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UNCLAS SECTION 01 OF 12 TOKYO 001154 
 
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 05/21/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
Ambassador to Japan: 
4) U.S. ambassador-designate to Japan Roos has few ties to Japan 
(Sankei) 
5) With appointment of John Roos to be ambassador, President Obama 
wants to set up a direct personal channel to Japan  (Yomiuri) 
6) Japanese reaction to Roos appointment one of complete surprise 
(Yomiuri) 
7) Roos fits pattern of some previous ambassadors to Japan in the 
postwar period  (Nikkei) 
 
Security affairs: 
8) Democratic Party of Japan Secretary General Okada in speech on 
U.S. nuclear umbrella urges government to ask U.S. never to use 
nuclear first-strike capability  (Asahi) 
9) Japanese Communist Party Chairman Shii, meeting Prime Minister 
Aso, presses Japan to take lead in international negotiations to 
abolish all nuclear weapons  (Tokyo Shimbun) 
 
Diet agenda: 
10) Liberal Democratic Party to put every effort into passing 
budget-related bills by the end of the month  (Yomiuri) 
11) Diet most likely to be extended 50 days, with Lower House 
election possible in August  (Mainichi) 
12) Opposition camp comes out strongly against extending the Diet 
(Mainichi) 
13) Hatoyama takes lead of DPJ by setting up shadow cabinet and 
setting agenda for Diet confrontation, but skirts delicate issue of 
security policy  (Nikkei) 
14) Okada launches own group in the DPJ of about 60 members, 
including Seiji Maehara  (Sankei) 
 
Economic affairs: 
15) May report of the economy revised upward for the first time in 
three years  (Nikkei) 
16) Finance Minister Yosano withdraws government plan to reach 
surplus by fiscal 11  (Tokyo Shimbun) 
 
17) New plan would have advanced economies cut greenhouse emissions 
by 40 PERCENT  by 2020  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Yomiuri & Tokyo: 
New flu infections confirmed in Tokyo, Kawasaki 
 
Mainichi: 
Suicide rate among U.S. soldiers doubles from before Iraq war 
 
Nikkei: 
Sony to halve number of parts suppliers to cut procurement costs by 
500 billion yen 
 
Sankei: 
GDP drops record 15.2 percent in January-March period 
 
 
TOKYO 00001154  002 OF 012 
 
 
Akahata: 
JCP Chairman Shii expresses resolve in speech to win general 
election, Tokyo assembly election 
 
2) EDITORIALS 
 
Asahi: 
(1) GDP at record low: Links of deflation and employment feared 
(2) Japan Post's sloppy management exposed in case of abuse of 
discount postal service 
 
Mainichi: 
(1) Worst GDP: Take measures to boost family budgets 
(2) Arrest of Kanji testing body executives shows sloppy monitoring 
of Education Ministry 
 
Yomiuri: 
(1) Implementing additional economic measures urged to overcome 
economy at postwar low 
(2) Lay judges launched today, with people's awareness of system 
remaining low 
 
Nikkei: 
(1) Effective measures reflecting economic moves needed for sagging 
Japanese economy 
(2) Stop disgraceful behavior toward Suu Kyi 
 
Sankei: 
(1) Hammer out strategy to put economy on sustainable recovery 
track 
(2) Japan Post must reform itself 
 
Tokyo Shimbun: 
(1) Launch of lay judge system marks shift of key role in 
administration of justice from government to citizens 
(2) Worst record of GDP: Address policy tasks pending for many 
years 
 
Akahata: 
(1) Jan-March GDP: Reform capitalism without rules 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 20 
 
NIKKEI (Page 2) (Full) 
May 21, 2009 
 
7:26 Met deputy chief cabinet secretaries Matsumoto and Asano at the 
Kantei. Asano stayed on. 
09:00 Attended an Upper House Budget Committee meeting. 
12:02 Met Consumer Affairs Minister Noda and Chief Cabinet Secretary 
Kawamura at the Kantei. 
13:00 Attended the Upper House Budget Committee meeting. 
17:00 Met Kawamura and Upper House Budget Committee principal 
director Iwanaga. Afterward, met JCP Chairman Shii and Head of 
Secretariat Ichida, in the presence of Kawamura. 
17:47 Met Prime Minister Bouasone of Laos at the Kantei. 
18:39 Met Minister Mentor Lee Kuan Yew of Singapore. 
19:31 Met Kawamura. 
19:50 Dined at a Hotel Okura restaurant with news organizations' 
senior writers and others. 
 
TOKYO 00001154  003 OF 012 
 
 
22:05 Returned to his official residence. 
 
4) President Obama decides to pick Roos as U.S. ambassador to Japan, 
but ties to Japan are weak 
 
SANKEI (Page 8) (Full) 
May 21, 2009 
 
Takashi Arimoto, Washington 
 
U.S. President Barack Obama as of May 19 decided to appoint 
California lawyer John Roos, 54, as the next ambassador to Japan. 
This will be announced shortly. Roos headed the joint fund raising 
committee for Obama in California in last year's presidential 
election and had been an Obama supporter from an early stage. 
 
Compared to Harvard University Professor Joseph Nye and former 
transportation secretary Norman Mineta, who had earlier been tipped 
for the post, Roos has no close links with Japan. His appointment as 
ambassador can be said to be a "reward" for his contributions to the 
campaign. 
 
Recent ambassadors to Japan have consisted of the so-called 
"heavyweights," such as former vice president Walter Mondale and 
former Senate majority leader Howard Baker. The "selling point" of 
Roos, who is not a politician, is his close ties to the President, 
like his predecessor Thomas Schieffer. 
 
Roos practiced law after graduating from Stanford University Law 
School. He first worked for a leading law firm in Los Angeles. As he 
told a Stanford law journal, he moved to Silicon Valley in 1985 in 
anticipation of the growth of information-technology companies and 
became involved in mergers and acquisitions of IT businesses. 
Regarding his political activities, he helped Democratic candidate 
Walter Mondale with his campaign for the presidency in 1984. His 
relationship with Obama deepened from the time he participated in a 
dinner party held in 2005. A few days before Obama announced his 
candidacy in February 2007, he held a fundraising party at his 
house. 
 
Roos has been described as "one of the earliest and biggest fund 
raisers" in the presidential campaign" (New York Times). He is said 
to have been instrumental in raising enormous campaign funds through 
the Internet and other means. 
 
5) U.S. envoy to Japan: Roos awarded for contributions to election 
campaign; Expected to play role of channel to the U.S. President 
 
YOMIURI (Page 2) (Full) 
May 21, 2009 
 
Etsunari Kurose, Washington 
 
The U.S. Obama administration's designation on May 19 of John Roos, 
a 54-year-old lawyer from Silicon Valley in California, as the next 
ambassador to Japan is viewed as "a merit award" for the important 
role he had played to raise funds for President Obama in the 
election campaign, according to a source close to Japan-U.S. 
relations. Roos is certainly to be a direct channel for Japan to the 
White House, like former Ambassador Schieffer, who is a close friend 
of former President Bush. 
 
 
TOKYO 00001154  004 OF 012 
 
 
Roos graduated from Stanford University's law school and he is 
currently chief executive officer of a law firm in Silicon Valley 
that handles the merger and acquisition of information technology 
businesses as its main area of business activities. Roos has had 
little to do with Japan. But some say Roos is fit for the role of 
strengthening economic ties with Japan through such activities as 
negotiating over the U.S. government's annual report of requests to 
the Japanese government for regulatory reforms. 
 
The name of former Assistant Secretary of Defense Joseph Nye, who 
was recommended by Secretary of State Clinton and the Department of 
State, was eventually dropped. This can be taken as indicating that 
the president and the White House aimed to take the initiative in 
foreign policy toward Japan, "the most important ally in Asia." 
 
6) "Unexpected choice" for Japan 
 
YOMIURI (Page 2) (Abridged) 
May 21, 2009 
 
California-based lawyer John Roos is now certain to be appointed 
ambassador to Japan. This choice, however, was unexpected to the 
Japanese government, according to a government source. 
 
It was not until quite recently that the U.S. government informed 
the Japanese government of the decision to name Roos. A high-ranking 
official of the Japanese government, who had learned of the Roos 
appointment from yesterday's newspapers, looked displeased, saying, 
"I haven't heard anything about it." Roos is little known. Even the 
Foreign Ministry does not know much about him, according to a senior 
official of the Foreign Ministry. There are pending issues between 
Japan and the United States, such as realigning U.S. forces in 
Japan. The Defense Ministry, according to one of its senior 
officials, is also beginning to gather information in its own way 
about Roos' views concerning these issues. 
 
For the Japanese government, however, the important factor is how 
close the ambassador to Japan is to the president, rather than how 
well the ambassador is known. Roos is reportedly close to President 
Obama, so some are expecting Roos to act as go-between with Obama. 
 
7) Scholars knowledgeable about Japan, diplomats, political 
heavyweights, friends: ambassadors reflect Japan-U.S. relationship 
 
NIKKEI (Page 2) (Full) 
May 21, 2009 
 
From scholars knowledgeable about Japan, to diplomats, political 
heavyweights, and close friends of the president - U.S. ambassadors 
to Japan have reflected the state of and changes in the Japan-U.S. 
relationship at a particular time. Looking at the criteria for 
appointing ambassador to Japan, one can catch a glimpse of the 
United States' motive in selecting John Roos. 
 
Most Japanese government officials perceive Roos's appointment as 
unexpected. "He probably does not know anybody in the Japanese 
government." However, others place hopes on him to serve as a 
powerful go-between for the Japan-U.S. relationship since "President 
Obama has picked somebody very close to him," (according to a senior 
Ministry of Foreign Affairs official). 
 
Ambassadors to Japan in the 1960s were mostly scholars and diplomats 
 
TOKYO 00001154  005 OF 012 
 
 
who were knowledgeable about Japan, such as Harvard University 
Professor Edwin Reischauer. Ambassadors well-versed in the domestic 
circumstances in Japan and the practice of diplomacy were needed to 
stabilize the bilateral relationship ruffled by the revision of the 
Japan-U.S. Security Treaty in 1960 and other events at that time. 
 
With the intensification of Japan-U.S. trade friction in the 1970s, 
the appointment of political heavyweights became prominent. Michael 
Mansfield, who became ambassador in 1977, and Walter Mondale, Thomas 
Foley, and Howard Baker who served since the 1990s, were former vice 
presidents or U.S. Congressional leaders. It is believed that the 
appointment of heavyweights who exercised influence on the Congress 
was meant to prevent the trade frictions from undermining the very 
foundation of bilateral relations. 
 
This trend changed under the second Bush administration. President 
George Bush appointed his longtime close friend Thomas Schieffer. 
Although Schieffer was not a political heavyweight, he is said to be 
"one of the ambassadors who was closest to the President," 
(according to a Republican Party source). His influence is thought 
to have been crucial in realizing the meeting between Mrs Sakie 
Yokota and other family members of the abduction victims with 
President Bush in 2006. 
 
Ambassador-designate Roos is similar to Schieffer in that he was a 
major supporter of President Obama in the last election. It is 
possible that his personal relationship with Obama may be very 
helpful in resolving pending issues between Japan and the U.S. 
International University of Japan Professor Tomohito Shinoda 
(specializing in Japan-U.S. relations) gives the following comments: 
"Since the Obama administration is setting out new foreign policies, 
an individual who has no preconceptions or past experience may be 
better for Japan-U.S. relations." 
 
Previous U.S. ambassadors to Japan 
 
Name 
(date of appointment; former job) Type 
Edwin Reischauer 
(March 1961; born in Tokyo; scholar and Japan expert) A 
Alexis Johnson 
(September 1966; deputy under secretary of state) B 
Armin Meyer 
(May 1969; ambassador to Iran) B 
Robert Ingersoll 
(February 1972; director of Chicago Chamber of Commerce and 
Industry) D 
James Hodgson 
(June 1974; secretary of labor D 
Michael Mansfield 
(April 1977; Democratic Senate floor leader) C 
Michael Armacost 
(April 1989; under secretary of state) B 
Walter Mondale 
(August 1993; vice president) C 
Thomas Foley 
(November 1997; House of Representatives speaker) C 
Howard Baker 
(May 2001; Republican Senate floor leader) C 
Thomas Schieffer 
(January 2005; joint owner of baseball team with president) E 
 
 
TOKYO 00001154  006 OF 012 
 
 
A = persons knowledgeable about Japan 
B = diplomats 
C = political heavyweights 
D = businessmen 
E = close friends 
 
8) Japan should call for U.S. to drop preemptive nuke attack option 
 
ASAHI (Page 4) (Full) 
May 21, 2009 
 
Katsuya Okada, secretary general of the leading opposition 
Democratic Party of Japan (Minshuto), met the press yesterday at the 
Japan National Press Club. He said there: "The government has been 
asking the United States not to remove the nuclear umbrella. It's 
quite inconsistent (of the government) to say something about 
nuclear elimination. The government should at least tell the United 
States not to use nuclear weapons first." 
 
Okada also said: "In that case, the (U.S.) nuclear umbrella is half 
off. But if Japan should come under a nuclear attack, then the 
United States is not prohibited even from using nuclear weapons. I 
don't think it will become a serious obstacle to Japan's national 
security." Okada is enthusiastic about nonnuclear policy as he made 
a proposal in August last year to make Northeast Asia a nuclear-free 
zone. 
 
9) Japan should take lead in int'l talks for nuke elimination: Shii 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 21, 2009 
 
Kazuo Shii, chair of the Japanese Communist Party, met with Prime 
Minister Aso yesterday evening in the Diet and told Aso that there 
had been a reply from the U.S. Department of State to a letter Shii 
sent to U.S. President Obama to emphasize the elimination of nuclear 
weapons. Shii also told Aso that the Japanese government should take 
a proactive role to lead the international community in the 
direction of reducing nuclear weapons. 
 
"I hope Japan, as the only atomic-bombed country, will take the 
initiative to start international negotiations for nuclear 
elimination," Shii said to Aso. Shii added: "A country that has 
nuclear weapons made an appeal (on nuclear elimination. That's the 
biggest meaning. I'm surprised, I'm paying attention." With this, 
Shii expressed appreciation for Obama's recent speech he delivered 
in Prague to promote elimination of all nuclear weapons. Aso took 
this view: "If we don't see progress on the nuclear issue of North 
Korea, it would be quite hard to go ahead with nuclear weapons 
elimination." 
 
10) LDP to make utmost efforts to get extra budget-related bills 
through Lower House before end of month; Revision talks to enter 
critical stage next week 
 
YOMIURI (Page 4) (Excerpts) 
May 21, 2009 
 
The Liberal Democratic Party (LDP) and the Democratic Party of Japan 
(DPJ) began yesterday revision talks on bills related to the fiscal 
2009 supplementary budget, which are now under deliberation in the 
House of Representatives. To avoid protracted deliberations in the 
 
TOKYO 00001154  007 OF 012 
 
 
House of Councillors, the ruling bloc plans to make every effort to 
reach a revision agreement so that the bills can clear the Lower 
House before the end of the month. The DPJ's stance is that the fate 
of the bills depends on the results of the revision talks. The talks 
are likely to enter a crucial phase next week. 
 
Under talks are bills to amend three laws: the Development Bank of 
Japan law, the bank share holding limitation law, and the Shoko 
Chukin Bank law. A meeting was held yesterday in the Diet building 
between the LDP members who submitted the bills and the DPJ's Lower 
House Financial Affairs Committee directors to discuss how to 
proceed with the talks on the Development Bank and the bank share 
bills. 
 
Separate from this, LDP Diet Affairs Committee deputy principal 
director Yoshitaka Murata assembled yesterday the directors of 
relevant committees and instructed them to work hard to get the 
bills passed through the Lower House this week, pointing out the 
need to secure a high degree of freedom in dissolving the Lower 
House. 
 
But the directors intend to carry out the talks until next week, 
with one saying, "If we rush to a vote, the talks with the DPJ might 
collapse." 
 
Coordination is underway between the government and the ruling camp 
to extend the Diet session for 45 days through July 18. This plan 
incorporates the constitutional 60-day rule which allows the Lower 
House to readopt the tax reform-related bills that did not clear the 
Upper House due to opposition by the opposition parties. 
 
The ruling bloc is considering forgoing the enactment of the 
capitalism anti-crisis measures bill, which is not urgent and is 
being opposed by the DPJ. The main opposition has already indicated 
that it would approve the bill to amend the Japan Society for the 
Promotion of Science law. If the DPJ approves the three bills, 
including the Development Bank bill, they would be enacted by 
extending the Diet session for 45 days. For this reason, the ruling 
parties attach importance to reaching an agreement through the 
revision talks. 
 
11) Diet session likely be extend for about 50 days; Government, 
ruling coalition eyes Lower House election in August or later 
 
MAINICHI (Page 1) (Full) 
May 21, 2009 
 
The government and ruling parties yesterday began to consider an 
extension of the current Diet session for about 50 days into late 
July in order to enact the fiscal 2009 supplementary budget and 
related bills. In this connection, Prime Minister Taro Aso and New 
Komeito leader Akihiro Ota will hold talks late this month to make a 
decision on the matter. If the ongoing Diet session is extended, the 
possibility of the next House of Representatives election and the 
July 12 Tokyo Metropolitan Assembly election being on  the same day 
will disappear, and the general election will likely be held in 
August or later. 
 
Even if the opposition camp rejects a vote on the extra budget bill 
in the House of Councillors, the extra budget will automatically 
receive Diet approval. Of the key bills, it will be possible for a 
bill amending the National Pension Law to be put to an overriding 
 
TOKYO 00001154  008 OF 012 
 
 
vote on May 16 in the Lower House; the anti-piracy bill, on May 22; 
and a bill revising the special taxation measures law on July 22. 
 
It is predicted, however, that the Lower House will take a vote next 
week on some of the five bills related to the extra budget, 
including a bill amending the Development Bank of Japan Law, which 
is aimed to strengthen support for corporations facing capital 
shortfalls. Therefore, it will be possible for the Lower House to 
take an override vote on them in late July. 
 
For this reason, the dominant view in the ruling coalition is that 
it is necessary to extend the session into late July. Some Liberal 
Democratic Party (LDP) members have called for extending the session 
until early September. 
 
12) Opposition parties oppose extension of Diet session 
 
MAINICHI (Page 2) (Excerpts) 
May 21, 2009 
 
The government and ruling parties have decided to substantially 
extend the current session of the Diet. The main opposition 
Democratic Party of Japan (DPJ), however, yesterday confirmed with 
the Social Democratic Party (SDP) and the People's New Party (PNP) 
that they will oppose the ruling coalition's decision. The DPJ now 
appears to be taking a strategy of bringing about the dissolution of 
the House of Representatives as early as possible, by agreeing to an 
early vote on the fiscal 2009 supplementary budget. With the 
inauguration of the new DPJ leadership led by President Yukio 
Hatoyama, the public support rates for the largest opposition party 
have risen. This means that the DPJ now has momentum leading into 
the next Lower House election. 
 
The Diet affairs committee chairmen of the DPJ, DPJ and PNP met 
yesterday in the Diet building. They agreed on a policy of not 
unnecessarily dragging out deliberations at the Diet. DPJ Policy 
Research Committee Chairman Masayuki Naoshima told reporters 
yesterday in a strong tone: "It is clear that the ruling camp 
predicts that they will be able to extend the session if the DPJ 
drags out deliberations." He added: "Since there are not many bills 
that need deliberations during the current session after (bills that 
are now being deliberated on) are settled, the Lower House should be 
dissolved as early as possible for a snap election." 
 
The DPJ submitted a no-confidence motion against the Aso cabinet in 
late February, when the approval ratings for the Aso administration 
were about 10 PERCENT . At that time, it took a strategy of luring 
an early dissolution of the Lower House by fanning the flames of 
removing Aso from office. 
 
13) Hatoyama-led DPJ to formulate manifesto featuring pension reform 
to differentiate itself from LDP 
 
NIKKEI (Page 2) (Excerpts) 
May 21, 2009 
 
The shadow cabinet of the major opposition Democratic Party of Japan 
(DPJ) met yesterday for the first time under President Yukio 
Hatoyama and began formulating the party's manifesto (campaign 
pledges) for the next House of Representatives election. To make a 
clear distinction with the Liberal Democratic Party (LDP), Hatoyama 
intends to put at the center a pension-reform plan like the one that 
 
TOKYO 00001154  009 OF 012 
 
 
guided the DPJ to an overwhelming victory in the 2007 House of 
Councillors election. The party also plans to review an explanation 
of revenue sources to which Secretary General Katsuya Okada attaches 
importance. But views in the party are split over Hatoyama's stock 
argument of constitutional revision and other policy issues. To what 
extent Hatoyama can display his policy imprint remains to be seen. 
 
Policy Research Committee Chair Masayuki Naoshima me with Hatoyama 
and Okada at party headquarters on May 19 in which Naoshima proposed 
the establishment of an internal body to openly discuss the party's 
manifesto for the next election. The shadow cabinet meeting 
yesterday was also attended by former president Ichiro Ozawa, who is 
currently deputy president for election strategy. The meeting 
approved a policy course to set up a Naoshima-led manifesto 
preparatory committee as early as next week. 
 
The committee's discussion will center on reform of the pension 
system. The DPJ aims at integrating occupation-specific pension 
programs into a single pension system that combines the tax-funded 
basic pension scheme and the income-proportional pension program. 
But details have yet to be nailed down, such as when to shift to the 
new system and when to raise the consumption tax to cover the cost. 
 
During his presidential campaigning, Hatoyama said, "If it is 
shifted to the new system in 20-24 years, there is no need to decide 
to hike the consumption tax (now)." Okada, on the other hand, 
insisted, "Discussion needs to start now." Naoshima at a press 
conference yesterday express his plan to aim at sharing basic 
thinking. 
 
How to secure revenue sources is another sticking point. Okada has 
been calling for the clarification of funding. The DPJ estimates the 
necessary cost for main policy steps, such as an income-subsidy 
system for farmers, at about 20 trillion yen. The party plans to 
cover the cost by eliminating wasteful spending and using "buried 
treasures," but such must be nailed down further. Some in the party 
share Okada's assertion and tax revenues are likely to decline due 
to the deteriorating economy. For this reason, the preparatory 
committee plans to review funding. 
 
14) Formation of Okada group with membership of 60 
 
SANKEI (Page 5) (Full) 
May 21, 2009 
 
Democratic Party of Japan (DPJ) lawmakers, who supported DPJ 
Secretary General Katsuya Okada in Saturday's presidential election, 
held a party last night in Tokyo to establish a group supporting 
Okada. Okada lost to President Yukio Hatoyama in the leadership 
race. The group decided to hold meetings in the future as well. The 
formation of the "Okada group" has resulted in a big change in the 
power matrix of the DPJ triggered by the presidential election. 
 
The party, held at the New Otani Hotel in Kioicho, Tokyo, was 
suddenly had to be changed to a stand-up dinner party because as 
many as 60 DPJ members took part in it. Besides Okada, the 
participants included Vice President Seiji Maehara, Deputy Secretary 
General Yoshihiko Noda, Vice President Tatsuo Kawabata and their top 
group members, and many from the group led by Deputy President Naoto 
Kan. 
 
According to a participant, the group decided that its members would 
 
TOKYO 00001154  010 OF 012 
 
 
carry out political activities to support Okada. Many participants, 
including Maehara, called for Okada to become the next party 
president. A mid-level lawmaker said: "We will support Mr. Okada and 
keep an eye on how the political situation will turn out." 
 
"Since some groups have come under the leadership of Okada, the 
group is like the Okada Holdings Group," said another mid-level 
member. There is already a proposal floating around to call the 
group "Kyugo (95) no kai" after the number of votes he obtained in 
the election. 
 
Prior to this event, Okada held a press conference at the Japan 
National Press Club. In it, he expressed his view that DPJ Deputy 
President Ichiro Ozawa, whose state-paid secretary has been indicted 
for accepting alleged illegal donations from Nishimatsu Construction 
Co., should fully fulfill his accountability for the donation 
scandal. He stated: "I have said that he should explain in an 
understandable way how the money was used. If the public still has a 
question, he should give a full account." 
 
15) Government to make first upward revision of economic assessment 
in May report in three years to "Rate of deterioration has eased" 
 
NIKKEI (Page 1) (Full) 
May 21, 2009 
 
The Cabinet Office will revise its overall assessment of the economy 
upward for the first time in three years and three months in its May 
report due out on May 25. The April report noted: "The economy is 
worsening rapidly and is in a severe situation." In the latest 
report, the expression is changed to "the rate of deterioration has 
eased." Although the government will lower its assessment of 
employment conditions, reflecting their continuing deterioration, it 
will upgrade its views about exports and production, on which signs 
of bottoming out are appearing. 
 
Economic and Fiscal Policy Minister Kaoru Yosano will submit the 
monthly report to a meeting of economy-related cabinet ministers on 
the 25th. Given the outbreak of the global financial crisis last 
fall and subsequent downturn in the Japanese economy, the government 
downgraded its overall economic assessment every month from October 
of last year through February. In May and April, this view was kept 
unchanged. 
 
The first upward revision since February 2006 reflects signs of a 
halt in the drops in export and production volumes. Such volumes 
started declining last fall, but the index of exports in March rose 
on a seasonally adjusted basis for the first time in seven months. 
The index of industrial production in March also showed the first 
monthly increase in six months. 
 
The April report said, "Exports are declining significantly," and 
"industrial production is declining very significantly." But the May 
report will upgrade these two assessments to "the drops are coming 
to an end." 
 
On employment conditions, the April report said, "The situation is 
beginning to worsen rapidly," but the government will downgrade this 
view to "the situation is worsening rapidly," focusing on the 
jobless rate climbing to 4.8 percent in March. Regarding future 
prospects, the latest report will show the government's intention to 
continue to carefully watch negative factors for the economy, such 
 
TOKYO 00001154  011 OF 012 
 
 
as large-scale layoffs. 
 
A report released yesterday by the Cabinet Office showed a record 
postwar shrinkage of the gross domestic product (GDP) in the 
January-March period. But the view is gradually gaining ground that 
the Japanese economy hit bottom in the January-March quarter. 
 
16) Finance Minister Yosano gives up on goal of bringing primary 
balance into black by fiscal 2011 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 21, 2009 
 
Finance Minister Kaoru Yosano at a meeting of the Upper House Budget 
Committee on the afternoon of May 20 announced that he had given up 
on the government's fiscal reconstruction goal of bringing the 
primary balance into the black by fiscal 2011. He said, "The goal 
cannot be attained any longer." 
 
This goal was incorporated in the basic policy guidelines on 
economic and fiscal management and structural reforms for the fiscal 
2006 national budget, adopted at a meeting of the Koizumi cabinet. 
 
Yosano pointed out the worsened fiscal conditions, saying, 
"Government bonds worth 10.8 trillion yen will be issued to finance 
the fiscal 2009 extra budget, which will push up obligations of the 
central and local governments as of the end of fiscal 2009 to 816 
trillion yen or a 168 PERCENT  of GDP." He acknowledged that it is 
impossible to secure an outlook for bringing the primary balance 
into the black, saying, "Chances are the goal cannot be achieved by 
fiscal 2011. On the contrary, we could be seven years, eight years 
or even 10 years behind schedule. The situation is very serious." 
 
Yosano then said, "We must set a goal somewhere along the line. We 
are now looking into timeframes for halving deficits in the primary 
balance and for evening out the ratio of the outstanding government 
bonds to GDP." He thus indicated a plan to set a new goal in the 
basic policy guidelines for the fiscal 2009 budget to be compiled 
before the end of next month. 
 
17) Greenhouse gases: 40 PERCENT  cut by industrialized countries by 
2020; negotiation paper for new framework includes large target 
figures 
 
TOKYO SHIMBUN (Page 3) (Full) 
May 21, 2009 
 
In an effort to create an international framework to combat climate 
change, which will replace the Kyoto Protocol, the chairman of the 
special taskforce for the UN Framework Convention on Climate Change 
has compiled a negotiation paper, which will serve as a basis for 
future talks. The document was revealed on May 20. 
 
The paper will become a draft for a new accord, which will stipulate 
approaches to be made by all signatory nations, including the U.S., 
which opted out of the Kyoto Protocol, and developing countries, 
such as China, which are at present not obligated to cut greenhouse 
gas emissions. 
 
The paper includes as a vision to be shared by various countries, 
mid-term and long-term CO2 reduction goals to be attained by 
industrialized countries as a whole. Though it does not give any 
 
TOKYO 00001154  012 OF 012 
 
 
specific figures, it incorporates large figures as reduction 
targets, such as "25 PERCENT -40 PERCENT ," "30 PERCENT " and "at 
least 40 PERCENT ." Those figures are based on the points made by 
the Intergovernmental Panel on Climate Change (IPCC). The paper also 
cites major long-term reduction targets to be achieved by 2050, such 
as "75 PERCENT -85 PERCENT " and "more than 95 PERCENT ." Commenting 
on the inclusion of substantial reduction proposals, a government 
source said, "The figures are harsh for an international agreement." 
The inclusion of such figures will thus likely affect domestic 
discussions on the setting of a mid-term goal. 
 
The paper also includes a reduction to be achieved by developing 
countries as a whole. As a mid-term goal, it incorporates "a 
substantial amount of" or "15 PERCENT -30 PERCENT " cuts by 2020 
from the amount of carbon dioxide emitted when no measures are 
taken, and a 20 PERCENT  cut in comparison with the 2000 level by 
¶2050. 
 
The paper also mentions such targets as to what level greenhouse gas 
concentrations in the atmosphere and temperature rise should be held 
down. Chances are that Japan might be urged to set such targets. 
 
ZUMWALT