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UNCLAS SECTION 01 OF 10 TOKYO 000211 
 
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 02/03/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Assistant Secretary Campbell's visit: 
3) Campbell meets with Ozawa (Nikkei) 
4) Campbell: Existing plan is best option (Nikkei) 
5) Excerpts of Campbell's Nikkei interview (Nikkei) 
6) Campbell: I can't forecast the situation in May (Asahi) 
7) Excerpts of Campbell's Asahi interview (Asahi) 
 
Futenma: 
8) Hatoyama rejects continued use of Futenma airfield (Yomiuri) 
9) Government/ruling coalition team to visit Guam (Mainichi) 
 
Defense & security: 
10) Japan informs US of results of "secret accords" investigation 
(Yomiuri) 
11) Japan, U.S. begin preparation of joint statement on deepening 
the bilateral alliance (Akahata) 
 
Foreign relations: 
12) Okada to visit South Korea from Feb. 10 (Mainichi) 
13) Japan, U.S. to cooperate in space use (Asahi) 
 
Trade & economy: 
14) Deputy USTR Marantis urges Japan take steps to expand eco-car 
tax reduction program (Yomiuri) 
15) SDP, PNP agree on 30 million yen ceiling on deposits at JP Bank 
(Yomiuri) 
 
Politics: 
16) Prosecutors considering not indicting Ozawa (Asahi) 
17) Shady land deal casting shadow over "Ozawa brand" bills in Diet 
(Nikkei) 
18) Excerpts of Diet debate (Yomiuri) 
19) Sengoku: Revision of National Civil Service Law might include 
demotion of vice minister to department director (Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Prosecutors considering not indicting Ozawa for failure to report 
400 million yen 
 
Mainichi: 
Tokyo District Prosecutors Office considering not indicting Ozawa 
due to insufficient evidence 
 
Yomiuri: 
50 sections of 37 expressways to become toll free from June 
 
Nikkei: 
Capital tie-up between Pioneer and Mitsubishi Chemical for joint 
development of organic electroluminescent lighting 
 
Sankei: 
Suspect Ishikawa testifies non-reporting of 400 million yen in 
political fund accounting "was approved by Ozawa" 
 
TOKYO 00000211  002 OF 010 
 
 
 
Tokyo Shimbun: 
50 sections of 37 expressways to become toll free from June 
 
Akahata: 
Chairman Shii proposes three policy shifts to protect livelihoods at 
Diet interpellation 
 
2) EDITORIALS 
 
Asahi: 
(1) Lay judge system: Move forward based on experience of past six 
months 
(2) U.S. Quadrennial Defense Review: Strengthen cooperation to deal 
with diverse threats 
 
Mainichi: 
(1) U.S. defense policy: Take note of changes in Asia 
(2) Japan-China study of history: One step forward; move further 
ahead 
 
Yomiuri: 
(1) U.S. defense program: Increasing importance of strengthening 
Japan-U.S. alliance 
(2) Bullet train problems more serious because they were caused by 
simple mistakes 
 
Nikkei: 
(1) Improve the environment for child rearing by unifying 
administration of kindergartens and day care centers 
(2) Tasks for reappointed FRB chairman 
 
Sankei: 
(1) U.S. Quadrennial Defense Review: Japan should share its 
perception of China 
(2) Toyota: Strengthen crisis management to restore trust 
 
Tokyo Shimbun: 
(1) JAL's new management: Wishful restructuring plan will result in 
downturn 
(2) Sumo Association: Accept the "popular will" 
 
Akahata: 
(1) PM Hatoyama's responses in Diet: No sense of political or moral 
responsibility 
 
3) Ozawa meets with U.S. Assistant Secretary of State Campbell 
 
NIKKEI (Page 2) (Full) 
February 3, 2010 
 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa met 
yesterday with U.S. Assistant Secretary of State Curt Campbell in 
the Diet building. They apparently exchanged views on the relocation 
of the U.S. Marine Corps' Futenma Air Station in Okinawa Prefecture 
and other issues. After the meeting, Campbell told reporters: "We 
exchanged views on general Japan-U.S. relations." The meeting was 
held at the U.S. side's request. In accordance with Ozawa's wish, a 
press briefing was not held. 
 
4) Campbell: "The current Futenma relocation plan is the best 
option 
 
TOKYO 00000211  003 OF 010 
 
 
 
NIKKEI (Page 3) (Full) 
February 3, 2010 
 
In an interview with the Nikkei in Tokyo yesterday, visiting U.S. 
Assistant Secretary of State for East Asian and Pacific Affairs Kurt 
Campbell said in reference to the relocation of the U.S. Marine 
Corps Futenma Air Station in Okinawa: "We believe the existing 
bilateral agreement is the best approach." He also reiterated the 
U.S. stance of observing developments in the Hatoyama 
administration, which is studying the relocation issue from 
scratch. 
 
Campbell remarked: "The U.S. has no intention of dictating to its 
ally Japan." He then indicated Washington's willingness to continue 
dialogue with Japan up until the end of May, the deadline for Prime 
Minister Yukio Hatoyama to make a final decision, saying: "We would 
like to fully explain why the current plan is the right option." 
 
After attending a Japan-U.S. Security Subcommittee (SSC) meeting 
Campbell told reporters: "I talked with friends in the Foreign 
Ministry and the Democratic Party of Japan. They explained that 
internal deliberations are still going on. ... I am willing to 
listen to their views." But he added: "We have the right to consider 
that any other options (than the existing plan) are meaningless." 
 
With respect to the Marine Corps in Okinawa, Assistant Secretary 
Campbell emphasized: "They are playing a very important role." He 
went on to say: "The U.S. will move some functions of the corps to 
Guam, but it is strategically significant to leave its main part in 
Okinawa. ... I expect Japanese officials responsible for this issue 
will come to this conclusion. 
 
5) Excerpts of remarks by U.S. Assistant Secretary of State 
Campbell 
 
NIKKEI (Page 8) (Full) 
February 3, 2010 
 
(Futenma and other issues) 
 
We believe that the existing Futenma plan agreed on between the 
Japanese and U.S. governments is the best approach. Even so, the 
U.S. has no intention of dictating orders to its ally Japan. We are 
willing to respond to the views (of the Hatoyama administration) in 
a flexible manner and listen to them. Meanwhile, we also maintain 
the right to consider any plans other than the current plan to be 
meaningless. 
 
The Marine Corps in Okinawa is playing a very important role in 
maintaining the U.S. forces' deterrence and capability to carry out 
strategic operations. Some of its functions will be moved to Guam, 
but it is strategically significant to leave its key part in 
Okinawa. I hope the concerned Japanese officials will come to this 
conclusion. 
 
This year marks the 50th anniversary of the signing of the revised 
Japan-U.S. Security Treaty. On this occasion, the U.S. would like to 
enhance cooperation with Japan in the areas of the environment, 
energy, cyber security, and issues related to China. 
 
(U.S.-North Korea, U.S.-China relations) 
 
TOKYO 00000211  004 OF 010 
 
 
 
I have no plan to visit North Korea or to meet (senior North Korean 
officials) at this point in time. If North Korea officially promises 
definitely to return to the Six-Party Talks, we might arrange a 
meeting in the U.S. Close cooperation among Japan, the U.S. and 
South Korea is vital. (U.S.-China relations) have become more 
strained over our plan to sell weapons to Taiwan and other issues. I 
do not think that China's military threat has decreased. 
 
(Next-generation fighter (FX)) 
 
The U.S. has promised Japan that it will provide information (on the 
issue of introducing the FX) as much as possible. We would like to 
help Japan to be able to make the best choice. (The stealth fighter 
F-22) is not subject to information disclosure. (In selecting the 
FX,) I think the aspect of "production-sharing" will be taken into 
consideration more than before. 
 
6) Campbell: U.S. cannot predict what the situation will be like in 
May regarding Futenma issue 
 
ASAHI (Page 4) (Full) 
February 3, 2010 
 
Yoichi Kato, senior writer 
 
Visiting U.S. Assistant Secretary of State Kurt Campbell gave an 
interview to the Asahi Shimbun at the U.S. Embassy in Tokyo 
yesterday. "We cannot predict what the situation will be like at the 
final stage in May," Campbell said about the issue of relocating the 
U.S. Marine Corps' Futenma Air Station, indicating the U.S. 
government's inability to forecast future developments. 
 
Campbell, who is in charge of Japan policy in the United States, 
also said, "We must deal with the matter flexibly by responding to a 
call for dialogue," while emphasizing that the existing agreement is 
the best. He was apparently taking care not to give the impression 
that the United States will unilaterally force the existing 
agreement on Japan. 
 
At the same time, Campbell simply said that he "cannot comment" on 
Foreign Minister Katsuya Okada's reference to the possibility of the 
continued use of Futenma. He also noted: "(The Japanese side) makes 
new remarks and proposals almost daily. What we want is an orderly 
consultation process in which senior Japanese officials raise 
questions and proposals and we look into them jointly," expressing 
discontent with the current situation in which various ideas are 
being floated in the government and the ruling coalition. 
 
7) Gist of remarks by Assistant Secretary of State Campbell 
 
ASAHI (Page 4) (Full) 
February 3, 2010 
 
(Futenma relocation issue) 
 
The results of the mayoral election in Nago, Okinawa Prefecture, 
have made the situation more difficult. Decisions on critical issues 
like this that concern the Japan-U.S. alliance must be made at the 
government level. At today's Japan-U.S. talks of foreign and defense 
affairs officials at the director general level, we emphasized that 
the U.S. government still believes that the existing agreement is 
 
TOKYO 00000211  005 OF 010 
 
 
the right approach. At the same time, we are trying to take the 
delicate approach of preserving flexibility by lending an ear to the 
Japanese side's views and responding to a call for a dialogue. But 
the fact is we cannot predict what the situation will be like at the 
final stage in May. 
 
(Talks for deepening the bilateral alliance) 
 
Why will the Japan-U.S. alliance continue to be vital? It needs a 
broader definition. We want to deepen discussions on problems in the 
Asia-Pacific region as well as on new global issues, such as cyber 
security and global warming. 
 
(Policy toward China) 
 
(On the Japan-U.S.-China equilateral triangle argument in the 
Democratic Party of Japan), an isosceles triangle would be a better 
approach. The United States and Japan are allies, and their 
respective relations with China are fundamentally different. But we 
support moves to promote closer ties between Japan and China for 
they will serve the interests of the United States. 
 
8) Prime Minister Hatoyama rules out possibility of Futenma base 
remaining in current location 
 
YOMIURI (Page 4) (Full) 
February 3, 2010 
 
Asked by reporters at his office (Kantei) about Foreign Minister 
Katsuya Okada's comment implying the possibility of the U.S. 
military continuing its current use of Marine Corps Futenma Air 
Station in Okinawa, Prime Minister Yukio Hatoyama ruled out the 
possibility, saying: "Moving the Futenma airfield from its current 
location to elsewhere is the original purpose. If in the end the 
Futenma base remained in its current location, we would have failed 
to have accomplished our goal." 
 
9) Base panel to visit Guam 
 
MAINICHI (Page 3) (Full) 
February 3, 2010 
 
The "Okinawa Base Issues Review Committee," a panel of the 
government and the ruling parties, held its fifth meeting yesterday 
at the prime minister's office over the question of where to 
relocate the U.S. military's Futenma airfield from its current 
location in Ginowan, Okinawa Prefecture, and decided to visit U.S. 
military bases on Guam in mid-February. The group of panel members 
visiting Guam will be headed by Deputy Chief Cabinet Secretary 
Yorihisa Matsuno and will be made up of panel members from the 
Social Democratic Party and the People's New Party and senior vice 
foreign and defense ministers. The panel will ask the U.S. 
government to accept the planned visit. 
 
The government has explained that the planned visit to Guam is 
intended to confirm where 8,000 Okinawa-based U.S. Marines will be 
transferred in accordance with an intergovernmental agreement that 
was reached between Japan and the United States in 2006. However, 
the SDP regards Guam as a likely candidate for the relocation of 
Futenma airfield. "We'd like to see if they can accept (Futenma 
relocation)," Tomoko Abe, chief of the SDP's policy board, told 
reporters after the meeting, thereby indicating a difference from 
 
TOKYO 00000211  006 OF 010 
 
 
the government's explanation. 
 
10) Government reports to U.S. on investigation into secret nuclear 
accords at Security Subcommittee meeting 
 
YOMIURI (Page 2) (Full) 
February 3, 2010 
 
The government gave a formal report to the U.S. side on the 
investigation process relating to the "secret agreements" between 
the two countries on the introduction of nuclear arms and other 
matters on Feb. 2. Kazuyoshi Umemoto, director general of the North 
American Affairs Bureau of the Ministry of Foreign Affairs, and 
other officials made the report to Assistant Secretary of State Kurt 
Campbell and other U.S. officials at the bilateral Security 
Subcommittee meeting of bureau chief level officials in charge of 
foreign affairs and defense. 
 
The report covered the status of the investigation and prospects for 
the future. It can be said that the Japanese side has begun the 
process of dealing with the aftermath of the investigation to make 
sure that even if the existence of past secret nuclear agreements is 
confirmed, it will not have an adverse effect on Japan-U.S. security 
policy, including the U.S.'s nuclear deterrence policy or the 
"nuclear umbrella," in the future. 
 
11) Japan, U.S. begin to create joint document for deepened 
alliance 
 
AKAHATA (Page 2) (Full) 
February 3, 2010 
 
The Japanese and U.S. governments held a meeting of the "Japan-U.S. 
Security Subcommittee" (SSC) yesterday at the Foreign Ministry, with 
working-level officials for foreign affairs and defense attending 
from the two governments, and began to create a joint document to 
deepen the bilateral alliance in response to the 50th anniversary of 
the current bilateral security treaty. The two governments are 
aiming to reach an agreement this year after settling the pending 
issue of relocating the U.S. military's Futenma airfield from its 
current location in Ginowan, Okinawa Prefecture. Concerning the 
Futenma issue, the Japanese government explained that it would 
decide by the end of May on where to relocate the Futenma airfield 
facility. 
 
However, the U.S. government reiterated its position calling for the 
Japanese government to implement the current plan to build an 
alternative facility in a coastal area of Camp Schwab, a U.S. 
military base located in Nago, Okinawa Prefecture. 
 
The SSC meeting was held with the participation of Foreign Ministry 
North American Affairs Bureau Director General Kazuyoshi Umemoto and 
Defense Ministry Defense Policy Bureau Director General Nobushige 
Takamizawa from the Japanese government and Assistant Secretary of 
State for East Asian and Pacific Affairs Campbell and Assistant 
Secretary of Defense for Asian and Pacific Affairs Gregson from the 
U.S. government. 
 
After the meeting, Campbell told reporters on the Futenma issue: "We 
clearly conveyed that the current plan is the best option. We will 
consult closely with Japan." 
 
 
TOKYO 00000211  007 OF 010 
 
 
12) Foreign Minister Okada to visit South Korea on Feb. 10 
 
MAINICHI (Page 5) (Full) 
February 3, 2010 
 
Foreign Minister Katsuya Okada announced yesterday at a press 
conference that he will visit South Korea on Feb. 10. The purpose of 
his trip to Seoul is to make advance arrangements for a visit to 
Japan by President Lee Myung-bak, which is slated for the first half 
of this year. Okada will stay in Seoul until Feb. 11 and exchange 
views with Foreign Affairs and Trade Minister Yu Myung-hwan on such 
issues as bilateral economic cooperation between the two countries 
and North Korea. 
 
13) Japan, U.S. agree to cooperate in space exploitation 
 
ASAHI (Page 4) (Abridged) 
February 3, 2010 
 
Japan and the United States held an intergovernmental consultative 
meeting of working-level officials for foreign affairs and defense 
yesterday to deepen the bilateral alliance. In the meeting, the 
Japanese and U.S. governments agreed to step up bilateral 
cooperation in such areas as space exploitation. However, the gap 
over the Futenma issue was not closed and could become an obstacle 
to discussions. 
 
In the meeting, Japanese and U.S. officials confirmed that they will 
consult on deepening the alliance in four specific areas: extended 
deterrence (nuclear umbrella), information security, space 
exploitation, and missile defense. According to U.S. Assistant 
Secretary of State Campbell, they also discussed strengthening 
cooperation over China. 
 
14) U.S. calls for expanded application of eco-car subsidy system 
 
YOMIURI (Page 2) (Full) 
February 3, 2010 
 
Japan-U.S. working level talks to discuss Japan's 
environmentally-friendly vehicle (eco-car) subsidy system were held 
in Tokyo on Feb. 1. In this connection, it was learned on Feb. 2 
that Deputy U.S. Trade Representative Demetrios Marantis during the 
meeting strongly urged the Japanese government to adopt additional 
measures, such as a review of Japan's fuel efficiency measurement 
law, which will lead to an increase in the number of U.S. vehicles 
eligible for the program. The Japanese side expressed its intention 
not to comply with the request. However, it now appears possible 
that the eco-car issue will develop into a trade issue between Japan 
and the U.S. 
 
The government on Jan. 19 announced a policy of easing the 
conditions for eligibility for the eco-car subsidy program targeting 
imported cars. It was previously mandatory for the U.S. to measure 
the fuel efficiency of Japan-bound vehicles within Japan. However, 
as a new policy, Japan approved the measurement of the fuel 
efficiency of such vehicles in the U.S. 
 
Concerning the easing of the policy, in response to the Japanese 
government's decision to adopt a method of measuring fuel efficiency 
based on urban-area driving, Marantis asked the Japanese side to 
adopt a method of measuring fuel efficiency that combines fuel 
 
TOKYO 00000211  008 OF 010 
 
 
efficiency for urban-area driving and for highway driving. This is 
because if fuel-efficiency is measured based on combined driving 
conditions, the measurement will show better fuel efficiency because 
highway driving accounts for 60 percent to 70 percent of the total 
driving distance, which increases the number of vehicles eligible 
for the subsidy. Referring to the strong intentions of the U.S. 
Congress, Marantis hinted at his determination to settle the matter 
as a political issue that goes beyond the working level, saying, 
"This is a political issue." 
 
15) SDP, PNP agree to raise upper limit of postal savings to 30 
million yen 
 
YOMIURI (Page 7) (Excerpt) 
February 3, 2010 
 
Social Democratic Party Secretary General Yasumasa Shigeno and 
People's New Party Secretary General Shozaburo Jimi on Feb. 2 held 
talks in Tokyo. During the meeting they agreed to raise the upper 
limit of deposits at Japan Post Bank (10 million yen per depositor) 
to 30 million yen in reviewing the postal privatization plan. They 
also agreed that the Japan Post Insurance subscription limit should 
be raised from the current 13 million yen to 50 million yen. The 
Democratic Party of Japan is also indicating a positive stance 
toward the idea of raising those limits. Chances are that 
discussions to raise the limits will accelerate. 
 
16) Prosecutors considering not indicting DPJ Secretary General 
Ozawa for failure to report of 400 million yen in political fund 
accounting 
 
ASAHI (Top play) (Abridged) 
February 3, 2010 
 
It was learned that the prosecutors are considering not indicting 
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa, who 
has been accused of violating the Political Funds Control Law (false 
reporting) in connection with the land deal involving Rikuzan-kai, 
his political fund management organization, due to insufficient 
evidence. 
 
The Special Investigation Division of the Tokyo District Prosecutors 
Office will continue to interrogate his three former secretaries, 
who have been arrested for violation of the Political Funds Law, 
until Feb. 4, the end of their detention period, and make a final 
decision on the criminal liability of the three secretaries and 
Ozawa. House of Representatives member Tomohiro Ishikawa, 36, 
Ozawa's former secretary who was in charge of administrative work, 
and Takanori Okubo, 48, his government-paid first secretary who was 
in charge of accounting, are expected to be indicted on Feb. 4. The 
degree of involvement of former secretary Mitsutomo Ikeda, 32, in 
this affair is apparently being studied carefully. 
 
17) Land purchase issue stalls "Ozawa-brand" bills on local suffrage 
for permanent foreign residents, political reform, etc. 
 
NIKKEI (Page 2) (Excerpts) 
February 3, 2010 
 
The violation of the Political Funds Control Law by Rikuzan-kai, 
Democratic Party of Japan Secretary General Ichiro Ozawa's fund 
management organization, in connection with its purchase of land is 
 
TOKYO 00000211  009 OF 010 
 
 
beginning to cast a shadow on bills set to be discussed during the 
current Diet session. Bills initiated by Ozawa to grant local 
suffrage to permanent foreign residents and on political reform are 
already beginning to lose momentum. 
 
Many DPJ members are against the bill to grant local suffrage to 
permanent foreign residents. However, Ozawa pledged to South Korea 
President Lee Myung Bak during a meeting with him that he would make 
efforts for passage of the bill, and has managed to stave off 
opposition to it. In response to Ozawa's intention, Prime Minister 
Yukio Hatoyama indicated his eagerness to submit the bill as a 
government-sponsored bill on Jan. 12. The bill has been 
characterized as a de facto "Ozawa-brand" bill. 
 
18) Gist of PM Hatoyama's responses on Futenma, Haiti aid, other 
issues at the Diet on February 2 
 
YOMIURI (Page 9) (Excerpts) 
February 3, 2010 
 
Manifesto 
 
We are in the process of implementing the specific policies included 
in the manifesto (campaign pledges), such as child allowances, 
income subsidies for farming households, and toll free expressways. 
It is also necessary to review the manifesto during the four years 
of the administration. We will continue to review revenues and 
expenditures thoroughly in and after FY2011 and do everything 
possible to secure revenue sources to realize the policies in the 
manifesto one by one. 
 
Futenma relocation 
 
The national government will be responsible for seeking the U.S.'s 
understanding and arriving at a conclusion by the end of May. I do 
not think that the Japan-U.S. relationship is in flux. Factors of 
uncertainty exist in Asia and the Pacific. The deterrence of U.S. 
Forces Japan (USFJ), including the U.S. forces in Okinawa, is 
important for Japan's security. It is unrealistic to demand the 
return (of the Futenma Air Station) without a replacement facility. 
 
Aid for Haiti 
 
We will be dispatching the Self-Defense Forces for UN peacekeeping 
operations (PKO) shortly. They will support the activities of NGOs 
positively. We would like to support the relief activities 
undertaken by many private companies and groups to help the victims 
of the major earthquake in Haiti based on the concept of the "new 
form of public sector." 
 
19) Administrative vice ministers might be demoted to department 
directors general-level posts 
 
NIKKEI (Page 2) (Full) 
February 3, 2010 
 
Yoshito Sengoku, state minister for national strategy and 
administrative reform, said at a press conference yesterday after 
the cabinet meeting: "We will look into" a bill amending the 
National Public Service Law, which the government is expected to 
submit to the current Diet session, based on the assumption that 
"there would be a possibility of "including a provision to demote 
 
TOKYO 00000211  010 OF 010 
 
 
administrative vice ministers to department directors general-level 
(bucho-kyu) posts. Sengoku had explained that when senior government 
officials were appointed, the government would appoint "vice 
ministers (jikan) and bureau directors general (kyokucho)" and 
"department directors general (bucho) and deputy directors genera 
(shingikan)," and that administrative vice ministers would be 
demoted to bureau directors general. 
 
ROOS