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UNCLAS SECTION 01 OF 13 TOKYO 000722 
 
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 03/31/09 
 
INDEX: 
 
(1) Poll on Aso cabinet, political parties (Tokyo Shimbun) 
 
(2) Poll on Aso cabinet, political parties (Nikkei) 
 
(3) DPJ in turmoil (Part 1): Ozawa takes humble posture in bid to 
prolong his political life; Suggests resignation to contain 
criticism; Leadership not monolithic (Nikkei) 
 
(4) Long-term strategy to maintain growth: LDP stimulus measures 
attach importance to environment conservation, welfare (Yomiuri) 
 
(5) Japan's bid for permanent UNSC seat; Japan money and personnel 
contributions are less than meets the eye (Asahi) 
 
(6) Both houses removes wording "violation of UN resolutions" from 
draft resolution calling for North Korea's self-restraint over 
missile launch (Sankei) 
 
(7) Financial summit to start on April 2: To what degree can Japan, 
U.S., Europe and China cooperate? (Nikkei) 
 
(8)TOP HEADLINES 
 
(9)EDITORIALS 
 
(10) Prime Minister's schedule, March 30 (Nikkei) 
 
ARTICLES: 
 
(1) Poll on Aso cabinet, political parties 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 27, 2009 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote the results of the 
last survey conducted March 7-8.) 
 
Q: Do you support the Aso cabinet? 
 
Yes 23.7 (16.0) 
No 63.5 (70.8) 
Don't know (D/K) + no answer (N/A) 12.8 (13.2) 
 
Q: (Only for those who answered "yes" to the previous question) 
What's the primary reason for your approval of the Aso cabinet? Pick 
only one from among those listed below. 
 
The prime minister is trustworthy 9.1 (17.0) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 11.4 (11.1) 
The prime minister has leadership ability 0.6 (4.4) 
Something can be expected of its economic policies 6.6 (10.6) 
Something can be expected of its foreign policies 7.2 (8.7) 
Something can be expected of its political reforms 2.6 (0.3) 
Something can be expected of its tax reforms 2.1 (1.1) 
Something can be expected of its administrative reforms 2.6 (0.6) 
There's no other appropriate person (for prime minister) 55.9 
(42.3) 
Other answers (O/A) --- (2.1) 
 
TOKYO 00000722  002 OF 013 
 
 
D/K+N/A 1.9 (1.8) 
 
 
Q: (Only for those who answered "no" to the first question) What's 
the primary reason for your disapproval of the Aso cabinet? Pick 
only one from among those listed below. 
 
The prime minister is untrustworthy 17.0 (25.8) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 4.9 (5.6) 
The prime minister lacks leadership ability 19.2 (22.3) 
Nothing can be expected of its economic policies 29.5 (23.3) 
Nothing can be expected of its foreign policies 0.6 (1.1) 
Nothing can be expected of its political reforms 8.2 (6.8) 
Nothing can be expected of its tax reforms 2.8 (1.3) 
Nothing can be expected of its administrative reforms 7.2 (6.3) 
Don't like the prime minister's personal character 8.9 (6.4) 
O/A 0.9 (0.3) 
D/K+N/A 0.8 (0.8) 
 
Q: Democratic Party of Japan President Ozawa's state-funded 
secretary has been indicted to the Tokyo District Court on the 
charge of violating the Political Funds Control Law. In this regard, 
DPJ President Ozawa clarified his intention to stay on as his 
party's head, explaining that taking office is his last job. What do 
you think about this account? 
 
He can stay on 28.9 
He should resign 66.6 
D/K+N/A 4.5 
 
Q: DPJ President Ozawa criticized the prosecutors, saying the 
indictment of his secretary is a pro forma charge and is 
unconvincing. Is this account from DPJ President Ozawa convincing? 
 
Yes 12.0 
No 79.7 
D/K+N/A 8.3 
 
Q: How long would you like Prime Minister Taro Aso to run the 
government? 
 
He should resign as soon as the FY2009 budget clears the Diet 34.6 
Until around May or June after the FY2009 extra budget clears the 
Diet 41.1 
He should stay on as long as possible 16.4 
D/K+N/A 7.9 
 
Q: The House of Representatives' current term is up until September 
this year. When would you like the House of Representatives to be 
dissolved for a general election? 
 
As soon as the FY2009 budget clears the Diet 28.2 
Around May or June after the FY2009 extra budget clears the Diet 
39.4 
Wait until the current term expires in September without dissolving 
the Diet 26.0 
D/K+N/A 6.4 
 
Q: Would you like the present LDP-led coalition government to 
continue, or would you otherwise like it to be replaced with a 
DPJ-led coalition government? 
 
TOKYO 00000722  003 OF 013 
 
 
 
LDP-led coalition government 36.6 (31.6) 
DPJ-led coalition government 44.2 (43.5) 
D/K+N/A 19.2 (24.9) 
 
 
Q: Which political party are you going to vote for in the next House 
of Representatives election in your proportional representation 
bloc? 
 
Liberal Democratic Party (LDP) 30.5 (26.7) 
Democratic Party of Japan (DPJ or Minshuto) 34.1 (33.9) 
New Komeito (NK) 3.1 (3.7) 
Japanese Communist Party (JCP) 1.9 (3.9) 
Social Democratic Party (SDP or Shaminto) 1.8 (2.0) 
People's New Party (PNP or Kokumin Shinto) 0.6 (1.0) 
Reform Club (RC or Kaikaku Kurabu) --- (---) 
New Party Nippon (NPN or Shinto Nippon) --- (---) 
Other political parties, groups --- (---) 
D/K+N/A 28.0 (28.8) 
 
Q: When comparing Prime Minister Taro Aso and DPJ President Ichiro 
Ozawa, which one do you think is more appropriate for prime 
minister? 
 
Taro Aso 33.1 (25.6) 
Ichiro Ozawa 31.2 (33.6) 
D/K+N/A 35.7 (40.8) 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 29.7 (28.6) 
Democratic Party of Japan (DPJ or Minshuto) 28.4 (27.4) 
New Komeito (NK) 2.7 (4.0) 
Japanese Communist Party (JCP) 1.5 (3.3) 
Social Democratic Party (SDP or Shaminto) 2.2 (1.2) 
People's New Party (PNP or Kokumin Shinto) 0.9 (0.6) 
Reform Club (RC or Kaikaku Kurabu) 0.2 (---) 
New Party Nippon (NPN or Shinto Nippon) 0.1 (0.1) 
Other political parties, groups --- (---) 
None 32.1 (32.6) 
D/K+N/A 2.2 (2.2) 
 
Polling methodology: The survey was conducted across the nation on 
March 25-26 by Kyodo News Service on a computer-aided random digit 
dialing (RDD) basis. Among randomly generated telephone numbers, 
those actually for household use with one or more eligible voters 
totaled 1,460. Answers were obtained from 1,019 persons. 
 
(2) Poll on Aso cabinet, political parties 
 
NIKKEI (Page 2) (Full) 
March 30, 2009 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote findings from the 
last survey conducted in February.) 
 
Q: Do you support the Aso cabinet? 
 
Yes 25 (15) 
No 67 (80) 
 
TOKYO 00000722  004 OF 013 
 
 
Can't say (C/S) + don't know (D/K) 8 (5) 
 
Q: Which political party do you support or like? 
 
Liberal Democratic Party (LDP) 33 (34) 
Democratic Party of Japan (DPJ or Minshuto) 30 (35) 
New Komeito (NK) 4 (3) 
Japanese Communist Party (JCP) 5 (4) 
Social Democratic Party (SDP or Shaminto) 1 (1) 
People's New Party (PNP or Kokumin Shinto) 0 (0) 
Reform Club (RC or Kaikaku Kurabu) 0 (0) 
New Party Nippon (NPN or Shinto Nippon) 0 (0) 
Other political parties 1 (0) 
None 18 (17) 
C/S+D/K 8 (5) 
 
(Note) The total percentage does not become 100 PERCENT  in some 
cases due to rounding. 
 
Polling methodology: The survey was taken by Nikkei Research Inc. by 
telephone on a random digit dialing (RDD) basis. For the survey, 
samples were 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) DPJ in turmoil (Part 1): Ozawa takes humble posture in bid to 
prolong his political life; Suggests resignation to contain 
criticism; Leadership not monolithic 
 
NIKKEI (Page 2) (Abridged slightly) 
March 31, 2009 
 
The Democratic Party of Japan (DPJ) was wrapped in strange silence 
on March 30, the day after the defeat of the DPJ-backed candidate in 
the Chiba gubernatorial election and the revelation of the severe 
results of opinion polls, including one by the Nikkei. President 
Ichiro Ozawa announced his intent to stay on despite the indictment 
of his state-paid secretary over a fundraising scandal involving 
Nishimatsu Construction Co. At the same time, Ozawa hinted that he 
might step down. The DPJ president has apparently decided to take a 
humble posture in a bid to prolong his political life. Open 
criticism of Ozawa's decision to stay on in office has died down, at 
least for now. Having lost his momentum, Ozawa could still be forced 
to walk a tightrope in running the party. 
 
Yoshito Sengoku and Yukio Edano, who have been keeping their 
distance from Ozawa, were asked yesterday by reporters for their 
comments on the outcome of the Chiba gubernatorial election, but 
they remained mum. Yoko Komiyama, who had openly called for Ozawa's 
resignation as party head, also ignored the question. 
 
The Chiba gubernatorial race provided the first occasion to witness 
how the general public might react to the indictment of the Ozawa 
aide and his decision to stay on. Some observers had anticipated 
that the DPJ-backed candidate's defeat would result in a storm of 
criticism of the Ozawa-led party leadership, with some saying, "We 
won't be able to put up a good fight in the next House of 
Representatives election under Mr. Ozawa." But such did not happen 
thanks to Secretary General Yukio Hatoyama's preemptive step in view 
of the DPJ candidate's likelihood to lose. At party headquarters on 
March 26, Hatoyama and Ozawa confirmed that they would not use any 
 
TOKYO 00000722  005 OF 013 
 
 
opinion polls and local elections as criteria for a decision. They 
also agreed that both of them would step down when a decision was 
reached that the DPJ would not able to take power through the next 
election. 
 
Hatoyama made public such communications with Ozawa ahead of the 
March 29 Chiba election in a bid to instill in mid-level and junior 
lawmakers the view that Ozawa would resign before the next Lower 
House election. There is speculation through that if Ozawa is openly 
pressed for his resignation, the DPJ head would cling to his post 
for pride's sake. 
 
Some in the party leadership have begun looking for the right timing 
for Ozawa's decision to step down while closely monitoring the 
Nishimatsu scandal's spillover into the LDP, including Economy, 
Trade and Industry Minister Toshiaki Nikai's side. 
 
Ozawa, Hatoyama, Deputy President Naoto Kan, and House of 
Councillors Caucus Chair Azuma Koshiishi assembled at a Tokyo sushi 
restaurant last night. There, Ozawa said: "Let us prepare 
tenaciously for the next Lower House election that could occur after 
the current term of office expires in September this year. An 
election in May would be fine, as well." Ozawa seemed eager to 
spearhead the next election campaign, according to an attendant. 
 
Anxieties remain under the Ozawa leadership. At a Tokyo Japanese 
restaurant on the night of March 20, Kan advised Ozawa not to make a 
decision on whether he should resign or stay immediately after the 
indictment of his secretary, citing the need to monitor public 
trends. This elicited an objection from Hatoyama who had determined 
in his mind that Ozawa would stay on. Ozawa did not offer an 
answer. 
 
A person close to Kan explained: "Mr. Kan simply played a role in 
conveying the mood in the party. He remains committed to supporting 
Mr. Ozawa." Possible discord in the so-called Ozawa-Kan-Hatoyama 
troika leadership might result in the collapse of the DPJ. 
 
(4) Long-term strategy to maintain growth: LDP stimulus measures 
attach importance to environment conservation, welfare 
 
YOMIURI (Page 9) (Full) 
March 31, 2009 
 
The Liberal Democratic Party's (LDP) Strategic Council for 
Revitalization of the Japanese Economy on March 30 drafted a 
strategic program for the revitalization of the Japanese economy. 
The draft proposals, which focus on creation of jobs in such areas 
as environment conservation, social security and market expansion, 
is characterized by a growth strategy to be implemented over the 
next three years. It will form a framework for additional economic 
stimulus measures, which the government and the ruling camp will map 
out possibly before the end of April. However, the draft 
incorporates public works as usual, already drawing criticism that 
the program is designed for the upcoming election. 
 
Three pillars 
 
The program lays down a policy of creating 2 million jobs over three 
years, based on three policy themes -- low carbon society, promotion 
of growth, and health and longevity. 
 
 
TOKYO 00000722  006 OF 013 
 
 
To be precise, a proposal for subsidizing the cost of replacing 
vehicles and home electronic appliances with environment-friendly 
types and energy-saving types and nurturing human resources in the 
medical services and nursing-care area. The program also proposes a 
revision to tax imposition on entertainment and social expenses as a 
measure to assist small- and medium-sized businesses and a gift-tax 
cut aimed at promoting housing acquisition. 
 
The program aims at restoring economic growth with intensive 
investments in such growth potential areas as environment 
conservation and social security, as well as to prevent the domestic 
economy from further worsening, by stimulating consumption and 
generating demand. 
 
Some gave a high score to the program noting that the program 
indicates efforts and intentions to promote investment in a manner 
that is different from conventional policies, as Yasuo Goto of the 
Mitsubishi Research Institute said. 
 
Expansion of domestic demand 
 
Others, however, pointed out that pork-barrel policies as usual are 
found here and there, according to a senior finance ministry 
official. A number of lawmakers of the ruling parties, for instance, 
have made requests for projects apparently with an eye on their home 
constituencies. 
 
According to estimates by the Cabinet Office, the supply-demand gap, 
a gap between demand and supply capacity of the Japanese economy as 
a whole, reached minus 20 trillion yen in the October-December 
quarter in 2008. The shortfall in demand has to be covered by 
large-scale public spending. For this reason, the meeting was 
enveloped from the beginning by an atmosphere that it is only 
natural that the package should be largest-ever. As a result, 
lawmakers escalated requests, a senior official said. 
 
As a matter of fact, the program includes public works, such as the 
consolidation of a network of fast-speed railways, like new 
bullet-train lines, airports, ports and harbors. An idea of 
establishing a new subsidy system intended to assist cash-strapped 
local governments has also been incorporated. 
 
The Ministry of Economy, Trade and Industry (METI) mapped out the 
government's growth strategy. It also took the initiative in the 
compilation of the LDP's program. As a result, some proposals in the 
two packages duplicate. 
 
The government will press ahead with efforts to unify a final report 
on the program, which the party will map out possibly in early 
April, and the government's growth strategy into an additional 
stimulus package. It will have to tackle a difficult work of 
selecting out policy proposals that are effective in buoying up the 
economy and restoring economic growth. 
 
(5) Japan's bid for permanent UNSC seat; Japan money and personnel 
contributions are less than meets the eye 
 
ASAHI (Page 3) (Full) 
March 30, 2009 
 
Japan has become a non-permanent member of the United Nations 
Security Council (UNSC) this year after a three-year hiatus. With 
 
TOKYO 00000722  007 OF 013 
 
 
the start in February of government-to-government talks on UNSC 
reform, the Japanese government is enthusiastic about serving in 
this capacity, thinking that it is a good opportunity to demonstrate 
its capabilities. But if one looks at the present state of Japan's 
international contributions through the UN, Japan has many 
challenges to address. 
 
Japan has served on the UNSC ten times, the most among UN member 
countries, excluding permanent UNSC members. Japan was highly 
evaluated by a number of countries for skillfully chairing the UNSC 
in February, handling smoothly the consultations on the Georgian 
situation and the Burma (Myanmar) issue, over which the permanent 
members were seriously at odds. 
 
In contrast to its active work in the UN's front stage, Japan 'money 
and personnel' contributions to the UN are seen as insufficient. It 
is hard to argue that Japan has played an appropriate role as the 
"army in reserve" of the permanent UNSC. Japan spent approximately 
7.679 billion dollars (approximately 750 billion yen) in its 
official development assistance (ODA) for fiscal 2007, a 31 percent 
drop from the previous year's. Its ratio of ODA to per capita gross 
national income (GNI) in 2007 was 0.17 percent, falling far short of 
the UN target of 0.7 PERCENT . 
 
Japan's personnel contribution has leveled off. Japanese working at 
the United Nations Secretariat numbered only 113 or about 4 PERCENT 
of all the UN Secretariat staff as of the end of August 2008. The 
number of Japanese staff has been flat for a decade or so. The 
figure is less than a half the desirable number of Japanese staff 
calculated based on Japan's share of contribution. 
 
The number of Japanese dispatched to peacekeeping operations (PKO) 
is limited. Only 40 Self-Defense Forces members are now being 
deployed to the Golan Heights in the Middle East. As of the end of 
February, Japan ranked seventy-ninth among UN member countries or 
last in the Group of Eight (G-8) nations. When civilians are added 
to the 40 self-defense officials, about 60 Japanese are 
participating in PKO. Japan's participation in the 
ceasefire-monitoring type PKO has dropped, while such risky missions 
as protection of citizens in unstable situations have increased. 
Since Article 9 of Japan's Constitution prohibits the use of armed 
force, it is difficult for Japan to increase the number of 
Self-Defense Forces (SDF) personnel to take part in PKO. Due to an 
increase in large-scale PKO involving several tens of thousands 
personnel, the shortage of PKO personnel has become serious. 
 
Izumi Nakamitsu, director of the Policy, Evaluation, and Training 
Division of the United Nations Department of Peacekeeping 
Operations, a former visiting professor of Hitotsubashi University, 
urged: "Japan could boost the dispatch of such civilians as police 
officers and judges, which is not barred by the Constitution." She 
wants Japan to play the role of a "responsible major power" by 
taking part in PKO as much as it can. 
 
Some countries are calling for Japan's initiative to reform PKO, 
which has reached its limits. 
 
UN-related PKO personnel, now being deployed in 16 places, have 
reached about 110,000, or five-times the number deployed in 2000. 
The PKO budget has been boosted by a little over 300 PERCENT  to 
approximately 7.1 billion dollars (about 700 billion yen). Although 
the UNSC has approved a diverse number of PKO missions, there is a 
 
TOKYO 00000722  008 OF 013 
 
 
lack of trained military personnel and police officers and such 
equipment as helicopters. A sense of alarm has risen, with Nakamitsu 
saying: "If nothing is done, PKO will break up in several years" 
 
Japan this year became chair of a working group to discuss the 
securing of PKO personnel and the appropriateness of the missions. 
Former U.S. Ambassador to the United Nations John Bolton said: "If 
Japan actively engages in PKO reform, such would become a good 
material for Japan's bid for a permanent UNSC seat." 
 
(6) Both houses removes wording "violation of UN resolutions" from 
draft resolution calling for North Korea's self-restraint over 
missile launch 
 
SANKEI (Page 5) (Full) 
March 31, 2009 
 
The ruling and opposition camps deleted the wording "an apparent 
violation of UN Security Council resolution" from a draft resolution 
that calls on North Korea to refrain from launching a ballistic 
missile, according to informed sources yesterday. The phrase was 
removed in response to a request by the Japanese Communist Party 
(JCP), the Social Democratic Party (SDP) and the People's New Party 
(PNP). The ruling coalition - Liberal Democratic Party (LDP) and the 
New Komeito - accepted the request, but some LDP members have voiced 
dissatisfaction at the removal. Both camps titled it "a resolution 
calling for North Korea's self-restraint over a launch of a 
projectile," using the word "projectile" instead of "ballistic 
missile." Both houses will unanimously adopt it in their respective 
plenary sessions today. 
 
The Diet Affairs Committee chairmen of the Democratic Party of Japan 
(DPJ), the JCP, the SDP, and the PNP met in the Diet Building 
yesterday afternoon. The JCP and the SDP raised questions about the 
propriety of using the expression "an apparent violation of UNSC 
resolution," one lawmaker claiming: "North Korea has called it a 
satellite, so I wonder if it is proper to define the possible launch 
as a violation of UN resolutions." The PNP demanded that the wording 
in question be erased, on the ground that when China and Russia 
remain cautious about adopting a new UNSC resolution, Japan should 
give consideration to such responses by other countries. 
 
The main opposition party DPJ also agreed to urge the ruling camp to 
delete the wording. In response to the opposition camp's demand, 
senior LDP and New Komeito 
Diet Affairs Committee members conferred on what to do about the 
opposition side's request and then decided to accept it. 
 
In the House of Councillors, the LDP, the New Komeito, the DPJ, and 
the PNP had approved of the resolution that included the expression 
"a violation of resolutions" and had jointly submitted it yesterday 
afternoon. But House of Representatives Diet Affairs Committee 
members of the ruling and opposition camps later agreed to remove 
the phrase in question, so the Upper House will rewrite the draft 
resolution and resubmit it. 
 
A senior member of the LDP Diet Affairs Committee explained last 
night: "Even if the expression 'an apparent violation' is deleted, 
it will be possible to define the launch as violating UN 
resolutions. It is imperative for a resolution to be quickly adopted 
unanimously as the North's possible rocket launch is imminent." The 
LDP official also cited this as the main reason for removing the 
 
TOKYO 00000722  009 OF 013 
 
 
phrase: UNSC Resolution 1695 and Resolution 1718 stipulate that 
North Korea must halt all activities related to its ballistic 
missile plans. 
 
However, if the expression "an apparent violation" is erased, the 
resolution might become less influential as Japan might give a 
signal of playing up to the North. An LDP lawmaker who once served 
as Defense Agency director general grumbled: "The resolution is 
indeed a half-hearted call. Even if Japan calls for a new UNSC 
resolution after Pyongyang fires a ballistic missile, China and 
Russia, which have taken a cautious stance in dealing North Korea 
and adopting a UN resolution, could stand in the way of Japan's 
efforts." 
 
? Part removed from the draft resolution calling on North Korea to 
refrain from launching a projectile 
 
(Lower House's draft resolution) 
 
UNSC Resolution 1695 and Resolution 1718 stipulate that North Korea 
should halt all activities related to its ballistic missile plans. 
North Korea's conduct this time apparently constitutes a violation 
of the UNSC resolutions. 
 
(Upper House's draft resolution) 
 
UNSC Resolution 1695 and Resolution 1718 stipulate that North Korea 
should halt all activities related to its ballistic missile plans. 
The expected launch of a projectile by North Korea, even if 
Pyongyang calls it a rocket designed to carry a satellite, 
apparently constitutes a violation of the UNSC resolutions. 
 
The parts in bold letters are removed 
 
(7) Financial summit to start on April 2: To what degree can Japan, 
U.S., Europe and China cooperate? 
 
NIKKEI (Page 3) (Abridged) 
March 30, 2009 
 
The Group of 20 financial summit (G-20) joined by Japan, the U.S., 
European countries and emerging economies will start in London on 
the evening of April 1, early hours of the 2nd, Japan time. 
Participants will confer on measures to deal with the global 
recession, which has become more serious since the previous 
financial summit in November last year, in a bid to come up with 
policy cooperation aimed at overcoming the financial crisis. Views 
of participating countries differ over specific measures, such as 
public spending and financial regulations. As such, focus will be on 
to what extent Japan, the U.S., Europe and China can a compromise 
for a concerted action. 
 
Additional public spending: Japan, U.S., China, which are positive 
toward fiscal action, will likely seek concessions from Europe 
 
U.S. President Obama intends to seek fiscal-policy cooperation from 
the assembled countries in the hope of their agreeing to increase 
public spending to 2 PERCENT  of GDP. As he noted, he hoped that 
(G-20) nations would vigorously and continuously pursue public 
spending until demand recovers. At a press conference immediately 
before he leaves for Britain on the 30th, Prime Minister Taro Aso 
will refer to Japan's plan for an additional economic stimulus 
 
TOKYO 00000722  010 OF 013 
 
 
package. Japan and the U.S. are in agreement on the need for 
proactive public spending. Chinese Premier Wen Jiabao said, "China 
is equipped with sufficient 'bullets.' We are ready to come up with 
new stimulus measures at any time." 
 
European countries are cautious about additional fiscal 
disbursements with European Commission Chairman Barrozo saying, "We 
should first implement the stimulus measures that have already been 
decided on." Some, including Luxemburg Finance Minister Juncker, who 
heads the euro-zone finance ministers' group, are taking the view 
based on concern about a possible decline in confidence in the euro 
that it is not necessary to opt for increased economic stimulus 
measures at the request of the U.S. 
 
The joint statement issued by the G-20 finance ministers and central 
bank governors meeting (held on March 14) did not mention a 
numerical target for fiscal spending. It simply called on the 
International Monetary Fund (IMF) to regularly evaluate member 
nations' polices. The U.S. will likely seek concessions from Europe, 
including disclosure of measures to accelerate the write-offs of bad 
loans requested by Europe. However, the prevalent view is that the 
meeting will go no further than confirming the agreement reached at 
the G-20, according to an international relations source. 
 
Financial surveillance and regulations: General opinion is for 
strengthening such, but there is a gap in views on specific 
measures 
 
Participating countries are generally in agreement with a stand that 
new rules are needed to prevent a recurrence of the crisis, instead 
of revising regulations to some degree, as U.S. Treasury Secretary 
Geithner put it. However, when it comes to specifics, a gap between 
the U.S. and Britain on the one side and European countries, such as 
Germany and France, on the other, have yet to be narrowed. 
 
The U.S. and Britain want to maintain the international 
competitiveness of their financial industry, which hold a commanding 
edge, while strengthening regulations. On the other hand, Germany 
and France are calling for tougher surveillance and regulations, 
including a regulation on hedge funds. The U.S. has indicated a 
stance of compromising on such issues as the introduction of hedge 
funds. However, the process of laying down a specific system, such 
as the scope of funds subject to surveillance, is bound to face 
complications. Determining that ineffective financial surveillance 
in Europe and the U.S. caused the financial crisis, China, too, is 
ready to call for strengthening surveillance at the upcoming 
financial summit. 
 
Reform of international agencies: Emerging countries aiming at 
increasing their influence 
 
A senior official of the Japanese Finance Ministry said, "A major 
agenda item at the financial summit will be reinforcing the capital 
basis of the International Monetary Fund (IMF)." A number of 
emerging countries, such as Middle Eastern and East European 
countries, that have been hit by the financial crisis, have asked 
for assistance from the IMF. As a result, the IMF found it necessary 
to boost its capital base. In response, Japan has announced a 
financial assistance on the scale of 100 billion dollars. European 
countries has followed suit. The U.S. has also proposed expanding 
funds to be used for multilateral assistance. 
 
 
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The People's Bank of China Governor Zhou has come up with an 
initiative to nurture the IMF's Special Drawing Rights (SDF) into a 
key currency to replace the U.S. dollar, noting, "It is an ideal 
reform of the international currency system to establish a currency 
that is not connected with a sovereign state." Japan supported the 
U.S. rebuttal to this proposal. However, Russia and Brazil are 
reportedly in favor of China's proposal. As such, there is a 
possibility of strains unexpectedly occurring regarding a 
cooperative action at the financial summit. 
 
(8)TOP HEADLINES 
 
Asahi: 
Price war accelerating: Concern about adverse effect on economy 
 
Mainichi: 
U.S. offers short-term assistance to GM, Chrysler 
 
Yomiuri: 
Obama says Chrysler not viable without alliance partner 
 
 
Nikkei: 
IMF fund framework for assistance to emerging countries to be 
tripled: Agreement to be reached at G-20 
 
Sankei: 
LDP interim report on economic revitalization include gift tax cut 
 
Tokyo Shimbun: 
Tokyo public prosecutors to question Nikai's younger brother: 
Agreement to cover rent of Nikai's office with Nishimatsu 
Construction reached? 
 
Akahata: 
Twenty years since introduction of sales tax: 213 trillion yen from 
consumers; 182 trillion yen; Corporate tax cuts during same period 
worth 182 trillion yen 
 
(9)EDITORIALS 
 
Asahi: 
(1) Will Democratic Party of Japan allow it to lose support? 
(2) Public document legislation: Passage during current Diet session 
urged 
 
Mainichi: 
(1) Democratic Party of Japan (DPJ) defeated in Chiba gubernatorial 
election: Wipe away distrust promptly 
(2) Increase in wages of caregivers needed 
 
Yomiuri: 
(1) Road map to reform central government's local branches: Prime 
minister should fight against resisting bureaucrats 
(2) Evaluation of national universities should be led to improved 
quality of education research 
 
Nikkei: 
(1) DPJ President Ozawa should squarely face harsh public opinion 
(2) Realize proper distribution of copyrighted works 
 
Sankei: 
 
TOKYO 00000722  012 OF 013 
 
 
(1) Nonpermanent workers: Consolidate safety network that will 
encourage them to become self-reliant 
(2) Dismissal of Choshi mayor: Resourcefulness needed to continue 
medical services provided by local governments 
 
Tokyo Shimbun: 
(1) US strategy to Afghanistan: Wise diplomacy to be tested 
(2) Retrial of Yokohama case: Justice system also responsible for 
false accusation 
 
Akahata: 
(1) Education cannot be attained with order 
 
(10) Prime Minister's schedule, March 30 
 
NIKKEI (Page 2) (Full) 
March 31, 2009 
 
10:28 
Met Vice Foreign Minister Yabunaka at the Kantei. 
 
11:04 
Met Chinese Community Party's Politburo Permanent Committee member 
Li Changchun, with Chief Cabinet Secretary Kawamura and others 
present. Followed by International Court of Justice judge Owada in 
the presence of Kawamura. 
 
12:07 
Met New Komeito President Ota. 
 
14:29 
Met Parliamentary Vice Foreign Minister Minorikawa. 
 
15:00 
Met public relations officer Ogawa and Foreign Ministry spokesman 
Kodama. Later, responded to an interview with the British newspaper 
Financial Times. 
 
16:11 
Met his local support group "Sekimon-kai" Chairman Tanio and others. 
 
 
16:56 
Made an informal representation at the Imperial Palace. Attended an 
imperial attestation ceremony for Senior Vice Finance Minister 
Ishida. 
 
17:52 
Posed for photos with Ishida at the Kantei in the presence of 
Kawamura. 
 
18:39 
Dined with "Sekimon-kai" members at a Chinese restaurant in 
Akasaka. 
 
19:27 
Arrived at the Japanese restaurant "Asada" in Akasaka with Secretary 
General Hosoda, Deputy Secretary General Hayashi, and others. 
 
20:47 
Returned to his official residence. 
 
 
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