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RUCNDT/USMISSION USUN NEW YORK 8556

UNCLAS SECTION 01 OF 07 TOKYO 002949 
 
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 12/31/09 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma relocation issue: 
4) Govt. considering continued use of Futenma on condition of 
reduced helicopter training  (Asahi) 
 
Defense & security: 
5) U.S. Navy's recruitment of radiation control director raises 
suspicion that carrier's nuclear reactors will undergo repairs in 
violation of agreement  (Akahata) 
 
Foreign relations: 
6) Summit meeting of Japanese, Chinese, and Korean leaders to be 
held on Cheju-do in May  (Yomiuri) 
 
Economy: 
7) China's investment share in joint development of Shirakaba Gas 
field may exceed 50 PERCENT   (Yomiuri) 
8) Electric companies to invest 1 trillion yen in next generation 
power transmission smart grid  (Nikkei) 
 
9) Japan Post to be reorganized into three companies under 
government review plan  (Mainichi) 
10) New growth strategy sets goal of 3 PERCENT  nominal growth 
(Nikkei) 
 
Politics: 
11) Upper House member Yoshimura to leave LDP  (Nikkei) 
12) SDP leader Fukushima calls for replacing MOFA and MOD officials 
in charge of Futenma issue  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Growth strategy: Government sets new goal to achieve 2 PERCENT 
average annual growth by 2020 
 
Mainichi: 
Japan Post to be reorganized into three companies under government 
review plan 
 
Yomiuri: 
New growth strategy sets goal of 3 PERCENT  nominal growth 
 
Nikkei: 
Electric companies to invest 1 trillion yen in next generation smart 
power grids 
 
Sankei: 
New growth strategy to create new demand worth 100 trillion yen in 
three fields 
 
Tokyo Shimbun: 
Former secretary testifies on delivering 400 million yen to Ozawa's 
house; Special Investigation Division eyes questioning Ozawa 
 
 
TOKYO 00002949  002 OF 007 
 
 
Akahata: 
Over 600 people enter temp workers' village set up by government 
 
2) EDITORIALS 
 
Asahi: 
(1) 2009 - year of change: Continue to make changes for tomorrow 
 
Mainichi: 
(1) Looking back on 2009: Cultivate the seeds of change 
 
Yomiuri: 
(1) New growth strategy: Concrete measures for achieving goal 
unclear 
(2) Attempted terrorist attack on U.S. plane: Make efforts to 
conduct thorough investigation and prevent recurrence 
 
Nikkei: 
(1) Competition and changes to encourage investment needed for 
economic growth 
(2) Stock market reflects Japan's economic contraction 
 
Sankei: 
(1) Japan-India security cooperation: Renew awareness of the U.S.'s 
importance 
(2) Growth strategy: Will the strategy help to revitalize 
businesses? 
 
Tokyo Shimbun: 
(1) Thoughts on New Year's Eve: Invisible changes in the Japanese 
people 
 
Akahata: 
(1) Temp workers' village for the New Year's holidays: Usher in New 
Year with support and solidarity 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 30 
 
NIKKEI (Page 2) (Full) 
December 31, 2009 
 
09:35 Met Foreign Minister Okada at his official residential 
quarters. 
10:17 Signed in at the Imperial Palace to report his return home. 
10:32 Attended a growth strategy formulation meeting. 
11:09 Attended a special cabinet meeting. Afterward held a press 
conference on the new growth strategy. 
12:07 Attended a demonstration on the new growth strategy 
12:50 Had lunch with the cabinet ministers at his official 
residential quarters 
13:34 Met Ambassador to the U.S. Fujisaki. 
14:15 Met Upper House member Yoshihiro Kawakami. 
14:53 Met Deputy Chief Cabinet Secretary Matsui and Cabinet 
Councilor Oriza Hirata at the Kantei. 
15:09 Had an informal meeting with the cabinet press club. 
17:08 Met Matsui. 
17:22 Returned to his official residential quarters. 
18:24 Met Matsui and Hirata. 
20:07 Dined at a sushi restaurant in Jiyugaoka with wife Miyuki. 
21:42 Dined at another sushi restaurant in Jiyugaoka with wife 
 
TOKYO 00002949  003 OF 007 
 
 
Miyuki. 
00:20 Arrived at his official residential quarters. 
 
4) Proposal to continue using Futenma base emerges in Hatoyama 
administration 
 
ASAHI (Page 1) (Excerpts) 
December 31, 2009 
 
In connection with the issue of the relocation of the U.S. forces' 
Futenma Air Station (in Ginowan City, Okinawa), a proposal emerged 
within the Hatoyama administration on Dec. 30 to accept the 
continued use of the base after transferring some of helicopter 
training conducted at Futenma to remote islands. Under this 
proposal, the U.S. side will be asked to take measures to reduce the 
danger at the densely-populated residential area close to the base, 
and the government will seek the approval of the Okinawan people, 
who are asking for the relocation of Futenma out of Okinawa or out 
of Japan. Ie Island (in Ie Village, Okinawa) and Shimoji Island (in 
Miyakojima City, Okinawa) are being considered for the relocation of 
training exercises. 
 
There are several reasons behind this proposal: it will be difficult 
to implement relocation to Henoko, Nago City, under the 2006 
Japan-U.S. agreement; Democratic Party of Japan Secretary General 
Ichiro Ozawa is negative about Henoko relocation; and there is 
little possibility of finding a new relocation site by May 2010, 
which has been set as the deadline. It is also possible that the 
U.S. side, which is demanding the implementation of the agreed plan 
at an early date, may accept the continued use of Futenma. 
 
Defense Minister Toshimi Kitazawa pointed out on Dec. 30 that "there 
are problems" with Ie Island and Shimoji Island as Futenma 
relocation sites "in terms of geographical location and capacity." 
On the other hand, he indicated that they could possibly serve as 
relocation sites for training exercises, saying: "The question is 
what role these islands can play." Mizuho Fukushima, leader of the 
Social Democratic Party, which advocates the relocation of Futenma 
out of Okinawa or out of Japan, also said on the same day: "Since a 
proposal has been made, we will discuss it." 
 
At a gathering of senior ruling party officials on the evening of 
Dec. 29, Ozawa said, "It will not do to reclaim land in the 
beautiful sea," reiterating his opposition to Henoko relocation. 
According to an informed source, Ozawa mentioned Shimoji Island on 
that occasion and indicated his approval of relocation to that 
island. 
 
Ie Island and Shimoji Island have both been considered as Futenma 
relocation sites in the past, but the proposals were dropped due to 
resistance from the local residents. Whether they will accept the 
transfer of training exercises will depend on how negotiations with 
the local communities go from now on. 
 
If the use of the Futenma base is continued, it will mean that the 
1996 agreement between Japan and the U.S. to return this base will 
be scrapped. It is also possible that the relocation of 8,000 
Marines in Okinawa to Guam under the 2006 agreement may be 
suspended. 
 
5) U.S. naval base in Yokosuka recruiting radiological control 
officer, indicating possible violation of agreement on not repairing 
 
TOKYO 00002949  004 OF 007 
 
 
aircraft carrier's nuclear reactor in Japan 
 
AKAHATA (Page 1) (Abridged) 
December 31, 2009 
 
It was learned that the U.S. naval base in Yokosuka, Kanagawa 
Prefecture is recruiting a field supervisor for "radiological 
control operations," including "repair of the propulsion plant" of 
the nuclear aircraft carrier USS George Washington. According to the 
Department of Energy, the U.S. Navy's nuclear propulsion plants 
contain nuclear reactors. 
 
The Japanese and U.S. governments have an agreement not to conduct 
repairs of George Washington's nuclear reactor in Japan. The 
recruitment is another indication that it is highly possible that 
repairs on nuclear reactors are taking place at the Yokosuka base in 
violation of this agreement. 
 
The recruitment is being conducted by the Puget Sound Naval Shipyard 
in the state of Washington on the U.S. west coast. This shipyard set 
up a Yokosuka detachment for the maintenance of George Washington 
when the aircraft carrier was deployed to Yokosuka in September 
¶2008. 
 
6) Trilateral summit scheduled for Cheju-do in May 
 
YOMIURI (Page 2) (Full) 
December 31, 2009 
 
Seoul 
 
According to Yonhap News, South Korean Minister of Foreign Affairs 
and Trade Yu Myung-hwan disclosed at a press conference on Dec. 30 
that a summit of Japanese, Chinese, and Korean leaders is scheduled 
to be held on Cheju-do in late May 2010. He also disclosed the 
intention to seek agreement on setting up a standing secretariat for 
trilateral summits between the countries' leaders. 
 
7) China may put up more than half of investment in Shirakaba gas 
field development 
 
YOMIURI (Page 1) (Full) 
December 31, 2009 
 
Several government officials revealed that on Dec. 30 a de facto 
agreement had been reached on the investment ratio of the joint 
venture company established by Japan and China for the development 
of the Shirakaba (Chinese name: Chunxiao) gas field in the East 
China Sea. It appears that the Chinese share of investment exceeds 
50 PERCENT  because China was first to develop the gas field. The 
two governments agreed in June 2008 on joint development of gas 
fields in the East China Sea. China approved Japanese companies' 
participation in the development of the Shirakaba gas field, and the 
two countries agreed on joint investment and establishing a joint 
venture. The investment ratio was not made public, but according to 
the officials, a de facto agreement has been reached. 
 
In both Japan and China there is great public interest in Shirakaba, 
which reportedly has the largest reserves among gas fields in the 
East China Sea. It is thought that the two governments did not 
release the investment ratio due to concerns that the figures would 
provoke a stronger backlash. 
 
TOKYO 00002949  005 OF 007 
 
 
 
Next the two countries will, after working out the details, nail 
down the agreement through a treaty. 
 
The Japanese side has requested an early conclusion of a treaty, but 
the Chinese side has responded negatively. There are no prospects 
for negotiations. 
 
8) Major power companies to invest 1 trillion yen in smart grids 
 
NIKKEI (Top play) (Excerpts) 
December 31, 2009 
 
Tokyo Electric Power Co., Kansai Electric Power Co., and other major 
Japanese power utilities will make huge investments in the 
establishment of smart power grids that can provide power 
effectively by using information technology (IT). They have begun 
considering installing smart meters equipped with communications 
functions in all households. They will also enhance their power 
distribution facilities in anticipation of an increase in solar 
generation. The companies are likely to spend a total of more than 1 
trillion yen on related facilities by 2020. Although the effort is 
expected to help reduce the nation's greenhouse gas emissions, there 
is concern that the huge equipment cost will push up electricity 
charges and might eventually increase the burden on consumers. 
 
Smart meters, which are considered to be a key component of 
smart-grid systems, enable real-time monitoring of power consumption 
and input from solar and other power generation systems for each 
customer. Tokyo Electric plans to begin introducing smart meters in 
2010 and to install the devices at over 20 million households and 
other locations. Kansai Electric intends to install smart meters at 
400,000 households by the end of 2010 and to replace 12 million 
conventional meters with smart meters in the future. 
 
9) Japan Post Group to be shifted to three-company system 
 
MAINICHI (Top play) (Excerpt) 
December 31, 2009 
 
An outline of the government's plan to adopt a new organizational 
system for the Japan Post Group became clear yesterday. The 
government will first integrate Japan Post, Japan Post Service Co., 
and Japan Post Network Co. into a new company. The current 
five-company system will be shifted to a three-company system, with 
the new company holding the shares of Japan Post Bank Co. and Japan 
Post Insurance Co. Holding over one-third of the shares of Japan 
Post Co. and Japan Post Insurance Co. each, the new company will 
have the right to veto important matters in shareholders meetings. 
The new system is likely to allow the state to be actively involved 
in management. 
 
10) Government to aim at nominal 3 percent economic growth 
 
NIKKEI (Page 1) (Excerpts) 
December 31, 2009 
 
The government adopted at a special cabinet meeting yesterday the 
basic policy on a new growth strategy aiming at sustainable economic 
growth. The policy stipulates that the government will manage the 
economy by positioning the achievement of the nominal economic 
growth rate as its top priority so that the people can sense 
 
TOKYO 00002949  006 OF 007 
 
 
economic growth through an increase in income. The government set 
the nation's nominal economic growth rate at over 3 percent and real 
growth rate at over 2 percent on average by fiscal 2020, with such 
industries as the environment, health, and tourism as the driving 
force. The government also decided to aim at increasing the nation's 
nominal Gross Domestic Product (GDP) to about 650 trillion yen in 
fiscal 2020. 
 
The government also identified six priority fields: (1) the 
environment and energy, (2) health, (3) Asia, (4) tourism and the 
revitalization of local regions, (5) science and technology, and (6) 
employment and human resources. 
 
Major points of the new growth strategy 
 
Q Increase nominal GDP to about 650 trillion yen in fiscal 2020. 
Q Achieve a nominal economic growth rate of over 3 percent and real 
economic growth of over 2 percent on average by fiscal 2020. 
Q Lower the unemployment rate to the 3 percent level over the next 
four years. 
Q Create a new environment market of over 50 trillion yen and 1.4 
million jobs by 2020. 
Q Create a new health market of about 45 trillion yen and 2.8 
million jobs by 2020. 
 
11) Upper House member Yoshimura leaves LDP 
 
NIKKEI (Page 2) (Full) 
December 31, 2009 
 
Liberal Democratic Party House of Councillors member Gotaro 
Yoshimura (70, Fukuoka electoral district) sent a letter of 
secession from the party to LDP headquarters by mail yesterday. The 
step reflects Yoshimura's strong opposition to the LDP's official 
endorsement of Satoshi Oie, 42, a former prefectural assemblyman, 
for his electoral district. Yoshimura plans to run in next year's 
Upper House election as an independent. Yoshimura is the fourth LDP 
Upper House member to submit a letter of secession from the party in 
December. 
 
12) SDP's Fukushima demands replacement of MOFA, MOD officials in 
charge of Futenma relocation 
 
NIKKEI (Page 2) (Full) 
December 31, 2009 
 
In connection with the issue of the relocation of the U.S. forces' 
Futenma Air Station in Okinawa, State Minister for Consumer Affairs 
and Declining Birthrate Mizuho Fukushima, leader of the Social 
Democratic Party (SDP), said on Dec. 30: "Officials who have not 
been in charge in the past should take charge of this issue. The 
cabinet as a whole would like to work on this issue properly under a 
setup that will enable us to do so," thus demanding the replacement 
of the officials in charge. 
 
She explained that: "If the Ministry of Foreign Affairs (MOFA) and 
Ministry of Defense (MOD) officials who decided to build an offshore 
base in the coastal area of Henoko (in Nago City, Okinawa) under the 
Liberal Democratic Party administration continue to be in charge, no 
proposals for different solutions will ever emerge." She also 
underscored her intention to work together with Democratic Party of 
Japan Secretary General Ichiro Ozawa, who has been expressing a 
 
TOKYO 00002949  007 OF 007 
 
 
negative view on the current relocation plan agreed upon by Japan 
and the U.S. 
 
ROOS