VZCZCXRO6451
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2271/01 2720001
ZNR UUUUU ZZH
P 290001Z SEP 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6496
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 9039
RUEHFK/AMCONSUL FUKUOKA 6699
RUEHOK/AMCONSUL OSAKA KOBE 0514
RUEHNAG/AMCONSUL NAGOYA 4003
RUEHKSO/AMCONSUL SAPPORO 7216
RUEHBJ/AMEMBASSY BEIJING 1200
RUEHUL/AMEMBASSY SEOUL 7861
RUCNDT/USMISSION USUN NEW YORK 7434

UNCLAS SECTION 01 OF 08 TOKYO 002271 
 
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 09/29/09 
 
Index: 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Domestic Politics 
4) Govt. to redraft budget from scratch  (Nikkei) 
5) Tanigaki elected LDP president; Oshima strong candidate for party 
secretary general  (Sankei) 
6) Tanigaki elected LDP president; Sonoda mentioned as candidate for 
party secretary general  (Yomiuri) 
 
Trilateral Ministerial in Shanghai 
7) Japanese, Chinese, and Korean foreign ministers agree to 
cooperate for creation of East Asia Community  (Nikkei) 
8) Japanese, Chinese, and Korean foreign ministers agree on holding 
summit meeting of heads of state next month  (Yomiuri) 
9) Gist of trilateral ministerial  (Yomiuri) 
10) At FM talks China attempts to use East Asia Community concept to 
decouple Japan and U.S.  (Sankei) 
 
Foreign Relations 
11) MOD Kitazawa speeds up preparations for talks with U.S. Minister 
of Defense  (Asahi) 
12) North Korea's Vice Foreign Minister offers to discuss abduction 
issue bilaterally with Japan  (Tokyo Shimbun) 
 
Defense & Security 
13) Environmental Assessment Council requests Ministry of Defense 
redo preparatory document  (Akahata) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Tokyo Shimbun: 
Government to accept new budget requests for fiscal year 2010 until 
Oct 15 
 
Mainichi & Yomiuri: 
Tanigaki elected new LDP president 
 
Nikkei: 
Government to adopt today new basic policy for FY2010 budget 
compilation, to accept new budget requests until Oct. 15 
 
Sankei: 
New LDP President Tanigaki: LDP will establish "administrative 
concept council" 
 
Akahata: 
JCP Chairman Shii offers flowers at monument in Semipalatinsk 
 
2) EDITORIALS 
 
Asahi: 
(1) Tanigaki-led LDP must reform itself in serious manner 
(2) Minister Kamei should reconsider plan for moratorium bill 
 
Mainichi: 
(1) New LDP President Tanigaki also needs to introduce change 
(2) JAL reconstruction - Time to break free of shackles 
 
TOKYO 00002271  002 OF 008 
 
 
 
Yomiuri: 
(1) Tanigaki must initiate LDP's transformation 
(2) German center-right coalition will continue nuclear power plant 
policy 
 
Nikkei: 
(1) Hatoyama administration should listen to concern in markets 
(2) New LDP President Tanigaki should set objectives for returning 
the party to power 
 
Sankei: 
(1) New LDP President Tanigaki should demonstrate how he will renew 
his party 
(2) German general election: Japan should pay attention to 
conservative trend 
 
Tokyo Shimbun: 
(1) New LDP President Tanigaki should change his party 
(2) Yen's appreciation, weak stock prices: Fujii statement is 
"correct," but ... 
 
Akahata: 
(1) LDP picks new president - No future for backward-looking 
opposition party 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 28 
 
NIKKEI (Page 2) (Full) 
September 29, 2009 
 
09:25 Signed his name as the prime minister in the book at the 
Hitachi Palace. Afterward signed in at the Imperial Palace to report 
his return. Signed his name as the prime minister in the book at the 
Katsura Palace. 
10:15 Had an audience with the Crown Prince at the Togu Palace. 
Afterward signed his name at the Akishino Palace, Prince Tomohito's 
Palace, Mikasa Palace, and Takamado Palace. 
11:10 Met Deputy Chief Cabinet Secretary Matsuno at the Kantei, 
followed by Lower House member Keishu Tanaka. 
14:55 Met State Minister for Administrative Reform Sengoku in the 
presence of Deputy Chief Cabinet Secretary Matsui. 
15:44 Met Cabinet Office Parliamentary Secretary Tamura. 
16:29 Met Finance Minister Fujii, Senior Vice Finance Minister 
Minezaki and Parliamentary Secretary Furumoto. 
17:01 Attended a government and ruling coalition party heads 
meeting, followed by a basic policy cabinet ministers committee 
meeting. 
18:09 Attended a party commemorating the late political commentator 
Ryuichiro Hosokawa held at a restaurant in the Japan Press Center 
Bldg. In Uchi-saiwaicho. 
18:50 Met Chief Cabinet Secretary Hirano. 
20:32 Returned to his private residence. 
 
4) Government to endorse basic budget-compilation policy today, 
redraft state budget from scratch 
 
NIKKEI (Top Play) (Excerpts) 
September 29, 2009 
 
 
TOKYO 00002271  003 OF 008 
 
 
The government will endorse a basic budget-compilation policy for 
fiscal 2010 at a cabinet meeting today. It will abolish the previous 
Aso administration's guidelines for budget requests and accept fresh 
requests from government agencies until Oct. 15. The government will 
try to generate funds by eliminating wasteful spending to pay for 
the livelihood-support measures proposed in the Democratic Party of 
Japan's manifesto for the last House of Representatives election. 
The government intends to freeze part of the fiscal 2009 
supplementary budget and review the current single-fiscal-year 
system in an effort to underscore policy changes. 
 
Prime Minister Yukio Hatoyama held a meeting at the Prime Minister's 
Official Residence yesterday of a cabinet committee on basic 
policies attended by the leaders of the three ruling parties and 
others. Hatoyama also held the first meeting attended by the party 
leaders and officials at the secretary-general level to discuss 
guidelines for budget compilation. 
 
In the meetings, Hatoyama instructed participants to (1) scrap the 
Aso cabinet's budgetary request guidelines; (2) compile the fiscal 
2010 budget by the end of the year; and (3) conduct a zero-based 
review of the existing state budget. The prime minister emphasized: 
"To implement the new measures proposed in the manifesto, the 
government will redraft the budget and find new fiscal sources." 
 
Participating in the cabinet committee on meeting on basic policies 
were Hatoyama; Deputy Prime Minister Naoto Kan, who is also national 
strategy minister; Chief Cabinet Secretary Hirofumi Hirano; Social 
Democratic Party President Mizuho Fukushima, state minister for 
consumer affairs, food safety, declining birthrate, and gender 
equality; People's New Party President Shizuka Kamei, state minister 
for financial affairs and postal reform; and Finance Minister 
Hirohisa Fujii. The government plans to hold committee meetings 
regularly. 
 
Instructions by Hatoyama on fiscal 2010 budget compilation 
 
Q Compile the fiscal 2010 budget by the end of the year. 
Q Eliminate wasteful spending. 
Q Scrap the current guidelines for budget requests. 
Q Have government agencies present by Oct. 15 their new requests 
made in accordance with the requirements presented in the DPJ 
manifesto and in the agreement reached to form the coalition 
government of the three political parties. 
Q Find new fiscal sources to fund new policy measures listed in the 
manifesto through budget overhaul. 
Q Conduct a zero-based review of the order of priorities in the 
current state budget. 
 
5) Newly elected LDP President Tanigaki: LDP will set up 
"administrative concept council;" Oshima a likely candidate for 
secretary general 
 
SANKEI (Top play) (Lead paragraph) 
September 29, 2009 
 
The opposition Liberal Democratic Party (LDP) yesterday held a 
presidential election at party headquarters. Former Finance Minister 
Sadakazu Tanigaki, 64, was elected the 24th LDP president, beating 
his two younger contenders - former Senior Vice Justice Minister 
Taro Kono, 46, and former Parliamentary Secretary for Foreign 
Affairs Yasutoshi Nishimura, 46. Tanigaki garnered 300, or a 
 
TOKYO 00002271  004 OF 008 
 
 
majority, of the 499 valid votes cast by (199) party lawmakers and 
(300) local chapters in the nation's 47 prefectures. Kono secured 
144 votes and Nishimura captured 54 votes. Today Tanigaki will pick 
three top officers, including secretary general. At a press 
conference, Tanigaki revealed his intention to set up an 
"administrative concept council" (tentative name), at which the LDP 
will discuss how it should revitalize itself, and a "shadow 
cabinet." 
 
6) Tanigaki elected new LDP president, Sonoda emerges as candidate 
for secretary general 
 
YOMIURI (Top play) (Lead paragraph) 
September 29, 2009 
 
Yesterday the opposition Liberal Democratic Party (LDP) held its 
presidential election, in which former Finance Minister Sadakazu 
Tanigaki, 64, was elected as the 24th LDP president, defeating two 
other candidates - former Senior Vice Justice Minister Taro Kono, 
46, and former Parliamentary Secretary for Foreign Affairs Yasutoshi 
Nishimura, 46. At yesterday's first balloting, Tanigaki secured 60 
PERCENT  of all the votes cast by party Diet members and local 
chapters in the nation's 47 prefectures. His term in office will run 
until the end of September 2012. Tanigaki will decide today the 
lineup of new LDP executives. Former Policy Research Council Deputy 
Chairman Hiroyuki Sonoda is emerging as a candidate for secretary 
general. 
 
7) Japanese, Chinese and South Korean foreign ministers agree to 
cooperate on concept of East Asia Community 
 
NIKKEI (Page 1) (Full) 
September 29, 2009 
 
(Nahoko Yamauchi, Shanghai) 
 
The foreign ministers of Japan, China and South Korea met in 
Shanghai on Sept. 28 and agreed to cooperate in realizing the 
concept of an East Asia Community. They shared the view that North 
Korea's nuclear development will constitute a threat to the peace 
and stability of Northeast Asia. Based on this view, they decided to 
call on North Korea to quickly return to the Six-Party Talks. 
 
The trilateral foreign ministerial was aimed at laying the 
groundwork for the planned summit meeting of the three countries set 
for Oct. 10. In the meeting, Foreign Minister Katsuya Okada said, 
"With the Japan-U.S. alliance as the cornerstone (of its security), 
Japan will proactively promote Asian diplomacy while promoting the 
concept of an East Asia Community." Chinese Foreign Minister Yang 
Jiechi and South Korean Foreign Affairs and Trade Minister Yu 
Myung-Hwan agreed. 
 
Prime Minister Yukio Hatoyama has proposed the concept of an East 
Asia Community, in which common security and currency systems would 
be introduced. The foreign ministers did not discuss specifics of 
the concept in the meeting. 
 
Okada called on China to make a greater effort in arms reduction. 
His Chinese counterpart replied, "China has promised to forgo the 
first-strike option." The Chinese foreign minister added, "We 
welcome the start of bilateral moves toward arms reduction by the 
U.S. and Russia." 
 
TOKYO 00002271  005 OF 008 
 
 
 
In a meeting of the Japanese and Chinese foreign ministers held 
prior to the trilateral meeting, Okada expressed concern about 
China's independent development of the Shirakaba gas field. 
 
8) Japan, China, ROK foreign ministers agree to hold trilateral 
summit on October 10 
 
YOMIURI (Page 2) (Full) 
September 29, 2009 
 
Takanori Kato, Yukiko Ishikawa (Shanghai) 
 
The foreign ministers of Japan, China, and the Republic of Korea 
(ROK) met at a hotel in Shanghai on the afternoon of September 28 
and reached an official agreement on holding the second 
Japan-PRC-ROK summit in Beijing on October 10. They also agreed on 
promoting an "East Asian community" and other forms of regional 
cooperation among Asian countries. 
 
Foreign Minister Katsuya Okada, Chinese Foreign Minister Yang 
Jiechi, and ROK Minister of Foreign Affairs and Trade Yu Myung-hwan 
participated in this meeting. 
 
Okada briefed his counterparts on the Hatoyama administration's 
foreign policy at the beginning of the meeting. He said that: "Japan 
aims at building an East Asian community while regarding the 
Japan-U.S. relationship as the linchpin of its policy. We would like 
to promote regional cooperation in East Asia in collaboration with 
China and the ROK," conveying the new administration's emphasis on 
Asia. 
 
Okada sought the two foreign ministers cooperation in realizing the 
East Asian community, saying: "We would like to cooperate step by 
step." On the other hand, China and the ROK reportedly indicated 
their intention to promote regional cooperation under the ASEAN- 
plus-three (Japan, the PRC, and the ROK) framework. Okada told 
reporters after the meeting that, "They basically gave their 
support." 
 
Meanwhile, Okada also voiced his support for U.S. President Barack 
Obama's advocacy of a "world without nuclear weapons" at the meeting 
and asked that China make efforts toward nuclear disarmament. Yang 
replied that China will "work on this positively." 
 
9) Gist of Japan-PRC-ROK foreign ministerial talks on September 28 
 
YOMIURI (Page 4) (Full) 
September 29, 2009 
 
Regional cooperation 
 
Foreign Minister Katsuya Okada: Japan aims at building an East Asian 
community in the long-term while keeping the Japan-U.S. alliance as 
the linchpin of its policy. It is important to strengthen 
cooperation with China and the Republic of Korea (ROK). 
 
PRC Foreign Minister Yang Jiechi: I agree. 
 
ROK Minister of Foreign Affairs and Trade Yu Myung-hwan: We would 
like to promote regional cooperation further. 
 
 
TOKYO 00002271  006 OF 008 
 
 
North Korean issue 
 
Okada: North Korea's development of nuclear weapons is unacceptable. 
We would like to resolve the abduction, nuclear, and missile issues 
and settle the issues of the unfortunate past. 
 
Yu: It is necessary to continue to impose the sanctions based on UN 
Security Council resolutions. Our position is to pursue dialogue in 
this context. 
 
Yang: The Six-Party Talks is a realistic and effective channel. We 
need to place more importance on this framework. We hope for an 
appropriate solution to the abduction issue. 
 
Nuclear disarmament and non-proliferation 
 
Okada: We support a world without nuclear weapons. We hope for more 
transparency and further efforts toward nuclear disarmament from 
China. 
 
Yang: China has pledged no-first-use (of nuclear arms). We will make 
the necessary efforts. 
 
Climate change 
 
Okada: We will cooperate with the 15th Conference of the Parties to 
the United Nations Framework Convention on Climate Change (COP15). 
 
Yang: Let us work under the principle of common but differentiated 
responsibility. 
 
Diplomatic schedules 
 
Three foreign ministers: The Japan-PRC-ROK summit will be held in 
Beijing on October 10. The next trilateral foreign ministerial 
meeting will be held in the ROK next year. 
 
10) Japan-China-ROK foreign ministerial; China attacks Okada in bid 
to drive wedge between Japan and United States over East Asia 
community concept 
 
SANKEI (Page 5) (Abridged slightly) 
September 29, 2009 
 
Ken Kasahara, Shanghai 
 
During his first visit to China as foreign minister, Katsuya Okada, 
together with his Chinese and South Korean counterparts, confirmed 
close cooperation in promoting the East Asia community concept. 
Okada emphasized that the concept is not designed to exclude the 
United States, Japan's ally. However, the Chinese side poured cold 
water on the Okada proposal, claiming that China has consistently 
advocated the East Asian Community concept, apparently in an effort 
to get the upper hand. The more the Hatoyama administration 
advocates this concept, the greater is the distrust of the United 
States and the harder China tries to drive a wedge between Japan and 
the U.S. 
 
"(The two countries) basically supported the idea apart from the 
question of whether or not to use the phrase 'East Asia Community 
concept,'" Okada said after a series of talks, playing up the 
results of the ministerial. 
 
TOKYO 00002271  007 OF 008 
 
 
 
Okada has indicated that Japan will serve as a "connector" between 
Asia and the United States. True to his words, at the 
Japan-China-South Korea foreign ministerial Okada emphasized a plan 
to promote the East Asia Community concept while maintaining the 
Japan-U.S. alliance as the cornerstone (of Japan's security). A 
senior Japanese government official repeatedly indicated that the 
U.S. should not be alarmed, saying, "The concept will include such 
countries as India and Australia and is not designed to exclude the 
United States." 
 
Nevertheless, there is no doubt that Beijing regards the launch of 
the Hatoyama administration as a golden opportunity to win Japan 
over to the Chinese side, according to a senior Foreign Ministry 
official. In the series of talks, Okada also referred to the 
development of gas fields in the East China Sea, the Chinese-made 
frozen dumplings incident, human rights in Tibet, and China's 
nuclear disarmament. Nevertheless, there was the impression that the 
talks proceeded at China's pace. (Okada) was not able to dispel the 
concern that Japan might be outmaneuvered by shrewd Chinese 
diplomacy. 
 
11) Kitazawa making preparations for meeting with Pentagon chief 
 
ASAHI (Page 4) (Full) 
September 29, 2009 
 
Defense Minister Toshimi Kitazawa held a meeting yesterday with 
Senior Vice Defense Minister Kazuya Shimba and parliamentary 
secretaries for defense. During the meeting, Kitazawa confirmed that 
he would make preparations for a meeting with U.S. Secretary of 
Defense Gates, who will visit Japan late next month. The two defense 
leaders are expected to discuss such issues as the realignment of 
U.S. forces in Japan and Japan's assistance to Afghanistan. Kitazawa 
will accelerate preparations for his meeting with Gates. 
Coordination is now underway for Gates to visit Japan Oct. 20-21. 
 
12) North Korean vice foreign minister positive on resumption of 
Japan-DPRK talks on abduction, other issues 
 
TOKYO SHIMBUN (Page 3) (Full) 
September 29, 2009 
 
New York, Kyodo - It was learned on September 28 that North Korean 
Vice Foreign Minister Pak Kil Yon, who is in the United States to 
attend the UN General Assembly, stated at a meeting with UN 
Secretary General Ban Ki Moon that issues with Japan, including the 
abduction issue, "should be handled through bilateral talks," 
indicating a positive attitude on resuming Japan-DPRK talks. This 
was revealed by a diplomatic source at the United Nations. Pak also 
reportedly reiterated that North Korea will not return to the 
Six-Party Talks. 
 
It is believed that this is the first time that North Korea has 
indicated the possibility of resuming talks with Japan at a UN 
diplomatic venue. During an interview with Kyodo News on September 
11, DPRK envoy for normalization talks with Japan Song Il Ho hinted 
at the DPRK's willingness to resume bilateral talks. 
 
Pak is scheduled to deliver a speech at the UN General Assembly's 
General Debate on the afternoon of September 28 (morning of 
September 29, Japan time). 
 
TOKYO 00002271  008 OF 008 
 
 
 
13) Okinawa environmental assessment council urges Defense Bureau to 
conduct reexamination on plan to build new U.S. base 
 
AKAHATA (Page 1) (Full) 
September 29, 2009 
 
Okinawa's Environmental Impact Assessment Council (chaired by Seiko 
Tsukayama), tasked with deliberating on the environmental impact 
assessment preparatory documents for the planned construction of a 
new U.S. base in the Henoko district in Nago, Okinawa Prefecture, 
held its eighth meeting in Ginowan on Sept. 28 and discussed its 
draft report to the prefectural government. In response to the 
Okinawa Defense Bureau's preparatory documents, which concluded that 
overall there will be only a "minor impact on the environment," the 
draft council report is designed to effectively urge the bureau to 
return its preparatory documents to square one, while indicating 
some critical comments on specific factors, according to Chairman 
Tsukayama. 
 
In the meeting, some citizens in the audience and council members 
complained a draft report that does not seek reexamination is 
insufficient. The text was revised to read, "a necessary 
examination, projection, and evaluation will be carried out once 
again." 
 
The Defense Bureau's preparatory documents say that impact on the 
environment must be avoided/reduced "within the scope feasible by 
contractors." In reaction to those documents, the council report 
includes a phrase indicating that the option of halting the 
construction of the new base will not be excluded, reading, "In the 
event the environmental impact cannot be fully reduced, the options 
for halting the project, changing the site, and reducing the project 
in size will not be excluded." 
 
The draft council report also harshly criticizes the preparatory 
documents, saying that as seen in a lack of multi-year surveys of 
dugons, the environment assessment plan was produced without 
sufficiently addressing the governor's views and that the 
conclusion, projection, and evaluation of the survey specified in 
the preparatory documents were far from sufficient. 
 
The council plans to produce its final report before the end of the 
week. 
 
ROOS