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UNCLAS SECTION 01 OF 11 TOKYO 000548 
 
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 03/12/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
North Korea abduction issue: 
4) Ex-North Korean spy now living in South Korea has emotional 
meeting with kin of abductee Taguchi, says she is still alive 
despite DPRK statement to contrary  (Tokyo Shimbun) 
5) Prime Minister Aso says the abductee family meeting in Seoul was 
a "good thing"  (Tokyo Shimbun) 
6) Government to again ask North Korea to make good its offer to 
reinvestigate the abduction issue  (Nikkei) 
7) Government and ruling parties' expectations are rising about the 
abductees in North Korea  (Sankei) 
 
North Korea missile issue: 
8) Foreign Minister Nakasone tells Diet that if the U.S. forces in 
Japan intercepted missiles bound for Japan there would be no legal 
problem  (Yomiuri) 
9) Defense Minister Hamada tells Diet that Japan has neither 
intention nor capability of shooting down long-range DPRK missiles 
headed toward U.S.  (Asahi) 
 
10) LDP's Taku Yamasaki in Kabul discusses Afghanistan assistance 
with country's vice president  (Yomiuri) 
 
Political donation scandal: 
11) Ozawa on alert, his prosecutors again (Yomiuri) 
12) Tokyo prosecutors questioning all Tohoku region construction 
companies about political donations practices  (Asahi) 
 
Political agenda: 
13) Media continues to expose just how unpopular the prime minister 
is  (Asahi) 
14) Prime Minister Aso trying to pack in as many overseas trips as 
possible in order to flee the domestic political fray  (Tokyo 
Shimbun) 
15) Ruling parties trying to bring public support back with promises 
of a new economic stimulus package  (Tokyo Shimbun) 
16) Prime Minister Aso intends to pass such priority legislation 
this session as anti-piracy bill, pension bill, and bill creating a 
consumer affairs agency  (Yomiuri) 
17) Okada may be strongest post-Ozawa candidate  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Yomiuri: 
Tokyo prosecutors begin questioning officials of construction firms 
in Tohoku region 
 
Mainichi: 
15 killed in school shooting in Germany 
 
Nikkei: 
Sompo Japan, Nipponkoa to integrate management in spring 2010 
 
Sankei: 
Ex-North Korean agent meets Taguchi kin, believes abductee still 
 
TOKYO 00000548  002 OF 011 
 
 
alive 
 
Tokyo Shimbun: 
Former North Korean agent: I don't believe abductee Megumi died; I 
want Japan to consider ways to move the North 
 
Akahata: 
Trade minister Nikai receives donations from dummy political groups 
for 14 years 
 
2) EDITORIALS 
 
Asahi: 
(1) Abduction and bomb attack: We have become aware of North Korea's 
injustice 
(2) Filipino family: Justice Minister Mori should make decisive 
decision 
 
Mainichi: 
(1) Meeting between ex-agent and Taguchi kin should be first step 
for resolving abduction issue 
(2) Bring Olympics to Tokyo in 2016 fairly 
 
Yomiuri: 
(1) Ex-North Korean agent: Cooperation between Japan and South Korea 
vital over abduction issue 
(2) Tibet: Pressure, placation will not solve the issue 
 
Nikkei: 
(1) Ecologically-friendly cars for economic recovery and 
environment 
(2) Japan, South Korea should tighten noose around North Korea 
 
Sankei: 
(1) DPJ President must clear up doubts 
(2) Meeting between Kim Hyon Hui and Taguchi kin: We want the son to 
meet his mother 
 
Tokyo Shimbun: 
(1) "Hopes" for resolution of abductee issue 
(2) Need to reaffirm the safety of cloned food 
 
Akahata: 
(1) G-20 financial ministerial: International cooperation necessary 
for effective financial regulation 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 11 
 
NIKKEI (Page 2) (Full) 
March 12, 2009 
 
07:35 
Took a walk around the official residence. 
 
10:23 
Met with Education Minister Shionoya and Vice Education Minister 
Zeniya. Chief Cabinet Secretary Kawamura was present. 
 
11:01 
Met with Advisor Suga and Chairman Tamura of the Dietmens' League to 
 
TOKYO 00000548  003 OF 011 
 
 
Consider government-issued Currency Notes and Zero-interest tax-free 
bonds. Suga remained. 
 
13:22 
Met with New Komeito head Ota. 
 
14:08 
Met with former Foreign Minister Nakayama. 
 
15:05 
Met with Momoe Kobayashi, winner of the highest award in high school 
students' speech contest on the Northern Territories. Then met with 
Fukuoka Prefecture Governor Aso, chairman of the Association of 
Prefectural Governors. 
 
15:43 
Met with the South Korean President's special envoy. 
 
18:17 
Agricultural administration meeting at Toranomon Pastoral. 
 
19:00 
Dined with LDP caucus in the Upper House Chairman Otsuji, Upper 
House Diet Affairs Committee Chairman Suzuki and Deputy Chief 
Cabinet Secretary Konoike. 
 
21:43 
Arrived at the official residence. 
 
4) Former North Korean agent Kim says, "I cannot believe Megumi is 
dead," while urging Japan to consider means to move the North 
 
TOKYO SHIMBUN (Top play) (Abridged slightly) 
March 12, 2009 
 
Eiji Tsukiyama, Busan 
 
A meeting took place in South Korea's Busan yesterday between family 
members of Taeko Yaguchi, who was abducted by North Korea in 1978 at 
the age of 22, and former North Korean agent Kim Hyon Hui, 47, who 
blew up a Korean Air Lines passenger jet (in 1987). After the 
meeting, a press conference was held in which Kim expressed a 
dismissive view about North Korea's explanation that Taguchi and 
Megumi Yokota, who was also abducted by the North at the age of 13, 
had died, saying, "I cannot believe it." Nevertheless, in the 
meeting, no new facts were revealed that could push the issue of 
Japanese nationals abducted to North Korea forward. 
 
At the same time, as a means to resolve the abduction issue, former 
North Korean agent Kim proposed that the Japanese government 
consider a method that can move Pyongyang while respecting its 
pride. 
 
Regarding North Korea's explanation that Taguchi died in July 1986, 
Kim said based on what she had heard at a guest center in 1987: "She 
has not died. She was taken to somewhere." 
 
About rumors that Taguchi married a South Korean in the North, Kim 
said: "I heard that an abductee was forced to marry in 1986. 
(Taguchi) might have married as well." She also indicated that she 
had not heard about who she married to. 
 
 
TOKYO 00000548  004 OF 011 
 
 
Kim also said that Yokota had served as a Japanese tutor for her 
female spy colleague and that she saw Yokota's pictures. Kim 
emphatically said: "I heard that Ms. Yokota had been hospitalized 
because of psychological problems. I cannot believe she has died." 
 
Taguchi's eldest son, Koichiro Iizuka, 32, said: "My five-year-long 
wish has come true, and I am truly grateful to everyone. (Ms. Kim) 
said that my mother is alive and that has given our rescue 
activities new hope. She also said that she would become my Korean 
mother, so I am very happy.'' 
 
Taguchi's elder brother Shigeo Iizuka, 70, while indicating that 
some 500 South Koreans have been abducted to the North, expressed 
his hope for close cooperation between Japan and South Korea, 
saying: "I would like to see the two countries take more concrete 
steps in addressing the abduction issue." 
 
5) Prime Minister Aso: Meeting between Taguchi kin and ex-North 
Korean agent was good; Skeptical about progress on abduction issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 12, 2009 
 
When asked by reporters about negotiations with North Korea on the 
abduction issue after the son and brother of abductee Yaeko Taguchi 
yesterday met former North Korean agent Kim Hyon Hui, Prime Minister 
Taro Aso last night said: "Since (abductees and their family 
members) are getting along, there is little time left. So, we will 
do our best as we have until now. " 
 
Asked about the meeting, Aso said: "Since they hoped for such a 
meeting for a long time, it was good." He, however, revealed his 
perception that the meeting would not directly lead to progress on 
the abduction issue. He stated: "I don't think the abduction issue 
will move forward immediately of that the meeting will greatly 
contribute to the resolution of the abduction issue." 
 
Aso met yesterday afternoon with South Korean presidential special 
envoy Sa Gong Il. He expressed appreciations to Sa for the South 
Korean government's cooperation for realizing the meeting. 
 
6) Former death row inmate Kim meets with Taguchi's family members; 
Government to demand reinvestigation into fate of abductees 
 
NIKKEI (Page 2) (Abridged slightly) 
March 12, 2009 
 
A meeting was held in South Korea's Busan yesterday between Shigeo 
Iizuka, 70, the elder brother of Taeko Yaguchi who was abducted by 
North Korea (in 1978) at the age of 22, and her son Koichiro Iizuka, 
32, and Kim Hyon Hui, 47, who was sentenced to death for blowing up 
a Korean Air Lines passenger jet (in November 1987) and later 
pardoned. Taguchi is believed to have been Kim's Japanese tutor 
before the KAL incident. In the wake of this meeting, the government 
intends to ask North Korea once again for an early reinvestigation 
into the fate of the Japanese abductees. 
 
A press conference was held after the meeting, in which former death 
row inmate Kim, referring to North Korea's explanation that Taguchi 
was deceased, said, "I cannot believe she is dead." Kim also noted 
about another abductee Megumi Yokota: "I heard that she had been 
hospitalized but that her condition was not so serious." The Iizukas 
 
TOKYO 00000548  005 OF 011 
 
 
returned to Japan later in the day. They are scheduled to brief on 
the morning of March 12 Chief Cabinet Secretary Takeo Kawamura on 
the meeting. 
 
In a press conference yesterday, Kawamura said: "We are going to 
strongly work upon North Korea to conduct a thorough reinvestigation 
into the fate of the Japanese abductees, as was agreed upon last 
August." A senior Foreign Ministry official, too, made the following 
comment regarding the contents of the meeting: "There were 
discrepancies (with North Korea's explanation). After learning of 
the results thoroughly, what must be told to the North must be 
told." He indicated a policy direction of seeking North Korea's 
explanation after examining the discrepancies. 
 
Tensions are building between Japan and North Korea, with the latter 
showing signs of a missile launch. A lead to find a breakthrough in 
the abduction issue has yet to come into sight. 
 
Prime Minister Yasuo Fukuda's announcement to resign last September 
and other events promoted the North to delay the reinvestigation. 
Given the Aso cabinet's dwindling support ratings, a Foreign 
Ministry source said: "Chances are high that the North will take a 
wait-and-see attitude regarding Japanese politics." 
 
"The North will more likely harden its stance than soften it," a 
government official said. Becoming aware of the North's move that 
appears to be preparing to launch a long-range ballistic missile, 
the government has begun studying measures, including implementing 
additional sanctions. Even so, the North has not changed its tough 
stance. There are no prospects for the resumption of the six-party 
talks, either. 
 
7) Meeting between former North Korean spy and abductee kin 
heightening expectations for developments in abduction issue 
 
SANKEI (Page 3) (Full) 
March 12, 2009 
 
Officials in the government and the ruling camp have welcomed the 
meeting between family members of Yaeko Taguchi, who was abducted by 
North Korea, and former North Korean agent Kim Hyon Hui. Former 
Prime Minister Shinzo Abe commented: "The governments of Japan and 
South Korea have finally taken joint steps on the abduction issue." 
It is expected that the meeting will serve to attract growing 
interest inside and outside Japan in the abduction issue and the 
bombing of a Korean Air Lines passenger jet, a terrorist act by 
North Korea. Regarding the contents of the meeting, a senior Foreign 
Ministry official said: "There were no special surprises," 
indicating that fresh information did not come out. 
 
Prime Minister Taro Aso told reporters last night: "I do not think 
that the meeting will greatly help resolve the abduction issue, but 
one of their (the family members') long-cherished desires has been 
fulfilled." He expressed his gratitude to visiting Sakong Il, a 
special envoy to South Korean President Lee Myung-bak, for the South 
Korean government's cooperation in arranging the meeting. Chief 
Cabinet Secretary Takeo Kawamura also said in a press briefing that 
the government will work on Pyongyang to start moving to resolve the 
abduction issue. 
 
The previous South Korean government of then President Roh Moo-hyun, 
who had a policy of reconciliation toward the North, was not eager 
 
TOKYO 00000548  006 OF 011 
 
 
to address the abduction issue. 
 
In contrast, the current Lee administration has not taken a 
conciliatory stance toward North Korea. Seeing its cooperation for 
the meeting, New Komeito Secretary General Kazuo Kitagawa expressed 
hopes for Japan and South Korea to strengthen cooperation in an 
attempt to throw light on the issue. He said: "Since South Korea has 
also been beset with the same problem, I hope that the Japanese and 
South Korean governments will cooperate in tackling the issue." 
 
A senior Foreign Ministry official noted: "If we find something that 
is different from what the North side had explained, we will 
question the North." The Japanese government intends to seek North 
Korea's explanation, if new facts are brought to light, based on 
what Kim said during her meeting with Taguchi's kin. 
 
Even so, some government officials are taking a cool-headed view, 
after hearing Kim's testimony about Megumi Yokota, another abduction 
victim, and Taguchi. A government source said: "She used 
observational or abstract expressions, such as 'I think so,' or 'I 
hear so'. He remarks remain to be confirmed." 
 
8) "No problem" about U.S. military's missile intercept: Nakasone 
 
YOMIURI (Page 2) (Full) 
March 12, 2009 
 
Foreign Minister Nakasone stated his views before the House of 
Councillors Budget Committee in its meeting yesterday concerning 
North Korea's ongoing readiness to launch a ballistic missile. 
Nakasone cited international law as a legal ground for U.S. forces 
to intercept a projectile if it is expected to land in Japan. 
 
"This is a sort of cooperation based on Japan's intention, so it's 
allowed under international law as well," Nakasone stated, 
indicating that there is no problem under international law even 
though such a missile launch cannot be concluded as an attack, 
against which the United States is obliged to defend Japan under the 
bilateral security pact. 
 
Nakasone was replying a question asked by Shozo Kusakawa, a House of 
Councillors member of the New Komeito. 
 
9) Japan not to intercept N. Korean missile if it passes over Japan: 
defense chief 
 
ASAHI (Page 4) (Full) 
March 12, 2009 
 
Defense Minister Hamada, sitting in yesterday on the House of 
Councillors Budget Committee, indicated that the Self-Defense Forces 
would not be able intercept a North Korean long-range ballistic 
missile if it happens to pass over Japan and land outside Japan's 
territorial waters like the Taepodong-1 missile North Korea launched 
in 1998. 
 
The SDF law allows interception only if and when there is a need to 
prevent such projectiles as a missile from landing on Japanese 
territory, causing harm to human lives and damaging properties. 
"Missiles and other projectiles that are not headed for Japan are 
not subject to the SDF law's Article 82-2," Hamada stated. 
 
 
TOKYO 00000548  007 OF 011 
 
 
10) LDP member Yamasaki confers on assistance for Afghan 
reconstruction with vice president 
 
YOMIURIO (Page 4) (Full) 
March 12, 2009 
 
Liberal Democratic Party (LDP) Foreign Affairs Research Commission 
Chairman Take Yamasaki, chief of the ruling parties' Afghanistan 
Reconstruction Research Team, on the evening of March 11 (evening of 
the 11th, Japan time) met with Second Vice President Khalili in 
Kabul. Yamasaki during the meeting underscored, "Japan will not 
spare assistance for the war on terror and the democratization of 
Afghanistan." Khalili asked for Japan's assistance for the repair of 
the remains of the Bamiyan Valley, a world heritage site of that 
country, and the costruction of a nearby road system. 
 
11) Ozawa on alert, hits prosecutors again 
 
YOMIURI (Page 2) (Abridged) 
March 12, 2009 
 
Democratic Party of Japan (Minshuto) President Ozawa is strongly 
wary of the Tokyo District Public Prosecutors Office's moves as his 
one-time secretary, Tomohiro Ishikawa, now a House of Councillors 
member of the DPJ, was asked to report for questioning over illicit 
donations that went from Nishimatsu Construction Co., a second-tier 
general contractor, to Ozawa's fund-managing body. Ozawa had 
retracted his criticism of the prosecutors for a while but is now 
becoming critical of the prosecutors again. 
 
Ozawa met yesterday morning at DPJ headquarters with five House of 
Councillors members elected once to date and about 20 House of 
Representatives members. According to one of them, Ozawa thinks the 
questioning of Ishikawa is an obstruction to election campaigning. 
Concerning the arrest of his state-funded secretary, one quoted 
Ozawa as saying: "In the past, it would be O.K. if we just revise 
the political funds report. It's abnormal. They are probably 
desperate while thinking they must not let Ichiro Ozawa to take 
office." Ozawa returned in the early afternoon to a hotel at Yaesu, 
Tokyo, where he has been staying. 
 
12) Tokyo public prosecutors start questioning construction 
companies in Tohoku region to clarify entire picture of political 
fund donations 
 
ASAHI (Top Play) (Excerpts) 
March 12, 2009 
 
In connection with illegal donations Nishimatsu Construction Co., a 
second-tier general construction contractor, made to Rikuzan-kai, 
Democratic Party of Japan President Ichiro Ozawa's fund management 
body, the Tokyo Public Prosecutors Office's special investigation 
squad has started questioning construction companies in the Tohoku 
region, including Iwate Prefecture, Ozawa's home district, as 
reference witnesses. Their aim is to shed light on the entire 
picture of the system for various general construction contractors 
to make donations to Ozawa's political organization. 
 
The questioning will likely be carried out, targeting a wide range 
of people from sources connected with Tohoku branches of various 
general construction contractors based in Sendai City to local 
construction companies that have subcontractual relations with 
 
TOKYO 00000548  008 OF 011 
 
 
them. 
 
Public prosecutors have learned through the questioning of sources 
connected with Nishimatsu Construction that President Ozawa's former 
secretary can be suspected to have been involved in the adjustments 
of order-placements in a bid-rigging scheme by general construction 
contractors based in Sendai City. They suspect that Takanori Okubo 
(47) -- arrested on suspicion of violating the Political Funds 
Control Law --  the first state-funded secretary to Ozawa, who also 
served as the treasurer of Rikuzan-kai, has been involved in 
order-placement adjustments as a successor to that secretary. 
 
It has been found that Nishimatsu Construction started making 
illegal donations with the aim of receiving orders for the 
construction of dams in the Tohoku region. In view of such a 
circumstance, public prosecutors are presumably suspecting that the 
Ozawa Office' has long been informing the names of companies it 
hopes to see receive orders to the bid-riggers' side. 
 
13) Unpopular premier given media exposure 
 
ASAHI (Page 4) (Abridged) 
March 12, 2009 
 
The Aso cabinet's support rate remains low even after the arrest of 
Democratic Party of Japan (Minshuto) President Ozawa's state-funded 
secretary. However, unlike the Fukuda cabinet that also suffered 
from low ratings, Prime Minister Aso has been showing up in the 
media. The Asahi Shimbun explores the secret of the media's 
infatuation with the unpopular premier. 
 
On March 3, the day after Aso (after flip-flopping) clarified his 
intent to receive the stimulus-related cash-handout, all commercial 
TV broadcasters took up this issue in their information programs. 
TBS, in its entertainment talk show program, Pinpon, reported on 
what Aso had said about the government's cash handout plan, 
superimposing: "Again! Prime Minister Aso flip-flops." The program 
introduced Aso's remarks in the past, incurring laughter with sighs 
from the studio's audience. 
 
Aso, since becoming prime minister, has been featured almost 
everyday in such programs. Akira Sato, chief producer of TV Asahi's 
"Super Morning," says Aso is "not a boring character." Aso's appeal 
is that he seems to be the average man on the street like the otaku 
(computer geeks) and akiba (people who hang about electronics shops 
in Tokyo's Akihabara area). He does not project the image of being a 
well-bred celebrity. 
 
Another commercial TV station's entertainment talk-show producer 
added, "When we have nothing with which to make the news, we are 
thankful for Mr. Aso." In January, Aso had a battle of words with 
Makiko Tanaka, a member of the House of Representatives, in a 
plenary sitting of the lower chamber. The viewer rating began rising 
as the broadcaster's began airing the Diet debate, exceeding 10 
PERCENT  and topping all other TV programs during that hour. 
 
Shukan Bunshun, a popular weekly magazine, top-headlined "Taro Aso" 
or "Aso cabinet" in 14 of its 25 issues printed since September last 
year, and gave second top play in two issues. When the Fukuda 
cabinet was in office, Bunshun gave top play to the prime minister 
in only eight of 47 issues. The gap with Aso's popularity is clear. 
The weekly's editor in chief, Makoto Shimada, said: "There is 
 
TOKYO 00000548  009 OF 011 
 
 
nothing but politics that can show a future image of the country at 
a turning point. Our readers also want to know if Prime Minister Aso 
can do so." 
 
14) Overloading of Prime Minister Aso's diplomatic schedule 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 12, 2009 
 
Prime Minister Taro Aso has launched coordination to set his 
diplomatic schedule with an eye to making a trip to East European 
countries during the Golden Week holidays in early May. This is an 
attempt to silence calls in his Liberal Democratic Party (LDP) for 
removing him from office by taking advantage of diplomacy. Aso is 
setting up a full diplomatic schedule from spring to summer. Since 
there remain enormous domestic issues to attend to, such as a new 
economic stimulus package, criticism may be raised from within the 
LDP that he is planning too many overseas trips. 
 
Aso plans to visit the Czech Republic, which now has the presidency 
of the European Union (EU), and hold talks with President Mirek 
Topolanek. He also intends to visit other East European countries. 
 
He is considering visiting China in late March to meet with 
President Hu Jintao and Prime Minister Wen Jiabao. He has already 
decided to attend the G-20 financial summit on April 2 in London; 
the summit meeting of the Association of Southeast Asian Nations 
plus Japan, China and South Korea in Thailand on April 10-12, and a 
planned East Asia summit. 
 
Moreover, Russia's Prime Minister Putin will visit Japan in mid-May. 
Aso is expected to attend the Japan-Pacific Islands Forum summit, 
which will take place on May 22-23 in Shimukappu Village, Hokkaido. 
 
 
Aso's aide stressed: 
 
"It is necessary to show the public visible achievements, but it is 
difficult to produce results through domestic politics. The prime 
minister must accumulate results through his diplomacy until the 
Group of Eight summit (Maddalena Summit) in July." 
 
If Aso fails to deal with the state of the economy, to which he 
gives top policy priority, he will unavoidably come under criticism, 
even if he scores points on the diplomatic front. Aso may find 
himself adrift at political sea, if he succeeds in his policy of 
attaching too much importance to diplomacy. 
 
15) Ruling party members eager to map out additional economic 
measures, eyeing Lower House election 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 12, 2009 
 
The Liberal Democratic Party (LDP) and the New Komeito began to move 
into full gear yesterday to work out additional economic stimulus 
measures that will be reflected in the fiscal 2009 supplementary 
budget bill. With only less than six months left until the House of 
Representatives members' terms of office expire, the contents of the 
new package will inevitably affect their strategies for the next 
Lower House election. Some people have criticized that the ruling 
camp, preoccupied with a scandal of illegal donations by Nishimatsu 
 
TOKYO 00000548  010 OF 011 
 
 
Construction Co., of which the investigation has already extended to 
LDP members, has set aside the economic issue. Their active moves 
seem to be also reflecting their desire to dispel such criticism. 
 
In its first meeting in the Diet Building yesterday morning, the New 
Komeito's new panel, New Economic Measures Taskforce, decided to 
draft its additional economic package by the end of this month. The 
party intends to mirror the new measures in its policy manifesto for 
the next Lower House election. 
 
The LDP yesterday set up a panel, Strategic Conference on 
Revitalization of the Japanese Economy. Prime Minister Taro Aso and 
Ota met at the Prime Minister's Office yesterday afternoon and 
confirmed that the two parties will complete coordination to unify 
their respective additional economic packages into one by the end of 
the month. 
 
The Association to Revitalize Japan, composed of LDP lawmakers close 
to Aso, also decided yesterday to finalize its own set of additional 
economic measures later this month. 
 
Election Strategy Committee Vice Chairman Yoshihide Suga and other 
LDP members proposed to the prime minister issuing government 
interest-free bonds and paper money as measures to buoy up the 
economy. As it stands, many members in the ruling camp have begun to 
move to hammer out additional economic stimulus measures, with an 
eye on the next Lower House election. 
 
16) Premier eager to secure Diet approval for key legislation, such 
as consumer agency, anti-piracy and pension bills 
 
YOMIURI (Page 4) (Excerpts) 
March 12, 2009 
 
Now that it is certain that the fiscal 2009 budget will secure Diet 
passage before the end of the current fiscal year, Prime Minister 
Aso is eager to have the Diet enact key legislation, including bills 
related to the budget and the consumer-agency establishment bill. He 
presumably intends to determine the timing to dissolve the Lower 
House, while trying to prolong the life of his administration with 
deliberations on those key bills. However, in reality, he will have 
to walk a tightrope in handling Diet affairs. 
 
Secretaries general and Diet Affairs Committee chairmen of the 
Liberal Democratic Party (LDP) and the New Komeito on March 11 met 
at a Tokyo hotel. Participants agreed on a plan to enact before the 
end of the month a tax-system amendment bill related to the fiscal 
2009 budget bill, as well as to speed up deliberations on other key 
bills. LDP Diet Affairs Committee Chairman Tadamori Oshima told 
reporters after the meeting, "We must handle one key bill after 
another." 
 
The prime minister and the ruling camp leadership are taking a 
stance of tackling key bills without pause presumably because they 
intend not to give an anti-Aso group in the party a chance to attack 
them. The prime minister's side is worried that once the fiscal 2009 
budget is enacted in late March and the compilation of an economic 
stimulus package begins, those who want to oust Aso could throw the 
political situation into turmoil, bring on negative public 
reaction. 
 
However, there in no guarantee things will go as the prime minister 
 
TOKYO 00000548  011 OF 011 
 
 
desires. The first barrier will be legislation related to the tax 
code amendment bill, which include tax code preferential measures, 
which will expire at the end of March. The government and the ruling 
parties are giving top priority to the handling of those bills. Some 
ruling party members are optimistic, because some Democratic Party 
of Japan (DPJ) members are of the opinion that they will agree with 
a vote on the bills in the Upper House before the end of March. 
However, even if this barrier is cleared, the Diet timetable for 
April and beyond is tight. A bill amending the road consolidation 
project special fiscal measures law and a bill amending the pension 
law also need to be deliberated. The DPJ is determined to go all out 
in confronting the ruling camp on these issues. So the possibility 
of enacting those bills remains elusive. 
 
17) Okada is a hot topic now in the race to succeed DPJ head Ozawa 
 
YOMIURI (Page 4) (Excerpt) 
March 12, 2009 
 
With Democratic Party of Japan (DPJ) President Ozawa now saddled 
with the issue of alleged illegal acceptance of donations from 
Nishimatsu Construction, the moves of Vice President Katsuya Okada, 
who used to be president, are now in the political spotlight. 
 
Traveling in Southeast Asia, Okada in Singapore on March 11 stressed 
repeatedly to the press corps the need for solidarity in the DPJ. 
The delegation includes Vice President Seiji Maehara, who is 
regarded as a critic of Ozawa. The will next visit Indonesia on the 
12th, and then return to Japan on the 13th. Their trip can be taken 
as an attempt to place distance between themselves and the furor 
over Ozawa. The stance taken by Okada aims to avoid internal party 
conflict. He has repeatedly states that he takes responsibility for 
the party's big defeat in the 2005 House of Representatives 
election, and that he will remain on his best behavior until the 
next Lower House election. 
 
In spite of that, there are strong calls for placing the party's 
hopes on Okada, with one DPJ lawmaker saying, "As the next Lower 
House election presses down on us, if we make the decision to change 
our president, it would be desirable to have a candidate who is not 
splashy, but one that is trustworthy and has a sense of stability." 
 
ZUMWALT