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UNCLAS SECTION 01 OF 08 TOKYO 001069 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 05/11/09 
 
INDEX: 
 
(1) Ozawa intends to resign as DPJ president; Press conference to 
start at 5 o'clock this evening (Yomiuri) 
 
(2) Ozawa decides to resign as DPJ president (Yomiuri) 
 
(3) Interview with Russian Prime Minister Putin - The economy is top 
priority in relations with Japan; Hopes pinned on construction of 
auto-assembly plants in the Far East (Nikkei) 
 
(4) Japan, South Korea to pave way for resuming EPA talks by 
upgrading consultations to deputy director general-level (Sankei) 
 
(5) Putin to arrive in Japan tomorrow; Opportunity slim for progress 
of territorial issue; Government wants to find lead to bridge gap 
with Russia over "creative approach" (Nikkei) 
 
(6) Poll on Constitution (Asahi) 
 
(7) Poll: 54 PERCENT  feel their financial situations have declined 
(Yomiuri) 
 
(8) Japanese companies raising hopes for taking part in development 
of Iraqi oil fields with 115 billion barrels of reserves (Yomiuri) 
 
ARTICLES: 
 
(1) Ozawa intends to resign as DPJ president; Press conference to 
start at 5 o'clock this evening 
 
YOMIURI ONLINE 
 
14:12, May 11, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa decided 
earlier today to step down from the post and conveyed his decision 
to some party executives. Even after his first state-funded 
secretary was indicted on charges of violating the Political Funds 
Control Law in connection with illegal donations from Nishimatsu 
Construction Co., Ozawa has announced his intention to stay on. But 
calls for his resignation have been growing within the party. Ozawa 
is expected to hold a news conference at 5 o'clock this evening to 
formally announce his intention to resign as DPJ president. 
(2) Ozawa decides to resign as DPJ president 
 
YOMIURI ONLINE (Excerpts) 
15:18, May 11, 2009 
 
Democratic Party of Japan (DPJ) President Ichiro Ozawa decided 
earlier today to step down from the post to take responsibility for 
a violation of the Political Funds Control Law over his political 
funds management body, Rikuzankai. 
 
Ozawa will hold a press conference this evening. Such persons as 
Secretary General Yukio Hatoyama and Vice President Katsuya Okada 
are being mentioned as his successor. 
 
In the party, there were views tolerant of Ozawa continuing to 
service as party president. But in view of strong public criticism, 
Ozawa is believed to have concluded that his resignation would be 
inevitable in order to minimize the scandal's negative impact on the 
 
TOKYO 00001069  002 OF 008 
 
 
next House of Representatives election. The DPJ is expected to 
immediately select his successor. Ozawa's resignation will be a 
serious blow to the party that is seeking to take over the reins of 
government. 
 
Ozawa in the past has insisted that he saw no illegality in 
political donations from the dummy political organizations of 
Nishimatsu Construction Co., a second-tier general contractor 
headquartered in Minato Ward, Tokyo, saying that he did not have the 
perception that the donations came from Nishimatsu. 
 
There were growing calls within the DPJ for an early resignation of 
Ozawa as party head in order to bring the scandal to a close. 
 
In the DPJ, there are those calling for producing a unified view 
through talks and those who think an election should be held by some 
candidates. 
 
Some are eager to push Okada, with one saying, "Although he lacks 
glitz, he is a policy specialist with a sense of stability and has a 
clean image, as well." At the same time, there is a move to rally 
around Hatoyama who has supported Ozawa as secretary general. 
 
(3) Interview with Russian Prime Minister Putin - The economy is top 
priority in relations with Japan; Hopes pinned on construction of 
auto-assembly plants in the Far East 
 
NIKKEI (Top play) (Excerpts) 
May 10, 2009 
 
Hikaru Sakai, Moscow 
 
Russian Prime Minister Vladimir Putin gave an interview to Nikkei, 
Kyodo News Service, and NHK ahead of his visit to Japan that will 
start on May 11. In the interview, the prime minister expressed hope 
that Japanese companies would build car-assembly plants in the Far 
East, indicating that he would present the Japanese side with a list 
of economic cooperation projects. Putin also indicated Russia's 
readiness to hold talks on the issue of the long-standing 
territorial dispute over four Russian-held islands off Hokkaido, but 
he stopped short of referring to taking a "creative and 
unconventional approach," a matter agreed upon in a summit in 
February between Prime Minister Taro Aso and Russian President 
Dmitry Medvedev. Putin demonstrated his determination to handle the 
territorial issue cautiously during his upcoming visit to Japan, 
while prioritizing economic relations. 
 
Putin made it clear that, during his stay in Japan, a number of 
intergovernmental pacts will be signed and agreements at the private 
level are also expected to be inked. He also presented the outlook 
that the two countries will be able to sign a bilateral nuclear 
agreement now in the final phase of coordination, to promote the use 
of nuclear power, including nuclear power plants, in the civilian 
sector. 
 
The Russian prime minister also said that his country would present 
Japan, via its Foreign Ministry, with a list of economic cooperation 
projects that cover such areas as energy, lumber, space, machinery, 
communications, chemistry, and steel. He defined Japan as an 
important partner for developing exchanges based on advanced 
technologies. 
 
 
TOKYO 00001069  003 OF 008 
 
 
In particular, Putin highly assessed Nissan Motor Co.'s plan to open 
a plant in St. Petersburg in June despite the financial crisis, 
following the example of Toyota Motor Corp. He expressed hope, 
saying: "A Russian corporation plans to build an auto-assembly plant 
in the Far East. We will support the construction of similar plants 
by Japanese firms." Although the prime minister did not refer to the 
exact number of projects, sources say that there are some 200 
projects on the list. 
 
Regarding the territorial issue, he simply said that the development 
of bilateral relations on all fronts was prerequisite, playing up 
the stance of prioritizing results in economic cooperation through 
his Japan visit starting May 11. He did not answer a question about 
what kind of "creative approach" Russia would specifically take. The 
prime minister is unlikely to make any concrete proposals on the 
matter. 
 
An outline of views expressed by Prime Minister Putin 
 
Q Russia is prepared to settle the territorial dispute. To do so, 
the development of bilateral relations is essential on all fronts. 
Q It is premature to respond to an argument to return 3.5 of the 
four Northern islands to Japan. 
Q During his stay in Japan, the prime minister will pay maximum 
attention to the development of economic and trade relations. 
Q Intergovernmental agreements, including a nuclear agreement, will 
be signed. 
Q A list of projects calling for investment from Japan will be 
presented. 
Q The new nuclear arms reduction treaty to be concluded with the 
United States will be linked with the missile defense (MD) program. 
 
(4) Japan, South Korea to pave way for resuming EPA talks by 
upgrading consultations to deputy director general-level 
 
NIKKEI (Page 3) (Full) 
May 10, 2009 
 
The governments of Japan and South Korea have decided to hold 
consultations of deputy director general-level officials soon in 
order to resume negotiations to conclude an economic partnership 
agreement (EPA). These negotiations have been suspended since 
November 2004. In order to prepare an environment for the 
consultations, the two governments will upgrade the division 
director-level talks that were held twice last year to deputy 
director general-level ones. However, due to the global economic 
slowdown, many South Korean business leaders remain cautious about 
concluding an EPA with Japan. Therefore, it is uncertain whether 
Tokyo and Seoul will be able to conclude an EPA. 
 
The consultations of the deputy director general-level officials 
will be held before the end of March by an Asian and Oceanian 
Affairs Bureau deputy director general of Japan's Ministry of 
Foreign Affairs and deputy director general of the FTA Policy Bureau 
of South Korea's Foreign Affairs and Trade Ministry. The two 
governments plan to hold such talks several times within the year. 
The Japanese government considers deputy director general-level 
consultations to be the final step toward full-scale negotiations, 
according to a senior Foreign Ministry official. 
 
There is strong concern in South Korea that if it concludes an EPA 
with Japan, the inflow of Japanese products to its markets will be 
 
TOKYO 00001069  004 OF 008 
 
 
accelerated. South Korea has a chronic trade deficit with Japan. 
Tokyo has sought Seoul's understanding through industrial 
cooperation by holding forums for CEOs of small- and medium-size 
companies. 
 
It is predicted that whether Japan increases its investment in South 
Korea will become a key point in the deputy director general-level 
consultations. How the Japanese government responds to the 
liberalization of its agricultural market that the South Korean 
government has called for will become a major issue. 
 
The Japanese and South Korean governments agreed in a summit meeting 
in October 2003 to wrap up negotiations, including the start of 
consultations on a free trade agreement (FTA) within 2003, before 
the end of 2005. The two governments have held such negotiations six 
times since December 2003. However, the negotiations were suspended 
when the South Korean government objected because it felt Tokyo was 
negative about opening up its agricultural market. 
 
After that, the leaders of the two countries agreed in their meeting 
in February 2008 on a policy of resuming the negotiations. A meeting 
of division director-level officials was held June 2008. When Prime 
Minister Taro Aso visited Seoul in January this year, it was agreed 
that the consultations should be speeded up. 
 
(5) Putin to arrive in Japan tomorrow; Opportunity slim for progress 
of territorial issue; Government wants to find lead to bridge gap 
with Russia over "creative approach" 
 
NIKKEI (Page 2) (Excerpts) 
May 10, 2009 
 
Russian Prime Minister Vladimir Putin is scheduled to visit Japan on 
May 11 and to hold talks with Prime Minister Taro Aso on the12th. 
Japan wants to elicit a positive statement from Prime Minister Putin 
about a "new creative approach" for the settlement of the disputed 
Russian-held islands off Hokkaido, as was agreed upon in a summit in 
February between Prime Minister Aso and Russian President Dmitry 
Medvedev. In an interview ahead of his visit to Japan, Prime 
Minister Putin remained cautious about the territorial issue. 
Whether Japan can find a clue to resolving the Northern territories 
issue is unclear. 
 
Putin will be the first Russian prime minister to officially visit 
Japan in three and a half years since 2005. Putin, along with 
Medvedev, is responsible for economic policy. In the interview, 
Putin indicated that the promotion of trade and economic exchanges 
would be the top priority in his upcoming visit to Japan, suggesting 
that the territorial issue is under the jurisdiction of the 
president. 
 
Nevertheless, having held talks with Japan between 2000 and 2008, 
Putin is well-versed in the territorial issue. He has been wielding 
significant influence over the president even after stepping down 
from the post. A senior Foreign Ministry official thinks Prime 
Minister Putin's push is essential for moving the territorial issue 
forward. 
 
In February, Aso and Medvedev agreed in Sakhalin to accelerate 
efforts to solve the territorial issue by pursuing a "creative and 
unconventional approach." Russia is expected to present its reply 
regarding the territorial issue in a Japan-Russia summit to be held 
 
TOKYO 00001069  005 OF 008 
 
 
on the sidelines of this year's G-8 summit to be held in Italy in 
July. 
 
Japan wants to feel out Russia's response through the upcoming 
Aso-Putin meeting ahead of the July summit. Although Putin did not 
refer to the question of a creative approach, Japan believes he has 
discussed Russia's response with Medvedev. 
 
During his tenure as president, Putin suggested a settlement in line 
with the 1956 Japan-Soviet Joint Declaration that stipulates the 
return of the Habomai islet group and Shikotan after concluding a 
peace treaty. 
 
Possible ways to break the deadlock in the Northern Territories 
issue are being mentioned. One of them is a call by special envoy 
Shotaro Yachi for the return of 3.5 of the four Russian-controlled 
islands, namely the Habomai islet group, Shikotan, Kunashiri and 
part of Etorofu. But there still remains a huge gulf with Japan, 
which aims at settling the question of sovereignty over the four 
islands as a package. 
 
(6) Poll on Constitution 
 
ASAHI (Page 3) (Full) 
May 2, 2009 
 
Questions & Answers 
(Figures shown in percentage, rounded off. Bracketed figures denote 
proportions to all respondents. Figures in parentheses denote the 
results of a survey conducted April 19-20, 2008.) 
 
Q: Looking at the Constitution as a whole, do you think it needs to 
be revised? 
 
Yes 53 (56) 
No 33 (31) 
 
Q: (Only for those who answered "yes") Why? (One choice only) 
 
Because we want to create a new constitution by ourselves 9(5) 
Because there is a problem with Article 9 15(8) 
Because new rights and systems should be incorporated 74(39) 
 
Q: (Only for those who answered "no") Why? (One choice only) 
 
Because the Constitution has taken root in the nation and there's no 
problem that requires revising 36(12) 
Because Article 9 could be changed 44(15) 
Because it helps guarantee freedom and rights 14(5) 
 
Q: Constitution Article 9 stipulates that Japan renounces war and 
maintains no war capabilities. Do you think it would be better to 
change this provision? 
 
Yes 26 (23) 
No 64 (66) 
 
 
Q: (Only for those who answered "yes") How would you like 
Constitution Article 9 to be changed? (One choice only) 
 
Only describe the existence of the Self-Defense Forces 50(13) 
 
TOKYO 00001069  006 OF 008 
 
 
Define the SDF as a military entity as in other countries 44(11) 
 
Q: What do you think about future SDF activities overseas? How far 
do you think the SDF should be allowed to act overseas? Pick only 
one that is closest to your opinion. (One choice only) 
 
The SDF should not be allowed to act overseas at all 9 (15) 
The SDF should be allowed to act overseas without using force 56 
(64) 
The SDF should be allowed to use force if necessary 32 (17) 
 
Q: The Constitution stipulates that all people shall have the right 
to maintain the minimum standards of wholesome and cultured living. 
How much do you think this has been realized? 
 
Almost realized 6 
Somewhat realized 45 
Not realized very much 41 
Hardly realized at all 6 
 
Polling methodology: The survey was conducted April 18-19 over the 
telephone on a computer-aided random digit dialing (RDD) basis. 
Respondents were chosen from among the nation's voting population on 
a three-stage random-sampling basis. Valid answers were obtained 
from 2,094 persons (55 PERCENT ). 
 
(7) Poll: 54 PERCENT  feel their financial situations have declined 
 
YOMIURI (Page 1) (Abridged) 
May 4, 2009 
 
The Yomiuri Shimbun conducted a face-to-face nationwide public 
opinion survey on April 25-26, in which a total of 54 PERCENT 
answered "yes" when respondents were asked if they felt their 
financial situations had declined compared to this time last year. 
The figure was dramatically worse than the result of the last survey 
conducted in December 2006 in which 25 PERCENT  answered "yes" to 
the same question. This is the second highest figure next to 59 
PERCENT  from a survey taken in February 1980 in the aftermath of 
the second oil shock. It indicates that the public is actually 
feeling the effects of the current severe economic slump. 
 
When asked about daily life, "no change" decreased to 43 PERCENT 
(69 PERCENT  in the last survey). "Better off" accounted for only 3 
PERCENT  (6 PERCENT  in the last survey). However, when asked about 
prospects for the Japanese economy, "no change" accounted for 51 
PERCENT , with "worsen" for 26 PERCENT  and "improve" for 19 PERCENT 
. 
 
Respondents were also asked if they felt uneasy about their own or 
their families' jobs. In response to this question, a total of 78 
PERCENT  answered "yes," with 21 PERCENT  saying "no." Those who 
answered "yes" were further asked to select to multiple answers for 
their concerns. To this question, "decreased income" accounted for 
76 PERCENT , exceeding all other answers. Among other answers, "life 
after retirement" accounted for 49 PERCENT , with "health, such as 
overwork" for 35 PERCENT . 
 
The survey covered a total of 3,000 persons chosen from among the 
nation's voting population, and answers were obtained from 1,810 
persons (60.3 PERCENT ). 
 
 
TOKYO 00001069  007 OF 008 
 
 
(8) Japanese companies raising hopes for taking part in development 
of Iraqi oil fields with 115 billion barrels of reserves 
 
YOMIURI (Page 9) (Full) 
May 11, 2009 
 
Japanese companies are now off and running to secure interests in 
oil fields in Iraq. Calling the effort a "Rising Sun Project," they 
are geared up to generate momentum for independent development of 
oil fields overseas, by achieving results in Iraq, which has the 
third highest amount of confirmed crude oil reserves in the world, 
where European and U.S. capital have a smaller influence than in 
other resource-rich countries. However, since public security risks 
and a lack of transparency in the nation's energy policy still 
remain, there is a strong feeling that their expectations are 
getting ahead of reality. 
 
Iraq has come up with a policy of opening interests in its oil 
fields to foreign companies since the collapse of the Hussein regime 
in 2003 with the aim of achieving post-war reconstruction. Bidding 
for the development of the Rumaila oil field with confirmed reserves 
of 16.5 billion barrels are now in the planning stages. Successful 
bidders will be decided as early as this summer. 
 
The bidding is expected to be participated in by 44 companies from 
Europe and the U.S. Nippon Oil Corporation (ENEOS), INPEX 
Corporation, Japan Petroleum Exploration (JAPEX), Japan Oil, Gas and 
Metals National Corporation (JOGMEC), and Mitsubishi Corporation 
have placed bids from Japan. 
 
Nippon Oil Corporation, INPEX, and JGC Corporation will compete 
against Italian and Spanish natural resources companies for the 
right to develop oil fields in southern Iraq. The decision will be 
reached as early as May. 
 
Iraqi oil fields are attracting Japanese companies for their 
reserves - 115 billion barrels, the world's third largest after 
Saudi Arabia and Iran. In addition, only 15 oil fields out of 73 
discovered oil fields have been fully developed due to sanctions 
imposed by the UN after the Gulf War. Iraqi oil fields are 
"undeveloped land," for which Japanese companies can compete with 
European and U.S. primary sellers, depending on their strategies. 
All the more for that reason, Japanese companies are showing 
eagerness with an ENEOS executive saying, "Our talks will not be 
just business negotiations but national interests will be at stake 
in them." A government source is also closely watching the outcome 
of the bidding, noting that it is the first step toward expanding 
the development of overseas oil fields, which Japan has been working 
toward. 
 
Advance into Iraq also means meeting the nation's energy policy 
challenge of diversifying oil-supplying countries. The Middle East 
accounted for 87 PERCENT  of Japan's crude oil imports in 2008. In 
particular, Saudi Arabia and the United Arab Emirates alone 
commanded more than 50 PERCENT . Imports from Iraq only accounted 
for 1 PERCENT . If Japan's advance into Iraq deepens bilateral ties, 
it would lead to Japan securing a new crude oil supplier. 
 
Since the Iraqi government has highly praised Japan's technical 
capability, there could be room for the companies to cut into crude 
oil interests in that nation. Oil Minister Husayn al-Shahristani 
said, "Iraq expects Japanese companies to take part in the 
 
TOKYO 00001069  008 OF 008 
 
 
bidding." 
 
However, once the companies actually advance into Iraq, they would 
have to be prepared for considerable risks. Public security problems 
still remain in Iraq, as can be seen in frequent suicide terrorist 
attacks. The lack of transparency in policy management has yet to be 
solved. 
 
The Iraqi government in April raised ten-fold advance payments to be 
made after bidding, citing declining state finances due to a sharp 
drop in crude oil prices as the reason. Laws that will become the 
premises for contract methods and projects for oilfield development 
have yet to be consolidated. One related source said, "Whether 
successful bidders can actually take part in development projects is 
unclear. 
 
ZUMWALT