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UNCLAS SECTION 01 OF 09 TOKYO 001944 
 
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 08/24/09 
 
Index: 
 
Foreign and security affairs: 
1) Japan to host in Tokyo this November an Afghan peace conference 
(Asahi) 
2) Ministry of Economy, Trade and Industry (METI) to set up 100 
billion yen infrastructure fund that will be disbursed to Asian 
countries (Yomiuri) 
3) Government readying new infrastructure building program using 
official development assistance (Nikkei) 
4) Government revising assistance program for the northern islands 
(Nikkei) 
5) New treaty to cope with Asian piracy will be joined by two 
European countries (Tokyo Shimbun) 
6) 200 demonstrate against the arrival of the super carrier USS 
Nimitz in Yokosuka (Asahi) 
7) DPJ President Hatoyama says he will explain to President Obama 
his party's stance on not allowing nuclear weapons into Japan 
(Sankei) 
8) Hatoyama stresses need for Status of Forces Agreement to be 
revised (Nikkei) 
 
Election surveys: 
9) Mainichi in survey estimates that Liberal Democratic Party (LDP) 
could drop from 300 seats to around 100 in upcoming Lower House 
election (Mainichi) 
10) Nikkei opinion survey finds the LDP's support base unraveling 
(Nikkei) 
11) Yomiuri poll finds that a DPJ-centered administration is most 
favored by the electorate (Yomiuri) 
12) Democratic Party of Japan (DPJ) analysis sees 100 districts as 
being close races with the LDP (Nikkei) 
13) Campaign trail: Trying to get back in the game, the LDP goes on 
the attack against the DPJ in Sunday's campaign (Mainichi) 
14) Hatoyama will constrain issuance of new deficit bonds (Nikkei) 
 
 
(MHIX090824) 
 
FOREIGN AND SECURITY AFFAIRS 
 
1) Suprapartisan lawmakers plan international Afghanistan 
peace-building conference in Tokyo in November 
 
ASAHI (Page 1) (Full) 
August 22, 2009 
 
A Japanese suprapartisan parliamentary group will hold an 
international conference on peacemaking in Afghanistan in Tokyo in 
late November. Japan plans to demonstrate its eagerness to promote 
diplomatic efforts to build peace in Afghanistan and continue 
assistance for that nation. At the conference, participants will 
discuss solutions to complicated problems involving religion and 
terrorism in light of the current stalemate in the fight against 
terrorism in Afghanistan to which the U.S. has dispatched military 
troops to combat ongoing terrorism by Islamic extremists. 
 
The conference will be jointly sponsored by the Japan committees of 
the Parliamentarians for Global Action (PGA) and the World 
Conference of Religions for Peace (WCRP). The sponsors expect to 
bring together representatives from the Afghan government; the 
United Nations; Pakistan, whose border is a breeding ground for 
 
TOKYO 00001944  002 OF 009 
 
 
armed insurgents; Saudi Arabia, which has acted as mediator in civil 
wars; religious leaders from various countries; and others. 
 
Former Finnish President Martti Ahtisaari, who won the Nobel Peace 
Prize for 2008 for working to end conflicts in troubled spots around 
the world, is likely to chair the conference. The sponsors are 
bearing in mind the possibility of conducting a dialogue with 
moderate Taliban elements in an effort to bring about peace in 
Afghanistan. They expect Ahtisaari, who took the initiative in the 
comprehensive peace process involving all parties concerned in 2005 
in the Aceh dispute in Indonesia, to demonstrate his skills. 
 
The list of names on the PGA Japan Committee before the dissolution 
of the House of Representatives included (then) Lower House speaker 
Yohei Kono, a former foreign minister of the Liberal Democratic 
Party, Democratic Party of Japan (DPJ) President Yukio Hatoyama, and 
others. The DPJ has looking into pursuing active diplomacy toward 
peace for Afghanistan to replace the ongoing Maritime Self-Defense 
Force's refueling operation in the Indian Ocean. DPJ lawmakers have 
been deeply involved in preparations for the planned conference. In 
the event that a DPJ government is inaugurated, the conference will 
be strongly linked to its diplomatic policy. 
 
2) Government to set up 100 billion yen infrastructure fund for 
Asia 
 
YOMIURI (Page 1) (Abridged slightly) 
August 24, 2009 
 
The Economy, Trade, and Industry Ministry has decided to set up a 
government-led fund that will be invested in improvement of 
infrastructure, such as railways, power, and water-supply 
facilities, in other Asian countries. 
 
Since the financial crisis and the global recession last fall, the 
flow of investment funds to many Asian countries has declined. The 
purpose of the Japan-led infrastructure fund is to provide funds to 
countries that lack capital and the necessary support to maintain 
steady economic growth. The fund also will encourage Japanese 
economies to make efforts to tap the growth of other Asian 
countries, now that the domestic market in Japan has started to 
plateau due to the increasingly aging population and a fall in the 
number of children born. 
 
In addition to cash from domestic pension funds, life insurance 
companies, other institutional investors, and government-affiliated 
financial institutions, the ministry is considering bringing in 
foreign funds, such as oil money from the Middle East, for the 
infrastructure fund. 
 
The ministry plans to launch the infrastructure fund in fiscal 2010 
with more than 100 billion yen, and to then expand it. The ministry 
is planning to set up an expert study group for the project in 
September that will be tasked with promoting the fund's 
realization. 
 
Until now, Japan has mainly used public funds, such as official 
development assistance, to support social overhead capital 
investment in emerging and developing countries. As such, one 
notable difference in the proposed infrastructure fund is that it 
also makes use of funds from the private sector. 
 
 
TOKYO 00001944  003 OF 009 
 
 
Possible destinations of the infrastructure funds the ministry has 
in its mind includes social overhead capital investments in Hanoi, 
Jakarta, and the regions that stretch from Chennai to Bangalore, two 
midsize cities in southern India. 
 
If the infrastructure fund is realized, Japan will expect certain 
benefits to flow from its investments, such as improved 
opportunities for Japanese firms to regarding receiving orders tied 
to infrastructure-linked businesses or easier access for Japanese 
manufacturers and retailer chains to expand into those countries' 
markets. 
 
3) Government to inject ODA funds in less profitable works in 
infrastructure projects in developing countries 
 
NIKKEI (Page 1) (Excerpts) 
August 23, 2009 
 
The government has decided to introduce a new scheme to assist 
infrastructure construction in developing countries in cooperation 
with the private-sector capital by using its official development 
assistance (ODA) funds. The government plans to inject yen loans in 
less profitable works while having private companies invest in more 
profitable parts in a large-scale project. The aim is to reduce 
private firms' financial burden in pursuing more effective 
assistance. By reducing risks in projects, the government will back 
up private firms' advancement overseas. 
 
After studying risk-management methods, the government will 
introduce the new scheme within this fiscal year. The Foreign 
Ministry has taken the view that the nation's basic principles on 
aid will not change regardless of the outcome of the Aug. 30 House 
of Representatives election. 
 
The "viability gap funding" scheme - to classify a project and cover 
less profitable parts with public funds - is expected to make the 
project more profitable as a whole. 
 
In an infrastructure project for physical distribution, for 
instance, yen loans are used for low-margin areas, such as 
expropriation of land and land readjustment, while private capital 
would be invested in high-margin areas, such as road construction. 
 
4) Government eyes review of aid to Northern Territories to shift 
weight from provision of goods to human-resource training 
 
NIKKEI (Page 2) (Full) 
August 23, 2009 
 
The government is eyeing a review of its assistance program for the 
four Northern Territories starting next fiscal year. The Russian 
government notified Japan early this month of its decision to no 
longer receive pharmaceuticals and other goods from Japan. Following 
this, the government has decided to suspend the provision of goods, 
which suggests emergency aid, starting next fiscal year and instead 
offer more assistance in soft areas such as human-resource training. 
Based on the view that some residents on the islands are still 
seeking aid from Japan, the government intends not to reduce the 
scope of the aid program. 
 
The Japanese government's assistance program is composed of three 
projects: (1) provision of goods; (2) human-resource development, 
 
TOKYO 00001944  004 OF 009 
 
 
such as nurses; and (3) acceptance of patients from the islands. The 
Russian government unilaterally notified the Japanese Embassy in 
Moscow early this month that it will no longer receive goods. 
 
The government has set aside about 15 million yen for the provision 
of goods, but this amount will be allocated to measures to foster 
human resources in the next fiscal year. It intends to keep the 
current annual budget amounting to approximately 50 million yen 
unchanged. 
 
5) Norway, Netherlands to participate in Asia anti-piracy pact 
 
TOKYO SHIMBUN (Top play) (Slightly abridged) 
Evening, August 22, 2009 
 
Norway, a Scandinavian country, will likely become a member of the 
Regional Cooperation Agreement on Combating Piracy and Armed Robbery 
in Asia (ReCAAP) initiated by Japan for joint anti-piracy operations 
by Asian countries. Norway will be the first member state from 
outside Asia. The Netherlands is also considering joining the pact, 
which means the Japan-led framework that has been effective against 
piracy in Asia will expand even to Europe. 
 
ReCAAP was proposed by then Prime Minister Junichiro Koizumi in 2001 
after a cargo ship with a Japanese captain on board was hijacked by 
pirates in the Strait of Malacca. The agreement took effect in 2006. 
Its members consist of Japan, the Southeast Asian countries, India, 
South Korea, China, and others. A center for sharing information on 
pirates was set up in Singapore in 2006, and 15 officials from six 
countries, including officials from Japan's Ministry of Foreign 
Affairs (MOFA) and Japan Coast Guard, are stationed there. This 
center sends out information on piracy to the member states, which 
cooperate on arresting pirates, seizing their ships, and rescuing 
the victims. 
 
Indonesia and Malaysia, which were unsuccessful in their bids to 
host the center, are not yet members, but they cooperate at the 
working level by providing information and pursuing pirates. 
 
According to MOFA, Norway conveyed its interest in becoming a member 
to Singapore, which serves as the secretariat, last March. The 
group's rules say that membership will be rejected if there is 
opposition from existing members, but so far, there has been none. 
Therefore, Norway is likely to be accepted as a member before the 
end of 2009, at the earliest. The Netherlands has also indicated its 
desire to become a member in May 2008 and is currently in the 
process of building a domestic consensus. If Norway and the 
Netherlands become members, their ships navigating in the Strait of 
Malacca and other Asian waters will be able to obtain information on 
piracy. If these ships are attacked, coast guards and maritime 
police of the member states will cooperate in rescuing the ships, 
pursuing the pirates, and arresting them through a request from the 
ReCAAP center. 
 
6) Protest rally against port call by Nimitz 
 
ASAHI Kanagawa Edition (Page 37) (Full) 
August 23, 2009 
 
Two hundred people gathered in Verny Park in Yokosuka, Kanagawa 
Prefecture, to protest a call by the nuclear-powered aircraft 
carrier USS Nimitz.  They were members of peace groups and labor 
 
TOKYO 00001944  005 OF 009 
 
 
unions in and outside of the prefecture. After the rally they 
marched near the U.S. Navy Base in Yokosuka. 
 
The Nimitz is scheduled to call at Yokosuka Aug. 24-28 to give its 
crew rest. "The nuclear-powered aircraft carrier George Washington 
is not enough for the war in Afghanistan," commented Mineyuki Uno, 
chairman of the Center for the Kanagawa Peace Front. "Yokosuka may 
become the home port of two nuclear-powered aircraft carriers." 
 
7) DPJ's Hatoyama will seek to persuade President Obama on issue of 
not bringing nuclear arms into Japan 
 
SANKEI (Page 5) (Abridged) 
August 24, 209 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama appeared on 
Fuji TV's "New Hodo 2001" and TV programs on TV Asahi and NHK on 
August 23. Discussing the three non-nuclear principles, he said that 
after taking over the administration, he will meet with U.S. 
President Barack Obama and seek to persuade him not have nuclear 
weapons brought into Japan. 
 
Regarding an alleged secret agreement on U.S. military vessels 
carrying nuclear arms passing through Japan or calling on its ports, 
Hatoyama said that he will disclose the facts to the people after 
conducting an investigation in the U.S. On the issue of the U.S. 
forces' Futenma Air Station, he said, "Basically, this base should 
be relocated outside Okinawa, and if possible, outside Japan." He 
indicated that he would like to resolve this issue through a meeting 
with the U.S. President. 
 
8) DPJ's Hatoyama says SOFA revision necessary at debate of six 
party leaders on foreign and security policy 
 
NIKKEI (Page 2) (Full) 
August 22, 2009 
 
The leaders of six ruling and opposition parties discussed foreign 
and security policy during the recording for a TV Tokyo program on 
August 21. Discussing Japan-U.S. relations, Democratic Party of 
Japan (DPJ) President Yukio Hatoyama stressed that: "President Obama 
has shifted to a policy of dialogue. This is a good time to build an 
equal Japan-U.S. relationship." He also said that "basically," the 
Japan-U.S. Status of Forces Agreement (SOFA) "needs to be revised." 
He indicated that if the DPJ takes over the reins of government, 
SOFA will be examined within a comprehensive review of the 
Japan-U.S. alliance. 
 
Commenting on the fact that Japan is protected by the U.S. nuclear 
umbrella, Hatoyama said: "Considering the situation in North Korea, 
this is inevitable. We are not advocating that Japan should leave 
the umbrella right away." 
 
Prime Minister Taro Aso (Liberal Democratic Party president) noted 
that the DPJ has indicated that it will ask the U.S. not to use 
nuclear arms for a preemptive strike and said: "It is not realistic 
to ask Japan's ally, the U.S. not to use nuclear weapons first in 
consideration of Japan's security." He cited North Korea's nuclear 
tests and other activities and indicated his opposition to the DPJ's 
proposition. 
 
ELECTION SURVEYS 
 
TOKYO 00001944  006 OF 009 
 
 
 
9) Poll: DPJ likely to garner more than 320 seats, LDP may fell 
below 100 
 
MAINICHI (Top play) (Abridged) 
August 22, 2009 
 
Ahead of the upcoming 45th general election to be held Aug. 30 for 
the House of Representatives, the Mainichi Shimbun conducted an ad 
hoc nationwide public opinion survey from Aug. 19, the day after the 
election was announced, through Aug. 21, in order to look into the 
situation in campaign battles (for 480 seats, broken down into 300 
seats in single-seat electoral districts and 180 seats in 
proportional representation blocs). According to findings from the 
survey, the Democratic Party of Japan is leading the race in most of 
the nation's 300 single-seat constituencies, where the DPJ has 
fielded 271 candidates. The DPJ is likely to garner a total of more 
than 320 seats, including those for proportional representation. 
Depending on the number of candidates elected in single-seat 
constituencies, all DPJ candidates may be elected, including those 
who are defeated in single-seat constitutions but elected in 
proportional representation blocs. The Liberal Democratic Party, 
which won a landslide victory in the 2005 general election for the 
House of Representatives, is doing poorly both in single-seat 
constituencies and in proportional representation blocs. The LDP is 
even likely to fall below 100 seats. 
 
In the survey this time, about 40% of respondents in the nation's 
single-seat constituencies and about 20% of them in its proportional 
representation blocs did not clarify their voting behavior. Given 
this, the situation could become fluid. 
 
The DPJ is gaining momentum to sweep all single-seat constituencies 
of Hokkaido, Iwate, Niigata, Fukui, Yamanashi, Nagano, Aichi, Shiga, 
Nara, Wakayama, and Nagasaki, looking for a chance to garner 230 
seats or more. The DPJ is leading all other political parties in all 
11 proportional representation blocs and is likely to secure over 90 
seats. 
 
The DPJ has indicated that it would form a coalition government with 
the Social Democratic Party and the People's New Party. However, if 
the DPJ wins a landslide victory with two thirds (320 seats) or more 
of the seats in the Diet's lower chamber, the DPJ can take a 
single-party vote second time on its bills even though they are 
voted down in the House of Councillors. 
 
10) Poll: LDP support base unraveling 
 
NIKKEI (Page 2) (Abridged) 
August 22, 2009 
 
With the election for the House of Representatives just around the 
corner, the Liberal Democratic Party's support base is becoming 
shaky. Among LDP supporters, those who answered in a Nikkei poll 
taken Aug. 18-20 that they would vote for the LDP accounted for no 
more than 75%, with 10% saying they would vote for the Democratic 
Party of Japan. Among DPJ supporters, 89% said they would vote for 
the DPJ. 
 
In the poll, the public approval rating for the Aso cabinet was 20%, 
the same as in a previous spot survey taken in late July. The 
disapproval rating was 62%, down 9 points. In the breakdown of 
 
TOKYO 00001944  007 OF 009 
 
 
public support for political parties, the DPJ stood at 38%, down 2 
points. The LDP also dropped 1 point to 29%. Recent polls show a 
similar trend of public support for the DPJ and the LDP. In the 
public preference of political parties, however, the gap between the 
two parties is larger than that between their support rates. 
 
What can be seen in particular from the poll is that a certain 
proportion of LDP supporters tends to vote for the DPJ. In all of 
the nation's 11 proportional representation blocs, 9-11% of LDP 
supporters said they would vote for the DPJ. 
 
Meanwhile, floating voters with no particular party affiliation are 
expected to have a great impact on the election's outcome. Among 
them, 12% chose the LDP for proportional representation, with 25% 
opting for the DPJ. The DPJ is overwhelming the LDP in the general 
election more than the gap between the two parties' support ratings 
shows. 
 
11) Poll: "DPJ-led coalition" takes top position for 1st time 
 
YOMIURI (Page 1) (Abridged) 
August 22, 2009 
 
Ahead of the upcoming general election for the House of 
Representatives, the Yomiuri Shimbun conducted a telephone-based 
nationwide public opinion survey on Aug. 18-20. In the survey, 
respondents were asked which political party they would vote for in 
their proportional representation blocs. In response to this 
question, 40% answered that they would vote for the Democratic Party 
of Japan, with 24% saying they would vote for the Liberal Democratic 
Party. There was no marked change from the last survey taken Aug. 
4-6. In the last survey, the DPJ was at 41% and the LDP at 24%. 
Respondents were also asked which political party's candidate they 
would vote for in their single-seat constituencies. To this 
question, 38% chose the DPJ (39% in the last survey), with 25% 
picking the LDP (24% in the last survey). The survey this time also 
showed a similar trend. 
 
The DPJ has been leading all other political parties in campaigning 
for the general election announced Aug. 18. In the public preference 
for a desirable government, "DPJ-led coalition government" accounted 
for 27% (24% in the last survey), topping all other choices for the 
first time. "New framework through political realignment," which 
topped all other choices in the three previous surveys, was at 25% 
(30% in the last survey), followed by "LDP-DPJ grand coalition" at 
24% (27% in the last survey) and "LDP-led coalition" at 16% (11% in 
the last survey). 
 
The Aso cabinet's support rate was 24.7% (21.6% in the last survey), 
and its nonsupport rate was 64.3% (69.0% in the last survey). In the 
breakdown of public support for political parties, the DPJ stood at 
33.2% (31.6% in the last survey), with the LDP at 26.9% (24.2% in 
the last survey). 
 
12) DPJ's analysis of general election: Election will be close race 
in 100 single-seat districts 
 
NIKKEI (Page 2) (Full) 
August 24, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama, Secretary 
General Katsuya Okada, Deputy President Ichiro Ozawa and other party 
 
TOKYO 00001944  008 OF 009 
 
 
leaders discussed the party's election strategy for the final stage 
of ongoing campaigning at party headquarters yesterday evening. They 
analyzed the outcomes of opinion polls conducted by media companies, 
and confirmed their policy to do everything in their power to win 
the race, predicting that there are about 100 single-seat 
constituencies in which its candidates and candidates on the Liberal 
Democratic Party's ticket will engage in close battles. 
 
The meeting was also attended by Deputy President Naoto Kan and 
Azuma Koshiishi, chairman of the party's caucus in the House of 
Councillors. After the session, Hatoyama sent emails to all DPJ 
candidates titled: "Don't let yourself be deluded. Let's claim a 
real victory!" In the emails, he said: "Although media polls show 
that we will win 300 seats, are you confident that you will win? Be 
aware of reality." 
 
13) LDP steps up criticism against LDP to get back in the game in 
general election, DPJ guards against letting advantage slip 
 
MAINICHI (Top play) (Excerpts) 
August 24, 2009 
 
On Aug.23, with one week left until the 45th House of 
Representatives election, political parties took to the streets to 
campaign for support and leading politicians appeared on TV talk 
shows. According to a Mainichi Shimbun poll on the predicted outcome 
of the upcoming general election, the Democratic Party of Japan 
(DPJ) will likely win 320 seats. Prime Minister Taro Aso (president 
of the Liberal Democratic Party (LDP)) stepped up criticism of the 
DPJ to overcome its inferior position in the campaign, while DPJ 
President Yukio Hatoyama stressed that his party will implement its 
campaign pledges (manifesto). The 40-day election campaign period -- 
which actually kicked off on July 21 when the Lower House was 
dissolved -- has now entered its final stage. 
 
Aso yesterday delivered speeches at four locations in Chiba 
Prefecture and attended a meeting hosted by students in Tokyo. He 
played up the achievements of economic stimulus by the LDP-New 
Komeito coalition administration in his stumping speeches. He 
criticized the DPJ's pledge to create a child-allowance system and 
to make all highway tolls free. He said: "It is unacceptable to 
pledge something that will bring about a pork-barrel society." He 
then pointed out the inconsistency of the DPJ's foreign and security 
policies, saying: "Deliberations on in the House of Councillors on 
(bill on cargo inspections against North Korean ships) were dragged 
out and the bill was scrapped. I think North Korea was pleased." 
 
Hatoyama gave his speeches in five locations in Tokyo. Criticizing 
the LDP-New Komeito government for its politics relying on 
bureaucrats created pension and medical problems, he emphasized: "In 
an attempt to lead politics to the right direction, the DPJ will 
have to take over the reins of government at any cost." With media 
reports that the DPJ could win by a landslide, he said: "We should 
be on guard to the last," repeatedly making such remarks. 
 
14) Hatoyama: No increase in issuance of government bonds for fiscal 
2010 
 
NIKKEI (Page 2) (Excerpts) 
August 24, 2009 
 
Democratic Party of Japan (DPJ) President Yukio Hatoyama said on a 
 
TOKYO 00001944  009 OF 009 
 
 
TV Asahi program: "We won't increase (the issuance of government 
bonds). If we did, the country would fall apart," when asked whether 
the issuance of government bonds in the budget for fiscal 2010 would 
be increased (should his party assume the political helm). His 
remarks were taken as a promise to curtail issuances of government 
bonds in the budget for fiscal 2010, as well as the extra budget, to 
a level less than the amount issued in fiscal 2009. The government 
has already issued bonds totaling  44 trillion yen. 
 
Asked about a resolution of the loss of millions of pension records, 
Hatoyama said: "We won't be able to resolve it 100 percent." He 
continued: "If receipts and evidence are required, the problem will 
not be resolved. We will have to put an end to the issue by setting 
certain conditions." 
 
The DPJ includes in its manifesto a pledge to concentrate on 
resolving the pension record issue for two years. He said: "We will 
immediately start" checking the pension records on computer and 
books. He also said: "We won't be able to take too much time for 
it," stressing the need for lump-sum compensations. 
 
ROOS