VZCZCXRO4511
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0061/01 0110813
ZNR UUUUU ZZH
P 110813Z JAN 10
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8636
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 0593
RUEHFK/AMCONSUL FUKUOKA 8252
RUEHOK/AMCONSUL OSAKA KOBE 2065
RUEHNAG/AMCONSUL NAGOYA 5351
RUEHKSO/AMCONSUL SAPPORO 8748
RUEHBJ/AMEMBASSY BEIJING 2583
RUEHUL/AMEMBASSY SEOUL 9248
RUCNDT/USMISSION USUN NEW YORK 8670

UNCLAS SECTION 01 OF 10 TOKYO 000061 
 
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 01/11/10 
 
INDEX: 
 
(1) Government sources reveal China mulling replacing Japan's 
refueling operations in Indian Ocean (Sankei) 
(2) Governance: The two faces of Ozawa (Mainichi) 
(3) Chief Cabinet Secretary Hirano visits Okinawa without any 
concrete plans (Asahi) 
(4) Chief cabinet secretary visits Okinawa, based on Hatoyama's 
desire to settle Futenma issue under Kantei's lead (Mainichi) 
(5) Editorial on Chief Cabinet Secretary Hirano's visit to Okinawa: 
Futenma should be returned without being relocated within prefecture 
(Ryukyu Shimpo) 
(6) Kyosera Chairman Inamori asked to become new CEO of JAL (Asahi) 
 
(7) JAL to be reconstructed under Corporate Rehabilitation Law: 
Corporate turnaround body to expand restructuring plan (Nikkei) 
(8) Turnaround body not to allow JAL to accept financial assistance 
by U.S. carriers' capital help (Nikkei) 
(9) Maehara announces expansion of timeframe for foreign carriers at 
New Chitose Airport (Asahi) 
(10) TOP HEADLINES 
(11) EDITORIALS 
(12) Prime Minister's schedule, January 10 (Nikkei) 
 
ARTICLES: 
 
(1) Government sources reveal China mulling replacing Japan's 
refueling operations in Indian Ocean 
 
SANKEI (Top play) (Full) 
January 11, 2010 
 
It was learned from several government sources on Jan. 10 that the 
Chinese navy is considering taking over the refueling operations of 
the Maritime Self-Defense Force (MSDF) in light of its withdrawal 
from the refueling mission in the Indian Ocean by Jan. 15. Japan, 
which relies on the Middle East for 90 percent of its crude oil 
imports, will not only lose its presence in the sea lane in that 
area, but the very foundation of its energy policy will also be 
under China's control. There is a growing sense of alarm in the 
government. 
 
According to government sources, although the PRC government 
stresses that "the deployment of troops to the multinational forces 
in Afghanistan is out of the question," several intelligence sources 
have confirmed that it is considering participation in and 
cooperation with the International Security Assistance Force (ISAF) 
responsible for security maintenance in Afghanistan behind the 
scenes. While some Chinese officials are cautious about such a move, 
there is also a persistent opinion that the withdrawal of the MSDF 
refueling mission is a good opportunity for participation in the 
"war against terrorism." 
 
In light of the piracy problem in waters off Somalia, China has 
dispatched two destroyers and one supply vessel to the Gulf of Aden 
and adjacent waters to participate in operations to crack down on 
pirates and protect commercial vessels. According to a defense 
official, "the Chinese supply vessel has become quite proficient" 
and it is possible that the scope of operations of this vessel may 
be expanded to take over refueling operations in the Indian Ocean. 
 
However, since maritime interdiction under Operation Enduring 
 
TOKYO 00000061  002 OF 010 
 
 
Freedom (OEF) is undertaken by the Combined Task Force 150 (CTF-150) 
led by the U.S. forces, there is also the opinion that it is 
unlikely for China to place its forces under U.S. military command. 
In addition, the technical standards of China's supply vessel are 
different from those of the other participating nations, creating 
technical problems. 
 
However, China's participation in the OEF will enable it to share 
information on the Afghan and Middle East situation with the other 
participating nations. Its taking part in sea lane defense in the 
Indian Ocean will also bring invaluable benefits. 
 
Prime Minister Yukio Hatoyama has decided to withdraw the MSDF in 
anticipation of the expiration of the special antiterrorism measures 
law authorizing its mission on Jan. 15. 
 
With the withdrawal, Japan will not only be relying on other 
countries for the safety of its own ships, but will also be 
extremely restricted in its access to information relating to 
terrorism and other matters. In light of the discord in the 
Japan-U.S. relationship over the relocation of the U.S. forces' 
Futenma Air Station, a source on defense issues points out that "it 
is possible that China may announce its participation in OEF in 
order to highlight U.S.-China rapprochement." 
 
(2) Governance: The two faces of Ozawa 
 
MAINICHI (Page 1) (Excerpts) 
January 10, 2010 
 
Ozawa has a drastic perception of bureaucratic rule: "All companies 
and organizations are under the control of the central government 
agencies. For the Japanese, the government means the authorities or 
the bureaucracy. Even lawmakers from the ruling parties are not 
aware that it is their cabinet." Based on this perception, Ozawa has 
been insisting on the need to send teams of politicians into 
government agencies, modeled after Britain, or calling for banning 
bureaucrats from making Diet replies. These initiatives, which are 
now about to be materialized under the Hatoyama administration, have 
already been presented in his book "Blueprint for a New Japan," 
published in 1993. 
 
Takashi Hara, a politician who served as prime minister in the 
middle of the Taisho Period and whom Ozawa respects, aimed at 
political leadership. He opened up bureaucratic posts, such as vice 
ministerial posts, which Aritomo Yamagata allowed bureaucrats to 
dominate, to lawmakers in order to let politicians to take part in 
the governing body. At the same time, Hara lured high-ranking 
bureaucrats, such as Takejiro Tokonami, into Seiyu-Kai in an effort 
to heighten political parties' governance capabilities. 
 
What makes Ozawa different from Hara is his expectations for 
politicians other than himself. He in November 2007 gave a glimpse 
of this nature in the so-called grand coalition talks, which rocked 
political circles. 
 
Ozawa told his cabinet formation plan to Prime Minister Yasuo Fukuda 
at the time: "I will become deputy prime minister. I do not mind 
serving as a minister without portfolio." He then continued: "I 
would like to see a coalition fixed first. If that is fixed, 
policies can be set at our own discretion. Since we cannot rely on 
politicians, both sides should appoint a couple of persons other 
 
TOKYO 00000061  003 OF 010 
 
 
than lawmakers to attend talks." 
 
He proposed leaving his aides to work out policy talks, without 
trusting lawmakers of the Liberal Democratic Party (LDP). 
 
But the initiative never materialized, and it turned out that there 
was more to it after all. Fukuda was asked by several routes to 
appoint former Vice Finance Minister Jiro Saito (now Japan Post 
president) as governor of the Bank of Japan from December 2007 
through January 2008. Ozawa's intention to reinstate Saito was 
behind such requests. 
 
Saito, who tried to introduce a national welfare tax during the 
Hosokawa administration, is Ozawa's close friend. For this reason, 
Saito lost favor with the LDP, which later regained power. Ozawa 
used abusive language toward the Imperial Household Agency director 
general over the setting of a meeting with the Emperor (for Vice 
President Xi Jinping) as an exception, saying, "He is a prime 
example of bureaucracy." However, Ozawa's anti-bureaucratic 
sentiment was absent when he gave thoughtful consideration to 
Saito. 
 
He has one face as a reformist who advocates political supremacy and 
wresting power from central bureaucrats in the policymaking process, 
and another face, which he shows secretly. This dual nature of such 
an influential person is bound to affect the new relationship 
between politicians and bureaucrats. 
 
(3) Chief Cabinet Secretary Hirano visits Okinawa without any 
concrete plans 
 
ASAHI (Page 2) (Excerpts) 
January 10, 2010 
 
Shinji Muramatsu, Tsukasa Kimura, and Atsushi Matsukawa 
 
Chief Cabinet Secretary Hirofumi Hirano, who serves as a coordinator 
for the three coalition parties, visited Okinawa for the first time 
since assuming his post in an effort to find a breakthrough in the 
deadlocked issue of relocating the U.S. Marine Corps' Futenma Air 
Station in Ginowan in the prefecture. On Jan. 9, he held talks with 
Gov. Hirokazu Nakaima and inspected some U.S. bases in the 
prefecture. Hirano has just become involved in this issue. With the 
deadline approaching this May, will the government be able to come 
up with a new relocation site that is acceptable to both the local 
residents and the United States? Local leaders take sober views of 
the government's effort to find a new site. 
 
"We may have to ask for your decision," Hirano said to Gov. Nakaima 
toward the end of their meeting on Jan. 9. Hirano's comment can be 
taken to mean that if the government picks a new relocation site 
within Okinawa, Tokyo will have to ask for the consent of the 
governor. 
 
The Hatoyama cabinet, which has given up on settling the issue in 
2009, has launched a new government panel on Okinawa bases composed 
of the three coalition parties of Democratic Party of Japan (DPJ), 
the Social Democratic Party, and the People's New Party. The three 
parties are scheduled to present their respective relocation plans 
later this month to make a final decision by May. Prime Minister 
Yukio Hatoyama hopes to finish coordinating views with the U.S. side 
in May. 
 
TOKYO 00000061  004 OF 010 
 
 
 
Nevertheless, unlike past chief cabinet secretaries who served as 
coordinators between the government and Okinawa, Hirano has hardly 
been involved in the Futenma issue at all. Although he is tasked 
with playing the role of main coordinator, it is unclear how deeply 
involved Hirano can become in handling this matter. 
 
Since it is his first visit to Okinawa, Hirano's itinerary is packed 
with people to see and places to go. On Jan. 9, he visited, among 
other places, Camp Schwab, the site picked by Tokyo and Washington 
to replace Futenma Air Station, in addition to meeting with Nakaima. 
He also held talks with the heads of Kadena Town, Okinawa City, and 
Chatan Town that host Kadena Air Base. 
 
On Jan. 10, he is scheduled to view Okinawa's main island from a 
helicopter and some remote islands from the Self-Defense Force's U-4 
multipurpose assistance plane. Included in those islands are Ie 
Island (in the village of Ie) and Shimoji Island (in the city of 
Miyako) that have been mentioned as possible relocation sites for 
the training of Futenma-based helicopters. 
 
Nevertheless, some cabinet ministers, such as Foreign Minister 
Katsuya Okada, Defense Minister Toshimi Kitazawa, and Prime Minister 
Hatoyama are also making their own moves. 
 
Okada is scheduled to hold talks with U.S. Secretary of State 
Hillary Clinton in Honolulu on Jan. 12. Their discussion will center 
on finding a breakthrough in Japan-U.S. relations which have become 
tense due to the Futenma issue. Kitazawa has begun making moves 
toward selecting a relocation site by launching a special team in 
his ministry. 
 
Hatoyama has had frequent contact with Yukio Okamoto, a former 
Foreign Ministry official and a foreign affairs commentator with 
strong connections with the United States. 
 
In a national vision research council meeting, held by the Prime 
Minister on Jan. 5, Ukeru Magosaki, a former director-general of the 
Foreign Ministry International Information Bureau, proposed moving 
Futenma either to Maritime Self-Defense Force Omura Air Base (in the 
city of Omura, Nagasaki Prefecture) or to Ground Self-Defense Force 
Camp Ainoura (in the city of Sasebo, Nagasaki Prefecture). 
 
There is a possibility that the actual work to determine a 
relocation site might proceed separately from the three-party 
coalition framework. It appears that Hirano's Okinawa tour was 
intended to demonstrate that the government attaches importance to 
local wishes. 
 
In their talks with Hirano, the chiefs of three municipalities 
hosting Kadena Air Base urged the chief cabinet secretary to come up 
with a direction after discussing the options at a nationwide level 
rather than focusing on those in Okinawa. Despite that, Hirano told 
the press corps on Jan. 9: "I would like to abstain from making any 
comment so as not to cause any impact on the government panel." 
 
Ie and Shimoji islands stepping up opposition to relocation 
 
There is a growing backlash in Ie and Shimoji islands. "We have not 
received any notification from the central government," Ie Mayor 
Katsumasa Oshiro said angrily. "We found out about everything 
through the newspapers. It is truly regrettable." 
 
TOKYO 00000061  005 OF 010 
 
 
 
The Ie Village assembly and Miyako City assembly are scheduled to 
hold special meetings soon to adopt their respective position papers 
opposing the relocation. 
 
"Before the matter moves forward, we must declare our determination 
not to accept the relocation," Miyako City Assembly Speaker Akira 
Shimoji said. "The DPJ, which has won control of the government on a 
platform of moving Futenma outside Okinawa or even Japan must 
deliver on its pledge." 
 
Gov. Nakaima is also becoming increasingly frustrated with the 
government's inconsistent stance. Nakaima's term of office will 
expire in December this year. He won the post in the previous 2006 
gubernatorial election on a pledge to effectively close down the 
Futenma airfield within three years. Nakaima's reelection depends on 
a certain level of expectation that the Futenma issue will be 
resolved, but there have been no prospects for resolution since the 
change of government. 
 
(4) Chief cabinet secretary visits Okinawa, based on Hatoyama's 
desire to settle Futenma issue under Kantei's lead 
 
MAINICHI (Page 2) (Full) 
January 10, 2010 
 
Chief Cabinet Secretary Hirofumi Hirano visited Okinawa on Jan. 8, 
based on Prime Minister Yukio Hatoyama's desire to resolve the issue 
of relocating the U.S. Marine Corps' Futenma Air Station in Ginowan 
City, Okinawa Prefecture, under the lead of the Prime Minister's 
Office (Kantei). It was the first time in 10 years for a chief 
cabinet secretary to visit Okinawa. Foreign Minister Katsuya Okada 
and Defense Minister Toshimi Kitazawa, who were in charge of 
negotiations on the Futenma issue up until late last year, have now 
stepped back. Okinawa Governor Hirokazu Nakaima asked Hirano to move 
the Futenma base out of the prefecture, but the U.S. side still 
regards the current plan to relocate the Futenma airfield to the 
coastal area of Camp Schwab in Henoko, Nago City, as the best 
option. The prime minister has said that the government will reach a 
conclusion by May, but the conclusion that will emerge remains 
unknown. 
 
In the early afternoon of Jan. 9, Hirano walked along a residential 
street adjacent to the Futenma airfield and asked local residents if 
the noise was deafening and if they have taken soundproofing 
measures. He then went up onto the roof of an elementary school 
contiguous to the airfield. It is unprecedented for a cabinet 
minister to get his first look at  a situation by walking along a 
residential street. Ginowan Mayor Yoichi Iha told reporters: "I 
think it was the first time for a chief cabinet secretary to visit 
even an elementary school. I am grateful to him for having climbed 
to the roof of the school." 
 
Hirano told Hatoyama when they held talks while dining at a Tokyo 
hotel on the night of Jan. 4: "Leave the Futenma issue in my hands. 
You should remain steadfast. I will take responsibility." In 
December, Hirano assumed the chairmanship of a committee tasked with 
finding a settlement of the relocation issue. In conversations with 
close aides he has expressed his resolve (to settle the Futenma 
issue): "My U.S. counterpart is James Jones, assistant to the 
President." Hatoyama also commented on Jan. 8: "He is acting with a 
strong determination." 
 
TOKYO 00000061  006 OF 010 
 
 
 
In addition, some changes are also seen in the lineup of outside 
advisers to the prime minister over the Futenma issue. In seeking 
advice, the prime minister greatly relied on Japan Research 
Institute Chairman Jitsuro Terashima, who has advocated a security 
arrangement without the permanent presence of U.S. forces. Recently, 
however, Hatoyama has often exchanged views with Yukio Okamoto, a 
former special adviser to the prime minister, and former deputy 
foreign minister Hiroshi Tanaka, both of whom have a good knowledge 
about the process that led to the Japan-U.S. agreement reached 
around 1997 to relocate the Futenma facility within the prefecture. 
A government source said: "The increase in Hatoyama's meetings with 
Okamoto and Tanaka indicates his willingness to examine the Futenma 
issue from multiple angles and make a final decision by himself." 
 
Meanwhile, Okada intends to entrust the Futenma issue to the Kantei 
and to tackle Japan-U.S. relations as a whole. In a press conference 
on Jan. 8, he emphasized: "On the Futenma issue, various views have 
been presented, and the issue has unavoidably affected the bilateral 
relationship. But the two countries have shared the view that their 
alliance must be deepened." He then indicated he would devote 
himself to consolidating the environment surrounding Japan and the 
U.S. 
 
Kitazawa was initially taking the stance of approving the existing 
relocation plan, but he established in the Defense Ministry a 
special team that includes those who were not involved in the 
process of drawing up the existing plan, out of consideration for 
the prime minister. Parliamentary Defense Secretary Akihisa 
Nagashima also said in a symposium in Tokyo on Jan. 9: "Regardless 
of the outcome of the upcoming Nago mayoral election, this issue is 
very difficult." He thus indicated that even if the incumbent, who 
has approved the existing relocation plan, is re-elected in the 
mayoral election on Jan. 24, it might be difficult to implement the 
existing plan. 
 
Local governments begin to call for moving airfield out of Okinawa 
 
Okinawa Governor Nakaima asked Hirano at the outset of their meeting 
to move the Futenma facility outside the prefecture. The governor 
said: "The people in Okinawa are strongly hoping to see the Futenma 
facility moved outside the prefecture. We expect the government will 
come up with a reply, keeping their desire also in mind." This 
expression was stronger than his remark last November. At that time, 
he had said: "Expectations are growing in the prefecture for the 
Futenma base to be relocated out of the prefecture." 
 
The governor has changed his stance in response to the Liberal 
Democratic Party Okinawa Prefectural Federation's policy switch from 
approving the plan to relocate the base within the prefecture to 
calling for moving the facility outside the prefecture. In addition, 
his supporters' group has also begun to urge the governor to call on 
the central government to move the Futenma base out of the 
prefecture. A senior prefectural federation member emphasized: 
"There is no need for the prefectural government to refer to the 
existing plan to relocate the facility to the Henoko district. What 
the prefectural government should do is to only call for moving the 
facility out of the prefecture as the best option." 
 
Meanwhile, the three heads of the municipal governments hosting the 
U.S. Kadena Air Station met Hirano at the Chatan Town Hall on Jan. 
¶9. They renewed their opposition to the proposed integration of 
 
TOKYO 00000061  007 OF 010 
 
 
Futenma helicopter functions with Kadena Air Base and called for 
moving it out of the prefecture. Kadena Town Mayor Tokujitsu Miyagi 
said: "More than 70 PERCENT  of all prefectural citizens are hoping 
to see the Futenma base moved out of the prefecture. We would like 
you to take advantage of this opportunity as chief cabinet secretary 
to start a national debate on security rather than having Okinawa 
shoulder the burden of Japan's defense." 
 
(5) Editorial on Chief Cabinet Secretary Hirano's visit to Okinawa: 
Futenma should be returned without being relocated within 
prefecture 
 
RYUKYU SHIMPO (Page 2) (Full) 
January 10, 2010 
 
Chief Cabinet Secretary Hirofumi Hirano visited Futenma Air Station, 
Kadena Air Base, Camp Schwab, and other U.S. military facilities in 
Okinawa on Jan. 9 to familiarize himself with the actual situation. 
Anyone with common sense would find it odd that three-fourths of all 
facilities for the exclusive use of U.S. Forces Japan (USFJ) are 
concentrated in Okinawa, which only makes up 0.6 percent of Japan's 
total land area. 
 
Governor Hirokazu Nakaima also conveyed to Mr. Hirano the Okinawan 
people's hope for Futenma's relocation out of the prefecture. We 
would like the government to make serious efforts to conduct a 
drastic review of the Japan-U.S. agreement on USFJ realignment after 
Mr. Hirano's visit to Okinawa. 
 
Mr. Hirano chairs the government and the ruling parties' panel for 
examining the base issues in Okinawa, which is looking into new 
relocation sites for the Futenma base. He can certainly be 
considered to be one of the politicians that hold the fate of 
Okinawa. 
 
Prime Minister Yukio Hatoyama indicated at a debate of the leaders 
of six major political parties last August that "(the Futenma base) 
should at least be relocated out of Okinawa." 
 
Since Mr. Hirano is the Prime Minister's top aide, his job is to 
come up with a conclusion that will not result in the Okinawan 
people accusing the Prime Minister of being a "liar." 
 
If the return of Futenma is achieved without the base being 
relocated to elsewhere in Okinawa, the name of Yukio Hatoyama will 
go down in the history of Okinawa as a statesman who worked to 
achieve a solution to the base issues. On the other hand, if he 
continues to impose the base-hosting burden on Okinawa, he will be 
known to future generations as the "prime minister who deceived the 
Okinawan people." 
 
Mr. Hirano will reportedly inspect the islands of Shimoji and Ie 
from the air on Jan. 10. If he is considering these islands as 
possible relocation sites, he is looking in the wrong direction. 
 
The Ryukyu government invited the Shimojishima airport in Miyakojima 
City to be set up as a training facility for jet pilots in 1969, 
before Okinawa's reversion to Japanese administration. There were 
concerns about the military's use of the airport, e.g., by the 
Self-Defense Forces, when the airfield was being constructed and 
there were even some violent incidents in connection with it. 
 
 
TOKYO 00000061  008 OF 010 
 
 
For this reason, the Ryukyu government and the Japanese government 
confirmed that the airfield would only be used by civilian aircraft 
in an official document in August 1971. This memorandum is still 
valid. The Miyakojima city assembly is making arrangements to pass a 
statement opposing the relocation of the Futenma base to Shimoji 
island. 
 
Ie island was designated by the SACO (Special Action Committee on 
Okinawa) agreement as a site for parachuting exercises. It has 
experienced many problems related to landing errors, for instance. 
The Ie village assembly is also expected to pass a resolution 
opposing the relocation. 
 
Mr. Hirano said, "We may need a decision from the governor," but the 
government should really make the decision. Is it acceptable to 
destroy the beautiful sea and living environment in Henoko? We hope 
he will look at this issue with clear vision. 
 
(6) Kyosera Chairman Inamori asked to become new CEO of JAL 
 
ASAHI (Page 1) (Excerpt) 
January 11, 2010 
 
The government and the Enterprise Turnaround Initiative Corporation 
of Japan have asked Kazuo Inamori, honorary chairman of Kyocera 
Corp., to assume the post of chief executive officer (CEO) of the 
cash-strapped Japan Airlines. According to informed sources, he has 
not responded to the offer yet. 
 
(7) JAL to be reconstructed under Corporate Rehabilitation Law: 
Corporate turnaround body to expand restructuring plan 
 
NIKKEI (Top play) (Lead para.) 
January 9, 2010 
 
Japan Airlines (JAL) is now set to reconstruct its management, using 
the Corporate Rehabilitation Law. Enterprise Turnaround Initiative 
Corporation of Japan (ETIC), a public organization, which is set to 
extend finance assistance to the carrier, has decided to expand the 
restructuring plan. The aim is to reconstruct the carrier by taking 
prompt measures. ETIC has already asked for debt forgiveness from 
concerned financial institutions. It will boost that amount to 350 
billion yen. It will also increase the number of domestic and 
overseas routes for termination and personnel cuts. Concerning the 
responsibility of stockholders, there are two proposals - delisting 
the carrier from the Tokyo Stock Exchange through a 100 percent 
capital reduction or keeping the carrier listed by leaving set 
portions of stockholders' shares intact. The government will 
continue to coordinate views. 
 
Points of JAL reconstruction plan 
 
Q ETIC will decide to assist JAL right after the carrier files a 
petition around the 19th for protection with the court under the 
Corporate Rehabilitation Law. 
Q Total protection of loan claims on JAL concerning general 
commercial transactions, such as the costs of fuel and equipment. 
Q Ask for debt waiver worth 350 billion yen from concerned financial 
institutions 
Q Cuts in portions of corporate bonds and pension liability 
Q Clarify shareholders' responsibility through a capital decrease. 
There are arguments for and against keeping the carrier listed. 
 
TOKYO 00000061  009 OF 010 
 
 
Q Further restructuring through cuts in domestic and foreign flight 
routes. Aim at reconstruction within three years under ETIC. 
 
(8) Turnaround body not to allow JAL to accept financial assistance 
by U.S. carriers' capital help 
 
NIKKEI (Top play) (Lead para.) 
January 10, 2010 
 
Japan Airlines, which is now set to reconstruct its management under 
the Corporate Rehabilitation Law, and Enterprise Turnaround 
Initiative Corporation of Japan (ETIC), which is to assist the 
carrier's business management, have decided not to accept capital 
help either from Delta Air Lines or from American Airlines, with 
which it is currently pursuing talks on a business tie-up. A tie-up 
will be limited to the business front in order for JAL to aim at 
prompt reconstruction under strong control of ETIC and the 
government. ETIC intends to carefully determine the possible effects 
of a business tie-up. As such, the likelihood is that a decision on 
JAL's business partner will not be made until February or later. 
 
(9) Maehara announces expansion of timeframe for foreign carriers at 
New Chitose Airport 
 
ASAHI (Page 7) (Full) 
January 9, 2010 
 
Minister of Land, Infrastructure, and Tourism Seiji Maehara 
announced on Jan. 8 that the timeframe for flights by foreign 
airlines to and from New Chitose Airport in Hokkaido, until now 
restricted for national security reasons, will be expanded from 
March 28. The expansion resulted from coordination between the 
ministries of defense and of land, infrastructure and tourism for 
the purpose of drawing tourists from China and elsewhere to 
Hokkaido, a popular destination. Daytime flights have been 
restricted to 11:20 in the morning until 1:50 in the afternoon on 
Wednesday. Henceforth the timeframe will be expanded to 12:00 noon 
until 4:00 in the afternoon on Tuesday and Wednesday. 
 
(10) TOP HEADLINES 
 
Asahi: 
JAL's stock to be delisted, according to Enterprise Turnaround 
Initiative Corporation of Japan's plan 
 
Mainichi: 
80 percent of nurseries for sick children to go into the red 
 
Yomiuri: 
Children of married couples using dual surnames to have same 
surnames under amended civil code 
 
Nikkei: 
Local autonomy law to be amended drastically 
 
Sankei: 
Refueling operation in Indian Ocean to end on Jan. 15: China 
considering taking over 
 
Tokyo Shimbun: 
Tokyo and three neighboring prefectures to set rules on 
transportation of patients at perinatal stage 
 
TOKYO 00000061  010 OF 010 
 
 
 
Akahata: 
Chairman Shii in NHK party head interview calls for switch from 
politics centered on business world and stance of blindly following 
U.S. 
 
(11) EDITORIALS 
 
Asahi: 
(1) Year of reading: Fully utilize neighborhood libraries 
(2) Abuse of elderly people: Do not overlook people who are 
exhausted from care-giving 
 
Mainichi: 
(1) School teachers suffering from psychological problems: Hurry to 
reduce their burden of school affairs 
(2) Concerned nations should not allow acts of obstruction to 
research whaling 
 
Yomiuri: 
(1) USFJ expenses: Not sympathy budget, but necessary expenses 
(2) Coming-of-Age day: Make concrete plans for future 
 
Nikkei: 
(1) Responsibility for future: Inspire young people's enthusiasm and 
energy 
 
Sankei: 
(1) Local suffrage for permanent foreign residents: LDP should 
clarify its opposition 
(2) Coming-of-Age day: What we expect from new adults 
 
Tokyo Shimbun: 
(1) Thoughts on Coming-of-Age day: Be active, new adults 
 
Akahata: 
(1) To new adults who will open up doors to new age 
 
(12) Prime Minister's schedule, January 10 
 
NIKKEI (Page 2) (Full) 
January 11, 2010 
 
Spent the morning at the official residential quarters. 
 
14:22 
Visited Hie Shrine in Nagata-cho with his wife. 
 
15:12 
Arrived at the official residential quarters. 
 
18:57 
Met Deputy Prime Minister and Finance Minister Kan. 
 
ROOS