Nishimatsu. Kunisawa and Okazaki are believed to have donated 10 
million yen to Rikuzankai in the name of Shin Seiji Mondai 
Kenkyu-kai, though the money was actually from Nishimatsu. 
 
According to persons connected to Nishimatsu, Nishimatsu employees 
and their families paid their membership fees to the two political 
organizations and the company reimbursed the fees by raising their 
bonuses. Donation recipients and the amounts of donations were 
 
TOKYO 00000487  004 OF 010 
 
 
determined by the company's management head office chief overseeing 
its general affairs and accounting departments. Such a system was 
devised by Kunisawa, who was serving as the company's management 
head office chief at the time. 
 
5) Ozawa on secretary's arrest for receiving illegal donations: 
"There is no problem" 
 
MAINICHI (Page 2) (Excerpts) 
March 4, 2009 
 
Allegations of the Democratic Party of Japan (DPJ) President Ichiro 
Ozawa's political office receiving illegal donations from Nishimatsu 
Construction Co. came to light yesterday. Ozawa appeared at party 
headquarters at 3:10 p.m., 70 minutes behind schedule. He attended 
an executive meeting that was participated by Deputy President Naoto 
Kan, Secretary General Yukio Hatoyama, Chairman of the DPJ Caucus in 
the House of Councillors Azuma Koshiishi, Diet Affairs Committee 
Chairman Kenji Yamaoka, and Policy Research Council Chairman 
Masayuki Naojima. Most of the time in the about one-hour meeting was 
spent on Ozawa's donation scandal, though other issues were also 
discussed, such as the timing for submitting a no-confidence motion 
against the cabinet and a censure motion against the prime minister. 
Ozawa reportedly said: "There is no problem at all. I have properly 
handled the money," adding: "If necessary, I myself will talk about 
this issue." 
 
In a press conference in Morioka City on January 31, Ozawa said 
about the political donations from Nishimatsu Construction Co.: "We 
have reported the full amount of donations in accordance with the 
Political Funds Control Law. If contributions themselves are found 
illegal, I would like to consider what response we should take." In 
this connection, Ozawa reportedly stated in an executive meeting 
yesterday: "I believed they were personal contributions. If they are 
not, I will return them." 
 
Around 4:20 p.m., Ozawa left party headquarters without responding 
to questions from reporters. 
 
6) Calls for Ozawa to resign as DPJ president 
 
YOMIURI (Page 1) (Full) 
March 4, 2009 
 
The first state-funded secretary of Ichiro Ozawa, leader of the main 
opposition Democratic Party of Japan (DPJ), was arrested yesterday 
on suspicion of receiving illegal corporate donations. There is a 
possibility that the arrest may develop into a question of whether 
Ozawa should step down from his post, since some DPJ lawmakers 
yesterday said that Ozawa cannot avoid political responsibility for 
the arrest of his top aide. 
 
One executive member said: "Since Ozawa has denied the allegations, 
he will not quit his post." Some DPJ members however called for 
Ozawa's voluntary resignation in order to avoid affecting the next 
House of Representatives election. 
 
Referring to political donations from the scandal-ridden Nishimatsu 
Construction Co. in a meeting yesterday of senior DPJ members, Ozawa 
said: "There is no problem. I've made clear all the money that came 
in and went out. If necessary, I will talk (about the issue)." He 
also added: "If the money was illegal, I will return it." 
 
TOKYO 00000487  005 OF 010 
 
 
 
Secretary General Yukio Hatoyama told the press corps last night in 
Tokyo: "This issue does not immediately require a judgment (Ozawa's 
resignation)." He was negative about the resignation of Ozawa from 
the DPJ presidency. 
 
The DPJ this morning will hold an emergency executive meeting at 
party headquarters where Ozawa will explain his situation. After the 
meeting, Ozawa will hold a press conference. 
 
7) Arrest of Ozawa's top aid causing angry response, anxious mood in 
DPJ 
 
SANKEI (Page 3) (Excerpts) 
March 4, 2009 
 
The arrest of the first state-funded secretary of Democratic Party 
of Japan (DPJ) President Ichiro Ozawa by prosecutors yesterday has 
been a great shock to party members. Some members are fiercely 
reacting to the arrest made at a time when the party was stepping up 
efforts in the ongoing Diet session to drive Prime Minister Taro Aso 
into a corner, aiming to grab political power in the next House of 
Representatives election. One member called the development 
"defamation of character," and another defined it as "a laid trap." 
But some members are already discussing whether Ozawa should step 
down. Internal strife over who would succeed Ozawa may be triggered 
in the party. Given that the party is somewhat "a hodge-podge 
group," as a party source said, Ozawa may have difficult time ahead 
in managing the party depending on future moves by anti-Ozawa 
members. 
 
Seeing prosecutors entering the Ozawa's office in Tokyo on a TV news 
program in the Diet Building yesterday evening, a senior DPJ member 
said, "I can't believe it!" Another mid-ranking member also 
commented: "I have yet to learn the details. I don't know what is 
going on." 
 
The DPJ has persistently been pressing Prime Minister Aso to quickly 
dissolve the Lower House. Focusing on weak public support of his 
administration in various opinion polls, the party anticipated that 
the party would be able to win a majority independently in the next 
election. There were some who raised objections to Ozawa's political 
stance and policies, but with an eye to the next Lower House 
election, the party banded together more or less. 
 
Following the arrest of Ozawa's top aide, calls for his resignation 
are rising mainly from anti-Ozawa members. To minimize the negative 
impact of the case on the next Lower House election, a junior member 
said: "(Mr. Ozawa) should be replaced by former President Katsuya 
Okada." 
 
A former party member who will run in the next election with party's 
endorsement also said: "Mr. Ozawa will have no choice but to resign. 
If no action is taken, the election will be very harsh for us," 
indicating that the change of party head will be unavoidable. 
 
Secretary General Yukio Hatoyama, however, stressed, "This issue 
will not immediately come to a judgment" of Ozawa's resignation. 
Diet Affairs Committee Chairman Kenji Yamaoka also lashed out at the 
government and the ruling camp, remarking: "Doing such a thing is a 
sign of the approaching end. They made use of political power, and 
this is an impermissible act." An aide to Ozawa emphasized: "We 
 
TOKYO 00000487  006 OF 010 
 
 
should fight resolutely. A resignation of our head in response to 
the investigation maneuvered by the government would be falling into 
the trap of the government and the ruling camp. 
 
8) Arrest of Ozawa's secretary shock other opposition parties; May 
impact on cooperative relations 
 
MAINICHI (Page 5) (Full) 
March 4, 2009 
 
Takanori Okubo, 47, the first state-funded secretary of Democratic 
Party of Japan (DPJ) President Ichiro Ozawa, was arrested yesterday 
on suspicion of violating the Political Funds Control Law. The case 
has shocked and shaken other opposition parties, as well. Three 
opposition parties -- the Japanese Communist Party (JCP), Social 
Democratic Party (SDP) and People's New Party (PNP) -- intend to 
watch how the DPJ handles the issue, while hearing Ozawa's 
explanations. However, the case will likely have some impact on 
their cooperation with the DPJ for the campaign for the next House 
of Representatives election. 
 
JCP Diet Affairs Committee Chairman Tadayoshi Kokuta said: 
"President Ozawa is accountable for the case." He then pointed out: 
"Other DPJ and Liberal Democratic Party (LDP) lawmakers received a 
large amount of donations (from Nishimatsu Construction Co.)." 
 
DPJ Secretary General Yasumasa Shigeno commented: "I want Ozawa to 
reveal the truth in order to clarify doubts." 
 
"Since the case will have a major political impact, we will watch 
what decision Ozawa will make while investigations are going on," 
said PNP Secretary General Hisaoki Kamei. 
 
9) Calls for early Diet dissolution, following arrest of DPJ 
President Ozawa's secretary: Some oppose it as too obvious behavior 
 
TOKYO SHIMBUN (Page 2) (Almost full) 
March 4, 2009 
 
Following the arrest of Democratic Party of Japan (DPJ) President 
Ichiro Ozawa's secretary, some in the ruling parties are calling for 
looking into a possibility of early dissolution of the Lower House, 
taking the advantage of the opposition party's troubles, while 
others take the stand that dissolving the Lower House now could 
backfire, as it is too obvious a behavior. Taking a breather due to 
the other side's mistake, Prime Minister is determined to make a 
decision in a cautious manner, while nailing down how the DPJ will 
respond, as well as the trend of public opinion. 
 
When asked about an impact of the arrest of Ozawa's secretary on the 
timing of Diet dissolution, Prime Minister Taro raised his voice 
with a stern look: "We are now preoccupied with economic stimulus 
measures. I am telling you that this is all we are concerned about. 
I do not think that when to dissolve has anything to do with it." 
 
The prime minister had been assuming that the earliest timing for 
Diet dissolution would be late April, when an additional economic 
stimulus package, based on the fiscal 2009 supplementary budget, 
would have been compiled. 
 
However, some ruling party members are beginning to take a view that 
calls for Diet dissolution in early April right after the enactment 
 
TOKYO 00000487  007 OF 010 
 
 
of the fiscal 2009 budget, seizing an opportunity when the DPJ is in 
turmoil, will mount. 
 
Their argument is that public support ratings for the Aso cabinet 
are hovering around the 10 PERCENT  level. Regarding approval 
ratings, too, the Liberal Democratic Party (LDP) is playing second 
fiddle to the DPJ. It is also deemed inevitable that the ruling camp 
will face an uphill fight in the upcoming Lower House election. At 
such a time, the golden opportunity brought about by a scandal 
involving the DPJ top leader should not be missed. 
 
Other observers say that pressure for moving up Diet dissolution 
will gain ground, because even if the idea of dissolving the Diet 
right after the enactment of the budget is forgone, it would still 
be advantageous to go into the election while the DPJ is in a state 
of disarray. One veteran New Komeito lawmaker predicted, "The 
timetable for the next Lower House election will be moved up." 
 
Opposition to early dissolution is also deep-rooted, because the LDP 
will not be able to gain support if it tries to use the politics and 
money issue as a campaign issue. It may only strengthen voter 
distrust in politics. 
 
A senior LDP official pointed out: "Early dissolution of the Lower 
House would trigger criticism that the investigation has been 
launched as official policy. As such, there will be no change in the 
original plan -- the Lower House will be dissolved after passage of 
the fiscal 2009 supplementary budget." A senior New Komeito official 
echoed this view, saying: "It is strange to take advantage of the 
DPJ's blunder. The ruling parties should face the election with 
policies." 
 
10) Japan to intercept N. Korean rocket as well 
 
YOMIURI (Page 4) (Full) 
March 4, 2009 
 
Concerning North Korea's ongoing moves in preparation for launching 
a ballistic missile, the government decided yesterday on a course of 
action to intercept such a projectile using a missile defense (MD) 
system should it fly across over to Japan. 
 
North Korea announced Feb. 24 that it was preparing to launch a 
rocket to deliver an experimental communications satellite that it 
called an artificial satellite. In point of fact, however, North 
Korea is believed to be preparing to launch a Taepodong-2 long-range 
ballistic missile, which has a range of 4,300-6,000 kilometers, or 
an advanced type of the Taepodong 2, at a missile site in North 
Korea's northeastern district. 
 
Defense Minister Hamada, meeting the press yesterday after a cabinet 
meeting, indicated that the government would collect intelligence 
concerning when North Korea will launch the projectile. "I don't 
know their intention, and there is no information to judge," Hamada 
said. However, Hamada referred to Japan's action to be taken when 
the projectile flies across over to Japan, saying, "Even in the case 
of a rocket, if there is a possibility of the rocket losing control 
and falling in Japan, we will take action, of course." 
 
The Self-Defense Forces Law stipulates in its Article 82-2 that "in 
the case where ballistic missiles, etc." come flying to Japan, the 
Self-Defense Forces may destroy them in the skies in order to 
 
TOKYO 00000487  008 OF 010 
 
 
prevent them from causing damage to human lives or properties. This 
is based on an amendment of July 2005 to the SDF law. The government 
indicated in its Diet reply that the "ballistic missiles, etc." 
include satellite-launching vehicles and artificial satellites. 
 
The MD system is a 'double-decker' missile intercept system. The 
Maritime Self-Defense Force's Standard Missile 3 (SM-3), a sea-based 
antiballistic missile system mounted on MSDF Aegis-equipped 
destroyers, will shoot down ballistic missiles in outer space. In 
case the SM-3 fails, the Air Self-Defense Force's Patriot Advanced 
Capability 3 (PAC-3) will intercept them in their terminal phase 
before their landing at al altitude of 10 kilometers or so. The SM-3 
is currently mounted on two MSDF Aegis destroyers, the Kongo and the 
Chokai. The PAC-3 is deployed at a total of six ASDF bases, broken 
down into four bases in the metropolitan area and two other bases in 
Hamamatsu and Gifu. 
 
So far, the MD system has not been used actually. In the past, the 
SDF has gone through three intercept tests with the MD system. The 
PAC-3 was successful in one of the three intercept tests, and the 
SM-3 also made it in a test. However, the Chokai failed to shoot 
down a mock-up missile in an SM-3 test conducted in November last 
year with the degree of difficulty raised. "Given the U.S. 
military's test results as well, the probability of successful 
intercept is considerably high," a senior Defense Ministry official 
said. "But," the official added, "it could change with various 
factors like what type of missile they will launch, where they will 
launch, and where the missile will land." 
 
11) MSDF special troops bound for Somalia waters 
 
YOMIURI (Page 2) (Full) 
March 4, 2009 
 
The Defense Ministry and the Self-Defense Forces decided yesterday 
to have the Maritime Self-Defense Force's Special Security Team 
(SST) onboard two MSDF destroyers to be sent out for an antipiracy 
mission in waters off the eastern African coast of Somalia. More 
than 10 SST members are expected to be dispatched there. They will 
be mainly in charge of using weapons for such purposes as firing 
warning shots to halt pirate ships, using 12.7mm machineguns and 
7.62mm machineguns respectively mounted on the MSDF destroyers and 
their helicopters. "We want to utilize the STT members' high-level 
shooting capability," MSDF Chief of Staff Keiji Akahoshi told a 
press conference yesterday. 
 
12) Prime minister not to visit bases during his visit to Okinawa; 
LDP fears his possible verbal gaffe 
 
MAINICHI (Page 5) (Abridged slightly) 
March 4, 2009 
 
Shinichiro Nishida, Teruhisa Mimori, Yuhiko Sakaguchi 
 
Prime Minister Taro Aso is scheduled to make a one-day trip to 
Okinawa on March 7 for the first time since assuming office. While 
in Okinawa, he is expected to exchange views with Governor Hirokazu 
Nakaima and carry out other events. Nevertheless, he is likely to 
forgo such plans as visits to Futenma Air Station in Ginowan and the 
coastal area of Camp Schwab in Nago, the planned relocation site for 
Futenma, that are now in focus regarding U.S. force realignment. The 
government seems to be backing away from the sticky issue from 
 
TOKYO 00000487  009 OF 010 
 
 
concern that a comment by the prime minister might cause confusion, 
in addition to its failure to come up with a way out of the 
relocation issue. 
 
Okinawa is demanding that the envisaged replacement facility be 
moved from Camp Schwab to an offshore area. Washington is calling 
for the relocation of the facility to Camp Schwab's coastal area, as 
was agreed upon with Tokyo. Torn between the calls of Okinawa and 
the United States, the government finds it difficult to make a new 
proposal. 
 
Under the former Fukuda administration, the Futenma relocation 
council met five times to look for a breakthrough. The council has 
never met under the current Aso administration. A lawmaker 
representing Okinawa said: "We will not let the prime minister visit 
the base. There is no gift and we fear that he might make a slip of 
the tongue." A prime ministerial aide also noted: "We have advised 
the prime minister not to say casually, 'The ocean is beautiful,' 
because such might be connected to the Futenma issue." 
 
Expectations in Okinawa are not high, either. A prefectural official 
said: "The governor ordered us to prepare basic data on bases. Other 
than that, he didn't say anything. To begin with, even if a request 
is made to Mr. Aso, nothing would happen." Okinawa apparently does 
not pin high hopes on Prime Minister Aso who is struggling with 
plummeting support ratings and a loss of momentum. 
 
Sakae Toyama of the Peace Citizens' Network conducting an anti-base 
campaign also critically said: "The Guam International Agreement has 
been concluded and there are Diet deliberations, as well. If he does 
not visit bases here, why is he going to visit Okinawa in the first 
place?" 
 
13) SDF's PKO mission in Nepal to be extended 
 
YOMIURI (Page 4) (Full) 
March 4, 2009 
 
Japan has sent six Ground Self-Defense Force members to Nepal for 
the United Nations Mission in Nepal (UNMIN) under the Law for 
Cooperation in United Nations Peacekeeping Operations or the 
so-called PKO cooperation law. In this regard, the government 
decided yesterday to extend their dispatch to Nepal for six months 
from late March to Sep. 30. The UNMIN has been conducting military 
surveillance activities in Nepal. 
 
14) Former abductee Kaoru Hasuike favors Japan using "dialogue" in 
its diplomacy toward North Korea 
 
NIKKEI (Page 2) (Full) 
March 4, 2009 
 
Kaoru Hasuike, deputy representative of the Association of Families 
of Abducted Victims, attended a meeting yesterday of the 
Parliamentarians League to Promote Normalization between Japan and 
North Korea (chaired by Taku Yamasaki). Hasuike stressed that 
"dialogue" should be promoted in Japan's foreign policy toward North 
Korea, saying: "The government needs to think about what the origin 
is of North Korea's anger and resentment toward Japan. We have 
reached an important time when a flexible response is necessary." He 
proposed the realization of an early meeting between the parents of 
Megumi Yokota and her daughter Kim Hye Gyong. 
 
TOKYO 00000487  010 OF 010 
 
 
 
15) Issuance of cash handouts to start tomorrow at earliest; Lower 
House today readopts bills related to fiscal 2008 budget 
 
YOMIURI (Page 1) (Full) 
March 4, 2009 
 
Bills related to the fiscal 2008 budget, which include the 
cash-handout program, will clear the Diet today. Following this, 
Nishiokobe Village in Hokkaido is expected to start issuing cash 
handouts on March 5, the earliest start across the nation, the 
Yomiuri Shimbun found this yesterday through a nationwide survey. 
 
The Ministry of Internal Affairs and Communications has decided to 
start delivering the money the day after the bills are passed by the 
Diet, based on the requests of local governments. According to the 
survey, three villages have requested the issuance of the cash 
handouts on March 5. Nishiokobe Villages says that it will start the 
transfer proceeding tomorrow and its residents will be able to 
receive cash by hand. There are 650 households in the village. Of 
the 650 households, 116 residents will receive the money. The 
application papers for the cash-handout program were sent on Feb. 26 
and the applications have been accepted since March 2. 
 
As to the other two villages, Kitayama Village in Wakayama 
Prefecture is scheduled to begin handing out the money in principle 
on March 6 (to 512 residents of the 264 households); and Nishimeya 
Village in Aomori Prefecture, on March 9 (to 1,595 residents of the 
537 households). 
 
16) Government to loan 5 billion dollars to JBIC 
 
YOMIURI (Page 8) (Full) 
March 4, 2009 
 
In a press conference after a cabinet meeting yesterday, State 
Minister for Economic and Fiscal Policy and Finance Minister Kaoru 
Yosano announced that the government will loan the Japan Bank for 
International Cooperation (JBIC) some of the reserve funds in the 
Foreign Exchange Fund Special Account. The government intends to 
offer about 5 billion dollars in loans to JBIC in March for overseas 
business operations by Japanese firms. 
 
Yosano emphasized the need to provide loans: "It is necessary to 
take every possible measure to facilitate financing prior to the end 
of this fiscal year, when companies will face the second hardest 
time in raising funds." This will be a provisional measure effective 
until the end of fiscal 2009. As for the amount of loans in April 
and beyond, the government will make a decision upon carefully 
looking into demand for dollar-based loans. 
 
Yosano also announced that the total amount of loans offered by the 
Development Bank of Japan to companies will be increased from the 
current 1 trillion yen to 1.5 trillion yen. To take this measure, 
the government will apply the elastic clause, which allows it to 
expand a budget amount without Diet deliberations in case of 
emergency. 
 
ZUMWALT