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UNCLAS SECTION 01 OF 14 TOKYO 001255 
 
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 06/05/09 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
4) President Obama's "new beginning" speech in Cairo on Middle East 
policy seen as aimed at isolating extremists in the Muslim world 
(Asahi) 
 
5) Foreign Minister Nakasone, Secretary Clinton in telephone 
conversation agree on need for a strong UNSC resolution on North 
Korea  (Asahi) 
 
6) Japanese Communist Party Chairman Shii cites his letter to 
President Obama praising his Prague speech as "a first step for the 
JCP to grow into a ruling party"   (Sankei) 
 
7) Anti-piracy bill now being marked up in the Upper House  (Asahi) 
 
 
Political agenda: 
8) Prime Minister Aso being showered with criticism from his own 
party for slow policy responses  (Yomiuri) 
9) Important bills are being passed by the Diet despite the odds 
(Tokyo Shimbun) 
10) Liberal Democratic Party (LDP) to delay introduction of the 
restriction on holding heredity seats in the Diet  (Asahi) 
 
11) Nikkei survey or 887 Lower House candidates finds 57 from LDP 
and 6 from Democratic Party of Japan (DPJ) hold hereditary seats 
(Nikkei) 
12) LDP perplexed by the opposition's drive for political reform 
(Nikkei) 
13) One of "Koizumi's children," freshman Lower House LDP lawmaker 
Sugimura, lacking party's backing, will withdraw from the election 
race  (Tokyo Shimbun) 
14) Social Democratic Party wants to file a censure motion against 
Prime Minister Aso, but the DPJ remains reluctant to do so 
(Mainichi) 
15) LDP, DPJ joint panel aim to bring about use of Internet for 
political contributions  (Mainichi) 
16) Approving three of the budget-related bills part of the DPJ's 
election strategy  (Asahi) 
17) Opposition camp comes up with five areas of policy cooperation 
(Yomiuri) 
 
18) Consumer Affairs Agency to be launched in September  (Tokyo 
Shimbun) 
 
Foreign aid: 
19) JICA to set up a system in China for compensation to victims of 
environmental pollution  (Mainichi) 
20) METI to use foreign aid to support businesses in developing 
countries that help the poor  (Nikkei) 
 
21) Japan and China to hold economic talks on intellectual property 
violations  (Sankei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: 
 
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Man jailed for life in Ashikaga murder case freed 
 
Nikkei: 
Health ministry to abolish separate fee reimbursement in medical 
care for elderly aged at 75 or older 
 
Akahata: 
JCP holds 8th central committee convention 
 
2) EDITORIALS 
 
Asahi: 
(1) DNA test freed man jailed for life in Ashikaga murder case 
(2) Prime Minister Aso has responsibility for whether to reappoint 
Japan Post President Nishikawa 
 
Mainichi: 
(1) Ashikaga murder case: Gauge DNA test's merits and demerits 
(2) U.S. and Muslims: Welcome "new beginning" 
 
Yomiuri: 
(1) Appointments require Diet approval: Don't ignore flaws in the 
system 
(2) Ashikaga murder case: Fresh DNA test results open can of legal 
worms 
 
Nikkei: 
(1) Prime Minister Aso must reappoint Nishikawa as Japan Post 
president 
(2) What does acquittal of man jailed for life in Ashikaga murder 
case tell us? 
 
Sankei: 
(1) Increase in fertility rate: Strengthen measures for stable rise 
(2) Need to verity investigations into Ashikaga murder case through 
retrial 
 
Tokyo Shimbun: 
(1) Man jailed for life in Ashikaga murder case must have been freed 
before 
(2) Carbon monoxide poisoning: Preparations needed for invisible 
enemy 
 
Akahata: 
(1) Fiscal reconstruction council lacks reflection on vicious circle 
of crisis 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 4 
 
NIKKEI (Page 2) (Full) 
June 5, 2009 
 
07:49 Took a walk around the official residence. 
10:06 Sorted out papers at his private office in Nagata-cho. 
11:09 Arrived at the official residence. 
11:16 Entered his name in the register book to celebrate the 
birthday of Princess Mikasa in Motoakasaka. 
11:28 Arrived at the Kantei. 
13:00 Met with Finance Minister Yosano in the Diet building. 
14:00 Met with Executive Director Yuji Watanabe of the Japan Finance 
 
TOKYO 00001255  003 OF 014 
 
 
Organization for Municipalities, followed by New Komeito deputy 
chief Hamayotsu. 
15:17 Met with El Salvador Ambassador to Japan Paredes, followed by 
Internal Affairs Minister Sasagawa. 
16:03 Met with Upper House member Yoriko Kawaguchi, co-chairperson 
of the Nonproliferation and Disarmament International Committee, 
followed by Cabinet Intelligence Director Mitani, and Defense 
Ministry Defense Policy Bureau Director General Takamizawa and 
Defense Intelligence Headquarters chief Shimohira. Mitani stayed 
behind. 
17:10 Met with outgoing chairman Yoshifumi Ishizawa and incoming 
chairman Takashi Seike of the Central Federation of Societies of 
Commerce and Industry, followed by Justice Minister Mori. Then met 
informally with those involved in drafting bills related to the 
establishment of a consumer agency. 
19:08 Dined with his secretary at a French restaurant in Yurakucho. 
21:24 Arrived at the official residence. 
 
4) President Obama's speech on a "new beginning" between America and 
Islam aims at isolating extremists in Muslim world 
 
ASAHI (Page 8) (Excerpts) 
June 5, 2009 
 
By Atsuhiro (?) Hirata in Cairo 
 
President Obama in a speech at Cairo University made called for "a 
new beginning between Muslims in the world and America based on 
mutual respect." His speech aimed to ease the anti-American feelings 
that had spread across the Islamic world during the Bush 
administration's terms in office. 
 
Analysis: President Obama's speech proclaims an end of the policies 
of the Bush administration toward the Islamic world. The Bush 
administration, which launched the Iraq war based on unilateralism, 
toppled the Hussein regime with American power. It also condoned in 
effect Israel's expansion of its settlements (in the West Bank and 
Gaza strip). It labeled Iran a part of the "axis of evil." 
 
Such stances deepened distrust of America among Muslims. In an 
opinion survey carried out in 2008 in six Arab states by the 
University of Maryland and Zogby International, 64 PERCENT  of 
respondents said that their impression of America was "very 
unfavorable." 
 
Obama after his inauguration in January gave an interview to Al 
Arabiya, a satellite TV station, in which he stressed the building 
of a new relationship with Arabs and the Islamic world based on 
mutual respect. In April, in Turkey, he gave a speech in which he 
stated that "America is not at war with the Muslim world." The 
speech this time is his third message. 
 
Until now, President Obama's efforts to improve relations have been 
used as policy measures to counter extremists. In Pakistan and 
Afghanistan, regarded as the front line of Obama's battle with 
extremist groups, the Taliban has been cooperating with Al Qaeda. 
Khalil Al-anani, an expert on Islamic extremist groups, points out 
that the reason Al Qaeda has been able to strengthen its activities 
is because of the anti-American feelings harbored among ordinary 
citizens. 
 
Obama's words aim to drive a wedge in between extremist groups and 
 
TOKYO 00001255  004 OF 014 
 
 
ordinary citizens and to isolate those groups. However, there is 
deep-seated caution in the views of Arabs, as one daily pointed out, 
"The distrust toward America will not be removed by words and clever 
arguments but only by swift action." 
 
The U.S. as early as next week will dispatch Special Envoy Mitchell 
to the Middle East to speed up diplomatic efforts. Whether the word 
"change" can be made into a reality in the Muslim world remains to 
be seen. 
 
5) Nakasone, Clinton concur on "strong resolution" on N. Korea 
 
ASAHI (Page 4) (Full) 
June 5, 2009 
 
Foreign Minister Nakasone talked with U.S. Secretary of State 
Clinton over the telephone yesterday evening. Nakasone and Clinton 
confirmed a course of action to aim for a "strong resolution" at the 
United Nations Security Council against North Korea's recent nuclear 
test. According to the Foreign Ministry, Nakasone told Clinton: 
"It's important to adopt the strongest possible resolution promptly, 
including additional sanctions, in order to make them feel that 
provocative actions will be against their interests." 
 
Clinton stated, "We want to cooperate with Japan so we can adopt the 
strongest possible resolution." In the U.N. Security Council, Japan 
and the United States are insisting on incorporating strict 
sanctions in the resolution, while China and Russia are calling for 
the resolution to show a degree of consideration for North Korea. 
 
6) Letter to Obama "a step toward becoming a party that can run 
government": Shii 
 
SANKEI (Page 5) (Abridged) 
June 5, 2009 
 
Kazuo Shii, chair of the Japanese Communist Party, has recently met 
with business community leaders and sent a letter to U.S. President 
Obama to praise his recent Prague speech for nuclear elimination. 
"This is a first but significant step in the process of growing into 
a governing party," Shii said yesterday in the JCP's 8th Central 
Committee Plenum. The JCP has plans to go for a democratic coalition 
government at an early stage of the 21st century and is exploring 
cooperation with other parties through such activities as opposing 
U.S. military bases. 
 
7) Revision talks set for antipiracy bill 
 
ASAHI (Page 4) (Full) 
June 5, 2009 
 
The House of Councillors is now going to deliberate on a 
government-introduced antipiracy bill allowing the Self-Defense 
Forces to escort not only Japanese ships but also foreign ships 
against pirates. The leading opposition Democratic Party of Japan 
(Minshuto) yesterday presented the ruling coalition with a draft 
revision of the legislation and concurred on starting substantive 
deliberations next week. The DPJ's draft revision requires the 
government to ask the Diet for approval before sending out the 
Self-Defense Forces and to establish an antipiracy headquarters 
under the Cabinet Office, as the party proposed in its draft 
revision for deliberations in the House of Representatives. The DPJ 
 
TOKYO 00001255  005 OF 014 
 
 
will respond to taking a vote on the legislation by June 19. 
 
8) LDP thrown in uproar as many members criticizing Aso, leadership 
 
YOMIURI (Page 4) (Abridged slightly) 
June 5, 2009 
 
One after another, members of the Liberal Democratic Party (LDP) 
yesterday criticized Prime Minister Taro Aso and the party leaders 
because Aso and the leadership are unable to promptly deal with such 
issues as whether Japan Post President Yoshibumi Nishikawa should 
reappoint, as well as whether the LDP presidential election should 
be moved up. Many LDP lawmakers have become irritated. 
 
The meeting of the LDP House of Representatives members, held at 
noon yesterday in the Diet building, was thrown into a state of 
confusion by booing and heckling. 
 
Yasuhiro Nakagawa, one of the so-called 'Koizumi children,' who were 
elected for the first time to the Diet in the 2005 Lower House 
election, spoke out loudly about the Nishikawa issue: 
 
"If (Nishikawa) is replaced, a vote of national confidence should be 
sought after the dissolution (of the Lower House). Or (the prime 
minister) should ask Internal Affairs and Communications Minister 
Kunio Hatoyama to resign. The prime minister should choose one 
option." 
 
Masazumi Gotoda emphasized: 
 
"The Democratic Party of Japan (DPJ) has played up its effort to 
bring about a change in government, but we have no message to 
promote our party to the public. I want the party leadership not to 
waver in reaction to the DPJ's policies, and stick to its own 
policies." 
 
With the next general election drawing closer, their criticism of 
the leadership might damage the LDP's image and show its effects in 
the election. Even though, many LDP lawmakers criticized the leaders 
because they are unhappy with "the slow response of the Prime 
Minister's Official Residence (Kantei) and the LDP leadership due to 
the absence of strategists and coordinators in the Kantei and the 
LDP" (junior LDP member). 
 
In addition to junior LDP members, former Secretary General Hidenao 
Nakagawa and former Chief Cabinet Secretary Yasuhisa Shiozaki, who 
have distanced themselves from Aso, began yesterday collecting 
signatures from party members on a resolution calling for a total 
ban on the amakudari (golden parachute) practice, in connection with 
reform of the national civil service system. Nakagawa said: "There 
are 57 advocates." Aso's aide expressed concern, saying: "What they 
are doing is the same thing as criticizing the government-drafted 
bill amending the National Civil Service Law as insufficient." 
 
Factions in the LDP have no influence over them. Nobutaka Machimura, 
who heads a faction, met yesterday with faction member Taku 
Yamamoto, who launched a plan to collect signatures on the idea of 
moving up the LDP presidential race, to ask him to be cautious about 
his action. Yamamoto reportedly did not take Machimura's advice, 
arguing: "This is not campaign to topple the government." 
 
There is a rumor about a shuffle of the cabinet among lawmakers 
 
TOKYO 00001255  006 OF 014 
 
 
close to Aso as a strategy to break the impasse. Their prediction is 
that if Hatoyama and other ministers are replaced by mid-level and 
junior lawmakers, displeasure in the party will be eased and the 
cabinet support rate will increase. 
 
However, a cabinet shuffle might give momentum to the argument to 
replace the prime minister because in a reshuffle all LDP members, 
excluding those who get cabinet posts, would become enemies of Aso. 
A cabinet shuffle while the Diet is in session would be difficult to 
justify. Therefore, Aso "is now reluctant to do so" (Aso aide). All 
the more because many LDP members think that the Aso cabinet has no 
leeway to shuffle as it has suffered low support rates, the idea of 
Aso reshuffling his cabinet is unthinkable. 
 
9) What will the Diet do? - Key bills to pass before end of June; 
Debate on "politics and money" in Lower House 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
June 5, 2009 
 
Shunsuke Shimizu 
 
The House of Representatives passed the bills related to the FY09 
supplementary budget, including the revised Development Bank of 
Japan Law, on the afternoon of June 4. With this, all the major 
bills that Prime Minister Taro Aso had cited as the prerequisite for 
dissolving the Diet have passed the Lower House. The political stage 
will now move to the House of Councillors, and how the opposition is 
going to handle these bills will be the key question. It is now 
believed by some that the supplementary budget-related bills and 
other key legislations may be enacted before the end of June. 
 
In addition to the supplementary budget-related bills, Aso has also 
cited the bills to amend the National Pension Law and the bill on 
antipiracy measures as prerequisites for dissolving the Lower House. 
Of the six budget-related bills, the ruling parties have given up on 
passing the bill on ad hoc special measures to respond to the 
capital market crisis. Deliberation on this has not even taken place 
in the Lower House due to the opposition's resistance. 
 
Deliberations on the revised pension law and the antipiracy bill 
have started at the Upper House on June 2. While the Democratic 
Party of Japan (DPJ) opposes both these bills, the pension bill and 
the antipiracy bill can be enacted with a second vote in the Lower 
House based on the "60-day rule" under the Constitution on or after 
June 16 and 22, respectively. 
 
Of the five supplementary budget-related bills sent to the Upper 
House, the DPJ has already agreed to revisions - except for the tax 
reform bill providing for limited-term reduction of gift tax, etc. 
-- at the Lower House, so it will vote for the bills. 
 
Based on the above, Azuma Koshiishi, chair of the DPJ caucus in the 
Upper House, said smugly at a news conference on June 4: "It is 
quite obvious that the bills on hand can be dealt with before the 
end of June. Go ask Prime Minister Aso what we are supposed to do in 
July." 
 
Meanwhile, at the Lower House, which has finished handling the key 
bills fought over by the ruling and opposition parties, both camps 
are beginning to "attack" the other side's "weak point" on the 
question of "politics and money." 
 
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10) LDP to put off plan to restrict hereditary candidates from 
running in elections 
 
ASAHI (Page 1) (Full) 
June 5, 2009 
 
Tsutomu Takebe, chairman of the Liberal Democratic Party's (LDP) 
Reform Implementation Headquarters, presented in its executive 
meeting at party headquarters yesterday a plan revising its initial 
proposal for restricting hereditary candidates, starting with the 
next general election. The revised plan does not give a timeframe 
for introducing the restrictions. With this decision, momentum for 
introducing the new rules in the LDP is likely to lose steam. 
 
Takebe presented a proposal on May 21 to ban relatives of Diet 
members from running consecutively in the same electoral district as 
first time candidates. With incumbent legislators excluded, only 
Shinjiro Koizumi (Kanagawa No. 11 constituency) , the second son of 
former prime minister Junichiro Koizumi, and Shoichi Usui (Chiba No. 
1 constituency), the eldest son of former Justice Minister Hideo 
Usui, would have been affected by the new rule. 
 
However, several loopholes in the restrictions were pointed out. For 
instance, it would be possible for hereditary candidates to run as 
independents and then to join the LDP after they are elected. In 
addition, hereditary lawmakers in the party raised strong objects to 
hastily introducing the restrictions. 
 
Takebe expects to get approval for the revised plan during a general 
meeting of the reform panel today and report it to Prime Minister 
Taro Aso. He intends to have the party executive decide on when to 
introduce the new rule. 
 
Following the postponement decision, Election Strategy Committee 
Vice Chairman Yoshihide Suga, who has been calling for restrictions 
on hereditary politics, has decided to endorse Koizumi and Usui, 
both of whom have already obtained informal endorsements as the 
party's official candidates. With these two as exceptions, Suga has 
continued coordination on the plan to ban endorsing hereditary 
candidates in the next general election. 
 
However, the LDP has already installed its candidates in most 
constituencies, so new hereditary candidates are unlikely to appear. 
Although Suga intends to set forth the ban on hereditary politics in 
the party's platform for the next general election, the party is 
likely to include the plan in the manifesto for the election after 
the next. 
 
The DPJ has already decided not to endorse hereditary politicians in 
the next election and will surely rap the LDP on this issue in the 
election campaign. 
 
11) Hereditary candidates: 57 to run from LDP, 6 from DPJ 
 
NIKKEI (Page 2) (Full) 
June 5, 2009 
 
A total of 887 candidates (as of June 4) are going to run in the 
next election for the House of Representatives. Among these 
prospective candidates, 124 persons or 39 PERCENT  of those expected 
to run on the ruling Liberal Democratic Party's ticket have a former 
 
TOKYO 00001255  008 OF 014 
 
 
member of the Diet among their relatives within the third degree of 
relationship, the Nihon Keizai Shimbun has found from its survey. In 
the case of the leading opposition Democratic Party of Japan 
(Minshuto), 39 persons or 15 PERCENT  of its prospective candidates 
also have a former lawmaker. 
 
Both the LDP and the DPJ have plans to restrict successive 
hereditary candidates. The LDP has 57 persons or 18 PERCENT  falling 
under this category of successive heredity among its prospective 
candidates. The DPJ has six persons or 2 PERCENT . 
 
Meanwhile, there are also nonsuccessive hereditary candidates 
running from one and the same electoral district like Prime Minister 
Taro Aso. In this category, the LDP has 44 persons or 14 PERCENT , 
while the DPJ has 15 persons or 6 PERCENT . In the case of those 
running from different constituencies like DPJ President Yukio 
Hatoyama, the LDP has 17 candidates or 5 PERCENT , and the DPJ 14 
persons or 5 PERCENT . 
 
12) LDP's political reform policy following a tortuous course over 
questions of hereditary seats, numbers of Diet seats, and political 
funds 
 
NIKKEI (Page 2) (Abridged slightly) 
June 5, 2009 
 
With the next Lower House election approaching, the Liberal 
Democratic Party's (LDP) political reform discussion has begun 
spiraling out of control. A plan to restrict "hereditary seats" is 
likely to be postponed until after the next Lower House election and 
the party is drawing strong protests from its coalition partner, the 
New Komeito. The party's discussions on the question of politics and 
money have made no progress. Ideas laid out by the LDP out of 
rivalry with the major opposition Democratic Party of Japan (DPJ) 
might end up as pie in the sky. 
 
The third-generation group to reform the LDP, composed of mid-level 
and junior LDP lawmakers, decided yesterday to implement the plan to 
restrict "hereditary seats" beginning with the next Lower House 
election. The decision came from a sense of alarm that the LDP might 
not be able to vie with the DPJ, which has already decided to 
introduce restrictions beginning with the next election. 
 
Consequently, LDP Election Strategy Council Chairman Makoto Koga 
accepted the group's request. The LDP's hereditary-seat ratio is 
higher than that of the DPJ. Cautious views, mostly from veteran 
lawmakers, are strong in the LDP. Following the third-generation 
group's meeting, the LDP reform taskforce met and decided not to 
apply restrictions for the next election and not to specify any 
specific timeframe for restrictions in a report to Prime Minister 
Taro Aso. 
 
A study meeting held yesterday by Election Strategy Council Deputy 
Chairman Yoshihide Suga and others also produced a plan prohibiting 
hereditary-seat candidates from becoming electoral branch heads. The 
plan does not apply to Shinjiro Koizumi and Shoichi Usui who are 
already serving as branch heads. This is a desperate measure that 
takes in account both public criticism of hereditary seats and party 
unity. 
 
To reduce the number of Diet seats, the LDP is also studying a plan 
to fix the number at 500 based on a plan to merge the two chambers 
 
TOKYO 00001255  009 OF 014 
 
 
(a total of 722 seats) of the Diet into one. The introduction of a 
unicameral system requires a constitutional amendment. Some LDP 
lawmakers are skeptical about how serious their party is about such 
a plan. 
 
The presence of the New Komeito is an impediment to the plan. Of the 
party's 31 Lower House members, 23 hold proportional representation 
seats. The New Komeito warns that a reduction in the proportional 
representation seats is a matter of life or death for the party. 
"This would dampen our eagerness to cooperate with the LDP in 
election campaigns," a senior New Komeito said. 
 
The DPJ is not trouble-free, either. The party is generally in 
agreement on reducing the numbers of seats both in the lower and 
lower house. The Lower House has come up with a plan to reduce the 
number of proportional representation seats by 80, while the Upper 
House has yet to reach any conclusion. Now that the DPJ has become 
the largest party in the Upper House with tremendous influence, a 
cautious stance exists in the party about embarking on reducing the 
number of seats. At the June 3 general meeting of the DPJ Upper 
House lawmakers, Vice President Toshimi Kitazawa said: "A reduction 
in the number of seats is tantamount to a reduction in the people's 
rights." 
 
In the wake of a Nishimatsu Construction Co. donation scandal, a 
study group composed of LDP and DPJ lawmakers met yesterday and 
produced a set of proposals on donation methods, such as the use of 
Net banking services. "Under the envisaged system, lawmakers will 
not have to take chances regarding corporate donations," Koichi 
Kato, an organizer, explained. But in reality, the LDP heavily 
relies on corporate and organizational donations, and it is lagging 
behind the DPJ, which has presented to the Diet a bill totally 
prohibiting corporate donations in three years' time. The Prime 
Minister, who has instructed the LDP to study reducing the number of 
Diet seats and reforming the Diet, is keeping silent for now. 
 
13) Diet member Sugimura gives up on running in the next Lower House 
election: "Running as independent will only benefit the DPJ" 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 5, 2009 
 
Liberal Democratic Party (LDP) House of Representatives member Taizo 
Sugimura, 29, elected from the proportional representation ticket of 
the Southern Kanto bloc, who had expressed his intention to run in 
the first district of Hokkaido in the next Lower House election, 
held a news conference at the party headquarters on June 4 and 
announced that he was giving up on the plan. The reason given by 
Sugimura was: "Under the present circumstances, the result will be 
very negative, even if I run. Particularly if I run as an 
independent, this will only benefit the Democratic Party of Japan 
(DPJ)." He said that he would support Takeshi Hasegawa, who is 
expected to be named the LDP's official candidate in the first 
district of Hokkaido. 
 
Sugimura won his first Diet seat as the 35th candidate on the LDP 
proportional representation ticket for the Southern Kanto bloc in 
the election over the issue of postal privatization in 2005. He had 
indicated that he intended to run in the next Lower House election 
as an independent. 
 
Tsutomu Takebe, who was LDP secretary general during the 2005 
 
TOKYO 00001255  010 OF 014 
 
 
election, gave the following comments: "I was not consulted, so I am 
really surprised. This might be a good thing for Mr Sugimura's 
future." 
 
14) SDP eager to submit a censure motion against the Prime Minister 
over Japan Post president; DPJ remains cautious 
 
MAINICHI (Page 5) (Full) 
June 5, 2009 
 
Takenori Noguchi, Kuniaki Kinoshita 
 
A plan emerged in the opposition bloc yesterday to submit a censure 
motion against Prime Minister Taro Aso to the House of Councillors 
in the event he allows the reappointment of Yoshifumi Nishikawa as 
president of Japan Post Holdings Co. Social Democratic Party (SDP) 
Secretary General Yasumasa Shigeno requested Democratic Party of 
Japan (DPJ) Secretary General Katsuya Okada to study the option. 
Meanwhile, DPJ Deputy President Naoto Kan expressed cautiousness at 
a press conference yesterday, saying, "We must not make a judgment 
on the Aso cabinet's response with this issue alone." 
 
The secretaries general of the three opposition parties including 
the People's New Party will meet on June 8 to discuss the handling 
of a censure motion against the Prime Minister. DPJ President Yukio 
Hatoyama simply said to the press corps in Tokyo yesterday: "It all 
depends on (the Prime Minister's) conclusion. We are not at a stage 
to mention censuring him." 
 
Meanwhile, there was a meeting of LDP Lower House members yesterday 
in which some junior members voiced criticism of Internal Affairs 
and Communications Minister Kunio Hatoyama, who is strongly opposed 
to Nishikawa's reappointment. 
 
At the meeting, Yasuhiro Nakagawa said: "If the Cabinet is to change 
the designation committee's decision, Prime Minister Aso should 
decide either to dissolve (the Lower House) to seek popular will or 
to let Communications Minister (Kunio) Hatoyama step down." 
 
Nakagawa is one of the so-called Koizumi's children who won Lower 
House seats for the first time in the 2005 election. Former 
Agriculture, Forestry, and Fisheries Minister Seiichi Ota rebutted 
Nakagawa, "In terms of governance, the cabinet minister in charge of 
the matter should make a decision." 
 
15) LDP, DPJ likeminded group eyes Net donation system 
 
MAINICHI (Page 5) (Abridged slightly) 
June 5, 2009 
 
Daisuke Nohara 
 
A group of lawmakers of the ruling Liberal Democratic Party (LDP) 
and the major opposition Democratic Party of Japan (DPJ) who are 
aiming at an expansion of individual donations held a study meeting 
in the Diet building yesterday. As a result, they decided to ask the 
financial industry and other industries to study a system allowing 
individuals to easily make donations by using the Internet. The 
joint effort by the two political parties that are at loggerheads 
over corporate and organizational donations is likely to draw 
attention. 
 
 
TOKYO 00001255  011 OF 014 
 
 
The members include former LDP Secretary General Koichi Kato, 
Election Strategy Council Deputy Chairman Yoshihide Suga, DPJ Deputy 
President Naoto Kan and DPJ Vice President Seiji Maehara. The group 
plans to recruit more supporters to recommend to the credit and 
banking industries a donation system of five approaches, such as 
using Net banking services and settling accounts with credit cards. 
 
In the wake of a Nishimatsu Construction Co. donation scandal, the 
question of politics and money has merged. The group apparently 
wants to speedily spread an individual donation system. But in 
Japan, individual donations are not common. Further, individual 
donations are likely to result in an increase in small-amount 
account settlements, which financial institutions are reportedly 
reluctant to handle. 
 
16) DPJ intends to quickly enact bills as strategy to press for 
early Diet dissolution 
 
ASAHI (Page 4) (Excerpts) 
June 5, 2009 
 
Three bills related to the fiscal 2009 supplementary budget cleared 
the House of Representatives yesterday. Deliberations on these bills 
will start in the opposition-controlled House of Councillors. The 
Democratic Party of Japan (DPJ) intends to smoothly dispose of key 
bills in seeking an early dissolution of the Lower House for a snap 
election. With an eye on the next general election, the main 
opposition party is considering adopting a censure motion against 
Prime Minister Taro Aso in the Upper House in the final phase of the 
session, aiming to demonstrate a confrontational stance. 
 
Of the six extra budget-related bills, five have already passed the 
Lower House as of yesterday. Passing the remaining capital market 
crisis measures bill may be difficult due to opposition from the 
DPJ. 
 
In the current Diet session that has been extended through July 28, 
the DPJ has adopted a strategy of enacting pending bills quickly and 
calling for Diet dissolution at an early date. Azuma Koshiishi, 
chairman of the DPJ Caucus in the Upper House, said in a press 
conference: "(Deliberations) on the bills are expected to end in 
June." Deputy President Naoto Kan also said: "We will strongly call 
on the government to dissolve the Lower House in June and hold the 
election in July." 
 
The DPJ executive members anticipate that if the supplementary 
budget-related bills and the antipiracy bills are enacted in June, 
since the Diet session will be in recess in July, an increasing 
number of people will call for Diet dissolution. 
 
Even if the session is adjourned without dissolution, local 
elections are scheduled after the session, including the Tokyo 
metropolitan assembly election on July 12, as the preliminary 
elections for the Lower House election. Senior DPJ members expect 
that, with its victories in these elections, the party will gain 
more opportunities to press Aso to dissolve the Lower House. 
 
17) DPJ and PNP decide on outline of five common policies for the 
opposition 
 
YOMIURI (Page 4) (Abridged) 
June 5, 2009 
 
TOKYO 00001255  012 OF 014 
 
 
 
The Democratic Party of Japan (DPJ) and the People's New Party (PNP) 
decided on the outline of their "common policies" for the next House 
of Representatives election on June 4. They plan to soon start 
working level consultations that will also involve the Social 
Democratic Party (SDP). But the SDP, concerned about being 
overshadowed (by the DPJ and the PNP), is still cautious, so 
prospects for the consultations remain uncertain. 
 
The common policies will be about: (1) maintaining the current 
consumption tax rate; (2) review of postal privatization; (3) 
medical insurance system for those who are 75 years old or above; 
(4) safety net for securing employment; and (5) free senior high 
school education. They regard these as the priority issues for the 
new coalition government if a change of administration is achieved 
after the next Lower House election. 
 
The two parties narrowed down the common policies to five to make it 
easier for the SDP, which attaches great importance to its 
independence, to participate. 
 
For example, review of postal privatization is a policy on which the 
PNP has already signed a separate agreement with the DPJ and the 
SDP. With regard to the consumption tax rate, DPJ President Yukio 
Hatoyama has stated that, "There is no need to discuss this in the 
next four years." As to medical insurance for senior citizens, the 
three parties, plus the Japanese Communist Party, have previously 
submitted a bill to the Diet that would abolish this system. 
 
Meanwhile, issues on which the DPJ and the SDP differ, such as 
foreign and security policies, are not included among the common 
policies. There is dissatisfaction in the DPJ about this. "What is 
the use of common policies which do not show a blueprint of the 
country and the basis for running the administration, such as 
foreign and security policy?" (junior DPJ member). 
 
18) PM Aso to launch Consumer Affairs Agency in September 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 5, 2009 
 
At an informal meeting with officials involved with the law on 
creating the Consumer Affairs Agency at the Prime Minister's Office 
Residence on June 4, Prime Minister Taro Aso stated that he wants to 
launch the agency "in September." 
 
Aso also said: "The job of an organization is not done merely with 
its creation. It cannot claim to have accomplished its mission if it 
does not produce results. It should function in a manner meeting the 
people's expectations." 
 
The Cabinet Office opened an office to prepare for the agency's 
launch on June 4. State Minister for Consumer Affairs Seiko Noda 
personally put up its signboard. 
 
19) JICA to cooperate with China in setting up pollution 
compensation system 
 
MAINICHI (Page 1) (Full) 
June 5, 2009 
 
Pollution in China is becoming serious as its economy develops. 
 
TOKYO 00001255  013 OF 014 
 
 
Mainichi Shimbun learned on June 4 that in response to the 
situation, the Japan International Cooperation Agency (JICA) and the 
Chinese government had agreed to cooperate for the establishment of 
a compensation system targeting pollution victims in China. Since 
China has no system of compensating pollution victims, many victims 
just have to bear it, even if their health deteriorates. This has 
become a social problem. The Japanese side will provide training to 
China on the know-how of setting up a compensation system, based on 
its experience of adopting measures against pollution during the 
high-speed economic growth period. There has been technical 
cooperation on pollution between the two countries. However, this is 
the first cooperation for them to cooperate for the relief of 
pollution victims. 
 
The governments of Japan and China will vow to cooperate with each 
other during the Japan-China High-Level Economic Dialogue to be held 
in Tokyo on the 7th. JICA and the Chinese Environmental Protection 
Ministry will then formally reach an agreement on the 13th. 
 
Cooperation is expected to continue for three years starting in 
September. JICA will invite 30 Chinese officials in charge and 
researchers - 10 each year, to provide training on Japan's measures 
to deal with pollution, such as the Minamata disease and air 
pollution along the Nishiyodo River in Osaka, a law that mandates 
industrial polluters to compensate victims and the pollution dispute 
settlement system. Japan will also dispatch experts to China to give 
seminars on the setting up of a compensation system. 
 
According to the World Bank, the damage caused by air and water 
pollutions reportedly totaled 781 billion yuan at the most in China, 
accounting for 5.8 PERCENT  of its GDP. In China, there have 
appeared many "cancer villages," which are presumably ascribable to 
pollution. The point has also been made that oxidase smog and acid 
rain in Japan are caused by pollution coming from China. 
 
A Japanese government source explained: "The fact that the Chinese 
government is considering setting up a pollution compensation system 
reflects that its awareness that the environmental issue has 
worsened. Promoting measures against pollution through cooperation 
will also reduce its impact on Japan." 
 
20) METI to offer financial aid with ODA funds for businesses 
intended for poor people in developing countries 
 
NIKKEI (Page 5) (Full) 
June 5, 2009 
 
The Ministry of Economy, Trade and Industry (METI) has decided to 
support Japanese firms' businesses intended to serve poor people in 
developing countries. It plans to conduct local surveys on 
commodities and services that are low-priced but help improve their 
living standards as a step to boost their sales. It also plans to 
offer financial aid with official development assistance (ODA) funds 
for companies. The ministry will back Japanese firms aiming at 
exploring the Bottom of Pyramid (BOP) market in the world. 
 
METI will select recipients from among the applicants to be soon 
collected and sell products in great demand on a trial basis. Under 
this project, the government and the private-sector will jointly the 
whole process covering from market survey to sale while also making 
use of technical assistance from the Japan International Cooperation 
Agency (JICA). The ministry is also willing to introduce tax 
 
TOKYO 00001255  014 OF 014 
 
 
incentives. 
 
Businesses for the group of impoverished people aim at reducing 
poverty and pursuing market gain in developing countries. There is 
also an advantage of exploiting markets with potential. 
 
21) Japan-China economic dialogue: Japan to call on China to 
strengthen measures to deal with infringement on intellectual 
property rights 
 
SANKEI (Page 9) (Full) 
June 5, 2009 
 
Japan and China will hold on June 7 a high-level economic dialogue 
in Tokyo to confer on a wide range of matters, including easing 
financial regulations in addition to trade and environment issues. 
Japan is expected to ask China to withdraw its plan to implement the 
China Compulsory Certification (CCC) system concerning information 
technology on foreign-made products. Japan will also ask China to 
step up measures to deal with infringements on intellectual property 
rights involving copies of brand-name products. 
 
Both countries are expected to reach an agreement to discuss 
measures to deal with copied products and infringements on 
registered trademarks targeting Japanese companies by setting up a 
cross-sectional taskforce. 
 
In the financial area, both countries will likely agree to promote 
liberalization of China's financial market. In an effort to further 
strengthen bilateral economic relations through enhanced financial 
transactions, Japan and China will focus on such issues as listing 
Japan's financial products on the Chinese market at a working-level 
meeting. 
 
The Chinese government is strengthening restrictions on exports of 
domestically-produced rare metals. Japan will ask China to ease such 
regulations. 
 
Japan and China will also confirm their commitment to aim at an 
early settlement of new multilateral trade talks (Doha Round) at the 
World Trade Organization (WTO), which are encountering 
complications. Measures to curb global warming and strengthening 
cooperation in the tourism area will also be on the agenda. 
 
ZUMWALT