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UNCLAS SECTION 01 OF 09 TOKYO 002662 
 
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 11/18/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma endgame: 
4) Japan and U.S. agree to seek early resolution to Futenma issue 
(Yomiuri) 
5) Japan-U.S. working group; few options, goal of a decision within 
the year  (Nikkei) 
6) U.S. warns of a slash in funding for relocating Marines to Guam 
(Yomiuri) 
7) Budget Screening Team eyes GX rocket engine  (Yomiuri) 
8) Parties coalesce around single mayoral candidate opposed to 
relocation of airfield to Nago  (Sankei) 
9) U.S. presses for airfield relocation according to existing plan 
(Nikkei) 
10) Prime Minister says Futenma working group's decision will carry 
weight  (Asahi) 
11) Foreign Minister discloses "two plus two" format for 
consultations on deepening Japan-U.S. alliance  (Asahi) 
 
Foreign relations: 
12) Chinese Foreign Minister to visit Japan tomorrow   (Mainichi) 
 
Politics: 
13) Infrastructure Minister Maehara instructs Prime Minister in 
foreign policy  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Government project screening produces savings of 1 trillion yen 
initially 
 
Mainichi: 
First half of government project screening produces 1.4 trillion yen 
in savings; 33 projects scrapped 
 
Yomiuri: 
Japan, U.S. agree on "early solution" for Futenma relocation at 
first meeting of working group 
 
Nikkei: 
U.S., China to build "strategic trust," collaborate for world 
economic recovery 
 
Sankei: 
First round of government project screening ends after five days; 
"results" given top priority 
 
Tokyo Shimbun: 
First half of government project screening ends, reducing budget 
requests by 470 billion yen, 900 billion yen in hidden funds to be 
returned to treasury 
 
Akahata: 
Problems with government project screening: Advocates of 
deregulation included in team members; labor and medical services 
 
TOKYO 00002662  002 OF 009 
 
 
will be undermined 
 
2) EDITORIALS 
 
Asahi: 
(1) U.S.-China summit: Deepening and limitations of the age of the 
G-2 
(2) Regional autonomy: Dispel ambiguity promptly 
 
Mainichi: 
(1) U.S. policy on China: Responsibility to ask China to assume 
responsibility 
(2) Government project screening: Sense of familiarity toward budget 
 
 
Yomiuri: 
(1) Futenma working group: Reach a solution by year's end to dispel 
distrust in Japan 
(2) Obama's first visit to China: Can a new era be built by giving 
priority to pragmatic interests? 
 
Nikkei: 
(1) Carelessness of remarks resulting in loss of trust in Prime 
Minister 
(2) U.S., China should also fulfill responsibility on environment 
 
Sankei: 
(1) Doing away with party leaders' debate runs counter to Diet 
reform 
(2) Economic stimulus measures: Avoid a double-dip recession by all 
means 
 
Tokyo Shimbun: 
(1) U.S.-China summit: Make G-2 cooperation an opportunity for 
Japan 
(2) Regional autonomy: Implement bold transfer of tax revenues 
 
Akahata: 
(1) Foreign minister's visit to Okinawa: Give up on building new 
base and relocation within Okinawa 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, November 17 
 
NIKKEI (Page 2) (Full) 
November 18, 2009 
 
07:52 Attended a ministerial committee meeting on budget 
compilation, followed by a cabinet meeting in the Diet building. 
09:02 Arrived at the Prime Minister's Official Residence (Kantei). 
10:29 Attended the unveiling ceremony for the Regional Autonomy 
Strategic Council held at Nihon Jitensha Kaikan in Akasaka. Internal 
Affairs and Communications Minister Haraguchi and others were also 
present. 
10:43 Arrived at the Kantei. 
13:03 Attended a Lower House plenary session. 
15:55 Met DPJ Upper House Secretary General Takashima, 
Administration Committee Chair Okumura, Advisor Nakayama, and 
others. 
16:13 Arrived at the Kantei. 
18:07 Attended a Tokyo Shiraoi-kai meeting held at Zenkoku Choson 
 
TOKYO 00002662  003 OF 009 
 
 
Kaikan in Nagatacho. 
18:36 Met Foreign Minister Okada at the Kantei. 
19:33 Returned to his official residential quarters. 
20:12 Dined with his wife, Miyuki, at a Japanese restaurant in TS 
Kyowa Rokubankan in Akasaka. 
21:44 Arrived at his official residential quarters. 
 
4) Japan, U.S. agree on "early solution" for Futenma relocation at 
first working group meeting 
 
YOMIURI (Top play) (Full) 
November 18, 2009 
 
The first meeting of the cabinet-level working group of ministers in 
charge of foreign affairs and defense on the relocation of the U.S. 
forces' Futenma Air Station in Okinawa was held at the Ministry of 
Foreign Affairs on Nov. 17. The two sides agreed to reexamine the 
process that led to the current plan to relocate the Futenma base to 
Camp Schwab in Nago City in order to work for a solution "as soon as 
possible." They also agreed to hold consultations of senior 
bureaucrats in addition to the cabinet-level talks. 
 
Prime Minister Yukio Hatoyama gave the following comments on the 
working group on the evening of Nov. 17: "If the discussions between 
Japan and the U.S. come to one conclusion, I think it will be 
necessary to accept that as the most important decision," indicating 
that he will respect the conclusion reached by the working group. He 
made the above remarks to reporters at the Prime Minister's Official 
Residence. 
 
Discussing the Nago mayoral election in January, Hatoyama stressed: 
"I have not said that we will not come up with a conclusion until 
the outcome of the election (is known). We will have to make a 
decision at an appropriate time. The national government needs to 
take that responsibility." 
 
With regard to the working group, while the U.S. considers this to 
be a forum for implementing the agreement reached between the two 
governments in May 2006, Hatoyama has indicated that the Futenma 
relocation plan will be discussed from scratch. In this connection, 
Foreign Minister Katsuya Okada sought clarification at the beginning 
of the working group meeting on Nov. 17 that the process of 
reexamination will not be premised on the current relocation plan. 
The U.S. side agreed, but Assistant Secretary of Defense Wallace 
Gregson reiterated the U.S. position that "the current plan is the 
only feasible option." Defense Minister Toshimi Kitazawa told 
reporters after the meeting that, "The Foreign Minister and I 
believe that we need to come up with some sort of conclusion before 
the end of the year." 
 
5) Japan-U.S. high-level working group meeting on Futenma; looking 
for settlement before year's end 
 
NIKKEI (Page 2) (Excerpts) 
November 18, 2009 
 
At a meeting of a Japan-U.S. working group to discuss the relocation 
of the U.S. Marine Corps' Futenma Air Station in Ginowan City, 
Okinawa Prefecture, the U.S. side once again called for the 
implementation of the existing plan, further narrowing options 
available to the Japanese government. The Ministry of Foreign 
Affairs (MOFA) and the Defense Ministry, the U.S.'s interlocutors in 
 
TOKYO 00002662  004 OF 009 
 
 
the talks, are trying to find a scenario for the settlement of the 
issue before year's end. However, with cabinet members differing in 
their views on the issue, both ministries are having difficulties, 
caught between the U.S. and the prime minister. Emerging from the 
working group meeting, Defense Minister Toshimi Kitazawa stressed, 
"The foreign minister and I share the perception that we must reach 
a certain degree of closure by the end of the year, which is what 
'expeditiously' means." The U.S. side brought up Congress in 
discussing the Futenma issue. Likewise, the Japanese side is 
wrestling with its own issues. These are tied to domestic affairs. 
One is the compilation of the fiscal 2010 budget. The government is 
scheduled to draft the budget in late December. Unless the Futenma 
issue is settled before that timeframe at the latest, the government 
would find it impossible to allocate funds for planned policies. 
Another issue is the Nago City mayoral election in January next 
year, in which the Futenma issue is expected to become the most 
contentious issue. Nago City has decided to accept the relocation 
plan. However, its decision could become uncertain, depending on the 
outcome of the election. Many government officials and ruling party 
members are of the opinion that it is the state that must settle the 
issue, and yet it would unfortunately seem to have relegated the 
task to the decision of the citizens of Nago City, as the foreign 
minister put it. It is hard to fathom the prime minister's 
thinking. 
 
Political schedule 
 
Dec. 7-18 The 15th session of the Conference of the Parties to the 
Climate Change (COP15 in Copenhagen) 
Mid-December thorough late December The government is expected to 
adopt guidelines for revised fiscal 2010 tax code and the draft 
budget. 
2010 
January The regular session of the Diet is to be convened. 
                                           15 Law related to the 
refueling mission in the Indian Ocean expires. 
                                           24 Nago City mayoral 
election 
March - April Passage of the fiscal 2010 budget and related laws? 
July (as planned) Upper House election 
November Okinawa gubernatorial election 
 
6) U.S. warns Japan of possible reduction in funds for Guam 
relocation; presses Japan for settlement before year's end 
 
YOMIURI (Page 3) (Full) 
November 18, 2009 
 
U.S. Ambassador to Japan John Roos, meeting the press corps after 
the first meeting (yesterday of the Japan-U.S. cabinet-level working 
group on the relocation of Futenma Air Station), said: "We share the 
belief that this matter must be resolved expeditiously." The U.S. 
side intends to press Japan for an early decision, taking the 
position that in order to implement the plan to relocate Futenma to 
the coastal area of Camp Schwab without fail, it will be essential 
to reach a conclusion before year's end. 
 
"Although the U.S government supports the planned Guam relocation 
and is working very hard, if the unstable situation (regarding the 
Futenma relocation issue) continues, we cannot rule out the 
possibility that the reaction of the U.S. Congress will change." 
Deputy Assistant Secretary of Defense Michael Schiffer made this 
 
TOKYO 00002662  005 OF 009 
 
 
statement during the working group meeting to warn Japan that if the 
current situation persists, the U.S. Congress might not endorse the 
budget for relocating the U.S. Marine Corps from Okinawa to Guam. 
 
The U.S. Congress is currently deliberating on a fiscal 2010 budget 
bill regarding the construction of military facilities on Guam that 
are required for relocating 8,000 U.S. Marine Corps from Okinawa. A 
Senate committee has voted for a budget bill designed to slash 211 
million dollars, or about 70 percent of the 300 million dollars 
sought by the U.S. administration. 
 
The Senate is expected to take a vote on the bill in a plenary 
session as early as this week. A unified final bill will be produced 
possibly by mid-December through talks at a joint committee of the 
two chambers and other forums. 
 
According to a source familiar with Japan-U.S. relations, when the 
establishment of a working group was being considered by the U.S. 
government, the Defense Department insisted on confirming the 
following with the Japanese side so that the working group would not 
be used (by Japan) to postpone a settlement until next year: (1) 
options other than the existing plan are unthinkable for the U.S. 
government, and (2) a conclusion must be reached swiftly by the end 
of the year. 
 
The Defense Department is particularly alarmed that if an opponent 
of the relocation plan wins the mayoral election of Nago, the 
relocation site for Futenma, next January, the existing relocation 
plan might not be implemented, according to an expert on Japan in 
the U.S. 
 
7) Details of government project screening procedures 
 
Government panel deems GX rocket project unnecessary but will look 
into development of engine 
 
YOMIURI (Page 10) (Excerpts) 
November 18, 2009 
 
Japan Aerospace Exploration Agency, independent administrative 
corporation 
 
(1) GX rocket (5.8 billion yen) requested by the Education, Culture, 
Sports and S&T Ministry 
 
Finance Ministry: Already 70 billion yen has been spent on the GX 
rocket development project, and another 80 to 140 billion yen will 
be needed in the future. 
 
Screening team member: The GX rocket is a commercial rocket, but it 
might be difficult to sell (overseas). In this sense, the project 
itself is meaningless. 
 
Screening team member: Unless the rocket is developed, the project 
will become meaningless. I wonder if the development of the engine 
alone will bring about commercial benefits. 
 
Education Ministry: There are many cases in which a rocket is 
developed for use with superior engine. 
 
Screening team member: If you believe the project has potential, you 
should encourage private firms to invest in it and conduct testing. 
 
TOKYO 00002662  006 OF 009 
 
 
 
Education Ministry: There is no private firm eager to invest in the 
project at the present time. 
 
(Conclusion) 
 
Give up earmarking necessary funds and scrap the GX rocket 
development project. Continue looking into whether the development 
of its engine should be continued. 
 
(2) H-II Transfer Vehicle (HTV), satellite launch (34.944 billion 
yen) requested by the Education Ministry 
 
Screening team member: Is it possible to change the international 
pledges made for Japan-U.S. or multinational projects? 
 
Education Ministry: The U.S. has produced satellites, while Japan 
has manufactured measuring equipment. If Japan stops producing the 
equipment, the project itself will have to be altered. 
 
Screening team member: The explanation "whether benefits will be 
brought about" made by a budget examiner of the Finance Ministry is 
not proper to use for science. It should contribute to human beings. 
 
 
 (Conclusion) 
 
Cut the requested amounts for the HTV project and the project for 
satellite launches by about 10 PERCENT  each. 
 
A project involving competitive funds and the research and 
development of a nuclear power system (5.555 billion yen), and 
another project for the development of measuring instruments and the 
development of advanced measuring equipment analysis technology and 
equipment (5.51 billion yen) requested by the Education Ministry 
 
Screening team member: If one case costs several million yen, it 
would be acceptable to pursue the dream, but since each case costs 
over 100 million yen, it is necessary to consider it in terms of its 
potential feasibility and from a strategic viewpoint. 
 
(Conclusion) 
 
Cut the requested amounts for the R&D of a nuclear power system by 
about 20 PERCENT  and for the development of measuring equipment by 
10 to 20 PERCENT . 
 
8) Groups opposing Futenma relocation plan decide on single 
candidate for Nago mayoral election 
 
SANKEI (Page 5) (Full) 
November 18, 2009 
 
A mayoral election will be held in Nago City, Okinawa Prefecture, in 
January 2010. In the election, whether to accept the relocation of 
U.S. Marine Corps Air Station Futenma to Nago will be a major 
campaign issue. A group supporting candidate Susumu Inamine, 64, 
former chairman of the city's board of education, whom the 
Democratic Party of Japan and Social Democratic Party have decided 
to recommend, and another group backing candidate Yasushi Higa, 65, 
a part-time university lecturer, whom the Japanese Communist Party 
intends to recommend, agreed yesterday evening to join forces in 
 
TOKYO 00002662  007 OF 009 
 
 
backing Inamine. When they announced their candidacies for the 
mayoral election, both Inamine and Higa expressed their opposition 
to the existing plan to relocate the Futenma base to Nago. 
 
9) U.S. stands by current Futenma relocation plan at first meeting 
of working group 
 
NIKKEI (Page 1) (Full) 
November 18, 2009 
 
The Japanese and U.S. governments held the first meeting of the 
working group on the relocation of the U.S. forces' Futenma Air 
Station in Ginowan City, Okinawa, at the Ministry of Foreign Affairs 
on Nov. 17. The U.S. reiterated its demand to relocate the Futenma 
base under the current plan of moving the base to the coastal area 
of Camp Schwab (in Nago City). It pressed for a solution on the 
Futenma issue before the end of the year to be in time for the 
budget deliberations at the U.S. Congress. The Japanese side also 
agreed to reach a solution promptly. 
 
Foreign Minister Katsuya Okada, Defense Minister Toshimi Kitazawa, 
and other officials attended the meeting from the Japanese side, 
while U.S. Ambassador to Japan John Roos, Assistant Secretary of 
Defense Wallace Gregson, and others participated from the U.S. side. 
The meeting lasted for 45 minutes. Okada pointed out that the 
working group "will engage in an examination process of the Futenma 
issue, and it is important to reach a solution quickly." He conveyed 
to the U.S. officials that he understands President Barack Obama's 
position on implementing the current relocation plan. 
 
Gregson argued that "the current plan is the only feasible option, 
and this is the view of the entire U.S. government." Deputy 
Assistant Secretary of Defense Michael Schiffer said: "If 
uncertainty continues in the Futenma issue, the possibility of 
Congress changing its response cannot be ruled out. Please keep this 
in mind." He thus indicated that if a conclusion is deferred beyond 
the end of the year, this will inevitably have an impact on the 
entire U.S. Forces Japan realignment package. 
 
Prime Minister Yukio Hatoyama told reporters on the evening of Nov. 
17: "If the discussions between Japan and the U.S. come to one 
conclusion, it goes without saying that we need to accept that as 
the most important decision," indicating he will respect the 
conclusion reached by the working group. This was in response to 
questions from reporters at the Prime Minister's Official 
Residence. 
 
10) Hatoyama to give weight to working group's conclusion on Futenma 
relocation 
 
ASAHI (Page 4) (Full) 
November 18, 2009 
 
The Japanese and U.S. governments held at the Foreign Ministry 
yesterday the first meeting of their ministerial-level working group 
to consult on the pending issue of relocating the U.S. Marine Corps' 
Futenma Air Station in Ginowan, Okinawa Prefecture. In the meeting, 
the two governments agreed to resolve the issue promptly. Prime 
Minister Yukio Hatoyama indicated his intention yesterday to attach 
importance to the working group's conclusion that is expected to be 
reached by the end of the year. "Once Japan and the United States 
reach a conclusion after consultations, I must accept that as the 
 
TOKYO 00002662  008 OF 009 
 
 
decision with the most weight," Hatoyama said. 
 
The working group meeting was held with the participation of 
Japanese and U.S. government officials, including Foreign Minister 
Katsuya Okada, Defense Minister Toshimi Kitazawa, U.S. Ambassador to 
Japan Roos, U.S. Assistant Secretary of Defense Gregson, and Deputy 
Assistant Secretary of Defense Schiffer. Okada explained the results 
of his recent visit to Okinawa and asked the U.S. participants about 
such matters as his proposal to integrate the heliport functions of 
Futenma airfield into the U.S. Kadena Air Base. In response, Gregson 
sought to implement the current plan to relocate the Futenma base to 
the Henoko area of the island prefecture's northern coastal city of 
Nago. "The current plan is the only feasible option and it's the 
U.S. government's idea," Gregson stressed. 
 
In addition, Schiffer, referring to the planned transfer of 8,000 
U.S. Marines from Okinawa to Guam in a package with the Futenma 
relocation, indicated that a deferred conclusion would make it 
difficult for the U.S. government to take budget action for the 
relocation of Okinawa-based Marines to Guam. "If the unstable 
situation continues, we cannot rule out the possibility of a 
different response from the U.S. Congress," Schiffer said. 
Meanwhile, Hatoyama and U.S. President Obama differ on how to 
characterize the working group. In this regard, the two governments 
confirmed that they will accelerate their verification of an 
alternative facility for Futenma airfield. 
 
11) Deepening Japan-U.S. alliance on agenda for foreign, defense 
ministerial: Okada 
 
ASAHI (Page 4) (Full) 
November 18, 2009 
 
Japan and the United States agreed in a recent summit meeting of 
Prime Minister Hatoyama and President Obama to enter upon a new 
process of consultations in order for the two countries to deepen 
their alliance. In this regard, Foreign Minister Katsuya Okada, 
meeting the press yesterday, indicated that the process will take 
the form of the Security Consultative Committee (SCC), or a 
'two-plus-two' ministerial, involving foreign and defense ministers 
from the Japanese and U.S. governments. 
 
12) Chinese foreign minister to visit Japan tomorrow 
 
MAINICHI (Page 5) (Full) 
November 18, 2009 
 
Chinese Foreign Minister Yang Jiechi will visit Japan on Nov. 19-22 
and hold talks with Foreign Minister Katsuya Okada on the 19th. This 
schedule was decided on the 17th. Okada revealed this at a press 
conference yesterday. The two foreign ministers are expected to 
exchange views on such issues as the dispute over exploration rights 
for gas fields in the East China Sea. Okada also stated at the press 
conference that a visit to Japan by Vice President Xi Jinping "will 
be a topic that will be discussed in the upcoming foreign 
ministerial meeting." Okada and Yang will discuss the possibility of 
a visit to Japan by Xi before the end of the year. 
 
13) Transport Minister Maehara gives lessons on foreign, security 
issues to Hatoyama 
 
ASAHI (Page 1) (Full) 
 
TOKYO 00002662  009 OF 009 
 
 
November 18, 2009 
 
During a House of Representatives plenary session yesterday, there 
was a scene in which Minister of Land, Infrastructure, Transport and 
Tourism Seiji Maehara, who sat next to Prime Minister Yukio 
Hatoyama, "gave lessons" on foreign and security issues to him. 
Maehara made notes on the back of his material, and Hatoyama was 
leaning forward to hear his explanation. 
 
Maehara wrote down such items as "the Status of Forces Agreement" 
and "redefinition of the Japan-U.S. Security Arrangements (50th 
anniversary next year)." He used an upward arrow to indicate that 
Japan is pressuring the U.S. and a downward arrow to indicate that 
the U.S. is pressuring Japan. He put an upward arrow for the U.S. 
force realignment issue (the relocation of the Futenma Air Station) 
and a downward arrow for Afghanistan and Pakistan. The Hatoyama 
administration has strayed slightly off course over the U.S. force 
realignment issue. Maehara seems to have lent a helping hand to 
Hatoyama. 
 
ROOS