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UNCLAS SECTION 01 OF 14 TOKYO 001467 
 
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 06/30/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
Secret nuclear pact: 
4) Former Vice Foreign Minister Murata: Senior officials responsible 
for the existence of secret pact allowing U.S. forces to bring 
nuclear weapons into Japan  (Mainichi) 
5) Text of interview with former Vice Minister Murata: Government 
lied to the public about the secret pact  (Mainichi) 
6) Chief cabinet secretary denies existence of secret nuclear pact 
with U.S. despite testimony of former senior official  (Yomiuri) 
 
Political agenda: 
7) Increasing likelihood that Prime Minister Aso will resign his 
post, having set a Diet-dissolution strategy in motion  (Tokyo 
Shimbun) 
8) "Dump Aso" move in the Liberal Democratic Party (LDP) expands 
even more  (Mainichi) 
9) Diet dissolution soon after July 12 Tokyo assembly election 
looking more likely  (Asahi) 
10) LDP may run popular Miyazaki governor at the top of the 
proportional ticket in the next Lower House race  (Mainichi) 
 
11) New Komeito greatly irritated by the LDP political shenanigans 
that are interfering with the party's goal to win big in the Tokyo 
assembly elections  (Yomiuri) 
12) Two camps in the Diet clash over politics and money scandals 
(Nikkei) 
13) Manifestos (campaign promises) of two camps have respective 
visions of taking control of the bureaucracy  (Sankei) 
14) Democratic Party of Japan (DPJ) outlines its new policy that 
will need 17 trillion yen to implement  (Nikkei) 
15) Hatoyama critical that Japan Post Chair Nishikawa kept on, 
predicts further drop in cabinet support  (Sankei) 
 
16) Arrest of North Korea-connected company executive for helping 
the DRPK make illegal tech transfer of missile parts to Burma 
(Myanmar)  (Mainichi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Diet dissolution likely to come after Tokyo assembly election 
 
Mainichi: 
Aso gives up on changing LDP executives, faced with strong reactions 
in party 
 
Yomiuri: 
Police arrest three for attempt to transfer North Korean missile 
technology to Burma (Myanmar) 
 
Nikkei: 
Japanese, South Korean, Taiwanese firms producing panels, other 
materials for flat-screen TVs to operate at full capacity 
 
Sankei: 
Unpaid tax money in Tokyo in fiscal 2008 increased by 23 billion yen 
 
TOKYO 00001467  002 OF 014 
 
 
annually 
 
Tokyo Shimbun: 
Calls for Aso's resignation growing in LDP 
 
Akahata: 
JCP member's Diet questioning prompts Aozora Bank to withdraw 
improper dismissal of employee 
 
2) EDITORIALS 
 
Asahi: 
(1) Government's "lie" about secret nuke deal between Japan, U.S. 
again exposed 
(2) Bold management reform set as precondition for assistance to 
JAL 
 
Mainichi: 
(1) Delusive sophistry on secret nuke deal no longer acceptable 
(2) Growing protectionism: Let's return to WTO negotiations 
 
Yomiuri: 
(1) Nishikawa's reappointment as Japan Post subject to conditions 
(2) Cellular phone rules: Use Ishikawa Prefecture's ordinance as 
model 
 
Nikkei: 
(1) Take U.S. pullout from Iraq as turning point for independence, 
stability 
(2) Intel Nokia aiming at new hegemony 
 
Sankei: 
(1) Aso should speak of state vision in run-up to general election 
(2) Reflect individual investors' views expressed in shareholders' 
meetings 
 
Tokyo Shimbun: 
(1) Aso urged to decide to dissolve Diet right now 
(2) Effectiveness of cellular phone rules still unknown 
 
Akahata: 
(1) Momentum is gathering for reviewing system of regarding the 
dollar as world's key currency 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 29 
 
NIKKEI (Page 2) (Full) 
June 30, 2009 
 
07:33 Took a walk near official residential quarters 
09:53 Met Deputy Chief Cabinet Secretaries Matsumoto, Asano at Prime 
Minister's Official Residence (Kantei); Asano stayed behind 
11:10 Government's Advanced Research and Development Support 
Conference; followed by visit from 2009 Miss Japan "Day of the Sea" 
Yu Ikenaga, others 
11:49 Visit from women's division of support group from local 
constituency 
13:00 House of Councillors Budget Committee 
16:23 Vice Finance Minister Sugimoto, Budget Bureau Director General 
Tango, Tax Bureau Director General Kato, head of Finance Minister's 
 
TOKYO 00001467  003 OF 014 
 
 
Secretariat Katsu 
17:02 LDP executive meeting; Secretary General Hosoda, Deputy Chief 
Cabinet Secretary Matsumoto stayed behind 
17:42 Met Minister of Economy, Trade, and Industry Nikai at Kantei; 
followed by public relations officer Ogawa 
19:28 Met Tokyo Electric Power Company Chairman Tsunehisa Katsumata, 
President Masataka Shimizu, others at Japanese restaurant "Fukudaya" 
in Kioi-cho 
20:52 Arrived at official residential quarters; met Upper House 
Rules and Administration Committee Chairman Nishioka; followed by 
Chief Cabinet Secretary Kawamura 
 
4) Gov't held accountable for secret deal on nuclear introduction 
 
MAINICHI (Page 5) (Abridged) 
June 30, 2009 
 
In 1960, when Japan and the United States revised their security 
pact, the Japanese government agreed to let U.S. forces bring 
nuclear weapons into Japan with nuclear-carrying naval vessels' port 
calls. Concerning this secret deal on nuclear introduction, former 
Administrative Vice Foreign Minister Ryohei Murata, 79, has told the 
Mainichi Shimbun that he had taken over this arcane agreement in 
written form from his predecessor. The process of such secret 
negotiations over the establishment of security arrangements between 
Japan and the United States has been unveiled in U.S. official 
documents and in testimonies given by those engaged in bilateral 
negotiations. However, this is the first time that a former 
administrative vice foreign minister has admitted to the existence 
of such a secret deal under his real name. Its meaning is extremely 
heavy. Japan, as the only atomic-bombed nation, is taking the 
initiative for nuclear elimination. On the other hand, the Japanese 
government has been denying the secret deal. Its clear-cut 
accountability is indispensable. 
 
"It's been more than a decade since I left (the Foreign Ministry). 
The Cold War is over now, and the times are quite different, so I 
thought it's all right now." With this, Murata explained why he gave 
the testimony on the secret deal. In his memoirs published last 
year, Murata revealed that there was a "secret understanding" 
between the Japanese and U.S. governments that did not necessitate 
prior consultations for nuclear introduction through 
nuclear-carrying vessels' port calls or transits through Japan's 
territory. 
 
When the Japan-U.S. Security Treaty was revised in 1960, the 
Japanese and U.S. governments agreed to hold prior consultations on 
nuclear introduction. However, the two governments reached an arcane 
agreement to preclude nuclear-carrying U.S. naval vessels' port 
calls and transits from the subjects of prior consultations. In 
March 1963, however, then Prime Minister Hayato Ikeda stated in his 
Diet reply, "We will not allow ships carrying nuclear warheads to 
call at Japanese ports." U.S. Ambassador to Japan Reischauer, who 
was concerned about a contradiction with the secret agreement, 
reconfirmed the secret deal on port calls with then Foreign Minister 
Masayoshi Ohira. The testimony given by Murata substantiates the 
existence of such a secret accord. 
 
Chief Cabinet Secretary Takeo Kawamura met the press yesterday and 
repeatedly denied the secret deal on nuclear introduction. Kawamura 
said, "Since there have been no prior consultations on nuclear 
introduction, there has been no nuclear introduction." Concerning 
 
TOKYO 00001467  004 OF 014 
 
 
such a stance of the government, Murata said the government has 
apparently lied. In his book, Murata stresses: "The principle of not 
allowing nuclear weapons into Japan (among Japan's three nonnuclear 
principles of not producing, possessing or allowing nuclear weapons 
into the country) should be abolished right away, because this 
deceives the people." 
 
5) Murata: Japan obviously lies 
 
MAINICHI (Page 5) (Full) 
June 30, 2009 
 
-- Did you know the existence of the secret deal before you became 
administrative vice foreign minister? 
 
Former Administrative Vice Foreign Minister Ryohei Murata: I heard 
that there might be something like a secret agreement. I first saw a 
Japanese document on the secret agreement when I became 
administrative vice minister. 
 
-- Did you then confirm it for the first time? 
 
Murata: There was no reason to confirm it, I just thought to myself 
there it is. It was (former U.S. Ambassador to Japan) Reischauer, I 
think, who once said, "For some time, there has been such a 
commitment." He was quoted as saying so in a declassified U.S. 
diplomatic document. That made the news in Japan. The papers wrote, 
"Reischauer said something like that." Then, the government 
desperately said: "No, such a secret agreement does not exist. No." 
America made public a diplomatic document that stated there was a 
secret agreement. But Japan said there was no such secret agreement. 
Someone is telling a lie. Which side is lying? It's obvious that 
Japan is. 
 
-- Do you remember what kind of paper you received about the secret 
agreement? 
 
Murata: It was a piece of paper the Foreign Ministry uses usually. 
 
-- No stamp on it like 'handle with care' or 'confidential'? 
 
Murata: No. 
 
-- Only a piece of paper? 
 
Murata: It was written on a piece of paper the Foreign Ministry 
uses, and it was contained in an envelope. I received it from my 
predecessor (Kensuke Yanagiya). I was then told to brief the 
minister on what's written on it. I told this to Mr. Kuranari (i.e., 
Foreign Minister Tadashi Kuranari in the 3rd Nakasone cabinet) and 
also to Foreign Minister (Sosuke) Uno (in the Takeshita cabinet). 
 
-- Do you remember the document's wording? 
 
Murata: I don't remember it exactly. Well, I remember it roughly, of 
course. But I can't remember every word. 
 
-- What was written on that piece of paper? 
 
Murata: It was something like what I wrote in my book. (There is no 
need to hold prior consultations for nuclear-carrying U.S. naval 
vessels' port calls and transits through Japan's territorial 
 
TOKYO 00001467  005 OF 014 
 
 
waters.) 
 
-- The U.S. government declassified a diplomatic document, and the 
Japanese government denied it. What did you think then? 
 
Murata: I wondered why the government had to tell such a lie. I felt 
dissatisfied, because this would be brought to light someday, sooner 
or later. 
 
-- When you took over the secret agreement, were you just told to 
explain it (to the minister)? 
 
Murata: Yes. 
 
-- Did you hand it over to your successor (Takakazu Kuriyaya)? 
 
Murata: That's right. 
 
-- You were in the Foreign Ministry. Is there anything you can 
understand about the secret agreement? 
 
Murata: No. The government came up with what's called the three 
nonnuclear principles at the time of the (Eisaku) Sato cabinet. I 
thought it was nonsense. This was my personal view at that time, 
though. 
 
-- Was there any problem about setting forth the three nonnuclear 
principles? 
 
Murata: I was concerned about the third principle of not allowing 
nuclear weapons into Japan. The other two principles are not to 
possess nuclear weapons and not to make nuclear weapons. These two 
principles are good. But a U.S. ship that happens to carry nuclear 
weapons calls at Yokosuka, and that ship leaves for Vietnam again 
after being refueled. This does not fall under nuclear introduction. 
It's nonsense to include (nuclear-carrying ships') port calls and 
transits through Japan's territorial waters in the concept of 
nuclear introduction. However, the Cold War was going on in those 
days. Japan and the United States had their own circumstances and 
secrets. So, they are not to blame. That's why I have been silent. 
 
6) Ex-vice foreign minister admits secret accord on US military 
bringing in nuclear arms; Chief cabinet secretary denies existence 
 
YOMIURI (Page 1) (Full) 
Evening, June 29, 2009 
 
In connection with the alleged secret agreement between the Japanese 
and U.S. governments at the time of the revision of the bilateral 
security treaty in 1960 that the Japanese government will acquiesce 
and allow vessels carrying nuclear weapons to call on Japanese ports 
and pass through Japanese territorial waters, Ryohei Murata, who 
served as vice foreign minister from July 1987 to August 1989, told 
Yomiuri Shimbun at an interview on June 29 that "such a document 
existed," admitting the existence of the secret pact. The Japanese 
government has consistently denied its existence. 
 
During the negotiations on the security treaty revision in 1960, the 
introduction of nuclear arms into Japan by the U.S. forces became a 
"major change in equipment" that required prior consultations 
between the two countries. On the other hand, a secret agreement was 
reached under which port calls and passage through Japanese waters 
 
TOKYO 00001467  006 OF 014 
 
 
would be tacitly allowed and would not require prior consultation. 
 
Murata told Yomiuri that, "I was told by my predecessor that 'as the 
vice minister, tell this to the foreign minister'." He said he had 
also told the foreign minister at that time. 
 
The existence of this secret agreement has already been revealed by 
official documents of the U.S. government and testimonies from U.S. 
officials. Murata had also written in his book published last year 
Memoirs of Ryohei Murata (Murata Ryohei Kaisoroku) (Minerva Shobo): 
"Actually, there was a secret understanding between Japan and the 
U.S. at the time of the negotiations in 1960 that port calls and 
passage through territorial waters would not require prior 
consultation." 
 
Murata also indicated that the width of the territorial sea in five 
straits - Soya, Tsugaru, Osumi, and East and West Channels of 
Tsushima - was set at 3 nautical miles and not 12 nautical miles, as 
stipulated in the Territorial Sea Law (of 1977), as a measure to 
prevent the passage of U.S. vessels carrying nuclear arms from 
becoming a political issue. Murata said: "That is my understanding. 
While it was not my decision, I personally felt that this was 
ill-conceived." 
 
Foreign ships, including Chinese military vessels, pass through the 
five straits frequently because parts of them are international 
waters. 
 
Regarding this secret agreement on bringing in nuclear weapons, 
Chief Cabinet Secretary Takeo Kawamura stated at his news conference 
on June 29 that: "The secret agreement does not exist. Previous 
prime ministers and foreign ministers have clearly denied its 
existence. This is the government's official position. There is 
nothing more to this issue." 
 
7) Calls for Prime Minister's resignation growing; Dissolution 
strategy in impasse 
 
TOKYO SHIMBUN (Top play) (Full) 
June 30, 2009 
 
Tetsuya Yoshida, Political Department 
 
In response to a question from the press corps at the Prime 
Minister's Official Residence (Kantei) yesterday, Prime Minister 
Taro Aso said that he was not thinking of shuffling the LDP 
executives or his cabinet at the moment. He also suggested that he 
will not dissolve the House of Representatives until after the July 
12 Tokyo Metropolitan Assembly election, saying: "I will make a 
decision. The dissolution will be in the not-too-distant future 
before Sept. 10 (when the term of the Lower House lawmakers 
expires)." 
 
Prime Minister Aso is in the hot seat. He was considering shuffling 
the LDP executives and his cabinet later this week to turn the 
situation around. But he has been forced to give up on the option 
due to fierce objections from within the LDP. The Prime Minister is 
now on the verge of being forced into resignation without exercising 
his right to dissolve the House of Representatives. 
 
Before the House of Councillors Audit Committee yesterday, Aso again 
reiterated his intention to make an independent decision on Lower 
 
TOKYO 00001467  007 OF 014 
 
 
House dissolution, saying, "I will make a decision before the term 
(of the Lower House lawmakers) expires in September by taking into 
consideration a variety of factors." 
 
His plan was to increase his grip on power by partially shuffling 
the LDP executives and his cabinet, to dissolve the Lower House 
before the July 12 Tokyo election, and to hold the next general 
election in early August. But this plan fell through, and the Prime 
Minister is now being pressed to review his dissolution strategy. 
 
The Prime Minister's consideration of dissolution before the Tokyo 
election and shuffling the cabinet came from the fear that if the 
ruling bloc loses the Tokyo election, which the opposition camp 
regards as a prelude to the Lower House election, the move to unseat 
Aso will gain momentum. 
 
At an LDP executive meeting yesterday, Aso said: "The election is 
not too far off. We must make thorough preparations." A prime 
ministerial aide, too, enthusiastically said, "There is no other 
option but to dissolve the Lower House immediately after the Tokyo 
polls." To begin with, the Prime Minister attempted to use the 
shuffle and dissolution card on the assumption that the ruling bloc 
would lose the Tokyo election. It is clear, however, postponing the 
dissolution until after the Tokyo election because the earlier plan 
fell through will offer no bright prospects. 
 
There are strong calls for Aso's resignation among LDP lawmakers, 
including Secretary General Hidenao Nakagawa who said, "The Prime 
Minister must make an honorable decision so that the LDP 
administration will continue even after his administration ends." 
 
Asked by the press corps last night if he was aware of the growing 
move to unseat him, the Prime Minister said ostensibly in a calm 
tone, "I know about it." But his next move remains to be seen. 
 
8) Premier gives up on reshuffling LDP leadership: Move to oust Aso 
could expand; Decline in power base unavoidable 
 
MAINICHI (Page 2) (Excerpts) 
June 30, 2009 
 
Now that Prime Minister Taro Aso has been forced to give up on the 
reshuffling of the LDP executive lineup, his leadership is bound to 
weaken further. Moves to oust Aso, which have been lingering in the 
party, are now gaining a far more realistic prospect than ever 
before. Those who have served as party executives, such as former 
secretaries general Hidenao Nakagawa and Tsutomu Takebe, as well as 
mid-ranking and junior lawmakers, whose election bases are weak, are 
now openly calling for the prime minister to step down. The 
situation is now a limited move to oust Aso could grow into a trend 
to tighten the noose around him. 
 
The prime minister has forgone the reshuffling of the LDP 
leadership, because he has determined that if he had done so, 
overcoming the opposition in the party when the dissolution of the 
Lower House for a snap election is close at hand, it is bound to 
cause a chaotic situation. However, this has exposed that Aso as the 
party president is having difficulty managing party affairs. There 
has now appeared a possibility that he might be even unable to 
dissolve the Lower House, depending on the outcome of the upcoming 
Tokyo Metropolitan Assembly election. 
 
 
TOKYO 00001467  008 OF 014 
 
 
The prime minister started the process of choosing a new lineup 
after meeting with former prime minister Shinzo Abe on the evening 
of June 24. Abe advised Aso that since the LDP is suffering a 
setback in campaigns for the Shizuoka gubernatorial election 
campaign and the Tokyo Metropolitan Assembly election, he should 
dissolve the Lower House at an early date, while reshuffling the 
party leadership and the cabinet. When news of this spread on the 
25th, many party members opposed the idea, because it would give the 
impression that the party is floundering. 
 
9) Aso likely to dissolve Diet after Tokyo assembly, denies 
replacement of three party executives 
 
ASAHI (Top Play) (Full) 
June 30, 2009 
 
Although Prime Minister Aso once considered dissolving the House of 
Representatives before the Tokyo metropolitan assembly election, it 
is now likely that the dissolution will come after the election, 
reflecting strong opposition in the ruling camp to an early 
dissolution amid dismal public support ratings for the Aso cabinet. 
Regarding the possibility of replacing the three party executive 
officers and some cabinet members, Aso told reporters at the Prime 
Minister's Official Residence yesterday: "I am not considering that 
possibility as of now." But he is still exploring ways to solidify 
unity in the Liberal Democratic Party (LDP) prior to the general 
election. Even so, since Aso is rapidly losing the support of his 
party, many party members have voiced doubt about his ability to 
assume leadership. 
 
Aso was considering the possibility of changing his party's 
executive lineup after the budgetary request guidelines for fiscal 
2010 is approved at a cabinet meeting on July 1. The idea of 
appointing Election Strategy Committee Vice Chairman Yoshihide Suga 
as secretary general was also floating. 
 
But many party members speculated that Aso's idea of replacing the 
executive lineup might be to pave the way for dissolving the Lower 
House before the Tokyo assembly election as part of efforts to 
forestall expected moves to "dump Aso" depending on the outcome of 
the Tokyo assembly election. Many ruling party members reacted 
fiercely to an early Diet dissolution; one even called it "a 
suicide-bombing." Particularly executive members of the Machimura 
faction, the largest faction, and the Ibuki faction, both of which 
support Prime Minister Aso, and of the New Komeito, which places 
emphasis on the Tokyo assembly election, raised strong objections. 
 
However, if Aso fails to carry out his plan of changing the top 
party executives, he will inevitably lose his grip on the party. In 
such a case, he might be driven into resignation. Given this, 
observers take this view: Switching his strategy, Aso has sealed off 
the idea of dissolving the Lower House before the Tokyo assembly 
election but has also continued to explore a chance to replace the 
executive lineup. 
 
Aso said in an LDP executive meeting yesterday: "I will hold a 
general election in the "not-so-distant future." We must win the 
election without fail, so let us make thorough preparations." He 
then instructed the participants to speed up preparations for the 
election, including the formation of the party's policy manifesto. 
He did not refer to his plan to replace the three top executives. 
 
 
TOKYO 00001467  009 OF 014 
 
 
Afterward, Aso told reporters that the timing for the dissolution 
will be "in the not-too-distant future" before September 10, (when 
the Lower House members' terms of office expire)." If the 
dissolution is delayed to late August, calls for moving up a party 
presidential election could become more realistic. Given this, Aso 
probably has not changed his plan to hold the election on August 2 
or 9. If the LDP suffers a crushing defeat in the upcoming Shizuoka 
gubernatorial election and the Tokyo assembly election, however, Aso 
will surely lose his political influence in one stroke. In such a 
case, he might not be able to take the initiative in determining 
personnel changes and the timing for Diet dissolution. 
 
10) LDP considering listing Higashikokubaru in top rank of 
candidates for Tokyo proportional representation bloc 
 
MAINICHI (Page 1) (Full) 
June 30, 2009 
 
The Liberal Democratic Party (LDP) yesterday began looking into 
giving preferential treatment to Miyazaki Gov. Hideo 
Higashikokubaru, whom the LDP has asked to run in the next House of 
Representatives election on the LDP ticket. The party would rank him 
number one in its list of the candidates for the Tokyo proportional 
representation segment. LDP Election Strategy Council Chairman 
Makoto Koga met yesterday with Chief Cabinet Secretary Takeo 
Kawamura to say that Higashikokubaru is enthusiastic about joining 
national politics. Kawamura then last night reported such 
information to Prime Minister Taro Aso. 
 
With an eye on the next Lower House election, the LDP has placed 
importance on the July 5 Shizuoka gubernatorial election and the 
July 12 Tokyo Metropolitan Assembly election. Amid the declining 
support rates for the Aso cabinet and the LDP, it is expected that 
candidates backed by the LDP will face an uphill battle in the 
elections. The LDP, therefore, is looking forward to seeing popular 
Gov. Higashikokubaru's election support. With the Shizuoka 
gubernatorial election coming up on July 5, the LDP is in hurry to 
arrive at a conclusion on Higashikokubaru's treatment in the Lower 
House election in order to urge him to make a decision to run in the 
snap election as quickly as possible. 
 
Koga visited the Miyazaki prefectural government office on June 23 
and asked Higashikokubaru to run in the general election as an LDP 
candidate. Higashikokubaru, however, has demanded as conditions to 
run in the election that the LDP list him as a candidate for party 
president and that the LDP incorporate requests for decentralization 
compiled by the National Governors' Association in its manifesto 
(campaign pledges) for the Lower House election. 
 
11) Irritated New Komeito unable to concentrate on Tokyo election 
 
YOMIURI (Page 4) (Excerpts) 
June 30, 2009 
 
The New Komeito is growing restive with calls for the dissolution of 
the House of Representatives before the July 12 Tokyo Metropolitan 
Assembly election and moves in the Liberal Democratic Party (LDP) to 
unseat Prime Minister Taro Aso. The New Komeito fears that those 
developments will have a negative impact on the party's outcome in 
the Tokyo election 
 
The New Komeito is supported by Soka Gakkai, a lay Buddhist 
 
TOKYO 00001467  010 OF 014 
 
 
organization headquartered in Tokyo's Shinjuku Ward. The party puts 
high priority on the Tokyo election in order to maintain its 
influence over the administration of the nation's capital. Assembled 
in Tokyo, New Komeito local assemblymen and Soka Gakkai members are 
now working hard to cultivate votes for the party. The party wants 
to have the next general election in late August, with a senior 
party member saying, "To make thorough preparations, we need a month 
and a half between the Tokyo election and the Lower House 
election." 
 
Aso has an election in early August in mind. Some New Komeito 
lawmakers are tolerant of a Lower House election on Aug. 9, which 
will be four weeks after the Tokyo race, on the condition that the 
ruling bloc wins a majority in the Tokyo election. 
 
The New Komeito is increasingly displeased with moves in the LDP for 
an early party presidential election with the aim of unseating Aso. 
One New Komeito lawmaker said, "With the Tokyo and Lower House 
elections coming up, such would only generate a negative image." 
Another member disgustingly said, "To those working hard for the 
Tokyo race, such moves are outrageous." The member suggested the 
possibility that the New Komeito will not endorse for the next Lower 
House election those who had a hand in the move to dump Aso. 
 
At the same time, the New Komeito is also increasingly discontent 
with Prime Minister Aso, who is struggling with dismal public 
support ratings. But the party came under fire last September as it 
created a trend to force unpopular former Prime Minister Yasuo 
Fukuda into resignation, paving the way for the Aso administration. 
The party also welcomed the advent of Prime Minister Aso as the new 
"face" for elections. Another change of prime minister might spark 
public criticism, and this is preventing the New Komeito from openly 
criticizing Prime Minister Aso. 
 
12) Politics and money spark controversy 
 
NIKKEI (Page 2) (Full) 
June 30, 2009 
 
The ruling and opposition camps are intensifying their attacks on 
one other over issues involving politics and money. While the ruling 
parties pursued scandals involving the Democratic Party of Japan 
(DPJ) President Yukio Hatoyama and Deputy President Ichiro Ozawa 
during Diet deliberations on a bill amending the Political Funds 
Control Law submitted by the DPJ, the DPJ counterattacked the ruling 
parties over the alleged roundabout political donations involving 
Kaoru Yosano, who is in charge of economic and fiscal policy as well 
as financial services. Both camps are holding onto powder kegs that 
could create weaknesses in the Lower House election. 
 
Upper House member Shoji Nishida of the LDP at an Upper House Audit 
Committee meeting on June 29 brought up the scandal involving 
Hatoyama in which his political fund management organization's 
political fund report mentioned donations as made by a deceased 
person, saying, "This is a completely false statement." He also 
criticized the issue of Ozawa's fund management organization having 
purchased a large amount of real estate. 
 
Hatoyama will shortly release the result of a survey on the scandal. 
He told reporters on the 29th, "This is a matter involving not the 
party but the Hatoyama office." The politics and money scandal 
involving the head of the first opposition party, which is aiming to 
 
TOKYO 00001467  011 OF 014 
 
 
take the reins of government, could create obstacles. 
 
The ruling parties on the 29th proposed entering into deliberations 
on the 39th on the bill amending the Political Fund Control Law 
submitted by the DPJ. LDP Diet Affairs Committee Chairman Tadamori 
Oshima at a committee meeting on the 29th stressed, "We cannot turn 
a blind eye to the issue of donations made to Mr. Hatoyama by a 
'deceased person'. I want to thoroughly pursue this issue." He 
hinted at his determination to look into summoning Hatoyama as a 
Diet witness. 
 
The DPJ criticized Oshima as abusing the system out of political 
motivation. Upper House member Nobuo Matsuno at an Upper House Audit 
Committee meeting the same day criticized Yosano over his scandal, 
saying, "He has been receiving donations from the commodity futures 
industry, which is the most important element of the consumer 
issue." 
 
Some opposition party members, including Deputy President Naoto Kan 
of the DPJ, plan to invite former New Komeito Chairman Junya Yano on 
July 1 and ask him about the relationship between the New Komeito 
and Soka-Gakkai, the New Komeito's support base. Their move is 
partly motivated by the hope that the New Komeito will check the 
ruling parties' move to summon Hatoyama. 
 
13) Council for 21st century recommends LDP, DPJ to include visions 
to control bureaucracy in manifestos 
 
SANKEI (Page 5) (Full) 
June 30, 2009 
 
Former President of University of Tokyo Takeshi Sasaki, co-leader of 
the National Council (kokumin kaigi) (21st century ad hoc committee) 
to Build a New Japan comprising of experts, held a press conference 
yesterday in Tokyo. At the press meeting, Sasaki announced an urgent 
proposal calling on the Liberal Democratic Party (LDP) and 
Democratic Party of Japan (DPJ) to include their manifestos for 
management of the government, which is a vision for steering the 
administration and for controlling the bureaucracy, in their 
manifestos (set of campaign pledges) for the next House of 
Representatives election. 
 
With regard to the manifesto for management of the government, the 
urgent proposal requested that the LDP present measures to rebuild 
the administration and the DPJ submit a power transition plan and 
government management plan. 
 
The urgent proposal pointed out that the present political turmoil 
is a result of the fact that Prime Minister Junichiro Koizumi left 
office only one year after the LDP won big in the Lower House 
election citing the expiration of the LDP presidential term. It also 
proposed that the LDP include in its manifesto a review of the party 
leadership election so as not to replace the prime minister due to 
internal party situations before the term in office expires. 
 
Keio University Prof. Yutaka Sone, general manager of the 21st 
century ad hoc panel, criticized calls in the LDP for moving up the 
presidential election, arguing: 
 
"It's too late. I wonder if the LDP can come up with a manifesto 
under the leadership of a new president. The LDP needs to review the 
past four years of government. What's the reason for speeding up the 
 
TOKYO 00001467  012 OF 014 
 
 
election?" 
 
14) DPJ manifesto 
 
NIKKEI (Page 2) (Full) 
June 30, 2009 
 
The Democratic Party of Japan's (DPJ) manifesto review and 
preparatory committee, chaired by Masayuki Naoshima, at a meeting on 
June 29 firmed up a draft plan for the party's manifesto for the 
next Lower House election. According to the draft, funding resources 
needed to implement new policy proposals total roughly 17 trillion 
yen. The necessary funds will be secured by cutting wasteful 
spending and drawing from so-called hidden funds, such as reserve 
funds in the special account. Concerning the schedule for abolishing 
the provisional rates for various road-related taxes, such as 
gasoline tax - the showcase of the manifesto - final adjustments 
will be made on April 2010. 
 
The party will aim to implement portions of monthly child benefits 
of 26,000 yen to be distributed to children through middle school 
age and free high school education, starting in April 2010. 
 
Concerning the handling of the provisional tax rate, the main point 
of contention, Secretary General Katsuya Okada is calling for 
abolishing it in fiscal 2011 or later, noting that it will difficult 
to raise approximately 2.6 trillion yen in funding resources 
starting in fiscal 2010. President Yukio Hatoyama, however, is 
insisting that it be scrapped immediately. The party will reach a 
decision at an executive meeting on the 30th. 
 
The manifesto includes a roadmap from fiscal 2010 through fiscal 
2013, which shows key policy implementation procedures and measures 
to secure funding resources. The amount of funds needed is estimated 
to be about 7 trillion yen for fiscal 2010 and reach about 17 
trillion yen in the final year of fiscal 2013. Approximately 9 
trillion yen is expected to be secured through cuts in wasteful 
spending. The remainder will be covered by the use of hidden funds, 
such as reserved funds in the special account of the fiscal 
investment and loan program, and the scrapping of tax reductions for 
dependents. The sales tax will be left unchanged. Kew policy 
proposals are: (1) cuts in wasteful spending; (2) reform of the 
pension and medical services systems; (3) assistance for 
child-rearing and education; (3) promotion of decentralization of 
power and agriculture; and (5) environmental and employment 
measures. 
 
15) Kunio Hatoyama: I can't support the cabinet; Criticizes 
reappointment of Nishikawa as Japan Post president 
 
SANKEI (Page 5) (Full) 
June 30, 2009 
 
"The government made a wrong decision. I cannot support the present 
cabinet," former Internal Affairs and Communications Minister Kunio 
Hatoyama said when asked by reporters in Himeji City, Hyogo 
Prefecture, about Japan Post Holdings Co. President Yoshifumi 
Nishikawa having been reappointed at a general meeting of 
shareholders on June 29. 
 
In a speech delivered in the city of Osaka yesterday, Hatoyama saw 
the reappointment of Nishikawa as a problem, saying: "All (Japan 
 
TOKYO 00001467  013 OF 014 
 
 
Post) executives, who tried to steal the property of the public, 
have been retained." He also criticized Prime Minister Taro Aso, who 
was believed to be in agreement with Hatoyama on not allowing 
Nishikawa to continue serving as Japan Post president, noting: "He 
made a wrong judgment." 
 
Hatoyama then revealed that he plans to call on young lawmakers in 
the Liberal Democratic Party (LDP) to form a group in the party 
before the next House of Representatives election. He stated: 
 
"I can't act in concert with a group that cannot judge between right 
and wrong. The LDP should be reformed by being split into a second 
LDP and a third LDP in order to fight the election. Otherwise, the 
LDP will reach its last moments." 
 
16) Three nabbed for attempting to smuggle equipment convertible for 
use in weapons to Burma on instructions from DPRK-affiliated 
company 
 
MAINICHI (Page 2) (Full) 
June 30, 2009 
 
Tomohiro Ikeda 
 
The foreign affairs division of the Kanagawa Prefectural Police and 
the Tobe Police Department arrested Yi Gyong Ho (Lee Kyoung Ho), 41, 
president of the trading firm "Toko Boeki" (located in Shinjuku 
Ward, Tokyo), and two others on charges of violating the Foreign 
Exchange Control Law (attempted export without permission) on June 
29 for trying to export a "magnetometric device," which can be 
converted for use in developing weapons of mass destruction (WMDs), 
to Burma (Myanmar). The Kanagawa police reckon that North Korea 
already possesses this equipment, and this was an attempt to 
proliferate military technology to Burma, with which it has close 
relations. Police authorities are investigating the background of 
this case. 
 
The other two suspects arrested are Yasuhiko Muto, 57, president of 
the trading firm "Daikyo Sangyo" (Shibuya Ward), and Miaki Katsuki, 
75, president of the equipment manufacturer "Riken Denshi" (Meguro 
Ward). They are charged with attempting to export a magnotometric 
device, which is on the "Catch-all Control" list of items that can 
potentially be converted for use in WMDs of the Ministry of Economy, 
Trade, and Industry (METI). The three basically pleaded guilty. 
 
According to the Kanagawa police foreign affairs division, Muto of 
Daikyo Sangyo, which serves as an agent for Riken Denshi, submitted 
an export application for Burma at the Yokohama customs office last 
September on instructions from Yi. He later gave up on the export 
attempt after being told by METI that an export permit was required. 
He submitted another application to the Tokyo customs office in 
January, changing the applicant's name to Riken Denshi. This was 
judged to be a malicious violation. 
 
According to Kanagawa police, Yi was receiving orders from the North 
Korea-affiliated trading firm in Beijing "New East International 
Trading Company." This company's Pyongyang office is on the list of 
entities possibly involved with WMD development published on METI's 
website. 
 
A Daikyo Sangyo employee said: "President Muto takes pride in Japan. 
It is unthinkable that he would help North Korea." 
 
TOKYO 00001467  014 OF 014 
 
 
 
The device in question is reportedly indispensable for producing 
permanent magnets used in missile control systems and centrifuges 
for uranium enrichment. Items on the "Catch-all" list require 
permits, except when exporting to the 26 so-called "white 
countries," including the United States. 
 
ZUMWALT