VZCZCXRO0773
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1745/01 2120035
ZNR UUUUU ZZH
P 310035Z JUL 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5019
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 7928
RUEHFK/AMCONSUL FUKUOKA 5598
RUEHOK/AMCONSUL OSAKA KOBE 9407
RUEHNAG/AMCONSUL NAGOYA 3064
RUEHKSO/AMCONSUL SAPPORO 6116
RUEHBJ/AMEMBASSY BEIJING 0180
RUEHUL/AMEMBASSY SEOUL 6821
RUCNDT/USMISSION USUN NEW YORK 6478

UNCLAS SECTION 01 OF 13 TOKYO 001745 
 
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 07/31/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule  (Nikkei) 
 
Defense and security affairs: 
4) Tohoku University let Iranian exchange student carry out 
sensitive nuclear research  (Yomiuri) 
5) University lax on security in nuclear program without strong 
instructions from the central government  (Yomiuri) 
6) Liberal Democratic Party (LDP) uses cautious wording to refer in 
manifesto to review of use of collective self-defense  (Asahi) 
7) Democratic Party of Japan (DPJ) wavering on extending MSDF 
refueling mission in Indian Ocean, reflecting party discord and 
choice of favoring U.S. or coalition  (Asahi) 
8) U.S. sailor gets life sentence for slaying of cabbie in Yokohama 
(Asahi) 
9) Six of 12 U.S. military deserters from Yokosuka and other U.S. 
bases still missing since last year but locals never informed 
(Tokyo Shimbun) 
10) Prime Minister Aso brought up nuclear issue in Japan during ROK 
summit  (Asahi) 
 
Free trade agreements (FTA): 
11) Japan getting ready to join the East Asia FTA now being 
negotiated  (Nikkei) 
12) DPJ President Hatoyama says FTA proposed with U.S. would except 
rice  (Nikkei) 
 
Election campaign: 
13) Nikkei Internet-based poll shows 20 PERCENT  of undecided voters 
have shifted in three weeks to supporting DPJ in the proportional 
races  (Nikkei) 
14) Prime Minister Aso is now on the stumping circuit  (Yomiuri) 
15) Three DPJ leaders not all on the same script when they discuss 
contents of the party's campaign manifesto  (Sankei) 
16) Three opposition parties issue joint policy statement for the 
election campaign, but omit reference to foreign and security issues 
 (Tokyo Shimbun) 
17) DPJ Secretary General Okada evaluates LDP's previous manifesto, 
claims only 20 PERCENT  implementation rate  (Yomiuri) 
18) New Komeito is backing 92 LDP candidates in the upcoming Lower 
House election  (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Tokyo University study: Annual income of parents impacts probability 
of receiving higher education 
 
Mainichi: 
Supplementary budget funding source for child allowance, abolition 
of temporary tax rates in DPJ manifesto 
 
Yomiuri: 
Iranian from research institute suspected of developing nuclear arms 
studied nuclear engineering at Tohoku University 
 
Nikkei: 
Aeon and Seven & i to procure materials for private brand products 
 
TOKYO 00001745  002 OF 013 
 
 
directly 
 
Sankei: 
Broadcasting ethics body issues first guidance to Nippon TV on false 
reporting 
 
Tokyo Shimbun: 
Broadcasting ethics body slaps guidance on Nippon TV for false 
reporting 
 
Akahata: 
Major point of contention emerges for general election: Policy 
funding not relying on consumption tax or policy funding assuming 
consumption tax hike as only option? 
 
2) EDITORIALS 
 
Asahi: 
(1) Social security and cost: Clarify thinking on size of national 
budget 
(2) 18 years old as legal age: Make efforts to overcome obstacles 
for implementation 
 
Mainichi: 
(1) 2009 Lower House election: DPJ should add policy on refueling 
mission to manifesto 
(2) 18 years old as legal age: Work for a consensus patiently 
 
Yomiuri: 
(1) Foreign and security policy: DPJ should present alternative 
proposal for refueling mission 
(2) Rejection of Teachers' Union assembly: Hotel ignoring court 
order deserves to lose the case 
 
Nikkei: 
(1) Microsoft-Yahoo tie-up calls into question Japan's Internet 
posture 
(2) Step up review of nursing care insurance 
 
Sankei: 
(1) Declaration on withdrawal of refueling mission: Opposition 
united front over national interest? 
(2) 18 years old as legal age: Make efforts to form national 
consensus 
 
Tokyo Shimbun: 
(1) 18 years old as legal age: Thoroughgoing discussion on each 
issue 
(2) Local election in Kurdistan: Make efforts at reconciliation to 
avoid division 
 
Akahata: 
(1) Sharp drop in rice prices: Government should initiate emergency 
procurement 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 30 
 
NIKKEI (Page 2) (Full) 
July 31, 2009 
 
 
TOKYO 00001745  003 OF 013 
 
 
07:35 Took a walk around the official residence. 
10:38 Met at Kantei UNESCO Director-General Matsuura and Japanese 
Ambassador to UNESCO Yamamoto, followed by Economic and Fiscal 
Policy Minister Hayashi. 
11:08 Attended a young people employment project team meeting. 
Afterward met Hayashi. 
11:47 Met LDP reform proportion headquarters chief Chuma. 
13:05 Visited RKC Instrument Inc. in Kugahara accompanied by former 
Lower House member Hirotaka Ishihara. 
14:38 Visited the Musashi-koyama shopping district in Koayma, 
accompanied by former Lower House members Ishihara and Junichiro 
Yasui. 
15:59 Met at LDP headquarters Secretary General Hosoda, Policy 
Research Council Senior Deputy Chairman Sonoda, manifesto project 
team leader Suga, and others. 
18:31 Attended an LDP legal team regular meeting. 
18:50 Returned to Kantei. 
19:30 Returned to his official residential quarters. 
 
4) Tohoku University received Iranian student from institute 
suspected of nuclear development who studied nuclear fuel 
reprocessing in 2002-06 
 
YOMIURI (Top play) (Full) 
July 31, 2009 
 
It was learned on July 30 that the nuclear engineering laboratory of 
Tohoku University had trained a student from an Iranian research 
institute on the list of the Ministry of Economy, Trade, and 
Industry (METI) of entities possibly involved with the development 
of nuclear arms in the reprocessing of spent nuclear fuel. Amid 
growing concerns in the international community regarding nuclear 
proliferation, the flaws in Japanese laws regarding the prevention 
of the transfer of advanced technology and the laxity of the 
university's checks are likely to become an issue. 
 
METI initiated a "foreign users' list" under the Foreign Exchange 
and Foreign Trade Law in 2002, and there are some 250 organizations 
on the list, including those in Iran and North Korea, which are 
suspected of developing nuclear weapons. When accepting students 
from research institutes on the list, Japanese institutions are 
required to "ascertain" if there are any links to the development of 
weapons of mass destruction (WMDs). 
 
The Iranian student came to Japan in September 2002 and enrolled in 
the Quantum Science and Energy Department of Tohoku University's 
Graduate School in October. In March 2004, the Jaber Ibn Hayan 
Research Laboratories, to which the student belonged prior to coming 
to Japan, was added to METI's list. 
 
This student studied the technology to recover useful metals, such 
as silver, from nuclear waste solution generated when spent nuclear 
fuel is reprocessed. While this was not directly connected to the 
extraction of plutonium, such knowledge could play an important role 
in developing a reprocessing system aimed at manufacturing nuclear 
bombs. 
 
However, the Foreign Exchange Law is aimed at ensuring free trade 
and transfer of technology and has a provision on equal treatment of 
foreign nationals and Japanese beyond six months after coming to 
Japan. Therefore, this student was not legally subject to 
"ascertainment" when his mother institution was put on the METI 
 
TOKYO 00001745  004 OF 013 
 
 
list. He continued his research and returned to Iran after obtaining 
his doctoral degree in September 2006. 
 
METI says that: "Since the purpose of the law is to prevent the 
transfer of technology, the university should have re-examined the 
propriety of giving this student training after the list was 
released in 2004. We would like to talk to the Tohoku University 
about this." 
 
The United States has imposed restrictions on issuing visas to 
students from countries suspected of developing WMDs since 1998. 
Waseda University Professor Takehiko Yamamoto, who specializes in 
national security, says: "In the U.S. it is unthinkable that 
students from research institutes included in a watch list could 
enter the country. Japan also needs a legal system to restrict entry 
of such students." 
 
On the other hand, Professor Akira Hasegawa of Tohoku University's 
Quantum Energy Department explains: "We found no problem since the 
subject the student researched did not require the use of nuclear 
materials." 
 
5) Iranian who studied nuclear technology: Tohoku University says: 
"No strict order from government," showing lack of sense of 
vigilance 
 
YOMIURI (Page 36) (Slightly abridged) 
July 31, 2009 
 
In connection with Tohoku University Graduate School's Quantum 
Science and Engineering Department giving research training to a 
student from an Iranian institution said to be involved with the 
development of nuclear arms, a university official pointed to the 
government's responsibility: "There was no strict order from the 
government, so there was no need to deal actively with the matter." 
Iran is suspected of enriching uranium and developing nuclear 
weapons. There are also concerns about the proliferation of nuclear 
technology to North Korea. Yet, universities and research institutes 
lack a sense of vigilance. 
 
According to documents submitted to Tohoku University, the student 
completed graduate study in petroleum chemistry at the Sharif 
University of Technology in 1994. After working at three companies, 
including a chemical plant firm, the Iranian worked at the Jaber Ibn 
Hayan Research Laboratories from 1998. He entered Tohoku University 
in October 2002, a year after the September. 11 terrorist attacks on 
the United States. Shortly before the student's entry, Iranian 
anti-establishment activists revealed that Iran had secretly been 
building large scale nuclear facilities. However, no one raised any 
issue at the meeting of academic advisers in the Quantum Science and 
Engineering Department, which makes decisions on the admission of 
graduate students, according to sources. 
 
Although the Jaber Ibn Hayan Research Laboratories went on the list 
of the Ministry of Economy, Trade, and Industry (METI) of 
organizations suspected of involvement in nuclear arms development 
in 2004, the Iranian student continued to do research relating to 
the reprocessing of spent nuclear fuel. The professor specializing 
in nuclear chemical engineering who instructed this student in his 
research was at a loss. He said: "I believe that the technology of 
treating nuclear waste solution which I taught him is not linked to 
the development of nuclear arms. I only learned about the watch list 
 
TOKYO 00001745  005 OF 013 
 
 
recently." 
 
Current head of the department Professor Akira Hasegawa said: "It 
would have been a different story if there had been direct orders 
from the Ministry of Education. There was none at that time. When 
METI published the list, we took very little notice of it." 
 
Yomiuri Shimbun asked to interview the professor of thermal 
engineering who mediated for the Iranian student to study in Japan 
(retired in 2003, currently professor emeritus) several times and 
has also sent him written questions, but the daily has not received 
a response as of July 30. 
 
6) LDP to use toned-down expression in policy platform on 
reinterpretation of Constitution on collective self-defense 
 
ASAHI (Page 4) (Full) 
July 31, 2009 
 
Prime Minister Taro Aso discussed the final draft of the Liberal 
Democratic Party's policy platform, which is to be officially 
announced today, with Secretary General Hiroyuki Hosoda, Election 
Strategy Council Vice Chairman Yoshihide Suga, and other party 
executives yesterday. They decided to tone down the wording in the 
final draft expressing the party's willingness to undertake a review 
of the government's interpretation of the Constitution to enable the 
Self-Defense Force's exercise of the right to collective 
self-defense. This decision reflects growing calls for caution about 
the review within the party. 
 
The final draft noted: "The government will reconstruct the laws 
related to security policy that should be amended, including a 
review of the government's interpretation of the right to collective 
self-defense in order to protect Japan from North Korea's missile 
and nuclear threats." With respect to collective self-defense, the 
draft specified: "The government will make adjustments so that the 
use of the right will be compatible with the Constitution." The 
review of the provision for collective self-defense is Aso's stock 
argument, but a number of lawmakers mainly in the New Komeito have 
raised objections. Under this situation, there was concern about the 
schism in the ruling camp deepening ahead of the Aug. 30 general 
election. 
 
7) DPJ wavering over extension of refueling operation 
 
ASAHI (Page 3) (Abridged) 
July 31, 2009 
 
Nao Fujita 
 
The major opposition Democratic Party of Japan (DPJ) is agonizing 
over the question of whether or not to allow the Maritime 
Self-Defense Force (MSDF) to continue its refueling operation in the 
Indian Ocean in the event the party takes over the reins of 
government. The party has thus far opposed the operation as an 
opposition party. But should the party, once it takes the helm of 
government, give priority to relations with the United States? The 
party has yet to finalize its position, and party executives' 
opinions have been wavering. 
 
Japan has been continuing its refueling mission as a symbol of its 
cooperation with the U.S. in the war on terror that started after 
 
TOKYO 00001745  006 OF 013 
 
 
the 9/11 terrorist attacks on the United States. DPJ President Yukio 
Hatoyama denied yesterday the option of immediately ending the 
mission, citing the importance of diplomatic continuity. At the same 
time, Hatoyama said that his party will not basically extend the 
operation beyond the expiration next January of the law authorizing 
the operation. 
 
But "discontinuation of the operation" did not make the draft of the 
DPJ's policy index or its manifesto (campaign pledges) for the 
upcoming House of Representatives election. DPJ Secretary General 
Katsuya Okada, meeting the press yesterday, simply said, "We have 
yet to make a decision." 
 
The party is not monolithic because there are gaps in views among 
DPJ executives about the question of whether to give priority to the 
DPJ's relationship with the Social Democratic Party (SDP) or to 
relations with the United States for the sake of the stability of a 
DPJ administration. The DPJ knows that it will not be able to 
earnestly address such issues as a drastic review of the realignment 
of U.S. forces until after it wins a working majority through the 
Upper House election next summer that will allow the party to keep a 
distance from the SDP. 
 
Hatoyama, who has a good chance to become the next prime minister, 
attaches importance to the stability of the foundation of a DPJ 
administration. Hatoyama told SDP head Mizuho Fukushima on the phone 
yesterday that his party will not extend the refueling operation. 
Throughout his tenure as DPJ secretary general since 2007 when the 
opposition camp won control of the Upper House, Hatoyama 
persistently opposed the refueling operation. For this reason, 
Hatoyama is working very hard so that he will not be criticized by 
the ruling camp as having changed his stance. 
 
Meanwhile, Okada gives consideration to his party's relationship 
with the United States. Okada met visiting Assistant Secretary of 
State Kurt Campbell on July 17 in which he told Campbell a plan to 
build a relationship of trust between President Obama and "prime 
minister" Hatoyama first. Policy Research Committee Chair Masayuki 
Naoshima, too, moved in the direction of not specifying 
"non-extension" in the policy index. 
 
The difference in views can be taken as role-sharing with the aim of 
avoiding confrontations in other areas. 
 
But all sides agree on one point: the government has not fulfilled 
its accountability regarding the refueling mission. But that means 
the continuation of the mission could be an option for the DPJ once 
a DPJ administration fulfills its accountability on the matter. The 
confrontation may flare up again between conservative members, 
including Seiji Maehara, who moved to condone the refueling 
operation when he was serving as DPJ president, and the former 
socialist group that cites the ambiguity of a UN resolution and the 
unconstitutionality of the operation. 
 
Ichiro Ozawa, who has maintained his influence in the party even 
after resigning as president, is closer to the view held by the 
former socialist group. 
 
8) U.S. sailor gets life in prison for killing taxi driver 
 
ASAHI (Page 35) (Full) 
July 31, 2009 
 
TOKYO 00001745  007 OF 013 
 
 
 
In the stabbing death of 61-year-old taxi driver Masaaki Takahashi 
in Yokosuka, Kanagawa Prefecture, in March last year, the Yokohama 
District Court yesterday sentenced Olatunbosun Ugbogu, a 23-year-old 
Yokosuka-based U.S. Navy seaman apprentice, to life imprisonment on 
murder-robbery charges as demanded by the prosecutors. 
 
Ugbogu maintained that he "did it at the order of a voice" resulting 
from an auditory hallucination, and whether he was mentally 
competent to be held responsible for his action was mainly in focus. 
Presiding judge Masaaki Kawaguchi concluded that Ugbogu was 
competent to be held responsible for his action, stating that what 
he calls a "voice" does not exist when judging from such factors as 
a physician's expert opinion and his actions after committing the 
crime. The judge noted: "This case, as an incident brought about by 
a U.S. military deserter, gave a great shock not only to Yokosuka 
and other base-neighboring residents but also to the general public, 
and its social impact is tremendous." 
 
After the court ruling, U.S. Naval Forces Japan headquarters 
released a comment: "We will continue to step up the education and 
training of seamen and families." 
 
9) 12 U.S. soldiers desert, 6 missing; Local residents uninformed 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
July 31, 2009 
 
U.S. Forces Japan began in July last year to inform local 
governments hosting U.S. military bases through the Japanese 
government about U.S. military deserters. Since then, a total of 12 
U.S. servicemen have deserted from U.S. bases in the prefectures of 
Kanagawa, Nagasaki, and Okinawa, and six of the 12 deserters are 
still missing, the Tokyo Shimbun has found from Kanagawa and other 
prefectures. This is the first time that the facts about deserters 
have been unveiled. 
 
In Kanagawa Prefecture, there were seven deserters from U.S. 
military bases. Two of them have yet to be located. In their 
breakdown, four of them were based at Yokosuka, and three were 
crewmen on board naval ships that called at Yokosuka. 
 
In June last year, Kanagawa prefectural police placed U.S. military 
deserters on the wanted list at the U.S. military's request for 
detention. The prefectural police are ready to report their 
discovery of those deserters to the U.S. military. In February this 
year, a defector from the Yokosuka base was found in Tokyo when 
questioned by a police officer of the Tokyo Metropolitan Police 
Department. 
 
The U.S. military, however, is to provide prefectural governments or 
base-hosting municipalities with information about its deserters 
through the Japanese government. It therefore takes at least two 
days or more than a week after the U.S. military's request to police 
for search and detention, according to local officials. Yokosuka 
City says it does not disclose individual information, so its 
citizens were not informed of the deserters. 
 
Masahiko Goto, a lawyer familiar with base issues, noted: 
"Base-hosting local communities have great misgivings about public 
security. Information about deserters should be given to local 
residents as well." 
 
TOKYO 00001745  008 OF 013 
 
 
 
10) Aso: If North Korean nuclear issue becomes serious, calls for 
nuclear armament might grow stronger 
 
ASAHI (Page 1) (Full) 
July 31, 2009 
 
Prime Minister Taro Aso during the Japan-South Korean summit held in 
Tokyo on June 28 said that if the North Korean nuclear issue becomes 
serious, calls in Japan for the country to arm itself with nuclear 
weapons would grow stronger, according to several sources connected 
with Japan-ROK relations. The prime minister took up the issue as an 
example of the need to exhort greater efforts from China, which 
holds the key to the resolution of the North Korean nuclear issue, 
the sources revealed. 
 
The remarks were made at a meeting attended only by Aso, President 
Lee Myung Bak, and a handful of officials, including the foreign 
ministers of the two countries. There had been an agreement to 
discuss North Korean issues only and not to make public what was 
discussed there. 
 
In the event China does not earnestly implement the UN Security 
Council sanctions resolution, Aso and Lee agreed on the need to send 
a message to China that both Japan and South Korea would have to 
increase their defense capabilities to counter North Korea. Prime 
Minister Aso referred to the possibility of growing calls for the 
possession of nuclear weapons in that context, according to a 
source. 
 
A government source said, "The tone was not such that Japan will go 
nuclear," adding that it did not invite strong objections from the 
ROK side. 
 
Nevertheless, China is reportedly alarmed about the emergence of 
calls for nuclear armament in Japan and South Korea in the wake of 
North Korea's nuclear test. U.S. Secretary of Defense Robert Gates, 
too, has mentioned the option of strengthening its nuclear umbrella 
for Japan and South Korea. (The United States) has taken steps to 
prevent Japan and South Korea from discussing nuclear options. Aso's 
remarks made as if to take advantage of the nuclear armament 
discussion in the country is likely to be criticized as 
inappropriate as prime minister. 
 
11) Governmental preliminary talks to start on East Asian FTA 
 
NIKKEI (Page 1) (Full) 
July 31, 2009 
 
Yoichi Iwamoto, Hanoi 
 
Major Asian countries, including the ASEAN (Association of Southeast 
Asian Nations) countries, Japan and China, will soon start talks on 
a plan to create a free trade agreement (FTA) covering the entire 
East Asian region. They plan to raise to the official level the 
current unofficial committee of experts. The upgraded panel will 
discuss how negotiations should be pursued in the future. 
 
ASEAN has already concluded FTAs with some countries, but the plan 
is aimed to sweepingly liberalize trade in the region. A reduction 
in tariffs in the region will make industries in East Asia more 
competitive. It will also contribute to expanding trade in the 
 
TOKYO 00001745  009 OF 013 
 
 
region and to enhancing its role as a locomotive for the global 
economy. 
 
Launching preliminary consultation for an East Asian FTA will be 
discussed at an economic ministerial meeting of ASEAN and six 
economies to be held in Bangkok on Aug. 13-16 and on other 
occasions. The ministerial meeting will bring together ministers 
from 16 countries, including the 10 ASEAN countries and six 
countries, such as Japan, China, and India. 
 
For the preliminary consultation, there are two ideas - one calling 
for inviting 13 countries (Japan, China and South Korea in addition 
to ASEAN) and another calling for bringing together 16 countries 
(Japan, China, South Korea, India, Australia, and New Zealand, in 
addition to ASEAN). Final coordination is now underway. 
 
In the ministerial meeting in Bangkok, the participants are expected 
to basically agree to start the preliminary consultation. The 
countries will initiate governmental negotiations after the end of 
the preliminary consultation. In the negotiations, they will discuss 
the margin of reduction in tariffs, items that should not be covered 
by the FTA, and other details. If an FTA is concluded, it might 
develop into an economic partnership agreement (EPA), which also 
includes services, investment and intellectual property. 
 
Japan has already concluded a comprehensive EPA with ASEAN, and some 
parts have come into effect. But it will not be easy to reach an 
agreement on tariff cuts with countries exporting agricultural 
products, such as Australia and China. 
 
12) DPJ Hatoyama on proposal for FTA with U.S.: Rice will be treated 
as exception 
 
NIKKEI (Page 1) (Full) 
July 31, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama yesterday 
delivered a campaign speech in Suwa City, Nagano Prefecture. 
Referring to the party's proposal  in its policy platform for the 
upcoming House of Representatives election to conclude a free trade 
agreement (FTA) with the U.S., he indicated that rice would be 
treated as an exception, remarking: "We will not simply open the 
door (to imports) of products that are the mainstay of our 
agricultural sector, such as rice. We will emphasize that point in 
negotiations, so you do not need to worry." 
 
The ruling camp has criticized the DPJ's idea of an FTA with the 
U.S., saying that domestic farmers will receive a serious blow. 
Hatoyama refuted: "Domestic agriculture fell into ruins due to the 
government of the Liberal Democratic Party and the New Komeito. We 
will take satisfactory measures to make Japanese farmers strong 
enough to counter pressure from foreign countries." 
 
13) Poll: 20 PERCENT  of "undecided" voters opt for DPJ 
 
NIKKEI (Page 2) (Abridged) 
July 31, 2009 
 
The Nihon Keizai Shimbun conducted an online poll on July 28-30 
toward the upcoming election for the House of Representatives. Among 
those who answered in the last online poll that they did not know 
which political party they would vote for in their proportional 
 
TOKYO 00001745  010 OF 013 
 
 
representation blocs, 20 PERCENT  this time opted for the Democratic 
Party of Japan, with 6 PERCENT  choosing the Liberal Democratic 
Party. Among those who chose the LDP in the last poll, 8 PERCENT 
changed to the DPJ, with only 3 PERCENT  switching from the DPJ to 
the LDP. 
 
Respondents were also asked which political party's candidate they 
would vote for in their single-seat constituencies. Among those who 
answered in the last poll that they "don't know," 19 PERCENT  now 
chose the DPJ's candidate, with 9 PERCENT  preferring the LDP's. In 
the last poll, 9 PERCENT  of those who chose the LDP's candidate 
changed to the DPJ's, with 2 PERCENT  switching from the DPJ's 
candidate to the LDP's. 
 
The poll was conducted by Nikkei Research Inc. on the Internet, with 
a total of 3,500 persons chosen from among male and female voters 
aged 20 and over across the nation. The retrieval rate was 34.5 
PERCENT  in the first online poll and 34.1 PERCENT  in the second 
one. 
 
The proportion of those "very interested" in the general election 
rose 10 PERCENT . "Very interested" and "somewhat interested" 
totaled more than 90 PERCENT . A total of nearly 80 PERCENT 
answered "yes" when asked if they would like to see a change of 
government. The figure neared 40 PERCENT  even among LDP supporters 
and was over 90 PERCENT  among DPJ supporters. 
 
Respondents were further asked if they would vote in the general 
election. To this question, "yes" rose 6 points from the last poll 
and already neared 80 PERCENT . Those who answered "yes" and those 
thinking of going to the polls totaled more than 90 PERCENT . 
 
14) Prime minister takes to the streets 
 
YOMIURI (Page 4) (Full) 
July 31, 2009 
 
Prime Minister Taro Aso on July 30 inspected small- and medium-size 
companies and neighborhoods. When he visited Musashi-Koyama Shopping 
Mall Palm, he exchanged words with shop-keepers, shook hands with 
shoppers and had taken commemorative photos with them. 
 
The prime minister's plan was to call around industrial 
organizations after the Lower House dissolution and start stumping 
speeches on August 1. However, yesterday he took up a microphone, 
urged by people of the Shopping Mall and made an impassioned speech: 
"In order for local regions to become revitalized, shopping streets 
must be revitalized. The Liberal Democratic Party (LDP) will 
continue policies to turn around the economy without causing 
disorder." 
 
He visited RKC Instrument, an electric measuring equipment 
manufacturer in Ota Ward, before visiting the shopping mall. 
 
15) Lack of consistency among DPJ leaders regarding party's 
manifesto 
 
SANKEI (Page 2) (Full) 
July 31, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama on July 27 
issued the party's manifesto (campaign pledges) for the upcoming 
 
TOKYO 00001745  011 OF 013 
 
 
House of Representatives election. But his comment later, "This is 
not an official manifesto," has created a stir. 
 
The ruling parties are criticizing Hatoyama, who once said about the 
manifesto that it "bears political accountability." Even DPJ Deputy 
President Ichiro Ozawa has complained to Hatoyama. It has now been 
revealed that DPJ leaders are not fully communicating with one 
another. 
 
Hatoyama told reporters on July 29 in Kikuyo Town, Kumamoto 
Prefecture, where he was stumping on the campaign trail: "The 
manifesto released (on the 27th) is not a formal one. We are allowed 
to distribute our official manifesto only after the start of 
official campaigning period for the Lower House election." 
 
The purpose of his comment was to add to the manifesto Osaka Gov. 
Toru Hashimoto's call for mentioning the establishing of a 
consultative panel (on decentralization reform) of the central and 
local governments in the DPJ's manifesto. Hashimoto criticized the 
DPJ's manifesto for not including such. DPJ Secretary General 
Katsuya Okada, who took the initiative in drafting the manifesto, 
said on July 30: "If necessary, it will be possible to alter (the 
manifesto)." 
 
Referring to the establishment of a consultative council, Ozawa, 
however, told reporters yesterday Kako City, Gifu Prefecture: 
 
"It is not wrong to include such, but we have asserted that we will 
substantially change the present administrative system. It is 
unnecessary to discuss matters premised on the present systems." 
 
Ozawa took a position that there was no need to add it to the 
manifesto. 
 
Meanwhile, New Komeito Secretary General Kazuo Kitagawa made this 
comment: "(Hatoyama) said that he would resign as DPJ president if 
the manifesto is not implemented. That's really wishy-washy." A 
government source also remarked: "Since Mr. Hatoyama says so, the 
Liberal Democratic Party (LDP) will be able to correct after it 
reveals its manifesto." 
 
16) Three opposition parties agree to leave sales tax rate unchanged 
for next four years, skirt foreign and defense policy issues 
 
TOKYO SHIMBUN (Page 1) (Full) 
July 31, 2009 
 
The Democratic Party of Japan (DPJ), the Social Democratic Party 
(SDP) and the People's New Party (PNP) are now readying a common set 
of policies for the Lower House election. The draft was revealed on 
July 30. It features that should the three opposition parties form a 
coalition government after the Lower House election, they will leave 
the sales tax rate unchanged for the next four years. It does not 
incorporate foreign affairs and security policies, over which they 
are at odds. The overseas dispatch of the Self-Defense Forces' 
troops was not included, either. The package will be released in 
mid-August before the official announcement of the Lower House 
election. 
 
Provided that they secure a majority in the Lower House election, 
the three parties will proceed with talks on the launching of a 
coalition government, based on this common policy package. The 
 
TOKYO 00001745  012 OF 013 
 
 
package first notes the maintaining of the sales tax rate as a 
common policy, by categorically mentioning that there will be no 
hike in the sales tax during their administration. 
 
The package also incorporates: (1) a drastic review of the postal 
business; (2) scrapping the medical service system for the elderly 
people aged 75 or older; (3) building a safety net to protect jobs; 
and (4) free high school education through the provision of 
financial assistance equivalent to tuition fees to public high 
school students and to households with private high school 
students. 
 
Regarding the postal services business, the draft package notes that 
the current four-company system (under Japan Post Holdings Co.) 
should be reviewed and the sale of stocks of three members of the 
Japan Post Group should be put on ice. The draft package also 
pledges that the government will assist an increased share in 
national health insurance as a result of the abolition of the 
medical service system for the elderly people aged 75 or older. 
 
In order to build an employment safety network, the three parties 
will aim to drastically amend the Worker Dispatch Law, which bans, 
in principle, the dispatch of workers to manufacturing companies. 
 
Referring to the common policy package of the three parties, 
Secretary General Katsuya Okada at a press conference on the 30th 
said: "We want to show our common perception as parties that will 
fight the election battle together. It would be all right if we come 
up with policy proposals in a major direction, instead of detailed 
and specific policies." 
 
Secretaries general and policy-planning officers of the three 
parties will meet on the 31st and enter near final talks on the 
common policy package. 
 
17) DPJ's Okada gives LDP's manifesto for 2005 Lower House election 
score of 20 
 
YOMIURI (Page 2) (Full) 
July 31, 2009 
 
At a press conference yesterday in Shizuoka City, Democratic Party 
of Japan (DPJ) Secretary General Katsuya Okada released his party's 
assessments of the Liberal Democratic Party's (LDP) manifesto 
(campaign pledges) for the House of Representatives election in 
¶2000. The purpose of the DPJ is to give voters the impression of the 
LDP failing to realize its campaign pledges despite a governing 
party, before the LDP reveals its manifesto on July 31. The ruling 
coalition has criticized the DPJ's manifesto as irresponsible for 
not mentioning fiscal resources for implementing its pledges. 
 
The DPJ verified the stages of completion of 21 areas of the LDP's 
manifesto such as (1) postal privatization, (2) pension, (3) issue 
of lack of doctors, (4) childcare programs, and (5) measures for 
non-permanent workers. 
 
On postal privatization, which was the major issue in the 2005 Lower 
House election, the DPJ analyzes that the widening social gap has 
been ignored, the social security system was destroyed, and the 
fiscal condition is deteriorating, leaving many issues unresolved. 
 
With regard to child-raising assistance, on which both the DPJ and 
 
TOKYO 00001745  013 OF 013 
 
 
LDP give priority in the election campaign, the DPJ reviews that for 
the LDP, free child education is a special feature of general 
elections, pointing out that the LDP had included this issue in the 
previous election. 
 
Although the LDP compiled its own assessment on its campaign pledged 
for the 2005 Lower House election that there were no pledges not yet 
dealt with, Okada severely criticized, saying: "The degree of 
attainment of the manifesto is 20 to 30 percent. The LDP has not 
fulfilled what it had pledged four years ago." 
 
Okawa was president of the DPJ in 2005 when the previous Lower House 
election was held, but he quit his post to take responsibility for 
the DPJ's failure in the election. All the more because of that, he 
expressed his anger, saying: "Four years ago, the LDP emphasized 
that reforms must not be stopped. What did that mean?" 
 
18) New Komeito expects "return" in proportional representation 
system; Supporting 92 LDP candidates 
 
YOMIURI (Page 4) (Full) 
July 31, 2009 
 
The New Komeito on July 30 decided to recommend 92 Liberal 
Democratic Party (LDP) candidates running in single-seat 
constituencies for the upcoming Lower House election. It plans to 
add to this number of backed candidates before the official 
announcement of the election on August 18. 
 
The New Komeito's strategy is to support candidates running on the 
Liberal Democratic Party's (LDP) ticket in single-seat 
constituencies, where it does not field its own candidates and to 
receive in return for that cooperation the votes of LDP supporters 
for the proportional representation section of the election. This is 
a so-called "barter cooperation." A certain LDP member pointed out, 
"How the LDP cooperates with the New Komeito in the proportional 
representation section of the elections becomes in fact the judgment 
standard when endorsing our own candidates." 
 
Replying to a question that the LDP's cooperation with the New 
Komeito is seen in its standard for endorsing its own candidates, 
New Komeito Secretary General Kitagawa during a press conference on 
the 30th said: "To begin with, some candidates do not ask for the 
party's recommendation. The issue of whether to give recommendations 
to candidates or not has also to do with candidates the party gave 
recommendations to in the past. The situation differs according to 
individual cases." 
 
As a matter of fact,  bargaining is going on between the LDP and the 
New Komeito over endorsements of election candidates. The LDP Chiba 
Chapter this time applied for recommendations for candidates for all 
of its 13 single-seat constituencies. However, the New Komeito Chiba 
headquarters asked them, "We want the LDP to give 5,000 votes to the 
New Komeito from each constituency." As a result, only three 
received party recommendations. 
 
The LDP has yet to endorse Prime Minister Aso. The New Komeito 
Fukuoka headquarters said, "We have not yet received a request for 
an endorsement from the prime minister." 
 
ZUMWALT