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UNCLAS SECTION 01 OF 08 TOKYO 002928 
 
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 12/28/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma issue: 
4) PM says Futenma facility to be relocated within Japan; relocation 
to Guam would be "difficult"  (Yomiuri) 
5) SDP leader Fukushima reacts strongly to PM Hatoyama's comment 
that Futenma's relocation to Guam "difficult"  (Asahi) 
6) Hatoyama elaborates on his comment that Futenma's relocation to 
Guam "difficult"  (Nikkei) 
 
Defense & security: 
7) MOD to launch "cyber defense" unit  (Nikkei) 
8) Secret accord allowed flattop carrying nukes to make extended 
port call in Japan  (Tokyo Shimbun) 
 
Economy: 
9) Japan's U.S. government bond possession up 18 percent, reaching 
740 billion dollars as of the end of Oct.  (Nikkei) 
10) Govt. offers three plans for restructuring of postal services 
(Nikkei) 
 
11) Govt.'s draft national economic growth strategy gives priority 
to environment  (Yomiuri) 
12) Japan Post forgoes plan to set up management consultative 
council  (Nikkei) 
 
Politics: 
13) Drop in Japan's ODA third largest on record  (Asahi) 
14) Defense spending to rise for first time in 8 years  (Nikkei) 
15) PM calls for discussion of constitutional revision  (Yomiuri) 
 
Opinion: 
16) Kyodo poll: Cabinet support plummets to 47 PERCENT   (Tokyo 
Shimbun) 
17) Nikkei poll: Cabinet support plunges 18 points to 50 PERCENT 
(Nikkei) 
 
1) TOP HEADLINES 
 
Asahi: 
Diet member Ishikawa questioned by police on Ozawa's fund management 
group's failure to report funds 
 
Mainichi: 
Myanmar military junta to release Aung San Suu Kyi before general 
election next year 
 
Yomiuri: 
Ozawa's fund management group purchased land with 400 million yen in 
off-the-book funds 
 
Nikkei: 
Suntory to market beverages nationwide in China 
 
Sankei: 
Fans lament Matsui's move from New York Yankees to Los Angeles 
Angels 
 
 
TOKYO 00002928  002 OF 008 
 
 
Tokyo Shimbun: 
Japan Coast Guard on alert against smuggling of stimulants from 
Russia 
 
Akahata: 
Chairman Shii presents policies on economic stimulation, employment, 
Futenma at party leaders' debate 
 
2) EDITORIALS 
 
Asahi: 
(1) Revision of temporary worker law: Shift toward worker 
protection 
(2) Prime Minister's visit to India: Work together with the southern 
giant 
 
Mainichi: 
(1) Medical fees: Will the disintegration of medical services stop? 
(2) Departure of (Rakuten Eagles) manager Nomura: Manifestation of 
determination to become community-oriented 
 
Yomiuri: 
(1) Revision of medical fees: Implement bold changes in distribution 
of medical expenditures 
(2) Instruction manual for official guidelines on course of study: 
Lack of mention of Takeshima is questionable 
 
Nikkei: 
(1) Japan should develop FTA strategy that engages China and Taiwan 
(2) Free high school education across the board questionable 
 
Sankei: 
(1) Harsh punishment of (Chinese pro-democracy activist) Mr. Liu 
Xiaobo: International community also responsible 
(2) Medical fees: Allocate more funds for hospital doctors 
 
Tokyo Shimbun: 
(1) Revision of temporary worker law: First step toward worker 
protection 
(2) Income subsidy for farming households: Will this raise food 
self-sufficiency rate? 
 
Akahata: 
(1) World economy in 2009: Economic revival and new economic order 
are inseparable 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 27 
 
NIKKEI (Page 2) (Full) 
December 28, 2009 
 
(Japan time) 
10:19 Left Haneda Airport on a special government place for 
Japan-India summit. 
 
(Local time) 
Evening  Arrived at Chaatrapati Shivaji International Airport in 
Mumbai, India. Signed terrorist attack condolence books and offered 
flowers at the Trident Hotel and Hotel Taj Mahal in the city. 
Night Gave an interview to the Times of India at Hotel Taj Mahal 
 
TOKYO 00002928  003 OF 008 
 
 
Hotel. Attended a dinner party hosted by Maharashtra Gov. Jamir at 
his official residence. Stayed overnight at Hotel Taj Mahal. 
 
4) PM Hatoyama points to Futenma relocation within Japan, saying 
relocation to Guam would be difficult 
 
YOMIURI (Top play) (Excerpts) 
December 27, 2009 
 
Prime Minister Yukio Hatoyama indicated on Dec. 26 that relocating 
the U.S. Marine Corps' Futenma Air Station from Okinawa to the U.S. 
territory of Guam would be difficult. Guam is the only place that 
has been mentioned as a possible site outside Japan that could 
replace the Henoko district in Nago, Okinawa Prefecture - the site 
specified in the existing plan. The Prime Minister's comment has 
effectively shown a policy direction of narrowing down the possible 
relocation sites to places in Japan. The Social Democratic Party 
(SDP), which is pursuing relocation outside the country, has 
objected to the Prime Minister's statement, while calling for the 
total relocation of Futenma to Guam. 
 
While recording a New Year's radio program on Dec. 26, the Prime 
Minister ruled out the SDP's call for relocation to Guam, saying: 
"There might have been a time to look into the possibility of it as 
one option. But realistically speaking, relocating all (functions) 
of Futenma to Guam would be difficult from the standpoint of 
deterrence." 
 
5) SDP leader Fukushima reacts strongly to PM Hatoyama's comment 
that Futenma's relocation to Guam would be "difficult" 
 
ASAHI (Page 2) (Full) 
December 28, 2009 
 
In reaction to Prime Minister Yukio Hatoyama's earlier statement 
that it would be difficult to designate the U.S. territory Guam as 
the relocation site of the U.S. forces' Futenma Air Station in 
Okinawa, Social Democratic Party (SDP) leader Mizuho Fukushima said 
on Dec. 27: "The SDP regards Guam as very promising. We will pursue 
this option to the maximum extent possible." Regarding Hatoyama's 
intention to decide on a relocation site by next May, Fukushima 
retorted that, "What is important is not the deadline but the 
solution." She made the above remarks in response to questions from 
reporters in Tokyo. 
 
Commenting on Hatoyama's mention of constitutional revision at a 
recording session for a radio program on Dec. 26, Fukushima said: 
"The agreement of the three coalition parties is not to revise the 
constitution but to aim for the realization of the ideals of the 
constitution." 
 
6) PM Hatoyama elaborates on his comment that Futenma's relocation 
to Guam would be "difficult" 
 
NIKKEI (Page 2) (Full) 
December 28, 2009 
 
Prime Minister Yukio Hatoyama stressed on Dec. 27 that his earlier 
comment in which he said it would be difficult to relocate the U.S. 
forces' Futenma Air Station in Okinawa to Guam was "one idea." It is 
believed that he made this comment to give consideration to the 
Social Democratic Party, which advocates relocation to Guam. The 
 
TOKYO 00002928  004 OF 008 
 
 
inconsistency of his statements is likely to incur criticism. 
 
7) Defense Ministry to set up cyber defense force in fiscal 2011 to 
defend secret information 
 
NIKKEI (Page 2) (Full) 
December 27, 2009 
 
The Defense Ministry will launch in fiscal 2011 a "cyber defense 
force" tasked with defending secret information from attacks on the 
Internet. There has been a rash of incidents in which hackers broke 
into government agencies' information networks and stole classified 
information and destroyed networks on the Internet. Such incidents 
have prompted the ministry to recognize the need to improve the 
defense of classified information. 
 
A preparatory office will be set up under the control of the 
Planning and Coordination Officer in fiscal 2010. 
 
The cyber defense force will be established under the Self-Defense 
Forces' command communications system unit on a scale of 60 persons. 
Approximately 7 billion yen has been earmarked in the fiscal 2010 
budget. The ministry will begin training personnel with specialized 
knowledge capable of conducting research on ways to deal with 
computer viruses. 
 
8) Document found on secret agreement to allow nuclear arms onboard 
U.S. ships anchoring for prolonged periods 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
December 28, 2009 
 
It was learned on Dec. 27 that the Japanese and U.S. governments had 
a "secret agreement" to exempt the U.S. aircraft carrier Midway from 
prior consultations under the bilateral security treaty when it 
entered or anchored at Japanese ports with nuclear arms onboard when 
the flattop was deployed at the Yokosuka base in Kanagawa Prefecture 
in 1973. A document attesting to this agreement was found through 
internal investigations by the Ministry of Foreign Affairs (MOFA). 
This was revealed by several informed sources. 
 
The revised Japan-U.S. security treaty of 1960 stipulates that 
changes in the U.S. forces' weapons and equipment require prior 
consultation. However, MOFA's investigations have already revealed 
the existence of a secret agreement that exempted ships with nuclear 
weapons onboard that called at Japanese ports or passed through 
Japanese waters from this requirement. In 1972, before Midway's 
deployment to Yokosuka, then Foreign Minister Masayoshi Ohira met 
with then U.S. Under Secretary of State Alexis Johnson to reconfirm 
the validity of this secret agreement at their meetings and further 
agreed that this applied not only to port calls, but also to 
long-term "mooring" at a home port. 
 
9) Japan's U.S. government bond possession up 18 percent, reaching 
740 billion dollars as of end of October 
 
NIKKEI (Page 3) (Lead para.) 
December 28, 2009 
 
Japan's U.S. government bond possession is on the increase. The 
amount of U.S. government bonds held by the Japanese government and 
private sector as of the end of October reached 746.5 billion 
 
TOKYO 00002928  005 OF 008 
 
 
dollars (approximately 67 trillion yen), up nearly 20 percent from 
the level of the same month in the preceding year. While China is 
curbing its investment in U.S. government bonds in order to 
diversify its foreign reserves, financial institutions in Japan are 
actively purchasing them. 
 
10) Government makes three postal services revision proposals 
 
NIKKEI (Page 5) (Excerpts) 
December 26, 2009 
 
The government on Dec. 25 held a policy meeting to take a second 
look at postal services. The government's side made three 
reorganization proposals concerning the Japan Post Group's spin-off 
company system. Deputy Cabinet Office Minister Kohei Otsuka noted 
that a proposal for making Japan Post Bank and Japan Post Insurance 
separate entities was a strong option. The government intends to 
finalize its plan as early as January next year while consulting 
with the ruling parties. 
 
The Japan Post Group employs a five-company system of four companies 
placed under the wing of a holding company. The government wants to 
improve the group's business management efficiency through 
reorganization. 
 
Participants representing the government offered three proposals: 
(1) Plan A - integrating Japan Post Service Co. and Japan Post 
Network Co. into Japan Post Holdings Co. and placing Japan Post Bank 
Co. and Japan Post Insurance Co. under the holding company; (2) Plan 
B - establishing a financial holding company under the holding 
company in the Plan A and placing Japan Post Bank Co., and Japan 
Post Insurance Co. under its wing; and (3) Plan C - integrating the 
four companies as a holding company. Some of the participants in the 
policy meeting supported Plan A. 
 
11) Government's draft national economic growth strategy places 
priority on environment 
 
YOMIURI (Page 1) (excerpt) 
December 27, 2009 
 
A national economic growth strategy drafted by the government's 
growth strategy compilation council, chaired by Prime Minister 
Hatoyama, was revealed on Dec. 26. The plan specifies six areas, 
including Asia, tourism, science and technology, employment and 
manpower development, with the environment, to which Japan attaches 
importance, and health care (medical services and nursing care), an 
area where demand is expected to expand, as key areas. 
 
The council proposes increasing both public and private-sector 
investment in R&D related to science and technology to over 4 
percent of the nation's gross domestic product. The prime minister 
will announce the package at a press conference to be held on Dec. 
¶30. 
 
Concerning the science and technology area, the package points out 
that after Japan became the world's second-largest economic power, 
people's expectations and respect for the nation's science and 
technology declined. Consequently, the need for human resources 
development and reform at research organizations to ensure further 
development has been neglected. The council also says that it is 
very important to invest in and develop a next-generation 
 
TOKYO 00002928  006 OF 008 
 
 
supercomputer, an issue that drew attention in the government's 
screening of wasteful budgetary spending. 
 
12) Japan Post forgoes plan to set up management consultative 
council 
 
NIKKEI (Page 5) (Excerpts) 
December 26, 2009 
 
Japan Post, which has been studying ways to consolidate the group's 
governance, has decided to forgo a plan to set up a "group 
management consultative council." JP had a plan to have a group of 
local representatives and experts play the role of overseeing the 
group's services and management. But now that the group doubled the 
number of board directors in October and appointed local business 
leaders, JP has apparently decided the need for the envisaged 
consultative council has diminished. 
 
13) Third largest drop in ODA 
 
ASAHI (Page 4) (Full) 
December 26, 2009 
 
The Hatoyama cabinet on Dec. 25 adopted the fiscal 2010 budget plan. 
The government's official development assistance (ODA) budget was 
allocated 618.7 billion yen, down 7.9 percent from the current 
fiscal year and marking an eleventh consecutive drop. The ODA budget 
during the Liberal Democratic Party (LDP)-New Komeito administration 
was cut 4 percent in comparison with the preceding year from fiscal 
2007 through fiscal 2009. The margin of the decrease this time is 
even wider, marking the third largest drop ever. 
 
Cooperation in the form of grants and technological cooperation were 
increased in the fiscal 2009 budget for the first time in nine 
years. However, they again suffered cuts, securing 154.2 billion 
yen, down 4.2 percent cut from the preceding year, and 148 billion 
yen, a 5.0 percent cut in comparison with the previous year, 
respectively. The government has budgeted 104.4 billion yen, down 18 
percent from the previous year, for the Japan International 
Cooperation Agency (JICA). 
 
14) Defense spending, including U.S. force realignment cost, to be 
increased for first time in eight years; Futenma relocation cost not 
included 
 
NIKKEI (Page 8) (Abridged slightly) 
December 26, 2009 
 
The nation's defense spending (for fiscal 2010), including the cost 
of the realignment of U.S. forces in Japan, has been set at 4.7903 
trillion yen, an increase of 0.3 percent from the initial fiscal 
2009 budget. Defense spending will be increased nominally for the 
first time in eight years due to the growing U.S. force realignment 
cost and other factors. But in reality the nation's defense spending 
for fiscal 2010 seems like a decrease based on a drop in spending 
for equipment from the time of the budgetary request. 
 
The cost connected with U.S. force realignment, including the Guam 
relocation cost of 47.9 billion yen, is 90.9 billion yen (an 
increase of 30.7 billion yen). The government has decided not to 
earmark funds for major elements in the Futenma relocation-connected 
cost other than the ongoing environmental impact assessment. The 
 
TOKYO 00002928  007 OF 008 
 
 
government plans to deal with the matter with an act incurring a 
liability on the treasury by means of an undesignated resolution 
once the relocation site is determined. 
 
The defense spending includes 300 million yen for training new 
personnel, although no fund was allotted for a PKO center, a project 
that was slated for "abolishment" in the government's screening of 
state projects. On Japan's omoiyari yosan (literally "sympathy 
budget" or host nation support) for the stationing of U.S. forces in 
Japan, the government has decided not to change the salary level of 
Japanese people working at U.S. bases, despite the fact that it was 
slated for "review" in the screening process. 
 
On the equipment front, the cost of building a new type of destroyer 
has been included in the budget, as requested. The deployment of the 
ground-to-air Patriot Advanced Capability-3 (PAC-3) missile will be 
limited to its radar that needs to be renewed. 
 
15) PM Hatoyama calls for debate on constitutional revision 
 
YOMIURI (Page 2) (Lead paragraph) 
December 27, 2009 
 
At a recording session on Dec. 26 for a Radio Nippon program for the 
New Year, Prime Minister Yukio Hatoyama indicated that the debate on 
constitutional revision should resume in the Democratic Party of 
Japan, and this issue should be discussed across political party 
lines. The Social Democratic Party is opposed to constitutional 
revision. This statement of the Prime Minister is certain to become 
a new source of conflict within the coalition government. 
 
16) Poll: Cabinet support plummets to 47 PERCENT 
 
TOKYO SHIMBUN (Top play) (Abridged) 
December 27, 2009 
 
The public approval rating for Prime Minister Yukio Hatoyama and his 
cabinet was 47.2 PERCENT  in a telephone-based nationwide public 
opinion survey conducted by Kyodo News on Dec. 25-26, posting a 
sharp drop of 16.5 percentage points from the last survey conducted 
in November. The Hatoyama cabinet's support rate fell below 50 
PERCENT  for the first time since coming into office. The 
disapproval rating was 38.1 PERCENT , up 13.0 points. 
 
In the breakdown of public support for political parties, the ruling 
Democratic Party of Japan stood at 36.1 PERCENT , down 8.9 points 
from the last survey. The opposition Liberal Democratic Party was at 
23.7 PERCENT , up 7.5 points. As seen from these figures, the gap 
between the two parties has narrowed. Among other political parties, 
the New Komeito was at 1.9 PERCENT , the Japanese Communist Party at 
1.3 PERCENT , the Social Democratic Party at 1.8 PERCENT , the Your 
Party at 1.7 PERCENT , the People's New Party at 1.1 PERCENT , and 
the New Party Nippon at 0.6 PERCENT . "None" accounted for 30.5 
PERCENT . 
 
17) Poll: Cabinet support plunges 18 points to 50 PERCENT 
 
NIKKEI (Page 1) (Abridged) 
December 28, 2009 
 
The public approval rating for Prime Minister Yukio Hatoyama's 
cabinet dropped 18 percentage points from last month to 50 PERCENT 
 
TOKYO 00002928  008 OF 008 
 
 
in a public opinion survey jointly conducted jointly by the Nihon 
Keizai Shimbun and TV Tokyo on Dec. 25-27. The disapproval rating 
rose 18 points to 42 PERCENT . In the survey, respondents were asked 
if they thought that Hatoyama has fully accounted for the issue of 
his fund-managing body's falsification of political fund reports. In 
response to this question, 75 PERCENT  answered "no," with only 16 
PERCENT  saying "yes." The public seems to be increasingly 
dissatisfied with his politics-and-money problem and leadership. 
 
In the breakdown of public support for political parties, the ruling 
Democratic Party of Japan dropped 10 points to 46 PERCENT . The 
opposition Liberal Democratic Party rose 4 points to 23 PERCENT . 
 
ROOS