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UNCLAS SECTION 01 OF 09 TOKYO 000002 
 
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 01/04/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense & Security 
4) Maehara hints at dissolution of coalition if administration fails 
to reach decision on Futenma by May  (Akahata) 
5) MOD to set up cyberspace defense force  (Yomiuri) 
6) "Yuai boats" to cooperate with NGOs  (Nikkei) 
 
Politics: 
7) Lawmaker says he received 400 million in cash from Ozawa 
(Yomiuri) 
8) DPJ to move party headquarters this year  (Nikkei) 
9) Ordinary Diet session to start on January 18  (Yomiuri) 
 
Foreign relations: 
10) Vice Foreign Minister Yabunaka leaves for U.S.  (Mainichi) 
11) DPJ holds secret meetings with North Korea  (Sankei) 
 
Economy 
12) Govt. doubles JAL credit to 200 billion yen  (Nikkei) 
13) JAL president opposed to legal liquidation of airline  (Asahi) 
 
Opinion: 
14) Tokyo Shimbun poll: 62 PERCENT  of companies say economy 
unchanged  (Tokyo Shimbun) 
15) Mainichi poll: more than 50 PERCENT  of companies say economy 
sagging  (Mainichi) 
16) Tokyo Shimbun poll: 50 PERCENT  would cast vote for DPJ  (Tokyo 
Shimbun) 
 
17) Japan's population declines in 2009 for third consecutive year 
(Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Credit line for JAL to be doubled to 200 billion yen 
 
Mainichi: 
Majority of Japanese firms surveyed predict economy will stay at 
standstill, 30 PERCENT  see upturn in 2010 
 
Yomiuri: 
DPJ plans to lift ban on online election campaigning 
 
Nikkei: 
Staffing agencies shifting business models away from temporary staff 
placement 
 
Sankei: 
Japan-U.S. expert panel put off 
 
Tokyo Shimbun: 
Japan might be excluded from East Asia rice stockpile framework 
 
Akahata: 
 
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Central government, Tokyo should cooperate to reconstruct people's 
livelihoods 
 
2) EDITORIALS 
 
Asahi: 
(1) Coexistence with Asia: Japan urged to create great cycle in 
cooperation with other Asian countries 
 
Mainichi: 
(1) 2010 - year of reconstruction: Time to work on nuclear 
disarmament 
 
Yomiuri: 
(1) Hatoyama diplomacy must rebuild shaky Japan-U.S. alliance 
 
Nikkei: 
(1) Rebuild pension and medical systems so that young people can 
shoulder burden 
 
Sankei: 
(1) 50th anniversary of revision of U.S.-Japan Security Treaty: 
Japan urged to assume risks, prevent Japan-U.S. alliance from losing 
substance 
 
Tokyo Shimbun: 
(1) Fuel the storm outside COP 
 
Akahata: 
(1) 50th anniversary of revision of U.S.-Japan Security Treaty: Make 
2010 year of national debate calling for abolishing the treaty 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 3 
 
NIKKEI (Page 2) (Full) 
January 4, 2010 
 
Spent the whole day at his official residential quarters. 
 
4) Okinawa Affairs Minister Maehara tells U.S. Ambassador Roos: 
Dissolution of coalition over Futenma relocation, implementation of 
current relocation plan possible 
 
AKAHATA (Page 2) (Full) 
January 1, 2010 
 
Washington (Jiji) -- It was learned on Dec. 31 that State Minister 
for Okinawa and Northern Territories Affairs Seiji Maehara met U.S. 
Ambassador to Japan John Roos in Tokyo on Dec. 9 on the plan to 
relocate the U.S. forces' Futenma Air Station (in Ginowan City, 
Okinawa) and told the Ambassador that if Japan is unable to come up 
with an alternative plan acceptable to the U.S. side by May, it is 
prepared to pursue the existing plan to relocate the base to the 
coastal area of Camp Schwab (in Henoko, Nago City), even at the 
expense of dissolving the coalition government with the Social 
Democratic Party (SDP) and the People's New Party (PNP). This was 
revealed by a U.S. government source based on a report made to 
Washington. 
 
According to this source, Maehara explained at the meeting held at 
 
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the Ambassador's official residence that he met Prime Minister Yukio 
Hatoyama, Foreign Minister Katsuya Okada, Defense Minister Toshimi 
Kitazawa, and Chief Cabinet Secretary Hirofumi Hirano on the 
previous day, Dec. 8, and the five agreed that the acceptance of the 
existing relocation plan was "impossible" at that point, "due to the 
opposition of the SDP." 
 
However, he said that in the process of identifying a relocation 
site, efforts will be made to persuade the SDP and the PNP on: (1) 
the continuation of the environmental impact assessment in the 
coastal area of Camp Schwab; (2) earmarking expenditures relating to 
relocation to Camp Schwab in the reserve funds under the FY2010 
budget; (3) drawing up an alternative proposal acceptable both to 
Okinawa and the U.S.; and (4) accepting the existing relocation plan 
if no such proposal can be worked out. 
 
In addition, Maehara said that if an agreement is not reached with 
the U.S. on the alternative plan, "the dissolution of the coalition 
is possible" around May after the Golden Week holidays (in early 
May), when the budget and the related bills will have been enacted, 
if the SDP and PNP oppose the current relocation plan. He reportedly 
indicated that Japan will accept the existing relocation plan in the 
end. 
 
In response to an inquiry from Jiji Press, Maehara stated that he 
"did not say anything to that effect." 
 
5) Defense Ministry to create new cyberspace defense unit to 
strengthen countermeasures against hackers 
 
YOMIURI (Page 2) (Full) 
January 1, 2010 
 
The Ministry of Defense (MOD) has decided to create a specialist 
"cyberspace defense unit" in FY2010 to strengthen the protection of 
the confidentiality of information against attacks by viruses and 
other methods. In light of frequent invasion of government computer 
networks by hackers in the U.S., South Korea, and other countries, 
this "defense unit" will be responsible for unified collection, 
analysis, and research of the latest information on viruses and for 
conducting training on dealing with these viruses. 
 
The MOD is allocating some 7 billion yen for dealing with cyber 
attacks in its FY10 budget. It will set up a preparatory office led 
by a "cyber planning and coordination officer" to promote the 
training of team members with specialized knowledge. This "defense 
unit" is envisioned to have about 60 members and will report to the 
Self-Defense Forces (SDF) Command Control Communication Computers 
(C4) System Department. 
 
The U.S. and South Korean government websites suffered intensive 
cyber attacks in July 2009, resulting in damages such as disruption 
of connectivity. The MOD and the SDF have also been receiving an 
increasing number of e-mails containing viruses, causing a 
heightened sense of alarm. 
 
6) "Yuai boat" to cooperate with NGOs 
 
NIKKEI SHIMBUN (Page 2) (Full) 
January 4, 2010 
 
The outline of the "yuai (fraternity) boat," concept, which calls 
 
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for Maritime Self-Defense (MSDF) ships to visit disaster sites to 
provide medical aid, has been disclosed. The MSDF transport ship 
"Oosumi" (8,000 tons) will be used for the mission in cooperation 
with NGOs. The ship is scheduled to begin humanitarian relief in 
Southeast Asia after participating in training in the United States. 
 
 
Prime Minister Hatoyama laid out the "yuai boat" concept in a speech 
in Singapore on Asian policy. The government is considering the 
ship's participation in the "Pacific Partnership," a U.S.-led 
humanitarian mission in Southeast Asia. Other participants in the 
partnership include Canada and Australia. Japan dispatches several 
medical doctors to the program every year. 
 
The Japanese government envisions using in the mission MSDF ships of 
the "Oosumi' class, which are fully equipped to transport medical 
equipment and highly capable of transporting personnel. The 
government will soon start to recruit civilians and NGOs for 
participation in the initiative. 
 
7) Ishikawa: "I received 400 million yen from Ozawa" after 
consulting him on lack of money to purchase land 
 
YOMIURI (Top Play) (Lead paragraph) 
January 1, 2010 
 
Rikuzan-kai, the political fund management organization of 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa, 
failed to report the money it used to purchase land in Tokyo in 
¶2004. In questioning over this case by the special investigation 
unit of the Tokyo District Public Prosecutors Office, DPJ lawmaker 
Tomohiro Ishikawa, who was in charge of administrative work at the 
organization, said that he had received 400 million yen in cash from 
Ozawa after consulting him on fund management matters, according to 
informed sources. Furthermore, Ishikawa received another 400 million 
yen and credited it to the organization's bank account in 2005, but 
that money was not reported either. The special investigation unit 
suspects that he received this money from Ozawa as well. 
 
8) DPJ to move its headquarters to building near Lower House Diet 
Members' Building 
 
NIKKEI (Page 2) (Full) 
January 1, 2010 
 
It was learned on Dec. 31 that the Democratic Party of Japan (DPJ) 
plans to move its headquarters, now in Nagatacho, Tokyo, as early as 
before the end of 2010. This is because the party outgrew its 
present headquarters after the number of DPJ lawmakers doubled to 
more than 400 since the party's landslide victory in last summer's 
House of Representatives election. The DPJ is considering moving its 
headquarters into a building now under construction near the Lower 
House Diet Members' Building. 
 
The DPJ now rents the fourth to eighth floors and the 10th floor of 
a 10-story building located one minute from the Diet building. Other 
floors of the building are leased by a camera company and other 
firms. DPJ members have complained that parking lots and elevators 
are cramped and that it is difficult to check suspicious persons. 
 
9) Regular Diet session to be convened on Jan. 18; Upper House 
election most likely to be held on July 11 
 
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YOMIURI (Page 1) (Full) 
January 3, 2010 
 
The government and ruling parties decided on Jan. 2 to convene a 
regular Diet session on Jan. 18, according to several senior 
Democratic Party of Japan (DPJ) members. The session will run for 
150 days until June 16. If the term of the session is not extended 
and if the House of Councillors election in the summer is held on a 
Sunday based on the regulations set in the Public Offices Election 
Law, the official campaign for the Upper House election will start 
on June 24 and the election will be held on July 11. The ruling 
coalition will hold a meeting of the Diet affairs committee chiefs 
from the ruling and opposition parties on Jan. 6 and propose the 
convocation of the regular session on Jan. 18. 
 
The government and ruling parties aim to start deliberations on a 
second supplementary budget bill for fiscal 2009, including a 
package of emergency economic stimulus measures, and to enact the 
bill before the end of the month. 
 
10) Administrative Vice Foreign Minister Yabunaka to leave for U.S. 
today 
 
MAINICHI (Page 2) (Full) 
January 4, 2010 
 
The Ministry of Foreign Affairs announced Jan. 3 that Administrative 
Vice Minister Mitoji Yabunaka will visit the United States on Jan. 
4-6. He will hold talks with Deputy Secretary of State James B. 
Steinberg on the afternoon of Jan. 5 (local time) about such pending 
bilateral issues as the relocation of the U.S. Marine Corps' Futenma 
Air Station (in Nago City, Okinawa Prefecture). 
 
The government intends to make a decision on the Futenma relocation 
issue by May. It began looking into a new relocation site since late 
last year with the Social Democratic Party (SDP) and People's New 
Party (PNP), while leaving the existing plan to move the Futenma 
base to the coastal area of Camp Schwab (in Nago City) open as an 
option. However, since the U.S. government, which has insisted that 
the existing plan is the best and only viable option, has grown 
increasingly distrustful of the Japanese side, Yabunaka will 
apparently explain the circumstances in Japan once again. 
 
11) DPJ in secret contact with North Korea on abduction issue 
through several channels since last summer 
 
SANKEI (Top play) (Abridged) 
January 3, 2010 
 
It was learned on Jan. 2 that since last summer, several Democratic 
Party of Japan (DPJ) officials have engaged in top secret meetings 
with North Korea in China on several occasions on the issue of the 
DPRK's abduction of Japanese nationals, asking North Korea to 
investigate the whereabouts of the victims. This is the first time 
that the Hatoyama administration's contact with North Korea has been 
revealed. The North Koreans reportedly told DPJ officials that it is 
possible that some of the abductees are still alive. It is now 
possible that official talks between Japan and North Korea may 
resume before the House of Councillors election this summer, 
depending on the North Korean side's response. 
 
 
TOKYO 00000002  006 OF 009 
 
 
According to a number of sources related to the government and the 
ruling parties, the secret meetings started last summer, before the 
change of administration took place, and gained momentum after the 
Hatoyama cabinet was launched. 
 
One of the channels of secret contact involves an official close to 
Secretary General Ichiro Ozawa, and he has been visiting the North 
Korean embassy in Beijing about once a month. Another channel 
involves a different DPJ official who visited China in mid-October 
on orders from the Prime Minister's Official Residence. On this 
occasion, "he exchanged views on the various pending issues between 
the two countries with a senior North Korean official in the 
presence of an intermediary" (according to a source on Japan-DPRK 
relations). 
 
Through these secret contacts, the DPJ reiterated its demand for a 
re-investigation into the whereabouts of the abductees. The North 
Korean side allegedly responded that "some" of the abductees are "in 
poor health" but did not give any information on their names and 
identities. 
 
According to the source on Japan-DPRK relations, it appears that a 
close confidant of General Secretary Kim Jong Il, Workers Party of 
Korea United Front Department Director Kim Yang Kon, who is the 
working level official in charge of policy toward South Korea, has 
been involved with the secret meetings. A senior Japanese Ministry 
of Foreign Affairs official observes that, "While the information on 
surviving abductees cannot be verified, North Korea is probably 
trying to probe the DPJ administration's thinking." 
 
12) DBJ to double its credit line for JAL to 200 billion yen 
 
NIKKEI (Page 1) (Excerpt) 
January 4, 2010 
 
Deputy Prime Minister Naoto Kan and Transport Minister Seiji Maehara 
on Jan. 3 discussed the rebuilding of Japan Airlines (JAL) and 
agreed to boost the state-owned Development Bank of Japan's (DBJ) 
credit line for the cash-strapped air carrier from the current 100 
billion yen to 200 billion yen. This is aimed at supporting the 
carrier's cash flow until the Enterprise Turnaround Initiative 
Corporation of Japan (ETIC) decides to comply with JAL's request for 
financial assistance. Attention will be focused on the movements of 
JAL stocks on the Tokyo Stock Exchange, which will reopen on the 
4th. 
 
13) JAL president opposes legal liquidation: Eyes switching airline 
groups 
 
ASAHI SHIMBUN (Top play) (Lead para.) 
January 3, 2010 
 
Japan Airlines has asked for financial assistance from the 
Enterprise Turnaround Initiative Corporation of Japan (ETIC), a 
public-private fund. The fund sees bankruptcy filing as the most 
viable option available to the cash-strapped air carrier. Responding 
to an interview by the Asahi Shimbun, JAL President Haruka Nishimura 
revealed his stance of opposing the idea. He indicated his view that 
considering strategies for Asia, where future growth can be 
expected, it would be advantageous for JAL to switch airline groups. 
He said Delta Air Lines would be more desirable as the company's 
U.S. business partner than American Airlines. He also stressed that 
 
TOKYO 00000002  007 OF 009 
 
 
he has no intention of having the company pull out of international 
flight operations. 
 
14) Survey of 206 leading companies: 62 percent reply, "The economy 
will remain unchanged" 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
January 4, 2010 
 
The Tokyo Shimbun on Jan. 3 compiled results of a survey of 206 
leading companies throughout the nation on business conditions 
(conducted from mid-December through late-December). Regarding the 
present state of the Japanese economy, 62.4 percent of pollees 
replied that the economy is leveling off, indicating that many 
companies sense the economy is stagnating. Asked their outlook for 
fiscal 2010, while 49.3 percent think the economy will gradually 
improve, 40.5 percent said that the economy will level off, 
revealing they believe that it will be difficult for Japan to climb 
out of the harsh economic situation due to sluggish personal 
consumption, the strong yen, and concern about deflation. 
 
Asked about the Hatoyama administration, 44.4 percent of respondents 
were undecided, followed by 23.9 percent who were "dissatisfied" and 
10.2 percent who answered "so far so good." No respondents replied 
"very good." 
 
15) Mainichi poll of 119 companies: Majority of surveyed companies 
see economy at standstill: 30 percent project business turnaround 
 
MAINICHI (Top play) (Excerpts) 
January 4, 2010 
 
The Mainichi Shimbun late last year carried out an opinion poll of 
economic trends on 119 leading companies throughout the nation. Only 
35, or 29.4 percent, of the companies polled replied that the 
economy will improve. Sixty-seven companies, or 56.3 percent, 
replied that the economy will remain at a standstill. The survey 
results indicate that although the Japanese economy has climbed out 
of its worst phase right after the Lehman shock in the fall of 2008, 
an increasing number of companies predict that the economy will 
enter a temporary lull due to sluggish domestic demand, the 
deflationary trend, and the continuing strong yen. Sixteen companies 
or 13.4 percent of pollees replied that the economy would slip 
further. A sense of wariness about the economy suffering a second 
dip due to the economic slump and deterioration is heightening. 
 
The presidents and chairmen of 119 leading companies were surveyed 
for the poll conducted on from early December through mid-December. 
 
Regarding the present state of the economy, 76 companies (63.9 
percent of respondents) said, "The economy is leveling off." The 
number of companies that replied that the economy is gradually 
declining or has declined totaled 13 (10.9 percent). Only 30 
companies (25.2 percent) said that the economy is gradually picking 
up. 
 
In the survey, the 35 companies that projected the economy will turn 
around were also asked when they think the economy will achieve a 
full-scale recovery. Approximately 60 percent gave the answer, "in 
the second half of fiscal 2010." Twenty percent replied, "after 
fiscal 2011." Respondents in the poll this time projected a 
full-fledged economic turnaround later than the first half of fiscal 
 
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2010 - the timeframe given by the largest number of companies 
surveyed in the poll carried out last July. 
 
16) Poll: 50 PERCENT  say they would vote for DPJ in Upper House 
election 
 
TOKYO SHIMBUN (Page 3) (Excerpts) 
January 3, 2010 
 
In a nationwide face-to-face opinion survey on Dec. 5-6 by Public 
Opinion Research on the House of Councillors election this summer, 
50 PERCENT  said that they would vote for the Democratic Party of 
Japan (DPJ) if the election were held now. Those who picked the 
Liberal Democratic Party (LDP) accounted for only 21 PERCENT . Since 
the survey was conducted about one month ago, the survey does not 
necessarily reflect the current will of the public. The survey, 
however, showed that the voters were still placing high expectations 
on the DPJ, which won an overwhelming victory in the House of 
Representatives election last year. 
 
Regarding the desirable form of a new government, 32 PERCENT  opted 
for a DPJ single-party administration, while 28 PERCENT  each opted 
for a three-party coalition, as there is now, and a DPJ-LDP grand 
coalition. The survey thus showed that the voters were relatively 
cautious about a DPJ single-party administration. Asked about the 
campaign pledges the DPJ made in the last Lower House election (with 
multiple responses allowed), the survey demonstrated the 
unpopularity of the plan to waive express tolls, with 61 PERCENT 
disapproving of it. 
 
Asked about which policies should be carried out on a priority basis 
(with multiple responses allowed), 51 PERCENT  picked the total ban 
on agencies arranging post-retirement jobs for senior bureaucrats or 
making such arrangements multiple times for retired officials, and 
42 PERCENT  opted for the elimination of wasteful spending, for 
example, for public works projects, by the government. The public's 
severe view of bureaucrats and governance stood out in bold relief. 
 
In terms of interest in the Upper House election, a total of 82 
PERCENT  said they were greatly or somewhat interested in the 
election, while a total 17 PERCENT  replied they were not greatly 
interested or not interested at all in the election. 
 
Regarding the expected points at issue in the election, with 
multiple responses allowed, 68 PERCENT  chose "the economy, 
employment and social disparity"; 54 PERCENT  "pension, medical 
care, nursing care, and welfare"; 20 PERCENT  "tax and fiscal 
reforms"; and 14 PERCENT  "the framework of the government." 
 
17) Japan's population declines in 2009 for third consecutive year 
 
YOMIURI (Page 2) (Slightly abridged) 
January 1, 2010 
 
Japan's population dropped by 75,000 in 2009, recording the third 
consecutive annual decline, according to the Health, Labor and 
Welfare Ministry's annual population estimate. The population fell 
at the largest scale and at the fastest rate since the end of World 
War II. 
 
The pace of decrease accelerated in 2009 as the 1.144 million deaths 
(an increase of 20,000 over 2008) outpaced the 1.069 million births 
 
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(a decrease of 22,000). The population decline grew by 24,000 from 
that of the previous year. 
 
The population decreased in 2005 for the first time since the World 
War II. Although the population increased in 2006, it has fallen 
every year since 2007. 
 
The total fertility rate, the average number of children expected to 
be born to each woman during her lifetime, is estimated to be about 
the same as last year's figure of 1.37. The ministry expects the 
rate of population decline to increase in the future. 
 
ROOS