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UNCLAS SECTION 01 OF 04 TOKYO 002175 
 
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 09/17/09 
 
INDEX: 
 
(1) Hatoyama cabinet inaugurated: Vows to end bureaucrat-led 
politics in first conference as premier; Budget to be compiled 
before year's end; Intends to build relationship of trust with U.S. 
(Nikkei) 
 
(2) Seats in the Upper and Lower Houses (Nikkei) 
 
(3) Deputy Prime Minister Kan to serve as first acting prime 
minister, Chief Cabinet Secretary Hirano as second (Nikkei) 
 
(4) Editorial: Prime Minister Hatoyama should address expectations 
of people who hoped for change of government (Nikkei) 
 
ARTICLES: 
 
(1) Hatoyama cabinet inaugurated: Vows to end bureaucrat-led 
politics in first conference as premier; Budget to be compiled 
before year's end; Intends to build relationship of trust with U.S. 
 
NIKKEI (Top Play) (Excerpts) 
September 17, 2009 
 
The Yukio Hatoyama cabinet was launched on the evening of Sept. 16. 
The government is a three-party coalition government consisting of 
the Democratic Party of Japan (DPJ), the Social Democratic Party 
(SDP), and the People's New Party (PNP). This is the first 
inauguration of a non-Liberal Democratic Party (LDP) administration 
through an election in 16 years, since the Morihiro Hosokawa 
administration in 1993. The Hatoyama cabinet will now endeavor to 
realize its policy manifesto for the Lower House election under the 
slogan of ending bureaucrat-led politics. At his first press 
conference since taking office the prime minister announced, "I will 
grapple with the drafting of the fiscal 2010 budget according to a 
schedule that will enable its compilation before year's end." The 
prime minister at the first cabinet meeting presented a set of basic 
polices stipulating a framework for politician-led politics. During 
the discussion the prime minister and cabinet members agreed on the 
desired nature of their relationship with bureaucrats. 
 
Hatoyama became the nation's 60th prime minister for the 93rd 
cabinet in elections to nominate the prime minister at plenary 
sessions of the Lower and Upper Houses held on the afternoon of the 
16th. After the election, he immediately entered the Kantei and 
appointed 17 cabinet members, including Naoto Kan as deputy prime 
minister. An installation ceremony for the prime minister and an 
attestation ceremony for the cabinet members by the Emperor were 
held at the Imperial Palace last evening, formally launching the 
three-party coalition government. 
 
In a set of basic policies presented at the first cabinet meeting, 
the prime minister ordered the establishment of a national strategy 
office to serve as a predecessor of the national strategy bureau 
responsible for compiling a budgetary framework. The package also 
notes that the government will make the Japan-U.S. alliance a close 
and equal one. It also stresses the building of a relationship in 
which Japan can actively propose specific action guidelines. 
 
Concerning Japan-U.S. relations, the prime minister said at a press 
conference, "We will adopt a stance of expressing our views without 
hesitation." However, regarding a summit with President Obama slated 
 
TOKYO 00002175  002 OF 004 
 
 
for later in the month, Hatoyama said, "The main purpose of the 
meeting is to build a relationship of trust. We will take time in 
pursuing discussions." He thus hinted at his intention not to raise 
specific issues, such as a revision of the Japan-U.S. Status of 
Forces Agreement. 
 
(2) Seats in the Upper and Lower Houses 
 
NIKKEI (Page 5) (Excerpts) 
September 17, 2009 
 
House of Representatives   House of Councillors 
311 Democratic Party of Japan (DPJ) 118 
118 Liberal Democratic Party (LDP)  85 
21 New Komeito 21 
9 Japanese Communist Party (JCP) 7 
7 Social Democratic Party (SDP) 5 
5 Your Party - 
3 People's New Party (PNP) - 
3 Group to Protect National Interest and People's Daily Lives - 
3 Independents  4 
0 Vacant 2 
 
(3) Deputy Prime Minister Kan to serve as first acting prime 
minister, Chief Cabinet Secretary Hirano as second 
 
NIKKEI (Page 5) (Full) 
September 17, 2009 
 
The government decided in its first cabinet meeting last night the 
order of priority for cabinet members to serve as acting prime 
minister if Prime Minister Yukio Hatoyama becomes unable to fulfill 
his duties due to an overseas visit, illness, or accident. Naoto 
Kan, deputy prime minister and state minister in charge of national 
strategy, was picked as the first acting prime minister, followed by 
Chief Cabinet Secretary Hirofumi Hirano, National Public Safety 
Commission Chairman Hiroshi Nakai, Finance Minister Hirohisa Fujii, 
and Justice Minister Keiko Chiba. After the formal meeting, the 
cabinet ministers held an informal meeting during which they decided 
to return ten percent of their salaries (for August). 
 
(4) Editorial: Prime Minister Hatoyama should address expectations 
of people who hoped for change of government 
 
NIKKEI (Page 2) (Full) 
September 17, 2009 
 
With the election of Democratic Party of Japan President Hatoyama as 
head of the 93rd cabinet, the coalition government of the DPJ, the 
Social Democratic Party and the People's New Party was launched. The 
new administration was inaugurated with the DPJ scoring a historic 
landslide victory in the Lower House election, capturing 308 seats. 
We want Prime Minister Hatoyama to address expectations of people 
who hoped for a change of government and steadily produce results. 
 
The DPJ in its policy manifesto pledged to realize politician-led 
politics, in which the ruling parties take responsibility. A new 
attempt to change relations between politicians and bureaucrats and 
the policy-making mechanism of the long-lasted LDP administration 
started. 
 
Move to review relations between politicians and bureaucrats 
 
TOKYO 00002175  003 OF 004 
 
 
 
Prime Minister Hatoyama appointed his aide Hirofumi Hirano as chief 
cabinet secretary, a key post in the cabinet, and Naoto Kan as state 
minister responsible for the national strategy bureau, which will 
serve as the key policy-making body. Kan, who will double as senior 
vice minister, is the number two person in the cabinet. 
 
Hirohisa Fujii, who once served as finance minister, assumed his 
former portfolio. Yoshito Sengoku, a policy expert, assumed the post 
of state minister for the administrative reform council. Mid-ranking 
lawmaker Akira Nagatsuma was appointed minister of the Health, Labor 
and Welfare Ministry, which is responsible for the pension issue. 
With the exception of those showcase appointments, the cabinet 
lineup gives the impression the prime minister has put together a 
rock-solid cabinet with consideration for achieving good balance in 
the party. The idea of picking for the cabinet people from the 
private sector has been put on hold. Establishing the national 
strategy bureau, which will be tasked with formulating basic 
policies for budgetary compilation, will require an amendment to the 
relevant law. The government will cope with this situation by 
setting up a national strategy office for the time being. However, 
since its authority is unclear, there is fear confusion will arise. 
Role-sharing between the chief cabinet secretary, a coordinator 
among various government agencies, and State Minister Kan, 
responsible for the national strategy bureau, will be a major issue. 
It is important for the prime minister, Kan, and Hirano to closely 
liaise with one another and coordinate views on various policies. 
 
The Hatoyama administration must tackle such things as rebuilding 
the economy, compiling a new growth strategy and reforming the 
social security system in response to the low birthrate and aging 
society. A point of concern is that the postal privatization policy 
might be watered down because of the appointment of PNP President 
Shizuka Kamei as state minister for financial affairs and postal 
reform. Structural reforms, such as regulatory reforms, are 
essential for turning around the economy. It is unforgivable to 
allow structural reforms to stall. 
 
The compilation of the fiscal 2010 budget is the first crucial test 
for the new administration. The change in administration is a good 
opportunity to eliminate constraints. We want the government to 
boldly press ahead with efforts to eliminate wasteful spending and 
review the inflexible distribution of budgetary funds. 
 
However, new policy measures slated to be implemented in the next 
fiscal year alone, including the payment of 50 percent of the child 
allowance, will cost 7.1 trillion yen. It is unclear whether such a 
sum can be secured through slashing wasteful spending. There is a 
risk of rising interest rates if the shortage is to be covered with 
the additional issuance of government bonds. We urge the government 
to compile a budget in a flexible manner, while paying attention to 
economic trends as well. The budget must be compiled before year's 
end without fail so as to prevent a delay from affecting the 
economy. 
 
The Hatoyama administration abolished the vice ministerial meeting 
as a symbol of (the start of) politician-led politics. Whether the 
cabinet ministerial committee to be newly set up can serve as a 
policy-making forum depends on the cabinet ministers' capability. It 
is desirable if the government ends the practice of reshuffling 
posts on a regular basis. It is desirable for each cabinet member to 
serve as long as possible. 
 
TOKYO 00002175  004 OF 004 
 
 
 
In order for the cabinet to unify the policy-decision processes 
under its wing, its relations with the party are also important. The 
DPJ intends to newly establish a party leaders' council consisting 
of Prime Minister Hatoyama, Secretary General Ichiro Ozawa, and 
others as a supreme decision-making organ responsible for steering 
the Diet. It must not give rise to a two-tier power structure 
involving Ozawa. 
 
Prime Minister Hatoyama will soon visit the U.S. to attend the UN 
climate change summit, the UNSC summit on nuclear nonproliferation 
and nuclear disarmament, and the G-20 Summit in Pittsburgh. 
 
Before he took office as prime minister, Hatoyama announced a policy 
of setting a mid-term goal of cutting greenhouse gases to 25 PERCENT 
 below the 1990 level. This is a switch from the Aso cabinet's 
policy of cutting such gases to 8 percent below the 1990 level. This 
announcement has impressed upon the international community that 
power has changed hands in Japan. Hatoyama's ability to engage China 
and India in an international framework for greenhouse gas emission 
reductions by using his bold  mid-term goal will be put to the 
test. 
 
Dispel concern over relations with U.S. 
 
The Hatoyama administration raises concern about relations with the 
U.S. Prime Minister Hatoyama plans to hold his first meeting with 
President Obama during his upcoming visit to the U.S. The DPJ does 
not plan to extend Japan's refueling operation in the Indian Ocean, 
which is set to expire next January, but the U.S. government is 
asking Japan to reconsider. Concerning U.S. force realignment, 
including Futenma Air Station relocation, there are also differences 
in views between the U.S., which calls for the implementation of the 
agreement made between the two governments, and the new 
administration. 
 
The prime minister said in his inaugural speech that building a 
relationship of trust with the President is the first step. Actions 
to maintain the robust Japan-U.S. alliance are indispensable in 
order to achieve that goal. 
 
In order to secure a majority in the Upper house, the DPJ has formed 
a coalition with the SDP and the PNP, with which there is a wide gap 
in diplomatic and security policies. This has become a disturbing 
factor for the new administration. Given the election results, it is 
only natural for the DPJ to take leadership in steering the 
administration. The SDP and the PNP need to practice self-control 
instead of sticking to their own policy stances. 
 
When the DPJ confronts the SDP or the PNP over diplomatic and 
security policies, Prime Minister Hatoyama needs to be shrewd enough 
to seek cooperation from the opposition Liberal Democratic Party and 
New Komeito. 
 
ROOS