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Viewing cable 10TOKYO112, JAPANESE MORNING PRESS HIGHLIGHTS 01/20/10

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Reference ID Created Released Classification Origin
10TOKYO112 2010-01-20 01:18 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO2434
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0112/01 0200118
ZNR UUUUU ZZH
P 200118Z JAN 10
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8802
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0736
RUEHFK/AMCONSUL FUKUOKA 8395
RUEHOK/AMCONSUL OSAKA KOBE 2211
RUEHNAG/AMCONSUL NAGOYA 5480
RUEHKSO/AMCONSUL SAPPORO 8891
RUEHBJ/AMEMBASSY BEIJING 2700
RUEHUL/AMEMBASSY SEOUL 9363
RUCNDT/USMISSION USUN NEW YORK 8781
UNCLAS SECTION 01 OF 09 TOKYO 000112 
 
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 01/20/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Japan-U.S. alliance at 50 
3) Japan-U.S. joint statement: Maintain the deterrence of U.S. 
military  (Nikkei) 
4) Japan-U.S. joint statement mentions Okinawa  (Mainichi) 
5) Japan, U.S. groping for way to deepen alliance  (Nikkei) 
 
Defense & security: 
6) Govt. mulling sending SDP personnel to provide medical aid to 
Haiti quake victims  (Asahi) 
7) Finance Minister orders further search for documents relating to 
secret accords  (Yomiuri) 
8) Yokohama District Court dismisses claim for compensation in U.S. 
sailor's assault case  (Akahata) 
 
Foreign relations: 
9) PM will not attend Davos Forum  (Nikkei) 
10) China protests Japan's plans for infrastructure construction on 
outlying islands  (Nikkei) 
 
Politics: 
11) Prime Minister's answers in Diet session  (Yomiuri) 
12) Private council recommends preferential visa status for foreign 
specialists  (Mainichi) 
13) Postal group to be reorganized into three companies  (Yomiuri) 
14) Tanigaki voices opposition to enfranchising foreigners  (Sankei) 
 
15) LDP lawmaker announces formation of new policy-making group 
(Nikkei) 
 
Ozawa scandal: 
16) Ozawa agrees to undergo grilling by prosecutors  (Yomiuri) 
17) Hatoyama believes Ozawa's declaration of innocence  (Asahi) 
 
Economy: 
18) JAL files for bankruptcy protection  (Nikkei) 
19) Delta offers JAL full support  (Mainichi) 
20) U.S. vehicles also eligible for Eco car subsidy system  (Nikkei) 
 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Nikkei, Sankei, & Tokyo Shimbun: 
JAL files for bankruptcy, debts hit record high of 2.3 trillion yen, 
ETIC decides to support reconstruction 
 
Akahata: 
JCP's Sasaki demands disclosure of whole truth about money scandals 
involving Hatoyama and Ozawa 
 
2) EDITORIALS 
 
Asahi: 
(1) Diet debate: Dark democracy unnecessary 
(2) JAL's legal liquidation: Reconstruction that will not increase 
public burden 
 
TOKYO 00000112  002 OF 009 
 
 
 
Mainichi: 
(1) JAL's reconstruction: JAL must not rely on government 
(2) Diet interpellation: Prime Minister Hatoyama, take action to 
find breakthrough 
 
Yomiuri: 
(1) Interpellation: Prime Minister Hatoyama should answer questions 
about money scandal 
(2) JAL files for bankruptcy: JAL's dependence on government invited 
bankruptcy 
 
Nikkei: 
(1) Conceited management brought JAL's bankruptcy 
 
Sankei: 
(1) DPJ investigation team: Does the DPJ aim to interfere with 
efforts to uncover truth about allegations? 
(2) JAL files for bankruptcy: Speedy and strict reconstruction 
indispensable 
 
Tokyo Shimbun: 
(1) 50th anniversary of the revised Japan-U.S. Security Treaty: 
Bilateral alliance should be deepened and improved 
(2) JAL legal liquidation: Reconstruct "Japan's wings" 
 
Akahata: 
(1) 50th anniversary of the revised Japan-U.S. Security Treaty: 
Japan should aim to put end to abnormal dependency and abolish the 
treaty 
 
3) Japan, U.S. vow in joint statement to maintain U.S. military 
deterrence 
 
NIKKEI (Page 1) (Full) 
January 20, 2010 
 
The Japanese and U.S. governments yesterday released a joint 
statement of their foreign and defense ministers, as the day marked 
the 50th anniversary of the signing of their current security 
treaty. The joint statement proclaims that the bilateral alliance 
between Japan and the United States remains "the cornerstone of 
regional stability" contributing to peace and stability in the 
Asia-Pacific region beyond bilateral cooperation, specifying that 
U.S. forces in Japan will maintain a deterrence. It indicates that 
the two countries will "deepen" their security cooperation in 
wide-ranging areas to deal jointly with global issues. 
 
Japan and the United States have been strained over the pending 
issue of relocating the U.S. military's Futenma airfield in Ginowan, 
Okinawa Prefecture. As it stands, the joint statement aimed to show, 
both internally and externally, that the bilateral alliance is 
important and that the two countries have repaired their relations. 
In a foreign ministerial meeting held on Jan. 12 in Hawaii, the 
Japanese and U.S. governments agreed to shelve the Futenma issue and 
start talks in an effort to deepen the bilateral alliance. The joint 
statement released this time also reiterates the two countries' 
intention to step up their talks. 
 
Meanwhile, the focus is on what to do about the presence of U.S. 
military bases in Japan. In this regard, the two countries vow in 
the joint statement to "mitigate the burden of base-hosting 
 
TOKYO 00000112  003 OF 009 
 
 
localities, including Okinawa." The joint statement says the two 
countries "endorse efforts to maintain (U.S.) deterrence, including 
an appropriate stationing of U.S. forces (in Japan)." However, it 
did not touch on the Futenma relocation issue. 
 
In addition, the joint statement also pointed to such "new threats" 
as North Korea's nuclear programs and terrorism. It emphasizes the 
bilateral alliance's significance, saying the two countries will 
seek global peace and security without nuclear weapons while 
maintaining necessary deterrence." Concerning China, the joint 
statement says Japan and the United States will welcome that 
country's "constructive and responsible role in the international 
community." 
 
4) Joint statement refers to consideration for Okinawa 
 
MAINICHI (Page 2) (Abridged) 
January 20, 2010 
 
The Japan-U.S. Security Consultative Committee (SCC), made up of 
foreign and defense ministers from Japan and the United States, met 
yesterday and released a joint statement, as the day marked the 50th 
anniversary of the revision of the Japan-U.S. Security Treaty. The 
joint statement gives high marks to the bilateral alliance between 
the two countries and its role. At the same time, it also says the 
two countries will deepen their alliance. In the joint statement, 
the Japanese and U.S. governments vow to "reduce the burden of 
base-hosting localities, including Okinawa," and endorse "efforts to 
maintain deterrence, including an appropriate stationing of U.S. 
forces, in a changing security environment," thereby indicating the 
two governments' intention to maintain U.S. military deterrence in 
Japan. In addition, the joint statement also incorporated efforts to 
seek "a world without nuclear weapons" as advocated by President 
Obama. 
 
Foreign Minister Katsuya Okada, meeting the press yesterday, 
indicated that the "Okinawa Base Issues Review Committee," a panel 
of officials from the government and ruling parties, should discuss 
where to relocate the U.S. military's Futenma airfield in Okinawa 
Prefecture from the perspective of maintaining deterrence. "We 
cannot ignore U.S. military deterrence when thinking about the 
Futenma replacement facility," Okada said. Defense Minister Toshimi 
Kitazawa, also meeting the press yesterday, pointed to the threat 
from North Korea and China's military expansion and underscored the 
presence of U.S. forces in Okinawa as a necessary deterrence. 
 
5) Japan, U.S. groping for ways to deepen security alliance 
 
NIKKEI (Page 3) (Full) 
January 20, 2010 
 
Although the Japanese and U.S. governments emphasize their 
determination to deepen the Japan-U.S. alliance and make it the 
"anchor of stability" in Asia and the Pacific in their joint 
statement (on the 50th anniversary of the signing of the security 
treaty), they are groping for concrete ways to do so. Tackling the 
issue of the relocation of the U.S. forces' Futenma Air Station, the 
rise of China both politically and economically, and the North Korea 
issues will not be easy. The road to the redefinition of the 1996 
Japan-U.S. Joint Declaration on Security, which defined the role of 
the security alliance in the post-Cold War period, will be bumpy. 
 
 
TOKYO 00000112  004 OF 009 
 
 
At his news conference on Jan. 19, Foreign Minister Katsuya Okada 
said: "We will, of course, discuss developments in China," citing 
China as one topic in the talks for deepening the alliance. China 
has been at the center of changes in the security environment in 
Asia and the Pacific since the 1996 Joint Declaration. While there 
has been a persistent theory of China's threat, cooperation with 
China in dealing with North Korea's nuclear and missile issues is 
also indispensable. A delicate balance between caution and 
cooperation is crucial. 
 
In the first place, the foundation of the Japan-U.S. alliance has 
been destabilized because Prime Minister Yukio Hatoyama has 
indicated his intention to reconsider the relocation site of the 
Futenma base, which had already been agreed upon by the two 
countries. Along with suspicions about Hatoyama's advocacy of an 
"equal Japan-U.S. relationship," the U.S. is increasingly 
distrustful of the Hatoyama administration. Hatoyama has declared 
that the "results" of the bilateral talks on deepening the alliance 
"will be presented to the people before the end of the year." The 
Japan-U.S. summit to be held when President Barack Obama visits 
Japan in November will be a critical juncture, but this will be 
premised on the rebuilding of the bilateral relationship of trust. 
 
At his news conference, Defense Minister Toshimi Kitazawa said: "If 
the security alliance is strong, climate change and energy will also 
be discussed," indicating that a solution to the Futenma issue will 
contribute to the deepening of the overall alliance. How can this be 
reconciled with the Social Democratic Party and others advocating 
Futenma's relocation out of Japan or out of Okinawa? The first 
hurdle to deepening the alliance will be whether the government can 
meet the deadline of May for a solution to the Futenma issue. 
 
6) Government considers dispatching SDF personnel to Haiti to 
provide additional medical assistance 
 
ASAHI (Page 9) (Full) 
January 20, 2010 
 
The Hatoyama government has started looking into dispatching 
Self-Defense Force (SDF) medical personnel to Haiti to treat 
survivors of the devastating earthquake. Defense Minister Toshimi 
Kitazawa ordered the SDF on Jan. 18 to start preparations for 
sending a medical team and has already sent a fact-finding team of 
12 members to the stricken area. 
 
The government plans to send a medical team of 70 to 80 members who 
will engage in providing medical services to the injured and 
controlling infectious diseases. Chief Cabinet Secretary Hirofumi 
Hirano said in a press conference on Jan. 18: "We have to carry out 
additional rescue measures. We hear the situation there is very 
serious." Once arrangements are completed, the government will 
dispatch a team composed mainly of medical officers by the end of 
this week from the Ground Self-Defense Force's Middle Army (in Itami 
City, Hyogo Prefecture). 
 
7) Finance Minister Kan orders reinvestigation into documents 
related to Japan-U.S. secret pact 
 
YOMIURI (Page 4) (Full) 
January 20, 2010 
 
Finance Minister Naoto Kan revealed during a press conference 
 
TOKYO 00000112  005 OF 009 
 
 
yesterday that he has ordered his ministry to reinvestigate the 
documents related to a secret pact on the expenses to restore the 
sites of former U.S. bases to their original condition during the 
reversion of Okinawa to Japanese administration. "According to my 
experience, old documents were generally kept at government 
offices," Kan said. In 1996 when he was serving as health and 
welfare ministry, Kan had his ministry disclose documents on 
drug-induced AIDS problems that had been kept at the ministry. 
 
8) Yokohama District Court dismisses taxi driver's claim for 
compensation from government in U.S. sailor's assault case 
 
AKAHATA (Page 15) (Full) 
January 20, 2010 
 
The Yokohama District Court handed down its verdict on Jan. 19 in 
the claim for compensation for damages from the government filed by 
Mr. Iwao Tabata, 64. Tabata, a taxi driver, was assaulted by a 
sailor of the Blue Ridge, the flagship of the U.S. Navy's Seventh 
Fleet based in Yokosuka, who was inebriated after an 
all-night-drinking binge, and suffered serious injuries in an 
incident in September 2006. He was suing for compensation on the 
grounds that U.S. Forces Japan (USFJ) failed to meet its 
responsibility for supervising the sailor. Chief Justice Toshimasa 
Fukami dismissed the plaintiff's case. 
 
The verdict recognizes that the USFJ has power of supervision over 
U.S. service members off-duty. It also cites the fact that the USFJ 
recognizes that drinking at night is a cause of crimes by U.S. 
service members and has imposed restrictions on going out at night 
and drinking during off-duty hours and states: "It cannot be denied 
that if (the USFJ) had thoroughly enforced its regulations, the 
crime committed in this case could possibly have been avoided." 
 
However, the sentence emphasizes that "it is impossible to restrict" 
the behavior of USFJ personnel "excessively." It cites the fact that 
the U.S. sailor had no previous record of disciplinary action or 
trouble caused by drinking, and therefore, the USFJ's failure to 
restrict the suspect "cannot be regarded as grossly irrational," 
denying that the USFJ failed to fulfill its supervisory 
responsibility. 
 
Lawyer Hiroshi Takahashi gave the following comments: "It is 
commendable that the court recognizes that failure to strictly 
enforce regulations covering drinking at night to prevent crimes by 
U.S. service members resulted in the crime. However, its verdict 
that the USFJ did not fail to meet its supervisory responsibility is 
in discrepancy with the people's common sense." 
 
9) Hatoyama to forgo attending Davos conference 
 
NIKKEI (Page 2) (Full0 
January 20, 2010 
 
Prime Minister Yukio Hatoyama decided yesterday to forgo attending 
the annual meeting of the World Economic Forum (Davos conference), 
which will start on Jan. 27 in Davos, Switzerland, according to a 
government source. Hatoyama has given priority to voting on the 
second supplementary budget for fiscal 2009, which the government 
aims to pass before the end of this month. 
 
10) China opposes bill on preservation of Okinotori Island 
 
TOKYO 00000112  006 OF 009 
 
 
 
NIKKEI (Page 2) (Full) 
January 20, 2010 
 
Referring to the Japanese government's decision to submit to the 
current regular Diet session a bill aimed at the preservation of the 
nation's outlying islands, including Okinotori Island, the 
southernmost island of Japan, Chinese Foreign Ministry spokesman Ma 
Zhaoxu said at a press conference yesterday: "The Japanese 
government's assertion of the expansion of territorial waters under 
its jurisdiction with Okinotori Island as a base does not conform 
with international law." 
 
11) Prime Minister's replies during Jan. 19 House of Representatives 
question-and-answer session 
 
YOMIURI (Page 11) (Excerpts) 
January 20, 2010 
 
Economic measures 
 
The economy is picking up, but it still lacks vitality. The 
government decided on a package of economic stimulus measures last 
December in the face of the high unemployment rate and the severe 
employment situation. Defining employment and the environment as 
priority areas, the government will enhance the nation's growth 
potential from the mid- to long-term perspective. The government 
will produce an overall picture of its growth strategy by around 
June. 
 
Futenma relocation issue 
 
The government will look into the matter based on the Japan-U.S. 
agreement and the policy agreement of the coalition government, 
while valuing the sentiments of the people in Okinawa. (The 
government and the ruling parties') study committee will reach a 
conclusion by May. The government will look into a wide-range of 
possible relocation sites without attaching any preconditions. 
 
Three weapons-export principles 
 
The three principles banning weapons exports are vital in light of 
the peace-oriented country's basic idea of avoiding international 
conflicts. The government will adhere to the policy of dealing with 
matters cautiously based on the three principles. 
 
12) Panel on immigration policy recommends simplification of entry 
procedures, other preferential treatment for foreign experts 
 
MAINICHI (Page 24) (Full) 
January 20, 2010 
 
Junichi Ishikawa 
 
A private advisory body to the justice minister, the "council on 
immigration policy" submitted a report to Justice Minister Keiko 
Chiba on Jan. 19 recommending preferential treatment, such as 
extension of authorized period of stay, for foreigners with high 
levels of specialized knowledge and skills. This is aimed at 
increasing the incentive for them to come to Japan. The 
recommendations will be incorporated and institutionalized in the 
basic immigration policy plan to be drafted by the Ministry of 
 
TOKYO 00000112  007 OF 009 
 
 
Justice shortly. 
 
The report recommends introducing a point system which will give 
preferential treatment in immigration procedures for foreigners 
obtaining a certain number of points assigned for educational 
background, income, linguistic ability, and so forth. Research 
achievements and other categories will be given additional points, 
and a foreigner certified to have "advanced expertise" should enjoy 
such preferential treatment as simplification of immigration 
procedures and authorized period of stay of up to five years. 
 
 
The panel recommends that the entry into Japan of foreigners in the 
following categories should be encouraged: researchers and other 
academics; doctors, lawyers, and other professionals with advanced 
expertise and skills; and business managers and experts in 
management and administration. The UK, Australia, Canada, and other 
countries already have point systems in place. The report also 
recommends that the limit of authorized stay for dentists, nurses, 
and other foreigners with government certified medical licenses, 
currently set at four to seven years, should be abolished, as in the 
case of doctors. 
 
13) PNP final draft proposes reforming current structure of postal 
group into three-company system 
 
YOMIURI (Page 9) (Excerpt) 
January 20, 2010 
 
The People's New Party (PNP) revealed yesterday its final draft plan 
for reforming the Japan Post Group prior to the start of drafting a 
postal reform bill (tentative name). Under the plan, the current 
five-company system under Japan Post Holdings Co. would be changed 
into a three-company system in which Japan Post Bank Co. and Japan 
Post Insurance Co. would be placed under a holding company to be 
formed by integrating Japan Post Holdings, Japan Post Service Co., 
and Japan Post Network Co. In its initial draft, the PNP had 
presented two ideas - a one-company system and a three-company 
system, but the party has withdrawn the one-company system. 
 
14) Tanigaki expresses opposition to granting local suffrage to 
foreign residents 
 
SANKEI (Page 5) (Full) 
January 20, 2010 
 
Liberal Democratic Party President Sadakazu Tanigaki, appearing on a 
BS Fuji-TV program last night, announced that his party will oppose 
a bill to grant local suffrage (voting rights) to permanent foreign 
residents in Japan. He said: "When looking at the moves to leave the 
question of relocating the U.S. Marine Corps' Futenma Air Station up 
to a local election (Nago mayoral election), I wonder if it is a 
good idea to grant local suffrage." He thus expressed his intention 
to require the LDP lawmakers to vote according to party policy. 
 
15) Five LDP lawmakers to form new policy study group 
 
NIKKEI (Page 2) (Full) 
January 20, 2010 
 
Five Liberal Democratic Party (LDP) lawmakers, including Yuji 
Yamamoto, former minister of financial services, yesterday announced 
 
TOKYO 00000112  008 OF 009 
 
 
that they would form a new policy study group, "Nozomi," advocating 
constitutional reform. Yamamoto said, "We want to support LDP 
President Sadakazu Tanigaki and participate in attacking the 
Democratic Party of Japan." Besides Yamamoto, the new group includes 
Ichiro Kamoshita, Keiji Furuya, Yoshihisa Furukawa, and Seiichi Eto. 
Ryota Takeda decided against joining the group. 
 
16) Ozawa agrees to undergo questioning over land deal scandal 
 
YOMIURI (Page 1) (Excerpt) 
January 20, 2010 
 
Democratic Party of Japan Secretary General Ichiro Ozawa has 
notified prosecutors that he will accept their request for 
questioning over a shady land purchase by Rikuzan-kai, Ozawa's 
political fund management group, according to informed sources. The 
prosecutors suspect that the land deal violated the Political Funds 
Control Law. The two sides will now arrange a date for the 
questioning. The prosecutors have also asked Ozawa's wife to 
voluntarily submit to questioning as an unsworn witness. 
 
17) Hatoyama: "It is natural as a peer to believe in his innocence," 
in replying to Diet questions over Ozawa's land deal scandal 
 
ASAHI (Page 1) (Excerpts) 
January 20, 2010 
 
Asked about the propriety of his decision to keep Secretary General 
Ichiro Ozawa in his post, Prime Minister Yukio Hatoyama replied in a 
plenary session at the House of Representatives yesterday: "I have 
trusted Mr. Ozawa as our party secretary general up until now, so it 
is the principle stance as a peer to believe in his innocence if he 
claims that he is." Ozawa's former aides were arrested on suspicion 
of violating the Political Funds Control Law. 
 
Hatoyama reiterated in the interpellation session that since the 
case involving Ozawa's political fund management organization is 
under investigation by prosecutors, "it is necessary to calmly watch 
the development of the investigation." He also said: "I have no 
intention of (criticizing) the prosecutors' investigation or 
exercising my authority." He added that he was not considering an 
investigation by the party. 
 
18) JAL applies for court-administered bankruptcy protection and 
reorganization: ETIC to support carrier's turnaround; flight 
operations to be continued 
 
NIKKEI (Top play) (Lead para.) 
January 20, 2010 
 
The financially-troubled Japan Airlines (JAL) and two of its 
subsidiaries on Jan. 19 announced that they applied for protection 
with the Tokyo District Court under the Corporate Bankruptcy Law and 
received on the same day a court decision to commence the 
procedures. The JAL group's total liabilities stand at 2.32 trillion 
yen, the highest-ever amount for a company outside the financial 
sector. The Enterprise Turnaround Initiative Corporation of Japan 
(ETIC) has formally decided to support JAL's reconstruction. The 
corporate turnaround body and the Development Bank of Japan (DBJ) 
will provide the carrier a credit line worth 900 billion yen in 
public funds. Following these decisions, the Tokyo Stock Exchange 
announced that it will designate JAL stock as a liquidation issue 
 
TOKYO 00000112  009 OF 009 
 
 
for a month starting on the same day and delist it on Feb. 20. 
 
19) Delta Air Lines offers full support to JAL 
 
MAINICHI (Page 8) (Full) 
January 20, 2010 
 
Following Japan Airline's (JAL) application for a petition for 
protection with the court under the Corporate Rehabilitation Law, 
Delta Air Lines of the U.S. which is aiming at forming an alliance 
with JAL, and SkyTeam, to which Delta Air Lines belongs, on Jan. 19 
issued comments noting that they will offer full support to JAL and 
extend as much financial aid and support as possible to the carrier. 
American Airlines of the U.S., a member of OneWorld, to which JAL 
belongs, also released a statement saying that it will continue to 
cooperate with JAL. 
 
20) Subsidy system for eco-friendly-car buyers to be applied to U.S. 
vehicles as well 
 
NIKKEI (Page 7) (Full) 
January 20, 2010 
 
The U.S. has been calling on Japan to review its subsidy system for 
buyers of Japanese-made eco-friendly cars, complaining that the 
system is excluding U.S. automakers. In connection with this, the 
government on Jan. 19 announced that it would add imported cars that 
are not covered under Japan's system for designating vehicle types 
to the list of vehicles eligible for the subsidy system. To be 
precise, buyers of vehicles imported under the basic screening 
system that targets imported cars will become eligible for tax 
credits. 
 
No U.S. vehicles have thus far been covered by the system. However, 
three or four types of vehicles or about 700 units will become 
eligible for subsidies after the revision. 
 
Under the eco-friendly vehicle subsidy system, up to 250,000 yen 
will be provided to buyers of a vehicle that meet the fuel 
efficiency standard set under the designated model system. The basic 
screening system is applied to approximately 30 percent of U.S. 
vehicles imported by Japan. Following the review of the system, 
whether to apply the eco-friendly vehicle subsidy system to U.S. 
cars will be determined on the basis of whether the vehicles meet 
the subsidy standards by converting the U.S-style fuel efficiency 
value determined on a mileage-per-gallon basis into kilometers per 
liter under the system for designating vehicle types. 
 
Concerning this issue, U.S. Secretary of State Clinton in talks with 
Foreign Minister Okada called for a corrective measure, saying: 
"There is growing concern on the issue in Congress." Resolutions on 
the inequality of the system have been submitted to the Senate and 
the House of Representatives. Referring to the review of the system, 
Economy, Trade and Industry Minister Masayuki Naoshima said: "There 
is something unclear regarding whether the fuel efficiency system 
adopted by the U.S. is really correct or not. However, the 
government has expanded the vehicles eligible for the subsidy system 
from the viewpoint of stimulating the economy. We did not handle 
this issue as a political issue." 
 
ZUMWALT