VZCZCXRO5173
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1578/01 1932150
ZNR UUUUU ZZH
P 122150Z JUL 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4485
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 7508
RUEHFK/AMCONSUL FUKUOKA 5180
RUEHOK/AMCONSUL OSAKA KOBE 8986
RUEHNAG/AMCONSUL NAGOYA 2679
RUEHKSO/AMCONSUL SAPPORO 5698
RUEHBJ/AMEMBASSY BEIJING 0403
RUEHUL/AMEMBASSY SEOUL 6426
RUCNDT/USMISSION USUN NEW YORK 6094

UNCLAS SECTION 01 OF 17 TOKYO 001578 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 07/10/09 
 
INDEX: 
(1) Japanese government says Aso held 25-minute "meeting" with 
Obama; Washington announces "discussion" (Nikkei) 
 
(2) Aso, Obama meet during spare time before and after dinner at G-8 
Summit, agree on defense cooperation (Mainichi) 
 
(3) Aso, Obama hold brief discussion before and after dinner; 
Cooperation on North Korea confirmed (Nikkei) 
 
(4) Aso, Medvedev engage in verbal battle over Northern Territories 
issue; Manage to keep talks alive (Yomiuri) 
 
(5) Russia confirms policy to continue visa-free exchange program 
(Yomiuri) 
 
(6) A creative approach a mere slogan (Yomiuri) 
 
(7) Prime minister facing uphill battle over diplomacy as well 
(Sankei) 
 
(8) U.S. policy team to come to Okinawa; USFJ Commander Rice plans 
to continue efforts to reduce noise (Ryukyu Shimpo) 
 
(9) ConGen Maher amiable during farewell visit to Okinawa governor 
(Ryukyu Shimpo) 
 
(10) Governor Nakaima presents eight demands to Defense Minister 
Hamada, asking him to include SOFA revision in election pledges 
(Ryukyu Shimpo) 
 
 (11) Gist of Okinawa's demands presented to Defense Minister 
Yasukazu Hamada (Ryukyu Shimpo) 
 
(12) Examination of policies for Lower House election - What the DPJ 
wants to do in foreign and security policies unclear (Yomiuri) 
 
(13) Hatoyama suspected of tax evasion regarding political fund 
donations (Sankei) 
 
(14) Power shift trend unstoppable (Tokyo Shimbun) 
 
(15) Prime Minister Aso being besieged from all sides; Political 
situation to become fluid after Tokyo Metropolitan Assembly election 
(Tokyo Shimbun) 
 
(16) Lower House election or oust-Aso after Tokyo assembly election? 
(Nikkei) 
 
(17) Interview with Honorary ACCJ Chairman Charles Lake: What is 
Japan-U.S. relationship without foreign pressure under Obama 
administration? (Mainichi) 
 
(18) TOP HEADLINES 
 
(19) EDITORIALS 
 
(20) Prime Minister's schedule, July 8 (Nikkei) 
 
ARTICLES: 
 
(1) Japanese government says Aso held 25-minute "meeting" with 
 
TOKYO 00001578  002 OF 017 
 
 
Obama; Washington announces "discussion" 
 
ASAHI (Page 10) (Full) 
Evening, July 9, 2009 
 
Hiroki Arima, Roma 
 
Prime Minister Taro Aso held a 15-minute meeting with U.S. President 
Barack Obama before the working dinner at the Group of Eight (G-8) 
summit on July 8 (before dawn on July 9, Japan time). Aso also met 
with Obama for about 10 minutes after the dinner. According to the 
Japanese side's explanations, the two leaders confirmed the 
importance of cooperation between Japan and the United States on the 
defense front, as well as the fact that the U.S. deterrence is 
functioning. 
 
The meetings were held at the working dinner venue, while the two 
leaders were sitting down. However, only interpreters attended the 
sessions, with no senior Foreign Ministry officials present. The 
U.S. government announced that it was not a meeting (kaidan) but 
discussion (kyogi). 
 
Other than the summit meeting between Aso and Russian President 
Dmitriy Medvedev on the morning of July 9 (on the evening of July 9, 
Japan time), the Japanese government placed top priority on 
arranging a meeting between Aso and Obama. The Foreign Ministry, 
however, appears to have failed to set up an official meeting. 
 
(2) Aso, Obama meet during spare time before and after dinner at G-8 
Summit, agree on defense cooperation 
 
MAINICHI (Page 1) (Full) 
Evening, July 9, 2009 
 
Tamotsu Takatsuka, L'Aquila 
 
Prime Minister Taro Aso held a meeting with U.S. President Barack 
Obama for about 15 minutes before dinner and about 10 minutes after 
on the evening of July 8. They agreed on the importance of 
Japan-U.S. cooperation in security and defense. Although the 
Japanese Ministry of Foreign Affairs (MOFA) announced this as a 
"summit meeting (shuno kaidan)," the U.S. side called this a 
"discussion" rather than an (official) "meeting." 
 
The two leaders unusually met at the venue of the dining hall with 
only their interpreters present. This meeting had at first been 
scheduled for the evening of July 9, but was moved to July 8 in 
haste because "in case of complications at the Major Economies Forum 
(MEF), they might not have time to meet." (senior MOFA official) 
 
During the discussion, Aso pointed out that North Korea's 
development of ballistic missiles "constitutes a serious threat 
having a direct impact on the security of the neighboring countries, 
including Japan." The two leaders also confirmed the "effectiveness 
of the deterrence of the U.S. forces." 
 
(3) Aso, Obama hold brief discussion before and after dinner; 
Cooperation on North Korea confirmed 
 
NIKKEI (Page 2) (Full) 
Evening, July 9, 2009 
 
 
TOKYO 00001578  003 OF 017 
 
 
Fumiyoshi Indo, L'Aquila 
 
Prime Minister Taro Aso met briefly with U.S. President Barack Obama 
on the night of July 8 (before dawn July 9, Japan time) after the 
working dinner, held at the G-8 Summit venue of the Guardia di 
Finanza campus. They met for a total of 25 minutes - 15 minutes and 
10 minutes before and after the dinner. Sitting on seats in the same 
hall as the working dinner, they exchanged views through 
interpreters. 
 
Prime Minister Aso said, "The development of ballistic missiles by 
North Korea is posing a serious threat directly linked to the 
security of its neighboring countries, including Japan." The two 
leaders confirmed that the U.S. nuclear umbrella is functioning as a 
deterrent and agreed that the two countries will work closer in 
dealing with North Korea. They agreed also that Japan and the United 
States would continue cooperative efforts to address global warming 
and nuclear nonproliferation. 
 
The sessions were so brief that they were announced only in a 
document on the Japanese side. Meanwhile, the U.S. government in its 
announcement referred to them as a "discussion" and not an official 
meeting between the two leaders. 
 
(4) Aso, Medvedev engage in verbal battle over Northern Territories 
issue; Manage to keep talks alive 
 
YOMIURI (Page 2) (Abridged slightly) 
July 10, 2009 
 
Jun Kato, L'Aquila 
 
The meeting held on July 9 between Prime Minister Taro Aso and his 
Russian counterpart Dmitry Medvedev ended without producing any 
concrete results on the Northern Territories issues, a matter of 
great concern to the two countries. The meeting was a disappointment 
for Aso, who wanted to display his political leadership in finding a 
solution to the territorial issue. Many in Japan think that a chance 
to settle the matter has slipped way. 
 
At the meeting, Medvedev pointed out the recent Japanese enactment 
of a law specifying the disputed islands as an integral part of 
Japanese territory and Prime Minister Aso's comment, "Russia's 
unlawful occupation is continuing." The Russian president also 
expressed his displeasure, saying: "The Russian parliament is 
reacting negatively to Japan's steps. There is a need to set the 
stage for a dialogue." 
 
In response, Aso said: "Russia's control of the islands constitutes 
an ungrounded occupation in terms of international law. This has 
been Japan's consistent position." Aso continued: "If Russia is not 
ready to make any concrete progress, Japan will not build a 
partnership in the Asia-pacific region." 
 
Although the two leaders exchanged rough words, they confirmed a 
policy direction to seek a solution that is acceptable to both of 
them, while continuing considering all options. They managed to keep 
the door open to continued talks. 
 
Aso offered a strong rebuttal because the Russian president has 
repeatedly made positive statements on the territorial issue. For 
instance, he told Aso last November, "I am not thinking of leaving a 
 
TOKYO 00001578  004 OF 017 
 
 
solution to the territorial issue to the next generation." In 
February this year, Medvedev proposed Aso to take a creative and 
unconventional approach to the issue. Based on these statements, 
Japan expected that the Russian president would make a new 
proposal. 
 
Former ambassador to Russia Minoru Tamba said: "Japan should come up 
with a long-term strategy and vision to hold talks with Russia." 
 
(5) Russia confirms policy to continue visa-free exchange program 
 
YOMIURI (Page 2) (Abridged slightly) 
July 10, 2009 
 
Kazuki Matsuura, L'Aquila 
 
After the Japan-Russia summit meeting in L'Aquila, Russian 
presidential aide Sergei Prikhodko confirmed on July 9 a policy 
direction to continue the visa-free exchange program for Northern 
Territories' residents and Japanese persons concerned. In reaction 
to the Japanese Diet's enactment of the revised Law for Special 
Measures for an Early Resolution of the Northern Territory Issue, 
the Russian Federation Council has adopted a statement calling for 
putting a freeze on the visa-free exchange program. 
 
(6) A creative approach a mere slogan 
 
YOMIURI (Page 2) (Abridged slightly) 
July 10, 2009 
 
Kenichi Ogata, Moscow 
 
In his talks with Prime Minister Taro Aso on July 9, Russian 
President Dmitry Medvedev criticized Japan's revised Law for Special 
Measures for an Early Resolution to the Northern Territories Issue 
as not setting the stage for a candid dialogue. The president's plan 
to consider a "creative approach" still remains in the realm of 
slogans, and there is little hope for progress in talks on the 
territorial issue. 
 
Japan has enacted the revised law stipulating the four islands as an 
integral part of its territory. Russia takes this as Japan's refusal 
to make any compromises, obsessed only with the idea of having the 
four islands back. The Russian Federation Council has adopted a 
statement calling for putting a moratorium on the visa-free exchange 
program, and Etorofu Island has decided to refuse accepting groups 
of visitors from Japan. Russia has clearly hardened its stance 
toward Japan. 
 
President Medvedev has repeatedly announced since last august that 
Russia would not leave a solution to the territorial issue to the 
next generation. A Japan-Russia relations expert said, "There are no 
signs that he has considered a new proposal." This seems to mirror 
Medvedev's decision that conducting full-fledged negotiations with 
the fragile Aso administration is inadvisable. 
 
(7) Prime minister facing uphill battle over diplomacy as well 
 
SANKEI (Page 1) (Excerpts) 
July 10, 2009 
 
Prime Minister Taro Aso is suffering setbacks in the diplomatic 
 
TOKYO 00001578  005 OF 017 
 
 
arena at L'Aquila Summit. He was unable to set up bilateral summits 
with major leaders as he hoped. He failed to obtain a positive reply 
at a summit with Russia regarding the territorial issue, either. He 
made a proactive statement on the North Korea issue at the G-8 
meeting on July 8. However, this has highlighted a difference with 
the views of other leaders. 
 
Japan-U.S. summit started abruptly 
 
A Japan-U.S. summit abruptly started at the summit conference hall. 
 
The Japanese side had been making adjustments for holding such on 
the evening of the 9th (early morning on the 10th, Japan time) with 
the intention to exchange views with a focus on the North Korea 
issue, using about an hour-break in the summit schedule. It was 
expected that since Prime Minister Aso and President Obama were 
sitting side by side for many hours, their summit, if it was to be 
held, should take place in a proper manner, as a government source 
put it. 
 
However, before the G-8 working dinner on the evening of the 8th 
(early morning on the 9th, Japan time), President Obama, accompanied 
by a Japanese interpreter, reportedly suggested while taking out 
papers, "Why don't we talk here?" This is how their meeting started 
out. 
 
In the end, their summit was no more than a "talk standing up" with 
no other persons present except for the interpreter. The meeting 
lasted only for 25 minutes. The U.S. side explained that there was 
no formal meeting. 
 
 
Gaps in views with other leaders 
 
Prime Minister Aso was the only leader who seriously talked about 
the North Korea issue. The G-8 declaration on the political issue at 
the outset took up the Iran issue, the greatest matter of concern 
for other leaders. The North Korea issue was mentioned in the first 
part of a segment dedicated to the regional situation, indicating 
gaps in views between Aso and other leaders. 
 
The prime minister in the Aso Cabinet's e-mail magazine, issued on 
the 9th, noted that he, as a representative of Japan and Asia, would 
actively lead discussions to deal with various issues challenging 
the international community. However, leaders of various countries 
are making him realize the harsh reality, seeing through Japan's 
domestic political affairs. Another official accompanying the prime 
minister said, "I am concerned about whether the prime minister will 
be able to follow the meetings." 
 
(8) U.S. policy team to come to Okinawa; USFJ Commander Rice plans 
to continue efforts to reduce noise 
 
RYUKYU SHIMPO (Page 2) (Full) 
July 10, 2009 
 
Lieutenant General Edward Rice, commander of U.S. Forces Japan 
(USFJ), visited Governor Hirokazu Nakaima at the prefectural 
government building on July 9. In response to the governor's demand 
to reduce noise at Kadena Air Base and other facilities during the 
meeting, Rice said: "Steps to improve the situation are already 
being taken. We are considering taking additional measures," 
 
TOKYO 00001578  006 OF 017 
 
 
stressing that efforts to reduce the burden will continue. He also 
revealed that the Obama administration's Japan policy team will 
visit Okinawa soon on a fact finding mission to help make progress 
in USFJ realignment and other issues. 
 
This is the commander's second visit to Okinawa. He first came to 
the prefecture in 2008. He is here this time for the change of 
command on Kadena Air Base. 
 
Nakaima stated at the meeting: "Because of the relative size of U.S. 
military bases on Okinawa, they have an impact on the Okinawan 
people's life. Okinawa is sensitive about this. I hope you 
understand the situation. Noise at Kadena and Futenma Air Station 
has worsened. I hope you will continue to make efforts toward 
improvement." 
 
(9) ConGen Maher amiable during farewell visit to Okinawa governor 
 
RYUKYU SHIMPO (Page 2) (Full) 
July 10, 2009 
 
U.S. Consul General in Okinawa Kevin Maher, who is moving on to 
become the director of the Japan desk at the U.S. State Department, 
paid a farewell visit to Governor Hirokazu Nakaima at the 
prefectural government building on July 9. Maher is reportedly on 
bad terms with the governor due to his blunt statements about 
realizing a state of closure at the U.S. military's Futenma Air 
Station and on revising the Futenma relocation plan. At their final 
meeting in Okinawa, both Maher and Nakaima were amiable. Their 
conflicting positions will now be deferred to Washington. 
 
The conversation consisted mostly of cultural topics, such as 
Okinawa's kariyushi shirts and the local brew awamori. However, the 
governor suddenly leaned forward and said: "We disagreed on a few 
things, but since you know Okinawa well, please think about the 
things you need to consider carefully after you return to the United 
States." This was an intriguing statement which would appear to be a 
request on Maher to work on Okinawa's demands. 
 
When he made his first courtesy call after taking up his post three 
years ago, Maher flatly rejected the governor's demand to revise the 
plan for Futenma relocation in order to move the replacement 
facility further offshore. However, during his farewell visit, Maher 
stated amiably: "As the chief of the Japan desk, I will do all I can 
to implement the (USFJ realignment) plan and continue to make 
efforts to reduce the burden on Okinawa." He also said modestly: "It 
is best for the two sides to exchange views taking clear positions 
as representatives of the government. I am not sure if I will be 
able to speak my mind in the same way in Washington. It will 
probably be difficult." 
 
(10) Governor Nakaima presents eight demands to Defense Minister 
Hamada, asking him to include SOFA revision in election pledges 
 
RYUKYU SHIMPO (Page 1) (Full) 
July 10, 2009 
 
Defense Minister Yasukazu Hamada met with Governor Hirokazu Nakaima 
at the prefectural government building on July 9. Nakaima handed 
over a list of eight demands, including revising the plan for the 
replacement facility of Futenma Air Station to move it further 
offshore and reducing noise at Kadena Air Base (KAB). With regard to 
 
TOKYO 00001578  007 OF 017 
 
 
the demand to review the Japan-U.S. Status of Forces Agreement 
(SOFA), the governor asked Hamada to "work on this, even to the 
extent of including it in the manifesto (campaign pledges) of the 
Liberal Democratic Party." Hamada's comment on Futenma relocation 
was limited to "I would like to wait for the governor's opinion (on 
the preparatory document on environmental assessment)." 
 
Regarding the deployment of the Self-Defense Forces on the island of 
Yonaguni, Hamada said: "This will be an issue to consider after the 
upgrade of the (GSDF's) First Combined Brigade to a full brigade is 
completed. This is not something that I can decide on my own. We 
will consult with Okinawa Prefecture and the town of Yonaguni as we 
proceed," emphasizing his stance of respecting the local 
governments' position. 
 
In the list of demands, "review of SOFA" and "promotion of the use 
of returned military land" have been upgraded to separate items from 
being included under "various issues arising from the military 
bases" in previous documents. 
 
Nakaima demanded further measures to deal with noise on the KAB. He 
said: "In addition to large-scale joint rapid response exercises and 
repeated arrival of aircraft not based in Okinawa, F-22 fighters 
will be stationed again after its temporary deployment about a month 
ago. There have not been tangible measures to reduce the burden." 
 
In his explanation of the list of demands, Vice Governor Zenki 
Nakazato said: "We request your consideration on settling the issue 
(of the Futenma replacement facility) based on the governor's 
opinion. We also hope for a facility use agreement and regional 
development measures." 
 
Hamada returned to Tokyo after his meeting with the governor. 
 
(11) Gist of Okinawa's demands presented to Defense Minister 
Yasukazu Hamada 
 
RYUKYU SHIMPO (Page 2) (Full) 
July 10, 2009 
 
Following is the gist of the demands presented by Okinawa to Defense 
Minister Yasukazu Hamada: 
 
¶1. Return of facilities and sites south of Kadena Air Base (KAB), 
other issues 
 
The road map for the implementation of U.S. Forces Japan realignment 
agreed upon by Japan and the U.S. is rated highly for contributing 
to the reduction of the burden imposed by the bases on Okinawa. 
Special consideration is requested for steady implementation. 
 
¶2. Relocation of Futenma Air Station 
 
Relocation to Camp Schwab is a realistic option for removing the 
danger posed by Futenma Air Station as quickly as possible. Efforts 
are necessary to create the conditions for the acceptance of a 
majority of the local residents. It is necessary to pay attention to 
the living and natural environment in the environmental assessment 
and respect as much as possible the local community's wishes, such 
as moving the replacement facility further off the shore, in the 
implementation of the plan. In order to resolve the problem, 
policies on the facility use agreement, giving priority to local 
 
TOKYO 00001578  008 OF 017 
 
 
companies in the contracting process, and local economic development 
should also be put forward. 
 
¶3. Drastic review of the Status of Forces Agreement (SOFA) 
 
Improvement of operations at the discretion of the U.S. side has 
reached its limits. It is necessary to clearly stipulate that even 
U.S. forces need to abide by Japanese laws. 
 
¶4. Promotion of solutions to issues arising from the U.S. military 
bases 
 
It is necessary to deal with issues arising from the bases, such as 
prevention of crimes and accidents that occur in the course of the 
operation of the U.S. bases and reduction of noise in the vicinity 
of the KAB and Futenma, in good faith. 
 
¶5. Promotion of use of returned military land 
 
The return of facilities and sites south of the KAB will be enormous 
in scale. Intensive building of urban infrastructure will be 
necessary and the securing of revenue sources and the establishment 
of an implementation system will be a problem. Measures need to be 
taken on this, including the consideration of a new system. 
 
¶6. Abolition of part of the "Training Area Hotel-Hotel" and return 
of the Torishima-Kumejima shooting and bombing drill site 
 
¶7. Final solution to the air defense identification zone over 
Yonaguni island. 
 
¶8. Reduction of financial burden for bomb disposal 
 
There are issues that have not yet been resolved in relation to 
private sector development projects. The government needs to take 
more responsibility for this. 
 
(12) Examination of policies for Lower House election - What the DPJ 
wants to do in foreign and security policies unclear 
 
YOMIURI (Page 4) (Full) 
July 10, 2009 
 
The "Genron NPO" group held an open policy debate on July 9. 
 
When former Liberal Democratic Party (LDP) Vice President Taku 
Yamasaki criticized the Democratic Party of Japan (DPJ) for being 
"skeptical" about the Japan-U.S. security arrangements, former DPJ 
Policy Research Committee chief Takeaki Matsumoto retorted with: "We 
have stated in our manifesto (campaign pledges) that the Japan-U.S. 
alliance is the axis." 
 
The LDP has prominently underscored "concerns" about the DPJ's 
foreign and security policies. 
 
President Yukio Hatoyama met UN Secretary General Ban Ki Moon at a 
hotel in Tokyo on July 1. He stressed that, "We give even more 
importance to the United Nations (UN) than the present 
administration." However, he makes a distinction from the position 
of former President Ichiro Ozawa, who is criticized for advocating 
the "supremacy of the UN." During the party's presidential election 
in May, Hatoyama declared that, "I will not stick to the notion that 
 
TOKYO 00001578  009 OF 017 
 
 
we will do whatever the UN decides." Under his "fraternal (yuai) 
diplomacy," he emphasizes cooperation with "countries with different 
values," in contrast to Prime Minister Taro Aso's leaning toward 
"countries sharing common values." 
 
In terms of the Japan-U.S. alliance, the Japan experts in the U.S. 
trust Vice President Seiji Maehara and others whom they regard as 
the realists. On the other hand, they are concerned about the views 
of Hatoyama, Ozawa, and Secretary General Katsuya Okada on the 
bilateral alliance. 
 
One year ago, Ozawa said that "the U.S. Navy's Seventh Fleet will be 
sufficient" for U.S. forces in Japan, while Hatoyama - who is known 
to be an advocate of "security treaty without permanent stationing 
of troops" - declared in Naha City: "We will let them use the 
military bases only when necessary; other than that, we will ask the 
U.S. forces to leave." Okada's idea of a "Northeast Asia 
nuclear-free zone treaty," which calls for North Korea to form a 
nuclear-free zone with Japan and the ROK and ask the U.S., China, 
and Russia to give guarantee that they will not use nuclear arms, is 
also regarded as "unrealistic." 
 
In January, when Hatoyama was still secretary general, he criticized 
the LDP administration for "blindly following the U.S." during Diet 
interpellations. However, even though he advocates an "equal" 
relationship, the items included by the DPJ's foreign affairs and 
defense division in the manifesto are a drastic review of the Status 
of Forces Agreement (SOFA), the discontinuation of the Maritime 
Self-Defense Force (MSDF) refueling mission in the Indian Ocean, and 
other demands on the United States. What he wants Japan to actually 
do remains unclear. 
 
Out of concern about possible frictions with the U.S., there is a 
strong view in the party that the "road map" for foreign and 
security policies should not be published and that the party should 
"give priority to domestic policies until the House of Councillors 
election in summer 2010, in order to stabilize the new 
administration." With regard to the relocation of the U.S. Marines' 
Futenma Air Station within Okinawa, many favor a wait-and-see 
attitude toward moves in the U.S. Congress for the review of the 
current plans. 
 
At his meeting with Under Secretary of Defense Michele Flournoy on 
June 25, Okada said: "We need to set priorities (for policies). We 
cannot put everything on the table for negotiation." 
 
The LDP obtained the Diet's approval of the bilateral agreement on 
the relocation of U.S. marines in Okinawa to Guam, which is premised 
on Futenma relocation, in May. It prioritizes the continuation of 
the MSDF's refueling mission and anti-piracy measures and favors 
improvement of operations with regard to SOFA. 
 
There has indeed been discord between Japan and the United States, 
over the Bush administration's removal of North Korea from the list 
of state sponsors of terrorism, for instance. There are also people 
like former Prime Minister Shinzo Abe who call for including a 
revision of the constitutional interpretation on the exercise of the 
right of collective self-defense in the manifesto. Still, it is 
believed that the LDP is basically positive on the foreign policy so 
far founded on the Japan-U.S. alliance as cornerstone and intends to 
further develop such policy. 
 
 
TOKYO 00001578  010 OF 017 
 
 
(13) Hatoyama suspected of tax evasion regarding political fund 
donations 
 
SANKEI (Page 5) (Full) 
July 10, 2009 
 
The Lower House Special Committee on Political Ethics and Revisions 
of the Offices Election Law Committee on July 9 effectively launched 
deliberations with a question and answer session on the bill 
amending the Political Fund Control Law that totally bans political 
fund donations by companies and organizations, submitted by the 
Democratic Party of Japan (DPJ). During the deliberations, the 
ruling camp rigorously probed the false listing of donations in DPJ 
President Hatoyama's political fund report. 
 
Liberal Democratic Party (LDP) Election Committee Vice Chairman 
Yoshihide Suga pursued Hatoyama, saying, "Documents for exempting 
persons who made political funds donations from part of their income 
taxes have been given even to those who were eliminated from the 
political funds report after it was found that their donations were 
falsely entered. As such, (Mr. Hatoyama) is suspected of evading tax 
payment. He must be scrutinized." 
 
In the meantime, Hatoyama on the evening of the 9th told reporters, 
"I am basically certain that there was no tax evasion." He thus 
totally denied the possibility of tax evasion. 
 
(14) Power shift trend unstoppable 
 
TOKYO SHIMBUN (Page 25) (Excerpts) 
July 9, 2009 
 
The right to dissolve the House of Representatives rests with the 
prime minister. But can the prime minister decide to dissolve the 
chamber independently? 
 
With the term of the Lower House members scheduled to expire on 
Sept. 10, Prime Minister Taso Aso has repeatedly said that he will 
decide when to dissolve the chamber. But the dissolution requires a 
cabinet meeting and the signatures of all cabinet ministers. 
 
Political analyst Harumi Arima said: 
 
"The Liberal Democratic Party (LDP) is on the verge of becoming an 
opposition party, and the majority of people are hoping for Lower 
House dissolution. Under such circumstances, no cabinet minister 
will probably refuse signing a dissolution document, for such will 
leave him at a disadvantage." 
 
Hirotada Asakawa, also a political analyst, predicted, "If there is 
a cabinet minister opposing the dissolution, Prime Minister Aso will 
dissolve the chamber anyway even by dismissing that person from the 
post." The prime minister is allowed to fire a cabinet minister who 
has refused to sign and to concurrently serve in that person's post. 
Four years ago, then Prime Minister Junichiro Koizumi called the 
so-called postal election after firing Yoshinobu Shimamura as 
agriculture minister. 
 
Another analyst, Kichiya Kobayashi, thinks Aso will not be able to 
dissolve the chamber if there is opposition from a cabinet minister. 
Kobayashi also predicted: 
 
 
TOKYO 00001578  011 OF 017 
 
 
"In such a case, the Prime Minister will have to move up the LDP 
presidential election. In any case, the next general election will 
soon follow that offers slim chances for LDP victory." 
 
What is the future of the Aso administration like? One of the key 
points is whether or not the highly popular Miyazaki Gov. Hideo 
Higashikokubaru will join the LDP. Arima commented: 
 
"Some people might vote for the LDP if Higashikokubaru says, 'The 
LDP has changed because I have joined it.' But at present, the LDP's 
pathetic stance of begging him to run in the election on its ticket 
seems counterproductive." 
 
Kobayashi, too, offered a severe opinion: 
 
"It would be better for the LDP to come up with a solid manifesto 
and frontally face the election by addressing the question of 
hereditary seats, a reduction of the number of Diet seats, and other 
matters." 
 
Another key element is a false donation issue involving Democratic 
Party of Japan (DPJ) President Yukio Hatoyama. It is good news for 
the Aso cabinet, which has been suffering dwindling support ratings 
despite a string of measures, such as a cash handout program, a 
pump-priming budget, and a 1,000 yen expressway toll program. 
 
Asakawa predicted that the Hatoyama case will not develop into a 
huge scandal that can stop the ongoing trend for a change of 
government. 
 
The LDP, too, is saddled with murky donations to Finance Minister 
Kaoru Yosano and to Economy, Trade and Industry Minister Toshihiro 
Nikai. They are likely to become a point at issue in upcoming 
campaigning for the election. Kobayashi thinks the trend will not 
change unless new facts come to light. Arima noted: 
 
"Nationally, there is deep mistrust in LDP politics due the pension 
issue, introduction of the insurance system for people 75 and older, 
and other matters." 
 
(15) Prime Minister Aso being besieged from all sides; Political 
situation to become fluid after Tokyo Metropolitan Assembly 
election 
 
TOKYO SHIMBUN (page 2) (Abridged slightly) 
July 10, 2009 
 
As it looks more likely that the political situation over whether 
Prime Minister Taro Aso resigns will become fluid after Tokyo 
Metropolitan Assembly election on July 12, tensions are growing day 
by day in the ruling Liberal Democratic Party (LDP). This newspaper 
simulated the possibility of Aso's resignation, what impact Aso's 
exit would have on the timing for the dissolution of the House of 
Representatives and a general election. The extremely severe 
situation lies ahead for Aso after he returns home. 
 
The general view in the LDP is that although the ruling coalition 
has set a low bar for  victory, which means that the ruling parties 
should control a majority (64 seats) in the Tokyo Metropolitan 
Assembly, it will be extremely difficult for the ruling camp to 
exceed the win-lose line. 
 
 
TOKYO 00001578  012 OF 017 
 
 
If the ruling coalition fails to top the low threshold for victory, 
moves to unseat Aso as prime minister will intensify. Calls for 
Aso's resignation will likely be heard not only from junior and 
mid-level lawmakers, who are not confident of winning their seats, 
but also from LDP executive members and faction leaders who have 
supported Aso. 
 
A major tactic to prevent such calls is the dissolution of the Lower 
House immediately after the Tokyo assembly election. However, it is 
not a realistic idea because if the Prime Minister chooses this 
option, there will be a possibility that the LDP will fall into the 
opposition, leading to the party's collapse. 
 
Expectations are strong that former Prime Minister Yoshiro Mori, who 
has strong influence over the Aso administration, will pursue Aso 
not to dissolve the Lower House right after the Tokyo race. There is 
a sufficient possibility that Aso, who has confidence in himself, 
will give up on an early dissolution. 
 
It is certain that the moves to oust Aso will become stronger if 
there is no fear of the Lower House being dissolved early. If the 
situation becomes increasingly chaotic, Aso will be forced to step 
down from his post as prime minister. It is presumable that the New 
Komeito, the LDP's junior coalition partner, which takes a stance at 
present of allowing Aso to dissolve the lower chamber on his own, 
will abandon Aso. 
 
If the situation develops into Aso's resignation, the LDP will 
immediately conduct a presidential election. However, since there is 
little time left until the end of the current Diet session, the LDP 
leadership race will be held in a general meeting of all party 
members from the two Diet chambers. It is unpredictable that how 
many members will run for the presidency. What is clear is that the 
LDP regardless will face an uphill battle in the general election. 
The public has an icy view toward replacing again prime minister 
immediately before the Lower House election. It is difficult for the 
LDP to regain party strength even if the LDP goes into the snap 
election under the new president's leadership, replacing Aso. 
 
There is another scenario that Aso will stay on in the prime 
minister's post until the end of the ongoing Diet session. If such 
is the case, Aso will dissolve the Lower House. 
 
(16) Lower House election or oust-Aso after Tokyo assembly 
election? 
 
NIKKEI (Page 2) (Full) 
July 9, 2009 
 
It is certain that the result of the July 12 Tokyo Assembly election 
will have an impact on Prime Minister Taro Aso's strategy for 
dissolving the House of Representatives and calling a general 
election. The ruling parties intend to devote their energy to 
securing a majority (64 seats) of the Tokyo assembly, which they 
consider the victory-or-defeat line. If they lose the election, 
calls for putting off Lower House dissolution and for Aso's 
resignation as prime minister will likely spread. The opposition 
camp plans to shake the ruling coalition by submitting a 
no-confidence motion against the Aso cabinet. Nobody can predict how 
the political situation turns out. 
 
DPJ may prevent Aso from resigning by presenting no-confidence 
 
TOKYO 00001578  013 OF 017 
 
 
motion 
 
The main opposition Democratic Party of Japan (DPJ) looks forward to 
an early dissolution of the Lower House by Prime Minister Aso, who 
has been suffering from low support rates in polls. A no-confidence 
motion against the cabinet is a strategy for such. It is expected 
that a motion will be voted down by the ruling camp even if 
submitted. The DPJ's aim is to have Aso win the confidence and the 
LDP lose the credibility of removing Aso from office. DPJ President 
Yukio Hatoyama told reporters yesterday at party headquarters that, 
"We will make a decision after watching the Tokyo assembly 
election." 
 
The DPJ intends to push forward with important bills, aiming to seek 
to constrain Aso to delay dissolution, citing deliberations on the 
bills as a reason. A bill to expand relief to victims of Minamata 
disease was enacted on July 8. A bill amending the Organ 
Transplantation Law will probably be put to a vote on July 10 in a 
plenary session of the House of Councillors, after an interim 
reporter is made. 
 
The ruling and opposition parties have agreed to refer a special 
measures bill on cargo inspections on ships going and out of North 
Korea to the Lower House Antipiracy Special Committee, skipping 
explanations on the bill and question-and-answer sessions at a Lower 
House plenary session. The special committee will launch 
deliberations on July 9. 
 
Speeding up the passage of bills is the DPJ's aim to prepare for a 
no-confidence motion against the cabinet. 
 
The DPJ's calculation is that if key bills are enacted, criticism 
will be limited for it boycotting deliberations after the adoption 
of a censure motion. 
 
If the DPJ is defeated in the Tokyo assembly race, the submission of 
a no-confidence motion and censure resolution could become an excuse 
for LDP members calling for Aso to quit his post. Hatoyama said 
yesterday: "We will need to ascertain how the Prime Minister and the 
LDP respond to (a no-confidence motion). We should be cautious." 
 
LDP may push back general election if it loses Tokyo election 
 
"A decision on Lower House dissolution comes before anything else. 
If you care about among other matters, deliberations on bills, there 
will be no end," said a person close to Aso. 
 
The Prime Minister's Official Residence's (Kantei) side has a 
scenario that Aso will dissolve the Lower House next week after the 
ruling camp secures a majority of the Tokyo Metropolitan Assembly, 
in order to hold the snap election in early August. Aso said: "I 
will make a decision on my own at an appropriate time." 
 
However, the LDP has lost large-scale local elections for the fourth 
time in a row since Yukio Hatoyama became DPJ president. If the 
party is defeated in the Tokyo race, which has drawn much attention, 
it could portend a trend of unaffiliated voters in urban areas 
voting DPJ. Chances are that the view calling for putting off Diet 
dissolution will gain greater momentum. 
 
In the LDP, calls are now gaining ground for a pursuit of DPJ 
President Hatoyama's political fund issue. If Aso fails to dissolve 
 
TOKYO 00001578  014 OF 017 
 
 
the Lower House next week, the possibility is that the lower chamber 
will be dissolved immediately before July 28 when the current Diet 
session ends to call a general election in late August or later. 
 
The New Komeito's position is that it is desirable for it to have 
one month between the Tokyo race and the general election. Secretary 
General Kazuo Kitagawa told reporters, "I cannot say that the result 
of the Tokyo assembly election will have no impact on the timing of 
Lower House dissolution." 
 
There is the possibility that the drive to unseat Aso as prime 
minister will accelerate if the ruling camp loses the Tokyo race. 
 
"Prime Minister Aso is a relief pitcher. We should choose a starting 
pitcher through a presidential election," said former LDP Secretary 
General Tsutomu Takebe yesterday to junior lawmakers. He stressed 
again that the LDP should carry out a presidential race before the 
Lower House election. 
 
(17) Interview with Honorary ACCJ Chairman Charles Lake: What is 
Japan-U.S. relationship without foreign pressure under Obama 
administration? 
 
MAINICHI (Page 9) (Full) 
July 10, 2009 
 
--..You said in your latest work that the U.S. Obama administration 
will put no pressure on Japan, using the words "black ships will not 
come any more." 
 
"In the past, there were cases in which the U.S. sent black ships to 
Japan or cases in which Japan used black ships, by making them to 
come in order to persuade the domestic audience. However, the Obama 
administration will never put pressure on Japan in order to make it 
change, when it does not want to change. The age when Japan carries 
out domestic reforms using external pressure ended a long time 
ago." 
 
However, even though no black ships have come and there have been no 
calls for them to come, some continue to insist that black ships 
indeed have come, or that the U.S. is behind all this. These people 
are just trying to cause reformists to lose people's trust, by 
setting off economic nationalism, saying that the structural reforms 
have been made just to comply with a U.S request, without pursuing 
essential discussion. I call them the "expel the barbarians" faction 
of the Heisei Era." 
 
-- The mentality of bureaucrats at Kasumigaseki (Japan's 
bureaucratic center), who have thus far used external pressure, 
might not have changed. 
 
"Not necessarily so. Both bureaucrats and politicians understand 
that now is no longer the time when black ships come to Japan. It 
may sound as if they have not changed, as you say, because there are 
cases in which it is easier to implement reforms, if they say at the 
implementation stage that this request was made by the U.S. In 
Japan, prime ministers have been replaced almost every year, making 
it impossible for it to come up with a strategic stance. People are 
now asking around 'What will the Obama administration seek (from 
Japan)?' or 'What is his world-view?' However, when it comes to what 
Japan should do, some people are unable to give any explanation at 
all." 
 
TOKYO 00001578  015 OF 017 
 
 
 
-- What is the Obama administration's view of Japan now? 
 
"Japan will remain an important ally of the U.S. The U.S. will move 
ahead with a partner that can move ahead. A new world order will be 
created through efforts to deal with the global economic crisis. The 
U.S. will give high scores to countries that have moved ahead with 
the U.S. in building a new order. If Japan remains unable to make 
decisions, the U.S. will not wait for its decision forever. I am 
telling Americans, 'Now happens to be the time when Japan's politics 
has come to a standstill. I want you to patiently watch Japan make 
decisions.' In the case of the U.S., policy making on such issues as 
the prevention of global warming, for instance, had to wait until 
campaigns for the presidential election was over. 
 
The Asia-Pacific Economic Cooperation forum (APEC) will become very 
important both for Japan and the U.S. Japan will host the meeting. 
The U.S. will serve as the next host nation. Japan will take the 
initiative to strengthen the free trade system and in the energy 
area and set a trend. On such an occasion, if Japan strategically 
cooperates with the U.S., the next host nation, it will be a good 
opportunity to show that Japan and the U.S. are the axis of APEC. I 
am keeping close tabs on various parties' manifestos for the 
upcoming Lower House election in terms of what strategic thinking 
they have as a political party of the host nation for APEC 
conference. This is the indispensable item for the manifesto of a 
political party that will run the government. 
 
-- There will be an Upper House election next year. Japan's 
political situation will remain unstable for some time to come. 
 
"There are challenges to be tackled regardless of ideological 
inclinations. Former president Bush on January 7 invited then 
president-elect Obama and past presidents, including his own father, 
Mr. Clinton and Mr. Carter, to the White House. Former presidents of 
both the Republican and Democratic Parties gathered and sent a 
message (to Mr. Obama) that the current economic crisis must be 
overcome not as a problem to be settled either by the Republican 
Party or by the Democratic Party but as a crisis concerning the U.S. 
That is because the voices of the people are calling on them to 
jointly tackle problems on which they can agree. This tendency is 
particularly strong concerning the security area. That is because an 
incoming missile does target just one of the two parties. Japan 
shares this situation that requires approaches regardless of 
ideological inclinations. 
 
Charles Lake: 47 years old. Born in South Carolina. Graduated from 
George Washington University Law School. Serving as representative 
and chairman of Aflac Japan, after serving as head of the United 
States Trade Representative's Japan Desk. His works include "Great 
Japan - Black Ships Will Not Come Any Longer." (published by Asahi 
Shimbun). 
 
(18) TOP HEADLINES 
 
Asahi: 
Foreign Ministry officials disposed of documents on secret nuke arms 
pact 
 
Mainichi, Yomiuri, Nikkei, and Sankei: 
 
G-8, developing countries aim to conclude WTO trade talks in 2010 
 
TOKYO 00001578  016 OF 017 
 
 
 
Tokyo Shimbun: 
Ruling parties favor Lower House election in late August or later 
 
Akahata: 
JCP Shii busy stumping for candidates for Tokyo Metropolitan 
Assembly 
 
(19) EDITORIALS 
 
Asahi: 
(1) G-8 nuclear statement: G-8 should change history to eliminate 
nuclear weapons 
(2) Governors and decentralization: Don't make a fuss for nothing 
 
Mainichi: 
(1) Japan-U.S. cooperation needed for elimination of nuclear 
weapons 
(2) Aso diplomacy produces few results 
 
Yomiuri: 
(1) G-8 economic declaration: World economic recovery still needs 
careful efforts 
(2) JR West derailment accident: Safety consciousness of executives 
questioned 
 
Nikkei: 
(1) G-8 alone cannot lead the world 
(2) Will Indonesia's economy continue to grow even after Yudhoyono's 
reelection as president? 
 
Sankei: 
(1) G-8 summit: 80 percent reduction goal too high 
(2) Japan-Russia summit: Distortion of history regrettable 
 
Tokyo Shimbun: 
(1) Anti-global warming measures: How to limit temperature rise to 
2C 
(2) Cargo inspection law: Details should be ironed out 
 
 
Akahata: 
(1) G-8 summit: Campaign necessary for implementing declaration 
 
(20) Prime Minister's schedule, July 8 
 
NIKKEI (Page 2) (Full) 
July 10 
 
Evening Met with U.S. President Obama at the Guardia di Finanza 
Campus in L'Aquila in Italy. Working dinner with leaders of the G-8 
countries. Met with the U.S. president again. Stayed in L'Aquila. 
 
Prime Minister's schedule, July 9 
 
NIKKEI (Page 2) (Full) 
July 10 
 
Morning  Met with Russian President Medvedev at the Guardia di 
Finanza Campus. Summit meeting of G-8 and emerging countries. 
Afternoon Photo session with leaders of 14 countries. Working lunch. 
Junior-8 summit for young people from various countries. Photo 
 
TOKYO 00001578  017 OF 017 
 
 
session. Major Economies Forum (MEF). 
 
ZUMWALT