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UNCLAS SECTION 01 OF 10 TOKYO 000920 
 
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 04/22/09 
 
Index: 
 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule [Nikkei] 
 
Defense and security affairs: 
4) In reaction to North Korean missile launch, government has 
decided to study early warning system under basic plan for use of 
outer space  [Yomiuri] 
5) Former Prime Minister Abe says Japan should consider having the 
capability of striking enemy bases  [Sankei] 
6) Revision talks stall as Democratic Party of Japan (DPJ) rejects 
Liberal Democratic Party (LDP) compromise proposal for anti-piracy 
bill  [Mainichi] 
7) Gap between LDP and DPJ over Diet involvement in MSDF anti-piracy 
missions cannot be filled  [Asahi] 
 
Yasukuni revisited: 
8) Prime Minister Aso makes offering to Yasukuni Shrine  [Mainichi] 
 
9) Aso made offering to Yasukuni Shrine out of consideration for 
conservative forces  [Tokyo Shimbun] 
10) China avoids direct criticism of Aso's Yasukuni visit; ROK calls 
it "extremely regrettable"  [Tokyo Shimbun] 
 
Political agenda: 
11) Diet atmosphere heats up over supplementary budget, with 
opposition camp refusing to start debate April 27  [Mainichi] 
12) DPJ President Ozawa wants "thorough debate" on the supplementary 
budget, rejects the bill's early passage through the Diet  [Sankei] 
 
13) Refusing to step down as party head, Ozawa insists that his 
staying on is the "general will of the party"  [Tokyo Shimbun] 
 
14) IMF calculates that Japanese, American, and EU financial 
institutions suffered losses totaling 392 trillion yen from the 
current financial crisis  [Yomiuri] 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun: 
Supreme Court uphold death penalty in curry poisoning case 
 
Nikkei: 
Government considering plan to provide Pioneer with 30 billion yen 
under recapitalization program 
 
Akahata: 
JCP Chairman Shii, Vietnamese counterpart Manh agree on cooperation 
to eradicate nuclear weapons 
 
2) EDITORIALS 
 
Asahi: 
(1) Death sentence and questions left behind in curry poisoning 
case 
(2) Details of anti-piracy bill must be fully discussed 
 
TOKYO 00000920  002 OF 010 
 
 
 
Mainichi: 
(1) Curry poisoning incident: Lay judges should use citizens' 
experiences and common sense 
(2) Unified national tests unnecessary 
 
Yomiuri: 
(1) Government must tighten industrial spying laws 
(2) Death sentence handed down in curry poisoning case, though 
motives still unclear 
 
Nikkei: 
(1) Amendments to anti-piracy bill needed for early passage 
(2) Hitachi's misleading fridge "eco-friendly" ads impermissible 
 
Sankei: 
(1) Resumption of Ozawa's canvassing tour expected to amplify public 
distrust in politics 
(2) Ruling in curry poisoning case: Detailed explanations needed for 
lay judges 
 
Tokyo Shimbun: 
(1) Curry poisoning motives remain unclear 
(2) Hitachi fridge ads: Don't deceive consumers with words 
"eco-friendly" 
 
Akahata: 
(1) Distribution of tax money to political parties should be 
terminated 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 21 
 
NIKKEI (Page 2) (Full) 
April 22, 2009 
 
09:02 
Attended a cabinet meeting. Foreign Minister Nakasone stayed on. 
 
09:56 
Made an informal representation at the Imperial Palace on 
decorating. 
 
11:03 
Put his things in order at his private residence in Kamiyamacho. 
 
11:42 
Returned to his official residence. 
 
13:02 
Attended a Lower House plenary session. 
 
14:38 
Met Assistant Chief Cabinet Secretary Fukuda at the Kantei. 
 
15:15 
Met LDP Policy Research Council Chairman Hori and LDP Japanese 
Economy Revitalization Strategic Council Chairman Machimura, 
followed by Foreign Ministry Okinawa Affairs Ambassador Imai. 
 
16:13 
 
TOKYO 00000920  003 OF 010 
 
 
Met Finance Minister Yosano, Cabinet Office Policy Director-General 
Matsumoto, followed by Vice Finance Minister Sugimoto and Vice 
Minister of Finance for International Affairs Shinohara. 
 
17:17 
Attended a Central Disaster Prevention Council meeting. Afterward 
met Chief Cabinet Secretary Kawamura. 
 
18:03 
Attended a Council for Science and Technology Policy meeting. 
Science and Technology Minister Noda and Cabinet Office Vice 
Minister Yamamoto stayed on. 
 
19:42 
Dined at a French restaurant in Marunouchi with METI Minister Nikai, 
Vice METI Minister Mochizuki, Deputy Director-General for Policy 
Coordination Ishige, and Economic and Industrial Policy Bureau 
Director-General Matsunaga. 
 
22:00 
Returned to his official residence. 
 
4) Space plan suggests need for early warning satellites 
 
YOMIURI (Page 1) (Full) 
April 22, 2009 
 
The government's space development strategy taskforce, headed by 
Prime Minister Aso, has worked out a draft of its first ground plan 
for Japan's space activities or the space master plan. In the wake 
of North Korea's launch of a ballistic missile early this month, the 
master plan proposes looking into the feasibility of introducing 
early warning satellites that can detect missile launches abroad. In 
addition, the plan also features lunar exploration as a major goal 
in the future, aiming to utilize the moon's resources. The taskforce 
is scheduled to meet April 27 to approve the plan, and the 
government will make an official decision in late May on the plan 
after seeing public comments. 
 
The space master plan refers to the use of outer space in the 
security area, noting: "Despite the United Nations Security 
Council's resolutions and the international community's calls for 
restraint, North Korea launched a missile in April 2009. In view of 
this move, the role of space is higher than ever." With this, the 
plan suggests the need for the government to consider introducing 
early warning satellites. 
 
In concrete terms, the master plan proposes setting a five-year plan 
to develop and utilize satellite systems for security purposes and 
it says the government should steadily conduct research on sensors 
needed for early warning satellites. In addition, it also says 
Japan, currently operating three intelligence-gathering satellites, 
should have a full line up of four intelligence-gathering satellites 
in five years. Concerning how to position the master plan in Japan's 
defense policy as a whole, the plan says it will be left to the 
government in the process of revising Japan's national defense 
program guidelines and midterm defense buildup plan by the end of 
this year. The master plan also touches on a total image of Japan's 
satellites in the years ahead, indicating that Japan is going to 
launch a total of 34 satellites over the period of five fiscal years 
from 2009 to 2013. 
 
 
TOKYO 00000920  004 OF 010 
 
 
In addition, the taskforce predicts more space debris in 
consideration of China's test launch of a ballistic missile to 
destroy a satellite and the collision of U.S. and Russian 
satellites. In this regard, the master plan suggests the need to 
reduce and watch space debris, saying Japan should take the 
initiative for environmental conservation in cooperation with the 
international community. 
 
5) Japan should mull enemy base strike option: Abe 
 
SANKEI (Page 5) (Full) 
April 22, 2009 
 
Former Prime Minister Shinzo Abe of the ruling Liberal Democratic 
Party yesterday spoke at LDP headquarters before a group of 
middle-ranking and junior lawmakers seeking to strengthen Japan's 
deterrence against North Korea. Given North Korea's launch of a 
ballistic missile early this month, Abe remarked: "Japan and the 
United States need to have their missile-defense systems function 
well, while deepening bilateral cooperation. In order to do so, we 
should discuss the option of exercising the right of collective 
self-defense and the option of acquiring the capability of striking 
enemy bases." 
 
Abe touched on the case where Japan's Self-Defense Forces intercept 
a long-range ballistic missile attacking the United States. Deeming 
it technically possible in the future, Abe suggested the need to 
clear up the legal problems before that. When Abe was in office, his 
cabinet launched an advisory panel on reconstructing the legal base 
for Japan's national security. Its report called on the government 
to reinterpret the Constitution in order for Japan to participate in 
collective self-defense. Referring to the capability of striking 
enemy bases, Abe said: "We will have to discuss the hardware and 
clear up the legal problems." 
 
6) Antipiracy bill revision talks face rough going; DPJ opposes 
LDP's compromise plan 
 
MAINICHI (Page 5) (Abridged slightly) 
April 22, 2009 
 
Yasushi Sengoku, Yu Koyama 
 
Talks began yesterday between the ruling parties and the major 
opposition Democratic Party of Japan (DPJ), which wants revisions to 
the government-sponsored antipiracy bill. The legislation would 
allow the Self-Defense Forces to operate in waters off Somalia. In 
the talks, the DPJ presented a set of revisions, including one to 
make prior Diet approval mandatory for an SDF dispatch. The talks 
ran into difficulties, and the two sides decided to meet again on 
April 22 or later. Eager to enact the bill at an early date, the 
ruling bloc intends to ram the legislation through the House of 
Representatives later this week, regardless of its talks with the 
DPJ. 
 
Directors of the ruling parties and the DPJ of the Lower House 
Antipiracy and Antiterrorism Special Committee met yesterday in the 
Diet building. In the session, the DPJ presented a plan to: (1) 
establish the antipiracy headquarters led by the prime minister, (2) 
make it mandatory for the government to obtain prior Diet approval, 
and (3) review the law three years from now. 
 
 
TOKYO 00000920  005 OF 010 
 
 
The ruling bloc gave consideration to the opposition camp that 
insists that the Japan Coast Guard (JCG) must play the central role 
in antipiracy operations. In the meeting, the ruling camp presented 
a set of procedures in lieu of establishing the antipiracy 
headquarters, such as allowing the land, infrastructure, and 
transport minister to request the prime minister to dispatch the SDF 
in an event that requires more than the JCG's ability. A senior DPJ 
lawmaker described the ruling bloc's plan as "completely 
unacceptable." The prevailing view is that reaching an agreement 
will be difficult. 
 
Differences in stances even among opposition parties on revising the 
bill are also making the talks difficult. The Social Democratic 
Party and the People's New Party are set to oppose the DPJ plan to 
the last. The committee plans to carry out a question-and-answer 
session on April 23 with Prime Minister Taro Aso attending. The 
ruling bloc is aiming to have the committee adopt the legislation 
that day. 
 
7) Ruling, opposition parties at odds over requirement of Diet 
approval in anti-piracy bill 
 
ASAHI (Page 4) (Full) 
April 22, 2009 
 
Jun Tabuse, Hisashi Ishimatsu 
 
Senior policymakers of the Liberal Democratic Party and the New 
Komeito started consultations with their counterparts from the 
Democratic Party of Japan (DPJ) yesterday on revisions to the 
government's anti-piracy bill. The bill would govern Maritime 
Self-Defense Force's (MSDF) operations to crack down on piracy in 
the Gulf of Aden off Somalia. Both sides, however, remain at 
loggerheads over the most contentious issue of Diet involvement. 
Settlement of this issue was carried over to today or later. The 
ruling camp intends to ram the bill through the House of 
Representatives this week, even if it fails to reach an agreement 
with the opposition parties. 
 
In the talks yesterday, the ruling side presented a draft proposal 
revising two points in the government's bill. One revision would 
strengthen the Japan Coast Guard's (JCG) role, in response to a 
request by the DPJ. The government bill stipulates: "The defense 
minister will issue an order to mobilize Self-Defense Force troops 
to cope with a situation that demands a higher capability than what 
the JCG can offer." But the draft proposal requires JCG to take 
procedures to ask the Defense Ministry for anti-piracy operations. 
Another is an additional provision on international cooperation, 
such as assistance for coastal countries' anti-piracy efforts. 
 
But regarding the DPJ's call for increased Diet involvement by 
requiring prior Diet approval, the ruling camp would not respond. 
The government bill does not seek Diet approval, just noting: "The 
prime minister should make a report to the Diet at times when he 
approves anti-piracy operations and when the mission is over." Prime 
Minister Aso said: "Since anti-piracy operations are categorized as 
a maritime policing action, there is no need to obtain Diet 
approval." In reaction, the DPJ has insisted that even if such is 
categorized as a maritime policing action, since SDF troops are 
being dispatched overseas, Diet approval should be required from the 
viewpoint of civilian control. 
 
 
TOKYO 00000920  006 OF 010 
 
 
In the talks on revising the government bill yesterday, former 
Defense Agency Director General Gen Nakatani, an LDP member, 
categorically said: "(Anti-piracy operations) are based on police 
authority, and not military activities. Such operations do not 
affect the general population, so Diet approval is unnecessary." 
Meanwhile, DPJ Diet Affairs Committee Chairman Kenji Yamaoka 
indicated in a meeting of Diet members yesterday that the party 
would stand firm on its position, saying: "[The ruling camp] has 
begun to make an absurd assertion reflecting its intention to remove 
in advance a chance to reflect public opinion." 
 
The DPJ said it would give a second thought to the ruling camp's 
proposed revisions. In its executive meeting, however, participants 
reportedly shared the view that the proposals were totally 
unacceptable. The party will make a formal reply today, but it is 
highly possible that unless the ruling parties present a new 
proposal, revision talks will end in rupture. 
 
8) Prime Minister Aso offers 'masakaki' to Yasukuni Shrine 
 
MAINICHI (Page 2) (Full) 
April 22, 2009 
 
Prime Minister Taro Aso made an offering of 'masakaki' to Yasukuni 
Shrine at his own expense for the shrine's spring festival that 
began yesterday. Offerings of masakaki, made of branches taken from 
a sakaki tree, are placed at the shrine's altar. Aso told reporters 
last evening at the Prime Minister's Official Residence [Kantei]: "I 
made an offering last October as well. I made the offerings to 
express my gratitude and respects to those who died for the 
country." Asked whether he would visit Yasukuni Shrine while in 
office, Aso said: "I will make an appropriate decision." 
 
According to Yasukuni Shrine, Aso offered one potted masakaki for 
50,000 yen, and the offering was made in his name as "Prime Minister 
Taro Aso." 
 
Some 20 years ago, then Prime Minister Yasuhiro Nakasone made a 
masakaki offering to Yasukuni Shrine. In April 2007, then Prime 
Minister Shinzo Abe also made a similar offering. 
 
In this connection, asked by reporters yesterday about the 
construction of a new national cemetery that (then) Chief Cabinet 
Secretary Yasuo Fukuda's advisory panel had proposed in December 
2002, Chief Cabinet Secretary Takeo Kawamura stated: "At present, it 
is not on the agenda." 
 
9) Aso makes offering at Yasukuni Shrine in deference to 
conservatives; Strong reactions of China and South Korea within 
range of expectations 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
April 22, 2009 
 
Akihiro Ikushima 
 
Prime Minister Taro Aso presented Yasukuni Shrine for its spring 
festival with a potted masakaki - an offering of branches of the 
masaki evergreen tree which is considered sacred in Shinto - that he 
bought out of his own pocket. The act reflects his decision with an 
eye on the next Lower House election. 
 
 
TOKYO 00000920  007 OF 010 
 
 
The offering cost him 50,000 yen. He made an offering last fall, as 
well. In making the offering, Aso used the title "prime minister." 
Last night, Aso explained to the press corps at the Prime Minister's 
Office: "I expressed my gratitude and respects to those who 
sacrificed their precious lives for our country." 
 
Although the Aso cabinet's support ratings are picking up, the prime 
minister is particularly concerned about LDP supporters turning 
their backs on Aso, according to an Aso aide. 
 
Aso used to visit Yasukuni on its spring and fall festivals. But he 
has refrained from doing so since he became foreign minister in the 
Koizumi cabinet in 2005 out of consideration for China and South 
Korea. 
 
When he ran for the LDP presidency last fall, Aso exhibited a 
cautious stance. This seems to have disappointed those who supported 
the visits to the shrine by then Prime Minister Junichiro Koizumi. 
 
With the next general election approaching, Aso apparently intended 
to demonstrate he was giving consideration to conservatives, 
especially the powerful support group Japan War-Bereaved 
Association, by making an offering as prime minister during the 
shrine's important festival. 
 
The act has already drawn negative reactions from China and South 
Korea, which had fiercely opposed Koizumi's shrine visits. Aso is 
scheduled to visit China on April 29-30 and hold talks with 
President Hu Jintao. Aso's offering to the shrine might become a 
topic there. 
 
Aso is believed to have judged that an offering, not a visit, would 
not have a serious impact on relations with China and South Korea. 
Even if the two governments' reactions are constrained, how the 
public of the two countries react to the event is unknown. 
 
10) China stops short of directly criticizing Aso's shrine offering; 
South Korea expresses extreme regret 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 22, 2009 
 
Norisuke Asada, Beijing 
 
In reaction to the fact that Prime Minister Taro Aso made an 
offering to Yasukuni Shrine for its spring festival, Chinese Foreign 
Ministry spokeswoman Jiang Yu in a regular press briefing on April 
21 called on Japan to deal with the matter appropriately and 
cautiously. She said: "In China-Japan relations, Yasukuni Shrine is 
an important and sensitive political issue." She stopped short of 
directly criticizing the act, however. With Prime Minister Aso 
scheduled to visit China on April 29-30, Beijing apparently gave 
consideration to relations with Japan, which have been improving. 
 
Eiji Tsukiyama, Seoul 
 
In reaction to an offering to Yasukuni Shrine by Prime Minister Aso, 
a South Korean Foreign Affairs and Trade Ministry spokesman release 
a statement on April 21 that said: "It was extremely regrettable 
from a perspective of the correct historical view." 
 
11) Battle over fiscal 2009 extra budget heats up at talks by Diet 
 
TOKYO 00000920  008 OF 010 
 
 
affairs committee chairmen: Opposition parties reject ruling 
parties' proposal to enter into deliberations on the 27th 
 
MAINICHI (Page 5) (Excerpts) 
April 22, 2009 
 
The Diet affairs committee chairman of ruling and opposition parties 
held talks in the Diet building to discuss a schedule for 
deliberating on the fiscal 2009 extra budget and related bills. The 
ruling parties proposed submitting the bills to the Diet on the 27th 
and then entering into deliberations after a fiscal speech and a 
question-and-answer session in the Lower House on the same day. The 
opposition camp, however, rejected the proposal, insisting that 
thorough deliberations are needed. Since the outcome of the next 
Lower House election is directly connected to which camp takes the 
lead in deliberations on the extra budget, the battle between the 
two camps is intensifying. 
 
Liberal Democratic Party (LDP) Diet Affairs Committee Chairman 
Tadamori Omori during the meeting stressed: "There is a growing risk 
that the Japanese economy will hit a new. It is necessary to 
implement the extra budget as early as possible." During the 
meeting, Oshima conveyed Prime Minister Taro Aso's intention to hold 
deliberations on April 30 and May 1 in between the Golden Week 
holidays. Some ruling party members are aiming to railroad those 
bills through the Lower House on May 8. 
 
The ruling camp is speeding up its efforts to pass the bills into 
law, because it calculates that the ruling parties would find it 
difficult to oppose the extra budget under the harsh economic 
conditions. The government and the ruling parties are also motivated 
by their desire to produce results in their efforts to shore up the 
economy, by having the Diet enact the key legislation so that they 
can make a public appeal in up-coming Lower House election 
campaigns. Many members are taking a bullish stance, with one senior 
LDP official noting: "Talks between the ruling and opposition 
parties are now impossible. We should hold deliberations actively. 
We are now ready to fight." 
 
Democratic Party of Japan (DPJ) Diet Affairs Committee Chairman 
Kenji Yamaoka rebutted: "I cannot accept the ruling party's stance 
of enacting the bills quickly so that they can be settled in time 
for the upcoming election." At a press conference on the same day, 
President Ichiro Ozawa clarified a confrontational stance, saying: 
"The amount of government bonds issued exceeds the amount of 
revenue. Some are even proposing making up for deficits with a hike 
in the sales tax. We will thoroughly deliberate on the way the 
drafting of the budget is being left to bureaucrats and 
administrators to work out." 
 
12) DPJ President Ozawa: We will call for thorough deliberations on 
fiscal 2009 extra budget 
 
SANKEI (Page 5) (Full) 
April 22, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday 
held a press briefing at party headquarters. In it, he stressed that 
his party would call for thorough deliberations on the supplementary 
budget for fiscal 2009 and related bills that the government is 
expected to submit on April 27 to the Diet, and would not agree to 
an early voting. He stated: "We will thoroughly discuss the contents 
 
TOKYO 00000920  009 OF 010 
 
 
of the budget drafted by bureaucrats, and talk about how a state 
budget should be drafted." 
 
Regarding the contents of the extra budget, Ozawa pointed out: 
 
"Although the budget includes many impromptu measures, it does not 
include any systematic reforms. It contains requests from ministries 
and agencies, and smells like a waste of tax money." 
 
He criticized the government-drafted extra budget, saying: 
 
"I have heard that some (in the ruling camp) suggest that a bill for 
the issuance of government bonds be covered by a consumption tax 
hike. This is very different from trying to activate the Japanese 
economy." 
 
In a meeting yesterday of the Diet affairs committee chairmen from 
the ruling and opposition parties, Liberal Democratic Party (LDP) 
Diet Affairs Committee Chairman Tadamori Oshima sought cooperation 
from the opposition bloc. The opposition, however, demanded thorough 
deliberations, citing the large scale of the budget. The ruling 
parties confirmed in a meeting yesterday of their Diet affairs 
committee chairmen that they would start deliberations on May 1 at 
the House of Representatives Budget Committee and aim to pass the 
extra budget and related bills on May 8 in the Lower House. 
 
13) DPJ's Ozawa: My continuing to serve as party leader reflects 
general will of the party 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 22, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa was asked 
yesterday by reporters whether he would remain in his party post, 
even though his state-funded secretary has been indicted for 
receiving illegal donations from the Nishimatsu Construction Co. He 
expressed his view that the party had already agreed to let him 
continue serving as the DPJ president, and emphasized that he had no 
intention to quit his party post. He said: 
 
"The DPJ as an organization has decided to let me remain in my post 
after going through necessary procedures. I am determined to do my 
best along with my party members for the upcoming House of 
Representatives election." 
 
He also revealed that he would actively carry out a nationwide 
stumping tour, which he recently resumed. He told the reporters: "I 
have received many invitations across the nation. I wish to go to 
Nagoya for the mayoral election to support our candidate, if 
possible." 
 
Asked about opinion polls that find much of the public calling on 
him to take responsibility for the donation scandal, Ozawa 
criticized the media, saying: "If the media report correctly, the 
public will understand." He then added: "It is deplorable to see 
unfair reports made under the guise of being neutral and fair. 
 
14) Losses incurred by Japanese, U.S. and European financial 
institutions in ongoing financial crisis reach 392 trillion yen, 
according to IMF estimate 
 
YOMIURI (Page 2) (Full) 
 
TOKYO 00000920  010 OF 010 
 
 
April 22, 2009 
 
The International Monetary Fund (IMF) on April 22 released an 
outlook that losses incurred by Japanese, U.S. and European 
financial institutions in the financial crisis that started last 
year will reach 4 trillion dollars or roughly 392 trillion yen. The 
report notes that two-thirds of the losses were incurred by banks, 
and the remainders were by insurance companies and hedge funds. 
 
This was revealed in the World Financial Stabilization Report, which 
the IMF released the same day. Losses caused by investments made 
within the U.S., such as those in subprime loans, a housing loan 
targeting people in the low-income bracket, and securitized products 
taking such loans as collateral, reportedly come to 2.712 trillion 
dollars or roughly 265 trillion yen, nearly 70% of the entire 
losses. The amount is larger than the estimate made as of January 1 
this year - 2.2 billion dollars. 
 
The IMF for the first time estimated losses caused by investments in 
Europe and Japan. It estimates losses incurred by European countries 
to be 1.193 trillion dollars and those incurred in Japan to be 149 
billion dollars. 
 
The report also notes that the increased losses pushed up the 
amounts of capital financial institutions need to reinforce - up to 
about 500 billion dollars for U.S. banks and about 725 billion 
dollars for European banks. The report points out that it is 
essential to restore market confidence by injecting public money 
into banks that can continue operations, even if they are 
undercapitalized. It also indicated a view that it is necessary to 
temporarily nationalize some banks, depending on the circumstances. 
 
ZUMWALT