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UNCLAS SECTION 01 OF 07 TOKYO 000019 
 
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 01/06/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma relocation issue: 
4) DM Kitazawa creates task force on Futenma relocation  (Yomiuri) 
5) Chief Cabinet Secretary Hirofumi Hirano to visit proposed Futenma 
relocation sites in Okinawa  (Tokyo Shimbun) 
 
Defense & security: 
6) Defense Minister to appoint Nishimoto as special advisor 
(Mainichi) 
7) Ozawa calls for international contribution in return for reducing 
U.S. bases  (Akahata) 
 
Foreign relations: 
8) PRC Ambassador to South Korea Cheng Yonghua to become new envoy 
to Japan  (Nikkei) 
 
Politics: 
9) Finance Minister Fujii to resign post  (Asahi) 
10) LDP accepts Yamauchi's resignation from party  (Asahi) 
11) Private advisory council presents proposals on Japan-U.S. 
relationship to PM  (Nikkei) 
12) Masuzoe aims for political realignment; hints at formation of 
new party  (Sankei) 
13) Prosecutors to ask Ozawa to respond to questioning about fund 
management body's failure to report land deal  (Mainichi) 
 
Economy: 
14) New car sales in Japan drop below 5 million  (Tokyo Shimbun) 
 
Opinion: 
15) Nikkei poll: 70 PERCENT  of corporate managers say Japan-Korea 
FTA necessary  (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Finance Minister Fujii to step down for health reasons 
 
Akahata: 
15 years pass since Great Hanshin Earthquake, victims still having 
difficulties 
 
2) EDITORIALS 
 
Asahi: 
(1) Land deal scandal: We want to hear Ozawa's explanation 
(2) China's growing GDP: Efforts needed to become responsible 
economic power 
 
Mainichi: 
(1) 2010 as year of reconstruction: Build a society friendly toward 
all citizens 
 
Yomiuri: 
(1) Hatoyama administration facing difficulties - economy, bases, 
 
TOKYO 00000019  002 OF 007 
 
 
and donations 
 
Nikkei: 
(1) Establish multi-axial industrial structure, focusing on Asia and 
environment 
 
Sankei: 
(1) JAL reconstruction: Early settlement by legal liquidation 
needed 
 
Tokyo Shimbun: 
(1) Emerging from deflation top priority 
 
Akahata: 
(1) New growth strategy welcomed by business world is hopeless 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 5 
 
NIKKEI (Page 2) (Full) 
January 6, 2010 
 
10:02 Held cabinet meeting at the Prime Minister's Official 
Residence (Kantei) 
10:58 Met Finance Minister Hirohisa Fujii 
11:14 Held National Vision Study Group meeting 
13:17 Met Fujii; Chief Cabinet Secretary Hirofumi Hirano also 
present 
14:05 Attended joint New Year party hosted by three economic 
organizations at Imperial Hotel 
14:55 Met Environment Minister Sakihito Ozawa and Senior Vice 
Environment Minister Issei Tajima at the Kantei; joined by Senior 
Vice Foreign Minister Tetsuro Fukuyama 
15:58 Attended New Year party of Rengo (Japanese Trade Union 
Confederation) at Hotel Lungwood in Higashi-Nippori 
17:28 Arrived at the Kantei 
19:58 Had dinner with Administrative Reform Minister Yoshito 
Sengoku, Government Revitalization Unit Secretary General Hideki 
Kato, Cabinet Office Senior Vice Minister Motohisa Furukawa, House 
of Councillors member Ren Ho, and Liberal Democratic Party House of 
Representatives member Taro Kono at Italian restaurant Caf La 
Boheme in Shinjuku 
20:51 Arrived at his official residential quarters 
 
4) DM Kitazawa in action: Task force on Futenma relocation to be 
created, introduces adviser to Prime Minister 
 
YOMIURI (Page 4) (Full) 
January 6, 2010 
 
Defense Minister Toshimi Kitazawa is stepping up moves to realign 
foreign and security policy, which is regarded as the weak point of 
the Hatoyama administration. 
 
At a news conference on Jan. 5, Kitazawa announced the creation of a 
task force under his supervision that will work on the issue of the 
relocation of the U.S. forces' Futenma Air Station in Okinawa. 
 
The task force will consist of several officials who were not 
directly involved with developing the existing relocation plan and 
will take charge of coordination with the U.S. Department of Defense 
 
TOKYO 00000019  003 OF 007 
 
 
and Okinawa. Although Social Democratic Party leader State Minister 
for Consumer Affairs Mizuho Fukushima has said that the officials 
who have been in charge of the Futenma issue up until now from the 
North American Affairs Bureau of the Ministry of Foreign Affairs and 
the Defense Policy Bureau of the Ministry of Defense should be 
replaced, Kitazawa did not go that far. 
 
Kitazawa also introduced foreign affairs commentator Yukio Okamoto 
to Prime Minister Yukio Hatoyama in December. Okamoto is an expert 
on the United States who served as an adviser to the prime minister 
under the Hashimoto and Koizumi cabinets. He visited the U.S. in 
December and met with senior U.S. government officials through his 
own personal connections. After returning home, he briefed Hatoyama 
in detail on the situation in the U.S. at a meeting in late 
December. 
 
Hatoyama had, at first, shown an interest in the proposal to 
relocate the Futenma base to the U.S. territory of Guam, but ruled 
out this possibility after his meeting with Okamoto on Dec. 26. It 
is widely believed that Okamoto's advice was behind this change. 
Japan Research Institute Chairman Jitsuro Terashima, who takes a 
skeptical view of U.S. policies, has so far been seen as an 
influential foreign policy adviser to Hatoyama, but it appears that 
Okamoto is becoming more important. 
 
Kitazawa also decided to appoint Tetsuya Nishimoto, former chairman 
of the Self-Defense Forces Joint Staff Council, as his adviser on 
Jan. 5. Since a revision of the National Defense Program Guidelines 
is scheduled for the end of the year, he wants to seek the advice of 
an expert. 
 
5) Chief Cabinet Secretary Hirofumi Hirano to visit proposed Futenma 
relocation sites in Okinawa 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
January 6, 2010 
 
Chief Cabinet Secretary Hirofumi Hirano announced at a news 
conference on Jan. 5 that he will visit Okinawa on Jan. 8-10 in 
connection with the search for a relocation site for the U.S. 
forces' Futenma Air Station (in Ginowan City, Okinawa). 
 
In addition to visiting the Futenma base located in an urban 
district, Hirano is also thinking of going to the islands of Ie and 
Shimoji, which have emerged as possible relocation sites in the 
ruling parties. He will also meet Governor Hirokazu Nakaima. 
 
6) Defense minister to appoint Nishimoto as special adviser 
 
MAINICHI (Page 5) (Full) 
January 6, 2010 
 
Defense Minister Toshimi Kitazawa decided yesterday to appoint 
former Joint Staff Council chairman Tetsuya Nishimoto as his special 
adviser. The appointment is likely to be approved at a cabinet 
meeting shortly. Nishimoto chaired the Joint Staff Council, the top 
brass among uniformed personnel from the Self-Defense Force staff 
offices at that time, from July 1993 through March 1996 after 
serving as Ground Self-Defense Force chief of staff. He will provide 
advice to Kitazawa over the issue of relocating the U.S. Marine 
Corps' Futenma Air Station, the revision of the National Defense 
Program Outline scheduled for later this year, and other matters. 
 
TOKYO 00000019  004 OF 007 
 
 
The Defense Ministry set up the post of special adviser last year 
after a series of scandals involving the ministry. 
 
7) DPJ's Ozawa advocates international contribution in place of 
downsizing U.S. military bases in Japan 
 
AKAHATA (Page 2) (Full) 
January 6, 2010 
 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa 
appeared on a TV Tokyo program aired on the evening of Jan. 4. 
Discussing the issue of the U.S. forces' Futenma base in Okinawa, 
Ozawa said: "The biggest problem is that the Japanese government, 
especially the Ministry of Foreign Affairs, is unable to speak up to 
the United States. The U.S. is annoyed by this." 
 
Ozawa added: "If there is no need for so many U.S. military bases 
and soldiers in the front line, (Japan) should say so clearly (to 
the U.S. side). It should just say that we will defend our country 
properly and will make international contributions in the following 
ways, so there is no need to worry," stating in effect that if Japan 
reinforces its military capability, U.S. military bases can be 
downsized. 
 
Ozawa refrained from commenting on the pros and cons of U.S. bases 
in Okinawa. He said: "I am not in a position to make comments on 
specific policies." 
 
Ozawa has been making deceitful statements. He agreed with U.S. 
Secretary of State Hillary Clinton on "reinforcing" the subservient 
Japan-U.S. alliance last year while also advocating an "equal 
Japan-U.S. relationship." 
 
8) PRC Ambassador to South Korea Cheng Yonghua to become new envoy 
to Japan 
 
NIKKEI (Page 3) (Abridged) 
January 6, 2010 
 
Ken Sato in Beijing 
 
It was learned on Jan. 5 that the Chinese government has decided to 
appoint ambassador to South Korea Cheng Yonghua, 55, to succeed 
ambassador to Japan Cui Tiankai, 57, and has been coordinating with 
the Japanese government on this. Cui is moving on to become vice 
foreign minister. The Japanese government is expected to agree to 
the appointment and Cheng is expected to take up his post as soon as 
March. Cheng is proficient in Japanese and has extensive connections 
in the Japanese political and business world. By appointing a Japan 
expert as ambassador, China intends to strengthen its relations with 
Japan. 
 
Cheng was one of the first government-funded students to study in 
Japan after the normalization of diplomatic relations between Japan 
and China in 1972. He is known to have an affable personality. He is 
currently the ambassador to South Korea and is knowledgeable on 
North Korean issues. 
 
9) Finance Minister Fujii to resign 
 
ASAHI (Top play) (Excerpts) 
January 6, 2010 
 
TOKYO 00000019  005 OF 007 
 
 
 
Finance Minister Hirohisa Fujii (77) on Jan. 5 decided to step down 
for the reason that it would be impossible for him to attend 
deliberations in the upcoming regular Diet session due to ill 
health. Several sources close to him revealed this. Fujii is 
expected to formally announce his decision shortly. Prime Minister 
Yukio Hatoyama intends to ask him to stay. However, according to an 
aide close to him, he is firmly determined to quit. 
 
Hatoyama yesterday evening told reporters, "I would like him to 
continue to do his best." This will be the first resignation (if 
realized) of a Hatoyama cabinet member since the administration was 
launched in September last year. If he steps down, the regular Diet 
session is bound to fall into a state of disarray, which would deal 
a major blow to the administration. The regular Diet session is 
slated to be convened on the 18th. A plan to have either Deputy 
Prime Minister and State Minister for National Policy Naoto Kan or 
State Minister for Government Revitalization Yoshito Sengoku double 
as finance minister or to promote either Deputy Finance Ministers 
Yoshihiko Noda or Naoki Minezaki to the post has been floated. 
 
10) Upper House member Yamauchi's resignation from LDP approved 
 
ASAHI (Page 4) (Full) 
January 6, 2010 
 
The Party Ethics Committee of the Liberal Democratic Party (LDP) 
accepted House of Councillors member Toshio Yamauchi's request to 
leave the party. He intends to join the Japan Renaissance Party. He 
was elected in the Kagawa constituency. 
 
11) Experts offer policy proposals on Japan-U.S. relations to 
Hatoyama 
 
NIKKEI (Page 2) (Full) 
January 6, 2009 
 
Prime Minister Yukio Hatoyama yesterday invited members of his 
private study group on national policy to his office and heard their 
views on such issues as Japan-U.S. relations and economic policy. 
According to one attendee, some members contended that if the 
government neglects public opinion calling for relocating U.S. 
Marine Corps Air Station Futenma out of Okinawa, the anti-base 
movement will spread and Japan-U.S. relations will only grow worse. 
Hatoyama responded, saying: "I'm impressed; that view shows 
foresight." 
 
12) LDP Masuzoe hints at forming new political party in pursuit of 
political realignment 
 
SANKEI (Page 2) (Full) 
January 6, 2010 
 
Yoichi Masuzoe of the Liberal Democratic Party (LDP), former health, 
labor and welfare minister, said after attending the party's first 
meeting of the year at party headquarters yesterday: "I am 
determined to take action when action is required amid the 
significant changes occurring in the political world. Ultimately, I 
would like to attain the major goal of political realignment." 
 
Masuzoe asserted: "Democratic Party of Japan Secretary General 
Ichiro Ozawa has followed the LDP's most old-fashioned political 
 
TOKYO 00000019  006 OF 007 
 
 
style. It is necessary (for the LDP) to work together with those who 
can handle the affairs of state from a fresh perspective 
(irrespective of whether they are ruling or opposition party 
members)." He then indicated that he would form a new political 
party, remarking: "It does not make sense to resuscitate a political 
party that has already become antiquated and has been abandoned by 
the people. We must take on the attitude required to form a new 
political party." 
 
In response, LDP Secretary General Tadamori Omori commented: 
"Political realignment is not a responsible political view. I do not 
think that a reorganization of the political world will take 
place." 
 
13) Prosecutors to ask Ozawa to respond to questioning about fund 
management body's failure to report land deal 
 
MAINICHI (Page 1) (Full) 
January 6, 2009 
 
The Tokyo District Public Prosecutors Office has apparently decided 
on a policy of asking Democratic Party of Japan (DPJ) Secretary 
General Ichiro Ozawa to respond to questioning on a voluntary basis 
in connection with the political fund reports of his fund management 
body, Rikuzankai. However, there is a possibility that Ozawa's side 
will refuse to respond to the request. Prosecutors have already 
filed a criminal complaint against Tomohiro Ishikawa, 36, a DPJ 
House of Representatives member and former private secretary of 
Ozawa, elected in the Hokkaido No. 11 district, and another former 
aide of Ozawa, on suspicion of violating the Political Funds Control 
Law because Rikuzankai did not accurately report a 2004 land 
purchase in its funding report for 2004 and the source of the money 
is unclear. 
 
Ishikawa has testified by saying, "(We) made the land purchase at 
Mr. Ozawa's instruction. His own money was spent for the land 
purchase. (We) told him that we lacked operating funds, and took out 
a loan. I don't think he was aware (of the details)." As a result, 
prosecutors have apparently determined that it will be necessary to 
ask Ozawa for an explanation. 
 
14) Sales of brand-new cars fall below 5 million units 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
January 6, 2010 
 
The Japan Automobile Dealers Association and the Japan Mini Vehicles 
Association on Jan. 5 announced that the number of brand-new 
domestic vehicles sold in 2009 stood at 4,609,255 units, down 9.3 
percent from the previous year, falling below the 5 million- level 
for the first time in 31 years. The sales of such cars marked a 
year-on-year decline for five consecutive years. The figure is about 
a 40 percent drop from 7,777,493 units marked in 1990. A major drop 
in the first half of last year as a result of the economic 
stagnation since the financial crunch has put a dent in the sales. 
 
Japan's auto market has been shrinking, because young people's 
interest in cars has been declining since even before the Lehman 
shock. The statistics showed that this situation is still 
continuing. However, there are indications that the downtrend 
bottomed out in the second half of 2009 due to the eco-car tax break 
and subsidies system. The Japan Automobile Manufacturers Association 
 
TOKYO 00000019  007 OF 007 
 
 
estimates the sales of brand-new cars (including compact s) in 2010 
at 4,798,400 units, up 4.1 percent from the 2009 level. 
 
15) Poll of Japanese, South Korean top managers: More than 70 
percent say Japan-South Korea-China FTA is necessary 
 
NIKKEI (Page 1) (Excerpts) 
January 6, 2010 
 
According to a questionnaire of Japanese and South Korean top 
business managers, conducted jointly by the Nihon Keizai Shimbun and 
South Korea's Maeil Business Newspaper, more than 70 percent of 
Japanese and South Korean business leaders surveyed replied that it 
is necessary for Japan, South Korea, and China to conclude a free 
trade agreement. They are eager to achieve economic expansion 
through the elimination of trade barriers such as tariffs. 
 
Japanese business leaders who replied that a Japan-South Korea-China 
FTA is "necessary" or "somewhat necessary" jumped to 76 percent, up 
15 points from the previous survey carried out in December 2008. The 
ratio of their South Korea counterparts who gave the same reply 
reached 82 percent, up 3 points compared to the previous survey. 
Japanese business leaders have taken an increasingly positive stance 
presumably because exports have dropped sharply, following the 
financial meltdown in the fall of 2008. However, this poll targeted 
leading companies. Small- and medium-sized businesses and farmers 
are likely to be opposed the idea. 
 
ROOS