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UNCLAS SECTION 01 OF 10 TOKYO 000202 
 
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 02/02/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Futenma relocation: 
3) Okada says continued use of Futenma possible (Yomiuri) 
4) Alternative Futenma options to be decided by March (Mainichi) 
5) Gregson: Implementation of existing plan best option (Tokyo 
Shimbun) 
 
Defense & security: 
6) Cabinet to make on Feb. 5 decision on dispatch of SDF to Haiti 
(Nikkei) 
 
Politics: 
7) Ozawa mentions issue of resignation over Rikuzan-kai scandal "if 
held criminally liable" (Yomiuri) 
8) Excerpts of Diet debate (Yomiuri) 
 
Foreign relations: 
9) Gregson says Japan-U.S. relations not in crisis (Mainichi) 
10) Hatoyama says Japan, Mexico must break away from dependence on 
U.S. economy (Asahi) 
11) Campbell to meet with Ozawa today (Nikkei) 
 
Economy: 
12) GDP marks annualized growth of 4 PERCENT  (Mainichi) 
13) Japan, other Asian nations to unify export procedures (Nikkei) 
14) G-7 to discuss the yuan (Nikkei) 
15) JAL inaugurates new management setup (Yomiuri) 
16) JAL needs quick decision on tie-up partner (Asahi) 
17) Gov't to advocate liberalization by sector to APEC nations 
(Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Ozawa questioned again; says "if held criminally liable," he has 
"serious responsibility" 
 
Mainichi: 
Ozawa at news conference mentions possibility of resigning if 
indicted 
 
Yomiuri: 
Ozawa mentions issue of resignation over Rikuzan-kai scandal "if 
held criminally liable" 
 
Nikkei: 
Government draws up road map for greenhouse gas emissions reduction 
to achieve goal of 25 PERCENT  reduction 
 
Sankei: 
Ozawa questioned again; says "if held criminally liable," he has 
"serious responsibility," hinting at resigning as DPJ secretary 
general 
 
Tokyo Shimbun: 
Ozawa mentions issue of resignation for the first time, says he will 
 
TOKYO 00000202  002 OF 010 
 
 
resign if held criminally liable 
 
Akahata: 
Ozawa questioned again by Tokyo District Prosecutors Office's 
Special Investigation Division 
 
2) EDITORIALS 
 
Asahi: 
(1) Election of Takanohana as sumo association director: Powerful 
morning call on the sumo circles 
(2) Japan-China study of history: Distance from politics is 
important 
 
Mainichi: 
(1) Diet representative interpellations: Prime Minister's responses 
lack impact 
(2) Takanohana as new director of sumo association: Implement 
reforms desired by fans 
 
Yomiuri: 
(1) Japan-China joint study: Differences in interpretation of 
history brought to the forefront 
(2) Takanohana's election as sumo association director: Reform the 
sumo world under new leadership 
 
Nikkei: 
(1) Ozawa should also provide explanation in the Diet 
(2) China's military expansion stirring up new controversy 
 
Sankei: 
(1) Second questioning of Ozawa: Resignation from Diet is the way to 
take responsibility 
(2) Shooting at Japanese fishing boat: Firing at ship's hull cannot 
be overlooked 
 
Tokyo Shimbun: 
(1) Diet representative interpellations: It's a problem that "Ozawa 
dictatorship" has become a topic 
(2) Japan-China study of history: Start by examining the 
differences 
 
Akahata: 
(1) Afghanistan: Now is the time to shift to political peace 
 
3) Okada: U.S. military might continue to use Futenma 
 
YOMIURI (Page 2) (Full) 
February 2, 2010 
 
Foreign Minister Okada has implied the possibility of the U.S. 
military continuing its current use of Futenma airfield in Ginowan, 
Okinawa Prefecture, if the government finds it impossible to find an 
alternative site for its relocation. "This is not desirable, but if 
there is no other location, Futenma airfield could be left as is," 
Okada said in a press conference yesterday at the Japan National 
Press Club at Uchisaiwaicho in Tokyo. 
 
Prime Minister Hatoyama, however, had ruled out the option of 
continuing to use Futenma airfield. "We've never talked about 
anything like continued use," he said on Jan. 28. Hatoyama and Okada 
appear to be differing on the Futenma relocation issue. The Social 
 
TOKYO 00000202  003 OF 010 
 
 
Democratic Party and the People's New Party, currently allied with 
the ruling Democratic Party of Japan, are expected to react 
negatively. 
 
4) Examination committee on Futenma relocation to select candidate 
relocation sites by end of March 
 
MAINICHI (Page 1) (Full) 
February 2, 2010 
 
With regard to the relocation of the U.S. forces' Futenma Air 
Station (in Ginowan City, Okinawa), the "Okinawa base issues 
examination committee" of the government and the ruling parties 
(chaired by Chief Cabinet Secretary Hirofumi Hirano) began on Feb. 1 
coordination to decide on candidate relocation sites and report to 
Prime Minister Yukio Hatoyama by the end of March. The committee may 
possibly submit several proposals to the Prime Minister for him to 
make the final decision. The coordination process is expected to 
reach a critical stage before the government's deadline to decide on 
the relocation site toward the end of May. The committee is working 
to reach a conclusion at an early date in order to allow time for 
negotiations with the U.S. and the local government hosting the 
relocation site. 
 
Members of the committee from the ruling parties will submit their 
proposed relocation sites by the second week of February. Social 
Democratic Party (SDP) policy chief Tomoko Abe is asking the 
government to request that the U.S. forces accept the committee's 
inspection of Guam, which the SDP regards as the "most promising" 
relocation site. This issue is expected to be discussed at the 
committee's meeting on the afternoon of Feb. 2. People's New Party 
policy chief Mikio Shimoji is likely to propose the integration of 
the Futenma base with the U.S. forces' Kadena Air Base (straddling 
the towns of Kadena and Chatan and Okinawa City). 
 
5) Pentagon official urges Japan to implement current plan for 
Futenma relocation 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 2, 2010 
 
Visiting U.S. Assistant Secretary of Defense for Asian and Pacific 
Security Affairs Gregson has reiterated that it would be desirable 
to implement the current plan to relocate the U.S. military's 
Futenma airfield facility in Okinawa Prefecture to a coastal area of 
Camp Schwab, a U.S. military base located in the Henoko area of Nago 
City in the island prefecture. "This is the plan the Japanese and 
U.S. governments proposed after holding consultations for many 
years," he said in a speech delivered yesterday afternoon in Tokyo. 
 
6) SDF unit to be dispatched to Haiti on Feb. 5 
 
NIKKEI (Page 2) (Full) 
February 2, 2010 
 
The government decided yesterday to make a final decision on Feb. 5 
at a cabinet meeting on its plan to dispatch a Self-Defense Forces 
(SDF) engineering unit to earthquake-hit Haiti to join the UN 
peacekeeping operations (PKO). Defense Minister Toshimi Kitazawa 
will then issue an order on the 5th to dispatch the SDF unit. The 
SDF unit is expected to comprise about 530 members, mainly Ground 
Self-Defense Force personnel. 
 
TOKYO 00000202  004 OF 010 
 
 
 
7) Ozawa mentions resignation over land deal scandal "if held 
criminally liable" 
 
YOMIURI (Top play) (Abridged) 
February 2, 2010 
 
It was learned that Democratic Party of Japan Secretary General 
Ichiro Ozawa was questioned again by the Tokyo District Prosecutors 
Office's Special Investigation Division on Jan. 31 for violation of 
the Political Funds Control Law in relation to his fund management 
organization Rikuzan-kai's land purchase. This was revealed by Ozawa 
at his regular news conference held at the party headquarters on 
Feb. 1. Ozawa mentioned for the first time the question of his 
resignation if he is held criminally liable. 
 
Ozawa said at the news conference: "I think I will have very serious 
responsibility if I am held criminally liable." It is believed that 
he was hinting at his resignation as secretary general if he is 
indicted or otherwise held criminally liable over this scandal. 
 
He also said: "I have never received any illicit political donations 
or slush funds. In that sense, I do not expect to be held criminally 
liable." 
 
8) Excerpts of PM Hatoyama's responses to Diet interpellation 
 
YOMIURI (Page 5) (Excerpts) 
February 2, 2010 
 
Manifesto 
 
The implementation of some policies in the manifesto (campaign 
pledges) is being put off due to the 9 trillion yen shortfall in tax 
revenues. I have apologized sincerely to the people. The Democratic 
Party of Japan and the coalition government will implement the 
manifesto and the three-party policy agreement faithfully. We will 
seek the people's verdict on our accomplishments in this process in 
the next House of Representatives election. I do not think that the 
realization of the manifesto is "pork barrel spending." We will 
focus allocations on the high priority areas in overall expenditures 
and work for both economic growth and fiscal health. 
 
Local suffrage for permanent resident foreigners 
 
I have said in my previous responses that I am positive about this 
issue. I can understand that there are various opinions in the 
ruling and opposition parties about this critical issue that affects 
the very foundation of Japan's (political) system. The government 
will listen to the people's views and is in the process of sorting 
out the issues in preparation for submitting a bill. 
 
Abduction issue 
 
I do not regard the normalization of relations (with North Korea) as 
a foregone conclusion. As a government that seeks to "protect 
lives," we have pledged to resolve this issue as soon as possible. 
Along with strengthening the mechanisms for the collection and 
analysis of information, we will elicit concrete action from North 
Korea. 
 
Futenma relocation issue 
 
TOKYO 00000202  005 OF 010 
 
 
 
I will value the feelings of the people of Okinawa and also consider 
the issue from the security standpoint. I have no intention to 
procrastinate irresponsibly. I will make a decision by May based on 
three factors: selection (of a relocation site) based on an 
agreement among the three ruling parties, agreement (of the local 
government at the relocation site), and agreement of the U.S. side. 
 
Japan-U.S. alliance 
 
U.S. Forces Japan serve as a deterrent force that contributes to 
peace and stability in Asia and the Pacific, so they need to be 
maintained. Right now, I have shelved debate on a "security alliance 
without permanent stationing of troops," and this will not be 
discussed between Japan and the U.S. U.S. President Barack Obama and 
I have issued statements on our commitment to deepening the 
Japan-U.S. alliance in a form befitting the 21st century. 
 
Refueling mission in the Indian Ocean 
 
I do not deny that the mission contributed to the fight against 
international terrorism to a certain extent, but it is a fact that 
the frequency of refueling operations had been dwindling and the 
significance of the mission had diminished. We will continue to 
contribute actively to the international community's efforts to 
fight terrorism mainly through civilian aid (to Afghanistan). 
Japan's thinking is fully understood by the U.S. and the 
international community. 
 
JAL bailout 
 
The main reason for Japan Airlines' poor business performance is its 
high-cost structure resulting from the maintenance of unprofitable 
routes, possession of a large fleet of big aircraft, surplus 
personnel, and other factors. There had also been problems with 
aviation administration, such as with regard to the construction of 
unprofitable local airports. 
 
Income subsidy for farming households 
 
This is a mechanism to enhance productivity. A pilot project of 
income subsidy will be introduced for rice farmers. Full-scale 
implementation and farm products eligible for subsidy will be 
further discussed. We will extensively increase the number of farm 
products other than rice. 
 
9) Japan-U.S. ties not in crisis: Pentagon official 
 
MAINICHI (Page 7) (Full) 
February 2, 2010 
 
Visiting U.S. Assistant Secretary of Defense Gregson delivered a 
speech yesterday in Tokyo at the Japan Institute of International 
Affairs, in which he referred to the pending issue of relocating the 
U.S. military's Futenma airfield in Ginowan, Okinawa Prefecture. 
"This is only a part of the wide-ranging relations between our two 
countries," Gregson said in the speech. "Our bilateral relationship 
is not in a 'crisis' situation like what is being reported on," he 
added. Meanwhile, Prime Minister Yukio Hatoyama promised in his Jan. 
29 policy speech before the Diet to decide by the end of May on 
where to relocate Futenma airfield. In this regard, Gregson said the 
United States would wait for Hatoyama to make a decision. 
 
TOKYO 00000202  006 OF 010 
 
 
 
Concerning the relocation of Futenma airfield, Gregson said Japan 
and the United States should "work together" on the issue and the 
United States would not unilaterally force this issue on Japan. He 
also referred to an intergovernmental agreement reached between 
Japan and the United States in 2006 to relocate the Futenma airfield 
to a coastal area of Camp Schwab, a U.S. military base located in 
the Henoko area of the island prefecture's northern coastal city of 
Nago. "The Japanese and U.S. governments at the time thought it was 
the best option," Gregson said. 
 
In addition, as a way of deepening the Japan-U.S. alliance, Gregson 
proposed establishing a legal framework in order for U.S. forces and 
the Self-Defense Forces to act in concert in dealing with natural 
disasters like typhoons and earthquakes. Also, in connection with 
the Obama administration's advocacy of "a world without nuclear 
weapons," Gregson implied that a nuclear deterrent would be 
unnecessary against the nonnuclear weapons of mass destruction. "We 
think we will be able to prevail on the Korean Peninsula without 
nuclear weapons (against North Korea's biochemical attacks)," he 
said. 
 
10) Prime Minister Hatoyama: Departure from dependence on U.S. on 
economic front 
 
ASAHI (Page 4) (Full) 
February 2, 2010 
 
Prime Minister Yukio Hatoyama stated yesterday at a joint press 
conference with Mexican President Filipe Calderon after their 
meeting: "Both Mexico and Japan have relied on the United States on 
the economic front. Believing that we should break away from this 
situation and need to strengthen bilateral trade and economic ties 
with Asia, we now share the perception that it is very important to 
further develop the economic partnership agreement." 
 
Hatoyama perhaps thought that his comment could be taken as making 
light of the U.S., because he immediately said: "I mean that we will 
deepen exchanges with Asia based on the perception that the United 
Sates is the most important partner of the two countries." In their 
meeting, the two leaders agreed to strengthen cooperation for the 
success of the 16th session of the Conference of the Parties to the 
UN Framework Convention on Climate Change (CPO16), which will take 
place in Mexico this year. They released a joint statement, which 
includes the above point. 
 
11) DPJ's Ozawa to meet today with U.S. Assistant Secretary of State 
Campbell 
 
NIKKEI (Page 2) (Full) 
February 2, 2010 
 
The Democratic Party of Japan (DPJ) announced yesterday that its 
Secretary General Ichiro Ozawa will hold talks on Feb. 2 with U.S. 
Assistant Secretary of State (for East Asian and Pacific affairs) 
Kurt Campbell in the Diet building. The two are expected to exchange 
views on the issue of where to relocate the U.S. Marine Corps' 
Futenma Air Station in Okinawa Prefecture. 
 
12) Nation's GDP estimated to mark an annualized 4 PERCENT  growth 
in Oct.-Dec.quarter owing to brisk personal consumption 
 
 
TOKYO 00000202  007 OF 010 
 
 
MAINICHI (Page 4) (Excerpts) 
February 2, 2010 
 
Eleven major private research institutes have formulated their 
estimates for the growth rate of the nation's gross domestic product 
(GDP) for the October-December 2009 quarter that will be announced 
by the Cabinet Office on Feb. 15. On average, an annualized rate of 
actual growth excluding the impact of price fluctuations is expected 
to mark a 4 PERCENT  increase, showing the third consecutive 
quarterly rise. Helped by growth in exports mainly to Asia in 
addition to brisk personal consumption, the October-December quarter 
is expected to see growth greater than that in the July-September 
quarter (over 1.3 PERCENT ). 
 
All the research institutes estimate positive private consumption, 
but private consumption was still sluggish excluding such products 
as automobiles and televisions, according to BNP Paribas Securities. 
Once policies lose their effectiveness, consumption might slow down. 
Eight institutes estimate that capital investment increased for the 
first time in four quarters. At the same time, the Nomura Securities 
Financial and Economic Research Center and other institutions think 
it is too early to conclude that (companies) have begun making 
(investments) actively. 
 
13) 16 Asian nations to unify export rules, with eye on free trade 
zone 
 
NIKKEI (Page 3) (Excerpts) 
February 2, 2010 
 
Sixteen countries, including Japan, China, South Korea and the 
Association of Southeast Asian Nations (ASEAN) members, will begin 
discussing unifying the rules and procedures for certifying the 
origin of exported products. The aim of this move is to reduce 
administrative burdens for exporters that are doing business in 
multiple countries in Asia and to promote trade in the region. The 
Japanese government sees the establishment of unified rules as a 
first step toward creating a free trade zone encompassing the 16 
countries. 
 
The 16 countries will aim at introducing a unified rule of origin. 
Under bilateral free trade agreements (FTA), special low tariffs on 
traded goods are set, so it is crucial to take procedures to certify 
that traded goods were produced domestically in an effort to prevent 
goods produced in duty-evading third countries from being 
exchanged. 
 
In Asia, Japan, China and South Korea each have concluded separate 
FTAs with ASEAN, but their rules and procedures for affirming a 
product's origin vary according to agreements. For instance, trade 
pacts signed between Japan and partner nations set the rate of 
domestically produced parts at about 40 PERCENT  of the finished 
goods. But this percentage varies according to the agreement. In 
Japan, the Chamber of Commerce and Industry issues certificates of 
product origin, but in some countries, exporting firms themselves 
provide the certificate. 
 
14) G-7 meeting to discuss China's yuan policy 
 
NIKKEI (Page 5) (Excerpts) 
February 2, 2010 
 
 
TOKYO 00000202  008 OF 010 
 
 
Group of Seven (G-7) finance ministers and central bank governors 
will meet in Iqaluit, northern Canada, on Feb. 5-6. China's yuan 
policy will be placed high on the agenda, with the correction of 
global trade imbalances as the main theme. In addition, the 
participants will discuss U.S. President Barack Obama's proposal for 
new limits on the size and activities of big banks. The aim is to 
iron out differences among industrialized countries prior to a Group 
of 20 (G-20) summit meeting, in which China and other developing 
countries will participate. Although a joint statement is usually 
issued in winding up a G-7 meeting, the upcoming meeting will likely 
forgo a statement. 
 
Japan cautious about Obama proposal for new bank rules 
 
President Obama's move to tighten financial regulations is likely to 
take center stage in the G-7 meeting. Finance Minister Naoto Kan 
commented on the proposal: "I understand the President's intention 
to restrict banks from handling risky commodities. ... But we need 
to keep close tabs on future developments so that the rules will not 
have a severe impact on Japanese banks" due to a drop in stock 
prices. 
 
In the U.S. and European countries, there are strong reactions to 
exorbitant executive pay at banks. French President Nicolas Sarkozy 
expressed his support for the U.S. proposal. But Kan remains 
cautious, remarking: "I do not think that Japan should follow the 
U.S. move to curb big banks' activities." 
 
15) JAL's new management launched 
 
YOMIURI (Page 1) (Excerpts) 
February 2, 2010 
 
Japan Airlines, which is now in the process of corporate 
reconstruction under the Corporate Rehabilitation Law, on Feb. 1 
launched a new management team with Kazuo Inamori (78) as chairman 
and Masaru Onish as president. The carrier will tackle the difficult 
challenge of achieving a balance between corporate downsizing and a 
quick recovery of profits in a three-year period, during which the 
carrier can receive financial assistance from the Enterprise 
Turnaround Initiative Corporation of Japan (ETIC). The 
government-backed corporate turnaround body will take the lead in 
the reconstruction of JAL. 
 
Meeting the press in Tokyo, Chairman Inamori stressed that "if the 
business turnaround plan mapped out by ETIC and JAL is steadily 
implemented, it would be fully possible for the carrier to 
reconstruct itself." Concerning the carrier's management, he stated 
his goal: "I think JAL has had a very bureaucratic organization, 
based on the government-will-foot-the-bill mindset. I would like to 
change things such that the company takes an interest in calculation 
of profits and losses." 
 
He also indicated his stance of searching for ways for a corporate 
reconstruction that preserves JAL's international flight operations, 
saying: "I would like to manage the carrier in the form of 
developing both domestic and international flight operations." 
 
16) JAL rushing to reach decision on business partner 
 
ASAHI (Page 7) (Excerpts) 
February 2, 2010 
 
TOKYO 00000202  009 OF 010 
 
 
 
Shinichi Maruishi, Dallas; Toshihiko Ogata, Washington; Ikki 
Yamakawa 
 
Japan Airlines' new management structure, designed to rebuild the 
company, has gotten underway. One challenge the new management will 
face is the selection of a U.S. carrier to form a partnership with. 
In order for the carrier to recover its profitability, it will need 
to decide on a business partner and obtain anti-trust immunity 
(ATI). Delta Air Lines, the world's largest carrier, is highly 
likely to be picked as JAL's business partner. However, the carrier 
may find it difficult to obtain approval from the U.S. transport 
authority. 
 
Asked when JAL will select its business partner, President Masaru 
Onishi, who took office on Feb. 1, replied at a press conference, 
"As soon as possible." Concerning which candidate he is inclining to 
pick - Delta Air Lines or American Airlines, the current partner, 
Onishi simply said, "(My view on the two candidate carriers) is 
neutral. They have both merits and demerits." 
 
Tug-of-war between Delta and American 
 
Delta Air Lines and American Airlines have been competing to become 
JAL's business partner, proposing the provision of massive amounts 
of financial assistance to it since last fall. However, the 
Enterprise Turnaround Initiative Corporation of Japan (ETIC) and JAL 
do not plan to accept capital investment from either of the carriers 
in order to maintain leadership in the reconstruction process. They 
say they will select JAL's business partner based on which carrier 
will help JAL reconstruct itself and achieve growth. 
 
According to the reviews ETIC and JAL have conducted so far, Delta 
is the stronger candidate. If JAL joins the SkyTeam alliance, to 
which Air France and KLM, major European carriers belong, its flight 
network will be substantially expanded compared to if it remains in 
the OneWorld alliance led by American Airlines, according to a Delta 
executive. Many JAL officials are pinning high hopes on Americans 
and Europeans using JAL flights via SkyTeam member carriers' 
flights. Delta will reportedly shoulder the entire cost of JAL 
switching airline groups. 
 
In the meantime, American Airlines in January released its policy of 
guaranteeing annual income of 100 million dollars (approximately 9 
billion yen) for JAL's Japan-U.S. flights for three years. American 
Airlines is emphasizing that cooperation in terms of the operational 
system will lead to JAL's reconstruction, while stressing the risk 
of switching airline groups. 
 
U.S. transport authority files complaint 
 
However, ATI approval will not necessarily be granted smoothly. 
According to a diplomatic source, an official of the U.S. Department 
of Transport orally conveyed a complaint to the Japanese government, 
noting, "There is a possibility that the application for ATI status 
by Japanese and American carriers will not be granted." This 
announcement put a damper on the optimism spreading in Japan 
regarding ATI status. That is because Washington's stance is that 
the screening will be carried out based on the U.S. law without 
prior speculation. 
 
17) Government to advocate liberalization of specific areas in 
 
TOKYO 00000202  010 OF 010 
 
 
upcoming APEC forum in run up to building Free Trade Area of 
Asia-Pacific 
 
NIKKEI (Page 2) (Abridged slightly) 
February 2, 2010 
 
The government decided yesterday to advocate the economic 
liberalization of specific areas, such as investment and services, 
with the aim of building a Free Trade Area of the Asia-Pacific 
(FTAAP) during the summit of the Asia-Pacific Economic Cooperation 
(APEC) forum to be held in Yokohama in November. As the chair, Japan 
will first make a proposal at the APEC high-level administrative 
meeting to be held in Hiroshima in late February. This will be 
followed by full-fledged talks. 
 
The government wants to take the initiative in the FTAAP debate by 
taking advantage of the opportunity to serve as the chair of the 
APEC forum for the first time in 15 years. Given huge economic 
disparities among APEC member countries and regions, the government 
will encourage talks in specific areas to make it easier for member 
countries to take part with the aim of establishing the FTAAP. 
 
Besides the liberalization of investment and services, the 
government envisages the facilitation of physical distribution and 
the simplification of customs procedures by using IT (information 
technology). The government is aiming at a loose economic 
integration - rather than a legal framework - that is different from 
a free trade agreement (FTA) or an economic partnership agreement 
(EPA). Action programs for one to three years will be formulated by 
area. 
 
Discussions will also begin on expanding such existing trade 
liberalization frameworks as the North American Free Trade Agreement 
(NAFTA), the Association of Southeast Asian Nations (ASEAN), and the 
Trans-Pacific Strategic Economic Partnership Agreement (TPP). 
 
ROOS