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UNCLAS SECTION 01 OF 15 TOKYO 001160 
 
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 05/21/09 
 
INDEX: 
 
INDEX: 
 
(1) Appointment of Roos as ambassador to Japan might reflect Obama's 
stance of prioritizing Japan (Asahi) 
 
(2) With Obama aides taking lead, Roos nominated as new U.S. 
ambassador to Japan (Nikkei) 
 
(3) Displeasure in Japanese government evident about the appointment 
of the new U.S. ambassador to Japan: "We haven't heard a thing about 
it!" (Yomiuri) 
 
(4) "Asa Zuba!": "Upset" in appointment of U.S. ambassador to Japan; 
Motive and connection with fund-raising capability (TBS) 
 
(5) Forcible port call by U.S. minesweepers; arrogant consul general 
(Sekai) 
 
(6) Interview with U.S. special envoy Bosworth: Academic brains 
needed for North Korea issue (Yomiuri) 
 
(7) Chairman Shii at meeting with Prime Minister Aso: Japanese 
government should take initiative in international talks for 
abolition of nuclear arms (Akahata) 
 
(8) GDP dips 15.2 percent in January-March quarter: Economists 
project positive growth in April-June quarter (Nikkei) 
 
(9) Plan to move JAXA to Cabinet Office scrapped due to resistance 
from MEXT and education policy clique in the Diet (Sankei) 
 
(10) Poll on Aso cabinet, political parties, DPJ's leadership change 
(Tokyo Shimbun) 
 
ARTICLES: 
 
(1) Appointment of Roos as ambassador to Japan might reflect Obama's 
stance of prioritizing Japan 
 
ASAHI (Page 3) (Slightly abridged) 
May 21, 2009 
 
By Yoichi Kato, American General Bureau chief 
 
The U.S. administration of President Barack Obama unexpectedly 
picked John Roos as the next U.S. ambassador to Japan over Harvard 
University Professor Joseph Nye, a leading Democrat who had been 
viewed as the most likely candidate. Roos is a lawyer with high-tech 
companies in Silicon Valley as his clients. Many U.S. government 
officials and Japan experts in Washington explain the selection of 
Roos demonstrates President Obama's stance of placing emphasis on 
Japan in his own style. 
 
Priority given to relationship of trust over experience 
 
A White House official responsible for personnel appointments 
confidentially said on May 19: "(Roos) is very close to the 
president. This nomination is unique and must be welcomed." 
 
The selection of a suitable person for the ambassadorship in Japan 
 
TOKYO 00001160  002 OF 015 
 
 
was started prior to the inauguration of the Obama administration in 
January, in line with work to form Asian teams in the State 
Department and the Defense Department. In an early stage, the 
government decided to nominate Nye, focusing on his profound 
knowledge of Japan-U.S. relations and overall foreign affairs. Even 
after this, though, it continued to look for other candidates. 
 
The government first considered choosing someone from among 
prominent politicians. Politician-turned ambassadors include former 
vice president Walter Mondale, who had the experience of being named 
as Democratic candidate for the presidency, and former House speaker 
Thomas Foley. This time, the names of former Senator Hagel 
(Republican) and former transport secretary Mineta were cited, but 
these options fizzled out. 
 
In the final stage, the names of political supporters or friends of 
Obama floated, as previous president George Bush picked as 
ambassador to Japan Thomas Schieffer, who is on close terms with 
Bush. 
 
Regarding the favorable effect of selection of someone close to the 
president, former National Security Council senior Asia director 
Michael Green said: "The selection would be a big plus for Japan, 
because he can directly talk with the president over the phone at 
crucial moments." 
 
The nomination of Roos should bring about this favorable effect. 
Officials responsible for Asian affairs recommended Nye, but Obama 
chose Roos, also taking into consideration advice by his aides. 
 
Former Boeing Japan President Robert Orr, a supporter of Obama, made 
this analysis: "The president might have had a desire to demonstrate 
his own policy identity in selecting the ambassadorship." 
 
Some say that it is not correct to think that Roos was selected by 
rejecting Nye. But there is the view that the Nye nomination became 
entangled in a confrontation between the White House and the State 
Department over personnel appointments for posts responsible for 
foreign affairs. Their analysis is that Nye was shunned by those who 
are close to Obama and affiliated with Secretary Hillary Clinton. 
 
Expectations and disappointments on selection of unfamiliar Roos 
 
U.S. government officials are nervous about the possibility that the 
selection of Roos could be taken in Japan as the U.S. treating Japan 
lightly. 
 
When considering Nye's profound knowledge of and long experience in 
Japan-U.S. relations and diplomatic affairs, as well as the 
political weight of former ambassadors Mondale and Foley under the 
Democratic administration, it might be natural for Roos to be seen 
as a minor person. Even U.S. experts on Japan are overheard 
expressing a sense of disappointment at the nomination of Roos. 
 
But people involved in the selection process all say that the 
selection was not made with an irresponsible attitude. A person 
concerned emphasized: "The White House understands it is very 
important to find the most suitable person for Japan, so a lot of 
time and efforts were poured into the selection process. The 
selection of Roos must be gratifying for Japan." 
 
Orr commented: "It is not rare for a president to appoint as 
 
TOKYO 00001160  003 OF 015 
 
 
ambassador a person who contributed to raising election funds and is 
close to him. President Franklin Roosevelt chose Joseph Kennedy, 
whose son became president afterward, as ambassador to Britain. 
 
The White House places high expectations on Roos' business 
experience, counting on his capability to deal flexibly with 
changes. He has assisted high-tech, growth-oriented companies as a 
corporate lawyer. Such a natural aptitude is particularly important 
when uncertainty is looming over the future of Japanese politics. 
 
Some people explain that Roos' lack of experience and knowledge on 
Japan and Japan-U.S. relations would be sufficiently covered by the 
excellent embassy staff in Tokyo and appointment of a special aide 
for him, if necessary. 
 
The focus of attention will be on how the U.S. government will 
introduce Roos, who is quite a stranger to Japanese and persons 
connected to Japan-U.S. relations. 
 
(2) With Obama aides taking lead, Roos nominated as new U.S. 
ambassador to Japan 
 
NIKKEI (Page 3) (Abridged slightly) 
May 21, 2009 
 
Itaru Oishi, Washington 
 
The U.S. Obama administration's efforts to determine the new 
ambassador to Japan experienced complications at the last phase, but 
it has now informally decided to give the post to lawyer John Roos, 
54, who is little known in Japan. 
 
A review of the administration's ambassadorial appointments, 
including those to Iraq and China, offers a glimpse into a conflict 
between the White House group close to President Obama and the State 
Department led by Secretary of State Hillary Clinton. 
 
After ensuring his victory last November to become new U.S. 
president, Obama met with Chuck Hagel, who had just retired from 
politics. Although he was a Republican, Hagel was a mentor to Obama, 
who had little experience in foreign affairs. 
 
There, Obama reportedly asked Hagel, "Are you interested in Beijing, 
Tokyo, or London?" Hagel replied that he had no intention of 
accepting such posts. 
 
Obama had received a report from the U.S. Embassy in Tokyo that the 
Japanese government was expecting the appointment of someone with 
high international recognition comparable to Mike Mansfield and 
Walter Mondale. Riding on the coattails of Obama's high popularity, 
the Democratic Party achieved an overwhelming victory. No political 
heavyweights lost their seats and therefore did not look for 
ambassadorial posts. 
 
The Obama transition team checked whether there was any incumbent 
lawmaker willing to become an ambassador. The team had an eye on 
Japanese-American Senator Daniel Inouye and others as potential 
candidates, but Inouye did not show any interest, for he was 
supposed to hold the rotating chairmanship of the powerful Senate 
Appropriations Committee. 
 
Running out of potential candidates, a State Department official in 
 
TOKYO 00001160  004 OF 015 
 
 
charge of Asia policy tuned his eyes to Harvard University Professor 
Joseph Nye. In January, Clinton aides presented Nye with an 
"ambassadorial post in Asia" and began doing the spadework for his 
appointment by Obama. This sparked the observation that Nye was the 
leading candidate. 
 
Obama received many other recommendations. In late February, the 
State Department felt that it was at a disadvantage. The reason was 
because the individual the State Department regarded as most fit to 
become ambassador to Iraq was dropped and the post went instead to 
Assistant Secretary of State Christopher Hill, who was well received 
by Vice President Joe Biden and other Democratic executives. 
 
Around that time, such top presidential aides as Senior Advisor 
David Axelrod and Chief of Staff Rahm Emanuel were desperately 
trying to cut into Republicans with the aim of boosting (Democrats') 
power in the Senate. They used cabinet and ambassadorial posts as 
bait for trading for congressional seats. Their approach expanded 
the gulf with the Clinton-led State Department over personnel 
appointments. 
 
On May 16, President Obama announced his pick for ambassador to 
China. The White House and the State Department had locked horns up 
to the last minute. There was a possibility that Republican Utah 
Gov. Jon Huntsman, who has now been nominated envoy to China, would 
become Obama's rival in the 2012 presidential race. Huntsman was 
persuaded by Asian Affairs Director Jeffery Bader of the National 
Security Council, which is under the direct supervision of the 
President. 
 
Nevertheless, Obama aides struggled to find an individual no less 
significant than Nye as candidate for the ambassador to Japan. 
 
Unable to find any former cabinet minister or legislator to become 
the envoy to Japan, the Obama administration came up with the idea 
of appointing an influential Obama supporter. Obama aides who wanted 
justification, protested, "Mr. Nye has met with President Obama just 
once." 
 
Aides' coordination narrowed down the candidates to two individuals: 
Roos and David Andrews, a former legal adviser to the Department of 
State, who has forged a friendship with Obama as a fellow black 
lawyer. Both served as counselors for major corporations. Obama 
eventually chose Roos, who had significantly contributed to his 
victory through fundraising and who is better versed in practical 
business affairs (than Andrews). 
 
Roos, one of the biggest check collectors for Obama 
 
By Ken Moriyasu, International Department 
 
In early 2005, soon after Obama was elected to the Senate, his 
staffers began making contacts with influential Democratic 
supporters. A dinner party held around that time in San Francisco 
brought together some 20 major donors to John Kerry, who had been 
defeated in the 2004 presidential election. John Roos was among the 
¶20. 
 
Two years later, Roos invited some 100 business leaders to his 
Silicon Valley home and raised 300,000 dollars overnight. A U.S. 
newspaper described Roos, Obama's Northern California finance chair, 
as "one of the biggest check collectors for Obama." Looking back at 
 
TOKYO 00001160  005 OF 015 
 
 
those days, Roos said, "Compared to Hillary Clinton, who had strong 
political and brand power, Mr. Obama was like a Silicon Valley 
start-up." 
 
Driven by his desire to work with and advise young entrepreneurs, 
Roos, as a lawyer, decided in 1998 to join Wilson, Sonsini, Goodrich 
& Rosati (WSGR), a small law firm back then. 
 
He has established himself as an expert in corporate financing 
specialized in information technology (IT), home appliances, and 
biotechnology. He has developed the firm's clients, which now 
include not only major corporations, such as Google and Apple, but 
also ventures like YouTube. The WSGR has grown into a major law 
firm. Roos became the law firm's CEO in 2005. Reportedly, the WSGR 
is in contracts with over 50 Japanese companies. 
 
(3) Displeasure in Japanese government evident about the appointment 
of the new U.S. ambassador to Japan: "We haven't heard a thing about 
it!" 
 
YOMIURI ONLINE (Full) 
00:16, May 21, 2009 
 
(U.S. President Barack Obama) has decided to appoint John Roos as 
the new ambassador to Japan. A Japanese government source described 
this as an "unexpected appointment." 
 
The Japanese government has received no notice (about Roos' 
appointment) from the U.S. government. A high-ranking government 
official, who learned of Roos' appointment through newspaper reports 
on May 20, expressed displeasure, saying, "We haven't heard a thing 
about it." Information on Roos is so scarce that even a senior 
Foreign Ministry official said, "We don't know what kind of person 
he is." There are a plethora of outstanding issues between Japan and 
the United States, such as the realignment of U.S. forces in Japan. 
Some have begun making moves to independently collect information on 
Roos' thinking on such issues, according to a senior Defense 
Ministry official. 
 
At the same time, some in the Japanese government are attaching more 
importance to the U.S. ambassador's "close ties" to the President 
rather than to his public name recognition. Roos is reportedly close 
to President Obama, and some pin their hopes on him to serve as a 
mediator between (the Japanese government) and President Obama. 
 
? A possible gap with the ambassador to China ? 
 
Meanwhile, President Obama (on Sunday) named Utah Governor Jon 
Huntsman the new U.S. ambassador to China. Comparing the ambassadors 
to Japan and China, a diplomatic source said, "There seems to be a 
qualitative difference between the two. I felt surprised (by Roos' 
appointment)." His view is shared by many on the Japanese side. 
 
(4) "Asa Zuba!": "Upset" in appointment of U.S. ambassador to Japan; 
Motive and connection with fund-raising capability 
 
TBS Television 
May 21, 2009 
 
The Obama administration has appointed as its ambassador to Japan a 
lawyer named John Roos, a Silicon Valley consultant who is totally 
unknown in Japan. 
 
TOKYO 00001160  006 OF 015 
 
 
 
When program host Mino asked: "How about that?" journalist Nobuhiko 
Shima said: "Probably no one knows him (in Japan). This is an 
'upset' because people were hoping for a heavyweight ambassador." 
 
Why did President Barack Obama appoint someone who is not 
particularly knowledgeable about Japan? According to Shima, Roos is 
one of 20 people who raised enormous amounts of donations in the 
last presidential election and is a close confidante of Obama. 
 
Shima said that "people who distinguish themselves in fund raising 
during presidential elections are often rewarded with ambassadorial 
appointments" in America. 
 
The appointment of President John F. Kennedy's father, Joseph 
Kennedy, as ambassador to the UK by President Franklin Roosevelt 
during the Great Depression was a good example. 
 
In other words, this is a reward for the ability to collect 
donations. 
 
Be that as it may, does this upset - a confidante who did well in 
campaign fund raising being appointed instead of Harvard University 
Professor Joseph Nye, a Democratic heavyweight and Japan expert, who 
was favored by Hillary Clinton and the State Department and regarded 
as the most likely appointee - have anything to do with hard 
feelings from the presidential election? 
 
The ambassadorial appointment also came as a surprise for Japan. 
Since Roos' ability is unknown, Shima said, "I wonder if he will be 
able to convey the Futenma base issue in Okinawa accurately or pass 
on America's messages to Japan properly." 
 
We don't want to think that the hidden motive is to tap his fund 
raising ability to "collect money in Japan"... 
 
(5) Forcible port call by U.S. minesweepers; arrogant consul 
general 
 
SEKAI (Pages 220-201) (Full) 
June 2009 
 
Tsuyoshi Matsumoto, Ryukyu Shimpo reporter 
 
The presence of just one diplomat can hurt the feelings of the 
citizens of his host country (or community) and seriously undermine 
the image of his home country. Amid actions by the U.S. Forces in 
Okinawa which give priority only to military considerations and 
ignore the wishes of the local communities, the behavior of U.S. 
Consul General to Okinawa Kevin Maher is causing bitterness among 
Okinawans. 
 
In the June 2008 issue of this magazine, I stated that this unusual 
consul general was well known for his straight talking and was 
thought to be "like a soldier in uniform." Since then, Maher's 
behavior has worsened. His arrogance, which has aggravated Okinawa's 
antipathy to him, stands out. 
 
On April 3, the U.S. minesweepers "Patriot" and "Guardian," based at 
the U.S. naval base in Sasebo, entered the port of Ishigaki amid 
angry protests of citizens' groups. Ishigaki Mayor Nagateru Ohama, 
the official responsible for the administration of the port, had 
 
TOKYO 00001160  007 OF 015 
 
 
voiced his opposition repeatedly, and Okinawa Governor Hirokazu 
Nakaima had also opposed port calls other than in an emergency. Yet, 
the two ships arrived despite such opposition. The purpose of the 
port call was supposedly "goodwill" and "rest and recuperation for 
the crew," but there is no doubt that the visit was for 
investigating the topography of the port, in order for the U.S. 
forces to flex its muscles in the southern part of Okinawa in an 
emergency. 
 
Ohama reacted strongly, stating that, "This is an arbitrary 
imposition of goodwill. No consideration whatsoever has been given 
to the local community's feelings." 
 
The port of Ishigaki, which is the center of the lifeline for the 
island of Ishigaki and nearby islands, is designated as an important 
port by the national government. In 1999, the Ishigaki Municipal 
Assembly issued a rare "Declaration of a Port of Peace." This 
document was passed by the local legislature based on Mayor Ohama's 
strong determination despite the Ministry of Foreign Affairs 
expressing its displeasure. The declaration calls for full 
implementation of the three non-nuclear principles based on the 
spirit of the peace constitution and the promotion of the use of the 
port for the achievement of peace and prosperity. This document was 
an expression of the assembly's will, mindful of the danger of using 
the port for military purposes for the islanders. 
 
Maher and the U.S. Navy had also planned a port call at Ishigaki in 
June 2007, but the destination was changed to Sonai on the island of 
Yonaguni close to Taiwan due to strong local opposition. This recent 
visit marks the first time a U.S. vessel has entered a civilian port 
in Okinawa after reversion to Japanese administration. Maher's 
provocative posture of trying to make this port call that was 
thwarted two years ago by hook or by crook was evident at every 
turn. 
 
After the minesweepers anchored, Maher and his party were prevented 
from alighting from the ships for five hours, having been blocked by 
the protesting citizens. The police pushed their way through the 
crowd to breach the barricade forcibly. To avoid untoward incidents, 
Ishigaki City had asked that: 1) U.S. military personnel should use 
designated gates; and 2) the consul general, who was staying 
overnight in a hotel in the city, should not go to the port. This 
was ignored by Maher. He provoked local residents several times by 
going right in front of them and making U-turns each time. As the 
Americans were pushing through the crowd, he shouted "bakayaro 
(idiots)" at the citizens in the jostle. 
 
Furthermore, there was the incident where the "No to the port call" 
banner put up by the "Association of Ishigaki Women for Article 9 
(of the Constitution)" was stolen. Despite the fact that security 
cameras at the port clearly showed two American soldiers, who were 
crew members for sure, removing the banner, Maher made the 
astounding comment that, "They were simply disposing of trash. Can 
you call this theft?" 
 
His sensitivity of defiantly calling an expression of dissent 
against the U.S. soldiers' behavior as "trash disposal" is simply 
outrageous. The question of military bases in Okinawa has become an 
issue between the Japanese and U.S. governments for over a decade. 
One can assume that the arrival of this consul general who treats 
the Okinawan people with disdain with a straight face is a 
reflection of the U.S. government's contempt of Okinawa. 
 
TOKYO 00001160  008 OF 015 
 
 
 
During this visit to Ishigaki, Maher held a party with only 14 
people, mostly members of the Ishigaki chapter of the All Japan 
Defense Association (AJDA), wining and dining them onboard the 
ships. He declared defiantly: "It was an amicable party." This AJDA 
chapter had conducted a survey of restaurants and bars in downtown 
Ishigaki and presented a list of a dozen or so establishments 
willing to accept American soldiers to Maher. This was nothing but 
ostentatious "goodwill" based on the provision of special favors. 
 
The deliberate manipulation of information, using his few friends in 
Okinawa to give the impression that Okinawans are friendly to the 
U.S. Forces, is the hallmark of Maher. This is akin to the operation 
of Central Intelligence Agency (CIA) agents sent to Latin America to 
suppress anti-American countries. He rarely interacts with political 
and economic leaders in the Okinawan society and spends his time 
building relations only with people holding values similar to his. 
He practically does not have any contact with Governor Nakaima, who 
differs with him on the relocation of the Futenma Air Station. He 
does not listen to opinions that do not suit his ears and behaves 
very differently from previous consuls general. 
 
A top official of the economic federation in Okinawa says furiously: 
"He should stop insulting Okinawans. He is the worst that we have 
ever seen. We don't need somebody like him." 
 
Maher has been "promoted" to head the Japan desk of the U.S. 
Department of State. We are quite happy to see someone who has not 
done his job of listening to the Okinawan people's views and who has 
merely tried to impose the U.S. forces' own values leave Okinawa, 
but it is depressing to know that this "information manipulator," 
who distorts the image of Okinawa, will be moving to Washington to 
pull the strings behind the scenes. 
 
(6) Interview with U.S. special envoy Bosworth: Academic brains 
needed for North Korea issue 
 
YOMIURI (Page 7) (Full) 
May 21, 2009 
 
Keiichi Honma, Boston 
 
Three months have passed since Stephen Bosworth, 69, was appointed 
the U.S. government's special envoy for the North Korean nuclear 
issue. In an unusual arrangement, during this period, he has 
continued to serve as the dean of the Fletcher School, the graduate 
school of international affairs of Tufts University, outside Boston 
in the northeast of the United States. Bosworth gave an interview to 
Yomiuri Shimbun on May 19. He disclosed that he maintains contact 
with the Department of State and other offices via video conference 
and showed confidence that he will be "able to deal with North Korea 
issues anytime." 
 
Books on North Korea lined the bookshelves in the dean's office at 
Fletcher School. Bosworth said: "I have access to lots of 
information on North Korea in this room through the telephone, 
e-mails, media, and books." He also uses special communications 
equipment for classified information. 
 
After his term as ambassador to the Republic of Korea ended in 2001, 
the culmination of a diplomatic career spanning more than 30 years, 
Bosworth was asked to serve as dean at Fletcher School. He lives 
 
TOKYO 00001160  009 OF 015 
 
 
with his wife in Boston. After his appointment as special envoy by 
Secretary Hillary Clinton in February, he has been flying to the 
State Department in Washington for one or two days every week to 
meet with Clinton and other officials. Normally, he spends his time 
making school policy, screening students for admission, managing 
funds, and handling other matters for the graduate school in 
Boston. 
 
While there is criticism that wearing two hats makes him unable to 
deal with the DPRK nuclear issue adequately, Bosworth said: "I am 
not concerned. There are many people in Boston who possess helpful 
knowledge on the issues we are facing," stressing the benefits of 
being able to discuss the nuclear issue with academics at Harvard 
University and other institutions. 
 
When he was ambassador to the ROK, Bosworth played an important role 
behind the scenes during the visits to North Korea by then President 
Kim Daejung and U.S. Secretary of State Madeleine Albright. He 
indicated that, "It is important to open your heart and listen 
carefully to other people's opinions (when dealing with people on 
the Korean peninsula)." 
 
(7) Chairman Shii at meeting with Prime Minister Aso: Japanese 
government should take initiative in international talks for 
abolition of nuclear arms 
 
AKAHATA (Page 1) (Full) 
May 21, 2009 
 
Japanese Communist Party (JCP) Chairman Kazuo Shii met with Prime 
Minister Taro Aso at the Diet on May 20 and asked that Japan take 
the initiative in preparing for international negotiations for the 
abolition of nuclear weapons. Other JCP officials present at the 
meeting were Tadayoshi Ichida, head of JCP secretariat, and Diet 
affairs chief Keiji Kokuta, while Chief Cabinet Secretary Takeo 
Kawamura also attended from the government side. 
 
During the meeting, Shii reported that he had written a letter to 
U.S. President Barack Obama, who set the achievement of a 
"nuclear-free world" as a national goal of the United States in his 
speech in Prague, the Czech Republic, in April. Shii asked Obama to 
take the initiative in the complete elimination of nuclear arms, and 
in return he had received a letter of appreciation from the U.S. 
government. 
 
Shii also reported that the U.S government's reply noted that "we 
would like to cooperate with the Japanese government to make 
concrete progress in achieving the goal" of abolition of nuclear 
arms. He told the prime minister: "As the government of an 
atomic-bombed country, Japan should take the initiative in calling 
upon the international community to start negotiations that set the 
abolition of nuclear arms as the main theme." He added that, "As the 
only atomic-bombed country, Japan has the moral responsibility and 
right to do so." 
 
Commenting on Obama's speech in Prague, Aso said: "This was the best 
speech by an American president that I have ever heard. What is most 
significant about the speech is that a nuclear power is making an 
appeal (for a 'nuclear-free world') for the first time," indicating 
that he was surprised and had taken notes on the speech. 
 
On the Japanese government's taking the initiative on the abolition 
 
TOKYO 00001160  010 OF 015 
 
 
of nuclear weapons, the prime minister also stated that no progress 
can be made without resolving the question of North Korea's 
development of nuclear arms. 
 
In response to this, Shii stressed: "While ending the DPRK's nuclear 
development program is indeed an urgent issue, it is important for 
the international community to work on the abolition of nuclear 
weapons promptly, if only to make progress in this issue. This will 
also help resolve the North Korea issue." He reiterated his request 
for taking the initiative in international talks for nuclear 
abolition. 
 
(8) GDP dips 15.2 percent in January-March quarter: Economists 
project positive growth in April-June quarter 
 
NIKKEI (Page 3) (Abridged slightly) 
May 21, 2009 
 
The gross domestic product (GDP) in real terms for the January-March 
quarter dropped 4.0 PERCENT  (annualized 15.2 PERCENT ) from the 
previous quarter, marking the greatest plunge in the postwar period. 
Although there is still a long way to go before the economy recovers 
on a full scale, there have emerged signs that the decline in 
industrial output has bottomed out with inventory adjustments making 
progress. There are also indications of exports picking up. As such, 
there is a strong possibility of GDP in the April-June quarter 
achieving positive growth. What will the prospects for 2009? Nihon 
Keizai Shimbun envisages the future course of the Japanese economy, 
based on views of private-sector economists. 
 
 
Inventory adjustment 
 
Signs of an end of the decline of industrial output are already 
visible. The mined and manufactured production index rose 1.6 
PERCENT  in March in comparison with the previous month's level, 
positive growth after a hiatus of six months. Completing inventory 
adjustments of liquid crystal panels, Sharp has started full 
operations at its main plant. Panasonic is also fully operating at 
its existing plasma panel plant since May. This is due to demand 
from emerging countries. President Fumio Otsubo believes that the 
government's eco-point system will also stimulate domestic demand. 
 
With inventories of thin sheets used for automobiles or as 
construction materials dropping to an appropriate level, the Japan 
Iron and Steel Federation Chairman Shoji Muneoka said, "We will 
become able to manufacture amount corresponding to actual demand, 
starting in July." The inventory rate in the production industry is 
declining as a whole. Many economists now think that industrial 
output will take an upward turn in the April-June quarter, says 
Yasuo Goto of the Mitsubishi Research Institute. 
 
Regarding exports, which serve as a driving force for growth, some 
Asia-bound exports are showing signs of bottoming out. The major 
focus is on China. Toso plans to boost production, following 
increased demand for resin from China, which has come up with 
economic stimulus package worth approximately 55 trillion yen. 
Kiichi Murashima of Nikko City Group Securities sees, "Exports will 
increase towards the summer due to progress in inventory adjustments 
throughout the world." 
 
U.S. risks 
 
TOKYO 00001160  011 OF 015 
 
 
 
However, many economists see that whether the Japanese economy will 
rebound or not will depend on whether the U.S. and European 
economies will turn around, as Masaaki Kanno of JP Morgan Securities 
noted. Investment in the housing sector in the U.S. is seesawing. 
There are many risk factors, such as financial instability and 
management crisis at leading automakers. Ryutaro Kono of BNP Paribas 
said: "The U.S. and European economies will not turn around anytime 
soon. Exports will become sluggish in the remaining half of 2009." 
 
Consumption holds the key to domestic demand. Though domestic demand 
is increasing, boosted by the government distribution of flat-sum 
cash handouts, anxieties about the future remain. The total 
unemployment rate in March stood at 4.8 PERCENT , down 0.7 points 
only in two months. Takahide Kiuchi of Nomura Securities said, 
"Employment adjustments will likely continue for more than a year. 
It is hard to expect full consumption recovery." 
 
A decline in income will serve as a setback to the economy. 
Junichiro Takeuchi of the Japan Economic Research Center noted, 
"Salaried workers will feel that the economy is worsening, when they 
see their bonuses transferred to their bank accounts at the end of 
June. There is a slim chance of their desire to spend heightening." 
There is also a deflationary spiral of corporate income dropping due 
to a fall in prices as a result of a shortage of demand putting a 
dent in wages. 
 
Effects of stimulus measures 
 
What are the effects of the government's stimulus measures? With the 
introduction of an eco-car tax break in April, the amount of orders 
Nissan Motors received has increased roughly 30 PERCENT , compared 
with the same month year before. Yuji Shimanaka of Mitsubishi UFJ 
Securities pointed out, "Boosted public works will produce effects 
from around the April-June term." 
 
Even so, sales of autos other than eco-cars remain sluggish. 
Ultimate demand has yet to make full recovery. Economists envisage 
that the economy will pick up gradually in the future, or seesaw or 
lose steam toward the end of the year. In any case, it is far from 
making a V-shaped sharp recovery. If the effects of the stimulus 
package weaken, the GDP could make a downward turn again in the 
remaining half of the next fiscal year," according to Yoshiki Shinke 
of the Dai-Ichi Life Research Institute. 
 
Disturbing factors 
 
A new factor that is casting a pall over the future of the economy 
is the new influenza strain, which is spreading in the metropolitan 
zone now. JTB said that 4 PERCENT  of domestic trips to the Kansai 
district for the May-June period were cancelled in three days from 
the 16th through the 18th. 
 
If the current spread of flu results in a pandemic, trade will 
shrink. Should that occur, Japan would find it difficult to earn 
money in exporting goods. Mitsumaru Kumagai of the Daiwa Institute 
of Research said, "A 1 PERCENT  drop in trade volume would push down 
the growth of the world economy by 0.3 PERCENT ." The new influenza 
strain now spreading in various countries is attenuated in 
virulence. Yamamoto of the Mizuho Research Institute said, "If 
anxieties as we are feeling now die down, the effect of the new 
influenza strain would be limited." 
 
TOKYO 00001160  012 OF 015 
 
 
 
(9) Plan to move JAXA to Cabinet Office scrapped due to resistance 
from MEXT and education policy clique in the Diet 
 
SANKEI (Page 5) (Full) 
May 21, 2009 
 
The plan to transfer the independent administrative agency Japan 
Aerospace Exploration Agency (JAXA) from the Ministry of Education, 
Culture, Sports, Science and Technology (MEXT) to the Cabinet 
Office, which was supposed to be the "centerpiece" of the 
government's basic space program to be compiled by late May, will be 
scrapped due to fierce opposition from MEXT and Liberal Democratic 
Party (LDP) Diet members specializing in education and culture 
issues (education and culture zoku). There had been high hopes for 
the development of the space industry with the development of H-2A 
rockets being moved to JAXA, but it appears that the culture in the 
government and the ruling parties of giving greater priority to 
bureaucratic interests, rather than national interest, remains 
unchanged. 
 
Space development had been limited to peaceful purposes, but with 
the enactment of the Basic Space Law in August 2008, space 
technology can now be used for security and commercial purposes. The 
government plans to draw up a five-year basic program in FY2009 and 
is considering moving JAXA, which takes up 60 PERCENT  of the space 
development budget, to the Cabinet Office. This is because the 
transfer is envisioned to enable JAXA, whose activities are limited 
to "basic research," to engage in collaboration among industry, the 
academia, and the government and play a central role in future space 
development. 
 
Chief Cabinet Secretary Takeo Kawamura has emphasized the 
significance of the transfer on April 22. He said that, "The MEXT 
alone will not be able to beef up the functions relating to space 
development." 
 
However, this was met with a counteroffensive from MEXT immediately. 
At a news conference on April 28, MEXT Minister Ryu Shionoya 
expressed his opposition. He said: "JAXA should accomplish its 
mission under MEXT." LDP education and culture zoku also resisted 
this fiercely: "The integration of JAXA took place only three years 
ago. The transfer is premature." 
 
The education and culture zoku consist of many political 
heavyweights, such as former prime minister Yoshiro Mori and former 
chief cabinet secretary Nobutaka Machimura. Even Prime Minister Taro 
Aso and Kawamura were formerly education and culture zoku members. 
Therefore, advocates of the transfer were put in a very difficult 
position and the plan to include the transfer in the basic program 
is now being scrapped because "it is not advisable to have 
intraparty conflict before the House of Representatives election," 
(according to a mid-ranking LDP member). Seiko Noda, state minister 
for space development, reported the situation to Kawamura on May 
¶19. 
 
(10) Poll on Aso cabinet, political parties, DPJ's leadership 
change 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 18, 2009 
 
 
TOKYO 00001160  013 OF 015 
 
 
Questions & Answers 
(Figures shown in percentage. Parentheses denote the results of the 
last survey conducted May 11-12.) 
 
Q: Do you support the Aso cabinet? 
 
Yes 26.2 (28.0) 
No 60.2 (55.1) 
Don't know (D/K) + no answer (N/A) 13.6 (16.9) 
 
Q: (Only for those who answered "yes" to the previous question) 
What's the primary reason for your approval of the Aso cabinet? Pick 
only one from among those listed below. 
 
The prime minister is trustworthy 7.1 (12.6) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 10.9 (9.3) 
The prime minister has leadership ability 1.9 (2.7) 
Something can be expected of its economic policies 16.3 (11.4) 
Something can be expected of its foreign policies 3.1 (3.1) 
Something can be expected of its political reforms 2.5 (0.9) 
Something can be expected of its tax reforms 1.8 (1.4) 
Something can be expected of its administrative reforms 4.1 (3.3) 
There's no other appropriate person (for prime minister) 50.3 
(51.2) 
Other answers (O/A) --- (1.8) 
D/K+N/A 2.0 (2.3) 
 
Q: (Only for those who answered "no" to the first question) What's 
the primary reason for your disapproval of the Aso cabinet? Pick 
only one from among those listed below. 
 
The prime minister is untrustworthy 14.7 (14.0) 
Because it's a coalition cabinet of the Liberal Democratic Party and 
the New Komeito 6.7 (10.3) 
The prime minister lacks leadership ability 13.5 (14.6) 
Nothing can be expected of its economic policies 29.8 (26.0) 
Nothing can be expected of its foreign policies 2.0 (0.7) 
Nothing can be expected of its political reforms 10.8 (9.0) 
Nothing can be expected of its tax reforms 2.8 (4.9) 
Nothing can be expected of its administrative reforms 8.7 (10.6) 
Don't like the prime minister's personal character 9.1 (8.3) 
O/A 0.2 (0.5) 
D/K+N/A 1.7 (1.0) 
 
Q: Do you have expectations for new DPJ President Hatoyama? 
 
Very much 14.1 
Somewhat 33.4 
Not very much 36.4 
Not at all 14.2 
D/K+N/A 1.9 
 
Q: Do you think the DPJ's change of leadership will be a plus or a 
minus to the party in the next election for the House of 
Representatives? 
 
Plus 31.9 
Minus 16.2 
No change 49.0 
D/K+N/A 2.9 
 
 
TOKYO 00001160  014 OF 015 
 
 
Q: Do you think former DPJ President Ozawa's influence will remain 
in the DPJ after its leadership change? 
 
Considerably 34.2 
Somewhat 48.2 
Not very much 11.3 
Not at all 2.8 
D/K+N/A 3.5 
 
Q: Do you think DPJ President Hatoyama should conduct his party's 
own investigation into Nishimatsu Construction Co.'s illicit 
donations to former DPJ President Ozawa's fund-managing body? 
 
Yes 79.2 
No 15.8 
D/K+N/A 5.0 
 
Q: Do you think DPJ President Hatoyama should make efforts on the 
part of his party for a total ban on corporate and organizational 
donations? 
 
Yes 70.0 
No 20.4 
D/K+N/A 9.6 
 
Q: Do you think DPJ President Hatoyama should ask former DPJ 
President Ozawa to fulfill his accountability? 
 
Yes 77.2 
No 18.8 
D/K+N/A 4.0 
 
Q: The House of Representatives' current term expires in September 
this year. When would you like the House of Representatives to be 
dissolved for a general election? 
 
After the supplementary budget's passage through the Diet 34.4 
In mid-July or later, after the G-8 summit 25.2 
Wait until the current term expires without dissolving the Diet 
31.2 
D/K+N/A 9.2 
 
Q: Would you like the present LDP-led coalition government to 
continue, would you like it to be replaced with a DPJ-led coalition 
government, or would you like the LDP and the DPJ to form a 
coalition government? 
 
LDP-led coalition government 18.7 
DPJ-led coalition government 31.2 
LDP-DPJ grand coalition 18.9 
New framework under political realignment 24.3 
D/K+N/A 6.9 
 
Q: Which political party are you going to vote for in the next House 
of Representatives election in your proportional representation 
bloc? 
 
Liberal Democratic Party (LDP) 25.8 (26.7) 
Democratic Party of Japan (DPJ or Minshuto) 37.3 (36.5) 
New Komeito (NK) 4.0 (2.7) 
Japanese Communist Party (JCP) 4.1 (4.3) 
Social Democratic Party (SDP or Shaminto) 1.0 (1.2) 
 
TOKYO 00001160  015 OF 015 
 
 
People's New Party (PNP or Kokumin Shinto) 1.5 (0.6) 
Reform Club (RC or Kaikaku Kurabu) 0.1 (---) 
New Party Nippon (NPN or Shinto Nippon) 0.1 (0.2) 
Other political parties, groups --- (---) 
D/K+N/A 26.1 (27.8) 
 
Q: When comparing Prime Minister Aso and DPJ President Hatoyama, 
which one do you think is more appropriate for prime minister? 
 
Taro Aso 32.0 
Ichiro Ozawa 43.6 
D/K+N/A 24.4 
 
Q: Which political party do you support? 
 
Liberal Democratic Party (LDP) 25.2 (26.6) 
Democratic Party of Japan (DPJ or Minshuto) 30.0 (25.9) 
New Komeito (NK) 4.2 (3.2) 
Japanese Communist Party (JCP) 3.4 (2.8) 
Social Democratic Party (SDP or Shaminto) 0.7 (1.2) 
People's New Party (PNP or Kokumin Shinto) 1.2 (0.5) 
Reform Club (RC or Kaikaku Kurabu) --- (---) 
New Party Nippon (NPN or Shinto Nippon) --- (0.1) 
Other political parties, groups --- (---) 
None 33.8 (38.7) 
D/K+N/A 1.5 (1.0) 
 
Polling methodology: This survey was conducted nationwide from the 
evening of May 16 through May 17 by Kyodo News Service on a 
computer-aided random digit dialing (RDD) basis. Among randomly 
generated telephone numbers, those actually for household use with 
one or more eligible voters totaled 1,448. Answers were obtained 
from 1,026 persons. 
 
ZUMWALT