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UNCLAS SECTION 01 OF 10 TOKYO 000911 
 
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 04/21/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule [Nikkei] 
 
Political agenda: 
4) Asahi poll: Cabinet support rate recovers somewhat to 26%, but 
60% of public unhappy with Aso government's economic policy  [Asahi] 
 
5) Prime Minister Aso says he is thinking only of passing the 
supplementary budget and not focusing on dissolving the Diet for a 
snap election  [Yomiuri] 
6) Liberal Democratic Party (LDP) Secretary General Hosoda says the 
supplementary budget should pass the Diet just after Golden Week 
(first week in May)  [Asahi] 
7) LDP's Suga in speech sees Diet dissolution coming after passage 
of the supplementary budget  [Asahi] 
8) Ruling coalition partner New Komeito expects Diet dissolution not 
to come until late August  [Asahi] 
9) Ozawa resumes political tour; Remains mum about Nishimatsu 
incident  [Mainichi] 
 
Economy: 
10) Government revises fiscal 2009 economic forecast downward to 
minus 3% growth  [Yomiuri] 
11) Contents of 13.9 trillion yen supplementary budget bill revealed 
 [Yomiuri] 
12) Japan-style "Green New Deal" plan to create 120 trillion yen 
market, boost jobs  [Sankei] 
 
Russian affairs: 
13) Russia's Prime Minister Putin will arrive in Japan May 11 
[Yomiuri] 
14) Former Vice Foreign Minister and Government Representative Yachi 
severely scolded for suggesting that Japan should settle for a 
return of less than all of the northern islands  [Yomiuri] 
 
15) Prime Minister Aso, Vietnam's top Communist Party official agree 
to cooperate in implementing the UNSC presidential statement 
condemning DPRK for missile launch  [Sankei] 
 
Defense affairs: 
16) Vice defense minister admits it would be difficult to retrieve 
the North Korean missile that fell into the sea  [Sankei] 
17) South Korea's defense minister to come to Japan April 23 for 
meeting with Defense Minister Hamada  [Asahi] 
18) People's New Party Secretary General Kamei opposes anti-piracy 
legislation  [Yomiuri] 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Collapsed moneylender SFCG offered to sell collateral at low price 
to family firms 
 
Mainichi: 
Hitachi mulls plan to seek public funds to strengthen financial 
standing 
 
 
TOKYO 00000911  002 OF 010 
 
 
Yomiuri: 
Toyota output to fall below 3 million units in fiscal 2009 
 
Nikkei: 
Government, insurers to offer insurance protection for new-home 
buyers 
 
Sankei: 
Chosen Soren suspected of failing to pay back debts totaling 6 
billion yen 
 
Tokyo Shimbun: 
In child murder case, retrial likely as result of DNA analysis 
 
Akahata: 
JCP member reveals Panasonic's plan to cut 15,000 jobs 
 
2) EDITORIALS 
 
Asahi: 
(1) DPJ must seriously address Ozawa's scandal over illegal 
donations 
(2) OAS Summit: Put an end to the "cold war" 
 
Mainichi: 
(1) Illegal direct mail incident: Japan Post's responses 
incomprehensive 
(2) Government should take proper economic stimulus measures, not 
based on hypothesis 
 
Yomiuri: 
(1) We wonder why Ozawa avoids debate with Aso 
(2) Make full use of intellectual assets 
 
Nikkei: 
(1) Urgently eradicate bid-rigging by revising Antimonopoly Law 
(2) Iran should release Japanese-American reporter 
 
Sankei: 
(1) Revise Organ Transplant Law to increase donors 
(2) Kanji test body must boldly reform management and make fresh 
start 
 
Tokyo Shimbun: 
(1) Review of system to make local governments pay part of costs for 
government projects can be taken as test case of decentralization 
(2) Purpose of Education Ministry's requirement of all schools to 
participate in academic ability test remains unclear 
 
Akahata: 
(1) OAS Summit marks start of new "regional order" 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 20 
 
NIKKEI (Page 2) (Full) 
April 21, 2009 
 
08:59 
Met Chief Cabinet Secretary Kawamura at the Kantei. 
 
 
TOKYO 00000911  003 OF 010 
 
 
09:11 
Attended a welcome event for Vietnamese Communist Party General 
Secretary Nong Duc Manh. 
 
10:41 
Met LDP Secretary General Hosoda and Diet Affairs Committee Chairman 
Oshima, joined by Kawashima. 
 
11:38 
Met LDP anti-global warming headquarters chief Noda, his deputy 
Sonoda and others. 
 
15:24 
Met Japan Association of Geriatric Health Services Facilities 
Chairman Kawai, in the presence of Lower House member Tokuichiro 
Tamazawa. 
 
15:59 
Met Upper House member Ichiro Tsukada. 
 
17:03 
Attended an LDP executive meeting in the Diet building. Hosoda 
stayed on. 
 
18:16 
Had a meeting with Manh at the Kantei. 
 
19:28 
Held a joint press conference. Afterward hosted a dinner party. 
 
21:42 
Dined at a Japanese restaurant in Akasaka with LDP Election Strategy 
Council Chairman Koga, former Foreign Minister Koumura, former 
Defense Minister Kyuma, and former METI Minister Hiranuma. 
 
22:43 
Returned to the official residence. 
 
4) Poll: Cabinet support rebounds to 26% 
 
ASAHI (Page 1) (Full) 
April 21, 2009 
 
The Asahi Shimbun conducted a telephone-based nationwide public 
opinion survey on April 18-19, in which the rate of public support 
for Prime Minister Aso's cabinet rebounded to 26% from the 22% 
rating in the last survey taken March 28-29. The nonsupport rate was 
57% (64% in the last survey). Asked about the prime minister's 
recently announced additional package of economic stimulus measures, 
60% answered that they appreciated it, with 25% saying they didn't. 
 
Cabinet support went down to 13% in a survey taken Feb. 19-20. It 
gradually recovered in the last and latest surveys. The last survey 
was conducted after Democratic Party of Japan (Minshuto) President 
Ozawa's state-funded secretary was indicted for illicit political 
donations from Nishimatsu Construction Co. Cabinet support among 
those who support the ruling Liberal Democratic Party rose from 56% 
to 65%. 
 
The additional stimulus package is based on a plan to issue 
government bonds for funding resources. With this explained, 
respondents were asked if they appreciated the stimulus package. In 
 
TOKYO 00000911  004 OF 010 
 
 
response to this question, "yes" accounted for only 20% among those 
with no particular party affiliation or floating voters that account 
for nearly 50% of all respondents. Even among those who support the 
ruling Liberal Democratic Party, opinion was split, with "yes" 
accounting for 44% and "no" at 39%. As seen from these figures, the 
additional package did not boost cabinet support substantially. 
 
Ozawa, after his secretary was indicted, clarified that he would 
remain in his party post for the time being. In the survey, 
respondents were asked whether they thought Ozawa should resign from 
his party post. To this question, "yes" accounted for 61%, with "no" 
at 28%. In the last survey, "yes" accounted for 63%, though the 
question was asked in a little different way. 
 
Respondents were also asked about the dispatch of Maritime 
Self-Defense Force destroyers for an antipiracy mission in waters 
off the eastern African coast of Somalia. In response to this 
question, affirmative answers totaled 61%, with negative answers 
accounting for 26%. Respondents were further asked about the 
advisability of allowing the MSDF to fire on pirate ships if they 
refuse orders to stop. To this question, 50% answered "yes," with 
36% saying "no." 
 
5) Prime Minister Aso: Early passage of extra budget is important 
 
YOMIURI (Page 2) (Full) 
April 21, 2009 
 
When asked by reporters last evening about when he would dissolve 
the House of Representatives and call a general election, Prime 
Minister Taro Aso said: 
 
"Lower House dissolution and passage of the supplementary budget 
(for fiscal 2009) are not directly related. (However) as long as I 
have heard, expectations for the extra budget are surprisingly 
strong. So, it is important to pass it through the Diet as early as 
possible." 
 
Aso indicated in his remarks that he would put all his efforts to 
push the fiscal 2009 extra budget and related bills through the Diet 
rather than to dissolve the Lower House 
 
In this connection, Liberal Democratic Party (LDP) Election Strategy 
Council Deputy Chairman Yoshihiro Suga said yesterday at a gathering 
in Tokyo: "I told the prime minister that he should walk the high 
road after passing (the extra budget) through the Diet." He 
emphasized at the gathering that the passage of the extra budget and 
related bills would become a precondition for the prime minister to 
dissolve the Lower House. 
 
New Komeito Secretary General Kazuo Kitagawa revealed his view at a 
gathering in Osaka City that the Lower House should be dissolved in 
August or later. 
 
6) LDP Secretary General Hosoda: Fiscal 2009 extra budget would 
clear Diet after Golden Week holidays in early May 
 
ASAHI (Page 4) (Full) 
April 21, 2009 
 
Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda, 
referring at a press conference yesterday to a supplementary budget 
 
TOKYO 00000911  005 OF 010 
 
 
for fiscal 2009 and related bills, said: "We will work hard next 
week, aiming to get them through the Diet after the consecutive 
holidays." He revealed that the ruling LDP would aim at the passage 
of the extra budget and related bills in the middle of May. He 
indicated that the Diet should carry out deliberations on the extra 
budget even in between the Golden Week holidays, saying: "Since the 
economic situation is extremely severe, the passage of the budget 
should be speeded up." 
 
LDP Diet Affairs Committee Chairman Tadamori Oshima, who has been 
instructed along with Hosoda by Prime Minister Taro Aso to have the 
extra budget passed through the Diet as early as possible, said in a 
party last evening hosted by a House of Representatives member: 
 
"I think Prime Minister Aso, who has said that he places priority on 
the economy rather than on the political situation, wants to decide 
on his own as to when to dissolve the Lower House, once the 
supplementary budget gets through the Diet as quickly as possible." 
 
7) Lower House should be dissolved after extra budget clears Diet: 
LDP's Suga 
 
ASAHI (Page 4) (Full) 
April 21, 2009 
 
Yoshihide Suga, deputy chairman of the ruling Liberal Democratic 
Party (LDP) Election Strategy Council, yesterday delivered a speech 
in Tokyo. Referring in it to the timing of dissolution of the House 
of Representatives and of the general election, he said: "I told the 
prime minister that he should walk the high road, after (the fiscal 
2009 supplementary budget) clears the Diet." He indicated his view 
that the Lower House should be dissolved before the terms of the 
Lower House members expire, after the extra budget and related bills 
clear the Diet. 
 
8) New Komeito hopes Lower House will be dissolved in late August or 
later 
 
ASAHI (Page 4) (Full) 
April 21, 2009 
 
New Komeito Secretary General Kazuo Kitagawa yesterday delivered a 
speech in Osaka City, in which said: 
 
"I assume that the economy will bottom out somewhere around 
mid-August, when the gross domestic product (GDP) figure for the 
April-June period is released. When many people feel that the 
economy has bottomed out, this would be an opportunity for 
dissolution of the House of Representatives." 
 
He expressed his hopes that Lower House dissolution would be put off 
to late August or later. 
 
9) Ozawa resumes political tour; Remains mum about Nishimatsu 
incident 
 
MAINICHI (Page 5) (Excerpts) 
April 21, 2009 
 
Joichi Sato, So Watanabe 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa completely 
 
TOKYO 00000911  006 OF 010 
 
 
resumed yesterday his nationwide political tour after a lapse due to 
the arrest and indictment of his state-paid secretary for violation 
of the Political Funds Control Law. Delivering a speech at a party 
held by a DPJ House of Councillors member in Kitakyushu, Ozawa 
expressed his eagerness for a change of government. He did not refer 
to the scandal involving his secretary, however. Questions have been 
raised from within the DPJ which expected a clear-cut explanation 
for the voters, with a veteran lawmaker saying, "With this, will be 
able to turn the tables?" 
 
In the speech, Ozawa discussed his enthusiasm for his party taking 
power, saying: "Since my departure from the Liberal Democratic Party 
(LDP), I have been working hard, thinking there is no future for 
Japan unless parliamentary democracy takes root. My dream is now 
within reach." After the party, he was asked by a reporter why he 
did not touch on the incident involving his secretary. Ozawa simply 
replied, "Today's event is not for an explanation of such a 
matter." 
 
Since the incident came to light on March 3, Ozawa has significantly 
slowed down the pace of his local tours. Before yesterday's party, 
he had only attended an event held in Yokohama on March 15 for a DPJ 
candidate running in the next Lower House election and the camp on 
March 28 of the DPJ candidate running in the latest Chiba 
gubernatorial election. His schedule was not announced for either 
event. His visit to Fukuoka Prefecture yesterday marked his first 
official local event since the revelation of the scandal. 
 
Ozawa resumed his nationwide political stumping tour in compliance 
with the advice by Secretary General Yukio Hatoyama and others to 
offer a detailed explanation to the general public about the scandal 
and how political funds were used. But in Kitakyushu yesterday, 
Ozawa neither conducted a town hall meeting, a form proposed by 
Hatoyama, nor touched on the political funds scandal. It is unclear 
if he is willing to offer an explanation deeper than before. 
 
Amid growing criticism of Ozawa's lack of explanation, Lower House 
member Muneo Suzuki, representing the proportional representation 
Hokkaido bloc, defended Ozawa in a BS11 digital program yesterday. 
Suzuki said: "He has set out a total ban on corporate and 
organizational donations, so he has fulfilled his accountability." 
 
10) Government significantly downgrades its projection for growth in 
fiscal 2009 to minus 3% 
 
YOMIURI (Page 1) (Full) 
April 21, 2009 
 
The government on April 20 began making adjustments toward 
downgrading its outlook for the growth of real domestic product for 
fiscal 2009 to minus 3% or so. It had adopted an outlook for 0.0% 
growth in the GDP at a cabinet meeting in January, but will 
significantly downgrade its outlook based on the worse-than-expected 
economic decline. In the past, the government also downgraded its 
outlook for growth for fiscal 2001 from 1.7% to minus 0.9% due to 
the 9/11 terrorist attacks on the U.S. However, the downward 
revision this time is the worst revision ever made to the 
government's economic projection. 
 
In its additional economic stimulus measures adopted on the 10th, 
the government put forward a policy of propping up the economy. Its 
judgment was that though the real growth rate would be pushed down 
 
TOKYO 00000911  007 OF 010 
 
 
by around 2%, the growth will not sink into negative territory. The 
government usually revises its economic outlook adopted in the 
beginning of the year in the summer. An economic outlook revision in 
April is unprecedented. The outlook for tax revenues will also 
decline due to the downward revision in the growth outlook. As a 
result, recapitalizing the nation's financial base will become 
increasingly difficult. 
 
11) Fiscal 2009 extra budget bill totals 13.93 trillion yen, with 
new government bond issuance totaling 10.82 trillion yen as revenue 
sources 
 
YOMIURI (Page 2) (Full) 
April 21, 2009 
 
The details of a supplementary budget for fiscal 2009 that includes 
the government's additional economic stimulus measures were unveiled 
yesterday. The general account totals about 13.93 trillion yen, the 
largest ever scale, exceeding the approximately 7.638 trillion yen 
allocated in the third extra budget in fiscal 1998. 
 
The government has decided to use about 850 billion yen of the one 
trillion yen earmarked in the initial budget for fiscal 2009 to fund 
emergency measures to buoy up the economy, so total outlays will 
boost to about 14.7 trillion yen. Moreover, about 600 billion yen 
will be disbursed from the Unemployment Insurance Special Account 
for economic stimulus measures, bringing up the total amount to 
about 15.4 trillion yen. 
 
The supplementary budget bill allocates about 2.97 trillion yen for 
monetary measures, about 2.58 trillion yen as outlays for social 
infrastructure construction, about 2.38 trillion yen for local 
governments, and about 2.02 trillion yen to fund assistance measures 
for the elderly and child-raising parents. 
 
As revenue sources, the government will issue about 7.33 trillion 
yen worth of construction bonds and about 3.49 trillion yen worth of 
deficit bonds, in addition to funds from the economic stimulus 
reserve. New government bond issuance will total 10.82 trillion yen. 
Besides, about 3.1 trillion yen will be disbursed from the 
interest-rate fluctuation reserve in the Special Account for Public 
Investment and Loans. By issuing more investment-and-loan bonds 
(totaling about 6.1 trillion yen) to finance measures to help 
companies raise funds, the government intends to increase outlays 
for the fiscal investment and loan program to about 7.84 trillion 
yen. 
 
12) Japanese version of Green New Deal: Environment market to be 
expanded to 120 trillion yen; 2.8 million jobs to be created by 
2020 
 
SANKEI (Page 3) (Full) 
April 21, 2009 
 
The government on April 20 released a Japanese version of the Green 
New Deal initiative. The envisaged plan aims at expanding the 
environment market by 50 trillion yen to 120 trillion yen by 2020, 
compared with the size of 2006. The number of jobs in the 
environment conservation-related area will also be doubled to 2.8 
million in comparison with the level of the same year. Rebuilding or 
repairing homes for energy-saving will most contribute to the 
creation of jobs. The plan estimates that the number of jobs will 
 
TOKYO 00000911  008 OF 010 
 
 
grow three-fold in that field. 
 
The outline of the government's economic growth strategy notes that 
the realization of a low carbon society and improved regional 
medical services will boost the real gross domestic product by 120 
trillion yen and create 4 million jobs. The initiative reflects 
almost all environment measures included in that strategy. 
 
Among environment conservation measures, rebuilding and repairing 
homes to make them an energy-saving type and repairs of compact home 
electronic appliances are expected to create the largest number of 
jobs. The Environment Ministry says that it will establish regional 
Green New Deal funds totaling 55 billion yen to promote measures to 
combat global warming and shore up local economies and job markets. 
It will also provide subsidies to local governments when they 
promote measures to manufacture, maintain and repair energy-saving 
equipment. It estimates that the home refurbishment and repair 
market created by such measures will become 20 trillion yen in 2020, 
double the level of 2006, and the size of employment to 900,000, 
triple the level of the same year. 
 
The dissemination of energy-saving electronic appliances by such 
means as installing solar energy generators at such public 
facilities as schools, and the introduction of an eco-point system 
is expected to expand the energy-saving equipment machinery market 
from 20 trillion yen in 2006 to 30 trillion yen in 2020. The size of 
employment is also expected to grow from 100,000 to 200,000. 
 
13) Premier Putin to visit Japan on May 11 
 
YOMIURI (Page 4) (Full) 
April 21, 2009 
 
It was decided that Russian Premier Putin will visit Japan on May 
11-12. He will meet with Prime Minister Aso. They are expected to 
exchange views on such issues as the Northern Territories issue, the 
launch of a ballistic missile by North Korea and economic 
cooperation in the Russian Far East. This will be Putin's first 
visit to Japan since November 2005. 
 
14) Northern Territories issue: Foreign minister reprimands on phone 
government representative Yachi over his statement accepting return 
of only 3 1/2 islands 
 
YOMIURI (Page 4) (Full) 
April 21 2009 
 
Mainichi Shimbun reported that regarding the Northern Territories 
issue, government representative Shotaro Yachi, former vice foreign 
minister, made a statement that the return of only 3 1/2 islands is 
acceptable. In connection with this, Foreign Minister Nakasone on 
April 20 telephoned Yachi, now visiting the U.S., and asked what he 
really meant by that. This was revealed by Vice Foreign Minister 
Mitoji Yabunaka at a press conference on the 20th. According to 
Yabunaka, Yachi replied, "I did not make such a statement. However, 
I might have made a misleading remark in my statement as a whole." 
The foreign minister reportedly reprimanded Yachi, noting, "It is 
regrettable that you made a misleading statement." 
 
Comment by Public Relations Section of the Mainichi Shimbun 
President Office: "We recorded our interview with Mr. Yachi with his 
consent. The article is based on his statement." 
 
TOKYO 00000911  009 OF 010 
 
 
 
15) Aso, Vietnamese leader agree to cooperate for implementation of 
UNSC presidential statement on North Korea 
 
SANKEI (Page 5) (Full) 
April 21, 2009 
 
Prime Minister Taro Aso held talks with visiting Vietnamese 
Communist Party General Secretary Nong Duc Manh at the Prime 
Minister's Office last evening. In the meeting, Prime Minister Aso 
sought Vietnam's cooperation for the implementation of the UN 
Security Council presidential statement adopted in reaction to North 
Korea's missile launch [on April 5]. In response, the general 
secretary indicated that his country would like to cooperate with 
countries concerned, including Japan. Vietnam is a nonpermanent UNSC 
member and has diplomatic ties with North Korea. 
 
The two leaders agreed on the importance of the denuclearization of 
the Korean Peninsula. "I hope for the resumption of the Six-Party 
talk," Manh said. Aso explained Japan's standpoint regarding the 
abduction issue, and the Vietnamese general secretary responded, "I 
am aware of the feelings of the Japanese people." 
 
In addition, they agreed to deepen bilateral relations as a 
strategic partnership for the peace and prosperity of Asia. They 
released a joint statement after their talks. 
 
Manh invited Aso to visit Vietnam, and Aso replied that he would 
like to visit at a convenient time. 
 
16) Vice defense minister: Retrieving North Korean missile 
difficult 
 
SANKEI (Page 5) (Full) 
April 21, 2009 
 
Administrative Vice-Defense Minister Kohei Masuda, in a press 
conference yesterday, dismissed the possibility of retrieving the 
debris from the long-range ballistic missile fired by North Korea 
[on April 5] that fell into the Sea of Japan and the Pacific Ocean. 
He said: "Their splashdown points have not been determined. The 
technical difficulty in retrieving the objects remains unclear. It 
is generally difficult to retrieve any object that fell in the 
ocean. The government should make a decision after all conditions 
become clear by taking into consideration the option's legal aspects 
and its cost effectiveness." 
 
17) S. Korean defense chief to arrive in Japan April 23 
 
ASAHI (Page 4) (Full) 
April 21, 2009 
 
Yoshihiro Makino, Seoul 
 
South Korean Defense Minister Lee Sang Hee will visit Japan from 
April 23 and is scheduled to meet with Defense Minister Hamada. 
Japan and South Korea will hold a meeting of their defense ministers 
for the first time since February 2007 when then Defense Minister 
Kim Jang Soo visited Japan. The two countries will conclude a 
memorandum of understanding (MOU) that incorporates a periodic 
defense exchange program for the Self-Defense Forces and South 
Korean forces. In addition, the two defense ministers will also 
 
TOKYO 00000911  010 OF 010 
 
 
exchange views about such matters as the military situation in North 
Korea. 
 
The MOU is intended to stabilize bilateral defense exchanges that 
have been often suspended in the aftermath of Yasukuni Shrine visits 
and other issues. Tokyo and Seoul are now coordinating to specify 
exchange events, including mutual high-level defense visits and 
joint sea rescue drills. The two defense chiefs will reach an 
agreement in their meeting and would like to make the MOU binding. 
 
18) People's New Party Secretary General Kamei opposes anti-piracy 
legislation 
 
YOMIURI (Page 4) (Full) 
April 21, 2009 
 
General Secretary Hisaoki Kamei of the People's New Party (PNP) on 
April 20 revealed his stance on the anti-piracy legislation to a 
press conference held in Yokoyama on April 20. He said, "I cannot 
accept the legislation, unless it is for a limited period of time." 
The PNP along with the Democratic Party of Japan (DPJ) are calling 
on the ruling parties to revise six items. However, there has 
appeared an observation that the PNP has shifted its policy stance 
on the anti-piracy issue to that of the Social Democratic Party, 
which is opposing the bill. 
 
ZUMWALT