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UNCLAS SECTION 01 OF 08 TOKYO 000390 
 
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 02/26/10 
 
INDEX: 
 
1) Top headlines 
2) Editorials 
 
Futenma issue: 
3) Gov't to propose inland Camp Schwab plan to U.S. next month 
(Yomiuri) 
4) Gov't prepares second plan in case U.S. rejects first one 
(Yomiuri) 
5) SDP also proposes relocation site within Japan (Tokyo Shimbun) 
6) Hirano vows Futenma conclusion by end of May (Nikkei) 
 
Defense & security: 
7) Mini-Security subcommittee meeting discusses "sympathy budget" 
(Yomiuri) 
 
Foreign relations: 
8) Japan, U.S. to begin talks on Iran's nuclear program next week 
(Nikkei) 
 
Toyota's travails: 
9) Toyota proposes joint investigation of ETCS (Yomiuri) 
10) Maehara: "Toyota problem will not affect free trade between 
Japan and U.S." (Mainichi) 
 
Politics: 
11) Prime minister aims for Japan's accession to Hague Convention 
(Tokyo Shimbun) 
 
Economy: 
12) METI launches discussions on vision of industrial structure 
(Asahi) 
13) Vice foreign minister says Australia's proposal to IWC 
regrettable (Asahi) 
14) Research whaling becoming source of diplomatic controversy 
(Nikkei) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Toyota still faces hurdles after president's testimony at U.S. 
congressional hearing 
 
Mainichi: 
"Secret pact" among government agencies on building power plants 
hindering environmental policies 
 
Yomiuri: 
Toyota to call on U.S. auto industrial group for joint probe of 
electronic throttle system problem 
 
Nikkei: 
Daiichi Sankyo to make generic drugs in Japan 
 
Sankei: 
Hatoyama indicates Korean schools are unlikely to be covered by 
tuition-free program 
 
Tokyo Shimbun: 
 
TOKYO 00000390  002 OF 008 
 
 
Figure skating - women's free skate today 
 
Akahata: 
In Toyota president's testimony at a U.S. congressional hearing, 
chairman claims that Toyota ignored report on sudden acceleration 
 
2) EDITORIALS 
 
Asahi: 
(1) Toyoda testimony: "Kaizen" essential to make the company's 
management more open 
(2) Labor unions and elections: Dependence on labor unions outdated 
 
Mainichi: 
(1) Toyoda testimony: Truth is still shrouded in fog 
(2) New interpretation of "agreement" on restricting foreign sumo 
wrestlers inappropriate 
 
Yomiuri: 
(1) Congressional testimony by Toyota president: Sincere efforts 
necessary for restoring public trust 
(2) Economic recovery is the key to increased hiring 
 
Nikkei: 
(1) Fundamental reform essential for Toyota to restore public trust 
 
(2) Give impetus to growing mood of peace in Darfur 
 
Sankei: 
(1) LDP returns to Diet deliberations: DPJ's efforts to cover up 
allegations must be pursued 
(2) Toyota president's testimony: Create a sound electronic control 
system to eliminate concerns 
 
Tokyo Shimbun: 
(1) Toyota hearing: Company must make a fresh start based on bitter 
lessons 
(2) Panel recommendation for scrapping statute of limitations 
contains many problems 
 
Akahata: 
(1) Toyoda testimony before U.S. Congress: Company needs to 
thoroughly reexamine itself as a manufacturer 
 
3) Futenma relocation: Gov't to propose Camp Schwab inland plan to 
U.S. next month 
 
YOMIURI (Page 1) (Full) 
February 26, 2010 
 
On the pending issue of relocating the heliport functions of the 
U.S. Marine Corps' Futenma Air Station from its current location in 
Japan's southernmost island prefecture of Okinawa, the government 
will formally propose its most promising plan to the U.S. government 
in March. This Futenma relocation plan, revealed yesterday, is to 
build a 500-meter-long tarmac on the premises of Camp Schwab, 
another U.S. military base straddling the Henoko area of the 
prefecture's northern coastal city of Nago and other municipalities 
in the prefecture, and to train Okinawa-based Marine Corps troops on 
other islands in Japan. The U.S. government, however, is expected to 
oppose this plan for such reasons as a possible impact on the 
training exercises. The government is therefore considering 
 
TOKYO 00000390  003 OF 008 
 
 
proposing another plan as the second best one, which is to construct 
a 1,500-meter-long airstrip in an inland area of the base. 
 
Defense Minister Kitazawa attended a party held yesterday in Tokyo 
for a House of Representatives member of the People's New Party, one 
of the ruling Democratic Party of Japan's two coalition partners, 
where he touched on the PNP's advocacy of this relocation plan and 
revealed that the government was considering a plan to relocate the 
Futenma airfield facility to an inland area of Camp Schwab as the 
most promising plan. "The PNP's direction is basically the same (as 
mine)," Kitazawa said, "and we're now moving in that direction." 
 
The idea of building a land-based replacement facility for Futenma 
airfield on the premises of Camp Schwab was once discussed at a 
bilateral consultative meeting between the Japanese and U.S. 
governments in 2005. At the time, the U.S. government rejected the 
idea, reasoning that the U.S. military's training exercises would be 
affected and that Futenma relocation to Camp Schwab's inland area 
would end up increasing aircraft noise and environmental 
deterioration. At that time, the U.S. government pointed to 
technical drawbacks, asserting that it would be difficult to use the 
shooting range on Camp Schwab. The Japanese government is therefore 
considering building a shooting range on another U.S. military base 
in Okinawa Prefecture at its own expense. 
 
Specifically, the Japanese government is considering the island of 
Tokunoshima in Kagoshima Prefecture and outlying islands in Okinawa 
Prefecture as candidate sites for training exercises. 
 
However, the U.S. government is highly likely to disapprove of any 
other plans, maintaining that the current relocation plan to 
relocate Futenma airfield to a coastal area of Camp Schwab based on 
a 2006 bilateral agreement is the best option. Meanwhile, Okinawa 
Prefecture and Nago City have been calling for the Futenma facility 
to be relocated outside Japan or outside Okinawa. The leaders of 
three local communities, including Nago City's Henoko district, 
filed a petition with the government yesterday against the option of 
building a land-based facility on Camp Schwab. 
 
4) Futenma relocation: U.S. negative on inland siting option 
 
YOMIURI (Page 4) (Full) 
February 26, 2010 
 
The government is giving heed to the idea of relocating the U.S. 
military's Futenma airfield facility from its current location in 
Okinawa Prefecture's central city of Ginowan to an inland area of 
Camp Schwab, another U.S. military base straddling the island 
prefecture's northern coastal city of Nago and other municipalities 
in the prefecture. This inland plan has now become the most likely 
option. This is because that inland area is geographically close to 
Camp Schwab's coastal area, the currently planned relocation site 
for Futenma airfield under an intergovernmental agreement reached 
between Japan and the United States. The government judged that it 
can easily make to the United States the claim that the U.S. 
military will be able to maintain its deterrence even if Futenma 
airfield is relocated to the inland area. 
 
The idea of siting an alternative facility for Futenma airfield in 
an inland area of Camp Schwab is now being mulled by Chief Cabinet 
Secretary Hirano and Defense Minister Kitazawa. In the government, 
however, few believe that the U.S. government will accept a plan 
 
TOKYO 00000390  004 OF 008 
 
 
other than the current one to relocate the Futenma airfield to a 
coastal area of Camp Schwab in the city of Nago, which is based on 
an intergovernmental agreement of 2006. The government is therefore 
looking into the feasibility of two options: 1) building a 
500-meter-long runway in an inland area of Camp Schwab and 
relocating to Japan's outlying islands the on-base training 
exercises for which this runway is too short; and 2) constructing a 
1,500-meter-long airstrip in an inland area of Camp Schwab. The 
government is thinking of proposing the second option should the 
U.S. government reject the first one. 
 
However, the U.S. government has been consistently negative about 
the option of laying down a land-based tarmac on the premises of 
Camp Schwab. Besides, Okinawa is strongly opposed to relocation of 
the Futenma facility to Nago. A senior Defense Ministry official 
said: "In the end, the Futenma airfield will remain where it is" if 
the inland plan is rejected. There is growing resignation. 
 
5) SDP will also propose Futenma relocation sites within Japan 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 26, 2010 
 
The proposals to be submitted by the Social Democratic Party (SDP) 
to the Okinawa base issues examination committee of the government 
and the ruling parties on the relocation of the U.S. forces' Futenma 
Air Station (in Ginowan City, Okinawa) have been revealed. While its 
first option is relocation out of Japan to the U.S. territory of 
Guam or Tinian in the Commonwealth of the Northern Mariana Islands, 
relocation out of Okinawa to mainland Japan will also be included if 
the first option is not approved. Coordination is underway to 
identify six or seven specific relocation sites within the country. 
 
The SPD's proposals will consist of a Plan A - relocation to Guam or 
Tinian, Plan B - relocation to Guam plus rotation of training 
exercises on mainland Japan, and Plan C - relocation to mainland 
Japan. Plans A and B will require the building of infrastructure in 
the relocation sites or providing high-speed ships to the U.S. 
forces for troop transfers. 
 
Plan C calls for selecting the relocation site from Self-Defense 
Forces bases or local airports outside of Okinawa. The use of the 
new U.S. military facility will be limited to 15 years or so. The 
eastern area of Tomakomai (Hokkaido), the Maritime Self-Defense 
Force's Omura air base (Nagasaki Prefecture), Saga airport (Saga 
Prefecture), and other locations have emerged as candidate sites, 
but there are objections in the party to naming specific 
localities. 
 
All three plans will allow ad hoc use of the Futenma Air Station for 
the U.S. forces' training and supplies or in an emergency even after 
the base's closure. They also call for the deployment of the Ground 
Self-Defense Force to provide deterrence after the U.S. Marines are 
withdrawn from Okinawa. 
 
The SDP had planned to only submit plans for relocation out of 
Japan, but the party's executive meeting on Feb. 25 authorized SDP 
members of the examination committee to submit plans for relocation 
to the Japanese mainland as their personal proposals. 
 
6) Chief Cabinet Secretary Hirano tells SDP leader Futenma 
relocation decision will be made by May 
 
TOKYO 00000390  005 OF 008 
 
 
 
NIKKEI (Page 2) (Full) 
February 26, 2010 
 
Chief Cabinet Secretary Hirofumi Hirano had dinner with Social 
Democratic Party (SDP) leader Mizuho Fukushima at a Japanese 
restaurant in Tokyo on the evening of Feb. 25. The two discussed the 
relocation of the U.S. forces' Futenma Air Station in Okinawa and 
other issues. Hirano told Fukushima that a relocation site "will be 
selected by May; this is an issue that bears on the fate of the 
administration." At a news conference on Feb. 24, Fukushima made 
comments on the deadline for making a decision, saying "the timing 
is secondary to a true solution to the problem." 
 
Fukushima stressed (at the dinner) that "great consideration should 
be given to the feelings of the Okinawan people," but Hirano 
responded with, "We will study the issue from scratch." 
 
7) Discussions begin on "sympathy budget" 
 
YOMIURI (Page 4) (Full) 
February 26, 2010 
 
The governments of Japan and the United States conducted a 
mini-Security Subcommittee meeting of foreign and defense officials 
at the Foreign Ministry yesterday. The event is part of talks to 
deepen the bilateral alliance on the occasion of the 50th 
anniversary of the revision of the U.S.-Japan Security Treaty. The 
two countries have also begun discussions on a review of Japan's 
host nation support (omoiyari yosan, literally "sympathy budget") 
for U.S. forces in Japan. 
 
8) Japan, U.S. to discuss Iranian nuclear issue next week 
 
NIKKEI (Page 2) (Full) 
February 26, 2010 
 
The governments of Japan and the United States yesterday started 
making arrangements for a plan to discuss the Iranian nuclear issue 
in Tokyo next week. Deputy Secretary of State James Steinberg is 
expected to visit Japan on March 4 and hold talks with Foreign 
Minister Katsuya Okada and other officials. 
 
9) Toyota to call on U.S. auto industrial group for joint probe of 
electronic throttle-control system problem 
 
YOMIURI (Top Play) (Excerpt) 
February 26, 2010 
 
Toyota Motor Corp. revealed yesterday that it would ask the American 
Automobile Manufacturers Association to jointly probe the problem of 
the electronic throttle-control system (ETCS). The ETCS is a 
suspected cause of the problem of unintended sudden acceleration, 
which has caused accidents. Toyota aims to regain consumers' trust 
by conducting a more objective joint investigation with a 
third-party organization to which rival companies belong. There have 
also been complaints of sudden acceleration in the case of other 
manufacturers' cars. Therefore Toyota intends to call on the U.S. 
association to jointly probe ETCS problems of other companies' 
vehicles as well. 
 
10) Transport minister: I am not worried about impact of Toyota 
 
TOKYO 00000390  006 OF 008 
 
 
issue on Japan-U.S. relations 
 
MAINICHI (Page 4) (Full) 
February 26, 2010 
 
Land, Infrastructure, Transport and Tourism Minister Seiji Maehara 
spoke yesterday on Toyota Motor corp. President Akio Toyoda's 
testimony before a U.S. congressional committee: "It was very good 
that he attended the hearing." In reference to the impact of the 
Toyota recall issue on Japan-U.S. relations: he said: "I met U.S. 
Ambassador John Roos the other day, and we affirmed that this issue 
should not be allowed to distort free trade between Japan and the 
U.S. I am not worried (about a negative impact)." 
 
Economy, Trade and Industry Minister Masayuki Naoshima also 
commented: "The president offered his sincere apology." But he 
added: "I think it will take a little more time" until the criticism 
in the U.S. calms down. 
 
11) Government to aim at acceding to Hague Convention; Hatoyama 
orders legislative measures 
 
TOKYO SHIMBUN (Page 1) (Full) 
February 26, 2010 
 
Given the increasing number of cases in which a Japanese parent 
moves a child outside the country without the consent of the other 
parent after an international marriage ends in divorce, the 
government decided yesterday to aim at acceding swiftly to the Hague 
Convention on the Civil Aspects of International Child Abduction, 
which prescribes a system to return the abducted child to the 
country of his or her habitual residence. Prime Minister Yukio 
Hatoyama, calling Foreign Minister Katsuya Okada and Justice 
Minister Keiko Chiba to the Prime Minister's Official Residence 
(Kantei) yesterday, instructed them to expedite the process of 
establishing a law specifying a set of procedures for reclaiming 
abducted children. 
 
"The world is beginning to regard Japan as a peculiar country," the 
Prime Minister said to the press corps at the Kantei last night. "It 
is important to reach a conclusion as soon as possible regarding the 
Hague Convention in order to show that is not the case." He also 
said, "It is not possible to do so during the current Diet session," 
indicating that Japan's accession to the pact will not occur until 
2011 or later. 
 
The Hague Convention was adopted by the Hague Conference on Private 
International Law in 1980 and it entered into force in 1983. 
Eighty-one countries, including the United States and European 
countries, are signatories to the convention. Japan alone among the 
group of seven industrialized countries has not signed the treaty. 
The United States and European countries have repeatedly urged the 
Japanese government to accede to the convention. 
 
During his visit to Japan earlier this month, U.S. Assistant 
Secretary of State Kurt Campbell pressed Tokyo to swiftly join the 
convention, saying: "The U.S. Congress, too, is concerned about the 
matter. It might escalate into a major issue in U.S.-Japan 
relations." 
 
At the same time, there are many hurdles before acceding to the 
convention. Domestic violence by the former husband is said to be 
 
TOKYO 00000390  007 OF 008 
 
 
behind many cases of child abduction. 
Cautious views are dominant in the government. In Japan custody of 
the child is often awarded to the mother after a marriage ends in 
divorce. Another hurdle is the difference in views of the family 
between Japan and Western countries. "The situation in Japan is such 
that it can't accede to the convention for a year or two," a Foreign 
Ministry official said. 
 
12) METI to draw up vision for industrial structural change 
 
ASAHI (Page 6) (Full) 
February 26, 2010 
 
The Ministry of Economy, Trade, and Industry (METI) has launched 
discussions toward drawing up a "vision of industrial structure" for 
¶2020. The first meeting of the Industrial Competitiveness 
Subcommittee of the Industrial Structure Council was held on Feb. 
¶25. The subcommittee will meet about four more times and draw up a 
vision in May. 
 
At the meeting on Feb. 25, METI gave a report on the present state 
and issues of Japan's industry, indicating that "the decline in 
Japan's economic power is a structural problem." Japanese companies 
used to enjoy around 80 percent market share for such products as 
liquid crystal display panels, DVD players, and lithium batteries, 
but their market share has declined rapidly from the second half of 
the 1990s. The reason cited by METI is that while one or two 
companies typically monopolize each sector in Western countries or 
the Republic of Korea, multiple Japanese companies engage in fierce 
domestic competition, with a consequent delay in their overseas 
investments. 
 
Japan's per capita GDP has dropped from number three in the world in 
2000 to number 23 in 2008. METI believes that this is not a 
temporary phenomenon. It intends to include in the vision of 
industrial structure measures to strengthen the competitiveness of 
Japanese companies and to support overseas ventures of small and 
mid-sized businesses. 
 
13) Takemasa: Australia's proposal is regrettable 
 
ASAHI (Page 6) (Abridged) 
February 26, 2010 
 
In connection with Australia's submission of a new proposal to the 
International Whaling Commission (IWC) requiring Japan to gradually 
discontinue its whaling in the Southern Ocean, Senior Vice Foreign 
Minister Koichi Takemasa said at a press conference yesterday: "It 
is regrettable that the proposal was submitted despite the fact that 
some progress has been made (owing to the chairman's new proposal)." 
Takemasa also indicated that his ministry will continue to make 
efforts to reach an agreement at the IWC annual meeting in June. 
 
14) Research whaling likely to become source of diplomatic conflict; 
New Zealand may follow Australia 
 
NIKKEI (Page 2) (Full) 
February 26, 2010 
 
Japan's research whaling in the Southern Ocean and elsewhere is 
fomenting a fresh diplomatic conflict. This is because New Zealand 
has hinted that it could fall in line with Australia, which has 
 
TOKYO 00000390  008 OF 008 
 
 
insisted that it will bring a case before the International Court of 
Justice (ICJ) if Japan rejects its call for gradual discontinuation 
of research whaling. With the annual meeting of the International 
Whaling Commission coming up in June, maneuvering by each country 
will likely intensify. 
 
Foreign Minister Katsuya Okada held a telephone conversation 
yesterday with his New Zealand counterpart, Murray McCully. During 
the conversation, Okada stressed: "We are disappointed at 
Australia's stance. We will continue to seek a diplomatic settlement 
through the IWC and bilateral talks." McCully then responded: "We 
share with Japan the position that a diplomatic settlement should 
take precedence." 
 
Japan has enjoyed friendly relations with Australia and New Zealand. 
"The whaling issue is the only diplomatic thorn," said a senior 
Foreign Ministry official. However, if the issue becomes more 
serious, it could affect economic relations as well as joint efforts 
in such areas as nuclear disarmament. In order to adopt a new rule 
at the IWC annual meeting in June, approval of more than 
three-quarters of the 88 IWC member countries is required. There is 
fear that the issue may be protracted. 
 
ROOS