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UNCLAS SECTION 01 OF 13 TOKYO 001693 
 
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 07/27/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's weekend schedule  (Nikkei) 
 
Confirmation hearing of Ambassador-Designate Roos: 
4) Roos, at confirmation hearing, stresses that U.S., Japan will 
tackle key issues together  (Yomiuri) 
5) Gist of remarks by Ambassador-Designate Roos at Senate 
confirmation hearing  (Yomiuri) 
 
6) North Korea sounds our U.S. on direct talks, but Washington 
remains cautious  (Sankei) 
 
7) Government planning rice-growing initiative in aid to Africa 
(Yomiuri) 
 
8) City of Zushi to allow U.S. forces to build additional housing at 
Ikego  (Yomiuri) 
 
Shape-shifting Democratic Party of Japan's (DPJ) 
9) DPJ's Okada supports revision of special measures law to allow 
MSDF oil-refueling mission in Indian Ocean to continue  (Mainichi) 
10) One of DPJ's key political concepts is to establish a national 
strategy bureau charged with policy-making  (Sankei) 
 
11) DPJ Manifesto: budget, foreign policy, and basic strategy 
directly under the prime minister's control  (Nikkei) 
12) DPJ President Hatoyama says that his party's administration 
would abolish the vice ministerial conference that plays a key role 
in policy formation  (Mainichi) 
 
Liberal Democratic Party in action: 
13) Prime Minister Aso blasted for latest gaffe: Old people are only 
good for working  (Tokyo Shimbun) 
14) Public welfare corporation, Tokyo Bus, brokers LDP memberships; 
several bus companies pay membership fees  (Mainichi) 
15) 171 hereditary candidates are running in the Lower House 
election  (Mainichi) 
16) New Komeito distancing itself from Aso's LDP as the election 
nears  (Tokyo Shimbun) 
 
17) Japan to start manufacturing railroad cars in the U.S. as 
springboard for landing a bullet train order  (Mainichi) 
 
18) Unemployment rate expected to continue to rise to year's end 
(Tokyo Shimbun) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
 
Regional gaps in order of protection from domestic violence: maximum 
of seven times gap in number of orders by district court 
 
Mainichi: 
 
Public welfare corporation Tokyo Bus mediates for LDP membership; 
several bus companies pay membership fees 
 
 
TOKYO 00001693  002 OF 013 
 
 
Yomiuri: 
 
DPJ Secretary General Okada does not negate debate on consumption 
tax, manifesto to be published today 
 
Nikkei: 
 
Hitachi to make Maxell, four other listed companies subsidiaries in 
attempt to absorb businesses with growth potential 
 
Sankei: 
 
DPJ blueprint of the government: Policymaking through national 
strategy bureau 
 
Tokyo Shimbun: 
 
Meteorological data attests to U.S. air strikes on Tokyo, regional 
cities in 1945 
 
Akahata: 
 
Chairman Shii calls for party leaders' debate ahead of historic 
political battle to clarify points of contention before the people 
 
2) EDITORIALS 
 
Asahi: 
(1) Biodiversity: Businesses begin to play a role 
(2) Elevator accidents: Set in place comprehensive system of 
investigation 
 
Mainichi: 
(1) Illegal political donation investigation: How to reflect the 
opinion of Prosecution Review Commission 
(2) Economic and fiscal white paper: Economic growth not enough for 
peace of mind, by commentary writer Eietsu Imamatsu 
 
Yomiuri: 
(1) Social welfare: Ruling, opposition parties should talk honestly 
about "cost" 
(2) Space laboratory: Achievements will link to fulfilling "Kibo's" 
dreams 
 
Nikkei: 
(1) Enhancing credibility of Japan-U.S. alliance is linchpin of 
extended deterrence 
(2) Maritime global warming prevention is golden opportunity for 
Japan 
 
Sankei: 
(1) Toll free expressways: No to pork barrel competition 
(2) Overseas travel: Don't forget risks of rabies 
 
Tokyo Shimbun: 
(1) 2009 Lower House election: Present vision for the future of food 
and agriculture 
(2) Economic and fiscal white paper: Some criticism of reversal of 
reforms 
 
Akahata: 
(1) A world without nuclear weapons: Ahead of 2009 world convention 
 
TOKYO 00001693  003 OF 013 
 
 
of Japan Congress against A- and H-Bombs 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 25 
 
NIKKEI (Page 2) (Full) 
July 26, 2009 
 
09:58 Attended the Summer Conference 2009, held at the Pacifico 
Yokohama by the Junior Chamber of International Japan. 
11:23 Had a photo shoot for the LDP poster at the Dentsu photo 
studio in Higashi-shimbashi, in the presence of the Aichi Public 
Relations bureau chief. 
14:10 Returned to his official residential quarters. 
15:56 Departed from JR Tokyo Station on Hayate 25. 
17:36 Arrived at JR Sendai Station. 
17:51 Met Miyagi Gov. Murai, LDP Miyagi chapter chairman Doi and 
others at the Koyo Grand Hotel in Sendai. 
18:01 Attended the LDP Miyagi chapter's political and economic 
seminar. 
19:26 Departed from JR Sendai Station on Hayate 28. 
21:07 Arrived at JR Tokyo Station. 
21:23 Returned to his official residential quarters. 
 
Prime Minister's schedule, July 26 
 
NIKKEI (Page 2) (Full) 
July 27, 2009 
 
09:04 Took a walk around his official residence. 
11:34 Arrived at Haneda Airport. 
11:45 Had a telephone conversation with Yamaguchi Gov. Nii in the 
presence of Chief Cabinet Secretary Kawamura and others. 
12:55 Returned to his official residence. 
 
4) Roos stresses bilateral cooperation to tackle key issues 
 
YOMIURI (Page 6) (Full) 
July 25, 2009 
 
Satoshi Ogawa, Washington 
 
John Roos, 54, who has been nominated by U.S. President Obama as the 
next U.S. ambassador to Japan, underwent a confirmation hearing by 
the Senate Foreign Relations Committee on July 23. In it, he 
indicated that he would make efforts to strengthen and expand 
bilateral cooperative relations between Japan and the United States. 
"In addition to security issues in Iraq and Afghanistan, I would 
like to work together with Japan on global issues like climate 
change and energy security," Roos stated before the committee. 
 
In Japan, the House of Representatives has now been dissolved for a 
general election. In the forthcoming election, the Democratic Party 
of Japan (Minshuto) will likely gain more public support. Roos 
voiced concern to a certain extent about the fact that the DPJ has 
been upholding policies differing from the Liberal Democratic 
Party's policies when it comes to such issues as Japan's burden 
sharing for the cost of stationing U.S. forces in Japan and the 
Maritime Self-Defense Force's refueling activities in the Indian 
Ocean. "I believe that its policies will gradually change," Roos 
stated. 
 
TOKYO 00001693  004 OF 013 
 
 
 
Roos is regarded as having no experience at all in foreign affairs 
and security issues before his nomination as envoy to Japan. As if 
to rebut concerns voiced over his lack of experience in the 
diplomatic area, Roos indicated that he would do his job as 
ambassador to Japan drawing on the embassy's experts, stating: "As a 
law firm's chief executive officer, I have learned how to manage and 
control organizations, including a big and complicated one. The 
important thing is to listen to the opinions of others and accept 
new ideas and consult with experts before making important 
decisions." His designation is expected to be confirmed next week by 
the committee and then by the Senate in its plenary session. Roos 
will arrive at his Japan post in August. 
 
5) Main points from next U.S. envoy's remarks 
 
YOMIURI (Page 6) (Full) 
July 25, 2009 
 
The following is a gist of testimony given by U.S. 
Ambassador-designate to Japan Roos in a congressional hearing for 
his confirmation. 
 
Japan-U.S. alliance 
 
If my designation is confirmed, I will give it my best to strengthen 
and expand ties between Japan the United States. The Japan-U.S. 
security alliance is the cornerstone of security in the Asia-Pacific 
region. In addition to security issues in Iraq and Afghanistan, I 
will work with Japan on such global issues as climate change and 
energy security. I will continue close consultations on North 
Korea. 
 
Lower house election, Japan-U.S. relations 
 
I've heard many things about differences between the Democratic 
Party of Japan (Minshuto) and the current government. However, the 
U.S. government has deep ties with the two parties (i.e., the 
Liberal Democratic Party and the DPJ), so whichever party may come 
into office, our relationship will continue. There will be no 
fundamental change in the alliance between Japan and the United 
States. It's true that the DPJ has indicated its standpoint (for a 
more equal relationship between the two countries). In the past few 
days, however, such remarks have changed to realistic remarks. 
 
Generally speaking, it is true that the LDP supports the Japan-U.S. 
alliance and bilateral relations more strongly. Meanwhile, the DPJ 
has been advocating a more equal relationship while citing Japan's 
burden sharing of the cost for stationing U.S. forces in Japan and 
(the Maritime Self-Defense Force's) refueling activities (in the 
Indian Ocean). After the election, however, the DPJ would also 
support the rocksolid alliance and such policies would gradually 
change. 
 
6) North Korea sounds out U.S. about direct talks in bid to avert 
pressure; U.S. remains cautious 
 
SANKEI (Top play) (Full) 
July 26, 2009 
 
Takashi Arimoto, Washington 
 
 
TOKYO 00001693  005 OF 013 
 
 
North Korea, which is at loggerheads with the United States over its 
ballistic missile launches and missile tests, has sounded out the 
United States about direct talks via its diplomatic mission to the 
United Nations in New York, which is commonly called the New York 
channel. This was revealed by July 25 by U.S. government and other 
sources. Given a growing international net encircling North Korea, 
as see in the adoption of a sanctions resolution by the UN Security 
Council, the North seemingly is aiming at averting pressure by 
conducting talks with the United States. 
 
According to U.S. government and other sources, there are strong 
cautious views in the government, although some are saying that the 
call from North Korea should be taken seriously. The reason is 
because President Barack Obama has made it clear that Washington 
will not give rewards easily, while calling for a return to the 
Six-Party Talks on the DPRK's nuclear issue. 
 
Secretary of State Hillary Clinton, too, has announced that the U.S. 
government is ready to make a comprehensive proposal to the North, 
including the normalization of diplomatic ties. But that is based on 
the North's promise to dismantle its nuclear programs in a complete 
and irreversible manner. 
 
The DPRK conducted its first nuclear test in October 2006, but it 
returned to the Six-Party Talks in December that year. As are 
result, the United States relaxed its financial sanctions. 
 
Another source took this view about the DPRK's call for talks: "The 
step is probably based on the fact that it succeeded in avoiding 
pressure the last time. The North thinks Washington will respond to 
the call partly because the question of the release of the two 
American journalists who have been detained in the North." 
 
Secretary Clinton has recently indicated the North is acting out 
like unruly teenagers and the North retorted that she is by no means 
intelligent. The two countries have been trading verbal jabs. 
Balbina Hwang, who served as senior special advisor on East Asian 
and Pacific affairs under the former Bush administration, commented: 
"Although the two sides are verbally harsh to each other, I do not 
think that such will be a hindrance to dialogue." 
 
At the same time, Hwang thinks that even if U.S.-DPRK talks are 
held, chances are slim for the United States to make compromises on 
the nuclear issue, saying, "There will be no substantial progress." 
 
7) Government planning rice-development aid to Africa using new 
strain with high production yield 
 
YOMIURI (Page 2) (Excerpts) 
July 26, 2009 
 
The government has decided to begin to develop a new rice strain 
with a high crop yield in order to provide assistance to Africa for 
food security. It will develop a strain of rice suitable for 
Africa's climate and having a high-harvest yield expectation. It 
also will begin assistance for production and distribution of the 
rice. There are concerns that constrains in food supplies will 
hinder the economic grown of newly emerging countries, and securing 
stable food supplies has become a challenge for Africa with its many 
poor countries. The government plans to provide in assistance a 
total of approximately 20 million dollars (approximately 1.9 billion 
yen) over the next five years. 
 
TOKYO 00001693  006 OF 013 
 
 
 
Japan in 1994 was successful in developing a rice strain for Africa, 
combining rice strains used for cultivation in Asia, which was 
suitable for cultivating in those countries where there was disease 
and drought. In 1999, the rice strain was named "Nerika" rice. The 
new rice strain is planned to be developed by combining high-crop 
yielding Asian wet rice and African dry rice. The aim is to develop 
it within five years. 
 
The government will develop the rice in cooperation with the 
Africa-based international organization, African Rice Cultivation 
Center, and the Philippine-based International Rice Cultivation 
Institute. 
 
8) Zushi mayor to approve additional housing for U.S. forces at 
Ikego 
 
YOMIURI (Page 1) (Full) 
July 27, 2009 
 
The government is proposing a reversion of landed property of about 
40 hectares on the premises of the U.S. military's Ikego housing 
area straddling the cities of Zushi and Yokohama in Kanagawa 
Prefecture on condition that the two cities cooperate on its plan to 
build additional housing for 700 units. On this proposal, Zushi 
Mayor Ryuichi Hirai has decided to respond to consultations premised 
on his approval of additional housing construction. Hirai will 
clarify this decision in a plenary meeting of the city's municipal 
assembly today. The city will change its consistent opposition to 
the plan basically agreed on between Japan and the United States in 
¶2003. If the city decides to accept the proposal, the Ikego problem, 
which has seen twists and turns since the 1980s, will make 
substantial headway. 
 
The additional housing is planned to be constructed in an area of 
Yokohama City. However, Zushi City has not responded to 
consultations, claiming that it is against a 1994 three-party 
agreement of the government, the prefecture, and the cities to the 
effect that no additional housing will be constructed on the site. 
 
On July 22, however, the government came up with a plan, including 
its offer to return a plot for a greenery park, which Zushi City 
brought up as a precondition when it accepted the housing 
construction in 1984. In addition, the government's plan also 
includes returning the hinterland called the "Ikego-no-Mori" grove. 
Hirai therefore judged that the city was now ready to enter into 
consultations, saying, "The government's offer is more than what we 
requested when we accepted the housing construction in 1984." 
 
According to a Zushi official, the city, in its consultations with 
the government, will request the government to: 1) promise not to 
additional housing in the future; 2) give fiscal preference to the 
city when the land is transferred to the city after it is returned 
from the U.S. military to the government; and 3) increase the amount 
of base subsidies. The city will preserve the grove to be returned 
and will open it as a nature park for local residents and U.S. 
military personnel's families. 
 
9) Refueling operations in Indian Ocean: DPJ hints at re-amendment 
to special measures law 
 
MAINICHI (Page 2) (Full) 
 
TOKYO 00001693  007 OF 013 
 
 
July 25, 2009 
 
Referring to refueling operations in the Indian Ocean by the 
Maritime Self-Defense Force (MSDF), Democratic Party of Japan (DPJ) 
Secretary General Katsuya Okada during a press conference on July 24 
noted, "If the DPJ takes the reins of government, there might be a 
possibility of it approving the operations, after making necessary 
amendments (to the law that serves as the basis for dispatching MSDF 
vessels)." He thus indicated a possibility of the DPJ approving the 
continuation of the operation, by re-amending the New Antiterrorism 
Special Measures Law. The DPJ has already established a stance of 
approving the continuation of the refueling operations until next 
January, when the term of the present law expires, switching from 
its previous stance of opposing the extension of the special 
measures law. Okada in his statement on the 24th hinted at the 
possibility of the party approving the continuation of the 
operations even beyond the present deadline. 
 
Okada was serving as secretary general in 2001 when the special 
measures law was enacted for the first time. He indicated his 
party's stance that it would be possible to approve the operations 
provided that the Diet gives prior approval, stressing: "At the time 
the DPJ maintained that the law lacked a requirement for Diet 
approval. We did not actually oppose the sending of SDF vessels." As 
for the reason that the DPJ opposed the present law, Okada pointed 
out, "The current operation in the Indian Ocean is a U.S. operation. 
The situation has changed significantly from the time the law was 
enacted." 
 
10) DPJ "blueprint for the government": Policymaking by the national 
strategy bureau 
 
Sankei (Top play) (Full) 
July 27, 2009 
 
The blueprint for the government that the Democratic Party of Japan 
(DPJ) is including in its manifesto (campaign pledges) for the House 
of Representatives election was revealed on July 26. Its main 
feature is the creation of a new "national strategy bureau," staffed 
by both bureaucrats and private sector personnel and reporting 
directly to the prime minister, to highlight the shift from 
bureaucrat-controlled policymaking to a policy process led by 
politicians. The national strategy bureau will not only formulate 
the basic policies for the budget, but will also draw up mid- and 
long-term national visions on foreign and security policy. The 
administrative vice ministers' meeting, which has been criticized 
for lack of substantial function, will be abolished. Meanwhile, toll 
free expressways, one of the major policies in the manifesto, will 
be implemented, excluding the Shuto and Hanshin Expressways for the 
time being. 
 
The blueprint for the government will be the centerpiece of the 
manifesto to be issued on July 27. This will be published along with 
pledges in five policy areas, including pension and medical services 
and regional autonomy, and miscellaneous policy issues. 
 
The DPJ envisions creating a national strategy bureau under the 
prime minister, aiming at a budget formulation process led by the 
politicians and not by the current method of simply adding up budget 
requests from the ministries. At present, the basic policy for 
budget formulation is determined by the government's Council on 
Economic and Fiscal Policy (CEFP), which also has private sector 
 
TOKYO 00001693  008 OF 013 
 
 
members, while the taking of minutes and other administrative 
matters are handled by the Cabinet Office. 
 
If the DPJ takes over the administration, the national strategy 
bureau will be staffed by similar numbers of bureaucrats and private 
sector personnel, and the new bureau will work toward budget 
formulation under the leadership of the Prime Minister's Official 
Residence. 
 
The administrative vice ministers' meeting, where the topics to be 
taken up at cabinet meetings are coordinated in advance, is regarded 
by the DPJ as the symbol of bureaucrat-controlled politics, and the 
party has strongly advocated its abolition. 
 
In a street corner speech in Niigata City on July 26, President 
Yukio Hatoyama said: "(Policies) are made by the ministers at 
cabinet meetings only in form. They are formulated at the vice 
ministers' meeting. The fact that the administrative vice ministers 
make all the decisions is a big mistake." 
 
The manifesto will also provide for dispatching over 100 ruling 
party Diet members to serve in the government as ministers, senior 
vice ministers, parliamentary secretaries, and assistants to 
ministers to strengthen political control. In addition, a new 
"administrative renovation council" consisting of local government 
officials and private sector experts will be created to eliminate 
wasteful spending by the ministries, check the ministries' budgets, 
and review national government projects. 
 
In addition, with regard to toll free expressways, which the DPJ 
regards as a measure to invigorate the regional economy, the 
manifesto will only say that expressways will be "toll free, in 
principle," excluding the Shuto and Hanshin Expressways from this 
policy. 
 
11) DPJ manifesto designed to determine basic strategies directly 
under Prime Minister and to abolish Council on Economic and Fiscal 
Policy 
 
NIKKEI (Page 1) (Excerpts) 
July 27, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama is set to 
announce today the party's manifesto (campaign pledges) for the Aug. 
30 House of Representatives election. The manifesto specifies five 
pledges, including the elimination of wasteful spending and 
bureaucrats' amakudari (golden parachuting) practice. As part of the 
government's organizational reform after taking power, the party 
also plans to establish a national strategy bureau directly under 
the Prime Minister to determine the state's budgetary framework and 
foreign policy, as well as an administrative reform council to 
clarify wasteful spending. The Council on Economic and Fiscal Policy 
will be abolished. The DPJ plans to submit related bills to the Diet 
in the extraordinary session in the fall. 
 
The five pledges are: (1) wasteful spending, (2) childrearing and 
education, (3) pension and medical services, (4) regional autonomy, 
and (5) employment and the economy. The manifesto also includes a 
roadmap showing priority policies to be implemented beginning in 
fiscal 2010 and funding sources. 
 
A Hatoyama administration's policy platform also presents five 
 
TOKYO 00001693  009 OF 013 
 
 
principles, including one to build a system in which lawmakers 
exercise their leadership instead of dumping matters on the lap of 
bureaucrats. Also included in the platform are five policies, 
including one to place some 100 lawmakers at government offices to 
exercise their leadership in making plans, adjustments, and 
decisions on policies. 
 
The national strategy bureau will be composed of private-sector 
members appointed by the Prime Minister and of officials from 
government ministries and agencies. The budget compilation system is 
to be reformed into one in which the budget is allotted to priority 
policies, such as a child allowance and the elimination of the 
provisional gasoline tax rate, on a priority basis under the 
leadership of the Prime Minister, and then for the Finance Ministry 
Budget Bureau is to coordinate details with each government office. 
 
The DPJ eyes a lawmaker-led top-down decision-making system by 
putting an end to the bottom-up approach. Further, challenges and 
policies straddling several ministries and agencies are to be worked 
out at theme-specific cabinet committee meetings by ministers 
concerned. 
 
12) DPJ President Hatoyama would end vice-ministerial conferences 
 
MAINICHI (Page 2) (Excerpt) 
July 27, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama, in a 
street-corner speech in Niigata City yesterday, clarified his views 
about ending the meetings of administrative vice ministers, the top 
officials in the ministries and agencies, should there be a change 
in government. Such conferences are held prior to meetings of the 
prime minister and the cabinet and by the prior coordination of the 
vice ministers, policy is in effect set in these meetings. His aim 
is to move toward political leadership, since the cabinet has become 
ossified. The same day, Hatoyama stressed to the press corps at 
another  location in Niigata Prefecture: "One of the main culprits 
is the creation of policy by bureaucrats." 
 
13) Opposition parties react fiercely to Aso's gaffe about elderly 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
July 27, 2009 
 
Prime Minister Taro Aso delivered a speech on the night of July 25 
at a Liberal Democratic Party's (LDP) politics and economics seminar 
in Sendai, which he visited as the first destination of his campaign 
tours after the House of Representatives was dissolved. Prior to 
this, he made a verbal gaffe in Yokohama, saying: "Elderly people 
believe they have no talents other than working," evoking strong 
reactions from opposition parties. 
 
At the outset of the speech, Aso apologized for the ongoing internal 
disarray in the LDP, remarking: "We caused trouble for people, party 
members, and party friends." He then played up such achievements as 
the economic stimulus measures, including the compilation of four 
supplementary and other budgets, and said: "I cannot relinquish my 
duties until we can be sure that the economy is back on a recovery 
track," seeking support for the party's policy results. 
 
But Aso's earlier controversial remark invited strong criticism. 
Democratic Party of Japan President Yukio Hatoyama claimed: "Elderly 
 
TOKYO 00001693  010 OF 013 
 
 
people are free to choose (whether or not to work)." Japanese 
Communist Party leader Kazuo Shii called the remark an "insult" to 
elderly people. 
 
Bearing these critical comments in mind, Aso had to provide an 
explanation at the seminar: "I meant to say that providing 
workplaces for healthy elderly people would lead to an active and 
bright society. But my remark caused a misunderstanding." 
 
Aso said in Yokohama: "More than 80 PERCENT  of those aged 65 years 
or older need no nursing care. These people believe they have no 
talents other than working. It would be too late to learn to play 
after the age of 80. If elderly people can work, they will not be 
pension recipients but will be taxpayers." 
 
14) Tokyo Bus Association official solicited member bus firms for 
employees to join LDP, pay membership fees 
 
MAINICHI (To Play) (Abridged) 
July 27, 2009 
 
The chief of the general affairs department at the Tokyo Bus 
Association (President Nobuo Murakami) asked its member bus 
companies under the name of the association to have their employees 
join the Liberal Democratic Party and to pay their membership fees. 
The association receives approximately 15 billion yen in subsidies 
from the Tokyo Metropolitan Government annually as a public 
corporation under the jurisdiction of the Land, Infrastructure, and 
Transport Ministry's Kanto District Transport Bureau. In response to 
this request, several bus companies illegally paid membership fees 
for their employees. Although there is no particular law that bans 
such an act, an expert commented: "Organizations that receive state 
subsidies are required to take a neutral political stance, so this 
act violates the Political Funds Control Law. 
 
According to data obtained by the Mainichi Shimbun, the department 
chief sent copies of a document titled "Details on the payment of 
LDP member dues" to each company's contact person under the name of 
"the chief of the general affairs department at the Tokyo Bus 
Association as a responsible official" in late November every year. 
The department chief also enclosed a list of the names of those who 
paid the fees in the previous year and asked the companies to pay 
the fees for the listed employees (4,000 yen as the annual 
membership fee and 2,000 yen as the family member's fee). The letter 
also called on the companies to collect more members. 
 
The companies that responded to the request put the names of their 
several to about 10 employees down as members every year. Persons 
involved in this case said that the association began to make this 
request more than 10 years ago. 
 
The Political Funds Control Law prohibits donators from make 
political donations (including party fees) under different names, so 
the act of companies paying their employees' party member fees is in 
violation of the law. 
 
The department chief in question used to be an official of the Land, 
Infrastructure and Transport Ministry. He said: "I took over this 
duty from my predecessor in 2005." According to his explanation, he 
received pay dues for about 40 employees from a slightly more than 
10 bus companies. But asked about whether several companies had paid 
their employees' fees, he replied he did not know. 
 
TOKYO 00001693  011 OF 013 
 
 
 
15) "Hereditary candidates" total 171 in the Lower House race, with 
the LDP making up 114 or 70 percent of them; Even the DPJ which 
wants to limit such candidates has 34 
 
MAINICHI (Page 2) (Excerpt) 
July 27, 2009 
 
Among the some 1,252 candidates running for the House of 
Representatives in the election on August 30, hereditary candidates, 
who included those whose fathers or mothers were lawmakers, consist 
of at least 171, or about 10 PERCENT  of the whole, according to the 
Mainichi Shimbun's survey (as of July 26). Of those, approximately 
70 PERCENT  or 114 candidates are from the Liberal Democratic Party 
(LDP), and even the Democratic Party of Japan, which has a 
restriction policy in effect, has 34 candidates. 
 
16) New Komeito distancing itself from "Aso LDP" to avoid common 
ruin 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 26, 2009 
 
New Komeito President Akihiro Ota has underscored policy differences 
between his party and the Liberal Democratic Party (LDP) in his 
campaign speeches across the nation for the upcoming House of 
Representatives election. The party's strategy apparently is to 
demonstrate its stance of distancing itself from the Aso 
administration and to avoid common ruin with the administration, to 
which a strong adverse wind is blowing, in a bid to maintain its 
current 31 seats. 
 
On July 24, the first day of his campaign tour, Ota stood with 
former secretary general Tetsuzo Fuyushiba in front of JR Amagasaki 
Station in Hyogo Prefecture and emphasized: "The New Komeito's 
policies are consistent. It is only the New Komeito that has been 
making efforts with the public, based on a consistent, realistic 
policy stance." He seems to be aiming to underscore that his party' 
stance was different from Prime Minister Aso's "inconsistent 
stance." 
 
The New Komeito at the outset of its policy manifesto for the next 
general election puts forth "the realization of clean politics" and 
stresses the need to tighten the penalties against acts in violation 
of the Political Funds Control Law. The target is Democratic Party 
of Japan President Yukio Hatoyama, whose false donation statements 
came to light recently, but the New Komeito is also willing to 
underscore its differentiation from the LDP, which has also been 
always dogged by politics-and-money scandals. 
 
The New Komeito had defended Prime Minister Aso, but in the wake of 
the LDP's devastating defeat in the Tokyo Metropolitan Assembly 
election, the party in order to survive in the Lower House election 
has begun to judge it should avoid coming under severe public 
criticism with the Aso-led LDP. 
 
Ota stressed progress has been made in the relationship of trust 
with the LDP, but if the junior coalition party gives priority to 
desperately defending its current Diet seats, such a stance might 
have some effect on the New Komeito's electoral cooperation for LDP 
candidates. 
 
 
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17) Japan Sharyo looking into manufacturing rail cars in U.S. 
 
MAINICHI (Page 2) (Full) 
July 25, 2009 
 
Japan Sharyo under the umbrella of JR Tokai, the Nagoya-based 
largest manufacturer of rail cars, such as Shinkansen bullet train 
cars, in Japan on July 24 revealed that it is looking into producing 
rail cars in the U.S. The company wants to enhance the profitability 
of its rail car manufacturing business directed at regional railroad 
companies in the U.S., by establishing a local production system. 
Steady orders can be expected from U.S. regional railroad companies. 
The U.S. railroad market is expected to grow due to the high-speed 
railroad network consolidation program costing 8 billion dollars in 
total (approximately 768 billion yen), which the Obama 
administration proposed as a new fiscal policy "Green New Deal." The 
company will aim to expand business in the U.S., by taking orders 
for Shinkansen bullet train cars. 
 
The U.S. headquarters of the company is located in Illinois. The 
company intends to swiftly investigate construction sites and the 
timing for setting up a local plant. Kawasaki Heavy Industries is 
another Japanese manufacturer that operates a rail vehicle plant in 
Nebraska. Japan Sharyo will advance into the U.S., following the 
lead of Kawasaki Heavy Industries. 
 
Japan Sharyo at present sells double-deckers for trams and subway 
vehicles in Los Angeles. It exports parts to the U.S. and a local 
manufacturer assembles the vehicles on consignment. The challenge in 
expanding business into the U.S. will be to reduce production costs. 
The company believes that local production will cut the costs of the 
transportation of parts from Japan, raising profitability. 
 
18) Jobless rate to reach well above 5 percent level, according to 
private-sector economists 
 
TOKYO SHIMBUN (Page 1) (Full) 
July 26, 2009 
 
A survey conducted by the Economic Planning Association (EPA) under 
the jurisdiction of the Ministry of Economy, Trade and Industry, 
found on July 25 that private-sector economists have projected that 
as the employment situation worsens the nation's jobless rate will 
rise to the worst-ever well above 5 PERCENT  level from this fall 
through the end of the year. 
 
Though the economy has climbed out of the worst phase, the sluggish 
employment situation is delaying the recovery of income and 
consumption. If companies press ahead with a further reduction in 
force or constraining new recruits, anxieties over employment could 
mount again. Employment measures will be one of the top agenda items 
for the next administration to be launched after the end-of-August 
Lower House election. 
 
The survey by the EPA, carried out from June 25 through July 2, 
directing at 40 economists, elicited responses from 36. 
 
According to the results of the survey, economists projected the 
average jobless rate in three months from October through December 
at 5.56 percent, while such a rate in May stood at 5.2 percent. The 
worst monthly unemployment rate to date is 5.5 percent marked in 
April 2003. Chances are that the worst record will be renewed in the 
 
TOKYO 00001693  013 OF 013 
 
 
October-December quarter. 
 
Pollees estimated that the jobless rate will rise to 5.66 percent on 
average in the April-June quarter in 2010. The rate will continue to 
hover around the high level of above 5 percent until the 
October-December quarter in 2010. 
 
The average unemployment rate for the fiscal 2010 estimated by 
economists was 5.55 percent. Approximately 20 PERCENT  of the 
pollees predicted that the jobless rate would rise to the 6 percent 
level. If the implementation of stimulus measures is delayed or 
financial instability recurs, the employment situation could further 
worsen. 
 
The Cabinet Office in its economy and public finance white paper, 
issued on the 24th, projected that the size of "in-house 
unemployment," or surplus personnel, would reach up to 6.07 million. 
There is also concern that if industry circles strictly constrain 
new recruits, the deterioration in the unemployment situation among 
young people would become a social problem, as a former senior 
Cabinet Office official said. 
 
ZUMWALT