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UNCLAS SECTION 01 OF 11 TOKYO 000541 
 
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 03/11/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) Government ready to extend existing sanctions and add new ones in 
preparation for North Korean missile launch  (Nikkei) 
5) Cabinet adopts new bill outlaying cluster munitions, ready to 
have Japan ratify new international treaty  (Mainichi) 
6) Liberal Democratic Party (LDP), New Komeito approve anti-piracy 
bill  (Mainichi) 
 
Ozawa scandal: 
7) Democratic Party of Japan (DPJ) President Ichiro Ozawa says his 
course of action at party head will depend on election  (Yomiuri) 
8) DPJ lawmaker and former Ozawa aided Ishikawa being questioned by 
prosecutors in connection with the Nishimatsu donation case 
(Sankei) 
9) Nishimatsu construction used political payoffs to land 33 public 
works projects over ten years worth a total of 66.8 billion yen 
(Mainichi) 
10) Shady donations from general contractors were funneled to the 
Ozawa side through subcontractors  (Asahi) 
 
Aso shunning: 
11) LDP politicians are even replacing campaign posters showing them 
and Prime Minister Aso with ones showing them alone  (Yomiuri) 
12) Junior LDP lawmakers worried that the "old LDP nature" may be 
returning, as seen in the Nishimatsu political-donations scandal 
(Tokyo Shimbun) 
 
Trade and economy: 
13) LDP preparing emergency economic package centered on education 
and the environment  (Yomiuri) 
14) Government considering using even pension savings to help out 
companies in a pinch  (Nikkei) 
15) Local governments are opting to continue scientifically-useless 
blanket inspections of cows for BSE believing that satisfying 
consumer fears is important  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Four general contractors suspected of funneling donations to Ozawa's 
fund management organization via subcontractors, other entities 
 
Mainichi: 
Nishimatsu Construction Co. won 66.8 billion yen worth public works 
in 7 prefectures in past 10 years 
 
Yomiuri: 
Ozawa to consider impact on election in determining whether to say 
on or resign as DPJ leader 
 
Nikkei: 
Government eyes fund to handle critical funding shortage of 
businesses 
 
 
TOKYO 00000541  002 OF 011 
 
 
Sankei: 
Prosecutors request Lower House member Ishikawa, ex-secretary to 
Ozawa, to appear for questioning 
 
Tokyo Shimbun: 
Agriculture ministry-affiliated corporation uses subsidies to buy 
bonds worth 9.5 billion yen 
 
Akahata: 
JCP Chairman Shii urges people to put up fight against firing of 
dispatched workers 
 
2) EDITORIALS 
 
Asahi: 
(1) Participation of victims: Lawyers' support necessary 
(2) Cell phone addicts: Let us face friends 
 
Mainichi: 
(1) Hepatocyte research: Keep international competitiveness by using 
diverse strategies 
(2) Copyright issue: Flexible response needed for advances in 
technology 
 
Yomiuri: 
(1) Japan's current account falls into the red 
(2) Ruling and opposition camps must cooperate to pass anti-piracy 
bill 
 
Nikkei: 
(1) Stimulate economy by boldly introducing natural energies 
(2) 50 years of Tibet without human rights 
 
Sankei: 
(1) Push forward with postal privatization 
(2) Manned space exploration -- Japan should realize its "dream" 
 
Tokyo Shimbun: 
(1) 50 anniversary of Tibet: We lament China's uncompromising 
stance 
(2) Current-account deficit: Nurturing of new businesses 
indispensable 
 
Akahata: 
(1) Agricultural Land Law revision bill: Government should give 
bright future for farmers 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 10 
 
NIKKEI (Page 2) (Full) 
March 11, 2009 
 
09:01 
Cabinet meeting in the Diet building. 
 
09:15 
Met with Chief Cabinet Secretary Kawamura at the Kantei. Then met 
with State Minister in charge of Economic and Fiscal Policy Yosano 
and Assistant Deputy Chief Cabinet Secretary Fukuda. 
 
 
TOKYO 00000541  003 OF 011 
 
 
10:04 
Met with New Komeito head Ota. 
 
12:39 
Lower House plenary session. 
 
14:01 
Met with LDP Youth Bureau chief Inoue at the Kantei, followed by 
Vice Finance Minister Sugimoto, Vice Finance Minister for 
International Financial Affairs Shinohara, Vice Foreign Minister 
Yabunaka, Deputy Foreign Minister Otabe and Assistant Deputy Chief 
Cabinet Secretary Hayashi. 
 
15:14 
Met with Upper House Diet Affairs Committee Vice Chairman Shiina. 
 
17:32 
Council on Economic and Fiscal Policy meeting. 
 
19:33 
Dined with his secretary at Chinese restaurant "Toryu" in Kojimachi. 
 
 
21:11 
Met with Deputy Chief Cabinet Secretary Matsumoto at Kato's Dining 
and Bar at Hotel New Ohtani. 
 
22:58 
Arrived at the official residence. 
 
4) Gov't to extend N. Korea sanctions 
 
NIKKEI (Page 2) (Full) 
March 11, 2009 
 
The government has decided to extend Japan's economic sanctions 
against North Korea for six months. The current sanctions are due to 
expire April 13. The government judged that Japan should continue 
its pressure on North Korea since there is no progress on the 
nuclear and abduction issues. Given that there are signs indicating 
North Korea's readiness to launch a missile, the government will 
also study additional measures in preparation for an actual missile 
launch. 
 
Japan invoked its own economic sanctions against North Korea in the 
wake of North Korea's announcement of its nuclear test in October 
¶2006. This is the fifth time for Japan to extend its North Korea 
sanctions. The sanction measures include prohibiting the 
Mangyongbong, a North Korean passenger-cargo ship, and all other 
North Korean ships from entering port in Japan, prohibiting Japan 
from importing any items from North Korea, and prohibiting North 
Korean nationals from entering Japan. The government will make a 
cabinet decision in early April to adopt these sanction measures. 
 
The government will invoke additional sanction measures against 
North Korea if a missile actually launched by North Korea lands in 
Japan's territorial soil or waters or otherwise lands in Japan's 
exclusive economic zones. "Even in the case of landing on the high 
seas, we will make a judgment while seeing public opinion and other 
countries' reactions," a senior official of the Cabinet Secretariat 
said. Prime Minister Taro Aso will make a final judgment. 
 
 
TOKYO 00000541  004 OF 011 
 
 
In concrete terms, the government is planning to continue 
prohibiting Japan from exporting luxuries to North Korea in 
conformity with a 2006 United Nations resolution. In addition, the 
government is considering such steps as expanding the scope of its 
financial sanction measures. The government is also expected to 
coordinate with the United States and other countries on sanctions 
through the United Nations Security Council, depending on North 
Korea's response. 
 
5) Cabinet adopts bill banning cluster munitions 
 
MAINICHI (Page 2) (Abridged) 
March 11, 2009 
 
The government made a cabinet decision yesterday to adopt a 
legislative measure banning cluster munitions that will prohibit 
Japan from producing and possessing cluster munitions since 
unexploded bombs have produced civilian casualties. The legislation 
is to shape a cluster ban treaty Japan signed in December 2008. The 
government wants to have the treaty ratified during the current Diet 
session and will also aim to have the bill enacted into law. Among 
advanced nations, Japan is one of the first countries making efforts 
to ban cluster munitions. In the international community, Japan has 
shown its strong intention to restrict inhumane weapons. 
 
The draft treaty was adopted in the Oslo process pushed by a group 
of interested countries and nongovernmental organizations for 
disarmament talks. However, the government was negative about the 
treaty at first. The government later worked on this process in 
order to recover Japan's reputation and make an appeal on its 
presence. "It was at an unusually fast speed," a senior Foreign 
Ministry official said. The treaty and the cluster bill are expected 
to be separately discussed at Diet committees in the lower and upper 
chambers. 
 
6) LDP, Komeito approve antipiracy bill 
 
MAINICHI (Page 2) (Full) 
March 11, 2009 
 
The ruling Liberal Democratic Party's General Council met yesterday 
and approved an antipiracy bill for measures against pirates in 
waters off the eastern African coast of Somalia. The LDP's coalition 
partner, the New Komeito, also approved the bill. The two parties 
will hold a meeting of their policy chiefs today to reach a final 
agreement. 
 
The government will make a cabinet decision on March 13 to adopt the 
bill and will present it to the Diet. At the same time, Defense 
Minister Yasukazu Hamada will issue orders for maritime security 
operations in conformity with the Self-Defense Forces Law's Article 
¶82. In response to the orders, two Maritime Self-Defense Force 
destroyers will set sail on March 14 for Somalia waters. 
 
The defense minister, with the prime minister's approval, will also 
issue orders for antipiracy counteractions, as well as maritime 
security operations, to send out the Self-Defense Forces. 
 
7) Ozawa to consider impact on election in determining whether to 
stay or resign as DPJ leader 
 
YOMIURI (Top Play) (Abridged slightly) 
 
TOKYO 00000541  005 OF 011 
 
 
March 11, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday 
held a press conference at DPJ headquarters, in which he apologized 
for the first time for the scandal violating the Political Funds 
Control Law, involving second-tier general contractor Nishimatsu 
Construction Co. and his fund management organization. He said that 
he had no intention of resigning from his post for the time being, 
but he would make a decision on his course of action in 
consideration of how the case would turn out, as well as what impact 
it would have on the next House of Representatives election. 
 
At the outset of the press conference, Ozawa said: "I would like to 
apologize to the public." He stressed: "At the moment, I am not 
thinking at all about quitting my post before the final conclusion 
(on the case) comes out." He added: "We have to win the general 
election. I would like to make judgments on what I'm going to do in 
the future by using that point as a yardstick." 
 
When asked about whether his state-funded secretary's possible 
indictment would affect his decision on his course of action, Ozawa 
indicated his intention that the charge against his secretary was 
not worth resigning. He said: 
 
"This is more about the contents of the case, rather than whether my 
secretary is indicted. (The charge) was simply brought about by 
differences in perception regarding how to handle the income and 
expenditure reports (on political funds)." 
 
It has already been revealed that Nishimatsu donated totaling about 
300 million yen to Ozawa's political fund management organization. 
 
Asked about the dummy political groups the construction firm used to 
funnel the donations to Ozawa's organization, Ozawa said: "I did not 
even know that I received donations from such groups." In connection 
with alleged requests for donations from his secretary, he said: "I 
have no idea about it, and I don't think I have ever met the top 
management of the company." 
 
8) Lower House member and Ozawa's former secretary Ishikawa asked to 
appear for questioning over Nishimatsu donation scandal 
 
SANKEI (Top play) (Full) 
March 11, 2009 
 
The special investigation team of the Tokyo District Public 
Prosecutors Office seems to have asked Democratic Party of Japan 
House of Representatives member Tomohiro Ishikawa, 35, to appear for 
questioning as a reference witness in connection with alleged 
donations to the DPJ President Ichiro Ozawa's fund-management 
organization, Rikuzan-kai, in violation of the Political Funds 
Control Law. Ishikawa is Ozawa's former secretary and was in charge 
of Rikuzan-kai's accounting. 
 
While serving as Ozawa's secretary, Ishikawa was in a position to 
assist his first state-paid secretary Takanori Okubo, 47, who is 
already under arrest on suspicion of violating the Political Funds 
Control Law. 
 
For this reason, the investigation team is believed to have 
recognized the need to seek explanations on whether or not (the 
Ozawa side) was aware of the illegality of corporate donations from 
 
TOKYO 00000541  006 OF 011 
 
 
Nishimatsu Construction Co., a second-tier general contractor, via 
dummy political organization, the method of filing donations, 
Rikuzan-kai's clerical procedures, and other matters. 
 
Ishikawa served as Ozawa's secretary between 1996 and 2004. He was 
in charge of Rikuzan-kai's accounting between 2000 and 2004. 
 
Ishikawa ran for the first time in the Lower House election held in 
September 2005 from Hokkaido Constituency No. 11. Although he did 
not win the race, Ishikawa, who ended up as the runner-up in the 
DPJ's proportional representation list, filled the DPJ Low House 
seat in March 2007 that was vacated by another DPJ member who ran 
for the Hokkaido gubernatorial race. 
 
Ishikawa is planning to run in the next Lower House election from 
the same constituency on the DPJ ticket. 
 
Ishikawa said through his office: "The investigation is still 
underway, so I would like to abstain from making any comment." 
 
9) Nishimatsu received orders worth 66.8 billion yen over 10 years 
for public works projects in seven prefectures in which Ozawa, Nikai 
have influence 
 
MAINICHI (Top Play) (Full) 
March 11, 2009 
 
Nishimatsu Construction Co., a second-tier general contractor, 
received orders worth approximately 66.8 billion yen for 33 public 
works projects in the Tohoku District, Wakayama Prefecture, and 
Osaka Prefecture over the last 10 years, according to informed 
sources. The Tohoku District contains the electoral district of 
Democratic Party of Japan President Ichiro Ozawa, whose top aide was 
arrested for receiving illegal donations from Nishimatsu. Minister 
of Economy, Trade and Industry Toshihiro Nikai, whose faction was 
found to have received huge amounts of money paid by the company by 
purchases of party tickets, has held enormous sway over Wakayama and 
Osaka. This amount is equivalent to one-fourth of the total value of 
orders Nishimura received in public works projects. A company 
executive said. "Our receiving those orders was due to our company's 
donations." The special investigation squad of the Tokyo District 
Public Prosecutors Office is investigating what maneuvers the 
company used to curry political favor. 
 
According to paper Nishimatsu submitted to the Land, Infrastructure, 
Transport and Tourism Ministry, the company received approximately 
35.1 billion yen worth of orders in Iwate, Ozawa's constituency, 
Aomori, Akita, Yamagata, and Miyagi in the Tohoku District. 
 
In the first and second phase of construction in the second 
Moriyoshizan dam construction project (in Kita Akita City) ordered 
by the said ministry's Tohoku District Development Bureau, the 
company received about 10.3 billion yen, the largest order. In 
Iwate, the company won contracts worth about 7.57 billion yen 
covering three projects, including construction of facilities 
related to Izawa Dam, ordered by the same bureau. 
 
In Wakayama, in which Nikai's constituency is located, and Osaka, 
Nishimura took on contracts worth approximately 31.7 billion yen for 
17 public works projects starting in 1999. The company won a 
contract worth about 1.05 billion yen to strengthen the Kino River 
bank ordered by the ministry's Kinki District Development Bureau in 
 
TOKYO 00000541  007 OF 011 
 
 
Wakayama. In Osaka, the general contractor took on a contract for a 
reclamation-related project ordered by Osaka Land Development Co. 
 
Nishimatsu won contracts for 174 public works projects worth about 
265.2 billion yen since 1999. The total value of orders received by 
the company in the seven prefectures listed above accounts for 25.2 
PERCENT  of the total. 
 
10) Four general contractors suspected of funneling donations to 
Ozawa side via subcontractors, other entities 
 
ASAHI (Top play) (Excerpts) 
March 11, 2009 
 
In connection with alleged illegal donations from Nishimatsu 
Construction Co., a second-tier general contractor, to Rikuzan-kai, 
the fund-management organization of Democratic Party of Japan 
President Ichiro Ozawa, an additional four construction companies -- 
three major general contractors and one second-tier company -- 
allegedly made "roundabout donations" to the Ozawa side, according 
to an informed source. The five companies allegedly contributed a 
total of about 100 million yen annually. 
 
The major general contractors are Shimizu Corp., Obayashi Corp., and 
Taisei Corp., and the second-tier contractor is Toda Corp. There 
were allegedly a list of annual donations to the Ozawa side from 
each company, along with Nishimatsu, and documents specifying the 
method of making donations via subcontractors. 
 
The special investigation team of the Tokyo District Public 
Prosecutors Office is believed to have gained access to the 
document. The investigation team seems to believe strongly that the 
four companies, along with Nishimatsu, intended to make donations to 
the Ozawa side without revealing their names. The team appears to be 
conducting the investigation, believing that persons connected with 
the Ozawa office, including Ozawa's first secretary and 
Rikuzan-kai's chief accountant Takanori Okubo, 47, who is already 
under arrest on suspicion of violating the Political Funds Control 
Law, were involved in drawing up the document. 
 
According to the concerned source, in the document, donations from 
the five general contractors were classified into three items: 
subcontractors, party tickets, and etc. The five companies' total 
amounts that combined the three items ranged between 10 million to 
25 million yen. 
 
There were certain figures under the items of subcontractors and 
party tickets in the documents of the four companies except for 
Nishimatsu. The document was accompanied by a list of companies that 
appeared to be the general contractors' subcontractors. Many of them 
were based in the Tohoku region. The money from the subcontractors 
is believed to have been donated to Ozawa's party branches. 
 
There were entries under all the three items in Nishimatsu's 
document and there was also an entry under the item etc. indicating 
that the money was a donation via a dummy political organization 
headed by a retired Nishimatsu employee, according to the source. It 
has already become clear that as one of the methods to make 
"roundabout donations" to the Ozawa side, Nishimatsu made inflated 
payments to its subcontractors to have them donate the excess 
amounts to DPJ party branches. Given the situation, the entries 
under the item subcontractors are suspected to signify their 
 
TOKYO 00000541  008 OF 011 
 
 
donations under a similar method used by the four general 
contractors. 
 
11) Lawmakers distancing themselves from Aso even in their campaign 
posters, with only 14 PERCENT  of those of LDP candidates showing 
poses with the prime minister, in contrast to DPJ, which features 
Ozawa on 70 PERCENT  of posters 
 
YOMIURI (Page 2) (Excerpts) 
March 11, 2009 
 
As of March 10, it will be a half-year until the terms of lawmakers 
in the House of Representatives end, and under the provisions of the 
Public Election Law, it is prohibited for campaign posters of 
potential candidates to feature only their photograph. As the other 
person in the poster, the number one choice for the Liberal 
Democratic Party (LDP) has been Prime Minister Aso, followed by 
Health and Labor Minister Masuzoe. For the Democratic Party of Japan 
(DPJ), it has been President Ozawa, followed by Lower House lawmaker 
Akira Nagatsuma. The Yomiuri Shimbun sent out a survey with the 
question, "Who will be the second figure on your campaign poster?" 
As a result, only 14 PERCENT  of LDP candidates were choosing Prime 
Minister Aso, showing clearly the reality that the trend of 
distancing oneself from Aso is progressing in the LDP. 
 
Of 293 LDP potential candidates surveyed, only 41 had prepared 
posters featuring photos with Prime Minister Aso. A move has spread 
of avoiding the prime minister, whose ratings in the polls has been 
low, and instead, the posters are featuring the photos of other LDP 
lawmakers who are popular, such as Masuzoe (on 28 posters), Deputy 
Secretary General Nobuteru Ishihara (21), and Minister for Declining 
Birthrate Obuchi (12). 
 
In the DPJ, which has lined up 263 candidates to run, 176 or 70 
PERCENT  responded that their posters had Ozawa's picture on them. 
Prior to the arrest of Ozawa's public secretary on the charge of 
violating the Political Funds Control Law, 189 candidates had 
prepared posters with Ozawa's picture on them. Only 13 candidates 
had changed the poster after the arrest, indicating trust in Ozawa 
in the party is strong. 
 
12) Junior members fear image of "old-type LDP politics," with 
investigation into Nishimatsu scandal extending to LDP members 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 11, 2009 
 
Set off by the revelation of huge donations made by Nishimatsu 
Construction Co. to lawmakers, Liberal Democratic Party (LDP) 
members who were calling for Prime Minister Taro Aso's resignation 
have begun to keep their silence. Veteran lawmakers who insisted on 
Aso's resignation are also carefully watching for now how the 
investigation by prosecutors will develop. Junior members who have 
made "dump-Aso" moves, however, are increasingly becoming nervous 
over the investigation that has spread to LDP members. 
 
Several study groups of junior lawmakers held their meetings at LDP 
headquarters yesterday. The association to innovate the LDP and 
regenerate Japan, composed of first-to-third termers, confirmed the 
need to reform the party. House of Representatives member Isshu 
Sugawara remarked: "Public support ratings for our party have not 
risen despite the revelation of the fund-raising scandal involving 
 
TOKYO 00000541  009 OF 011 
 
 
Mr. Ozawa. Let us put an end to old-style LDP politics." 
 
In a meeting of the group to realize people-oriented politics, 
composed mainly of first-term members, Lower House member Masaaki 
Taira said: "Unless we step into the question of the quality of our 
leaders, it will be impossible to hold back public distrust in 
politics." 
 
Although calls for Aso's resignation have also toned down in 
meetings of junior members' groups since the Nishimatsu scandal came 
to light, junior lawmakers are now showing signs of impatience, 
fearing that the public may have regained a strong image of the LDP 
as having returned to its old ways of doing business. 
 
Tsutomu Takebe and Hidenao Nakagawa, both of whom called on Aso to 
step down after the fiscal 2009 budget bill clears the Lower House, 
have become silent since the investigation was extended to LDP 
members. They find it difficult to take action before ascertaining 
how the investigation will develop. 
 
13) LDP to announce emergency economic measures focusing on 
education, environment, by later this month 
 
YOMIURI (Page 4) (Full) 
March 11, 2009 
 
A panel set up by the Liberal Democratic Party to charter an 
economic growth strategy covering about three years from now started 
work yesterday. The Strategic Council to Revitalize the Japanese 
Economy, chaired by former Chief Cabinet Secretary Nobutaka 
Machimura, will come up with emergency measures later this month and 
have them reflected in the additional economic stimulus package of 
the government and the ruling camp. 
 
The panel intends to work out measures, focusing on the environment, 
education and social welfare areas. In the environment area, it 
plans to look into assistance in starting up businesses, as well as 
research and development that will lead to promoting energy saving 
and spreading new energy sources. The panel also expects to discuss 
measures to promote access to the nursing business and improve 
vocational training. 
 
The new body will take the initiative for economic study groups and 
special committees in the party to draw up mid-term economic policy 
measures. 
 
The panel intends to cooperate with an expert conference to be set 
up by the government to look into economic measures and the Council 
on Economic and Fiscal Policy. 
 
14) Governments eyes fund to handle critical funding shortages of 
businesses, using postal savings: Plan to purchase stocks also 
surfaced 
 
NIKKEI (Top Play) (Excerpts) 
March 11, 2009 
 
The government on March 7 started looking into establishing a fund 
designed to handle crises, such as extending assistance to companies 
to manage their cash flows. The planned fund would be drawn from 
such sources as the Japan Post Bank and private financial 
institutions. The idea of establishing such a fund is to assist 
 
TOKYO 00000541  010 OF 011 
 
 
emergency financing by the Development Bank of Japan (DBJ), which 
taps the fiscal investment and loan program to finance its lending. 
Since operating funds of low-interest and stable postal savings are 
to be used, possible losses would be covered by government 
guarantees. As a measure to deal with stock prices, a plan to 
purchase stocks from the market with money drawn from the new fund 
has also surfaced. There has now appeared a possibility of a 
cooperative measure between government and the private sector 
intended to stabilize the financial system and the economy getting 
under way. 
 
The envisioned plan will be characterized as the showcase of an 
additional stimulus package to be compiled after the enactment of 
the fiscal 2009 budget. Under the proposed arrangement, the DBJ 
would launch the fund. The government and the DBJ would supply their 
money to the fund, which would also take out government-guaranteed 
low-interest loans from Japan Post Holdings' unit, Japan Post Bank. 
The DBJ then extends loans to leading and mid-ranking cash-strapped 
companies, using those funds. 
 
The terms of these loans have yet to be decided, but they are likely 
to last for about five years and carry interest rates lower than the 
yields offered by DBJ bonds. 
 
The DBJ procures funds needed to handle crises from the government's 
fiscal investment and loan program. However, it is now pressed to 
boost its funds procurement means with a number of government 
measures adopted to assist cash management by companies. 
 
The government guarantees would make it easier for Japan Post Bank 
and private-sector banks to lend to the fund, because these 
institutions would not have to classify the loans in risk categories 
that might lower their capital ratios. At the same time, the DBJ 
would be able to diversify means to secure long-term funding without 
having to negotiate with individual financial institutions. 
 
15) All municipalities to continue blanket cattle testing next 
fiscal year: 40 PERCENT  decided without discussion 
 
MAINICHI (Top Play) (Full) 
Evening, March 10, 2009 
 
A poll conducted by Mainichi Shimbun has found that as a measure to 
prevent BSE, all municipalities that have meat inspection facilities 
will continue cattle inspections targeting animals, including those 
up to 20 months of age after April this year, despite the fact that 
the state does not require such. They will use their own budgetary 
funds. The central government terminated subsidies worth roughly 200 
million yen in the middle of the current fiscal ear. However, 
conducting blanket cattle testing is beginning to be established as 
a fixed policy line among municipalities. 
 
Japan is the only country in the world that carries out blanket 
cattle inspections. The Ministry of Health, Labor and Welfare 
limited cattle subject to inspection to those aged 21 months or 
older. The reason is because there have been no infection cases 
found among cattle born after January 2002, and even if such cattle 
might be infected with BSE, there is little chance of such being 
spotted through inspection. The government provided subsidies for 
the inspection to municipalities that continued to inspection of 
cattle aged up to 20 months as a temporary measure valid only for 
three years. However, it ended the measure in July last year. 
 
TOKYO 00000541  011 OF 011 
 
 
 
At present, 77 local governments, such as local prefectural 
governments and government ordinance cities that have inspection 
facilities, are continuing blanket cattle inspection. The poll asked 
officials in charge in those municipalities about their future 
policy. All pollees replied that they will continue the inspection. 
The main reason for that is demand from consumers and the needs to 
maintain the brand name of local beef products and to avoid causing 
confusion in the distribution process. To a question whether they 
held discussion before they decided to continue the inspection, 30 
municipalities or about 40 PERCENT  of respondents replied that they 
had held no such discussions. 
 
There is a strong lock-step mentality among municipalities. Akita 
Prefecture said that it takes courage to stop the inspections, while 
other prefectures are continuing to do so. Miyagi Prefecture replied 
that though it wants to end the inspection, once it obtains 
understanding from consumers, there is no such possibility at 
present. Yokohama City noted that it considered beef to be safe in 
terms of the mechanisms in place, even if there is no inspection. It 
said that it wanted the government to disseminate information on the 
safety of beef on its own responsibility, noting that in a poll it 
had conducted on local residents, many replied that they wanted to 
see the inspections continue. Toyohashi City, Aichi Prefecture also 
expected the government to take the initiative in ending blanket 
cattle inspection, saying that since meat is distributed nationwide, 
it would be meaningless unless (a call to end the blanket 
inspection) is made nationwide. 
 
The government in December last year applied the World Organization 
for Animal Health (OIE) to upgrade the classification of Japan's BSE 
measures from "undetermined risk of BSE country to "controlled risk 
of BSE." The action is based on the prospect that there will be no 
facilities that carry out pithing, a method banned by the OIE, by 
the end of this fiscal year. It thinks that the application will be 
granted at the OIE's plenary meeting to be held in May this year. 
 
An official of the MHLW Inspection and Safety Division said, "Once 
OIE approval is granted, the government will have the Food Safety 
Commission reevaluate Japan's BSE preventive measures. We want to 
use this opportunity as an occasion to urge local governments to 
take a second look at their blanket cattle inspections." 
 
ZUMWALT