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UNCLAS SECTION 01 OF 09 TOKYO 001977 
 
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 08/27/09 
 
INDEX: 
 
(1) Comparison between foreign and national security policies in 
LDP, DPJ manifestos (Tokyo Shimbun) 
 
(2) "Seiron" column: Priority is to break away from 
bureaucrat-controlled cabinet system (Sankei) 
 
(3) Comparing manifestos: 1,000 SDF personnel deployed overseas 
(Tokyo Shimbun) 
 
(4) Sustainability of economic systems, equal Japan-U.S. 
relationship cited as issues for new administration (Mainichi) 
 
(5) MAFF to lift ban on investment in agricultural production 
corporations by investment funds (Sankei) 
 
(6) Editorial: DPJ pledge on Japan-U.S. FTA; Find ways to 
materialize pact with rice export in mind (Sankei) 
 
ARTICLES: 
 
(1) Comparison between foreign and national security policies in 
LDP, DPJ manifestos 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 26, 2009 
 
During the Cold-War period after the end of World War II, Japan 
chose the option of depending on the U.S. in protecting itself. The 
Cold War ended 20 years ago. Japan is now facing new threats, such 
as international terrorism and nuclear development by North Korea 
and Iran. What foreign and security policies should Japan take in 
such a new international environment? The key lies in distance from 
the U.S. 
 
The Liberal Democratic Party's (LDP) basic foreign policy is to make 
Japan-U.S. relations closer. Its policy manifesto for the upcoming 
House of Representatives election pledges to strengthen the 
Japan-U.S. alliance and to prepare a structure to enable the two 
countries to jointly combat threats from North Korea and other 
countries. 
 
The manifesto notes: "In order to protect Japan from a ballistic 
missile from North Korea, it should be made possible for Japan to 
intercept a ballistic missile heading toward its ally, the U.S., or 
protect U.S. warships under the missile defense (MD) system." The 
LDP has thus come out with the stance of allowing Japan to invoke 
the right to collective self-defense to protect the U.S. 
 
Japan has prohibited invoking the right to collective self-defense 
except for a case of Japan being attacked by enemies. In short, 
Japan has defined "sole self-defense" as its national policy. Based 
on this policy, the government has banned the exercise of the right 
to collective self-defense under its interpretation of the 
Constitution. 
 
The LDP has called for changing the nation's postwar defense policy 
and lifting the long-standing ban as part of efforts to deepen 
cooperation with the U.S. 
 
The manifesto specifies that Japan will continue the Maritime 
 
TOKYO 00001977  002 OF 009 
 
 
Self-Defense Force's (MSDF) refueling mission in the Indian Ocean. 
Regarding antipiracy efforts in waters off Somalia, it says: "Japan 
should continue antipiracy efforts in light of international 
cooperation and national interests." Amid North Atlantic Treaty 
Organization's (NATO) countries participating in the fight against 
terrorism, the manifesto underscores the need for Japan to play a 
reasonable role as the U.S.'s ally. 
 
Prime Minister Taro Aso emphasized: "We are willing to strengthen 
the foundation of Japan's national security system so that Japan 
will be able to intercept a ballistic missile heading toward its 
ally, the U.S." 
 
In contrast, the Democratic Party of Japan (DPJ) is calling for 
emerging from the current policy of totally depending on the U.S. 
Its manifesto specifies: "To establish an equal Japan-U.S. 
relationship, the party will map out a proactive diplomatic 
strategy." This expression apparently reflects its view that Japan 
and the U.S. have not had an equal relationship. 
 
Specifically, the DPJ manifesto refers to reviews of the U.S. 
force-realignment plan agreed on between Japan and the U.S. and of 
future options for U.S. military bases. In addition, the manifesto 
proposes establishing an East Asia community, indicating the party's 
willingness to turn the current unqualified pro-American policy into 
a multi-polar foreign policy. 
 
Americans concerned have voiced concern, but DPJ President Yukio 
Hatoyama emphasized: "I will establish a relationship of trust with 
President Obama." By deepening relations between the leaders of the 
two countries, Hatoyama aims to obtain U.S. understanding (of his 
party's policies). 
 
The DPJ however leaves its foreign and national security policies 
vague in its manifesto. 
 
Hatoyama has said that Japan will end the refueling mission in the 
Indian Ocean when it expires next January. 
 
The manifesto also makes no reference to the right of collective 
self-defense. The party just noted in its policy index regarding the 
MD system: "We will study it in a comprehensive way, taking into 
account technical possibility, cost-effectiveness and other 
elements." 
 
With respect to the Japan-U.S. Status of Forces Agreement, the party 
also tones down the expression "proposal for a revision" to "look 
into a revision." 
 
On the assumption that it will be taking over the reins of 
government, the DPJ has begun to a pragmatic policy approach but is 
apparently attempting to put aside issues over which views are split 
in the party. 
 
The New Komeito has proposed maintaining the Japan-U.S. alliance in 
principle. But the party is negative about invoking the right to 
collective self-defense. The party vows to reduce the defense budget 
by 500 billion yen over the next five years. 
 
The Japanese Communist Party in its manifesto proposes scrapping the 
Japan-U.S. military alliance and concluding a friendship treaty with 
the U.S. in a bid to establish an equal bilateral relationship. 
 
TOKYO 00001977  003 OF 009 
 
 
 
The Social Democratic Party's manifesto calls for immediately 
pulling MSDF troops engaged in the refueling mission out of the 
Indian Ocean. It also lays down a plan to legislate the three 
nonnuclear principles. It further proposes creating an ombudsman 
system for SDF officials. 
 
The People's New Party, which is fielding candidates in Okinawa 
Prefecture, pledges to review the U.S. force realignment plan. 
 
(2) "Seiron" column: Priority is to break away from 
bureaucrat-controlled cabinet system 
 
SANKEI (Page 7) (Excerpts) 
August 27, 2009 
 
Taro Yayama, political commentator 
 
"Basic law" emasculated 
 
The significance of the forthcoming election lies solely in whether 
the change from a bureaucrat-controlled cabinet system to a 
parliamentary democracy under which politicians hold the initiative 
in political administration can be accomplished. This will be the 
first such political reform since the Meiji era. While Article 41 of 
the Constitution stipulates that the Diet is the highest organ of 
state power, in reality, politics has been managed in such a way 
that the bureaucrats have control even over the legislature. The 
upcoming general election is supposed to change this system, which 
can hardly be called a democracy, to the democratic system as 
stipulated in the Constitution. 
 
The Abe cabinet had begun to take steps to reform the civil service 
system, and under the Fukuda administration, the "basic law on civil 
service system reform" was finally enacted, thanks to the efforts of 
Minister for Administrative Reform Yoshimi Watanabe. This law aims 
to: (1) eradicate amakudari (golden parachutes); and (2) break away 
from bureaucrat-controlled politics. 
 
The reason why amakudari has to be eliminated is because special 
public corporations, independent administrative agencies, and other 
bodies are created to accommodate bureaucrats who are urged to leave 
their jobs when they are around 50 years old. At present, a total of 
4,500-4,600 such organizations regularly take in 27,000-28,000 
retired bureaucrats. These bodies are purely meant to benefit 
retired career bureaucrats and no consideration is given to whether 
they are useful to society or if tax money is being spent 
unnecessarily. 
 
The key to breaking away from bureaucrat-controlled politics is 
whether the political authorities hold the right to appoint 
bureaucrats. The "basic law" stipulates the creation of a personnel 
bureau under the cabinet for unified performance appraisal of some 
600 senior officials from all ministries. However, the law has been 
emasculated due to the Aso cabinet's attempt to please the 
bureaucrats. A bill on creating the personnel bureau was eventually 
scrapped without any serious deliberation. 
 
Difficult to realize local autonomy 
 
I believe that the prospects for civil service reform will be 
brighter if the Democratic Party of Japan (DPJ) takes over the reins 
 
TOKYO 00001977  004 OF 009 
 
 
of government rather than working with these lousy laws because this 
party has called for breaking away from bureaucrat-controlled 
politics and eradicating amakudari vigorously. 
 
President Yukio Hatoyama had once taken a tough stance, declaring 
that "bureau chiefs who are at odds with the cabinet will all be 
asked to submit their resignations," but his determination has since 
been shaken, as illustrated by a recent statement that, "It appears 
that legally, this will be difficult to do." 
 
Under the present system, the dismissal or demotion of civil 
servants requires the approval of the National Personnel Authority 
(NPA). This NPA was created in exchange for depriving the civil 
servants the right to strike or engage in wage negotiations. Japan 
is the only country among the industrialized countries that has a 
body like this. Actually, the International Labor Organization (ILO) 
has recommended repeatedly that the NPA should be abolished and 
civil servants given the right to strike. 
 
However, Rengo (Japanese Trade Union Confederation), with the 
Government and Public Workers' Union under it, does not want to lose 
the NPA as the price for giving up the right to strike. This is 
because under the current system the wages of civil servants are 
increased to levels on par with the private sector without their 
having to do anything, so this is a perfect system for them. This 
system will also make local autonomy - another policy goal of the 
DPJ - difficult to accomplish. 
 
Rengo, which does not want to give up its vested interests, and the 
NPA are actually working together behind the scenes to emasculate 
and fudge civil service reform. NPA President Masahito Tani even 
boycotted the final meeting on reform measures presided over by 
Prime Minister Taro Aso. 
 
The DPJ is planning to create a "national strategy bureau" directly 
under the prime minister which will be responsible for deciding on 
the outline of the budget. "Cabinet committees" will be formed for 
each major policy issue. The party also plans to set up an 
"administrative reform council." However, some party officials in 
charge of administrative reform are already saying at this early 
stage that it is better not to come into conflict with the 
bureaucrats, get along with the Ministry of Finance, and coexist 
nicely with Rengo. 
 
There is no lack of ways to find fault with the DPJ's policies, not 
only in foreign affairs and security, but also in domestic politics. 
However, the important thing is that Japan needs to get itself onto 
the right path toward a parliamentary democracy. 
 
The DPJ should bear in mind that the verdict on its administration 
will depend on the first three months. It is important that the 
party stands firm on its principles. 
 
(3) Comparing manifestos: 1,000 SDF personnel deployed overseas 
 
TOKYO SHIMBUN (Page 1) (Full) 
August 26, 2007 
 
Nearly 1,000 Self-Defense Force (SDF) personnel are now deployed 
abroad. About 350 of the 1,000 personnel are engaged in the 
refueling of U.S. and other countries' warships in the Indian Ocean 
and about 400 are protecting ships of any nationality from pirate 
 
TOKYO 00001977  005 OF 009 
 
 
attacks in waters off Somalia. Approximately 150 Ground Self-Defense 
deployed in the Republic of Djibouti monitor pirates by patrol 
aircraft. 
 
The government believes the overseas deployment of as many as 1,000 
SDF personnel serves Japan's national interest. It is especially 
conscious of the United States and believes that strengthening the 
Japan-U.S. alliance is necessary to stave off the threat of North 
Korea. 
 
The refueling mission in the Indian Ocean began in conjunction with 
the U.S. invasion of Afghanistan in response to terrorist attacks 
against America. Through July 2009, Japan has provided 12 countries 
with 510,000 kiloliters of fuel worth 24 billion yen free of charge. 
 
 
Although antipiracy operations in waters off Somalia are to protect 
security in the Gulf of Aden, a commercial artery for Japan, it is 
true that Tokyo fell into step with Washington. 
 
The antipiracy mission has often been criticized as lacking 
transparency. In 2007, it was discovered that the government had 
covered up an error in the amount of fuel Japan had supplied to U.S. 
ships. There still remains the allegation that fuel was rerouted to 
an Iraq-bound U.S. aircraft carrier and thereby diverted for the 
war. Originally the government sent escort ships to waters off 
Somalia by stretching the interpretation of the 
maritime-policing-action provision of the SDF Law beyond its 
original scope. 
 
Against the background of the inauguration of the Obama 
administration, what sort of relationship will Japan build with 
America? What will become of the expanding role of the SDF overseas? 
These are issues for Japan as a member of the international 
community. 
 
The Liberal Democratic Party (LDP) has called for continuing the 
refueling mission in the Indian Ocean. It has also taken steps to 
gain approval of collective self-defense, prohibited by the 
Constitution, to strengthen the Japan-U.S. alliance. The Democratic 
Party of Japan has advocated building an equal Japan-U.S. alliance 
relationship. It does not plan to extend the refueling mission 
beyond next January. 
 
(4) Sustainability of economic systems, equal Japan-U.S. 
relationship cited as issues for new administration 
 
MAINICHI (Page 9) (Full) 
August 26, 2009 
 
Atsuro Kurashige, commentary writer 
 
Newspapers are wicked. Their opinion polls predict that the 
Democratic Party of Japan (DPJ) will win 300 seats, and this 
information is being circulated as if it's a fact. The voters may 
decide to adjust their voting behavior to prevent the DPJ from 
"winning too much," but the overall situation will not change. We 
should rather be thinking about what will happen after the 
election. 
 
My image of the probable outcome of the August 30 election is a 
belated change of administration. The reason is that the present 
 
TOKYO 00001977  006 OF 009 
 
 
single-seat-district-centered election system was introduced in 1996 
to facilitate the creation of two major parties between which power 
alternates. By reducing the winner of the most number of votes in 
each electoral district to one, the system is supposed to enhance 
and reinforce the popular will at a given time. The election called 
by Prime Minister Junichiro Koizumi in 2005 over postal 
privatization is an example of an election reinforcing the 
administration. 
 
The problem is not only in the election system. The raison d'etre 
and governing ability of the Liberal Democratic Party (LDP) as a 
ruling party embracing a policy of anti-communism and high economic 
growth has declined. Personally, I believe that the LDP's historical 
mission ended after the end of the Cold War and the bursting of the 
economic bubble in 1990. 
 
In fact, the non-LDP administration of Morihiro Hosokawa came into 
being in 1993, and even after the LDP's return to power, it has been 
able to win only around 230 seats (239 in 1996, 233 in 2000, and 237 
in 2003) - failing to win a majority of seats - in all subsequent 
House of Representatives elections, except for the 2005 election 
over postal privatization. The secret of its hanging on to power 
lies in co-opting the Diet seats and votes of New Komeito and its 
knowhow in staging "quasi change of administration" by rotating 
power amongst its own people. This mechanism fell apart with the 
turnover of the premiership three times in a row in the three years 
after the Koizumi administration. The "DNA relay" of passing the 
administration from the grandson of a former prime minister to a son 
of a former prime minister, and then to another grandson of a former 
prime minister exposed the shortage of talent in the party. 
 
The DPJ's ability to improve its governing ability both in terms of 
policy and personnel is also a major factor. Its present manifesto 
is particularly well written. I do not think the proposal to pay out 
5 trillion yen worth of child allowance is pork barrel. This is a 
policy that responds to a graying society with a low birth rate by 
focusing the distribution of the limited resources on child rearing. 
It is a good policy based on choice and focus. The same is true of 
income subsidies for farming households, toll free expressways, and 
free high school education. The idea of making payments directly to 
the people without channeling through the various bodies serving as 
employers of retired bureaucrats is a sound one. Since the DPJ is 
saying that the 17 trillion yen needed to implement all these 
policies can be funded by eliminating wasteful spending under the 
system of bureaucratic accounting, well, let's see how it works. 
 
What is happening is just a natural consequence of the guidance 
provided by the election system and the rise and fall of the LDP and 
the DPJ. This should not come as a surprise because a change of 
administration through elections is a normal feature of a democratic 
state. 
 
What we need to give serious thought to is how to make this change 
of administration successful from a level-headed and mature 
viewpoint. Let us recall the Hosokawa administration 16 years ago 
which demised in less than one year. This administration made two 
fatal mistakes. First, its setting of the political agenda (the 
proposal on national welfare tax and so forth) after the 
long-cherished dream of election system reform was fulfilled was not 
well thought out. There was a dual structure of power under which 
Ichiro Ozawa (then leader of the defunct Shinseito) was more 
powerful than Prime Minister Hosokawa, and this gave rise to 
 
TOKYO 00001977  007 OF 009 
 
 
confusion. 
 
The present situation is similar to the dual power structure in 
¶1993. Some 100 "Ozawa children" will be born after the Lower House 
election. Ozawa will again be increasing the number of Diet members 
under his influence in the House of Councillors election next year 
since he will preside over the campaign. The question is whether 
Ozawa, who will control a majority in both houses of the Diet, will 
be stupid enough to repeat the same mistake. 
 
In any case, the beauty of a change of political regime lies in the 
opportunity to set the mid- and long-term policy agenda for issues 
that can only be resolved by a political decision which previous 
administrations failed to tackle and in implementing this agenda. I 
would like to cite two examples here for which the DPJ manifesto has 
already proposed a clear policy direction. 
 
First, making the economic systems sustainable. Japan's economic 
development model of depreciation of the yen, reliance on foreign 
demand, and focusing on growth is facing a formidable wall due to 
the rise of the newly emerging economies and such constraints as the 
earth environment and energy. How do you foster a sense of happiness 
not reliant on the size of the GDP by taking advantage of the strong 
yen and propelling domestic demand proficiently? Making the social 
security systems sustainable will also be a tremendous job. Even a 
child can figure out that the present systems will collapse as the 
society moves from one where 10 working-age citizens support one 
elderly person to one where three working-age citizens support one 
elderly person. This will be a rare opportunity for the ruling and 
opposition parties to engage in patient discussions under the DPJ's 
leadership. 
 
Second, developing an equal Japan-U.S. relationship. Former Prime 
Minister Shigeru Yoshida's policy of entrusting foreign and security 
policies to the United States and focusing on economic development 
has produced an unprecedented success story of rapid economic growth 
in the world. However, it is also a fact that this has seriously 
degraded Japan's independence as a country. There needs to be a 
review to find a good balance. So, what is to be done? The key 
issues will be how to handle U.S. military bases in Japan and 
enhancing Japan's diplomatic capability. Numerous issues that are 
already in progress, including the nuclear umbrella and Futenma 
relocation, need to be tackled, but I believe the key concept of a 
"close and equal relationship" with the U.S. is valid. The new 
administration may need wisdom and energy comparable to that during 
the Meiji Restoration and the postwar reconstruction. 
 
I would like to add one item not found in the manifesto: the 
regeneration of the LDP and a new start for this party. This is also 
indispensable for educating and disciplining the DPJ administration. 
How do we retain a core cadre of people for this purpose? This is 
another job for the voters. 
 
(5) MAFF to lift ban on investment in agricultural production 
corporations by investment funds 
 
SANKEI (Page 3) (Abridged slightly) 
August 27, 2009 
 
The Ministry of Agriculture, Forestry and Fisheries (MAFF) on August 
26 decided to set up a new system that will approve investment in 
agricultural production corporations by investment funds. Currently, 
 
TOKYO 00001977  008 OF 009 
 
 
only farmers and agriculture-related companies can invest in such 
corporations. MAFF aims to diversify means to procure funds 
available to agricultural production corporations in order to help 
them expand their business activities and advance into new 
businesses, by enabling banks, security houses, and institutional 
investors to invest in them through investment funds. 
 
MAFF will incorporate in its general-account budget requests for 
fiscal 2010 to be submitted to the Finance Minister on August 31 a 
proposal for establishing an investment fund using Japan Finance 
Corporation's funds as a model case, and submit related bills needed 
to set up such a system to the regular session of the Diet next 
year. 
 
Agricultural production corporations are expected to play the role 
of strengthening the competitiveness of Japanese agriculture by 
urging farm households to expand their farming scale or companies to 
advance into the farm sector. However, investors in such 
corporations are limited due to the requirements for establishment 
stipulated under the Agricultural Land Act. In addition, if such 
corporations do business using rented farmland, they are unable to 
borrow money from banks as they have no collateral. As such, the 
means available to them for raising funds are extremely limited. For 
this reason, MAFF has determined that it is necessary to pave the 
way for direct investment in them through investment funds. 
 
Under the envisaged system, investment funds will not be given a 
voting right, which allows investors to become involved in 
management. However, there will be no limit to the amount of money 
they can invest. MAFF will also look into measures to curb 
investment funds' activities, by obligating them to notify it of 
their activities. It will also launch an investment fund as a model 
case by fiscal 2010 using Japan Finance Corporation's funds as a 
base and publicly seeking investors from the private sector. 
 
(6) Editorial: DPJ pledge on Japan-U.S. FTA; Find ways to 
materialize pact with rice export in mind 
 
SANKEI (Page 2) (Full) 
August 27, 2009 
 
Free trade agreement (FTA) policy is a major campaign issue in the 
Lower House election. The Democratic Party of Japan (DPJ) at first 
noted in its manifesto that if it came into power, it wanted to sign 
an FTA with the U.S. and promote liberalization of trade and 
investment. However, meeting opposition from agricultural 
organizations and criticism from Liberal Democratic Party (LDP) 
lawmakers that such a pact would destroy Japanese agriculture and 
farming communities, the DPJ has changed the wording to "will 
promote talks on such a pact." 
 
If this is its stance, it cannot be helped even if it is criticized 
as running about in confusion in pursuit of votes. How is it going 
to ensure consistency between trade policy and agricultural 
administration? It is clear from its haphazard approach that the DPJ 
has yet to sort out its stance to such essential issues. 
 
Japanese business circles have been wanting to bring about an FTA 
with the U.S. In particular, export-oriented industries are 
concerned that they would suffer a setback in price competition, 
since South Korea has already signed such a pact with the U.S. 
 
 
TOKYO 00001977  009 OF 009 
 
 
The U.S. is bound to ask for the total abolition of trade tariffs as 
a condition for entering into FTA talks. South Korea has agreed to 
scrap tariffs on more than 99 percent of trade items. Given the 
U.S.-South Korean FTA, Japan would have to decide on extensive 
agricultural and livestock market liberalization, if it is to sign 
such an accord with the U.S. The government therefore has been 
reluctant to go ahead with FTA talks with the U.S. 
 
However, agriculture should not remain an obstacle to trade talks 
forever. The LDP's manifesto also notes that it will proactively 
pursue an early settlement of talks at the World Trade Organization 
(WTO) and FTA talks. The DPJ has pledged to sign an FTA with the 
U.S., which could trigger moves to launch in-depth discussions on 
trade liberalization and the protection of agriculture, issues that 
have thus far been considered taboo. 
 
The focus of argument is to settle such problems as abandoned 
farming land, the aging of a farming population and a serious lack 
of young farmers to work the fields when their elders retire. It is 
possible to export Japan's good farm products, such as rice and 
apples, if Japanese farmers improve their competitiveness, by 
finding ways to improve production efficiency. 
 
However, implementing policies is intertwined with ensuring funding 
sources. The DPJ has pledged to compensate farm households' income 
to cover losses incurred by farmers due to gaps between the cost of 
the cultivation of rice and other crops and the sales prices of 
such, after setting a goal of production volume. However, there is 
concern that such a cost could increase unlimitedly, depending on 
movements of the prices of agricultural products. 
 
Free trade is the basis of growth, and the WTO and the FTA are a 
means to achieve that end. As such, it is not wise for Japan to put 
on hold these issues. A trade strategy, which is linked to the 
planning of agricultural revitalization as a set, is a key issue, 
which the next administration cannot avoid. 
 
ROOS