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UNCLAS SECTION 01 OF 15 TOKYO 001799 
 
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 08/06/09 
 
INDEX: 
 
(1) Chief Cabinet Secretary Kawamura reveals briefing by senior U.S. 
official on ex-President Clinton's request to Kim Jong Il on 
Japanese abductees (Nikkei) 
(2) Obama speech (part 2): Government, which relies on nuclear 
umbrella, perplexed (Asahi) 
(3) Political Parties' seriousness about the nuclear issue 
questioned: "secret nuclear deal" overlooked in general election 
(Tokyo Shimbun) 
(4) Secret pact diplomacy (Part 3): Interview with George Packard, 
former special assistant to U.S. ambassador to Japan -- Japan must 
admit the existence of secret pact and discuss critical matters 
(Nikkei) 
(5) Examination of manifestos on relations with U.S.: LDP says 
alliance is cornerstone of foreign policy; DPJ eyes equal 
relationship (Yomiuri) 
(6) U.S. administration, Congress scrutinizing DPJ's "pragmatic 
line"; "Feeling of security" if LDP administration continues 
(Yomiuri) 
(7) Enola Gay crewmember Jeppson says radiation damage was beyond 
government's projection, describes President Obama's moral 
responsibility statement as "naove and wrong" (Mainichi) 
(8) PM Aso implements few effective policies to deal with North 
Korea (Asahi) 
(9) DPJ revises one pledge after another in manifesto for Lower 
House election (Nikkei) 
(10) Agricultural cooperatives, medical associations abandoning LDP 
(Tokyo Shimbun) 
(11) DPJ aims at securing fiscal resources by reducing extra budget 
(Yomiuri) 
(12) Japan's image post economic-superpower status (Sankei) 
 
ARTICLES: 
 
(1) Chief Cabinet Secretary Kawamura reveals briefing by senior U.S. 
official on ex-President Clinton's request to Kim Jong Il on 
Japanese abductees 
 
NIKKEI ONLINE (Full) 
12:42, August 6, 2009 
 
At a news conference on the morning of August 6, Chief Cabinet 
Secretary Takeo Kawamura revealed that he was briefed on the phone 
by a senior U.S. government official that former President Bill 
Clinton made a request to General Secretary Kim Jong Il regarding 
progress in the Japanese abduction issue at his meeting with Kim in 
North Korea on August 4. 
 
According to this U.S. official, Clinton made a strong request 
during the meeting that "(North Korea) should work for progress in 
the abduction issue. The reinvestigation (of the abduction cases) 
already agreed between Japan and the DPRK should resume." Kim did 
not give any specific response. The nuclear and missile issues did 
not come up during the meeting, and Clinton did not pass on any 
message from President Barack Obama. 
 
After receiving the briefing, Kawamura told the U.S. official: "We 
hope this is something that will lead to a solution to the abduction 
issue. We will also convey the substance of the meeting to the 
(families of the) abduction victims." 
 
 
TOKYO 00001799  002 OF 015 
 
 
(2) Obama speech (part 2): Government, which relies on nuclear 
umbrella, perplexed 
 
ASAHI (Page 3) (Abridged slightly) 
August 6, 2009 
 
With rising public expectations about nuclear disarmament due to the 
advocacy of such by President Obama, the issue of the U.S.' nuclear 
umbrella \ presents a challenge for Japan. 
 
Even though Japan has called for the elimination of nuclear arms 
every year at the UN General Assembly, an atmosphere joyfully 
welcoming Obama's goal of a nuclear-free world is absent in the 
government, particularly the Foreign Ministry (MOFA). Officials are 
concerned that the nuclear umbrella that the U.S. provides for 
Japan's security, could be undermined by the new Obama policy. 
 
Assistant Secretary of State Kurt Campbell, when he visited Japan in 
July, said, "The U.S. has sufficient capability to reassure nations 
that are still under its nuclear umbrella." According to a Japanese 
government source, the Japanese side at a meeting of both countries' 
foreign affairs and defense officials asked the U.S. to give 
consideration to the nuclear umbrella when the U.S. proceeds with 
nuclear disarmament talks with Russia. Campbell addressed Japan's 
concern by proposing a setting for the U.S. and Japan to discuss the 
deterrence issue, including nuclear deterrence, on a regular basis. 
 
Such a stance by Japan is affecting arguments on the nature of 
deterrence within the U.S. 
 
Referring to the possibility of Japan going nuclear, former defense 
secretary James Schlesinger in July this year noted in an interview 
with a U.S. daily: "The nuclear umbrella is playing the role of 
preventing nuclear proliferation. Some U.S. allies will feel it 
necessary to have their own nuclear capability, if they have no 
nuclear umbrella." 
 
In the meantime, researchers and others in international forums are 
discussing a no-first-use of nuclear weapons option as the first 
step toward the elimination of nuclear arms. 
 
However, the U.S. is not positive about this notion. One reason for 
this is the consideration being given to its ally Japan. Japan has 
left out one aspect of the nuclear umbrella, the possibility of 
using nuclear arms against a threat of not only nuclear arms but 
also biological and chemical weapons. 
 
Former Australian foreign minister Evans, who co-chairs the 
International Commission on Non-nuclear Proliferation and 
Disarmament, a consultation conference backed by the Japanese 
council, in May strongly asked Japan to back down on such a stance. 
U.S. NGO's have also criticized such a stance of Japan. 
 
A government source acknowledged, "The pacifist constitution and 
three non-nuclear principles are inconsistent with the nuclear 
umbrella. We have failed to pursue proper discussions on the matter, 
as they are worlds apart." This source then said, "The time has 
probably come when we must face the matter squarely." 
 
(3) Political Parties' seriousness about the nuclear issue 
questioned: "secret nuclear deal" overlooked in general election 
 
 
TOKYO 00001799  003 OF 015 
 
 
TOKYO SHIMBUN (Page 22) (Full) 
August 5, 2009 
 
Takashi Ono, Katsumi Sekiguchi, Chiaki Ueda (Utsunomiya Bureau) 
 
Tomorrow is the anniversary of the atomic bombing of Hiroshima. This 
year, former vice foreign ministers and other officials have 
testified about a "secret nuclear agreement" between Japan and the 
United States. Internationally, U.S. President Barack Obama 
delivered a major speech in Prague in April, while North Korea 
conducted its second nuclear test in May. There is great interest in 
the nuclear issue today. However, neither this "secret nuclear 
agreement" nor the future of the denuclearization policy has been 
made an issue in the general election. Why is the nuclear issue, 
which is central to security and foreign policy, not being debated 
in the election? The current election campaign is taking place 
during August, the month of the atomic bombings. Following are our 
thoughts. 
 
Former Vice Foreign Minister Ryohei Murata testified in June that 
there was a secret nuclear agreement. However, the government 
continues to deny this. 
 
Chief Cabinet Secretary Takeo Kawamura stated on June 29 that "the 
sort of secret agreement you (Murata) referred to does not exist." 
Also, Foreign Minister Hirofumi Nakasone told the House of 
Representatives Foreign Affairs Committee on July 1: "The 
introduction of nuclear arms is subject to prior consultation. There 
had not been (any request for consultation)." 
 
Committee Chairman Taro Kono, a member of the ruling Liberal 
Democratic Party (LDP), had indicated that the committee would seek 
the revision of the statement, but the Lower House was dissolved. 
Democratic Party of Japan (DPJ) Secretary General Katsuya Okada said 
at a news conference that if the DPJ takes over the administration 
after the general election, the secret agreement will in principle 
be made public. 
 
However, even the DPJ has not included in its manifesto (campaign 
pledges) investigation into the secret agreement. The document only 
includes such vague passages as "building a close and equal 
Japan-U.S. alliance relationship." The Hatoyama leadership had 
talked about including in the manifesto that Japan demand from the 
nuclear powers a no-first-use pledge, but this has not 
materialized. 
 
On the other hand, the LDP is confirming the status quo. It 
emphasizes that "steady efforts to enhance the credibility of the 
Japan-U.S. security arrangements are indispensable." Not only is 
there no pledge to investigate the issue of the secret agreement, 
but there is not even any mention of the elimination of nuclear 
weapons, which is now a worldwide trend. 
 
Once again, what does the "secret nuclear agreement" signify? 
 
Aichi University Professor Ichiro Kawabe, an expert on this issue, 
claims "this is a question of deceiving the people and a betrayal of 
democracy." 
 
"The U.S. started the Iraq war because Iraq possessed weapons of 
mass destruction," says Kawabe. "However, this reasoning became 
untenable, and so the Republican administration was toppled. 
 
TOKYO 00001799  004 OF 015 
 
 
Diplomatic lies can undo an administration. Yet, Japan has sustained 
its lie over the years, distorting the people's judgment." 
 
There is the opinion that the government is denying the existence of 
the secret agreement because it is a "necessary evil" to sustain the 
Japan-U.S. alliance. "The reasoning that lies are indispensable for 
protecting the country has something in common with colonialism," 
says Kawabe. 
 
Actually, the view that Japan as the only atomic-bombed nation has 
played a leading role in the campaign to eliminate nuclear arms is 
also doubtful. 
 
According to former National Defense Academy Professor Ukeru 
Magosaki, who once served as the chief of the Intelligence and 
Analysis Bureau of the Ministry of Foreign Affairs, "Japan has 
endeavored to prevent proliferation of nuclear arms to non-nuclear 
powers, but has not worked for the disarmament of nuclear powers, 
since the country with the largest number of nuclear weapons is the 
U.S." 
 
Although the DPJ's Okada has said the secret agreement will be made 
public, some believe that the documents on the Japanese side have 
been destroyed. 
 
Kawabe questions the DPJ's sincerity. "Behind the spate of testimony 
can be glimpsed the intent to show that Japan must deploy nuclear 
arms to counter North Korea's," says the professor. "In light of 
such a motive, how seriously can they pursue this issue?" 
 
(4) Secret pact diplomacy (Part 3): Interview with George Packard, 
former special assistant to U.S. ambassador to Japan -- Japan must 
admit the existence of secret pact and discuss critical matters 
 
NIKKEI (Page 2) (Abridged slightly) 
August 6, 2009 
 
What do experts think of a series of questions associated with a 
secret agreement (between Japan and the United States), including 
the question of introduction of nuclear weapons into Japan? 
 
U.S. did not allow disclosure of the secret pact 
 
-- The U.S.-Japan Security Treaty was revised in 1960. From 1963, 
you served as special assistant to U.S. Ambassador to Japan Edwin O. 
Reischauer. 
 
Packard: "When a question was raised at the Diet about whether or 
not to allow U.S. warships carrying nuclear weapons to call at 
Japanese ports, the Japanese government said that it would not allow 
it. Concerned that the treaty would not be observed if that 
situation continued, Ambassador Reischauer thought the secret 
agreement should be disclosed. But Washington did not agree. 
Eventually, the Ambassador secretly invited Foreign Minister 
Masayoshi Ohira to a breakfast meeting and briefed him, producing 
the documents on the secret pact. Ohira gave a nod and said that he 
would handle the matter properly." 
 
-- In 1981, Reischauer testified on the existence of the secret 
pact. 
 
Packard: "In the car on the way to the press conference, he said, 
 
TOKYO 00001799  005 OF 015 
 
 
'Japanese people are wise, so they will understand why this secret 
agreement was necessary.' He was greatly shocked to know that his 
testimony caused such a huge sensation in Japan." 
 
-- Why did he testify on it? 
 
Packard: He used to say that the secret pact was a time bomb. He 
must have thought that its early disclosure could minimize the 
damage. After all, he was a historian. Historians believe that the 
facts will come out sooner or later. The action resulted from the 
pure feeling of a scholar who disliked the idea of being called a 
liar later on." 
 
Three principles not violated 
 
-- The Japanese government came up with the three non-nuclear 
principles (of not possessing, producing, or permitting the 
introduction of nuclear weapons into Japan), and that made it even 
more difficult to disclose the secret deal. 
 
Packard: Reischauer did not think the secret pact (exempting port 
calls in Japan by nuclear-armed U.S. vessels from prior 
consultations) contravened the three non-nuclear principles, because 
they would not bring nuclear weapons ashore. In April 1966, an 
assault ship (carrying nuclear weapons that might be brought ashore) 
repeatedly anchored near the Iwakuni base, and he was furious when 
he knew about it. He had been kept in the dark for years about that 
fact." 
 
"He immediately called in senior U.S. Forces Japan officers and 
confirmed it, sent a telegram to Secretary of State Dean Rusk saying 
that he would resign as ambassador unless the matter was resolved 
within 90 days and that would publicly condemn it as a violation of 
the security treaty. Although he was scheduled to resign from the 
post in August that year, he told his family that he might do so 
earlier than scheduled. He was a truly honest man." 
 
-- If the Japanese government discloses the secret pact, what will 
happen? 
 
Packard: Nothing will happen. I, too, believe in the Japanese 
voters. What the government must do now is to admit the existence of 
the secret pact. It is necessary to move forward by overcoming the 
secret pact and to discuss real issues, such as the North Korean 
situation, within the country and with the United States." 
 
(5) Examination of manifestos on relations with U.S.: LDP says 
alliance is cornerstone of foreign policy; DPJ eyes equal 
relationship 
 
YOMIURI (Page 3) (Full) 
August 6, 2009 
 
Satoshi Ogawa, Washington Bureau; Toshimitsu Miyai, political 
reporter 
 
In terms of relations with the United States, while the Liberal 
Democratic Party (LDP) manifesto (campaign pledges) terms this "the 
cornerstone of Japan's foreign policy," the Democratic Party of 
Japan (DPJ) calls for an "equal" relationship. The U.S. believes 
that if the LDP administration continues, close bilateral relations 
can be maintained, but if there is a change of government, 
 
TOKYO 00001799  006 OF 015 
 
 
qualitative change may take place in the alliance relationship. It 
is closely watching the outcome of the election. 
 
The LDP designates the Japan-U.S. alliance as the "cornerstone" of 
foreign policy. It is continuing with Japan's consistent posture in 
the postwar period of cooperating with the U.S. in dealing with 
foreign policy and security issues. It is also the LDP's thinking 
that the reinforcement of the bilateral relationship from now on 
will contribute even more to peace and stability in Japan, in Asia 
and the Pacific, and in the world as a whole. 
 
Specifically, the manifesto talks about "cooperation in 
counterterrorism" and "promotion of missile defense." It also 
pledges to "steadily implement" the U.S. Forces Japan (USFJ) 
realignment plans, for which the Japanese government will be doling 
out one trillion and several hundred billion yen. The LDP also 
promises to "reduce the burden" of Okinawa and other localities 
hosting U.S. bases. 
 
Furthermore, the LDP says it will "take the necessary security 
measures" for the "interception of missiles targeting the U.S." and 
the "protection of U.S. ships engaged in joint missile defense 
operations." While the wording has remained vague, this points to 
the party's intention to work toward revising the constitutional 
interpretation of the right of collective self-defense, which has 
been a pending issue for many years. 
 
The DPJ says it will build an "equal" Japan-U.S. alliance, 
underscoring its difference with the LDP. 
 
The manifesto says it will "suggest the revision" of SOFA, which 
includes provisions on the transfer of custody of USFJ personnel 
suspected of crimes, for instance, that allegedly disadvantage 
Japan. It also goes as far as proposing to deal with USFJ 
realignment and U.S. military bases "in the direction of a review." 
If SOFA is revised, this will be the first revision since it was 
signed in 1960. 
 
With regard to building an equal relationship, the DPJ proposes to 
"fulfill Japan's responsibility positively while engaging in a 
division of labor with the U.S." However, it makes no mention of 
high priority issues for the U.S., such as reconstruction aid for 
Afghanistan or the specifics of the "review" of USFJ realignment 
plans. As for the Maritime Self-Defense Force's refueling mission in 
the Indian Ocean, President Yukio Hatoyama has declared that the 
mission "will not be extended" after its authorization expires next 
January. 
 
The advocacy of an "East Asian community" is noteworthy in the DPJ 
manifesto. This can be interpreted as an indication of the party's 
intent to review Japan's foreign policy until now that centered on 
the Japan-U.S. alliance, and shift to Asian-centered diplomacy. 
 
(6) U.S. administration, Congress scrutinizing DPJ's "pragmatic 
line"; "Feeling of security" if LDP administration continues 
 
YOMIURI (Page 3) (Full) 
August 6, 2009 
 
After the DPJ published its manifesto, the U.S. Congress staff in 
charge of Asian diplomacy analyzed the document with Department of 
State officials. They noticed that the wording on the Japan-U.S. 
 
TOKYO 00001799  007 OF 015 
 
 
Status of Forces Agreement (SOFA) and the review of U.S. military 
bases has been toned down from the party's previous position, and 
everyone welcomed the DPJ's "pragmatism." 
 
The Obama administration had also taken moves to prod the DPJ's 
shift to a pragmatic line. When Under Secretary of Defense Michele 
Flournoy met DPJ Secretary General Katsuya Okada in Tokyo on June 
25, she expressed grave concern, going as far as saying that if the 
Japanese side demands changes in the U.S. Forces Japan (USFJ) 
realignment plans, "there will be no way to resolve the Okinawa 
issue." 
 
A former senior U.S. official who is an expert on Japan had worried 
that if in the DPJ's effort to build an "equal Japan-U.S. 
relationship," it demands a substantial cut in host nation support, 
or Japan's share in the stationing of U.S. forces, "the Obama 
administration's attitude toward Japan might turn cold." He was 
relieved by the reasonable foreign policies listed toward the end of 
the manifesto. 
 
However, Robin Sakoda, head of the Japan desk at the Department of 
Defense under the Clinton administration, remains skeptical. He 
says: "The DPJ manifesto is vague on concrete policies. There are 
passages where they merely changed the tone. We need to continue to 
watch closely." 
 
Many officials involved with diplomacy with Japan are taking a 
wait-and-see attitude because it is difficult to get a clear picture 
before the administration is actually inaugurated. 
 
In contrast to the alarm and attention given to the DPJ manifesto in 
the U.S., there is not much interest in the LDP manifesto. There is 
a feeling of security that if the LDP administration continues, the 
status quo of the alliance will be maintained because "the LDP 
supports the Japan-U.S. alliance more strongly." 
(Ambassador-designate John Roos) 
 
As a matter of fact, when the government and the LDP revised the 
special agreement on host nation support in 2008, spending cutbacks 
were mostly made on the wages of Japanese employees working on U.S. 
bases, in order not to cause a major increase in the U.S. share in 
USFJ expenditures. With regard to Japan's share in the cost of 
relocating 8,000 marines in Okinawa to Guam, the government has made 
a clear commitment to continue to shoulder the cost in the future in 
the agreement signed between the two countries last February. 
 
However, with the increasing importance of China and the Middle East 
in U.S. foreign policy, interest in "maintaining the alliance" is 
diminishing. There are also signs of the decline of the Japan-U.S. 
relationship. 
 
Kent Calder, former special assistant to the U.S. ambassador to 
Japan, warns that: "The economic and social links supporting the 
Japan-U.S. alliance are weakening. The alliance will not survive 
with the mere continuation of past policies, such as providing U.S. 
military bases and host nation support. There is a need to build a 
new relationship." 
 
(7) Enola Gay crewmember Jeppson says radiation damage was beyond 
government's projection, describes President Obama's moral 
responsibility statement as "naove and wrong" 
 
 
TOKYO 00001799  008 OF 015 
 
 
MAINICHI (Top play) (Abridged slightly) 
August 3, 2009 
 
Takayasu Ogura, Las Vegas 
 
Morris Jeppson, 87, who served as assistant weaponeer on the Enola 
Gay, the B-29 bomber which dropped the first atomic bomb on 
Hiroshima on Aug. 6, 1945, gave an interview to the Mainichi Shimbun 
at his home in Las Vegas on Aug. 2. The Enola Gay's crew that day 
consisted of 12 men. About the fact that some people are still 
suffering from atomic bomb-related illnesses today, 64 years after 
the bombing, Jeppson said: "I never thought that radiation would 
cause that much damage." Jeppson also criticized President Barack 
Obama's reference to "moral responsibility" associated with the use 
of atomic bombs as "wrong." He again tried to justify the use of the 
weapon, saying, "It was necessary to put an early end to the war." 
 
Of the 12 Enola Gay crewmembers, only two, including Jeppson, are 
surviving. This is the first time that a crewmember has officially 
criticized President Obama's statement. 
 
As members of a special mission, the group, including Jeppson, lived 
on the Pacific island of Tinian separately from other regular U.S. 
soldiers from June 1945. Looking back on those days, Jeppson said: 
"Because I had studied physics, I knew that the explosive was an 
atomic bomb. But most of the crewmembers, excluding the pilot (Paul 
Tibbets), thought that it was a super-powerful bomb." 
 
According to Jeppson, the moment the aircraft dropped the five-ton 
bomb, the fuselage jumped upwards, a flash of light penetrated the 
aircraft windows about 43 seconds later, and the aircraft shook as a 
result of the massive blast. Tremors occurred again a moment later, 
and the pilot made an announcement that what had just been dropped 
was an atomic bomb. 
 
Jeppson said: "We saw the (mushroom) clouds and flames billowing 
into the sky through the windows. That meant a lot of lives and a 
lot of things were being destroyed. And we were not happy to see 
them." 
 
About the radiation-induced damage that still exists today, Jeppson 
said: "Chances are that even the Los Alamos National Laboratory that 
produced the atomic bombs was not aware that the damage would be 
this severe. U.S. physicists were surprised as well. I don't think 
even President Truman was aware of it." 
 
Back then, the U.S. military operation to land on mainland Japan was 
approaching. Jeppson explained: "It was clear that if U.S. troops 
landed on mainland Japan, not only U.S. soldiers but also many 
Japanese soldiers and civilians would lose their lives. Dropping the 
bomb was the only option to end the war quickly and avoid massive 
casualties." 
 
Jeppson also criticized President Obama's Prague speech in April in 
which the President touched on (the United States') moral 
responsibility as the only nuclear power to have used a nuclear 
weapon and declared the goal of a nuclear-free world. Jeppson said: 
"His statement regards the use of the atomic weapon by the United 
States as a sinful act; such as statement is too naove. He is 
waiting for our generation to die out." He also said that if the 
President visits a bombed area in the future, he will "feel very 
bad." 
 
TOKYO 00001799  009 OF 015 
 
 
 
(8) PM Aso implements few effective policies to deal with North 
Korea 
 
ASAHI (Page 4) (Full) 
August 6, 2009 
 
Kenichi Goromaru 
 
Prime Minister Taro Aso strongly criticized North Korea's abduction 
of Japanese nationals in a stump speech in Yonego City, Tottori 
Prefecture, on August 5. He said: "There are people who were 
abducted by North Korea right here in Yonego. This is a crime of the 
state since the head of the state himself admitted that 'our people 
did it.' It is absurd not to protest firmly." 
 
Aso is taking a tough stance on North Korea in the general election 
with the conservative voters in mind. The manifesto (campaign 
pledges) of the Liberal Democratic Party (LDP) also calls for 
"taking security measures" to enable the interception of ballistic 
missiles targeting the U.S. and the protection of U.S. ships by the 
Self-Defense Forces (SDF) in response to North Korea's threat. 
 
However, during the period of over 10 months that the prime minister 
is in office, there has been no progress at all on the abduction, 
nuclear, and missile issues. On the contrary, North Korea has fired 
a missile over Japan in April, conducted its second nuclear test in 
May, and threatened to withdraw from the Six-Party Talks. While 
Japan led the debate in the UN Security Council (UNSC) and succeeded 
in having a sanction resolution passed, it has not been able to come 
up with any effective measures to stop North Korea's reckless 
behavior. 
 
Former U.S. President Bill Clinton visited North Korea on August 4 
and met General Secretary Kim Jong Il, causing concerns in the 
Japanese government that the U.S. and North Korea may go ahead with 
bilateral talks. 
 
Soon after he took office, Aso made efforts to strengthen relations 
with China and the Republic of Korea (ROK) for the purpose of 
cooperating on North Korea policy and in responding to the economic 
crisis. He has held talks frequently with the leaders of these two 
countries, whose relations with Japan began to improve during the 
Abe administration. The prime minister also succeeded in holding the 
first Japan-China-ROK summit in Fukuoka last December. The UNSC 
resolution on North Korea's missile launch was a result of his 
persuasion of PRC Premier Wen Jiabao in cooperation with ROK 
President Lee Myung Bak. 
 
In his foreign policy speech in June, the prime minister declared 
proudly that, "We have the closest relations with the leaders of 
these two countries in the postwar period." However, he has not been 
able to make North Korea return to the Six-Party Talks or other 
venues of dialogue. Sensitive issues with China, such as the 
poisoned gyoza dumplings incident and the gas fields in East China 
Sea, as well as the Takeshima dispute with the ROK, have simply been 
shelved. 
 
Aso has also been unsuccessful in building strong relations with the 
leaders of the United States and Russia. He was invited to the White 
House as the first foreign leader invited by President Barack Obama 
in February, but the motivation to build serious relations with a 
 
TOKYO 00001799  010 OF 015 
 
 
prime minister with weak domestic political backing was lacking on 
the U.S. side. 
 
In February, Aso also became the first Japanese prime minister to 
visit Sakhalin in Russia after World War II, where he met President 
Dmitriy Medvedev. The two leaders agreed to work toward a solution 
to the Northern Territories issue through a "new unique and 
innovative approach." However, Aso stated in the Diet in May that 
the Northern Territories are currently under "illegal occupation by 
Russia." This gave rise to objections from the Russian side, thus 
spoiling the opportunity to make progress on this issue. His 
appointment of Shotaro Yachi, who was administrative vice foreign 
minister when he was foreign minister, as government representative 
also came to nothing because the media reported that Yachi advocated 
the return of "3.5 islands" out of the four Northern Islands. 
 
The impact of the G-8 Summit in July, which Aso had hoped would buoy 
the administration, was also canceled out by the confusion over the 
appointment of LDP executives shortly before the summit. This Summit 
was far from being a big moment for Aso. 
 
The dispatch of the SDF to waters off Somalia for the anti-piracy 
mission is one policy that was implemented as a result of Aso's 
advocacy. Escort ships were first sent in March for maritime 
security operations based on the existing SDF Law. There was 
criticism then that this was an "arbitrary stretching of the 
definition" of maritime security operations, which are supposed to 
be limited to sea areas near Japan. In June, the anti-piracy law was 
enacted, thus establishing the legal basis for anti-piracy 
missions. 
 
(9) DPJ revises one pledge after another in manifesto for Lower 
House election 
 
NIKKEI (Page 3) (Full) 
August 6, 2009 
 
The Democratic Party of Japan (DPJ) has rewritten campaign pledges 
inserted in its policy platform (manifesto) for the Aug. 30 House of 
Representatives election, such as a Japan-U.S. free trade agreement 
(FTA) and decentralization. This move reflects strong objections 
from agricultural groups and local governments. The main opposition 
party is being pressed to make corrections apparently to conform to 
reality. 
 
After visiting the Central Union of Agricultural Cooperatives 
yesterday, DPJ agriculture, forestry and fisheries taskforce deputy 
head Tatsuo Hirano gave a press conference at the Agriculture, 
Forestry and Fisheries Ministry, in which he revealed that the party 
would rewrite the descriptions regarding its proposal for a 
Japan-U.S. FTA. He said: "(The correction) is attributed in part to 
a lack of explanation. It is not true to say that our policy is 
inconsistent, but the main cause is that we used an expression that 
was liable to cause misunderstanding." Hirano also said when he 
visited the central union that the party would not lower tariffs on 
such mainstay products as rice. 
 
The DPJ included the Japan-U.S. FTA pledge in the diplomatic area in 
its manifesto. This proposal is to step deeper into trade 
liberalization than the policy taken so far by the government and 
ruling camp. Union executives and others issued statements opposing 
the DPJ proposal, as one executive complained: "An FTA with the U.S. 
 
TOKYO 00001799  011 OF 015 
 
 
will inevitably deal a destructive blow to Japanese agriculture." 
 
Income indemnity to farming households and Japan-U.S. FTA as a set 
 
The DPJ put forth the idea of promoting FTA negotiations and a 
measure to introduce an income indemnity for individual farming 
households and fishermen as a package policy. The party intended to 
establish the income indemnity system as measures to intended to 
have farmers and fishermen survive even if trade is liberalized 
further. But President Yukio Hatoyama said in a press conference on 
Aug. 4: "It would be desirable (for the FTA proposal) to be accepted 
if income indemnity is approved as a system, but doing so might be 
difficult under the current agricultural situation." 
 
Prime Minister Taro Aso emphasized in his campaign speech in Yonago 
City, Tottori Prefecture yesterday: "Agriculture is the basis of our 
nation. It is wrong to consider that low-priced food is welcome." As 
it stands, the ruling parties have begun to criticize the DPJ's 
Japan-U.S. FTA proposal. The main opposition party's decision to 
alter its FTA policy apparently reflected its fear of losing 
agricultural groups' votes. 
 
Regarding decentralization, the DPJ intends to add a measure to 
establish a body for consultations between the central and local 
governments in response to strong calls from the National Governors' 
Association and other groups. Osaka Governor expressed his 
dissatisfaction at the lack of reference to the decentralization 
challenge in the DPJ manifesto, claiming: "I wonder if the DPJ is 
aiming to bring about regional sovereignty in a serious manner." The 
party's about-face is also reflecting its desire to obtain support 
from influential regional heads. 
 
In an interview with press companies on July 31, Hatoyama indicated 
that he would urgently add the pledge of legislating for a 
consultative panel in its manifesto, saying: "I deem it as a proper 
request." Deputy President Ichiro Ozawa met with Hashimoto in Osaka 
on Aug. 4, and they shared the need for the legislation. 
 
In reference to the fact that the DPJ manifesto stops short of 
mentioning this challenge, there were scenes in which senior party 
members were hard-pressed to give a supplementary explanation. Asked 
about the party's policy regarding the Self-Defense Force's (SDF) 
refueling mission in the Indian Ocean, which is to expire in 
January, Hatoyama replied: "The mission will not be extended." 
Although the DPJ manifesto sealed off a consumption tax hike, 
Hatoyama has also implied its willingness to tolerate discussion on 
the issue. 
 
Revised version to be issued just before official announcement 
 
The DPJ has decided to announce a revised-version manifesto just 
before the election is officially announced on Aug. 18. Given that 
political parties are not allowed to distribute policy platforms 
prior to the official announcement under the Public Offices Election 
Law, senior members have explained that the announced manifesto is 
not official. The ruling camp has criticized repeated revisions of 
the DPJ manifesto, but the DPJ intends to refute the criticism: "The 
LDP has set forth goals to be attained in the next ten years, so 
there is no need to rewrite them." 
 
Remarks over corrections or additions in DPJ manifesto 
 
 
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Present contents Explanation 
Correction: Japan-U.S. FTA 
Promote the liberalization of trade and investment by concluding an 
FTA with the U.S. "Doing so is not easy under the current 
situation." (Hatoyama) 
"There were some parts that tended to cause misunderstanding." 
(Deputy President Naoto Kan) 
Addition: Decentralization 
No reference to a consultative body involving the central and local 
governments. "Calls for an consultative body are a proper request" 
(Hatoyama) 
Case of a supplementary explanation 
Numerical target for economic growth 
No description "It is possible to attain a 2% goal if we do our 
best." (Secretary General Katsuya Okada. 
"We will set a goal of 2% economic growth in the future." (Policy 
Research Council Chairman Masayuki Naoshima). 
Consumption tax 
Maintain the current rate of 5% and put the full amount of 
consumption tax revenues into the state coffers. "Our assertions 
were mistakenly interpreted as banning any kinds of discussion on 
the consumption tax. We correct it." (Hatoyama) 
Refueling mission in the Indian Ocean 
No description "Our stance is not to extend the mission in 
principle." (Hatoyama) 
 
(10) Agricultural cooperatives, medical associations abandoning LDP 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
August 6, 2009 
 
Takao Kanasugi 
 
With the climax of the House of Representatives election -- which is 
meant for the voters to choose an administration -- approaching, 
Liberal Democratic Party (LDP) vote-gathering machines in the 
regions are rethinking their one-sided support for this party. 
Following the example of the Ibaraki Prefecture medical association, 
the agricultural cooperatives and the medical associations in Aomori 
Prefecture, a conservative stronghold, have decided not to endorse 
the LDP candidate. While Prime Minister Taro Aso is personally 
taking the lead in calling on the industrial organizations and doing 
everything to stop the outflow of support, it appears that 
discontent accumulated over the years since the Koizumi 
administration has surfaced all at once. 
 
The federation of farmers for agricultural administration in Aomori, 
the political arm of the agricultural cooperatives, decided on free 
voting for all four districts in the prefecture on July 10. This is 
the first time the federation is not endorsing a LDP candidate since 
the introduction of single-seat constituencies in 1996, but there 
was no objection to this decision. 
 
While this group has cooperated with the LDP's rice acreage 
reduction policy over the years, rice prices have continued to sink 
due to the decline in demand and other factors, despite the 
government's publicity on its "guarantee of income on par with 
salaried workers." The farmers have also not benefited much from 
crop diversification. Farmers in Aomori are discontented. 
 
The medical association of Aomori City has decided to back the 
Democratic Party of Japan (DPJ) candidate in the first district of 
 
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the Lower House. Yuji Tsushima, who has just announced his 
retirement shortly before the dissolution of the Lower House, is a 
political heavyweight specializing in health issues elected from 
this district. However, a first-ever internal survey conducted last 
fall showed that 40 percent of members supported the DPJ, exceeding 
the 30 percent support for the LDP. The Hirosaki City medical 
association in this prefecture has also reconsidered its support for 
the LDP and is now endorsing both the LDP and DPJ candidates. 
Hachinohe City medical association is moving toward endorsing both 
candidates as well. 
 
The Aomori Prefecture construction industry association, the LDP's 
last hope, will continue to support the LDP in this election. 
However, the cutback in public work projects has reduced the 
membership sharply from 300 companies at its peak to just 180 at 
present. Its organizational ability is no longer as powerful. 
 
Not only in Ibaraki or Aomori, medical associations in Tochigi and 
Aichi are going to allow free voting of their members or are 
endorsing both LDP and DPJ candidates. 
 
The agricultural cooperative in Mie has also decided on free voting, 
while the policy for Ishikawa and Shizuoka varies depending on the 
constituency. In some districts, both the LDP and DPJ candidates are 
endorsed. 
 
The Japan Medical Association (JMA) issued an official statement on 
August 5 commending the LDP manifesto on such points as the increase 
in medical remuneration from next year and its indication of a 
direction for radical tax reforms, including the consumption tax. 
However, JMA is demanding full consideration for smaller hospitals 
and clinics in the regions, because the distribution of revenues 
"seems to favor big hospitals." 
 
On the other hand, the DPJ's proposal to abolish the medical 
insurance system for senior citizens 75 years old or above was 
criticized by JMA managing director Toshio Nakagawa at a news 
conference on August 5: "Patients 75 years old or above will not be 
able to receive medical treatment," demanding a review of this 
policy. 
 
(11) DPJ aims at securing fiscal resources by reducing extra budget 
 
YOMIURI (Page 9) (Slightly abridged) 
August 6, 2009 
 
The Democratic Party of Japan (DPJ) has decided to reduce the 
supplementary budget for fiscal 2009 by about 4 trillion yen if it 
assumes power. The aim is to rebut the criticism from the ruling 
camp and others of its lack of specifics on where the necessary 
revenues will come from to finance its pledges. Even so, optimism 
may not be warranted as the job market remains gloomy and due to 
other negative economic conditions. The question of whether the 
support of the economy with an extra budget is still necessary is 
also likely to be a major campaign theme in policy debate for the 
next House of Representatives election. 
 
The fiscal 2009 extra budget, which was compiled with the aim of 
overcomig the economic crisis, includes a record-breaking general 
account worth approximately 13.9 trillion yen. The DPJ has called 
wasteful the 46 funds set up in public corporations and prefectural 
governments (worth about 4.4 trillion yen) with the national budget 
 
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as their resources. The party has criticized the funds designed to 
offer loans to those under vocational training or to promote the 
integration of farmland as less effective in terms of policy. The 
DPJ is willing to freeze unnecessary funds. 
 
The party also expects to look into such plans as constructing a 
comprehensive center for media and art (by spending 11.7 billion 
yen) -- criticized by DPJ President Yukio Hatoyama as a cartoon 
(anime) hall -- as well as introducing eco-friendly cars and 
energy-saving electrical appliances for central governments and 
building government agencies' facilities (by disbursing about 2.9 
trillion yen). The DPJ hopes to secure the fiscal resources for its 
measures, including a monthly child-rearing allowance of 13,000 yen, 
in fiscal 2010, by freezing expenditures set aside for certain 
measures in the extra budget. 
 
There is concern, however, that if the effect of the supplementary 
budget on the economy is undermined, the economy may be adversely 
affected. The Japanese economy has yet to be on a sustainable 
recovery path. Some observers anticipate that the economy might sink 
into a deep recession. 
 
The proposed review of construction costs for government agencies' 
facilities will lead to a reduction in public works projects. 
According to an estimate by a Nomura Securities Research Institute 
analyst, if the public works projects planned for the 
October-December period in the government's additional economic 
stimulus package are canceled in fiscal 2009, the nation's gross 
domestic product (GDP) for that fiscal year will be curtailed by 
0.3%. 
 
(12) Japan's image post economic-superpower status 
 
SANKEI (Page 1) (Full) 
July 31, 2009 
 
Yukio Okamoto, commentator on foreign affairs 
 
A few days ago, a friend's daughter visited Japan for the first 
time. Her name is Margaret. After reaching Tokyo, Margaret took the 
subway alone. In the subway car she became ill and squatted on the 
floor. A worried male passenger asked her in English for my 
telephone number and called me. After a while, I received another 
phone call, from a woman who had been sitting next to Margaret in 
the subway train. I sent for assistance. Then I asked myself whether 
there is any other country where people are so kind to others. 
 
Take, for example, America. The people there are very hospitable. 
But America is not as safe as Japan. So Americans are wary of 
strangers and don't exhibit their innate goodness. Europe was a 
class society, so the spirit of helping one there is not strong. In 
Asia, it is not uncommon to see someone lying on the street so 
people do not always rush to their aid. 
 
In terms of GDP, Japan currently ranks second in the world. But 
Japan will likely fall behind China this year, and Japan's economic 
indicators will continue to show a relative decline in the years to 
come. Before long, Japan will probably rank third, behind China and 
India, in Asia, and become a second-tier country like Brazil or 
Australia (although Brazil will likely become a global power in 30 
years.) 
 
 
TOKYO 00001799  015 OF 015 
 
 
Ever since Japan became in 1968 the world's second largest economy 
it has regarded itself as an economic powerhouse. Many said the 21st 
century would be Japan's century. In the late 1980s, Japan was even 
arrogant, saying it could buy America four times or the Imperial 
Palace was worth as much as Canada. 
 
However, it is fundamentally unreasonable to use GDP for 
international comparisons.  The exchange rate, which converts the 
GDP to dollars, determines the trade terms for a handful of 
excellent Japanese export businesses. The dollar-based value of 
Japan's total assets is not accurate. It is like using only the 
prices of roadside pieces of property in good locations to calculate 
the market value of a vast tract including forest and even 
wasteland. 
 
Moreover, Japan's economy is in bad shape. The total amount of 
Japan's national and local debts exceeds 200% of its GDP, more than 
twice Italy's abysmal figure. The Japanese government is verging on 
incompetence. 
 
The age when Japan boasted of its economic power is past. Then what 
sort of image will Japan aim to project to the international 
community? 
 
I would like to suggest Japan will aim to become a country that 
carries weight in global politics and security. 
 
Britain ranks sixth in terms of nominal GDP. Even so Britain has a 
great influence on world politics. Admitting that Japan cannot be 
expected to acquire political clout on the scale of Britain's, I 
hope that Japan will at least establish a political presence like 
Canada's. However, Japan is risk adverse. Its primary consideration 
is the safety of its people. It cannot make political decisions. As 
such, Japan's political clout cannot but be limited. 
 
What remains are Japan's cultural and human assets -- hospitality, 
the spirit of cooperation or helping one another, safety, cleanness, 
diligence, honesty, teamwork, patience, preciseness, carefulness, 
punctuality, craftsmanship, tenacity, persistency, and high 
standards. The synergy of these assets creates Japan's society and 
culture and its unique warm-heartedness. I have traveled around the 
world for years. However, these characteristics of Japan and its 
people are unique in the world. For example, Japanese aid workers 
sent to developing countries by the Japan International Cooperation 
Agency and other organizations are well spoken of among local 
people. In this area, Japan outclasses other countries. Japan should 
not lose heart just because China surpasses it economically. It is 
about time for Japan to remake its global image based on its 
people's sensitive spiritual nature. 
 
ZUMWALT