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UNCLAS SECTION 01 OF 12 TOKYO 000532 
 
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 03/10/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Ozawa in trouble: 
4) Fuji Sankei poll shows DPJ head Ozawa's popularity is now shaky 
with almost 50 PERCENT  of the public calling on him to resign his 
post  (Sankei) 
5) Calls continue in the Democratic Party of Japan (DPJ) for Ozawa 
to quit  (Sankei) 
6) Some in DPJ worried that party might split apart if Ozawa resigns 
 (Tokyo Shimbun) 
 
Aso not out of trouble: 
7) Mood in the Liberal Democratic Party (LDP) to dump Prime Minister 
Aso before the election has retreated but remains latent  (Asahi) 
8) Deputy Chief Cabinet Secretary Uruma denies remark about LDP not 
being prosecuted in political scandal, but Prime Minister Aso still 
taking the flak  (Asahi) 
 
Nishimatsu Construction scandal: 
9) Ozawa's arrested aide may have been involved in bid-rigging 
scheme over public works project with firm that provided illegal 
political donations  (Asahi) 
10) Nishimatsu used employees' names and ATM machines to funnel 
illegal donations to LDP's Nikai  (Yomiuri) 
11) Nikai says I am innocent  (Asahi) 
 
North Korea problem: 
12) Senior Defense Ministry official: Only natural for Japan to 
prevent impact of North Korean-launched missile, but if it is a 
long-range type, interception difficult  (Nikkei) 
13) Japan, Republic of Korea lined up on abduction issue  (Nikkei) 
 
14) Government sending fact-finding mission to East Timor in 
connection with potential assistance projects  (Asahi) 
15) Nakasone think-tank RIPS proposes a common currency for Asia 
(Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Ozawa's secretary suspected of involvement in bid-rigging 
 
Mainichi: 
LDP, New Komeito compile draft bill to prevent abuse of disabled 
 
Yomiuri: 
Nishimatsu pays money to Nikai's fundraising body via ATMs using 
employees' names 
 
Nikkei: 
Private brand market growing rapidly 
 
Sankei: 
Nikkei index drops to 26-year low 
 
Tokyo Shimbun: 
 
TOKYO 00000532  002 OF 012 
 
 
Surplus of special account for agriculture, forestry and fisheries 
used for different projects 
 
Akahata: 
JCP urges government to correct school expense subsidy cut 
 
2) EDITORIALS 
 
Asahi: 
(1) DPJ must overcome the public's distrust 
(2) 50th anniversary of Tibet -- the nation cannot be controlled by 
power, money 
 
Mainichi: 
(1) Deputy Chief Cabinet Secretary Uruma's remark outrageous 
(2) WBC: Let us spread attraction of baseball around the world 
 
Yomiuri: 
(1) Pressure on Ozawa builds over donations 
(2) U.S., Russian foreign ministers express intention of nuclear 
disarmament, but ... 
 
Nikkei: 
(1) DPJ, LDP urged to reset politics 
(2) Is easing of regulations a mistake? 
 
Sankei: 
(1) Voters suspicious about DPJ President Ozawa 
(2) Uruma's remark suggests doubts in neutrality and fairness of 
prosecutors' investigations 
 
Tokyo Shimbun: 
(1) LDP, DPJ should not underestimate seriousness of public distrust 
in politics 
(2) Is Deputy Chief Cabinet Secretary Uruma suitable for top 
bureaucratic post? 
 
Akahata: 
(1) Nishimatsu donation scandal: Thoroughly pursue allegations of 
politicians 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 9 
 
NIKKEI (Page 2) (Full) 
March 10, 2010 
 
08:55 
Met with Deputy Chief Cabinet Secretary Matsumoto at the Kantei. 
 
10:00 
Upper House Budget Committee meeting. 
 
12:05 
Government-ruling parties liaison council meeting at the Kantei. 
 
13:00 
Upper House Budget Committee meeting. 
 
16:25 
Arrived at the Kantei. 
 
TOKYO 00000532  003 OF 012 
 
 
 
17:04 
LDP executive meeting in the Diet building. 
 
18:51 
Summit meeting with Prime Minister Gusmao of Democratic Republic of 
Timor-Leste at the Kantei. Then dinner hosted by the prime 
minister. 
 
20:56 
Met with Deputy Chief Cabinet Secretary Hayashi at the official 
residence. 
 
4) Poll: Ozawa popularity jolted 
 
SANKEI (Page 1) (Abridged) 
March 10, 2009 
 
The Sankei Shimbun conducted a joint public opinion survey with Fuji 
News Network (FNN) on March 7-8, in which about 80 PERCENT  said 
Democratic Party of Japan (Minshuto) President Ichiro Ozawa has yet 
to fulfill his accountability for his fund-managing body's murky 
political funds from a second-tier construction company. In the 
poll, respondents were asked if they thought Ozawa's recent account 
to the press was convincing. In response to this question, "yes" 
accounted for 18.2 PERCENT . Respondents were also asked if they 
thought Ozawa should resign as DPJ president. To this question, 
"yes" added up to 47.4 PERCENT . The DPJ has been aiming for a 
change of government with public support and the party has been 
expected to take office shortly, so the public's breakaway from the 
DPJ is fatal to the party. The Ozawa myth, which has grown with the 
DPJ's landslide victory in the 2007 election for the House of 
Councillors, is now being suddenly jolted. 
 
"Which one do you think can be trustworthier between Prime Minister 
Aso and DPJ President Ozawa?" In response to this question, the 
proportion of those who picked Ozawa dropped 12.4 points from the 
last survey taken Feb. 21-22. As seen from this result, Ozawa is 
obviously down in public ratings. However, this trend has expanded 
to public ratings for political parties. The support rate for the 
Aso cabinet was 17.0 PERCENT , still remaining low. In the breakdown 
of public support for political parties, however, the ruling Liberal 
Democratic Party tallied 26.6 PERCENT  and edged out the DPJ, which 
dropped 2 points to 23.9 PERCENT . Respondents were further asked 
which political party they would vote for in their proportional 
representation blocs in the next election for the House of 
Representatives. In this public preference, the DPJ dropped 6.6 
points. 
 
Among those with no particular party affiliation or the so-called 
floating voters, a total of 39.2 PERCENT  answered in the last 
survey that they would vote for the DPJ. In the latest survey, 
however, the figure sharply dropped 9.2 points to 30.0 PERCENT . The 
floating voters were most sensitive to the Ozawa shock. 
 
5) Calls for President Ozawa's resignation rising in DPJ 
 
SANKEI (Page 5) (Excerpts) 
March 10, 2009 
 
Lawmakers close to Democratic Party of Japan (DPJ) President Ichiro 
Ozawa have begun to suggest that Ozawa voluntarily step down over a 
 
TOKYO 00000532  004 OF 012 
 
 
case of illegal donations received by his fund-management 
organization in violation of the Political Funds Control Law. But 
Ozawa, who has insisted on his innocence, is expected to indicate in 
a party executive meeting today his intention to stay on. Attention 
is being focused on what responses party members would make. 
 
Appearing on a TV program yesterday, House of Representatives member 
Shu Watanabe of the DPJ indicated that Ozawa could announce his 
resignation if the occasion requires it, as a result of the ongoing 
investigation by the special investigation squad of the Tokyo 
District Public Prosecutors Office. Watanabe said: "I trust what Mr. 
Ozawa has said, but if the situation takes a new turn, Mr. Ozawa may 
have to make a decision." Secretary General Yukio Hatoyama indicated 
a similar view on the 8th, but yesterday, he said: "It is most 
desirable for the party to unite in overcoming the current difficult 
situation." 
 
Yesterday, Ozawa spent the day at a Tokyo hotel and did not show up 
before reporters. An aide to Ozawa commented: "Mr. Ozawa has no 
intention to resign as party president. If he steps down now that 
the two-party system has settled in, there will be no future 
prospects." 
 
It has been reported that Ozawa made a phone call to People's New 
Party Acting President Shizuka Kamei on the night of the 8th and 
expressed his anger about the fact that the public in the polls were 
saying that he should resign or that he has not fulfilled his 
accountability. 
 
On these circumstances, Kamei said in a BS news program last night: 
 
"Mr. Ozawa feels keenly that the people do not understand his 
explanations. Mr. Ozawa has confidence that he is innocent and that 
his secretary did nothing wrong. .. I think Mr. Ozawa has no 
intention to take political responsibility at the present point of 
time. ... I do not know if he would make an overall judgment as a 
politician in the future, setting aside the question of whether he 
is innocent." 
 
Given that many respondents in various opinion polls called for 
Ozawa's resignation, a senior DPJ member grumbled: "It might be 
difficult to turn the tables. If he remains as party head, based on 
the logic of Nagata-cho, there may be a heavy price for us to pay in 
the next Lower House election." 
 
6) DPJ members hesitant about urging Ozawa to step down, fearing 
party split 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 10, 2009 
 
Following the arrest of Democratic Party of Japan (DPJ) President 
Ichiro Ozawa's top aide over illegal donations by Nishimatsu 
Construction Co., party members are taking a wait-and-see attitude 
over whether to urge him to step down. Some expect he will decide on 
his own to resign as party president, but they have refrained from 
calling on him to resign, fearing that the party could split without 
Ozawa. Their indecisive attitude also reflects no prospects in sight 
for future developments in the ongoing investigation into the 
scandal. 
 
Asked about Ozawa's future course by reporters in Yamagata City 
 
TOKYO 00000532  005 OF 012 
 
 
yesterday, DPJ Secretary General Yukio Hatoyama said: "We all want 
to trust him. It is most desirable at the present stage for the 
party in unity to overcome the current difficult situation." He 
indicated a willingness to defend Ozawa, though many in public 
opinion polls called for his resignation. He then sought that the 
party stand solidly together. 
 
Party members remain unable to predict what would happen to the 
party once Ozawa is driven into resignation. One lawmaker pointed 
out: "In a party presidential election, the party might be torn 
apart. In such a case, it would become totally impossible for the 
DPJ to grab political power." If Ozawa steps down, the party could 
immediately become disrupted. 
 
The party has greatly depended on Ozawa's skills to lead the party 
to a victory in elections, as shown in the House of Councillors 
election in 2007. Ozawa has also been taking the initiative in the 
next general election campaign. Many members are feeling uneasy 
about the resignation of Ozawa at this stage. 
 
In addition to concern about the next general election, some members 
worry about the future of the joint struggle with the Social 
Democratic Party and the People's New Party in managing Diet 
business and election campaigning. A senior Upper House member said: 
"Each party has refrained from making a complaint to our party in 
part because Mr. Ozawa heads the party." 
 
In the meantime, the investigation into the political fund-raising 
scandal reportedly has extended to members of the Liberal Democratic 
Party. DPJ members harbor expectations that the headwind against 
Ozawa and the party could become less severe. A senior member said: 
"It is necessary to carefully watch such a situation. There is no 
need to urgently come up with a conclusion at the present stage." 
 
Party members want to defend the "prop and stay" of the party as a 
result of having entrusted party management entirely to Ozawa, but 
if the party overly sticks to Ozawa, it could lose public 
confidence. 
 
In a party executive meeting this morning, Ozawa will explain the 
details of the money scandal again, including the question of 
whether to resign. 
 
7) LDP policy groups weaken anti-Aso moves 
 
ASAHI (Page 4) (Full) 
March 10, 2009 
 
After the fiscal 2009 budget passed the House of Representatives, 
there has been a second "boom" of groups forming in the ruling 
Liberal Democratic Party (LDP). Probably motivated by a desire to 
take the initiative in selecting a successor to Prime Minister Taro 
Aso, anti-Aso moves seen in the first boom late last year have 
weakened. Since it is unknown how the political situation will turn 
out due to the scandal over alleged illicit political donations 
(from Nishimatsu Construction Co.), policy study groups in the LDP 
intend to watch the situation. 
 
About 70 House of Representatives members, who were elected to the 
Diet three times or less, formed a policy group, Ichinisan no kai, 
on March 4. The group confirmed that it would come up with a set of 
campaign pledges (manifesto) on its own in April for economic and 
 
TOKYO 00000532  006 OF 012 
 
 
financial revitalization and social security and to present its 
manifesto to the LDP leadership. Isshu Sugawara, an LDP deputy 
secretary general, who heads the policy group, expressed a sense of 
crisis toward the Aso administration, saying: "I don't think the 
LDP's severe situation will turn around with the setback of the 
Democratic Party of Japan (DPJ)." At the same time, he is desperate 
to dispel the group's anti-Aso image. 
 
The group of junior lawmakers to support the Koizumi 
administration's effort to implement structural reforms without 
sacred cows, formed under the administration of Prime Minister 
Junichiro Koizumi, which had been in a dormant state, resumed its 
activities on March 5. Yoshitaka Sakurada, an organizer of the 
group, said: "Our group focuses on policies, rather than the 
political situation." LDP Election Strategy Council Deputy Chairman 
Yoshihide Suga, an aide to Aso, serves as secretary general and 
Taimei Yamaguchi, as chief of secretariat. The name of the group was 
changed to the young lawmakers' group to support implementation of 
structural reforms with no sacred domains, deleting the wording the 
Koizumi administration's effort. 
 
Moreover, the volunteer group of lawmakers calling for speedy policy 
implementation, which was formed last year as a champion of anti-Aso 
forces, held a meeting on March 5. However, about 20 of the 50 
members attended the session. 
 
8) Aso retracts remarks defining media reports on Uruma comments as 
"inaccurate" 
 
ASAHI (Page 1) (Excerpts) 
March 10, 2009 
 
In a House of Councillors Budget Committee meeting yesterday 
afternoon, Prime Minister Aso retracted controversial remarks he had 
made that morning, namely, that "the comments of Deputy Chief 
Cabinet Secretary Iwao Uruma were reported inaccurately." In backing 
off his earlier claim, Aso said: "What happed was, I believe, there 
were discrepancies between what the deputy chief cabinet secretary 
recalled (what he said before reporters) and how the reporters 
received (his comments)." Uruma reportedly told reporters off 
record: "It is unlikely that the investigation into a political 
fund-raising scandal involving Nishimura Construction Co. will 
extend to members of the Liberal Democratic Party." But Uruma said 
in a press conference yesterday: "I do not recall making the 
remark." 
 
Speaking before reporters at his official residence (Kantei) last 
night, Aso retracted his claim, saying: "I did not mean that the 
media reports were erroneous." Even some members in the ruling camp 
called "thoughtless" Aso's controversial remarks in defending Uruma 
that could direct the criticism to the prime minister.  Aso 
apparently aimed to get the uproar under control by swiftly 
retracting the controversial remarks. 
 
Meanwhile, Uruma told reporters at the Kantei again: "After I 
compared my recollections with those of my three secretaries, we 
concluded that I did not make such comments." In response to a 
question by a reporter, he emphasized, "I do not remember that the 
words 'the LDP' were mentioned" in questions by reporters and in my 
remarks. 
 
9) Ozawa's former secretary may have been involved in bid-rigging 
 
TOKYO 00000532  007 OF 012 
 
 
 
ASAHI (Top play) (Excerpts) 
March 10, 2009 
 
In connection with illegal donations to Rikuzan-kai, a 
fund-management organization of Democratic Party of Japan (DPJ) 
President Ichiro Ozawa, his former secretary is now suspected to 
have been involved in a bid-rigging organization's order-receiving 
adjustments for general contractors, an informed source said. A 
special investigation taskforce of the Tokyo District Public 
Prosecutors Office is believed to have gotten a handle on such a 
role of the Ozawa office through its investigation into persons 
connected with Nishimatsu Construction Co. 
 
The former secretary is a person who began at the Ozawa office the 
practice of coordinating the amounts of donations from Nishimatsu 
and their recipients. The former secretary allegedly informed the 
Sendai-based Tohoku region bid-rigging organization of the 
contractors (the Ozawa office) wanted to see win orders. 
 
The former secretary was replaced by Takanori Okubo, 47, Ozawa's 
first state-paid secretary and Rikuzan-kai's chief accountant, who 
has been arrested on suspicion of violating the Political Funds 
Control Law. The taskforce is conducting investigations, believing 
Okubo and others gave favors by using this framework to Nishimatsu 
that began illegal donations in the hope of winning orders for a dam 
and other projects. 
 
According to several general contractor-connected sources, 
Nishimatsu began making donations to the Ozawa side in around 1995 
when it set up a dummy political organization named Shin-Seiji 
Mondai Kenkyu-kai (New Political Issues Study Association). The 
former secretary allegedly set the annual total donation at 25 
million yen and allocated it to Rikuzan-kai and Ozawa-led DPJ local 
branches. 
 
According to general contractor-connected persons and others, 
arrangements were made by each general contractor's Tohoku branch 
office and other branch offices ahead of bidding for a large public 
works project straddling six Tohoku prefectures. In the process, a 
former general contractor executive who was serving as coordinator 
announced the companies the Ozawa office wished to win orders. The 
former executive was allegedly solely in charge of talks with the 
Ozawa office and often consulted with the former secretary up until 
around 2001. 
 
10) Nishimatsu Construction annually paid 3 million yen to Nikai 
side via ATMs: Names of 60 employees used without permission to 
conceal company name 
 
YOMIURI (Top Play) (Excerpts) 
March 10, 2009 
 
The Yomiuri Shimbun has learned through a source connected with 
Nishimatsu Construction Co., a second-tier general construction 
contractor based in Minato Ward, Tokyo has annually transferred 3 
million yen to the bank account of a political party's branch office 
headed by Economy, Trade and Industry Minister Toshihiro Nikai in 
the name of 60 employees or their families via ATMs. The company 
transferred 50,000 yen in cash in the name of each employee. It used 
the names of those employees without permission in order to disguise 
corporate donations as individual donations in order to conceal the 
 
TOKYO 00000532  008 OF 012 
 
 
name of the company. There is strong suspicion of the company 
violating the Political Funds Control Law, which bans making 
donations in the name of other persons. The Tokyo District Public 
Prosecutors Office investigation squad is expected to investigate 
how the donations have been made. 
 
According to the same source, the company has made donations in the 
name of its employees to (the Liberal Democratic Party's = LDP) 
branch office in the Wakayama Prefecture No. 3 Constituency. 
 
Senior officials of the company's general administration department 
transferred money in the name of actual employees or their family 
members -- 50,000 yen per person, using bank ATMs in Tokyo and 
Osaka. The company has transferred 3 million yen a year, using the 
names of 60 persons. The cash transfers were made at two locations 
-- Tokyo and Osaka, from where 1.5 million yen has been remitted 
respectively. The employees and their families whose names were used 
were not notified of that. 
 
Under the Political Funds Control Law, political organizations that 
received donations exceeding 50,000 yen must enter the names and 
addresses of donors and the amount of the donations in their 
political fund reports. However, regarding a donation not exceeding 
50,000 yen, the recipients are simply required to enter the names of 
donors in their accounting books. 
 
The branch's political fund reports for 2006 and 2007 list 3 million 
yen as other donations covering total amounts of a small-lot 
donation less than 50,000 yen. These are presumably the funds 
donated in the name of Nishimatsu Construction employees. 
 
11) Nikai denies any illegality in funds from Nishimatsu 
 
ASAHI (Page 1) (Full) 
March 10, 2009 
 
In connection with the question of Nishimatsu Construction Co.'s 
dummy political organizations having bought the Nikai faction's 
fund-raising party tickets, Economy, Trade, and Industry Minister 
Toshihiro Nikai said to reporters yesterday: "I have heard (from a 
person in charge of accounting) that they have been filed 
appropriately under the Political Funds Control Law." About his 
course of action, Nikai said: "I want to carry out my duties calmly 
as before. I want to fulfill my responsibilities." 
 
A special investigation taskforce of the Tokyo District Public 
Prosecutors Office has reportedly decided to question on a voluntary 
basis persons connected with the Nikai office. Nikai emphasized that 
there was no illegality in the purchase of his faction's party 
tickets (by the Nishimatsu-connected political organizations). 
 
In yesterday's House of Councillors Budget Committee session, 
Japanese Communist Party member Yoshiki Yamashita asked Nikai about 
the question of Nishimatsu's illegal donations. Nikai replied: 
"Political donations have been reported appropriately under the 
Political Funds Control Law. I have no recollection of receiving 
such funds from the Nishimatsu side." 
 
12) It's only natural to prevent N. Korean missile from landing in 
Japan: Defense Ministry official 
 
YOMIURI (Page 2) (Abridged) 
 
TOKYO 00000532  009 OF 012 
 
 
March 10, 2009 
 
North Korea, which is now preparing to launch a missile, released a 
statement yesterday claiming that intercepting its missile means 
war. Regardless of this statement, the Japanese government will 
intercept any missile landing in Japan with its missile defense (MD) 
system. 
 
The Defense Ministry takes North Korea's open statement of a "war" 
as meaning that North Korea fears that its nuclear weapons and 
missiles will be disabled, and that North Korea therefore warned 
Japan and the United States against using the MD system. "It's only 
natural to defend any missile from landing in Japan," a Defense 
Ministry official said. 
 
North Korea has claimed that it would launch an artificial 
satellite. However, its launching vehicle is almost the same as a 
ballistic missile. Chief Cabinet Secretary Kawamura, meeting the 
press yesterday, reiterated: "It will hurt regional stability and 
peace, so we will strongly request them to exercise 
self-restraint." 
 
The Self-Defense Forces Law allows the SDF to destroy missiles and 
the like in the case where they are feared to land in Japan's 
territorial soil or waters. The government takes the position that 
"missiles and the like" include rockets and artificial satellites. 
The key player to intercept missiles is the Standard Missile 3 
(SM-3), a sea-based intercept missile mounted on the Maritime 
Self-Defense Force's Aegis-equipped destroyers. A U.S. early warning 
satellite will detect a missile launch, and an MSDF Aegis destroyer 
on stage will catch it and track its path with its radar. If the 
projectile is feared to land in Japan, the SM-3 will be used to 
destroy it in outer space. If the SM-3 fails to shoot it down, the 
Patriot Advanced Capability 3 (PAC-3), a land-based ground-to-air 
guided missile deployed at six bases in Japan, will intercept it. 
 
This time around, however, North Korea is readying a long-range 
ballistic missile that may fly far beyond Japan's territorial soil 
and waters, observers say. If such a missile is not expected to fall 
inside Japanese territory, there are no legal grounds to intercept 
it. 
 
Technically, Japan's MD system is designed to intercept 
intermediate-range ballistic missiles that range 1,000 kilometers or 
so, and is also capable of intercepting missiles flying at an 
altitude of up to 300 kilometers or so. It can hardly intercept a 
long-range ballistic missile that will fly at a high altitude of 
nearly 1,000 kilometers toward such targets as the U.S. mainland. 
 
13) Japan, South Korea to cooperate on abduction issue; Meeting 
between Kim and Taguchi family members set for tomorrow 
 
NIKKEI (Page 2) (Abridged slightly) 
March 10, 2009 
 
Hideaki Shimatani, Seoul 
 
A meeting will take place in South Korea's Busan on March 11 between 
Kim Hyon Hui, a former North Korean agent, and family members of 
Yaeko Taguchi, a victim of abduction. Japan's motivating drive to 
place high priority on settling the abduction issue now coincides 
with South Korea's intent to play up its commitment to human rights 
 
TOKYO 00000532  010 OF 012 
 
 
to the international community. The Busan meeting can be a symbolic 
event of the cooperation of the two countries. Nevertheless, whether 
the meeting can uncover new facts is unclear, and North Korea's 
strong reaction also can be expected. 
 
Foreign Minister Hirofumi Nakasone expressed yesterday his eagerness 
for cooperation between Japan and South Korea to help resolve the 
abduction issue, saying: "The governments of Japan and South Korea 
would like to continue working together so that abductees will be 
able to return to their country at the earliest possible time." 
 
Japan pins expectations on the Busan meeting in the hope that it 
will help Japan work closely with South Korea not only in addressing 
the nuclear and missile issues but also the abduction issue as well. 
"The event will help Japan and South Korea play up their severe 
stances toward North Korea," a prime ministerial aide said. 
 
The South Korean government's ostensible stance is that the Busan 
meeting is a matter between Kim, who was once sentenced to death, 
and the family members of Taguchi. But the upcoming meeting was made 
possible in cooperation with the Japanese government. Attaching 
importance to human rights issues, President Lee Myung Bak has 
repeatedly indicated to Japan that his government would expend as 
much cooperation as possible for resolving the abduction issue. 
 
Lee's predecessor, President Roh Moo Hyun, who took a reconciliatory 
policy toward the North, often displayed a critical stance toward 
Japan that attached importance to the abduction issue in the 
six-party talks. 
 
The Lee administration, which was launched in February 2008, takes a 
hard-line policy toward the North Korea. It is clear that the Lee 
administration aims at "actual benefits" in a wide range of fields, 
including the economy, by putting relations with Japan back on track 
by working together with Tokyo for resolving the abduction issue. 
 
If the meeting exposes discrepancies with North Korea's 
explanations, Japan intends to press the North once again for a 
reinvestigation into the fate of the Japanese abductees. Tokyo and 
Pyongyang agreed in their working-level meeting last August to 
establish a reinvestigation committee, but the North has yet to 
begin the reinvestigation. 
 
The Busan meeting, which can be called the fruit of Japan-ROK 
cooperation, is certain to irritate the North. Showing signs of 
firing a long-range ballistic missile, the North has also displayed 
a stern position toward the U.S.-ROK joint military exercise that 
kicked off in South Korea on March 9. The North might raise tensions 
with the Busan meeting as the excuse. Given the situation, whether 
the meeting will help bring a solution to the abduction issue is 
uncertain. 
 
14) Japan to send survey mission to East Timor 
 
ASAHI (Page 4) (Full) 
March 10, 2009 
 
Prime Minister Taro Aso met yesterday with East Timor Prime Minister 
Xanana Gusmao at the Prime Minister's Office. Gusmao sounded out 
Japan on the provision of yen loans in order to help improve 
infrastructure in his country. Aso then told him that Japan would 
send a survey mission to the country to study the possibility of 
 
TOKYO 00000532  011 OF 012 
 
 
such support. 
 
According to a joint statement released after the meeting, Gusmao 
expressed appreciation for Japan's such efforts carried out since 
1999 before the independence of East Timor as approximately 1.5 
billion yen in financial assistance, and the dispatch of a 
Self-Defense Forces engineering unit, civilian police and election 
monitoring team. 
 
15) IIPS proposes common currency of Asia 
 
YOMIURI (Page 2) (Full) 
March 10, 2009 
 
Following the ongoing global financial crisis and economic decline, 
the Institute for International Policy Studies (IIPS), chaired by 
former Prime Minister Yasuhiro Nakasone, compiled a report titled 
"Outlook for International Economy and Financial System with Eye on 
2030s." The report proposes that the Asian region should contribute 
in cooperation to the stabilization of the global economy, by 
introducing a common currency like the euro or the dollar. 
 
As an immediate measure to emerge from the economic crunch, the 
report proposes expediting capital injection and the purchases of 
non-performing loans in the early 2010, positioning that timeframe 
as a period for the intensive write-offs of bad loans. It also 
points out the need to consolidate an international financial 
oversight system. 
 
Viewing that the global economic crisis has exposed that the U.S. 
alone cannot undergird the global economy, the report indicates a 
perception that reviewing the U.S.-led international system is a 
pressing issue. It also notes that it is necessary for each region 
to consolidate an efficient and effective market monitoring system 
and an assistance system to deal with an economic crisis. 
 
To be precise, the report proposes introducing a common currency of 
Asia in the 1930s or later. To that end, it urges Japan, China, 
South Korea and the Association of Southeast Asian Nations (ASEAN) 
should press ahead with efforts to reach an agreement in the 2010s 
to introduce such a common currency. Then, it calls for the 
establishment in the 2020s of a common currency that enables the 
comparison of the values of Asian currencies, based on trade 
liberalization and the strengthened economic cooperation. 
 
The report underscores a view that the envisaged new international 
currency will not cause the dollar to plunge, noting that the 
existence of the U.S. dollar as a key currency is important for the 
stable development of the global economy and that Asia's common 
currency will supplement the dollar-based currency system. 
 
Proposals by IIPS (Gist) 
 
? The ongoing financial crisis could change the current global 
economy and financial system led by the U.S. 
? It is impossible for the U.S. alone to undergird the global 
economy. It is necessary for each region to consolidate 
market-monitoring functions and an assistance system to deal with an 
economic crisis. 
? For the development of Asia, a common currency should be formed in 
the region so that it can complement the dollar-based currency 
system along with the euro. 
 
TOKYO 00000532  012 OF 012 
 
 
 
ZUMWALT