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RUCNDT/USMISSION USUN NEW YORK 8641

UNCLAS SECTION 01 OF 07 TOKYO 000043 
 
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 01/08/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
Defense & security: 
4) Prime Minister Hatoyama: Futenma conclusion might be reached 
before May (Nikkei) 
5) U.S. Army staff sergeant, suspect in hit-and-run incident in 
Okinawa, handed over to Japanese police (Tokyo Shimbun) 
6) Okinawa governor seeks SOFA revision in connection with 
indictment of U.S. Army soldier in hit-and-run incident (Tokyo 
Shimbun) 
 
Foreign relations: 
7) Hirano says PM will not visit Nanjing (Sankei) 
8) Japanese, U.S. foreign ministers to meet in Hawaii on Jan. 12 
(Sankei) 
9) Japan protests to New Zealand Govt. over collision involving 
whaling patrol ship (Sankei) 
10) Ozawa focus of attention in U.S. (Sankei) 
 
Politics: 
11) 14 prefectural assemblies opposed to enfranchising permanent 
foreign residents (Asahi) 
12) Nakasone advises Tanigaki that ties between politics and money 
are a powerful weapon (Yomiuri) 
 
Economy: 
13) Finance Minister Kan urges lower yen (Tokyo Shimbun) 
14) Govt. to decide legal liquidation of JAL (Yomiuri) 
15) Delta prepared to provide aid for legal liquidation of JAL 
(Nikkei) 
 
Environment: 
16) Government presents draft report on common global target to 
increase biodiversity by 2050 (Yomiuri) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
14 prefectural assemblies opposed to local suffrage for permanent 
foreign residents 
 
Mainichi: 
DPJ gave 2.2 billion yen to two lawmakers in charge of accounting 
under Ozawa's leadership 
 
Yomiuri: 
Government to adopt legal liquidation plan for JAL 
 
Nikkei: 
Chipmakers earn profits owing to recovering demand 
 
Sankei & Tokyo Shimbun 
Finance Minister Kan calls for weaker yen, unusual intervention 
boosts sales 
 
Akahata: 
 
TOKYO 00000043  002 OF 007 
 
 
Government reflects on Services and Supports for Persons with 
Disabilities Law 
 
2) EDITORIALS 
 
Asahi: 
(1) Finance Minister Kan should exert leadership for fiscal 
reconstruction 
(2) Human rights in China: People must not be victimized by economic 
growth 
 
Mainichi: 
(1) Ozawa should give explanation about land transactions 
(2) JAL reconstruction must be premised on public understanding 
 
Yomiuri: 
(1) Ozawa should clarify truth on land deal scandal 
(2) Help needed for foreign nurses to overcome kanji hurdle 
 
Nikkei: 
(1) Banks urged to increase capital and make structural reforms 
(2) Ozawa should give explanation to public on land deal scandal 
 
Sankei: 
(1) Strict measures needed to prevent illegal acts of obstruction to 
research whaling 
(2) Security situation in Yemen: Face up to reality of terrorism 
 
Tokyo Shimbun: 
(1) Society should offer child-rearing support 
 
Akahata: 
(1) U.S. response to al-Qaeda: Review military retaliation strategy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 7 
 
NIKKEI (Page 2) (Full) 
January 8, 2010 
 
10:45 Met House of Representatives member Koichiro Ichimura at the 
Prime Minister's Official Residence (Kantei) 
11:06 Met incoming and outgoing Supreme Court justices Masahiko 
Sudo, Tatsuo Kainaka, and others 
13:01 Presented letters of appointment to Finance Minister Naoto 
Kan, National Strategy Minister Yoshito Sengoku, and State Minister 
for Science & Technology Tatsuo Kawabata; Chief Cabinet Secretary 
Hirofumi Hirano also present 
14:00 Met Cabinet Intelligence Director Hideshi Mitani; followed by 
Deputy Chief Cabinet Secretary Kinya Takino 
15:00 Met Nippon Keidanren Honorary Chairman Jiro Nemoto 
16:13 Met State Minister for Declining Birthrate Mizuho Fukushima; 
followed by former Deputy Foreign Minister Hitoshi Tanaka 
18:10 Met Editorial Engineering Laboratory President Seigo Matsuoka 
and Deputy Chief Cabinet Secretary Koji Matsui at official 
residential quarters 
20:11 Dined with secretaries and others at Chinese restaurant in 
Nagata-cho Tameikesanno Heichinrou 
21:31 Talked to astronaut Soichi Noguchi, currently staying at 
International Space Station, from the Kantei 
22:03 Arrived at his official residential quarters 
 
TOKYO 00000043  003 OF 007 
 
 
 
4) Prime Minister Hatoyama: Futenma conclusion might be reached 
before May 
 
NIKKEI (Page 2) (Full) 
January 8, 2010 
 
Prime Minister Yukio Hatoyama yesterday commented on the issue of 
relocating the U.S. Marine Corps' Futenma Air Station, "It would be 
desirable for the issue to be resolved as quickly as possible. We 
are making efforts to that end, and a study committee with members 
from the government and ruling parties has been launched. It is now 
moving forward at a fast pace," indicating the possibility that his 
government will reach a conclusion before May, which has been set as 
the deadline. 
 
5) U.S. Army staff sergeant, suspect in hit-and-run incident in 
Okinawa, handed over to Japanese police 
 
TOKYO SHIMBUN (Page 27) (Abridged) 
January 8, 2010 
 
In connection with the fatal hit-and-run incident in Yomitan 
Village, Okinawa, U.S. Army staff sergeant Clyde Gunn, 27, from the 
Torii Communication Station (in Yomitan), who on Jan. 7 was indicted 
by the Naha District Prosecutors Office for negligent driving 
resulting in death, was handed over to the Japanese authorities in 
accordance with the Japan-U.S. Status of Forces Agreement on the 
same day. 
 
The indictment was processed at unusual speed, taking only three 
days after papers on Gunn were sent to the prosecutors office. With 
Gunn handed over to the Japanese side, the Okinawa Prefectural 
Police will also proceed with investigations to arrest him on the 
charge of violating the Road Traffic Law (hit-and-run). 
 
According to his lawyer, Gunn said: "The windshield of my car 
suddenly broke when I was driving. I got out of the car to check but 
there was nothing. I did not think that I hit somebody. If I really 
hit the man, I would like to apologize to the bereaved family." 
 
6) Okinawa governor seeks SOFA review in connection with indictment 
of U.S. Army soldier in hit-and-run incident 
 
TOKYO SHIMBUN (Page 27) (Full) 
January 8, 2010 
 
In connection with the indictment of a U.S. Army soldier for 
negligent driving resulting in death, Okinawa Governor Hirokazu 
Nakaima made the following remarks: "There are issues in the 
operation of the Japan-U.S. Status of Forces Agreement (SOFA) with 
regard to unexpected situations relating to interrogation and other 
matters during the investigation phase. I strongly demand a review 
of SOFA from the Japanese and U.S. governments." 
 
7) Hirano denies possibility of visit to Beijing by Hatoyama 
 
SANKEI (Page 5) (Full) 
January 8, 2010 
 
Several news agencies have reported that the Chinese government has 
unofficially proposed a visit to Beijing by Prime Minister Yukio 
 
TOKYO 00000043  004 OF 007 
 
 
Hatoyama and a tour of Hiroshima by Chinese President Hu Jintao. 
Concerning these reports, Chief Cabinet Secretary Hirofumi Hirano 
said at a press conference yesterday: "I am aware of the reports, 
but I don't believe there is any truth to them." In reference to the 
possibility of Hatoyama visiting Beijing, he remarked: "At present, 
we are not considering that possibility at all." 
 
8) Japan-U.S. foreign ministerial to take place in Hawaii on Jan. 
12 
 
SANKEI (Page 5) (Full) 
January 8, 2010 
 
It was learned yesterday that the governments of Japan and the 
United States are now in the final stages of coordinating a foreign 
ministerial meeting on Jan. 12 in Hawaii to discuss such issues as 
the relocation of U.S. Marine Corps Air Station Futenma (in Ginowan 
City, Okinawa Prefecture). Foreign Minister Katsuya Okada and 
Secretary of State Hillary Clinton are expected to confirm that 
Tokyo and Washington will start talks aimed at deepening the 
bilateral alliance on the occasion of the 50th anniversary of the 
revision of the U.S.-Japan Security Treaty without waiting for the 
Futenma relocation issue to be resolved. 
 
9) Chief Cabinet Secretary Hirano: Japanese government complains to 
New Zealand government over whaling vessel collision 
 
SANKEI (Page 2) (Full) 
January 8, 2010 
 
In connection with the collision between a Japanese whaling fleet 
vessel and a protest boat operated by the U.S.'s Sea Shepherd 
anti-whaling group, which advocates environmental protection, Chief 
Cabinet Secretary Hirofumi Hirano stated yesterday at a press 
conference, "The Japanese government feels it is extremely 
regrettable." 
 
Hirano then said, "We strongly demanded that incidents of this 
nature are not to occur again," revealing that the Japanese 
government lodged a stern complaint to the New Zealand government 
because the protest boat, which was disrupting the whaling vessel's 
operations, is registered in New Zealand. 
 
Hirano also expressed strong concern, saying, "Although the 
collision occurred (this time), we have complained repeatedly." 
 
10) U.S. interest focused on DPJ's Ozawa during visit of LDP policy 
chief Ishiba 
 
SANKEI (Page 3) (Abridged) 
January 8, 2010 
 
Rui Sasaki in Washington 
 
Liberal Democratic Party (LDP) Policy Research Council Chairman 
Shigeru Ishiba, who is on a visit to the United States, met National 
Security Council Senior Director for Asia Jeffrey Bader, Assistant 
Secretary of State Kurt Campbell, and Assistant Secretary of Defense 
Wallace Gregson on Jan. 6. There was a consensus on the importance 
of the Japan-U.S. alliance at these meetings. However, the focus of 
U.S. interest in the meetings was what sort of person is Democratic 
Party of Japan (DPJ) Secretary General Ichiro Ozawa and what is he 
 
TOKYO 00000043  005 OF 007 
 
 
thinking. This reflected the fact that the U.S. government is 
genuinely "very nervous" (according to a LDP Diet member 
accompanying Ishiba) about the issue of the relocation of the U.S. 
forces' Futenma Air Station (in Ginowan City, Okinawa). 
 
At the meetings with Ishiba on Jan. 6, the U.S. side repeatedly 
stressed that there is no other option than the current relocation 
plan, which involves the construction of a replacement facility in 
the coastal area of Camp Schwab in Nago City, Okinawa, since this 
was "a conclusion drawn after examining many options." 
 
Commenting on Prime Minister Yukio Hatoyama's decision to defer a 
conclusion on the relocation site to May, Gregson pointed out that 
"any further delay will make it even more difficult to reach a 
solution." He also said, "It is regrettable that the talks on 
deepening the Japan-U.S. alliance (agreed upon at the Japan-U.S. 
summit last November) have not started," indicating his concern that 
the bilateral alliance relationship is not growing deeper, but has 
even stagnated. 
 
According to an informed source accompanying Ishiba, many people on 
the U.S. side, not just senior government officials, but also think 
tank officials, asked questions about the extent of Ozawa's 
influence in the administration and the ruling parties and what sort 
of political ideals and policies he embraces because "Mr. Ozawa 
holds the power of life and death over the Hatoyama 
administration." 
 
In response, Ishiba reportedly related to the U.S. officials Ozawa's 
statement that "the U.S. Navy's Seventh Fleet is sufficient" for the 
defense of Japan and his statement emphasizing the importance of the 
United Nations. 
 
The U.S. government is now taking active steps in reaction to moves 
on the Japanese side, both in the government and the ruling and 
opposition parties. 
 
11) 14 prefectural assemblies opposed to local suffrage for foreign 
residents 
 
ASAHI (Top Play) (Lead paragraph) 
January 8, 2010 
 
Of the 47 prefectures, 14 prefectural assemblies have adopted 
opinion papers opposing the planned legislation of voting rights for 
permanent foreign residents since the change of government last 
year, according to an investigation by the Asahi Shimbun. Of the 14 
assemblies, seven had adopted opinion papers supporting the plan in 
the past. The papers were produced mainly by their Liberal 
Democratic Party prefectural federations. They apparently are aiming 
to underscore the differences between their policies and those of 
the Democratic Party of Japan, bearing in mind the upcoming House of 
Councillors election this summer and the nationwide local elections 
in the spring of next year. 
 
12) Nakasone advises Tanigaki: "Politics-and-money scandals can be 
effective ammunition to attack government" 
 
YOMIURI (Page 4) (Full) 
January 8, 2010 
 
Liberal Democratic Party President Sadakazu Tanigaki yesterday 
 
TOKYO 00000043  006 OF 007 
 
 
called on three party heavyweights who once served as prime 
minister, including Yasuhiro Nakasone, to extend his sincere wishes 
for a Happy New Year. In the meetings, he expressed his 
determination to launch a counterattack against the government to 
turn around the situation, saying: "I am determined to go into the 
ordinary Diet session with all my energy and grit." 
 
In response, Nakasone advised him that a series of 
politics-and-money scandals, including Prime Minister Yukio 
Hatoyama's false donation statements, could be powerful ammunition 
to attack the government. 
 
Former Prime Minister Yasuo Fukuda cited some contradictions in the 
Democratic Party of Japan's campaign pledges and the fiscal 2010 
budget bill, as well as the issue of relocating the U.S. Marine 
Corps' Futenma Air Station, and then said: "Everything will depend 
on deliberations at the Budget Committee. I hope you will prepare a 
detailed strategy and thoroughly grill the government." Former Prime 
Minister Toshiki Kaifu also encouraged Tanigaki to exert his 
political influence in Diet debates. 
 
13) Finance Minister Kan calls for weaker yen 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
January 8, 2010 
 
Referring to the current yen exchange rate against the dollar, 
Finance Minister Naoto Kan said on Jan. 7 during his first press 
conference since taking office, "I hope to see the yen become a 
little weaker. Many business leaders say that the appropriate level 
would be in the mid-90s (against the dollar)." He continued, "I will 
make efforts along with the Bank of Japan (BOJ) to ensure 
appropriate yen exchange rates, while taking into account the impact 
of the exchange rate on the Japanese economy." 
 
Finance ministers, who are charge of currency policy, are usually 
cautious about making statements on exchange rates because of the 
impact such statements have on the market. It appears that he made 
that statement taking into account export-oriented industries, which 
are suffering due to the strong yen. However, it is unusual for a 
finance minister to make a "verbal intervention" by referring to a 
specific level for the desired exchange rate. 
 
Kan also indicated his eagerness to carry out budgetary reforms, an 
issue which he has been addressing since he was state minister for 
national policy. He said, "I would like to boost the transparency of 
budget implementation so that we can determine whether the budget is 
benefiting the people." 
 
14) Government eyes legal liquidation for JAL'S reconstruction 
 
YOMIURI (Top play) (Excerpts) 
January 8, 2010 
 
Regarding the reconstruction of Japan Airlines (JAL), the government 
on Jan. 7 entered final coordination of views with the possibility 
of adopting a legal liquidation-based reconstruction plan proposed 
by Enterprise Turnaround Initiative Corporation (ETIC). The process 
involves JAL filing a petition for protection with the court under 
the Corporate Rehabilitation Law this month and ETIC formally 
placing the carrier under its control, after deciding to extend 
finance assistance to it. Concerned cabinet ministers, such as 
 
TOKYO 00000043  007 OF 007 
 
 
Finance Minister Kan and Transport Minister Maehara, will likely 
confer on the issue as early as this weekend and decide on the 
government's stance. The JAL reconstruction, which has suffered a 
number of setbacks since the launch of the Hatoyama administration 
in September last year, has now entered its most crucial stage. 
 
Concerning the method of reconstructing JAL, there has been ongoing 
confrontation between ETIC, which has been calling for legal 
liquidation on one side, and JAL and its three mega banks on the 
other. Since there is a strong possibility that a massive amount of 
public money will be injected into JAL through ETIC in the 
reconstruction process, the government is leaning toward deciding 
that it would be appropriate to ensure transparency through the 
involvement of the courts. 
 
15) "We will extend financial assistance to JAL, even if it becomes 
subject to legal liquidation," says Delta Air Lines president 
 
NIKKEI (Page 9) (Full) 
January 8, 2010 
 
President Edward Bastian of Delta Air Lines, an airline carrier that 
is seeking a business tie-up with Japan Airlines (JAL), on Jan. 7 
held in Tokyo a press conference at which he said that in spite of 
the method of its reconstruction, his company is ready to extend 
financial assistance to JAL totaling over 1 billion dollars. He 
said, "Even if JAL becomes subject to legal liquidation, we will 
assist it." 
 
The Japanese and U.S governments in December last year reached an 
agreement to sign an "open skies" agreement. Whether the two 
carriers can obtain antitrust immunity (ATI) status is of intense 
interest because of the high share of Japan-U.S. routes they would 
command after forming a business alliance. Bastian repeated an 
earlier view, saying, "The U.S. government has granted ATI to 
companies with even higher shares." 
 
In November last year JAL President Haruka Nishimatsu said during a 
press conference on JAL's financial results, "I would like to choose 
our business partner swiftly." However, he has not yet made a 
decision, because the method of JAL's reconstruction is still up in 
the air. 
 
16) Government presents draft report on common global target to 
increase biodiversity by 2050 
 
YOMIURI (Page 2) (Excerpt) 
January 8, 2010 
 
With an eye on the 10th Conference of the Parties to the Convention 
on Biological Diversity (COP10) scheduled for October in Nagoya, the 
government submitted a draft report on common global targets from 
2010 to the Secretariat of the conference on Jan. 6, the Environment 
Ministry disclosed yesterday. Focusing on the continuing loss of 
biodiversity for such reasons as development and the introduction of 
foreign species, the draft notes: "There should be richer diversity 
of species by 2050 than there is now." 
 
ROOS