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UNCLAS SECTION 01 OF 14 TOKYO 001753 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 07/31/09 
 
INDEX: 
 
(1) LDP, DPJ find themselves on horns of dilemma over regional bloc 
system (Asahi) 
 
(2) Supplementary budget funding source for child allowance, 
abolition of provisional tax rates in DPJ manifesto (Mainichi) 
 
(3) LDP, DPJ engaging in "service battle" for general election, 
listing pork-barrel pledges in manifestos (Asahi) 
 
(4) 2009 Lower House election: Interview with Mariko Bando, 
president of Showa Women's University; A solid system more important 
than cash handouts (Yomiuri) 
 
(5) DPJ secretary general says that the notion of refueling 
operations is not the party's official position (Jiji) 
 
(6) METI to question Tohoku University for allowing Iranian student 
to do research on reprocessing of nuclear fuel (Mainichi) 
 
(7) Supreme command eyed for GSDF (Tokyo Shimbun) 
 
(8) Survey of Okinawa candidates for Lower House election on base 
issues, constitution shows divided views on USFJ realignment, 
unanimous support for SOFA revision (Ryukyu Shimpo) 
 
(9) State-managed 22 airports in the red, with only four in the 
black, according to Transport Ministry's survey (Asahi) 
 
(10) Remove Obama's mask, by Kazuyuki Hamada (Will) 
 
ARTICLES: 
 
(1) LDP, DPJ find themselves on horns of dilemma over regional bloc 
system 
 
ASAHI (Page 4) (Abridged slightly) 
July 31, 2009 
 
Naoyuki Hayashi 
 
With the aim of winning Osaka Gov. Toru Hashimoto and other 
governors over to its side, the Liberal Democratic Party (LDP) will 
include a pledge to create regional blocs in its manifesto (campaign 
pledges) for the upcoming House of Representatives election. 
However, a regional bloc system could be a double-edged sword for 
the LDP. The National Governors' Association is divided into pros 
and cons about creating regional blocs. A group of governors who are 
cautious about the idea yesterday endeavored to recover from the 
setback. The Democratic Party of Japan (DPJ), which dominates 
opinion polls, forwent stipulating it in its manifesto, sitting on 
the fence. 
 
Hyogo Gov. Toshizo Ido and Fukushima Gov. Issei Nishikawa met on 
July 30 with LDP Election Strategy Council Deputy Chairman Yoshihide 
Suga at the LDP's headquarters. The two governors called on Suga for 
cautious debate on the regional bloc system. They then handed to 
Suga request letters from the governors of Yamagata, Fukushima, 
Ishikawa, Mie, Shiga and Nara prefectures who are reluctant to 
introduce such a system. Suga reportedly did not give them a clear 
answer. Nishikawa stressed to reporters that, "Many in the 
 
TOKYO 00001753  002 OF 014 
 
 
association are negative about creating regional blocs. 
 
There are big differences in views on the issue of governors. Osaka 
Gov. Hashimoto and Miyazaki Gov. Hideo Higashikokubaru are leading 
advocates of creating regional blocs. Hashimoto and 12 governors on 
July 16 asked the LDP, DPJ, and New Komeito to introduce the 
regional bloc system. At a meeting on July 14-15 of the National 
Governors' Association, Kanagawa Gov. Shigefumi Matsuzawa proposed 
that a regional system basic law be established so that reform of 
the central government offices and decentralization would be able to 
do the same time. However, objections were raised, with one governor 
saying: "Gaps will widen between regional blocs." 
 
The reason for the LDP having decided to stipulate in its manifesto 
that a regional system basic law will be introduced by 2017 is its 
desire to win Hashimoto and other governors over to its side. The 
fact that the DPJ did not mention it in its manifesto urged the LDP 
to create regional blocs. 
 
However, the LDP's draft manifesto does not refer to such key 
contents as the demarcation of regional blocs and a distinction 
between the role of the central and regional governments. Small 
prefectures are concern that they would be included in large 
prefectures. 
 
The LDP gave priority to the view of popular governors rather than 
the voices of financially weak prefectures. 
 
Meanwhile, the DPJ has contended that the nation should be divided 
into 300 "basic local autonomous bodies," as former President Ichiro 
Ozawa has rejected the regional bloc system. President Yukio 
Hatoyama then shifted the party's policy. So, the DPJ did not 
mention this idea in its manifesto, but its policy index issued last 
month wrote that the policy would be looked into in the future. 
 
The reason for the DPJ having wavered in its response was because a 
consensus has not been made in the party and the governors' 
association. It is not that the DPJ is opposed to creating regional 
blocs. Ido and Nishikawa, governors cautious about the regional bloc 
system, met on July 30 with DPJ Policy Research Committee Chairman 
Masayuki Naoshima to call for the party's prudent response. 
Naoshima, however, just said: "The DPJ will not take an approach 
that has the central government going against local governments." 
 
(2) Supplementary budget funding source for child allowance, 
abolition of provisional tax rates in DPJ manifesto 
 
MAINICHI (Top Play) (Full) 
July 31, 2009 
 
The Democratic Party of Japan (DPJ) on July 30 decided on a policy 
for funding its original policies included in the manifesto compiled 
for the Lower House election by suspending the implementation of 
unexecuted portions in the fiscal 2009 extra budget totaling 14 
trillion yen. The manifesto pledges that the party will implement 
original polices costing 7.1 trillion yen, including the payouts of 
50 PERCENT  of child allowance (13,000 yen a month) and the 
abolition of provisional tax rates, in the fiscal 2010 budget - the 
first fiscal year after it takes over the reins of government. The 
DPJ is already working with the Finance Ministry to identify the 
unexecuted budgetary items that can be suspended. It estimates that 
of the 7.1 trillion yen, several trillion yen can be covered by the 
 
TOKYO 00001753  003 OF 014 
 
 
suspension of the implementation of unexecuted budgetary items. 
 
Most items subject to the suspension are newly established ones, 
including 4.4 trillion yen accumulated for 46 funds, 3 trillion yen 
appropriated to entities that accept retired bureaucrats, such as 
independent administrative agencies, and 2.9 trillion yen for the 
maintenance of various government agencies' facilities. Senior 
officials of the Finance Ministry Policy Research Council are now 
proceeding with efforts to identify unexecuted budgetary funds in 
the fiscal 2009 extra budgets, by making inquiries about the 
implementation situation of the extra budget at such government 
agencies as the Finance Ministry; the Ministry of Health, Labor and 
Welfare; and the Ministry of Agriculture, Forestry and Fisheries. 
 
Should the DPJ seize power, it will submit a downsized extra budget 
to the special Diet session to be convened in the fall, and once the 
unexecuted items are identified, use those funds to finance the 
DPJ-proposed policies. A project to build a national media art 
center at a cost of 11.7 billion yen, about which President Hatoyama 
made a sarcastic remark saying that it is a giant state-run  anime 
caf, will also become subject to the downward revision. 
 
The original policies included in the manifesto to be implemented in 
10 years' time include child allowance, measures to deal with the 
unidentified pension accounts issue, in-stage implementation of 
efforts to deal with a shortage of doctors, abolition of the 
provisional tax rates, partial implementation of making highways 
toll-free, and employment measures. 
 
The reason to tap the extra budget compiled by the present 
administration as a fiscal source is that the budget has to be 
compiled in an unprecedentedly short period time - about three 
months after the Lower House election. 
 
The manifesto cites that a total of 16.8 trillion yen can be secured 
as of fiscal 2013 - 9.1 trillion yen by cutting wasteful spending, 5 
trillion yen through the use of so-called hidden funds (maizokin), 
and 2.7 trillion yen through a revision to the special tax measures. 
However, it does not mention the breakdown for each fiscal year. 
 
(3) LDP, DPJ engaging in "service battle" for general election, 
listing pork-barrel pledges in manifestos 
 
ASAHI (Page 2) (Slightly abridged) 
July 30, 2009 
 
The campaign for the upcoming House of Representatives election, in 
which the next prime minister will be elected, is becoming like a 
fight over pork-barrel pledges between the Liberal Democratic Party 
(LDP) and the Democratic Party of Japan (DPJ). That is because the 
LDP is gradually being drawn into the ring of the DPJ, which 
arranged a manifesto-based election and is taking the lead. The two 
parties are fighting fiercely particularly over assistance measures 
for families with small children in a bid to win their support. Even 
so, there is a fundamental difference in their approaches. 
 
Both sides criticize the other side's policy platforms as 
"pork-barrel" 
 
The LDP manifesto introduces its title, "the ability to take 
responsibility for protecting the nation," and a photograph of 
smiling Aso on its back cover. 
 
TOKYO 00001753  004 OF 014 
 
 
 
The LDP in its manifesto criticizes the DPJ's policies as 
"irresponsible" and emphasizes its ability to take responsibility. 
To prove this, the party says that it has not dodged the unpopular 
challenge of raising the consumption tax. But a consumption tax 
hike, initially proposed by Aso as a key measure in his election 
strategy, was pushed back to the latter part of the report. 
 
The DPJ manifesto includes such eye-catching measures as providing 
monthly child care allowance of 26,000 yen for each child of middle 
school age or younger and eliminating public high school tuition 
fees. These two measures will require 6 trillion yen in revenue 
sources annually, an amount equivalent to one-third of the total 
cost estimated in its roadmap for the listed key policy pledges. 
 
Election Strategy Committee Vice President Yoshihide Suga, who 
chairs the LDP project team to lay out its manifesto, critically 
said: "It remains unclear where the necessary fiscal resources come 
from. That is a pork-barrel manifesto and is not worth as a 
manifesto." 
 
He could not overlook the DPJ's offensive. Suga indicated on July 28 
that the LDP will counter the DPJ with child-rearing and education 
support measures, remarking: "We will introduce free education for 
preschool children. If their parents are suddenly fired, they will 
have trouble paying education fees, so we will create a school 
expense-subsidy fund." 
 
In order to make its pledge on free education for preschool children 
aged between three and five more impressive, the LDP decided to 
shorten the targeted timeframe for introducing the measure from "in 
four years" to "in three years." When Prime Minister officially 
announce the party's policy platform (manifesto) in a press 
conference tomorrow, he will also announce a measure to set up a 
subsidy-type scholarship for excellent students from low-income 
households. 
 
New Komeito Policy Research Council Chairman Atsuo Yamaguchi 
rejoiced exuberantly when LDP Policy Research Council Chairman 
Kosuke Hori told him in their meeting at a hotel near the Diet 
Building that the LDP includes such measures as free education for 
preschool children in its manifesto. Relations between the LDP and 
the New Komeito were somewhat strained over the New Komeito-proposed 
cash handout scheme over the past year, but the two ruling parties 
have finally gotten along well with each other in the lead-up to the 
general election. 
 
For the LDP's child-rearing and education support measures, 700 to 
800 billion yen will be needed. This figure is smaller than the 6 
trillion yen estimated in the DPJ roadmap. Secretary General 
Hiroyuki Hosoda said: "As a responsible political party, the LDP 
will carefully examine measures that should be included in the 
manifesto." He probably meant that this amount is the maximum in 
order to keep "generous spending" and "responsibility" in balance. 
 
Even so, since the LDP has been the ruling party for so many years, 
the party has naturally been tied down by various cozy ties and 
demands. The party intends to maintain the current level of state 
subsidies for private schools, for which the LDP education policy 
clique remains influential. Given this, the LDP cannot unilaterally 
criticize the DPJ's fiscal-source question. 
 
 
TOKYO 00001753  005 OF 014 
 
 
Aso intended to underscore his ability to take responsibility by 
presenting a roadmap for a consumption tax hike. Meanwhile, the DPJ 
has pledged that the party would not raise the consumption tax in 
the next four years. Given this, attention was being focused on what 
approach the LDP would show in its manifesto and on how it would 
demonstrate a policy difference. But its manifesto just notes, "The 
party will raise the consumption tax without delay immediately after 
the economy turns around." The party thus has substantially sealed 
off a consumption tax hike until the economy is on a recovery track 
in accordance with its mid-term program, on which the LDP reached an 
ambiguous agreement with the New Komeito late last year after heated 
dispute. The LDP have yet to pave the way for fiscal reconstruction. 
 
 
LDP lists subsidy-type measures, out of consideration to support 
bases 
 
Prime Minister Aso visited 24 industrial organizations as of July 
29, including the Japan Medial Association, the Japan Pharmaceutical 
Association, the Japan Real Estate Association, the Construction 
Industry Association, the Japan Automobile Manufacturers 
Association, the Federation of Bankers Association of Japan, and the 
Central Union of Agricultural Cooperatives, without delivering 
stumping speeches since he dissolved the Lower House on July 21. 
 
In economic and social policies, the LDP and government agencies 
gave priority to indirect support by distributing subsidies to 
industrial groups. With this approach, policy goals were effectively 
attained, but cozy ties were established among government officials, 
bureaucrats and business leaders. Voices of discontent that the 
benefits have not reached the people were also heard. 
 
To counter the DPJ, which comes up with "direct support" in its 
manifesto, such as its proposal for child-care allowance, the LDP 
offers "direct support," including free education for preschool 
children. But its consideration to its support bases of the party 
such as industrial groups, so-called "indirect support," is to be 
noted in the manifesto. 
 
Late at night on July 28, LDP heavyweights lobbying for the 
interests of domestic farmers, including former secretary general 
Koichi Kato and former agriculture, forestry and fisheries minister 
Yoshio Yatsu, urgently met at party headquarters. Their gathering 
was aimed to hold a press conference to criticize the DPJ's policy 
of calling for a free trade agreement (FTA) with the U.S. Yatsu 
commented: 
 
"(If an agreement is reached,) large volumes of agricultural 
products will flow into Japan, and domestic farmers will receive a 
fatal blow. We have already received complaints of the measure from 
farmers and agricultural groups across the nation." 
 
In its manifesto, the DPJ vows to establish an income indemnity 
system for individual farming households, whereas the LDP proposes 
offering subsidies to agricultural cooperatives and other groups as 
measures to indirectly increase farmers' income. 
 
Some members of the Japan Medial Association, one of the largest 
support groups of the LDP, have begun to support the DPJ. Alarmed at 
the situation, the LDP decided to promise to "raise medial service 
fees next fiscal year." The LDP also decided to use a moderate 
expression for a measure to have itemized statements of medical 
 
TOKYO 00001753  006 OF 014 
 
 
expenses go online, reflecting strong objections to the measure in 
hospitals and other medical institutes. 
 
The LDP has also given full consideration to the construction 
industry. The manifesto notes: "The party will promote road and 
other infrastructure building in a positive manner." Aso emphasized 
in a speech at the Japan Civil Engineering Contractors' Association 
on July 24: "Public works projects have been defined as evil, but 
there are necessary projects. Disburse government funds is 
necessary." In response, association chairman Mitsuyoshi Nakamura, 
president of Kajima Corp., replied: "We will extend our support to 
the LDP as much as possible." The LDP's stance is in contrast to the 
DJP policy of slashing public works projects. 
 
Japan Business Federation (Nippon Keidanren) Chairman Fujio Mitarai 
has called for introducing the doshusei system (regional bloc 
system). The DPJ makes no reference to this task in its manifesto, 
but the LDP pledges to introduce the system by 2017, showing a clear 
policy difference from the DPJ and its consideration to the business 
world. 
 
(4) 2009 Lower House election: Interview with Mariko Bando, 
president of Showa Women's University; A solid system more important 
than cash handouts 
 
YOMIURI (Page 1) (Excerpts) 
July 31, 2009 
 
In the latter half of the 20th century, Liberal Democratic Party 
(LDP) administrations conducted politics under the Japanese-style 
regime characterized by a pro-U.S. policy course, light armament, 
free economy, income distribution, and priority to the elderly. Now 
in the 21st century, that regime is no longer fully functioning. 
Although the Koizumi reform drive successfully prolonged the 
regime's life for five years, the drive did not have the power to 
tap into fiscal reform to build a new regime. 
 
Wall Street-style capitalism raged through the United States under 
the Bush administration, and excessive competition and deregulation 
became problems in Japan, as well. Some regulations should have been 
left intact, such areas as safety, education, and welfare. Any 
society has some disparities, but a lack of a solid safety net for a 
growing number of dispatched (temporary) and non-regular workers was 
a problem. 
 
The hourly wages of female part-time workers were low because there 
was a tacit premise that they were working just to help make ends 
meet, rather than as main breadwinners. Deregulation pushed a large 
number of young and middle-aged men to join the unemployment ranks 
of the female part-time workers, exposing the poor working 
environment surrounding non-regular workers. 
 
In reaction to the Koizumi reform initiative, the LDP implemented a 
cash handout program, and the major opposition Democratic Party of 
Japan (DPJ), too, has come up with its manifesto featuring cash 
handouts, possibly out of rivalry toward the LDP. Creation of a 
system to provide services that can make childrearing easier is far 
more important than doling out cash handouts. 
 
Statistics show that a full-time female worker who takes child-care 
leave makes 200 million yen more in her lifetime than a woman who 
has a part-time job after becoming a fulltime homemaker after 
 
TOKYO 00001753  007 OF 014 
 
 
leaving a fulltime job for childbirth. It is impossible to cover 
that amount with cash handouts alone. 
 
I would like to propose the establishment of a childrearing 
insurance program that forms, along with the existing nursing-care 
insurance program, a mechanism to have the entire society assist in 
childrearing. The DPJ is aiming to eliminate bureaucrats from the 
policymaking process, but their know-how and expertise and private 
operators' experiences are essential in creating new schemes, such 
as a child-rearing insurance program. 
 
In employment policy, it is important to strictly restrict unpaid 
overtime work. Accurate claims for overtime work will require more 
manpower. Elimination of long hours of white-collar workers will 
make things easier for female workers. 
 
Many doctors work 36-hour daytime and nighttime shifts with little 
or no sleep. Both the LDP and the DPJ have mentioned an increase in 
the number of doctors, but the system itself must be improved in 
addition to increasing the number of doctors. 
 
It is essential to mull ways to build the kind of society Japan 
really needs from a long-term perspective rather than taking 
superficial policy approaches, such as cash handouts, from a 
short-term viewpoint. 
 
(Interview by Riichiro Maeki, chief of Political Department) 
 
(5) DPJ secretary general says that the notion of refueling 
operations is not the party's official position 
 
Jiji.com 
11:09, July 31, 2009 
 
Referring to Deputy President Ichiro Ozawa's assertion made when he 
was party head that refueling operations in the Indian Ocean by the 
Maritime Self-Defense Force (MSDF) troops are unconstitutional, 
Democratic Party of Japan (DPJ) Secretary General Katsuya Okada 
during a TBS TV program on July 31 noted, "The notion that such 
operations are unconstitutional is not shared by fellow party 
members. There have been various discussions in the party." He thus 
indicated the perception that the assertion Ichiro Ozawa made when 
he was party head was not the party's official position. 
 
Okada once again underscored the DPJ's stance of continuing 
refueling operations even it takes the reins of government. He said, 
"Letting the MSDF troops to return to Japan when there is a change 
of administration is a problem from the perspective of the 
continuity of diplomacy." 
 
(6) METI to question Tohoku University for allowing Iranian student 
to do research on reprocessing of nuclear fuel 
 
MAINICHI ONLINE (Full) 
13:28, July 31, 2009 
 
It has become clear that Tohoku University accepted a student from a 
research institute in Iran that was on the Ministry of Economy, 
Trade and Industry's (METI) list of organizations suspected to have 
been involved in the development of nuclear weapons and that the 
university allowed the student to do research on the reprocessing of 
spent nuclear fuel. A METI source said: "In view of the student's 
 
TOKYO 00001753  008 OF 014 
 
 
purpose, the case does not constitute a violation of the Foreign 
Exchange and Foreign Trade Control Law, but we would like to ask the 
university about specifics." 
 
In 2002, METI compiled under the Foreign Exchange and Foreign Trade 
Control Law a list of foreign users that might develop nuclear 
weapons. At present, the list contains 247 organizations in nine 
countries, including North Korea and Iran. The METI minister's 
authorization is required when accepting a student from any 
organization on the list who will do research that might be used for 
the development of nuclear weapons. In their briefings and 
documents, METI and the Ministry of Education, Culture, Sports, and 
Science and Technology have urged colleges and universities to check 
whether prospective foreign students are from any institutions on 
the METI list and their research areas. 
 
According to Tohoku University, the student in question majored in 
petro-chemistry at a university in Iran and he belonged to Jaber Ibn 
Hayen Research Laboratories to study the recycling of spent nuclear 
fuel. He entered Tohoku University in October 2002, studied 
technologies to extract silver and palladium from nuclear waste 
solution, but was not involved in the extraction of uranium and 
plutonium that can be used for nuclear weapons. 
 
The student returned to Iran after obtaining a doctorate degree from 
the university. The research institute joined the METI list in March 
2004, after the student entered the Japanese university. A Tohoku 
University source explained: "In screening the student before 
admitting him, we confirmed that the area of his research was not 
unrelated to the development of nuclear weapons. We believe there 
was no problem." 
 
(7) Supreme command eyed for GSDF 
 
TOKYO SHIMBUN (Top play) (Full) 
July 30, 2009 
 
The Ground Self-Defense Force has finalized its course of action to 
go ahead with reorganizational plans. In concrete terms, the GSDF 
will establish a "Ground Defense Command" (GDC) as a supreme 
headquarters atop all its troops. In addition, the GSDF will also 
launch an "International Readiness Command" (IRC) for overseas 
missions and a "Metropolitan Defense Command" (MDC) for the Tokyo 
metropolitan area. Along with the establishment of IRC and MDC, the 
Central Readiness Command (CRC) and the Eastern Army Headquarters, 
which covers the Kanto and Koshinetsu districts, will be abolished. 
The GSDF's regional armies will be under a setup of four 
headquarters. All the GSDF regional armies and their troops will be 
under the command of GDC. 
 
The GSDF reorganizational plans will be formally adopted in a new 
version of the National Defense Program Guidelines (NDPG), which 
will be revised late this year. The GSDF plans to launch the new 
commands in fiscal 2014 when the Midterm Defense Buildup Plan is to 
end. This reorganization, if translated into reality, will be on the 
largest scale ever. 
 
The GDC will grip all GSDF troops as their highest headquarters. Its 
establishment reminds us of the now-defunct Imperial Japanese Army's 
general staff that ran wild in the Pacific War. However, the GSDF 
leadership deemed it indispensable to launch the GDC in order to 
facilitate the Ground, Maritime, and Air Self-Defense Forces' joint 
 
TOKYO 00001753  009 OF 014 
 
 
operations. 
 
The GDC will be headquartered at the GSDF's Asaka garrison in 
Tokyo's Nerima. The CRC will move its units to the GDC. These CRC 
units include the 1st Airborne Brigade, the 1st Helicopter Brigade, 
and the Special Operations Task Force and will be under the GDC's 
direct command. 
 
The IRC is an advance team for overseas activities. The Central 
Readiness Regiment (CRR), which is headquartered at the GSDF's 
Utsunomiya garrison under the CRC and is currently deployed to 
Djibouti to back up an antipiracy mission in waters off Somalia, 
will be the IRC's core unit. 
 
The MDC will cover Tokyo and the two metropolitan prefectures of 
Kanagawa and Saitama. The 1st Division, headquartered in Tokyo's 
Nerima under the Eastern Army's command, covers the same area, will 
be abolished. The 12th Brigade, based in Shinto Village, Gumma 
Prefecture, will be transferred to the Northeastern Army. 
 
The GSDF currently has five district armies: the Northern Army for 
Japan's northernmost main island of Hokkaido, the Northeastern Army 
for the country's' northeastern districts, the Eastern Army, the 
Middle Army (for the Tokai, Hokuriku, Kinki, Chugoku, and Shikoku 
districts), and the Western Army (for Kyushu and Okinawa). Each of 
the five district armies has two to four divisions or brigades. 
 
The Maritime Self-Defense Force is unified under the Self-Defense 
Fleet as its highest headquarters, and the Air Self-Defense Force 
under the Air Defense Command (ADC). In 2006, the Joint Staff Office 
started GSDF, MSDF, and ASDF joint operations. However, its orders 
to the GSDF must be conveyed to five commanding generals. This has 
prevented the GSDF from prompting its actions. 
 
In July 2008, an advisory panel set up at the prime minister's 
office to reform the Defense Ministry released a report, which 
recommended abolishing the GSSDF's district armies and establishing 
the GDC. However, the GSDF underscored the necessity of its district 
armies and their respective headquarters, only to accept the panel's 
recommendation to establish the GDC. 
 
(8) Survey of Okinawa candidates for Lower House election on base 
issues, constitution shows divided views on USFJ realignment, 
unanimous support for SOFA revision 
 
RYUKYU SHIMPO (Page 2) (Full) 
July 31, 2009 
 
2009 Lower House Election Reporting Team 
 
In the second policy questionnaire submitted by Ryukyu Shimpo to 11 
Diet members affiliated with political parties or who are 
prospective candidates in Okinawa's constituencies with considerable 
political experience, the focus is on U.S. military bases, security 
policy, and the Constitution. Opinions were divided on U.S. Forces 
Japan (USFJ) realignment, but all candidates agreed on the need for 
a "full revision" of the Japan-U.S. Status of Forces Agreement 
(SOFA). With regard to the Constitution, while there was more 
support for revising the Constitution than preserving it, the 
respondents were divided on how to handle Article 9, which is the 
most controversial issue in the constitutional debate, with six 
favoring a "review," and five opting for "preserving" the 
 
TOKYO 00001753  010 OF 014 
 
 
provision. 
 
First District: Three-way division on dispatching the SDF overseas 
 
With regard to a review of the SOFA, three prospective candidates 
agreed that this is an unequal treaty and needs to be "revised 
fully." Konosuke Kokuba was positive about USFJ realignment, while 
Mikio Shimoji and Hisako Hokama were negative, reflecting different 
assessments between the ruling and opposition parties. On overseas 
dispatches for the Self-Defense Forces (SDF), Shimoji favored 
handling this with "special measures laws" for the sake of 
fulfilling international contributions; Kokuba favored legislating a 
"permanent law;" while Hokama opposed any such missions as a 
"violation of the Constitution." 
 
On the question of the relocation of the U.S. forces' Futenma Air 
Station, Shimoji proposed "considering new plans, including 
relocation within Okinawa, outside Okinawa, and outside Japan." He 
pointed out the existing risks in border defense and said that he 
will "respect the local community's views in handling the deployment 
of SDF in the Sakishima Islands." On the question of constitutional 
revision, he stressed the need for "additional provisions or 
revision of certain provisions to adapt to the times," such as 
provisions on environmental and educational rights. 
 
Kokuba gave a positive appraisal of USFJ realignment and noted that 
"the government has made the best possible negotiation with the U.S. 
at this point in time." He said that he will demand full revision of 
SOFA to "solve the problem of transfer of custody of USFJ suspects 
in crimes before indictment." He asserted that "it is commonly 
accepted in the world that the constitution should be amended as 
warranted" in response to changes in values, including thinking on 
human rights. 
 
Hokama pointed out that the USFJ realignment process "is being 
implemented in a way that will reinforce the U.S. military bases." 
With regard to SDF deployment in the Sakishima Islands, she cited 
the case of the town of Yonaguni and claimed that "tourism and 
Japan-China friendship will be ruined." On the subject of 
constitutional revision, she asserted that the purpose of the 
proposals for revision is to revise Article 9, and "Article 9 is an 
important world asset," stressing her support for preserving the 
Constitution. 
 
Second District: Clash on right of collective self-defense 
 
The relocation of bases, the use of returned land, and related 
issues constitute the main point of contention in the Second 
District, which hosts large U.S. military bases. Kantoku Teruya was 
critical of USFJ realignment, saying: "The construction of a new 
facility in Henoko, the return of Futenma Air Station, and the 
relocation of Marines to Guam are treated as one package," while 
Osamu Ashitomi contradicted him, expressing support for USFJ 
realignment and asserting that: "This was the result of a difficult 
decision made by Japan, the United States, and Okinawa Prefecture. 
There is no more feasible plan than this." The two agreed, however, 
on "full revision" of the SOFA. 
 
Teruya pointed out that SDF deployment in the Sakishima Islands 
"will only give rise to tension with the neighboring countries." He 
also opposed SDF overseas missions on the ground that "emphasis 
should be placed on conflict prevention, such as by reinforcing 
 
TOKYO 00001753  011 OF 014 
 
 
efforts to deal with poverty." He was against the revision of the 
Constitution as well, arguing that "(the addition of new rights) can 
be fully handled by realizing the ideals of the present 
constitution." He called for preserving Article 9 because "if the 
right of collective self-defense becomes constitutional, Japan will 
become a country that can go to war." 
 
Ashitomi asked that the stationing of the SDF in the Sakishima 
Islands be considered because "the local residents' wishes should be 
respected." With regard to overseas missions, he said that: 
"Responsiveness to the international situation is necessary. A 
permanent, regular law should be enacted." He favored the revision 
of the constitution in order to "include new rights, such as 
environmental rights." He wanted to see a review of Section 2 of 
Article 9 since "it is necessary to define the right of self-defense 
and the maintenance of a defense capability." 
 
Third District: Divided on relocation 
 
The relocation of the Futenma Air Station to Henoko in Nago City is 
the main point of contention in the Third District. The prospective 
candidates clashed fiercely on their assessment of USFJ realignment, 
including Futenma relocation. 
 
Chiken Kakazu looked at this positively because the steady 
implementation of the realignment plans will lead to the relocation 
of some 8,000 marines and the return of military bases south of 
Kadena, thus reducing the burden on Okinawa. Toru Odo also favored 
the early closure of Futenma, claiming the realignment process is 
"in line with the Okinawan people's desire for the consolidation and 
reduction of bases." Meanwhile, Deni Tamaki voiced his criticism 
that the "return of bases in a package is pointless; it was a 
decision made over the head (of the Okinawan people)." He stressed 
the need to create a consultative body to hear out the opinion of 
the local community. Shusei Arakawa said that "it is 
incomprehensible that tax money is being used for the relocation." 
He advocated moving Futenma to Guam, where a replacement facility 
can be located. 
 
All four prospective candidates agreed on the need for a full 
revision of SOFA, but they were apart in their position on 
constitutional revision. 
 
Kakazu asserted that a permanent law is necessary for SDF overseas 
missions and Article 9 Section 2 of the Constitution "should be 
revised to a provision capable of responding to the international 
situation appropriately." 
 
Tamaki said "careful discussion is needed" for the stationing of the 
SDF in the Sakishima Islands, and as for overseas missions, he set 
the condition that "only the dispatch of civilians based on UN 
resolutions should be allowed." 
 
Arakawa claimed that "there is no need to revise the Constitution," 
emphasizing his position of preserving the Constitution. He also 
came out clearly against SDF deployment in the Sakishima Islands and 
SDF overseas operations. 
 
Odo favored the revision of Article 9 because "a policy on 
collective security is necessary." He opted for overseas missions 
under special measures laws since the "consensus among the people is 
insufficient." 
 
TOKYO 00001753  012 OF 014 
 
 
 
Fourth District: Conflict over SDF deployment in the Sakishima 
Islands 
 
The question of stationing SDF in the Sakishima Islands has surfaced 
in the Fourth District. Kozaburo Nishime favored SDF deployment for 
border security "in order to secure the exclusive economic zone 
(EEZ), the sea lane, and marine resources and defend the national 
territory." Chobin Zukeran claimed that the economic development of 
the remote islands should be achieved through building up 
agriculture and the local industries. He opposed SDF deployment 
firmly because "(Japan) should persist in pacifist diplomacy." 
 
Nishime looked at USFJ realignment positively because "implementing 
(realignment) based on the agreement between Japan and the U.S. will 
lead to the reduction of the burden imposed by the bases." He said 
that the SDF's overseas missions "are an important contribution to 
international peace," stressing the need for a permanent law. 
"Problems are difficult to resolve through improvement of 
operations" of SOFA, so he favored a full revision. He also stressed 
the need to revise the Constitution, including Article 9, "to 
clarify the role of the SDF and the division of labor between the 
two houses of the Diet." 
 
On the other hand, Zukeran disagreed with USFJ realignment because 
"its purpose is not to reduce the burden imposed by the bases." He 
opposed SDF overseas missions because they "violate Article 9 of the 
Constitution." SOFA "is unequal and Okinawa's position has not been 
taken into account," so he called for a full revision. He also said 
that Article 9 of the Constitution "should be publicized all over 
the world," while other provisions "need to be discussed." 
 
(9) State-managed 22 airports in the red, with only four in the 
black, according to Transport Ministry's survey 
 
ASAHI (Page 1) (Slightly abridged) 
July 31, 2009 
 
Out of the 26 state-managed airports across the nation, 22 or about 
80 PERCENT  have been operating in the red, according to 
calculations by the Ministry of Land, Infrastructure, Transport, & 
Tourism. This is the first time for the ministry to survey the books 
of each airport. The results, which will be released today, show 
that most airports are far from being in a state of running on a 
stand-alone basis. 
 
Critics pointed out the non-transparency of each state-controlled 
airport's accounts, because of the package recording of their 
business accounts in the special account for infrastructure 
construction projects. Given this, the government promised in its 
annual economic and fiscal policy guidelines for 2008 to produce 
each airport's financial report. 
 
According to a calculation by the Transport Ministry in a way 
similar to corporate accounting, 22 airports were found to be 
running at a loss on an operating accounting basis (fiscal 2006). 
 
Fukuoka Airport showed the largest deficit of 6.7 billion yen, 
followed by Naha with 5.4 billion yen, Niigata with 2.3 billion yen, 
and Haneda with 2 billion yen. The large deficits of Fukuoka and 
Naha are attributed mainly to high rents. Niigata airport's 
expenditures were four times larger than its revenues. In the case 
 
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of Haneda, construction work related to the expansion of the runways 
was costly. All airports in Hokkaido except for Shin-Chitose airport 
and Kitakyushu airport also showed a deficit. 
 
Osaka (Itami),  Shin-Chitose, Kagoshima, and Kumamoto posted a 
surplus of 4.3 billion yen, 1.6 billion yen, 200 million yen, and 
200 million yen, respectively. 
 
In calculating on a recurrent accounting basis, 10 of the 22 
loss-making airports go into the black. 
 
Narita, Kansai and Chubu airports, which are controlled by 
corporations, were not covered by the ministry's investigation. As 
for 69 airports controlled by local governments, the ministry will 
call on the governments to calculate the accounts of the airports 
they control and disclose the accounts. Many of these airports are 
located in areas with a smaller population, so the number of 
loss-making airports is expected to increase. 
 
More local airports have been built, but the number of passengers 
for domestic lines has been on the decrease. Under this situation, 
there are cases in which airlines withdrew from unprofitable 
courses. No discussions have been conducted on airports' financial 
conditions so far. Set off the revelation by the ministry of the 
actual state of many airports dependent on tax money, thorough 
discussion is likely to be conducted on future options for airport 
improvement from now. 
 
(10) Remove Obama's mask, by Kazuyuki Hamada 
Book review by Gyo Tsutsumi, chief editor of Bungeishunju 
 
WILL (Full) (Page 144-145) 
September 2009 
 
U.S. President Barack Obama is called "the One" or the "Black 
Kennedy." This book, which discloses the real image of President 
Obama, is really worth reading. Obama has said, "Greedy Wall Street 
brokers brought about the present economic crisis," but his 
financial supporters and connections could appropriately be called 
"Wall Street representatives." For his presidential campaign, he 
reportedly collected a huge number of small donations averaging 25 
dollars a person, but the reality is that much of his funding came 
large contributors on Wall Street. 
 
As much as 42.5 million dollars were donated by only ten hedge 
funds. Since prominent stock investors, including George Soros, bet 
huge money on him winning, Obama was able to financially overwhelm 
the other candidates Hillary Clinton and then John McCain. 
 
Robert Rubin and Lawrence Summers, both former treasury secretaries, 
are now members of the Obama administration's economic team. These 
two deserve a great deal of the blame for the current situation for 
they are the very ones who let greedy Wall Street brokers do as they 
please. 
 
Learning from the Great Depression in 1929, Congress passed the 
Glass-Steagall Act of 1933 that established the Federal Deposit 
Insurance Corporation (FDIC) and included banking reforms, some of 
which were designed to control speculation. The law made a sharp 
distinction between the banking business and the selling of 
securities. Rubin and Summers abolished that law and replaced it 
with the Gramm-Leach Bliley Act, also known as the Financial 
 
TOKYO 00001753  014 OF 014 
 
 
Services Modernization Act. The legislation broke down the barrier 
between the banking and securities markets. In addition, they 
abolished the government's authority to manage and supervise hedge 
funds. 
 
Both of them served as secretary of the treasury in the Clinton 
administration. After serving in the government, Rubin became an 
executive of Citicorp Group and Summers, D.E. Show & Co. executive. 
They received huge salaries. 
 
Their monetary easing policy created the environment for rampant 
spreading of shady financial products that led to the current global 
economic recession launched in the United States. They are now 
members of the Obama administration. One of their followers, Timothy 
Geithner, now serves as secretary of the treasury. 
 
Moreover, White House Chief of Staff Rahm Emanuel, who used to work 
for a hedge fund, had a salary of nearly 20 million dollars a year. 
In short, the Obama administration is composed of a "financial 
mafia," and it has injected public funds into financial institutions 
mainly to rescue a bankrupt Wall Street. Brokers are grateful to the 
Obama administration for purchasing tainted assets. Economist Robert 
Reich has said: "(The Obama administration) is helping the rich on 
Wall Street become richer." 
 
Obama has a villa worth nine million dollars in Hawaii. Asked from 
where the money came, he just said: "I made money on the stock 
market." 
 
At present, Obama's birth origin is in question. He describes 
himself as a native of Hawaii, but that is suspicious. The law 
stipulates: 1) only a person born in the United States or a person 
of parents having American citizenship can become a U.S. president; 
2) a parent with U.S. citizenship must live at least ten years in 
America; and 3) of that ten years, the parent must live in the U.S. 
for five years after she or he passed their 16th birthday. 
 
Obama was born when his mother was 18. There is a possibility that 
Obama was not qualified to run for the presidency. Some of his 
relatives say he was born in Kenya. The government of the state of 
Hawaii has refused to issue his birth certificate. Obama's attorney 
threatens anyone who tries to pursue the allegation. 
 
The more you read the book the more your image of Obama will change. 
You will see him as all mouth. The book is a must-read for those 
hints as to what Obama will do regarding Japan. 
 
ZUMWALT