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UNCLAS SECTION 01 OF 14 TOKYO 001673 
 
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 07/24/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
4) Coordination for a mid-November visit to Japan by President Obama 
 (Nikkei) 
 
5) USFJ Commander Lt. Gen. Rice tells press that it would be 
difficult to revise the agreement to realign U.S. forces in Japan as 
the DPJ has proposed  (Nikkei) 
 
Roos testimony: 
6)  In Senate confirmation hearing, Ambassador-designate Roos 
stresses that the U.S.-Japan relationship remains the cornerstone of 
America's Asia policy  (Nikkei) 
7)  Roos sees no change in U.S.-Japan relations should the DPJ win 
the Lower House election and become the ruling party  (Yomiuri) 
8)  Gist of testimony by Ambassador-designate before the Senate 
committee  (Nikkei)    6 
 
Opinion poll: 
9)  Democratic Party of Japan (DPJ) favored by 42 PERCENT  of voters 
in Yomiuri election-series poll  (Yomiuri) 
10)  DPJ picking up increasing support from unaffiliated (floating) 
voters  (Yomiuri) 
 
DPJ policy switch: 
11)  DPJ to pull back policy stance of calling for revision of the 
U.S.-Japan Status of Forces Agreement  (Mainichi) 
12)  DPJ will allow MSDF to continue Indian Ocean refueling mission 
to end of year, as it moves toward a pragmatic foreign and security 
policy line  (Asahi) 
13)  DPJ considering two sites in Kyushu for possible relocation of 
Futenma Air Station from Okinawa  (Sankei) 
14)  DPJ's new pragmatic foreign and security policy line could be a 
double-edged sword for the party  (Tokyo Shimbun) 
15)  Prime Minister Aso and other LDP figures criticize the DPJ's 
policy switch  (Mainichi) 
 
16) Social Democratic Party wants to codify the three no-nuclear 
principles  (Yomiuri) 
 
17) Different campaign styles: LDP President Aso focusing on 
organizational vote, DPJ head Hatoyama aiming at floating voters by 
outdoor speechmaking  (Nikkei) 
 
18) Business leaders end summer seminar but stay clear of evaluating 
party policies as usual in deference to the election campaign 
(Mainichi) 
 
19) Japan's trade surplus expands, reflecting rising exports to 
China as trade with U.S., Europe slumps  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi 
Alico Japan customers' credit card data abused 
 
Mainichi: 
 
TOKYO 00001673  002 OF 014 
 
 
DPJ retreats from plan to revise Japan-U.S. Status of Forces 
Agreement 
 
Yomiuri: 
Customers' credit card data apparently leaked from Alico Japan 
 
Nikkei: 
Uniqlo opens outlets at major department stores 
 
Sankei: 
Accountant of firm that bought former Goodwill Group suspected of 
evading billions of yen in taxes 
 
Tokyo Shimbun: 
Asian DNA detected in connection with 1995 Hachioji supermarket 
murder-robbery incident 
 
Akahata: 
Rally held for minimum wage hike ahead of general election 
 
2) EDITORIALS 
 
Asahi: 
(1) Business circles must decide to stop making corporate donations 
(2) North Korea must heed U.S.' signal 
 
Mainichi: 
(1) 2009 Lower House election: Political parties must vie with each 
other over secure system 
 
Yomiuri: 
(1) Lawmakers need insights to lead bureaucracy 
(2) Face up to threats, boost defense capability 
 
Nikkei: 
(1) DPJ's policy index ambiguous 
(2) Questions emerge on Obama administration's achievements 
 
Sankei: 
(1) DPJ manifesto: Party must opt for pragmatic policy course 
(2) ARF ministerial: North Korea has no friends 
 
Tokyo Shimbun: 
(1) Bill for JAL revival plan must not be passed on to general 
public 
(2) Burma's dangerous path to isolation 
 
Akahata: 
(1) U.S. joins TAC: Efforts toward peaceful community must be 
accelerated 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 23 
 
NIKKEI (Page 2) (Full) 
July 24, 2009 
 
10:09 Met Japan Electrical Manufacturers' Association Chairman 
Nishida at the Electrical Manufacturers Hall in Ichiban-cho. 
10:26 Met Japanese Shipowners Association Chairman Miyahara in the 
Shipping Building in Hiraga-cho. 
 
TOKYO 00001673  003 OF 014 
 
 
10:42 Handled paperwork at his private office in Nagata-cho. 
11:02 Met National Federation of Fisheries Cooperative Associations 
Chairman Hattori in the Co-op Building in Uchikanda. 
11:38 Met Japan Chamber of Commerce and Industry Chairman Okamura at 
the Imperial Hotel. 
12:36 Met Public Affairs Office head Furuya at party headquarters. 
13:53 Met Central Federation of Societies of Commerce and Industry 
of Japan Chairman Ishizawa in the New Shinbashi Building. 
14:39 Met Marine & Fire Insurance Association of Japan Chairman 
Masatoshi Sato at the Marine & Fire Insurance Hall in Marunouchi. 
15:01 Met Federation of Bankers Associations of Japan Chairman 
Nagayasu at the Bankers' Hall in Marunouchi. 
15:25 Met Life Insurance Association of Japan Chairman Yoshio Sato 
in the Shin Kokusai Building in Marunouchi. 
15:57 Met Japan Automobile Manufacturers Association Chairman Aoki 
and others at the Japan Automobile Hall in Shibadaimon. 
16:58 Met Japan Trucking Association Chairman Nakanishi at the 
Shinjuku L Tower in Nishi-Shinjuku. 
18:00 Met at the Kantei with junior high school students who 
attended an exchange program. 
18:52 Met Deputy Chief Cabinet Secretary Uruma. 
19:38 Returned to his official residence. 
 
4) Coordination underway for Obama visit to Japan in mid-November 
 
NIKKEI (Page 1) (Full) 
July 24, 2009 
 
The Japanese and U.S. government have begun making arrangements for 
U.S. President Barack Obama to make his first visit to Japan in 
mid-November. A Japan-U.S. summit to be held during his stay in 
Japan is expected to serve as a venue to reconfirm the maintenance 
and strengthening of the Japan-U.S. alliance based on the results of 
the Aug. 30 House of Representatives election. With next year 
marking the 50th anniversary of the conclusion of the revised 
U.S.-Japan Security Treaty, they are also expected to discuss a new 
document pertaining to bilateral security. 
 
The likelihood is that the President will stop over in Japan after 
attending the Asia-Pacific Economic Cooperation (APEC) meeting to be 
held on Nov. 14-15 in Singapore. Besides Japan, the President is 
expected to visit several countries in Asia, including China and 
Indonesia where he spent his childhood. 
 
After the Obama administration was launched in January, Tokyo and 
Washington has agreed to realize President Obama's visit to Japan 
within six months. The two governments have begun making concrete 
adjustments to their schedules after confirming the policy direction 
that the President will visit Japan even if there is a political 
power shift as a result of the Lower House election. 
 
5) USFJ Commander Rice: "Difficult to revise US forces realignment 
agreement" 
 
NIKKEI (Page 2) (Full) 
July 24, 2009 
 
U.S. Forces Japan (USFJ) Commander Lt. Gen. Rice on July 29 gave a 
speech at the Foreign Correspondents' Club of Japan. Referring to 
the realignment of U.S. forces in Japan, on which the governments of 
Japan and the U.S. reached an agreement in 2006, he said, "It is not 
a menu to be implemented by choosing bits and pieces. All the 
 
TOKYO 00001673  004 OF 014 
 
 
relocation plans are interdependent. Even if one part fails, it 
could derail the entire road map." He presumably made that statement 
to check the Democratic Party of Japan's proposition to take a 
second look at the realignment scheme. 
 
The USFJ realignment agreement features the transfer of Futenma Air 
Station in Okinawa and the relocation of carrier-based jet fighters 
deployed at Iwakuni Air Base in Yamaguchi Prefecture. Lt. Gen. Rice 
said, "The realignment agreement consists of contents that we spent 
over three years negotiating (with the Japanese side). It is 
important for Tokyo and Washington to continue to support the road 
map and implement it to the letter." 
 
Japan has positioned state-of-the-art F-22 stealth fighters as the 
most likely candidate for its follow-on mainstay fighter planes 
(FX). USFJ Commander Rice stressed that there is no change in the 
U.S. policy of ending production of that aircraft, noting, "The 
overwhelmingly dominant view among the U.S. President, the defense 
secretary and military commanders is that there is no need to 
produce that aircraft any longer." 
 
6) U.S. Ambassador-designate to Japan Roos testifies at Senate 
hearing: "Japan-U.S. relationship cornerstone of Asia"; underscores 
closeness to center of administration 
 
NIKKEI (Page 7) (Full) 
July 24, 2009 
 
Hiroshi Maruya, Washington 
 
U.S. Ambassador-designate to Japan John Roos, who will be the Obama 
administration's key man in policy toward Japan, expressed his views 
in public for the first time on July 23. He emphasized that he will 
work to strengthen the Japan-U.S. relationship. Democratic Party 
heavyweights who have close relations with Japan, including former 
Vice President Walter Mondale, a former ambassador to Japan, were 
also present at the Senate hearing when Roos testified. This 
demonstrated that Roos, who lacks diplomatic experience, has the 
support of the entire Democratic Party and highlighted his closeness 
to the center of the Obama administration. 
 
At the hearing of the Senate Foreign Affairs Committee, Roos took 
note of the "special bond" between Japan and the U.S. and declared 
his intention to work for strengthening the alliance as the 
"cornerstone" of stability in Asia and the Pacific. He avoided going 
into details on U.S. Forces Japan realignment, North Korea, and 
other issues and steered himself safely throughout the hearing. 
 
Senators present at the hearing asked him questions relating to the 
possibility of a change of administration in Japan after the general 
election in August. Roos gave his analysis that there have been 
policy changes in the recent pronouncements of the Democratic Party 
of Japan, and noted, "We will need to watch its response from now 
on." He added that regardless of the election results, "I am 
confident that there will be no fundamental change in the U.S.-Japan 
alliance." He seems to be closely watching the Japanese political 
situation. 
 
Roos, who is a lawyer in California's Silicon Valley, will be taking 
up the ambassadorial post without any previous experience in 
diplomacy and public service. He was visibly nervous at the hearing. 
Therefore, the ruling Democratic Party played up his closeness to 
 
TOKYO 00001673  005 OF 014 
 
 
the "heavyweights" rather than going into concrete policy issues in 
his first public statement. 
 
Roos, who contributed to political fundraising for President Barack 
Obama in last year's election, is a long-time Democratic Party 
supporter. Senate Foreign Affairs Committee Chairman John Kerry 
(Democrat) said: "I thank Mr Roos for his support and friendship 
during the 2004 presidential election campaign (when Kerry had run 
as a candidate)" adding, "I am close to the Roos family outside of 
politics," stressing their close relationship. 
 
7) Roos: There will be no change to U.S.-Japan relations even if DPJ 
administration launched 
 
YOMIURI (Page 2) (Full) 
July 24, 2009 
 
John Roos, 54, who has been nominated as new U.S. Ambassador to 
Japan by President Barack Obama, attended a Senate confirmation 
hearing on the morning of July 23, late at night on July 23, Japan 
time. Before the Senate Foreign Affairs Committee, Roos said, "The 
U.S.-Japan alliance has been a cornerstone of peace and stability in 
the Asia-Pacific region." Further, asked about the possibility of 
Japan's U.S. policy shifting in the event a change of government 
occurs in Japan after the forthcoming House of Representatives 
election, Roos emphatically said: "There will be no fundamental 
change to U.S.-Japan relations. I believe the Democratic Party of 
Japan will firmly maintain the bilateral alliance." 
 
8) Gist of U.S. Ambassador-designate to Japan John Roos' testimony 
at the Senate hearing: Close relationship to continue under any 
administration 
 
NIKKEI (Page 7) (Full) 
July 24, 2009 
 
Washington Bureau 
 
Following is the gist of the testimony given by U.S. 
Ambassador-designate to Japan John Roos at the U.S. Senate Committee 
on Foreign Relations on July 23: 
 
Opening statement 
 
I am deeply honored by the nomination by President Barack Obama to 
become the ambassador of a wonderful country like Japan. As former 
Ambassadors Mondale and Foley have mentioned, there is a special 
bond between Japan and the United States. 
 
I believe that my background (as a lawyer in Silicon Valley) will be 
useful for Japan. We will continue to cooperate with the Republic of 
Korea, Australia, and other (neighboring countries) regarding the 
situation on the Korean peninsula. We will promote democratic 
values, human rights, and other common values (with Japan). 
 
The Japan-U.S. alliance is the cornerstone of stability in Asia and 
the Pacific. I will work hard to consolidate this alliance. We would 
like to work with Japan on Iraq, Afghanistan, climate change, and 
other major international issues. 
 
Economic issues 
 
 
TOKYO 00001673  006 OF 014 
 
 
Japan and the United States are the world's two major economies 
which play a leading role in economic recovery. The two countries 
play a significant role and will have a synergic effect. It is 
important to promote free and fair trade. 
 
House of Representatives election 
 
No one knows what the outcome of the Lower House election in Japan 
will be, and I will not make predictions on the results. We will 
have to watch developments from now on. Close relations between 
Japan and the U.S. will continue no matter what government is in 
power. 
 
Democratic Party of Japan (DPJ) 
 
Both the Liberal Democratic Party (LDP) and the DPJ have close 
relations with the U.S. There have been various pronouncements about 
the cost of stationing U.S. forces in Japan and the refueling 
mission, but the DPJ's policies will probably change. I believe that 
the DPJ will be equally committed to strengthening the bilateral 
relationship like the LDP. 
 
9) Poll: DPJ keeps pole position, scoring 42 PERCENT  for 
proportional representation 
 
YOMIURI (Page 1) (Abridged) 
July 24, 2009 
 
Ahead of the forthcoming general election for the House of 
Representatives, the Yomiuri Shimbun conducted a telephone-based 
nationwide public opinion survey on July 21-23. In the survey, 
respondents were asked which political party they would vote for in 
their proportional representation blocs. In this public preference 
of political parties for proportional representation, the Democratic 
Party of Japan (Minshuto) outdistanced the Liberal Democratic Party, 
with the DPJ scoring 42 PERCENT  and the LDP at 23 PERCENT . In 
single-seat constituencies as well, the DPJ outnumbered the LDP, 
respectively at 39 PERCENT  and 25 PERCENT . In the last survey 
taken July 7-9, the DPJ was at 41 PERCENT  and the LDP at 24 PERCENT 
 for proportional representation, and respectively at 41 PERCENT 
and 23 PERCENT  for single-seat constituencies. As seen from the 
figures, the trend remains unchanged and the DPJ has been ahead of 
the LDP since the House of Representatives was dissolved. 
 
Respondents were also asked to choose whether Prime Minister Aso or 
DPJ President Hatoyama is more appropriate to become prime minister 
after the next election. In this popularity ranking for the 
premiership, Hatoyama dropped to 40 PERCENT  (46 PERCENT  in the 
last survey), with Aso at 22 PERCENT  (21 PERCENT  in the last 
survey). 
 
The Aso cabinet's support rate was 20.0 PERCENT  (20.2 PERCENT  in 
the last survey), and its nonsupport rate was 67.8 PERCENT  (69.3 
PERCENT  in the last survey). In the breakdown of public support for 
political parties, the DPJ stood at 31.0 PERCENT  (28.7 PERCENT  in 
the last survey), with the LDP at 25.3 PERCENT  (23.8 PERCENT  in 
the last survey). The DPJ outpaced the LDP in the survey this time 
as well. 
 
10) Poll: Floating voters favor DPJ 
 
YOMIURI (Page 2) (Abridged) 
 
TOKYO 00001673  007 OF 014 
 
 
July 24, 2009 
 
Findings from the Yomiuri Shimbun's pre-election poll this time 
clearly show that the Democratic Party of Japan (Minshuto) is in a 
singular position and that the Liberal Democratic Party is facing an 
uphill battle. Floating voters account for about 30 PERCENT  of the 
nation's voting population and they hold the key to the election's 
outcome. In their preference of political parties as well, the DPJ 
has a big lead over the LDP. Among those floating voters with no 
particular party affiliation, the DPJ was at 32 PERCENT  and the LDP 
at 10 PERCENT  for proportional representation, and respectively at 
24 PERCENT  and 10 PERCENT  for single-seat constituencies. In the 
last survey as well, the DPJ was above the LDP, with the DPJ scoring 
32 PERCENT  and the LDP at 15 PERCENT  for proportional 
representation and the DPJ marking 31 PERCENT  and the LDP at 11 
PERCENT  for single-seat constituencies. In the survey this time, 
the DPJ leveled off over 30 PERCENT  for proportional 
representation. Meanwhile, the LDP declined. As a result, the gap 
has expanded. In their preference for single-seat constituencies, 
both the DPJ and the LDP decreased, but their gap still remains 
wide. 
 
However, there is also a matter of concern to the DPJ. 
 
Among the floating voters, 76 PERCENT  answered "no" when asked if 
they thought DPJ President Hatoyama had fulfilled his accountability 
for his fund-managing body's false political fund reports. In the 
last survey as well, negative answers accounted for 77 PERCENT 
among them. Hatoyama has not cleared away their doubts at all. In 
popularity ranking for prime minister among the floating voters, 
Hatoyama outnumbered Prime Minister Aso, scoring 31 PERCENT . 
However, the figure is markedly down from 41 PERCENT  in the last 
survey. 
 
11) DPJ retreats from SOFA revision plan 
 
MAINICHI (Top play) (Abridged) 
July 24, 2009 
 
The Democratic Party of Japan (Minshuto) yesterday released its 
policy index for 2009, which will be incorporated into its manifesto 
(campaign pledges) for the upcoming general election for the House 
of Representatives. The DPJ until now has insisted on its plan to 
revise the Japan-U.S. Status of Forces Agreement (SOFA) to create 
"an more equal alliance between Japan and the United States." The 
released platform, however, backs down from that stance, going no 
further than to say the DPJ will "bring up the issue of revising 
SOFA provisions." In its earlier platform released last October, the 
DPJ had announced its plan to "set about drastic revisions." 
 
The DPJ platform, setting forth its foreign and defense policies, 
says Japan will "establish a bilateral alliance with the United 
States for the new era." In this regard, the platform declares that 
Japan will "build diplomatic strategies on its own and clarify its 
standpoint" and will "hold straightforward talks and build an equal 
partnership." In addition, it says Japan will "bring up the issue of 
revising the SOFA pact" and "continue to review such issues as the 
realignment of U.S. forces in Japan and the presence of U.S. 
military bases in Japan." 
 
In April 2008, the DPJ worked out a draft revision of the SOFA with 
the Social Democratic Party and the People's New Party in the wake 
 
TOKYO 00001673  008 OF 014 
 
 
of frequent incidents involving U.S. servicemen in Okinawa. At the 
time, the DPJ urged the government to translate it into action. In 
July that year, the DPJ released its Okinawa vision, which also 
specified its intention to "immediately translate drastic SOFA 
revisions into action." 
 
"There are various issues like SOFA, but we will not put them all on 
the table," DPJ Secretary General Katsuya Okada told reporters 
yesterday in the city of Ota, Gumma Prefecture when asked about 
Japan-U.S. relations. "First of all," Okada added, "we will 
establish a relationship of mutual trust between Prime Minister 
(Yukio) Hatoyama and President Obama." With this, Okada indicated 
that the DPJ, after taking the reins of government, would not 
jump-start negotiations on specific issues like the SOFA and would 
instead go ahead with building a relationship between the two 
leaders. 
 
12) DPJ deletes "withdrawal from Indian Ocean" from policy index, 
shifts to pragmatic line 
 
ASAHI (Top play) (Slightly abridged) 
Eve., July 23, 2009 
 
The Democratic Party of Japan (DPJ) published on July 23 its 2009 
policy index, which will serve as the basis of its manifesto 
(campaign pledges) for the House of Representatives election. In the 
key area of foreign policy and defense, the withdrawal of the 
Maritime Self-Defense Force (MSDF) from the refueling mission in the 
Indian Ocean, a proposal present in the original draft of the policy 
index in June, has been deleted, and the MSDF's deployment until the 
expiration of the law is now accepted. The wording on the review of 
the Japan-U.S. Status of Forces Agreement (SOFA) has also been 
softened, and this will also be reflected in the manifesto. The DPJ 
has shifted to a pragmatic line in anticipation of a change of 
administration. 
 
The DPJ had been opposed to the SDF's overseas missions and to the 
refueling mission in the Indian Ocean. On the other hand, it had 
included in its previous policy index the legislation of a "law on 
eradication of terrorism," which called for humanitarian and 
reconstruction assistance operations in Afghanistan, including the 
dispatch of the SDF, because former President Ichiro Ozawa was 
positive about participation in the International Security 
Assistance Force (ISAF) in Afghanistan. 
 
However, the new policy index limits Japan's role to "playing a 
positive role in the eradication of poverty and in the 
reconstruction of the country," leaving out the passage on "Afghan 
aid." The "termination of the MSDF refueling mission" has also been 
deleted from the draft. 
 
This means that the MSDF deployment will be allowed until the 
expiration of the law even after the DPJ takes over the 
administration. The question now is what will happen after the 
special measures law serving as the legal basis of the mission 
expires in January 2010. 
 
On policy toward North Korea, a new item on the "implementation of 
cargo inspection based on the UN Security Council (UNSC) 
resolution," absent in the original draft, has been added. The DPJ 
had refused to deliberate the special measures law for cargo 
inspection in the previous Diet session. In reaction to criticism 
 
TOKYO 00001673  009 OF 014 
 
 
from Prime Minister Taro Aso and others that it caused the bill to 
be scrapped, the DPJ has indicated its intention to legislate this 
law after the Lower House election. 
 
While the original draft called for "working for a drastic revision" 
of SOFA, the new policy index has softened the language to 
"suggesting the revision." By using moderate expressions, the DPJ is 
giving importance to confidence building with the Obama 
administration for the time being after taking over political 
power. 
 
On the Northern Territories issue, the word "collective" has been 
deleted from the previous "collective return at an early date," 
signaling a shift to a flexible stance. The DPJ is falling in step 
with the government's position that as long as sovereignty over the 
four islands is recognized, return in stages is acceptable. 
 
This policy index will serve as the DPJ's basic policies after 
taking over the administration. The original draft had been based on 
Ozawa's propositions on an equal Japan-U.S. alliance and UN-centered 
policy, containing passages that might give rise to friction between 
Japan and the U.S. However, the DPJ has clearly shifted to a 
pragmatic line as the change of administration is becoming a real 
possibility. 
 
13) DPJ eyes two bases in Kyushu as relocation sites for Futenma Air 
Station: Feasibility doubtful, complications expected 
 
SANKEI (Page 3) (Slightly abridged) 
July 24, 2009 
 
It was learned on July 23 that in connection with the relocation of 
the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa) 
under the U.S. Forces Japan (USFJ) realignment program, the 
Democratic Party of Japan (DPJ) is considering the Air Self-Defense 
Force (ASDF) base in Nyutabaru, Miyazaki Prefecture and the ASDF 
Tsuiki base in Fukuoka Prefecture as possible sites for the 
relocation of Futenma outside Okinawa. These two bases currently 
play the role of supporting the Futenma base for the USFJ in an 
emergency. While the DPJ is thinking of discussing alternative plans 
for Futenma relocation, including relocation to Guam or other 
locations abroad, with the U.S. government if it takes over the 
administration, it is unclear whether the U.S. side will agree to 
this since it is negative about reviewing the existing plans. 
 
According to an informed source, DPJ President Yukio Hatoyama 
suggested the ASDF bases in Nyutabaru and Tsuiki as possible 
relocation sites to his aides. At a meeting in Okinawa on July 19, 
Hatoyama had said that, "At least, we will take positive action 
toward relocation outside Okinawa." 
 
Under the Japan-U.S. agreement on USFJ realignment in 2006, the 
Nyutabaru and Tsuiki bases will take in troops that cannot be 
accommodated on the new facility replacing the Futenma base in a 
"state of armed attack" or in an "emergency in an area around 
Japan," and the construction of runways and barracks has been taking 
place on these bases. 
 
However, they are thought to be too small in size for the relocation 
of the U.S. marines' helicopter units, which are the mainstay on the 
Futenma base. Even DPJ members doubt the feasibility of realizing 
this plan. 
 
TOKYO 00001673  010 OF 014 
 
 
 
The DPJ published its "Policy Index 2009" - which will be the basis 
of its manifesto (campaign pledges) for the House of Representatives 
election - on July 23, but there was no mention of the Futenma 
relocation issue. The party has been criticized by the government 
and ruling parties for its "deviousness" in "talking about 
relocation outside Okinawa but not saying where" (Foreign Minister 
Hirofumi Nakasone). It will be interesting to see what specific 
plans the DPJ will include in its manifesto to be published 
shortly. 
 
14) DPJ's pragmatic policy line on foreign and security affairs is 
double-edged sword 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 24, 2009 
 
The Democratic Party of Japan (DPJ) on July 23 released a set of 
policy proposals, which featured a pragmatic policy line regarding 
foreign and security affairs with an eye on the party assuming the 
reins of government. The set of basic policy proposals is 
characterized by approval of the dispatch of Self-Defense Forces 
(SDF) personnel for anti-terrorism and anti-piracy missions. This is 
the outcome of the party having given consideration to international 
cooperation and relations with the U.S., in particular, in the event 
it will become the ruling party. However, the Social Democratic 
Party (SDP), with which the DPJ is pursying coalition talks after 
the Lower House election, is fiercely opposing the party's policy 
switches. The DPJ's move toward a pragmatic policy line could end up 
being a double-edged sword. 
 
The DPJ had been moving ahead with internal coordinaiton of views 
aimed at supporting the ship inspection special measures bill, which 
was scrapped due to Lower House dissolution. Concerning the 
refueling operations by the SDF in the Indian Ocean, as well, 
President Hatoyama indicated he would determine whether to approve 
the continuation of the operations by the middle of January next 
year, when the operation period is set to end. He noted, "We will 
determine our stance after steadily conferring on the matter with 
concerned countries." 
 
On the anti-piracy measures, too, the DPJ during Diet deliberations 
on the anti-piracy bill, which was enacted in June, took the stance 
that it would approve the dispatch of SDF personnel, provided that 
two conditions - (1) the Japan Coast Guard should be characterized 
as the key player in anti-piracy activities; and (2) Diet 
involvement in the decision to dispatch SDF personnel - were met. 
 
The DPJ has now formally indicated the adoption of those policy 
stances in the set of basic policy stances. However, the SDP, on 
which the DPJ pins hopes as a coalition partner, was quick to oppose 
the DPJ's switch to a pragmatic policy line, with party head Mizuho 
Fukushima quipping, "SDF troops should never be dispatched abroad." 
Even if the DPJ secures a single majority in the Lower House 
election, the party's members fall short of a majority on their own 
in the Upper House. The party inevitably will have to seek 
cooperation from the SDP. 
 
Then president Ichiro Ozawa after the Upper House election in 2007 
categorically said of the refueling operations by the Maritime 
Self-Defense Force (MSDF): "Those operations are not based on a UN 
resolution. They are unconstitutional."  Even if the DPJ explains 
 
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that position of the then president, who is now deputy president, is 
not the position of the party, it is not convincing. Concerning the 
continuation of the refueling operations, the DPJ has yet to fully 
unify internal views. 
 
15) Aso criticizes DPJ's policy switch 
 
MAINICHI (Page 5) (Full) 
July 24, 2009 
 
Prime Minister Taro Aso yesterday criticized the fact that the 
Democratic Party of Japan (DPJ) had condoned the deployment of the 
Maritime Self-Defense Force for anti-piracy missions in its policy 
index for 2009. He told reporters at the Prime Minister's Official 
Residence: "Despite opposing it strongly, they changed the policy 
immediately before the election. I can't understand it." Aso, who 
has been criticized for making policy flip-flops, made an ironical 
comment on the DPJ, saying: "(The DPJ) becomes realistic when the 
election approaches. I want to say that such should be called 
'fuzziness.'" 
 
At a press conference yesterday, New Komeito Secretary General Kazuo 
Kitagawa, too, criticized the DPJ's decision to allow the MSDF to 
continue its refueling mission in the Indian Ocean for the time 
being. He stated: "When they say they have switched to a pragmatic 
policy means they had taken unrealistic stances in the Diet." 
 
16) SDP eyes legislating the three non-nuclear principles 
 
YOMIURI (Page 2) (Full) 
July 24, 2009 
 
Social Democratic Party (SDP) executives decided yesterday to aim at 
turning into law the three non-nuclear principles of not possessing, 
producing or permitting the introduction of nuclear weapons into 
Japan. In talks with the Democratic Party of Japan (DPJ), the party 
is considering presenting this as a condition for forming a 
coalition government after the ruling and opposition blocs traded 
their places through the forthcoming House of Representatives 
election. The SDP will make the proposal to the DPJ and the People's 
New Party shortly. 
 
17) Sharp contrast in election strategies of Aso and Hatoyama 
 
NIKKEI (Page 2) (Excerpts) 
July 24, 2009 
 
At the initial stage of the campaigning for the House of 
Representatives election on Aug. 30, Prime Minister Taro Aso 
(president of the Liberal Democratic Party) and Democratic Party of 
Japan (DPJ) President Yukio Hatoyama are making contrasting moves. 
Aso, who is battling a headwind due to his low popularity, aims to 
garner votes from organizations, by visiting mainly business groups 
to explain his economic stimulus measures. Meanwhile, Hatoyama, who 
view the expansion of support of unaffiliated voters as the key to a 
change in government, is making efforts to dig up floating votes by 
giving stump speeches. 
 
Hatoyama gives priority to stump speeches focused on unaffiliated 
voters 
 
Hatoyama and DPJ Secretary General Katsuya Okada started their 
 
TOKYO 00001673  012 OF 014 
 
 
campaign trail of speeches for the general election on July 23 soon 
after the dissolution of the Lower House. They aim to score with 
swing voters, who brought a victory to the party in the Tokyo 
Metropolitan election, by directly promoting the party's polices to 
voters through their stump speeches. 
 
In the city of Iruma, Saitama Prefecture, Hatoyama, after closing 
his umbrella, said in the pouring rain: "The general election will 
become Japan's first election with the historical mission to bring 
about politics for the sake of people." He also said to an audience 
of 600: "The LDP-New Komeito coalition government has not listened 
to the voice of the public, and has left politics to the 
bureaucrats." 
 
Prior to his speech in Iruma City, Hatoyama delivered a speech in 
Tokorozawa City, Saitama Prefecture, in which there was an audience 
of about 1,500. 
 
Okada gave two stump speeches in Ota City, Gunma Prefecture, and 
another location. On July 24, Hatoyama will stump in Hyogo and Osaka 
Prefectures, and Okada, in Saitama Prefecture. 
 
Meanwhile, Deputy President Ichiro Ozawa, who is responsible for 
election strategy, will remain in the background as Hatoyama and 
Okada lead the DPJ into the Lower House election. 
 
Aso places priority on visiting organizations to secure votes 
 
Aso met with senior officials of 12 business groups, including the 
Japan Automobile Manufacturers Association, Inc., on July 22 and 23, 
to ask them for support. Today he will visit five organizations, 
including the Association of General Constructors of Japan, Inc. 
 
Aso told National Federation of Fisheries Co-operative Associations 
Chairman Ikuhiro Hattori: "I want to strengthen relations so that 
the LDP will be able to continue to hold the reins of government. 
Every single vote from your members will help the LDP." Hattori, who 
has benefited from the government's measures against the issue of 
surging crude oil prices, promised to support the LDP, and he 
immediately ordered local organizations to support the campaigns of 
LDP candidates. 
 
Aso emphasized his administration's achievements during his meetings 
with officials of industrial associations. He told them that he had 
made efforts to revitalize businesses through such measures as 
eco-car tax reductions. He stressed: "The economy has just begun 
showing signs of picking up steam. We need to continue these 
policies." 
 
It is unusual for a prime minister to visit industrial associations 
immediately before an election. Aso is the one who came up with this 
idea. Aso reportedly said to his aides: "A challenge is an 
opportunity. I want to take advantage of this opportunity to 
strengthen the LDP's base." 
 
However, amid the reports focusing on the strength of the DPJ, many 
industrial organizations cannot see any merit in supporting the 
LDP. 
 
18) Nippon Keidanren in quandary over whether it should support LDP, 
which has fallen into crisis, or DPJ, which seeks to end corporate 
donations 
 
TOKYO 00001673  013 OF 014 
 
 
 
MAINICHI (Page 4) (Slightly abridged) 
July 24, 2009 
 
The Japan Business Federation (JBF, Nippon Keidanren) is facing a 
critical decision with the upcoming Lower House election. For the 
business world that has been seeking conservative two-party system, 
it should be happy to see the Liberal Democratic Party (LDP) and the 
Democratic Party of Japan (DPJ) facing off in the election. However, 
the Japan Business Federation is now in a quandary because it 
remains unable to clarify which party it should support and also 
unable to decide on what approach it should take toward the LDP. The 
business group has persistently backed the LDP since 1955 when the 
party structure had the LDP in permanent political power and the 
Social Democratic Party was the perennial main opposition party. Big 
business executives' bewilderment could be detected at the 
Federation's annual summer forum in Karuizawa (Nagano Prefecture) 
that started yesterday. 
 
In another summer seminar held by the Japan Association of Corporate 
Executives (Keizai Doyukai) in Karuizawa on July 16, a business 
leader grumbled: "Even if the LDP loses political power, we probably 
will have to continue donations to the party." 
 
JBF resumed in 2004 lending its good offices in offering donations 
to political parties. Based on its policy evaluations, the group 
decided which parties would receive donations and how much. In the 
initial year, the group provided the LDP with 2.21 billion yen and 
the DPJ with 60 million yen. This difference became wider year by 
year. A senior JBF member said: "Since the level of policy 
attainment is taken into consideration, our evaluation of the DPJ 
tends to be severe," but it is true that then JBF chairman Hiroshi 
Okuda continued to cooperate in having the LDP remain in power, 
declaring his "support for the LDP." 
 
In the upcoming Lower House election campaign, however, the LDP is 
fighting an uphill battle. A JBF executive said that the group will 
make a judgment based each party's campaign promises (manifesto), 
but it intends not to announce the outcome of its evaluation before 
the election. Some business leaders have already begun to take into 
consideration a switch in power to the DPJ. A business leader said 
that how to establish ties with candidates for portfolios and 
influential lawmakers (in the DPJ) has been discussed at dinner 
tables. In the summer forum of the JBF, Chairman Fujio Mitarai only 
repeated this remark to reporters: "We will make evaluations based 
on each party's policies." 
 
Although the political situation was tense over the propriety of the 
controversial postal privatization bill in 2005, then prime minister 
Junichiro Koizumi attended the summer forum of the business 
organization that year, showing his closeness with then chairman 
Okuda. Okuda later became a private-sector member of the Council on 
Economic and Fiscal Policy, and progress was made on reform measures 
the business community was calling for, such as constraint on 
social-security spending. The group's support of the LDP as a result 
was rewarded. 
 
Mitarai also tried to establish a close relationship with the LDP, 
as his predecessor did with Koizumi, accompanying then prime 
minister Shinzo Abe on overseas trips. But Abe stepped down during 
his term of office, and during the three years after Mitarai assumed 
the chairmanship, he saw four premiers in office. The distance 
 
TOKYO 00001673  014 OF 014 
 
 
between JBF and the government led by the LDP has become wider. The 
current situation is quite different from that of four years ago, as 
shown by the departure of Mitarai from the Council on Economic and 
Fiscal Policy. 
 
Meanwhile, the DPJ has proposed abolishing the economic policy panel 
and banning corporate donations. The strategy the business group 
adopted to maintain its influence over the LDP government will no 
longer work if the DPJ grabs political power. A JBF executive 
vented: "The DPJ is taking a stance of catering to public wishes, so 
the party has come up with few pragmatic measures." 
 
Even so, if a change of government actually takes place, "Our 
relations with the LDP will be the heaviest burden on us," said 
Petroleum Association of Japan Chairman Akihiko Tenbo. This view is 
gaining influence in the business community. Asked for his view 
about a DPJ government on July 21, when the Lower House was 
dissolved, Mitarai said: "I want you to wait for another 40 days 
(until the election on Aug. 30). Will the Federation be able to make 
its position clear about the development of a two-party system? The 
business world is being put to the test. 
 
19) Trade surplus up: Future of exports uncertain 
 
ASAHI (Page 13) (Excerpts) 
July 13, 2009 
 
Trade surplus is expanding. According to trade statistics (customs 
clearance-based preliminary figures), which the Finance Ministry 
released on July 23, trade surplus in June came to 508 billion yen, 
marking the first increase in 20 months over the preceding year. 
However, the major reason for the increase is a decline in the value 
of imports due to a continued fall in import prices of resources. 
There are many disturbing factors about the future of exports. 
 
A mild uptrend for exports is beginning to settle mainly in exports 
of steel, electronic parts, raw materials for plastic products and 
auto parts. 
 
Expanding trade surplus will lead up to boosting economic growth. A 
growing view among economists is that real GDP for the April - June 
quarter is bound to mark a positive figure for the first time in 
five quarters. However, few industrial circles are rejoicing 
unreservedly. 
 
China-bound exports are the main driving force for the recovery of 
exports. Exports to the U.S. and European countries have only 
recovered to 60 PERCENT  of the pre-financial crisis level. Main 
items of exports to China are products for the building of 
infrastructure, in which massive amounts of money have been 
invested, and those included in the government's economic stimulus 
measures, such as home electronic appliances and automobiles. 
Exports to European countries and the U.S., which have been 
contributed to China's growth, are continuing to be sluggish. 
 
Senior research Kawaguchi at the Sojitsu Research Institute pointed 
out: "Demand is beginning to grow, following stimulus measures taken 
by various countries. However, this has not yet led to capital 
investment by the private sector. There is even a chance of the 
effects of stimulus measures coming to an end." 
 
ZUMWALT