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UNCLAS SECTION 01 OF 12 TOKYO 001788 
 
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 08/05/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule [Nikkei] 
 
Former President Clinton in Pyongyang: 
4) U.S. notified Japan ahead of time about visit of former President 
Clinton to Pyongyang to negotiate release of two U.S. journalists 
[Asahi] 
5) Japan worried that North Korea will use the Clinton visit for its 
own purposes [Nikkei] 
6) Japan alarmed by Clinton visit to Pyongyang, worried that nuclear 
issue will come up [Tokyo Shimbun] 
7) Comments on the Clinton visit to North Korea by two scholars 
[Yomiuri] 
 
Defense and security affairs: 
8) Prime Minister Aso's security panel releases report calling for 
joint response with U.S. to North Korean missiles, revision of PKO 
principles [Sankei] 
9) Gist of contents of advisory panel's security policy 
recommendations [Mainichi] 
10) Democratic Party of Japan (DPJ) President Hatoyama indicates 
that his administration if elected would review the advisory panel's 
security report [Mainichi] 
11) Hatoyama negative about reinterpreting the Constitution to allow 
Japan the use of collective self-defense [Sankei] 
12) What will the DPJ do if elected into power about Japan's 
non-nuclear principles? [Mainichi] 
 
DPJ policies: 
13) DPJ will have ready in week a draft proposal for an FTA between 
Japan and the United States [Mainichi] 
14) DPJ set to promote policy of 2% economic growth [Nikkei] 
15) Nippon Keidanren (Japan Business Federation) differs with the 
DPJ on environmental issues and jobs policy [Yomiuri] 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Former U.S President Clinton meets North Korean leader Kim, nuclear 
issue may have been touched on 
 
Mainichi: 
Clinton meets Kim, progress may have been made over release of two 
journalists 
 
Yomiuri: 
Clinton meets Kim, conveys Obama's message 
 
Nikkei: 
China eyes boosting renewable energy output capacity 13-fold by 
2020 
 
Sankei: 
Clinton meets Kim, holds negotiations on release of two U.S. 
journalists 
 
Tokyo Shimbun: 
Clinton meets Kim, exchanges views on broad range of areas 
 
TOKYO 00001788  002 OF 012 
 
 
 
Akahata: 
JCP Chairman Shii meets UNGA president 
 
2) EDITORIALS 
 
Asahi: 
(1) Make Clinton's surprise visit to North Korea opportunity to 
break the crisis 
(2) Urge debate on national security based on the Constitution 
 
Mainichi: 
(1) Clinton's Pyongyang visit's top priority is release of female 
journalists 
(2) Question remains in government panel's proposal of "admitting" 
the right of collective self-defense 
 
Yomiuri: 
(1) New defense guidelines should reflect bold ideas 
(2) Development of technical capabilities most important for 
exploration of the moon 
 
Nikkei: 
(1) Policies for 2009 general election: Not only financial 
assistance but also other measures necessary for preventing falling 
birthrate 
(2) Make best use of government panel's proposals in national 
defense program outline 
 
Sankei: 
(1) Clinton's visit to the North: Don't distort broad principle that 
North Korea will abandon nuclear programs 
(2) Reviewing exclusively defense-oriented policy is only natural 
 
Tokyo Shimbun: 
(1) Removal of exclusively defensive dense policy unacceptable 
(2) Clinton's North Korea visit: Don't' repeat another's mistake 
 
Akahata: 
(1) Agricultural revitalization: JCP as constructive opposition 
party to speak up against business community and U.S. 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 4 
 
NIKKEI (Page 2) (Full) 
August 5, 2009 
 
09:13 
Council on Security and Defense Capabilities at Kantei; followed by 
Security Council of Japan meeting 
 
10:06 
Cabinet meeting; followed by meeting with all cabinet ministers, LDP 
Policy Research Council Deputy Chairman Hiroyuki Sonoda; met Cabinet 
Intelligence Director Mitani 
 
11:05 
Met Israeli, Palestinian youth participating in "Middle East Peace 
Project"; followed by elementary and middle school "kid reporters" 
from Okinawa, Hakodate 
 
TOKYO 00001788  003 OF 012 
 
 
 
11:57 
Met former Nagasaki Mayor Hitoshi Motoshima, accompanied by Senior 
Vice Minister of Defense Kitamura 
 
13:07 
Meeting on education with National Federation of Private 
Universities at the Shigaku Kaikan in Kudankita 
 
14:15 
Handed out certificate of endorsement to candidate in Sakai mayoral 
election at Kantei; Shuzen Tanigawa, secretary general of LDP caucus 
in Upper House, also present; followed by meeting with Japan 
Security Research Association 
 
15:12 
Met Upper House member Ichiro Tsukada 
 
15:41 
Call of condolence for ex-President Corazon Aquino at Philippine 
Embassy in Roppongi 
 
16:27 
Campaign kickoff meeting of LDP Kanagawa Chapter at Yokohama Royal 
Park Hotel 
 
17:30 
Street corner speech in front of JR Sakuragicho station 
 
18:13 
Street corner speech at West Exit of JR Yokohama station 
 
18:54 
Lecture sponsored by LDP Kanagawa Chapter at Kanagawa Public Hall 
 
20:15 
Arrived at official residential quarters 
 
FORMER PRESIDENT CLINTON IN PYONGYANG 
 
4) U.S.: Line drawn between Clinton's N. Korea visit and nuclear 
issue 
 
ASAHI (Page 9) (Abridged) 
August 5, 2009 
 
Concerning former U.S. President Clinton's visit to North Korea, the 
Japanese government, while paying attention to the results of his 
meeting with North Korean leader Kim Jong Il, wants to further 
deepen cooperation with the U.S. government. Clinton reportedly 
visited North Korea to urge Pyongyang to release detained U.S. 
reporters. Tokyo, however, does not want Washington to compromise on 
the nuclear problem and other issues in order for Japan and the 
United States to act in concert. 
 
According to a senior Foreign Ministry official, the U.S. government 
gave prior notification to the Japanese government about Clinton's 
visit to North Korea. The U.S. government explained that Clinton 
would visit North Korea as a private citizen, not in the capacity of 
a government official, the official said. The United States views 
the Clinton visit to North Korea as "a humanitarian visit for the 
release of detained reporters" and "draws a clear line between it 
 
TOKYO 00001788  004 OF 012 
 
 
and bilateral talks between the United States and North Korea on 
issues including the nuclear problem," according to the official. 
 
The Japanese government has indicated that it would accept such 
bilateral talks between the United States and North Korea if the 
bilateral talks are linked to the Six-Party Talks and lead to a 
comprehensive solution to the abduction, nuclear, and missile issues 
for Japan. Last October, however, the former Bush administration 
removed North Korea from the list of state sponsors of terrorism 
without properly consulting with Japan. Given such circumstances in 
the past, the Japanese government is very wary of the United States 
and North Korea going ahead with bilateral talks. 
 
The Japanese government therefore asked the Obama administration to 
consult with Japan and South Korea before entering into bilateral 
talks with North Korea, taking up the abduction issue when holding 
talks with North Korea, and reporting what was discussed between the 
United States and North Korea in their bilateral talks. This time, 
the U.S. government contacted the Japanese government before the 
Clinton visit. 
 
For the United States, Clinton's visit to North Korea may be a visit 
for "humanitarian purposes." Even so, a senior Foreign Ministry 
official said North Korea undoubtedly has something in mind. "The 
lineup of North Koreans who greeted Clinton shows that they were 
attaching a great deal of importance to his visit," the official 
said. With the Clinton visit as an opportunity, North Korea may also 
attempt to hold direct negotiations with the United States. "It's 
not an occasion for negotiations, so former President Clinton will 
probably bring North Korea's message back home," the official said, 
adding, "I don't know how it will turn out." 
 
5) Japan alarmed at "sweet deal" 
 
NIKKEI (Page 3) (Full) 
August 5, 2009 
 
The Japanese government is highly alarmed at North Korea's intent. 
Although Japan does not oppose a U.S.-DPRK dialogue, if talks 
proceed behind the backs of Japan and other countries concerned, 
Japan fears this might have an adverse effect on the progress of the 
Six-Party Talks to discuss the North Korean nuclear issue. 
 
According to a government source, Japan received an advance notice 
on the visit to North Korea by the former U.S. President. The source 
said: "North Korea is expected to try to take advantage of the 
former President's visit." A senior Foreign Ministry official, too, 
commented: "The abduction issue and the nuclear/missile issue must 
not be grouped together. No sweet deal must be cut." 
 
6) Former U.S. president visits Pyongyang: Japan, alarmed about 
possible nuclear deal, calls for separating release talks from other 
issues 
 
TOKYO SHIMBUN (Page 3) (Full) 
August 5, 2005 
 
Former U.S. President Clinton visited North Korea to hold talks on 
the release of two American female reporters who are detained in 
that country. He met with General Secretary Kim Jong Il. The 
Japanese government said that it hopes to see the case settled. It 
is, at the same time, paying attention to the outcome of the 
 
TOKYO 00001788  005 OF 012 
 
 
meeting, suspecting that Pyongyang might use the case as a 
bargaining chip for the nuclear development issue. 
 
Concerning the former president's visit to North Korea, Foreign 
Minister said, "We are not in a position of making any comment on 
the matter." However, Japan had been informed of the matter by the 
U.S. in advance. A senior Foreign Ministry official said, "In view 
of Japan's ties with the U.S. at the six-party talks, it is only 
natural for the U.S. to inform of the matter to Japan in advance." 
 
The Japanese government is under a direct threat from North Korea 
regarding the nuclear and missile issues. It is also strapped with 
the abduction issue. As such, it is concerned about the DPRK tying 
the release talks to the nuclear development issue, as a senior 
Foreign Ministry official said. 
 
Japan cannot accept that the release talks will make progress, while 
there is still no progress on the nuclear development and missile 
issues. The government is watching how the release talks will 
unfold, while asking the U.S. to separate the talks from other 
issues. 
 
7) Experts' views on Clinton's visit to North Korea 
 
YOMIURI (Page 6) (Excerpts) 
August 5, 2009 
 
Hajime Izumi, Shizuoka Prefectural University professor of 
international politics, Korean Peninsula politics and foreign policy 
-- Aim is mutual understanding 
 
Former U.S. President Bill Clinton is visiting North Korea for talks 
for release of the two American journalists, but the North Korean 
nuclear issue is also expected to be discussed naturally. The former 
President will effectively serve as a special envoy. 
 
The former President is visiting the DPRK because he is the husband 
of Secretary of State Hillary Clinton and to convey the Obama 
administration's intent clearly to the North. Having amassed much 
experience from his presidential days, he is well-versed in North 
Korean affairs. I am certain that the former President meets every 
requirement presented by North Korea as its negotiation partner. 
 
The United States' purpose is to relay to Pyongyang the Obama 
administration's "comprehensive solution" (to extend assistance in 
return for nuclear abandonment). I believe [the United States] after 
listening to North Korea's intentions regarding the nuclear issue 
and other matters, will watch carefully its next move. 
 
There will be no request from the U.S. side for direct talks with 
General Secretary Kim Jong Il. The purpose of this trip is to win 
the release of the journalists separate from the nuclear issue. But 
then, it can be said that the United States conveying its policy to 
Secretary General Kim and showing its understanding to General 
Secretary Kim's thinking is the maximum goal of the two sides. 
 
The United States' stance is that it will not make a compromise with 
North Korea on its returning to the Six-Party Talks, but there is a 
possibility that Pyongyang will call for direct talks with 
Washington on the premise that it will return to the Six-Party 
Talks. The Clinton visit will serve as the starting point for the 
North's return to the Six-Party Talks and U.S.-DPRK bilateral 
 
TOKYO 00001788  006 OF 012 
 
 
talks. 
 
(Interview by Ken Makino) 
 
Hideshi Takesada, executive director of the Defense Ministry 
National Institute for Defense Studies - North Korea expected to 
convey to U.S. its intent to shift to peace system 
 
Talks are expected to include the nuclear issue, in addition to the 
release of the two American journalists. I think North Korea intends 
to convey to the U.S. its intent of shifting from a truce condition 
to a process for building a peace arrangement. I believe North Korea 
thinks former President Bill Clinton, the husband of the U.S. 
Secretary of State, is appropriate to entrust with its intent. 
 
The North must have concluded that the stage has been set for 
Clinton's visit to Pyongyang at this particular point in time to 
discuss matters on equal footing in the wake of the Taepodong-2 
missile launch and the nuclear test by the DPRK. The clock is also 
ticking in view of General Secretary Kim Jong Il's poor health. 
 
A visit to Pyongyang by the former President has been rumored since 
before the journalists were detained. He was about to visit North 
Korea in 2000. This time around, the United States was able to score 
points by realizing talks with General Secretary Kim and 
successfully conducting "private diplomacy." In addition, the United 
States was able to confirm General Secretary Kim's health condition 
firsthand. It has obtained information that is beneficial for 
negations in the future. 
 
The Six-Party Talks are unnecessary for North Korea, whose aim is to 
win assurance for the maintenance of the current regime. Japan and 
South Korea are cumbersome and China requires special attention, so 
talks without them would be easier. Asked for consideration for its 
neighboring countries, the United States might present such steps as 
easing its financial sanctions for the North's return to the 
Six-Party Talks. If the way is paved for U.S.-DPRK bilateral talks, 
there is a possibility that the Six-Party Talks will serve as a 
lubricant for the bilateral talks and that its role will diminish. 
 
(Interview by Kenji Noguchi) 
 
DEFENSE AND SECURITY AFFAIRS 
 
8) Defense panel recommends joint Japan-U.S. response to DPRK 
missiles, review of five PKO principles 
 
SANKEI (Page 2) (Full) 
August 5, 2009 
 
The Council on Security and Defense Capabilities (chaired by Tokyo 
Electric Company chairman Tsunehisa Katsumata), a private advisory 
body to the prime minister, submitted its recommendations on defense 
capability buildup to Prime Minister Taro Aso on August 4. It calls 
for revising the constitutional interpretation banning the exercise 
of the right of collective self-defense to allow the Self-Defense 
Forces (SDF) to protect U.S. ships guarding against North Korean 
ballistic missiles. It also demands the relaxation of the three 
principles on arms exports at an early date to allow Japan to 
participate in international joint development and production of 
military equipment. 
 
 
TOKYO 00001788  007 OF 012 
 
 
The report proposes the concept of "multi-tiered and collaborative 
defense capability" in place of the "multi-functional and flexible 
defense capability" in the current National Defense Program 
Guidelines (NDPG). It asserts that Japan should build a 
"multi-tiered and collaborative defense capability" through: (1) its 
own efforts; (2) cooperation with its allies; (3) regional 
cooperation; and (4) cooperation with the international community. 
 
Toward this end, the Council stresses the need to review the "basic 
policy for national defense," which sets a policy of exclusive 
defense, and participate actively in UN peacekeeping operations 
(PKO). It also calls for a review of the five PKO principles, 
including a relaxation of the rules on the use of arms, and the 
legislation of a permanent law allowing the dispatch of the SDF for 
overseas missions at all times. 
 
The report also points out that the ban on SDF mobilization to 
assist ally forces under attack in a joint mission and rear support 
"deviates from the reality in international cooperation" on the 
grounds that "this may constitute the use of force." It emphasizes 
the need to revise the constitutional interpretation to make such 
activities possible. The panel regards North Korea's ballistic 
missiles as a "common threat to Japan and the United States" and 
recommends that the exercise of the right of collective self-defense 
should be allowed for the interception of missiles targeting the 
U.S. and for the protection of U.S. ships guarding against missiles 
in the open seas by SDF vessels. It points out the need for 
"appropriate legislative measures, including a review of the 
constitutional interpretation." 
 
Regarding the three principles on arms exports, which prohibit the 
export of weapons to foreign countries, the Council expresses its 
concern that this is obstructing the acquisition of advanced 
technology and the promotion of Japan-U.S. defense cooperation. It 
asks that the three principles be relaxed at an early date by 
drawing up a new policy that "allows the export of weapons that 
contribute to world peace and security," and exempting specific 
cases from the three principles prior to the implementation of the 
new policy. It cites the following as possible cases of exemption 
from the three principles: participation in joint international 
development and production of military hardware, transfer of jointly 
developed equipment to a third country by a development partner, and 
assistance to antiterrorism and anti-piracy operations. 
 
The report was compiled as a basis for discussion on the revision of 
the NDPG toward the end of the year. 
 
9) Main points from security and defense panel report 
 
MAINICHI (Page 5) (Full) 
August 5, 2009 
 
The following is a gist of the report submitted by the government's 
advisory panel on security and defense capabilities. 
 
Chapter 1: Japan's new security strategy 
 
Section 1: Security strategy's ideal and objective-The world Japan 
is heading for (omitted [by the Mainichi Shimbun]) 
 
Section 2: The security environment of Japan 
The United States' commitment could be shrinking. The United States 
 
TOKYO 00001788  008 OF 012 
 
 
has taken the initiative to provide the international community with 
public assets. The European Union and countries like Japan will need 
to work together to provide such international public assets. North 
Korea's regime could collapse in the future. 
 
Section 3: Multilayered cooperative security strategy 
Japan, for its national security, needs "multilayered cooperative 
security strategy" to attain three goals with its "multilayered" use 
of four approaches. 
 
Chapter 2: Japan's defense capability 
 
Section 1: Defense capability and its role 
Japan should weigh "deterrence with its presence" (static 
deterrence) and "operational deterrence" (dynamic deterrence). 
 
Section 2: Defense capability and its additional functions and setup 
(omitted [by the Mainichi Shimbun]) 
 
Section 3: Defense capability and its foundation (omitted [by the 
Mainichi Shimbun]) 
 
Chapter 3: Security policy review 
 
Section 1: Security policy and its guidelines (omitted [by the 
Mainichi Shimbun]) 
 
Section 2: Japan's policy and setup for international peace 
cooperation (omitted [by the Mainichi Shimbun]) 
 
Section 3: Response to ballistic missile attacks 
Japan should be allowed to intercept North Korean ballistic missiles 
headed for the United States. The government should therefore review 
its interpretation of the right to collective self-defense. The 
Self-Defense Forces' vessels should be allowed to protect U.S. naval 
vessels. The government should therefore take appropriate 
legislative steps, including reviewing its conventional 
interpretation of the right to collective self-defense. 
 
Section 4: Japan's three principles on arms exports 
It is appropriate for Japan to participate in such projects as 
international joint research, development, and production outside 
the bounds of its three principles on weapons exports. 
 
Section 5: New security strategy and its foundation (omitted [by the 
Mainichi Shimbun]) 
 
10) DPJ to review security panel report: Hatoyama 
 
MAINICHI (Page 5) (Abridged) 
August 5, 2009 
 
Democratic Party of Japan President Yukio Hatoyama, meeting the 
press yesterday, said the report submitted by the government's 
advisory panel on security and defense capabilities was a "policy 
proposal" to the Liberal Democratic Party's government. "We will 
have to review that report from our point of view, including its 
members," Hatoyama said, clarifying that the DPJ would review the 
panel report after taking the reins of government. 
 
The report suggests the government review its interpretation of the 
right to collective self-defense and ease its self-imposed three 
 
TOKYO 00001788  009 OF 012 
 
 
principles on weapons exports. "It's true that the government's view 
has taken root," Hatoyama said. He added, "We need to scrutinize and 
verify the panel's discussion." With this, he indicated that the 
issues should be handled cautiously. 
 
11) DPJ's Hatoyama negative on review of constitutional 
interpretation of right to collective self-defense 
 
SANKEI (Page 2) (Full) 
August 5, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama held a news 
conference at the party headquarters on August 4 in which he 
commented on the constitutional interpretation of the exercise of 
the right to collective self-defense and the three principles on 
arms exports. He stated: "The government has come out with a 
position on this for many years, and this has taken root," 
indicating a negative view on making a review. He said that with 
regard to the three no-nuclear principles, "this is a national 
policy which is stronger than the law and in a sense, above the 
law." He criticized the Council on Security and Defense Capabilities 
because "the members were picked by the Liberal Democratic Party 
(LDP) administration, and the recommendations were made for the LDP 
administration." "After we take over the administration, we will 
start with a close examination of our thinking." 
 
12) How will DPJ handle the three nonnuclear principles? 
 
MAINICHI (Page 2) (Full) 
August 5, 2009 
 
Joichi Sato, Shinichiro Nishida 
 
The handling of Japan's Three Nonnuclear Principles -- the policy of 
not possessing, not producing and not permitting the introduction of 
nuclear weapons into Japan -- has emerged as a source of trouble 
between the Democratic Party of Japan (DPJ) and the Social 
Democratic Party (SDP), with which the DPJ is considering forming a 
coalition government after the upcoming House of Representatives 
election. If the DPJ reveals the contents of the "secret treaty" 
between Japan and the United States that contravened the policy of 
not allowing the introduction of nuclear weapons into Japan, chances 
are that it will be difficult for Japan not to allow the transit of 
nuclear weapons. The SDP as a result is increasingly worried that 
the DPJ might consider revising the Three Nonnuclear Principles. 
 
During her meeting yesterday with United Nations General Assembly 
President Miguel d'Escoto Brockmann, who is now visiting Japan, SDP 
Chairperson Mizuho Fukushima said: 
 
"When Japan discloses the secret pact, it will have two choices: one 
would be to remove the policy of not permitting the introduction of 
nuclear weapons into the country from the three nonnuclear 
principles and the other being that it will continue to maintain all 
three principles." 
 
Fukushima was able to draw out from d'Escoto, who has called for 
abolishing nuclear weapons, the answer that the three nonnuclear 
principles should be kept. 
 
What Fukushima has in mind is the SDP's letter asking the DPJ and 
People's New Party (PNP) for their cooperation to legislate the 
 
TOKYO 00001788  010 OF 012 
 
 
Three Nonnuclear Principles. The SDP noted in the letter that Japan 
should not reduce the three principles to two in order to adhere to 
the secret agreement. This is because DPJ President Yukio Hatoyama 
stated on July 14: "A pragmatic response has been made because there 
was a necessity to do so." The SDP took Hatoyama's remark as 
implying a review of the three principles. 
 
Taking advantage of her meeting with the UNGA president ahead of 
peace ceremonies in Hiroshima and Nagasaki, Fukushima sent the 
message to the DPJ. Hatoyama, however, assumed an indifferent 
attitude. At a press conference yesterday, he took a cautious stance 
toward the SDP's call for the legislation, saying: 
 
"The Three Nonnuclear Principles are like a national virtue that 
exceeds law. If they are made into law, there is a possibility that 
they will be changed. We should handle the matter in a cautious 
manner." 
Should the DPJ disclose the secret deal after it takes the reins of 
government, there is a possibility that the party will acknowledge 
the introduction of nuclear weapons into Japan, which has been 
admitted based on a tacit agreement. DPJ Secretary General Katsuya 
Okada, in an interview to the Mainichi Shimbun, stated: "If the 
secret deal is disclosed, we will have to hold policy debate as to 
whether the three principles should be modified or the present way 
of thinking should be kept." 
 
The DPJ's manifesto (campaign pledges for the next general election) 
does not stipulate anything about the Three Nonnuclear Principles, 
which is quite a contrast to the SDP, which strongly advocates the 
maintaining of them. Therefore, the issue will likely a major topic 
of discussion in compiling common policies among the DPJ, SDP and 
PNP. 
 
DPJ POLICIES 
 
13) DPJ to propose amendment to manifesto on Japan-U.S. FTA this 
week, exempting major crops from agreement 
 
MAINICHI (Page 2) (Full) 
August 5, 2009 
 
Nariyuki Tanaka 
 
At a briefing on the manifesto (campaign pledges) of the Democratic 
Party of Japan (DPJ) for the House of Representatives election in 
Sapporo City on August 4, Deputy President Naoto Kan told reporters 
that the party may come up with an amendment proposal on the pledge 
to conclude a free trade agreement (FTA) with the United States this 
week. Regarding the method of amendment, he said: "Tariff for the 
major crops should basically not be reduced. We want to include a 
clear statement on this." 
 
Kan received a petition from agricultural groups in Hokkaido to 
include in the final manifesto the exemption of agricultural and 
livestock products from the FTA negotiations." He stressed at the 
briefing held after this that, "We have no intention to engage in 
FTA negotiations that contradict the party's agricultural policy of 
increasing self-sufficiency." He said that "something to that effect 
will be included in the manifesto to be distributed after the 
official declaration of candidacy (on August 18)." 
 
However, the liberalization of agriculture through the conclusion of 
 
TOKYO 00001788  011 OF 012 
 
 
FTAs is believed to be inseparable from the DPJ's main agricultural 
policy of income compensation for farming households. The exemption 
of agricultural products from the FTA that Kan was referring to is 
an issue bearing on the very foundation of agricultural policy. 
Rough sailing on this issue is inevitable. Secretary General Katsuya 
Okada also emphasized to reporters in Toyohashi City, Aichi 
Prefecture, on August 4 that, "We will only go into FTA negotiations 
after ensuring self-sufficiency and food safety." 
 
14) DPJ aims for 2 percent growth: Same level as LDP's goal; No 
specific measures, goal year indicated 
 
NIKKEI (Page 2) (Full) 
August 5, 2009 
 
The Democratic Party of Japan (DPJ) on August 4 held a Lower House 
election manifesto briefing at the Japan Business Federation (Nippon 
Keidanren). Secretary General Katsuya Okada during the session 
revealed the party's intention to aim for annualized economic growth 
of 2 percent sometime in the future, noting: "A growth strategy is 
important. The Liberal Democratic Party's (LDP) target is 2 percent. 
Attaining 2 percent growth appears to be feasible, if we do our 
utmost. It is a desirable figure." He, however, stopped short of 
showing any specific measures or a goal year. 
 
As a growth strategy, the LDP advocates achieving an annualized 
growth of 2 percent by the remaining half of the fiscal 2010. Okada 
said, "I do not think there is much difference with the LDP's goal." 
Regarding specific measures to achieve the end, Okada said, "The LDP 
has not yet said how it is going to attain its goal. I have no 
answer to give at the moment." 
 
Emerging from the briefing, Policy Research Council Chairman 
Masayuki Naoshima underscored to reporters: "Many observers are of 
the opinion that Japan's potential growth rate is 1.5 percent. We 
want to achieve 1.5 percent growth promptly. We will aim to achieve 
2 percent sometime in the future." 
 
Prime Minister Taro Aso during a speech made on the 4th in Yokohama 
criticized the DPJ's policy, saying, "Only the LDP advocates turning 
around the economy. It has a proper growth strategy." 
 
15) Gaps in views of Nippon Keidanren, DPJ on environment, 
employment measures visible at manifesto briefing 
 
YOMIURI (Page 9) (Full) 
August 5, 2009 
 
The Japan Business Federation (Nippon Keidanren) on August 4 invited 
senior Democratic Party of Japan (DPJ) members, including Secretary 
General Katsuya Okada, to the Keidanren Hall in Otemachi, Tokyo for 
a briefing on its manifesto. The Liberal Democratic Party (LDP) also 
held a manifesto briefing at Nippon Keidanren on the previous day. 
Many participants highly praised the LDP's policy proposals. In 
contrast, gaps in views of Nippon Keidanren and the DPJ over 
environment and employment issues were visible at the DPJ's briefing 
yesterday. 
 
Among DPJ's policies, Nippon Keidanren is most concerned about its 
goal of cutting greenhouse gas emissions by 25 percent by 2020 in 
comparison with the level of the base year of 1990. 
 
 
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Nippon Keidanren pointed out that a high target will greatly affect 
people's livelihoods. Secretary General Okada rebutted, "If the 
negative aspects of global warming are to be taken into 
consideration, we must devise ways to attain a severe goal," while 
adding, "Our goal is based on the precondition the U.S., China, and 
India join the framework to combat global warming." The DPJ and 
Nippon Keidanren thus remained out of sync. 
 
Nippon Keidanren also strongly opposed the DPJ's stance of placing a 
general ban on the dispatch of workers to manufacturers. As reasons 
for their opposition, the business federation cited that such a 
policy could deprive temporary workers of job opportunities and 
small- and medium-sized companies, in particular, have no financial 
strengthen to employ permanent workers. 
 
Policy Research Council Chairman Naoshima of the DPJ sought 
understanding, saying, "We want to designate special employment 
areas to which temporary workers can be dispatched, instead of 
placing a uniform ban." Nippon Keidanren Chairman Mitarai insisted, 
"Dispatching temporary workers to the manufacturing sector should 
basically be approved." 
 
The DPJ indicated its stance of achieving economic growth through 
increased consumption, by means such as providing child allowance. 
Mitarai urged the party to reveal its growth strategy in the form 
of, for instance, the government designating areas into which it 
will invest heavily. 
 
Some business leaders gave the DPJ's manifesto high marks, noting 
that amid a change of administration becoming the greatest focus of 
attention in the Lower House attention, the DPJ's approach has 
become realistic. Meanwhile, referring to the LDP manifesto, Mitarai 
pointed out that the time required for materialization is too long. 
Nippon Keidanren intends to evaluate the details of both parties' 
manifestos and use the results when making fresh policy proposals. 
 
ZUMWALT