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UNCLAS SECTION 01 OF 10 TOKYO 002912 
 
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 12/22/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Politics: 
4) Hatoyama says current gasoline tax to be maintained, no income 
limit for child allowances  (Nikkei) 
5) Ozawa says Japan should assert itself in relations with U.S. 
(Mainichi) 
6) Foreign Minister tells mayors he will work for adoption of 
"Hiroshima-Nagasaki Protocol" at NPT conference  (Asahi) 
7) Prime minister's former aide to be indicted without arrest on 
24th  (Nikkei) 
8) Hasegawa indicates he will leave LDP  (Nikkei) 
9) Keidanren chairman Mitarai: Hatoyama administration proceeding by 
trial and error  (Nikkei) 
 
Defense & security: 
10) Yomitan village head demands handover of U.S. serviceman 
involved in hit-and-run incident  (Mainichi) 
 
Foreign relations: 
11) Okada expresses concern about Iran's nuclear development 
(Nikkei) 
 
Economy: 
12) If necessary, BOJ Governor prepared to act swiftly to tackle 
deflation  (Nikkei) 
13) Japan's trade surplus with the U.S. grew for the first time in 
27 months  (Sankei) 
14) Number of foreign visitors to Japan shows first increase in 16 
months  (Nikkei) 
15) Japan and Korea set agenda for restart of EPA negotiations 
(Nikkei) 
 
Energy: 
16) Japanese companies eager to compete in Iraq but concerned about 
security  (Nikkei) 
 
Opinion: 
17) Asahi poll: Older women backing DPJ  (Asahi) 
18) Sankei-FNN poll: Cabinet support nosedives, "entering dangerous 
waters"  (Sankei) 
19) Sankei-FNN poll: Cabinet approval rating plummets to 51 PERCENT 
 (Sankei) 
 
Agriculture: 
20) Ministry of Agriculture, Forestry, and Fisheries to earmark 
maximum income subsidies for farming households  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun: 
No income limit for child allowance, gasoline tax rate to be kept in 
different form; tobacco tax to be raised by five yen per cigarette 
 
Akahata: 
On political parties (Part 1): Which party delivered a message 
 
TOKYO 00002912  002 OF 010 
 
 
reflecting the will of the people regarding Futenma? 
 
2) EDITORIALS 
 
Asahi: 
(1) 100-day-old Hatoyama administration: Irritation and expectations 
for change 
 
Mainichi: 
(1) Noguchi heads to space station: Russia's ideas offer 
opportunities for learning 
(2) LDP in wintertime: Train young leaders 
 
Yomiuri: 
(1) Changing fagade not enough for Japan Pension Agency 
(2) Astronaut Noguchi's activities expected to usher in new space 
age 
 
Nikkei: 
(1) Amendments to dispatched workers law run counter to protection 
of dispatched workers 
(2) Child allowance system without income cap dangerous 
 
Sankei: 
(1) Submission of statement by PM Hatoyama insufficient 
(2) Noguchi off to space station: Increase Japan's presence in 
space 
 
Tokyo Shimbun: 
(1) Japan Pension Agency must put customers first 
(2) Develop oilfields in Iraq to help reconstruct the country 
 
Akahata: 
(1) Economy deteriorating: Make efforts to create jobs and improve 
household finances 
 
3) Prime Minister's schedule, December 21 
 
NIKKEI (Page 2) (Full) 
December 22, 2009 
 
09:22 Met Minister for National Strategy Kan and Chief Cabinet 
Secretary Hirano, joined by Finance Minister Fujii, Senior Vice 
Finance Minister Noda, Administrative Vice Finance Minister Tango, 
and Budget Bureau chief Katsu at the Prime Minister's Official 
Residence (Kantei). Fujii and Hirano stayed behind. 
11:55 Met Fujii again, joined by Kan, Hirano, Noda, Tango, Katsu and 
Senior Vice Minister of the Cabinet Office Furukawa. 
12:59 Met Kan and Hirano. Kan stayed behind. 
13:51 Met Assistant Deputy Chief Cabinet Secretary Fukuda. 
14:26 Met Environment Minister Ozawa, joined by Senior Vice Foreign 
Minister Fukuyama, Deputy Chief Cabinet Secretary Matsuno, and 
Deputy Minister for Foreign Affairs Sasae. Fukuyama, Matsuno, and 
Sasae stayed behind. 
15:47 Met Yukio Okamoto, commentator on foreign affairs. 
17:00 Met Kan, Fujii, Hirano, and Katsu. Fujii and Hirano stayed 
behind. Joined by DPJ Secretary General by Ozawa. 
17:49 Met New Japan-China Friendship 21st Century Committee members, 
including Tokyo Stock Exchange President Taizo Nishimuro. 
18:07 Met Kan, Fujii, and Hirano, joined by Furukawa. Kan and Hirano 
stayed behind. 
20:51 Arrived at his official residential quarters. 
 
TOKYO 00002912  003 OF 010 
 
 
 
4) Gas tax to be kept in place, premier announces: No income limit 
to be set on child-raising allowance 
 
NIKKEI (Top play) (Excerpts) 
December 22, 2009 
 
Prime Minister Yukio Hatoyama on the evening of Dec. 21 announced 
his decision to introduce a new system, after abolishing the 
existing provisional taxes, such as the gas taxes, when compiling 
the fiscal 2010 tax, so as to maintain the present level of tax 
revenues. The prime minister has thus responded to key requests 
filed by the Democratic Party of Japan (DPJ) in general outline. He 
also categorically noted that there would be no income limit for a 
monthly child-raising allowance. He will reach a decision on whether 
to introduce a global warming prevention tax (environmental tax) 
within a year. Now that major items in the annual code revision have 
been set, the government will adopt a tax code revision outline at a 
special cabinet meeting to be held on the afternoon of the 22nd. The 
prime minister will also aim at adopting the draft budget at a 
cabinet meeting this week. 
 
Points of the prime minister's statement 
 
(Provisional tax rate) 
Q Abolish the system itself. However, the tax rate is to be 
maintained. 
Q Call for a fresh measure worth 2 trillion yen aimed at turning 
around the economy. 
 
(Monthly child-raising allowance) 
Q Basically no income limit is to be set 
Q Set up a system that will enable those who have declined to accept 
the allowance to donate the money to their local governments. 
 
 (Global warming prevention (environmental) tax) 
 
Q Reach a decision, after looking into it over a year 
 
(Cigarette tax) 
Q The government's tax commission will reach a decision on the 22nd. 
The prime minister's own view is that there should be a hike. 
 
(Tax deduction for dependents) 
Q Reach a decision at a meeting of the basic policy ministerial 
committee on the 22nd. 
 
5) DPJ's Ozawa says Japan should be more assertive in relations with 
U.S. 
 
MAINICHI (Page 5) (Full) 
December 22, 2009 
 
During a recording session for a program on a commercial TV station 
on Dec. 21, Democratic Party of Japan (DPJ) Secretary General Ichiro 
Ozawa discussed the Japan-U.S. relationship in relation to the issue 
of the relocation of the U.S. forces' Futenma Air Station (in 
Ginowan City, Okinawa). He said: "The biggest problem is that the 
Japanese government cannot speak up to the United States. The 
Liberal Democratic Party has always been that way and the U.S. is 
annoyed." He expounded on his pet theory that Japan's self-assertion 
will lead to the improvement of bilateral relations. 
 
TOKYO 00002912  004 OF 010 
 
 
 
Ozawa pointed out: "If there is no need for a large number of 
soldiers on the front lines of U.S. military bases, Japan should say 
so (to the U.S.). It should just say we will defend our own country 
properly or we will make international contributions." He indicated 
that it is important for the two countries to engage in discussions 
and fulfill their responsibilities. 
 
6) Hiroshima, Nagasaki mayors ask foreign minister to make efforts 
toward adoption of protocol for abolition of nuclear weapons at NPT 
conference 
 
ASAHI (Page 4) (Full) 
December 22, 2009 
 
Hiroshima Mayor Tadatoshi Akiba, Nagasaki Mayor Tomihisa Tagami, and 
the two cities' assembly chairmen met Foreign Minister Katsuya Okada 
on Dec. 21 and urged the government to press other countries to 
adopt the Hiroshima-Nagasaki Protocol that presents a plan for the 
abolition of nuclear weapons by 2020 during the Nuclear 
Nonproliferation Treaty (NPT) Review Conference to be held in May 
next year. 
 
Nagasaki City Assembly Chairman Takashi Yoshihara cited Okada as 
responding, "We would like to consider it carefully and make 
efforts." The protocol was released in April 2008 by the conference 
of mayors for peace (chaired by Akiba) composed of 134 countries and 
areas. This August, the conference adopted a "Nagasaki appeal" aimed 
at the adoption of the protocol at the NPT review conference. 
 
7) PM Hatoyama's former secretary to be indicted on Dec. 24 for 
falsification of political donation reports 
 
NIKKEI (Page 1) (Full) 
December 22, 2009 
 
In connection with the falsification of political donation records 
by Prime Minister Yukio Hatoyama's political fund management body, 
the Yuai Seikei Konwakai, it was learned from an informed source on 
Dec. 21 that the Special Investigation Division of the Tokyo 
District Public Prosecutors Office has decided to indict without 
arrest his former government-paid first secretary, 59, who used to 
serve as an accounting officer. The former secretary has already 
been dismissed. Hatoyama and the current accounting officer will not 
be prosecuted due to insufficient evidence. 
 
It appears that the Special Investigation Division has already 
completed its investigations and has obtained the approval of the 
Supreme Public Prosecutors Office and higher level offices on the 
timing for filing criminal charges, taking into account the 
political schedule. 
 
According to the above source, the former first secretary received 
some 400 million yen from Hatoyama and his mother, 87, to fund the 
political activities of the Konwakai over five years until 2008. He 
falsely recorded these funds as donations from individuals or income 
from fundraising parties and is suspected of falsifying political 
donation reports. 
 
The secretary received about 250 million yen from Hatoyama's 
personal funds from Rokko Shokai (in Minato Ward, Tokyo), a company 
that manages the Hatoyama family's assets, and a total of about 900 
 
TOKYO 00002912  005 OF 010 
 
 
million yen from Hatoyama's mother. 
 
In a report that Hatoyama submitted to the prosecutors, he denied 
any involvement in this affair. It is believed that after criminal 
charges are filed, Hatoyama will admit that funds from his mother 
were legally a gift and will file a revised income tax return. 
 
8) Upper House member Hasegawa intends to leave LDP 
 
NIKKEI (Page 1) (Full) 
December 22, 2009 
 
Tamon Hasegawa, a House of Councillors member belonging to the main 
opposition Liberal Democratic Party (LDP), decided yesterday to bolt 
the LDP. He intends to carry out political activities as an 
independent for the time being while distancing himself from the 
ruling Democratic Party of Japan (DPJ). He was elected for the first 
time in 2007 from the Upper House Ibaraki constituency. Hasegawa has 
reacted strongly to the fact that Kishiro Nakamura, a former 
construction minister, who won the Lower House Ibaraki No. 7 
district seat by defeating an LDP candidate, formed a joint 
parliamentary group with the LDP as a member of the Japan 
Renaissance Party. 
 
Hasegawa will be the second incumbent Diet member to leave the LDP 
since the LDP suffered a crushing defeat in the August Lower House 
election, following Upper House member Kotaro Tamura. 
 
9) New government in process of trial and error: JBF Chair Mitarai 
 
NIKKEI (Page 5) (Full) 
December 22, 2009 
 
When asked by reporters about the sharp drop in public support rates 
for the cabinet of Prime Minister Yukio Hatoyama, Fujio Mitarai, 
chairman of the Japan Business Federation (JBF or Nippon Keidanren) 
responded by saying, "I think since he has assumed the reins of 
government for the first time, he is now in a process of trial and 
error." 
 
In connection with the relationship between the manifesto (policy 
platform) pledged in the latest House of Representatives election 
and Hatoyama's actual policy management, Mitarai said, "In reality, 
there are gaps. That has affected the plunge in support rates." He 
also pointed out, "If he provides clear explanations to the public 
and if the people are convinced, the situation will change." 
 
10) Yomitan mayor asks National Safety Commission chairman for 
handover of U.S. serviceman 
 
MAINICHI (Page 29) (Full) 
December 22, 2009 
 
Hiromi Nagano 
 
A U.S. Army staff sergeant is suspected of involvement in an 
incident in which a 66-year-old man was killed after being run down 
in the village of Yomitan, Okinawa Prefecture. In this connection, 
Yomitan Mayor Keizo Yasuda and others on Dec. 21 called on National 
Public Safety Commission Chairman Hiroshi Nakai at the National 
Police Agency and handed him a letter seeking a review of the 
Japan-U.S. Status of Forces Agreement and the early handover of the 
 
TOKYO 00002912  006 OF 010 
 
 
suspect. 
 
The letter of protest was adopted at a rally protesting the fatal 
hit-and-run incident involving the U.S. service member, held on Dec. 
13 in the village by the executive committee chaired by Yasuda. 
 
In his meeting with Nakai, Yasuda conveyed to the safety commission 
chairman the villagers' angry voices seeking the handover of the 
custody of the suspect and his prosecution. In response, Nakai 
explained: "We must produce hard evidence that can stand trial 
without a confession. We will spend time to collect evidence. We are 
not giving special consideration to this case." 
 
Yasuda and others also visited the Prime Minister's Official 
Residence (Kantei) and others places to make similar requests. 
 
11) FM Okada voices concern about Iran's development of nuclear arms 
at meeting with top Iranian nuclear negotiator 
 
NIKKEI (Page 2) (Full) 
December 22, 2009 
 
Foreign Minister Katsuya Okada met Secretary Saeed Jalili of the 
Iranian Supreme National Security Council at the Iikura Guesthouse 
in Tokyo on Dec. 21. Okada expressed concern on Iran's rejection of 
the proposal of the International Atomic Energy Agency (IAEA) to 
move its low-enriched uranium out of the country. Regarding 
cooperation between Japan and Iran in the future, Okada said: "The 
present situation in the international community renders the 
promotion of cooperation difficult." 
 
Jalili emphasized that "(Iran) is seriously opposed to nuclear 
weapons." Jalili is Iran's top nuclear negotiator. He is on a visit 
to Japan at Japan's invitation. Okada and Jalili also exchanged 
views on Afghan aid and North Korea's development of nuclear arms. 
Okada pointed out that "the international community has serious 
concerns about Iran's relations with North Korea." Jalili responded: 
"We criticize North Korea's military use of nuclear energy. The 
abduction issue should also be resolved internationally." 
 
Jalili will visit the nuclear power station in Kashiwazaki City in 
Niigata on Dec. 23 and the Peace Memorial Museum in Hiroshima City 
on Dec. 24. In connection with the visit to Hiroshima, Okada said: 
"I hope you will go and see the tragedy caused by nuclear weapons." 
 
12) "We are ready to act promptly if necessary," says Bank of Japan 
governor 
 
NIKKEI (Page 5) (Excerpts) 
December 22, 2009 
 
Appearing on TV Tokyo's news show "World Business Satellite," Bank 
of Japan (BOJ) Governor Masaaki Shirakawa on the evening of Dec. 21 
said that the BOJ is ready to act promptly and boldly if it becomes 
necessary to do so in order to prevent falling prices and a 
deflationary spiral. He thus indicated that he is prepared to adopt 
additional monetary easing measures if abnormal developments are 
observed in the financial market. He also stressed his determination 
to tenaciously maintain the current basically zero-interest rate 
situation. 
 
Regarding the specific details of the next measure to be taken, 
 
TOKYO 00002912  007 OF 010 
 
 
Shirakawa simply said, "We are always looking into what measures 
would be most suitable, while referring to various measures the BOJ 
took in the past, policies other countries are adopting, and their 
effects." 
 
After indicating his policy of undergirding the economy with 
monetary measures, Shirakawa said that the fundamental cause of the 
deflation is a shortage of demand. He expressed hope for the 
government's growth strategy. He underscored that the most important 
policy is not only generating short-term demand, but also making 
people feel that their income will increase in the future. 
 
He also stressed that groundless pessimism is dangerous, warning 
that if an excessively pessimistic view about the future of the 
economy becomes rampant, it will undermine growth. 
 
13) Japan posts trade surplus with U.S., increasing for first time 
in 2 years and three months 
 
SANKEI (Page 10) (Full) 
December 22, 2009 
 
According to trade statistics for November released by the Finance 
Ministry, the nation's trade balance, determined by deducting the 
amount of imports from the amount of exports, came to 373.9 billion 
yen. Japan has posted a trade surplus for 10 consecutive months. In 
the same month of the previous year, Japan posted a trade deficit of 
227.5 billion yen. Japan's trade surplus with the U.S. increased 
after a hiatus of two years and three months or for the first time 
since August 2007, reaching 404.5 billion yen, up 10.6 percent. 
 
14) Foreign visitors to Japan in November up for first time in 16 
months 
 
NIKKEI (Page 5) (Full) 
December 22, 2009 
 
Foreign visitors to Japan increased 2.1 PERCENT  over the same month 
a year ago to 565,000 in November, marking the first climb in 16 
months since July 2008, according to data released yesterday by the 
Japan National Tourism Organization. This rise is attributed to 
improving economic conditions in South Korea and Australia. 
Meanwhile, Japanese travelers overseas inched up 0.7 PERCENT  to 
1.273 million in the same month, recording the fourth consecutive 
monthly upturn. But the total number of foreign tourists during the 
period between January and November in 2009 was 6.1626 million. The 
number (of foreign visitors in 2009) will likely fall short of 7 
million for the first time in four years. 
 
15) In working-level talks, South Korea presents problems to be 
solved for resuming EPA negotiations 
 
NIKKEI (Page 7) (Full) 
December 22, 2009 
 
Yamaguchi, Seoul 
 
The governments of Japan and South Korea held the second round of 
working-level talks by their deputy-director-level officials at the 
Foreign Ministry in Seoul, aimed at resuming governmental 
negotiations on concluding a bilateral economic partnership 
agreement (EPA). South Korean representatives mainly presented 
 
TOKYO 00002912  008 OF 010 
 
 
specific problems to solve, such as its trade deficit with Japan and 
Japan's entry regulations. Japanese representatives promised to take 
measures to deal with such problems at an early date. A negotiator 
said: "Both sides were able to deepen mutual trust and 
understanding." However, such specific items as the timing for the 
next round of negotiations were not decided during the talks. 
 
16) Japanese group now eager to invest in reconstruction of Iraq 
 
NIKKEI (Page 3) (Full) 
December 22, 2009 
 
Hirofumi Matsuo, Dubai 
 
Japanese firms are greatly interested in demand for reconstruction 
in Iraq. The Japan-Iraq Economic Forum's meeting was held in Baghdad 
on Dec. 20 and in Basra on the 21, in which a group consisting of 
more than 100 people, including company executives from petroleum, 
trading, plant and machinery firms, participated from Japan. 
 
"We want Japanese firms to invest in Iraq and compete with companies 
from other countries," Iraqi Prime Minister Nouri al-Maliki said at 
the meeting. In response, Nippon Oil Corp. Chairman Fumiaki Watari, 
who also serves as vice chairman of the Japan Business Federation, 
remarked: "We have the world's highest-level technology, so this 
meeting will provide an opportunity for Japan's comeback in the 
Iraqi market." 
 
During the Iraq war and the postwar confusion, "Japanese firms 
completely lagged behind other countries' companies, because they 
avoided risk," said Foreign Policy Institute President Kunihiko 
Miyake, who attended the meeting. But momentum is finally building 
up for Japanese companies to grope for chances to invest in Iraq. 
Marubeni Corp. has agreed to cooperate in increasing production 
efficiency at obsolete fertilizer and cement plants. Toyota Tsusho 
Corporation received orders from the Iraqi Ministry of Electricity 
in October for power-supply equipment, including eight transformer 
apparatuses, chalking up its first business results in rebuilding 
Iraq. In addition, the Japanese government has decided to offer yen 
loans worth more than 3.2 billion dollars for reconstruction 
projects. 
 
The biggest obstacle to Japanese firms' advancement to Iraq is the 
deteriorating security situation. In Baghdad, foreigners move about 
in bulletproof car with guards. The forum was held at Baghdad 
International Airport for security reasons. Yoshihiko Shimazu, 
advisor to Sumitomo Corp., however, said: "When the security 
situation is completely recovered, nothing will be left to do." JGC 
Corp. President Masahiko Yaegashi commented: "It is now the right 
time to consider how Japanese firms should enter the Iraq market." 
 
17) Poll analysis: DPJ enjoys steady support, backed by elderly 
women 
 
ASAHI (Page 1) (Abridged) 
December 22, 2009 
 
The popularity of Prime Minister Hatoyama and his cabinet is on the 
decline. His ruling Democratic Party of Japan, on the other hand, 
stands at 42 PERCENT  in terms of public support for political 
parties and the opposition Liberal Democratic Party at 18 PERCENT . 
The Asahi Shimbun has conducted four public opinion surveys since 
 
TOKYO 00002912  009 OF 010 
 
 
the Hatoyama cabinet came into office. In the latest survey, the DPJ 
upheld its public support in the 40 PERCENT  range, outdistancing 
the LDP that has been in the 10 PERCENT  range. In particular, 
elderly women have markedly changed their support for political 
parties since the Hatoyama cabinet's inauguration and strongly back 
the DPJ-led ruling coalition. This remains the foundation of the 
DPJ's high popularity. 
 
In an Asahi Shimbun exit poll of voters in the Aug. 30 general 
election, the proportion of those who voted for the LDP among its 
supporters was only 54 PERCENT , with 30 PERCENT  of them casting 
their votes for the DPJ. 
 
When the LDP was at the helm, public voting behavior that seemed to 
be aimed at punishing the LDP was seen in past elections. This time 
around, however, the survey shows no signs of public support for the 
LDP rebounding. Even among those who voted for the LDP in this 
summer's general election, many have presumably switched to 
supporting the DPJ. 
 
18) Poll: Hatoyama cabinet eclipsed as "short-lived" 
 
SANKEI (Page 3) (Abridged) 
December 22, 2009 
 
The Hatoyama cabinet's support rate nosedived in the latest public 
opinion survey jointly conducted by the Sankei Shimbun and Fuji News 
Network (FNN). "The cabinet is about to enter the danger zone," says 
Banri Kaieda, deputy chair of the ruling Democratic Party of Japan's 
Election Campaign Committee. The cabinet's support rate is now over 
40 PERCENT , which can be taken to indicate a further drop in its 
public approval rating. Meanwhile, Prime Minister Yukio Hatoyama has 
submitted a statement to the Tokyo District Public Prosecutors 
Office over his fund-managing body's alleged falsification of 
political fund reports. "We may not be able to fight the campaign 
battle for next summer's election for the House of Councillors," a 
DPJ lawmaker seated in the House of Councillors said, even implying 
that the Hatoyama cabinet could be short-lived. 
 
19) Poll: Cabinet support tumbles to 51 PERCENT , nonsupport rate 
tops 40 PERCENT  for first time 
 
SANKEI (Page 1) (Abridged) 
December 22, 2009 
 
The Sankei Shimbun and Fuji News Network (FNN) conducted a joint 
public opinion survey on Dec. 19-20, in which the public disapproval 
rating for the Hatoyama cabinet topped 40 PERCENT  for the first 
time, rising 17.5 percentage points from the last survey conducted 
Nov. 21-22 to 40.4 PERCENT . The approval rating narrowly topped 50 
PERCENT , scoring 40.4 PERCENT . However, it posted a sharp drop of 
11.5 points from 62.5 PERCENT  in the last survey. The public seems 
to be very critical of Prime Minister Yukio Hatoyama's statements 
and actions concerning the pending issue of relocating the U.S. 
military's Futenma airfield and the process of compiling next fiscal 
year's budget. 
 
In the breakdown of public support for political parties, the ruling 
Democratic Party of Japan stood at 37.2 PERCENT , down 2.5 
percentage points from the last survey. The opposition Liberal 
Democratic Party rose 1.9 points to 19.2 PERCENT . The DPJ's two 
coalition partners, the Social Democratic Party and the People's New 
 
TOKYO 00002912  010 OF 010 
 
 
Party, were both weak, with the SDP at 1.8 PERCENT  and the PNP at 
0.7. The New Komeito was at 2.8 PERCENT  and the Japanese Communist 
Party at 3.3 PERCENT . 
 
20) Government to implement full income indemnity system in line 
with DPJ's wishes placing importance on agriculture with eye on 
Upper House election 
 
NIKKEI (Page 5) (Excerpts) 
December 22, 2009 
 
The government has decided to include in the fiscal 2010 budget the 
full amount of expenses (totaling 561.8 billion yen) connected with 
an income indemnity system for individual farm households, as 
requested by the Ministry of Agriculture, Forestry, and Fisheries 
(MAFF). This is because the Democratic Party of Japan called, in its 
budgetary and tax system reform priority requests presented earlier, 
for securing the funds necessary for the early implementation of the 
income indemnity system. Although Japan will shift its agricultural 
policy toward covering income directly with public funds, there is 
concern that this might block the improvement of production 
efficiency resulting from large-scale farming. 
 
There is a possibility that the farmer income subsidy system will 
prompt wholesalers and others to call for lowering rice prices and 
result in a smaller burden on consumers. At the same time, there is 
criticism about giving preferential treatment to farmers alone by 
using tax money. MAFF plans to expand the targets for subsidies to 
include fruit and other products in fiscal 2011 and beyond. 
 
The income-subsidy system for farmers is composed of two pillars: a 
model rice project (344.7 billion yen) and rice paddy changeover 
support (217.1 billion yen). The model project is designed to supply 
the fixed-amount portion that is obtained based on the difference 
between the average production cost for the last several years and 
the sales price, and to pay for the additional variable portion in 
case rice prices decline substantially. But in order to be subject 
to this project, production targets set by the government must be 
met. The project therefore will effectively be a farmer rice acreage 
reduction selection system. 
 
ROOS