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RUCNDT/USMISSION USUN NEW YORK 7800

UNCLAS SECTION 01 OF 08 TOKYO 002507 
 
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 10/30/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Special Diet session: 
4) In Diet remarks Prime Minister indicates his intention to review 
Japan-U.S. alliance  (Yomiuri) 
5) During Diet questioning Prime Minister indicates desire to reduce 
sympathy budget  (Tokyo Shimbun) 
6) Summary of Prime Minister's comments on Japan-U.S. alliance 
(Yomiuri) 
7) Full account of Diet debate: Prime Minister's answers  (Yomiuri) 
 
8) MSDF participation removed from ship-inspection bill  (Nikkei) 
9) LDP to submit bill to extend refueling mission  (Nikkei) 
 
Futenma relocation: 
10) U.S. again rejects proposal to integrate Futenma functions into 
Kadena Air Base  (Nikkei) 
11) Okinawa Governor criticizes government's handling of Futenma 
issue (Yomiuri) 
12) Government/ruling party proposes Futenma-Kadena integration plan 
 (Sankei) 
 
Defense & security: 
13) Government to examine reduction in host-nation support for U.S. 
forces in Japan  (Nikkei) 
 
Economy 
14) Japan to reconstruct JAL under government direction  (Nikkei) 
 
Politics: 
15) Ozawa group in Lower House tops 60 members  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
JAL seeks support from JCRSP 
 
Mainichi: 
JAL to pursue revitalization under state control 
 
Yomiuri: 
JAL to be placed under government control 
 
Nikkei: 
Government to lead review to reconstruct JAL 
 
Sankei: 
Pension debt an obstacle for JAL revitalization 
 
Tokyo Shimbun: 
Toll-free highways included in classification of projects 
 
Akahata: 
JCP Chairman Shii urges Hatoyama administration to shift from 
long-established politics 
 
 
TOKYO 00002507  002 OF 008 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Will support for JAL benefit the public? 
(2) Professional baseball should discard exclusionism 
 
Mainichi: 
(1) New Japan Post executive: Concerned about possible expansion of 
corporation 
(2) Child allowances: Government must stick to its policy of 
providing same amount to all children 
 
Yomiuri: 
(1) JAL reconstruction: The carrier needs some tough love 
(2) MASF destroyer collision: Navigation rules should be reexamined 
 
Nikkei: 
(1) Review of management and aviation policy needed for JAL 
reconstruction 
(2) Japan Post going backward 
 
Sankei: 
(1) New Japan Post executive: We can't allow service to deteriorate 
under direction of politicians and bureaucrats 
(2) Afghan situation: Japan pushing its ally toward more difficult 
situation 
 
Tokyo Shimbun: 
(1) JAL relief: Cutting pensions is a minimum condition 
(2) MSDF destroyer Kurama collision: Safety in narrow channels 
should be reexamined 
 
Akahata: 
(1) Lower House interpellation: JCP takes position to advance 
Japanese politics 
 
3) Prime Minister's schedule, October 29 
 
NIKKEI (Page 2) (Full) 
October 30, 2009 
 
07:35 Met Chief Cabinet Secretary Hirano and Deputy Chief Cabinet 
Secretaries Matsuno and Matsui. Special Advisor Ogawa joined. 
09:43 Met Hirano and Matsui. 
10:01 Upper House plenary session. 
12:57 Met Matsuno at the Prime Minister's Official Residence 
(Kantei). 
14:03 Lower House plenary session. 
16:05 Met APEC Business Advisory Council Japanese member Yoshihiro 
Watanabe. 
18:00 Met New Zealand Prime Minister John Key. 
18:54 Hosted dinner with Mrs. Hatoyama at the official residential 
quarters. 
20:32 Met Matsuno at the Kantei. 
 
4) Hatoyama plans to review Japan-U.S. alliance, including 
host-nation support and SOFA 
 
YOMIURI (Page 2) (Full) 
October 30, 2009 
 
In response to a question in representative interpellations during a 
 
TOKYO 00002507  003 OF 008 
 
 
House of Councillors plenary session on Oct. 29, Prime Minister 
Yukio Hatoyama announced a plan to review the modalities of the 
Japan-U.S. alliance. "The Japan-U.S. alliance is the cornerstone of 
Japan's foreign policy," Hatoyama said. "Next year marks the 50th 
anniversary of the revision of the U.S.-Japan Security Treaty. We 
would like to review the modalities of the Japan-U.S. alliance 
comprehensively as the new administration." 
 
In this connection, Hatoyama also explained to reporters at the 
Prime Minister's Official Residence (Kantei) last evening, "We want 
to thoroughly discuss possible solutions. A review is necessary." He 
cited Japan's burden sharing (omoiyari yosan or literally "sympathy 
budget," i.e., host nation support) for the stationing of U.S. 
forces in Japan, the Japan-U.S. Status of Forces Agreement, and the 
relocation of the U.S. Marine Corps' Futenma Air Station. 
 
Hatoyama also expressed his eagerness to reduce Japan's host-nation 
support during a House of Representatives plenary session yesterday 
afternoon. He said: "In order to make Japan's host-nation support 
efficient and effective, a comprehensive review is necessary." 
 
5) PM Hatoyama to review sympathy budget 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
October 30, 2009 
 
The House of Representatives plenary session continued 
representative interpellation by the political parties on Prime 
Minister Yukio Hatoyama's policy speech to the Diet on Oct. 29. 
Hatoyama said that "it is necessary to conduct a comprehensive 
review" of the sympathy budget (host nation support for U.S. Forces 
Japan (USFJ)) "to make Japan's financial contribution more efficient 
and effective." He indicated that he will discuss this with the U.S. 
side. 
 
The Prime Minister explained that during the meeting between Defense 
Minister Toshimi Kitazawa and U.S. Secretary of Defense Robert Gates 
on Oct. 21, Gates said the U.S. side would "aim for as much 
efficiency as possible" in connection with the review of the 
sympathy budget. Hatoyama indicated his intention to work for a 
reduction, saying, "I would like to maintain transparency in working 
on this issue in order to win the people's understanding." 
 
Meanwhile, Hatoyama expressed a negative view on Kitazawa's proposal 
to shift Maritime Self-Defense Force ships currently engaged in the 
refueling mission in the Indian Ocean to refueling operations for 
anti-piracy activities. "This will require legislative measures," he 
said.  "I am not inclined to do so at this point." 
 
6) Gist of Prime Minister's remarks on Japan-U.S. alliance 
 
YOMIURI (Page 2) (Full) 
October 30, 2009 
 
The following is Prime Minister Yukio Hatoyama's answer to a 
question on the Japan-U.S. alliance, asked by the press corps at the 
Prime Minister's Official Residence (Kantei) on the evening of Oct. 
29: 
 
-- During Diet interpellations, you said the government will review 
the Japan-U.S. alliance comprehensively. Specifically what do you 
have in mind regarding a comprehensive review? Are you going to 
 
TOKYO 00002507  004 OF 008 
 
 
consider the option of slashing Japan's sympathy budget (host-nation 
support for U.S. forces in Japan) as part of the comprehensive 
review? 
 
Prime Minister: Besides the sympathy budget, there are many 
Japan-U.S security issues, such as the Status of Forces Agreement, 
the relocation of Futenma Air Station, and the realignment of U.S. 
forces in Japan. Until taking power, we were an opposition party, so 
the environment was such that we didn't have full access to 
information. The Japan-U.S. alliance is the cornerstone of Japan's 
foreign policy. Naturally priority must be given to the Japan-U.S. 
alliance. With that as a basis, we would like to examine such issues 
as the sympathy budget, the SOFA, and Futenma from a comprehensive 
perspective and then thoroughly discuss possible solutions to reach 
a conclusion, while putting high priority on the Japan-U.S. 
alliance. It takes time to examine the issues. I have repeatedly 
indicated the need to review them. We are in the process of 
reviewing them. 
 
The sympathy budget has been reduced to the lowest level ever. 
Whether we can further reduce it is a question. A reduction might 
take a heavy toll on Japanese workers in Okinawa. As such, we must 
carefully consider to what extent the sympathy budget can be 
curtailed. In cooperation with America, we are discussing whether we 
can really cut back on the sympathy budget any further. 
 
7) Hatoyama's replies in Diet question session on Oct. 29 
 
YOMIURI (Page 10) (Excerpts) 
October 30, 2009 
 
Futenma relocation 
 
I instructed the foreign minister and the defense minister to 
examine various options for the relocation of the U.S. Marine Corps' 
Futenma Air Station. The government is now looking into the process 
of past negotiations between Japan and the U.S. While considering 
why as many as 13 years were spent wastefully on this issue, I will 
make a final decision. There are still numerous causes for concern 
in the Asia-Pacific region. The deterrence capability of U.S. forces 
in Okinawa is also necessary for the security of our country. 
 
Host nation support for U.S. military 
 
In order to make Japan's host nation support for U.S. military 
forces more efficient and effective, I think it is necessary to 
review it comprehensively. In the earlier Japan-U.S. defense 
ministerial meeting, too, the U.S. side made a statement expressing 
its desire to improve its efficiency as much as possible. 
 
Japan-U.S. alliance 
 
The Japan-U.S. alliance is the cornerstone of Japan's foreign 
policy. Next year marks the 50th anniversary of the revision of the 
Japan-U.S. Security Treaty. The new government would like to make a 
sweeping review of the bilateral alliance. Based on this review, I 
would like to deepen the alliance in a multilayered way from medium 
and long-term perspectives. I also am determined to establish a 
government that can send messages on security issues, as well as on 
global challenges such as climate change and denuclearization. 
 
Concept of East Asia Community 
 
TOKYO 00002507  005 OF 008 
 
 
 
I think it is very significant to propose building an East Asian 
Community as a long-term concept, with the Japan-U.S. alliance as 
the cornerstone of Japan's foreign and security policies. I would 
like to expedite this initiative, based on cooperation in the region 
in an open and transparent way. It is important to promote 
cooperation in fields where cooperation is possible in the region, 
for instance, trade and investment, the financial environment, and 
education. 
 
Global warming 
 
In order to attain our ambitious target of reducing greenhouse gas 
emissions by 25 PERCENT  from 1990 levels, we will conduct a 
detailed study to determine the most effective and least burdensome 
measures and announce these as soon as possible. I strongly believe 
in the potential of Japan's technical capability and intellectual 
capital, and I want to consider Japan's future in a positive way. 
 
Japan-U.S. FTA 
 
We must promote the liberalization of trade and investment in 
international negotiations on trade issues, including a Japan-U.S. 
free trade agreement (FTA), but we must also keep in mind the need 
to ensure the safety and stable supply of food, raise the food 
self-sufficiency rate, and protect agriculture and farming 
districts. The proposed system of income compensation (for faming 
households) is not premised on abolishing tariffs. 
 
MSDF refueling mission 
 
I am not considering a refueling mission (by the Maritime 
Self-Defense Force) for vessels engaged in antipiracy operations. 
The refueling mission in the Indian Ocean and antipiracy operations 
off Somalia are separate matters. If the new mission is assigned to 
the MSDF, legislation must be drafted, so we cannot easily come up 
with a conclusion. 
 
8) SDF's involvement deleted from cargo inspection bill 
 
NIKKEI (Page 2) (Full) 
October 30, 2009 
 
The full text of a bill to facilitate inspections of cargo ships 
heading to and from North Korea, which the government is expected to 
submit during the ongoing extraordinary Diet session, was unveiled 
yesterday. One of the main points of the legislation is that only 
the Japan Coast Guard (JCG) and the customs will be allowed to 
inspect cargo ships. It has deleted a provision stipulating that in 
the event the JCG alone cannot conduct inspections, the Self-Defense 
Forces (SDF) will handle them. This provision was included in a bill 
that had been presented by the previous coalition government of the 
Liberal Democratic Party (LDP) and New Komeito at the ordinary Diet 
session. The bill, drafted by the LDP-New Komeito coalition 
government, was voted down. The Hatoyama cabinet will adopt the 
cargo inspection bill at a meeting on Oct. 30, because the Social 
Democratic Party, a coalition partner of the ruling Democratic Party 
of Japan, yesterday went through its internal procedures. 
 
9) LDP to present refueling bill to Upper House soon 
 
NIKKEI (Page 2) (Full) 
 
TOKYO 00002507  006 OF 008 
 
 
October 30, 2009 
 
The General Council of the Liberal Democratic Party (LDP), the main 
opposition party, yesterday adopted a bill to continue the Maritime 
Self-Defense Force's refueling operations in the Indian Ocean. The 
LDP will shortly submit the bill as lawmaker-initiated legislation 
to the House of Councillors. The bill calls for extending by one 
year the Antiterrorism Special Measures Law, which will expire next 
January. Although the LDP had asked the New Komeito and other 
opposition parties to jointly submit the bill, the New Komeito 
decided yesterday to reject the request in a meeting of its Central 
Secretary Committee. 
 
10) U.S. rejects Kadena plan again 
 
NIKKEI (Page 2) (Full) 
October 30, 2009 
 
Foreign Minister Katsuya Okada and Defense Minister Toshimi Kitazawa 
met yesterday at the Foreign Ministry with U.S. Forces Japan 
Commander Rice and U.S. Department of Defense Country Director for 
Japan Suzanne Basalla and consulted on the issue of relocating the 
U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa 
Prefecture. In the meeting, the U.S. officials again rejected 
Okada's proposed integration of Futenma airfield into the U.S. 
Kadena Air Base, maintaining that it is difficult to accept the 
proposal from the perspective of military operations. Okada told 
them that the Japanese government will look into whether the 
heliport functions of Futenma airfield can be integrated into the 
Kadena base. "I and the people of Okinawa Prefecture must be 
convinced," Okada said. The U.S. officials consented to continue 
talks. 
 
The U.S. government has urged the Japanese government to reach a 
conclusion before President Obama visits Japan on Nov. 12. The 
United States is growing dissatisfied with Japan's response. 
 
11) Nakaima raps gov. over Futenma 
 
YOMIURI (Page 2) (Full) 
October 30, 2009 
 
Okinawa Gov. Hirokazu Nakaima and local mayors from his prefecture 
met yesterday with Foreign Minister Okada at the Foreign Ministry 
and Defense Minister Kitazawa in the Diet. In the meetings, Nakaima 
and the local officials asked Okada and Kitazawa to settle the 
Futenma issue at an early date. 
 
Nakaima, after the meetings with the foreign and defense ministers, 
reiterated to reporters his conditional consent to accept the 
current plan to relocate Futenma airfield to a coastal area of Camp 
Schwab, a U.S. military installation located in the island 
prefecture's northern coastal city of Nago. Nakaima criticized the 
government, saying, "In my eyes, the various ministers appear to 
have come up with different plans, so it's hard for us to see what's 
what." 
 
12) Plan for Futenma-Kadena integration with reduction of fighters 
on Kadena base mulled, seen to be unfeasible 
 
SANKEI (Page 2) (Full) 
October 30, 2009 
 
TOKYO 00002507  007 OF 008 
 
 
 
In connection with the relocation of the U.S. forces' Futenma Air 
Station (in Ginowan City, Okinawa), it was learned on Oct. 29 that 
the government and the ruling parties are studying a proposal to 
integrate the helicopter units of Futenma with Kadena Air Base 
(straddling the towns of Kadena and Chatan and the city of Okinawa) 
upon reducing the fighters on the Kadena base. A 15-year limit will 
be imposed on the operations of the helicopter units, after which 
they will be relocated to Guam or some other overseas locations in 
the future. The setting of this time limit is meant to conform with 
the pledge of the Democratic Party of Japan during the recent House 
of Representatives election to relocate the Futenma base out of 
Okinawa or out of Japan. 
 
Among administration officials, Foreign Minister Katsuya Okada has 
indicated that the merger plan is being studied as his personal 
idea. However, the U.S. side has rejected this proposal on grounds 
that it will present "operational problems" (according to Secretary 
of Defense Robert Gates), so the plan is not feasible. 
 
The plan being studied by the government and the ruling parties 
calls for reducing the number of F-15 fighters (currently 48) on the 
Kadena base to 20. Exercises by non-Okinawa-based aircraft will also 
be banned, in order to reduce noise. An environmental agreement with 
nearby local governments is also included. The Futenma base will be 
closed down and its helicopter units moved to Kadena. 
 
According to a government source, senior ruling party officials have 
already presented the proposal to the town of Kadena. Meanwhile, at 
a meeting with Okinawa Governor Hirokazu Nakaima on Oct. 29, Okada 
discussed the plan to merge Futenma with Kadena and said that "noise 
will have to be reduced under this plan," indicating that a 
reduction of noise level from the current level in the communities 
around the Kadena base will be a prerequisite. 
 
Okada and Defense Minister Toshimi Kitazawa held a meeting with U.S. 
Forces Japan Commander Lt. Gen. Edward Rice in the late afternoon of 
Oct. 29. Rice pointed out that operating Air Force fighters side by 
side with the Marines' helicopters from Futenma will be dangerous. 
He explained that "the capability to respond to emergencies will be 
undermined," illustrating this with maps and flight data. 
 
The Japanese side indicated that it will continue to examine this 
option. 
 
13) Hatoyama mulls cutting back on Japan's share in host nation 
support for USFJ 
 
NIKKEI (Page 1) (Excerpts) 
October 30, 2009 
 
Prime Minister Yukio Hatoyama on the evening of Oct. 29 indicated 
his intention to look into Japan's host nation support (omoiyari 
yosan or literally "sympathy budget") for U.S. forces stationed in 
Japan with a possibility of cutting outlays. "We are trying to 
determine where the budget can be trimmed in down-to-the-wire 
negotiations, while working with the U.S," Hatoyama told reporters 
at the Prime Minister's Official Residence (Kantei). In 
interpellations by party representatives in a Lower House plenary 
session held earlier, Hatoyama revealed that he has ordered Defense 
Minister Toshimi Kitazawa and Foreign Minister Katsuya Okada to look 
into various options for settling the issue of relocating the U.S. 
 
TOKYO 00002507  008 OF 008 
 
 
Marine Corps' Futenma Air Station in Ginowan City, Okinawa 
Prefecture. 
 
14) Government to lead review of JAL rebuilding plan 
 
NIKKEI (Top play) (Lead para.) 
October 30, 2009 
 
Transport Minister Seiji Maehara on Oct. 29 formally announced a 
policy of using the Japan Corporate Revitalization Support Platform 
(JCRSP), a public organization, for the corporate rehabilitation of 
Japan Airlines (JAL). Japan will formulate a rebuilding plan under 
the JCRSP. Support measures will possibly be set in January next 
year. The JCRSP will look into reinforcing the company's capital 
base using public money and substantively cutting the corporate 
pension. A task force under the transport ministry has been leading 
the work of turning around JAL. However, from now on, the JAL 
rehabilitation plan will be reviewed with the government proactively 
involved in the process. 
 
15) More than 60 DPJ lawmakers join Ozawa group 
 
ASAHI (Page 4) (Abridged) 
October 30, 2009 
 
A group of House of Representatives members affiliated with 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa held 
yesterday its first meeting after the Lower House general election. 
The group, called Isshinkai, decided not to admit new Diet members, 
but the number of its members has increased to almost 50 from 30 or 
so members before the general election. The Ozawa group now has more 
than 60 Lower and Upper House members. 
 
ROOS