VZCZCXRO7968
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1230/01 1530405
ZNR UUUUU ZZH
P 020405Z JUN 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3372
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 6646
RUEHFK/AMCONSUL FUKUOKA 4311
RUEHOK/AMCONSUL OSAKA KOBE 8112
RUEHNAG/AMCONSUL NAGOYA 1911
RUEHKSO/AMCONSUL SAPPORO 4840
RUEHBJ/AMEMBASSY BEIJING 9574
RUEHUL/AMEMBASSY SEOUL 5595
RUCNDT/USMISSION USUN NEW YORK 5337

UNCLAS SECTION 01 OF 11 TOKYO 001230 
 
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 06/02/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Visit of Deputy Secretary Steinberg: 
4) U.S., Japan agree not to recognize North Korea as a nuclear power 
 (Yomiuri) 
5) Deputy Secretary Steinberg, Vice Foreign Minister Yabunaka agree 
to pressure North Korea to denuclearize  (Nikkei) 
6) Foreign Minister Nakasone would like to see a review of the 
policy dealing with North Korea  (Mainichi) 
7) Yabunaka says new approach needed in North Korea policy  (Asahi) 
 
8) U.S. has shifted focus of North Korea policy toward pressure 
tactics, with Treasury official accompanying Steinberg delegation to 
Japan  (Asahi) 
9) In meeting with Deputy Secretary Steinberg, Democratic Party of 
Japan President Hatoyama makes pitch for a future DPJ administration 
 (Nikkei) 
 
Defense and security affairs: 
10) Vice defense minister restates Japan's request of U.S. to share 
information on the F-22  (Mainichi) 
11) Liberal Democratic Party (LDP) seeks end to defense budget cuts, 
wants new build up plan to state so  (Sankei) 
12) Chief Cabinet Secretary Kawamura denies existence of "secret 
pact" between U.S. and Japan allowing nuclear weapons into Japan 
(Mainichi) 
13) Government to decide today basic action plan for military use of 
outer space  (Akahata) 
 
Politics: 
14) August Lower House election now likely  (Mainichi) 
15) DPJ in battle formation to confront the ruling parties this 
summer in run-up to the Lower House election  (Mainichi) 
16) Ruling and opposition camps are gearing up strategies to appeal 
to public in upcoming election campaign  (Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Mainichi: Yomiuri: Nikkei: Sankei: Tokyo Shimbun: Akahata: 
GM files for bankruptcy with 16 trillion yen in debts 
 
2) EDITORIALS 
 
Asahi: 
(1) GM files for bankruptcy: Occasion for reform of automobile 
civilization 
(2) Diet session extended extensively: Do not continue to avoid Diet 
dissolution 
 
Mainichi: 
(1) GM to be nationalized: Reconstruction is a long way off 
(2) Disapproval of construction of Onahama thermal power plant: 
Environment assessment worked 
 
Yomiuri: 
(1) GM goes under: Key to reconstruction is to manufacture cars that 
sell 
 
TOKYO 00001230  002 OF 011 
 
 
(2) Designation of U.S. ambassador to Japan: First step toward 
building new relationship with Obama administration 
 
Nikkei: 
(1) GM files for bankruptcy: Giant company neglects self- reform 
 
Sankei: 
(1) Nationalization of GM: Reconstruction free of protectionism 
(2) Mid-term goal to cut global warming gasses: "Laugh, if you must" 
spirit needed in international talks 
 
Tokyo Shimbun: 
(1) Diet session extended for 55 days: Set election day immediately 
(2) Nationalization of GM: Can it survive in a "green society"? 
 
Akahata: 
(1) Cut in number of seats in proportional representation 
constituencies in Upper House 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 1 
 
NIKKEI (Page 2) (Full) 
June 2, 2009 
 
07:50 Took a walk around his official residence. 
10:30 Met the Emperor and Empress at the entrance of the Japan 
Academy Hall in Ueno Park. Attended an award ceremony. 
12:03 Sent the Emperor and Empress off. 
13:28 Met at the Kantei with Secretary General Hosoda and Diet 
Affairs Committee Chairman Oshima, with Chief Cabinet Secretary 
Kawamura present. Kawamura stayed behind. 
15:01 Attended an LDP executive meeting in the Diet. 
15:25 Met Kawamura at the Kantei. Later, met New Komeito President 
Ota. Then met Hosoda and New Komeito Secretary General Kitagawa, 
with Kawamura. 
18:25 Attended a farewelling for International Criminal Court Judge 
Saiga at the Foreign Ministry's auditorium. 
18:40 Dined with his secretaries in a reception hall at the Hotel 
New Otani. 
21:22 Returned to his official residence. 
 
4) Japan, U.S. agree not to tolerate North Korea's possession of 
nuclear weapons, will consider review of six-party talks 
 
YOMIURI (Page 2) (Full) 
June 2, 2009 
 
Following North Korea's latest nuclear test, the Japanese and U.S. 
governments held an emergency high-level meeting at the Foreign 
Ministry yesterday, in which participants agreed that they could not 
tolerate North Korea's possession of nuclear weapons. They also 
shared the need to review the six-party talks on North Korea's 
nuclear program. The Japanese government takes the view that the 
framework of the talks should be maintained, but it intends to 
review with the U.S. and other countries ways of proceeding with the 
discussion, past agreements, and other details to explore a new 
approach to create a productive outcome. 
 
The meeting was attended by Vice Foreign Minister Mitoji Yabunaka 
and senior officials from the Defense Ministry, the Finance Ministry 
 
TOKYO 00001230  003 OF 011 
 
 
and the Cabinet Secretariat from the Japanese side. Attended from 
the U.S. were Deputy Secretary of State James Steinberg, Special 
Representative for North Korea Policy Stephen Bosworth, and senior 
officials of the Treasury Department, the Defense Department and the 
National Security Council. Regarding the six-party talks, Yabunaka 
said in a press conference after the meeting: "It is necessary to 
consider their future options. While examining to what extent the 
approach taken so far has proved successful, we should consider a 
new approach based on this reflection." 
 
In their talks, Japanese and U.S. officials also agreed that Japan, 
the U.S. and South Korea should cooperate in mapping out measures 
against North Korea. Pyongyang has announced that it would fire a 
long-range ballistic missile. In reaction, the U.S. reiterated its 
commitment to defending Japan from the North Korean threat. 
 
5) Japan-U.S. vice minister-level talks agree to apply pressure for 
denuclearization of North Korea, review of Six-Party Talks 
 
NIKKEI (Page 2) (Full) 
June 2, 2009 
 
The governments of Japan and the United States held a vice 
minister-level meeting on June 1 at the Foreign Ministry to discuss 
their response to North Korea's second nuclear test. In the meeting, 
the two sides shared the view that they will absolutely not allow 
North Korea to possess nuclear weapons. They also confirmed a policy 
course to take "effective measures" for the denuclearization of 
North Korea at such venues as the UN Security Council and the 
Six-Party Talks. At a press conference after the meeting, Vice 
Foreign Minister Mitoji Yabunaka pointed out the need for new 
measures, including a review of the modalities of the Six-Party 
Talks. 
 
High-ranking government officials of Japan and the United States met 
for the first time after North Korea's nuclear test. U.S. Deputy 
Secretary of State James Steinberg told reporters after the meeting, 
"We are discussing what measures we can take at the UN Security 
Council and other venues." 
 
Yabunaka also said, "While we will examine to what extent the 
approach that has been taken until now has proven effective, a new 
approach should be considered based on this reflection." He revealed 
a plan to consider a system that can ratchet up pressure on North 
Korea based on the fact that the denuclearization process of the 
Six-Party Talks is deadlocked. 
 
In the meeting, the Japanese side asked for the cooperation of the 
United States for the settlement of the abduction issue, and the 
U.S. side showed an understanding. 
 
6) Steinberg announces to Nakasone a plan to review 
dialogue-oriented policy toward North Korea 
 
MAINICHI (Page 2) (Full) 
June 2, 2009 
 
Naoyuki Inukai 
 
The governments of Japan and the United States held their vice 
minister-level talks yesterday in Tokyo to discuss their responses 
to North Korea that had conducted another nuclear test. It has 
 
TOKYO 00001230  004 OF 011 
 
 
become clear that U.S. Deputy Secretary of State James Steinberg, 
who attended the vice minister-level talks, indicated in his meeting 
with Foreign Minister Hirofumi Nakasone that the United States would 
review its dialogue-oriented policy toward the North. Steinberg 
said, "Things will not go in the same way as before, although we 
will keep dialogue as our leverage in dealing with North Korea." 
Steinberg also said in the vice minister-level talks, "Things will 
not go as before." 
 
He is believed to have expressed a view that the United States will 
ratchet up pressure on the North based on the fact that the Obama 
administration's dialogue policy course failed to prevent Pyongyang 
from conducting the nuclear test and launching ballistic missiles. 
 
In his meeting with Nakasone, Steinberg emphatically said, "The same 
mistake must not be repeated." Nakasone welcomed Steinberg's comment 
on applying greater pressure on North Korea, saying, "That is the 
direction we also want." 
 
The vice minister-level talks were attended by Administrative 
Vice-Foreign Minister Mitoji Yabunaka, Steinberg and others. Based 
on the bitter lesson learned from the Six-Party Talks that the 
framework has not functioned effectively in addressing the North 
Korean nuclear issue, the two sides agreed in the talks to discuss a 
new approach with countries concerned. The new approach seems to 
mean asking China, the chair of the Six-Party Talks, to exert 
influence. The two sides confirmed a policy course to cooperate for 
the adoption of a strong UN Security Council resolution, saying they 
absolutely cannot allow North Korea to possess nuclear weapons. The 
Japanese side indicated that the abduction issue is also extremely 
important. 
 
7) Vice Minister of Foreign Affairs Yabunaka calls for "new 
approach" 
 
ASAHI (Page 5) (Full) 
June 2, 2009 
 
Toru Higashioka 
 
In light of the recent North Korean nuclear test, Japanese and U.S. 
officials lead by Vice Minister of Foreign Affairs Mitoji Yabunaka 
and Deputy Secretary of State James Steinberg exchanged views on 
future policy toward the DPRK at the Ministry of Foreign Affairs in 
Tokyo on June 1. After the meeting, Yabunaka told a news conference 
that the Six-Party Talks "continues to be an effective framework," 
but indicated that "a new approach based on lessons learned" is 
necessary. Yabunaka wondered "how effective the approach so far had 
been," since it was unable to stop the missile launches and the 
nuclear test, indicating his assessment that past policy had not 
been fully successful. 
 
On the other hand, Steinberg told reporters after the meeting that, 
"We focused on developing a common strategy." The U.S. delegation 
also met Democratic Party of Japan (DPJ) President Yukio Hatoyama. 
According to the DPJ, Steinberg said that "(the U.S.) will make 
serious efforts to persuade China," indicating his belief that the 
response of China, which has close economic ties with the DPRK, 
holds the key. 
 
8) U.S. shifting to pressure tactic in dealing with North Korea; 
Delegation includes Treasury official 
 
TOKYO 00001230  005 OF 011 
 
 
 
ASAHI (Page 5) (Full) 
June 2, 2009 
 
A U.S. government delegation led by Deputy Secretary of State James 
Steinberg is in Japan for discussions with the Japanese government 
on June 1 on how to respond to North Korea's nuclear test. The 
lineup of the delegation, which consists of senior officials in 
charge of foreign, military, and financial affairs, reflects the 
Obama administration's strong determination to "contain North Korea 
by all possible means" (State Department source). It is very likely 
that this may become the turning point for the U.S. government, 
which has advocated a "dialogue" with North Korea, to shift to 
"pressure" tactics. 
 
After his meeting with Japanese officials on the afternoon of June 
1, Steinberg emphasized to reporters the need to apply pressure on 
North Korea: "We need to make North Korea understand that it has to 
reverse its course." 
 
It is noteworthy that Under Secretary of the Treasury Stuart Levey 
is a member of the delegation. He was responsible for the U.S. 
financial sanctions on a Macau bank, to which the DPRK had reacted 
fiercely. Financial sanctions are included in the sanction 
resolution currently being deliberated at the UN Security Council, 
and Levey's presence in the delegation is an indication of the U.S. 
stance of applying financial pressure. 
 
On the other hand, Stephen Bosworth, special envoy for North Korea 
policy who is the coordinating officer for the U.S. government's 
DPRK policy and chief liaison with other countries, is a mere member 
of the delegation. There are growing moves to modify the North Korea 
policy led by Bosworth, who has called for "dialogue and patience," 
after the nuclear test. At the discussions on June 1, Bosworth 
himself said that U.S. policy "is not one-sided dialogue" (Ministry 
of Foreign Affairs source). The reason why the U.S. government has 
begun to shift to a tough stance is because North Korea's nuclear 
test is regarded as the "first direct challenge" (New York Times) to 
President Barack Obama, who is campaigning for "a world without 
nuclear weapons." 
 
North Korea has repeatedly stressed that it is a "nuclear power." 
After the second nuclear test, it is now widely believed that the 
DPRK does not intend to "denuclearize" - which is the goal of the 
Six-Party Talks - but wants to "go into nuclear arms reduction talks 
as a nuclear power" (Victor Cha, former director of Asian Affairs, 
National Security Council). 
 
Nuclear proliferation by North Korea has also become a real 
possibility. There is an opinion that, "North Korea's plutonium and 
missile technology and Iran's centrifuges complement each other. The 
collaboration of the two will be fatal." (Stanford University 
Professor Siegfried Hecker) Within the State Department, there is 
also opinion that being soft on North Korea will have a ripple 
effect on the Iranian nuclear issue, which the U.S. regards as more 
serious. 
 
The U.S. government reckons that "North Korea will have to return to 
the Six-Party Talks sooner or later." (Gary Samore, White House 
coordinator for arms control and weapons of mass destruction and 
terrorism) It intends to maintain the Six-Party Talks framework. 
However, the U.S. undeniably cannot project into the future. It is 
 
TOKYO 00001230  006 OF 011 
 
 
believed that it may attempt to find a window for dialogue using the 
issue of the two female American journalists now in custody in North 
Korea. 
 
9) Hatoyama to U.S. Deputy Secretary of State: Democratic 
governments in both Japan and the United States 
 
NIKKEI (Page 2) (Full) 
June 2, 2009 
 
Democratic Party of Japan President Yukio Hatoyama met U.S. Deputy 
Secretary of State James Steinberg at the party headquarters on June 
¶1. He said: "Let us take on the big challenge posed by various 
issues with Democratic governments both in Japan and the United 
States," calling for strengthening bilateral relations while also 
indicating a strong motivation toward a change of government. 
 
On the North Korea issue, Hatoyama pointed out that, "It is 
important to draft a UN resolution incorporating additional 
sanctions and draw China into cooperating." Steinberg responded 
with: "North Korea will probably understand that even with a change 
of government in Japan, the response of Japan and the United States 
will remain unchanged," paying lip service to Hatoyama. 
 
10) Japan again asks U.S. for F-22 data 
 
MAINICHI (Page 5) (Full) 
June 2, 2009 
 
Administrative Vice Defense Minister Kohei Masuda yesterday met with 
visiting U.S. Assistant Secretary of Defense for Asian and Pacific 
Security Affairs Gregson at the Defense Ministry. In the meeting, 
Masuda referred to the F-22, a state-of-the-art stealth fighter 
developed by the United States, as a likely candidate in the process 
of selecting the follow-on mainstay fighter (FX) for the Air 
Self-Defense Force. In this connection, Masuda again made a request 
to provide such data as the F-22's performance and equipment. 
Gregson went no further than to explain that the F-22 has been 
embargoed by the U.S. Congress. 
 
In addition, Masuda and Gregson also confirmed that Japan and the 
United States would steadily realign U.S. forces in Japan, based on 
a bilateral agreement reached in 2006 on such measures as relocating 
the U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa 
Prefecture, to a coastal area of Camp Schwab in the island 
prefecture's northern coastal city of Nago. 
 
11) LDP calls for retracting defense spending cuts 
 
SANKEI (Page 2) (Abridged) 
June 6, 2009 
 
The ruling Liberal Democratic Party yesterday revealed its final 
draft proposal for the government's national defense program 
guidelines to be revised late this year. The final draft proposal 
makes a request to the government, insisting that the government 
should modify its draft revisions to the guidelines. Specifically, 
the LDP, in its finalized proposal, insists that the government 
should retract its policy of cutting back on Japan's defense 
spending and defense capabilities. In addition, the LDP policy 
proposal paper also says the government should maintain and expand 
its defense spending and the Self-Defense Forces' manning level. 
 
TOKYO 00001230  007 OF 011 
 
 
What lies behind this is the worsening of the security environment 
surrounding Japan, as seen from North Korea's repeated nuclear tests 
and ballistic missile launches, China's projection of its military 
power with plans to build flattops, and Russia's recovery of 
military power. In addition, the SDF has been tasked with an 
increasing number of missions for international peace cooperation. 
"The SDF cannot fully meet the needs with its decreasing budget and 
manpower," an LDP lawmaker on national defense said. 
 
The final draft, titled "Policy Proposal on the New National Defense 
Program Guidelines," was created by the LDP Defense Division's 
defense policy subcommittee (chaired by Hiroshi Imazu) with 
modifications to its May 26 original draft. It also calls for the 
government to think twice about its "big-boned" economic and 
financial policy guidelines' defense spending cuts. The LDP will 
shortly make a formal decision on its finalized policy proposal and 
will present its policy proposal paper to the government. 
 
In concrete terms, the LDP policy proposal paper specifies the need 
for Japan to "ensure air and sea supremacy" against Chinese forces 
in the sphere ranging from areas in the neighborhood of the Nansei 
Shoto islands, or Japan's southwestern archipelago of islands, to 
areas down to Guam. 
 
The original draft proposal touched on the advisability of acquiring 
the capability of striking enemy bases. Within the LDP, however, 
there are also cautious arguments concerning this enemy base strike 
option. So the final draft sought their understanding, with an 
additional description saying acquiring this capability will 
"establish stronger bilateral cooperative arrangements between Japan 
and the United States." 
 
12) Kawamura denies 'secret deal' on nuke introduction 
 
MAINICHI (Page 5) (Abridged) 
June 2, 2009 
 
Chief Cabinet Secretary Takeo Kawamura, meeting the press yesterday, 
denied that Japan and the United States had concluded a secret 
agreement tacitly allowing "nuclear introduction" into Japan. In 
this connection, some of the media reported yesterday that the 
Foreign Ministry had reportedly controlled the secret deal concluded 
between the Japanese and U.S. governments when the Japan-U.S. 
Security Treaty was revised in 1960. Kawamura said, "Since there 
have been no prior consultations for nuclear introduction, I have no 
doubt at all that there was no nuclear introduction." The bilateral 
security treaty stipulates that the U.S. government is to propose 
consultations with the Japanese government before bringing in 
nuclear weapons into Japan. Meanwhile, Administrative Vice Foreign 
Minister Mitoji Yabunaka also denied the secret pact in a press 
conference yesterday, saying, "The successive prime ministers and 
foreign ministers have explained that there was no such secret 
agreement." 
 
13) Government to decide on basic space program today to shift 
course to use space for military purposes 
 
AKAHATA (Page 3) (Full) 
June 2, 2009 
 
The government's Strategic Headquarters for Space Development, 
headed by Prime Minister Taro Aso, will hold a plenary session today 
 
TOKYO 00001230  008 OF 011 
 
 
to make a formal decision on the basic space program now being 
readied. The expert panel-drafted program that defines for the first 
time the use of military satellites by the Self-Defense Forces (SDF) 
as part of the nation's state strategy is likely to be approved (by 
the government). The program is designed to allow the country to set 
foot on the dangerous path of military expansion, completely 
reversing the modality of Japan's development and use of space which 
has been limited to the nonmilitary field. 
 
The basic program is designed to shift Japan's emphasis from 
research and development in the space area to the use of space. The 
program also lists six basic directions, such as reinforcing 
security by using outer space and nurturing strategic industries. 
 
Many people expressed negative views on the basic program, 
formulated by April by the expert panel. For instance, one said, "If 
this program remains as is, chances are high that Japan will play a 
role of intensifying the global military expansion race in outer 
space." Another expressed opposition, "I am strongly opposed to 
building a system that would eventually allow a country with Article 
9 to intimidate other countries by using force." 
 
14) Lower House election in August now likely, with decision to 
extend Diet session until July 28 
 
MAINICHI (Page 1) (Full) 
June 2, 2009 
 
Prime Minister Taro Aso decided in a meeting with New Komeito 
President Akihiro Ota at the Prime Minister's Office yesterday to 
extend the current Diet session, which is due to end on June 3, for 
55 days until July 28 in order to ensure the passage of key bills 
now on the Diet table. The bills include an antipiracy bill and the 
fiscal 2009 supplementary budget and related bills. The extension 
plan is likely to be approved in a House of Representatives plenary 
session today. Under this plan, it will be possible to hold a Lower 
House election on Sept. 6, just before the Lower House members' term 
runs out. An increasing number of ruling party members now expect 
the election to take place sometime in or after August. 
 
Three voting day options are being discussed. The most likely plan 
is to dissolve the Diet in mid or late July, in order to enact a 
bill revising the Law on Special Measures concerning Taxation, which 
is one of the extra budget-related bills and has already cleared the 
Lower House, and the antipiracy bill. Under this scenario, it will 
be possible to avoid the general election and the Tokyo metropolitan 
assembly election from being held on the same day or dates close to 
each other, in accordance with the New Komeito's desire. The Tokyo 
election is scheduled for July 12. If this plan is adopted, the 
voting day will be Aug. 2 or 9. 
 
There is speculation that Aso aims to face the election after 
obtaining diplomatic results over the Northern Territories and other 
issues in the July 8-10 Group of Eight (G-8) Summit in Italy. But 
the annual Peace Memorial Ceremony for the atomic bomb victims is 
scheduled for Aug. 9 in Nagasaki. An ex-cabinet minister commented: 
"Since the election campaign period will cover the day of the 
memorial ceremony in Hiroshima, this option is inconceivable." 
 
The next option is to dissolve the Lower House on July 28, when the 
Diet session is to recess. Under this option, the election will be 
set for Aug. 30 or Sept. 6. In this case, it will make little 
 
TOKYO 00001230  009 OF 011 
 
 
difference in either the case of a general election resulting from 
Diet dissolution or one resulting from the natural expiration of the 
Lower House members' term. It is also conceivable that calls for 
dumping Aso will grow in the Liberal Democratic Party prior to the 
expiration of his term of office if public support of his government 
drops further. 
 
There is also the possibility of Aso dissolving the Lower House in 
June if the Democratic Party of Japan boycotts deliberations on the 
budget-related bills. But the New Komeito wants to avoid holding the 
general election and the Tokyo election on the same day 
 
15) DPJ getting ready to fight Lower House election 
 
MAINICHI (Page 5) (Full) 
June 2, 2009 
 
The government and ruling parties have decided to extend the current 
Diet session until July 28. In this regard, Ichiro Ozawa, a deputy 
president of the main opposition Democratic Party of Japan (DPJ), 
said: "It is certain that the next general election for the House of 
Representatives will be held by the end of August." The DPJ, 
therefore, has started preparing for the next Lower House election. 
With the political situation following the election in mind, the 
largest opposition party is making efforts to build good relations 
with economic organizations. DPJ President Yukio Hatoyama and 
Secretary General Katsuya Okada are moving their support for their 
party's candidates nationwide into full gear. 
 
Hatoyama told reporters yesterday at party headquarters: "Such 
(lengthy) extension is not necessary. I think (the prime minister) 
probably doesn't want to dissolve the Lower House." He criticized 
Prime Minister Taro Aso's stance of delaying the dissolution of the 
Lower House. 
 
Hatoyama, Okada and DPJ lawmakers responsible for policy making 
attended a meeting yesterday hosted by Japan Business Federation 
(JBF or Nippon Keidanren) Chairman Fujio Mitarai. The JBF held the 
session to discuss policies with the DPJ. The JBF side expressed 
concern that the DPJ's bill amending the Worker Dispatch Law would 
significantly hamper employment opportunities. Osamu Fujimura, the 
DPJ's shadow minister of health, labor and welfare, elaborated on a 
cautious view, saying: "I think our party does not necessarily want 
to pass the bill during the ongoing Diet session." Asked about a 
bill the DPJ submitted to the Lower House yesterday afternoon to 
revise the Political Funds Control, which includes a complete ban on 
corporate donations in three years, Policy Research Committee 
Chairman Masayuki Naoshima explained: "After corporate donations are 
prohibited, we will collect donations from individuals." He also 
said: "We ask for your support for the three-year grace period." 
 
Hatoyama and Okada set off on a stumping tour on May 30 and 31. They 
energetically ran around the Tokyo Metropolitan area. Hatoyama is 
expected to visit Chiba City this week to give a speech to support a 
candidate running in the Chiba mayoral election (on June 14). The 
DPJ aims to consolidate its footing in large cities by winning the 
Chiba mayoral election, following the victory of Nagoya and Saitama 
mayoral races. Appearing on a BS11 digital program yesterday, DPJ 
Diet Affairs Committee Chairman Kenji Yamaoka said: "If we win the 
Chiba mayoral election and the Tokyo Metropolitan Assembly election, 
the power to remove Aso from office will emerge." 
 
 
TOKYO 00001230  010 OF 011 
 
 
Ozawa will spent most of this week stumping in the Kyushu region. He 
plans to travel to isolated islands and mountain areas. 
 
Deputy President Naoto Kan will visit Britain on June 6-10. In order 
to give substance to the DPJ's administrative concept, he will 
conduct field research there focused on relations between the 
bureaucracy and cabinet. He told the press corps yesterday at party 
headquarters: "We will change Japan by replacing the cabinet. We 
want to show the public the meaning of a DPJ-led government." 
 
16) Diet extended until July 28: Final battle toward Lower House 
dissolution 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 2, 2009 
 
Ruling parties pin hopes on economic stimulus package producing 
results 
 
The Aso administration on June 1 decided to extend the Diet session 
until July 28. Prime Minister Taro Aso intends to dissolve the Lower 
House during the extended Diet session. The ruling parties will 
enter a battle on the eve of Lower House dissolution in an effort to 
turn the tide of the upcoming general election in its favor. 
 
The ruling parties are pinning hopes on four sets of economic 
stimulus measures, which the government adopted, producing effects, 
and boosting cabinet support ratings. 
 
Fixed-sum cash handouts will be delivered to residents in urban 
areas, starting this month. Special subsidies designed to revitalize 
local regions will also be handed out after local assemblies pass 
their acceptance. 
 
An eco-point system, under which consumers get points when they 
purchase environment-friendly electronic home appliances and can 
exchange them for commodities or services will start in August. 
Highway tolls will again be discounted to 1,000 yen during the obon 
holidays. The ruling parties are really hoping that the economy will 
turn around with the stimulus packages produce results from now. 
 
If that is the case, it is only natural for them to calculate that 
the longer the pre-election period is, the higher cabinet support 
ratings will rise, as Liberal Democratic Party Election Committee 
Vice Chairman Yoshihide Suga put it. However, whether the economy 
puts on the recovery track is unclear. 
 
On the contrary, the prime minister once again went astray over 
reneging on the division of the Ministry of Health, Labor and 
Welfare, dealing a blow to the ruling parties. 
 
Furthermore, ruling party-affiliated candidates are expected to have 
an uphill fight in the Chiba City mayoral election on the 14th and 
the Tokyo Metropolitan Assembly election on July 12. If the ruling 
parties suffer a deep setback in those elections, the mood in the 
ruling parties would worsen. 
 
DPJ intends to drive mood for Lower House dissolution through speedy 
deliberations 
 
Referring to bills related to the fiscal 2009 extra budget, 
Democratic Party of Japan (DPJ) President Yukio Hatoyama repeatedly 
 
TOKYO 00001230  011 OF 011 
 
 
stressed, "The DPJ will not adopt a strategy of prolonging 
deliberations." He also criticized the substantial extension of the 
Diet session, noting, "It was not necessary to extend the session 
that much." 
 
That is because in the event the DPJ delays deliberations on bills 
related to the extra budget, which include emergency economic 
measures, it would draw criticism from the public. The party also 
intends to bring about  Lower House dissolution at the earliest 
possible date. 
 
A certain senior official pointed out, "There is nothing much to do 
in the extended Diet session. I wonder what the prime minister is 
going to do, once the related bills pass the Diet." This official is 
envisaging a strategy of creating a mood for dissolving the Lower 
House, by creating political vacuum through the prompt handling of 
pending issues. 
 
If the prime minister does not decide to dissolve the Diet soon, the 
DPJ plans to attack him, with Hatoyama saying: "(The prime minister) 
has extended the Diet, just because he did not want to dissolve the 
Lower House. He cannot call an election on his own." 
 
In the meantime, the DPJ is steadily making preparations, including 
the drafting of a manifesto and holding debate on a power shift, 
with the aim of realizing a power transfer in the upcoming Lower 
House election. 
 
In order to give impetus to the Lower House election, it will do its 
utmost to win the Chiba City mayoral election and the Tokyo 
Metropolitan Assembly election. 
 
ZUMWALT