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UNCLAS SECTION 01 OF 09 TOKYO 000125 
 
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 01/21/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Ozawa scandal: 
3) Arrested Lower House member Ishikawa testifies he discussed 
non-reporting of funds with other indicted Ozawa aide Okubo 
(Yomiuri) 
4) DPJ Secretary General Ozawa likely to be questioned on land deal 
on Jan. 23  (Mainichi) 
5) Focus of Diet on what happens after Ozawa's questioning  (Nikkei) 
 
6) Ozawa says he will give explanation of his innocence in near 
future  (Nikkei) 
 
Defense & security: 
7) Defense Ministry reform team to be launched  (Asahi) 
8) City Council adopts resolution opposing relocation of Futenma 
facility to Shimojishima  (Yomiuri) 
9) Govt. to dispatch additional 110 personnel for Haiti earthquake 
relief  (Nikkei) 
 
Politics: 
10) LDP, New Komeito submit bill revising Political Party Public 
Subsidy Act  (Yomiuri) 
11) Prime Minister's replies to questions in Diet session  (Yomiuri) 
 
12) LDP unified in opposition to enfranchising foreign residents 
(Yomiuri) 
 
Economy: 
13) Eco car subsidy creates friction between Japan, U.S.  (Yomiuri) 
 
14) Govt. lifts ban on beef imports from two U.S. meat packers 
(Mainichi) 
 
Media: 
15) DPJ lawmaker calls for review of press club system  (Asahi) 
16) YouTube clip of Sea Shepherd, whaling vessel collision stirs 
international debate  (Sankei) 
 
Foreign relations: 
17) Foreign Ministry spokesman rebuts Chinese criticism of plan to 
build port infrastructure on Okinotori Island  (Tokyo Shimbun) 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, & Tokyo Shimbun: 
Supreme Court rules providing city-owned land for free to Shinto 
shrine unconstitutional 
 
Yomiuri: 
Ishikawa: I consulted with Okubo on not listing 400 million yen used 
to purchase land in political fund report for 2004 
 
Nikkei: 
Hitachi, Toshiba to increase production of storage devices for PCs 
 
Sankei: 
Ozawa: This kind of issue is a violation of legal formalities under 
normal circumstances 
 
TOKYO 00000125  002 OF 009 
 
 
 
Akahata: 
JCP Chairman Shii in BS Fuji program: Diet should fulfill 
responsibility for shedding light on Ozawa scandal 
 
2) EDITORIALS 
 
Asahi: 
(1) First anniversary of Obama administration: Concern about shaky 
leadership 
(2) Supreme Court's ruling that free city land for Shinto shrine is 
unconstitutional is realistic and appropriate 
 
Mainichi: 
(1) Supreme Court's decision that providing city-owned land at no 
charge to Shinto shrine is unconstitutional is appropriate 
(2) Obama administration should go back to its original spirit of 
"change" 
 
Yomiuri: 
(1) DPJ must not misinterpret "landslide victory" in Lower House 
election 
(2) Supreme Court decision calls attention to principle of 
separation of politics and religion 
 
Nikkei: 
(1) DPJ's criticism of information leak from prosecutors to media 
unreasonable 
(2) Supreme Court placed priority on separation of politics and 
religion 
 
Sankei: 
(1) Concern about Supreme Court's ruling 
(2) Major quake in Haiti: Japan must play up its presence through 
medical contributions 
 
Tokyo Shimbun: 
(1) Supreme Court ruling of "unconstitutional" is new point of view 
(2) Heavy particle radiotherapy for cancer: Fair placement of 
facilities urged 
 
Akahata: 
(1) Management-Labor policy committee report: Victory of 
corporations alone unallowable 
 
3) Arrested Lower House member Ishikawa testifies he discussed 
non-reporting of funds with other indicted Ozawa aide Okubo 
 
YOMIURI (Top play) (Lead paragraph) 
January 21, 2010 
 
It was learned from an informed source that in connection with the 
case involving a land purchase by Rikuzan-kai, the fund management 
organization of Democratic Party of Japan Secretary General Ichiro 
Ozawa, House of Representatives member Tomohiro Ishikawa, 36, who 
has been arrested, has testified to investigators of the Tokyo 
District Prosecutors Office's Special Investigation Division that he 
consulted with Ozawa's government-paid first secretary Takanori 
Okubo, 48, (currently on trial) about not reporting the 400 million 
yen used to purchase the land in Rikuzan-kai's political fund 
accounting report for 2004. Ishikawa explained that he later 
informed Ozawa of the plan not to report the 400 million yen and 
 
TOKYO 00000125  003 OF 009 
 
 
obtained his approval. The Special Investigation Division believes 
that Ozawa, Ishikawa, and Okubo possibly conspired to falsify the 
accounting report and is conducting investigations on this matter. 
 
4) DPJ Secretary General Ozawa likely to be questioned on land deal 
on January 23 
 
MAINICHI (Page 1) (Abridged) 
January 21, 2010 
 
The questioning of Democratic Party of Japan Secretary General 
Ichiro Ozawa by the Tokyo District Prosecutors Office's Special 
Investigation Division (SID) in connection with the case involving a 
land purchase by his fund management organization, the Rikuzan-kai 
is likely to take place on Jan. 23. Ozawa has informed the SID of 
his choice of date, and the SID has indicated that his preference 
will be given top priority. The SID has apparently informed Ozawa 
that "the questioning will take around four hours." 
 
The SID is also looking into the possibility of questioning Ozawa's 
wife. Ozawa has explained that the source of funds used in the land 
purchase was "inheritance from his late father, plus savings 
accumulated later, which were deposited with a trust bank under his 
and his wife's names; and these funds were withdrawn around 10 years 
ago and kept at home." Based on this explanation, the SID has 
apparently decided that it will be necessary to question Ozawa's 
wife. In response to this, Ozawa said he intends to explain 
everything by himself. 
 
5) Focus of Diet on what happens after Ozawa's questioning 
 
NIKKEI (Page 2) (Abridged) 
January 21, 2010 
 
The Diet completed its two days of interpellation on the financial 
policy speech delivered by Deputy Prime Minister and Finance 
Minister Naoto Kan. Substantial debate will begin at the House of 
Representatives Budget Committee on Jan. 21. The focus will mostly 
be on the violation of the Political Funds Control Law involving a 
land deal by Democratic Party of Japan Secretary General Ichiro 
Ozawa's fund management organization, the Rikuzan-kai. Since Ozawa 
will agree to be questioned by the prosecutors on a voluntary basis, 
maneuvering between the ruling and opposition parties will unfold 
with the political situation after Ozawa's questioning in mind. 
 
Political schedule for January 
 
Jan. 21 Interpellation at Lower House Budget Committee on second 
2009 supplementary budget (until Jan. 22) 
This weekend? Tokyo District Prosecutors Office's Special 
Investigation Division questions Ozawa on a voluntary basis? 
Jan. 25 Ruling parties to pass supplementary budget at Lower House 
Budget Committee, as well as enact this budget at Lower House on the 
same day 
End of January? Enactment of supplementary budget 
 Policy speech by Prime Minister Yukio Hatoyama 
 
6) DPJ's Ozawa to "gain the people's understanding" on land deal 
scandal "shortly" 
 
NIKKEI (Page 2) (Full) 
January 21, 2010 
 
TOKYO 00000125  004 OF 009 
 
 
 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa was 
briefed by Azuma Koshiishi, chair of the DPJ caucus in the House of 
Councillors, and other senior party officials on the situation in 
the Diet and the Upper House election at his office in the Diet on 
Jan. 20. He joined Koshiishi and others at a New Year's party of 
senior DPJ officials in the Upper House in the evening, where he 
said in a speech: "I have been causing you trouble. I will make 
arrangements to gain the people's understanding shortly." 
 
A senior party official indicated that what he probably meant by 
"making arrangements to gain the people's understanding" was to 
"prove his innocence by responding to the prosecutors' 
questioning." 
 
When a Diet member elected from Nagasaki Prefecture thanked him for 
attending the DPJ prefectural chapter's party, Ozawa said: "The 
Nagasaki gubernatorial election next month is an important election. 
The whole party should work hard in the campaign." 
 
Ozawa left his residence in Tokyo in the morning. He apparently 
spent time at his personal office in Tokyo before he went to the 
Diet in the late afternoon. 
 
7) Defense Ministry reform team to be launched 
 
ASAHI (Page 4) (Full) 
January 21, 2010 
 
Defense Minister Toshimi Kitazawa has decided to launch a new review 
team this month to reform his ministry. The review team will work 
out a reform plan by the end of fiscal 2010, aiming to ensure 
civilian control through such steps as creating an enhanced system 
that supports the ministry's political appointees in the top posts 
of minister, senior vice minister, and parliamentary secretary. 
 
Meanwhile, the now-opposition Liberal Democratic Party and its 
one-time coalition partner, the New Komeito, had worked out a plan 
to overhaul the Defense Ministry in the wake of a corruption scandal 
involving former Administrative Defense Vice Minister Takemasa 
Moriya. Their reform plan was to rectify the superiority of the 
Defense Ministry's bureaucrats over the Self-Defense Forces' staff 
officers at the ministry and integrate the SDF's staff officers and 
the ministry's bureaucrats. However, their reform plan has been 
called off. 
 
Some lawmakers in the now-ruling Democratic Party of Japan say 
intermingling the SDF's staff personnel with the Defense Ministry's 
bureaucracy could result in letting the SDF, an armed entity, go out 
of control. The review team will therefore look into strengthening 
the ministry's current system in which the SDF's brass officers and 
the ministry's bureaucrats work together to assist the minister, 
senior vice minister, and parliamentary secretaries, who play a key 
role under the initiative of politicians. In addition, the team will 
also study measures to streamline the SDF's current defense buildup 
planning divisions in the Ground, Maritime, and Air Self-Defense 
Forces that are said to be wasteful in many ways. 
 
8) Miyakojima assembly adopts petition against Futenma relocation to 
Shimojishima 
 
YOMIURI (Page 4) (Full) 
 
TOKYO 00000125  005 OF 009 
 
 
January 21, 2010 
 
The municipal assembly of Miyakojima City in Okinawa Prefecture 
called a special session yesterday and unanimously adopted a 
petition against the emerging alternative option of relocating the 
U.S. military's Futenma airfield in the island prefecture to 
Shimojishima, an island belonging to the city. There is an idea 
being floated from within the ruling parties for considering 
Shimojishima airport on the island as a new alternative site for the 
heliport functions of Futenma airfield. 
 
9) Government to send 110-member SDF medical team to Haiti 
 
NIKKEI (Page 2) (Full) 
January 21, 2010 
 
The government yesterday decided to send another emergency-relief 
team consisting of medical and other personnel from the Self-Defense 
Forces (SDF) to quake-devastated Haiti. Defense Minister Toshimi 
Kitazawa ordered the deployment. The SDF medical team will leave 
Narita Airport tonight for Florida, U.S.A. The team is expected to 
start providing medical treatment and disease prevention measures as 
early as the 24th in Leogane. 
 
10) LDP, New Komeito present bill amending subsidies law to Diet 
 
YOMIURI (Page 4) (Abridged) 
January 21, 2010 
 
The Liberal Democratic Party (LDP) and the New Komeito yesterday 
submitted to the House of Representatives a bill that would revise 
the subsidies law to prevent parties that have decided to disband 
from donating their party subsidies to other political 
organizations. This move is intended to rattle the government by 
throwing into relief the politics-and-money scandal involving 
Democratic Party of Japan Secretary General Ichiro Ozawa. 
 
The Liberal Party -- headed by Ozawa -- was officially disbanded in 
September 2003. On the day of its dissolution, the Liberal Party 
spent all of its party subsidies by making contributions to each of 
the party legislators' political bodies and other means. The LDP and 
the New Komeito have criticized the Liberal Party's action as an 
attempt to avoid returning the money to state coffers. The bill 
includes a measure to have the political organizations that received 
subsidies from disbanded political parties voluntarily return the 
money to state coffers. 
 
11) Hatoyama's Diet replies 
 
YOMIURI (Page 11) (Excerpts) 
January 21, 2010 
 
Land deal scandal involving Rikuzan-kai 
 
Secretary General Ichiro Ozawa is one of the people who made it 
possible to achieve a change of government. When Mr. Ozawa said to 
me that he would "fight," I interpreted it to mean that he was 
determined to prove his innocence. I agreed with Mr. Ozawa's resolve 
to fight to reform Japanese politics. He naturally should make 
efforts to that end as a politician. My earlier statement was not 
intended to apply pressure to prosecutors and will have no effect 
(on their investigation). 
 
TOKYO 00000125  006 OF 009 
 
 
 
Constitutional revision 
 
This is not the right time for me to express my view. I do not think 
I should consider this issue during my term of office. 
 
Global warming 
 
The government will employ every possible measure to attain Japan's 
goal. We will give consideration to the burdens expected to be 
imposed on the nation's industry and public after introducing 
economic regulations. The government will work out specific measures 
to be included in a global warming countermeasures bill. 
 
Economic and fiscal management 
 
The government and the Bank of Japan will work together to hammer 
out powerful and comprehensive measures to contain deflation. The 
government put together emergency economic measures last December, 
with a focus on environmental protection. Also by coming up with 
measures to overcome deflation, we will place the economy on a solid 
recovery track. First of all, we will make utmost efforts to have 
the fiscal 2009 second supplementary budget enacted at an early 
date. The government has decided to cap the issue of government 
bonds at about 44 trillion yen. This is not a small sum, but we have 
maintained fiscal discipline in the midst of drastically decreasing 
tax revenues. This is a result of our utmost efforts and ingenuity. 
 
Futenma relocation issue 
 
There are still destabilizing factors in the Asia-Pacific region. 
The Japan-U.S. security arrangements are indispensable for Japan's 
security, so the government will continue to firmly uphold them. In 
order to deepen the Japan-U.S. alliance to adapt to the evolving 
environment of the 21st century, I will come up with a conclusion by 
May without fail. 
 
Refueling mission in Indian Ocean (response given by Defense 
Minister Kitazawa) 
 
Through the Maritime Self-Defense Force's refueling mission in the 
Indian Ocean, Japan was able to demonstrate the Self-Defense Force's 
capabilities and advanced technology to the international community. 
Japan will continue to contribute actively to UN peace cooperation 
activities. We will consider a wide range of activities. 
 
12) LDP plans to oppose bill granting permanent foreign residents 
suffrage in local elections 
 
YOMIURI (Page 4) (Full) 
January 21, 2010 
 
A group of Diet members from the Liberal Democratic Party (LDP), 
headed by former Administrative Reform Minister Seiichiro Murakami, 
decided yesterday to oppose a bill that would grant suffrage in 
local elections to permanent residents in Japan, which the 
government and ruling parties are considering submitting to the 
current Diet session. The group calls itself the "parliamentarians' 
group calling for the cautious handling of a bill granting permanent 
foreign residents suffrage." At the LDP's annual convention on Jan. 
24, Policy Research Council Chairman Shigeru Ishiba intends to 
express opposition to speedy deliberations on the bill, aiming at 
 
TOKYO 00000125  007 OF 009 
 
 
preventing the legislation from passing through the Diet during the 
current session. 
 
In yesterday's meeting, some lawmakers called for a study on banning 
foreign residents from conducting campaign activities, with one 
member saying, "Japan's elections should not be swayed by the views 
of foreign residents." 
 
13) Japan-U.S. friction over Japan's subsidy system for eco-friendly 
vehicle buyers: U.S. vehicles eligible for system stand at only 700 
units even after easing of conditions by Japan 
 
YOMIURI (Page 9) (Full) 
January 21, 2010 
 
The Japanese government had originally taken the stance that there 
would be no problem with the new subsidy system, since imported cars 
are also eligible, if they meet conditions, such as the fuel 
efficiency standard set by Japan. As a matter of fact, 40 percent of 
imported cars met the conditions for becoming eligible for subsidies 
even before the revision of the system. However, no U.S. cars met 
such conditions. A senior official of the Ministry of Economy, Trade 
and Industry (METI) said, "We cannot comply with the U.S. request, 
since it is trying to bulldoze its way through even though their 
vehicles do not meet the conditions." 
 
The government on the 19th released a measure to ease the 
conditions, by enabling determination of whether imported cars are 
eligible for the subsidy system or not on the basis of the fuel 
efficiency value adopted in the country of origin, if the number of 
imports is less than 2,000 units a year. The number of U.S. vehicles 
exported to Japan by vehicle type is small. The government has 
apparently given in to the U.S. request. 
 
However, according to an estimate by METI, only 700 or so U.S. 
vehicles will become eligible for the system as a result of the 
revision. As such, it is hard to think that the U.S. side will 
readily accept it. Hans Tempel, representative director and 
president of Mercedes-Benz of Japan and chairman of the Board of 
Japan Automobile Importers Association (JAIA) said, "The fixed-sum 
subsidies are disadvantageous for imported cars, because many are 
high-priced." Delicate maneuvering with various countries will 
likely continue. 
 
14) Japan lifts ban on beef imports from two U.S. plants 
 
MAINICHI (Page 23) (Full) 
January 21, 2010 
 
The agriculture and health ministries on Jan. 20 lifted a ban on 
beef imports from two U.S. plants. The ban was imposed after spinal 
column, a specified risk material for BSE (bovine spongiform 
encephalopathy), was discovered in their beef shipments to Japan in 
July and Sept. 2009. The ministries lifted the ban because they "had 
confirmed improvements in safety" at the two plants, Tyson's 
Lexington plant in Nebraska and Creekstone's plant in Kansas. 
 
15) Request for reviewing press club system 
 
ASAHI (Page 4) (Full) 
January 21, 2010 
 
 
TOKYO 00000125  008 OF 009 
 
 
Akio Fukuda (Democratic Party of Japan (DPJ) member), representative 
director of the Lower House Budget Committee, at a policy meeting of 
the Internal Affairs Ministry, said, "The nature of the press club 
system should be reexamined. Press clubs at government agencies have 
been taken over by ministries and agencies. Reporters cannot write 
proper articles there. Some attorneys say that the judicial press 
club has been taken over by the Public Prosecutors' Office." NHK 
management personnel also participated in the meeting. Fukuda 
stated, "Internal Affairs Minister (Kazuhiro) Haraguchi is 
criticizing press reports that say 'according to related sources.' 
NHK is also broadcasting such reports. People believe those reports. 
I would like you to make efforts so that accurate information and 
facts can be conveyed to the people." 
 
16) Heated debate on YouTube over video of collision between Ady Gil 
and Shonan Maru 
 
SANKEI (Page 15) (Slightly abridged) 
January 21, 2010 
 
A heated debate has been going on among Net users across the world 
ever since a video of a collision in Antarctic waters between the 
U.S. environmental protection group Sea Shepherd Conservation 
Society's anti-whaling protest ship, and the Shonan Maru No. 2, the 
patrol boat of a Japanese research whaling fleet, was uploaded on 
the Internet. A large number of people have accessed the site, with 
some expressing frank views critical of research whaling in conflict 
with the positions of their governments and posting comments 
reflecting their national character, while many others express 
opinions critical of the steps taken by the Sea Shepherd. 
 
Since Jan. 6, the day the collision occurred, many video pictures 
and news videos, including one on the collision site taken by the 
Institute of Cetacean Research, have been posted on the video 
sharing site YouTube. As of Jan. 20, some videos had been played 
over 920,000 times, and the site had received more than 9,500 
messages. 
 
Messages reflecting national character 
 
The prevailing opinion after viewing the videos is that the Ady Gil 
picked up speed and steered toward Shonan Maru No. 2 immediately 
before the collision. There was much negative criticism even from 
countries supportive of the Sea Shepherd, with a German visitor 
noting: "The video clearly reveals the truth. What the Sea Shepherd 
did was an act of terrorism." A viewer in Finland wrote: "Although I 
am opposed to killing whales, I cannot support the Sea Shepherd's 
action." A Japanese user posted a cynical comment: "Are whales more 
important than humans?" 
 
As seen in an American user's comment -- "Chinese eat cats, Koreans 
eat dogs, Japanese eat whales, and I eat hamburgers: these are 
culinary traditions" --  many are supportive of whaling itself as 
part of food culture. 
 
But the debate over the propriety of research whaling continues, 
with an American writing, "Japan should admit that it is carrying 
out research whaling for commercial purposes," and an Australian 
noting, "Japan must not practice its whale-killing culture in our 
waters." 
 
The Japanese have rebutted these critics, saying: "Whaling is for 
 
TOKYO 00000125  009 OF 009 
 
 
research purposes. The Antarctic Ocean is not part of Australia's 
territory." 
 
Japan an easy target 
 
Besides Japan, Iceland is conducting research whaling, and Norway is 
commercially catching minke whales. Despite that, there have been 
many attacks against Japanese vessels by the Sea Shepherd recently. 
An Australian user calmly analyzed this fact and reached this 
conclusion: "The Sea Shepherd probably wants to prove that they are 
racists. Other countries are also actively conducting whaling. Japan 
becomes an easy target because it is polite and withdraws without 
fighting back." 
 
Sankei Shimbun sent an e-mail to the Sea Shepherd asking for an 
interview, but there had been no response as of Jan. 19. 
 
17) Foreign Ministry rebuts China over island issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
January 21, 2010 
 
Kazuo Kodama, a spokesman for the Foreign Ministry, held a press 
conference yesterday, during which he offered a counterargument to 
China over its opposition to the Japanese government's port 
maintenance work at Japan's southernmost island of Okinotori. "Japan 
has been controlling Okinotori Island effectively and has 
established its entitlement and status as an island," Kodama said. 
 
The Japanese government, in its budget for fiscal 2010, has 
earmarked spending on projects to improve the ports and harbors of 
Japan's outlying islands, including Okinotori Island. 
 
ZUMWALT