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Viewing cable 10TOKYO223, JAPANESE MORNING PRESS HIGHLIGHTS 02/04/10

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Reference ID Created Released Classification Origin
10TOKYO223 2010-02-04 01:34 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO5710
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0223/01 0350134
ZNR UUUUU ZZH
P 040134Z FEB 10
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9188
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 1003
RUEHFK/AMCONSUL FUKUOKA 8662
RUEHOK/AMCONSUL OSAKA KOBE 2478
RUEHNAG/AMCONSUL NAGOYA 5715
RUEHKSO/AMCONSUL SAPPORO 9158
RUEHBJ/AMEMBASSY BEIJING 2939
RUEHUL/AMEMBASSY SEOUL 9620
RUCNDT/USMISSION USUN NEW YORK 8994
UNCLAS SECTION 01 OF 10 TOKYO 000223 
 
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 02/04/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Defense & security: 
3) Japanese Communist Party calls for unconditional return of 
Futenma airfield (Akahata) 
4) Gov't/ruling coalition team to visit Guam Feb. 10-11 (Mainichi) 
5) Return of "Kadena RAPCON" next month becomes uncertain (Tokyo 
Shimbun) 
 
Economy: 
6) METI to promote environmental industry (Asahi) 
7) Japan adds 8 U.S. car models to list for eco-car program 
(Yomiuri) 
 
Foreign relations: 
8) Okada meets with Japanese members of Japan-China friendship 
association (Nikkei) 
 
Environment: 
9) Household emission cuts to account for a maximum of 31 PERCENT 
of mid-term goal for greenhouse gas reductions (Asahi) 
 
Politics: 
10) Prime Minister's replies in Feb. 3 question-and-answer session 
at House of Councillors (Yomiuri) 
11) Decision not to indict Ozawa for failure to report 400 million 
yen today, to continue to serve as secretary general (Asahi) 
12) Civil service reform bill to allow reassignment of senior 
officials at prime minister's request, facilitate demotion of vice 
ministers (Mainichi) 
13) National Referendum Law not to allow voting from age 18 due to 
insufficient time to complete legal changes (Tokyo Shimbun) 
14) DPJ to expand involvement in policymaking of parliamentarians 
outside government (Asahi) 
15) PM calls for bill to establish organization to monitor human 
rights (Nikkei) 
16) DPJ to review manifest for Upper House election (Asahi) 
17) Coordination on JP Bank makes little headway (Yomiuri) 
18) Kamei calls for diverse JP Bank funding including U.S. Treasury 
notes (Asahi) 
19) Tanigaki in Chuo Koron: DPJ are foreign policy amateurs (Asahi) 
 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Decision not to indict Ozawa for failure to report 400 million yen 
today, to continue to serve as secretary general 
 
Mainichi: 
Civil service reform bill to allow reassignment of senior officials 
at prime minister's request, facilitate demotion of vice ministers 
 
Yomiuri: 
Ozawa not to be indicted in Rikuzan-kai scandal due to insufficient 
proof of conspiracy 
 
 
TOKYO 00000223  002 OF 010 
 
 
Nikkei: 
Mitsubishi Corporation, JGC, Ebara to collaborate in water treatment 
business 
 
Sankei: 
Ozawa not to be indicted over failure to report 400 million yen in 
political fund accounting 
 
Tokyo Shimbun: 
National Referendum Law not to allow voting from age 18 due to 
insufficient time to complete legal changes 
 
Akahata: 
General Secretary Ichita makes representative interpellation, calls 
for changing politics that threatens lives 
 
2) EDITORIALS 
 
Asahi: 
(1) Toll free expressways: Unacceptable even on a small scale 
(2) Bullet train power outage: Heighten conscientiousness on safety 
 
Mainichi: 
(1) Toll free expressways: Can this be considered a social 
experiment? 
(2) Child rearing vision: Make serious efforts to unify 
administration of kindergartens and day care centers 
 
Yomiuri: 
(1) Representative interpellations at both houses of the Diet: The 
Ozawa issue overshadows policy debate 
(2) Toll free expressways: Tax money can be spent elsewhere 
 
Nikkei: 
(1) Too many question marks in experiment on toll free expressways 
(2) U.S. defense strategy presses for deepening Japan-U.S. alliance 
 
Sankei: 
(1) Secretary General Ozawa: Impose a punishment acceptable to the 
people 
(2) Sumo Association reform: Breaking away from old ways is urgent 
task 
 
Tokyo Shimbun: 
(1) Complaints about Prius: Top priority is to find out the cause 
(2) Toll free expressways: Can this really be a "social 
experiment"? 
 
Akahata: 
(1) Representative interpellations at both houses of the Diet: Lives 
cannot be protected in this manner 
 
3) JCP calls for unconditional removal of Futenma air base in both 
Houses 
 
AKAHATA (Page 2) (Excerpts) 
February 4, 2010 
 
In a Diet session, Japanese Communist Party (JCP) Chairman Shii 
called for the unconditional withdrawal of the U.S. Marine Corps' 
Futenma Air Station in Okinawa, touching on the historical 
significance of the outcome of the Nago mayoral election. In the 
 
TOKYO 00000223  003 OF 010 
 
 
election, the candidate opposed to the existing relocation plan was 
elected. Shii's call had the power to overwhelm the House. 
 
Shii said: "The Okinawan people have been living in fear of U.S. 
soldiers and possible accidents, and have been exposed to danger. 
The government should stop imposing such suffering on the Okinawan 
people under the pretext of deterrence. ... Marines are not needed 
in Okinawa and in Japan." 
 
Defining the conditional return of the base as "an irresponsible and 
servile approach," Secretariat Head Ichida also criticized the 
argument for the continued presence of the base in the context of 
deterrence. 
 
Meanwhile, Prime Minister Yukio Hatoyama said: "It is impossible 
from a realistic point of view" to remove the base without 
condition, indicating the stance of sticking to the idea of 
returning the base conditionally, without providing any reason. 
Hatoyama also said: "The presence of Marines has worked effectively 
to deter enemies from invading Japan" and masked the fact that the 
Marine Corps is "an invasive force" as "an assault unit." 
 
4) Guam visit set for Feb. 10-11 
 
MAINICHI (Page 2) (Full) 
February 4, 2010 
 
The "Okinawa Base Issues Review Committee," a panel of the 
government and the ruling parties to discuss where to relocate the 
U.S. military's Futenma airfield facility from its current location 
in Ginowan, Okinawa Prefecture, met yesterday and decided to visit 
Guam on Feb. 10-11. During their visit to Guam, panel members will 
visit Andersen Air Force Base and will also observe joint training 
to be conducted around that time by the Air Self-Defense Force and 
U.S. forces. 
 
"They will visit there to see the airbase and its environs since 
8,000 troops will be moved (from the U.S. Marine Corps in Okinawa in 
the process of realigning the U.S. military presence in Japan)," 
Chief Cabinet Secretary Hirofumi Hirano told a press conference 
yesterday when asked about the purpose of the panel's planned visit 
to Guam. Hirano thus indicated that the panel's Guam visit is not 
premised on regarding Guam as a candidate location for the Futenma 
relocation. The panel will start full-fledged discussions after 
returning home from its Guam visit. 
 
5) Next month's return of Okinawa air control uncertain 
 
TOKYO SHIMBUN (Page 3) (Full) 
February 4, 2010 
 
The U.S. Kadena Air Base's radar approach control or RAPCON for 
short, a system controlling the air traffic of airspace over 
Okinawa's main island and its environs, is expected to be off the 
agenda for a meeting today of the Japan-U.S. Joint Committee due to 
the United States' own circumstances. The bilateral committee was 
expected to make a formal decision on returning RAPCON to Japan on 
March 11. "This might be revenge for the Futenma issue," a Japanese 
government official noted. 
 
Japan and the United States concurred in 2004 on transferring RAPCON 
within a timeframe of about three years. However, its return has 
 
TOKYO 00000223  004 OF 010 
 
 
been delayed and the two countries agreed over again in January 2008 
to transfer RAPCON this March. 
 
Late last year, the Office of the Secretary of Defense at the U.S. 
Department of Defense instructed the headquarters of U.S. Forces 
Japan through the commander-in-chief of the U.S. Pacific Command to 
coordinate with its Japanese counterparts on the procedures for the 
return of RAPCON. Thereafter, USFJ Commander Rice reported on the 
progress of coordination. However, there was no response from the 
Pentagon by yesterday, according to sources. 
 
The Foreign Ministry and the Land, Infrastructure and Transport 
Ministry have requested the U.S. Department of Defense and USFJ 
headquarters proceed to transfer RAPCON. However, USFJ headquarters 
said there was no instruction from the Pentagon. As it stands, the 
outlook for procedures remains unclear. 
 
The Kadena base's return of RAPCON has been set for March 11, a day 
when the aeronautical information publication is to be revised in an 
internationally unified 28-day cycle. However, its return will be 
further delayed should the Japan-U.S. Joint Committee fail to agree 
by mid-February on its return. 
 
6) METI to introduce subsidy program to attract eco-friendly 
businesses from abroad 
 
ASAHI (Page 5) (Excerpts) 
February 4, 2010 
 
The Ministry of Economy, Trade and Industry (METI) has decided to 
set up a new government-funded system to offer subsidies and 
low-interest loans with the aim of wooing environmentally-friendly 
businesses from overseas. Anticipating high growth in the 
environment industry, the U.S. and European countries have already 
stepped up their efforts to bring in foreign firms by providing 
subsidies. The new program is also intended to prevent an outflow of 
Japanese companies. 
 
The government earmarked approximately 30 billion yen in subsidies 
for the new program in the second supplementary budget for fiscal 
ΒΆ2009. For investment in plants and equipment to create low-carbon 
products in an effort to prevent global warming, up to 5 billion yen 
will be subsidized for each investment case. Lithium batteries for 
electric cars and light-emitting diodes (LED) are included among the 
low-carbon products. The condition for receiving subsidies that the 
output of targeted products at a new plant is boosted to over 1.5 
times more than the total amount of domestic shipments (in fiscal 
2008) of the product. It is unprecedented for the government to 
offer subsidies for corporate capital investment. 
 
7) Expanded eco-car subsidy program to cover eight U.S. models 
 
YOMIURI (Page 9) (Full) 
February 4, 2010 
 
The Ministry of Economy, Trade and Industry (METI) on Feb. 3 
announced 43 imported car models that have been included in the 
government's eco-car subsidy program as a result of its easing the 
conditions for the program. Of the 43 models, European cars account 
for 35 models from 10 brands. Only eight models from five U.S. 
brands, such as Cadillac and Hummer have been included despite 
strong requests from the U.S. government. No U.S. cars were eligible 
 
TOKYO 00000223  005 OF 010 
 
 
for the program before the introduction of the eased measures. Japan 
imported 800 units of those eight models in 2009. The government 
eased the conditions for the program on Jan. 19, after taking 
criticism from the U.S. Under the eased conditions, vehicles whose 
fuel efficiency was measured in the country of origin are also 
eligible for the subsidy program if the measurement is done using 
the prescribed method. 
 
8) Foreign Minister Okada: In-depth talks necessary for Japan-China 
friendship 
 
NIKKEI (Page 2) (Full) 
February 4, 2010 
 
Foreign Minister Katsuya Okada met yesterday with the Japanese 
members of the New Japan-China Friendship 21st Century Committee 
comprised of experts from Japan and China. During the meeting, Okada 
said, "It would be good for you to hold in-depth discussion" in 
order to deepen the friendship between the two countries. After 
replacing the panel members, the new committee will hold its first 
meeting in Beijing on Feb. 7. 
 
9) Environment Ministry's draft calls for reducing greenhouse gas 
emissions from households by up to 31 PERCENT  to attain 25 PERCENT 
-cut goal 
 
ASAHI (Page 3) (Excerpts) 
February 4, 2010 
 
The Environment Ministry yesterday revealed a draft roadmap intended 
to be used as a guide to attain the nation's mid-term goal of 
reducing greenhouse gas emissions by 25 PERCENT  from 1990 levels 
(by 30 PERCENT  from 2005 levels) by 2020. The government plans to 
finalize the roadmap in March. Of the 25 PERCENT , the draft notes 
that emissions should be cut by 15 PERCENT  to 25 PERCENT  through 
domestic measures. In the household section, from which emissions 
have been increasing, METI calls for reducing emissions by 18 
PERCENT  to 31 PERCENT  from 1990 levels or by 40 PERCENT  to 49 
PERCENT  from 2005 levels. 
 
Environment Minister Sakihito Ozawa presented the draft plan in a 
meeting yesterday of a senior vice minister-level study team tasked 
with working out measures to contain global warming. The ministry 
drafted the plan based on the estimates made by the National 
Institute for Environmental Studies. 
 
10) Prime Minister's replies in Feb. 3 question-and-answer session 
at House of Councillors 
 
YOMIURI (Page 13) (Excerpts) 
February 4, 2010 
 
Major points of the Prime Minister's replies: 
Q Continued use of the U.S. Marine Corps' Futenma Air Station must 
be avoided. 
Q Efforts will be made to submit to the Diet a bill to set up a 
human rights relief organization. 
 
& Futenma relocation issue 
 
The outcome of the mayoral election in Nago, Okinawa Prefecture, is 
a manifestation of popular will. In view of the dangerous situation 
 
TOKYO 00000223  006 OF 010 
 
 
at Futenma Air Station, a relocation site must be found as soon as 
possible. We must prevent the base from remaining in the current 
location permanently. Alleviating the burden is a desperate wish of 
the people in Okinawa. I will determine where to relocate the 
Futenma base by the end of May, seeking the understanding of 
municipal governments and the United States. Returning Futenma 
without a replacement facility is impossible in reality. 
 
& Japan-U.S.-China relations 
 
The United States and Japan are allies that share basic values. The 
Japan-U.S. alliance is a cornerstone for Japan to enhance its 
cooperative relations with other Asian countries, including China. I 
do not subscribe to the idea of striking a balance between the 
Japan-U.S. relationship and the Japan-China relationship. 
 
& Human rights relief organization 
 
There seems to be no end to human rights problems, including 
discrimination, in Japan, and there are many victims. We will make 
efforts to present to the Diet at an early date a bill intended to 
set up a human rights relief organization independent from the 
government. 
 
& Economic and fiscal management 
 
From a long-term perspective, we will turn Japan from a centrally 
governed state to a state of local autonomy. Efforts helping local 
areas to have independent revenue sources will help the country 
create a path to restoring fiscal health. An economic recovery will 
create jobs for small and medium-sized enterprises. We will extend 
support for research and development and the development of markets, 
giving a boost to small and medium-sized companies that are eager to 
develop new businesses. 
 
& Postal reform 
 
Convenience for the people really matters. We will make utmost 
efforts to make the post office more cherished than ever before. 
 
11) Prosecutors to decide not to indict DPJ Secretary General Ozawa 
today; Ozawa to continue to serve as secretary general 
 
ASAHI (Top play) (Abridged) 
February 4, 2010 
 
The Special Investigation Division (SID) of the Tokyo District 
Prosecutors Office has officially decided not to indict Democratic 
Party of Japan (DPJ) Secretary General Ichiro Ozawa in connection 
with the land deal involving his political fund management 
organization Rikuzan-kai. The SID had been considering dropping the 
case against Ozawa due to insufficient evidence. It will now make 
the final decision after consulting with top prosecutors. Meanwhile, 
when asked on Feb. 3 about his response if Ozawa is not indicted, 
Prime Minister Yukio Hatoyama said: "I would like him to work as 
secretary general," indicating his intention for Ozawa to keep his 
job. This was in response to questions from reporters at the Prime 
Minister's Official Residence. 
 
Reporters asked Hatoyama: "Will Secretary General Ozawa keep his 
job?" Hatoyama replied: "I am not thinking of any personnel changes 
right now," indicating that he will not replace the secretary 
 
TOKYO 00000223  007 OF 010 
 
 
general. To the question: "Do you want Secretary General Ozawa to 
take charge of the House of Councillors election?" He stated 
emphatically: "Of course, definitely." 
 
12) National Public Service Act amendment bill to allow reassignment 
of senior bureaucrats at prime minister's request, facilitate 
demotion of vice ministers 
 
MAINCHI (Top play) (Excerpts) 
February 4, 2010 
 
Yoshitaka Koyama 
 
The contents of the draft bill to amend the National Public Service 
Act became known on Feb. 3. The bill will have a provision stating 
that the prime minister can ask cabinet ministers to reassign 
officials at the rank of department directors general and above "for 
the purpose of implementing the cabinet's important policies." It 
will codify a mechanism to allow the intent of the Prime Minister's 
Official Residence (Kantei) to be reflected directly in the 
appointment of senior bureaucrats. Furthermore, administrative vice 
ministers will be regarded as the same rank as bureau directors 
general, thus facilitating their demotion. All of these steps allow 
for flexibility in reassigning bureaucrats, in order to promote 
policymaking led by politicians or by the Kantei. The draft bill 
thus reveals the outline of the "new personnel system for senior 
bureaucrats" included in the (Democratic Party of Japan's) manifesto 
for the last House of Representatives election. 
 
The draft bill states: "When the prime minister or the chief cabinet 
secretary judges that it is necessary to appoint appropriate 
officials for the implementation of important policies of the 
cabinet, he can consult the appointing officers (ministers, for 
instance) on the appointment or dismissal of senior bureaucrats." On 
the other hand, the appointing officers are asked to "consult with 
the prime minister and the chief cabinet secretary in advance" when 
appointing or dismissing senior bureaucrats. 
 
The bill also stipulates that vice ministers "are regarded as of the 
same grade" as bureau directors general in the government's 
organizational structure. They are exempted from the provision of 
the National Public Service Act that demotion is only possible in 
cases of "failure to meet performance standards." 
 
13) National Referendum Law not to allow voting from age 18 
 
TOKYO SHIMBUN (Top play) (Lead paragraph) 
February 3, 2010 
 
The government gave up on Feb. 3 on allowing citizens from age 18 to 
vote under the National Referendum Law that stipulates the 
procedures for constitutional revision that will take effect on May 
18 and decided to allow voting only from age 20 for the time being. 
This is because it has become evident that the there will not be 
sufficient time to amend the Public Office Election Law to extend 
voting rights to 18-year-olds and other civil laws to lower the 
legal age to 18, which are required to allow voting by citizens from 
age 18 under the Referendum Law. 
 
14) DPJ decides to expand non-government lawmakers' involvement in 
decision-making processes 
 
 
TOKYO 00000223  008 OF 010 
 
 
ASAHI (Page 4) (Abridged slightly) 
February 4, 2010 
 
The Democratic Party of Japan (DPJ) plans to significantly increase 
non-government lawmakers' involvement in decision-making processes. 
The plan is to decide on the core members for each ministry's policy 
council composed of the lawmakers holding the three top posts and 
part of the Diet and party executives, to let them discuss priority 
issues, and to let the DPJ deputy secretaries general coordinate 
views on mid- and long-term policy issues with the Prime Minister's 
Official Residence (Kantei). This will be a fundamental shift from 
the Secretary General Ichiro Ozawa-led policy of the government's 
unified control of policies. 
 
According to the items confirmed at the Feb. 1 DPJ executive meeting 
that Ozawa also attended, the core members of each ministry's policy 
council will be composed of directors of the concerned committees of 
the two houses of the Diet, executives of the Diet affairs 
committee, officers of the Upper House policy council, and others, 
in addition to the parliamentarians holding the top three posts. The 
three deputy secretaries general will coordinate views with the 
Kantei on long-term strategies and major national policy issues, 
such as the environment and the National Defense Program 
Guidelines. 
 
Regarding deliberations on legislation, the party has also decided 
to accept requests from concerned organizations at workshops to be 
held by each committee in the Diet. 
 
15) Hatoyama promises to submit quickly bill setting up human rights 
monitoring body 
 
NIKKEI (Page 2) (Full) 
February 4, 2010 
 
In response to Democratic Party of Japan member Toru Matsuoka's 
question about the possibility of the government establishing an 
independent organization to monitor human rights in order to prevent 
human-rights-related violations and discrimination, Prime Minister 
Yukio Hatoyama said yesterday at a plenary session of the House of 
Councillors: "It is a very important idea. I promise you to make 
efforts so that we will be able to submit a bill (aimed at the 
establishment of such a panel) as quickly as possible." 
 
16) DPJ to review manifesto (campaign pledges) 
 
ASAHI (Page 4) (Full) 
February 4, 2010 
 
Shinichi Sekine 
 
In preparation for the House of Councillors election this summer, 
the ruling Democratic Party of Japan (DPJ) decided yesterday to 
review its manifesto (campaign pledges) for last year's House of 
Representatives election. The focus will be on whether to provide 
the full amount of child allowances from 2011 and whether to abolish 
the current provisional rates for gasoline and other road-related 
taxes. The DPJ will draw up a new manifesto as well as a roadmap for 
the next four years. 
 
The taskforce team, set up in mid-January, will look into its 
manifesto for the Upper House election. Considering that the party 
 
TOKYO 00000223  009 OF 010 
 
 
will come under criticism from the public if it just modifies its 
manifesto, one senior party member said, "We will come up with new 
policy measures." Specific measures for "a new form of public 
sector," which Prime Minister Yukio Hatoyama advocated in his policy 
speech, will likely become the main topic for consideration. 
 
Asked about this development in the DPJ at a press conference 
yesterday, Chief Cabinet Secretary Hirofumi Hirano said: "The 
manifesto for the Upper House election campaign should be handled 
mainly by the party. If their move is related to policies, the 
government should be involved in it. But with regard to election 
affairs, the party should be in charge." 
 
17) Coordination of views on review of upper limit of savings at 
Japan Post Bank making little headway 
 
YOMIURI (Page 9) (Excerpts) 
February 4, 2010 
 
Coordination of views on a review of the postal service 
privatization plan is facing difficulty. While the government and 
the ruling camp are calling for scrapping the upper limit of savings 
at Japan Post Bank, the major focus of the review, the financial 
services industry is calling on the government to maintain the 
present conditions. State Minister for Postal Reform Kamei intends 
to submit a postal reform draft bill (tentative name) as early as 
early next week. However, it is unclear whether the bill will 
include specifics. 
 
The upper limit of savings at Japan Post Bank is 10 million yen at 
present. The Democratic Party of Japan (DPJ), the Social Democratic 
Party (SDP) and the People's New Party (PNP) have agreed on a policy 
of easing the upper limit. 
 
The DPJ is looking into scrapping the limit entirely so as to 
enhance the freedom of the management of the bank. The SDP and the 
PNP want to raise the level of the limit from the current 10 million 
yen to 30 million yen. On Feb. 3, the PNP on indicated a stance of 
compromising on the DPJ's plan, discussing the possibility of 
abolishing the savings limit. 
 
On the other hand, the financial services industry remains opposed 
to the idea of raising the upper limit. Their stance is that if the 
upper limit is raised while government involvement in the bank is 
left intact, it would squeeze the operations of private banks. 
 
The government wants to enhance the freedom of financial services by 
Japan Post Bank, by such means as scrapping the upper limit of 
savings at Japan Post Bank, based on the assessment that expanding 
profits from financial services would be indispensable to secure the 
cost of mandating Japan Post's three businesses - Japan Post 
Service, Japan Post Bank and Japan Post Insurance - to offer uniform 
services throughout the nation. 
 
However, many observers are concerned about the idea of raising or 
scrapping the upper limit. Since Japan Post Bank lacks experience in 
managing its funds in areas other than in government bonds, it may 
not be able to invest its increased funds successfully. Should that 
happen, the increased burden of interest payments could squeeze its 
profits. Moreover, there is even a possibility of the bank incurring 
massive losses as a result of failing to make profits in its 
investments. 
 
TOKYO 00000223  010 OF 010 
 
 
 
18) Japan Post Bank should invest its funds in U.S. Treasury bonds, 
state minister for financial affairs and postal reform says 
 
ASAHI (Page 5) (Full) 
February 4, 2010 
 
State Minister for Financial Affairs and Postal Reform Shizuka Kamei 
on Feb. 3 indicated his view that Japan Post Bank of the Japan Post 
Group should purchase U.S. Treasury bonds or corporate debentures to 
diversify its fund management. Kamei's stance is that the 
destinations for investment by Japan Post Bank should be expanded, 
as the Bank's funds will likely increase in view of the ongoing 
deliberations on raising the upper limit of postal savings as part 
of the efforts to review the postal privatization plan. 
 
Concerning a review of the postal privatization plan, Kamei told the 
press corps, "Japan Post Bank is now fettered by many regulations in 
its operations. I will reform it so that it will match with 
reality." Noting that the outstanding savings balance at Japan Post 
Bank, which stood at roughly 180 trillion yen as of the end of 
December last year, will likely increase, Kamei said, "I think 
investment in areas other than Japanese government bonds, such as 
U.S. Treasury bonds, will increase a little more." 
 
Japan Bank invested roughly 180 trillion yen in securities as of the 
end of December last year. Nearly 90 percent of its funds have been 
invested in Japanese government bonds. The Bank has purchased very 
few U.S. Treasury bonds. Investment in corporate debentures stands 
at only about 12 trillion yen. 
 
19) LDP's Tanigaki criticizes "DPJ's amateurish diplomacy" 
 
ASAHI (Page 4) (Full) 
February 4, 2010 
 
Liberal Democratic Party President Sadakazu Tanigaki has written an 
essay highlighting the stance of attaching importance to the 
Japan-U.S. alliance. The essay is apparently intended to heighten 
the LDP's position as the largest opposition party by presenting a 
counterproposal to the current administration, which is wavering 
over the issue of the relocation of the U.S. Marine Corps' Futenma 
Air Station. 
 
The essay will appear in the monthly magazine Chuokoron that will go 
on sale on Feb. 10. 
 
In his essay titled "Amateurish diplomacy by the Democratic Party of 
Japan," Tanigaki criticizes the Hatoyama administration's diplomacy, 
writing, "The administration is trying to keep a distance from the 
United States while moving closer to China to strike a balance. This 
is amateur diplomacy that lacks understanding of national security." 
He also writes about the Futenma issue: "Moving the base outside 
Japan is impractical in that it will end up reducing deterrence. 
Moving the base out of Okinawa is also simplistic. It is tantamount 
to toying with the sentiments of the people in Okinawa. The existing 
Japan-U.S. agreement is the best option." 
 
ROOS