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RUCNDT/USMISSION USUN NEW YORK 8623

UNCLAS SECTION 01 OF 07 TOKYO 000035 
 
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 01/07/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Futenma relocation issue: 
4) Kitazawa says Futenma relocation site to be decided after 
conclusion of budget  (Asahi) 
5) Investigative panel looking into process leading to existing 
Futenma relocation plan  (Sankei) 
6) Foreign Ministry hints Japanese, U.S. foreign ministers to meet 
this month  (Sankei) 
 
Foreign relations: 
7) Summary of Yomiuri interview with Assistant Secretary Campbell 
(Yomiuri) 
 
Politics: 
8) Vice Prime Minister Kan to replace Fujii as Finance Minister 
(Nikkei) 
9) Ozawa agrees to undergo prosecutors' questioning about land deal 
(Asahi) 
 
Economy: 
10) Enterprise Turnaround Initiative Corp. considers financing up to 
300 billion yen for JAL reconstruction (Mainichi) 
11) American examining increasing size of its offer of financial 
assistance to JAL  (Sankei) 
12) Japanese whaling support ship, Sea Shepherd boat collide 
(Sankei) 
 
Media: 
13) "Time" to close its Tokyo bureau  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Deputy Prime Minister Kan picked as successor to Finance Minister 
Fujii; State Minister for Government Revitalization Sengoku to serve 
concurrently as national strategy minister 
 
Akahata: 
Blows to Hatoyama administration - prosecutors' request for 
questioning of Ozawa, resignation of Finance Minister Fujii just 
ahead of Diet deliberations on budgets 
 
2) EDITORIALS 
 
Asahi: 
(1) Hatoyama should make use of replacement of finance minister to 
rebuild administration 
(2) Government should address JAL problem as part of growth 
strategy 
 
Mainichi: 
(1) Kan's skills as finance minister to be tested 
(2) New growth strategy: It's time to proceed with real reforms 
 
Yomiuri: 
 
TOKYO 00000035  002 OF 007 
 
 
(1) Resignation of Finance Minister Fujii: Rebuild administrative 
structure under lead of Hatoyama 
(2) Many women should be vaccinated against cervical cancer 
 
Nikkei: 
(1) Thoroughgoing economic and fiscal management expected under new 
finance minister 
(2) Japan should take initiative in controlling marine resources 
 
Sankei: 
(1) Prosecutors responsible for clearing up details of land deal 
scandal by questioning Ozawa 
(2) How will government dispel blow from Fujii's resignation? 
 
Tokyo Shimbun: 
(1) Resignation of Fujii: Economic management, reforms must be 
carried out thoroughly 
(2) Foreign nurses: Measures needed to remove barrier of Japanese 
language 
 
Akahata: 
(1) Ozawa must respond to public inquiry over illegal political 
donations 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 6 
 
NIKKEI (Page 2) (Full) 
January 7, 2010 
 
09:58 Met National Strategy Minister Naoto Kan and Chief Cabinet 
Secretary Hirofumi Hirano at Prime Minister's Official Residence 
(Kantei) 
10:30 Met Defense Minister Toshimi Kitazawa 
11:16 Met former Deputy Foreign Minister Hitoshi Tanaka 
12:02 Met Kan; followed by meeting with assistants Katsuya Ogawa, 
Satoshi Arai, and Seiji Aizaka 
13:58 Met Foreign Minister Katsuya Okada 
17:05 Attended New Year's Party hosted by Jiji Press, Naigai Josei 
Chosakai, and others at Imperial Hotel 
17:35 Met Kan at Kantei; joined by Administrative Reform Minister 
Yoshito Sengoku 
19:27 Held another meeting with Kan and Sengoku 
20:11 Dined at French restaurant Girandole in Park Hyatt Tokyo with 
House of Councillors members Naoki Kazama, Minoru Kawasaki, and 
others 
22:52 Arrived at his official residential quarters 
 
4) Hatoyama, Kitazawa agree to resolve Futenma issue after passing 
FY2010 budget 
 
ASAHI (Page 4) (Full) 
January 7, 2010 
 
Defense Minister Toshimi Kitazawa held talks yesterday with Prime 
Minister Yukio Hatoyama on the issue of relocating the U.S. Marine 
Corps' Futenma Air Station (in Ginowan City, Okinawa) at the Prime 
Minister's Official Residence (Kantei). According to comments made 
by Kitazawa at a meeting in Nagano City, he and Hatoyama agreed on 
the idea that the Futenma relocation issue should be resolved soon 
after the passage of the state budget for fiscal 2010. 
 
TOKYO 00000035  003 OF 007 
 
 
 
Kitazawa said, "(Until the budget is passed) the three ruling 
parties will continue to hold discussions and reach a conclusion," 
indicating that the three ruling parties will look into possible 
relocation sites until the end of March when they expect to pass the 
budget, after which the Japanese government will formulate its own 
plan and negotiate with the United States. 
 
5) Study panel examines process that led to current Futenma 
relocation plan 
 
SANKEI (Page 5) (Full) 
January 7, 2010 
 
Yesterday the government and ruling parties held the second meeting 
of the Okinawa base issues study committee chaired by Chief Cabinet 
Secretary Hirofumi Hirano, which is tasked with discussing 
relocation sites for the U.S. Marine Corps' Futenma Air Station in 
Ginowan City, Okinawa Prefecture. Participants examined the process 
that led to the conclusion of an agreement between Japan and the 
U.S. to relocate the Futenma facility to the coastal area of U.S. 
Camp Schwab in Nago City. Social Democratic Party policymaking 
advisory board head Tomoko Abe, People's New Party Policy Research 
Council Chairman Mikio Shimoji, and others attended the meeting held 
at the Prime Minister's Official Residence and were briefed on the 
Japan-U.S. agreement by officials from the Defense Ministry and the 
Foreign Ministry. 
 
Defense Minister Toshimi Kitazawa met Prime Minister Yukio Hatoyama 
and U.S. Ambassador John Roos separately to exchange views on the 
Futenma relocation issue. 
 
6) Japanese, U.S. foreign ministerial to take place possibly in 
mid-January 
 
SANKEI (Page 5) (Full) 
January 7, 2010 
 
Rui Sasaki, Washington 
 
Foreign Minister Katsuya Okada and Secretary of State Hillary 
Clinton are likely to hold talks in mid-January. After meeting with 
Deputy Secretary of State James Steinberg on Jan. 5, Administrative 
Vice Foreign Minister Mitoji Yabunaka, who is currently visiting the 
U.S., told reporters that arrangements for Okada's visit to the U.S. 
"are now in the final stages." 
 
Yabunaka agreed with Steinberg that the Japan-U.S. alliance is 
imperative for the peace and stability of East Asia. He then told 
his counterpart that the government has set up a consultation body 
to discuss with the Social Democratic Party and the People's New 
Party the relocation of the U.S. Marine Corps' Futenma Air Station 
in Ginowan City, Okinawa Prefecture. Prime Minister Yukio Hatoyama 
has said that the government will come up with a conclusion by May. 
Yabunaka later told reporters that the U.S. side "was listening" (to 
his explanation). He also met with Under Secretary of Defense 
Michele Flournoy on the 4th and briefed her on the Japanese 
government's position. 
 
7) Gist of U.S. Assistant Secretary of State Kurt Campbell's 
interview on bilateral, other issues 
 
 
TOKYO 00000035  004 OF 007 
 
 
YOMIURI (Page 4) (Full) 
January 7, 2010 
 
Following is the gist of (Yomiuri Shimbun's exclusive) interview 
with U.S. Assistant Secretary of State Kurt Campbell (at the 
Department of State on Jan. 5): 
 
Deepening of Japan-U.S. alliance 
 
Japan and the United States are in a position to address issues 
beyond the Asia-Pacific region and issues across national boundaries 
as they deal with issues such as North Korea and the maintenance of 
peace and stability in the Taiwan Strait. Based on what they have 
achieved so far, how they will deal with the dramatic changes in the 
world will be reflected (in the talks on deepening the alliance). 
There are many aspects to the Japan-U.S. relationship. We cannot put 
off those aspects. The talks (on deepening the alliance) will begin. 
We hope for tangible results. 
 
Omoiyari yosan (sympathy budget; i.e. host nation support) 
 
The new administration in Japan wants to discuss issues relating to 
the sympathy budget and the Japan-U.S. Status of Forces Agreement 
with the U.S. We will discuss all issues in depth and thoroughly. 
 
Futenma relocation 
 
The U.S. is asking for a prompt decision on the implementation of 
the bilateral agreement. I understand that Japan has said that it 
needs more time. I am confident that the Prime Minister and his team 
will uphold the spirit of "responsibility and trust" for the sake of 
the Japan-U.S. relationship. We interpret (the Prime Minister's 
words "trust me") to mean that he will strengthen and maintain this 
relationship, including the right solution to the Futenma issue. It 
is important for this to be handled as a package (with measures to 
reduce the burden). Needless to say, we are ready to study and 
consider a degree of burden reduction. 
 
Summoning of ambassador 
 
We indeed summoned the ambassador. Secretary Clinton rarely meets an 
ambassador. However, she summoned the ambassador to directly convey 
U.S. thinking on the Futenma issue. 
 
Marines' relocation to Guam 
 
Unless there is progress in the Futenma process, we have no 
intention to proceed further with Guam relocation or the other 
projects. 
 
North Korea 
 
(North Korea) brought up the subject of lifting the sanctions at the 
U.S.-DPRK talks. The U.S. pointed out very clearly that the next 
step should be the resumption of the Six-Party Talks. We are waiting 
for North Korea's response. Frankly speaking, we think that the 
dialogue is still at a preliminary stage and North Korea's basic 
attitude is unclear. I believe that the Six-Party Talks have the 
support of all parties, including China, and they can be resumed. I 
don't know when that will be, but probably soon. Once the talks 
reopen, the discussions will be broad ranging at the beginning. Not 
only Yongbyon or the issue of verification, but other political 
 
TOKYO 00000035  005 OF 007 
 
 
issues (such as uranium enrichment) and the abduction issue will 
also be discussed. 
 
8) Deputy Prime Minister Kan to replace Fujii as finance minister: 
Sengoku to serve concurrently as state minister for national policy 
 
NIKKEI (Top play) (Excerpts) 
January 7, 2010 
 
Prime Minister Yukio Hatoyama on Jan. 6 decided to accept Finance 
Minister Hirohisa Fujii's resignation and appoint Deputy Prime 
Minister and State Minister for National Policy Naoto Kan as his 
successor. Fujii had conveyed to the prime minister his intention to 
step down from the post due to poor health. State Minister for 
Government Revitalization Yoshito Sengoku will serve concurrently as 
state minister for national policy. A letter of appointment to 
assign him to the position will be issued on the afternoon of the 
7th. A situation in which protracted disarray will undermine the 
prime minister's power basis has thus been prevented. However, 
Fujii's resignation will inevitably affect deliberations on the 
fiscal 2010 budget during the regular Diet session to be convened on 
the 18th. 
 
Fujii is the first cabinet minister to step down since the Hatoyama 
cabinet was launched last September. Kan will continue to be in 
charge of economic and fiscal policy. Education, Culture, Sports, 
Science and Technology Minister Tatsuo Kawabata will be responsible 
for science and technology policy. 
 
On the evening of the 6th, Kan told the press corps, "I am still a 
novice. However, I told (the prime minister) that I will do my 
utmost." Concerning his serving concurrently as deputy prime 
minister and state minister for economic and fiscal policy, he said, 
"I thought it would be all right from the perspective of mapping out 
a broader path toward Japan's revitalization." 
 
9) Land transaction issue: Ozawa to accept questioning by public 
prosecutors 
 
ASAHI (Page 1) (Excerpts) 
January 7, 2020 
 
The Tokyo District Public Prosecutors Office special investigation 
squad has asked Democratic Party of Japan Secretary General Ichiro 
Ozawa through his attorney to accept a voluntary interview on the 
issue that approximately 400 million yen in the funds used for the 
purchase of land in 2004 by Rikuzan-kai, Ozawa's fund management 
organization, were not listed in its political fund report. 
Responding to a question by the Asahi Shimbun, a close aide to Ozawa 
on the evening of the 6th said that Secretary General Ozawa had 
decided to accept voluntary questioning by public prosecutors in 
response to a request made by the Tokyo Public Prosecutors Office. 
 
There is now a strong possibility of public prosecutors questioning 
him one of these says. How Ozawa will explain the matter is of 
intense interest. 
 
According to a related source, the special investigation squad on 
the 5th asked his attorney to tell Ozawa to accede to questioning 
within a week or so. The attorney did not turn down the request but 
stopped short of giving an immediate reply. 
 
 
TOKYO 00000035  006 OF 007 
 
 
Ozawa is not subject to criminal accusation. However, the special 
investigation squad has determined that since the land transaction 
took place at his behest and the money (approximately 400 million 
yen) used for the purchase is believed to have come from him, they 
should ask him to give an account of the matter. 
 
10) Enterprise Turnaround Initiative Corp. considers financing up to 
300 billion yen for JAL reconstruction 
 
MAINICHI (Page 3) (Excerpts) 
January 7, 2010 
 
It has been learned that the Enterprise Turnaround Initiative Corp. 
(ETIC), which has been asked financial assistance from Japan 
Airlines (JAL), is considering financing 200 to 300 billion yen to 
JAL. Since public funds will be used for the financial assistance, 
the ETIC intends to clarify the responsibility of JAL's executive, 
premised on legal liquidation and a large-scale capital reduction. 
Before the end of January it will make a formal decision to begin a 
full-fledged reconstruction work. 
 
The ETIC has looked into the appointment of a successor (CEO) to JAL 
President Nishimatsu, who has tendered his resignation, from outside 
the company. 
 
11) American Airlines looking into boosting financial assistance for 
JAL 
 
SANKEI (Page 11) (Excerpt) 
January 7, 2010 
 
During talks on continuing its alliance with Japan Airlines, which 
is in the process of corporate reconstruction, American Airlines 
proposed up to 1.1 billion dollars in financial assistance. In this 
connection, it was learned on Jan. 6 that the carrier is looking 
into increasing its offer. Calls pushing for an alliance with Delta 
Air Lines, which has a large share in the Pacific routes between 
Japan and the U.S., are gaining ground among government officials. 
American Airlines intends to stage a comeback in the battle to 
secure a partnership with JAL by submitting a new assistance 
proposal as early as this month. 
 
12) Japanese whaling fleet support vessel, Sea Shepherd boat 
collide 
 
SANKEI (Page 1) (Excerpts) 
January 7, 2010 
 
The Fisheries Agency announced yesterday that the Shonan Maru No. 2, 
a Japanese whaling fleet support ship, and the protest boat Ady Gil, 
operated by the U.S.'s Sea Shepherd anti-whaling group, collided in 
the Antarctic Ocean. The Ady Gil and another Sea Shepherd boat, the 
Bob Barker, had been disrupting the Shonan Maru's operations since 
early in the morning of Jan. 6, and the collision occurred during 
that time, according to the agency. The Shonan Maru was not 
seriously damaged and its crew members were not injured in the 
incident. Although the bow of the Ady Gil was seriously damaged, its 
crew was rescued by the Bob Barker. 
 
According to the agency, the Ady Gil came unusually close to the 
Shonan Maru at around 12:30 a.m. on Jan. 6. The anti-whaling boat 
started to cut cross the Shonan Maru's bow from right to left and 
 
TOKYO 00000035  007 OF 007 
 
 
then reduced speed. The Shonan Maru failed to avoid the collision. 
The Shonan Maru tried to ward off the Ady Gil by spraying water and 
using bullhorns. The Sea Shepherd side, however, has claimed that 
the Ady Gil was not under way when the Shonan Maru suddenly collided 
with it and that the Japanese side did not even rescue its crew. 
 
13) Increasing number of U.S. magazines leaving Japan; Time closing 
Tokyo bureau on January 8 
 
ASAHI (Page 10) (Full) 
January 7, 2010 
 
Daisuke Igarashi 
 
Due to a decline in advertising revenues, more and more major U.S. 
magazines are leaving Japan. Major U.S. general interest magazine 
Time is closing its Tokyo bureau on Jan. 8 as part of its 
restructuring efforts both inside and outside the U.S. 
 
According to an informed source, the Tokyo bureau was set up in 
1945, shortly after the end of World War II. Its office is currently 
located in Roppongi Hills. The editorial section of the Tokyo bureau 
will be closed and its one regular correspondent and one editor will 
be laid off. Time's public affairs officer said, "We will hire 
part-time reporters and experts on Japan, so reporting on Japan will 
continue as usual." The marketing and advertising sections in Japan 
will be retained. 
 
Another major U.S. magazine Newsweek also closed its Tokyo bureau 
last spring. Last December, after the economic magazine BusinessWeek 
was acquired by the major U.S. financial news company Bloomberg, its 
editorial section was merged with Bloomberg. 
 
Commenting on the recent wave of U.S. magazines pulling out of 
Japan, Gakushuin Women's College Professor (of media studies) 
Yasuharu Ishizawa, a former reporter for The Washington Post, said: 
"Three factors are behind this: poor business results of the U.S. 
print media, the decline in Japan's news value, and the rise of 
China. The decrease in reporters with experience working in Japan 
who have a profound understanding of Japan is a loss for Japan." 
 
ROOS