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RUCNDT/USMISSION USUN NEW YORK 4938

UNCLAS SECTION 01 OF 07 TOKYO 001047 
 
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 05/08/09 
 
Index: 
 
1) Stephen Bosworth, U.S. special representative for North Korea 
policy, is in Beijing for talks  (Yomiuri) 
 
Defense and security affairs: 
2) Government plans, in case of major piracy incident, to bring 
captured pirates via Djibouti back to Japan for trial  (Nikkei) 
3) Government considering putting research funds for early-warning 
satellites into fiscal 2010 budget  (Tokyo Shimbun) 
4) 402 U.S military-related persons under flu observation in Okinawa 
after returning from abroad  (Okinawa Times) 
 
Budget squabble: 
5) 2.85 trillion yen or 20 PERCENT  of supplementary budget bill to 
be funneled to public corporations that are havens for retired 
bureaucrats under amakudari system  (Tokyo Shimbun) 
6) Diet debates effect of supplementary budget bill; party heads to 
clash on May 13  (Asahi) 
 
DPJ in disarray: 
7) Issue of DPJ President Ozawa's remaining at the party's helm even 
intruding into budget deliberations in Diet  (Nikkei) 
8) Ozawa's fate being debated within the DPJ  (Nikkei) 
9) DPJ Secretary General Hatoyama and party group mulling post-Ozawa 
scenario  (Yomiuri) 
 
Articles: 
 
1) Bosworth arrives in Beijing for N. Korea talks 
 
YOMIURI (Page 2) (Full) 
May 8, 2009 
 
Keiichi Honma, Beijing 
 
A U.S. government delegation, led by Stephen Bosworth, the U.S. 
special representative for North Korea policy, arrived in Beijing 
yesterday to consult on the North Korean nuclear and missile issues. 
He has started a four-country trip to China, South Korea, Japan, and 
Russia. Bosworth met with Chinese Foreign Minister Yang Jiechi and 
Vice Foreign Minister Wu Dawei. In their meetings, the United States 
and China agreed to step up their bilateral cooperation, aiming to 
bring North Korea back to the six-party talks. 
 
This is the first Asia visit of a U.S. delegation since North 
Korea's (April 5) launch of a ballistic missile. Details of the 
meetings are unknown, but afterward, Bosworth said they had been 
"very significant." The U.S. delegation will arrive in Tokyo on May 
11 and exchange views with Foreign Ministry Asian and Oceanian 
Affairs Akitaka Saiki and other Japanese government officials. 
 
Bosworth and his party will arrive in Seoul today, but their stay 
there is for four days, so they are rumors of a possible visit to 
North Korea. 
 
2) Pirates in serious cases to be moved to Japan via Djibouti 
 
NIKKEI (Page 2) (Full) 
May 8, 2009 
 
The government, in its measures to be taken to deal with pirates in 
 
TOKYO 00001047  002 OF 007 
 
 
waters off the eastern African coast of Somalia, has decided to move 
pirates to Japan after detaining them in such serious cases as their 
killing Japanese nationals and there to enter criminal procedures. 
The government presumes that detaining armed pirates could bring 
about a state of war, so it will take careful action. However, the 
government will prioritize judicial procedures in Japan for crimes 
that mar the rights and interests of Japanese nationals. 
 
The government anticipates the case in which a Japanese national is 
either injured or killed by pirates in their attacks on a commercial 
ship. When a Maritime Self-Defense Force destroyer arrives there, 
and if Japan Coast Guard rangers onboard the MSDF destroyer can 
capture the pirates, the perpetrators will be airlifted to Djibouti 
Airport in the eastern part of Africa, using a patrol helicopter 
mounted on the destroyer. They will be flown to Japan on a 
commercial airliner. 
 
The government entered into a status of forces agreement with 
Djibouti on April 3, stipulating the legal status of Self-Defense 
Forces personnel and others. At the time, the government obtained 
Djibouti's permission to use seaports and airports for MSDF 
destroyers and P-3C patrol aircraft and also obtained its 
concurrence on flying pirates to Japan via that country. 
 
3) Gov't mulling budget for research on early warning satellite 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
May 8, 2009 
 
The government is considering including research costs in its fiscal 
2010 budget for the development of a satellite to detect enemy 
missile launches, government sources revealed yesterday. Due to 
North Korea's recent launch of a long-range ballistic missile, the 
government judged that the public is now less opposed to enhancing 
Japan's intelligence-gathering capabilities, the sources said. 
However, the development of an early warning satellite system is 
estimated to cost several hundred billion yen. There is no knowing 
if the idea will be translated into reality. 
 
The government has yet to make a formal decision on whether to 
introduce an early warning satellite. However, a government source 
explains that it will be possible for the government to make a final 
decision on whether to possess and develop an early warning 
satellite if its feasibility and cost can be predicted through 
research. 
 
In the late 1990s, the U.S. government opposed Japan's development 
of its own intelligence-gathering satellite, with one of its 
high-ranking officials calling it "wasteful" when considering 
role-sharing between Japan and the United States. Given this 
background, Japan will need to coordinate with the United States in 
its research and development of an early warning satellite. 
 
One of the major challenges in developing an early warning satellite 
system is how to develop a sensor with improved accuracy in 
detecting heat sources when a missile is launched. The Japanese 
government deems it possible for the Defense Ministry's Technical 
Research and Development Institute to develop a sophisticated 
sensor. 
 
4) New strain of influenza: Having returned from countries where the 
flu is spreading, 749 persons under observation in Okinawa 
 
TOKYO 00001047  003 OF 007 
 
 
Prefecture, of which 70 PERCENT  are Americans; U.S. 
military-related form a majority or 402 persons 
 
OKINAWA TIMES (Page 27) (Excerpt) 
May 8, 2009 
 
It was learned on May 7 that 749 persons (as of May 6) are being 
medically observed after having returned from a country where the 
new type of influenza has been spreading, such as Mexico, America, 
and Canada. This is a great jump from the 107 persons under 
observation as of May 1. Americans make up 70 PERCENT  of those 
under observation or 522 persons. Of these, more than a majority or 
402 persons are connected to the U.S. military. 
 
A spokesperson from the prefecture's department of social welfare 
and health said: "There are many U.S. military-connected persons 
traveling in and out of the prefecture. Only Okinawa seems to have 
so many Americans (under observation). Regarding the U.S. 
military-connected persons, we only receive reports from the U.S. 
Naval Hospital. The subject persons are under health observation by 
that hospital." A specialist pointed out that there was need for 
close exchanges of information with the U.S. military side. 
 
5) Nearly 20 PERCENT  of extra budget or 2.85 trillion yen to be 
allocated to corporations that accept retired bureaucrats 
(amakudari) 
 
TOKYO SHIMBUN (Top Play) 
May 8, 2009 
 
The government has submitted to the Diet the fiscal 2009 budget 
draft worth 14.7 trillion yen. It was found on May 7 through the 
government's reply to a request for data made by the Democratic 
Party of Japan (DPJ) that of that amount about 2.85 trillion yen or 
nearly 20 PERCENT  of the total budgetary amount will be disbursed 
to public corporations that accept retired bureaucrats. 
 
The DPJ pointed out that there is a possibility of budgetary funds 
being funneled from those corporations that are under the 
jurisdiction of central government agencies into industrial 
organizations and their family firms. The party is geared up to 
pursue the matter during Diet deliberations, casting doubts about 
the efficacy of the extra budget, which is supposedly intended to 
spur self-sustaining recovery of domestic demand in the private 
sector. 
 
The tally of government data made by the DPJ found that under the 
extra budget 1.561 trillion yen will be allocated to 49 independent 
administrative agencies that accept retired bureaucrats, including 
the Japan Housing Finance Agency, which extends financial assistance 
to housing and real estate business operators. 
 
Likewise, 1.2944 trillion yen will be allocated to public benefit 
corporations that also offer posts to retired bureaucrats, including 
the Japan Vocational Ability Development Association, which is 
tasked with implementing employment measures. 
 
According to the tally made by the DPJ, 389 former national 
government employees belonged to 49 independent administrative 
agencies as of April 2008. More than 170 former national government 
employees - only those whose data were available -- landed jobs at 
public interest corporations. 
 
TOKYO 00001047  004 OF 007 
 
 
 
6) Debate on efficacy of extra budget: Coordination under way to 
hold party head talks in Lower House on the 13th 
 
ASAHI (Page 4) (Abridged slightly) 
May 8, 2009 
 
Full-fledged verbal confrontation between the ruling and opposition 
camps over the fiscal 2009 extra budget started on May 7 at the 
Lower House Budget Committee. Deputy Democratic Party of Japan (DPJ) 
Chairman Naoto Kan and other DPJ members questioned Prime Minister 
Taro Aso and Finance Minister Kaoru Yosano about the extra budget 
bill valued at over 15 trillion yen. 
 
Kan cast doubts about the budget, saying, "The government was slow 
to take measures with real prospects for the future because it has 
been preoccupied with immediate issues. As a result, this 
large-scale extra budget was formulated. The proposed spending 
cannot possibly be called wise spending." The prime minister 
stressed that that the budget bill includes less public works than 
usual budgets and a fund covering multiple years. He rebutted, "You 
said that it is stupid or idiotic spending as opposed to wise 
spending, but I do not think so." 
 
The government included employment measures and child rearing 
assistance in the extra budget with the opposition parties in mind. 
 
The DPJ feels strongly that the government and the ruling parties 
have copied their policies, such as a cut in highway tolls. 
Regarding toll-free highways, the DPJ's flagship policy, Kan 
ardently said: "The temporary toll cut produced such a great effect. 
If highways are toll-free on weekdays as well, it would lower 
transportation costs." 
 
While the government's extra budget mainly includes funds to finance 
projects that will last for about three years, the DPJ's toll-free 
highway plan and a child benefit of 26,000 yen a month require 
permanent financial resources. For this reason, many on the 
government's side counterattacked Kan with Finance Minister Yosano 
saying, "Conjuring up money like magic is impossible." 
 
The ruling and opposition parties began coordinating their views on 
the 7th with the possibility of holding a party head debate between 
Prime Minister Aso and DPJ President Ozawa on the 13th. The DPJ will 
probably call for a debate. The ruling parties intend to accept 
their request on the condition that such a debate will not affect 
deliberations on the extra budget. Party head talks between Aso and 
Ozawa, if realized, would be the second party talks held since 
November of last year. 
 
Both camps agreed at the Lower House Budget Committee on the Diet 
schedule up to the 11th. The ruling camp proposed holding a vote on 
the extra budget on the 12th. However, the opposition camp opposed 
the proposal, citing that there have not been sufficient 
deliberations on the matter. The ruling parties intend to pass the 
budget through the Lower House before the end of next week. 
 
7) Maehara-led group criticizes DPJ President Ozawa over his course 
of action 
 
NIKKEI (Page 2) (Excerpts) 
May 8, 2009 
 
TOKYO 00001047  005 OF 007 
 
 
 
Many in the group of Democratic Party of Japan (DPJ) lawmakers close 
to Vice President Seiji Maehara last night criticized party head 
Ichiro Ozawa for his handling of the question of whether he will 
resign or stay in his post over his secretary's indictment over 
alleged illegal donations from Nishimatsu Construction Co. DPJ 
forces looking forward to seeing Ozawa's early resignation are 
urging him to make a quick decision with an eye on the possibility 
of the House of Representatives being dissolved in May or June. It 
is said that Ozawa has gained his confidence to continue serving as 
LDP president because the donation scandal has not spread. 
Therefore, there is a possibility that the gulf in the DPJ will 
widen. In a meeting yesterday of about 30 lawmakers, Maehara 
emphasized the sense of alarm that exists about the present 
situation. He said: "We will not win the Lower House election unless 
President Ozawa makes an effort to explain if he will remain in his 
post or step down. Yoshito Sengoku reportedly said: "This is not the 
time to wait. We should take the risk." 
 
The Maehara-led group's view is that if Ozawa's decision is delayed, 
it will give the impression of the DPJ having been driven into a 
corner. This would not be good for the party. The group and other 
DPJ forces calling for Ozawa's early resignation have pinned their 
hopes on Ozawa's voluntary exit. Vice President Katsuya Okada, who 
has called for Ozawa's explanation, said: "If I were Prime Minister 
Taro Aso, I would dissolve the Lower House in May." 
 
Ozawa, however, said in a recent meeting: "Only three months are 
left, anyway." He appears to be preparing for the long haul. One 
party member said: "He is trying to put off a decision." 
 
In fact, a person close to Ozawa said: "He predicts that the DPJ 
will be able to win the election, considering that the 
investigations into the scandal will soon be concluded." New Party 
Daichi head Muneo Suzuki yesterday called on Ozawa at his office in 
Tokyo. Suzuki gave words of encouragement to Ozawa. Ozawa nodded his 
head in reply. 
 
8) Ozawa issue affects Lower House budget committee session; DPJ 
fails to call for Lower House dissolution, LDP refrains from 
pursuing Ozawa 
 
NIKKEI (Page 2) (Full) 
May 8, 2009 
 
Democratic Party of Japan (DPJ) Deputy President Naoto Kan and Vice 
President Seiji Maehara took the floor as questioners in a House of 
Representatives Budget Committee session started yesterday. The two 
DPJ leaders criticized the government-sponsored fiscal 2009 
supplementary budget as pork-barrel spending that would create a 
bill to be paid by future generations. In consideration of discord 
in their party over a Lower House dissolution and general election, 
they forwent calling on Prime Minister Taro Aso to dissolve the 
Lower House. Therefore, their questions lacked punch in their 
offensive against the government. 
 
Kan played up the DPJ's proposals such as child allowances and the 
removal of highway tolls, while criticizing the government-drafted 
extra budget. He said: "There are many measures that are not wise in 
the supplementary budget." He also blasted the government plan on 
revenue resources, noting: "The amount of government bonds issuance 
will exceed total tax revenues, which can be called a financial 
 
TOKYO 00001047  006 OF 007 
 
 
reversal budget. 
 
However, Kan failed to call for Lower House dissolution, which is an 
annual event at deliberations in the Lower House Budget Committee. 
He spent only five minutes for his questions about the political 
situation. This indicates that the largest opposition party has yet 
to set its strategy - whether it should cooperate on deliberations 
on the extra budget to create an environment for Lower House 
dissolution or whether it should pursue thorough deliberations. 
Maehara did not refer to the dissolution issue, as well. 
 
Meanwhile, Nobutaka Machimura, a member of the ruling Liberal 
Democratic Party (LDP), criticized the DPJ's emergency economic 
stimulus package worth 21 trillion yen for two years. He said: "The 
DPJ has no revenue sources to back it." He, however, refrained from 
attacking DPJ President Ichiro Ozawa over the donation scandal 
involving his secretary. 
 
The LDP's view is that there still remains concern that the 
investigations into the scandal will spread to it and that if Ozawa 
resigns, the headwind against the DPJ may change to a favorable wind 
for it. LDP lawmakers calling for an early dissolution of the Lower 
House have judged that it will be easier for the ruling camp to win 
the general election if Ozawa continues serving as DPJ president. A 
senior LDP member yesterday said: "We should make the most use of 
Ozawa." 
 
9) Hatoyama group stands together: Its moves aimed at a post-Ozawa 
situation drawing attention 
 
YOMIURI (Page 4) (Abridged slightly) 
May 8, 2009 
 
The Association to Realize a Change of Administration, chaired by 
Yukio Hatoyama, secretary general of the Democratic Party of Japan 
(DPJ), met at their annual workshop in Karuizawa Town, Nagano 
Prefecture, to proclaim their solidarity. With expectation growing 
that calls in the DPJ seeking President Ozawa to voluntarily resign 
will grow around the time when the fiscal 2009 extra budget clears 
the Lower House, the Hatoyama group is expected to become more 
active with a post-Ozawa situation in mind. 
 
Thirty-five Diet members take part 
 
Touching on the alleged violation of the Political Fund Control Law 
involving Ozawa's fund management body, Hatoyama told the workshop: 
"I believe some of you have strong feelings about what has happened. 
Although there are various views, what is important is to 
demonstrate the party's solidarity." 
 
Approximately 35 members of the Diet joined the workshop. Many 
belong to more than one group. Lower House members Tenzo Okumura, 
chief of the executive office, and Katsumasa Suzuki were among the 
participants. An informal session held after the meeting was joined 
by senior Upper House members who are close to Ozawa, such as Vice 
President Hajime Ishii and Azuma Okiishi, head of the DPJ caucus in 
the Upper House. With growing calls in the Lower House for Ozawa's 
resignation in mind, Ishii said severely, "Upper House members are 
standing firm, but the Lower House members are being weak-kneed." 
 
Some participants take the view that as long as the unity between 
the Ozawa group and the Hatoyama group on the one side, and senior 
 
TOKYO 00001047  007 OF 007 
 
 
Upper House members on the other is maintained, the DPJ would be 
able to maintain its influence, even if Ozawa steps down. Some 
perceived such a motive from the line-up of those who took part in 
the workshop. 
 
Delicate distance 
 
However, there is distance starting to grow between Ozawa and 
Hatoyama. Even though Hatoyama invited Ozawa to join the workshop, 
he did not come. They met in Tokyo on the second of May. Hatoyama 
told Ozawa: "Keeping your style or the Ozawa style is all right. 
However, I would like you explain your thoughts at such a setting as 
an informal meeting so that people can understand what you think." 
He also called for holding party head talks. Ozawa reportedly 
replied, "I understand." However, some take the view that Ozawa is 
unhappy about Hatoyama's recent moves. 
 
ZUMWALT