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UNCLAS SECTION 01 OF 09 TOKYO 000143 
 
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 01/25/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Nago mayoral election: 
3) Election result further complicates relocation to Henoko  (Asahi) 
 
4) Hirano: Govt. will decide; Maehara: All options are on the table 
(Tokyo Shimbun) 
5) Real possibility Futenma facility will become permanent base 
(Yomiuri) 
6) Okinawa Gov. Nakaima takes wait-and-see attitude  (Asahi) 
7) Election outcome forces gov. to review policy on bases  (Asahi) 
 
Futenma relocation: 
8) Okada says Henoko still a candidate site  (Yomiuri) 
9) Fukushima reiterates opposition to relocation of base to Henoko 
(Yomiuri) 
 
Foreign relations: 
10) Okada aims for Nov. agreement on new form of bilateral alliance 
(Nikkei) 
11) Okada sends letter to U.S. explaining Japan's position on U.S. 
nuclear policy  (Nikkei) 
 
Economy: 
12) U.S. financial regulation: Japanese banks geared up to observe 
future moves  (Nikkei) 
13) Hiromasa Yonekura tapped to head Keidanren  (Nikkei) 
 
Ozawa scandal: 
14) Ozawa flatly denies allegations  (Asahi) 
15) Whether or not Ozawa will resign post focus of attention 
(Yomiuri) 
 
Politics: 
16) Summary of LDP's new principles adopted at party convention 
(Mainichi) 
17) Former Lower House member Nobuhiro Omiya to quit LDP  (Nikkei) 
 
Research & development: 
18) Japan, U.S. to jointly develop "smart grid"  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun, & Akahata: 
Candidate calling for relocating Futenma base out of Okinawa wins 
Nago mayoral election; Relocating Futenma to Henoko has become 
increasingly difficult 
Nikkei: 
Concerns exist over expected "vacuum" in economic measures in 
January-March period 
 
2) EDITORIALS 
 
Asahi: 
(1) Nago mayoral election: Government must expedite effort to look 
for relocation site outside Okinawa 
(2) LDP annual convention: Need for young talented members who can 
 
TOKYO 00000143  002 OF 009 
 
 
work for reconstruction 
 
Mainichi: 
(1) Nago mayoral election: Victory of candidate opposing relocating 
Futenma to Henoko carries the weight of the popular will 
(2) LDP convention: President Tanigaki must take the lead 
 
Yomiuri: 
(1) Nago mayoral election: Relocation of Futenma to Henoko is the 
best option 
(2) LDP convention: LDP must show its efforts for "reform" 
 
Nikkei: 
(1) Turmoil over Futenma relocation issue grows worse due to Nago 
mayoral election 
(2) LDP must compete with DPJ in policies 
 
Sankei: 
(1) LDP convention: President Tanigaki must play up his intention to 
fight for political helm 
(2) Nago mayoral election: Prime Minister Hatoyama must risk his 
political life to solve Futenma issue 
 
Tokyo Shimbun: 
(1) Has America changed? 
 
Akahata: 
(1) Consumption tax hike argument: "Reserve funds (profits)" of 
major companies should be returned to society 
 
3) Victory of Futenma relocation opponent in Nago mayoral election 
makes Henoko relocation "extremely difficult" 
 
ASAHI (Top play) (Lead paragraph) 
Janaury 25, 2010 
 
The mayoral election in Nago City, Okinawa, where the point of 
contention was the relocation of the U.S. forces' Futenma Air 
Station (in Ginowan City, Okinawa), was held on Jan. 24. Neophyte 
candidate Susumu Inamine, 64, endorsed by the Democratic Party of 
Japan, the Japanese Communist Party, the Social Democratic Party, 
the People's New Party, and the Socialist Masses Party of Okinawa, 
who is opposed to the plan agreed upon by Japan and the U.S. to 
relocate the Futenma base to Henoko in Nago, defeated the incumbent 
mayor who accepts the relocation plan, Yoshikazu Shimabukuro, 63, 
and was elected for his first term as mayor. The Hatoyama cabinet 
intends to decide on Futenma's relocation site by the end of May. 
Relocation to Henoko has now become extremely difficult. The number 
of eligible voters in this election was 44,896, and the voter 
turnout was 76.96 percent (74.98 percent in the previous election). 
 
4) Hirano says gov't to decide on relocation site; Maehara insists 
on mulling every possible option 
 
TOKYO SHIMBUN (Page 1) (Full) 
January 25, 2010 
 
Yesterday's mayoral election in the Okinawa prefectural city of Nago 
ended in the victory of Susumu Inamine, an independent opposed to 
accepting the planned relocation of the U.S. military's Futenma 
airfield in the island prefecture to the city's Henoko area. In this 
regard, Chief Cabinet Secretary Hirofumi Hirano stressed yesterday 
 
TOKYO 00000143  003 OF 009 
 
 
evening that the government will decide on where to relocate Futenma 
airfield based on its own judgment. "The government will have to 
make a decision on its own," Hirano told reporters in Tokyo. 
 
The outcome of the mayoral election, however, is expected to make it 
difficult for the government to implement the current plan to 
relocate Futenma airfield to a coastal area of Camp Schwab in the 
city's Henoko area. "I will accept the inauguration of a mayor who 
won the election with support from local public opinion," Hirano 
said, implying that the government would respect the city's public 
opinion. 
 
Also, Seiji Maehara, state minister for Okinawa and northern 
territories, made a comment yesterday evening, saying: "The mayoral 
election was not a poll of local residents over the propriety of 
Futenma relocation alone. We will have to find an alternative 
facility from among all the possible options." This indicates that 
the government should consider every possible option without 
precluding the current plan. 
 
5) Result of Nago mayoral election increases possibility of Futenma 
base remaining in current location permanently; significant impact 
on U.S. force realignment expected 
 
YOMIURI (Page 2) (Excerpts) 
January 25, 2010 
 
The selection of a new relocation site for the U.S. Marine Corps' 
Futenma Air Station has now become extremely difficult due to the 
victory of Susumu Inamine, who is opposed to accepting a plan to 
relocate Futenma to Nago, in the city's mayoral election yesterday. 
Inamine's victory is likely to endanger the 1996 Japan-U.S. 
agreement on the total return of Futenma, increasing the possibility 
of the base remaining in its current location indefinitely. The fate 
of the plan to relocate U.S. Marines from Okinawa to Guam, now 
underway in tandem with the Futenma plan, is certain to become 
unclear as well. The result is likely to have a tremendous impact on 
the entire U.S. force realignment plan. 
 
"The Futenma relocation might fall through," a senior Defense 
Ministry official said gloomily after learning of the election 
results last night. "It will be difficult to decide on a relocation 
site by the end of May. The United States might also decide to 
maintain the status quo." 
 
6) Okinawa governor to wait for government's response after victory 
of Futenma relocation opponent in Nago mayor election 
 
ASAHI (Page 1) (Full) 
January 25, 2010 
 
In reaction to the outcome of the Nago mayoral election, Okinawa 
Governor Hirokazu Nakaima told reporters on the evening of Jan. 24: 
"The base issues are 200 percent the national government's 
responsibility," indicating his intention to take a wait-and-see 
attitude on the government's response. 
 
Nakaima has so far accepted the plan to relocate the Futenma Air 
Station to Henoko. When asked if he will change his mind, Nakaima 
would only say: "I may need to sort out my thoughts. Since a 
candidate endorsed by the ruling parties who says 'no' has been 
elected, (the Henoko plan) should be scrapped under normal 
 
TOKYO 00000143  004 OF 009 
 
 
circumstances. I cannot answer this question without asking the 
government what it intends to do first." 
 
7) Commentary: Victory of Futenma relocation opponent in Nago 
election forces government to rethink base policy 
 
ASAHI (Page 1) (Full) 
January 25, 2010 
 
Hirofumi Goto, Naha General Bureau chief 
 
The plan to relocate the Futenma Air Station to Henoko in Nago City 
has effectively been defeated more than 13 years after it was 
proposed. Although some supporters of Susumu Inamine accept the 
existing relocation plan, conflict among the citizens will be only 
be stirred up once again if the government insists on the Henoko 
relocation plan and attempts to make the new mayor change his mind. 
 
Yoshikazu Shimabukuro is not the only one who was defeated in the 
mayoral election. The biggest loser is none other than Japan's 
policy on the military bases in the postwar period. 
 
Inamine has criticized the economic development measures which are 
de facto rewards for accepting Futenma relocation, saying: "The 
number of impressive-looking buildings has increased but there is a 
shortage of doctors in the hospitals. The city will not be improved 
any better through one-time economic measures." A total of 
approximately 77 billion yen has been spent on Nago in the past 10 
years. Yet, "people feel that the economic measures have reached 
their limits," according to Inamine. 
 
In the 1950s, when U.S. military bases on the Japanese mainland were 
reduced by three-fourths with the restoration of Japan's 
sovereignty, the forcible expropriation of land for military bases 
increased in Okinawa on the contrary. Even after Okinawa's reversion 
to Japanese administration in 1972, the concentration of U.S. bases 
in Okinawa increased from 65 to 75 percent. After the rape of a 
schoolgirl by U.S. soldiers in 1995, the Japanese and U.S. 
governments announced that they would reduce the burden imposed by 
the bases, but the bases to be returned are mostly located in 
densely-populated southern and central Okinawa, and the plan is to 
build a new military base in Nago in the northern part of the 
prefecture. Nago's rejection of this plan also amounts to a vote of 
no confidence on the national government's method of imposing the 
burden on outlying areas. 
 
Prime Minister Yukio Hatoyama has zigzagged repeatedly in his 
statements on this issue. There is a persistent view in Nago that 
"(the Futenma replacement facility) will end up coming back to 
Henoko." 
 
Will it still be possible to implement the Henoko relocation plan? 
If the answer is yes, will the existing plan be modified? If the 
choice made by some 45,000 voters is to be the basis of the decision 
on the most important issue between Japan and the United States, 
they should have laid down all the conditions in advance. 
 
It will not be easy to find a relocation site other than Henoko. 
However, the method of keeping the bases in Okinawa by handing out 
favors in the form of public works projects has reached its limit. 
Unless the structure that has propped up the Japan-U.S. security 
arrangements is reviewed, the base issues cannot be resolved. 
 
TOKYO 00000143  005 OF 009 
 
 
 
8) Okada: Henoko also a candidate for Futenma relocation site 
 
YOMIURI (Page 4) (Abridged) 
January 24, 2010 
 
Foreign Minister Okada delivered a speech yesterday in Kuwana, Mie 
Prefecture, during which he indicated that the current plan to 
relocate the U.S. Marine Corps' Futenma Air Station in Okinawa 
Prefecture to a coastal area of Camp Schwab, a U.S. military base in 
the Henoko area of the island prefecture's northern coastal city of 
Nago, is also included in the list of options. "The current plan to 
relocate Futenma airfield to the coastal area of Henoko is still a 
candidate since we are not ruling out any possibility," Okada said. 
 
9) SDP's Fukushima reiterates opposition to Futenma relocation plan 
 
YOMIURI (Page 40 (Full) 
January 24, 2010 
 
Social Democratic Party President Fukushima, currently the Hatoyama 
cabinet's consumer affairs minister, delivered a speech yesterday at 
a party convention, in which she reiterated her intention to oppose 
the current plan based on an intergovernmental agreement between 
Japan and the United States to relocate the U.S. military's Futenma 
airfield in Okinawa Prefecture to a coastal area of Henoko in the 
island prefecture's northern coastal city of Nago. "I would like to 
work together with Prime Minister Hatoyama and People's New Party 
President Kamei toward a solution to the issue so a sea-based 
facility will not be built in the coastal area of Henoko," Fukushima 
said. 
 
10) Okada aims for Nov. agreement on new form of bilateral alliance 
 
NIKKEI (Page 2) (Full) 
January 24, 2010 
 
Foreign Minister Katsuya Okada, speaking at Kuwana and Yokkaichi in 
Mie Prefecture on Jan. 23, commented on talks between the Japanese 
and U.S. governments for deepening the bilateral alliance, saying: 
"There is a strong possibility President Obama will attend the 
Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting, which 
will be held in Yokohama in November. It would be good if a new form 
of Japan-U.S. alliance could be confirmed then," expressing the goal 
of timing an agreement with the president's visit. 
 
Additionally, he pointed out that "Japan and the U.S. must share an 
understanding of 
the security environment in the Asia-Pacific region and of how it 
will be 20 or 30 years hence." He analyzed the situation in China 
and North Korea, remarking that "it was necessary to review the role 
of the Japan-U.S. alliance." He also addressed the issue of 
relocation of the U.S. military's Futenma base: "Deterrence is an 
important part of the Marines' presence," reiterating a negative 
stance toward relocation of the base outside Japan. He stressed that 
the existing plan, under which the facility would be relocated to 
the coastal area of Camp Schwab, was also being considered. 
 
11) Government sends letter to U.S. praising nuclear posture review 
 
MAINICHI (Page 5) (Full) 
January 25, 2010 
 
TOKYO 00000143  006 OF 009 
 
 
 
Foreign Minister Katsuya Okada revealed in a press conference on 
Jan. 22 that he sent a letter on Dec. 24 to the U.S. government 
conveying the Japanese government's view on the U.S. Nuclear Posture 
Review that the Obama administration plans to complete by the end of 
February as its new nuclear policy guidelines. In the letter, the 
Japanese government praised President Obama's advocacy of a world 
without nuclear weapons, while acknowledging the importance of 
nuclear deterrence, writing, "Japan is fully aware of its dependence 
the U.S.'s extended deterrence (nuclear umbrella)." The government 
also stressed in the letter that it would not ask the U.S. not to 
reduce nuclear weapons in order to maintain nuclear deterrence. 
 
12) U.S. financial regulation: Japanese banks geared up to observe 
future moves 
 
NIKKEI (Page 7) (Excerpts) 
January 23, 2010 
 
U.S. President Obama's recently released new financial regulation 
plan is aimed at limiting the expansion of the size of banks and 
their engaging in excessively risky trading activities. The U.S.'s 
basic stance of preventing financial institutions from pursuing 
highly risky trading activities has something in common with the 
international movement to reform financial regulations being pushed 
forward by financial officials of leading countries. However, it is 
undeniable that the U.S. stance is somewhat hasty. 
 
Many countries are in trouble handling the two paradoxical issues of 
appropriately distributing funds to growth sectors through financial 
functions and preventing the occurrence of an economic bubble. There 
are perhaps lingering doubts that the U.S. government's clear-cut 
approach is divorced from reality. 
 
State Minister for Financial Affairs and Postal Reform Shizuka Kamei 
told the press corps on Jan. 22: "It is only natural for the U.S. to 
adopt sound economic and financial policies, since the current 
financial crisis originated in the U.S." He stopped short of 
referring to the possibility of Japan following suit. 
 
An executive at a megabank could only obtain several A4-size press 
release copies. He said: "All we can do is to closely watch (the 
U.S. government's) future moves. Since there are no details 
available, we are not in a position to examine the policy." An 
executive of another bank said: "Since Japanese banks have not been 
positively investing in investment funds, the impact of the new 
regulation would be minimal." At the moment, there is little concern 
that Japanese banks would be pressed to sharply scale down their 
operations. 
 
13) Yonekura to assume post of Japan Business Federation 
 
NIKKEI (Page 1) (Excerpts) 
January 24, 2010 
 
The Japan Business Federation (Nippon Keidanren) on Jan. 23 decided 
to appoint Hiromasa Yonekura (72), chairman of Sumitomo Chemical, as 
successor to the incumbent Chairman Fujio Mitarai (74). Yonekura is 
currently serving as the chairman of the Nippon Keidanren Board of 
Trustees, the number two post following the chairmanship. Many 
business leaders highly evaluate his management capability for his 
promoting globalization, such as launching a petrochemical complex 
 
TOKYO 00000143  007 OF 009 
 
 
in Saudi Arabia. Chairman Mitarai has determined that Yonekura is 
the right person to lead business circles in putting the Japanese 
economy on a new growth track. 
 
Hiromasa Yonekura: Entered Sumitomo Chemical in 1960 after 
graduating from the Tokyo University Law Faculty. Assumed presidency 
after serving as senior managing director, etc. Serving as chairman 
since 2009. Chairman of the Nippon Keidanren Board of Trustees since 
¶2008. Born in Hyogo Prefecture. 
 
14) Ozawa totally denies involvement in wrongdoing 
 
ASAHI (Top play) (Excerpt) 
January 24, 2010 
 
The special investigation team of the Tokyo District Public 
Prosecutors Office on the afternoon of Jan. 23 questioned Democratic 
Party of Japan Secretary General Ichiro Ozawa on a voluntary basis 
in connection with a possible violation of the Political Funds 
Control Law by his political fund management organization, 
Rikuzan-kai. After submitting to questioning as a suspect, Ozawa 
released a statement explaining the situation. Ozawa also held an 
unplanned press conference later on in which he again denied his 
involvement in any wrongdoing. "I want to fulfill my duties," Ozawa 
said in the press conference, expressing his plan to continue to 
serve as secretary general. Prime Minister Yukio Hatoyama has 
accepted Ozawa's explanation and intends to continue to monitor the 
investigations. The investigation team is likely to conduct further 
investigations based on the explanations provided by Ozawa's during 
the questioning. 
 
15) All eyes are on whether Ozawa will stay on or resign as 
secretary general 
 
YOMIURI (Page 1) (Excerpts) 
January 24, 2010 
 
The fact that Democratic Party of Japan Secretary General Ichiro 
Ozawa was questioned as a suspect by the special investigation team 
of the Tokyo District Public Prosecutors Office is certain to deal a 
blow to the Hatoyama administration. Although the position of Prime 
Minister Yukio Hatoyama and others that Ozawa is innocent remains 
unchanged, there are concerns in the party over the House of 
Councillors election this summer. Political maneuvering within the 
party has also begun based on speculation that Ozawa will resign as 
secretary general. 
 
16) Gist of LDP's new party platform 
 
MAINICHI (Page 2) (Full) 
January 25, 2010 
 
The gist of the Liberal Democratic Party's platform for 2010 adopted 
in its annual convention yesterday is as follows. 
 
(Recognition of present situation) 
 
Reflecting on its defeat in the 2009 House of Representatives 
election, our party would like to make a fresh start, adopting as 
its political ideology a new type of conservatism suitable for a 
nation that must pursue progress while maintaining order and 
fulfilling its international obligations. We will squarely confront 
 
TOKYO 00000143  008 OF 009 
 
 
the national socialist administration, which ignores public opinion 
that opposes its intentions under the pretext of political 
leadership. 
 
(Conservative political party in pursuit of progress) 
 
We will speak of facts freely and actively with courage, hold 
consultations, and make decisions. We will make utmost efforts to 
manage the Diet fairly and make the government function in a humble 
manner. 
 
(Basic view about policies) 
 
We aim to establish a new constitution to enable Japan to offer 
contributions to the world. We are resolved to carry out our duties 
in line with the realities of the international community. We will 
build an autonomous and orderly market economy, and reconstruct the 
national economy by improving fiscal efficiency and revising the tax 
system. 
 
(Image of Japan with pride and vitality) 
 
The people should be independent and cooperate with one another. The 
government should implement policies that are fair to all people. 
The nation should fulfill its obligation to bring about global 
peace. 
 
17) Former lawmaker Omiya leaves LDP 
 
NIKKEI (Page 2) (Full) 
January 25, 2010 
 
Former House of Representative member Nobuhiro Omiya, 60, tendered 
on Jan. 24 his resignation to Liberal Democratic Party (LDP) 
Secretary General Tadamori Oshima at the LDP's headquarters. He 
plans to run in the House of Councillors election slated for this 
summer. Omiya, a former LDP staff member, was elected for the first 
time to the Lower House from the South Kanto proportional 
representation bloc in the 2005 election but he lost his Diet seat 
in the 2009 election. 
 
18) Japan, U.S. to launch joint research on smart power transmission 
systems 
 
NIKKEI (Page 3) (Full) 
January 25, 2010 
 
The Japanese and U.S. governments plan to launch joint research on 
smart power grids, next-generation transmission systems. With the 
aim of rolling out smart grids in the Asia-Pacific region, a 
taskforce composed of public and private-sector experts from the two 
countries will hold its first meeting in late February. 
Demonstration experiments will be started in Okinawa Prefecture and 
Hawaii. Japan and the U.S. hope to achieve positive results by the 
Asia-Pacific Economic Cooperation (APEC) Summit to be held in the 
U.S. next year and then expand the use of smart grids to other 
countries in the region. 
 
In a meeting of APEC energy ministers in Fukui City in June, Japan 
as the chair of the APEC forum for this year will propose a 
demonstration project of low-carbon towns, in which the government 
plans to invest about one billion yen. By joining hands with the 
 
TOKYO 00000143  009 OF 009 
 
 
U.S., which will chair the APEC forum next year, Japan is willing to 
back up measures to counter global warming in the region. 
 
Smart grids enable the monitoring of power supply and demand online 
from households, offices, and power plants to make a stable supply 
of electricity and energy saving possible. Smart transmission 
systems are indispensable to expanding the use of renewable energy 
such as solar power and wind power. 
 
Japan and the U.S. will look into areas for improvement and measures 
for disseminating the systems at the taskforce meeting through the 
demonstration experiments. Taskforce members will discuss how to 
make use of renewable energy mainly in island regions. Japan and the 
U.S. also aim to take the initiative in setting international 
standards for smart grids. If the systems can be put into practice 
in island regions, the two countries will consider installing the 
systems in developing countries as assistance measures. 
 
ZUMWALT