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RUCNDT/USMISSION USUN NEW YORK 4380

UNCLAS SECTION 01 OF 08 TOKYO 000703 
 
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 03/30/09 
 
Index: 
 
Ozawa in deep trouble: 
1) Asahi poll: 63 PERCENT  of public say Ozawa should resign as DPJ 
head; Aso Cabinet support rate rises to 22 PERCENT   (Asahi) 
2) Nikkei poll: 64 PERCENT  want Ozawa to quit his DPJ post; Aso 
Cabinet support jumps 10 points to 25 PERCENT   (Nikkei) 
3) DPJ backed candidate in Chiba gubernatorial race loses badly to 
LDP's choice, as voters react negatively to Ozawa's money scandal 
(Tokyo Shimbun) 
4) Chiba election loss triggers new wave of "oust Ozawa" cries in 
the DPJ  (Tokyo Shimbun) 
 
5) Investigators targeting METI Minister Nikai's political 
organization for illegal donations from Nishimatsu construction 
readying arrest papers  (Yomiuri) 
 
North Korea missiles: 
6) U.S., Japan, South Korean delegates to six-party talks agree that 
a missile launch by North Korea should by handled by the UN Security 
Council  (Yomiuri) 
7) Japanese, British premiers agree that a North Korea missile 
launch would be a violation of a UN resolution  (Sankei) 
8) Defense Ministry and the Prime Minister's office at odds over the 
issuing of the destruct order related to North Korea's missile 
launch  (Tokyo Shimbun) 
 
9) U.S., Japan agree to joint research in eight environmental and 
energy areas  (Yomiuri) 
 
Foreign aid: 
10) Official development assistance (ODA) outlays to rise for the 
first time in three years  (Nikkei) 
11) Japan at the G-20 summit to announce 2 trillion yen program of 
ODA for Asia  (Nikkei) 
 
Articles: 
 
1) Poll: 63 PERCENT  urge Ozawa to quit; Cabinet support rebounds to 
22 PERCENT 
 
ASAHI (Top play) (Abridged) 
March 30, 2009 
 
Democratic Party of Japan (Minshuto) President Ozawa's state-funded 
secretary has been indicted over illicit donations from a 
construction company to Ozawa's fund-managing body. In the wake of 
this incident, the Asahi Shimbun conducted a telephone-based spot 
nationwide public opinion survey on March 28-29. According to 
findings from the survey, 63 PERCENT  of the respondents answered 
"yes" when they were asked if they thought it would be better for 
Ozawa to resign from his party post, up from 57 PERCENT  in the last 
survey taken March 7-8. "No" accounted for 24 PERCENT . The DPJ was 
substantially above the ruling Liberal Democratic Party in the 
public's preference of political parties for proportional 
representation in the next election for the House of 
Representatives. In the survey this time, however, the gap between 
the two parties narrowed, with the DPJ at 31 PERCENT  and the LDP at 
27 PERCENT . 
 
Even among DPJ supporters, the "better to resign" opinion accounted 
for 51 PERCENT , and "better to stay on" at 44 PERCENT . In the last 
 
TOKYO 00000703  002 OF 008 
 
 
survey, the figures were 40 PERCENT  versus 49 PERCENT , and those 
in support of Ozawa's decision to stay on outnumbered those 
negative. In the survey this time, however, "better to resign" 
topped "better to stay on." 
 
In the survey, respondents were also asked which political party 
they would vote for in their proportional representation blocs if 
they were to vote now. In an earlier survey taken in mid-February 
before the last survey and before the arrest of Ozawa's secretary, 
the DPJ was substantially above the LDP, with the DPJ at 42 PERCENT 
and the LDP at 22 PERCENT . In the last survey, however, the gap 
narrowed to 36 PERCENT  versus 24 PERCENT . 
 
In the breakdown of public support for political parties as well, 
the LDP and the DPJ were on a par at 22 PERCENT  in the last survey. 
In the spot survey this time, however, the LDP outstripped the DPJ, 
with the LDP at 27 PERCENT  and the DPJ at 20 PERCENT . 
 
In the meantime, the rate of public support for Prime Minister Aso's 
cabinet was 22 PERCENT , rising from the 14 PERCENT  rating in the 
last survey. Among LDP supporters, the Aso cabinet's approval rating 
was only 40 PERCENT  in the survey before last but picked up to 48 
PERCENT  in the last survey and to 56 PERCENT  in the survey this 
time. 
 
Respondents were further asked which one between Aso and Ozawa they 
thought would be more appropriate as premier. In this preference of 
leadership for the nation, Aso scored 30 PERCENT , with Ozawa at 26 
PERCENT . The figures were 22 PERCENT  versus 32 PERCENT  in the 
last survey. In the latest survey, however, Aso outstripped Ozawa. 
 
2) Poll: 64 PERCENT  urge Ozawa to quit; Cabinet support rises to 25 
PERCENT 
 
NIKKEI (Page 1) (Abridged) 
March 30, 2009 
 
In the latest opinion poll jointly conducted by the Nihon Keizai 
Shimbun and TV Tokyo on March 27-29, respondents were asked if they 
thought Ichiro Ozawa, president of the leading opposition Democratic 
Party of Japan (Minshuto), should resign his party post over the 
indictment of his state-funded secretary in connection with 
Nishimatsu Construction Co.'s huge illicit payoffs to Ozawa's 
fund-managing body. In response to this question, 64 PERCENT 
answered "yes," with 22 PERCENT  saying his decision to stay on is 
appropriate. The Aso cabinet's support rate was 25 PERCENT , up 10 
points from the last survey taken in February. It rebounded to top 
20 PERCENT  for the first time since December last year. The 
nonsupport rate decreased 13 points to 67 PERCENT . 
 
In the breakdown of public support for political parties, the ruling 
Liberal Democratic Party dropped 1 point to 33 PERCENT , with the 
DPJ likewise falling 5 points to 30 PERCENT . The LDP outstripped 
the DPJ for the first time since December last year. This seems to 
reflect the indictment of Ozawa's secretary. In the public's 
preference of political parties for proportional representation in 
the next election for the House of Representatives, the DPJ was 
above the LDP, with the DPJ tallying 31 PERCENT  and the LDP at 28 
PERCENT . However, the gap has shrunken 13 points. 
 
The survey was taken by Nikkei Research Inc. by telephone on a 
random digit dialing (RDD) basis. For the survey, samples were 
 
TOKYO 00000703  003 OF 008 
 
 
chosen from among men and women aged 20 and over across the nation. 
A total of 1,557 households with one or more eligible voters were 
sampled, and answers were obtained from 922 persons (59.2 PERCENT 
). 
 
3) Morita newly elected as Chiba governor, defeating DPJ's candidate 
and others 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
March 30, 2009 
 
Independent Kensaku Morita, 59, was elected governor of Chiba 
Prefecture in Sunday's election, defeating four other candidates 
including Taira Yoshida, 49, former railroad company president, 
supported by the main opposition Democratic Party of Japan (DPJ). 
Morita ran in the gubernatorial race as an independent, but he was 
backed by about half of the Liberal Democratic Party (LDP) members 
in the Chiba Prefectural Assembly. He succeeded in winning support 
from unaffiliated voters because his name is well known. 
 
The large-scale election was the first one to be held since DPJ 
President Ichiro Ozawa's first state-paid secretary was indicted for 
receiving huge amounts of illegal donations from Nishimatsu 
Construction Co. In the wake of Yoshida's defeat, calls for Ozawa to 
resign as party leader are bound to rekindle in the DPJ, although 
Ozawa has expressed his intention to remain in his post. The largest 
opposition party fielded Yoshida as candidate, after giving up on 
its decision to recommend Kansai University Prof. Masumi Shiraishi. 
Ozawa on the 28th called on Yoshida's election office in Chiba City 
to give him words of encouragement. However, Yoshida appears to have 
failed to gain votes due to the indictment of Ozawa's secretary. 
 
Commentary 
 
Kensaku Morita has wiped away the stain of defeat in the election of 
four years ago. He won by gaining support of the unaffiliated 
voters, advocating a policy of giving priority to prefectural 
residents rather than party affiliation. Carrying out a high profile 
campaign, he grabbed the lead early on in the campaign. Voters 
apparently expect him to publicize the image of Chiba across the 
nation, as being done now by Miyazaki Gov. Hideo Higashikokubaru and 
Osaka Gov. Toru Hashimoto. 
 
During the election campaign, no Chiba Prefectural Assembly members 
belonging to the LDP delivered speeches to support Morita, content 
to back him from behind the scenes. Morita did not ask any 
influential Diet members and celebrities to support his campaign. He 
was able to project a bright image of himself during his campaign, 
although there is the growing sense of impasse among the public due 
to the economic recession. He appealed to voters with such short 
phrases as "Let's take advantage of Chiba's potential," rather than 
playing up specific policies. 
 
Meanwhile, Yoshida, who was named by incumbent Gov. Akiko Domoto as 
her successor, was defeated. He was unable to clarify his 
differences with Morita, although he ran openly as being recommended 
by the DPJ. Due to his low profile, he could not gain the attention 
of floating votes. The donation scandal involving Nishimatsu appears 
to have spoiled Yoshida's chances. 
 
Morita avoided specific policies, except for promising to 
drastically cut the toll on the Tokyo Bay Aqua-Line bridge-tunnel to 
 
TOKYO 00000703  004 OF 008 
 
 
800 yen, as well as the introduction of a linear-car high-speed 
transport system between Narita and Haneda airports. His election 
strategy was effective. For the new Chiba governor, however, there 
are many issues to address, including the reconstruction of Chiba's 
financial condition, the creation of a new medical service system, 
and measures to boost jobs. Morita's administrative skills will be 
tested immediately upon assuming office. 
 
4) Drive to unseat Ozawa from DPJ president's post likely to 
rekindle 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
March 30, 2009 
 
With the defeat in Sunday's Chiba prefectural gubernatorial election 
of the candidate recommended by the Democratic Party of Japan (DPJ), 
calls for DPJ President Ichiro Ozawa's resignation from his post are 
certain to flare up again. Since it is unavoidable that concern over 
the next House of Representatives election will gradually spread in 
the main opposition party, the headwind again building up against 
Ozawa will not likely weaken. 
 
DPJ Secretary General Yukio Hatoyama released a comment on the 
result of the Chiba election that says: "The DPJ will do its best in 
order to achieve a change in government, by becoming a party that is 
trusted by the public." 
 
It had been reported that the DPJ candidate would have an uphill 
battle in the election, regardless of disarray in choosing its 
candidate. 
 
Given an additional blow by the donation scandal involving 
Nishimatsu Construction Co., Ozawa, who had refrained from going on 
a stumping, visited Chiba on March 28. The dominant view in the DPJ 
is that the defeat of its candidate resulted mainly in the 
fundraising scandal. 
 
Yesterday noon before the defeat recommended by the DPJ was 
reported, asked by reporters whether the result of the gubernatorial 
race would become material to judge Ozawa's fate, Hatoyama said: 
"Since this is a local election, there is no possibility to do so. 
With Lower House dissolution approaching, how each candidate is 
doing in the election is everything." He appears to have taken a 
precaution to prevent the result of the Chiba gubernatorial race and 
calls for Ozawa's resignation as party leader from being linked. 
 
However, important local elections -- the Akita gubernatorial 
election on April 12 and the mayoral election of Nagoya City on 
April 16 -- will be held. 
 
5) METI Minister Nikai's office to be prosecuted on charge of 
receiving political donations from Nishimatsu 
 
YOMIURI (Top Play) (Excerpts) 
March 30, 2009 
 
There have been charges emerging that Nishimatsu Construction Co., a 
second-tier general contractor, had paid in its entirety the rent of 
a condominium unit used as an office by a political organization of 
Economy, Trade and Industry Minister Toshihiro Nikai. The Tokyo 
District Public Prosecutors Office's special investigation squad has 
decided to establish a case against the organization on charges of 
 
TOKYO 00000703  005 OF 008 
 
 
violating the Political Funds Control Law. Prosecutors apparently 
suspect the company's payments for the annual rent of about 2.8 
million yen violate the said law, which prohibits politicians from 
receiving corporate donations. In a case of illegal political 
donations from Nishimatsu to an office linked to Democratic Party of 
Japan President Ichiro Ozawa, his first state-funded secretary has 
already been indicted. The investigation in this case is expected to 
spread to political organizations connected to other Liberal 
Democratic Party lawmakers. 
 
According to Nishimatsu sources, its Kansai branch office was asked 
by Nikai's younger brother around 1999 to provide an office to 
Kansai Shinpu-kai (Kansai New Wind Association), a political 
organization that is operated by the brother. In response to the 
request, Mikio Kunisawa, who was then president of Nishimatsu and 
has been prosecuted on charges of violating the said law, decided to 
provide the organization with an office free of charge and 
instructed his subordinates to have OA Engineering Co., a 
Nishimatsu-connected design company, buy a condominium. The design 
company purchased a condo unit in Osaka for approximately 40 million 
yen, but the money was paid by Nishimatsu. Nishimatsu had the unit 
refurbished for use as an office. OA Engineering and Kansai 
Shinpu-kai later concluded a lease on the condo at an annual rent of 
about 2.8 million yen. The political organization had been using the 
property until late February. 
 
To cover the rent, Nishimatsu began in 2006 to send 3 million yen 
annually to the LDP's Wakayama Constituency No. 3 chapter, 
represented by Nikai, under the names of its 60 employees and their 
families. The chapter then transferred the money to Kansai 
Shinpu-kai through a Nikai-related organization, Nikai Toshihiro 
Shinpu-kai in Wakayama Prefecture. Kansai Shinpu-kai has been paying 
about 2.8 million yen as the annual rent to OA Engineering. 
 
6) Delegates from Japan, U.S., South Korea agree to have UNSC handle 
issue if North Korea launches missile 
 
YOMIURI (Page 1) (Full) 
Evening, March 28, 2009 
 
Jun Kato, Washington 
 
The chief negotiators from Japan, the United States, and South Korea 
of the six-party talks on North Korea's nuclear programs met in 
Washington on the evening of March 27, local time. The 
representatives discussed the issue of Pyongyang preparing to launch 
what it calls a satellite but other countries believe may be a 
ballistic missile. The delegates agreed that if the North launches a 
projectile, while calling it a satellite, the launch would 
constitute a violation of a UN Security Council resolution and that 
the issue should be discussed at the UNSC. They also agreed to urge 
North Korea to refrain from launching any projectile. 
 
Participating in the meeting were Foreign Ministry's Asian and 
Oceanian Affairs Bureau Director General Akitaka Saiki, U.S. Special 
Envoy to the Six-Party Talks Sung Kim, and South Korean chief 
delegate Wi Sung Lac. They also exchanged views on the impact of the 
North Korean missile problem on the nuclear issue. 
 
After the trilateral meeting, Saiki told reporters: "A launch would 
violate a UNSC resolution, no matter how the North describes it. We 
reconfirmed that if the North fires a projectile, we will 
 
TOKYO 00000703  006 OF 008 
 
 
immediately have the matter discusses at the UNSC." Saiki then 
indicated that it would become difficult for the six-party talks to 
be resumed for the time being, remarking: "The missile issue is 
linked to the six-party talks." 
 
Prior to the meeting, Saiki also held talks with U.S. Special 
Representative for North Korea Policy Bosworth and others. 
 
Pyongyang has claimed that if the UNSC discusses any document or 
resolution criticizing North Korea, the six-party talks would come 
to an end. 
 
7) Japanese, British leaders define North Korea's expected missile 
launch as violation of UN resolutions 
 
SANKEI (Page 5) (Full) 
March 30, 2009 
 
Prime Minister Taro Aso held a telephone conversation with British 
Prime Minister Gordon Brown at his official residence last night, in 
which the two leaders shared the view that North Korea's expected 
launch of a long-range ballistic missile would violate a United 
Nations Security Council's (UNSC) resolutions. 
 
Aso and Brown agreed that North Korea should refrain from any 
conduct that would "impair the peace and security of the region." 
The leaders then confirmed that if the North launches a missile, the 
matter should be taken to the UNSC. 
 
8) Defense Ministry, Kantei at odds over security policy 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 29, 2009 
 
There are inconsistencies within the government over its security 
policy measures, such as how to deal with the long-range ballistic 
missile North Korea is about to launch, calling it an "artificial 
satellite." 
 
The defense minister issued a destruct order to the Self-Defense 
Forces on March 27 allowing them to use the missile defense (MD) 
system. The policy process found the Defense Ministry and the prime 
minister's office or Kantei at odds with each other. A senior 
official of the Defense Ministry admitted that there was a "gap" 
with the Kantei. 
 
The Defense Ministry wanted to have the destruct order adopted in a 
cabinet meeting since it did not want to be blamed should the SDF 
fail to intercept the missile. Meanwhile, the Kantei was concerned 
it might irritate North Korea by having the cabinet adopt the 
destruct order. In addition, the Kantei was cautious because the 
making of a cabinet decision could conclude that the projectile 
would be headed for Japan. 
 
In the end, the government called a meeting of the Security Council 
of Japan to go through the process of making a decision with the 
participation of cabinet ministers, including the foreign, defense, 
and finance ministers. This was done out of consideration to the 
Defense Ministry's standpoint of seeking to share responsibility. 
 
A government source recently said it would be impossible for the MD 
system to intercept a ballistic missile. Chief Cabinet Secretary 
 
TOKYO 00000703  007 OF 008 
 
 
Takeo Kawamura and Defense Minister Yasukazu Hamada totally denied 
that remark. However, there is still a perception gap within the 
government. Foreign Minister Hirofumi Nakasone said, "It's probably 
true that it would difficult (to intercept one)." A Foreign Ministry 
official said, "It would be better for the Defense Ministry to say 
little about intercepting." 
 
9) Japan, U.S. to carry out joint research in eight state-of-the-art 
areas, including environment and energy fields 
 
YOMIURI (Top Play) (Excerpts) 
March 29, 2009 
 
The Yomiuri Shimbun has learned that the governments of Japan and 
the U.S. will form a comprehensive tie-up to promote joint research 
in eight cutting-edge areas, including solar-energy generation and 
biofuels. Responsible organizations of the two countries will sign a 
memorandum to that effect possibly in April. The two governments are 
also looking into setting up a government-private sector joint 
taskforce. The aim of the initiative is to take the global lead in 
such high-growth potential areas as the environment and energy by 
strengthening cooperative ties. 
 
Prime Minister Aso and President Obama, during their summit meeting 
in February,  agreed to bilateral technical cooperation to promote 
new energies and expand use of next-generation automobiles. The 
envisaged tie-up is the first tangible step in that effort. 
 
Five national research centers, such as Japan's National Institute 
of Advanced Industrial Science and Technology (AIST) located in 
Tsukuba City, Ibaraki Prefecture, and the Los Alamos National 
Laboratory of the U.S. Energy Department, will take part in the 
joint research. 
 
The following eight areas will be covered by the project: solar 
energy generation; the manufacturing of biofuels using vegetable 
cellulose; and the carbon dioxide capture and storage (CCS) 
technology to contain carbon dioxide emitted at thermal power 
plants. 
 
10) Net ODA outlays last year rise for first time in three years, 
but Japan's performance remained in fifth place among major donors 
 
NIKKEI (Page 2) (Full) 
March 28, 2009 
 
The Organization for Economic Cooperation and Development (OECD) 
revealed on March 27 its provisional calculations of official 
development assistance (ODA) performances in 2008. Japan's net 
outlays determined by deducting repaid loans from actual 
disbursements stood at $9.36 billion or 969 billion yen, up 21.9 
PERCENT  over the preceding year, and the first rise in three years. 
However, Japan's ranking among major donors remained in the fifth 
spot, as it was last year. 
 
The OECD's Development and Assistance Committee (DAC) will release 
the figures on the 30th. The amounts of ODA extended by the 12 DAC 
member nations reached $119.6 billion, up 15.6 PERCENT , resetting a 
record high reached in 2005. Japan was the top ODA donor during the 
1990s until 2000. 
 
11) Prime minister to announce pledge of ODA worth 2 trillion yen to 
 
TOKYO 00000703  008 OF 008 
 
 
Asia at financial summit 
 
NIKKEI (Page 1) (Full) 
March 28, 2009 
 
Prime Minister Taro Aso on March 27 decided to announce at the Group 
of 20 financial summit in London on April 2 a plan to extend 2 
trillion yen or roughly 20 billion dollars in official development 
assistance (ODA) to Asia. The aim is to assist with ODA funds those 
Asian countries whose economies have been affected by the 
international financial crisis by a shortage of capital. The ODA 
will be used for farm-village development and for infrastructure 
that would lead to expanded domestic demand and strengthening growth 
potential. 
 
The prime minister in a speech at the World Economic Forum Annual 
Meeting (Davos Conference) in January announced a plan to disburse 
1.5 trillion yen in ODA to Asia. However, with the global economic 
recession becoming even more serious, the government has determined 
that it has become necessary to boost that assistance. Japan will 
underscore its stance of tackling Asian assistance by adding 500 
billion yen to the original plan. 
 
The ODA will be extended in principle as yen loans. Although no 
specific timeframe will be set, assistance will probably be extended 
over a three-year period, starting this year. The government will 
speed up a process of determining recipient countries with a focus 
on India, Indonesia and other Asian countries. It will also look 
into expanding program loans aimed at having the recipients improve 
their policies. The aid will have a strong aspect of being fiscal 
assistance. 
 
POST