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UNCLAS SECTION 01 OF 11 TOKYO 001910 
 
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 08/19/09 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Election surveys: 
4) Asahi survey finds that reform spirit of 2005 election has 
disappeared in the campaigns for 2009, with both LDP and DPJ 
returning to fiscal spending pattern (Asahi) 
5) Tokyo Shimbun questionnaire finds more than half the voters 
support the DPJ policies on jobs, pensions, and the economy (Tokyo 
Shimbun) 
6) Survey shows DPJ tends to attract voters over thirty years old, 
while LDP attract those in 20s who favor the underdog (Tokyo 
Shimbun) 
 
Election campaign begins: 
7) Prime Minister Aso focusing speeches on theme of protecting Japan 
as a total of 1,374 candidates hit the streets campaigning in Lower 
House election (Yomiuri) 
8) Increase of 986,000 register to vote in upcoming election (Asahi) 
  6 
9) Interview with Prime Minister Aso: Will stay on if party wins a 
majority (Asahi) 
10) Liberal Democratic Party (LDP) candidates tend to be hereditary; 
Democratic Party of Japan (DPJ) candidates are young and include 
many women (Sankei) 
11) Bureaucrats have less resistance to running in Aug. 30 election 
on DPJ ticket (Mainichi) 
12) Average age of Lower House candidates is 50.7 years (Mainichi) 
 
13) Naoki Tanaka running as a DPJ candidate (Mainichi) 
14) DPJ candidate list strongly reflects Ichiro Ozawa's imprint 
(Yomiuri) 
15) Hatoyama agreeable to have other opposition party members in his 
cabinet (Yomiuri) 
16) 70% of voters see the economy as the main campaign issue 
(Yomiuri) 
 
17)WTO panel accepts Japan's assertion about unfairness of U.S. 
antidumping measure (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Campaigning for Lower House election kicks off, with focus on fiscal 
resources, steps to implement policies 
 
Mainichi: 
DPJ candidates outnumbers LDP's in Lower House election for first 
time 
 
Yomiuri & Sankei: 
1,374 file candidacy for the Lower House election 
 
Nikkei: 
Toyota Motor to procure batteries for hybrid cars from Sanyo 
Electric 
 
 
TOKYO 00001910  002 OF 011 
 
 
Tokyo Shimbun: 
Ex-Korean leader Kim Dae Jung dies 
 
Akahata: 
Let us open up future of Japan under JCP 
 
2) EDITORIALS 
 
Asahi: 
(1) 2009 general election: Put plan for national memorial facility 
into practice 
(2) Death of Kim Dae Jung: Japan, South Korea urged to open up new 
era 
 
Mainichi: 
(1) Kim Dae Jung contributed to giving shape to South Korea in 
turbulent age 
(2)  Irregular employment: Pursue agreement, rather than conflict 
 
Yomiuri: 
(1) Start of official campaigning: Let us examine plans for new 
administration, policies 
 
Nikkei: 
(1) Uncertainty still looming over Japanese economy, although worst 
period is over 
(2) We mourn for Kim Dae Jung, who changed South Korea 
 
Sankei: 
(1) Japan may go with goal of 25% cut in greenhouse gas emissions 
(2) Death from new flu: Take measures to protect those with existing 
conditions 
 
Tokyo Shimbun: 
(1) We want to hear impressive words in Lower House election 
campaigning 
(2) Death of Kim Dae Jung: Merits and demerits of Sunshine Policy 
offset each other 
 
Akahata: 
(1) We must consider politics after LDP-New Komeito government is 
ousted 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 18 
 
NIKKEI (Page 2) (Full) 
August 19, 2009 
 
08:04 
Took a walk on the grounds of his official residence. 
 
11:12 
Delivered a stump speech at the north exit of JR Hachioji Station. 
 
12:47 
Delivered a stump speech at the east exit of Higashi-murayama 
Station on the Seibu-Shinjuku Line. 
 
13:15 
Dined with Upper House member Masaharu Nakagawa at a sushi 
 
TOKYO 00001910  003 OF 011 
 
 
restaurant in Higashi-murayama. 
 
15:18 
Delivered a stump speech at the east exit of JR Akabane Station. 
 
16:31 
Delivered a stump speech at the north exit of Nerima Station on the 
Seibu-Ikebukuro Line. 
 
17:41 
Returned to his official residence. 
 
19:22 
Appeared on an NHK program at LDP headquarters. 
 
20:11 
Returned to his official residential quarters. 
 
ELECTION SURVEYS 
 
4) Poll: LDP, DPJ opt for more public spending 
 
ASAHI (Page 1) (Abridged) 
August 19, 2009 
 
The Asahi Shimbun and University of Tokyo Professor Masaki 
Taniguchi's office conducted a joint survey to probe the awareness 
of candidates running in the general election for the House of 
Representatives. The last general election in 2005 focused on 
structural reforms. However, the general election this time appears 
quite different from the last election, with the political parties 
and their candidates having backed down from their one-time battle 
of words over structural reforms. The survey also found that each 
political party's candidates were now focusing on issues differing 
from those raised by candidates running from other parties. A total 
of 1,374 candidates have now filed their candidacies, and answers 
were received from 1,257 candidates. 
 
In campaigning for the 2005 general election, Liberal Democratic 
Party candidates advocated reform-oriented economic policy measures 
that weighed market mechanisms. This time, however, LDP candidates 
tend to insist on increasing public spending unlike before. This 
stance is poles apart from that at the time of the last general 
election. 
 
Among LDP candidates, a total of 90% answered "yes" when asked if 
they thought the government should spend more from its fiscal budget 
on economic stimulus measures instead of constraining its spending 
to aim for a fiscal turnaround. The figure was up more than 70 
points from the last survey. This reflects strong calls for job 
security through more public investments. 
 
In the meantime, the economic policy standpoints of candidates 
running on the Democratic Party of Japan's ticket were also more 
inclined toward public spending but remained almost neutral. When it 
comes to public spending, the difference between the LDP and the DPJ 
is even more pronounced than in the 2005 election. 
 
5) Poll: Majority backs DPJ policies 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
August 19, 2009 
 
TOKYO 00001910  004 OF 011 
 
 
 
On Aug. 14-16 the Tokyo Shimbun conducted a questionnaire survey of 
its readers on the manifestos (campaign pledges) of various 
political parties for the now-announced general election for the 
House of Representatives. There were responses from a total of 1,184 
persons. In the poll, respondents were asked about policy issues in 
connection with employment, the pension and the healthcare systems, 
and economic stimulus measures. In all three of these policy areas, 
the Democratic Party of Japan's positions were supported by more 
than half of those polled. This shows that the DPJ is gaining 
momentum with its specific policies as well. 
 
In the poll, respondents were asked about the policy standpoints of 
the Liberal Democratic Party (LDP) and of the DPJ. Readers responded 
by cell phone, Internet, and fax. 
 
The biggest gap between support for the LDP and for the DPJ was seen 
in their positions on the pension system. The DPJ insists on 
establishing a new system that guarantees minimum pensions and pays 
pensions in proportion to income. This DPJ policy gained support 
from 60.3%. Meanwhile, the LDP garnered support from only 24% for 
its advocacy of enhancing the current pension system. 
 
In the breakdown of support for political parties, 19.8% of 
respondents supported the LDP, 41.9% the DPJ, 4.4% the Japanese 
Communist Party, 2.8% the New Komeito Party, and 1.5%.the Social 
Democratic Party. 
 
6) DPJ popular among those in their 30s and over, LDP leading among 
those in their 20s and under 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
August 19, 2009 
 
The Democratic Party of Japan is highly popular among those in their 
thirties and over while the Liberal Democratic Party appears to be 
catching on more with younger generations in their twenties and 
under, the Tokyo Shimbun found from its survey of readers. However, 
those in support of the LDP are not positive supporters for the LDP 
and there were many opinions and criticism about the DPJ. 
 
In the survey, respondents were asked about the respective 
manifestos or campaign pledges of the LDP and the DPJ over policy 
issues concerning job security, pension and healthcare systems, and 
economic stimulus measures. In all threes three policy areas, the 
DPJ outdistanced the LDP among those in their thirties and over. 
Among those in their twenties and under, the LDP edged out the DPJ. 
 
ELECTION CAMPAIGN BEGINS 
 
7) 1,374 candidates running in House of Representatives election 
 
YOMIURI (Top play) (Full) 
August 19, 2009 
 
The start of the official campaign for the 45th House of 
Representatives election, where the main issue is "choice of 
administration," was announced on August 18, and the final count of 
candidates is 1,374. Leaders and senior officials of the political 
parties kicked off the campaign at various locations in the country, 
and a heated debate has begun on a wide variety of issues, including 
whether the current administration should continue, economic 
 
TOKYO 00001910  005 OF 011 
 
 
stimulation, support for livelihoods, and administrative 
organization, in the run-up to election day on August 30. 
 
Voting on August 30 
 
Party leaders appealed for support by making stump speeches on 
street corners and appearing on TV. 
 
Prime Minister Taro Aso (Liberal Democratic Party (LDP) president) 
made stump speeches in Higashimuraya City, Kita Ward, and Nerima 
Ward in Tokyo on the afternoon of August 18. He cited the fact that 
the real GDP growth rate has gone up for the first time in five 
quarters to emphasize his achievement, saying: "Our economic 
policies have been on successful. We will continue to implement 
economic stimulation measures." He called for support using the 
keyword "protection (mamoru)" - "protection of Japan" in terms of 
the economy, livelihood, and security. He appeared on a NHK TV 
program in the evening and criticized the "child allowance" and 
other policies listed in the manifesto of the Democratic Party of 
Japan (DPJ). He said: "These are pork-barrel and socialist policies. 
They do not constitute a growth strategy." 
 
Meanwhile, DPJ President Yukio Hatoyama campaigned in Toyohashi 
City, Aichi Prefecture, Shizuoka City, and Yokohama City in the 
afternoon before returning to Tokyo. He called for "an end to the 
politics of inertia" and appealed repeatedly for "new politics not 
relying on the bureaucrats." Appearing on the same NHK program with 
Aso, Hatoyama emphasized that the DPJ's manifesto "will be 
implemented without fail" and told the voters to "trust the 
reliability of the manifesto." He said they "should not pay any 
attention" to the ruling parties' growing criticism of the DPJ for 
lack of revenue sources to back its policies. 
 
The deadline for filing candidacy in the Lower House election was at 
5:00 p.m. on August 18. A total of 1,139 candidates are running in 
the single-seat districts (totaling 300), while 888 are running on 
the proportional representation tickets in the 11 blocs nationwide 
(235 running on the proportional representation tickets alone, while 
653 are also running as single-seat district candidates). The total 
number of all candidates is 1,374. The number of candidates had been 
on the decline in the four Lower House elections held since the 
current electoral system was introduced in 1994. However, there has 
been an increase this time because the new Happiness Realization 
Party is fielding a total of 337 candidates, 288 candidates in the 
single-seat constituencies and 49 candidates on the proportional 
representation ticket. This has resulted in an increase of the total 
number of candidates over the 1,131 in the last election. 
 
8) Number of qualified voters increases by 986,000; Disparity in 
weight of one vote widens 
 
ASAHI (Page 4) (Full) 
August 19, 2009 
 
The Ministry of Internal Affairs and Communications announced on 
August 18 the number of registered voters as of August 17. The total 
number of qualified voters is 104,235,718, of which 50,407,096 are 
men, and 53,828,622 are women. Adding the registered voters casting 
their votes from overseas, the grand total is 104,344,165, 
representing an increase of 986,963 voters from the general election 
in 2005. 
 
 
TOKYO 00001910  006 OF 011 
 
 
The fourth district of Chiba has the highest number of voters at 
489,437, while the third district of Kochi has the fewest voters at 
212,376. There is a 2.30-fold disparity of the weight of one vote in 
these two constituencies, which means the disparity has widened 
further from the maximum of 2.17-fold disparity in the last 
election. A total of 46 constituencies have over a 2-fold disparity. 
The total number of overseas voters is 108,447, of which 54,377 are 
men and 54,070 are women. This is an increase of 25,440 from the 
number last time. 
 
9) Aso says he will stay in office if ruling bloc wins election, 
admits his gaffes caused loss of trust in LDP 
 
ASAHI (Page 4) (Full) 
August 19, 2009 
 
On August 17 Prime Minister Taro Aso (Liberal Democratic Party (LDP) 
president) gave an interview to Asahi Shimbun and other media 
outlets in which he said that "if the ruling parties win a majority 
of seats in the upcoming general election, the administration will 
be maintained," indicating a strong desire to stay in office. He 
added that if his administration continues, a second FY09 
supplementary budget will be considered as an additional economic 
stimulation measure. 
 
Aso refrained from defining his criterion for the ruling bloc's 
victory in the election, saying "it is inappropriate to cite 
numbers," but stated unequivocally that if the LDP and New Komeito 
win a majority of seats, "this will mean that we continue to have a 
mandate." He also said, "I think if the economy loses steam, a 
second supplementary budget will have to be compiled." 
 
Meanwhile, commenting on the decline in the LDP's support rating, 
Aso said, "My statements and the discord in the LDP caused a loss of 
trust among LDP supporters, party members and sympathizers, and the 
voters," admitting that his own words and actions contributed to the 
sagging approval ratings. 
 
Aso said that he had "no regrets" about not dissolving the House of 
Representatives shortly after convening the extraordinary Diet 
session in fall 2008. He stressed that "giving priority to the 
economy and economic stimulation over political maneuvering was the 
correct choice in the sense of protecting the people's livelihood." 
 
Following is the gist of the interview with Aso: 
 
Q: What will be your criterion for victory in the general election? 
If the ruling parties fail to win a majority of seats, how will you 
take responsibility? 
 
Aso: Right now, my colleagues are campaigning very hard. It is 
inappropriate to cite numbers. I cannot talk on the assumption of 
defeat. If the ruling parties win a majority of seats, the 
administration will be maintained. This will mean that we continue 
to have a mandate. 
 
Q: If your administration continues, will you think about additional 
economic stimulation measures or compiling a second supplementary 
budget? 
 
Aso: At this point, we do not know what will happen from September. 
However, if the economy loses steam, I think a second supplementary 
 
TOKYO 00001910  007 OF 011 
 
 
budget should be compiled. 
 
Q: What is the main reason for the decline in the LDP's support 
rating? 
 
Aso: My statements and the discord in the LDP caused a loss of trust 
among LDP supporters, party members and sympathizers, and the 
voters. This is a major reason for the sagging approval ratings. 
 
Q: You talk about "breaking away from excessive domination by market 
mechanisms." How do you propose to do that? 
 
Aso: The IT and other sectors have been successful through reforms 
and deregulation. However, excessive deregulation has resulted in 
regional and income disparities. Significant cuts in tax grants to 
the local governments have impoverished many local communities. I 
think we need to reflect on the fact that the weak suffer from the 
consequences and should do something to correct this. 
 
Q: Do you think you should have dissolved the Diet for a general 
election shortly after the financial crisis last fall? 
 
Aso: No I don't. If I had dissolved the Diet and had not implemented 
economic stimulation measures, economic indicators (showing a 
positive growth in GDP) would not have been possible. It was the 
correct choice in the sense that we gave priority to policy in order 
to protect the people's livelihood. 
 
Q: You claim that (the LDP's) difference with the Democratic Party 
of Japan (DPJ) is in economic growth strategy. Can you explain that? 
What do you think of the DPJ's plan to form a coalition with the 
Social Democratic Party (SDP) and the People's New Party? 
 
Aso: The proposals to make expressways toll free or hand out a child 
allowance are not policies but pork under another name. The DPJ and 
the SDP do not see eye to eye on security. I think it will be 
extremely difficult to form a (coalition) government without a 
consensus on security, which is the very foundation of the state. 
 
10) LDP fielding hereditary and senior candidates, DPJ fielding 
newcomers and women as candidates for upcoming general election 
 
SANKEI (Page 5) (Excerpts) 
August 19, 2009 
 
A total of 1,374 people filed to run for the Aug. 30 House of 
Representatives election.  Of the candidates running on the Liberal 
Democratic Party (LDP) ticket, one-third are running for seats held 
by their parents. There are many senior lawmakers among the LDP 
candidates. In contrast, the number of newcomer candidates of the 
Democratic Party of Japan (DPJ) is four times that of the LDP, and 
the number of the DPJ's female candidates greatly exceeds the 
LDP's. 
 
Record high number of woman candidates 
 
A total of 229 women - 16.7% of the total candidates and a record 
high - are running in the general election. A total of 147 women ran 
in the previous Lower House election held in 2005. In the past, a 
record number of 202 female candidates filed in the 2000 general 
election. The Happiness Realization Party's 73 woman candidates 
contributed to increasing the number of female candidates. At the 
 
TOKYO 00001910  008 OF 011 
 
 
same time, another main reason for the high number is that the DPJ 
actively filed 46 woman candidates, double the 24 it had fielded in 
the previous poll. DPJ Deputy President Ichiro Ozawa aims to secure 
votes from nonaligned voters by fielding woman candidates against 
heavyweights of the ruling parties in single-seat districts. The LDP 
filed 27 female candidates, up one from the 2005 election. 
 
Number of DPJ newcomers is four times higher than LDP 
 
Another feature of this election is that the number of new DPJ 
candidates greatly exceeded that of the LDP. The DPJ fielded 114 
candidates in single-seat districts, while the DPJ filed 28. The 
number of LDP candidates running in the proportional representation 
segment (including combined candidates) is 42, while that of the DPJ 
candidates is 164. 
 
The LDP had filed 124 newcomers in single-seat constituencies and 
the proportional representation blocs in the previous election, 
giving birth to many "Koizumi children." But it put up only 43 this 
time. This is because it won a huge victory in the 2005 election and 
there were no vacant district seats. 
 
LDP hereditary candidates account for one-third of entire LDP 
hopefuls 
 
The LDP filed 326 candidates, while the DPJ put up 330. If 
hereditary candidates are defined as those who will take over the 
electoral turf (completely or partially) of their relatives who are 
Diet members and those whose parents are Diet members even though 
they are not taking over the electoral turf, the LDP filed 109 such 
candidates or 33.4% of the entire candidates, while the DPJ's 
hereditary candidates comprise 32 or 9.7% of the party's 330 
candidates. 
 
Breaking down the bureaucratic system? 
 
A total of 98 candidates filed by the six major political parties 
are former central and local government officials. The 98 candidates 
are made up of 54 LDP candidates and 34 DPJ hopefuls. In the 
previous election, the LDP put up 57, while the DPJ filed 25. 
Although the DPJ asserts that it will abolish the bureaucratic 
system, the way of bureaucrats becoming Diet members will likely to 
shift from the LDP to the DPJ. 
 
Proportional representation segment 
 
The DPJ filed 59 candidates in the proportional representation 
section of the ballot, while the LDP put up 37. 
 
The number of candidates running only in the proposal representation 
blocs was 235, up 92 from the previous race. 
 
11) Bureaucrats have less resistance to running in Aug. 30 election 
on DPJ ticket 
 
MAINICHI (Page 5) (Full) 
August 19, 2009 
 
Among the fresh candidates for the Aug. 30 House of Representatives 
election, 28 bureaucrats, two more than in the previous Lower House 
election in 2005, are included. Moreover, 16 of them are running on 
the Democratic Party of Japan (DPJ) ticket and eight are running on 
 
TOKYO 00001910  009 OF 011 
 
 
the Liberal Democratic Party (LDP) ticket. This is the first time 
that number of candidates on the DPJ ticket is larger than the 
number running on the LDP ticket. 
 
Among the LDP candidates, a number of former lawmakers are included, 
so there was little room for such candidates to run on the party 
ticket. In addition, the bureaucrats apparently had less resistance 
to choosing the DPJ because the two-party system is becoming more 
pronounced and major policy differences between the LDP and the DPJ 
are not evident. 
 
The number of candidates from government agencies, backed by the DPJ 
ticket, was three in 1996, five in 2000, eight in 2003, and 11 in 
¶2005. Meanwhile, the number of such candidates backed by the LDP was 
15 in 1996, 11 in 2000, 10 in 2003, and 13 in 2005. 
 
In terms of the government agencies the candidates are from, in the 
case of the DPJ, three candidates are from the Ministry of Internal 
Affairs and Communications, the Finance Ministry, and the Ministry 
of Economy, Trade and Industry (METI) each and two are from the 
Ministry of Land, Infrastructure, Transport and Tourism. Of the LDP 
candidates, three are from METI, and five are from the Finance 
Ministry and other government agencies. 
 
12) Average age of candidates 50.7 
 
MAINICHI (Page 5) (Abridged) 
August 19, 2009 
 
Because 296 Liberal Democratic Party (LDP) candidates won seats in 
the 2005 House of Representatives election, a high percentage (86%) 
of its candidates in the upcoming election were Diet members until 
the Lower House's dissolution on July 21. It is fielding four former 
lawmakers (1%) and 43 newcomers (13%) in the August 30 general 
election. The Democratic Party of Japan (DPJ) fielded 113 candidates 
(34%) who were Lower House members until last month, 53 former Diet 
members (16%), and 164 newcomers (50%). 
 
A total of 1,503 people ran in the 1996 when the mixed electoral 
system of single-seat and proportional representation constituencies 
was introduced for Lower House elections. The number of candidates 
to run in general elections has been decreased since 1996. Because 
such minor parties as the Happiness Realization Party fielded 348 
candidates this time, a total of 1,374 people are running in the 
Aug. 30 election. 
 
The average age of all candidates is 50.7. The average ages of male 
and female candidates are 50.9 and 49.4 years. The average age of 
LDP candidates is 55.5, while that of the DPJ candidates is 49.3. 
 
13) Naoki Tanaka join DPJ parliamentary group 
 
MAINICHI (Page 5) (Excerpts) 
August 19, 2009 
 
The parliamentary group of the Democratic Party of Japan (DPJ) and 
the People's New Party (PNP) in the House of Councillors informed 
the Upper House Secretariat yesterday that Naoki Tanaka has joined 
the DPJ. 
 
14) DPJ candidate lists carry strong Ozawa policy imprint 
 
 
TOKYO 00001910  010 OF 011 
 
 
YOMIURI (Page 2) (Abridged) 
August 19, 2009 
 
The Democratic Party of Japan (DPJ) unveiled yesterday proportional 
representation lists for the Aug. 30 House of Representatives 
election that were compiled under the strong leadership of Deputy 
President Ichiro Ozawa, who is responsible for the party's election 
campaigning, renewing the impression that Ozawa is still wielding 
significant influence in the party. The "Ozawa lists" have stirred 
strong concern inside and outside the DPJ about Ozawa's influence in 
the event of the launch of a DPJ administration. 
 
On the afternoon of August 17 Ozawa held talks with President Yukio 
Hatoyama, Secretary General Katsuya Okada, and other DPJ executives 
in which he was given a free hand in determining the rankings of DPJ 
candidates running in the proportional representation section. 
Consequently, Ozawa worked hard to determine the rankings of one 
place in Tokyo. But he encountered complications, and the DPJ 
decided at one point to postpone the announcement of its 
proportional representation lists until after August 17. But some 
said that posting the party's lists on its website after the public 
announcement of the election might be a violation of the Public 
Offices Election Law regulating the posting of documents. As a 
result, the party decided before dawn yesterday to unveil just the 
lists of candidates running only in the proportional representation 
section without specifying their rankings. 
 
Ozawa did not determine all the rankings until around 3 a.m. 
yesterday. Party officials finally completed a set of procedures, 
such as prescreening of the documents to be filed with the Internal 
Affairs and Communications Ministry, around 7 a.m. 
 
The lists bear the stamp of Ozawa's policies. 
 
15) Hatoyama: SDP and PNP to join new cabinet 
 
YOMIURI (Page 2) (Abridged slightly) 
August 19, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama, appearing 
on an NHK news program yesterday, indicated that it is naturally 
desirable for the Social Democratic Party (SDP) and the People's New 
Party (PNP) to join a new cabinet and form a coalition 
administration if the DPJ takes power. Hatoyama remarked, apropos of 
a hike in the consumption tax, that "a minimum pension benefit 
system (which the DPJ advocates) will be totally covered by tax 
revenues. The system will be shifted in 20 years' time, so the 
consumption tax must be hiked 20 years from now. Discussion must be 
conducted at the halfway point, 10 years later." Hatoyama indicated 
that for the time being there is no need to discuss the issue. 
 
16) 70% of firms think economy is point at issue 
 
YOMIURI (Page 2) (Abridged slightly) 
August 19, 2009 
 
The Yomiuri Shimbun conducted a survey of major Japanese companies 
on August 18 to coincide with the public announcement of the August 
30 House of Representatives election, asking about points at issue 
in the election. Valid answers (multiple answers accepted) came from 
61 companies. Forty-two companies, 69% of the total, cited "economic 
stimulus measures." This was followed by "social security reform" 
 
TOKYO 00001910  011 OF 011 
 
 
(36 firms; 59%) and a "growth strategy" (27 firms; 44%). Although it 
is said that the economy has bottomed out, the responses show that 
economic stimulus measures are still a top concern of corporations. 
 
Asked about the controversial issue of hiking the consumption tax 
rate, 23 companies (38%) said a hike is inevitable but should be 
implemented after economic recovery is achieved, and 22 firms (36%) 
replied that the rate should be raised after the government made a 
maximum effort to cut spending. The former is close to the Liberal 
Democratic Party's view and the latter to the Democratic Party of 
Japan's. A total of 77% firms gave answers in favor of a hike, 
including two (3%) that replied the rate should be raised at an 
early date. 
 
17) WTO issues report in favor of Japan's assertion on U.S.'s 
methodology for calculating dumping margins 
 
NIKKEI (Page 5) (Slightly abridged) 
August 19, 2009 
 
The World Trade Organization (WTO) on Aug. 18 issued a report that 
completely accepts Japan's claim against the U.S.'s methodology for 
calculating dumping margins. The report shows that the methodology 
does not comply with WTO rules and that the U.S. has not implemented 
its recommendations. In the event that the U.S. fails to correct its 
practices, Japan will be able to raise its tariffs as a 
countermeasure. 
 
Japan has complained of the U.S.'s "zeroing" methodology for 
calculating dumping margins. Based on this methodology, the U.S. has 
imposed unreasonably high tariffs on bearings imported from Japan. 
Japan estimates that Japanese firms have suffered losses amounting 
to 28 billion yen due to this practice. 
 
Japan brought this issue into a dispute settlement panel of the WTO 
in November 2004. The ruling handed down this time allows Japan to 
take similar countermeasures against the U.S. if it refuses to 
correct the zeroing methodology, although Japan will not be able to 
retrieve the losses it has already suffered. 
 
ZUMWALT