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UNCLAS SECTION 01 OF 05 TOKYO 000598 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 03/18/09 
 
INDEX: 
 
(1) Ruling coalition in dilemma over measures for additional 
economic package (Mainichi) 
 
(2) Proposals on tourism, transportation made at second session of 
expert panel meeting (Nikkei) 
 
(3) TOP HEADLINES 
 
(4) EDITORIALS 
 
(5) Prime Minister's schedule, March 17 (Nikkei) 
 
(6) Mori, South Korean premier agree on need to prevent North's 
"satellite" launch (corrected) (Yomiuri) 
 
ARTICLES: 
 
(1) Ruling coalition in dilemma over measures for additional 
economic package 
 
MAINICHI (Page 5) (Full) 
March 18, 2009 
 
Little progress has been made in work to devise additional economic 
stimulus measures by the Liberal Democratic Party (LDP) and the New 
Komeito. The ruling coalition intends to focus on public works 
projects by spending public funds. To prevent criticism from being 
evoked as "pork-barrel projects," the coalition eyes 
"next-generation" projects that will lead to creating jobs and 
protecting the environment. But the fiscal scale of such projects is 
small. With an eye on the next House of Representatives election, 
calls are growing among party members for large-scale government 
spending. Under this situation, conventional-type public works 
projects that involve huge amounts of government disbursements may 
be carried out again. 
 
The LDP held a meeting of the strategy council to revive the 
Japanese economy, chaired by former Chief Cabinet Secretary Nobutaka 
Machimura, at party headquarters yesterday to discuss additional 
measures to buoy up the economy. A representative from the party's 
research commission on international competitiveness proposed that 
Japan should give priority to fiscal disbursements over fiscal 
reconstruction for the time being in order to cope with the ongoing 
once-in-a-century depression." The representative listed these six 
items: (1) roads; (2) airports; (3) harbors; (4) web railways; (5); 
and underground power lines. He then called for 14.7 trillion yen in 
government funds to implement projects related to these items 
 
Many participants presented views seeking a switch from the fiscal 
reconstruction policy, one suggesting: "It is necessary to change 
the current approach." An influential member of the conference said 
after the meeting: "When considering job opportunities, 
conventional-type public works projects are the most effective 
means. Next-generation-type public works projects cannot 
significantly create jobs." 
 
As "next-generation-type" projects, LDP members have proposed a 
Japanese version of the Green New Deal policy, such as those to 
spread solar power generation and next-generation automobiles across 
the nation and to make schools safe in earthquakes. Traditional 
 
TOKYO 00000598  002 OF 005 
 
 
public works projects tend to be criticized as intended for general 
contractors. Keeping such criticism in mind, some ruling party 
members suggest making next generation-type projects as eye-catchers 
in the extra economic package. But since such projects do not need 
large amounts of government funds, a senior LDP Policy Research 
Council member posed questions about such projects' effect on the 
economy. The New Komeito also remains unable to devise major 
projects, so some members have begun to say that there is no need to 
produce a package in haste because the next general election might 
be delayed. 
 
The two ruling parties intend to compile an extra package by the end 
of March. The ruling parties, given the worsening economic 
situation, also aim to give a boost to the administration by 
presenting additional measures. But a senior LDP member grumbled: 
"If we come up with traditional public works projects, public 
support for the cabinet might tumble further." 
 
(2) Proposals on tourism, transportation made at second session of 
expert panel meeting 
 
NIKKEI (Page 5) (Full) 
March 18, 2009 
 
The government on March 17 held at the Kantei a second meeting of 
the Council to Overcome the Economic Crisis, which it has 
established to hear views from specialists from various fields. 
Representatives from the transport, tourism and real estate 
industries exchanged views. Many participants voiced their views, 
with one saying it is important to accept foreign tourists in a 
positive manner and revitalize local regions by improving traffic 
networks. 
 
Japan Airlines President Haruka Nishimatsu pointed out that 
increasing the number of Chinese tourists to Japan by easing 
requirements for a tourist visa would lead to boosting domestic 
demand. He said that it is important to connect Narita Airport and 
Haneda Airport well for foreign tourists' smooth access to various 
tourist spots. 
 
Yoshimichi Hoshino, president of Hoshino Resort, explained his pet 
theory of easing congestion and evening out demand for tourism by 
having each region observe the Golden Week consecutive holidays on 
separate days. He also noted that Japan is a safe place and this is 
a factor that can become a resource in luring foreign tourists. 
Prime Minister Aso responded in a humorous manner, "In Japan, even 
if you get drunk and fall asleep on a subway train, you don't have 
to worry about your bag being snatched." 
 
In the real estate area, Mitsui Fudosan President Hiromichi Iwasa 
proposed measures to generate demand for housing by easing the 
housing loan screening process, including granting government 
guarantee to housing loans extended by financial institutions and 
using government-affiliated financial institutions. In the 
agricultural sector, Vice Chairman Masao Hatakeyama of the Central 
Union of Agricultural Cooperatives (Zenchu) called for financial 
support, saying: "We will continue rice acreage reduction. However, 
it is imperative to improve a safety net in order for farmers to 
ensure income." 
 
The panel will meet until the 21st. Views from its members will be 
reflected in an additional economic stimulus package, which the 
 
TOKYO 00000598  003 OF 005 
 
 
government will compile as early as April. 
 
Points of views heard at expert council on the 17th 
 
Masao Iizuka: Chairman of the Japan Forestry Association 
 Financial assistance to encourage forestry enterprise operators 
 
Hiromichi Iwasa: President of Mitsui Fudosan 
  Generate demand by granting government guarantee to housing loans 
 
Masahiko Okabe: Chairman of Nippon Express 
 Improve the functions of Haneda and Narita Airports and consolidate 
neighboring transportation networks 
 
Isao Nakasu: Chairman of the Japan Fisheries Association 
 Promote employment in the fisheries industry and assistance for 
expanded fisheries product exports 
 
Haruka Nishimatsu: President of Japan Airlines 
 Ease requirements for a tourist visa issued to Chinese. Increase 
the number of foreign visitors to Japan. 
 
Masao Hatakeyama: Vice chairman of the Central Union of Agricultural 
Cooperatives (Zenchu) 
 Improve financial support for a decline in agricultural production 
due to rice acreage reduction. 
 
Takashi Fukuda: President of iSquare 
 Reduce or exempt from the gas tax imposed on the transportation of 
agricultural products and highway tolls 
 
Yoshimichi Hoshino: President of Hoshino Resort 
 Each region observes the Golden Week holidays on separate days. 
Revitalize tourism by leveling peak periods. 
 
(3) TOP HEADLINES 
 
Asahi: 
Poll: 60 PERCENT  greatly dissatisfied with politics 
 
Mainichi: 
Four major electronics firms, including Sharp, to freeze regular 
wage hikes 
 
Yomiuri: 
Report from waters off Somalia: SOS often follows attack by pirates 
 
Nikkei: 
Government to cooperate with private sector to strengthen Japan's 
photovoltaic power generation business 
 
Sankei: 
Akita governor may have been aware of donations to Ozawa from 
general contractors, including Nishimatsu 
 
Tokyo Shimbun: 
Toyota's bonus is to be 670,000 yen lower than last year; Sharp to 
freeze regular wage hike 
 
Akahata: 
In response to JCP's Koike, MHLW minister promises flexible stance 
on insurance cards for elderly 
 
TOKYO 00000598  004 OF 005 
 
 
 
 
(4) EDITORIALS 
 
Asahi: 
(1) Political Funds Control Law: Thorough information disclosure 
called for 
(2) Corporate donations must be banned 
 
Mainichi: 
(1) Elderly healthcare system: Political parties urged to present 
reform plans for next general election 
(2) Sex education ruling raises question about existence of 
education board 
 
Yomiuri: 
(1) Stabilize medical care system for people over 75 
(2) NTV president resigns: Examine erroneous report to restore 
public trust 
 
Nikkei: 
(1) Bank of Japan to support banks' capital 
(2) Expectation and concern over reduced expressway tolls 
 
Sankei: 
(1) Sell "environment" for Japan's bid to host 2016 Olympic Games 
(2) Resignation of NTV president: Restoration of public trust takes 
a thorough explanation 
 
Tokyo Shimbun: 
(1) NTV president resigns: Examine erroneous report to restore 
public trust 
(2) Reform of child-care system: Parents can no longer wait 
 
Akahata: 
(1) El Salvador election: Historic outcome breaks America's yoke 
 
(5) Prime Minister's schedule, March 17 
 
NIKKEI (Page 2) (Full) 
March 18, 2009 
 
09:01 
Attended a cabinet meeting in the Diet. Chief Cabinet Secretary 
Kawamura stayed behind. 
 
10:15 
Met at the Kantei with Brazil-Japan Parliamentary League Chairman 
Iihoshi, with Chief Cabinet Secretary Kawamura present. Followed by 
Japan International Cooperation Agency President Sadako Ogata, with 
Deputy Foreign Minister Sasae. 
 
11:05 
Met Deputy Chief Cabinet Secretary Matsumoto. 
 
12:54 
Attended a meeting of lawmakers in the Diet. 
 
13:02 
Attended a Lower House plenary session. 
 
16:08 
 
TOKYO 00000598  005 OF 005 
 
 
Met at the Kantei with Vice Finance Minister Sugimoto, Vice Minister 
of Finance for International Affairs Shinohara, and Assistant Deputy 
Chief Cabinet Secretary Fukuda. Fukuda stayed behind. Followed by 
Cabinet Office Vice Minister Tanimoto, Parliamentary Secretary Uno, 
Vice Minister Yamamoto, Decoration Bureau Director General 
Fukushita, and others, with deputy chief cabinet secretaries 
Matsumoto, Konoike and Uruma present. Followed by Japan Basketball 
Association Deputy President Yushi Samuro and others. 
 
17:56 
Attended a gathering of the Japan Junior Chamber's Senior Club 
members at Tokyo Prince Hotel. 
 
19:03 
Attended an expert meeting to contain the economic crisis at the 
Kantei. Later, talked with Economy, Trade and Industry Minister 
Nikai. 
 
20:53 
Returned to the official residence. 
 
(6) Mori, South Korean premier agree on need to prevent North's 
"satellite" launch (corrected) 
 
YOMIURI (Page 4) (Full) 
March 18, 2009 
 
Hajime Furukawa, Istanbul 
 
Former Prime Minister Yoshiro Mori of the Liberal Democratic Party 
and South Korean Prime Minister Han Seung-soo agreed on the view in 
their meeting on the afternoon of March 17, local time, that Japan, 
the U.S. and South Korea should take joint steps to prevent North 
Korea from launching a missile, which Pyongyang calls a "satellite." 
 
 
Mori met with Turkish President Abdullah Gul on the night of the 
16th, local time. In reference to the additional economic package 
that Prime Minister Taro Aso had instructed the ruling coalition to 
work out, he said: "The prime minister gives priority to boosting 
the economy over holding an election or dissolving the House of 
Representatives." 
 
ZUMWALT