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P 060305Z JAN 10
FM AMEMBASSY TOKYO
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
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RUEAWJA/USDOJ WASHDC PRIORITY
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RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0517
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RUEHOK/AMCONSUL OSAKA KOBE 1986
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RUEHBJ/AMEMBASSY BEIJING 2517
RUEHUL/AMEMBASSY SEOUL 9182
RUCNDT/USMISSION USUN NEW YORK 8607

UNCLAS SECTION 01 OF 07 TOKYO 000021 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 01/05/10 
 
INDEX: 
(1) DM Kitazawa announces creation of special Futenma relocation 
team (Sankei) 
 
(2) People's New Party to submit two proposals on Futenma's 
relocation site (Yomiuri) 
 
(3) Ginowan City's long-cherished dream of Futenma's relocation to 
Guam (Okinawa Times) 
 
(4) Japan-U.S. free trade agreement (Yomiuri) 
 
(5) April-May to become crucial stage for Hatoyama administration's 
diplomacy; Gap between views of U.S. and ruling coalition on 
deadline for Futenma conclusion (Nikkei) 
 
(6) Hatoyama seen as a prime minister who has not experienced 
hardships (Nikkei) 
 
ARTICLES: 
 
(1) DM Kitazawa announces creation of special Futenma relocation 
team 
 
SANKEI ONLINE (Full) 
13:30, January 5, 2010 
 
At a news conference on the morning of Jan. 5, Defense Minister 
Toshimi Kitazawa announced the creation of a special team on the 
issue of the relocation of the U.S. forces' Futenma Air Station (in 
Ginowan City, Okinawa) reporting directly to the top political 
appointees in the Ministry of Defense (MOD). The team will be 
launched within this month. 
 
This is because of the need to engage in smooth coordination with 
Okinawa and the U.S. Department of Defense, as the Democratic Party 
of Japan, the Social Democratic Party, and the People's New Party 
are expected to submit this month their proposals for Futenma's 
relocation site to the committee of the government and the ruling 
parties for examining base issues in Okinawa. The special team will 
consist of five to six MOD bureaucrats not only from the Defense 
Policy Bureau, which has so far taken charge of issues relating to 
U.S. Forces Japan realignment, but also from the Bureau of Local 
Cooperation and other offices. 
 
(2) People's New Party to submit two proposals on Futenma's 
relocation site 
 
YOMIURI (Page 2) (Full) 
Evening, January 5, 2010 
 
In connection with the relocation of the U.S. forces' Futenma Air 
Station in Okinawa, People's New Party (PNP) policy chief Mikio 
Shimoji indicated at a meeting with his support group in Naha on the 
morning of Jan. 5 that the PNP will submit two proposals to the 
committee of the government and the ruling parties for the 
examination of Okinawa's base issues, namely: (1) integration of the 
Futenma base with Kadena Air Base (straddling the towns of Kadena 
and Chatan and Okinawa City) and dispersing the training exercises 
to Kansai Airport, the Ie Island auxiliary airfield (in Ie Village, 
Okinawa), and other locations; and (2) relocation out of Okinawa. 
 
 
TOKYO 00000021  002 OF 007 
 
 
The ruling parties have decided to submit their proposals for 
relocation sites to the committee by the end of January. Shimoji 
mentioned relocation to the Shimoji Island airport (in Miyakojima 
City, Okinawa) in late 2009 but withdrew this proposal in the belief 
that "this will not be acceptable to the U.S," according to a senior 
PNP official. At the Jan. 5 meeting, Shimoji said that "the PNP will 
not pick Shimoji Island." 
 
(3) Ginowan City's long-cherished dream of Futenma's relocation to 
Guam 
 
OKINAWA TIMES (Page 1) (Full) 
January 5, 2010 
 
Kenya Fukusato, Reporting Team on 50 Years of the Security Treaty 
 
The official residence of the U.S. consul general in Okinawa is 
located on a hill, overlooking the runway of the Futenma Air 
Station, which a senior U.S. official once termed "the most 
dangerous military base in the world," illuminated by red and green 
lights in the complete darkness. 
 
On Nov. 30, U.S. Ambassador to Japan John Roos hosted a dinner for 
the leaders of the municipalities hosting U.S. bases. 
 
Holding a wine glass in one hand, Ambassador Roos listened almost 
silently to Ginowan City Mayor Yoichi Iha, who said: "This is an 
illegal military base even under U.S. domestic laws." 
 
The return of the Futenma base has been left hanging for 13 years on 
account of the "bottleneck" of relocating this facility within 
Okinawa. Iha advocated the relocation of the U.S. Marines to Guam 
and argued that a replacement facility should not be built in the 
coastal area of Camp Schwab. 
 
After dinner, the group moved to the living room to sit on the sofa. 
Just as Ambassador Roos was going to say something, the conversation 
was interrupted by the noise of a helicopter. He smiled wryly and 
said: "The current relocation plan is a feasible option." 
 
Iha was elected to his first term in 2003 with a pledge to "disperse 
and relocate Futenma's functions." He opposes the passing around of 
bases within Okinawa, and his long-cherished dream is the withdrawal 
of U.S. Marines from Okinawa through Futenma's relocation. 
 
Iha came to have great confidence in his longstanding proposal for 
Futenma's relocation out of Japan in light of the U.S. forces' 
policy after the realignment of U.S. Forces Japan. 
 
The 2006 Guam Integrated Military Development Plan includes the 
construction of aprons to accommodate 67 Marine helicopters. The 
capacity of the new facility will be comparable to Futenma. 
 
Iha visited Guam in 2007. The deputy commander of the Air Force base 
explained that "the plan is to construct a facility to accommodate 
65-70 Marine aircraft." 
 
The draft proposal for environmental impact assessment relating to 
Guam relocation published in November 2009 states that in addition 
to the Marine command headquarters, the helicopter units will also 
be relocated from Okinawa. 
 
 
TOKYO 00000021  003 OF 007 
 
 
In late 2009, Prime Minister Yukio Hatoyama announced his intention 
to reconsider relocation sites for the Futenma base, including 
locations outside of Okinawa or Japan. 
 
Iha even felt relieved that "(the current relocation plan) has 
effectively been negated." 
 
On the other hand, the focus of this issue tends to be on the 
relocation site, and nothing has been done about the danger posed by 
the Futenma base, which directly affects citizens' lives. Iha is 
hopeful that the new administration will "attach greater importance 
to the danger than the previous administration." However, the 
government's policy is not to rule out the current relocation plan 
as an option, and it remains unclear how it intends to remove the 
danger until a relocation site is identified and the base is 
returned. 
 
(4) Japan-U.S. free trade agreement 
 
YOMIURI (Page 13) (Excerpts) 
January 5, 2010 
 
By Noboru Hatakeyama 
 
The Democratic Party of Japan (DPJ) in its policy manifesto for the 
Lower House election pledged to promote talks on a free trade 
agreement (FTA) with the U.S. There is a story behind this policy of 
the DPJ: The party had at first intended to aim at concluding the 
pact. However, it later reportedly backpedalled on the wording due 
to opposition from agricultural organizations. However, the DPJ had 
kept its pledge to promote FTA talks with the U.S. in place, even 
though it has backpedalled on its wording. This means that the DPJ 
has made up its mind firmly, which deserves high marks. 
 
However, it is strange that when President Obama visited Japan in 
November last year, the Japanese side did not make any proposal on a 
Japan-U.S. FTA. The government presumably thought that it would be 
safer not to bring up this issue, as agricultural organizations are 
strongly opposed to the idea. Then, what will become of the DPJ's 
policy slogan to implement the manifesto to the maximum extent 
possible? 
 
The greatest obstacle to a Japan-U.S. FTA is negotiations on 
agricultural products. Even so, it is not possible to draft an FTA 
that only excludes agricultural and livestock products because that 
would be in breach of the World Trade Organization's FTA 
regulations. FTAs on trade in goods, such as agricultural products 
and automobiles, must basically target all trade items between the 
two countries. 
 
To be specific, the regulations are interpreted as indicating that 
more than 90 percent of the value of imports should be subject to 
the accord. Conversely, it is possible to interpret that up to 10 
percent of imports from the FTA partner can be exempted from an FTA. 
However, since food items Japan imports from the U.S. already exceed 
20 percent, it would be very difficult to include items exempted 
from the accord within 10 percent. 
 
A sound argument would be for Japan to boost its international 
competitiveness by seriously addressing agricultural reform and 
forging an FTA with the U.S. that covers agricultural and livestock 
products as well. The DPJ's manifesto states that it will implement 
 
TOKYO 00000021  004 OF 007 
 
 
a system of compensating farmers who sell their products based on 
the balance between the sales prices of agricultural and livestock 
products and the cost of producing them. The WTO under certain 
circumstances allows the direct compensation of famers with the aim 
of making up for a decrease in their incomes as a result of a drop 
in domestic sales prices due to a reduction in trade tariffs on 
agricultural and livestock products. It would be logical for the 
government to squarely address agricultural reform using this system 
and then move on to entering into an FTA with the U.S. 
 
However, this will take a considerable amount of time. The writer, 
therefore, would like to propose that Japan and the U.S. sign an FTA 
for trade in services for the time being. As readers know, there are 
two kinds of trade - trade in goods and trade in services. 
Representative examples of trade in goods include agricultural 
products and automobiles. Examples of trade in services include 
distribution and financial services. The WTO has separate 
regulations for trade in goods and trade in services. Therefore, it 
would be possible to sign an FTA for trade in services alone in 
terms of concluding a pact, although there are no precedents. 
 
First, if this proposal is materialized, Japan would not have to 
lower its tariffs on agricultural products. The U.S. would not have 
to expose its manufacturing industry, which is in a fix, to even 
fiercer competition. Second, the U.S.'s distribution and financial 
services sectors could enjoy a more liberalized Japanese market. 
Japan's services industry would become stronger through competition 
against the U.S. Third, if Japan and the U.S. sign an FTA, ties 
between the two countries would become stronger, even if the accord 
covers trade in services alone. 
 
This year marks the 50th anniversary of the revision of the 
Japan-U.S. Security Treaty. Japan-U.S. relations are being buffeted 
over the issue of relocating the Marine Corps' Futenma airfield. In 
this memorable year, both nations should not only settle their 
pending issues expeditiously, but also launch FTA talks for trade in 
services and use it as a basis for strengthening bilateral ties. 
 
Noboru Hatakeyama: Chairman of the Japan Economic Foundation. Former 
vice minister of international trade and industry (now the Ministry 
of Economy, Trade and Industry). Former executive director of the 
Japan External Trade Organization. 
 
(5) April-May to become crucial stage for Hatoyama administration's 
diplomacy; Gap between views of U.S. and ruling coalition on 
deadline for Futenma conclusion 
 
NIKKEI (Page 2) (Full) 
January 5, 2010 
 
The Hatoyama administration's diplomacy will reach a crucial stage 
in April and May, when the government aims to reach a conclusion the 
issue of relocating the U.S. Marine Corps' Futenma Air Station in 
Okinawa Prefecture. Although Prime Minister Yukio Hatoyama expects 
to inform U.S. President Barack Obama of his decision on the Futenma 
relocation issue after looking into a new replacement site, there is 
still a wide gap between the views of the people of Okinawa and the 
Social Democratic Party (SDP), and Washington. If a rift emerges in 
the Japan-U.S. relationship, it could affect pending diplomatic 
issues such as the North Korean problem. 
 
Late last year the government and ruling parties began looking into 
 
TOKYO 00000021  005 OF 007 
 
 
relocation sites other than the coastal area of Camp Schwab, which 
is the site for the existing plan. Hatoyama's intention to resolve 
the issue in May implies that he is giving consideration to the 
Japan-U.S. agreement as well. "The Prime Minister aims to visit 
Washington bringing an agreement of the ruling parties before or 
after the consecutive holidays (in early May) and settle the issue 
at a meeting with the President" said a senior Foreign Ministry 
official. 
 
In the ruling coalition, the SDP has strongly called for moving the 
Futenma base out of Okinawa or out of Japan. Since it has sought to 
constrain the DPJ by brandishing the threat of leaving the coalition 
if the Futenma base is relocated within Okinawa, the government has 
been put in an extremely difficult situation as it tries to reach an 
agreement with Washington, which insists that the existing plan is 
the best and only viable option. 
 
This year marks the 50th anniversary of the revision of the 
U.S.-Japan Security Treaty. Foreign Minister Katsuya Okada is 
determined to make the Japan-U.S. alliance deeper and more 
sustainable, but some officials in the U.S. government are 
distrustful of the Hatoyama administration's security policy. As a 
result, Okada may be unable to start discussions with Washington 
before the Futenma issue is resolved. 
 
The United States will hold the first security summit in Washington 
on April 12 and 13. The leaders of nuclear powers and other 
countries will attend the security summit to discuss setting up a 
system to protect nuclear materials from entering the hands of 
terrorists and other organizations. Japan also plans to embark on 
new efforts toward creating a world without nuclear weapons. 
 
In late June, the Group of Eight (G-8) summit will be held in 
Canada. Japan will be sending a different prime minister to the G-8 
summit for the fourth time in a row since the G-8 summit in 2007, in 
which then Prime Minister Shinzo Abe participated. There will also 
be two G-20 summits in June and November, which will serve as an 
initial test for DPJ diplomacy. 
 
The major international conferences to be held in Japan are the 10th 
session of the Conference of the Parties of the UN Framework 
Convention on Climate Change (COP10) and the Asia-Pacific Economic 
Cooperation (APEC) conference. The leaders of the APEC members will 
assemble in Yokohama on Nov. 13 and 14. 
 
Major diplomatic schedules for 2010 
 
Jan. 2-5 Foreign Minister Okada visits Turkey 
Jan. 16-17 Asia-Latin America Cooperation Forum's foreign 
ministerial meeting 
Jan. 24 Nago mayoral election (Okinawa) 
Jan. 27-31 Davos Conference 
Jan. 28 International conference on Afghanistan (London) 
February (?) Foreign Ministry's expert committee issues a final 
report on the secret nuclear agreement 
April 12-13 Nuclear security summit (Washington) 
May 3-28 NPT review conference (New York) 
(?) Government, ruling parties make a decision on the Futenma 
relocation issue 
Consecutive holidays Prime Minister Yukio Hatoyama visits 
Washington? 
June 25-27 G-8 summit (Muskoka, Canada) 
 
TOKYO 00000021  006 OF 007 
 
 
June 26-27 G-20 summit (Toronto, Canada) 
July Upper House election 
Oct. 4-5 ASEM summit (Brussels) 
Oct. 18-29 COP 10 (Nagoya, Japan) 
November G-20 summit (South Korea) 
Nov. 13-14 APEC summit (Yokohama, Japan) 
 
(6) Hatoyama seen as a prime minister who has not experienced 
hardships 
 
NIKKEI (Page 2) (Slightly abridged) 
January 1, 2010 
 
Prime Minister Yukio Hatoyama, who boasts of achieving a change of 
administration and the "first revolution since the Meiji 
Restoration," will be facing a new phase in the management of the 
administration in the New Year. We will take a look at the present 
state of the Hatoyama administration, which won overwhelming support 
from the voters by giving full publicity to its manifesto (campaign 
pledges), which it calls its "promise to the people." 
 
In late 2009, Hatoyama murmured to his aides, "I would like to 
appear on TV with Miyuki." His wife Miyuki was invited to appear on 
a popular variety show for the New Year and he wanted to appear with 
her as a couple. 
 
Premiership backed by popular will 
 
Hatoyama's aides frowned. If he appeared on that program, it would 
have been just a week or so after he offered his explanation on the 
falsified reports of his political funds. They told him gently: "We 
are sorry, but this is not the right timing." Hatoyama accepted the 
advice but this was an instance in which the difference between his 
perception and that of his aides was apparent. 
 
When he was in the opposition camp, Hatoyama criticized the prime 
ministers of the Liberal Democratic Party (LDP) administration for 
"not obtaining a mandate through an election but (assuming the 
premiership) through a rotation of power." As a matter of fact, the 
Democratic Party of Japan (DPJ), under his leadership, won popular 
support and captured 300 seats in the House of Representatives 
election last summer. He ascended to the position of prime minister 
with great confidence and everything appeared to be going well. 
 
Hatoyama once cited "strong leadership and a sincere sense of 
responsibility" as the requirements for an "ideal prime minister." A 
hundred days after he assumed office, the support rating for his 
cabinet dropped by 25 percentage points in the Nihon Keizai 
Shimbun's latest opinion poll, the main reason being his "lack of 
leadership." Over 70 percent of the respondents thought his 
explanation on the falsified political donations was 
"unsatisfactory." 
 
Before the administration was launched, then DPJ Secretary General 
Katsuya Okada suggested to Hatoyama that "the abolition of the 
provisional tax rate for gasoline and other products can come in the 
second year of the administration," but Hatoyama insisted, saying: 
"This is considered a fait accompli by the people." He ordered the 
inclusion of this item in the party's manifesto. 
 
When the time came for the formulation of the budget under his 
administration and he faced a dilemma between realizing the election 
 
TOKYO 00000021  007 OF 007 
 
 
pledges and securing the revenue to fund these policies, he made a 
sudden about-face, accepted the party's demand, and decided to 
maintain the gasoline tax rate. Regardless of the merit of this 
decision, it left a strong impression of Hatoyama relying on the 
leadership of Secretary General Ichiro Ozawa both domestically and 
internationally. It remains unclear what he wants to accomplish as a 
prime minister and what his policy vision is. 
 
Habit of telling others to "discuss" things 
 
Hatoyama reportedly has the habit of saying to others: "I want all 
of you to discuss this thoroughly." While there is a structural 
problem in the cabinet in which no one has taken on the role of 
coordinator for Hatoyama, there is no denying that his attitude, 
which can be interpreted as "do what you think is best," has been a 
source of disarray in the cabinet. Hatoyama is neither the 
authoritative type of prime minister like Junchiro Koizumi nor the 
coordinator type like Keizo Obuchi. Many people think he was 
probably unprepared to become the prime minister. 
 
In the Lower House election of 2000, DPJ President Hatoyama kicked 
off the election campaign on the day of the official filing of 
candidacy in Shimane, the home constituency of former Prime Minister 
Noboru Takeshita. He paid no attention to his past relations with 
Takeshita, who "campaigned for Hatoyama everywhere in Hokkaido when 
he was running for a Diet seat for the first time." (according to a 
former secretary of a Takeshita faction Diet member) Such is one 
aspect of Hatoyama, which is considered "valiant" by some, but 
"ruthless" by others. 
 
Hatoyama has no enemies in his party. The "Hatoyama brand" also 
serves him well in the political world. On the other hand, this also 
contains elements of "imprudence" and "insensitivity," which may 
become fatal at times. His qualifications as a prime minister are 
now being called into question over the falsified political 
donations, for which his former secretary has been indicted for 
violating the Political Fund Control Law. 
 
Donation issue deals heavy blow 
 
It is said that a prime minister must possess the sense of balance 
needed to allocate a national budget of nearly 100 trillion yen 
along with the common folk's sensibility of worrying about the 
prices of vegetables. This is one reason why Hatoyama's 
"personality" still enjoys the support of 50 percent of the people. 
However, his failure to declare funds amounting to 1.2 billion yen 
provided by his mother and pay gift tax for this has disappointed 
his supporters. Who could have predicted that Chief Cabinet 
Secretary Hirofumi Hirano would one day have to dismiss talk of 
Hatoyama's resignation at a news conference by saying: "I do not 
think (the prime minister will resign)"? 
 
A politician who left the LDP together with Hatoyama in 1993 and who 
was one of the key founders of New Party Sakigake offers the 
following analysis of Hatoyama's character: "He does not have the 
experience of making a major mistake or having to endure tremendous 
hardships, so he seems sort of carefree and behaves artlessly in 
certain ways." 
 
ROOS