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Viewing cable 09TOKYO1294, JAPANESE MORNING PRESS HIGHLIGHTS 06/10/09

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Reference ID Created Released Classification Origin
09TOKYO1294 2009-06-10 00:23 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO4784
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1294/01 1610023
ZNR UUUUU ZZH
P 100023Z JUN 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3592
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 6817
RUEHFK/AMCONSUL FUKUOKA 4483
RUEHOK/AMCONSUL OSAKA KOBE 8285
RUEHNAG/AMCONSUL NAGOYA 2069
RUEHKSO/AMCONSUL SAPPORO 5012
RUEHBJ/AMEMBASSY BEIJING 9756
RUEHUL/AMEMBASSY SEOUL 5780
RUCNDT/USMISSION USUN NEW YORK 5502
UNCLAS SECTION 01 OF 11 TOKYO 001294 
 
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 06/10/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense and security affairs: 
4) LDP finalizes proposals for new national defense program 
guidelines that include possession of cruise missiles that would 
have capability of preemptive strike  (Sankei) 
5) Past defense chiefs offer their respective advice on whether 
Japan should have an enemy-base strike capability  (Tokyo Shimbun) 
6) LDP security panel comes out against Japan having capability to 
strike enemy bases  (Nikkei) 
 
North Korea problem: 
7) With meeting of seven ambassadors, United Nations Security 
Council headed toward agreement on sanctions content of new 
resolution denouncing North Korea  (Mainichi) 
8) UNSC member China remains opposed to inclusion of obligatory ship 
cargo searches in new Council resolution against North Korea for its 
nuclear test  (Sankei) 
9) Cautious view in Washington about re-listing North Korea as state 
sponsor of terrorism, since such cannot be done due to its missile, 
nuclear tests  (Sankei) 
 
Economic affairs: 
10) Basic balance of state finances will be in the black in 10 
years, premised on a 12 PERCENT  consumption tax rate  (Nikkei) 
11) G-8 finance ministers to meet on June 12 to discuss ways to 
stimulate their economies  (Yomiuri) 
 
12) Russia to start exporting up to 1.5 million tons of wheat to 
Japan (Nikkei) 
 
Political agenda: 
13) Liberal Democratic Party's project team meets to start drafting 
campaign pledges for the Lower House election  (Yomiuri) 
14) Democratic Party of Japan's campaign pledges (manifesto) for the 
election marred by vague sourcing of fiscal resources needed to 
fulfill them  (Nikkei) 
15) Ruling camp puts off setting up constitutional panel until after 
election  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi and Yomiuri: 
12 PERCENT  consumption tax needed for fiscal reconstruction 
 
Mainichi: 
LDP, DPJ in hurry to compile "campaign pledges" for Lower House 
election 
 
Nikkei: 
Central government to allow integration of public service operations 
between municipalities 
 
Sankei: 
North Korea's Kim Jong Un belongs to Supreme Defense Commission 
 
 
TOKYO 00001294  002 OF 011 
 
 
Tokyo Shimbun: 
Government to put off goal of fiscal reconstruction until 2020 
 
Akahata: 
A-bomb disease lawsuit: Government gives up on final appeal 
 
2) EDITORIALS 
 
Asahi: 
(1) Economic, fiscal policy guidelines for FY2009: Why does 
government need to conceal necessity of consumption tax rate? 
(2) Electric cars: Copious gasoline no longer necessary 
 
Mainichi: 
(1) Cluster bombs: We welcome early ratification 
(2) Fiscal reconstruction goal: Fine adjustment of "2007 guidelines" 
is no good 
 
Yomiuri: 
(1) Arms exports: It is time to relax three weapons export 
principles 
(2) A-bomb disease lawsuit: The issue should be solved as quickly as 
possible 
 
Nikkei: 
(1) Prime Minister Aso should not break away from structural 
reforms 
(2) Gulf countries struggling over currency issue 
 
Sankei: 
(1) Fiscal reconstruction goal: Securing discipline for expenditures 
indispensable 
(2) LDP's proposal: The country cannot be defended if defense 
capabilities are cut 
 
Tokyo Shimbun: 
(1) EU election: Concerned about retreat from unification efforts 
(2) Resurging crude oil prices: Government should speed up measures 
to curb market speculation 
 
Akahata: 
(1) DPJ's plan to ban corporate donations: Receiving donations for 
three more years imprudent 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 9 
 
NIKKEI (Page 2) (Full) 
June 10, 2009 
 
09:03 Cabinet meeting in the Diet building. Finance Minister Yosano 
remained. Then met with METI Minister Nikai. 
09:31 Arrived at the Kantei. 
10:54 Met with Environment Minister Saito. 
13:06 Lower House plenary session. 
13:53 Met with Diet Affairs Committee Chairman Oshima. 
14:00 Met with Ryotaro Tanose, chief secretary of the Asia-Pacific 
Parliamentarians' Union Japanese legislative mission, and others. 
15:47 Met with Chairman Shingu of the LDP Fukuoka Prefecture 
Chapter. 
16:06 Met with Vice Foreign Minister Yabunaka, followed by special 
 
TOKYO 00001294  003 OF 011 
 
 
envoy for the prime minister of Bangladesh. 
17:18 Council on Economic and Fiscal Policy meeting. Chief Cabinet 
Secretary Kawamura, Yosano, and Nikai remained. 
18:08 Met with Kawamura. 
18:56 Joint intelligence members' meeting at Grand Arc Hanzomon in 
Hayabusa-cho. 
19:35 Visited the office of a person who is expected to run in the 
Tokyo Metropolitan Assembly election in Shiba-daimon. 
19:54 Visited the office of a person who is expected to run in the 
Tokyo Metropolitan Assembly election in Kita-shinagawa. 
20:17 Visited the office of a person who is expected to run in the 
Tokyo Metropolitan Assembly election in Koyama. 
20:34 Dined with his secretary at Steak House Katsura at Grand 
Prince Hotel Takanawa. 
22:08 Met with his secretary at a cigar bar at the same hotel. 
23:21 Arrived at the official residence. 
 
4) Japan needs ballistic missiles: LDP policy proposal 
 
SANKEI (Page 5) (Full) 
June 10, 2009 
 
The ruling Liberal Democratic Party held a joint meeting of its 
defense-related divisions yesterday and worked out a report of 
policy proposals to the government for its National Defense Program 
Guidelines to be revised late this year. Bearing North Korea in 
mind, the LDP, in its policy proposal paper, says Japan should be 
able to strike the enemy's missile bases, suggesting the need for 
cruise missiles and long-range, solid-fuel ballistic rockets. In 
addition, the policy proposal paper also says the government should 
no longer cut back on its defense spending and should spend more for 
defense. The government has reduced its defense budget since fiscal 
ΒΆ2003. Furthermore, the policy paper urges the government to 
reinterpret the Constitution so that Japan will be allowed to 
exercise the right to collective self-defense in four cases, such as 
intercepting ballistic missiles headed for the United States. 
 
The policy proposal paper was drafted by the LDP's defense policy 
review subcommittee, chaired by Hiroshi Imazu. The LDP will shortly 
present it to Prime Minister Taro Aso and others. However, the focus 
is on how far the government will import the LDP's policy proposals 
into the new defense guidelines. 
 
The LDP, in its policy proposal paper, suggests the need for Japan 
to acquire the capability of striking enemy bases. "Japan's 
neighbors are now more threatening," said Gen Nakatani, who presides 
over the LDP's security panel. Nakatani stressed, "North Korea has 
several hundred Nodong missiles, and there is a financial limit to 
the present missile defense system." 
 
The adopted report of policy proposals is more specific than its 
draft. The policy proposal paper, in its original draft, said Japan 
should be able to strike the enemy's missile sites. In addition, the 
policy proposal paper also suggests the need to strike the enemy's 
bombers and "vehicles, etc.," including missile-carrying trucks. It 
says Japan should have aircraft, cruise missiles, and ballistic 
missiles as means to strike enemy bases. 
 
The LDP held a meeting of former defense chiefs yesterday morning 
before the joint meeting. In that meeting, they voiced their views, 
with one of them saying: "Japan must not cause foreign countries to 
misunderstand." Another said, "There will be an election for the 
 
TOKYO 00001294  004 OF 011 
 
 
House of Representatives, so we should be careful when discussing 
this issue." Former LDP Vice President Taku Yamasaki suggested that 
Japan should not strike first for preemptive action. His suggestion 
was added to the policy proposal paper. 
 
5) Ex-defense chiefs voice concerns about enemy base strike issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 10, 2009 
 
The ruling Liberal Democratic Party yesterday held a meeting of its 
defense division's defense policy subcommittee to hear former 
defense ministers' views over the National Defense Program 
Guidelines to be revised late this year. 
 
Concerning North Korea's nuclear and missile development programs, 
the subcommittee has worked out a report of policy proposals, 
suggesting that Japan should acquire the capability of striking 
enemy bases, such as striking ballistic missile launch pads before 
the enemy launches ballistic missiles. In the hearing, however, 
there were objections from among the former defense chiefs, with one 
of them saying: "We must hold detailed discussions, or we will be 
heading off in a strange direction. That may lead to an argument for 
our going nuclear." 
 
The policy proposal paper was weakened and the original wording 
"striking enemy bases" was rephrased into "striking rear bases." On 
this point as well, questions were raised. 
 
"We should make it clear that Japan will not strike first for 
preventive action." This opinion came from Taku Yamasaki. The 
subcommittee therefore modified the policy proposal paper's wording 
and changed it to "the capability of striking enemy missile bases," 
adding that Japan will "not strike first for preemptive action." 
 
Meanwhile, Hiroshi Imazu, who presides over the subcommittee, 
stated, "When it becomes clear that North Korea will fire at Japan 
with its declaration, then it's within the scope of defense (to 
strike that country's missile bases)." With this, Imazu has 
indicated that striking the enemy's bases in the case where its 
attempt to attack Japan and its action are apparent would not fall 
under the category of striking first. 
 
6) LDP suggests need for cruise missiles to strike enemy bases 
 
NIKKEI (Page 2) (Full) 
June 10, 2009 
 
The ruling Liberal Democratic Party yesterday held a joint meeting 
of its defense and security affairs panels and decided to make 
policy proposals to the government for its National Defense Program 
Guidelines to be revised late this year. In the wake of North 
Korea's recent nuclear and missile tests, the adopted report of 
policy proposals suggests the need for Japan to acquire the 
capability of striking enemy bases with long-range cruise missiles 
or other means. In addition, when it comes to the right to 
collective self-defense, the policy proposal paper says the 
government should reinterpret the Constitution so Japan can exercise 
the right. The LDP plans to submit the policy proposal paper to 
Prime Minister Taro Aso. 
 
The LDP policy proposal paper says the option of striking enemy 
 
TOKYO 00001294  005 OF 011 
 
 
bases is within the scope of Japan's defense-only posture, 
suggesting that the government should consider acquiring the 
capability of striking enemy missile bases. It also suggests that 
Japan should have weapons like Tomahawk cruise missiles so Japan can 
strike the enemy's missile bases, mobile launch pads, and bombers if 
its attempt to attack Japan is apparent. 
 
In the meeting, however, there were strong objections from former 
Defense Agency Director General Taku Yamasaki and former Defense 
Minister Masahiko Komura. In the end, the LDP panels agreed to 
preclude the option of striking first for preemptive action. 
 
7) Final coordination on DPRK sanctions: Seven ambassadors hold 
urgent meeting 
 
MAINICHI (Page 1) (Slightly abridged) 
June 10, 2009 
 
Takayasu Ogura, New York; Shinichi Nishiwaki, Seoul 
 
The five permanent members of the UN Security Council (UNSC), Japan, 
and the ROK held an urgent ambassadorial level meeting on June 9 on 
the resolution to impose additional sanctions on North Korea for its 
latest nuclear test. Final coordination toward an agreement took 
place after China made its response. The final agreement is expected 
to restrict the flow of goods and money by stricter inspection of 
cargo entering and leaving North Korea and the imposition of 
financial sanctions. The ROK's Yonhap News Agency reported on June 9 
that a surprise agreement was reached on the sanction resolution 
with the above contents. If a formal agreement is reached, the 
resolution will be presented to UNSC members on June 10 and is 
expected to be adopted unanimously. 
 
Yonhap cites an informed UN source saying that a final agreement has 
been reached on the resolution. This informed source said: "China 
accepted the final compromise proposals presented by the U.S. and 
the Western countries." The agreement reportedly includes 
comprehensive provisions on ship inspections in international 
waters, financial sanctions on the DPRK, and so forth. 
 
According to a source on the discussions, with regard to the 
question of legal force of the sanctions, the seven nations appear 
to have basically agreed on limiting the sanctions to measures not 
involving the use of armed force under "Chapter 7 (Action with 
respect to threats to the peace) Section 41 of the UN Charter." In 
addition, with regard to the inspection of cargo entering and 
leaving the DPRK, while Resolution 1718 adopted after the last 
nuclear test "calls on all member states to actively implement" 
inspections, the new resolution is expected to provide for stricter 
inspections. At first, Japan and the U.S. had pushed for making this 
an explicit obligation, but the wording will be weakened at China's 
request. 
 
With regard to the arms embargo, which is limited to large weapons 
under Resolution 1718, a decision is likely to be made on banning 
all arms exports from North Korea. In terms of financial sanctions, 
all loans and financial aid to the DPRK, other than those for 
humanitarian purposes, are expected to be suspended. 
 
8) Agreement not reached on new resolution on North Korea due to 
China's resistance to mandatory ship inspections 
 
 
TOKYO 00001294  006 OF 011 
 
 
SANKEI (Page 1) (Full) 
June 10, 2009 
 
Toshiya Matsuo, New York 
 
The UN Security Council, which was aiming to adopt a new sanctions 
resolution following North Korea's second nuclear test on June 9 
held an ambassador-level meeting of seven countries: the five 
permanent members -- the United States, Britain, France, China and 
Russia -- plus Japan and South Korea. The meeting failed to reach a 
final conclusion on the new resolution, including financial 
sanctions on North Korea. 
 
The UNSC had been expected to adopt a sanctions resolution at an 
early time. However, in the process of concretely discussing 
sanctions measures, China balked at a draft sanction led by Japan 
and the United States for fear of possible more reckless actions by 
North Korea. 
 
As a result, the group ended up highlighting its discord 16 days 
after the North's nuclear test. 
 
The group aimed at the adoption of an effective sanctions resolution 
based on UN Resolution 1718 which was adopted after the North 
conducted its first nuclear test in 2006. 
 
During the meeting, China expressed reluctance to allowing cargo 
inspections, saying such would excessively irritate North Korea. 
Japan and the United States insisted on making ship inspections in 
each country's territorial waters mandatory, but China objected to 
it to the end. 
 
Resolution 1718 limits an arms embargo to large weaponry, such as 
missiles and tanks. The group aimed at expanding the scope to 
include all weaponry. It also aimed at an agreement on a direction 
to enhance the effectiveness of existing financial sanctions. 
 
In the process of discussing specific sanctions measures among the 
seven countries, gaps gradually became clear in views between Japan, 
the United States and South Korea, which called for strong 
sanctions, and China and Russia, which insisted on giving priority 
to a political settlement. 
 
Amid growing speculation that North Korea might launch more 
long-range missiles, Pyongyang has warned that if a resolution was 
adopted, it would take a strong extreme action. Attention is focused 
on how the UNSC will react to such an event. 
 
9) Reservations in U.S. on re-designating DPRK as terror sponsor: 
"Missile launch, nuclear test do not meet requirements" 
 
SANKEI (Page 9) (Abridged) 
June 10, 2009 
 
Takashi Arimoto, Washington 
 
U.S. Secretary of State Hillary Clinton has announced the start of 
the process to consider re-designating North Korea as a state 
sponsor of terrorism, but reservations have already been expressed 
by officials in the U.S. administration at this early stage. 
Re-designation will require a judgment that North Korea supported 
terrorism in the past six months. Moreover, Clinton herself had 
 
TOKYO 00001294  007 OF 011 
 
 
expressed a negative view on this in late April. Few people believe 
that DPRK be put back on the list of sponsors of terrorism any time 
soon. 
 
State Department spokesman Ian Kelly discussed the procedures for 
re-designation at a news conference on June 8, saying, "There will 
need to be a very clear procedure to judge that North Korea has been 
supporting international terrorist activities recently," thus 
pointing out the need for new "evidence." 
 
White House spokesman Robert Gibbs also stated at a news conference 
on the same day that: "Secretary Clinton's statement was in response 
to a question on the letter from the senators (seeking the DPRK's 
re-listing). The law is clear. There are several requirements." 
 
As Clinton said during an interview with ABC TV on June 7, "They 
were taken off the list for a purpose (abandonment of nuclear 
programs), and that purpose is being thwarted by their actions," the 
previous Bush administration's concession has ended in failure in 
reality. However, the U.S. government has just removed the DPRK from 
the list last October, so it appears to be reluctant to reinstate it 
after only more than six months. 
 
10) Precondition for achieving surplus in primary balance is hiking 
consumption tax to 12 PERCENT 
 
NIKKEI (Page 1) (Full) 
June 10, 2009 
 
The government's Council on Economic and Fiscal Policy (CEFP) at its 
meeting on June 9 presented draft basic policy guidelines on 
economic and fiscal management and structural reforms for fiscal 
2009 and a fiscal outlook up to the early 2020s. The draft positions 
bringing the primary balances of the central and local governments 
into the black within the next 10 years as one of new fiscal 
discipline targets. It estimates that achieving a surplus in the 
primary balance will mandate a hike in the sales tax to 12 PERCENT . 
The CEFP is expected to formally adopt the basic policy guidelines 
on the 23rd. However, there is a possibility of adjustments of views 
with the ruing camp encountering complications. 
 
The primary balance is an index to see whether policy expenditures 
for the fiscal year can be covered by revenues without issuing new 
debt. The government in 2006 adopted a goal to achieve a surplus by 
fiscal 2011. 
 
As a new basic goal, the draft mentions that the ratio of 
outstanding obligations held by the central and local governments to 
the gross domestic product (GDP) should be stabilized by the mid 
2010s and then lowered by the early 2020. Concerning the primary 
balance, the draft puts up a two-stage goal: (1) halving the ratio 
of debt to the GDP within the next four years; and (2) then 
achieving a surplus within 10 years. 
 
According to the estimate, even when the global economy smoothly 
turns around and the consumption tax rate is raised 7 PERCENT  -- 1 
PERCENT  a year in fiscal 2011 and after - to 12 PERCENT , a surplus 
in the primary balance cannot be achieved before fiscal 2018. If the 
consumption tax rate is to be hiked to 10 PERCENT , achieving a 
surplus will slide into fiscal 2021. 
 
Referring to spending cuts, Kaoru Yosano, who is in charge of 
 
TOKYO 00001294  008 OF 011 
 
 
economic and fiscal policy as well as financial services, told a 
news conference that a policy of constraining an annual increase in 
social security expenditures by 220 billion yen will be kept in 
place for the guidelines for the estimate budget requests for the 
next fiscal year as well. However, he also noted, "We will compile a 
budget, taking the appearance of new social security needs into 
account." 
 
11) G-8 finance ministers to check economic measures in meeting on 
June 12-13 
 
YOMIURI (Page 9) (Slightly abridged) 
June 10, 2009 
 
A meeting of Group of Eight (G-8) finance ministers will be held in 
Lecce, Italy, on June 12-13. The meeting will be a preparatory 
meeting for the G-8 Summit in Italy in July. The finance ministers 
will examine the present state of the global economy, for which 
signs of recovery have begun to appear, and the effects of their 
economic stimulus measures. They are also expected to reaffirm the 
need for cooperation in order to turn around the global economy. 
 
In a press conference after a cabinet meeting yesterday, Finance 
Minister and Economic and Fiscal Policy Minister Kaoru Yosano 
indicated that it will become imperative for the G-8 countries to 
examine the state of progress of their fiscal and financial measures 
and then show their determination to continue such measures. 
 
The global economy began to sink sharply last fall, but the view is 
gaining ground that the economy is emerging from its worst period. 
However, uncertainty still looms over the U.S. economy, and the 
economic crises of Central and Eastern European countries are 
getting more serious. 
 
Concerns are also growing about the possibility that major 
countries' fiscal conditions might worsen as a result of growing 
fiscal disbursements to finance their economic measures. If 
countries continue to raise long-term interest rates, a damper might 
be put on the global economy. In the upcoming meeting, the 
participants are also expected to discuss how each country should 
restore their fiscal discipline after overcoming the economic 
crisis. 
 
12) Russia to export up to 1.5 million tons of wheat a year, 
according to its agriculture ministry 
 
NIKKEI (Page 1) (Full) 
June 10, 2009 
 
Natsuki Kaneko, Moscow 
 
Russian Agriculture Minister Yelena Skrynnik revealed Nihon Keizai 
Shimbun a policy of starting full exports of wheat to Japan. The 
plan is to export up to 1.5 million tons of wheat a year, by 
building an export base in the Russian Far East jointly with leading 
trading companies, such as Itochu Corporation and Sojitz. Its aim is 
to advance into the untapped Asian market, characterizing grain, 
demand for which is expected to expand over the mid- to long-term, 
as strategic export goods. Japan imports wheat from North America 
and Australia. Importing wheat from Russia as well will lead to 
diversifying suppliers. 
 
 
TOKYO 00001294  009 OF 011 
 
 
Skrynnik made those replies in writing. This is the first time for 
her to reply questions asked by any foreign media organizations 
since taking office in March this year. She said that Russian 
agricultural companies are actively pursuing talks with Sumitomo 
Corporation, Sojitz, Mitsubishi Corporation and Itochu Corporation 
on exports of wheat to Asia. 
 
Sojitz and OGO, an agriculture-related company, are planning to 
build an export terminal at Vostochny Port in Nakhodka. Another 
Russian company is also pressing ahead with a similar plan in the 
Far East, teaming up with Itochu Corporation. According to a related 
source, the envisaged terminals will be able to respectively store 
1million tons a year. If the project is put on the track, the 
facilities will be expanded. Skyrnnik also revealed a plan to 
construct an export base at Trojtsa Port in the southern part of 
Primorskii province. 
 
Japan imports roughly 5 million tons of wheat a year, but almost 
nothing from Russia. Characterizing Japan as a promising market for 
Russia, Skrynnik indicated her view that it would be possible to 
export up to 1.5 million tons of quality wheat a year. She also 
indicated a desire to export such to China and Taiwan, as well. 
 
13) LDP's work to formulate manifesto likely to encounter snags; 
Project team experiences difficulty selecting its chair; Tempestuous 
debate expected for consumption tax rate 
 
YOMIURI (Page4) (Abridged) 
June 10, 2009 
 
The Liberal Democratic Party's (LDP) project team (PT) to draft the 
party's manifesto (campaign pledges) for the next House of 
Representatives election held its first executive meeting at party 
headquarters yesterday to begin its work. In the meeting, the team 
decided to swiftly come up with the party's campaign pledges to 
counter the major opposition Democratic Party of Japan (DPJ), which 
aims to take over the reins of government through the next general 
election. Many members think finding points at issue will be 
difficult. At the same time, given the Aso cabinet's sagging support 
ratings, some in the party are calling for putting of the election 
as long as possible. This, too, is likely to cast a shadow over the 
team's work. 
 
The executive meeting selected Election Strategy Council Vice 
Chairman Yoshihide Suga as PT chair. Suga and other PT members are 
scheduled to meet with Prime Minister Taro Aso today to receive his 
instruction about the direction of the manifesto. 
 
The executive meeting was attended by Senior Deputy Secretary 
General Nobuteru Ishihara, former General Council Senior Deputy 
Chairman Hajime Funada, and Upper House Deputy Secretary General 
Akio Sato, in addition to Secretary General Hiroyuki Hosoda, Policy 
Research Council Chairman Kosuke Hori, and Suga. They confirmed a 
policy course to specify a timeframe to implement the policies and 
to produce a complete set of campaign pledges and a summary. 
 
To play up the party's ability to run the government, the envisioned 
manifesto will focus on the provision of a sense of security to the 
public in their livelihoods, centering on an economic recovery and 
social welfare on the domestic front. In the economic area, the 
manifesto will reflect the 2009 basic policies for economic and 
fiscal reform that lay out a path toward regained fiscal health over 
 
TOKYO 00001294  010 OF 011 
 
 
the medium term, giving top priority to turning around the economy. 
On security policy, the team plans to put high priority on the 
Japan-U.S. alliance, North Korean issues, and international 
contributions, which are referred to as the DPJ's Achilles tendon, 
with the aim of pursuing the main opposition party's stance on 
security issues. 
 
The question of the consumption tax rate is expected to be a point 
at issue. The Prime Minister apparently wants to include in the 
manifesto his stock argument of raising the rate in fiscal 2011. 
There is strong opposition to that in the party, which fears that 
the party might be taken as favoring a tax hike. At a party 
executive meeting on June 8, the Prime Minister instructed the party 
to speed up work to formulate its manifesto. An LDP lawmaker said: 
"Our party is certain to have an uphill battle under the current 
situation. Rushing to produce a manifesto might end up giving a 
boost to the election mood." 
 
Initially, Suga, who is close to the Prime Minister, was officially 
selected as the PT chair. But this appointment was later withdrawn 
due to Suga's call for placing restrictions on candidates running 
for hereditary seats in the election. As a result, Secretary General 
Sonoda was tipped but he refused to accept the offer. The team 
eventually settled on Suga. Some think that these twists and turns 
suggest the PT's future. 
 
14) DPJ reveals plan to allocate funds to priority policies first, 
bearing in mind criticism for lacking specifics on how to secure 
fiscal resources 
 
NIKKEI (Page 2) (Full) 
June 10, 2009 
 
The Democratic Party of Japan (DPJ) is hurriedly making preparations 
to be armed with theoretical backing for its manifesto (policy 
platform) for the next House of Representatives election. In an open 
debate of its national conference to build a new Japan yesterday, 
Policy Research Council Chairman Masayuki Naoshima revealed a plan 
to allocate funds to priority policies, such as child-rearing 
support, on a priority basis. The DPJ has been criticized for 
lacking specifics on where fiscal resources will come from. He also 
said that the party would review 70-trillion-yen allocations out of 
the total amount of approximately 209 trillion yen in the general 
and special accounts. Bearing criticism for the lack of details on 
fiscal resources in mind, the main opposition party is also 
examining in which areas taxpayers' money is about to be spent 
wastefully in the main and extra budgets. 
 
Naoshima referred to the issue of fiscal resources at the outset of 
the debate: "We will implement important policies on a top priority 
basis, using our political judgment. Many low-priority policies may 
never be imlemented." This remark came apparently in response to the 
criticism from the ruling side that the DPJ has not clarify how to 
secure funds for measures it has pledged to implement. 
 
No specifics spelled out 
 
The DPJ set up a preparatory committee tasked with working out a 
manifesto, chaired by Naoshima. The panel will start work to select 
priority policies among those presented by departments. Assuming it 
takes over the reins of government, the party estimated last fall 
that 20.5 trillion yen would be needed to implement its policies 
 
TOKYO 00001294  011 OF 011 
 
 
four years after seizing political power. But the party has been 
pressed to give a convincing explanation about how to secure the 
financial resources, as well as a roadmap to translate the policies 
into action. 
 
But in the debate yesterday, Naoshima did not spell out which budget 
allocations should be slashed. He just said that the party will look 
into trimming approximately 70 trillion yen, excluding expenditures 
for pension and other programs that cannot be easily reduced, and 
"squeeze out about 10 trillion yen over years." National Graduate 
Institute for Policy Studies Professor Jun Iio, who chaired the 
debate, said: "Specifically, in which areas subsidies will be cut? 
There might be local governments that lose revenue sources." 
 
Measures to eliminate the waste of taxpayers' money are being 
discussed in the party. In a meeting yesterday of a group to study 
"the budget of a doomed country," Lower House member Seiji Osaka 
indicated his intention to choose unnecessary expenditures in the 
fiscal 2009 supplementary budget, report them to party headquarters, 
and then have the money used to finance new policies. He said: "I 
propose fighting the election by including in our manifesto a 
measure to suspend budget use." 
 
15) Ruling parties decide not to pick members for Lower House 
constitution examination commission 
 
YOMIURI (Page 4) (Full) 
June 10, 2009 
 
The ruling Liberal Democratic Party (LDP) and its coalition partner 
New Komeito decided yesterday not to select during the current Diet 
session the members of the House of Representatives' Constitution 
Examination Commission (shuin-kenpo-shinsakai), even if a bill to 
set regulations for the commission, including the appointment of 50 
members, is adopted tomorrow in a Lower House plenary session. It is 
expected that the panel will start its operation after the next 
Lower House election. 
 
The ruling coalition decided to enact the bill with a majority of 
its lawmakers, judging that if the next general election is held 
before the Diet decides on the regulations for the commission, which 
was established in August, 2007, the responsibility of the 
legislative branch of government will be questioned." 
 
Regarding regulations for the House of Councillors Constitution 
Examination Commission (sanin-kenpo-shinskai), the main opposition 
Democratic Party of Japan (DPJ) has taken a stance of rejecting 
passage of the legislation during the ongoing Diet session. The 
ruling parties predict that since the DPJ will not work on the 
constitutional issue before the Lower House election, they should 
wait the selection of the Lower House panel members until after the 
general election because there is a possibility that the DPJ will 
start working on consolidating environments for setting regulations 
for the Upper House commission. 
 
ZUMWALT