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Viewing cable 09TOKYO1938, DAILY SUMMARY OF JAPANESE PRESS 08/21/09

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Reference ID Created Released Classification Origin
09TOKYO1938 2009-08-21 06:17 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO7929
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1938/01 2330617
ZNR UUUUU ZZH
P 210617Z AUG 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5624
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 8346
RUEHFK/AMCONSUL FUKUOKA 6015
RUEHOK/AMCONSUL OSAKA KOBE 9822
RUEHNAG/AMCONSUL NAGOYA 3431
RUEHKSO/AMCONSUL SAPPORO 6528
RUEHBJ/AMEMBASSY BEIJING 0557
RUEHUL/AMEMBASSY SEOUL 7220
RUCNDT/USMISSION USUN NEW YORK 6848
UNCLAS SECTION 01 OF 10 TOKYO 001938 
 
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 08/21/09 
 
INDEX: 
 
 (1) Editorial: DPJ should present vision for firmly upholding 
Japan-U.S. alliance (Sankei) 
(2) Major differences exist between war memorials in Japan, U.S., 
China (Sankei) 
(3) Poll on Aso cabinet, political parties, general election 
(Yomiuri) 
(4) Lower House election 2009 (Part 3): Can they defend Japan's 
security? (Yomiuri) 
(5) 2009 Lower House election to choose government (Part 1): Voters 
also being tested (Nikkei) 
(6) 2009 Lower House election to choose government (Part 2): Hopes 
for the administration to halt the decline in national power 
(Nikkei) 
(7) Still 174 hereditary candidates running in Lower House election 
(Mainichi) 
(8) Water-treatment industry: Government to support Japanese firms' 
plans to branch out overseas; JBIC signs MOU with Singapore's Hyflux 
(Yomiuri) 
 
ARTICLES: 
 
(1) Editorial: DPJ should present vision for firmly upholding 
Japan-U.S. alliance 
 
SANKEI (Page 2) (Full) 
August 21, 2009 
 
New U.S. Ambassador to Japan John Roos has arrived at his post in 
Tokyo. The reason for his unusually early arrival amid the 
campaigning for the House of Representatives election underway is 
probably to see the election campaign thoroughly in order to prepare 
for developments in Japan-U.S. relations under the new Japanese 
administration. 
 
How to strengthen and develop the Japan-U.S. alliance is the major 
campaign issue that constitutes the most important element of 
diplomatic and security policy. However, it is hard to say that the 
Democratic Party of Japan (DPJ), which might take over the reins of 
government, has presented the future course of Japan for the 21st 
century to the public because the DPJ's manifesto includes many 
unclear campaign pledges. It is necessary for the DPJ to convey 
concrete ideas so that the Japan-U.S. alliance will not be 
undermined or the bilateral relationship will not be forced to stray 
off course. 
 
The problem lies in a divergence of views between the DPJ and the 
Liberal Democratic Party (LDP) over the Maritime Self-Defense 
Force's refueling mission in the Indian Ocean and the realignment of 
U.S. bases in Okinawa. The LDP pledges to maintain the MSDF's 
refueling operations, considering that the refueling mission and 
assistance for the reconstruction of Afghanistan are the two key 
strategies for the war on terror by the international community. It 
also pledges to steadily implement USFJ realignment based on the 
agreement between the Japanese and U.S. governments. 
 
Meanwhile, the DPJ pledges to end the refueling mission next January 
and withdraw the MSDF, but it has yet to explain what Japan should 
do in place of the refueling mission and Japan's specific 
international contributions. Regarding the U.S. bases in Okinawa, 
DPJ President Yukio Hatoyama said: "Relocating (U.S. Maritime Corps' 
 
TOKYO 00001938  002 OF 010 
 
 
Air Station Futenma) overseas is desirable. We expect (Futenma) to 
be relocated out of Okinawa at least." The USFJ realignment program 
agreed (in May 2006) by Tokyo and Washington after three years of 
negotiations could be returned to square one. 
 
Another concern is that the Social Democratic Party (SDP), which is 
expected to form a coalition government with the DPJ, pledges to 
abrogate a special agreement on Japan's host-nation support for 
USFJ, as well as abolish the bilateral accord on the relocation of 
U.S. Marines from Okinawa to Guam, and oppose the construction of a 
U.S. base in the Henoko district. The SDP also opposes the 
deployment of U.S. carrier-borne aircraft in Yokosuka. There are 
many contradictions in the campaign pledges of the SDP, which 
appears to be taking an anti-American policy and opposing the 
Japan-U.S. alliance, and the DPJ, which pledges to build a close and 
equal Japan-U.S. alliance relationship. 
 
The Obama administration's officials in charge of Japan policy 
attach great importance to the refueling operations in the Indian 
Ocean, Japan-U.S. Status of Forces Agreement (SOFA), and USFJ 
realignment. These three issues touch on the fundamentals of the 
bilateral alliance. Therefore, the DPJ should explain its views on 
the three issues to the public. Regardless of ideological 
inclinations, common foundations are necessary for diplomatic and 
security policies. 
 
The LDP shows a stance of allowing the use of force in collective 
self-defense. It is commendable that the LDP pledges to set up a 
national security council in order to strengthen the function of the 
Prime Minister's Official Residence (Kantei). However, this could 
have been realized before if a political decision was made. The LDP 
should demonstrate a clearer stance before election day. 
 
 
(2) Major differences exist between war memorials in Japan, U.S., 
China 
 
SANKEI (Page 7) (Excerpts) 
August 20, 2009 
 
By Kunihiko Miyake 
 
There are war memorials in Pearl Harbor, Hiroshima, Nagasaki and 
Beijing. These facilities are all designed to remind visitors of 
past events and have them pray for peace in the future. But the 
messages of these facilities are largely different in content and 
objective. 
 
The USS Arizona Memorial in Pearl Harbor, which is only accessible 
by boat, is a simple structure with the names of the war dead 
inscribed on the marble wall. On the wall above the entrance is a 
plaque that reads, "In honor and in commemoration of the members of 
the Armed Forces of the United States who gave their lives for their 
country during the attack on Pearl Harbor in Hawaii on December 7, 
1941." 
 
Neither a description of the "cowardliness" of the sneak attack nor 
the name of the attacker is found in the memorial. Rather attention 
is drawn to exhibits examining why the U.S. military failed to 
predict and prevent the attack and why the military failed to defend 
ordinary citizens. 
 
 
TOKYO 00001938  003 OF 010 
 
 
"The overall theme is rest in peace," said the memorial's architect. 
"In order to have the visitors deeply examine their own feelings, we 
avoided excessively emphasizing misery." The memorials in Hiroshima 
and Nagasaki, the two cities in Japan that suffered nuclear bombing, 
offer a similar message. 
 
The inscription on the Hiroshima Cenotaph in the Hiroshima Peace 
Memorial Park is shorter than the Arizona Memorial's. "Please rest 
in peace," it says. "We will never make the same mistake." The Peace 
Statue in Nagasaki Peace Park bears no inscription. 
 
There are no detailed explanations about who made the "mistake" and 
what kind of "mistake" was made. As a member of the Hiroshima City 
government explained, "The inscription aims to have all people pray 
for the souls of the atomic-bomb victims and pledge not to make the 
mistake of waging war again." 
 
Displays in the museums in Hiroshima and Nagasaki underscore the 
distress of the destruction caused by atomic bombing, but such 
expressions as "savagery" or "slaughter" are nowhere in sight. The 
memorials give an opportunity for visitors to think deeply (of the 
tragedy of the war), like the Arizona Memorial. 
 
But the memorial hall in Nanjing sends a totally different message. 
Its official name (Nanjing Massacre Memorial Hall) tells everything. 
Conspicuously displayed in the front garden is the official number 
of victims. 
 
Descriptions of "cruel acts" accompanied by pictures and the name of 
aggressor that "violated international law" are found among the 
displays in the hall. It is far from being a place conducive to 
reflection. It has no exhibits examining why the Chinese military 
was unable to protect its citizens. 
 
The displays in the memorial hall in Nanjing have elicited all sorts 
of debate and criticism. People should clearly know there are 
differences in the contents and purposes of the war memorials in 
Japan, the U.S. and China. 
 
The author would like readers to ponder the best way to mourn the 
war dead, in the belief that a tranquil state of mind and cool 
judgment are essential in considering such a serious issue as war 
and peace. 
 
(3) Poll on Aso cabinet, political parties, general election 
 
YOMIURI (Page 2) (Full) 
August 21, 2009 
 
Questions & Answers 
(Figures shown in percentage) 
 
Q: Are you interested in the upcoming general election for the House 
of Representatives? 
 
Very interested 58.6 
Somewhat interested 29.9 
Not very interested 7.8 
Not interested at all 3.1 
No answer (N/A) 0.6 
 
Q: Are you going to vote in the general election? 
 
TOKYO 00001938  004 OF 010 
 
 
 
Yes, definitely (including early voting) 74.7 
Yes, if possible 20.4 
Probably not 2.2 
No 1.7 
N/A 1.0 
 
Q: Do you support the Aso cabinet? 
 
Yes 20.2 
No 61.9 
N/A 17.9 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP) 26.7 
Democratic Party of Japan (DPJ or Minshuto) 32.2 
New Komeito (NK) 4.3 
Japanese Communist Party (JCP) 2.8 
Social Democratic Party (SDP or Shaminto) 1.5 
People's New Party (PNP or Kokumin Shinto) 0.4 
Your Party (YP or Minna no To) 0.6 
Reform Club (RC or Kaikaku Kurabu) 0.0 
New Party Nippon (NPN or Shinto Nippon) 0.1 
Other political parties 0.3 
None 20.5 
N/A 10.6 
 
Q: What do you attach importance to when voting in the general 
election? 
 
Economy, job security 25.7 
Social security, such as pensions 36.2 
Low birthrate, childcare 10.1 
Taxation, such as consumption tax 7.4 
Foreign relations, national security 3.3 
Central government reform 6.0 
Decentralization 1.8 
Politics and money 4.0 
Other answers 1.2 
N/A 4.3 
 
(4) Lower House election 2009 (Part 3): Can they defend Japan's 
security? 
 
YOMIURI (Page 1) (Abridged slightly) 
August 21, 2009 
 
Takuji Kawada, chief of the international department 
 
When I was sorting out old documents the other day, one photograph 
caught my eye. It was a photograph of Taro Aso and Yukio Hatoyama 
standing behind former Deputy Prime Minister Michio Watanabe. It was 
taken by me in a Pyongyang suburb in March 1995. 
 
At the time, Aso was serving as deputy secretary general of the 
Liberal Democratic Party (LDP) and Hatoyama as secretary general of 
the New Party Sakigake (Sakigake). Aso and Hatoyama were members of 
the delegation to Pyongyang sent by the coalition government 
composed of the LDP, the Social Democratic Party of Japan, and 
Sakigake with the aim of resuming normalization talks with North 
Korea. 
 
TOKYO 00001938  005 OF 010 
 
 
 
An agreement was reached on resumption of the talks after a fierce 
debate between the Japanese delegation and the North Korean side. 
But since then the abduction and nuclear issues have emerged, and 
the agreement has turned into a dead letter. That was 14 years ago. 
Aso and Hatoyama are now vying for the helm of government and North 
Korea poses a threat to Japan. The environment surrounding Japan's 
diplomatic and security policies is now more severe than ever. In 
addition to North Korea, China has been expanding its military 
capabilities at a rapid pace. Under such circumstances, serious 
efforts are underway to turn the U.S.-Japan alliance, in which one 
party unilaterally defends the other, into a relationship where both 
defend each other. 
 
Japan will go to the polls (on Aug. 30) in the midst of this severe 
security environment. 
 
All political parties have released their manifestos (campaign 
pledges) that center on "people's livelihoods." Needless to say, 
"people's livelihoods" do not mean anything without "national 
security." 
 
To which party - the LDP or the Democratic Party of Japan (DPJ) - is 
the Japanese public going to leave "Japan's security"? The upcoming 
election will provide the answer to that question. 
 
The DPJ's policies seem undependable. The DPJ manifesto indicates 
that the party will build a close and equal Japan-U.S. relationship. 
What does that mean? Has the bilateral relationship not been close 
or equal? The DPJ manifesto does not specify how the party is going 
to achieve that. 
 
Further, the DPJ has said that it will terminate the Maritime 
Self-Defense Force's refueling mission in the Indian Ocean next 
January. 
 
"We can come up with a different approach that is more acceptable," 
President Hatoyama declared. But the party has yet to explain what 
that different approach to international contribution specifically 
means. 
 
Other countries are keeping eyes on the ambiguity of the DPJ 
manifesto. Michael Green, former senior director for Asian affairs 
at the White House National Security Council, predicted that a under 
a DPJ administration, the decision-making process will be more fluid 
and more unpredictable. 
 
Meanwhile, the LDP manifesto specifically says: "We will strengthen 
the Japan-U.S. alliance. We will reinforce strategic talks, 
planning, joint exercises and training with the United States." 
 
Vowing to take steps toward allowing Japan to intercept ballistic 
missiles targeting the United States, the LDP manifesto also 
promises to reexamine the government's interpretation of the right 
to collective self-defense. All those pledges sound convincing all 
the more because the party has already been in charge of policies. 
 
As the saying "diplomacy does not lead to votes" suggests, the level 
of interest in security is much lower than in childrearing, the 
economy, employment and the like. Debates must be conducted before 
risk becomes reality. All political parties must discuss the 
security of Japan, and voters should cast their ballots after 
 
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closely monitoring them. 
 
(5) 2009 Lower House election to choose government (Part 1): Voters 
also being tested 
 
NIKKEI (Page 1) (Abridged) 
August 19, 2009 
 
By Yasuhiro Tase, guest columnist 
 
The Aug. 30 House of Representatives election was officially 
announced yesterday, kicking off campaigning for the election, which 
could bring about a change of government. Japan's voters appear to 
be feeling great dissatisfaction with the Liberal Democratic Party 
(LDP) and great apprehension about the possibility of the Democratic 
Party of Japan (DPJ) taking the reins of government. The probability 
of a change of government is higher than at any past Lower House 
election since the 1955 political structure was introduced. 
 
The upcoming election is a major test not just for political parties 
and politicians but also for voters. The Japanese voters are being 
asked to make a crucial choice based on their own ideas about the 
future of Japan. 
 
But the campaign manifestos (policy pledges) of the LDP and the DPJ, 
which are vying for political power, are of little help. They are 
filled with small-scale proposals and include some bizarre 
buzzwords. For instance, the LDP coins a new word, "sekinin-ryoku 
(responsibility capability)". They might be interested only in 
drawing public attention. The fact that the political world is 
generating queer Japanese words such as "sekinin-ryoku" and 
"toshuryokuoyiirey (party leader power)" is a problem. The two 
parties probably hired advertising copywriters to create such words. 
They need to realize that election campaigning is different from 
sales campaigns for new products. 
 
The manifestos do not clarify what key issues the two parties are 
fighting over. 
 
Their manifestos do not give clear ideas about what kind of future 
they envision for the nation and society. It seems that the election 
is simply a battle between the two parties to grab power. 
 
Transferring power from time to time is desirable. Even so, from the 
viewpoint of the nation's policy consistency and international 
credibility, bringing about drastic changes on both the domestic and 
diplomatic fronts through a power transfer is undesirable. This 
means that there should be regular communication on key policy 
issues between the ruling and opposition parties. 
 
In the latest party-head debate, no party head took a clear position 
on the key issue of whether to continue to try to establish a small 
government. 
 
On the issue of decentralization, too, no serious debate has been 
conducted between the two camps. Political parties have hardly 
scratched the surface of such important issues as constitutional 
revision, Japanese nationals abducted by North Korean agents, 
Japan's nuclear option, and the propriety of the prime minister's 
annual visit to Yasukuni Shrine. 
 
With the memories of World War II rapidly fading away, it is 
 
TOKYO 00001938  007 OF 010 
 
 
important for Japanese political parties to make a renewed pledge to 
prevent Japan from waging war under any circumstances now that 64 
years have passed since the end of WWII. This is the right time for 
Japan to do so because the nation has begun to launch activities 
that were once regarded as constitutionally unacceptable, such as 
the overseas deployment of Self-Defense Force troops. 
 
It is distressing to think that the political, economic, and social 
confusion that Japan is engulfed in could be left for future 
generations to deal with. 
 
The upcoming general election should be defined as a starting point 
to build a new Japan. 
 
(6) 2009 Lower House election to choose government (Part 2): Hopes 
for the administration to halt the decline in national power 
 
NIKKEI (Page 1) (Full) 
August 21, 2009 
 
Akio Fujii, member of editorial board 
 
The first major diplomatic event for the next prime minister who 
will take office after the House of Representatives election is the 
UN General Assembly, followed by the G-20 financial summit in 
Pittsburg, both of which will take place in late September. 
 
"No. 2 position" in peril 
 
This may be the last meeting that the Japanese prime minister 
attends as the world's number-two economic power. 
 
Japan's nominal GDP in 2008 was 4.9 trillion dollars, while China's 
was 4.4 trillion dollars. The difference is only 500 billion 
dollars. If the Chinese economy continues to grow and the yuan keeps 
appreciating, China's GDP in dollar terms may surpass Japan's this 
year or next year. 
 
The overall ranking of national power among the G-20 released 
recently by a South Korean private sector think tank, the Hansun 
Foundation for Freedom & Happiness, has already factored in Japan's 
and China's switching places. The foundation ranks the top four 
countries, in descending order, as follows: the U.S., China, Japan, 
and the U.K. 
 
Japan surpassed the former West Germany in GDP in 1968. Since then, 
Japan has boasted of being the world's second largest economic 
power, after America. The phrase "cooperation between the world's 
no. 1 and no. 2 economies" has been used over and over again during 
Japan-U.S. summits. 
 
Japan has provided generous official development assistance (ODA) 
and contributions to the International Monetary Fund (IMF) and other 
international organizations, despite being ridiculed as the ATM of 
the world. The general consensus among the people has been that 
while Japan does not aspire to become a military power, it will make 
international contributions in economic terms that befit the world's 
second largest economy. 
 
Now that the "no. 2 position" is in peril, how will Japan's position 
in the world change? 
 
 
TOKYO 00001938  008 OF 010 
 
 
For sure, there is the argument that it is meaningless to compete in 
size of the economy. China's per capita GDP is still about one-tenth 
of Japan's, so there is no need to make a fuss about falling from 
the position of no. 2 economy. 
 
However, there is no denying that the size of the economy is what 
counts in the international community. Even though they are in the 
top tier in per capita GDP, countries like Luxemburg or Norway are 
not members of the G-8. 
 
Furthermore, Japan's population will decline rapidly in the future 
due to the sagging birth rate. According to government estimates, 
the size of the population will shrink to 89 million from the 
current 120 million by 2055. People aged 15-64 years will constitute 
only 50 percent of the population, while senior citizens aged 75 
years or older will make up 27 percent. 
 
The next administration has the responsibility to show the people a 
clear vision for the future of a Japan that will inevitably face a 
shrinking economy and population in the long term. It should not 
only put forward short-term economic stimulation measures, but also 
social security and fiscal reforms. In this context it should 
present a growth strategy in response to the declining birth rate 
and graying of society. 
 
Concrete policies unclear 
 
Let us look at the manifestos (campaign pledges). The Liberal 
Democratic Party promises to "raise the per capital GDP to the 
highest level in the world in the next 10 years," but fails to give 
a concrete strategy for the achievement of this goal. 
 
The Democratic Party of Japan talks about "contributing to the world 
through an independent foreign policy," but judging from the 
controversy over the wording of its pledge on the Japan-U.S. free 
trade agreement (FTA), it does not appear to have a comprehensive 
strategy. 
 
What happened to Germany (the former West Germany) after it ceded 
the position of second largest global economy to Japan in 1968? 
After undergoing a period dubbed "European sclerosis," when it was 
plagued by unemployment among youth and the devastation of the 
regional economies, it was unified with the former East Germany 
after the fall of the Berlin Wall. It eventually found a future 
playing a central role in the European economy and in currency 
unification. 
 
Japan has taken for granted its status as a major economic power in 
the past 40 years. It is now facing a choice as this status is less 
solid than before. 
 
Will it choose to engage in the reform of economic structures, 
become more open, and embrace the vitality of other Asian countries 
to put the brakes on its decline in economic power and maintain a 
degree of influence in the world? 
 
Or will it conclude that it is acceptable to do nothing about the 
closed economic structures, let its population and economic power 
shrink, and allow itself to slowly fade from the world stage? In 
reality it is not even easy to be an "average country" where people 
live reasonably well. 
 
 
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This important choice that must be made should be debated more 
thoroughly in the election campaign. 
 
(7) Still 174 hereditary candidates running in Lower House election 
 
MAINICHI (Page 5) (Excerpts) 
August 19, 2009 
 
Daisuke Nohara, Ai Yokota 
 
The official campaign for the House of Representatives election 
where the voters will be asked to "choose an administration" has 
started on August 18, and a total of 1,374 candidates are now 
campaigning vigorously. The Liberal Democratic Party (LDP) is 
fielding 326 candidates, while the Democratic Party of Japan (DPJ) 
has 330 candidates, and the two parties are competing to become the 
number one party. The New Komeito and the other parties are also 
hoping to expand their party's political force. In this election, 
where the outcome may lead to major changes in the political map, 
what are the characteristics of the political parties' candidates 
who are aiming to take charge of the administration? We analyzed the 
candidates in terms of whether they are hereditary candidates - 
since hereditary Diet members are a common issue for both ruling and 
opposition parties - their places of birth, age, and other 
attributes. 
 
According to Mainichi Shimbun's survey, the parents or other 
relatives of 174 (13 percent) of the 1,374 candidates running this 
time also used to be Diet members. Hereditary candidates make up 35 
percent of all LDP candidates, which stands out in comparison with 
the DPJ's 11 percent, reflecting a significant difference between 
these two parties. 
 
The breakdown of the 174 hereditary candidates is: 113 from the LDP, 
37 from the DPJ, 2 from the New Komeito, and 22 from the other 
parties. The Social Democratic Party and the Japanese Communist 
Party are not fielding any hereditary candidates. While a simple 
comparison is not completely accurate, the percentage of hereditary 
LDP candidates has increased by 4 points from 2005, while the figure 
has gone down by 3 points for the DPJ. 
 
(8) Water-treatment industry: Government to support Japanese firms' 
plans to branch out overseas; JBIC signs MOU with Singapore's 
Hyflux 
 
YOMIURI (Page 2) (Abridged) 
August 20, 2009 
 
Izuru Sanemori, Singapore 
 
The Japan Bank for International Cooperation (JBIC) signed a 
memorandum of understanding (MOU) on Aug. 19 with Hyflux Ltd., 
Singapore's top water purification company. The JBIC is expected to 
finance Hyflux's overseas water projects that involve Japanese 
firms. The aim is to absorb foreign firms' plant operation and 
management know-how for transfer to Japanese firms. 
 
By teaming up with Hyflux, Japanese firms will take part in 
international bidding for seawater desalination and sewage treatment 
projects in China, India, the Middle East, and North Africa -- areas 
that are likely to continue suffering water shortages. 
 
 
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Japanese firms will be involved in the construction, operation and 
management of plants, in addition to the procurement of materials, 
such as water treatment membranes, for which they possess the 
world's most advanced technology. Reportedly trading firms, plant 
manufacturers, and investment companies have already shown interest. 
In many cases, seawater desalination projects cost between 100 
billion and 1 trillion yen. The JBIC will support such projects by 
providing loans and capital injection premised on Japanese 
participation. 
 
Listed on the Singapore Exchange, Hyflux operates in fields ranging 
from research on water treatment membranes to the operation and 
management of facilities. Accelerating overseas operations, the 
company's sales grew threefold from the previous term to 554 million 
Singapore dollars (36 billion yen) in the calendar year ending 
December 2008. The MOU with the JBIC is expected to help Hyflux 
raise funds in a stable manner. 
 
The world's water business is dominated by a small number of foreign 
firms with excellent know-how regarding plant operation and 
management. Japanese firms have been limited to the role of 
subcontractors providing materials and the like. 
 
Regarding the water business as a growth area, the Japanese 
government intends to expedite efforts to create a major Japanese 
water-treatment company. 
 
ROOS