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UNCLAS SECTION 01 OF 09 TOKYO 000259 
 
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 02/09/10 
 
INDEX: 
 
TODAY'S FEATURES 
1) Top headlines 
2) Editorials 
 
Futenma issue: 
3) Inamine takes office; "would like to trust PM" (Yomiuri) 
 
Foreign relations: 
4) Hatoyama meets with Palestinian President Abbas (Yomiuri) 
5) Hatoyama eager to resolve Northern Territories dispute (Asahi) 
 
6) Japan to give $35 million in humanitarian aid to Somalia (Asahi) 
 
7) Japan also fails to win order for nuclear power plant in Vietnam 
(Nikkei) 
 
Economy: 
8) JAL to announce today tie-up with American (Nikkei) 
9) MOF report says economy has reached the limit of reliance on U.S. 
(Nikkei) 
10) Toyota president mulling U.S. trip (Mainichi) 
 
Politics: 
11) Ozawa reiterates intention to remain in post (Asahi) 
12) Hatoyama: Ozawa gave a sufficient explanation (Yomiuri) 
13) Tamura's defection gives DPJ a majority in Upper House (Asahi) 
 
14) Postal reform bill draft calls for 3-company system (Yomiuri) 
 
15) Diet debate (Nikkei) 
16) DPJ eyes SDF vote (Mainichi) 
17) Hatoyama eager to enact bill amending Political Funds Control 
Law; New Komeito also discussing amendment (Nikkei) 
 
Opinion: 
18) Sankei: FNN poll: Cabinet disapproval rating shoots up to 46.1 
PERCENT , tops approval rating for first time (Sankei)   10 
 
ARTICLES: 
 
1) TOP HEADLINES 
 
Asahi: 
Ozawa renews his resolve to stay on as DPJ secretary general 
 
Mainichi & Sankei: 
Kirin, Suntory drop merger plan due to gap in corporate cultures 
 
Yomiuri: 
Advisory panel to justice minister decides to recommend abolishing 
statutes of limitations in murder cases 
 
Nikkei: 
Japan loses nuclear power plant project in Vietnam to Russia 
 
Tokyo Shimbun: 
Koito Industries falsifies data on passenger-plane seats 
 
Akahata: 
JCP Chairman Shii urges measures friendly to workers, small 
 
TOKYO 00000259  002 OF 009 
 
 
businesses 
 
2) EDITORIALS 
 
Asahi: 
(1) Asashoryu controversy: What do we learn from this? 
(2) Role of G-7: Play a pivotal role in restructuring the financial 
order 
 
Mainichi: 
(1) Abolition, extension of statute of limitations: Dispel concerns, 
face reality 
(2) Aborted merger of beverage companies: We pin hopes on their next 
strategy 
 
Yomiuri: 
(1) New G-7 takes off: Importance remains unchanged even as an 
unofficial framework 
(2) Yokohama incident: Judiciary finally corrects its own mistake 
 
Nikkei: 
(1) Aborted Kirin-Suntory merger regrettable 
(2) Sign the treaty on "child abduction" promptly 
 
Sankei: 
(1) Recall issue: Now is the time to show Toyota's real strength 
 
Tokyo Shimbun: 
(1) Toyota Motor: Implement top class crisis management 
(2) Review of postal services: Burden on the people is unacceptable 
 
Akahata: 
(1) Budget Committee general interpellation: Shift from "monopoly" 
by big business is the answer 
FUTENMA ISSUE 
 
3) New Nago mayor to persist in opposition to Henoko relocation 
 
YOMIURI (Page 4) (Abridged) 
February 9, 2010 
 
The newly elected mayor of Nago City in Okinawa Prefecture, Susumu 
Inamine, who won the city's recent mayoral race running on a 
platform of opposition to the planned relocation of the U.S. 
military's Futenma airfield facility to his city, assumed its 
mayorship yesterday. "I will persist in my opinion with conviction," 
Inamine said in yesterday's press conference, stressing his 
intention to raise an all-out objection to the current plan to 
relocate the Futenma facility to a coastal area of Camp Schwab, a 
U.S. military base located in the city's Henoko area. The new mayor 
thus expressed his view against the relocation of the Futenma 
facility to Henoko. 
 
Inamine said in the press conference: "I don't think Prime Minister 
Hatoyama will come around to Henoko. I want to believe him." The 
ruling Democratic Party of Japan, in its manifesto for last year's 
House of Representatives election, vowed to review the current 
Futenma relocation plan. In this regard, Inamine added: "The people 
of Okinawa Prefecture have such great expectations. The party made a 
promise, so I want them to carry it out at an early date." 
 
FOREIGN RELATIONS 
 
TOKYO 00000259  003 OF 009 
 
 
 
4) Hatoyama holds talks with Abbas 
 
YOMIURI (Page 4) (Full) 
February 9, 2010 
 
Prime Minister Yukio Hatoyama held talks yesterday with Palestinian 
President Mahmoud Abbas at the Prime Minister's Official Residence 
(Kantei). During the talks, Hatoyama indicated that Japan will help 
build a Palestinian nation in cooperation with Indonesia and other 
East Asian countries. Hatoyama and Abbas agreed to implement the 
"Japanese-Palestinian work program," which includes the dispatch of 
a Japanese fact-finding team, in order to realize a Palestinian 
state with a self-sufficient economy in the future. 
 
5) Hatoyama eager to solve Northern Territories dispute 
 
ASAHI (Page 4) (Full) 
February 9, 2010 
 
Prime Minister Yukio Hatoyama stated on Feb. 7 at a national rally 
in Tokyo calling for the return of the four Russia-held islands off 
Hokkaido: "Resolving the issue of the Northern Territories is my 
biggest wish after the change of government," expressing a keen 
eagerness for an early settlement of the territorial dispute with 
Russia. 
 
6) Japan to provide 3 billion yen to Somalia 
 
ASAHI (Page 4) (Full) 
February 9, 2010 
 
Foreign Minister Katsuya Okada met yesterday with the Somali 
transitional government's Foreign Minister Ali. During the meeting, 
Okada told Ali that Japan will provide Somalia with a total of 
approximately 35 million dollars (approximately 3 billion yen) as 
support for police and humanitarian assistance. Okada said, 
"Bringing peace to Somalia is indispensable for eradicating pirates 
and preventing terrorism from spreading," indicating that Japan will 
actively support the country. 
 
According the Japanese Foreign Ministry, Ali is the first Somali 
minister to visit Japan since the transitional government was 
launched in 2005. 
 
7) Japan loses nuclear plant project in Vietnam to Russia 
 
NIKKEI (Top Play) 
February 9, 2010 
 
Yoichi Iwamoto, Hanoi 
 
The Vietnamese government has decided to award a contract for the 
first phase (to construct two reactors) of a project to build 
Southeast Asia's first nuclear power plant to Russia's state-run 
nuclear power company, Rosatom. Russia won the contract by 
reportedly offering a package deal including military cooperation. 
Although a Japanese team composed of private firms and the 
government was aiming to win the order, Japan suffered its second 
setback. At the end of last year, Japanese firms lost to South 
Korean firms in a battle to land a nuclear power plant project in 
Abu Dhabi. The team will step up its efforts to win a contract for 
 
TOKYO 00000259  004 OF 009 
 
 
the second phase (two reactors) of the project. 
 
 
ECONOMY 
 
8) JAL to announce its decision to maintain alliance with American 
Airlines today 
 
NIKKEI (Page 11) (Full) 
February 9, 2010 
 
Japan Airlines, which has filed for court-protected rehabilitation, 
has been holding talks with two U.S. carriers for a possible 
business alliance. On Feb. 9, the carrier will formally announce its 
decision to choose American Airlines, a member of the Oneworld 
airline alliance that JAL also belongs to, as a business partner. 
Both carriers intend to apply for antitrust immunity (ATI) status 
under the U.S. Antitrust Act with the Department of Transportation 
as early as this week. American Airlines and Delta Air Lines have 
been competing to become JAL's business partner. The battle between 
the two U.S. carriers will end with JAL deciding to maintain and 
strengthen its alliance with American Airlines. 
 
JAL and American Airlines plan to effectively integrate their 
passenger flight businesses between the U.S. and Japan as early as 
October if they can obtain ATI status. The integration will enable 
them to streamline their businesses, including enhancing seat 
occupancy rates, by adjusting duplicate routes as well as landing 
and departure schedules. American Airlines will also be able to 
consolidate its sales branches in Japan by letting JAL handle 
negotiations with Japanese travel agencies. 
 
JAL will also strengthen ties with British Airways of Britain and 
Qantas Airways of Australia, both of which also belong to Oneworld. 
JAL will consider consolidating flights between Japan and Britain by 
applying for ATI with the European Union (EU). With Australia, JAL 
will look into launching code-sharing operations by low-cost 
carriers between Japan and Australia. 
 
During the tie-up talks with the U.S. carriers, the Ministry of 
Transport and JAL had first judged that forming an alliance with 
Delta would boost JAL's profits more substantially. However, it was 
also pointed out that their applications for ATI status might not be 
granted, because the two carriers' combined share in the flights on 
the Pacific route would top 60 percent. 
 
In addition to such concerns, Kazuo Inamori, who took office as 
chairman of JAL on the 1st, placed priority on the longtime 
relationship between JAL and American Airlines. If JAL switched to 
Delta-led alliance, it would take time to adjust various systems, 
which could cause JAL to suffer temporary confusion and a drop in 
profits. JAL is aiming to reconstruct its management within three 
years under the Enterprise Turnaround Initiative Corporation of 
Japan (ETIC), which serves as the carrier's bankruptcy 
administrator. 
 
9) Current account surplus in 2009 shrinks to half of its peak, 
showing limits of "relying on the U.S." 
 
NIKKEI (Page 5) (Full) 
February 9, 2010 
 
 
TOKYO 00000259  005 OF 009 
 
 
Preliminary figures on balance of international payments for 2009 
issued by the Ministry of Finance on Feb. 8 show that Japan's 
current account surplus has dropped to half of its peak in 2007. In 
addition to the low trade surplus, the income account surplus, which 
reflects returns from investments, suffered a record decline. The 
contraction in current account surplus reflects the stagnation in 
the world economy that has relied on the U.S.'s economic growth. 
 
"Overconsumption" in the U.S. was behind the growth in exports from 
Japan and the East Asian countries and the resulting expansion in 
the current account surplus in the 2000s (2000-2009). The U.S. 
borrowed money from Japan and Asia to import various goods. On the 
other hand, Japan and the East Asian countries exported highly 
profitable products to the U.S. and reinvested such profits in the 
U.S. 
 
Japan's current account surplus is now back at the 2002 level, 
before the world experienced an economic boom. Ryutaro Kono, (chief 
economist) of BNP Paribas Securities, points out that "the 
adjustment of the world economic disequilibrium has run its course, 
but it will still take time for the economy in the Western countries 
to make a full-fledged recovery." He believes that a full-fledged 
recovery of exports to advanced countries will take more time. 
 
The income account surplus in 2009, which reflects the profits made 
by investors, has dropped substantially from 2008. Profits from 
securities investments have deteriorated due to low interest rates 
worldwide and a strong yen. In addition, the business performance of 
overseas subsidiaries of Japanese companies was also poor, resulting 
in a decline in "direct investment profits." The income account 
surplus overtook the trade surplus in 2005, clearly showing that 
Japan earns more from investments. For this reason, the contraction 
in the income account surplus may have an adverse effect on overall 
national income. 
 
10) Toyota recall: President mulling visiting U.S. 
 
MAINICHI (Page 1) (Excerpt) 
February 9, 2010 
 
It has been learned that Toyota Motors President Akio Toyoda is 
considering visiting the U.S. in order to allay the situation caused 
by a series of voluntary repairs and recalls of Toyota vehicles 
there. 
 
Toyoda held a press conference on Feb. 5 for the first time since 
the problem was revealed. However, there is no sign of criticism 
dying down in the U.S. because his explanation lacked specifics. He 
will make a final decision on visiting the U.S. after a public 
hearing at the U.S. House of Representatives. 
 
POLITICS 
 
11) Ozawa renews resolve to stay on as secretary general 
 
ASAHI (Top Play) (Excerpts) 
February 9, 2010 
 
Democratic Party of Japan Secretary General Ozawa returned to his 
party duties and began energetically taking action yesterday. 
Eliciting a pledge from Prime Minister Yukio Hatoyama to approve his 
remaining in office as secretary general, Ozawa declared in a press 
 
TOKYO 00000259  006 OF 009 
 
 
conference his innocence in the land-deal case, in which his former 
secretary and others were indicted. He also indicated his eagerness 
to hold a meeting with U.S. President Barack Obama during the Golden 
Week holidays. He intends to pour his energy into fulfilling his 
duties as party secretary general while carefully watching the 
trends in the public's perception of him, at present severe. 
 
In his first regular press conference last evening after prosecutors 
decided not to bring charges against him, Ozawa said: "I will begin 
with a statement," and then expressed a apology while carefully 
choosing his words: "I apologize for causing you anxiety." 
 
Ozawa went on to say: "A fair and impartial investigation by 
prosecutors showed I had not received any illicit money." In 
response to the comment that his explanation was insufficient, Ozawa 
said: "Since I provided sufficient explanations to prosecutors 
during two rounds of questioning, I think I have nothing else to 
explain." He indicated no need for a further explanation now that he 
was not criminally charged. In the press conference, he refrained 
from criticizing prosecutors, though he virtually declared victory 
over them. 
 
12) Hatoyama: Ozawa has fulfilled accountability 
 
YOMIURI (Page 2) (Abridged) 
February 9, 2010 
 
In reply to a question at a House of Representatives Budget 
Committee session yesterday about a violation of the Political Funds 
Control Law involving Democratic Party of Japan Secretary General 
Ichiro Ozawa's fund management body, Rikuzankai, Prime Minister 
Yukio Hatoyama said, "Mr. Ozawa has fulfilled his accountability as 
the occasion demanded," indicating his view that Ozawa has to a 
degree fulfilled his accountability. 
 
Hatoyama also pointed out: "Mr. Ozawa has responded to questioning 
by prosecutors and he has also responded to reporters' questions as 
they arose. He did not run away." 
 
13) DPJ-affiliated floor group to hold majority of Upper House 
without SDP due to Tamura's accession to DPJ 
 
ASAHI (Page 4) (Full) 
February 9, 2010 
 
House of Councillors member Kotaro Tamura, who has left the Liberal 
Democratic Party, conveyed his intention to join the Democratic 
Party of Japan (DPJ) to DPJ Secretary General Ichiro Ozawa at DPJ 
headquarters on Feb. 8. As a result, the DPJ-affiliated floor group 
that includes New Ryokufu-kai, the People's New Party (PNP), and the 
New Party Nippon will now hold 121 seats of the 242 seats in the 
Upper House. This means the group will gain a majority of the Upper 
House, excluding its president who does not take part in votes in 
principle. In other words, the Hatoyama administration will be able 
to maintain control of the Upper House even if the Social Democratic 
Party leaves the administration. 
 
"Mr. Ozawa encouraged me to conduct solid discussions to help 
improve the DPJ," Tamura said at a press conference. Although the 
Tottori electoral district represented by Tamura will be up for 
election this summer, the DPJ will field him in the proportional 
representation segment to avoid competition with another DPJ 
 
TOKYO 00000259  007 OF 009 
 
 
candidate. 
 
With Tamura joining the party, the DPJ now holds 115 seats in the 
Upper House (excluding Upper House President Satsuki Eda). The 
number of members in the DPJ-affiliated floor group is now 121 - a 
majority of the chamber - including the PNP's five seats and one 
independent. 
 
To the ruling coalition, the presence of the SDP has been vital 
because the SDP has made it possible for the ruling collation to 
maintain a majority of the Upper House owning to the SDP's five 
seats. 
 
"A change in the majority might be important, but we will continue 
to pursue what we think is right regardless of this factor," SDP 
leader Mizuho Fukushima said to the press corps yesterday. 
 
14) Draft bill to realign Japan Post group into three companies; 
government capital ratio not specified 
 
YOMIURI (Page 9) (Full) 
February 9, 2010 
 
The government announced on Feb. 8 its draft "postal reform bill" to 
be submitted to the current Diet session. The bill proposes to 
realign the Japan Post (JP) group, currently consisting of five 
companies, into three companies. While the bill does not specify the 
ratio of government capital and the limit of deposits, the general 
impression is that of strong government involvement. A consensus 
will be built within the government and the ruling parties, with an 
aim of passing a cabinet resolution on the bill in March. 
 
The draft bill defines the Japan Post group as a "private company 
that plays a strong public welfare role." It decrees that all three 
JP services (mail delivery, banking, and insurance) are to be 
offered uniformly across the country. The cost for providing such 
services will be covered by the government through tax reductions or 
exemptions and other measures. The "social and local contribution 
fund," which is used to fund unprofitable operations under the 
current postal privatization laws, will be abolished. 
 
A new holding company that will be formed by merging the current JP 
Holdings Company, the JP Service Company, and the JP Network Company 
will be designated as a special corporation to be governed by a 
special law, while the JP Bank and JP Insurance Company under the 
new holding company will be private financial institutions governed 
by the Banking Law and the Insurance Law. The JP Bank and JP 
Insurance will be able to launch new businesses at their own 
discretion. 
 
The draft bill only says that the government's capital ratio in the 
holding company and the holding company's capital ratio in JP Bank 
and JP Insurance are "to be determined." However, it points out that 
the government's capital ratio in the holding company should be 
decided based on two factors: ability to take defensive measures 
against hostile takeovers and ability to reflect its will in JP's 
management. 
 
15) Main question and answers from Feb. 8 House of Representatives 
Budget Committee session; environment minister calls for greater 
efforts by the United States 
 
 
TOKYO 00000259  008 OF 009 
 
 
NIKKEI (Page 4) (Excerpts) 
February 9, 2010 
 
 Battle against global warming 
 
Nobutaka Machimura (of the Liberal Democratic Party): Do you think 
the United States and China's greenhouse-gas-emission-reduction 
targets are ambitious figures? 
 
Environment Minister Sakihito Ozawa: With international talks still 
going on, the government has not yet announced its unified view. 
Although we would like to see the United States raise its target a 
little more, we highly evaluate the fact that the country has come 
up with a long-term goal to be met by 2050. China's emissions will 
continue to grow, so the country needs to indicate when its 
emissions will peak (emissions will drop). 
 
16) DPJ eyes SDF vote 
 
MAINICHI (Page 5) (Abridged) 
February 9, 2010 
 
The ruling Democratic Party of Japan is now planning to field a 
retiree of the Self-Defense Forces in this summer's House of 
Councillors election for proportional representation. The SDF, 
estimated to have 200,000 votes across the nation, used to be a 
sizable bloc for the now-opposition Liberal Democratic Party. In 
November 2009, the LDP decided to run Takashi Uto, an Air 
Self-Defense Force retiree, as a candidate on its ticket. If the DPJ 
decides to run an SDF retiree as a candidate, the SDF voting bloc 
will be divided. This move could also spur industrial organizations 
to distance themselves from the LDP. 
 
17) Hatoyama eager to enact bill amending Political Funds Control 
Law; New Komeito also discussing amendment 
 
NIKKEI (Page 2) (Full) 
February 9, 2010 
 
The government has decided to amend the Political Funds Control Law 
to prohibit politicians from receiving any donations from companies 
and organizations. In this connection, Prime Minister Yukio Hatoyama 
said yesterday: "It is necessary to deal with problems related to 
political funds more strictly. Priority should be given to each 
political party's judgments. If possible, it would be preferable to 
finalize an amendment during the current Diet session." In replying 
to questions from reporters at the Prime Minister's Official 
Residence, he indicated his eagerness to enact an amended bill 
during the ongoing Diet session. 
 
Hatoyama pointed out: "I hear that the New Komeito is also preparing 
a new bill. A positive conclusion should be reached based on 
discussions conducted within political parties." In reference to a 
lawmaker's responsibility in the event that his or her accounting 
manager is involved in illegal activities, the prime minister 
emphasized: "That is exactly what the New Komeito is calling for." 
 
The New Komeito has proposed a bill stipulating that if a lawmaker's 
accounting manager engages in illegal activities, the lawmaker would 
be punished for appointing or failing to supervise the accountant 
and that the lawmaker's civil rights (right to vote and right to 
hold office) would be suspended. 
 
TOKYO 00000259  009 OF 009 
 
 
 
OPINION 
 
18) Poll: Cabinet disapproval rating shoots up to 46.1 PERCENT , 
tops approval rating for 1st time 
 
SANKEI (Page 3) (Abridged) 
February 9, 2010 
 
The disapproval rating for Prime Minister Hatoyama and his cabinet 
rose 5.8 percentage points from last month to 46.1 PERCENT  in the 
latest joint public opinion survey conducted by the Sankei Shimbun 
and Fuji News Network (FNN) on Feb. 6-7. Meanwhile, the support rate 
for the Hatoyama cabinet was 42.8 PERCENT . The Hatoyama cabinet's 
support rate topped its nonsupport rate for the first time. Asked 
about ruling Democratic Party of Japan Secretary General Ichiro 
Ozawa, a total of 70.3 PERCENT  said he should resign from his party 
post even though the prosecutors have dropped the case on his 
political fund management organization's unreported land purchase. 
The figure remained at over 70 PERCENT  from the last survey, 
indicating the public's harsh criticism of the Hatoyama cabinet and 
Ozawa. 
 
In the breakdown of public support for political parties, the DPJ 
stood at 32.9 PERCENT , with the leading opposition Liberal 
Democratic Party at 18.2 PERCENT . In the popularity ranking of 
political parties for this summer's House of Councillors election as 
well, the survey posted a substantial gap between the DPJ and the 
LDP, respectively at 37.0 PERCENT  and 23.2 PERCENT . 
 
ROOS