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Viewing cable 09TOKYO1406, JAPANESE MORNING PRESS HIGHLIGHTS 06/23/09

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Reference ID Created Released Classification Origin
09TOKYO1406 2009-06-23 00:15 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6279
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1406/01 1740015
ZNR UUUUU ZZH
P 230015Z JUN 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3967
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 7107
RUEHFK/AMCONSUL FUKUOKA 4775
RUEHOK/AMCONSUL OSAKA KOBE 8578
RUEHNAG/AMCONSUL NAGOYA 2331
RUEHKSO/AMCONSUL SAPPORO 5301
RUEHBJ/AMEMBASSY BEIJING 0020
RUEHUL/AMEMBASSY SEOUL 6051
RUCNDT/USMISSION USUN NEW YORK 5744
UNCLAS SECTION 01 OF 09 TOKYO 001406 
 
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 06/23/09 
 
Index: 
 
Political agenda: 
1) Sankei poll: Aso Cabinet support rate plummets 9.5 points to 17.8 
PERCENT , with Democratic Party of Japan now 20 points ahead of LDP 
as election favorite  (Sankei) 
2) Prime Minister Aso decides to retain controversial president of 
Japan Post, despite public mood against it  (Yomiuri) 
3) Decision by Aso to keep Nishikawa as head of Japan Post weakens 
his hold on the party, since many are opposed to the reappointment 
(Asahi) 
4) Aso rejects notion of advancing the date for the LDP presidential 
election  (Yomiuri) 
 
Defense and security affairs: 
5) Japan Coast Guard notified by DPRK of a military exercise at sea 
June 25-July 10  (Mainichi) 
6) MSDF likely to be used for ship searches under new law  (Yomiuri) 
 
7) Defense budget portion of the 2009 "big-boned" economic policy 
guidelines calls for funds to respond to North Korea's missile, 
nuclear programs  (Sankei) 
8) "Sympathy budget" (host nation support): Over 2 trillion yen for 
U.S. base construction projects over 30 years, including housing, 
leisure facilities, berthing for carrier  (Akahata) 
 
9) Prime Minister Aso in meeting with Russian senior official pushes 
territorial issue  (Mainichi) 
 
10) IWC meeting starts: Japan planning to continue research whaling, 
advocates restart of coastal whaling  (Mainichi) 
 
11) Japan's exports to China expanding nicely  (Mainichi) 
 
12) Cabinet to adopt "big-boned" economic policy guidelines today 
(Sankei) 
 
Articles: 
 
1) Sankei-FNN poll: DPJ 20 points ahead of LDP in proportional 
representation format; Cabinet's support rate plunges to 17.5 
PERCENT 
 
SANKEI (Page 1) (Excerpts) 
June 23, 2009 
 
The Sankei Shimbun and Fuji News Network (FNN) conducted a joint 
opinion poll on June 20-21 asking people which party they will vote 
for in the proportional representation segment in the next House of 
Representative election. The results showed that the major 
opposition Democratic Party of Japan (DPJ) marked 45.9 PERCENT , 
which was 20.7 points over the Liberal Democratic Party's (LDP) 25.2 
PERCENT . The difference increased beyond the 13.9-point difference 
marked in the previous survey, conducted on May 17 immediately after 
Yukio Hatoyama became DPJ president. The DPJ is clearly ahead of the 
LDP with the next Lower House election approaching. 
 
The rate of support for the cabinet of Prime Minister Taro Aso was 
17.5 PERCENT , down 9.9 points from the previous survey. Meanwhile, 
the disapproval rate for the cabinet increased 11.8 points to 72.9 
PERCENT . The support rating had temporarily surged after it fell 
below 20 PERCENT  in the January-March period this year. But it has 
 
TOKYO 00001406  002 OF 009 
 
 
now again reentered the danger zone of the 10 percent level. 
 
Asked about the Prime Minister's decision to dismiss Kunio Hatoyama 
as internal affairs and communications minister over the 
reappointment of Yoshifumi Nishikawa as Japan Postal Holdings Co. 
president, a mere 20.2 PERCENT  of respondents said it was 
appropriate, and 62.2 PERCENT  said Hatoyama's assertion was 
convincing. Some 75.0 PERCENT  said Nishikawa should not remain in 
his post. 
 
Positive evaluations of Hatoyama rose sharply in comparison to Prime 
Minister Aso, as seen by the fact that 57.3 PERCENT  described him 
as trustworthy in contrast to Aso's 22.7 PERCENT . In the previous 
survey, the two were neck-and-neck with both of them marking the 30 
PERCENT  level. Asked who is appropriate to become the prime 
minister, 19.8 PERCENT  pointed to Aso, far lower than Hatoyama's 
51.6 PERCENT . About 62.1 PERCENT  said Hatoyama is good at debates 
in comparison to Aso's 21.9 PERCENT . 
 
Asked if the outcome of the July 12 Tokyo assembly election will 
result in the resignation of Aso to take responsibility, 54.6 
PERCENT  said "yes" and 37.2 PERCENT  said "no." 
 
2) Prime Minister Aso authorizes reappointment of Japan Post 
President Nishikawa 
 
YOMIURI (Top play) (Excerpts) 
June 23, 2009 
 
Prime Minister Taro Aso yesterday basically authorized Internal 
Affairs and Communications Minister Tsutomu Sato's decision to have 
Japan Post Holdings Co. President Yoshifumi Nishikawa continue 
serving in his post. Aso was informed by Sato that Japan Post had 
admitted the responsibility of its executives for an abortive plan 
to sell the Kampo no Yado resort inn network (to the Orix Corp 
group) and that Nishikawa offered to give up 30 percent of his pay 
over the next three months as a disciplinary measure. Aso approved 
of Japan Post's disciplinary measures. It is now expected that the 
reappointment of the Japan Post president will be resolved by the 
replacement of Internal Affairs and Communications Minister Kunio 
Hatoyama and the reappointment of Nishikawa as president of Japan 
Post. 
 
After meeting yesterday with Aso at the Prime Minister's Official 
Residence (Kantei), Sato met with Nishikawa at his ministry and 
received explanations about the disciplinary measures against Japan 
Post executives. He again reported them to Aso. After that, he told 
reporters: "As I obtained approval from the finance minister and 
chief cabinet secretary, I have made the decision based on that 
approval." Asked by whether Aso gave approval of the decision to let 
Nishikawa continue to serve in his post, Sato said: "Eventually, he 
did so." 
 
Following this, Japan Post will submit on June 24 to the Internal 
Affairs and Communications Ministry a final replay to its order to 
business improvement and propose the reappointment of nine 
executives to a shareholders meeting on June 29. After a 
representative of the government, which holds Japan Post's all 
shares, gives approval, the company will apply for authorization 
from the minister and receive authorization. 
 
3) Aso's hold over party seriously damaged by his decision to 
 
TOKYO 00001406  003 OF 009 
 
 
approve reappointment of Nishikawa as Japan Post president 
 
ASAHI (Page 4) (Abridged slightly) 
June 23, 2009 
 
Hisanori Imamura, Masaki Hashida 
 
The issue of whether Japan Post Holdings Co. President Yoshifumi 
Nishikawa should be reappointed, which had created a serious 
confrontation between Prime Minister Taro Aso and former Internal 
Affairs and Communications Minister Kunio Hatoyama, was finally 
resolved yesterday, a week before a Japan Post shareholders meeting. 
In an attempt to avoid discord in his Liberal Democratic Party (LDP) 
and a possibility that business leaders will distance themselves 
from the LDP, Aso decided to authorize the proposed reappointment of 
Nishikawa. But in so doing, he may have lost his grip on the party. 
 
"What about disciplinary measures?" Internal Affairs and 
Communications Minister Tsutomu Sato asked Nishikawa yesterday 
evening, learning that a business improvement report Nishikawa 
presented to him did not include disciplinary measures. Nishikawa 
then explained the disciplinary measures, including one against 
himself. 
 
Although Sato had reported the outline of the report to Aso and 
obtained his approval, he conveyed anew the contents of the 
punishments to Aso after his meeting with Nishikawa. Aso reportedly 
said: "Well, (the punishments) were presented." 
 
Although Sato, during the week since he took office, investigated as 
to whether Nishikawa had violated any law, he could not find 
anything. Therefore, there was no reason for him to reject 
Nishikawa's reappointment. 
 
Aso has been determined to reappoint Nishikawa after he sacked 
Hatoyama. In the party-heads debate on June 17, Democratic Party of 
Japan (DPJ) President Yukio Hatoyama said that he would dismiss 
Nishikawa if his party took the reins of government, but Aso said: 
"The government should be very careful about whether it should 
interfere in (personnel changes) backed by the public opinion." A 
cabinet minister close to Aso said; "If he dismissed Nishikawa, 
there would be no meaning for him to have removed Hatoyama from his 
cabinet." As Aso's aide said, if he had Nishikawa resign, he would 
have come under criticism for the inconsistency with the replacement 
of Hatoyama. 
 
In the LDP, Machimura faction senior members, including former Prime 
Minister Yoshiro Mori, called for Nishikawa's resignation. However, 
Yoshihide Suga, former internal affairs and communication minister, 
supported the reappointment of Nishikawa. It was expected that 
internal discord would deepen because the LDP group promoting postal 
privatization, including former Prime Minister Junichiro Koizumi and 
former Secretary General Hidenao Nakagawa, would strengthen power if 
Aso sacked Nishikawa. 
 
Although Aso was able to resolve the issue at the 11th hour, he 
failed to fulfill his leadership responsibility, accelerating the 
move of party members distancing themselves from him. 
 
4) Prime Minister Aso denies possibility of holding LDP presidential 
election early 
 
 
TOKYO 00001406  004 OF 009 
 
 
YOMIURI (Page 4) (Excerpts) 
June 23, 2009 
 
Although there is a move to carry out the presidential election of 
the Liberal Democratic Party (LDP) earlier than when it is scheduled 
in September, Prime Minister Taro Aso clarified that he had no 
intention of moving up the LDP presidential race. For the reason 
that it is believed that implementing the presidential race earlier 
than the planned is an effort to "oust Aso," Aso appears to have 
sought to contain such a move. 
 
Aso told the press corps at the Prime Minister's Official Residence 
(Kantei): "I have heard that there are various views, such as that 
the presidential election should be moved up. I, however, have no 
such intention." Chief Cabinet Secretary Takeo Kawamura also stated 
in a press conference yesterday: "The LDP should not lose confidence 
and pride in the fact that we have done things under the party 
president, who was elected by an overwhelming majority." 
 
Meanwhile, House of Representatives member Taku Yamamoto, who has 
been collecting signatures of LDP lawmakers in order to bring 
forward the election, revealed a interim counting that 108 members 
favored the move - 82 LDP members having signed and 26 having 
conveyed their approval by phone. 
 
Koichi Kato, former LDP secretary general, told reporters yesterday 
in the Diet building: "LDP Lawmakers are like magma ready to erupt. 
Frustrations are spreading among LDP members as the public support 
rates for the LDP have dropped." 
 
Article 6 of the LDP regulation stipulates that moving up the 
presidential election is possible if a majority (216) of Diet 
members (384, excluding the Lower House speaker and Upper House vice 
president) and representatives of the LDP prefectural chapters (47) 
request such an action before the term of the presidency expires. 
 
5) North Korea informs JCG of its plan to conduct live-fire drills 
from June 25 through July 10 
 
MAINICHI (Page 2) (Full) 
June 23, 2009 
 
Kiyoshi Ishihara 
 
The Japan Coast Guard (JCG) received yesterday afternoon an email 
from North Korea informing that the country will conduct live-fire 
drills on the east coast of the Korean Peninsula. Receiving the 
notice, the JCG issued at 5:48 p.m. navigation warnings setting an 
off-limits area. The North issued navigation warnings about the 
eastern coast on June 7 and 17 as well. But this is the first time 
that the country has clarified its purpose. 
 
According to North Korea's notice, the country will conduct 
live-fire drills between 8 a.m. and 8 p.m. every day from June 25 
through July 10, Japan time, in an oceanic area 450 km long and up 
to 110 km wide, including international waters, northeast of Wonsan 
on the eastern coast. 
 
6) Government, ruling parties studying use of MSDF to be ready for 
unexpected events during cargo inspections 
 
YOMIURI (Page 4) (Abridged slightly) 
 
TOKYO 00001406  005 OF 009 
 
 
June 23, 2009 
 
The government and the ruling parties are working on drafting a ship 
inspections special measures bill as a response to the UN Security 
Council's adoption of Resolution 1874 on North Korea. Although they 
are planning to submit a bill to the Diet shortly, there are many 
points at issue, such as which organization will conduct cargo 
inspections. 
 
The government intends to have the Japan Coast Guard (JCG) carry out 
the inspections. The reason is because the JCG is easy to obtain the 
opposition bloc's approval with the close of the Diet session 
approaching. But the Liberal Democratic Party (LDP) is calling for 
the use of the Maritime Self-Defense Force (MSDF). A former cabinet 
minister pointed out the need to be prepared for unexpected events, 
such as an exchange of gunfire. The LDP apparently also wants to 
draw a distinction with the opposition parties for the sake of the 
next Lower House election. 
 
An idea is also afloat between the government and the ruling parties 
to use the MSDF only in situations that are beyond the JCG's 
control. 
 
Under the UN Security Council resolution, obtaining the consent of 
the flag state is a prerequisite for conducting ship inspections. 
The government plans to add the consent of a ship's captain to this 
requirement to reduce the ship's resistance. This point has not been 
settled, as there is an opinion in the LDP that inspections need to 
have binding power. 
 
What to do with embargoed items that are found in inspections is 
also a challenge. Under the UNSC resolution, such items must be 
confiscated and disposed of. But doing so might be an infringement 
of property rights. The government is studying a step to keep such 
items rather than disposing of them immediately. 
 
The government pressed the UNSC hard for a strong resolution in 
reaction to North Korea's nuclear test. As such, the government is 
determined to enact the cargo inspection legislation to keep Japan's 
face in the international community. 
 
7) Basic policy guidelines for fiscal 2009 budget to mention need to 
deal with North Korea, leaving room for budget increase 
 
SANKEI (Top Play) (Excerpts) 
June 23, 2009 
 
The government on June 22 decided to mention measures to deal with 
missile launches and nuclear tests by North Korea in the defense 
budget in the basic policy guidelines on economic and fiscal 
management and structural reforms for the fiscal 2009 national 
budget. This marks the first time for the government to mention 
North Korea by name as a country which Japan needs to deal with. The 
basic policy guidelines also refer to the importance of the 
personnel side of the Self-Defense Forces (SDF), which continue to 
fall below the quota. Wording stating that efforts will be made to 
establish a truly necessary defense production and technology base 
has been incorporated, leaving room for a switch from the trend of 
cutting the defense budget, which has been in place from the fiscal 
2003 budget. 
 
The final draft of the basic policy guidelines for the fiscal 2009 
 
TOKYO 00001406  006 OF 009 
 
 
national budget for the first time included a section dedicated to 
defense matters. Last year's guidelines carried words "ballistic 
missile." However, specific wording, "the nation will properly deal 
with the security environment, which is becoming increasingly severe 
due to missile launches and nuclear tests by North Korea," has been 
incorporated this year. The government has thus clarified a stance 
of pressing ahead with the building of a missile defense (MD) system 
with North Korea in mind. 
 
The revised basic policy guidelines also include measures for the 
diversification and globalization of SDF duties. To achieve this 
end, the guidelines note that the government will move ahead with 
efforts to revise the National Defense Program Guidelines, while 
giving consideration to the importance of the personnel side and 
intelligence functions of the SDF, and steadily promote the 
consolidation of efficient defense capability in harmony with 
various government measures. 
 
The steady implementation of measures related to the realignment of 
U.S. Forces in Japan has also been incorporated. For the reform of 
defense-related procurement, wording stating that efforts should be 
made to establish a truly necessary defense production and 
technology base, under selection and concentration approaches, has 
been added. Consideration has thus been given to the defense 
industry, which is being affected by cuts in the defense budget. 
 
The past basic policy guidelines did not give priority to the 
defense budget, as is evidenced by it being mentioned in the same 
section as public security and measures to deal with natural 
disasters. 
 
Since changes in the international situation had not been reflected, 
the defense budget had suffered cuts for seven consecutive years 
since the fiscal 2003 budget. The defense budget for fiscal 2009 
stood at 4.774 trillion yen. 
 
8) 30 years of "sympathy" budget: Over 2 trillion yen spent on U.S. 
military base improvement 
 
AKAHATA (Top play) (Full) 
June 23, 2009 
 
It has been found that of the "sympathy" budget (host nation 
support) for U.S. Forces Japan (USFJ) - which Japan is not even 
obliged to pay for under the Japan-U.S. Status of Forces Agreement 
-- some 2.1283 trillion yen have been spent for the construction of 
bases (under the Facilities Improvement Program, FIP) in the 30 
years from FY1979 up to FY2008. This is based on documents provided 
by the Ministry of Defense to the Japanese Communist Party, budget 
request documents, and other data. A total of 12,872 construction 
and renovation projects took place at 66 U.S. military bases in 
Japan. 
 
The Japanese government will continue construction work on the 
bases. In addition to the "sympathy" budget, it will shoulder the 
cost for building the marine base in Guam, extending its 
construction work for U.S. military bases overseas. 
 
A breakdown of the figures shows that 11,363 housing units for 
military families and 230 barracks were built. Housing-related 
projects made up around 90 percent of the total. The construction 
cost alone for one housing unit was approximately 48 million yen, 
 
TOKYO 00001406  007 OF 009 
 
 
which is much higher than an average Japanese house. In addition, 
there were 68 construction projects relating to schools, 
recreational facilities, hospitals, sports fields, repair shops for 
ships and aircraft, hangars, blastproof shelters, runways, berths 
for nuclear-powered aircraft carriers, and so forth. 
 
By military base, the U.S. Air Force's Misawa Base (Aomori 
Prefecture) tops the list with 2,214 projects. In terms of funding, 
the U.S. Marine base in Iwakuni (Yamaguchi Prefecture) marked the 
highest amount of 352 billion yen. 
 
The ratio of the FIP in the "sympathy" budget has been diminishing 
by the year. On the other hand, the construction of new bases is on 
the rise, including: (1) construction of dedicated facilities in the 
Self-Defense Forces (SDF) bases in Yausubetsu (Hokkaido), Ojojihara 
(Miyagi Prefecture), and Hijudai (Oita Prefecture) for relocating 
the training exercises of U.S. Marines in Okinawa in the name of 
"training relocation expenses" - totaling 10.9 billion yen up to 
FY08; (2) construction of houses for U.S. military officers using 
the special road tax revenues of the Ministry of Land, 
Infrastructure, Transport, and Tourism (2.8 billion yen in Sasebo 
City, Nagasaki Prefecture) and the budget of other ministries; and 
(3) shouldering the cost for USFJ realignment, including Guam 
"relocation" and the construction of a new base in Henoko, Okinawa 
totaling 2-3 trillion yen (according to the U.S. Department of 
Defense). 
 
Under USFJ realignment plans, a facility for the use of U.S. Forces 
costing 8.8 billion yen is being built at the SDF's Nyutabaru base 
(Miyazaki Prefecture) for relocating the training of F-15 fighters 
from the Kadena Air Base in Okinawa. For the first time, 34.6 
billion yen in construction cost has also been allocated for Guam 
"relocation" in the FY09 budget. 
 
9) PM Aso meets Russian presidential office chief of staff, voices 
expectations on Northern Territories issue at summit talks 
 
MAINICHI (Page 5) (Full) 
June 23, 2009 
 
Naoyuki Inukai, Joichi Sato 
 
Prime Minister Taro Aso met Sergei Naryshkin, chief of staff of the 
Russian Presidential Office, at the Prime Minister's Office 
Residence on June 22. Aso said: "I look forward to the president's 
briefing on the Russian side's work on the Northern Territories 
issue" at his meeting with President Dmitry Medvedev during the G-8 
Summit in Italy in July, indicating his hope for the president to 
present proposals for progress in the territorial issue. 
 
Naryshkin said: "We are preparing for Italy. It is important to have 
discussions in a quiet atmosphere." After the meeting, he told 
reporters at a hotel in Tokyo that, "I conveyed to the prime 
minister that 'we should find a compromise that is in the interest 
of both sides and in accordance with public opinion in a quiet and 
constructive atmosphere where there is no negative reaction from 
either side'." 
 
Democratic Party of Japan President Yukio Hatoyama also met with 
Naryshkin in Tokyo on June 22. He said: "Political credibility in a 
country is very important for resolving difficult pending issues 
such as territorial disputes. This is absent in Japan today. The 
 
TOKYO 00001406  008 OF 009 
 
 
most important thing is to restore political credibility," 
indicating that progress in the territorial issue will be difficult 
without a change of government. 
 
10) International Whaling Commission meeting opens, to discuss 
framework for future negotiations 
 
MAINICHI (Page 4) (Full) 
June 23, 2009 
 
Keisuke Ota 
 
The annual meeting of the International Whaling Commission (IWC) 
opened on the Portuguese island of Madeira on June 22. The meeting 
will take place for five days until June 26. A decision has already 
been made on deferring the question of Japan's continuing research 
whaling and the resumption of small-scale coastal whaling to the 
2010 annual meeting, so this year's meeting will concentrate on 
discussing the framework for future negotiations and how to proceed 
with the talks. 
 
Japan and other whaling nations have clashed fiercely with the U.S., 
Australia, and other anti-whaling states at the IWC. A working group 
formed at last year's annual meeting discussed a compromise plan for 
Japan to reduce and abolish research whaling in stages in exchange 
for the resumption of small-scale coastal whaling. However, an 
agreement was not reached, and it was decided that these issues be 
deferred to the 2010 annual meeting. 
 
11) Brisk exports of petrochemical, nonferrous products to China: 
Domestic demand for steel, paper remains sluggish 
 
MAINICHI (Page 3) (Excerpts) 
June 23, 2009 
 
Moves to ease production cutbacks are spreading in the material 
industry, such as the petrochemical and nonferrous industries, 
bolstered by progress in inventory adjustments by supply 
destinations of automobiles and home electronic appliances and brisk 
exports to Asia, such as China. However, the recovery of demand in 
the steel, paper and cement industries, which highly rely on 
domestic demand, is lagging behind. 
 
Production of petrochemical goods has begun showing a marked 
recovery trend from around March due to an increase in exports to 
China. Exports of high-density polyethylene used by supermarkets for 
carrier-bags, tripled in comparison with the same month in the 
previous year, boosted by robust individual consumption in China. 
Sumitomo Chemical's ethylene plant is now in full production. 
 
In the nonferrous industry, exports of zinc to China in April jumped 
2.2 times the level of the same month in the preceding year due to 
great demand for autos. Demand for copper has also recovered owing 
to an increase in public works in China, following the 
implementation of stimulus measures taken by its government. 
Mitsubishi Materials Corp. plans to raise the operation rate at its 
plant from the current 90 PERCENT  to 100 PERCENT  as early as 
August. 
 
12) Cuts in social security spending shelved: Basic policy 
guidelines for fiscal 2009 to be adopted at cabinet meeting today 
 
 
TOKYO 00001406  009 OF 009 
 
 
SANKEI (Page 1) (Excerpts) 
June 23, 2009 
 
The government's basic policy guidelines on economic and fiscal 
management and structural reforms for fiscal 2009 are expected to be 
adopted at a cabinet meeting on June 23. Lawmakers connected with 
welfare and labor affairs, who are against a cut in social security 
spending, have been opposing the government policy of compiling a 
fiscal 2010 budget, based on such guidelines for fiscal 2006. The 
government gave in to them and pledged to exempt social security 
expenses from its policy of cutting spending. Lawmakers with vested 
interests in the welfare and labor areas, who killed Prime Minister 
Aso's proposals for splitting the Ministry of Health, Labor and 
Welfare (MHLW) and unifying day-care centers and kindergartens, have 
again won the battle with the government, giving the impression that 
the administration is weakening. 
 
The Liberal Democratic Party (LDP) on the afternoon of June 22 held 
a special General Council meeting and adjusted the wording to be 
included in the basic policy guidelines for fiscal 2009. However, 
lawmakers, such as former MHLW ministers Hidehisa Otsuji and Yuji 
Tsushima, who are closely connected with the MHLS, opposed the 
guidelines. For this reason, the meeting once again put off adopting 
the guidelines. 
 
Finance Minister Yosano had indicated a flexible stance to the 
compilation of the fiscal 2010 budget. However, Otsuji did not 
agree. He called for the omission of the wording "based on the basic 
policy guidelines for fiscal 2006" with a view to the upcoming Lower 
House election. The party executives on June 22 gave in to them, 
adding wording including, "a framework that is different from last 
year's guidelines, which cut social security expenditures." However, 
Yosano did not accept the proposal, saying, "The government should 
categorically mention that social security spending will not be 
cut." 
 
In the end, Yosano in front of Otsuji and others after the general 
council meeting stated, "The increased portion of social security 
expenses should be approved as is." Otsuji accepted his proposal. As 
a result, the basic policy guidelines are set to be adopted at a 
cabinet meeting on June 23. 
 
ZUMWALT