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Viewing cable 09TOKYO788, JAPANESE MORNING PRESS HIGHLIGHTS 04/07/09

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Reference ID Created Released Classification Origin
09TOKYO788 2009-04-07 07:27 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO1221
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0788/01 0970727
ZNR UUUUU ZZH
P 070727Z APR 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2095
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 5729
RUEHFK/AMCONSUL FUKUOKA 3384
RUEHOK/AMCONSUL OSAKA KOBE 7180
RUEHNAG/AMCONSUL NAGOYA 1081
RUEHKSO/AMCONSUL SAPPORO 3924
RUEHBJ/AMEMBASSY BEIJING 8656
RUEHUL/AMEMBASSY SEOUL 4684
RUCNDT/USMISSION USUN NEW YORK 4522
UNCLAS SECTION 01 OF 09 TOKYO 000788 
 
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 04/07/09 
 
Index: 
 
North Korea missile launch: 
1) Finding North Korea's provocation unacceptable, U.S. changes to 
hard-line stance after missile launch  (Yomiuri) 
2) After missile launch, Japanese government putting in every effort 
to get UN Security Council to adopt new resolution against North 
Korea with teeth  (Yomiuri) 
3) Japan trying to bring together a unified view in the UNSC toward 
North Korea's missile launch  (Asahi) 
4) Foreign Minister Nakasone asks Vietnam for cooperation on North 
Korea issue  (Nikkei) 
5) Government planning additional sanctions on North Korea that 
would cut off all remittances to that country  (Yomiuri) 
6) Defense Ministry concludes that second stage of Pyongyang's 
rocket separated and failed  (Yomiuri) 
7) Defense Ministry rescinds destroy order, withdraws deployed 
PAC-3s  (Yomiuri) 
 
Defense and security affairs: 
8) Kadena Air Base noise problem worsens, even though training being 
done elsewhere  (Asahi) 
9) MSDF destroyer on anti-piracy duty makes port call in Djibouti 
(Yomiuri) 
 
10) Senator McCain now visiting Japan will meet Democratic Party of 
Japan (DPJ) President Ozawa on the 10th  (Nikkei) 
 
Political agenda: 
11) Prime Minister Aso orders compilation of fiscal 2009 stimulus 
package worth 10 trillion yen in fiscal outlays  (Asahi) 
12) Ozawa at the helm of the DPJ three years today, but many in the 
party would like to see him resign his post  (Tokyo Shimbun) 
13) METI Minister Nikai's brother, who manages Nikai's political 
funds, being questioned by prosecutors in connection with donations 
from shady firm  (Tokyo Shimbun) 
14) Three bills to clear Lower House in April   (Sankei) 
 
Articles: 
 
1) U.S. switches to tough stance on North Korea's missile launch at 
UNSC meeting 
 
YOMIURI (Top Play) (Excerpts) 
April 7, 2009 
 
(Yoshikazu Shirakawa, New York) 
 
Regarding North Korea's launch of a ballistic missile, U.S. 
Ambassador to the United Nations Susan Rice said on April 5: "A 
strong message from the United Nations will lead to activating the 
six-party talks," according to informed sources. In an unofficial 
meeting of the United Nations Security Council, Rice clarified the 
Obama administration's stance of not flinching from any threat or 
provocation, with an eye on a resumption of the six-party talks on 
North Korea's nuclear development problem. Washington's stance 
supplied a nice tailwind for Japan's call on the UN to adopt a new 
resolution. But China and Russia remain cautious about a 
resolution. 
 
Japan's view is that since the launch has constituted a threat to 
the region and the entire world, the act is a clear violation of 
 
TOKYO 00000788  002 OF 009 
 
 
Security Council Resolution 1718. Based on this view, Japan has been 
calling for the UNSC to take a new resolution that would seek 
faithfully implementing existing resolutions. In the meeting, the 
ambassadors to the UN from Britain and France also share the stance 
of Japan and the U.S. 
 
2) Government stepping up efforts to get new resolution passed, in 
reaction to North Korea's missile launch 
 
YOMIURI (Page 2) (Excerpts) 
April 7, 2009 
 
The Japanese government is determined to take every possible means 
to condemn North Korea for its recent launch of a ballistic missile, 
which that nation called a satellite launch. The government will 
make utmost efforts to have the UN Security Council adopt a new 
resolution and also plans to decide on April 10 to tighten its own 
sanctions. 
 
The government's strong reaction to Pyongyang's missile launch stems 
not only from the missile's passage over Japan. If the North, which 
carried out a nuclear test and may possess nuclear missiles in the 
future, develops technical capabilities through missile launches, 
Japan in its entirety will be exposed to a serious threat. 
 
North Korea has not responded with a sincere manner to Japan's call 
for a solution to the issue of Japanese nationals abducted by its 
agents, stalling Japan-North Korea diplomatic talks. In the wake of 
the North Korean missile launch, the government expects that 
strengthened pressure by the international community on the North 
through the UN may work for Tokyo in dealing with Pyongyang. 
 
In the UN, meetings between Japan and permanent members of the UNSC 
will be "a main theater of war for the time being," as said by a 
senior Foreign Ministry official. Japan will step up efforts to have 
the UN pass a resolution calling for Security Council Resolution 
1718, which was adopted after North Korea conducted a nuclear test 
(in 2006), to be faithfully implemented. 
 
3) North Korean missile: China and Russia stand in way of adopting 
Security Council resolution 
 
ASAHI (Page 2) (Excerpts) 
April 7, 2009 
 
Junji Tatsuno, New York, and Jun Tabuse 
 
How is the international community going to respond to North Korea's 
launch of a missile? Discord in the international community has 
already become evident in the first UN Security Council meeting 
after the launch. Japan is calling for the adoption of a new 
resolution, but China and Russia are cautious about such a step. The 
UNSC is likely to be pressed for a difficult decision. 
 
Japan puts priority on unanimous vote; Political decision possible 
for compromises 
 
On the evening of April 5, after the missile launch, Prime Minister 
Taro Aso told his aides: "Japan will come down hard (on North 
Korea)." The UN Security Council meeting was at the initial stage of 
each country expressing their official views. There has been no 
change in Japan's basic policy course of seeking a fresh UN 
 
TOKYO 00000788  003 OF 009 
 
 
resolution. Chief Cabinet Secretary Takeo Kawamura in a press 
briefing yesterday said: "It is desirable for the UN Security 
Council, which is responsible for the maintenance of peace and 
security of the international community, to adopt a resolution." 
 
Even so, Prime Minister Aso expressed a view to the press corps last 
night to give top priority to the solidarity of the Security 
Council, saying: "The Security Council must swiftly send a message 
in one voice. It must avoid sending the wrong message to North 
Korea. That's the top priority." 
 
In the event China and Russia remain uncompromising, the question is 
to what extent the United States would work upon the two countries 
for the adoption of a resolution in collaboration with Japan. It 
seems quite possible that the option of a unanimous chairman's 
statement will emerge as a compromise plan. 
 
The prime minister has sensed the reluctance of China and Russia 
firsthand. After holding summit talks with leaders of other 
countries on the sidelines of the recent London financial summit, 
Aso said to his aides: "I sensed different nuances from China and 
Russia. China seems particularly reluctant (to adopt a 
resolution)." 
 
Next one week will be crucial 
 
Foreign Minister Hirofumi Nakasone asked on April 5 the foreign 
ministers of the five permanent UNSC members for cooperation on the 
phone. Yesterday, he made the same request to Deputy Prime Minister 
and Foreign Minister Khiem of Vietnam, a nonpermanent UNSC member, 
over the phone. Japan is trying to determine the right timing to 
submit a draft resolution to the UNSC in cooperation with the United 
States and other countries, while working upon other UNSC members. 
Japan eyes the adoption of a resolution including phrases 
recognizing the fact that North Korea violated a 2006 UN resolution 
and condemning the North for it and steps to enforce the sanctions. 
 
A Japanese diplomatic source thinks the next one week will be 
crucial. Idling away time under the divided UNSC would end up 
benefiting North Korea. The question is whether or not Japan can 
find a settlement line with China and Russia in that time frame. 
 
A source connected with the Japanese government noted: "A chairman's 
statement that is quite harsh would be better than a resolution that 
is thin and transparent." In the end, the prime minister might be 
pressed for a political decision. 
 
Administrative Vice-Foreign Minister Mitoji Yabunaka told a press 
conference yesterday: "All countries strongly think that the 
international community must remain united. Japan is well aware of 
that. But then, unless the United Nations responds to the matter 
resolutely, trust in the Security Council would diminish." 
 
4) Nakasone asks for Vietnam's cooperation 
 
NIKKEI (Page 2) (Full) 
April 7, 2009 
 
Foreign Minister Hirofumi Nakasone yesterday discussed on the phone 
with Foreign Minister Pham Gia Khiem of Vietnam, a nonpermanent 
member of the UN Security Council, on their responses to North 
Korea's recent launch of a Taepodong-2 missile. In the telephone 
 
TOKYO 00000788  004 OF 009 
 
 
conversation, Nakasone asked for Vietnam's cooperation for the 
adoption of a fresh UN Security Council resolution. 
 
5) Government eyes reduction in ceiling on remittances to North 
Korea as additional sanction 
 
YOMIURI (Page 1) (Full) 
April 7, 2009 
 
In reaction to North Korea's launch of a ballistic missile, which 
Pyongyang claimed to be a satellite launch, the government decided 
yesterday that it will decide in a cabinet meeting on April 10 to 
take additional economic sanctions against the North. Envisioned new 
sanctions include measures to tighten regulations on cash taken out 
and money transfer to North Korea, according to several government 
sources yesterday. The government will make a final decision after 
seeing responses by other UN Security Council member countries. 
 
The government eyes such additional sanctions as: (1) Lowering the 
notifiable amount of money to be transferred to North Korea from 30 
million yen and over to 10 million yen and over; and (2) lowering 
the notifiable amount of cash to be carried out from Japan to that 
nation from 1 million yen and over to 300,000 yen and over. Japan 
now bans imports of luxury goods such as beef and products related 
to weapons of mass destruction, but some are calling for a blanket 
ban. In the government, though, there is the view that tightened 
regulations on remittances would be more effective. 
 
In the cabinet meeting on the 10th, the government is expected to 
decide to extend the existing sanctions - a ban on port calls by 
North Korean ships and a total ban on imports - for a year, though 
sanctions have been extended on a six-monthly basis for now. The 
government will formally adopt the additional sanctions after 
soliciting public comments based on the Administrative Procedure 
Law. 
 
6) N. Korean missile fails to separate 2nd stage: Defense Ministry 
 
YOMIURI (Page 2) (Full) 
April 7, 2009 
 
The Defense Ministry analyzed the path of a ballistic missile North 
Korea launched while calling it a "satellite." The launched missile 
had its second-stage booster until reaching a point at sea about 
2,100 kilometers east of Japan beyond the scope of radar 
surveillance, sources revealed yesterday. North Korea had designated 
a sea area situated about 2,150 kilometers east of Japan as a danger 
zone where the second-stage booster could fall. It has now been 
confirmed that the missile had the booster just before reaching that 
danger zone. The Defense Ministry therefore deems that the missile 
failed to separate the second stage. 
 
According to the Defense Ministry's account, two Maritime 
Self-Defense Force Aegis-equipped destroyers staged in the Sea of 
Japan, the Kongo and the Chokai, calculated the launched missile's 
trajectory. As a result, the Defense Ministry presumed that the 
first-stage booster would fall into Sea of Japan waters about 280 
kilometers off Akita at 11:37 a.m., April 5, which means 5 minutes 
after the missile launch. The ministry announced that the second 
stage would land at a point in Pacific waters about 1,270 kilometers 
east of Japan. 
 
 
TOKYO 00000788  005 OF 009 
 
 
Based on that calculated data, another MSDF Aegis destroyer on stage 
in the Pacific Ocean, the Kirishima, tracked the launched missile 
with its radar. However, the missile continued to fly beyond the 
detectable scope of about 2,100 kilometers east of Japan without 
separating its second-stage booster and disappeared over the 
horizon. The Defense Ministry again scrutinized the results of radar 
detection yesterday but could not confirm that the missile had 
fallen. "Separation failed," said a senior official of the Defense 
Ministry. 
 
Meanwhile, the North American Aerospace Defense Command (NORAD) also 
noted April 5 that the missile failed to separate the second stage, 
saying the remaining stages (other than the first stage) fell into 
the Pacific Ocean along with the payload. 
 
7) North Korean missile: Destruction order terminated; Defense 
Ministry begins withdrawing PAC-3 batteries 
 
NIKKEI (Page 2) (Full) 
April 7, 2009 
 
In the wake of the launch of a Taepodong-2 missile by North Korea, 
Defense Minister Yasukazu Hamada terminated yesterday the order he 
gave to destroy a launched missile in case it was likely to land in 
Japan's soil or waters. Although the order was good until April 10, 
the minister decided to end the alert setup ahead of schedule as 
there has been no move in the North to launch an additional 
missile. 
 
In this connection, the Defense Ministry began yesterday withdrawing 
the PAC-3 ground-to-air guided missiles from Iwate and Akita 
prefectures and the Tokyo metropolitan area. The government has also 
closed its Crisis Management Center at the Prime Minister's Office 
(Kantei). 
 
8) Kadena noise worsens 
 
ASAHI (Page 35) (Abridged) 
April 7, 2009 
 
The frequency of noise around the U.S. Kadena Air Base, straddling 
the town of Kadena and other municipalities in Okinawa Prefecture, 
hit 39,357 times in fiscal 2008, an all-time high over the past five 
years, according to findings from Kadena Town's monitoring readouts. 
In May 2006, Japan and the United States reached an 
intergovernmental agreement over the realignment of U.S. forces in 
Japan. Under this agreement, some of Kadena-based fighter jets' 
flight training missions have been transferred to Air Self-Defense 
Force bases in mainland prefectures. However, the data shows that 
their training transferal has not alleviated the burden of 
base-hosting localities in the island prefecture. 
 
Kadena Town has set noise monitoring devices in the vicinity of 
Kadena Air Base to check the frequency of noise over 70 decibels 
that is unpleasant to humans. In fiscal 2008 (April last year 
through March this year), the frequency of noise was about 7,000 
times more than 32,549 times in the preceding fiscal year and marked 
the third largest number of times since the town started monitoring 
noise at the same locations in 1998, following FY2002 (40,175 times) 
and FY2003 (41,245 times) when the U.S. military activated its 
operations for the Afghan attack and the Iraq war. 
 
 
TOKYO 00000788  006 OF 009 
 
 
In particular, this year's January-March period recorded 11,846 
times (3,948 times per month on average), showing an increase of 30 
PERCENT  over last year's April-December period (3,057 times per 
month on average). In January, 12 F-22 stealth fighter jets arrived 
at Kadena Air Base from the U.S. mainland for a temporary deployment 
of three months. The town presumes that the increased frequency of 
noise is attributable to their training flights with F-15 fighter 
jets and other Kadena-based aircrafts. 
 
9) MSDF destroyer makes port call in Djibouti 
 
YOMIURI (Page 2) (Full) 
April 7, 2009 
 
Kenji Kato, Djibouti 
 
The Sazanami, a Maritime Self-Defense Force destroyer tasked with an 
antipiracy mission in waters off the eastern African coast of 
Somalia, made a port call in Djibouti on April 6 for fuel and food 
supply. Another MSDF destroyer, the Samidare, entered port in 
Djibouti on April 5. The two MSDF destroyers, which started 
convoying Japanese-registered and Japan-linked merchant ships on 
March 30, entered port in a coastal country for the first time. Koji 
Goto, 50, commander of MSDF Escort Division 4, commands the 
antipiracy mission. "We received 'thank you' mails from all the 
ships and our escort is encouraging their crew," Goto told 
reporters. 
 
The two MSDF destroyers have so far escorted a total of 10 
commercial ships in three shuttles, running about 900 kilometers 
between waters off the coast of Salalah, Oman and waters off the 
coast of Djibouti. On April 4, there was a radio message from a 
nearby tanker that was being tailed by four suspicious boats, and 
the Sazanami was dispatched there under the Mariners Law's Article 
14 that stipulates rescue operations for missing or distressed 
ships. "There was nothing wrong in particular," Goto said. 
 
10) Ozawa to meet with McCain on April 10 
 
NIKKEI (Page 2) (Full) 
April 7, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa will meet 
with members of the U.S. Senate Armed Services Committee, including 
John McCain, at party headquarters on April 10, a senior DPJ 
lawmaker said yesterday. The meeting, requested by the U.S. side, 
will also be attended by Secretary General Yukio Hatoyama. In the 
wake of the launch of a Taepodong-2 missile by North Korea, they are 
expected to exchange views on security affairs and other matters. 
 
11) Prime minister orders fiscal spending topping 10 trillion yen 
under fiscal 2009 extra budget 
 
ASAHI (Top Play) (Full) 
April 7, 2009 
 
In connection with a new set of economic stimulus measures, which 
the government and the ruling parties are now looking into, Prime 
Minister Aso on April 6 ordered Finance Minister Yosano to compile a 
fiscal 2009 budget that will involve spending more than 2 PERCENT 
of the gross domestic product (GDP: approximately 500 trillion yen). 
The amount will likely be covered at government expense. The size 
 
TOKYO 00000788  007 OF 009 
 
 
will be the largest ever, topping the fiscal 1998 third extra budget 
(7.6 trillion yen) compiled during the Obuchi cabinet. 
 
U.S. Treasury Secretary Geithner at the meeting of finance ministers 
and central bank governors of the Group of 20 Nations (G-20) had 
called on industrialized countries to set 2 PERCENT  of GDP as a 
numerical target in adopting economic stimulus measures. Japan can 
achieve that goal with an additional spending of 3 trillion yen or 
so, combined with the fiscal 2009 initial budget. The prime minister 
has, however, ordered expenditures over 10 trillion yen in the 
fiscal 2009 extra budget alone. 
 
Citing the reasons for such an order, the prime minister told 
reporters, "A decline in the outlook for the growth of the Japanese 
economy is the largest among industrialized countries. Another 
reason is for the sake of international cooperation. An agreement 
was reached at the London summit (G-20) that all participating 
countries increase fiscal spending." 
 
As priority items to be incorporated in the extra budget, the prime 
minister gave Yosano the following five: (1) creation of a new 
safety network for nonpermanent workers; (2) measures to help 
companies manage their cash flows, using government-affiliated 
financial institutions; (3) drastic dissemination of solar energy 
generation; (4) eliminating public anxieties over nursing-care and 
medical services; and (5) assistance to local governments to 
revitalize local regions. He also indicated three key principles 
starting with "T," namely "targeted" spending, "timely" measures and 
"temporary" outlays. He thus made it clear that the package this 
time is a time-limited measure to be implemented until the economy 
recovers. 
 
Regarding the timing to submit the extra budget, the prime minister 
during an LDP executive meeting held after he gave the order to 
Yosano instructed, "I would also like the party to make efforts in 
the run-up to the Golden Week consecutive holidays." Yosano told 
reporters that he was aiming at finalizing a new stimulus package, 
including the extra budget, by the 10th. 
 
12) DPJ President Ozawa today marks three years in office 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 7, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa marks today 
his third year in office. He enjoyed smooth sailing until his 
secretary was indicted over the alleged illegal donation scandal 
involving Nishimatsu Construction Co., but he has in a fix for one 
month. Although calls for Ozawa stepping down from his party post 
have now quieted down, whether he will be able to become "a 
candidate for the next prime minister" remains uncertain. 
 
Since his secretary was arrested on March 3, Ozawa has been busy 
with the handling of the donation scandal in a Tokyo hotel, by 
consulting with lawyers and explaining the scandal at press 
conferences. Therefore, there is a complete change in his election 
strategy, since he is unable to carry out his nationwide stumping. 
Secretary General Yukio Hatoyama said: "Whenever problems occurred 
around the party head, there were always skirmishes. So, party heads 
were unable to remain in office for a long time" This is one of the 
reasons why the DPJ is called a patchwork party. Seiji Maehara 
stepped down from the DPJ president's post in April 2006 over an 
 
TOKYO 00000788  008 OF 009 
 
 
e-mail fiasco, after serving only seven months. Naoto Kan also was 
forced to quit his party head post in May 2004 over his 
pension-premium nonpayment issue. 
 
Although Ozawa's decision to continue serving as party leader was 
approved, some DPJ lawmakers are still calling for his resignation. 
In public opinion polls by various media companies, a majority of 
the public is unhappy with Ozawa remaining in his party post. There 
is a growing wave of public backlash against Ozawa. 
 
Even though, calls for a quick exit by Ozawa have yet to grow 
stronger in the DPJ. The reason is that Ozawa has implied his 
intention to resign depending on the situation, while saying that he 
will take action in order to win the next general election of the 
House of Representatives. DPJ members consider that it is not time 
to engage in maneuvering. Ozawa assessed that the DPJ has changed. 
 
Another reason for the DPJ allowing Ozawa to remain in his post is 
that he has achieved such results over the past three years as 
victory in the 2007 House of Councillors election. Hatoyama 
stressed: "The party has become united since Mr. Ozawa became 
president. Under the Ozawa leadership, we won elections. His grip on 
the party has strengthened." 
 
However, Jun Azumi, deputy chairman of the DPJ Diet Affairs 
Committee, said: "Mr. Ozawa ponders the next move for a long time." 
A senior party member quipped: "In the day of peril, senior members 
are determined to submit resignations and urge the leader to quit 
his party post." Calls for Ozawa's resignation are still there in 
the DPJ. 
 
13) Tokyo Public Prosecutors Office investigation squad questioned 
Nikai's younger brother 
 
TOKYO SHIMBUN (Page 25) (Full) 
April 7, 2009 
 
It appears that the Tokyo Public Prosecutors Office special 
investigation squad questioned Economic, Trade and Industry (METI) 
Minister Toshihiro Nikai's younger brother (67) and others as 
reference witnesses over the allegation that Nishimatsu Construction 
Co., a second-tier construction contractor, offered an office room 
free of rent for the use by METI Minister Nikai's political 
organization. Former Nishimatsu Construction President Mikio 
Kunisawa (70), indicted in charge of violating the Political Fund 
Control Law, told public prosecutors that he and Nikai's brother 
created about 10 years ago through consultation a scheme under which 
Nishimatsu Construction covers the rents paid by the Nikai side with 
political fund donations. Questioned about such a scheme by public 
prosecutors, Nikai's brother appeared to have totally denied the 
allegation, saying, "We have never thought of such a framework. We 
rented the office and have been paying rents." 
 
According to a source connected to Nishimatsu Construction, Kansai 
Shinpu-Kai in Osaka City, a political organization managed in effect 
by Nikai's younger brother, signed a contract with a design company 
to rent a room in a condominium in Nishi Ward, Osaka City for 2.8 
million yen a year. Nikai's brother and Kunisawa around the same 
time agreed that rents for the office be covered with political 
funds donations. Nikai's state-fund secretary is said to have taken 
over that scheme. 
 
 
TOKYO 00000788  009 OF 009 
 
 
The investigation squad questioned Nikai's younger brother and his 
state-fund secretary to look into the possibility of building a case 
against Nikai. His brother totally denied the allegation, noting, 
"We have never had our rents paid with political funds donations." 
It appears that the state-fund secretary has also denied the 
allegation, saying, "I have never inherited such an agreement." 
 
According to the political fund report of the Liberal Democratic 
Party Wakayama No. 3 Constituency chapter, headed by Nikai, 
Nishimatsu Construction in 2006 and 2007 donated 3 million yen in 
each year in the names of 60 employees with each employee paying 
50,000. Since it is not necessary to enter donations in political 
fund reports, if they are less than 50,000 yen, the allegation that 
Nishimatsu Construction had donated political funds under the guise 
of individual donations by its employees has surfaced. 
 
14) Three bills to clear Lower House in April 
 
SANKEI (Page 5) (Excerpts) 
April 7, 2009 
 
There is a strong probability that a bill related to the 
establishment of a Consumer Agency, an anti-piracy bill, and a bill 
revising the National Pension Law, which are key bills in the latter 
half of the current Diet session, will clear the House of 
Representatives before the end of April. The reason is because the 
main opposition Democratic Party of Japan (DPJ), which has suffered 
from the alleged illegal donation scandal involving Nishimatsu 
Construction Co., is now taking a flexible stance toward 
consultations on revising the bills. There are awkward relations 
between the ruling and opposition camps. The Aso cabinet's support 
rate began to turn up. In order also to create circumstances under 
which Prime Minister Taro Aso can easily dissolve the Lower House in 
May, the ruling Liberal Democratic Party (LDP) intends to speed up 
the revision talks. 
 
"I wish the Consumer Agency-related bill will be passed in the Lower 
House this weekend," LDP Diet Affairs Committee Chairman Tadamori 
Oshima said in a meeting yesterday of senior members of the ruling 
parties' Diet affairs committees. Oshima instructed an LDP director 
of the Lower House Special Committee on Consumer Affairs to reach an 
early conclusion on the Consumer Agency-related bill by making 
concessions so that anti-piracy legislation will be dealt with 
quickly. The ruling and opposition camps have agreed to hold 
deliberations on the anti-piracy bill on April 14 in the Lower 
House. The National Pension Law revision bill, which is designed to 
increase basic pensions borne by the national government to 50 
PERCENT , will likely clear the Lower House probably on April 16. 
 
The LDP Diet Affairs Committee had initially expected that since the 
DPJ would oppose these two bills, Lower House override votes would 
be necessary. However, in consideration of the opposition's 
assertion that the Japan Cost Guard should deal with the anti-piracy 
legislation, the ruling and opposition blocs are carrying out 
revision talks behind the scenes on the anti-piracy bill, while the 
ruling coalition is suggesting the need to establish a new taskforce 
in the Ministry of Land, Infrastructure, and Transport, which 
oversees the JCG. The expectation is that the DPJ will agree to an 
early vote on the bill revising the National Pension Law. 
 
ZUMWALT