Cablegate: Daily Summary of Japanese Press 12/31/07

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 12/31/07

Index:

(1) Gist of Japan-China summit

(2) Japan-China summit: Gist of statements by Fukuda, Wen in joint
press conference (Mainichi)

(3) Government mulls tripling ODA outlays for Africa (Nikkei)

(4) Government to accept numerical targets for greenhouse gas
emissions cuts

(5) TOP HEADLINES

(6) EDITORIALS

(7) Prime Minister's schedule, Dec. 28 (Nikkei)

ARTICLES:

(1) Gist of Japan-China summit

YOMIURI (Page 4) (Full)
December 29, 2007

Significance of visit to China

President Hu: I heartily welcome your visit to China. I believe your
visit to China this time will further facilitate the move for
constructing and developing the mutually beneficial and strategic
relationship.

Prime Minister Fukuda: I might have troubled you because I am
visiting you at the very latter days of the year. I appreciate your
hospitality.

Japan-China relations

Fukuda: During the dialogue with Premier Wen Jiabao, I thought both
of us shared the common ground in every aspect. Although it is
impossible to reach agreement on every thing, I thought gaps are
shrinking.

Hu: Only a narrow channel lies between Japan and China. Developing
Japan-China relations will significantly contribute to the
development of Asia and the world.

Cooperation in environmental area

Fukuda: If a person is determined to do so, he or she can devise
ways to do so. The point is whether to be determined to do so. As
for the environmental issues, I want to have good discussion and
promote cooperation.

Hu: Energy and the environment are important for the development of
the economic society. I think it is necessary to facilitate
cooperation among the countries on the globe so that we can
appropriately handle and resolve issues related to them.

President Hu's visit to Japan

TOKYO 00005694 002 OF 007

Fukuda: I hope you will visit Japan during the cherry blossom
season, but it has become difficult in recent years to tell when the
cherry blossoms come out.

Hu: I want to tell you about a specific itinerary as quickly as
possible.

Main points of the prime ministerial session

Bilateral relations and mutual understanding

? The year 2008 is termed a "year for Japan-China relations to take
a huge step," for such important events as the Beijing 2008
Olympics, are planned.
? President Hu Jintao is to visit Japan during the "cherry-blossom
season."
? Agreement has been reached between Japan and China to carry out
reciprocal visits of officers from the Chinese People's Liberation
Army and the Japanese Self-Defense Forces (SDF). In 2008, SDF
vessels will be dispatched to China.

Joint gas-field development issue

? Vice-minister level talks will be held as necessary.
? From a broad standpoint of Japan-China ties and in line with
international law, both sides will aim to reach agreement as swiftly
as possible on settling the issue.

Taiwan issue

? Japan will not support Taiwan's independence. Japan does not hope
to see Taiwan's referendum to ask its public whether to agree Taiwan
becomes a member of the United Nations intensify tensions between
China and Taiwan.

Climate change and the environment

? China recognizes that climate change is an issue the human beings
are facing at present. China will take part in international talks
in a responsible fashion and seriously implement measures related to
climate change.

Written agreements

? Joint statement for further stepping up cooperation in the areas
of science and technology focusing on climate change issues:
Cooperation in science and technology related to climate change will
be promoted. Japan will invite 50 or so young Chinese researchers to
Japan over next four years.
? Memorandum on activities to be conducted during the four-year
period termed a period for Japanese and Chinese youth to enhance
friendship and exchanges: The two countries will make efforts to
realize mutual visits of 4,000 or so young people from the two
countries over next four years starting in 2008.
? Agreement on cooperation in the area of magnetic fusion-related
studies: The two countries will establish a bilateral framework,
which will work in parallel with a multinational framework on the
International Thermonuclear Experimental Reactor (ITER), and promote
research and cooperation by using a nuclear fusion device prepared
by Japan and China.

(2) Japan-China summit: Gist of statements by Fukuda, Wen in joint

TOKYO 00005694 003 OF 007

press conference

MAINICHI online
Dec. 28, 2007, 2:06 pm

The following is a gist of statements made by Prime Minister Yasuo
Fukuda and Premier Wen Jiabao during their joint press conference:

Premier Wen:

We welcome Prime Minister Yasuo Fukuda's official visit to China.
During our meeting that lasted two and a half hours, we shared
common perceptions in wide-ranging areas.

This April, I made a visit to Japan that contributed to thawing the
ice in our bilateral relations. It was raining while I was in Tokyo,
so I expressed my feelings with this Chinese proverb: "Good rain let
us know which season we are in." This time, it is snowing in
Beijing. I would like to express my feeling with these words: "Snow
is the harbinger of a rich year." I felt that the spring has come
for the Japan-China relationship.

One of our common perceptions is the need to promote the policy of
enhancing bilateral friendly relations. It is important for the two
countries to build a mutually beneficial bilateral relationship
based on common strategic interests and to develop our friendly
cooperative relationship into a long-term, sound, and stable one.

The second common perception is the importance of continuing
high-level reciprocal visits as a driving force to develop the
mutually beneficial bilateral relationship in a steady way. We
agreed that President Hu Jintao will visit Japan in the spring of
next year. It will be the first visit to Japan by a Chinese chief of
state in 10 years. That will be an extremely important and
significant visit. Next year marks the 30th anniversary of the
conclusion of the China-Japan Peace and Friendship Treaty. Both
countries will further strengthen personnel exchange programs,
particularly, focusing on those between young peoples. Third is the
perception that China and Japan are important economic and trade
partners. The two countries will further promote economic and trade
cooperation and further deepen cooperation in such areas as
environmental protection, energy conservation, financial service,
and advanced technology.

Prime Minister Fukuda

Japan and China have now their most powerful strength ever to
contribute to the stability and development of the world. I told Mr.
Wen that the two countries should promote reciprocity in bilateral
ties and contribute to the stability and development of Asia and the
world. I hope both countries will make great strides in bilateral
relations in the coming year through the planned visit to Japan by
President Hu, the Lake Toya Summit, and a success of the Beijing
Olympic Games.

Second, both sides confirmed the need to promote a mutual
relationship of trust. We agreed to aim at expediting exchanges
involving 4,000 young people. I announced Japan's plans to dispatch
its naval vessels to China and to open a consulate in Tsingtao.
Third, we affirmed the importance of high-level dialogue on
bilateral economic cooperation. We also confirmed that it is our
countries' responsibility to enhance cooperation on the climate

TOKYO 00005694 004 OF 007

change issue for the sake of our descendants and the international
community. I said that it is necessary to establish a framework that
will draw in major economic powers in a responsible manner. Fourth,
the two of us as leaders were able to further deepen mutual
understanding on the dispute over gas exploration rights in the East
China Sea. We shared the determination that this issue must be
resolved at an early date.

(3) Government mulls tripling ODA outlays for Africa

NIKKEI (Page 2) (Full)
December 31, 2007

The government has started discussion on the possibility of tripling
in 2013 about 1.7 billion yen in official development aid (ODA)
disbursements to Africa estimated for this fiscal year. Then Prime
Minister Junichiro Koizumi promised in April 2005 to triple ODA
outlays for Africa over the next three years. His pledge is now
likely to be fulfilled. The government intends to prepare a new goal
for the Tokyo International Conference on Africa's Development in
Yokohama next May.

China and Western countries have recently engaged in resources
diplomacy with the aim of securing oil and rare metal from Africa.
In particularly, China reportedly has appropriated more than 40
PERCENT of its foreign aid to Africa. In contrast, the government,
as part of fiscal reconstruction efforts, has decreased its ODA
budget for the nine years until 2006. To counter China, however, the
government now judges it necessary to increase the ODA budget.

One-fourth of all the United Nations member countries are African
countries. A senior Foreign Ministry official said: "In order to
realize Japan's bid for permanent membership on the UNSC, it is
necessary to distribute limited ODA budget allocations in a
strategic way."

(4) Government to accept numerical targets for greenhouse gas
emissions cuts

MAINICHI (Top Play) (Full)
December 31, 2007

Making a policy switch to set numerical targets for cutting
greenhouse gas emissions, the government has decided to propose new
standards for a new framework for combating global warming beyond
the 2012 timeframe set under the 1997 Kyoto Protocol. Prime Minister
Yasuo Fukuda will announce this policy decision at the next session
of the World Economic Forum (the Davos Conference) in January in
Switzerland. Under Japan's plan, countries would be classified into
three groups - industrialized countries, emerging countries, and
developing countries. New medium to long-term targets for emissions
reductions would be calculated for each group. Fukuda will also
reveal plans to establish a "funds mechanism" of 10 billion dollars
to be disbursed over five years to help developing countries combat
global warming.

In the 13th session of the Conference of the Parties to the United
Nations Framework Convention on Climate Change held this month,
Europe and developing countries supported the idea of obligating
industrialized countries to cut greenhouse gas emissions by 25
PERCENT to 40 PERCENT by 2020. Japan, however, fiercely reacted to
setting numerical targets, incurring criticism from the

TOKYO 00005694 005 OF 007

international community as "taking a backward-looking stance on gas
emissions cuts. Alarmed at such criticism with an eye on the Lake
Toya Summit next July, the government aims to take the initiative in
international discussions by making an about-face to approve setting
numerical targets and proposing new standards.

As measures to obtain cooperation from domestic economic circles,
which are negative about introducing numerical targets, the
government will propose new Japanese-type standards under which
industry-specific reduction targets are worked out in accordance
with the degree of progress in energy-saving technology.

The government plans to announce its own medium to long-term
reduction targets to be worked out based on these new standards by
the time of the Lake Toya Summit. The adoption of the classification
method is also intended to levy an obligation on China and India to
reduce their gas emissions by including them in the group of
emerging countries.

Regarding the funds mechanism, the government intends to make use of
the low-interest yen-loan program and special loans by the Japan
Bank for International Cooperation for projects designed to combat
global warming. Eligible for this mechanism will be Indonesia and
such African countries as Tuvalu, Kenya and Nigeria. Coordination is
now underway on disbursements of 10 billion dollars over five years,
a final decision will be made by the end of January.

(5) TOP HEADLINES

Asahi:
54 people since 2001 fraudulently obtain qualifications to become
doctors

Mainichi:
Brand rice prices plunge

Yomiuri:
Government to tighten foreign aircraft safety checks

Nikkei:
Japanese firms establishing long-term employment system in China

Sankei:
Government, ruling coalition to start full-fledged work next moth on
permanent law to dispatch SDF overseas

Tokyo Shimbun:
DPJ to submit a bill unifying pension systems to regular Diet
session

Akahata:
Labor struggle in 2007: Door for permanent employment opened

(6) EDITORIALS

Asahi:
(1) Proposals for hopeful society:
? Stop overtime work by men
? Create a society in which non-permanent employees can become
self-reliant

Mainichi:

TOKYO 00005694 006 OF 007

(1) Looking at 2007: Politics in state of flux; need to regain
public confidence

Yomiuri:
(1) DPJ must stop delaying government's antiterrorism bill
(2) World leading auto maker: Toyota's challenges

Nikkei:
(1) Change in world money, decline in Japanese stocks
(2) Fuel efficiency requirements and future of automobiles

Sankei:
(1) 2007 in retrospect: "Lies" detected everywhere
(2)
Tokyo Shimbun:
(1) Thoughts on New Year's Eve: Many apologies offered in 2007

Akahata:
(1) Re-extended Diet session: Ramming through bad bills
unforgivable

(7) Prime Minister's schedule, Dec. 28

NIKKEI (Page 2) (Full)
December 29, 2007

Local time
Morning
Attended a welcome ceremony hosted by Premier Wen Jiabao at the
Great Hall of the People in Beijing. Afterwards, met with Wen.

Noon
Attended a signing ceremony for a joint statement. Held a joint
press briefing. Attended a luncheon hosted by Wen. Gave a speech at
Beijing University.

vening
Met with the National People's Congress's Standing Committee
Chairman Wu Bangguo at the Great Hall of the People.

Night
Met with President Hu Jintao at State Guest House Diaoyutai. Stayed
at Hotel New Otani Chang Fu Gong.

Prime Minister's schedule, Dec. 29

NIKKEI (Page 2) (Full)
December 30, 2007

Local time
Early Morning
Attended a breakfast meeting hosted by the China-Japan Friendship
Association held at Diaoyutai, joined by Premier Wen. Played catch
with Wen at the tennis court in Diaoyutai.

Morning
Visited a test elementary school. Arrived by car at Tianjin. Met
with Tenjin City's Communist Party Committee Secretary Zhang Kaoli
at Renaissance Tianjin TEDA Hotel.

Noon Attended a luncheon hosted by Zhang.
Afternoon Visited the Exhibition Hall for Planning and Construction

TOKYO 00005694 007 OF 007

on Binghai District. Visited Toyota Motor's plant in Tianjin.

Evening
Left Tianjin Airport by government plane.

Night
Arrived at Jinan Airport. Had conversation with reporters traveling
with the prime minister at Shandong Hotel. Attended a dinner party
hosted by Shangong City's Communist Party Secretary Li Jianguo.
Stayed at the hotel.

Prime Minister's schedule, Dec. 30

NIKKEI (Page 2) (Full)
December 31, 2007

Local time
Morning
Left the hotel at Jinan by car. Visited the Temple of Confucius.
Noon Arrived at Jinan Airport by car. Gave an interview with the
Chinese Central TV. Left the airport by the government plane.

Japan time

17:25
Arrived at Haneda Airport.

17:59
Reported his return home at the Imperial Palace.

18:14
Arrived at the Kantei residential quarters

18:55 Arrived at his private residence in Nozawa.

DONOVAN

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