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RUEHBJ/AMEMBASSY BEIJING 8445
RUEHUL/AMEMBASSY SEOUL 4470
RUCNDT/USMISSION USUN NEW YORK 4341

UNCLAS SECTION 01 OF 09 TOKYO 000674 
 
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 03/26/09 
 
Index: 
 
North Korea problem: 
1) North Korea's launch pad ready and missile only needs to be 
fueled for launching now  (Sankei) 
2) U.S. Aegis ships have been deployed near Japan in anticipation of 
North Korea missile launch  (Yomiuri) 
3) Defense Ministry's think tank releases strategic report on North 
Korea that posits a large outflow of refugees in an emergency 
(Asahi) 
4) Democratic Party of Japan opposes transfer of Okinawa Marines to 
Guam, takes differing view of planned relocation of Futenma Air 
Station  (Asahi) 
 
5) Japanese-style PRT to be proposed as contribution to Afghan 
assistance  (Sankei) 
 
Political agenda: 
6) METI Minister Nikai's office rent paid by Nishimatsu Construction 
Co., as investigators expand probe to LDP bigwigs  (Yomiuri) 
7) "Dump Ozawa" move starting to emerge in the Democratic Party of 
Japan  (Tokyo Shimbun) 
8) But 45 of DPJ's prefectural chapters want to keep Ozawa at the 
party helm  (Tokyo Shimbun) 
9) Rest of the Diet session will be at the ruling camp's pace, given 
the DPJ's internal turmoil  (Asahi) 
 
10) Prime Minister's aides see little chance of Diet dissolution in 
April or May  (Tokyo Shimbun) 
11) Prime Minister Aso counting on Yosano, with his three economic 
portfolios, to put efforts into the extra stimulus package 
(Yomiuri) 
12) Yomiuri poll finds that 74 PERCENT  of the public do not trust 
country's bureaucracy  (Yomiuri) 
 
Articles: 
 
1) North Korea setting missile on launch pad 
 
SANKEI (Top Play) (Excerpts) 
March 26, 2009 
 
It was learned yesterday that North Korea has started work to move 
an upgraded Taepodong-2 long-range ballistic missile out of a hangar 
and set it on a launch pad at the Musudan-ri missile site. The work 
is expected to almost complete on the 26th. With only fueling left 
to be done, preparations for launching the projectile have entered 
the final stage. 
 
North Korea started preparations around late January for launching 
the new missile. The missile will be fueled after it is set on the 
pad. Some experts say that it will take five to seven days to 
complete fueling, but there is also the view that the work will be 
completed in only several hours. 
 
A fueling facility has reportedly been established underground near 
the launch pad at the Musudan-ri base. If this is true, it seems 
difficult to grasp the state of fueling through a spy satellite. 
 
North Korea has announced its plan to launch a "satellite" between 
April 4 and 8. Given that the missile is being set at this time, it 
is even more likely to be launched during that time as announced. 
 
TOKYO 00000674  002 OF 009 
 
 
 
2) U.S. Aegis ships standing ready around Japan 
 
YOMIURI (Page 2) (Full) 
March 26, 2009 
 
The U.S. Navy is now beginning to stage destroyers, equipped with 
Aegis radar to detect ballistic missiles, in waters around Japan for 
operations linked to North Korea's moves in preparation for 
launching a ballistic missile in the name of an "artificial 
satellite." The U.S. Navy will have at least five destroyers on 
stage, and they are all believed to have the Standard Missile 3 
(SM-3), a sea-based surface-to-air guided missile developed to 
intercept ballistic missiles. North Korea, according to its 
announcement, is planning its satellite launch for sometime between 
April 4 and 8. The U.S. destroyers are expected to start operations 
around Japan before that. 
 
Three U.S. naval destroyers belonging to the 7th Fleet entered port 
in Sasebo, Nagasaki Prefecture, each arriving on March 23 or later. 
Two of the three destroyers left port yesterday afternoon. Another 
destroyer, which arrived in the port of Aomori, will also leave port 
this afternoon. These three destroyers are expected to enter into 
operations in the Sea of Japan or in Pacific waters. 
 
Two Maritime Self-Defense Force destroyers, Kongo and Chokai, are 
also being anchored at the Sasebo base. They are expected to be 
swung to the Sea of Japan if the government makes a formal decision 
to ready for interception under the Self-Defense Forces Law's 
Article 82-2. 
 
3) Defense Ministry's research institute in analysis of North Korea 
calls for refugee measures 
 
ASAHI (Page 4) (Full) 
March 26, 2009 
 
The Defense Ministry's National Institute for Defense Studies has 
compiled a "general view of an East Asia strategy for fiscal 2009," 
which analyzes the security situation in East Asia. The report 
points out for the first time a possible outflow of refugees from 
North Korea in the aftermath of a regime change as a result of a 
struggle for power or other reasons. The report suggests the need 
for "more energy to be poured into working out measures" to deal 
with such possible refugees. 
 
On China, the report, focusing on its continued expansion of 
military expenditures, notes that "the nation has increased its 
military capacity as the source of its national power." In reference 
to its moves to possess aircraft carriers, the report indicates a 
sense of alarm, noting: "The Chinese Navy, which aims to have its 
vessels navigate in the open sea, will try to possess a large-sized 
surface naval vessels." The report sees China's relations with Japan 
and Taiwan as improving. 
 
4) DPJ to oppose Guam International Agreement, citing differences in 
policies over Futenma relocation plan 
 
ASAHI (Page 4) (Full) 
March 26, 2009 
 
The Democratic Party of Japan (DPJ) has decided to oppose a bill to 
 
TOKYO 00000674  003 OF 009 
 
 
ratify the Guam International Agreement, which has been submitted to 
the current Diet session. The bill is to confirm the contents of the 
roadmap for realignment of the U.S. forces in Japan, which was 
agreed on between the governments of Japan and the U.S. in 2006. The 
agreement is expected to come into effect even if it is rejected in 
the opposition-controlled House of Councillors as a decision in the 
House of Representatives takes precedence over an Upper House 
decision. Even so, the DPJ will express its opposition to the 
agreement, assuming that the party would grab political power and 
start negotiations with the U.S. from scratch in the future. 
 
The accord specifies: "The Japanese government intends to complete" 
the relocation of U.S. Marine Corps' Futenma Air Station to off 
Henoko in Nago City." The DPJ has shown understanding about the 
Marines-transfer plan, but the party's 2008 Okinawa Vision proposes 
relocating the air station outside of the Okinawa Prefecture and 
then outside of Japan in the future. A senior party member said: 
"The contents of the accord are inconsistent with the party's 
policy." 
 
It has been decided that Japan will bear 6 billion dollars out of 
the 10.2 billion dollars in total costs related to transferring 
Marines to Guam. Regarding the 6 billion dollars, the DPJ has 
claimed that there is no basis for the calculation. The party has 
also reacted to the fact that some of the expenses to be paid by 
Japan will be used for facility construction for the U.S. Navy and 
Air Force in Guam. The DPJ's position has not changed from what it 
showed when it opposed the U.S. forces realignment special measures 
bill in 2007. 
 
The DPJ reaffirmed these views in an executive meeting of its 
foreign affairs and defense committee yesterday. Meanwhile, the 
party rejected a call by the ruling camp to start deliberations on 
these issues yesterday, claiming that the government has not fully 
disclosed related information. 
 
When DPJ President Ichiro Ozawa met U.S. Secretary of State Hillary 
Clinton in February, he emphasized that the U.S. forces realignment 
plan should be reviewed, based on his stance of pursuing an equal 
Japan-U.S. alliance. In the executive meeting yesterday, 
participants agreed on the view that even if Ozawa steps down over 
an illegal political donation scandal, the DPJ, which has confirmed 
its opposition through repeated deliberations, will remain opposed 
to the plan. 
 
5) Defense Ministry think-tank advocates Japanese-style PRT for 
assisting Afghanistan 
 
SANKEI (Page 5) (Full) 
March 26, 2009 
 
The National Institute for Defense Studies, a think-tank of the 
Defense Ministry, released an annual report yesterday titled "An 
Outlook for the Strategic Environment in East Asia." The NIDS report 
stresses the needs for Japan to make positive efforts for 
international peace cooperation. Referring to Afghanistan, the 
report says Japan should consider organizing its own provincial 
reconstruction team (PRT) consisting of the Self-Defense Forces and 
civilians for Afghan assistance. The report analyzes North Korea's 
moves preparing to launch a long-range ballistic missile, saying the 
aim of North Korea's moves is to draw the United States' attention. 
 
 
TOKYO 00000674  004 OF 009 
 
 
The NIDS report notes that the United Nations' peacekeeping 
operations have now changed from being ceasefire surveillance 
activities to operations including those using armed force. It shows 
a sense of crisis about Japan's lowering presence in the number of 
personnel on PKO missions overseas due to its constitutional 
constraints or for some other reasons, pointing out that Japan 
currently ranks 79th among 120 countries. 
 
Given such facts, the report warns that disputes in a distant region 
could directly threaten or affect Japan, suggesting the need for 
Japan to be aware of this possibility as the party concerned rather 
than as a third party. 
 
The report, referring to PKO with the potential use of armed force, 
cites Japan's dispatch of SDF personnel to Iraq in the past as an 
example. "It is possible for Japan from constitutional 
interpretation to conduct humanitarian and reconstruction assistance 
as well as logistical support," it says. 
 
In addition, the report shows particular concern about public 
security in Afghanistan, which the U.S. Obama administration regards 
as the frontline in the war on terror. "It is an effective option 
for Japan to organize its own provincial reconstruction team using 
the SDF's self-contained nature and its high transport capacity 
combined with civilian assistance," the report says. Japan has now 
sent out Maritime Self-Defense Force vessels for an antipiracy 
mission in waters off Somalia. In this connection, the report 
suggests the need to consider participating in PKO activities and 
multinational forces there. 
 
6) Nishimatsu provided Nikai with free use of office for his 
political group 
 
YOMIURI (Top play) (Excerpts) 
March 26, 2009 
 
According to sources, Nishimatsu Construction Co., a second-tier 
general contractor, sent 3 million yen annually to a Liberal 
Democratic Party (LDP) local chapter represented by Economy, Trade 
and Industry Minister Toshiro Nikai to cover the rent of a 
condominium unit in Osaka used for the office of a Nikai-related 
political organization, disguising the money as individual donations 
to the LDP branch. The allegation is that Nishimatsu provided Nikai 
with free use of the office. The political fund reports by Nikai's 
political organization and the local LDP chapter do not reflect 
these flows and true origin of the money, the sources said. A 
special investigation squad of the Tokyo District Public Prosecutors 
Office apparently suspects the conduct of these entities might be in 
violation of the Political Funds Control Law. 
 
According to the sources, the Nikai-related political organization, 
Kansai Shinpu-kai (Kansai New Breeze Association), is actually 
operated by Nikai's younger brother. 
 
According to Nishimatsu-related sources, Nishimatsu was asked by 
Nikai's brother to provide an office around 1999. Nishimatsu ordered 
its related design company (based in Minato Ward, Tokyo) to buy a 
new condo in Osaka. After that, the design company and Kansai 
Shinpu-kai concluded a lease contract on the condo at an annual rent 
of about 2.8 million yen. Kansai Shinpu-kai had been using the 
office until last month. 
 
 
TOKYO 00000674  005 OF 009 
 
 
If Nishimatsu provided Kansai Shinpu-kai with a free office, it 
means that the political group accepted donations from a private 
company that the Political Funds Control Law prohibits. In addition, 
the LDP chapter, which entered the 2 million yen in its political 
fund reports' individual donations section, may have violated the 
law, which bars donations under other people's names or the 
falsification of fund records. 
 
Nikai told the Yomiuri Shimbun: "Each political organization is 
correctly providing political funding records in its funding report 
in compliance with law." 
 
7) Moves to oust Ozawa surface in DPJ 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 26, 2009 
 
Following Democratic Party of Japan (DPJ) President Ozawa's 
announcement of his decision to remain in his post, calls for his 
resignation surfaced in the party on March 25. Such views have been 
festering in the party after the revelation of the illegal political 
fund donations case involving his aide. Ozawa plans to directly seek 
understanding from all DPJ lawmakers on the 27th. Whether he can 
succeed or not will hold the key to whether he can remain in his 
post. 
 
Ozawa on the 25th did not emerge from the hotel where he is staying. 
Remarks critical of him were heard in the party during his absence. 
Lower House member Yoko Komiyama, education, culture and S&T 
minister of the "Next Cabinet," urged Ozawa to step down at an early 
date, citing the negative impact on the upcoming election as a 
reason. She said, "In order for the DPJ to take the reigns of 
government, it would be better if Mr. Ozawa steps down. He needs to 
make a decision at the earliest possible date." 
 
Former Secretary General Yoshito Sengoku also stressed: "The 
president should voluntarily make a political decision immediately. 
It is necessary for him to determine what should be done in order 
for the DPJ to win the election." 
 
Upper House member Renho at a plenary meeting of Upper House members 
held the same day even criticized a response of the leadership, 
which approved Ozawa remaining in his post, "The people are 
suspicious of the DPJ. The leadership is accountable for its 
decision." 
 
Those criticisms are based on the judgment that aside from the truth 
of the matter, since Ozawa's secretary was indicted in connection 
with an illegal political fund donations case, people's distrust of 
the DPJ over a politics-and-money scandal cannot be removed as long 
as Ozawa remains the leader. 
 
Secretary General Yukio Hatoyama, who supports Ozawa, however, 
underscored, "The president needs to give an elaborate accounts. 
Since the leadership has decided to have Mr. Ozawa stay on, we all 
should make efforts to seek understanding from the people." 
 
8) Forty-five prefectures support continuation of Ozawa leadership, 
according to survey of senior DPJ members: 16 prefectures point out 
impact on upcoming election 
 
TOKYO SHIMBUN (Page 2) (Full) 
 
TOKYO 00000674  006 OF 009 
 
 
March 26, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa announced his 
decision to remain in his post after his state-funded first 
secretary was indicted for accepting massive political funds 
donations made by Nishimatsu Construction Co. Kyodo News Agency on 
March 25 conducted a spot survey targeting senior DPJ members in 47 
prefectures. 
 
Secretaries general of 45 prefectures replied that they would 
support Ozawa staying on in his post. However, 16 prefectures, 
including Osaka, pointed out the negative impact of his decision. To 
a question on whether Ozawa has fulfilled his accountability, six 
prefectures, including Kyoto, replied that he had not. 
 
The survey has highlighted the dismay felt by DPJ local chapters. 
While they continue to hope that Ozawa will display leadership going 
into the next Lower House election, where a change in government is 
at stake, they are also concerned about the negative impact on the 
election. Many DPJ lawmakers are opposing Ozawa staying on in his 
post. Chances are that the current chaotic state in the DPJ over 
Ozawa's future will continue. 
 
No respondents sought Ozawa's resignation. Only Nara Prefecture and 
Tokushima Prefecture replied that they did not know. Among 
prefectures that supported Ozawa's decision, some, such as Tottori 
Prefecture, attached a condition that he should step down depending 
on future trends in voter opinion. 
 
Concerning Ozawa's accountability, 29 prefectures replied that Ozawa 
has fulfilled his accountability, while 11 prefectures answered that 
they did not know. Fukushima Prefecture steered clear of giving a 
clear-cut reply, but requested that Ozawa fulfill his accountability 
should new facts be exposed in the aide's trial. 
 
9) Ruling camp to control pace of debate in second half of Diet; 
Fiscal 2009 budget to clear Diet tomorrow 
 
ASAHI (Page 4) (Excerpts) 
March 26, 2009 
 
In the wake of the illegal donation scandal involving Nishimatsu 
Construction Co., defense has now changed to offense in the 
maneuvering between the ruling and opposition camps in Diet debate. 
Since the main opposition Democratic Party of Japan (DPJ) has yet to 
come up with a strategy, the ruling coalition is now controlling the 
pace of deliberations in the ongoing Diet session. The ruling and 
opposition parties are actively working on the modification of 
bills. Once the fiscal 2009 budget and related bills clear the Diet 
tomorrow, the focus will be on bills related to the establishment of 
the Consumer Agency, as well as the anti-piracy legislation. 
 
The Upper House Diet affairs committee chairmen of the ruling 
Liberal Democratic Party (LDP) and DPJ agreed yesterday to put the 
fiscal 2009 budget and related bills to a vote on the 27th in a 
plenary session of the House of Councillors. If the Upper House 
votes them down, the budget will be enacted, since the approval of 
the Representatives constitutes the Diet approval regarding budgets. 
The related bills will be enacted after they are readopted by the 
Lower House. Asked about the possibility of the opposition resisting 
in the joint deliberation council of the two Diet chambers, DPJ 
Upper House Diet Affairs Committee Chairman Susumu Yanase said in a 
 
TOKYO 00000674  007 OF 009 
 
 
press conference yesterday: "I think there would be no need to 
deliberate on them in the joint deliberation council, since 
deliberations were carried out in the Budget Committee." 
 
About two months ago, the DPJ strongly rejected the idea of quickly 
taking a vote on the second supplementary budget for the fiscal 2008 
budget. The ruling and opposition camp engaged in the fierce battle 
for two days in the joint council of the two Diet houses. One of the 
LDP executives said: "There was a possibility that the related bills 
would clear the Diet in late April or early May. I did not expect 
that the budget and related bills would be enacted together." 
 
10) Prime Minister's Office reluctant to dissolve Lower House in 
April or May 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 26, 2009 
 
After Democratic Party of Japan (DPJ) President announced his 
intention to remain in his post, some members in the ruling Liberal 
Democratic Party (LDP) are calling for an early dissolution of the 
House of Representatives. The Prime Minister's Official Residence 
(Kantei) side, however, remains reluctant about the idea. The Kantei 
side's position is that the LDP should make a frontal attack against 
the DPJ by steadily implementing policies, centering on economic 
stimulus measures and that if the LDP takes advantage of the DPJ's 
error, it would be adversely affected. 
 
On the evening of March 24, Prime Minister Taro Aso dined with LDP 
Election Strategy Council Deputy Chairman Yoshihide Suga and others 
in a Tokyo hotel. One participant asked Aso: "Is it true that Mr. 
Suga calls for an early dissolution?" Aso replied: "Why don't you 
ask Suga? 
 
However, Aso has no intention to dissolve the Lower House in April 
or May. On March 15, he revealed his intention to put off Lower 
House dissolution to sometime after a supplementary budget for the 
fiscal 2009 budget clears the Diet. The extra budget will likely be 
submitted to the Diet after the consecutive holidays in Mary at the 
earliest. There is a growing view that since Aso is eyeing 
dissolving the Lower House after the Group of Eight summit 
(Maddalena Summit) in early July, when the extra budget will surely 
clear the Diet, since he has been eager to attend the G-8 summit. 
 
A person close to Aso criticized calls for dissolving the Lower 
House in April, saying: 
 
"I don't understand why an April dissolution has been raised. The 
prime minister has steadily carried out policy measures. There 
remain many key bills, including the anti-piracy bill. So, he can't 
dissolve the Lower House." 
 
11) Yosano to continue serving in three posts concurrently for time 
being: Prime Minister decides with eye on additional economic 
stimulus measures 
 
NIKKEI (Page 2) (Excerpts) 
March 24, 2009 
 
Prime Minister Taro Aso on March 25 firmed up his intention to have 
Kaoru Yosano continue to serve as finance minister, state minister 
for financial services and state minister for economic and fiscal 
 
TOKYO 00000674  008 OF 009 
 
 
policy after the enactment of the fiscal 2009 budget bill and 
related bills as well. He has determined that Yosano would be 
suitable for looking into additional economic stimulus measures. 
There are still calls from within the ruling parties for shuffling 
the cabinet or dissolving the Lower House for a general election. 
Aso, however, will try to nail down the impact of investigations 
into massive political funds donations made by Nishimatsu 
Construction Co. However, there is no guarantee that a boost to the 
prime minister will continue. He will likely have to walk a 
tightrope in his decision making. 
 
The fiscal 2009 budget bill and bills related to amendments to the 
tax system will likely secure Diet approval on the 27th. Following 
this, the prime minister will meet with Yosano and convey his 
intention to have him continue to serve in his three posts. The 
prime minister will then order Yosano to formally compile additional 
stimulus measures, which the ruling parties are already looking 
into. Aso will hold a press conference after a meeting between the 
government and the ruling parties and explain the future policy of 
the government. 
 
Aso to make it clear that he will not shuffle cabinet 
 
It has been viewed that since Yosano had a period of ill health, it 
would be difficult for him to serve in the three posts for a long 
period of time. The prime minister had intended to relieve him of 
concurrent offices after passage of the budget bill. However, he has 
now decided that it would be desirable if Yosano remains in his 
present posts, since there are also no signs of Yosano developing 
any unhealthy symptoms and in the sense of speeding up preparations 
for an additional stimulus package. 
 
Calls for shuffling the cabinet as a measure to find a breakthrough 
in sluggish public support ratings are lingering in the government 
and the ruling parties. Having Yosano continue to serve in the three 
posts is also intended to make it clear that he will not shuffle the 
cabinet for that purpose. Aso will not completely seal such a 
possibility in readiness for a possible spillover of the political 
donation scandal to affect Liberal Democratic Party lawmakers. In 
that case, too, the likelihood is strong that Yosano, who has been 
taking the initiative in preparing economic stimulus measures, will 
continue to serve in the three posts. 
 
12) Poll: 74 PERCENT  don't trust bureaucrats 
 
YOMIURI (Page 2) (Abridged) 
March 26, 2009 
 
In a recent nationwide face-to-face public opinion survey conducted 
by the Yomiuri Shimbun across the nation on March 14-15, respondents 
were asked if they trusted central government bureaucrats. In 
response to this question, 22 PERCENT  answered "yes," with 74 
PERCENT  saying "no." Respondents were also asked if they thought 
the government should recruit excellent human resources as its 
bureaucrats. To this question, 81 PERCENT  answered "yes." The 
public is strongly distrustful of the bureaucracy now. However, it 
looks like the public strongly wants the bureaucracy to function in 
carrying out state administration. 
 
There was no change in the proportions of "yes" and "no" from the 
last survey taken in May 2002. The public's distrust of bureaucrats 
did not change for the better in the survey this time. 
 
TOKYO 00000674  009 OF 009 
 
 
 
The survey was conducted with a total of 3,000 persons chosen from 
among the nation's voting population. Answers were obtained from 
1,755 persons (58.5 PERCENT ). 
 
ZUMWALT