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UNCLAS SECTION 01 OF 08 TOKYO 002325 
 
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 10/07/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Hatoyama diplomacy 
4) PM to attend East Asia Summit  (Tokyo Shimbun) 
5) PM meets with Singapore counterpart  (Nikkei) 
 
Okada diplomacy 
6) FM says U.S.-North Korean talks are within Six-Party Talks 
framework  (Mainichi) 
7) FM welcomes Kim Jong Il 's mentioning Six -Party Talks but doubts 
North will return to talks soon  (Tokyo Shimbun) 
 
MOD reform 
8) Kitazawa postpones Defense Ministry reform  (Asahi) 
9) Kitazawa calls for complete review of plan for MOD reform  (Tokyo 
Shimbun) 
 
Refueling mission 
10) Government officials express divergent views on continuation of 
refueling mission  (Asahi) 
 
Politics 
11) Okada says Japan will not simply extend the refueling mission 
(Nikkei) 
 
Budgets 
12) 2.5169 trillion yen retrieved from review of supplementary 
budget; Administrative Reform Minister asks for more  (Asahi) 
13) Ministry of Health, Labor and Welfare requests 5 trillion yen 
additional budget for FY10 to fulfill campaign pledge  (Nikkei) 
 
Politics 
14) LDP Policy Research Council Chairman Ishiba calls for reform by 
using junior party members  (Yomiuri) 
 
Economy 
15) Keidanren chairman asks Hatoyama to promote EPAs  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
2.5169 trillion yen retrieved from review of supplementary budget; 
Minister Sengoku asks for more 
 
Mainichi: 
Supplementary budget cut by 2.5169 trillion yen; reductions made by 
ministries only 17 PERCENT  of target 
 
Yomiuri: 
2.5 trillion yen retrieved from review of supplementary budget in 
first installment; Prime Minister orders further cuts 
 
Nikkei: 
Ministry of Health, Labour and Welfare requests 5 trillion yen 
additional budget for FY10 to fulfill campaign pledges 
 
 
TOKYO 00002325  002 OF 008 
 
 
Sankei: 
"Donations from dead persons" to Prime Minister: False entries also 
found in unrevised 2004 records, adding to announced amount 
 
Tokyo Shimbun: 
Execution of 2.5169 trillion yen halted through review of 
supplementary budget; scrutiny continues 
 
Akahata: 
Record of ASDF airlift activities in Iraq shows 63 PERCENT  related 
to U.S. forces 
 
2) EDITORIALS 
 
Asahi: 
(1) Record of airlift activities in Iraq: Need for more transparency 
in defense 
(2) Emergency employment measures: New administration's competence 
put to test 
 
Mainichi: 
(1) Donations by "dead persons": Prime minister should not evade the 
question, should give explanation 
(2) North Korean nuclear issue: Make a clear statement on returning 
to Six-Party Talks 
 
Yomiuri: 
(1) Wen Jiabao's visit to North Korea: North Korea should return to 
Six-Party Talks 
(2) Sumatra earthquake: Need to step up education on disaster 
prevention 
 
Nikkei: 
(1) Do not repeat discussions without North Korea's 
denuclearization 
(2) Send out stronger message on IT from Tokyo 
 
Sankei: 
(1) Parliamentary defense secretary's statement welcomed as solution 
to issue of continuing refueling mission 
(2) Emergency employment measures: Restore policymaking process 
 
Tokyo Shimbun: 
(1) Iraq airlift mission: "Lies" behind the blacked out documents 
(2) North Korean nuclear issue: Six-Party Talks indispensable 
 
Akahata: 
(1) Relocation of U.S. military plan exercises: Life ruined by 
noise 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 6 
 
NIKKEI (Page 2) (Full) 
October 7, 2009 
 
09:50 Handed at Kantei a letter of appointment to Hideki Kato as 
secretary general of the Administrative Reform Council. 
10:01 Attended a cabinet meeting. 
11:00 Met Internal Affairs and Communications Minister Haraguchi and 
DPJ decentralization research council chief Seiji Osaka. 
 
TOKYO 00002325  003 OF 008 
 
 
11:32 Met Prime Minister Lee Hsien Loong of Singapore. Later hosted 
a luncheon. 
14:03 Met Japan Business Federation Chairman Fujio Mitarai, his 
deputy Sadayuki Sakakibara, and Japan-China Economic Association 
Chairman Fujio Cho, with Deputy Chief Cabinet Secretary Matsuno 
present. 
16:02 Met U.S. News Corporation Chairman Rupert Murdoch and others, 
followed by National Strategy Minister Kan, Chief Cabinet Secretary 
Hirano, Administrative Reform Minister Sengoku, Cabinet Office 
Senior Vice Minister Furukawa, and others. Hirano stayed behind. 
18:58 Attended an informal meeting of Upper House DPJ lawmakers held 
at Hakone Hotel Kowakien in Hakone, Kanagawa Prefecture. 
20:00 Met Fujiya Hotel President Shin Katsumata at his hotel. 
21:58 Arrived at his private residence. 
 
4) Prime Minister Hatoyama to attend East Asia Summit 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 7, 2009 
 
Prime Minister Yukio Hatoyama held talks yesterday with his 
Singaporean counterpart Lee Hsien Loong at the Prime Minister's 
Official Residence (Kantei). During the meeting, Hatoyama announced 
his intention to attend the East Asia Summit and the summit meeting 
of the Association of Southeast Asian Nations (ASEAN) Plus Three 
(Japan, China and South Korea). The summit meetings will take place 
in Thailand on Oct. 23-25. 
 
5) Prime Minister Hatoyama meets with his Singaporean counterpart 
 
NIKKEI (Page 2) (Full) 
October 7, 2009 
 
Prime Minister Yukio Hatoyama met yesterday with his Singaporean 
counterpart Lee Hsien Loong at the Prime Minister's Official 
Residence (Kantei). Referring to Hatoyama's idea of creating an East 
Asian community, Lee said that (the Hatoyama administration) should 
move ahead with the initiative while placing priority on relations 
with the United States. Lee pointed out that the participation of 
the United States is important in the view of regional balance. 
Hatoyama told Lee, "I agree with your view. I think we should press 
forward with the concept in a nonexclusive manner." 
 
6) Foreign Minister Katsuya Okada: Even if held prior to Six-Party 
Talks, U.S.-DPRK talks will be within same framework 
 
MAINICHI (Page 5) (Full) 
October 7, 2009 
 
Takenori Noguchi 
 
In connection with North Korea's General Secretary Kim Jong Il's 
mention of returning to the Six-Party Talks, Foreign Minister 
Katsuya Okada stated at a news conference on October 6 that, "This 
should be welcomed because he had been negative about the Six-Party 
Talks," indicating his hopes on the DPRK's early return to the 
talks. On the question of U.S.-DPRK talks taking place ahead of the 
Six-Party Talks, he said that, "They will still be under the 
Six-Party Talks framework," expressing a basically positive view. He 
added: "The important thing is to cooperate closely with the U.S. 
and that the Japanese government is able to fully grasp the 
situation. We will also express our opinion (to the U.S. government) 
 
TOKYO 00002325  004 OF 008 
 
 
on the progress of U.S.-DPRK talks as warranted." 
 
7) Foreign Minister Okada doubts North Korea will return to 
Six-Party Talks soon, welcomes Kim Jong Il's mention of talks 
 
TOKYO SHIMBUN (Page 2) (Full) 
October 7, 2009 
 
Commenting on North Korea's General Secretary Kim Jong Il's 
statement at his meeting with Chinese Premier Wen Jiabao on October 
5 on the possibility of the DPRK returning to the Six-Party Talks 
depending on progress in U.S.-DPRK talks, Foreign Minister Katsuya 
Okada said at a news conference on October 6: "Since (North Korea) 
had been expressing a negative view on the Six-Party Talks so far, 
the fact that he mentioned the Six-Party Talks at all should be 
welcomed," indicating a positive view. 
 
Although the Hatoyama administration upholds "dialogue" as its 
foreign policy, it has followed the "policy of pressure" of the 
Liberal Democratic Party administration in its policy toward North 
Korea. It has persisted in the strategy of prodding the DPRK to 
return to the Six-Party Talks by carrying on with the UN sanctions. 
 
Perhaps as a result of the encirclement of North Korea by the 
international community, including Japan, the DPRK has now taken a 
more flexible stance. It would seem that the Hatoyama administration 
has found a way to break out of the impasse in diplomacy with the 
DPRK soon after its inauguration. 
 
However, even government officials are doubtful that moves toward 
the resumption of the Six-Party Talks will now accelerate without a 
hitch. Although Okada has voiced his expectations, a senior Ministry 
of Foreign Affairs official points out: "I do not think that North 
Korea's position has changed significantly. U.S.-DPRK talks will 
probably not resume so easily, much less the Six-Party Talks." 
 
Prime Minister Yukio Hatoyama will receive a briefing from Wen on 
his meeting with Kim directly at the Japan-PRC-ROK summit on October 
10 before deciding on what to do next. However, unless there is some 
progress on the North Korean side, such as its agreement to 
reinvestigate the abduction cases, Japan will not be able to take 
any unilateral action. 
 
It appears that Japan's only option will be to watch developments in 
the U.S.-DPRK talks while cooperating with the U.S. and South 
Korea. 
 
8) Defense Ministry overhaul to be postponed 
 
ASAHI (Page 4) (Full) 
October 7, 2009 
 
Defense Minister Toshimi Kitazawa, meeting the press yesterday, 
indicated that the Defense Ministry would postpone its planned 
restructuring, which had initially been scheduled for the next 
fiscal year. "We will take another year to scrutinize (the Defense 
Ministry's organization including the Self-Defense Forces) again," 
Kitazawa said. So the Defense Ministry will not earmark relevant 
estimates in its budget request to be resubmitted by Oct. 15 for the 
next fiscal year, Kitazawa said, adding that the Defense Ministry 
would not present a relevant bill to the Diet. 
 
 
TOKYO 00002325  005 OF 008 
 
 
9) Kitazawa to freeze, review Defense Ministry organizational reform 
plan 
 
TOKYO SHIMBUN (Page 3) (Full) 
October 7, 2009 
 
At a news conference on Oct. 6, Defense Minister Toshimi Kitazawa 
disclosed that he will freeze the implementation of the Ministry of 
Defense (MOD) organizational reform plan - the main feature of which 
is the appointment of uniformed Self-Defense Forces officers as 
senior officials of the ministry's internal bureaus - starting in 
FY2010 and conduct a comprehensive review. 
 
Kitazawa pointed out that the reform plan was formulated under the 
Liberal Democratic Party-New Komeito administration and said: "With 
the change of administration, a new defense minister has been 
appointed. We will spend one year to examine the plan closely. 
Coordination is underway for not making budget requests relating to 
this plan." He thus indicated that personnel and other expenses 
relating to the plan will not be included in the budget requests for 
FY2010. 
 
The MOD will also defer the submission of bills relating to the 
reform plan to the regular Diet session in 2010 as previously 
envisioned. 
 
10) Cabinet discord exposed over Japan's refueling mission 
 
ASAHI (Page 4) (Full) 
October 7, 2009 
 
Foreign Minister Katsuya Okada has said that the government would 
not "simply extend" the Maritime Self-Defense Force's refueling 
mission in the Indian Ocean. Parliamentary defense secretary Akihisa 
Nagashima, however, insisted on Oct.5 that Japan should continue the 
refueling mission, attaching the precondition of requiring Diet 
approval. In response, various views were presented by cabinet 
members yesterday, underscoring that there are differences in views 
among cabinet ministers. 
 
In a press conference after a cabinet meeting yesterday, State 
Minister for Consumer Affairs, Food Safety, Declining Birthrate, and 
Gender Equality Mizuho Fukushima reiterated that "as the leader of 
the Social Democratic Party, I am opposed to extending the special 
law authorizing the refueling mission (beyond its January 
expiration). We will properly discuss the issue in the coalition 
government to prevent a situation in which the mission will be 
extended with preconditions attached." She said this in an attempt 
to prevent a view in favor of extending the mission from spreading 
among members of the Democratic Party of Japan. 
 
Defense Minister Toshimi Kitazawa said in a press conference after 
the cabinet meeting: "Extending the refueling mission is not an 
option." He then disclosed that he had warned Nagashima, saying, "I 
told (Nagashima) to carry out coordination before making remarks so 
as not to cause a misunderstanding that the minister and the 
parliamentary secretary are in disagreement." 
 
11) Okada: Government will not simply extend refueling mission 
 
NIKKEI (Page 2) (Full) 
October 7, 2009 
 
TOKYO 00002325  006 OF 008 
 
 
 
In a press conference yesterday, Foreign Minister Katsuya Okada 
indicated that the government will simultaneously look into measures 
to help Afghanistan's reconstruction and whether to extend the 
Maritime Self-Defense Force's refueling mission in the Indian Ocean 
beyond its January expiration, saying, "The government's message is 
that it will not simply extend the mission." Defense Minister 
Toshimi Kitazawa is negative about extending the mission, while 
parliamentary defense secretary Akihisa Nagashima recently made 
remarks indicating his willingness to approve the extension of the 
mission with the precondition of requiring Diet approval. On the 
disagreement between the two, Okada just said, "The defense minister 
and the parliamentary secretary should fully coordinate their 
views." 
 
12) Government amasses 2.5169 trillion yen through review of extra 
budget; State Minister for Administrative Reform Sengoku asks for 
further squeeze 
 
ASAHI (Top play) (Excerpts) 
October 7, 2009 
 
State Minister for Administrative Reform Yoshito Sengoku on Oct. 6 
announced that in accordance with Prime Minister Yukio Hatoyama's 
order to review the fiscal 2009 supplementary budget, the government 
had managed to extract 2.5 trillion yen out of it, by suspending 
wasteful programs or by calling on local governments to voluntarily 
return funds allocated to them. Sengoku will continue to ask each 
government agency to squeeze more funds to be closer to the goal of 
raising 3 trillion yen. He wants to fix the final amount possibly by 
mid-October. 
 
The Aso cabinet, the predecessor of the Hatoyama cabinet, compiled 
the fiscal 2009 extra budget totaling 14.663 trillion yen, of which 
the government will now suspend the implementation of projects 
totaling 2.5169 trillion yen, which Sengoku has determined as not 
requiring immediate implementation. This is equal to about 17 
percent of the total amount of the extra budget. 
 
A breakdown of reviews made by each government agency shows that the 
Ministry of Land, Infrastructure, Transport and Tourism will 
redirect the largest amount of 887.5 billion yen, although it has 
not yet revealed specific programs to be put on hold. The Ministry 
of Agriculture, Forestry and Fisheries revealed programs subject to 
the revision on the same day. It intends to halt the implementation 
of programs worth 476.3 billion yen, by, for example, clawing back 
the full amount - roughly 300 billion yen -- allocated for the 
farming land concentration promotion fund. The proportion of 
revisions reached about 46 percent of its total budget. 
 
The Ministry of Health, Labor and Welfare (MHLW), which has the 
largest extra budgetary amount of 3.4 trillion yen, announced that 
it would suspend the spending of 353.4 billion yen to be implemented 
next fiscal year and beyond out of the 700 billion yen worthy of the 
emergency training and job placement assistance fund. 
 
A source related to the Ministry of Education, Culture, Sports, and 
Science and Technology noted that the ministry will review portions 
of the state-of-the-art R&D assistance program totaling 270 billion 
yen. The amount subject to the revision comes to roughly 70 billion 
yen. 
 
 
TOKYO 00002325  007 OF 008 
 
 
The Ministry of Economy, Trade and Industry (METI) has managed to 
squeeze only 87.7 billion yen or a little over 6 percent of the 
total amount. No revision was made of subsides (totaling 2.4 
trillion yen) for the central government to cover local governments' 
share in public works, which are under the jurisdiction of the 
Cabinet Office. 
 
13) Budget requests for next fiscal year: Health Ministry to ask for 
5 trillion yen budget hike 
 
NIKKEI (Top play) (Excerpts) 
October 7, 2009 
 
The government's effort to compile the fiscal 2010 budget has hit a 
stumbling block. A flurry of measures will push up expenditures. One 
such measure calls for establishing a child-care-allowance system, a 
plank in the Democratic Party of Japan's platform for the Lower 
House election. The Ministry of Health, Labor and Welfare is 
expected to ask for about 6 trillion yen above the initial budget 
for fiscal 2009. This figure exceeds by 5 trillion yen the budget 
request it submitted under the previous Aso administration in late 
August. In the meantime, tax revenues are bound to drop because of 
the ongoing economic crunch. Unless the government limits public 
works to high-priority projects, the issuance of government bonds is 
inevitable. 
 
In its budget compilation guidelines adopted at a cabinet meeting on 
Sept. 29 the government asked all cabinet ministers for aggressive 
cuts in their budgetary requests. The government has set a target 
for general expenditures at a level below the initial budget for 
fiscal 2009, 51.73 trillion yen. However, it already appears as 
though this target will be difficult to achieve. 
 
14) Interview with LDP Policy Research Council Chairman Shigeru 
Ishiba - We will utilize young members in order to show that the 
party has changed 
 
YOMIURI (Page 4) (Full) 
October 7, 2009 
 
We are required to demonstrate our ability to plan policies on our 
own rather than to listen to the government. Things might be twice 
or three times more difficult than when we were a ruling party, but 
unless we demonstrate our ability, we will not be able to take over 
the reins of government. Our policies were hard to understand and we 
presented them poorly in the previous House of Representatives 
election, and that is partly why we lost it. We want to present 
policies that are not complex. We are going to give young members 
opportunities to play active roles so it will be evident that the 
LDP has changed. 
 
(The Maritime Self-Defense Force's) refueling mission (in the Indian 
Ocean) is an undertaking which is making the maximum use of our 
country's ability. We want to establish a general law specifying the 
prior Diet approval (of the overseas dispatch of the Self-Defense 
Forces), but because the extra Diet session will be short, we will 
aim to extend (the refueling mission) (by presenting 
lawmaker-sponsored special measures legislation). 
 
If (the government) says the fiscal 2009 supplementary budget 
compiled by us is totally unacceptable (and has to be suspended), 
the onus of proof is on them. The job market is deteriorating due 
 
TOKYO 00002325  008 OF 008 
 
 
partly to the yen's appreciation. We would like to hold thorough 
discussions. 
 
The false reporting of donations (by Prime Minister Hatoyama's 
fund-management organization) is a serious violation of the law. 
(The Prime Minister indicated that he will) abstain from offering an 
explanation because the matter is "under investigation." We cannot 
accept such an explanation. 
 
15) Japan Business Federation chairman asks Hatoyama to promote EPA 
talks with China, South Korea 
 
ASAHI (Page 7) (Full) 
October 7, 2009 
 
Japan Business Federation (JBF) Chairman Fujio Mitarai held a 
meeting with Prime Minister Yukio Hatoyama at the Prime Minister's 
Official Residence yesterday for the first time since the 
inauguration of the new cabinet. According to a JBF official, 
Mitarai asked Hatoyama to take up and advance talks on the issue of 
concluding economic partnership agreements (EPA) with China and 
South Korea during the planned summit meeting among Japan, China and 
South Korea in Beijing on Oct. 10. Hatoyama replied: "While bearing 
it in mind, I will attend the meeting." 
 
The meeting between Hatoyama and Mitarai was arranged in response to 
a request by the prime minister's office willing to listen to views 
of the business word before the trilateral summit meeting. 
 
Mitarai explained that the business community has proposed creating 
an Asia economic zone and that this idea has something in common 
with Hatoyama's proposed concept of an East Asia Community. The JBF 
chairman then requested that negotiations on EPAs should be push 
forward in order to promote trade and investment and buoy up the 
Asian economy. 
 
Japan-China Economic Association Chairman Fujio Cho and Toray 
Industries Inc. President Sadayuki Sakakibara also attended the 
meeting with Hatoyama. They briefed on their business activities in 
China and South Korea. 
 
Business organizations of Japan, China, and South Korea, including 
the JBF, will hold a business summit in Beijing on Oct. 10, in 
tandem with the trilateral summit meeting, and they will report the 
results of the talks to the three countries' leaders. 
 
ZUMWALT