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UNCLAS SECTION 01 OF 11 TOKYO 002674 
 
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 11/19/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma relocation: 
4) MOD proposes curtailment of training at Kadena as a condition for 
relocating Futenma facility to Nago  (Nikkei) 
5) Fukushima concerned expeditious decision might be hasty decision 
(Nikkei) 
6) Japanese government under mounting pressure at home and from 
abroad to reach early decision on Futenma  (Yomiuri) 
7) Hatoyama asked Obama to trust him; the president said OK 
(Yomiuri) 
8) MOD formulates proposals to promote implementation of existing 
plan for Futenma facility relocation  (Yomiuri) 
9) Discussion of Futenma relocation outside Japan also necessary 
(Tokyo Shimbun) 
 
Afghanistan: 
10) Okada: No resumption of Indian Ocean refueling mission 
(Akahata) 
11) State Secretary for Foreign Affairs holds talks with Afghan 
president  (Nikkei) 
 
Defense & security: 
12) Contingency plans for use of Kadena one reason U.S. military 
opposes the air base's integration with Futenma facility  (Tokyo 
Shimbun) 
13) Okada: Release of report on investigation of "secret nuclear 
accord" difficult this year  (Nikkei) 
14) Police request U.S. military's cooperate in having sergeant 
appear for questioning about hit-and-run death  (Sankei) 
 
Politics: 
15) Lower House speaker Yokomichi says Futenma issue is Prime 
Minister's responsibility  (Sankei) 
16) LDP and Komeito can't get together or part with each other 
(Mainichi) 
17) Kamei declares support for coalition  (Yomiuri) 
 
Japan Airlines reconstruction: 
18) Two U.S. carriers in tug-of-war for tie-up with JAL  (Nikkei) 
 
Articles: 
 
1) Topheadlines 
Asahi: 
Third-party commission report says JR West information leakage 
caused by corporate culture of giving top priority to the interests 
of the organization 
 
Mainichi: 
Ex-secretaries of DPJ Lower House member Ai Aoki forced to make 
political donations by Ozawa's secretary 
 
Yomiuri: 
34-year old woman to be re-arrested for murder cases in Saitama, 
Chiba in December 
 
Nikkei: 
 
TOKYO 00002674  002 OF 011 
 
 
U.S. company Pfizer to enter Japanese market for generic drugs 
 
Sankei: 
Ex-chairman of Mizutani Construction Company claims 50-million-yen 
donation given to Ozawa, could be bribe for winning dam-project 
contract 
 
Tokyo Shimbun: 
U.S. strategy for contingency in Japan revealed; possible factor 
behind difficulty of merging Futenma with Kadena Air Base 
 
Akahata: 
Big businesses hold reserves even under serious economic recession; 
100 PERCENT  increase in 10 years to 429 trillion yen 
 
2) EDITORIALS 
 
Asahi: 
(1) Government project screening: Great accomplishment should lead 
to next steps 
(2) Party leaders' debate: Prime Minister's evasiveness is 
lamentable 
 
Mainichi: 
(1) Outrageous that party leaders' debate has not been held even 
once 
(2) White Paper on Crime: Deterioration of "moral consciousness" 
 
Yomiuri: 
(1) Appointment of former bureaucrat as National Personnel Authority 
commissioner: No problem if merit-based 
(2) Regulation of tuna fishing: Need for discipline to enjoy toro 
(fatty tuna) 
 
Nikkei: 
(1) Are the major banks over the worst in their business results? 
(2) Shortage of vaccines is the basic problem 
 
Sankei: 
(1) Futenma working group: Do not use this as means to defer 
decision 
(2) Obama Asian tour: Tolerance of China's military expansion is 
regrettable 
 
Tokyo Shimbun: 
(1) Appointment of National Personnel Authority commissioner: 
Tighten control to eradicate amakudari 
(2) Myanmar (Burma): Make the mood for dialogue bear fruit 
 
Akahata: 
(1) Easing of day care regulations: Making sacrifices affecting 
children amounts to abandoning political responsibility 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, November 18 
 
NIKKEI (Page 2) (Full) 
November 19, 2009 
 
09:51 Met Finance Minister Fujii, Parliamentary Secretary of Finance 
Furumoto, and Vice Finance Minister Tango, joined by Senior Vice 
 
TOKYO 00002674  003 OF 011 
 
 
Finance Minister Minezaki, at the Prime Minister's Official 
Residence (Kantei). 
11:01 Met members of groups calling for the return of the Northern 
Territories, including Hokkaido Gov. Harumi Takahashi. Senior Vice 
Minister of Cabinet Office Oshima was also present. 
11:53 Attended a national local heads' convention held at NHK Hall 
in Jinnan. 
13:22 Met former Lower House member Tetsundo Iwakuni at the Kantei. 
Deputy Chief Cabinet Secretaries Matsuno and Matsui and Advisor 
Nakayama were also present. 
15:02 Met the finance minister and Administrative Reform Minister 
Sengoku. Chief Cabinet Secretary Hirano was also present. 
17:02 Met OECD Secretary General Gurria. 
18:14 Attended, along with his wife Miyuki, a party commemorating 
the 70th anniversary the Japanese Society for Rights of Authors, 
Composers, and Publishers (JASRAC). 
19:40 Dined, along with his wife Miyuki, at a Park Hyatt Tokyo 
Japanese restaurant                 with fashion designer Hiroko 
Koshino, International University of Health and Welfare Professor 
Yuji Kuroiwa, and pianist Mari Kumamoto. 
22:41 Arrived at his official residential quarters. 
 
4) Futenma relocation to Nago preconditioned on reducing Kadena 
training: Defense Ministry 
 
NIKKEI (Page 2) (Abridged) 
November 19, 2009 
 
The Defense Ministry decided yesterday to precondition the planned 
relocation of the U.S. Marine Corps' Futenma Air Station in Ginowan, 
Okinawa Prefecture, to a coastal area of Camp Schwab in the island 
prefecture's northern coastal city of Nago on such steps as 
curtailing the flight training of fighter jets deployed to the U.S. 
Kadena Air Base in order to reduce noise. The Defense Ministry plans 
to propose these preconditions in the next meeting of a working 
group set up by the Japanese and U.S. governments over the Futenma 
issue. 
 
The ministry transmitted the decision yesterday to the prime 
minister's office and the Foreign Ministry. Other preconditions 
include: 1) consulting on stipulating environment-oriented measures 
in the Japan-U.S. Status of Forces Agreement, which provides for the 
legal status of U.S. Forces Japan and their personnel, and 2) 
cutting down on the Japanese government's burden sharing of costs 
for the stationing of U.S. forces in Japan (omoiyari yosan, 
literally "sympathy budget)." The ministry wants to obtain public 
understanding by drawing concessions to a certain extent from the 
U.S. government in return for implementing the current Futenma 
relocation plan. 
 
The ministry eyes putting up a 'struggle over conditions' that is 
premised on accepting the current plan. This is because U.S. 
President Obama has shown a flexible stance of accepting minor 
changes to the current plan. "It's possible to adjust a portion of 
the plan that is based on the roadmap for the realignment of U.S. 
forces in Japan," Obama declared in his recent meeting with Prime 
Minister Hatoyama. 
 
Meanwhile, U.S. Secretary of Defense Gates also made a similar 
remark when he visited Japan last month. However, the ministry gave 
weight to the fact that Obama himself referred to the issue. The 
ministry then set about attaching conditions to the relocation of 
 
TOKYO 00002674  004 OF 011 
 
 
Futenma airfield to Nago. 
 
5) SDP head voices concern about hasty decision over Futenma 
 
NIKKEI (Page 2) (Full) 
November 19, 2009 
 
State Minister for Consumer Affairs and Declining Birthrate Mizuho 
Fukushima, who heads the Social Democratic Party, one of the ruling 
Democratic Party of Japan's two coalition partners, has expressed 
concern about the pending issue of relocating the U.S. Marine Corps' 
Futenma Air Station in Okinawa Prefecture. "I'm alarmed about the 
working group of Japan and the United States saying they will reach 
a conclusion promptly," Fukushima said at a press conference 
yesterday. "Taking a wrong step will result in reaching a hasty 
conclusion and will make it difficult to resolve the problem," she 
added. 
 
6) Defense Ministry's amendment proposal calls for accelerating 
transfer of Marines to Guam plan, aiming for progress on Futenma 
issue 
 
YOMIURI (Page 2) (Full) 
November 19, 2009 
 
The Defense Ministry worked out an amendment to the government's 
existing plan to reduce the base burden on Okinawa and submitted it 
to the Prime Minister's Office and the Foreign Ministry yesterday. 
With the proposed amendments, the Defense Ministry aims to move 
forward with the current plan to relocate the U.S. Marine Corps' 
Futenma Air Station in Ginowan City, Okinawa Prefecture, to a 
coastal area of Camp Schwab in Nago City. The government plan 
specifies that the transfer of 8,000 U.S. Marines in Okinawa to Guam 
and the return of significant land areas south of Kadena Air Base 
being used by the U.S. military facilities to Japan will come after 
an alternative facility to the Futenma air base is constructed. But 
the proposed amendment calls for accelerating the plan to transfer 
Marines and part of the plan to return U.S. military facilities. 
Once Prime Minister Yukio Hatoyama and Foreign Minister Katsuya 
Okada decide to approve the existing plan, the ministry will present 
the amendment proposal to the U.S. side as the government's plan, 
with the aim of resolving the Futenma issue by the end of the year. 
 
The Defense Ministry in its proposal hints at its willingness to 
approve of moving the planned construction site further offshore, as 
requested by the Okinawa governor and the Nago mayor. The U.S. 
government's indication of its approval of slight changes in the 
current Futenma relocation plan is reflected in the ministry's 
proposal. 
 
In addition, during the Japan-U.S. summit meeting on Nov. 13, U.S. 
President Barack Obama said regarding the roadmap agreed on between 
Japan and the U.S. in 2006 for the realignment of U.S. forces in 
Japan: "Modifying it is also necessary." Focusing on his flexible 
stance, the ministry intends to ask the U.S. to speed up the plan to 
transfer Marines and also part of the plan to return military 
facilities to Japan. 
 
The amendment further calls for expanding a plan to move training 
activities for fighters at Kadena Air Base out of the prefecture. It 
also proposes creating an environment clause in the Japan-U.S. 
Status of Forces Agreement to allow the central and local 
 
TOKYO 00002674  005 OF 011 
 
 
governments to enter U.S. military bases if environmental 
contamination is caused within the bases and to require the U.S. 
military to restore the land it has used to its original state. 
 
The Foreign Ministry also is laying out its own amendment to the 
existing plan. If Prime Minister Hatoyama decides to approve the 
current plan, the Defense Ministry and the Foreign Ministry are 
expected to compile a government plan based on their proposals, and 
to present it to the U.S. side during a meeting of the committee of 
Japanese and U.S. foreign and defense ministers responsible for the 
Futenma relocation issue. 
 
7) Hatoyama said, "Trust me," regarding Futenma issue, and President 
Obama replied, "OK" 
 
YOMIURI (Page 2) (Full) 
November 19, 2009 
 
During the Nov. 13 Japan-U.S. summit, President Barack Obama called 
for the early implementation of the existing bilateral agreement on 
the relocation of the U.S. Marine Corps' Futenma Air Station in 
Okinawa. In response, Prime Minister Yukio Hatoyama said, "Trust 
me," -- an expression that can be taken that he promised the early 
settlement of the matter. This was revealed on Nov. 18 by 
individuals with knowledge of the exchange. 
 
According to them, the Prime Minister referred to the fact that he 
himself had mentioned the option of moving Futenma out of Okinawa or 
even out of the country during the campaign for the House of 
Representatives election in August. The Prime Minister then said, 
"It is a matter that involves great difficulties," and "I would like 
to reach a conclusion as soon as possible via the working group (to 
be set up by cabinet ministers responsible for foreign and defense 
affairs and others)." Then he added, "Trust me." President Obama 
replied, "OK." 
 
The President delivered a speech on the following day, Nov. 14, in 
which he said: "For the implementation of the bilateral agreement on 
U.S. force realignment, we have agreed to move the matter 
expeditiously through a joint working group." But the Prime Minister 
made the following comment on the night of Nov. 14: "If the 
Japan-U.S. agreement is the premise, there is no need to set up a 
working group. I did not promise (the U.S. side) that we will reach 
a conclusion by the end of the year." The comment sounded negative 
about reaching an early settlement. The concern is widespread in 
Tokyo that if Japan postpones a conclusion, the relationship of 
trust between Hatoyama and Obama will be undermined. 
 
8) Nago mayoral election: Pressure building for early settlement 
 
YOMIURI (Page 2) (Excepts) 
November 19, 2009 
 
Pressure on the government to reach an early settlement on the 
relocation of the U.S. Marine Corps' Futenma Air Station in Okinawa 
Prefecture is building at home and abroad. The U.S. Senate has 
passed a budget bill (related to the construction of military 
installations) that cuts funding for the transfer of U.S. Marines 
stationed in Okinawa to Guam -- approximately 300 million dollars 
(about 27 billion yen) - by approximately 70 PERCENT . In the 
meantime, in Okinawa, forces opposing the relocation of the Futenma 
functions to Nago decided on the 18th to support a single candidate 
 
TOKYO 00002674  006 OF 011 
 
 
to run for the Nago mayoral election in January next year. Both 
issues have the possibility of nullifying the US Forces Japan 
realignment plan as a whole, unless the government reaches a 
decision at an early date. The government is now pressed to reach a 
decision as soon as possible. 
 
Regarding the Nago mayoral election, those opposing accepting the 
airfield facilities have announced that they have decided to support 
a single candidate, Susumu Inamine. Inamine is a first-time 
candidate and former chief of the education board. The election will 
likely be a one-on-one contest between Inamine and incumbent Nago 
Mayor Yoshikazu Shimabukuro, who is in favor of the existing 
relocation plan. There is a strong possibility that the government 
will be bound by the election outcome in reaching a decision, 
because the election results will make it clear whether the city 
accepts the Futenma facilities or not. 
 
9) Commentary on USFJ strategy for Japan contingency: Discussion on 
overseas relocation of air force capability necessary 
 
TOKYO SHIMBUN (Page 3) (Full) 
November 19, 2009 
 
Shigeru Handa, editorial staff member 
 
A U.S. Forces Japan (USFJ) plan to dispatch additional military 
aircraft to Kadena Air Base (KAB) and Futenma Air Station has been 
revealed. Some 80 airplanes will be deployed to KAB and around 300 
helicopters will be deployed to the Futenma base from the U.S. 
mainland. 
 
Even KAB, which has two 3,700-meter runways and which could easily 
absorb the Futenma Air Station during peacetime, will be very 
crowded. It appears that Foreign Minister Katsuya Okada's proposal 
to merge KAB and Futenma as a solution to the Futenma relocation 
issue will not be feasible. 
 
However, the number of aircraft at KAB is not constant. The B-52 
bomber units withdrew in 1970 at the height of the Vietnam War. The 
deployment of the F-15 fighters started in 1979, but 18 of them were 
withdrawn in 1992, after the disintegration of the Soviet Union. 
 
Last April, the USFJ made an unofficial proposal to the Ministry of 
Defense to withdraw all fighters from the Misawa base in Aomori 
Prefecture and to withdraw some aircraft from KAB. While the 
proposal has not been considered in detail, this development serves 
to show that the present state of the bases is not permanent. 
 
A squadron of the top-of-the-line F-22 stealth fighters, which have 
been coming and going at KAB, will be more powerful than two 
squadrons of the F-15 fighters based in Kadena. 
 
It seems that with the introduction of unmanned aircraft, the U.S. 
Air Force is also considering using the F-22s to fill the gap 
created by decommissioned fighters or rotating the deployment of 
aircraft between U.S. military bases in Japan and the U.S. mainland. 
 
 
The Japan-U.S. talks on USFJ realignment, which includes the Futenma 
relocation issue, started in February 2005 with both sides agreeing 
to a "review of the USFJ troop structure." Discussions between the 
two countries on all options, including the relocation of air force 
 
TOKYO 00002674  007 OF 011 
 
 
capabilities overseas, should not be considered taboo, but should be 
a central theme. 
 
10) Foreign Minister Okada says MSDF logistic support operations in 
Indian Ocean will not be resumed 
 
AKAHATA (Page 2) (Full) 
November 19, 2009 
 
At the House of Representatives Foreign Affairs Committee on Nov. 
18, Foreign Minister Katsuya Okada discussed the withdrawal of the 
Maritime Self-Defense Force (MSDF) from logistic support operations 
in the Indian Ocean when its legal authorization, the new special 
antiterrorism measures law, expires in January. He said: "We have 
decided not to undertake any further refueling operations," 
revealing that he has no plans to resume the mission. This was in 
response to a question from Katsuei Hirasawa (Liberal Democratic 
Party). 
 
11) Senior Vice Foreign Minister Fukuyama meets with Afghan 
president 
 
NIKKEI (Page 2) (Full) 
November 19, 2009 
 
Kabul, Jiji 
 
Senior Vice Foreign Minister Tetsuro Fukuyama held talks on Nov. 18 
with Afghan President Hamid Karzai in Kabul. Fukuyama explained to 
Karzai about Japan's aid package worth 5 billion dollars over the 
next five years to help reconstruct Afghanistan. He called on Karzai 
to make efforts to restore public order and improve his governance 
capability. Karzai expressed his appreciation for Japan's assistance 
and cited such issues as the restoration of public order as 
challenges for his second term in office. 
 
12) U.S. strategy for Japan contingency revealed; a possible factor 
behind difficulty to merge Futenma base with Kadena Air Base 
 
TOKYO SHIMBUN (Top play) (Full) 
November 19, 2009 
 
It was learned that U.S. Forces Japan (USFJ) has a contingency plan 
to deal with an armed invasion of Japan by dispatching an additional 
80 aircraft to the Kadena Air Base (KAB) in Okinawa (straddling the 
towns of Kadena and Chatan and Okinawa City) and an additional 300 
helicopters to Marine Corps Air Station Futenma (in Ginowan City). 
This explains the military factor behind the U.S. side's renewed 
rejection of the proposal to merge Futenma Air Station with the KAB 
at the Japan-U.S. cabinet level working group on Futenma 
relocation. 
 
According to a source involved with Japan and U.S. military issues, 
the U.S. Air Force has drafted a plan to boost combat capability in 
the event of a contingency in Japan. An additional 80 aircraft, 
including F-16 fighters, airborne warning and control system (AWACS) 
planes, air tankers, and transports, would be dispatched from the 
U.S. mainland. 
 
Since there are approximately 100 military planes, including 54 F-15 
fighters of the 18th Air Wing and the U.S. Navy's P-3C patrol 
planes, stationed regularly at the KAB at present, the contingency 
 
TOKYO 00002674  008 OF 011 
 
 
plan calls for doubling the number of aircraft. 
 
In a contingency, the U.S. Marines will also dispatch an additional 
300 large helicopters for the transport of troops to the Futenma 
base. This will mean a seven-fold increase from the current 50 
helicopters. 
 
With regard to the reason why the scale of increase in aircraft by 
the Marines would be larger than that by the Air Force, the same 
source said: "The explanation I got is that damaged helicopters and 
those with mechanical troubles will not be fixed but rather will be 
replaced by other aircraft." 
 
If all the aircraft and helicopters were concentrated in KAB, the 
base would be jammed with aircraft. The U.S. side reportedly 
explained that: "The minimum speed of fighters and the maximum speed 
of helicopters at takeoff and landing are the same at 120 knots 
(approximately 220 kilometers per hour), and this will cause 
operational problems if they fly together. Therefore, it is 
necessary to have two air bases in Okinawa." 
 
The USFJ's contingency strategy is based on a hypothetical armed 
attack by the Soviet Union, which had military forces on par with 
America's in the Far East during the Cold War. The same level of 
military reinforcement is said to be necessary for a contingency in 
Taiwan or on the Korean peninsula. 
 
While the probability of such a contingency is extremely low, the 
USFJ reportedly premises its use of military bases on a contingency 
situation. 
 
13) Foreign Minister Okada: It will be difficult to disclose 
investigation results of "secret nuclear deal" before year's end 
 
NIKKEI (Page 2) (Full) 
November 19, 2009 
 
At a House of Representatives Foreign Affairs Committee session 
yesterday, Foreign Minister Katsuya Okada stated that it will be 
difficult to disclose the investigation results of allegations 
concerning the secret Japan-U.S. nuclear deal before the end of the 
year. He indicated the outlook that the investigation results will 
be made public early next year. 
 
14) Okinawa Prefectural Police asks for U.S. military's cooperation 
in having staff sergeant appear for questioning over hit-and-run 
incident 
 
SANKEI (Page 22) (Full) 
November 19, 2009 
 
A 27-year-old staff sergeant based at the U.S. Army Torii 
communications station has been refusing to appear for police 
questioning on a voluntary basis in connection with the hit-and-run 
incident that killed a 66-year-old man of Yomitan Village, Okinawa 
Prefecture. The Okinawa Prefectural Police revealed on Nov. 18 that 
they have asked the U.S. military for its cooperation in having the 
staff sergeant respond to their request for his appearance as a 
suspect. 
 
In order to report the criminal charges regarding the incident to 
the U.S. military in accordance with the Japan-U.S. Status of Forces 
 
TOKYO 00002674  009 OF 011 
 
 
Agreement, the prefectural police plan to carry out the 
investigation cautiously. Meanwhile, the lawyer representing the 
staff sergeant expressed on Nov. 18 an intention to respond to 
questioning if the prefectural police report the criminal charges 
(to the U.S. military). 
 
15) Lower House Speaker Yokomichi: Coordinating views on Futenma 
issue is prime minister's duty 
 
SANKEI (Page 5) (Full) 
November 19, 2009 
 
House of Representatives Speaker Takahiro Yokomichi yesterday made 
an unprecedented cutting remark toward Prime Minister Yukio Hatoyama 
in reference to inconsistent remarks cropping up from among cabinet 
ministers responsible for dealing with the relocation of the U.S. 
Marine Corps' Futenma Air Station. Delivering a speech in Tokyo, 
Yokomichi said: "Coordinating views (among cabinet ministers) is 
necessary. That is Mr. Hatoyama's duty." 
 
Yokomichi further said: "Some members of the Democratic Party of 
Japan say that the Diet is not a place for the ruling parties to 
discuss but a place for discussion between the government and the 
opposition parties. Although a parliamentary cabinet system has been 
adopted, the Diet is based on the doctrine of separation of powers 
of administration, legislation and judicature. It is important for 
all political parties to discuss matters thoroughly." This remark 
was intended to express his opposition to DPJ Secretary General 
Ichiro Ozawa's stock argument that the Diet is a place for the 
opposition parties to confront the government and the ruling 
parties," although he did not mention Ozawa by name. 
 
16) LDP, New Komeito maintain reasonable distance 
 
MAINICHI (Page 5) (Full) 
November 19, 2009 
 
Hirohiko Sakaguchi 
 
The secretaries general, policy chiefs and Diet affairs committee 
chairmen of the opposition Liberal Democratic Party (LDP) and New 
Komeito met yesterday for the first time since they fell into the 
opposition. They discussed how to deal with Diet business. They had 
not had much contact with each other for about the past month and a 
half, based on the wishes of the New Komeito, which wants to play up 
its own political identity. The Democratic Party of Japan (DPJ) is 
the largest party in both Diet chambers. Under the current 
situation, if the LDP and New Komeito discontinue their relations, 
they might both be wiped out. Therefore, the two opposition parties 
appear to be maintaining neutral attitudes for the time being by 
jointly submitting lawmaker-initiated bills. 
 
In yesterday's meeting, the participants agreed to call on the 
government and ruling parties to hold a party heads debate on Nov. 
25 and intensive deliberations on foreign and security policy and 
the issue of politics and money at the House of Representatives 
Budget Committee, and to report at the Diet on the Japan-U.S. summit 
meeting and other events. 
 
The LDP and New Komeito have jointly submitted a bill to support 
people infected with hepatitis to the current Diet session. The two 
parties are now working on another bill to settle a class action 
 
TOKYO 00002674  010 OF 011 
 
 
lawsuit on the recognition of atomic-bomb disease. They are expected 
to jointly submit a total of five bills during the ongoing Diet 
session. However, the New Komeito did not agree to submit a bill on 
cargo inspection of ships heading to and from North Korea or a bill 
to extend the Maritime Self-Defense Force's refueling mission in the 
Indian Ocean. On the other hand, the LDP did not join the New 
Komeito's plan to submit a bill revising the Political Funds Control 
Law. Gaps between the two parties appear to be growing. 
 
17) Financial Affairs Minister Kamei: We will maintain present 
ruling coalition framework 
 
YOMIURI (Page 4) (Full) 
November 19, 2009 
 
With regard to his plan to form a new party with the New Party 
Nippon and the group led by former trade minister Takeo Hiranuma, an 
independent, People's New Party leader Shizuka Kamei, who is now 
serving as state minister for financial services, said yesterday at 
a press conference: "(Even if the new party plan is realized) my 
party will not withdraw from the coalition government. That's 
obvious," indicating his intention to maintain the present coalition 
framework. 
 
18) Two U.S. carriers in tug-of-war over tie-up with JAL: Delta 
announces 92 billion yen in capital assistance with eye on open 
skies agreement 
 
NIKKEI (Page 9) (Excerpts) 
November 19, 2009 
 
Delta Air Lines, the biggest U.S. carrier, on Nov. 18 announced that 
it had floated a proposal to Japan Airlines, now under 
restructuring, for offering capital assistance totaling roughly 1 
billion dollars, or 92 billion yen, and joining an alliance it 
leads. Teaming up with an investment fund, American Airlines, the 
second largest U.S. carrier that forms another alliance, has also 
proposed to JAL to offer up to 130 billion yen. The governments of 
Japan and the U.S. will likely sign an open skies agreement shortly. 
The two U.S. carriers aim to expand operations in the Asian market, 
by bringing JAL into the fold. JAL plans to decide its capital 
tie-up partner as early as this year. The tug-of-war between the two 
U.S. carriers will likely heat up. 
 
Business expansion in Asia aimed at 
 
Delta President Edward Bastian on the 18th held a press conference 
in Tokyo and released his company's plan to offer capital assistance 
to JAL. According to Bastian, the company has floated a proposal to 
JAL that it is ready to offer capital assistance totaling 1.2 
billion, of which 500 million dollars would likely be dispensed by 
purchasing shares by the third party allocation capital increase. 
 
Delta is also offering 20 million dollars to cover expenses for JAL 
to join the SkyTeam alliance, by defecting from the Oneworld global 
airline alliance and 300 million dollars for offsetting a short-term 
decline in JAL's sales, as well as 200 million dollars for losses 
associated with the sale of aging planes. 
 
American Airlines on the same day issued a statement noting that 
since switching alliances amid financial restructuring involves 
taking risks, the best option for JAL would be continuing business 
 
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under the present state (as a member of the Oneworld alliance)." The 
carrier has offered up to 130 billion yen in assistance, teaming up 
with TPJ, a leading U.S. investment fund. 
 
There is a regulation that limits the ratio of ownership of carriers 
by foreign air carriers to one-third. However, JAL is likely to 
conduct an additional capital increase of about 300 billion yen in 
the process of restructuring, so both carriers are not likely to run 
into any issues. 
 
JAL is now applying to the government-backed Enterprise Turnaround 
Initiative Corp. of Japan for capital assistance for restructuring. 
JAL President Haruka Nishimatsu has stated that it would be natural 
for the company to maintain a partnership with American Airlines. 
Even so, Delta is competing with American for capital assistance to 
JAL, because Japan and the U.S. will likely sign an open skies 
agreement as early as early December. 
 
ROOS