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RUCNDT/USMISSION USUN NEW YORK 8700

UNCLAS SECTION 01 OF 09 TOKYO 000074 
 
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 01/13/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule (Nikkei) 
 
U.S.-Japan relations: 
4) Foreign Minister Okada to U.S. Pacific Command Deputy Commander 
Darnell: Decision on Futenma facility replacement site to be made by 
May  (Mainichi) 
5) Visits to candidate sites for Futenma replacement facility elicit 
backlash complicating issue  (Tokyo Shimbun) 
6) Panel reviewing Okinawa base issue acknowledges gap between 
government and prefecture  (Mainichi) 
7) U.S. Embassy minister-counselor negative on reconsidering Futenma 
relocation proposals already examined in the past  (Mainichi) 
 
Defense & security: 
8) PM rebuts Defense Minister's calls for review of weapon export 
ban  (Nikkei) 
9) U.S. military personnel sent to SDF's core units for weapons 
control, instruction  (Tokyo Shimbun) 
10) Yonaguni mayor asks for troop garrisoning  (Mainichi) 
 
Economy: 
11) JAL subsidiaries to be sold, resources to be focused on flight 
service  (Mainichi) 
12) Number of foreign visitors dropped 17 PERCENT  in 2009  (Nikkei) 
 
 
Environment 
13) PM holds phone conference on climate change with UN Secretary 
General  (Yomiuri) 
 
Politics: 
14) LDP to review new constitution draft  (Yomiuri) 
15) Nakai to assume disaster prevention portfolio  (Asahi) 
16) Kan remains in charge of growth strategy  (Nikkei) 
17) Former Upper House member Jiro Ono resigns from LDP  (Nikkei) 
18) LDP parliamentary group submits three lawmakers' letters of 
secession from party  (Asahi) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Yomiuri: Nikkei: Tokyo Shimbun 
Two-thirds of retired JAL employees agree to reduced pension 
payments 
 
Sankei: 
DPJ Secretary General Ozawa's fund management organization's land 
purchase issue: Amount in case involving lawmaker Ishikawa to reach 
400 million yen 
 
Mainichi: 
Core JAL operations to be split up to create new entity, according 
to ETIC draft plan 
 
Akahata: 
1995 earthquake in Osaka-Kobe area: Emotional recovery not yet 
complete 
 
TOKYO 00000074  002 OF 009 
 
 
 
2) EDITORIALS 
 
Asahi: 
(1) DPJ: Accountability of influential secretary general 
(2) Launch of Japan pension organization: Trust in organization 
should be restored by recovering rate of payment 
 
Mainichi: 
(1) Secretary General Ozawa's press conference: Did he abdicate his 
responsibility to provide an explanation? 
(2) Dangerous intention seen in North Korea's announcement 
 
Yomiuri: 
(1) Trial by lay judges: This year is crucial for establishment of 
lay judge system 
(2) Obstruction of research whaling 
 
Nikkei: 
(1) Hatoyama administration's IT strategy is absent 
(2) Kan urged to come up with solid economic policy 
 
Sankei: 
(1) Granting local suffrage to permanent foreign residents is an 
issue of sovereignty rather than a diplomatic consideration 
(2) JAL turnaround: Carrier should thrust aside the perception that 
the government will foot the bill 
 
Tokyo Shimbun: 
(1) Compensation for transportation costs abolished in Nagoya city: 
Assemblies of other municipalities need review 
(2) Peace accord proposal: North Korea's denuclearization should 
come first 
 
Akahata: 
(1) Spring labor offensive in 2010: Find breakthrough in crisis 
through national cooperation 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 12 
 
NIKKEI (Page 2) (Full) 
January 13, 2010 
 
10:00 Met journalist Soichiro Tawara at the Prime Minister's 
Official Residence. Later met Ritsumeikan University President 
Kiyofumi Kawaguchi, with Foreign Ministry Asian and Oceania Bureau 
Director General Saiki present. 
11:45 Received a call from UN Secretary General Ban Ki-moon, with 
Senior Vice Minister Fukuyama present. 
12:51 Attended a meeting of the Government Revitalization Unit. 
14:02 Attended a cabinet meeting. 
16:22 Issued a letter of appointment to State Minister for Disaster 
Prevention Nakai, with Chief Cabinet Secretary Hirano present. Later 
met Economy, Trade and Industry Minister Naoshima, followed by 
Environment Minister Ozawa. 
18:10 Met Finance Minister Kan and Hirano. 
19:47 Met Hirano. 
20:13 Returned to his official residential quarters. 
 
4) Okada meets U.S. military brass over Futenma issue 
 
TOKYO 00000074  003 OF 009 
 
 
 
MAINICHI (Page 3) (Full) 
January 13, 2009 
 
Takenori Noguchi 
 
HONOLULU-Foreign Minister Katsuya Okada visited the U.S. Pacific 
Command, or PACOM for short, which commands U.S. Forces Japan, at 
its Hawaii headquarters on the afternoon of Jan. 11 (on the morning 
of Jan. 12, Japan time) and met with PACOM Deputy Commander Darnell. 
In the meeting, Okada reiterated that the Japanese government would 
like to reach a conclusion by May on the pending issue of relocating 
the U.S. military's Futenma airfield in Ginowan, Okinawa 
Prefecture. 
 
"This year marks the 50th anniversary of the revision of the 
Security Treaty," Okada said, "and we would like to deepen our 
bilateral security alliance." Darnell said, "Our deployment in the 
West Pacific region is critical for peace and stability in the 
region." He added, "It's important to continue developing our 
bilateral security posture further." 
 
5) Futenma relocation: Government, ruling coalition creating 
commotion in local communities 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
January 13, 2010 
 
Koki Miura 
 
Efforts by the government and ruling parties to look for relocation 
sites for the U.S. Marine Corps' Futenma Air Station (in Ginowan 
City, Okinawa Prefecture) are now creating a backlash in various 
regions. Chief Cabinet Secretary Hirofumi Hirano, the Social 
Democratic Party (SDP), and the People's New Party (PNP) have been 
rushing here and there trying to find a replacement site, but their 
moves are provoking strong reactions from localities where they made 
on-site inspections, further complicating the issue. 
 
Kantoku Teruya, a House of Representative member of the SDP, met 
yesterday with Takashi Omura, mayor of Omura City in Nagasaki 
Prefecture. He broached the intended subject of his conversation, 
saying, "What will you do if the government asks your city to 
shoulder part of the burden of U.S. military bases now borne by the 
people of Okinawa?" 
 
The PNP and Ukeru Magosaki, a member of Prime Minister Yukio 
Hatoyama's private study group and former director general of the 
Foreign Ministry's Intelligence and Analysis Service, have proposed 
the Maritime Self-Defense Force' base in Omura City as a relocation 
site, pointing out that Omura is near the Korean Peninsula and U.S. 
Fleet Activities Sasebo. Mayor Matsumoto said, however, "We can't 
stand the noise problem," indicating that his city cannot offer a 
relocation site. 
 
Meanwhile, on Shimoji Island (in the city of Miyakojima, Okinawa 
Prefecture) and Ie Island (in the village of Ie), which Hirano 
inspected from the air, the city and village councils intend to 
adopt their respective resolutions opposing the relocation. On 
Shimoji Island, residents protested against the relocation, putting 
up banners reading "We will not allow use by the military!" 
 
 
TOKYO 00000074  004 OF 009 
 
 
Japan and the United States have agreed to relocate about 8,000 U.S. 
Marines from Okinawa to Guam. U.S. Congresswoman Madeleine Bordallo, 
delegate from Guam (Democrat), stressed in her statement on Jan. 11 
that it is important for Guam to implement quickly the existing 
relocation plan. She insisted that the existing plan should be 
executed as is. 
 
The SDP plans to send a fact-finding mission to Guam late this 
month, but it will be difficult to secure local understanding for 
the idea of relocating all Futenma heliport factions to Guam. 
 
Some SDP members have expressed concern, with one member saying, 
"Our idea might lead to exporting the Okinawa problem." 
 
6) Ministry of Defense changes tack, says Okinawa did not "fully" 
agree to current Futenma relocation plan 
 
MAINICHI (Page 5) (Full) 
January 13, 2010 
 
Shinichiro Nishida 
 
The third meeting of the government and the ruling parties' panel 
for examining the base issues in Okinawa, which is studying the 
relocation site for the U.S. forces' Futenma Air Station (in Ginowan 
City, Okinawa), was held at the Prime Minister's Official Residence 
on Jan. 12. The Ministry of Defense (MOD) indicated at the meeting 
that "the government and Okinawa did not reach full agreement" on 
the current plan to relocate the Futenma base to the coastal area of 
Camp Schwab (in Henoko, Nago City). 
 
This, in effect, changes the position adopted under the Liberal 
Democratic Party-New Komeito administration that based on the "basic 
confirmation on the realignment of U.S. forces in Okinawa" signed 
with Okinawa in 2006, Okinawa had "agreed." It also shows 
understanding for Okinawa's position that the relocation plan was 
formulated "over its head." The MOD admitted that based on a close 
examination of the subsequent statements made by then Governor 
Keiichi Inamine, who signed the confirmation document, and Governor 
Hirokazu Nakaima, Okinawa "did not fully agree." 
 
7) U.S. minister-counselor negative on reconsidering Futenma 
relocation proposals already examined in the past 
 
MAINICHI (Page 5) (Full) 
January 13, 2010 
 
Hiroyuki Asahi 
 
Minister-counselor Robert Luke of the U.S. Embassy in Japan met with 
People's New Party policy chief Mikio Shimoji at the party 
headquarters on Jan. 12. With regard to the relocation site for the 
U.S. forces' Futenma Air Station, he said: "If proposals that have 
been examined before come up, we will not examine them all over 
again. We will consider only new proposals that have not been 
reported on." There has been media reporting on several possible 
relocation sites, including Shimoji Island in Okinawa. It is 
believed that Luke also indicated a negative view on these 
proposals. 
 
8) MD Kitazawa positive on reviewing three principles on arms 
exports, PM Hatoyama negative 
 
TOKYO 00000074  005 OF 009 
 
 
 
NIKKEI (Page 2) (Full) 
January 13, 2010 
 
Defense Minister Toshimi Kitazawa commented on the three principles 
on arms exports at a New Year's party of the defense industry in 
Tokyo on Jan. 12. He said: "It is probably time to review the basic 
thinking," indicating a positive view on reviewing the three 
principles. However, Prime Minister Yukio Hatoyama negated this 
straight away, telling reporters: "The three principles must be 
upheld. (The defense minister) spoke a little carelessly." 
 
The three principles on arms exports originated in 1967 when (then) 
Prime Minister Eisaku Sato announced a ban on arms exports to: (1) 
countries of the communist bloc; (2) countries banned by UN 
resolutions; and (3) parties involved in an international conflict. 
In 1976, Prime Minister Takeo Miki ordered "restraint" also on arms 
exports to other regions. A "complete ban" on exports of all arms 
and weapon technology became the government's official position. 
Under the Koizumi administration, joint development and production 
of missile defense (MD) systems was treated as an exception. 
 
9) U.S. military personnel sent to SDF's core units for weapons 
control, instruction 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
January 13, 2009 
 
An annual total of more than 100 U.S. military personnel have been 
sent to the Self-Defense Forces' garrisons or bases throughout the 
country for the maintenance and control of U.S.-made weapons, the 
Defense Ministry has revealed. In fiscal 2008, there were 41 cases, 
with 159 U.S. servicemen entering SDF facilities. The SDF is unable 
to use its mainstay weapons like Aegis-equipped destroyers and 
aircraft without support from the U.S. military, and this is one of 
the reasons why the SDF has been increasingly depending on the 
United States. 
 
The U.S. military sends its personnel to SDF bases in connection 
with its foreign military sales, or FMS, which is a system based on 
the Japan-U.S. Mutual Defense Assistance Agreement and is intended 
for the Japanese government to buy highly secret U.S.-developed 
weapons direct from the U.S. government. 
 
According to the Defense Ministry, the Maritime Self-Defense Force 
received maintenance and control services from a total of 90 U.S. 
military personnel for 17 cases, outnumbering the Ground and Air 
Self-Defense Forces. For technical assistance to Aegis destroyers, a 
total of 45 U.S. military personnel went aboard the Kirishima in 
Yokosuka, Kanagawa Prefecture, and the Kongo in Sasebo, Nagasaki 
Prefecture. 
 
Meanwhile, a group of 18 U.S. military personnel embarked on a 
general-purpose MSDF destroyer for training and conducted combat 
training in its combat information center, or CIC, which is the 
heart of a destroyer. Another MSDF destroyer and an MSDF training 
support vessel embarked a total of 17 U.S. military personnel. Those 
U.S. military personnel gave technical instruction in the Standard 
Missile 2 (SM-2), a ship-to-air missile system. 
 
The ASDF had 15 cases with 49 U.S. military personnel, who entered 
ASDF facilities including the Fuchu base in Tokyo, where the ASDF 
 
TOKYO 00000074  006 OF 009 
 
 
locates the Air Defense Command as its general headquarters. In 
addition, those U.S. military personnel also entered the Defense 
Ministry's strictly controlled underground area of the Central 
Command Post to provide technical assistance for the Japan Aerospace 
Defense Ground Environment (JADGE) system, an advanced version of 
the Base Air Defense Ground Environment (BADGE) system for air 
defense warning. 
 
The GSDF had two cases with seven U.S. military personnel. There is 
an interesting fact. A group of five U.S. military servicemen toured 
five GSDF garrisons, including the one at Hachinohe in Aomori 
Prefecture, in order to check to see how the GSDF controls Stinger 
missiles, which are used against U.S. military aircraft in 
Afghanistan. "They're watching out for the outflow of weapons," a 
GSDF staff officer said. This means that the U.S. military has 
doubts even about Japan, and shows the U.S. military's sense of 
crisis in Afghanistan. 
 
10) Yonaguni mayor asks for troop garrisoning 
 
MAINICHI (Page 3) (Full) 
January 13, 2009 
 
Yonaguni Town Mayor Shukichi Hokama from Japan's westernmost island 
of Yonagunijima called on Defense Minister Toshimi Kitazawa 
yesterday at the Defense Ministry. During the meeting, Hokama asked 
Kitazawa to deploy Ground Self-Defense Force troops on his outlying 
island. Kitazawa, meeting the press after a cabinet meeting 
yesterday, went no further than to say: "I have told people in the 
ministry that if they see the need (for deployment) they should come 
up with a report. I know we should study this matter." 
 
11) Core JAL operations to be split up to create new entity, 
according to ETIC draft plan 
 
MAINICHI (Top play) (Excerpts) 
January 13, 2010 
 
The draft of Japan's Airlines' turnaround plan prepared by 
Enterprise Turnaround Initiative Corporation of Japan (ETIC), which 
is helping the carrier reconstruct its management, was revealed on 
Jan. 12. According to the draft, JAL will be transitioned into a new 
company focusing on the aviation business, by selling off 
subsidiaries operating businesses other than its core one, such as 
hotel and travel businesses, to ensure early turnaround. The carrier 
will also look into relocating its head office from Higashi 
Shinagawa, Tokyo, to Haneda with an eye on the internationalization 
of Haneda Airport. Group employees will slashed by 15,000. The 
corporate pension fund will likely be kept intact. 
 
According to the draft, loan claims on JAL concerning business 
dealings, the frequent flyer program, and aircraft on lease will be 
protected by a pre-package turnaround method of coordinating the 
views of interested parties before the carrier files a petition for 
protection under the Corporate Rehabilitation law. 
 
The plan states that the turnaround body will point out that JAL's 
negative net worth is about 860 billion yen and then agree to 
increase capital injection by 300 billion yen, after securing the 
company's cash flow with a sufficient credit line for bridge 
financing by the Development Bank of Japan and the turnaround body. 
JAL will then look into transitioning into a new firm (by splitting 
 
TOKYO 00000074  007 OF 009 
 
 
up its operations) to ensure early turnaround. 
 
More than two-thirds of JAL employees, and retirees have agreed to 
reduced pension payments. The corporate pension fund will be kept in 
place. In the meantime, the plan notes a capital decrease policy, 
noting that the responsibility of existing shareholders will be 
clarified. 
 
12) Foreign visitors drop 17 percent last year due to new flu, other 
reasons 
 
NIKKEI (Page 34) (Full) 
January 13, 2010 
 
According to calculations by the Immigration Bureau, the number of 
foreigners who entered Japan in 2009 was approximately 7.58 million 
(preliminary figure), down about 17.1 percent or roughly 1.56 
million from the previous year. 
 
This is the second consecutive decline. The decrease is the second 
largest since the bureau started collecting statistics in 1950. The 
Immigration Bureau said that people holding off on their travels due 
to the global recession, the strong yen, and the outbreak of the new 
influenza virus affected the results. 
 
The number of Japanese who departed Japan in 2009 came to 15.45 
million, down about 3.4 percent from the previous year, marking the 
third consecutive decline. 
 
13) Hatoyama talks with UN Secretary General over phone on climate 
change 
 
YOMIURI (Page 2) (Full) 
January 13, 2010 
 
Prime Minister Yukio Hatoyama held a telephone conversation with 
United Nations Secretary General Ban Ki-moon yesterday. Ban 
suggested establishing a high-level panel for persons who once 
served as prime minister and others from the concerned countries to 
discuss the design of a new protocol that sets new targets for 
reducing greenhouse gas emissions, based on the Copenhagen Agreement 
reached in the 15th session of the Conference of the Parties to the 
UN Framework Convention on Climate Change. In response, Hatoyama 
said: "I would like to offer cooperation in a positive manner." 
 
14) LDP to draft second revised constitution, aiming to play up 
policy difference from ruling camp with eye on Upper House election 
 
YOMIURI (Page 2) (Full) 
January 13, 2010 
 
The Liberal Democratic Party (LDP) has decided to review "the new 
revised constitution" it produced in 2005 and draft a second revised 
constitution. The party's aim is to revive a stalled debate on 
constitutional revision. 
 
The LDP announced the draft text of a revised constitution on the 
occasion of the 50th anniversary of its establishment. The party 
produced the text of full-fledged constitutional revision for the 
first time in the political world. 
 
The LDP set up the headquarters for the promotion of constitutional 
 
TOKYO 00000074  008 OF 009 
 
 
revision (headed by former Policy Research Council chairman Kosuke 
Hori) under the instruction of President Tanigaki in December 2009 
and launched drafting a second revised constitution. Bearing in mind 
the fact that the National Referendum Law, which provides for 
procedures for constitutional revision, will take effect in May 
2010, Tanigaki and panel members have judged it necessary to add 
more substance to the party's original draft and publicize the new 
one in order to spur momentum for debate on the revision of the 
Constitution. 
 
With the aim of producing the second draft before the year's end, 
the LDP intends to examine all chapters in the original draft by 
around the spring and then start tidying up the points at issue. A 
party executive said: "The Democratic Party of Japan has not 
earnestly discussed constitution revision because of the Social 
Democratic Party's presence in the government, so we will be able to 
underscore a difference in our stance from the other side's, with an 
eye on the upcoming House of Councillors election." 
 
In drafting a second revised constitution, the LDP focuses on local 
autonomy, national security, and future options for the two-chamber 
system. Regarding local autonomy, some have insisted on the need to 
specify more detailed roles of the central government, based on the 
state of progress in decentralization. On the security portion, 
whether to stipulate the approval of the use of the right to 
collective self-defense is expected to be the point of contention. 
In discussing a review of the two-chamber system, the focus is 
likely to be on reviews of the functions divided between the upper 
and lower houses and the rules on deliberations on legislation. 
 
15) Nakai to double as state minister for disaster management; 
increase in number of senior vice-ministers and parliamentary 
secretaries confirmed 
 
ASAHI (Page 4) (Full) 
January 13, 2010 
 
The Hatoyama cabinet confirmed at its cabinet meeting yesterday a 
policy direction to increase the number of senior vice-ministers by 
three and the number of parliamentary secretaries by 12 with the aim 
of strengthening the politician-led decision-making system. The 
cabinet plans to implement the new system in the next fiscal year if 
related bills clear the Diet in the upcoming regular session. 
 
Specifically, the Cabinet Secretariat will have one more senior 
vice-minister (who will double as deputy chief cabinet secretary and 
as National Policy Unit chief) and the Cabinet Office will have two 
more. The cabinet will also assign seven more parliamentary 
secretaries to the Cabinet Office and one each to the Cabinet 
Secretariat, Justice Ministry, Health and Welfare Ministry, Land and 
Transport Ministry, and Environment Ministry. 
 
The cabinet has also decided to make changes to the duties of some 
cabinet ministers. Under the new system, National Public Safety 
Commission Chairman Hiroshi Nakai will double as minister of state 
for disaster management, a position concurrently held by Land and 
Transport Minister Seiji Maehara. Although Deputy Prime Minister 
Naoto Kan has left the post of state minister for national policy to 
serve as finance minister, he will continue to be responsible for 
the nation's growth strategy. 
 
16) Kan continue to be responsible for growth strategy; Sengoku to 
 
TOKYO 00000074  009 OF 009 
 
 
be in charge of employment and global warming 
 
NIKKEI (Page 2) (Full) 
January 13, 2010 
 
The government decided yesterday on new assignments for some cabinet 
ministers due to Deputy Prime Minister Naoto Kan's assumption of 
office as finance minister. Kan will continue to be in charge of 
mapping out specific measures to achieve the government's growth 
strategy of increasing the nation's nominal GDP to 650 trillion yen 
in fiscal 2020. Yoshito Sengoku, who will serve as state minister 
for national policy and administrative reform, will also 
concurrently serve as state minister in charge of employment 
measures and global warming to replace Kan. National Public Safety 
Commission Chairman Hiroshi Nakai will concurrently serve as state 
minister for disaster management, the post served by Land and 
Transport Minister Seiji Maehara. 
 
Although the national policy office will continue formulating 
specific plans for the government's growth strategy, the work will 
be kept under the control of Kan because his aides have been deeply 
involved in the process. In a press conference yesterday, Kan made 
the following comment about the medium-term fiscal framework that 
envisages a multiple-year budget in FY 2011-2013: "Mr. Sengoku will 
play a central role in determining the framework. I am going to work 
closely with him." Kan thus expressed a plan to work jointly with 
Sengoku. 
 
17) Former Lower House member Ono to leave LDP 
 
NIKKEI (Page 2) (Full) 
January 13, 2010 
 
Former House of Representatives member Jiro Ono of the Liberal 
Democratic Party (LDP) submitted his resignation to Secretary 
General Tadamori Oshima at the party headquarters on Jan. 12. He 
told reporters: "I joined the party intending to build a political 
party for reform. The present state of the LDP is very different 
from this image." 
 
18) LDP parliamentary group submits three lawmakers' letters of 
secession from party 
 
ASAHI (Page 4) (Full) 
January 13, 2010 
 
By Jan. 12, the Liberal Democratic Party/Japan Renaissance Party, a 
parliamentary group in the House of Councillors, submitted to Upper 
House President Satsuki Eda the letters of secession from the LDP 
written by Kotaro Tamura, Tamon Hasegawa, and Gotaro Yoshimura. The 
three lawmakers have now become independents. As a result, the 
landscape of the Upper House now looks as follows: 
 
Democratic Party of Japan/New Ryokufu-kai/People's New Party/New 
Party Nippon - 120 seats; LDP/Japan Renaissance Party - 82; New 
Komeito - 21; Japanese Communist Party - 7; Social Democratic 
Party/Pro-Constitution League - 5; and Independents - 7. 
 
ROOS